MIRA
INFORM REPORT
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Report Date : |
04.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SATIA PAPER MILLS LIMITED |
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Registered Office : |
Village Rupana ,uktsar – |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.11.1980 |
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Com. Reg. No.: |
004329 |
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CIN No.: [Company
Identification No.] |
L21012PB1980PLC004329 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLS14480E |
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PAN No.: [Permanent
Account No.] |
AACC57233A |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Engaged in the business of manufacturing of Writing, Printing
and Wrapping Papers |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 807576 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Profit margin is under severe pressure. Payments are usually correct and as per commitments. The company is doing well but with a thin margin of profit. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Village Rupana ,uktsar – |
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Tel. No.: |
91-1633-262215 / 262001 |
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Mobile No.: |
91-1633-263499 |
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Fax No.: |
91-98153-32922 |
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E-Mail : |
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Area : |
Owned |
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Factory 1 : |
Muktsar - |
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Tel. No.: |
91-11-26481563/27536262/25570100 |
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Fax No.: |
91-11-27538904 |
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E-Mail : |
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Branches : |
304, Navjeevan Complex,
29, |
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Tel. No.: |
91-141-2371055 / 2379554 |
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Fax No.: |
91-141-2374433 |
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Branches : |
SCO 90,91, 92, Sector 8
C, Madhya Marg, |
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Tel. No.: |
91-172-5075667 / 2549212 |
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Branches : |
613-615, Naurang House, 21 K G Marg, Opposite – H. T. , |
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Tel. No.: |
91-11-23710350 to 53 |
DIRECTORS
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Name : |
Mr. Rakesh Sood |
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Designation : |
Director |
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Address : |
42, |
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Date of Birth/Age : |
21.01.1955 |
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Date of Appointment : |
25.03.2007 |
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Name : |
Mr. Avinash Chander Ahuja |
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Designation : |
Director |
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Address : |
C – 2 / 2533, Vasant Kunj, |
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Date of Birth/Age : |
20.01.1943 |
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Date of Appointment : |
29.06.2005 |
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Name : |
Mr. Pran Veer Gupta |
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Designation : |
Director |
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Address : |
House No.1987, Sector – 28, |
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Date of Birth/Age : |
05.02.1930 |
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Date of Appointment : |
09.05.1985 |
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Name : |
Mr. Shadi Lal Malhotra |
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Designation : |
Director |
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Address : |
2 / 16, Sarvpriya Vihar, |
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Date of Birth/Age : |
27.09.1925 |
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Date of Appointment : |
07.03.1998 |
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Name : |
Mr. Jitendra Kumar Agarwal |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
05.10.1952 |
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Date of Appointment : |
16.03.2006 |
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Name : |
Mr. Dil Mohan Bahl |
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Designation : |
Director |
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Address : |
E – 62, |
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Date of Birth/Age : |
13.08.1931 |
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Date of Appointment : |
20.01.1983 |
KEY EXECUTIVES
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Name : |
Mr. Pawan Babbar |
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Designation : |
Secretary |
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Address : |
B – 4 – 163, 1, Subhash Nagar, Abohar – 152116, |
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Date of Birth/Age : |
30.12.1978 |
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Date of Appointment : |
18.12.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Shri Bhagwan Dass Gupta and Shri Kamal Gupta |
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19400 |
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Shri Mani Lal Gupta |
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1400 |
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Smt. Deepika Nath and Shri Ravi Nath |
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1300 |
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Mr. Ishwar Chand |
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1300 |
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Shri A.K. Mittal |
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2500 |
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Bhai Apminder Singh |
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90200 |
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Master Jaskaran Singh |
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85000 |
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Smt. Gurcharan Kaur |
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88000 |
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Smt. Jasminder Kaur |
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85500 |
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Master Rasbir Singh |
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16000 |
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Mr. Navneet Kaur |
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10000 |
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Mr. Anil Kumar Sanjay Kumar |
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212500 |
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Mr. Hans Raj |
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262500 |
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Mr. Avtar Singh |
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25000 |
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Mr, Gurmail Singh |
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50000 |
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Mr. Najar Singh |
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50000 |
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Mr. Saroop Singh |
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50000 |
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Mr. Bhupinder Kumar |
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2500 |
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Shri Krishan Kumar |
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58500 |
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1000 |
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Shri Inderjit Singh Pahwa |
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52000 |
BUSINESS DETAILS
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Line of Business : |
Engaged in the business of manufacturing of Writing,
Printing and Wrapping Papers |
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Products : |
Item Code No. Product Description 48026009 Writing and Printing Paper |
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Agencies Held : |
· Cardinal Chemicals Private Limited, Baddi ·
Shree Laxmi Chemicals, Ahmedabad, |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash or Credit terms |
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Purchasing : |
L/C, Cash or Credit terms |
PRODUCTION STATUS
(As on 31.03.2004)
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Writing and Printing Paper |
MT |
40,000 |
55,000 |
41775.9 |
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GENERAL INFORMATION
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Customers : |
Wholesalers, Retailers and End Users |
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No. of Employees : |
Total 731 :- 195 in office + 522 in factory + 14 people in branch |
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Bankers : |
Punjab National Bank , Main Branch, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Amod Aggarwal & Associates Chartered Accountants, |
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Address : |
D-58, East of Kailash, |
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Tel. No.: |
91-11-26238809 / 26287864/85/86 |
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Fax No.: |
91-11-26472939 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9000000 |
Equity Shares |
Rs.10/- each |
Rs.90.000 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs.80.000
million |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
80.000 |
60.000 |
60.000 |
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2] Advance against share capital |
10.000 |
26.745 |
17.512 |
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3] Reserves & Surplus |
111.894 |
22.781 |
27.243 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
201.894 |
109.526 |
104.755 |
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LOAN FUNDS |
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1] Secured Loans |
338.029 |
497.507 |
449.554 |
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2] Unsecured Loans |
300.309 |
189.829 |
184.781 |
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TOTAL BORROWING |
638.338 |
687.336 |
634.335 |
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DEFERRED TAX LIABILITIES |
47.679 |
0.000 |
0.000 |
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TOTAL |
887.911 |
796.862 |
739.090 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
697.924 |
482.613 |
479.622 |
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Capital work-in-progress |
83.113 |
90.434 |
0.210 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
118.704
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167.809 |
201.097 |
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Sundry Debtors |
130.397
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133.912 |
120.870 |
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Cash & Bank Balances |
41.790
|
39.388 |
29.072 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
56.136
|
34.795 |
36.996 |
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Total
Current Assets |
347.027
|
375.904 |
388.035 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
214.309
|
152.089 |
128.777 |
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Provisions |
25.843
|
0.000 |
0.000 |
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Total
Current Liabilities |
240.152
|
152.089 |
128.777 |
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Net Current Assets |
106.873
|
223.815 |
259.258 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
887.911 |
796.861 |
739.090 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1483.204 |
1180.404 |
1098.176 |
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Other Income |
114.076 |
25.621 |
7.053 |
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Total Income |
1597.280 |
1206.025 |
1105.229 |
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Profit/(Loss) Before Tax |
137.593 |
(4.459) |
(11.712) |
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Provision for Taxation |
48.480 |
(0.002) |
0.000 |
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Profit/(Loss) After Tax |
89.113 |
(4.457) |
(11.712) |
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Export Turnover: |
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Sales of good manufactured |
48.568 |
33.546 |
0.000 |
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Total Earnings |
48.568 |
33.546 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
954.487 |
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Administrative Expenses |
0.000 |
0.000 |
32.414 |
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Raw Material Consumed |
797.200 |
667.562 |
0.000 |
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Purchases made for re-sale |
5.660 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
110.330 |
83.679 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
7.977 |
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Salaries, Wages, Bonus, etc. |
62.726 |
50.810 |
48.526 |
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Managerial Remuneration |
2.044 |
1.539 |
0.000 |
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Payment to Auditors |
0.181 |
0.112 |
0.000 |
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Interest |
35.075 |
63.664 |
57.9940 |
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Insurance Expenses |
0.812 |
1.384 |
0.000 |
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Power & Fuel |
328.365 |
257.211 |
0.000 |
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Depreciation & Amortization |
34.447 |
32.233 |
31.497 |
|
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Other Expenditure |
116.140 |
85.401 |
0.000 |
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Total Expenditure |
1492.980 |
1243.595 |
1132.895 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
5.57
|
0.36 |
10.5 |
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Net Profit Margin (PBT/Sales) |
(%) |
9.27
|
(0.37) |
(1.06) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
13.16
|
(0.51) |
(1.39) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.68
|
(0.04) |
(0.11) |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.18
|
1.38 |
1.22 |
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Current Ratio (Current Asset/Current Liability) |
|
1.44
|
2.47 |
2.78 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
SATIA PAPER MILLS
LIMITED |
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Presented By |
Shri. R.K.
Bhandari, Director |
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1) Date and description of instrument creating the change |
25.06.1986 Deed of hypothecation
modified on 17.10.1886, 12.01.1989, 04.12.1990, 24.02.1993, 09.09.1995,
25.04.1997, 04.06.1998 to Rs.66.000 millions registered on 24.06.1998 and
Rs.79.000 millions registered on 02.05.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.4.400 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation
Imported and indigenous, waste paper pulp, agriculture, residue such as wheat
straw, rice straw, sarkanda, kahi etc. paper cutting, cotton delinter, stock
in process chemicals, lubricants, store and spares used in plant and
machinery, fuel (coal and rice husk) manufactured by the company and packing materials
and book debts. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest
@17.75%p.a. extent and operation 100% repayable on demand margin 30% |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National
Bank, Muktsar |
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6) Date and brief description of instrument modifying the charge |
29.10.2003 Modified deed of
hypothecation and agreement of book dents |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Cash credit (cc)
Limit enhanced from Rs.79.000 to 100.000 millions includes CC (H) Rs.70.000
millions (from Rs.60.000 millions) CC (BD) Rs.60.000
millions (from Rs.50.000 millions) DD (Docy)
Rs.1.000 millions (existing same) DD (clean)
Rs.2.000 millions (from Rs.1.000 millions) Overall ceiling
from (1) to (4) Rs.100.000
millions with ubterest @PLR 1.50% Margin 25% |
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Corporate
identity number (CIN) Foreign company registration number |
L2102PB1980PLC004329 |
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Name of the
Company |
SATIA PAPER MILLS
LIMITED |
|
Address |
8, Rupana, Malout
– |
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This form is for |
Creation of
Charges |
|
Type of Charge |
Immovable
Property, Movable property (not being pledge) |
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Particulars of
the charge holder |
Punjab National
Bank Main Brabch, |
|
Amount secured by
the charge |
Rs.60.000
millions |
|
Brief of the
principal terms and conditions |
Rate of Interest BPLR – 1.25% +
0.5% Term Premium i.e. 11%p.a. Terms of Payments 16 quarterly
installment of Rs. 3.750 millions Margin – 25% Extent and
operation of the charge – 100% |
|
Description of
the property charged indicating |
Hypothecation of
hypo-washer, Modificaiton of Boller No. 4 and equipment for PM 1 and 2 worth Rs.86.733
millions to be purchased through bank finance Location VPO Rupana, Muktsar |
Fixed Assets
- Land
- Building
- Plant and Machinery
- Electrical Installation Fitting and Equipment
- Office Equipment
- Furniture and Fittings
- Vehicles
- Computers
- Fans and Cooler
Subject exports writing and printing paper.
Subject imports raw materials, spares parts and capital goods.
It is in trade terms with :-
- National
Curriculum and Text Book Board,
- Sams Traders,
- Northwest
Fibres,
- Allan
Company,
- Cellmark
Inc.,
- Mohanlal
Raichand Bafna, 32 Market Yard, Gultekdi, Pune- 411037
Tel No. :
91-20-24271114- Mr. Praful Batra
- Three Star
Company, 208 Jolly Bhavan 2, 7 New Marine Lines, Mumbai - 400020
Tel No. : 91- 22- 2624852 – Mr. Kalpesh
and Mr. Bhavesh
Tel No.:
91-121-2515002- Mr. Raju
- A. G. Impex,
Plot No. 186, Industrial Area, Phase – II,
Tel No. : 91- 172-3095342- Mr. Ajay
Goyel
- Kamal Paper,
Shop No. 9 g, Block No. 17, Shoe Market,
Tel No. : 91-
562-2523368/2523419
- Mangal Enterprises, # 920/3, Melaram House, 1st Floor,
Chawri Bazar,
Tel No. 91-11-23256561
/ 23256510
Mobile
No. 91-98100-60191
Contact Person : Mr. Rajeev Mangal
- Riddhi
Enterpriese, Century Bhavan. 3rd floor,
Tel No. :
91-22-24306043 – Mr. Kalpesh
AS PER WEBSITE
Largest Eco Friendly Paper Mill of
Manufacturers of high quality writing,
printing & speciality paper out of agricultural residues. The varieties
include Creamwove, Offset, Coloured, Ledger,
Computer Stationery Rolls, Duplicating, Watermarked Paper,
Cover, Maplitho Paper in GSM ranging from 40
to 175.
- Specialisation in Institutional sales, sales to Government Departments,
autonomous bodies through
Tenders, DGS&D Rate Contracts &
strong dealer network all over
LIST OF THEIR VALUED INSTITUTIONAL
CUSTOMERS
1.
2. Controller, Printing & Stationery,
3.
4. Central Board Of Secondary Education,
5.
6. National Book Trust,
7.
8.
9.
10. State Bank Of
11. Punjab National Bank, Jalandhar,
12. Controller, Printing & Stationery, Shimla.(H.P)
13. Controller, Printing & Stationery,
14. C.E.O.,Election Department, Jaipur, Rajasthan.
15. Controller, Printing & Stationery M.P.,
16. Supreme Court Of
17. Bal Bharti (M.S. Bureau Of Textbook...), Pune.
18.
19. Kendriya Bhandar,
20. Director, Printing & Stationery Up, Allahabad.(U.P)
21. Printing & Stationery
22.
Municipal Corpn. Of Mumbai, Mumbai,
23. Northern Railway,
24. Punjab Roadways,
25.
26.
27. Bihar Intermediate Education Board,
28.
29.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.54 |
|
|
1 |
Rs.80.21 |
|
Euro |
1 |
Rs.54.51 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
41 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|