MIRA INFORM REPORT
|
Report Date : |
21.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
TAMILNADU NEWSPRINT AND PAPERS LIMITED |
|
|
|
|
Registered
Office : |
67, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
16.04.1979 |
|
|
|
|
Com. Reg. No.: |
18-7799 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L22121TN1979PLC007799 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHET00028A / CHET06348G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT2935J |
|
|
|
|
Legal Form : |
Public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturers of Newsprint in Rolls or Sheets-others,
Paper and Duplicating Paper. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 32200000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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|
Comments : |
Subject is a well established and a reputed company having good track.
Financial position of the company appears to be sound. Director are reported to
be experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
67, |
|
Tel. No.: |
91-44-22354415
/ 16 / 18 / 22301094 / 95 / 96 / 97 /98 / 22350749 |
|
Fax No.: |
91-44-2235 0834 / 4614 |
|
E-Mail : |
response@tnpl.net / export@tnpl.co.in / sivakumar.vs@tnpl.co.in
|
|
Website : |
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|
|
|
Administrative Office : |
35, Anna Salai, Guindy, Chennai - 600 032, Tamilnadu |
|
|
|
|
Factory : |
Kagithapuram - 639 136, Karur District, Tamil Nadu |
|
Tel. No.: |
91-4324-277001 to 277017 |
|
Fax No.: |
91-4324-277025 / 26 / 27 |
|
|
|
|
Regional Offices: |
Located at : ·
Mumbai, ·
·
Kolkata, ·
Ernakulam, Kerala ·
·
|
|
|
|
|
Wind Farm : |
Situated at :- Tirunelveli District, Tamilnadu |
|
|
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|
Dealer Locator : |
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Branches : |
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DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Thiru Shaktikanta Das, I.A.S. |
|
Designation : |
Chairman |
|
Qualification : |
M.A |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. Thiru S Ramasundaram, I.A.S. |
|
Designation : |
Director |
|
Qualification : |
M.Sc. (Chem.), MS (Applied Demography), USC |
|
Other Directorship : |
Tamil Nadu Sugar Corporation Limited |
|
|
|
|
Name : |
Mr. Thiru V Murthy, I.A.S. |
|
Designation : |
Managing Director |
|
Qualification : |
M.A.B.L,
H.D.C. |
|
|
|
|
Name : |
Mr. Thiru K Gnanadesikan, I.A.S. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Thiru Sandeep Saxena, I.A.S. |
|
Designation : |
Director |
|
Qualification : |
B.E.
(Civil), M.Tech, (Water Resources Engg.IITD), MBA(International Fin.) M.A.(Eco.) |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. Thiru R S Agarwal |
|
Designation : |
Director |
|
Address : |
A-102, |
|
Qualification : |
Retd CGM from IDBI |
|
|
|
|
Name : |
Mr. Thiru R. R. Bhandari |
|
Designation : |
Director |
|
Address : |
HB-292, Sector 3, Flat No. 8, |
|
Qualification : |
B.Sc. Engineering (Mech.) |
|
|
|
|
Name : |
Mr. Thiru N Kumaravelu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Thiru V R Mehta |
|
Designation : |
Director |
|
Qualification : |
An Honours degree in Engineering from BITS, Pilani |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. Thiru V Narayanan |
|
Designation : |
Director |
|
Address : |
Flat No. 19, “The Manor” No. 1, |
|
Qualification : |
M.
Sc. (Chemistry) |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. Thiru G Prabhakara |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Thiru A Velliangiri |
|
Designation : |
Director (Finance) |
|
Address : |
Agastiyar Manor, Flat No. 1B, 13, |
|
Qualification : |
B. Com., FCA, AICWA, FCS, MBA, |
|
|
|
|
Name : |
Mr. MD Nasimuddin |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. D Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dayaanand Kataria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R Thiagarajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M F Farooqui |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Category of
Shareholder |
Total No. of
Shares |
% of total No. of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
24,444,900 |
35.32 |
|
|
24,444,900 |
35.32 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
24,444,900 |
35.32 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
12,665,556 |
18.30 |
|
|
875,939 |
1.27 |
|
|
2,808,580 |
4.06 |
|
|
10,847,364 |
15.67 |
|
|
1,380,846 |
2.00 |
|
|
28,578,285 |
41.29 |
|
|
|
|
|
|
4,539,480 |
6.56 |
|
|
|
|
|
|
6,611,269 |
9.55 |
|
|
3,887,403 |
5.62 |
|
|
1,149,263 |
1.66 |
|
|
36,008 |
0.05 |
|
|
599,638 |
0.87 |
|
|
498,117 |
0.72 |
|
|
15,000 |
0.02 |
|
|
500 |
- |
|
|
16,187,415 |
23.39 |
|
Total Public shareholding (B) |
44,765,700 |
64.68 |
|
Total (A)+(B) |
69,210,600 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
69,210,600 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Newsprint in Rolls or Sheets-others,
Paper and Duplicating Paper. |
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Products : |
Product range including
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Exports : |
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Products : |
Super Printing, Hitech Maplitho, OS 2000 and Newsprint |
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|
Countries : |
Sri Lanka, Singapore, Malaysia, Philippines, Indonesia,
Myanmar, Muscat, Dubai, Egypt, Jordan, South Africa, Nigeria, Australia,
Korea, UK, Greece and Taiwan |
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Imports : |
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Products : |
Pulp, coal, spares, machinery, etc |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash or Credit (30 days) terms |
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Purchasing : |
L/C, Cash or Credit (30 days) terms |
PRODUCTION STATUS
AS ON 31.03.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Newsprint/Printing
& Writing Paper |
tons |
245000 |
245008 |
GENERAL INFORMATION
|
Customers : |
Wholesalers, End Users and Government Departments
|
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No. of Employees : |
1777 Approximately |
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Bankers : |
Commercial Branch,
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Facilities : |
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|
|
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|
Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
P B
Vijayaraghavan and Company Chartered
Accountants |
|
Address : |
No. 14 (Old No., 27) |
|
|
|
|
Name : |
Maharaj
N.R. Suresh and Company Chartered
Accountants |
|
Address : |
NewNo.9,OldNo.5,IILane, |
|
|
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
135000000 |
Equity Shares |
Rs. 10 each |
Rs.1350.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70000000 |
Equity Shares |
Rs. 10 each |
Rs.700.000 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
69210600 |
Equity Shares |
Rs. 10 each |
Rs.692.106 millions |
|
|
ADD: Shares Forfeited |
|
Rs. 1.672 million |
|
|
|
|
Rs.693.778 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
693.778 |
693.778 |
693.778 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7351.243 |
5949.375 |
5706.320 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8045.021 |
6643.153 |
6400.098 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10548.981 |
6850.426 |
4706.039 |
|
|
2] Unsecured Loans |
3080.085 |
1214.083 |
837.343 |
|
|
TOTAL BORROWING |
13629.066 |
8064.509 |
5543.382 |
|
|
DEFERRED TAX LIABILITIES |
2101.300 |
2198.500 |
1883.500 |
|
|
|
|
|
|
|
|
TOTAL |
23775.387 |
16906.162 |
13826.980 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
12440.862 |
12212.579 |
9929.069 |
|
|
Capital work-in-progress |
8525.001 |
2626.974 |
2907.030 |
|
|
|
|
|
|
|
|
INVESTMENT |
113.999 |
11.405 |
171.542 |
|
|
DEFERREX TAX ASSETS |
96.241 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1691.130
|
1963.921
|
1472.646 |
|
|
Sundry Debtors |
1995.691
|
1697.383
|
985.646 |
|
|
Cash & Bank Balances |
193.631
|
176.715
|
230.442 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
2059.394
|
1436.887
|
1216.411 |
|
Total
Current Assets |
5939.846
|
5274.906 |
3905.145 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1398.369
|
1190.429 |
2077.579 |
|
|
Other Current Liabilities |
851.304
|
1020.136
|
248.495 |
|
|
Provisions |
1090.889
|
1009.137
|
759.732 |
|
Total
Current Liabilities |
3340.562
|
3219.702 |
3085.806 |
|
|
Net Current Assets |
2599.284
|
2055.204 |
819.339 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
23775.387 |
16906.162 |
13826.980 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
10256.774 |
10664.631 |
9385.271 |
|
|
|
Other Income |
479.376 |
338.396 |
311.275 |
|
|
|
TOTAL (A) |
10736.150 |
11003.027 |
9696.546 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing expenses |
5982.976 |
6496.687 |
5736.457 |
|
|
|
Personnel expenses |
875.093 |
814.075 |
681.106 |
|
|
|
Administration, selling & other
expenses |
761.805 |
798.472 |
649.002 |
|
|
|
TOTAL (B) |
7619.874 |
8109.234 |
7066.565 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3116.276 |
2893.793 |
2629.981 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
461.846 |
492.704 |
242.458 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2654.430 |
2401.089 |
2387.523 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1155.574 |
1007.953 |
755.355 |
|
|
|
|
|
|
|
|
|
Add |
Prior period /
Exceptional Items |
20.387 |
169.974 |
1632.168 |
|
|
Add |
Extra Ordinary Items
|
61.420 |
15.409 |
(1.531) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1580.663 |
1578.519 |
1630.637 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
320.019 |
504.651 |
502.337 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1260.644 |
1073.868 |
1128.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
217.697 |
224.208 |
200.287 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
850.000 |
680.000 |
740.000 |
|
|
|
Debenture Redemption Reserve |
56.800 |
36.000 |
0.000 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
138.421 |
|
|
|
Dividend |
311.448 |
311.448 |
173.027 |
|
|
|
Tax on Dividend |
51.728 |
52.931 |
52.931 |
|
|
BALANCE CARRIED
TO THE B/S |
208.365 |
217.697 |
224.208 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1768.608 |
1296.123 |
1382.176 |
|
|
TOTAL EARNINGS |
1768.608 |
1296.123 |
1382.176 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
87.297 |
379.709 |
783.908 |
|
|
|
Stores & Spares |
248.373 |
212.912 |
143.876 |
|
|
|
Imported coal |
1512.114 |
1741.576 |
1184.113 |
|
|
|
Capital Goods |
4241.542 |
1759.268 |
199.631 |
|
|
TOTAL IMPORTS |
6089.326 |
4093.465 |
2311.528 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.03 |
12.84 |
16.32 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
2972.200 |
2972.000 |
2749.400 |
|
Total Expenditure |
2073.500 |
2032.300 |
2029.900 |
|
PBIDT (Excl OI) |
898.700 |
939.700 |
719.500 |
|
Other Income |
3.700 |
3.400 |
2.500 |
|
Operating Profit |
902.400 |
943.100 |
722.000 |
|
Interest |
78.100 |
66.000 |
85.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
824.300 |
877.100 |
636.700 |
|
Depreciation |
272.500 |
290.500 |
283.600 |
|
Profit Before Tax |
551.800 |
586.600 |
353.100 |
|
Tax |
153.100 |
178.800 |
67.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
398.700 |
407.800 |
286.100 |
|
Extraordinary Items |
0.000 |
123.400 |
78.400 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
398.700 |
531.200 |
364.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
11.74
|
9.75 |
11.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.41
|
14.80 |
17.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.59
|
9.03 |
11.78 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.23 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.37
|
2.02 |
1.64 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77
|
1.63 |
1.26 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE HIGHLIGHTS OF THE YEAR:
1. Sales crossed Rs.10000
millions for the second consecutive year in the company’s history.
2. The Profit
after tax has increased by 17.39% from Rs.1073.800 millions to Rs.1260.600
millions – despite the adverse economic environment.
3. The dividend
has been maintained at 45%
4. Substantial
progress has been made in the execution of the Mill Expansion Plan (MEP) to
increase capacity from 2,45,000 tonnes to 4,00,000 tonnes per annum. The
project is likely to be completed by October 2010. The overall cost of MEP will
be Rs.10000 millions.
5. Copier
production during the year was 57395 tonnes.
6. 50394 Mts. of
Printing and Writing Paper were exported during the year to 44 countries - an
increase of 50.6% over 2008-09.
7. Hardwood Pulp
production was 95514 Mts. Against 84854 mts in the previous year
8. The wind farm
earned a profit of Rs.588.34 lakh during the year through the generation of
64.430 millions units of windpower.
9. Cumulatively
51220 acres of land has been brought under this company’s Farm Forestry Scheme
and Captive Plantation Scheme, benefiting over 10,008 farmers.
10. The
Bio-methanation Plant generated 5.798 millions cubic metres of methane gas
enabling the company to reduce consumption of 3,459 KL of furnace oil.
11. Life Cycle Extension
Project of Paper Machine I was completed by April 2009 at a capital investment
of Rs.819.300 millions.
12. The company
has achieved an overall capacity utilization of 100%.
OVERALL PERFORMANCE - OTHER HIGHLIGHTS
The company has
achieved an overall capacity utilization of 100.00%. The strategy of keeping
the entire production as printing and writing paper has helped maintaining the
profitability during the year. With the rise in coal price, export of power
under normal tariff was uneconomical. Therefore, power export during the year
was restricted to the barest minimum of 15.810 millions units against 20.893
millions units in the previous year. Total power generation during the year was
410.381 millions units against 399.488 millions units in the previous year.
During the year, the company has drawn 2.172 millions units of power from the
State grid, equivalent to less than 1% of the total consumption.
Bagasse stock at
the end of the year was 286734 MT. With the company switching over to ECF bleaching
and implementation of various water conservation measures, water consumption
was reduced to an average of 66 kl. per MT of finished production during the
year. On implementation of Mill Expansion Plan during 2010-11, water
consumption would be further reduced. TNPL has already registered two Clean
Development Mechanism (CDM) Projects with United Nations Framework Convention
on Climate Change (UNFCCC), one in the waste management sector (bio gas) and
another in the renewable energy sector (wind farm). These two projects generate
about 54000 Certified Emission Reduction (CER) per annum. TNPL is presently
working on three more CDM projects viz. Energy efficiency improvement in
Chemical Recovery boiler, generation of biogas from mill waste for replacing the
usage of furnace oil and wind farm. These projects are likely to be registered
with UNFCCC during the current financial year. The Company has spent Rs.84.079
millions for MEP upto 31.3.2010. The Project is expected to commence operation
by October 2010. During the year, the Company temporarily utilized short term
funds Rs.5.067 millions for the Project. This portion has eventually been tied
up in the form of long term loans with banks as on 31.3.2010.
OUTLOOK
Printing and
writing paper consumption is expected to grow by 7% per annum and Newsprint by
4-5% per annum. The literacy drive supported by the Govt. and consistent
economic growth at 7-8% per annum are the key drivers of growth in the printing
and writing paper. Within the printing and writing paper, branded copier is
fast growing at about 19% per annum while non-surfaced paper growing at 5-6%
and surfaced size maplitho at 8-9% per annum. Waste paper prices in the global
market hardened from December 2009. Hardwood pulp prices increased from about USD
400 per ADMT in April 2009 to about USD 850 per ADMT in March 2010 and softwood
pulp prices from USD 458 per ADMT in April 2009 to USD 950 per ADMT in March
2010 due to short supplies. Pulp prices are likely to remain at the current
level for few more months till demand supply mismatches are narrowed down. The
spurt in the waste paper and pulp prices and the general increase in demand
have helped demand for paper and paper products both in the domestic market and
export. Impacted by the increase in cost and improvement in the demand
scenario, the mills have increased the Printing and Writing Paper prices since
April 2010 in the domestic market and export. If the demand scenario in
domestic and export markets continues, 2010-11 should be a good year for TNPL.
MANAGEMENT DISCUSSION AND ANALYSIS
INTRODUCTION
In the year 1979,
Government of Tamil Nadu established Tamil Nadu Newsprint and Papers Limited as
a public limited Company under the Companies Act, 1956. Commencing production
in 1984 at a modest 90,000 tonnes per annum, the Company has made rapid strides
and has emerged today as the largest paper mill in
INDUSTRY SCENARIO
Paper and other
papers. TNPL is present in the Newsprint and Printing and Writing Paper
categories. Based on the usage of raw material, companies in the Paper Industry
can be divided into three categories namely, wood-based, agro-based and waste
paper based (Recycled fibre). While a majority of the large mills are wood
based mills with the raw materials sourced from captive plantations and
contract farming, TNPL stands out as a unique enterprise predominantly using
agro based renewable raw material viz. bagasse for manufacturing both Newsprint
and Printing and Writing Paper. Of the total consumption, Printing and Writing
paper accounts for about 35%, Newsprint 20% and Industrial and Speciality
Papers 45%. The per capita consumption of paper is about 8.5 Kg. against the
world average of 55 Kg. and Asian average of 45 Kg. Of the total capacity, 39%
is wood based, 31% agro based and the balance 30% waste paper (recycled fibre)
based. 35% of the capacity is located in North, 30% in West, 30% in South and
5% in East. With the continuous growth in the GDP and improvements in literacy
rate and standard of living, the demand for paper and paper products is growing
at the annual rate of 7 - 8%. The demand growth in the next three years is
likely to be about 4 - 5% in newsprint, 5 - 6% in non-surface sized paper, 8 -
9% in surface sized paper, 18 - 19% in cut size copier paper and 5% in
speciality paper.
FUTURE PLANS
Mill Expansion Plan
The Company has taken
up Mill Expansion Plan (MEP) to increase the paper production capacity from the
present level of 245,000 tonnes to 400,000 tpa at a total capital outlay of
Rs.10000 millions. The MEP involves installation of a state-of-the-art Paper
Machine (PM# 3) with a production Capacity of 155,000 tpa of fine paper,
Backward integration of Chemical Bagasse Pulp ECF Bleach plant and new high
pressure Multifuel Boiler of 125 tph steam generation capacity. The Project is
likely to be completed by October 2010.
Revamping of Steam and Power system:
Three old low
pressure boilers installed during the year 1984 will be replaced with a new
energy efficient and environmental friendly Circulation Fluidised Bed
Combustion (CFBC) Boiler of 125 tph steam generation capacity of 105 ata
pressure rating. In addition, two old Turbo Generator sets will be replaced
with a new TG set of 40 MW capacity to augment the in-house power generation
for meeting the additional power requirement. The Project at a capital outlay
of Rs.1350 millions has been taken up for implementation and will be completed
by December 2011.
De-inking plant:
To meet the
additional requirement of pulp in the post-MEP, TNPL has initiated steps to
install a state-of-the-art De-inking plant of capacity 300 tpd, at an estimated
capital outlay of Rs. 1740 millions. The project is targeted to be completed by
December 2011.
Limesludge and flyash management (600 tpd cement
plant)
The lime sludge
generation from the recovery cycle and the fly ash generated from the power
boilers are issues of
concern in solid
waste management. An innovative solution of combining these two and converting
them into high grade cement has been drawn through installation of a 600 TPD
clinker manufacturing plant abutting the mill premises. The procurement action
for the machinery has been initiated and the Company is in the process of
obtaining the environmental clearance. This project would be undertaken at a
capital outlay of Rs.630 millions and completed by December 2011.
On-site Precipitated Calcium Carbonate (PCC) plant:
With the switching
over to use Precipitated Calcium Carbonate (PCC) as the wet end filler and
increased volume of consumption, TNPL has proposed to install an on-site PCC
plant of 60,000 tpa capacity on Built, Own and Operate (BOO) basis in the Mill
premises. The plant will be established by OMYA International AG,
FIXED ASSETS
Tangible Assets
Ø Land
Ø Buildings
Ø On Free
Ø On
Ø Railway Sidings
Ø Plant and
Machinery
Ø On Free
Ø On
Ø Furniture and
Fixtures
Ø Other Equipments
Ø Vehicles
Intangible Assets
Ø Computer Software
PRESS
RELEASE
11th
FEBRUARY 2011 TNPL Q3 Net up by 17.50%
·
Tamil
Nadu Newsprint and Papers Limited (TNPL) has reported total revenue of
Rs.267.54 Crore for the quarter ended 31.12.10 against Rs.239.62 Crore in the
previous year and for the nine months ended 31.12.10, the total revenue is
Rs.847.14 Crore as against Rs.679.55 Crore in the previous year.
·
Profit
before Tax (PBT) for the quarter ended 31.12.10 is Rs.47.05 Crore after
providing for Rs.28.35 Crore towards depreciation and Rs.8.53 Crore towards
Interest and finance charges.
·
Profit
after Tax (PAT) for the quarter ended 31.12.10 is Rs.36.45 Crore against
Rs.31.02 Crore in the previous year registering an increase of 17.50%
·
Profit
before Tax (PBT) for the nine months ended 31.12.10 is Rs.179.38 Crore after
providing for Rs.84.65 Crore towards depreciation and Rs.22.94 Crore towards
Interest and finance charges against Rs.100.62 Crore in the previous year.
·
Profit
after Tax (PAT) for the nine months ended 31.12.10 is Rs.129.45 Crore against
Rs.67.82 Crore in the previous year.
·
The
new state-of-art paper machine (Paper Machine-3) was inaugurated on 19th
January 2011. With this, the production capacity of the mill has increased from
2,45,000 MT per annum to 4,00,000 MT per annum.
·
TNPL
has received National Award for “Excellence in Water Management 2010” from
Confederation of Indian Industry (CII) for the best performance in Water
Management in
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.44.38 |
|
|
1 |
Rs.72.56 |
|
Euro |
1 |
Rs.63.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.