MIRA
INFORM REPORT
|
Report Date : |
27.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
BALLARPUR INDUSTRIES LIMITED |
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|
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Registered
Office : |
P.O. Ballarpur Paper Mills, Chandrapur Ballarpur – 442 901, |
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Country : |
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Financials (as
on) : |
30.06.2010 |
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Date of
Incorporation : |
26.04.1945 |
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Com. Reg. No.: |
11-010337 |
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Capital
Investment / Paid-up Capital : |
Rs.1311.234 Millions |
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CIN No.: [Company Identification
No.] |
L21010MH1945PLC010337 |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange. |
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Line of Business
: |
Manufacture and Exporter of Writing and Printing (W and P) Paper. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 66052000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are 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 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
P.O. Ballarpur Paper Mills, Chandrapur Ballarpur – 442 901, |
|
Tel. No.: |
91-124-2804 242/43 |
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Fax No.: |
91-124-280 4260/61 |
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E-Mail : |
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Website : |
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Head Office : |
Thapar House, 124 Janpath, |
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Operating Office : |
First India Place, Tower–C, Block–A, Sushant Lok–I, Mehrauli–Gurgaon
Road, Gurgaon – 122 002, Haryana, India |
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Tel. No.: |
91-124-2804242/ 2804243 |
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Fax No.: |
91-124-2804260-61 |
DIRECTORS
As on 30.06.2010
|
Name : |
Mr. Gautam Thapar |
|
Designation : |
Chairman |
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Name : |
Mr. R.R. Vederah |
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Designation : |
Manager Director |
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Name : |
Mr. B. Hariharan |
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Designation : |
Group Director (Finance) |
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Name : |
Mr. A.P. Singh |
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Designation : |
Director - Nominee of LIC |
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Name : |
Mr. R.K. Ahooja |
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Designation : |
Director |
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Name : |
Mr. Sanjay Labroo |
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Designation : |
Director |
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Name : |
Mr. A.S. Dulat |
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Designation : |
Director |
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Name : |
Mr. Ashish Guha |
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Designation : |
Director |
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Name : |
Dr. Pramath Raj Sinha |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Akhil Mahajan |
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Designation : |
Company Secretary |
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Name : |
Mr. Vivek Kumar Goyal |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
1,161,216 |
0.18 |
|
|
322,689,469 |
49.23 |
|
|
323,850,685 |
49.40 |
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|
|
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Total shareholding of Promoter and Promoter Group (A) |
323,850,685 |
49.40 |
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(B) Public Shareholding |
|
|
|
|
|
|
|
|
73,623,098 |
11.23 |
|
|
149,741 |
0.02 |
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|
5,550 |
- |
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|
66,106,576 |
10.08 |
|
|
95,005,759 |
14.49 |
|
|
9,041,138 |
1.38 |
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|
9,041,138 |
1.38 |
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|
243,931,862 |
37.21 |
|
|
|
|
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|
24,960,697 |
3.81 |
|
|
|
|
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42,002,922 |
6.41 |
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11,964,897 |
1.83 |
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|
8,812,653 |
1.34 |
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|
983,740 |
0.15 |
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7,487,871 |
1.14 |
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|
341,042 |
0.05 |
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87,741,169 |
13.38 |
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Total Public shareholding (B) |
331,673,031 |
50.60 |
|
Total (A)+(B) |
655,523,716 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
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|
123 |
- |
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|
123 |
- |
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Total (A)+(B)+(C) |
655,523,839 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Foreign Financial InstitutionsBUSINESS DETAILS
|
Line of Business : |
Manufacture and Exporter of Writing and Printing (W and P) Paper. |
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Products : |
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PRODUCTION STATUS (AS ON 30.06.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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|
|
|
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|
Paper including wrapper and coated paper |
M.T. |
232.068 |
206.313 |
|
|
|
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Note:
a) The installed capacity
is as certified by the Management and license capacity is not given as
licensing is not applicable.
b) Includes
Production 9263 MT of Coated Paper at Unit Shree Gopal converted out of the
paper manufactured by company.
c) Includes Production
5411 MT of Paper Stationery converted out of the paper manufactured by company.
d) The Installed Capacity and Actual Production of paper and wrapper
includes Specialised Grades of paper.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
v
Hongkong and Shanghai Banking Corporation Limited
v
Citi Bank |
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Facilities : |
Notes 1. These
comprise of :- (a) T he above Debentures
are secured by parri-passu first charge created on all immoveable and
moveable properties of the Company both present and future. (b) The
Debentures referred to above are redeemable at par, in one or more
installments, on various dates with earliest redemption being on 31st
July 2010 and the last being due on 30th June 2013.The amount of
Debentures due for redemption for the financial year 2010-11 is Rs.300.000
millions. 2. The above
Term loans and ECBs are secured by Parri Passu first charge created/to be
created on all immoveable and moveable properties of the Company both present
and future except ECB from HSBC and CITI Bank which is secured by the first
parri passu charged on all the moveable properties of the company both
present and future.
* Unclaimed
matured deposits which will be credited to Investor Education and Protection
fund. The actual amount to be transferred to the fund will be determined on
respective due dates. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K. K. Mankeshwar and Company Chartered Accountants |
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Group Companies : |
v
Crompton Greaves Limited v
The Global Green Company Limited v
Solaris ChemTech Industries Limited v
Avantha Power and Infrastructure Limited v
Biltech Building Elements Limited v
Salient Business Solutions Limited v
Avantha Technologies Limited |
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|
Subsidiary Companies : |
v Ballarpur
International Holdings B.V. v Ballarpur Paper
Holdings B.V.* v v BILT Tree Tech Limited v BILT Graphic
Paper Products Limited* v Ballarpur
International Paper Holdings B.V.* v Ballarpur
International Graphic Paper Holdings B.V. v Ballarpur
Speciality Paper Holdings B.V. v Ballarpur
Packaging Holdings B.V. v Ballarpur
International Packaging Holdings B.V. v Ballarpur
Packaging Holdings Private Limited * Step Down subsidiaries of Ballarpur International Holdings B.V. v Ballarpur Paper
Holdings B.V.* v v BILT Tree Tech
Limited v BILT Graphic
Paper Products Limited* v Ballarpur
Speciality Paper Holdings B.V. v Ballarpur
Packaging Holdings B.V. * Step Down subsidiaries of Ballarpur International Holdings B.V. |
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v APR Sacks
Limited v ASA Agencies (P)
Limited v Asia Aviation
Limited v Avantha Holdings
Limited (formerly known as NewQuest Corporation Limited) v Avantha Power
and Infrastructure Limited v Avantha Realty
Limited (formerly known as Janpath Investments and Holdings Limited) v Avantha Technologies
Limited (earlier NewQuest Process Outsourcing Private Limited) v Bilt Industrial
Packaging Company Limited v Biltech Building
Elements Limited v Crompton Greaves
Limited v Global Green
Company Limited v Imerys Newquest
( v Krebs and Cie ( v Mirabelle
Trading Pte. Limited v Salient Business
Solutions Limited v Solaris Chemtech
Industries Limited (earlier Solaris Bio Chemicals Limited) v Solaris Holdings
Limited v The Paperbase
Company Limited v UH L Power
Company Limited |
CAPITAL STRUCTURE
AS ON 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1487500000 |
Equity Shares |
Rs.2/- each |
Rs.2975.000 Millions |
|
10250000 |
Preference Shares |
Rs.100/- each |
Rs.1025.000 Millions |
|
|
Total |
|
Rs.4000.000 Millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
1030005910 |
Equity Shares |
Rs.2/- each |
Rs.2060.012 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
655773584 |
Equity Shares |
Rs.2/- each |
Rs.1311.546 Millions |
|
|
Less: 249745 Equity Shares of Rs.2/- each forfeited |
|
Rs.0.499 Million |
|
655523839 |
Equity Shares |
Rs.2/- each |
Rs.1311.047 Millions |
|
|
Add: Forfeited Shares
(amount paid up) |
|
Rs.0.187 Million |
|
|
Total |
|
Rs.1311.234
Millions |
I. PRE-SPLIT AND
BUYBACK OF EQUITY SHARES:
a) 35,000 Equity
Shares of Rs. 10/- each allotted as fully paid up without payment being
received in cash.
b) 15,423,900-1/2 Equity
Shares of Rs.10/- each allotted as fully paid up by way of Bonus Shares
capitalised from General Reserve and Share Premium Account.
c) 950,000 Equity
Shares of Rs.10/- each fully paid up issued to Financial Institutions on part
conversion of Loans/Debentures.
d) 4,374,945
Equity Shares of Rs.10/- each allotted as fully paid up to the Shareholders of
Amalgamating Companies pursuant to the Schemes of Amalgamation.
e) 135,174 Equity
Shares of Rs.10/- each allotted as fully paid up on conversion of 237-4% Euro
Bonds of the Face Value of US$ 11,85,000/-.
f) 11,887,469
Equity Shares of Rs.10/- each allotted as fully paid up, in terms of Scheme of
Arrangement and Reorganisation.
g) 12,649,218
Equity Shares of Rs.10/- each allotted as fully paid up, pursuant to the scheme
of Arrangement and Amalgamation between the company and Bilt Graphic Papers
Limited
h) 21,160,820
Equity shares of Rs.10/- each allotted as fully paid up against Global
Depository Shares (GDS) aggregating to USD 35 Million.
i) 92,775 Equity Shares
of Rs.10/- each allotted as fully paid up on conversion of 9.5 % Fully
Convertible Debentures.
j) 23,278,276
Equity shares of Rs.10/- each allotted in the previous year at a premium of Rs.
76.20/- per share against conversion of Foreign Currency Convertible Bonds
(FCCB) of Face Value US$ 45,000,000.
II. POST-SPLIT AND
BUYBACK OF EQUITY SHARES:
a) Pursuant to the
Scheme of Arrangement and Reorganisation under Section 391 - 394 of the
Companies Act 1956, approved by High Court of Mumbai (Nagpur Bench) vide its
order dated 30.11.2007 (Scheme), one Equity Share of Rs.10/- each was
subdivided into five Equity Shares of Rs.2/- each and simultaneous compulsory
buyback of two Equity Shares of Rs. 2 each at a price of Rs. 25/- each per
share. Consequently 371,414,860, Equity Shares of Rs. 2/- each were bought back
by the Company at a price of Rs. 25/- per share.
b) Pursuant to the
Scheme, certain small shareholders, holding 1,598,451 equity share of Rs.2/-
each exercised their option for buyback at a price of Rs.30/- per share and
were bought back by the Company.
c) During the
year, the Company had allotted the following equity shares to Bilt Paper
Holdings Limited (BPHL), a promoter:
(i) 45,000,000 Equity
Shares at Rs.30/- per share (face value of Rs.2/- and Premium of Rs.28/-)
(ii) 55,000,000
Equity Shares at Rs.30/- per share (face value of Rs.2/- and Premium of
Rs.28/-) upon conversion of 55,000,000 unsecured zero coupon compulsory
convertible bonds.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1311.234 |
1111.234 |
1111.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15201.781 |
12386.488 |
11568.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16513.015 |
13497.722 |
12679.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3864.525 |
5090.402 |
5427.800 |
|
|
2] Unsecured Loans |
4756.292 |
3806.037 |
3979.100 |
|
|
TOTAL BORROWING |
8620.817 |
8896.439 |
9406.900 |
|
|
DEFERRED TAX LIABILITIES |
1008.713 |
968.713 |
916.178 |
|
|
|
|
|
|
|
|
TOTAL |
26142.545 |
23362.874 |
23003.034 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
9715.808 |
8488.151 |
7639.253 |
|
|
Construction and Installation – in Progress including Expenditure thereon
(Pending Allocation |
855.139 |
1918.260 |
747.504 |
|
|
Advance against Capital Assets |
29.613 |
22.353 |
598.945 |
|
|
|
|
|
|
|
|
INVESTMENT |
11510.275 |
2855.471 |
2855.471 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1783.281 |
1300.003 |
1344.596 |
|
|
Sundry Debtors |
2218.652 |
2054.245 |
1852.520 |
|
|
Cash & Bank Balances |
821.917 |
104.107 |
3637.830 |
|
|
Interest accured on Investment and Fixed Deposits |
0.239 |
0.197 |
0.113 |
|
|
Loans & Advances |
4447.613 |
10298.534 |
7831.924 |
|
Total
Current Assets |
9271.702 |
13757.086 |
14666.983 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
150.778 |
34.907 |
20.118 |
|
|
Other Current Liabilities |
2474.552 |
1426.159 |
1283.973 |
|
|
Provisions |
2614.662 |
2254.030 |
2260.655 |
|
Total
Current Liabilities |
5239.992 |
3715.096 |
3564.746 |
|
|
Net Current Assets |
4031.710 |
10041.990 |
11102.237 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
36.649 |
59.624 |
|
|
|
|
|
|
|
|
TOTAL |
26142.545 |
23362.874 |
23003.034 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10205.779 |
9993.310 |
9349.200 |
|
|
|
Other Income |
63.195 |
49.503 |
30.012 |
|
|
|
TOTAL (A) |
10268.974 |
10042.813 |
9379.212 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Costs |
6566.364 |
6475.062 |
5878.397 |
|
|
|
Purchases |
566.741 |
432.620 |
359.841 |
|
|
|
Personnel Costs |
697.591 |
617.964 |
491.719 |
|
|
|
Administration, Selling and Miscellaneous Costs |
505.045 |
360.631 |
201.670 |
|
|
|
Deferred Revenue Expenditure – Amortised (Net) |
36.649 |
40.973 |
64.095 |
|
|
|
Increase / Decrease in Stock |
(34.420) |
(214.020) |
98.862 |
|
|
|
TOTAL (B) |
8337.970 |
7713.230 |
7094.584 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1931.004 |
2329.583 |
2284.628 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
223.226 |
137.766 |
278.128 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1707.778 |
2191.817 |
2006.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
833.743 |
769.544 |
633.780 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
874.035 |
1422.273 |
1372.720 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
291.201 |
168.420 |
78.242 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
582.834 |
1253.853 |
1294.478 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3025.269 |
2271.384 |
1704.639 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
250.000 |
300.000 |
|
|
|
Proposed Dividend |
382.199 |
324.968 |
388.867 |
|
|
BALANCE CARRIED
TO THE B/S |
3150.904 |
3025.269 |
2271.384 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F. O B. Value of Exports |
204.988 |
96.874 |
230.731 |
|
|
|
Interest on Loan |
53.849 |
212.671 |
70.917 |
|
|
|
Other Earnings |
6.621 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
265.211 |
309.545 |
301.648 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
900.043 |
549.735 |
977.940 |
|
|
|
Components, Spare Parts and Other Stores |
127.502 |
520.568 |
86.913 |
|
|
|
Others |
50.288 |
47.685 |
22.345 |
|
|
TOTAL IMPORTS |
1077.833 |
1117.988 |
1087.198 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
1.02 |
2.26 |
NA |
|
|
|
- Diluted |
0.92 |
2.02 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
2569.700 |
2764.500 |
2613.700 |
2700.200 |
|
Total Expenditure |
2133.200 |
2322.700 |
2157.100 |
2315.700 |
|
PBIDT (Excl OI) |
436.500 |
441.800 |
456.600 |
384.500 |
|
Other Income |
0.000 |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
436.500 |
441.800 |
456.600 |
384.500 |
|
Interest |
84.800 |
84.900 |
94.800 |
110.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
351.700 |
356.900 |
361.800 |
274.400 |
|
Depreciation |
193.300 |
208.000 |
209.300 |
229.800 |
|
Profit Before Tax |
158.400 |
148.900 |
152.500 |
44.600 |
|
Tax |
61.300 |
58.100 |
59.300 |
24.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
97.100 |
90.800 |
93.200 |
20.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
97.100 |
90.800 |
93.200 |
20.500 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
PAT / Total Income |
(%) |
5.67 |
120.23 |
13.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.51 |
136.38 |
14.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.42 |
10.33 |
9.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.10 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.31 |
0.27 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76 |
3.70 |
4.11 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The net sales of
the Company increased by 34 per cent over the previous year to Rs.37945.900 Millions.
Despite significantly higher depreciation and finance charges on account of
significant on stream capacity expansions, the Company increased its net profit
after tax by almost 28 per cent over the previous year to Rs.2404.100 Millions.
During the year,
there were significant turnarounds in the pulp business at Kamalapuram and the
Malaysian operations at Sabah Forest Industries Sdn. Bhd. (SFI), the Company’s
Malaysian subsidiary. SFI registered an annual domestic volume growth of 30 per
cent.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The global economic slowdown, witnessed since
September 2008, continued through the first half of 2009. Most developed
economies registered very low
or negative GDP growth. This was
particularly true for countries in
There were some positive signs since October 2009.
With a degree of stabilisation in financial markets, there
were renewed capital flows, especially into the emerging markets of
The paper and pulp industry has a strong intrinsic correlation with economic development. And, in line with the macro environment, there has been a gradual improvement in demand through the course of 2009-10. The structural changes in the industry has become even more apparent. With demand being subdued, particularly in developed markets, the industry has become much more price sensitive. This has started putting immense pressure on high cost production facilities in these western countries, paving way for low cost producers in the east to increase their exports.
While paper prices improved during 2009- 10, the increase was not in line with the price growth seen in raw materials, particularly pulp. In effect, there was a major squeeze in the margin between pulp prices and paper
prices, putting a lot of pressure on profit margins of paper manufacturing companies.
Being a leading
Indian paper manufacturer with global presence,
subject was directly or indirectly affected by all these
developments. With manufacturing facilities in
PAPER BUSINESS
MARKETS AND PRODUCTS
In line with
the trend in the recent past,
the global paper
market continued to witness
a structural shift towards increase
in demand in emerging economies, particularly in Asia.
In fact, the share of
Subject has been steadily building and increasing its
presence in the growing Asian markets.
A significant
development for subject in 2009-10 was the rapid emergence
of exports as a
contributor to the Company's
revenues. In 2009-10,
subject exported to 86 countries
across the globe which accounted for over 14
per cent of subject's
volumes produced in
While the Company has increased its global presence,
subject continued to focus on
penetrating the Indian market and strengthened its positioning as a
paper Company of the country.
Today,
This demand growth in
170 kg;
While there is considerable scope for growth in the Indian paper market, competition has also increased. From a supply-side perspective, the industry is witnessing large capital investments in capacities. Already, some large new capacities have come into the market including significant increase in capacities of subject. While demand growth is in line to absorb this increased capacity, competition will certainly increase in the near term. Growing revenues and holding on to market shares will be the key challenges for subject in the near term.
Broadly
speaking, the paper industry is
classified into two segments
- paper and paperboard
(writing, printing, packaging
and tissue), and newsprint. Subject operates in the paper and paperboard
market, within which it is primarily in
the writing and printing paper segment. It continues to maintain
a good position in the writing
and printing paper industry
in
Broadly
speaking, the paper industry is
classified into two segments
- paper and paperboard
(writing, printing, packaging
and tissue), and newsprint. Subject operates in the paper and paperboard
market, within which it is primarily in
the writing and printing paper segment. It continues to maintain
a good position in the writing and printing paper
segment in
The Company's writing and printing paper business can be divided into five categories - coated wood-free, uncoated wood-free, copier paper, business stationery and cream-wove. Subject is also into the tissue paper business, which is classified under a separate business division.
* Coated Wood-Free
Coated wood-free
continued to grow at an estimated rate of 9 per
cent to 416,000 MTPA
in 2009-10. This includes blade coated, air knife and
cast coated products. Subject continued
to develop its market leadership in
In the coated segment, the two-side coated paper market grew by 15 per cent to 234,000 MTPA in 2009-10; and the two-side coated board market grew by 10 per cent to 79,000 MTPA. Chart A and Chart B shows shares of 45 per cent and 54 per cent, respectively.
In the coated segment, blade coated products command higher value and accounted for an estimated market size of 370,000 MTPA in 2009-10, or 89 per cent of the total coated segment. Among different blade coated products, the blade coated paper market grew by 15 per cent in 2009-10, while that for blade coated board increased by 10 per cent. With both growth rates being higher than the aggregate growth of coated paper in India, the share of two-side blade coated paper in the overall coated products market in India increased to 56 per cent in 2009-10; while that of blade coated boards increased to 19 per cent during 2009-10.
A significant development that helped the Company support its increased capacities was the dynamic role taken in creating a new market segment within one-side coated paper and boards. Traditionally, this segment was catered to by air-knife coated paper. Subject has redefined this market space by introducing its blade coated premium product. The enhanced value proposition in terms of better performance to price ratio has helped this product gain significant market tractions. The one-side coated market is estimated to be 81,000 MTPA in 2009-10. So far, Blade coated one-side coated market size is estimated 57000 MTPA in 2009-10 and Subject has a market share of 73 per cent.
With a focus on high value added products, subject continues to concentrate on blade coated products within the coated segment, as reflected in Chart C.
While on one end, subject continuously focuses on introducing new products, it has also geared itself to compete in this market which is increasingly becoming commoditised. This strategy focuses on reducing costs through larger scale of operations and better efficiencies in production while simultaneously focusing on enhanced customer service through a multiformat distribution network.
* Uncoated Wood-Free
During 2009-10, the Indian uncoated market - comprising Low Bright and Hi Bright segments - grew by 6 per cent to 1,020,000 MTPA. The market for uncoated wood-free in India is highly fragmented with a multitude of products and manufacturers. The segment is largely restricted to domestic players, and price trends are set by domestic competition.
Subject continues to offer a wide range of products in the uncoated wood-free segment and remains the largest player in this space. While maintaining a presence in each product category, it has laid greater importance on optimising its product mix for greater profitability. With this objective, the Company has been focusing on the higher value Hi Bright segment. Hi Bright, which accounts for around 54 per cent of the uncoated maplithosegment, grew by 8 per cent in 2009-10.
Most of subject's major brands in this segment maintained their market shares. Sunshine Super Printing Paper used for offset printing has a market share of 10 per cent. T.A. NSD has a market share of 9 per cent, subject introduced a new brand `Bilt Magna Print', which has acquired a market share of 8 per cent. Other brands of Hi Bright maplitho have 11 per cent market share.
With the commissioning of the new paper machine at Ballarpur
in the end of 2009-10, subject has
almost doubled the capacity in uncoated paper that it had built over the five
decades. Much of the capacity has been expanded on the higher
value segment of the
uncoated market. The
Company has taken aggressive steps to penetrate the market with the new
capacity. There has been an
increase in the distributor network and a clear focus exists
on pushing products into up-country
* Copier
Copier is a forward
integration of the uncoated wood-free
paper segment. This includes maplitho paper cut in sizes and
characteristics best suited for desktop printing and copying. Copier is
another fast growing segment. The mill packed copier market in
Subject has three brands in the market -Copy Power, Image Copier and BILT Matrix. The Copy Power brand grew by 6 per cent, while Image Copier grew by 17 per cent. Today, Copy Power has a market share of 10per cent, while Image Copier's share is 12 per cent. BILT Matrix and other brands sold by subject through its own retail chain grew by 100 per cent and have a 4 per cent market share.
With a 25 per cent share, subject remains the second largest player in the Indian copier market. Moreover, with steady ramping up of production, the Company is well positioned to claim market leadership in this rapidly growing segment.
* Creamwove
This is a high volume, low value product segment. In volume
terms, it is by far the largest segment in
Strategically, over the years, subject has focused on moving up in the value chain and stressed on higher value products. Consequently, it has marginalised creamwove capacities. However, the Company recognises that this is a large segment and a major paper player like subject would ideally like to have a presence in this market. Thus, it continues to explore different strategies and opportunities to develop its presence in this market, but without sacrificing returns.
*
In addition to the
Indian market, subject directly operates in the
Malaysian market through its subsidiary Sabah Forest Industries (SFI).
While there is a degree of integration in the operations of the
two companies, from a
market perspective, SFI focuses on
* Tissue and Hygiene
The tissue business displayed encouraging growth in 2009-10.
Sales grew by around 60 per cent, which
was the highest growth rate recorded amongst
all the organised players
in the industry. This
growth was achieved
by expanding the Company's operations across
During 2009-10, subject also initiated a sustained brand campaign through promotions and road-shows. This is aimed at educating final consumers and developing strong brand equity. On the operations front, vendor strategy was realigned to consolidate the growing volume of business and leverage the higher scale of business to negotiate better buying prices and better quality. This initiative helped offset some of the steep increase in base tissue prices. In addition, the entire supply chain and logistics was also revamped to cater to the higher and wider growth.
OPERATIONS
Subject's
consolidated paper manufacturing
operations span across
six production units. Of these, five are in
* Unit: Ballarpur
During 2009-10, Unit Ballarpur produced 191,294 MT of paper (including trial run). There were significant improvements made in paper quality in terms of brightness, opacity, bulk and shade of paper by using precipitated calcium carbonate (PCC) as filler. A precipitated calcium carbonate (PCC) plant has been setup at site as a satellite plant for in-house requirements.
The mill has changed over to alkaline sizing on three of its paper machines. There was also improvement in ash retention, which has resulted in enhancing the quality of paper while achieving substantial reduction in specific fibre consumption.
There has been a
significant increase in capacity of Unit
Ballarpur with the installation
of a new paper machine, PM-7 which was
commissioned by
New paper finishing equipments like Globe rewinder, Pasaban Synchro sheeters and Beilomatic ream wrapping machines, Shrink Wrap Bundling Machine and Stretch Reel Wrap Machine have been commissioned to provide better cut and packed paper to customers. This automation has helped in reducing manpower engagement in the mills.
On the product development front, the Unit has successfully manufactured new shades in various products, namely extensible sack craft paper (ESKP) and Maplitho NSD Premium paper to meet customer requirements, in domestic as well as export markets.
At the back-end, bleached pulp production was 116831 MT. Enhanced operational efficiencies resulted in increased pulp production, with uniform brightness and increased viscosity. Pulp mill operations have been further optimised with change in the raw material mix of wood and bamboo. This change has enhanced performance at the paper machines in terms of quality of paper produced.
Resource conservation continued to be a key focus area. Water conservation is a key area where the mill has reduced water consumption to 76 m3/T paper by 3-R (Reduce-Reuse-Recycle) methodology. While the Unit has added additional equipments for improving quality of paper, which has increased electrical load, power consumption was reduced to 1098 kWh/T. This was achieved through implementation of various energy saving innovations across the pulp & paper manufacturing process. Steam consumption was reduced to 3.1 T/T from 3.6 T/T through installation of thermo compressor on PM-6.
Achievements and
Awards
* The Mill has implemented 5S initiative with the help of a renowned consultant to improve overall operations and housekeeping levels.
* Unit Ballarpur is certified for FSC COC & CW certificate from the Forest Stewardship Council.
* Unit Ballarpur is also certified for OHSAS 18001:2007 by DNV. Now, the Unit has a certified integrated management system of ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007.
* Unit Ballarpur also secured the First Prize for Excellence
in Environment Management awarded by the Greentech Foundation,
* Unit: Bhigwan
The total production at Bhigwan in 2009-10 was 248,983 MT of coated paper and coated Boards. The existing paper line produced 133,234 MT of coated paper and coated boards - an increase of 9,150 MT over 2008- 09. The total export of this Unit was 49,763 MT of paper.
To meet requirements from increased production, a new pasaban Sheeter was installed in the finishing house. In order to handle increased export volumes and to satisfy the demand of customers for bulk packing, a new German make shrink hooding machine was also installed.
The new paper machine line, which was erected and commissioned in a record period of 10 months and started commercial production from the month of March 2009 produced 115,749 MT of coated paper. The ramp up of production in this machine was as per plan and the machine is now operating at full efficiency.
During 2009-10, the Unit has developed some new products. These include LWC 65 GSM, chromo 65 GSM, SBS and playing cardboard. All the new products were well received by the market.
Resource conservation continued to be a key focus area for the Unit. Innovative process changes and further optimization of wet-end chemicals and coating formulation has helped in reducing usage of chemicals and reduction in fibre consumption. A number of energy conservation measures
have resulted in significant reduction in power consumption in the existing paper machine from 654 KWH/MT of paper in 2008-09 to 627 KWH/MT of paper in 2009-10. Water consumption in the mill has further reduced from 21.07 M3 /MT of paper in 2008-2009 to 16.65 M3/MT of paper in 2009-10 by various water conservation measures and changes in manufacturing process.
In addition to TQM which has firmly been established in the Unit, the Unit was involvedin 5S implementation. The Unit also obtained FSC-COC certification.
These efforts have been recognized at various forums and the Unit has received the following awards in the year 2009-10:
* Good Green Governance award from Srushti Publications,
* Greentech Environment award for Environment Excellence.
* Greentech Safety Award.
* Unit: Shree Gopal
During 2009-10, Unit Shree Gopal produced 81,181 MT of paper, which was 531 MT higher than the production achieved in 2008-09.
Unit Shree Gopal undertook various quality improvement initiatives to improve customer servicing and satisfaction. Some of these include:
* Achieved On Time In Full (OTIF) score consistently above 90 per cent
* Reduction in customer complaints by 30 per cent in 2009-10
* Installed new re-winder to improve the cut quality of reels
* Installed new single hard nip calendar to improve paper quality in terms of two sidedness
* Replaced dryers from bush bearings to antifriction bearings to avoid oil dripping in paper
* Installed broke screen with 0.25 mm slotted basket to improve paper cleanliness
* Removed conventional Duplex sheeters and increased volume of synchro cut and on line ream packed paper to the market
The Unit developed some new products including MMPP Chaimos for Kuran printing in retail segment for the export market and Sunlit Cartridge.
In the area of environment protection, the Unit has continuously ensured compliance to `CREP' norms and achieved all the norms of treated effluent and boiler stacks emissions well below the norms laid down by Haryana State Pollution Control Board. Overall waterconsumption in the mills reduced from 125 m3/t to110 m3/t while effluent discharge decreased from 100 m3/t to 80 m3/t. The Unit also installed an online `Suspended Particulate Monitor' (SPM) at all the boiler stacks.
On energy consumption, Unit Shree Gopal achieved major reduction in steam consumption in the recovery section. This reduced Active Alakali from 8.55 t/t in 2008- 09 to 7.8 t/t in 2009-10. As a result, overall steam
consumption in mills reduced from 8.3 t/t of paper to 8.0 t/t of paper. In addition, overall power consumption reduced by around 180 kwh (approx 20 kwh/t). This was achieved by taking measures like replacing inefficient
motors with energy efficient motorsin the plant, installing Variable Frequency Drives (VFD's), Screw compressor at Pasaban sheeter and shutting down of four water tube wells .
A new railway weigh bridge was installed for 100 per cent weighment of Wood/ Bamboo rakes at the mill site resulting in substantial reduction in demurrage charges. Three Diamond make Soot Blowers at ABL recovery boiler was set up. This has resulted in increased run time of boiler from 45 daysto 90 days. The failing 317 L lines in Pulp mill was replaced with Titanium, resulting in improved uptime of the plant.
As a part of the management commitment towards system implementation, in 2009-10, Unit Shree Gopal achieved the following in addition to existing Quality system ISO 9001- 2008:
* ISO 14001-2004 certification
* OSHAS 18001-2007 certification
* FSC - COC certification
* Implemented 5S initiative in Pulp Mill
* Unit: Sewa
During 2009-10, Sewa produced 70,143 MT of paper. Major focus was on new product development and brightness improvement at the bleaching stage, which was achieved by changing the bleaching sequence from five stages to four stages and replacing hypo with chlorine dioxide. On the product front, the Unit focused on developing products in close association with the retail business. This included producing high bright in Image Copier and MTV 65 gsm Premium Copy Paper.
In line with subject's quest for continuous improvements in the quality of its products, various other quality up-gradation initiatives were also implemented such as installation of caliper profiler, new hot stock screening system in pulp mill, new centri-cleaner system and new chipper for chip qualityimprovement.
Resource conservation continued to be a key focus area for the unit. Steam consumption reduced from 3.59 MT/MT of paper in 2008-09 to 3.55 MT/MT of paper in 2009-10.
In line with initiatives under the Corporate Responsibility of Environment Protection (CREP) programme, various environmental projects were implemented. In addition, complete revamping and upgrading of the pulp mill is being carried out to switch to an even less polluting bleaching sequence. The Unit has constructed one Engineering Land Fill for solid hazardous waste (ETP sludge) disposal. Moreover, the effluent discharge system has also been revamped.
OFFICE SUPPLY AND
STATIONERY BUSINESS (OSSB)
Traditionally, subject's business has been production and distribution driven. As the Company evolved by introducing newer products and distribution channels, it had to move into more consumer centric businesses. The foray into the office supplies and stationery business was a step in this direction.
Although the business is different in nature, it leverages several strengths of the Company in terms of its products, knowledge of supply chain and most importantly, the BILT brand value.
The paper based office supplies segment in
This business has also built a sizeable product range in the Non-Paper segment through products like pencils, glue sticks, tapes, sticky notes and files and folders. The business uses its sales and distribution strengths to gain market share in these categories.
During 2009-10, subject's Office Supplies and Stationery
Business grew by over 30 per cent taking the total turnover to Rs.2440.000
millions. Today, the Company's foray in consumer products has grown to 40,000
outlets across 300 locations in
There are three major brands in this segment:
* Royal Executive Bond (REB): REB is for quality bond paper used for desktop and letter head printing. REB is a market leader and controls more than 80 per cent market share in its segment.
* BILT Matrix: BILT Matrix notebooks have now attained an iconic status in the stationery category and have become a benchmark for design and quality across all categories.
* BILT Ten On Ten: This brand focuses on students. Introduced a couple of years ago, it has gained a sizeable market share and high brand saliency within its category. In this range, subject markets various licensed products like MTV, NICK, DORA, SPONGEBOB KKR and CSK.
During 2009-10, the Company's business products were promoted through aseries of brand campaigns, road shows, customer contact programmes, direct mail marketing and outlet merchandising like shop-in-shop dispensers which exclusively displayed subject products.
Subject launched 200 SKUs during 2009-10, taking the total to 1025 SKUs. It strengthened export operations and supplied a large portfolio of products to developed and developing markets. Several major global retailers across the world consider subject as a key supply chain partner. The Company expects the turnover from the Office Supply and Stationery Business to increase to over Rs.3000.000 millions in 2010-11.
RETAIL
Subject entered the Office Supply Retailing Business with the launch of its first store and the B2B business under the brand name `P3' (Paper, Print and Pens) in June 2008. The P3 business retails a complete suite of office supplies vide its B2B & B2C platform.
The overall office supplies market (consumables) is estimated at Rs.180000.000 millions. It is largely unorganised but with major international players entering the space, it is expected to soon have a fairly large organised segment.
Subject's one stop paper and office supplies store - P3, answers all office needs ranging from stationery, technology, corporate gifting to print solutions. With a range of 16,000 SKU's, the impressive P3 line of products
and services would go
a long way in establishing subject as a pan
Its footprint has expanded significantly on the B2C side and
is present in Delhi-NCR, Mumbai, Pune
and
This foray is backed up by a robust supply chain and IT backend wherein they engage the best third party logistics partners for catering to corporate supplies.
During 2009-10, the
retail business grew by about 180 per cent taking the turnover
to Rs.520.000 millions. The
Company expects the turnover from
retail business to double in 2010-11 with 17 stores across all
major cities in
CAPACITY EXPANSION
Much of the capacity
expansion programmes initiated in the last few
years came on-line in 2009-10 for
the
* Unit Bhigwan
Total production from the newly commissioned paper line was 115,749 tonnes in 2009-10. This is a capacity utilisation of 88 per cent reflecting an effective production ramp up.
* Unit Ballarpur
Paper from the new machine was reeled on 1 August 2009. Commercial production commenced from 1 December 2009 and the total production was 73,660 tonnes (including trial run production). This shows a 63 per cent capacity utilisation.
* SFI
The expansion project was reconfigured to produce market pulp instead of increasing the paper capacity. Expected capacity increase is 120,000 ADT/ annum of market pulp to cater to BHKP demand in Indian operations.
For this expansion, majority of equipment ordering has taken place and balance mechanical / electrical / automation contracts shall be awarded by September 2010. Civil work has commenced in all the areas and is progressing satisfactorily. New wood handling line shall be commissioned in September 2010.
The new Plant shall be commissioned progressively from May 2011. A shut down of fibre Line shall be undertaken in Quarter 3, 2011, after which the increased capacity shall be realised.
AUDITED FINANCIAL RESULTS FOR THE QUARTER I YEAR ENDED 30TH JUNE 2011
(Rs in millions)
|
Particulars |
Standalone |
|
|
For the Quarter ended 30.06.2011 (Audited) |
For the Year ended 30.06.2011 (Audited) |
|
|
1. a) Net Sales |
2673.300 |
10591.200 |
|
b) Other Operating Income |
26.900 |
56.900 |
|
Total |
2700.200 |
10648.100 |
|
|
|
|
|
2. Expenditure |
|
|
|
(a) Amortisation of Deferred
Revenue Expenditure |
-- |
-- |
|
(b) (Increase)/decrease in Stock in Trade and Work In Progress |
(36.200) |
(245.000) |
|
(c) Consumption of Raw Materials |
733.000 |
3325.200 |
|
(d) Purchases of Traded Goods |
178.700 |
782.600 |
|
(e) Consumption of store and spares |
444.400 |
1599.700 |
|
(f) Power, Fuel and Water Charges |
503.800 |
1900.300 |
|
(g) Personal Cost |
237.100 |
769.800 |
|
(h) Depreciation |
229.800 |
840.400 |
|
(i) Other Expenditure |
254.900 |
796.100 |
|
Total |
2545.500 |
9769.100 |
|
|
|
|
|
3. Profit / (Loss) From Operations before
other Income Interest & Exceptional Items (1-2) |
154.700 |
879.000 |
|
4. Other Income |
-- |
-- |
|
5. Profit/(Loss) before Interest and
Exceptional items (3+4) |
154.700 |
879.000 |
|
6. Interest and Financing Charges (Net) |
110.100 |
374.600 |
|
7. Profit / (Loss) after interest before
Exceptional items (5-6) |
44.600 |
504.400 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit / (Loss) form Ordinary Activities
before tax (7+8) |
44.600 |
504.400 |
|
10. Tax Expense – Estimated: |
|
|
|
-Current Tax / MAT (Net of MAT entitlement Credit and Write Back of Excess Provisions) |
14.100 |
162.800 |
|
-Deferred Tax Liability (Net) |
10.000 |
40.000 |
|
|
24.100 |
202.800 |
|
|
|
|
|
11. Net Profit (+)/ Loss (-) from Ordinary
Activities after tax (9-10) |
20.500 |
301.600 |
|
12. Extraordinary Items (net of tax expense) |
-- |
-- |
|
13. Net Profit(+)/ Loss(-) for the period (11-12) |
20.500 |
301.600 |
|
Less: Minority Interest |
-- |
-- |
|
Add: Share of Profits in Associates |
-- |
-- |
|
Net Profit After Taxation, Minority Interest
& Share in Associate Company's Profit |
20.500 |
301.600 |
|
14. Paid up Equity Share Capital |
-- |
-- |
|
15. Reserves excluding Revaluation Reserves as per balance sheet of previous
accounting year |
-- |
14874.900 |
|
16. Earnings Per Share (EPS) |
|
|
|
(a) Before Deferred Tax |
0.05 |
0.52 |
|
(b) After Deferred Tax |
0.03 |
0.46 |
|
(c) Diluted EPS for the Quarter r Year |
0.03 |
0.46 |
|
17. Debt service coverage ratio |
-- |
1.37 |
|
18. Interest service coverage ratio |
-- |
4.59 |
|
19. Public Shareholding : |
|
|
|
- Number of Shares |
331673154 |
331673154 |
|
- Percentage of Shareholding |
50.60% |
50.60% |
|
20. Promoter and Promoter group Shareholding |
|
|
|
a). Pledged/ Encumbered |
|
|
|
- Number of Equity Shares of Rs.2/-each |
Nil |
Nil |
|
- Percentage of Shareholding |
|
|
|
(As a percentage of total shareholding of promoter and promoter group) |
Nil |
Nil |
|
(As a percentage of total share
capital of the company) |
Nil |
Nil |
|
B).
Non-encumbered |
|
|
|
- Number of Equity Shares of Rs.2/-each |
323850685 |
323850685 |
|
- Percentage of Shareholding |
|
|
|
(As a percentage of total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
(As a percentage of total share
capital of the company) |
49.40% |
49.40% |
(Rs in millions)
|
Particulars |
Standalone |
|
|
For the Quarter ended 30.06.2011 (Audited) |
For the Year ended 30.06.2011 (Audited) |
|
|
1 Segment Revenues |
|
|
|
(a) Paper |
1773.600 |
6518.700 |
|
(b) Paper Products & Office Supplies |
899.700 |
4072.500 |
|
(c) Pulp |
-- |
-- |
|
(d) Unallocated |
-- |
-- |
|
Total |
2673.300 |
10591.200 |
|
|
|
|
|
Less: Inter Segment Revenue |
-- |
-- |
|
Net Sales/ income from operation |
2673.300 |
10591.200 |
|
|
|
|
|
2. Segment
Results (Profit)(+)/ Loss (-) before
tax and interest) |
|
|
|
(a) Paper |
111.200 |
670.800 |
|
(b) Paper Products & Office Supplies |
63.000 |
285.100 |
|
(c) Pulp |
-- |
-- |
|
(d) Unallocated |
-- |
-- |
|
Total |
174.200 |
955.900 |
|
Less: i) Interest |
110.100 |
374.600 |
|
ii) Other un-allocable expenditure net of un-allocable income |
19.500 |
76.900 |
|
Total Profit Before Tax |
44.600 |
504.400 |
|
|
|
|
|
3 Capital Employed (Segment Assets - Segment Liabilities) (Based on reasonable estimates) |
|
|
|
(a) Paper |
11337.300 |
11337.300 |
|
(b) Paper Products & Office Supplies |
4069.600 |
4069.600 |
|
(c) Pulp |
-- |
-- |
|
(d) Unallocated |
11656.900 |
11656.900 |
|
|
|
|
|
Total |
27063.800 |
27063.800 |
SUMMARY OF ASSETS
AND LIABILITIES AS ON 30TH JUNE -2011
(Rs in millions)
|
Particulars |
Standalone |
|
As on 30.06.2011 |
|
|
SHAREHOLDERS'
FUNDS |
|
|
(a) Share Capital |
1311.200 |
|
(b) Reserves & Surplus |
14874.900 |
|
MINORITY INTEREST |
-- |
|
LOAN FUNDS |
9828.900 |
|
DEFERRED TAX LIABILITY (Net of Assets) |
1048.700 |
|
TOTAL |
27063.800 |
|
|
|
|
FIXED ASSETS |
10898.800 |
|
|
|
|
INVESTMENTS |
11962.500 |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
(a) Inventories |
2693.900 |
|
(b) Sundry Debtors |
2438.400 |
|
(c) Cash and Bank Balances |
125.000 |
|
(d) Loans and Advances |
4067.100 |
|
|
9324.400 |
|
|
|
|
LESS: CURRENT LIABILITIES AND PROVISIONS |
|
|
(a) Current Liabilities |
2246.900 |
|
(b) Provisions |
2874.900 |
|
Net Current Assets |
4202.500 |
|
|
|
|
Miscellaneous Expenditure (Not written off or adjusted) |
-- |
|
|
|
|
TOTAL |
27063.800 |
Notes
1. During the
year, the company has acquired 100% stake in the equity share capital of
Premier Tissues India Limited (PTIL), making it a wholly owned subsidiary. Consolidated
financial results for the year include the financial results of PTIL for the
period 09.03.11 to 30.06.11.
2. The operations
during the year at the step down subsidiary Sabah Forest Industries Sdn Bhd,
3. Provision for
taxation is net of MAT entitlement credit of the Company's step down subsidiary
Bilt Graphic Paper Products Limited amounting to Rs.143.000 millions and
Rs.436.000 millions for the current quarter and for the year respectively
(Corresponding quarter/previous year- Rs.88.000 millions and Rs.222.700
millions respectively). The provision for consolidated Deferred tax liability
for the quarter/ year is net of Rs.371.600 millions deferred tax asset
recognised by the Company at it's step down subsidiary Sabah Forest Industries
sdn. bhd. (Corresponding quarter/previous year Rs.490.700 millions).
4. Eight Investor
complaints was received and resolved during the quarter. Investor complaint
outstanding at the beginning and end of the quarter was nil.
5. The Board has
recommended Dividend @ 30 % with a total payout of Rs.457.100 millions
inclusive of Dividend Tax.
6. The Company's step
down subsidiary Bilt International Graphic paper Holdings B.V has issued
Perpetual Bonds worth US$ 200 Million August 2011.The Bonds will be eligible
for 100% equity credit under International Financial Reporting Standard and 50%
Equity Credit for rating purpose.
7. These results
have been reviewed by the audit Committee, approved by Board of Directors in
its meeting held on 18th August' 2011 and have been audited by the
statutory auditors of the Company.
8. Previous Year figures have been regrouped / rearranged, wherever
necessary.
FIXED ASSETS:
v Land
v Building
v Railway Sidings
v Plant, Machinery
v Furniture
v Office Equipment
v Improvements to Leased Assets
v Vehicles
WEBSITE DETAILS:
PROFILE:
Subject is India's manufacturer of writing and printing (W
and P) paper. Subject's subsidiaries include BILT Graphic Paper Products
Limited (BGPPL); Sabah Forest Industries (SFI),
Subject and BGPPL have six manufacturing units across
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.46.05 |
|
|
1 |
Rs.75.20 |
|
Euro |
1 |
Rs.66.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--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 |
|
65 |
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.