MIRA
INFORM REPORT
|
Report Date : |
23.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE SIRPUR PAPER MILLS LIMITED |
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Registered
Office : |
5-9-22/1/1, 1st Floor, Adarsh Nagar, Hyderabad – 500463,
Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
17.11.1938 |
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Com. Reg. No.: |
01-000591 |
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Capital
Investment / Paid-up Capital : |
Rs.158.885 Millions |
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CIN No.: [Company Identification
No.] |
L21010AP1938PLC000591 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDT00008B |
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PAN No.: [Permanent Account No.] |
AAACT7970R |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Variety and colour paper in India. |
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No. of Employees
: |
3016 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 8900000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
f the company is under pressure. However, Trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
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 : |
5-9-22/1/1, 1st Floor, Adarsh Nagar, Hyderabad – 500463,
Andhra Pradesh, India |
|
Tel. No.: |
91-40-23240244/23231134 |
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Fax No.: |
91-40-23232470 |
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E-Mail : |
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Website : |
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Corporate Office : |
Sirpur House, Plot No. 39, Sector – 44, P. O. Gurgaon – 122003,
Haryana, India |
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Tel. No.: |
91-124-4888111 |
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Fax No.: |
91-124-4888101 |
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E-Mail : |
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Factory : |
Sirpur – Kaghaznagar – 504296, Andhra Pradesh, India |
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Tel. No.: |
91-8738-238044/238045/239495 |
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Fax No.: |
91-08738-238323/ 235148/ 238642/ 238648 |
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E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Ranjan Kumar Poddar |
|
Designation : |
Chairman |
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Name : |
Mr. Devashi Poddar |
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Designation : |
Vice – Chairman and Managing Director |
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Name : |
Mr. Rameshwar Lall Lakhotia |
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Designation : |
Executive Director |
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Name : |
Mr. Sudhir Jalan |
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Designation : |
Director I. A. S. (Retired) |
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Name : |
Dr. M. S. Rajajee |
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Designation : |
Director |
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Name : |
Mr. Laxminiwas Sharma |
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Designation : |
Director |
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Name : |
P. Vaman Rao |
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Designation : |
Director |
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Name : |
Rakesh Bhartia |
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Designation : |
Director |
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Name : |
G.S. Srinivasan |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Ms. Poonam Bodra |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Ms. Priya Sharma |
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Designation : |
Company Secretary |
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Audit Committee: |
Mr. P. Vaman Rao (Chairman) Mr. R. L. Lakhotia Mr. Laxminiwas Sharma Mr. G.S. Srinivasan Mr. Rakesh Bhartia |
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Remuneration Committee : |
Dr. M.S. Rajajee (Chairman) Mr. Sudhir Jalan Mr. Laxminiwas Sharma Mr. Rakesh Bhartia |
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Shareholders Grievances Committee : |
Mr. Laxminiwas Sharma (Chairman) Mr. R. L. Lakhotia Mr. P. Vaman Rao Mr. Devashish Poddar |
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Borrowing Committee : |
Mr. Sudhir Jalan (Chairman) Mr. R. L. Lakhotia Mr. Laxminiwas Sharma Mr. P. Vaman Rao |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holdings |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
2330 |
0.01 |
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Bodies Corporate |
6184077 |
38.94 |
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|
6186407 |
39.96 |
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Bodies Corporate |
1184967 |
7.46 |
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Sub Total |
1184967 |
7.46 |
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Total shareholding of Promoter and Promoter Group (A) |
7371374 |
46.42 |
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(B) Public Shareholding |
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Mutual Funds / UTI |
200 |
-- |
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Financial Institutions
/ Banks |
237412 |
1.50 |
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Insurance Companies |
1645611 |
10.36 |
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Sub Total |
1883223 |
11.86 |
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|
|
|
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|
1484024 |
9.35 |
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|
2882755 |
18.15 |
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|
2060626 |
12.98 |
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|
197898 |
1.25 |
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|
59707 |
0.38 |
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Custodian |
14589 |
0.09 |
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Clearing Members |
45498 |
0.29 |
|
Trusts |
78104 |
0.49 |
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|
6625303 |
41.72 |
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Total Public shareholding (B) |
8508526 |
53.58 |
|
Total (A)+(B) |
15879900 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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|
|
|
-- |
-- |
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|
-- |
-- |
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|
-- |
-- |
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Total (A)+(B)+(C) |
15879900 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Variety and colour paper in India. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Pulp, Paper and Board |
MT |
138300 |
93900 |
|
Complete Pulp and Paper Making Plant (10-15TPD) |
Nos. |
4 |
-- |
|
Generation of Electricity |
MW |
32 |
1170.94 |
Licensed capacity is not applicable in terms of Govt. of India's
Notification.
(a) Installed
Capacities are as certified by the Executive Director.
(b) Represents
Finished Production of Pulp, Paper and Paper Board. Production of Pulp is not separately
ascertained as pulp plant is an integral part of paper and paper board plant.
Includes pulp production of 4091 (Previous Year – Nil MT) meant for external
sales.
Note: Generation
of electricity is for internal consumption. The installed capacity of these
Plants for the current year and for earlier years is as per the original
designed capacity.
GENERAL INFORMATION
|
No. of Employees : |
3016 (Approximately) |
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Bankers : |
·
Central Bank of India ·
State Bank of Hyderabad ·
IDBI Bank Limited ·
Andhra Bank |
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Facilities : |
Note: Amount
repayable within one year Rs. Nil (31-3-2010 Rs.50.000 Millions) |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Secunderabad, Andhra Pradesh, India |
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Related Parties
: |
Aravali Securities and Finance Limited Promoter Holding is more than 20% |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Ordinary Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
1000000 |
Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.350.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15891074 |
Ordinary Shares |
Rs.10/- each |
Rs.158.911 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15879900 |
Ordinary Shares |
Rs.10/- each |
Rs.158.799
Millions |
|
|
Add : Forfeited Shares |
|
Rs.0.086
Millions |
|
|
Total |
|
Rs.158.885 Millions |
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|
|
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|
Note:
(Of the above, 877869
shares of Rs.10 each were issued at a premium of Rs.47/- to M/s Aravali
Securities and Finance Limited, Promoter, on preferential basis)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
158.885 |
150.119 |
150.117 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2076.021 |
2249.950 |
2391.142 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2234.906 |
2400.069 |
2541.259 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2653.075 |
2779.366 |
2883.054 |
|
|
2] Unsecured Loans |
158.845 |
188.762 |
118.664 |
|
|
TOTAL BORROWING |
2811.920 |
2968.128 |
3001.718 |
|
|
DEFERRED TAX LIABILITIES |
103.540 |
106.024 |
92.124 |
|
|
|
|
|
|
|
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TOTAL |
5150.366 |
5474.221 |
5635.101 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4832.476 |
5103.245 |
5161.691 |
|
|
Capital work-in-progress |
64.742 |
67.471 |
226.914 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
1.000 |
1.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
302.976
|
352.130 |
306.453
|
|
|
Sundry Debtors |
539.273
|
488.798 |
610.949
|
|
|
Cash & Bank Balances |
82.730
|
46.827 |
114.986
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
408.415
|
415.266 |
341.637
|
|
Total
Current Assets |
1333.394
|
1303.021 |
1374.025 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
599.823
|
509.633 |
618.090 |
|
|
Other Current Liabilities |
367.807
|
391.597 |
408.113 |
|
|
Provisions |
112.616
|
99.286 |
113.253 |
|
Total
Current Liabilities |
1080.246
|
1000.516 |
1139.456 |
|
|
Net Current Assets |
253.148
|
302.505 |
234.569 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
10.927 |
|
|
|
|
|
|
|
|
TOTAL |
5150.366 |
5474.221 |
5635.101 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3645.920 |
3354.892 |
3462.112 |
|
|
|
Other Income |
40.650 |
49.643 |
42.514 |
|
|
|
TOTAL (A) |
3686.570 |
3404.535 |
3504.626 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
908.256 |
797.904 |
806.955 |
|
|
|
(Accretion to)/ Depletion of stocks |
17.100 |
13.345 |
(78.205) |
|
|
|
Manufacturing and Other expenses |
2365.779 |
2142.500 |
2286.915 |
|
|
|
Transfer to Capital Work in Progress |
0.000 |
0.000 |
(38.730) |
|
|
|
TOTAL (B) |
3291.135 |
2953.749 |
2976.935 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
395.435 |
450.786 |
527.691 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
273.516 |
257.681 |
261.615 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
121.919 |
193.105 |
266.076 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
303.532 |
297.540 |
279.306 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(181.613) |
(104.435) |
(13.230) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(2.484) |
14.020 |
3.106 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(179.129) |
(118.455) |
(16.336) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
196.887 |
315.342 |
376.022 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.000 |
0.000 |
22.517 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
3.827 |
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
18.000 |
|
|
BALANCE CARRIED
TO THE B/S |
17.758 |
196.887 |
315.342 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.000 |
10.665 |
4.948 |
|
|
|
Components & Spares |
12.680 |
5.082 |
3.955 |
|
|
|
Capital Goods |
|
|
12.528 |
|
|
TOTAL IMPORTS |
12.680 |
15.747 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(11.42) |
(7.89) |
(1.09) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
Type |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
970.000 |
947.800 |
|
Total Expenditure |
|
|
847.500 |
853.900 |
|
PBIDT (Excl OI) |
|
|
122.500 |
93.900 |
|
Other Income |
|
|
0.000 |
(0.400) |
|
Operating Profit |
|
|
122.500 |
93.500 |
|
Interest |
|
|
71.200 |
81.400 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
51.300 |
12.100 |
|
Depreciation |
|
|
75.600 |
76.000 |
|
Profit Before Tax |
|
|
(24.300) |
(63.900) |
|
Tax |
|
|
0.000 |
(25.700) |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
(24.300) |
(38.200) |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
(24.300) |
(38.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.86
|
3.47 |
0.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.98)
|
(3.11) |
(0.38) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.95)
|
(1.63) |
(0.20) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
(0.04) |
(0.01) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.74
|
1.65 |
1.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.30 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
OVERVIEW
The global economy witnessed a negative growth of 0.5% in 2009 following
the global downturn. However, it rebounded at 5% in 2010 but is expected to
grow at a lower rate of 4.2% in 2011, The GDP growth in developing and emerging
economies was 7.3% in 2010, higher than the world average. Growth in these
developing economies slowed by the end of 2010, as stimulus was slowly removed
and policies were tightened to contain rising inflation.
INDIAN ECONOMY
OVERVIEW
Overall GDP growth was at 8.5% in 2010-11: Rising inflation coupled with
stringent RBI policies, increase in crude oil prices, impact of natural
calamities and financial crisis in certain countries may affect Indian growth.
GLOBAL PAPER
INDUSTRY
Global paper demand is unevenly distributed; 72% of the world’s paper is
consumed by 22% of its population – especially in the US, Europe and Japan.
Global paper demand is expected to grow around 3% annually, reaching an
estimated 490 million tonnes by 2020, with significant growth coming out of
Asia and Eastern Europe.
Developed countries like the US, Canada, Germany and the UK enjoy a
higher per capita consumption of 230 kg to 300 kg. Average global per capita
consumption is estimated at around 56 kg whereas the Asian average is around 46
kg. Given this background, India’s per capita consumption is a mere 9 kg,
indicating considerable room for growth.
INPUTS MANAGEMENT
Overview
The Company met 97% of its wood requirement through the Agricultural
Marketing Committee (AMC), a government regulated body. The Company sourced 95%
of its raw materials from within a distance of 500 km from Sirpur’s plant
situated in Kagaznagar in Andhra Pradesh.
Highlights,
2010-11
During the year, excessive rain and growing demand strengthened wood prices
nearly 15% - from an average Rs.3,278 per tonnes in 2009- 10 to Rs.3,760 per
tonnes in 2010-11. As a result of the changes made by the AMC system, the
Company stacked raw materials at its depot for subsequent transportation to its
plant as opposed to the conventional practice of transportation done by
suppliers. The result was that raw material procurement costs increased due to
related loading and transportation. The Company distributed seedlings of
subabul and eucalyptus clones at subsidised rates and covered an area of 2,570
Ha.
The Company’s raw material procurement increased to match its growing
production. The Company trained farmers and imparted technical guidance.
Outlook
With raw material costs projected to increase and procurement continuing
to be uncertain in the catchment area, the Company is planning next year’s
procurement to de-risk operations. The Company intends to encourage the
development of pulp wood and eucalyptus plantations in its catchment area
through the supply of plantation material and technical guidance, in addition
to captive eucalyptus plantation on its vacant mill area.
MANUFACTURING
Highlights 2010-11
·
Achieved an overall capacity utilisation of 68%.
Raised paper production from 250-260 tonnes daily to 300 tonnes on normal
working days.
·
Own power generation equipment generated 60% of the
Company’s energy needs
·
Controlled steam consumption through leak plugging
and effective control of the cooking cycles
·
Optimised bleaching process by using back water,
reducing chemical and water consumption; reduced fibre loss by reusing back
water
·
Installed and commenced 30 TPD twin press to
produce wet pulp for sale
Outlook
Sirpur expects to optimize manufacturing costs and increase asset
utilisation. The Company plans to reduce water, power and steam consumption,
plug wastage and increase yield.
MARKETING AND
DISTRIBUTION
Highlights 2010-11
·
The Company retained its institutional clients
through efficient marketing.
·
The Company maintained its market share through a
challenging year.
·
The Company offered multiple paper requirements
(standard writing and printing paper, niche varieties), industrial varieties
(absorbent Kraft, duplex and triplex board) and high-end brightness varieties
(copiers, corporate and customised stationary).
Outlook
·
Increase business volumes by adding more products
·
Enhance the Sirpur brand through marketing
initiatives
INTELLECTUAL
CAPITAL
Recruitment: The Company recruited experienced professionals during the
year. The Company’s top priority is the induction and orientation of new
personnel, which lays a strong foundation for retaining talented freshers.
Training: The Company identified requisite training areas based on the
discussions and suggestions of the respective departmental heads. The employees
undergo regular training for personal development, enhancing technical, safety,
behavioural and communication skills.
The training programmes were conducted in regional languages besides
Hindi, covering all levels of employees, with a focus on strengthening
attitude, knowledge and skills. The Company ensures experienced training
faculties with vast industry experience.
Other events: As a measure of motivation and retention, SPM provides
accommodation to their employees, replete with necessary facilities. The
Company organises various sports, cultural and recreational events for
employees and their families.
Outlook
The Company is in the process of revamping its performance appraisal and
exit interview system to ensure employee retention, and improve the existing HR
processes and systems to meet emerging challenges.
OUTLOOK
Paper prices increased in the first two months in 2011-12, but there was
a subsequent withdrawal on account of over supply from new capacities and a
decrease in international pulp and paper prices.
The impact of new production capacities is expected to be neutralised by
an increase in demand, owing to higher literacy levels, increase in population
and disposable income, leading to demand for packaged food.
The prices of all major inputs further increased in 2011-12 – wood by
almost 20%, coal by 30% and diesel by 9%, thereby increasing the overall cost
of production. During 2011-12, interest rates have further hardened.
To arrest pressure on the Company’s working, steps were taken to
increase productivity, reduce break down and wastages, reduce energy
consumption and control input per tonnes of output. This will increase capacity
utilisation and will control production costs.
With these measures, performance is expected to be better.
Economic scenario
The GDP growth in developing and emerging economies was 7.3% in 2010
(Report by International Monitory Fund). It was higher than the world average.
The growth in these developing economies slowed by the end of 2010 as stimulus
was slowly removed and policies were tightened to contain rising inflation.
The GDP growth in Indian economy for 2010-11 was 8.5% and is estimated
to remain around 8% during 2011-12. However, the rising inflation coupled with
stringent RBI policies, increase in crude oil prices, impact of natural
calamities and financial crisis in certain countries are cause of concern which
may affect Indian growth.
Performance
During the year, the company installed a twin press to manufacture wet
pulp for sale. The company’s production of pulp and paper was 93900 tonnes as
compared to 91126 tonnes produced in the previous year. The production was
marginally higher by 3% as compared with previous year. Capacity utilization
was 67.90% i.e. an increase of 2% over the previous year. The capacity
utilisation was affected by heavy rains and floods. Due to fall of HT
transmission line tower of A P Transco, 12 days production was adversely
affected and thereafter due to frequent tripping of power, the production was
further affected for next 3 to 4 days. The gross turnover increased to
Rs.3793.200 Millions during 2010-11 as compared to Rs.3493.500 Millions in
previous year, recording growth of 8.6%, due to increased production and price
increase.
The profit before interest, depreciation and tax was Rs.395.400 Millions
compared to Rs.450.800 Millions in previous year. Though there was increase in
sales realisation but due to increase in prices of wood, coal, diesel and other
major inputs, higher employees’ cost, there was decrease in earnings. Further,
as a result of increase in interest and depreciation, net loss before tax also
increased to Rs.181.600 Millions against Rs.104.400 Millions in previous year.
CONTINGENT LIABILITIES
(Rs.
In Millions)
|
PARTICULARS |
As
on 31.03.2011 |
|
A) Claims /
Demands under dispute |
|
|
(i) Income Tax |
14.423 |
|
(ii) Excise Duty etc. |
40.534 |
|
(iii) Value Added Tax |
22.693 |
|
(iv) Demand from Government of A.P. for Forest related Cases |
219.155 |
|
(v) State levies |
57.879 |
|
(vi) Labour related cases |
40.712 |
|
(vii) Suppliers and service contracts |
30.873 |
FIXED ASSETS
·
Land
·
Buildings
·
Plant and Machinery
·
Railway Sidings
·
Furniture and Fixtures and Other Office Appliances
·
Motor Cars, Lorries and
Other Vehicles
BUSINESS DESCRIPTION
Subject is an India-based integrated paper manufacturing company. The Company is engaged in production and sales of paper and paper boards. The Company’s product portfolio consists of writing and printing paper, cream wove and maplitho paper, ledger, bank and account book paper, specialty-grade paper board, parchment, airmail and pastel paper, industrial kraft paper, base for coated paper, duplex and triplex board and copier paper. During the fiscal year ended March 31, 2010, the Company produced 91,126 metric tons of paper and paper boards. Its plant is located at Sirpur-Kaghaznagar in Andhra Pradesh, India. The Company facilitates product availability with six depots in Mumbai, Delhi, Chennai, Kolkata, Hyderabad and Jaipur, and 50 authorized wholesalers and their sub dealers across India. For the nine months ended 31 December 2010, subject revenues increased 8% to R2.67B. Net loss totaled Rs.149.100 Millions, up from Rs.72.300 Millions. Revenues reflect an increase in income from operations and higher other income. Higher loss reflects an increase in consumption of raw materials, higher employees cost, an increase in consumption of chemicals, stores and spares, higher power and fuel cost and an increase in depreciation expenses.
BOARD OF DIRECTORS
Ranjan Kumar Poddar
(Non-Executive Chairman of the Board)
Shri. Ranjan Kumar Poddar is Non-Executive Chairman of the Board of subject. Mr. Poddar is a B.A. Hons in Economics and is an Industrialist. He is a Director on the Board of Subject. since 1975. He was appointed Vice-Chairman of Subject. in August 1993 and the Chairman of the Board since 1994.
Devashish Poddar
(Executive Vice Chairman of the Board, Managing Director)
Shri. Devashish Poddar is Executive Vice Chairman of the Board, Managing Director of subject. He is a bachelor in Business Administration from London and hails from an industrial and business family. He is a Director of the Company since 1994 and has been involved in various functions of the Company. He became a Whole-time director of the Company with effect from 1st August 1999 and Vice-chairman and Managing director with effect from 1st August 2009. He has considerable experience and knowledge of business management and administration and specialised knowledge in management systems.
Rakesh Bhartia
(Non-Executive Independent Director)
Shri. Rakesh Bhartia is Non-Executive Independent Director of the subject since April 29, 2009. He holds ACA, AICWA and ACS. He has experience in the field of corporate and investment banking and managing a multi-location industrial business enterprise.
Poonam Bodra
(Non-Executive Independent Director)
Ms. Poonam Bodra is Non-Executive Independent Director of subject. Her qualification is M. Sc, in Zoology. She is Principal, LIC of India Zonal Training Centre.
Sudhir Jalan
(Non-Executive Independent Director)
Shri Sudhir Jalan is Non-Executive Independent Director of subject. Mr. Jalan is a B. Com. and M.BA. from IIM Kolkata, is an industrialist and has been associated in Senior Management positions as Chairman and Managing Director /CEO of various companies in diversified industries, President of International Chamber of Commerce (ICC India), Vice President of All India Management Association, Honorary Consul General of Greece in Kolkata and past president of FICCI. He is on the Board of the Company since 2000.
Rameshwar Lall
Lakhotia (Whole Time Director)
Shri. Rameshwar Lall Lakhotia is Whole Time Director of subject. Mr.
Lakhotia a B. Tech. (Chemical and Engineering) has 42 years of experience in
Chemical and Paper industries coupled with administrative capabilities in
various managerial and executive capacities including production, sales,
finance, projects, government liaisoning, industrial relations etc.
M. S. Rajajee
(Non-Executive Independent Director)
Dr. M. S. Rajajee, IAS (Retired), is Non-Executive Independent Director of subject. He holds B. A. (Hons), B.L. M.Sc. PhD. He is a retired Civil Servant and held senior positions in Government of Andhra Pradesh, including Chief Secretary and chairman, Andhra Pradesh Public Service Commission.
P. Vaman Rao (Non-Executive
Independent Director)
Shri. P. Vaman Rao is Non-Executive Independent Director of subject. He
holds a B. A. Degree. He was engaged in Public Relations and Journalism,
General Administration and liaison. He holds Directorships in Hyderabad
Industries Limited,, Hyderabad Agencies Private Limited.
Laxminiwas Sharma
(Non-Executive Independent Director)
Shri. Laxminiwas Sharma is Non-Executive Independent
Director of subject. Mr. Sharma, FCA, is a Senior Chartered Accountant and a
Tax consultant. He is also the Former President of FAPCCI. He is on the Board
of the Company since 2000. He holds Directorships in B. N. Rathi Securities
Limited, Bapuji Estates Private Limited, Hyderabad Trade Expo Centre Private
Limited, S. I. Capital and Financial services Limited.
G. S. Srinivasan
(Director - Nominee of IDBI Bank Limited)
Shri. G. S. Srinivasan has been appointed as Director - Nominee of IDBI
Bank Limited, of subject, with effect from June 20, 2011. He holds M.Sc, Chemistry,
CAIIB. He is a Nominee Director of IDBI Bank Limited. Presently General
Manager-Support Services Corporate Banking.
PRESS RELEASES
Change in Company
Secretary
India, August 26 -- The Sirpur Paper Mills Limited has informed the Exchange that Shri Dinesh Lata, has been appointed as the new Company Secretary of the Company with effect from August 04, 2011, in place of Miss Priya Sharma. Mr. Dinesh Lata has also been appointed as Compliance Officer in addition to Shri T. Shyam Sunder, effective from that date.
Change
in Company Secretary and Compliance Officer
India, August 26 -- Sirpur Paper Mills Limited has informed BSE that Shri. Dinesh Lata, has been appointed as the new Company Secretary of the Company with effect from August 04, 2011, in place of Miss. Priya Sharma. Mr. Dinesh Lata has also been appointed as Cornpliance Officer in addition to Shri. T Shyam Sunder, effective from that date.
Outcome
of Board Meeting
India, August 02 -- The Sirpur Paper Mills Limited has informed the Exchange that the Board of Directors of the Company in its meeting held on July 27, 2011 interalia, considered and approved the following matters: 1) Appointed Shri G.S Srinivasan, General Manager, Support Services Corporate Banking, IDBI Bank Limited, Cuffe Parade, Mumbai as Nominee Director of IDBI Bank Limited, in place of Shri S.V Satyanarayana with effect from June 20, 2011.
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.52.72 |
|
|
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.68.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.