1. Summary Information
|
|
|
Country |
India |
|
Company Name |
THE PAPER PRODUCTS LIMITED |
Principal Name 1 |
Mr. K. C. Narang |
|
Status |
Good |
Principal Name 2 |
Mr. Suresh Gupta |
|
|
|
Registration # |
11-145537 |
|
Street Address |
Regent Chambers, 13th Floor, Nariman Point, Mumbai –
400021, Maharashtra, India |
||
|
Established Date |
12.06.1950 |
SIC Code |
-- |
|
Telephone# |
91-22-22820969 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-22832860 |
Business Style 2 |
Seller |
|
Homepage |
Product Name 1 |
Printed Polyester |
|
|
# of employees |
-- |
Product Name 2 |
Shrink Sleeves |
|
Paid up capital |
Rs.
125,383,000/- |
Product Name 3 |
Printed and unprinted/ foil |
|
Shareholders |
Promoter
and Promoter Group-63.88% Public Shareholding -36.12% |
Banking |
The Hongkong and Shanghai Banking Corporation Limited |
|
Public Limited Corp. |
YES |
Business Period |
61 years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Aa (71) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding
Company |
Netherland
|
Huhtavefa B.V. |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.12.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,617,467,000 |
Current Liabilities |
1,476,335,000 |
|
Inventories |
892,068,000 |
Long-term Liabilities |
225,309,000 |
|
Fixed Assets |
1,752,959,000 |
Other Liabilities |
52,639,000 |
|
Deferred Assets |
0 |
Total Liabilities |
1,754,283,000 |
|
Invest& other Assets |
428,401,000 |
Retained Earnings |
2,811,229,000 |
|
|
|
Net Worth |
2,936,612,000 |
|
Total Assets |
4,690,895,000 |
Total Liab. & Equity |
4,690,895,000 |
|
Total Assets (Previous Year) |
5,953,243,000 |
|
|
|
P/L Statement as of |
31.12.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
7,040,100,000 |
Net Profit |
481,240,000 |
|
Sales(Previous yr) |
5,776,923,000 |
Net Profit(Prev.yr) |
373,785,000 |
MIRA
INFORM REPORT
|
Report Date : |
08.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE PAPER PRODUCTS LIMITED |
|
|
|
|
Registered Office : |
Regent Chambers, 13th Floor, Nariman Point, Mumbai –
400021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
12.06.1950 |
|
|
|
|
Com. Reg. No.: |
11-145537 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs. 125.383 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L21011MH1950FLC145537 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT09909E NGPT00356G NGPT01042G PNET03852C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT0086E |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company's shares are listed on
Stock Exchange Subsidiary of Foreign Company. |
|
|
|
|
Line of Business : |
Manufacturer and Seller of
Laminates and Converted, Coated / Uncoated Paper and Films, Cartons, Moralised
Films and Polyethylene Films. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 11000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established
company having fine track. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered
normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Regent Chambers, 13th Floor, Nariman Point, Mumbai-400021, |
|
Tel. No.: |
91-22-22820969 |
|
Fax No.: |
91-22-22832860 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office/ Factory 1 : |
LBS Marg, Majiwada, Thane-400601, |
|
Tel. No.: |
91-22 25343691 /25427051/ 25343692/
25343693/ 21735591/ 92/ 93/ 21735551/ 52/ 53 |
|
Fax No.: |
91-22-25340599/ 25427050 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Plot No. 139 and 148, Sri Venkateshwara, Co-operative Industrial
Estate, Bollarum, Medak District, |
|
Tel. No.: |
91-8458-279628/279616 |
|
Fax No.: |
91-8458-279464 |
|
|
|
|
Factory 3 : |
Survey No. 34, Hisa 1/3, At Post Umerkoi, Via Silvassa – 396230,
Dadra and Nagar Haveli, |
|
Fax No.: |
91-260-2681005/2681009 |
|
|
|
|
Factory 4 : |
Plot No. 70-73, Sector – 4,
IIEPantnagar, |
|
Tel. No.: |
91-5944-250183 / 250184 / 250185 |
|
Fax No.: |
91-5944-250186 |
|
|
|
|
Sales Office : |
91, Tel No.:
91-80-23568979/23568980/23342873 Fax No.: 91-80-22296522 Chennai: 5-8, Velachery, Tel No.: 91-44-22592461 Fax No.: 91-44-22452461 Kolkata: Laha Paint House, 5th
Floor, 7, Tel No.: 91-33-22372812/22348281 Fax No.: 91-33-22255654 508-510, Ansal Chambers – II, 6,
Tel No.:
91-11-26194795/26195641/26174297 Fax No.: 91-11-26194389 |
DIRECTORS
AS ON 31.12.2010
|
Name : |
Mr. K. C. Narang |
|
Designation : |
Chairman |
|
Qualification : |
B.A / L.L.B |
|
|
|
|
Name : |
Mr. Suresh Gupta |
|
Designation : |
Managing Director and Chief
Executive Director |
|
Age : |
52 years |
|
Qualification : |
B. A. (Hons), MBA |
|
Experience : |
30 Years |
|
Date of Appointment : |
27.01.1988 |
|
|
|
|
Name : |
Mr. Timo Salonen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arunkumar R. Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. V. Narayanan |
|
Designation : |
Director |
|
Date of Birth/ Age : |
10.03.1941 |
|
Qualification : |
Post graduate in chemistry and diploma in Marketing Management |
|
Date of Appointment : |
30.03.2002 |
|
Directorship in other company : |
Texplast Industries Limited |
|
|
|
|
Name : |
Mr. Ramesh K. Dhir |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vibhu Talwar |
|
Designation : |
Director |
|
Date of Birth/ Age : |
17.09.1973 |
|
Qualification : |
Honours Graduate in Mathematics and Economics from USA |
|
Date of Appointment : |
29.04.2003 |
|
|
|
|
Name : |
Mr. Jukka Moisio |
|
Designation : |
Director |
|
Qualification : |
MBA |
|
|
|
|
Name : |
Mr. M. K. Srinivasan |
|
Designation : |
Chief Executive Director and Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Suresh Gupta |
|
Designation : |
Managing Director and President
(CEO) |
|
|
|
|
Name : |
Mr. Sushil Kumar Agarwal |
|
Designation : |
Company Secretary and Head Taxation |
|
|
|
|
Name : |
Mr. Parag Vyavahare |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Ravi
Chidambaram |
|
Designation : |
Controller – Finance and Joint
CFO |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2,430,692 |
3.88 |
|
|
681,140 |
1.09 |
|
|
3,111,832 |
4.96 |
|
|
|
|
|
|
36,934,100 |
58.92 |
|
|
36,934,100 |
58.92 |
|
Total shareholding of Promoter and Promoter Group (A) |
40,045,932 |
63.88 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,692,807 |
4.30 |
|
|
39,480 |
0.06 |
|
|
307,745 |
0.49 |
|
|
1,100,417 |
1.76 |
|
|
4,140,449 |
6.60 |
|
|
|
|
|
|
3,915,115 |
6.25 |
|
|
|
|
|
|
12,345,051 |
19.69 |
|
|
1,611,094 |
2.57 |
|
|
629,549 |
1.00 |
|
|
614,954 |
0.98 |
|
|
14,595 |
0.02 |
|
|
18,500,809 |
29.51 |
|
Total Public shareholding (B) |
22,641,258 |
36.12 |
|
Total (A)+(B) |
62,687,190 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
62,687,190 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of
Laminates and Converted Coated / Uncoated Paper and Films Cartons Moralised
Films and Polyethylene Films. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.12.2010
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Laminates and Converted Coated/Uncoated Paper and Films |
|
Tones |
35590.000 |
2805.204 |
|
Cartons |
|
Tones |
11000.000 |
4947.906 |
|
Metalised Films |
|
Tones |
1000.000 |
604.784 |
|
Polyethylene Films |
|
Tones |
5400.000 |
4802.818 |
GENERAL INFORMATION
|
Bankers : |
·
Union Bank of India ·
Corporation Limited |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Associates Chartered Accountants |
|
|
|
|
Holding Company
: |
·
Huhtavefa B.V., Netherlands |
|
|
|
|
Ultimate Parent
Company : |
·
Huhtamaki Oyj., Finland |
|
|
|
|
Fellow Subsidiaries
: |
·
Huhtamaki New Zealand Limited, New Zealand. ·
Huhtamaki Vietnam Limited, Vietnam ·
Huhtamaki Australia Limited, Australia ·
Huhtamaki Deutschland Gmbh and Company KG.,
Germany ·
Huhtamaki South Africa Limited, South Africa ·
Huhtamaki (Thailand) Limited, Thailand |
CAPITAL STRUCTURE
AS ON 31.12.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs. 300.000 Millions |
|
700000 |
12% Redeemable Cumulative Preference Shares |
Rs.100/-
each |
Rs. 70.000
Millions |
|
300000 |
Unclassified Shares |
Rs.100/-
each |
Rs. 30.000 Millions |
|
|
Total |
|
Rs. 400.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62687190 |
Equity Shares |
Rs.2/- each |
Rs. 125.375
Millions |
|
Add |
Forfeited Shares |
|
Rs. 0.009
Millions |
|
|
Total |
|
Rs. 125.383 Millions |
Note: Paid up share capital includes 7525000 (Previous
Year 7525000)
Bonus Shares of Rs. 2/- each issued by
capitalization of reserves
Paid up Share capital includes 36934100
(Previous year 36934100)
Shares of Rs. 2/- each held by holding company
Huhtavefa B. V.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
125.383 |
125.383 |
125.383 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2811.229 |
2490.080 |
2336.317 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2936.612 |
2615.463 |
2461.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
14.042 |
2.853 |
|
|
2] Unsecured Loans |
225.309 |
225.309 |
495.301 |
|
|
TOTAL BORROWING |
225.309 |
239.351 |
498.154 |
|
|
DEFERRED TAX LIABILITIES |
52.639 |
67.759 |
68.965 |
|
|
|
|
|
|
|
|
TOTAL |
3214.560 |
2922.573 |
3028.819 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1752.959 |
1987.843 |
1636.590 |
|
|
Capital work-in-progress |
33.920 |
45.716 |
468.915 |
|
|
|
|
|
|
|
|
INVESTMENT |
394.481 |
310.359 |
169.756 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
892.068
|
759.294
|
621.215
|
|
|
Sundry Debtors |
1188.299
|
971.981
|
944.189
|
|
|
Cash & Bank Balances |
108.447
|
40.774
|
126.379
|
|
|
Other Current Assets |
123.166
|
109.890
|
123.484
|
|
|
Loans & Advances |
197.555
|
212.051
|
203.943
|
|
Total
Current Assets |
2509.535
|
2093.990 |
2019.210 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
941.034
|
814.713
|
647.197
|
|
|
Other Current Liabilities |
308.078
|
430.529
|
418.089
|
|
|
Provisions |
227.223
|
270.093
|
200.396
|
|
Total
Current Liabilities |
1476.335
|
1515.335 |
1265.682 |
|
|
Net Current Assets |
1033.200
|
578.655
|
753.558
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3214.560 |
2922.573 |
3028.819 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7040.100 |
5776.923 |
6120.884 |
|
|
|
Other Income |
83.218 |
79.028 |
101.992 |
|
|
|
TOTAL (A) |
7123.318 |
5855.951 |
6222.876 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
4965.529 |
3825.421 |
4263.021 |
|
|
|
Manufacturing and Operating Expenses |
447.841 |
416.761 |
393.485 |
|
|
|
Personnel Expenses |
591.007 |
493.334 |
509.269 |
|
|
|
Administrative and Selling Expenses |
354.345 |
329.286 |
331.486 |
|
|
|
Foreign Exchange |
(28.039) |
(15.357) |
131.959 |
|
|
|
TOTAL (B) |
6330.683 |
5049.445 |
5629.220 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
792.635 |
806.506 |
593.656 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.970 |
(0.710) |
9.835 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
786.665 |
807.216 |
583.821 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
323.967 |
311.467 |
286.164 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
INCOME / (EXPENSES) |
122.809 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
585.507 |
495.749 |
297.657 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
134.794 |
121.964 |
84.779 |
|
|
|
|
|
|
|
|
|
Add |
EXTRAORDINARY INCOME
/ (EXPENSES) |
30.527 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
481.240 |
373.785 |
212.878 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
966.246 |
849.862 |
790.285 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
48.124 |
37.379 |
21.288 |
|
|
|
Dividend |
137.912 |
125.374 |
112.837 |
|
|
|
Provision for Dividend |
22.179 |
21.307 |
19.176 |
|
|
|
Proposed special one time dividend |
0.000 |
62.687 |
0.000 |
|
|
|
Provision for Dividend Tax |
0.000 |
10.654 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1239.271 |
966.246 |
849.862 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1088.748 |
1235.785 |
1258.700 |
|
|
|
Other Earnings |
21.148 |
26.741 |
26.901 |
|
|
TOTAL EARNINGS |
1109.896 |
1262.526 |
1285.601 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
984.591 |
982.165 |
1112.281 |
|
|
|
Stores & Spares |
21.187 |
18.471 |
25.632 |
|
|
|
Capital Goods |
27.003 |
18.825 |
107.839 |
|
|
TOTAL IMPORTS |
1032.781 |
1019.461 |
1245.752 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.68 |
5.96 |
3.40 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
31.03.2011 5thQuarter
|
|
Net Sales |
2014.100 |
|
Total Expenditure |
1760.500 |
|
PBIDT (Excl OI) |
253.600 |
|
Other Income |
15.300 |
|
Operating Profit |
268.900 |
|
Interest |
1.400 |
|
Exceptional Items |
0.000 |
|
PBDT |
267.500 |
|
Depreciation |
77.200 |
|
Profit Before Tax |
190.300 |
|
Tax |
45.100 |
|
Profit After Tax |
145.200 |
|
Net Profit |
145.200 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2010 |
31.12.2009 |
31.12.2008 |
|
PAT / Total Income |
(%) |
6.76
|
6.38 |
3.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.32
|
8.58 |
4.86 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.74
|
12.14 |
8.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.18 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.60
|
0.67 |
0.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.38 |
1.60 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE DURING
THE YEAR
During the year,
the net sales were Rs. 7040.1 millions as compared to Rs. 5776.9 millions in the
previous year. Profit Before Tax and Extraordinary Items was Rs. 585.5 millions
as compared to Rs. 495.7 millions in the previous year.
After providing
for Income Tax of Rs. 134.8 millions, Net Profit after Tax and Extraordinary
Items was Rs. 481.2 millions. Further after transferring an amount of Rs. 48.1
millions to General Reserve, the amount available for appropriation was Rs.
1400.1 millions including amount brought forward of Rs. 966.2 millions of
previous year. The Earning per Equity Share (EPS) including extraordinary items
was Rs. 7.68 and the Earning per Equity Share (EPS) excluding extraordinary
items was Rs. 7.19 millions
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
“Maintain
calmness and stability With Growth with Profitability Despite Turbulence and
Volatility”.
Adaptability
and change management were buzzwords of an earlier decade. Unpredictability was
the running theme of the first decade of the present millennium -- more so for
year 2010.
Emerging
from the shadows of the 2008 meltdown, the economy’s journey to the end of the
decade was a sprint. The Indian economy was on firmer ground compared to the
US, Japanese or European economies. The stimulus package ushered in by the
Government of India led to a robust domestic economic performance. While
developed economies that shrunk in 2009 marginally recovered in 2010, India
registered a robust growth of 7.7%. However, valid concerns on overall
inflation triggered by stagflation in food prices and emerging food crisis in
the region and the geo-political situation in the Middle East are major
dampeners. The overall demand for flexibles in India grew by 15 – 17% with
severe competitive pressures. Despite these challenges, the company performed
very well.
In
2010, its Platinum Jubilee year, Net External Sales were INR 7040.1 millions
against
INR 5776.9 millions for the previous year, registering a growth of 21.9% in
value and 15% in volume terms. Strong domestic demand, gains in operating
efficiencies and overall push for growth helped achieve the strong growth in
2010.
Profit
from ordinary activities before tax was INR 585.5 millions (INR
495.7 millions for 2009), - a growth of 18.1%. Exceptional income for 2010
of INR 122.8 millions included net gain realized from sale of Nagpur factory assets
of INR 139.8 millions in Q1 -2010 and an expense of INR 17.0 millions towards
the Voluntary Retirement Scheme (VRS) at Hyderabad. Current tax for 2010
includes INR 28.6 millions relating to the above exceptional
income. Other extraordinary income (net of tax) of INR 30.5 millions pertains
to partial settlement of Insurance claim for loss suffered because of fire at
Thane and reversal of earlier repairs provision for repairs to machinery at
Thane damaged in 2005.
Net
profit after extraordinary items and tax for Y-2010 was INR 481.2 millions
(INR
373.8 millions for Y-2009). The basic and diluted earnings per share
including extraordinary and exceptional items rose to INR 7.68 (INR 5.96 for
Y-2009) and stood at INR 5.60 excluding extraordinary and exceptional items.
FINANCIAL
OVERVIEW
Sales
Gross
sales for Y 2010 was INR 7613.3 millions (INR 6179.6 millions for Y
2009). As already mentioned, Net sales at INR 7040.1 millions represented
an increase of 21.9% over Y 2009. Volumes grew from 28726 tons in Y 2009 to
33056 tons in Y 2010 - a growth of 15.1%. The Volume growth in 2010 in the core
flexibles business was a robust 17% in line with the market growth. During the
year, unremunerative products in the Specialised Cartons Business were reduced
impacting the overall volume growth.
Other
Income
Other
income was INR 83.2 millions against INR 91.1 millions for Y
2009. It included INR 16.3 millions of Dividend from Mutual Funds ,
INR 1.1 millions from sale of fixed assets, INR 3.2 millions of
sales and purchase tax refunds and the rest from mainly sale of scrap.
Raw
Material
Input
costs rose sharply from 66.2% to 70.5% in Y 2010. Prices of most of the input materials
were volatile but moved in a narrow band except for PET Films and Paper. PET
film prices increased by more than 150%. Diversion of thin films to higher
value added thick films for electronics industry; postponement of capacity
additions in 2009 consequent to the global melt down in 2008 coupled with
closure old and unviable plants in Europe resulted in a serious shortage of PET
firms. Price of films rose very steeply from April 2010 but the customers were
unwilling to adjust laminate prices immediately leading to large, unprecedented
cost price lag.
Prices of a few
other key raw materials – especially dyes and pigments , crude based solvents,
waxes and some specialty grades of polymer resins also went up during the
second half of 2010, primarily due to strong revival in demand and delay in
revival of plants which closed down in 2009. Prices of inks, adhesives and
solvents hardened in the third quarter.
While these
factors were clear to all our customers, they were most reluctant to recognize
the immediate and steep impact of these cost developments. As PET Film prices
jumped every month steeply (sometimes every fortnight), several increases were
needed in a short period to merely maintain margins. Many of our customers
resorted to reverse auctions, hard negotiations with the flexible packaging
manufacturers using consultants, open bidding for specific volumes etc.
Further, excess capacity in the flexible packaging industry which has been the
bane for many years also contributed to inadequate recovery of input costs.
Judicious use of
raw materials, buying forward, hedging and entering into contracts fairly early
in the up moving cycle helped to contain the situation to a certain extent.
Operations
During the year, a
major re-orientation of the planning and review systems for day to day
operations have been put in place. The focus on sweating the assets was
enhanced. They have been able to achieve new benchmarks in asset utilization
and unlocking of capacity through de-bottlenecking, closer coordination between
the various elements of the supply chain and inventory controls. Focus has been
placed on further improving the operating efficiencies and ‘forecasting
reliability’. Expanding supplier base for critical items, introduction of
alternate materials, improving equipment reliability through major overhauls
have been completed in different facets of operations. Two of the major plants
– Rudrapur and Hyderabad are getting ready to induct new machines to augment
capacities. Technology rationalization across sites is in progress. These
measures are expected to bring in sharper focus on throughputs and efficiencies
in the different plants.
CONTINGENT LIABILITIES
|
|
31.12.2010 |
31.12.2009 |
|
i) Excise Duty a Matters in
Appeal – Duty – Penalties b Show cause
notices – Duty –
Penalties |
498.157 7.924 259.674 -- |
497.382 7.148 225.242 1.179 |
|
ii) Customs Duty
demands in appeal |
-- |
-- |
|
iii) Service Tax
show cause notices – Penalties |
9.788 -- |
4.065 0.088 |
|
iv) Service Tax
appeal – Service Tax –
Penalties |
3.060 0.685 |
4.143 0.136 |
|
v) Sales Tax
demands in appeal |
34.742 |
22.998 |
|
vi) Claims against
the company not acknowledged as debts |
12.144 |
12.144 |
|
vii) Counter
guarantees issued to bankers for issuance of guarantees on
behalf of the Company |
17.567 |
17.685 |
|
viii) Contracts
remaining to be executed on capital account and not provided for
(net of advances) |
177.764 |
75.732 |
|
ix) Letters of
Credit issued by banks on behalf of the company for import of
goods |
67.831 |
36.559 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011
Rs. In Millions
|
Particulars |
Quarter ended 31.03.2011 (Unaudited) |
|
Gross Sales |
2146.400 |
|
Less: Excise & Sales Tax |
165.100 |
|
Net Sales / Income from Operations |
1981.300 |
|
Other Operating Income (Refer Note B) |
32.800 |
|
Total Income |
2014.100 |
|
Expenditure |
|
|
(Increase)/ Decrease In Stock In Trade &
Work in Progress |
22.600 |
|
Consumption of Raw & Packing Materials |
1395.000 |
|
Staff Costs |
140.800 |
|
Depreciation & Amortisation |
77.200 |
|
Other Expenditure |
202.100 |
|
Total Expenditure |
1837.700 |
|
Foreign Exchange (Loss)/ Gain |
6.900 |
|
Profit from Operations before Other Income, Interest &
Exceptional items |
183.300 |
|
Other Income |
8.400 |
|
Profit before Interest and Exceptional items |
191.700 |
|
Financial Expenses |
1.400 |
|
Profit after Interest but before Exceptional items |
190.300 |
|
Exceptional Income - (Net) ( Refer note B) |
-- |
|
Profit from Ordinary Activities Before Tax |
190.300 |
|
Provision for - Current Taxes |
51.500 |
|
- Deferred Taxes |
(6.400) |
|
Net Profit from Ordinary Activities After Tax |
145.200 |
|
Extraordinary Income/(Expenses) (net of tax) |
- |
|
Net Profit for the Period |
145.200 |
|
Dividend recommended per Equity Share (Rs.) |
-- |
|
Paid Up Share Capital - Equity Face Value Rs.2 |
125.400 |
|
Reserves (Excl. Revaluation Reserve) |
|
|
Basic & Diluted EPS Including Extraordinary and
Exceptional Items (Not Annualised) (Rs.) |
2.32 |
|
Basic & Diluted EPS Excluding Extraordinary and Exceptional
Items (Not Annualised) (Rs.) |
2.32 |
|
Basic & Diluted EPS Excluding Extraordinary and
Exceptional Items (Not Annualised) (Rs.) |
2.32 |
|
Public Shareholding |
|
|
-Number of Shares |
22641258 |
|
-Percentage of Shareholding |
36.12% |
|
Promoters & Promoter Group Shareholding |
|
|
a. Pledged / Encumbered -Number of Shares |
Nil |
|
-Percentage of Shares ( as a % of the total shareholding
of the |
Nil |
|
promoter & promoter group) |
|
|
-Percentage of Shares ( as a % of the total share capital
of the company) |
Nil |
|
b.Non-Encumbered -Number of Shares |
40045932 |
|
-Percentage of Shares ( as a % of the total shareholding
of the promoter & promoter group) |
100.00% |
|
- Percentage of Share (as a % of the total share
capital of the company) |
63.88% |
Notes :
a.
The company’s sole business segment packaging and all
other activities of the company are incidental to this business segment.
b.
Exceptional income Q1-11 is Nil and Q1-10 of Rs.
139.800 millions represents net gain realized on sale of Nagpur factory assets,
(Current tax for Q1-10 includes Rs. 28.600 millions relating to the said gain)
c.
There were no investor complaints pending at the
beginning and at the quarter. There were two complaints received during the
quarter which were redressed.
d.
The above results were reviewed by the audit
committee and taken on record by the board at it’s meeting held on 27th
April 2011.
e.
Previous period figures are appropriately
reclassified to conform with current period’s classification.
f.
Above results have been subjected to limited review
by the statutory auditors.
FIXED ASSETS:
- Land
- Building
- Computer
- Motor
Vehicles
- Furniture
Fixture Office
- Equipment and
Technical Library
- Computer
software
AS PER WEB SITE
DETAILS
PROFILE:
CORPORATE PROFILE
Perhaps it's a
vision; Perhaps destiny, that makes PPL a part and parcel of the Indian
packaging industry. Or perhaps it's more - Our ability to assimilate and
innovate.
The Year 1935 saw a young visionary herald the era of modern flexible packaging
in India. The next 66 years saw this dream of PPL's founder, Shri Sardarilal
Talwar, transform itself onto a reality, which totally revolutionized the
packaging industry in India.
With consumer packaging sales revenue of Rs 3500 million in
the year 2002, PPL is India's leading Consumer Packaging company.
Today PPL offers a wide portfolio of packaging solutions that
include Flexible Packaging, Labeling Technologies and Specialized
Cartons. And all this supported by the Packaging Machine Division to
provide the customer with Total packaging solutions. With Three state of the
art, fully integrated manufacturing facilities at Thane, Silvassa and
Hyderabad; highly skilled and experienced staff, PPL is capable of working with
the customer from product inception to the super market and with complete
control and confidentiality.
Today, they are proud that we matter to those, for whom
packaging matters most. And this is reflected in the impressive client list
that includes, Levers, Nestle,
Cadbury, Britannia, Glaxo Smithkline, Coca Cola, Perfetti, Dabur, Marico,
P&G
In 1999, PPL became a member of the Huhtamaki Packaging
Worldwide, a global leader in consumer packaging.
NEWS
PRESS REALEASED
SALES
FOR Q1-2011 GROW BY 24.5% & PBT GROWS BY 56.6%
Mumbai,
April 27, 2011: The Paper Products Limited (HUHTAMAKI-PPL), India’s leading flexible
packaging company, today announced its unaudited Financial Results for the
quarter ended March 31, 2011. The company achieved net sales of Rs.198.13
crores during the quarter, representing an increase of 24.5% from net sales of
Rs. 159.08 crores in Q1-2010.
The
profit from ordinary activities before exceptional items and tax is Rs.19.03
crores in Q1-2011 compared to Rs.12.15 crores in Q1-2010 showing a growth of
56.6%.
The
Exceptional income of Rs 13.98 crores in Q1-2010 represented of net gain
realised on sale of Nagpur factory assets. Current tax for Q1-2010 included
Rs.2.86 crores relating to the above exceptional income.
Net
profit after tax for Q1-2011 is Rs. 14.52 crores compared to Rs. 20.00 crores
of Q1-2010.
The
basic and diluted earnings per share is Rs.2.32 in Q1-2011 compared to Rs. 1.42
in Q1-2010 excluding the exceptional items. EPS in Q1-2010 including
exceptional items was Rs.3.19.
About
The Paper Products Limited (HUHTAMAKI-PPL):
PPL is
India’s leading manufacturer of primary consumer packaging with 2010 gross
sales of about Rs.761 crores, and net capital employed of about Rs. 321 crores.
Since
1999, PPL is a joint venture with the global packaging major, Huhtamaki Oyj,
Finland who holds about 59% of the equity capital. Huhtamaki is one of the
world’s top ten consumer packaging multinationals.
PPL is
a pioneer and the technology and market leader in flexible packaging in India
with manufacturing facilities at Thane, Silvassa, Hyderabad and Rudrapur.
It
meets the packaging needs of almost the entire range of FMCG segments including
personal products, personal wash, laundry, foods, sauces, beverages, bakery
products, spices, chocolates and confectionery, dairy and also for seeds,
specialized chemicals, electronics, healthcare and many other specific
specialized uses including anti-spurious packaging.
The
Package Protection and Decoration products range includes latest leading edge
technologies — shrink sleeves, wrap-arounds, heat transfers, pressure sensitives
and metallised paper labels.
Manufacturing
of specialized cartons and cartoning systems, manufacture of poly films,
specialized barrier metallising and high-end application extrusion coating are
also part of PPL’s product offerings.
The
company’s packaging machines division offers complete packaging solutions to
customers.
PPL
mainly caters to the premium segment of packaging and its clients include
Britannia, Cadbury, Castrol, Coca Cola, Dabur, Emami, Eveready, GSK, Godrej,
Hindustan Unilever, ITC, Marico, Nestle, Pepsi, Perfetti, P&G, Tata Tea,
TTK-LIG, Wipro and many more.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.42 |
|
|
1 |
Rs.70.95 |
|
Euro |
1 |
Rs.63.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
71 |
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.