MIRA
INFORM REPORT
|
Report Date : |
13.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE ANDHRA PRADESH PAPER MILLS LIMITED |
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|
|
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Registered
Office : |
Rajamundry-533105, East Godavari District, Andhra Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
29.06.1964 |
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Com. Reg. No.: |
01-001008 |
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Capital
Investment / Paid-up Capital : |
Rs. 327.518 millions |
|
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CIN No.: [Company Identification
No.] |
L21010AP1964PLC001008 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
VPNT00325D |
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PAN No.: [Permanent Account No.] |
AAACT8849B |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares
are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer, Importer and Exporter of Creamwove – Maplitho, Karft
Paper, Uncoated Paper Boards, News Print etc. |
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No of Employees
: |
39736 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
|
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 20000000 |
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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 and reputed company having fine track.
Financial position of the company appears to be sound. 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 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office / Division Office / Factory 1: |
Rajamundry-533105, East Godavari District, Andhra Pradesh, India |
|
Tel. No.: |
91-883-2471831 / 2471837 |
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E-Mail : |
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Website : |
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Corporate Office : |
501-509, Swapnalok Complex, 5th Floor, 92/93, Sarojini Devi
Road, Secunderabad-500003, Andhra Pradesh, India |
|
Tel. No.: |
91-40-30482614 / 27813715 |
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Fax No.: |
91-40-27813717 |
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E-Mail: |
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Divisions : |
Industrial Area, MR
Palem-533 126, Kadiam Mandalam, East Godavari District, Paper Cut to Size Unit Tel No.:- 91-8656– 261 463 |
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Branches : |
DELHI
KOLKATA 7th Floor, Krishna Apartments, 224/A, AJC
Bose Road, Kolkata 700 017, West Bengal, India CHENNAI C/o Hindustan Import Export Corporation,
Post Box No.1205, 122, Broadway, 2nd Floor, Chennai 600 108,
Tamil Nadu, India MUMBAI Shrinivas House, Hazarimal Somani Marg, Mumbai
400 001, Maharashtra, India BANGLORE # 36, Ground Floor, 2nd Main Road,
Satyanarayana Temple Street, Srinivas Nagar, Kathireguppa Main Road, BSK 111
Stage, Bangalore 560 085, India |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. LN. Bangur |
|
Designation : |
Executive Chairman |
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|
Name : |
Ms. Alka Bangur |
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Designation : |
Director |
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Name : |
Mr. N. Srinivasan |
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Designation : |
Director |
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Name : |
Mr. R.C. Sarin |
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Designation : |
Director |
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|
Name : |
Mr. P.J.V. Sarma |
|
Designation : |
Director |
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Name : |
Mr. P. K. Paul |
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Designation : |
Director |
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|
Name : |
Mr. Rajiv Kapasi |
|
Designation : |
Director |
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|
Name : |
Mr. M.K. Tara |
|
Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Ms. Sheetal Bangur |
|
Designation : |
Director (Commercial) |
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|
Name : |
Mr. Shreeyash Bangur |
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Designation : |
Director (Corporate) |
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Name : |
Mr. P.K. Suri |
|
Designation : |
Director (Operations) |
KEY EXECUTIVES
|
Name : |
Mr. E. Sairam |
|
Designation : |
Senior Vice President (Finance and Accounts) and Chief Finance Officer |
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|
Name : |
Mr. C. Prabhakar |
|
Designation : |
Senior Vice President (Corporate Affairs) and Company Secretary |
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Name : |
Mr. Amit Mehta |
|
Designation : |
Principal Executive to Chairman |
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Name : |
Mr. Jaspal Singh |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. Hemant Kumar Singh |
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Designation : |
Chief Information Officer |
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Name : |
Mr. Yogesh Jain |
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Designation : |
General Manager (Commercial) |
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Name : |
Mr. C. Sankar |
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Designation : |
General Manager (Accounts) |
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Name : |
Mr. Y. Uday Shankar |
|
Designation : |
General Manager (Product Development and Technical Services) |
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|
Name : |
Mr. Shalab Agarwal |
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Designation : |
General Manager (Marketing) |
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Name : |
Mr. S. Vasudevan |
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Designation : |
General Manager (Marketing Support) |
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Name : |
Dr. Alok Prakash |
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Designation : |
Associate Vice President (Marketing) |
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Name : |
Mr. C.S. Murty |
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Designation : |
Senior Vice President (Projects) |
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Name : |
Mr. J.K. Jain |
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Designation : |
Vice President (Raw Materials) |
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|
Name : |
Mr. V.V.B. Vasantha Rao |
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Designation : |
Associate Vice President (Works) (UnitAPPM) |
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|
Name : |
Mr. R.G. Mandhania |
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Designation : |
Associate Vice President (Works) |
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|
Name : |
Mr. K.M. Kasetty |
|
Designation : |
General Manager (Paper) |
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 |
|
|
|
|
|
|
|
|
944098 |
2.37 |
|
|
20315910 |
51.08 |
|
|
21260008 |
53.46 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
21260008 |
53.46 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
-- |
|
|
4805 |
0.01 |
|
|
2527974 |
6.36 |
|
|
362489 |
0.91 |
|
|
3971876 |
9.99 |
|
Foreign
Financial Institutions |
3971676 |
9.99 |
|
Foreign
Banks |
200 |
-- |
|
|
6867344 |
17.27 |
|
|
|
|
|
|
56846790 |
14.70 |
|
|
|
|
|
|
2958241 |
7.44 |
|
|
2726681 |
6.86 |
|
|
110975 |
0.28 |
|
|
61199 |
0.15 |
|
|
15108 |
0.04 |
|
|
27149 |
0.07 |
|
|
7519 |
0.02 |
|
|
11642687 |
29.28 |
|
Total Public shareholding (B) |
18510031 |
46.54 |
|
Total (A)+(B) |
39770039 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
-- |
- |
|
Total (A)+(B)+(C) |
39770039 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer, Importer and Exporter of Creamwove – Maplitho, Karft
Paper, Uncoated Paper Boards, News Print etc. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Pulp, Paper and Board |
MT |
|
174000 |
176452 |
|
Generation of Electricity |
MW |
|
62.94 |
2669.94 |
|
Generation of Steam |
TPH |
|
573 |
2001686 |
Notes:
Licensed capacity
not applicable in terms of Government of India's Notification. Installed
capacities are as certified by the Managing Director.
1.
Represents Finished Production of 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
24,705 MT (Previous Year - 31,609 MT) meant for external sales.
2.
Generation of steam is for internal consumption and
generation of electricity is for internal consumption and for sale of power
(effective from 12th June, 2009).
GENERAL INFORMATION
|
No of Employees
: |
39736 (Approximately) |
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Bankers : |
·
State Bank of India ·
Canara Bank ·
Axis Bank Limited ·
IDBI Bank Limited |
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Facilities : |
Notes 1.
Term loans from the financial institutions viz.
International Finance Corporation, Deutsche Investitions-und Entwick lungs
gesellschaft mbH, State Bank of India, Canara Bank, IDBI Bank Limited and
Axis Bank Limited are secured by a pari passu first charge on all movable and
immovable properties of the Company situated at Rajahmundry,
Serinarasannapalem and Kadiyam, in accordance with respective loan agreements
and subject to charge under Note No.2. Further, term loans from Axis Bank
Limited have a second charge on current assets of the Company. The charge
creation in respect of corporate loan of Rs.150.000 millions availed from
IDBI Bank Limited is pending. 2.
Working capital facilities from State Bank of
India and Canara Bank are secured by hypothecation of raw materials, finished
stock, stock in process, stores and spare parts etc. along with a second
charge on the fixed assets of the Company situated at Rajahmundry,
Serinarasannapalem and Kadiyam. 3.
9,71,115 equity shares of Rs.10 each of the Company
held by M/s. Digvijay Investments Limited (Promoters' group) have been
pledged in favour of IDBI Trusteeship Services Limited for the benefit of
International Finance Corporation and Deutsche Investitions-und Entwick lungs
gesellschaft mbH.
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Banking
Relations : |
-- |
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|
|
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Auditors : |
|
|
Name : |
Brahmayya and Company Chartered Accountant |
|
Address : |
Visakhapatnam, India |
|
|
|
|
Associates/Subsidiaries : |
·
Digvijay Investments Limited ·
Amalgamated Development Limited ·
Apurva Export Private Limited ·
MB Commercial Company Limited ·
Maharaja Shree Umaid Mills Limited1 ·
Mugneeram Ramcoowar Bangur Charitable and
Religious Company ·
Placid Limited ·
Shree Krishna Agency Limited ·
The General Investment Company Limited ·
The Kishore Trading Company Limited ·
The Peria Karamalai Tea and Produce Company
Limited1 ·
The Swadeshi Commercial Company Limited ·
Samay Books Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
500000 |
Equity Shares |
Rs.100/-
each |
Rs. 50.000
Millions |
|
|
Total |
|
Rs. 450.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32751797 |
Equity Shares |
Rs.10/- each |
Rs. 327.518
Millions |
|
|
|
|
|
Notes :
9,98,500 Equity
Shares of Rs.10 each were allotted as fully paid up pursuant to a contract
without payment being received in cash
11,25,000 Equity Shares
of Rs.10 each fully paid up were allotted for consideration other than cash as
Bonus Shares by Capitalisation of Reserves
5,80,000 Equity
Shares of Rs.10 each were allotted to the shareholders of amalgamating Company,
Coastal Papers Limited pursuant to the Scheme of Amalgamation without payment
being received in cash
70,18,242
Detachable Warrants allotted will be converted into equivalent number of Equity
Shares of Rs.10 each, on payment of warrant exercise price of Rs.50 per Warrant
at any time before the expiry of 18 months from the date of allotment i.e. 30th
September, 2011
AS ON : 15.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
500000 |
Equity Shares |
Rs.100/-
each |
Rs. 50.000
Millions |
|
|
Total |
|
Rs. 450.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39770039 |
Equity Shares |
Rs.10/- each |
Rs. 397.700
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
327.518 |
257.336 |
257.336 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4701.935 |
3922.440 |
3906.958 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5029.453 |
4179.776 |
4164.294 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4569.541 |
4747.779 |
4358.448 |
|
|
2] Unsecured Loans |
498.904 |
862.538 |
960.857 |
|
|
TOTAL BORROWING |
5068.445 |
5610.317 |
5319.305 |
|
|
DEFERRED TAX LIABILITIES |
307.525 |
216.555 |
211.750 |
|
|
|
|
|
|
|
|
TOTAL |
10405.423 |
10006.648 |
9695.349 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6779.926 |
7508.689 |
7334.391 |
|
|
Capital work-in-progress |
2259.575 |
1524.621 |
1304.628 |
|
|
|
|
|
|
|
|
INVESTMENT |
166.434 |
166.434 |
166.434 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1158.720
|
1352.485 |
1048.136 |
|
|
Sundry Debtors |
464.246
|
387.491 |
458.770 |
|
|
Cash & Bank Balances |
137.664
|
80.700 |
132.950 |
|
|
Other Current Assets |
13.136
|
11.666 |
8.123 |
|
|
Loans & Advances |
709.775
|
557.793 |
553.055 |
|
Total
Current Assets |
2483.541
|
2390.135 |
2201.034 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1048.068
|
1349.001 |
1076.531 |
|
|
Other Current Liabilities |
172.349
|
198.025 |
200.956 |
|
|
Provisions |
63.636
|
50.476 |
56.970 |
|
Total
Current Liabilities |
1284.053
|
1597.502 |
1334.457 |
|
|
Net Current Assets |
1199.488
|
792.633 |
866.577 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
14.271 |
23.319 |
|
|
|
|
|
|
|
|
TOTAL |
10405.423 |
10006.648 |
9695.349 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6490.786 |
6279.485 |
5788.864 |
|
|
|
Other Income |
82.852 |
102.329 |
132.588 |
|
|
|
TOTAL (A) |
6573.638 |
6381.814 |
5921.452 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
1561.833 |
1885.755 |
1920.886 |
|
|
|
Increase / (Decease) in Stocks |
184.439 |
(308.652) |
(128.293) |
|
|
|
Employee Costs |
564.892 |
550.765 |
525.887 |
|
|
|
Manufacturing Expenses |
2208.361 |
2490.710 |
2314.890 |
|
|
|
Other Expenses |
509.572 |
500.487 |
467.126 |
|
|
|
Deferred Revenue Expenses Written Off |
14.271 |
9.048 |
17.642 |
|
|
|
Exceptional Items |
0.000 |
0.000 |
(70.552) |
|
|
|
TOTAL (B) |
5043.368 |
5128.113 |
5047.586 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1530.270 |
1253.701 |
873.866 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
321.545 |
493.709 |
153.607 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1208.725 |
759.992 |
720.259 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
558.172 |
541.119 |
523.622 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
650.553 |
218.873 |
196.637 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
108.619 |
29.334 |
31.237 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
541.934 |
189.539 |
165.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1196.101 |
1040.628 |
921.935 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
19.000 |
16.600 |
|
|
|
Proposed Equity Dividend |
32.752 |
12.877 |
25.734 |
|
|
|
Corporate Tax on Dividend |
5.440 |
2.189 |
4.373 |
|
|
|
Excess Provision for Equity Dividend of
Earlier Year Written Back |
(0.010) |
0.000 |
0.000 |
|
|
|
Excess Provision for Corporate Tax on
Dividend for Earlier Year Written Back |
(0.001) |
0.000 |
0.000 |
|
|
BALANCE CARRIED TO
THE B/S |
699.854 |
1196.101 |
1040.628 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
441.798 |
540.508 |
407.415 |
|
|
TOTAL EARNINGS |
441.798 |
540.508 |
407.415 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
260.247 |
306.801 |
327.783 |
|
|
|
Stores & Spares |
157.538 |
201.018 |
147.609 |
|
|
|
Capital Goods |
101.339 |
1.599 |
615.222 |
|
|
TOTAL IMPORTS |
519.124 |
509.418 |
1090.614 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.03 |
7.37 |
6.44 |
|
QUARTERLY /
SUMMARISED RESULTS
(Rs.
In Millions)
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1761.500 |
1832.220 |
1759.07 |
2573.590 |
|
Total Expenditure |
1335.540 |
1416.340 |
1381.890 |
2213.060 |
|
PBIDT (Excl OI) |
425.960 |
415.880 |
377.180 |
360.530 |
|
Other Income |
10.680 |
10.740 |
12.350 |
26.060 |
|
Operating Profit |
436.640 |
426.620 |
389.530 |
386.590 |
|
Interest |
80.960 |
101.700 |
111.410 |
104.770 |
|
Exceptional Items |
0.00 |
0.000 |
0.000 |
0.000 |
|
PBDT |
355.680 |
324.920 |
278.120 |
281.810 |
|
Depreciation |
153.260 |
173.350 |
174.470 |
168.590 |
|
Profit Before Tax |
202.380 |
151.570 |
103.650 |
113.260 |
|
Tax |
40.600 |
30.000 |
21.700 |
29.140 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.00 |
0.000 |
|
Profit After Tax |
161.720 |
121.570 |
81.950 |
84.180 |
|
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 |
161.720 |
121.570 |
81.950 |
84.180 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.24
|
2.97 |
2.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.02
|
3.48 |
3.40 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.02
|
2.21 |
2.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.05 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.32
|
1.78 |
1.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93
|
1.50 |
1.65 |
LOCAL AGENCY FURTHER INFORMATION
MARKETING AND
EXPORTS
Sales for the year
were 1,77,351 MT as compared to 1,70,239 MT in the previous year. In 2009-10, paper
sales comprised 1,52,646 MT and sale of surplus pulp was 24,705 MT. In
comparison, paper sales in 2008-09 was 1,38,630 MT and that of pulp was 31,609
MT. While the slowdown in the economy had limited impact on the volumes, it did
have an impact on the price realizations both in the pulp and paper segments.
NEW PRODUCTS
In the second half
of the year, the Company introduced a new 90+ brightness range of papers in a
bid to re-establish and grow their volumes in both copier and graphic papers including
India's first copier with Colour Freeze technology - Copyrite. Apart from this, the other introductions are Reflection a premium grade 70 GSM
copier, a high bright paper Andhra
Starwhite, high-end writing and printing paper Andhra Primavera, a premium grade Maplitho paper Andhra Royal Silk and a superior
special grade paper Andhra Hi Brite SG
Maplitho in the surface size segment. Andhra Skytone and Andhra Starliner in the premium non-surface
sized category were introduced to primarily cater to the notebook conversion
segment. All these products are positioned and benchmarked to the best in
competition and have not only been very well received but are also being
increasingly demanded by the end customer.
PROJECTS
IMPLEMENTED
UNIT: APPM
The Company
successfully started commercial production from Paper Machine No.6 on 19th May,
2010 at its Unit: APPM at Rajahmundry. Currently, the Voith made machine
imported from Salach, Germany has a paper production capacity of 67,000 MTPA of
UFS (Uncoated Free Sheet) and Copier Grades. However, with some modifications,
the machine can be scaled up to manufacture an additional 20,000 MTPA. With the
startup of this machine, the Company now has approximately 250,000 MTPA of Pulp and Paper manufacturing
capacity.
The start up of
Paper Machine No.6 marks the end of the final phase of the Mill Development
Plan worth almost USD 205 million at Unit: APPM. Earlier, the Company had
commissioned a 500 Bone Dry Metric Tonnes (BDMT)/day Elementary Chlorine Free
(ECF) pulp mill of Andritz make, a 105 TPH coal fired boiler and a 34 MW
turbine at the same location. With its new ECF pulp mill, de-inking plant and
rice straw pulp mill, the Company is among a handful of fully integrated paper
manufacturers in India who are not dependent on market pulp.
UNIT: CP
PROJECTS
IMPLEMENTED
SLUDGE DE-WATERING
MACHINE
Sludge de-watering
press of 35 BD MTPD sludge handling capacity was commissioned on 25th August,
2009 for disposal of sludge. The performance has been satisfactory.
AWARDS
The Company
received the following awards during the year :
i.
A special award by CAPEXIL (sponsored by Ministry
of Commerce and Industry, Government of India) in
recognition of
outstanding export performance in respect of paper and paperboards for the year
2008-09.
ii.
Forest Stewardship Council's (FSC) Chain-of-Custody
(COC) Certificate for responsible sourcing of pulpwood fibre for manufacture of
pulp and paper.
iii.
First Prize under National category for design and
concept of the stall at the International Exhibition and Conference in New
Delhi by PAPEREX.
iv.
Gold Medal from the Governor of Andhra Pradesh and
President - Red Cross Society, AP State Branch for assisting Red Cross Society
in mobilising resources for its various humanitarian activities in East
Godavari District for the year 2008-09.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDIAN PAPER
INDUSTRY - BRIEF OVERVIEW
Paper has been a
medium for propagation and communication of thoughts and ideas. Despite the growth
of electronic media, paper remains the most popular mode of communication in
the lettered world. The paper industry has been growing at a steady clip in the
past few years across the world, especially in the developing countries such as
India and China. Currently, the industry in India finds demand outstripping
supply. With increasing focus on literacy, growing demand for packaged products
and packaging, the latent or potential demand is huge and is waiting to be
tapped.
The domestic paper
industry seems set to demonstrate robust growth in the coming years. A large
number of well known paper companies in the country have expanded or planned
for expansion of capacities. All of them stand to gain from using eco-friendly
modes of producing paper and from growing emphasis on recycling paper. With
increasing consumption of paper, the paper companies are expected to show
robust growth in volumes, revenues and bottom line.
BACKGROUND
The Indian paper
industry is more than 140 years old with the first mill having been
commissioned in 1867. Over the years, in line with the improvement in the
well-being of people and rising literacy and aspiration levels, paper usage has
increased. Today almost every person uses paper in one form or the other. The
industry has responded to the growth in demand and the installed capacity in
India has risen from 0.137 million MT per annum in 1951 to 10 million MT. This
includes capacity expansion of approximately 0.7 million MT during the past
year.
Domestic
production of paper and paperboards is estimated to be around 10 million MT as
per industry estimates. Overall paper consumption (including newsprint) has
also touched 10 million MT and per capita consumption stands at approximately 9
kgs. However, the momentum in paper usage has neither kept pace with the growth
in population, nor does it match the global per capita consumption of 55 kgs.
While India has
15% of the world population, it consumes only 1.6% of the world paper
production. The low consumption pattern remains both a challenge in the short
term as well as an opportunity in the long term to tap the future aspiration
requirements of the Indian society.
At present, there
are about 515 units engaged in the manufacture of paper, paperboards and
newsprint across the country. India is nearly self-sufficient in the
manufacture of most varieties of paper and paperboards. Import is confined only
to certain specialty papers and newsprint.
Paper
manufacturers use a variety of raw materials like hardwood, bamboo, recycled
fiber, bagasse, wheat and rice straw. Approximately 30% of the paper
manufacturing units in India are based on chemical pulp, 39% on recycled fiber
and 31% on agro-residues. A substantial part of the raw material needs of the
country is met through wood procured indigenously and imported pulp and waste
paper accounts for 6 to 7% of the domestic production.
The geographical
spread of the industry as well as the paper markets is mainly responsible for
the regional balance of production and consumption.
Most paper mills
in India have been in existence for several years and therefore use a wide
spectrum of technologies ranging from the oldest to the most modern.
Performance of the
industry has been constrained due to high cost of production characterized by
rising raw material and power cost. The industry needs large quantity of
pulpwood and water and often faces supply limitations for them. Furthermore,
they are subject to very strict environmental regulations.
Paper industry in
India is highly fragmented. The sector is dominated by small and medium sized
units and the number of mills with capacity of more than 50,000 MTPA is not
more than 30. In products such as newsprint, less than half a dozen mills
account for almost 90% production in the country. In recent times, the industry
is striving to modernize its manufacturing locations, improve productivity and
build new production capacities with the induction of pulp and paper machines
with capabilities of producing more than 50,000 MTPA.
Industry pressures
have been managed better by forward looking entrepreneurs. Large modern mills
which are environment conscious and are reasonably assured of raw material
supplies are presently able to expand capacities, derive advantages of size,
enhance production efficiencies, improve productivity and quality and respond
to the challenges of the market. These units place premium on latest technology
and environmental standards and have derived productivity gains which in turn
have helped them climb up the value chain both in terms of product and process
efficiencies.
The Union
Government has completely delicensed the paper industry with effect from 17th
July, 1997. Entrepreneurs are required to file an Industrial Entrepreneur Memorandum
with the Secretariat for Industrial Assistance for setting up a new paper mill
or substantial expansion of the existing mill in permissible locations.
Paper industry has
been granted the status of a priority sector for foreign collaboration and
foreign equity participation up to 100% and is entitled to receive automatic
approval from Reserve Bank of India. Several fiscal incentives have also been
provided particularly to those mills which are based on non-conventional raw
materials.
Estimated turnover
of the industry is approximately Rs.296000.000 millions and its contribution to
the exchequer is around Rs.29000.000 millions. The industry provides employment
to more than 1,20,000 people directly and to 3,40,000 indirectly.
CRISIL in its
latest report has categorized industrial papers as the highest market segment
which accounts for approximately 41% of the paper market; the writing and
printing (W&P) segment constitutes about 39%; newsprint
and specialty
segments make up the balance 15% and 5%, respectively.
Demand for paper
and paperboard closely follow the economic growth of a country and have a
positive correlation to the prevailing economic trends. In India, the demand
drivers and growth triggers have come from a combination of factors:
·
The rising level of national income;
·
The growing per capita disposable income;
·
Rising aspiration levels of the people;
·
Increasing size of the population;
·
Increasing size of the service industry;
·
Spread of education and literacy throughout the
country;
·
Government's several initiatives that focus on
education; and
·
Higher level of industrial activity and corporate
spending.
Historically,
strong economic growth has been accompanied by equally robust demand for paper.
So far, the growth in Indian paper industry has mirrored the growth in GDP
which, has grown on an average 8 % over the past few years. During the past
five years, while newsprint registered a growth of 13%, W and P,
containerboard, carton board and others registered growth of 7.5%, 11% and 9%,
respectively.
OUTLOOK AND
OPPORTUNITIES FOR THE INDUSTRY
The paper
industry's challenges would offer opportunities for the best integrated mills
with the ability to produce high quality products at the most competitive
prices. Vertically integrated producers with the latest technology would be
able to offer the best quality products
while containing their costs.Improved processes and cost controls would
facilitate margins and manage competitive pressures.
APPM has been one
of the first to recognize the potential in actively promoting farm forestry
with private land holders/ farmers to meet its raw material needs in a
sustainable manner. This has helped the Company to access pulp of the highest
quality, modernise the processes by incorporating the latest state-of-the-art
production technology, enhance production capacity, conserve fossil fuel,
recover and recycle chemicals and water, improve productivity and quality of
products, upgrade environmental technologies and be cost competitive in
manufacturing economics. APPM has hugely improved its competitive strength and
presently has the ability to overcome the pressure points that confront the
industry.
PERFORMANCE REVIEW
PROFITABILITY
The domestic pulp
and paper market was impacted by the global slowdown in the early part of the
year, with drop in both volumes and prices. Both pulp and paper prices were
aligned with the global trends, which witnessed resurgence from around November
2009. APPM managed the challenges better throughout the year and reported a
higher Profit before Depreciation and Tax (PBDT) of Rs.1208.725 millions for
2009- 10 as compared to Rs.759.992 millions in the previous year. The PBDT as a
percentage of Sales increased to 18.06% in the year under review from 11.56%
earned a year ago.
The Profit after
Tax (PAT) was also higher by approximately 185.92% at Rs.541.934 millions over
Rs.189.539 millions achieved in 2008-09. PAT as a percentage of Sales increased
to 8.10% as compared to 2.88% in the earlier year.
OUTLOOK
Indian economy showed
7.4% GDP growth in 2009-10 and has been one of the better managed countries
protecting itself from sharp decline. It is also estimated that India will
demonstrate sustained growth higher than global average, with GDP growth of
over 8.5% in 2010-11 and rising to about 10% in subsequent years.
Paper industry in
general and APPM in particular, needs to be ready to grab the emerging
opportunities by developing an infrastructure that enables higher production,
improves productivity and lowers manufacturing costs.
Looked at a wider
perspective, we live in a knowledge oriented world where majority of people
have increasing aspiration levels and feel a need to improve their quality of
life. There is anecdotal evidence that confirms increasing use of paper with
rising human development. Demand for paper is expected to keep increasing in
times to come especially in developing countries such as India and China. In
view of the paper industry's strategic role for the society and for the overall
industrial growth, it is imminent that the paper industry performs well.
India is one of
the fastest growing markets for paper globally and this presents an exciting
scenario. Paper consumption is poised for a big leap forward in sync with the
economic growth and is estimated to touch 14.95 million MT by 2015-16.
It is estimated by
industry experts that growth in paper consumption would be in multiples of GDP
and hence an
increase in
consumption by one kg per capita would lead to an increase in demand of more
than a million MT of paper. According to estimates made by the Indian Paper
Manufacturers Association, paper production is likely to grow at a CAGR of 8.4%
while paper consumption will grow at a CAGR of 9% till 2012-13 (as against CAGR
of 7% estimated by CRISIL). Imports are expected to supplement indigenous
supplies in products wherein Indian players are not actively present.
Presently, there
is a balance between the domestic supply and demand for paper products, which
both stand at around 10 million MTPA. However, with additional capacity coming
in shortly, the supply is set to exceed the demand this year.
The existing total
paper production capacity of 10 million MTPA in the country and the additional
capacity of around 350,000 MTPA expected to go on stream in 2010 are likely to
disturb the existing demand-supply equilibrium for a short while. The
additional capacity would be absorbed by the market in a year's time wiping out
the demand-supply gap as the demand for paper is expected to grow by 9% in 2010
as against 6% in 2009.
APPM seeks to grow
faster than the industry average both in volume and bottom line and is striving
to participate in the improving demand scenario for paper by ensuring economies
of scale, efficient usage of resources and value chain management. The
investments that continue to be made in the systems, processes, product and
market are expected to add traction to the Company's operational performance
and meet stakeholder expectations. A strong marketing team, revitalized
marketing strategy, new product developments and high-end quality products
launched over the past year would add to traction at APPM to ride the future
with confidence.
FIXED ASSETS
·
Land
·
Road and Drainages
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Furniture and Fixtures
·
Trucks and Vehicles
·
Goodwill
AUDITED
FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011
(Rs. In millions)
|
Particulars |
31.03.2011 |
|
(a) Net Sales/ Income from
operation |
7818.127 |
|
(b) Other Operating Income |
168.081 |
|
Total Income |
7986.208 |
|
2. Expenditure |
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
138.599 |
|
b. Consumption of Raw-Materials |
2010.430 |
|
c. Stores |
1709.2010 |
|
d. Employees Cost |
797.624 |
|
e. Power and Fuel |
940.262 |
|
f. Other Expenditure |
750.708 |
|
g. Total |
6346.833 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
6346.833 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
-- |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
6346.833 |
|
6. Interest |
398.843 |
|
7. Deprecation |
669.672 |
|
8. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
570.860 |
|
9. Tax Expenses |
121.438 |
|
10. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
449.422 |
|
11. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
397.700 |
|
12. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
5385.573 |
|
16. Earning per Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period,
for the year to date and for the previous year (not annualised) |
12.82 |
|
b) Basic and diluted EPS after extraordinary items for the period,for
the year to date and for the previous year (not annualised) |
12.82 |
|
17. Public Shareholding |
|
|
Number of Shares |
18510031 |
|
% of Share holding |
46.54 |
|
18. Promoters and promoter group Shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of shares |
1499330 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
7.05 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
3.77 |
|
b) Non-encumbered |
|
|
- Number of shares |
19760678 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
92.95 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
49.69 |
Notes :
1.
Statement of Assets and Liabilities
|
STATEMENT OF ASSETS AND LIABILITIES |
31.03.2011 |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
397.700 |
|
2] Reserves & Surplus |
5385.573 |
|
3] Share Application Money |
0.000 |
|
LOAN FUNDS |
4359.672 |
|
DEFERRED TAX LIABILITIES |
427.125 |
|
|
|
|
TOTAL |
10570.070 |
|
|
|
|
FIXED ASSETS [Net Block] |
8950.568 |
|
INVESTMENT |
166.434 |
|
DEFERREX TAX ASSETS |
0.000 |
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
Inventories |
1210.685 |
|
Sundry Debtors |
562.936 |
|
Cash & Bank Balances |
206.809 |
|
Loans & Advances |
918.198 |
|
Total Current
Assets |
2898.628 |
|
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
Current Liabilities |
1399.338 |
|
Provisions |
46.222 |
|
Total Current
Liabilities |
1445.560 |
|
Net Current
Assets |
1453.068 |
|
|
|
|
TOTAL |
10570.070 |
2
Pursuant to notification dated 31st March,2009 of the
Ministry of Corporate Affairs, Government of India, the Company had opted for
accounting the exchange differences arising on reporting of long term foreign
currency monetary items in line with the Companies (Accounting Standards)
Amendment Rules 2009, on Accounting Standard AS 11 with effect from 1st April ,
2007. As a result, during the year the value of assets has been decreased by
Rs.9.223 millions and charge for depreciation more by Rs.3.389 millions and
pmtit for the current year is less by Rs.12.612 millions. The option given in
the notification is fully exercised and completed by 31st March, 2011.
3.
The Company is in the business of manufacture and
sale of pulp, paper and paper board. Management views manufacture and sale of
Pulp, paper and Paper boards as a single reportable business segment.
4.
The Promoters of the company viz., LN Bangur group
vide letter dated 29th March,2011 informed the company that they had executed
an agreement to sell their entire shareholding of2,12,60,008 equity shares of
Rs.101- each held by them in the company to IP Holding Asia Singapore PTE Ltd (Acquirer), a subsidiary of
International Paper Company, USA. The transfer of the aforesaid shares will
take place after receiving the necessary approvals by the Acquirer. The Acquirer
is an unlisted company incorporated under the Laws of Singapore. International
Paper is a global paper and packaging Company and is listed on New York Stock
Exchange.
5.
The Company has since the inception of Accounting
Standard 22 on Accounting for Taxes on Income, recognized the deferred tax
expense, which arises primarily from depreciation on tangible fixed assets on the basis of the
currently applicable enacted Minimum Alternate Tax rate rather than the regular
tax rates specified by paragraph 21 of Accounting Standard 22. The Company has
challenged the provisions of Accounting Standard 22, insofar as it relates to
the above matter and has accordingly filed a writ petition in June 2003 before
- the Andhra Pradesh High Court. The case has subsequently transferred to
Calcutta High Court. The writ petition has been admitted and is currently
pending resolution. The quantification of the deferred tax liability, and
consequential impact on the accompanying Statement, which may arise due to the
above, has been held in abeyance pending disposal of the attention to this
matter in their reports.
6.
In terms of letter of offer dated 22nd February
converted 70,18,242 detachable warrants on 2nd December 2010 in to equivalent
number of equity shares of Rs. 10 each at a premium of Rs 40 per share aggregating to Rs 350.912 millions . Consequently,
the equity share capital had gone up form Rs 327.518 millions to Rs . 397.700 millions.
7.
The Board of Directors has recommended a divided of Rs.
1 per share of Rs.10 each for the year ended 31st March 2011.
8.
During the quarter ended on 31st March 2011, the any received 8 investor complaints
which have been resolved There were six complaints pending at the beginning of
the quarter and no complaints was pending at the end of the quarter.
9.
The above Financial Results have been reviewed by
the Audit Committee and approved by the Board of at Directors at its meeting
held on 4th May 2011.
10.
The figures for the previous periods/ year have
been re-grouped re-classified, wherever
necessary, to confirm to the current period presentation.
WEBSIDE DETAILS
PROFILE
The Company was incorporated on 29th June 1964 as "The
Andhra Pradesh Paper Mills Limited." at Rajahmundry. The Certificate of
Commencement of business was obtained on 10th July 1964.
The Andhra Pradesh Paper Mills Limited. was formed with infusion of
funds and high calibre management of the well-known industrial house of Bangurs
of Calcutta, who have interests in textile manufacturing, tea plantation, wind
energy generation and trading and investment business other than paper. In
2001, Coastal Papers Limited was taken over by the company. The production
capacity of both the units put together is 1,74,000 TPA. There are eight paper
machines installed at the two locations which produce papers of different M.F
& M.G varieties in the range of 21 to 250 GSM as well as newsprint. With
the commissioning of largest continuous digester in the country, the total
bleached pulp production at APPM (Unit Rajahmundry) is 1,81,500 TPA. The paper
production capacity will increase to 2,41,000 TPA after commissioning of 67000
TPA paper machine which is undererection.
The company provides direct employment to over 4000 families. Moreover,
the company provides livelihood to over 10,000 families through indirect job
opportunities.
BOARD OF DIRECTORS
Shri. L.N.Bangur Executive Chairman
Shri L.N. Bangur hails from the
Bangur family known in the trade and industry for over a century. Shri L.N.
Bangur is a commerce graduate having an experience in the field of trade and
commerce for more than two decades.
He was appointed as Director of the Company on 2nd May, 1985 and then
became Chairman of the Company in 1992. He has taken over as Executive Chairman
on 27th May, 2010. Shri Bangur is the Chairman and Managing Director of
Maharaja Shree Umaid Mills Ltd., Chairman of The Peria Karamalai Tea &
Produce Co. Ltd and Director of Digvijay Investments Limited and several other
finance and investment companies. He is also a Managing Committee Member of
Mugneeram Ramcoowar Bangur Charitable & Religious Co., and Committee member
of the Federation of Indian Chambers of Commerce and Industry
Shri. N. Srinivasan
Shri N. Srinivasan, a leading Chartered Accountant with more than four decades of experience, has been Director of the Company since 4th September 1998. He is also a Director of United Breweries (Holdings) Limited, Mcdowell Holdings Limited, Tractors and Farm Equipment Limited, UB Engineering Limited, India Cements Capital Limited, Ador Fontech Limited, Amco Batteries Limited, The United Nilgiri Tea Estates Company Limited. and GATI Limited, among others. He is a managing committee member of the Associated Chambers of Commerce and Industry of India, Madras Chamber of Commerce and Industry, Indo Australian Chamber of Commerce and the Employers' Federation of Southern India.
Shri R.C.Sarin
Shri R.C. Sarin, has been Director of the Company since 24th January, 2006. He had schooling and college education in India and Business Management in U.K. He was associated with (a) ITC for 26 years in different capacities including Director and Deputy Chairman on their Board and also the Chairman of Bhadrachalam Paper Boards Limited. (b) Voltas for 4 years as President and Chief Executive (c). Carrier Aircon Limited for 17 years. He was also founder Chairman of Carrier Refrigeration Private Limited. He is also Director of Resource Management (India) Private Limited. and International Ventures and Travel India Pvt. Limited.
Shri P.J.V. Sar
Shri P.J.V. Sarma, has been Director of the Company since 30th October, 2007. He had served ICICI group for over 25 years in various managerial capacities. His areas of
specialization include Corporate Finance, Project Finance, Corporate Banking,
Marketing and Relationship Management, Leasing and other financial products,
M&A, Restructuring and General Insurance, Structured Products, design,
Credit enhancement and financial products, Strategy formulation, Corporate
Planning and Risk Management. He was the General Manager of Corporate Banking and
presently he is heading the General Insurance Business of ICICI group based out
of Hyderabad. During the entire period of his continuing service with ICICI
group besides providing banking and other financial and advisory services, he
got associated with major industrial groups such as L&T, Jindal, Videocon
etc, He has sound knowledge of finance and marketing and has evolved major
strategies for some of the larger corporates at the Board level. He is the
Chairman of Audit Committee and Investors’ Grievance Committee of the Company.
He is also a Director of Regency Ceramics Limited., and Nav Bharat Projects
Limited.
Shri P.K.Paul
Shri P.K.Paul, has been Director of the Company since 12th May, 2008 He is a graduate in Chemical Engineering and a Post Graduate Diploma in Pulp & Paper Tech has more than 40 years of experience in Pulp and Paper Industry in different capacities He was associated with Phoenix Pulp and Paper Public Company Limited. Thailand (Managing Director), Panjapole Pulp and Paper Company Limited., Thailand (Managing Director), European Overseas Development Corporation (Asia) (Executive Director), Plantation Club, a Five Star Hotel in Seychelles (Director) and Evergreen Pulp and Paper Company Limited, Thailand (Chairman). He is a Director of Ospak International Company (Private) Limited. Ospak Cyfox Paper Company (Private) Limited, Cyfox Paper India (P) Limited and Cyfox Paper PTE. Limited.
Shri Rajiv Kapasi
Shri Rajiv Kapasi, has been Director of the Company since 12th May, 2008. He is a Chartered Accountant, MBA from Andersen Business School, Chicago and Certified Internal Auditor from IIA, Florida, USA. He has over a decade of expertise across Chemicals, Pharmaceuticals, Retail, Spirits, Infrastructure, Manufacturing, Retail, Healthcare, FMCG, Food and Beverage and Media and Entertainment. Financial discipline and solid business planning together with upholding the strategic vision are the foundations of success he relentlessly pursues. He served Ernst and Young in the Risk and Business Solutions Department from May, 2002 to August, 2003 and thereafter as Vice President in Jubilant Organosys Limited. After leaving Jubilant Organosys Limited in February, 2010, he had promoted BMACLLP in March, 2010 and is presently functioning as its Managing Director.
Shri P. R. Ramakrishnan Director
Shri P.R.Ramakrishnanwas appointed as a
Director on 22nd October, 2010. He is a Commerce and Law graduate. He has been
practising as an advocate in Civil Law for the past 35 years in various
Judicial Forums including Madras High Court, District Courts and Debt Recovery
Tribunal. His clientele include Indian Bank, Tamilnadu Mercantile Bank,
National Textile Corporation, Life Insurance Corporation of India and other
reputed companies and institutions. He is also a Director of The Peria
Karamalai Tea and Produce Company Limited.,
Mr. Paul Brown President, International Paper Asia
Paul Brown is President of International Paper Asia. In this position,
Mr. Brown has leadership responsibility for the company’s businesses across
Asia including coated board; consumer packaging; industrial packaging; food
service packaging; uncoated free sheet (office and printing papers) and paper,
board and pulp distribution. IP Asia is headquartered in Shanghai, China and
employs some 4,500 people with operations and offices in China, Korea, Japan,
Singapore, India and Thailand.
Mr. Brown joined International Paper in 1984. During his career with the
company, he has held various technical, manufacturing, sales and general
management positions in paper and packaging in the USA and Europe before being
appointed to his current position in November 2009. Prior to this position in
Asia,
Mr. Brown was Vice President and General Manager responsible for International
Paper’s industrial packaging business in Europe, Middle East and Africa. Mr.
Brown holds a B.S. in industrial engineering from the University of Florida,
Gainesville, Florida, USA and an MBA from Drexel University, Philadelphia,
Pennsylvania, USA.
He was appointed as Director of the Company on 18th May, 2011 as nominee of IP
Holding Asia Singapore PTE Limited.
Shri M. K. Tara Managing Director
and CEO
Shri M.K. Tara, was appointed as Director on 30th October,
2007 and as Managing Director with effect from 7th November, 2007. He was redesignated
as Managing Director and CEO from 20th May, 2010. He is a graduate in Chemical
Engineering and has more than 35 years of experience at various levels and in
different facets of project management and administration of large pulp and
paper mills both in India and abroad. He was associated with Abhishek
Industries Limited, Tamil Nadu Newsprint and Paper Limited, Panjapol Pulp and
paper Company Limited, Thailand and Phoenix Pulp and Paper Public Company
Limited, Thailand, Sabah Forest Industries, Malaysia, Hindustan paper
Corporation Limited, Hindustan Newsprint Mill etc. His expertise includes (a)
turning around the troubled mills (b) Erection and start up of new mills and
(c) trouble shooting, stabilization and optimization of mills. He also possesses
practical experience of all latest technology.
Ms. Sheetal Bangur Director
(Commercial)
Ms. Sheetal Bangur, a post graduate
in Commerce and Business Administration, has been a Director of the Company
since 28th January, 2002. She had taken over as Director (Commercial) with
effect from 1st April, 2005. She is also a Director of Samay Books Limited, The
Swadeshi Commercial Company Limited, Apurva Export Private Limited, and
Management Committee Member of Mugneeram Ramcoowar Bangur Charitable and Religious
Company.
Shri. Shreeyash Bangur Director (Corporate)
Shri. Shreeyash Bangur, was appointed as
Director on 18th February, 2007 and as Director (Corporate) from 19th February,
2007. He did his MSc in Engineering Business Management from the Warwick Manufacturing
Group, UK and worked for two years in Ernst and Young before joining APPM. His
intensive education and work experience has seen him build skill sets that
include an intensive exposure and understanding of business strategy planning
and implementation. Over the years, he has also developed a strong
understanding of business processes and excellent communication and people
management skills.
As a Director (Corporate), his prime areas of focus are Marketing, Human
Resource Development, Corporate Planning and Business Development related
functions. In this role, he has been working closely with the top management
team in establishing best practices, formulating growth strategies and managing
organizational structure with an aim to deliver an enduring company wide
advantage. He is also a Director of Digvijay Investments Limited.
Shri. P. K. Suri Director (Operations)
Shri. P. K. Suri, started his career as an Executive Trainee
in J. K. Paper Mills Limited. in November, 1978. His knowledge, attitude and
contributions made him to serve in higher and higher capacities and became DGM
(Tech. Services) by 1990. Skills acquired made him GM (Mfg.) in Star Paper
Mills in 1996.
He has been associated with APPM since May, 1997 and had grown from General
Manager to President (Operations) level. He is responsible for all plant
operations of both Unit: APPM and Unit: CP. In his experience of more than
three decades, he acquired significant managerial skills to manage the plant
operations. Shri Suri played a vital role in the successful implementation of
Mill Development Plan. He was elevated as Director (Operations) from 12th May
2008.
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.44.72 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.72 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
|
70 |
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.