MIRA
INFORM REPORT
|
Report Date : |
17.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
RAINBOW PAPERS LIMITED |
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Registered Office : |
801, Avdesh House, 8th Floor, opposite Guru Gobind Gurudwara,
Gandhinagar-Sarkhej Highway, Thaltej, Ahmedabad – 380 054, Gujarat |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
04.07.1986 |
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Com. Reg. No.: |
04-008772 |
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Capital
Investment / Paid-up Capital : |
Rs.174.435 Millions |
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CIN No.: [Company
Identification No.] |
L21010GJ1986PLC008772 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMR00278F AHMR03475D |
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PAN No.: [Permanent
Account No.] |
AAACR5415K |
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Legal Form : |
A public limited liability company.
The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer of three different grades of specialty paper - Kraft
Paper, Crepe and Coated Paper. |
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No. of Employees
: |
800 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 8870000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. General Financial
Position is good. Trade relations are reported as fair. Business is active.
Payments are reported to be usually correct 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.
INFORMATION DECLINED BY
Management Non Cooperative
LOCATIONS
|
Registered Office : |
801, Avdesh House, 8th Floor, opposite Guru Gobind Gurudwara,
Gandhinagar-Sarkhej Highway, Thaltej, Ahmedabad – 380 054, Gujarat,
India |
|
Tel. No.: |
91-79-26855714/ 26855716 / 32952073 |
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Fax No.: |
91-79-26855712 |
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E-Mail : |
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Website : |
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Factory : |
1453, Village Rajpur, Tal: Kadi, Kalol – |
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Tel. No.: |
91-2764-278492 |
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Fax No.: |
91-2764-278516 |
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E-Mail : |
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Coating Division : |
1423, Village Rajpur, Tal: Kadi, Kalol – |
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Telefax No.: |
91-2764-278413 |
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E-Mail : |
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Branch Office : |
Mumbai: Delhi: Tel: 91-11-23245756 Fax: 91-11-23287553. |
DIRECTORS
|
Name : |
Mr. Radheshyam N. Goenka |
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Designation : |
Executive Director |
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Name : |
Mr. Ajay R. Goenka |
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Designation : |
Chairman and Managing Director |
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Name : |
Mrs. Sangeeta A. Goenka |
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Designation : |
Executive Director |
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Name : |
Shri Ashwin Goswami |
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Designation : |
Whole Time Director (Ceased W.E.F. 30.06.2009) |
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Name : |
Shri Gokuldas P. Kothari |
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Designation : |
Whole Time Director (Appointed W.E.F. 30th June, 2009, Ceased W.E.F.
26.02.2010) |
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Name : |
Mr. Mahendra Jindal |
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Designation : |
Director (Ceased W.E.F. 26.04.2010) |
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Name : |
Mr. Champaklal M. Shah |
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Designation : |
Director (Ceased W.E.F. 28.05.10) |
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Name : |
Mr. Kalpesh Oswal |
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Designation : |
Director (Ceased W.E.F. 26.02.2010) |
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Name : |
Mr. Shankarlal Heda |
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Designation : |
Director (Ceased W.E.F. 30.01.2010) |
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Name : |
Shri Rajendra V. Patawari |
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Designation : |
Additional Director (Appointed W.E.F. 30.01.2010) |
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Name : |
Shri Bhasker G. Bhatt |
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Designation : |
Additional Director (Appointed W.E.F. 30.01.2010) |
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Name : |
Shri Shashikant N. Thakar |
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Designation : |
Additional Director (Appointed W.E.F. 30.01.2010) |
KEY EXECUTIVES
|
Name : |
Mrs. Runel Rathi |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
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|
|
1. Indian |
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Individuals / Hindu Undivided Family |
2106930 |
2.42 |
|
Bodies Corporate |
23849520 |
27.34 |
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Sub Total (A)
(1) |
25956450 |
29.76 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
1500 |
0.00 |
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Foreign Institutional Investors |
2100000 |
2.41 |
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Sub Total (B)
(1) |
2101500 |
2.41 |
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2. Non
Institutions |
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Bodies Corporate |
19379619 |
22.22 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
2948676 |
3.38 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
1393787 |
1.60 |
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|
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Non Residents |
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NRI |
9993 |
0.01 |
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Sub Total (B)
(2) |
23732075 |
27.21 |
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(B) = (B) (1) +
(B) (2) |
25833575 |
29.62 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
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Promoter ands Promoter Group |
-- |
-- |
|
Public |
35427275 |
40.62 |
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|
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Total (A) + (B) +(C) |
87217300 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of three different grades of specialty paper - Kraft
Paper, Crepe and Coated Paper. |
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Products : |
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PRODUCTION STATUS As on 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity* |
Actual
Production |
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Paper |
MT |
-- |
183000 |
109054.91 |
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*This being technical matter taken as
certify by management, and licensed capacity is not given as licensing is not
applicable |
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GENERAL INFORMATION
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No. of Employees : |
800 [Approximately] |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Statutory
Auditors : |
Pravin M. Shah and Company Chartered Accountants |
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Address : |
Ahmedabad |
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Cost Auditors
: |
Mr. V. H. Shah Chartered Accountants |
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Address : |
Ahmedabad |
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Internal Auditors :
|
Dhanesh B. Kothari and Company Chartered Accountants |
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Address : |
Ahmedabad |
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Associates/
Subsidiaries : |
Orient
News Print Limited Drupa
Suppliers Private Limited Rainbow
Industrial Park Private Limited (Formerly known as Karnavati Papers Private
Limited) |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17,443,460 |
Equity Shares |
Rs.10/- each |
Rs.174.435
millions |
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|
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|
Out of the above
10235455 equity shares of Rs.10/- each fully paid up represent global
depository receipts [GDRs]
Outstanding GDRs
for conversion into equity shares are 9785455
After 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35,000,000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17,443,460 |
Equity Shares |
Rs.10/- each |
Rs.174.435
millions |
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|
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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 |
174.435 |
72.080 |
72.080 |
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2] Convertible Warrents |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2043.709 |
757.758 |
532.684 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2218.144 |
829.838 |
604.764 |
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LOAN FUNDS |
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|
1] Secured Loans |
2830.516 |
2680.720 |
1411.657 |
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2] Unsecured Loans |
527.212 |
147.650 |
132.774 |
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TOTAL BORROWING |
3357.728 |
2828.370 |
1544.431 |
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DEFERRED TAX LIABILITIES |
142.102 |
100.786 |
169.473 |
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TOTAL |
5717.974 |
3758.994 |
2318.668 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3140.113 |
1307.100 |
1343.009 |
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Capital work-in-progress |
1120.336 |
2079.298 |
835.591 |
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INVESTMENT |
0.214 |
22.704 |
0.304 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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|
Inventories |
336.641
|
290.971
|
137.959
|
|
|
Sundry Debtors |
394.382
|
310.344
|
218.040
|
|
|
Cash & Bank Balances |
1215.595
|
128.315
|
63.746
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
332.477
|
152.406
|
252.286
|
|
Total
Current Assets |
2279.095
|
882.036
|
672.031
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
146.707
|
87.120
|
0.738 |
|
|
Sundry Creditors |
515.077
|
368.560 |
491.243 |
|
|
Provisions |
160.000
|
81.920
|
40.286 |
|
Total
Current Liabilities |
821.784
|
537.600
|
532.267
|
|
|
Net Current Assets |
1457.311
|
344.436
|
139.764
|
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
5.456 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5717.974 |
3758.994 |
2318.668 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2740.725 |
2319.446 |
1702.169 |
|
|
|
Other Income |
52.129 |
31.115 |
5.992 |
|
|
|
TOTAL (A) |
2792.854 |
2350.561 |
1708.161 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase |
142.828 |
0.000 |
23.938 |
|
|
|
Raw Material Consumed |
1179.832 |
1173.403 |
811.946 |
|
|
|
Increase / Decrease In Stock |
[15.590] |
[9.428] |
[2.263] |
|
|
|
Manufacturing, Administrative and Selling Expenses |
805.142 |
662.414 |
518.117 |
|
|
|
TOTAL
(B) |
2112.212 |
1826.389 |
1351.738 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
680.642 |
524.172 |
356.423 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
128.964 |
104.271 |
58.964 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
551.678 |
419.901 |
297.460 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
240.298 |
249.664 |
118.491 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
311.380 |
170.237 |
178.968 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
75.514 |
[65.833] |
50.602 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
235.866 |
236.070 |
128.366 |
|
|
|
|
|
|
|
|
|
Less/ Add |
Excess / Short
Provision |
1.357 |
[0.528] |
[1.239] |
|
|
|
|
|
|
|
|
|
Less/ Add |
Prior Period
Adjustments |
[0.930] |
[0.699] |
[0.848] |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
458.328 |
256.978 |
154.192 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
20.000 |
20.000 |
10.000 |
|
|
|
Proposed Dividend |
34.887 |
11.533 |
11.533 |
|
|
|
Corporate Dividend Tax |
5.794 |
1.960 |
1.960 |
|
|
BALANCE CARRIED
TO THE B/S |
633.940 |
458.328 |
256.978 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
464.342 |
488.866 |
418.258 |
|
|
|
Interest on Deposits |
2.134 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
466.476 |
488.866 |
418.258 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
714.339 |
419.833 |
237.192 |
|
|
|
Stores & Spares |
2.633 |
3.790 |
1.771 |
|
|
|
Chemicals |
22.416 |
7.140 |
19.802 |
|
|
TOTAL IMPORTS |
739.388 |
430.763 |
258.765 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
26.33 |
32.58 |
20.16 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Sales Turnover |
989.790 |
869.130 |
1064.790 |
1026.230 |
|
Total Expenditure |
773.050 |
672.080 |
842.040 |
771.490 |
|
PBIDT (Excl
OI) |
216.740 |
197.050 |
222.750 |
254.740 |
|
Other Income |
[6.010] |
37.390 |
8.620 |
[39.710] |
|
Operating
Profit |
210.730 |
234.440 |
231.370 |
215.030 |
|
Interest |
46.16 |
47.650 |
57.490 |
7.230 |
|
Exceptional
Items |
0.000 |
[0.510] |
0.380 |
[0.440] |
|
PBDT |
164.570 |
186.280 |
174.260 |
207.360 |
|
Depreciation |
68.510 |
70.250 |
69.980 |
69.310 |
|
Profit
Before Tax |
96.070 |
116.030 |
104.280 |
138.040 |
|
Tax |
0.000 |
0.000 |
0.000 |
83.410 |
|
Reported PAT |
96.070 |
116.030 |
104.280 |
54.640 |
|
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 |
96.070 |
116.030 |
104.280 |
54.640 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.44
|
10.04 |
7.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.36
|
7.34 |
10.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.74
|
7.78 |
8.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.20 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.88
|
4.06 |
3.43 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.77
|
1.64 |
1.26 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY
CREDITORS DETAILS (Rs. in millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Due to Micro
Small and Medium Enterprises |
12.873 |
1.327 |
0.000 |
|
Due to SSI Unit |
0.000 |
0.000 |
5.263 |
|
For Capital
Goods |
51.900 |
44.817 |
275.295 |
|
For Goods and
Expenses |
450.304 |
322.416 |
210.685 |
|
Total |
515.077
|
368.560 |
491.243 |
Contingent
Liabilities not provided for:
(Rs. in millions)
|
|
31.03.2010 |
31.03.2009 |
|
Bank Guarantee |
19.446 |
9.224 |
|
Letter
of Credit
|
-- |
57.139 |
|
Income
Tax Demand
|
-- |
0.056 |
|
Additional
Premium on Land ** |
1.878 |
1.878 |
|
Liability in respect of additional Stamp
Duty on purchase of Land |
Not Ascertainable |
Not Ascertainable |
|
Export Obligation in
respect of Custom Duty on machinery imported under EPCG Scheme. |
293.022 |
609.215 |
** The Tribunal has cancelled the
order regarding additional premium on Land and the matter is again referred to The
Collectors, Mehsana for re-valuation of premium amount.
HISTORY:
Subject was incorporated in Jul.'86 and promoted by R S
Goenka and Ajay Goenka, is an Ahmedabad-based manufacturer of three different
grades of speciality paper - kraft paper, crepe and coated paper. To increase
the capacity utilisation, the company is installing a new boiler and a steam
turbine of 1500 kva. It is having four manufacturing facilities in
Crepe paper is mainly used in durable and flexible bag packing, and kraft and
coated paper (including art and chromo) also find application in the packaging
and printing industry.
Rainbow exports coated paper to
The Company completed the Technology Upgradation-cum-Modernisation at the Paper
Plant in the first quarter of 1999 by installing "Quality Plus
System" from M/s Honeywell Measurex Asia Inc,
REVIEW OF
OPERATIONS:
The company has entered into one of the best
phase of the growth cycle and aims to be one of the dominant players in the Industry
along with fulfilling its obligations to the shareholders, customers, employees
and society as a whole. The financial performance during the year reflects the consistent progress made by the
company in spite of the daunting challenges posed by the Economy and the
Market. The Company has successfully completed the first phase of the expansion
programme by installing one of the two Paper plants imported from
The directors are pleased to inform that the
company has achieved a total production of 1,09,055 M.T. as compared to 85,995 M.T.
in previous year. The Company has established a new benchmark in its
performance recording historically the highest annual sales during the year .
The total turnover made is Rs. 29,28.100 millions as compared to Rs. 24,41.100
millions in the previous year. The net profit earned by the Company during the
current year is Rs.236.300 millions as compared to Rs. 234.800 millions in the
previous year. A balance of Rs. 633.900 millions has been carried forward to
the Balance Sheet for the next year. The Company has earned an EBIDTA of Rs.
680.600 millions. The cash profit has also increased during the year to Rs.
517.900 millions. All this has been possible through cost optimization adopted
by the company which resulted in better realization of margins, improved
efficiency and higher productions. This combination favoured well as demand for
the products in the market have also been improved positively. With such strong
achievements and bold results, the Board of directors are pleased to recommend
a dividend of Rs. 21- for the
shareholders on the equity shares of face value Rs. 10/-.
The promoters always focus on strengthening
the company further by adding capacities and better integration. All this have
been possible, only on account of continuous support of the company's employees
who have made remarkable contribution towards the progress of the company.
EXPORT AND
IMPORTS :
The company exported 22,032.59 M.T. of paper
during the year as compared to 22,904.51
M.T. in the previous year. The exports accounted to 18.41 % of total sales. The
exports proceeds amounted to Rs. 539.182 millions as compared to Rs.556.114
millions during the previous year. The Company's products are now being
exported to various countries such as Africa, Middle East, South East Asia, U.S.A.,
The Company imported 74,324.74 M.T. of waste
paper and 522.40 M.T. of chemical during the year as compared to 31,303.72 M.T.
and 188.80 M.T. respectively in the previous year. The imports amounted to Rs
714.339 millions of waste paper and Rs. 22.416 millions of chemicals as
compared to Rs. 419.833 millions and Rs. 7.140 millions respectively in the
previous year. The Company has been awarded as 1st largest importer
at ICD, Ahmedabad by "Container Corporation of India Ltd" for year
2009-10.
STATUS OF
EXPANSION
PROGRAMME:
During the year, the Company has taken up the
expansion programme of installation of paper plant imported from
On account of expansion programmes taken up
by the Company from time to time, there has been substantial increase in the
production capacity of the Company, which has increased from 6000 TPA to 305000
TPA. Similarly, the power generated from the power plant has also increased
from 5MW to 45MW. Below graph describes the enhancement of production capacity
from time to time.
FUTURE
OUTLOOK:
The Indian economy has rebounded strongly
with renewed demand for paper and paper products. The emphasis on primary
education, the rise in demand for newsprint and paper used for packaging will
provide a strong momentum for the demand of paper and paper products. Sensing
these opportunities, the company has future plans of strategic investments and
acquisitions for the purpose of installation and setting up of Packaging Board
Machine and Folding Duplex Board machine. The project is under active
consideration at the management level and also the technical team is analyzing
the feasibility of the same. To carry out this expansion programme, the Company
proposes to raise the funds to the tune of Rs. 7500.000 millions by way of
suitable instruments i.e. ADR/GDR/ FCCB issue or through equity shares etc. The
Directors would announce the project with other relevant details as soon as the
final decisions are taken.
The directors are also exploring and working
on the new business lines which includes manufacturing of bricks and plain and
corrugated plastic sheets. The fly ash which is one of the by product generated
out of the power plant can be utilized for manufacturing of bricks and other
related items. The plastic contents segregated at the time of processing, from
the waste paper can be utilized for manufacturing of plain and corrugated
plastic sheets and other related items. These new projects would not only
increase the profitability of the company but also would contribute in keeping
the environment clean as the discharge of the fly ash and unutilized plastic
contents problem gets solved automatically.
CHANGE IN
SHARE CAPITAL:
On account of the GDR issue, the issued and
paid up capital of the Company has increased from Rs. 72.080,millions
consisting of 72,08,005 Equity Shares of Rs. 10/- to Rs. 174.435 millions
(consisting of 1,74,43,460 Equity shares including 1,02,35,455 underlying
Equity Shares representing GDRs which were allotted on 28th January,
2010.
The face value of each Equity Share of Rs.
10/-is proposed to be sub-divided into the face value of Rs. 21- each by corresponding increase in the number
of shares held by each shareholder on the record date.
AWARDS AND
ACCOLADES :
The Company is a proud recipient of the
following awards during the year:
a) The Company has been declared and awarded
the Highest Importer at ICD, Ahmedabad by M/s. Container Corporation of India
Ltd for the year 200910. The Company has received this award for the sixth
consecutive year wherein for last four years it has received the award as the
2nd largest Importer.
b) The Company has also been awarded the
Special Award in respect of Paper and Paper Board by CAPEXIL, by the Government
of India, Ministry of Commerce, Director General of Foreign Trade, recognition
of its export performance.
c) The Company has also received Certificate
of Recognition for superior financial performance during 2008-09 and has been
ranked as 246th in Industry 2.0 top 500 SMB's, which was ranked as
461sl in financial year 2007-08.
d) The Company continues to enjoy the status
of "Star Export House" by Director General of Foreign Trade,
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Indian Paper
Industry - A Brief Overview
Indian Paper Industry is more than 140 years
old with the first mill having been commissioned in 1867. Today almost every
person uses paper in one form or the other. Paper manufacturers use a variety
of raw materials like hardwoods, bamboo, recycled fibre, bagasse, wheat straw
and rice straw.
Estimated annual turnover of the industry is
Rs. 29,6000 millions approximately and its contribution to the exchequer is
around Rs. 2,9000 millions. The industry provides employment to more than
1,20,000 people directly and to 3,40,000 indirectly.
Demand for paper and paperboard closely
follow the economic growth of a country and have a positive co-relation to the
prevailing economic trends. In
- the rising
level of national income;
- the growing
per capita 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
focus on education;
- introduction
of computers in rural areas; and,
- higher
level of industrial activity and corporate spending.
Globally
The product segments in the paper industry
can be broadly classified as below: Newsprint, Printing and Writing Paper, Industrial
Paper and other paper.
Of the total consumption in
Overview About
the Company:
Rainbow was incorporated in 1986, since then
it has never looked back. It has been continuously marching ahead in order to
establish its presence in the Indian Paper Industry.
It started with a small production unit which
has now turned out to a large sized manufacturing unit, manufacturing as many
as 186 varieties of paper. The company works on the motto - "One Stop
solution to all kinds of paper". To name a few products - Duplex Board and
Paper, Fluorescent Paper, Coated Paper, Art Paper, Crepe Paper, Printing and
Writing Paper, Newsprint, Red Maplitho, Indio Newsprint, Green Creamwove,
Bristol Paper etc. The products of the company have established their presence
not only in the Indian markets but also in the foreign markets.
With growth of the organization being the aim
of the promoters, they have never overlooked the quality of its products as
well as taken care for the protection of the environment. For this, effective
steps have been taken by the promoters and management from time to time.
Business
Strategy:
Rainbow Papers Limited believes in efficient
utilization of its resources i.e. Manpower, Money, Machines, to the maximum
possible extent, through proper planning and execution. The expansion projects
taken up by the Company are implemented after thorough examination, proper
research and analysis of the market conditions. The Company makes constant
efforts to minimize the costs and avoid wastages at every stage of production.
The production is planned in such a way that it suits to the requirement of the
customers, as customer satisfaction has always been the prime concern of the
Company.
Environment
friendly manufacturing process:
Rainbow is mostly using waste paper and such
material is recycled to manufacture the finished product rather than using the
wood pulp, which is in scarcity. On account of increasing thrust of education
by implementing the "Sarva Siksha Abhiyan" by the Government of India
, the per capita consumption of paper has increased and hence the waste paper
is available more readily in comparison to wood pulp. Another major component
used in manufacturing of paper is water. Rainbow has taken appropriate measures
to curtail use of fresh water by using recycled water to the maximum possible
extent. It has also installed the ETP system which helps in maintaining eco
friendly environment. Further, in concurrence with the motto of the promoters,
"To make best out of waste" Rainbow is also planning to use fly ash
i.e by-product generated from the power plant to manufacture bricks and other
related products and also to use the plastic content from the waste paper for
manufacturing of plastic sheets. This will benefit in two ways - Save
environment from discharge of fly ash and plastic wastes by making productive
utilization of the same.
The Road Ahead
(A) Installation of paper board project:
The forthcoming expansion programme of the
Company includes strategic investments and acquisitions for the purpose of
installation and setting up of Packaging Board Machine and Folding Duplex Board
machine. The project is under active consideration at the Top management level
and also the technical team is analyzing the feasibility of the same. The
Directors would announce the project with other relevant details as soon as the
final decisions are taken. To carry out this expansion project, the Company proposes
to raise the funds of approximately Rs. 7500 millions by way of suitable
instruments i.e. ADR/ GDR/ FCCB issue or through equity shares etc.
(B) Creating wealth out of waste:
The directors are also exploring and working
on the new business lines which includes manufacturing of bricks and plain and
corrugated plastic sheets. The fly ash, which is one of the by- product
generated out of the power plant can be utilized for manufacturing of bricks
and other related items. The plastic contents as segregated at the time of
processing, from the waste paper which is used as raw material in manufacturing
of paper, can be utilized for manufacturing of plain and corrugated plastic
sheets and other related items. These new projects would increase the turnover
of the company. It would also be helpful in keeping the environment clean and
the problem of discharge of the fly ash and unutilized plastic contents gets
solved automatically.
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED 31.03.2011
|
Particulars |
Year Ended 31.03.2011 Audited |
|
Income |
|
|
a) Net Sales / Income from Operations |
3855.266 |
|
b) Other Operating Income |
94.674 |
|
Total Operating Income |
3949.940 |
|
Expenditure |
|
|
(a) (Increase)/decrease in Stock in Trade |
[14.053] |
|
(b) Consumption of Raw Materials |
1881.039 |
|
(c) Purchase of traded goods |
23.642 |
|
(d) Employees Cost |
110.097 |
|
(e) Depreciation |
278.046 |
|
(f) Other Expenditure |
1057.934 |
|
Total Expenditure |
3336.705 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
613.235 |
|
Other Income |
0.292 |
|
Profit/(Loss) before Interest and Exceptional items |
613.527 |
|
Interest |
158.529 |
|
Exceptional Items |
[0.574] |
|
Profit / (Loss) From
Ordinary activities before Tax |
454.424 |
|
Tax Expenses |
83.409 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
371.015 |
|
Extraordinary Items |
0.000 |
|
Net Profit/(Loss) for the period |
371.015 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
174.435 |
|
Reserves (Excluding Revaluation Reserves) |
2374.200 |
|
Public Share
Holding |
|
|
-Basic And Diluted Earning Per Share |
4.25 |
|
Average of Public Share Holding |
|
|
- Number of Shares |
61260850 |
|
- Percentage of shareholding |
70.24 |
|
Promoters and Promoter group share holding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
|
b) Non-encumbered |
|
|
- Number of Shares |
25956450 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
29.76 |
|
Statement
of Assets & Liabilities |
|
|
Particulars |
31.03.2011 |
|
|
Audited |
|
Share Holders Funds |
|
|
(a) Share Capital |
174.435 |
|
(b) Share Application
Money |
301.500 |
|
(c) Reserves and Surplus |
2374.178 |
|
Loan Funds |
4173.805 |
|
Deferred Tax Liability |
208.111 |
|
Total |
7232.029 |
|
Fixed Assets (Net) |
2937.650 |
|
Capital Work-in-Progress |
2907.928 |
|
Investments |
0.000 |
|
Current Assets Loans
& Advances |
|
|
(a) Inventories |
495.992 |
|
(b) Sundry Debtors |
487.935 |
|
(c) Cash and Bank
Balances |
765.420 |
|
(d) Loans and Advances |
514.147 |
|
Less: Current Liabilities
& Provisions |
|
|
(a) Current Liabilities |
697.871 |
|
(b) Provisions |
179.172 |
|
Net Current Assets |
1386.451 |
|
Miscellaneous Expenditure
not written Off |
0.000 |
|
Total |
7232.029 |
NOTES:
1. The above audited financial
results were reviewed by the Audit Committee and approved by the Board of
Directors at its meeting held on May 7, 2011.
2. The Board of Directors
has recommended a Dividend of Rs 0.40 per Equity Share having face value of Rs
2 each for the financial year ended 31st March, 2011 (P.Y.
Rs 2.00 per Equity Share having face value of Rs 10 each).
3. The Company has taken
approval of the Members at an Extra Ordinary General Meeting held on 20th
April, 2011 for issue and allotment of 40,00,000 Equity Shares of Rs 2 each at
a premium of Rs 58 per share and 60,00,000 convertible warrants convertible
into 60,00,000 Equity shares of Rs 2 each at Rs 60 per share on preferential
basis. The allotment of the said Equity Shares and the Warrants is pending as
approval from the Regulatory Authorities is awaited.
4. The expansion programme
is progressing well and shall be completed by 2nd Quarter of Financial year
2011-2012.
5. The Company is engaged
in manufacturing of Paper and does not operate in any other reportable segment.
6. Status of Investors
Complaints: Opening -1 .Received during the Quarter - 01, Resolved - 02,
Closing- 00
7. Previous figures have
been regrouped/rearranged wherever necessary.
FIXED ASSETS;
- Land
- Building
- Plant and
Machinery
- Office Equipment
- Computers
- Vehicles
- Furniture and
Fixtures
PRESS RELEASE
May 9, 2011
Rainbow Papers: FY 2011
Gross Sales crosses Rs. 4000 millions;
PAT is Rs. 370 millions an increase of 57%
Financials at a Glance:
|
Rs. in million |
FY 2011 |
FY 2010 |
Growth |
|
Gross Sales |
4017.000 |
2928.000 |
37% |
|
EBIDTA |
891.000 |
643.000 |
39% |
|
Profit After Tax |
371.000 |
236.000 |
57% |
Result Highlights:
Results for the year ended March 31, 2011
• Gross Sales are Rs. 4020 millions for the year ended March
31, 2011; YoY growth over FY 2010 of 37%.
• EBITDA is Rs. 890 millions for current year; EBITDA margin
is 23%.
• PAT is Rs. 370 millions for the year ended March 31, 2011;
YoY growth of 57%
• Volumes up from 108,905 MT to 137,307 MT.
• Average Realisation increases from Rs. 25.4 per Kg to Rs.
28.1 per Kg.
Ahmedabad, (May 9, 2011): Rainbow reported a strong current year performance
with improved price realization and product mix. Our phase-1 expansion of
80,000 MTPA is yielding good result which is reflected in our performance
during the current year.
Paper Industry in
Paper and paper industry
are growing continuously at a very steady rate. The growth in the paper
industry has mirrored the growth in GDP over the last few years.
Paper is a fully recyclable
commodity and with increased awareness will slowly replace plastic. Many states
& cities in
Indian Paper Manufacturers
Association is expecting demand for paper to grow by 57 percent to 14 million
tons by 2015 from current demand of 8.8 million tonne.
As per RISI Resource
Information Systems Inc., Recovered
paper will gain more share of the
world's total fiber furnish over the next 15 years. Recovered paper consumption
is forecasted to be about 400 million tons by 2025, compared with 206 million
tons in 2009 and estimated 220 million tons in 2010.
Corporate Actions:
During the FY 2011 the
shareholding of the Promoters/Promoter Group has increased from 24.76% to
29.76% through creeping acquisition route.
On 20th April 2011, the
members of the company have approved for,
The issuance of 40,00,000
Equity Shares to Promoters / Promoter Group, on preferential basis at a price
of Rs. 60 per share (including premium of Rs 58)
The issuance of 60,00,000
warrants (convertible into 60,00,000 equity shares, within a period of 18
months from the date of allotment of warrants) on preferential basis at a price
of Rs. 60 per share (including premium of Rs 58).
The Promoter/Promoter Group
has inducted share application money of Rs 240 millions. Post allotment, the
shareholding of the Promoter/Promoter Group will increase to 32.84%
For the additional
60,00,000 warrants the 25% upfront money of Rs 90 millions is received by the
company. Based on the current Capital Structure of the Company, post the
conversion of warrants the Promoter/Promoter Group shareholding would increase
to 36.99%.
Expansion of 122,000MTPA
• The project
implementation is progressing well. Completion expected in Q2 FY 2012.
• The new plant will be
used to manufacture value added products like Thermal, Non-carbon, Glazed,
Light weight paper, Coated & Crepe paper.
• Post commissioning, we
will be the sixth largest paper producer in
• Terms of Reference
received for the 20 MW Power Plant. Completion expected in Q3 FY 2012.
Wealth out of waste
projects
• The Total revenue for FY 2011 is Rs 2.67 crores.
• Brick and Fly Ash project: The brick making machine with
installed capacity of 20 million bricks per annum was commissioned in Dec.
2010.
• Plastic sheet project: The trial production of plastic
sheet projects with a capacity of 180,000 sheets per annum has begun.
Launch of Consumer Products
• The Company is making its entry in value added Consumer
Products segment by making of Notebooks, Copier papers and Office Stationary
under "Rainbow" brand.
• Capex outlay is Rs. 250 millions will be funded by internal
accruals.
• The Company is planning to penetrate, through building
distributors network, in the states of Gujarat, Rajasthan and
• Branding exercise to commence from Q2 FY 2012.
About Rainbow Papers Ltd
Rainbow Papers today is one
of the fastest growing corporations in the Indian Paper Industry using the
eco-friendly process of recycling of waste paper. Rainbow manufactures over 186
varieties of paper with current capacity of 183,000 TPA. It has marked its
presence in the global market and is currently exporting its products to
various countries in the
Safe harbor Statement
Statements in this document
relating to future status, events, or circumstances, including but not limited
to statements about plans and objectives, the progress and results of research
and development, potential product characteristics and uses, product sales
potential and target dates for product launch are forward-looking statements
based on estimates and the anticipated effects of future events on current and
developing circumstances Such statements are subject to numerous risks and
uncertainties and are not necessarily predictive of future results. Actual
results may differ materially from those anticipated in the forward-looking
statements. The company assumes no obligation to update forward-looking
statements to reflect actual results, changed assumptions or other factors.
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.44.90 |
|
|
1 |
Rs.72.54 |
|
Euro |
1 |
Rs.63.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
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.