MIRA
INFORM REPORT
|
Report Date : |
23.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
THE PAPER PRODUCTS LIMITED |
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Registered Office : |
Regent Chambers, 13th Floor, Nariman Point, Mumbai – 400021,
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
12.06.1950 |
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Com. Reg. No.: |
11-145537 |
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Paid-up Capital : |
Rs. 125.383 Millions |
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CIN No.: [Company
Identification No.] |
L21011MH1950FLC145537 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT09909E NGPT00356G NGPT01042G PNET03852C |
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PAN No.: [Permanent
Account No.] |
AAACT0086E |
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Legal Form : |
Public Limited Liability Company. The company's shares are listed on
Stock Exchange Subsidiary of Foreign Company. |
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Line of Business : |
Manufacturer and Seller of
Laminates and Converted, Coated / Uncoated Paper and Films, Cartons, Moralised
Films and Polyethylene Films. |
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No. of Employees
: |
Information not divulged by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 10000000 |
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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 an established
company having fine track. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered
normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
The Management non cooperative
LOCATIONS
|
Registered Office : |
Regent Chambers, 13th Floor, Nariman Point, Mumbai-400021, |
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Tel. No.: |
91-22-22820969 |
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Fax No.: |
91-22-22832860 |
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E-Mail : |
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Website : |
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Corporate Office : |
LBS Marg, Majiwada, Thane-400601, |
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Tel. No.: |
91-22 25343691 /25427051/ 25343692/
25343693/ 21735591/ 92/ 92/ 21735551/ 52/ 53 |
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Fax No.: |
91-22-25340599/ 25427050 |
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E-Mail : |
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Factory 1 : |
Plot No. 139 and 148, Sri Venkateshwara, Co-operative
Industrial Estate, Bollarum, Medak District, |
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Tel. No.: |
91-8458-279628/279616 |
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Fax No.: |
91-8458-279464 |
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Factory 2 : |
Survey No. 34, Hisa 1/3, At Post Umerkoi, Via Silvassa –
396230, Dadra and Nagar Haveli, |
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Fax No.: |
91-260-2681005/2681009 |
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Factory 3 : |
L. B. S. Marg, Majiwade, Thane - 400601, |
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Tel. No.: |
91-22-2173 5591/21735592/21735593/21735551/21735552/21735553 |
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Fax No.: |
91-22-21735599/21735650 |
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Factory 4 : |
Plot No. 70-73, Sector – 4,
IIEPantnagar, |
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Tel. No.: |
91-5944-250183 / 250184 / 250185 |
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Fax No.: |
91-5944-250186 |
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Sales Office : |
91, Tel No.:
91-80-23568979/23568980/23342873 Fax No.: 91-80-22296522 Chennai: 5-8, Velachery, Tel No.: 91-44-22592461 Fax No.: 91-44-22452461 Kolkata: Laha Paint House, 5th
Floor, 7, Tel No.: 91-33-22372812/22348281 Fax No.: 91-33-22255654 508-510, Ansal Chambers – II, 6,
Tel No.:
91-11-26194795/26195641/26174297 Fax No.: 91-11-26194389 |
DIRECTORS
As On 31.12.2009
|
Name : |
Mr. K. C. Narang |
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Designation : |
Chairman |
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Qualification : |
B.A / L.L.B |
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Name : |
Mr. Suresh Gupta |
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Designation : |
Managing Director and Chief
Executive Director |
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Age : |
52 years |
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Qualification : |
B. A. (Hons), MBA |
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Experience : |
30 Years |
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Date of Appointment : |
27.01.1988 |
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Name : |
Mr. C. N. Murthy* |
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Designation : |
Executive Director and Chief Operating Officer |
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Date of Birth/ Age : |
21.03.1951 |
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Qualification : |
B. Tech in Mechanical Engineering |
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Experience : |
32 years |
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Date of Appointment : |
02.01.1995 |
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Name : |
Mr. Timo Salonen |
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Designation : |
Director |
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Name : |
Mr. Maurice Petitjean |
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Designation : |
Director |
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Name : |
Mr. Arunkumar R. Gandhi |
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Designation : |
Director |
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Name : |
Mr. P. V. Narayanan |
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Designation : |
Director |
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Date of Birth/ Age : |
10.03.1941 |
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Qualification : |
Post graduate in chemistry and diploma in Marketing Management |
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Date of Appointment : |
30.03.2002 |
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Directorship in other company : |
Texplast Industries Limited |
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Name : |
Mr. Ramesh K. Dhir |
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Designation : |
Director |
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Name : |
Mr. Vibhu Talwar |
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Designation : |
Director |
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Date of Birth/ Age : |
17.09.1973 |
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Qualification : |
Honours Graduate in Mathematics and Economics from |
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Date of Appointment : |
29.04.2003 |
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Name : |
Mr. Henk Beek |
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Designation : |
Alternate to Mr. Maurice Petitjean |
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Name : |
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Designation : |
Alternate to Mr. Timo Salonen |
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Name : |
Mr. Heikki Takanen |
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Designation : |
Director |
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Name : |
Mr. |
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Designation : |
Director |
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Name : |
Mr. Evert A. Ariens |
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Designation : |
Alternate to Mr. Antony H. Combe |
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Name : |
Mr. Sakari Ahdekivi |
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Designation : |
Director |
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Name : |
Mr. Jukka Moisio |
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Designation : |
Director |
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Qualification : |
MBA |
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Name : |
Mr. Henricus Beek |
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Designation : |
Director |
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Qualification : |
B.Eco. |
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Name : |
Mr. M. K. Srinivasan |
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Designation : |
Chief Executive Director and Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Suresh Gupta |
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Designation : |
Managing Director and President
(CEO) |
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Name : |
Mr. Sushil Kumar Agarwal |
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Designation : |
Company Secretary and Head Taxation |
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Name : |
Mr. Parag Vyavahare |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Ravi
Chidambaram |
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Designation : |
Controller – Finance and Joint
CFO |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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2,430,692 |
3.88 |
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681,140 |
1.09 |
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3,111,832 |
4.96 |
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36,934,100 |
58.92 |
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|
36,934,100 |
58.92 |
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Total shareholding of Promoter and Promoter Group (A) |
40,045,932 |
63.88 |
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(B) Public Shareholding |
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2,692,807 |
4.30 |
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|
39,480 |
0.06 |
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307,745 |
0.49 |
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1,100,417 |
1.76 |
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4,140,449 |
6.60 |
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|
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3,915,115 |
6.25 |
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|
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12,345,051 |
19.69 |
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1,611,094 |
2.57 |
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|
629,549 |
1.00 |
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|
614,954 |
0.98 |
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|
14,595 |
0.02 |
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|
18,500,809 |
29.51 |
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Total Public shareholding (B) |
22,641,258 |
36.12 |
|
Total (A)+(B) |
62,687,190 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
62,687,190 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of
Laminates and Converted Coated / Uncoated Paper and Films Cartons Moralised
Films and Polyethylene Films. |
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Products : |
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PRODUCTION STATUS (AS ON 31.12.2009)
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Particulars |
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Installed
Capacity (Tonnes)* |
Actual
Production |
|
Laminates and Converted Coated/Uncoated Paper and Films |
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|
37590.000 |
23982.308 |
|
Cartons |
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|
11000.000 |
4632.438 |
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Metalised Films |
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|
1000.000 |
112.646 |
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Polyethylene Films |
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|
5400.000 |
5041.934 |
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Jobwork-Metalised Films |
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N.A. |
1.415 |
* Installed
capacities are as certified by the management and have not been verified by the
auditors, as this is a technical matter.
@ Includes for
captive consumption 7.229 MT (Previous year 96.009 MT)
# Includes for captive
consumption 114.36 MT (Previous year 616.862 MT)
$ Utilised for
captive consumption
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
Information not divulged by management |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
BSR and Associates Chartered Accountants
Accountants |
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Subsidiaries : |
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Ultimate Parent company : |
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Holding Company : |
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CAPITAL STRUCTURE
As on 31.12.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 Millions |
|
700000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.70.000 Millions |
|
300000 |
Unclassified Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
Total |
|
Rs.400.000
Millions |
Issued Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
62687190 |
Equity Shares |
Rs.2/- each |
Rs.125.374 Millions |
|
|
Add: Amount
Received on 1449 forfeited shares |
|
Rs.0.009 Million |
|
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Total |
|
Rs. 125.383 Millions |
Note:
Paid up Share capital includes Bonus Shares issued by capitalisation of reserves; Current year 7,525,000 (Previous year 7,525,000) Shares of Rs.2/– each Paid up Share capital includes Shares held by holding company
Huhtavefa B.V., Current year 36,934,100 (Previous year 36,934,100) of Rs.2/–each.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
125.383 |
125.383 |
125.383 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2490.080 |
2336.317 |
2257.305 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
2615.463 |
2461.700 |
2382.688 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
14.042 |
2.853 |
42.894 |
|
|
2] Unsecured Loans |
225.309 |
495.301 |
628.643 |
|
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TOTAL BORROWING |
239.351 |
498.154 |
671.537 |
|
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DEFERRED TAX LIABILITIES |
67.759 |
68.965 |
85.149 |
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TOTAL |
2922.573 |
3028.819 |
3139.374 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1987.843 |
1636.590 |
1778.101 |
|
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Capital work-in-progress |
45.716 |
468.915 |
366.994 |
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INVESTMENT |
310.359 |
169.756 |
138.051 |
|
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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 |
759.294
|
621.215
|
678.339
|
|
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Sundry Debtors |
971.981
|
944.189
|
1030.982
|
|
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Cash & Bank Balances |
40.774
|
126.379
|
39.969
|
|
|
Other Current Assets |
109.890
|
123.484
|
51.716
|
|
|
Loans & Advances |
212.051
|
203.943
|
246.023
|
|
Total
Current Assets |
2093.990
|
2019.210
|
2047.029
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
814.713
|
647.197
|
|
|
|
Current Liabilities |
430.529
|
418.089
|
1007.570
|
|
|
Provisions |
270.093
|
200.396
|
183.231
|
|
Total
Current Liabilities |
1515.335
|
1265.652
|
1190.801 |
|
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Net Current Assets |
578.655
|
753.558
|
856.228
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2922.573 |
3028.819 |
3139.374 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
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SALES |
|
|
|
|
|
|
|
Income |
5776.923 |
6120.884 |
5320.574 |
|
|
|
Other Income |
79.028 |
101.992 |
106.204 |
|
|
|
TOTAL (A) |
5855.951 |
6222.876 |
5426.778 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
3825.421 |
4263.021 |
3672.771 |
|
|
|
Manufacturing and Operating Expenses |
416.761 |
393.485 |
350.010 |
|
|
|
Personnel Expenses |
493.334 |
509.269 |
439.421 |
|
|
|
Administrative and Selling Expenses |
329.286 |
331.486 |
299.875 |
|
|
|
Foreign Exchange |
(15.357) |
131.959 |
(10.834) |
|
|
|
TOTAL (B) |
5049.445 |
5629.220 |
4751.243 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
806.506 |
593.656 |
675.535 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
(0.710) |
9.835 |
17.292 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
807.216 |
583.821 |
658.243 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
311.467 |
286.164 |
288.547 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
495.749 |
297.657 |
369.646 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
121.964 |
84.779 |
85.971 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
373.785 |
212.878 |
283.675 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
849.862 |
790.285 |
670.343 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
37.379 |
21.288 |
28.368 |
|
|
|
Dividend |
125.374 |
112.837 |
112.837 |
|
|
|
Provision for Dividend |
21.307 |
19.176 |
22.528 |
|
|
|
Proposed special one time dividend |
62.687 |
0.000 |
0.000 |
|
|
|
Provision for Dividend Tax |
10.654 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
966.246 |
849.862 |
790.285 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1235.785 |
1258.700 |
995.501 |
|
|
|
Other Earnings |
26.741 |
26.901 |
22.078 |
|
|
TOTAL EARNINGS |
1262.526 |
1285.601 |
1017.579 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
982.165 |
1112.281 |
963.990 |
|
|
|
Stores & Spares |
18.471 |
25.632 |
37.269 |
|
|
|
Capital Goods |
18.825 |
107.839 |
329.276 |
|
|
TOTAL IMPORTS |
1019.461 |
1245.752 |
1330.535 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.96 |
-- |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2010 1st
Quarter |
30.06.2010 2nd
Quarter |
30.09.2010 3rd
Quarter |
31.12.2010 4th
Quarter |
31.03.2011 5thQuarter
|
|
Net Sales |
1607.100 |
1761.200 |
1820.600 |
1916.500 |
2014.100 |
|
Total Expenditure |
1406.200 |
1597.900 |
1654.300 |
1687.600 |
1760.500 |
|
PBIDT (Excl OI) |
200.900 |
163.300 |
166.300 |
228.900 |
253.600 |
|
Other Income |
3.500 |
3.300 |
16.900 |
8.400 |
15.300 |
|
Operating Profit |
204.400 |
166.600 |
183.200 |
237.300 |
268.900 |
|
Interest |
1.200 |
0.800 |
1.600 |
1.200 |
1.400 |
|
Exceptional Items |
139.800 |
0.000 |
0.000 |
(17.000) |
0.000 |
|
PBDT |
343.000 |
165.800 |
181.600 |
219.100 |
267.500 |
|
Depreciation |
81.700 |
81.600 |
82.100 |
78.600 |
77.200 |
|
Profit Before Tax |
261.300 |
84.200 |
99.500 |
140.500 |
190.300 |
|
Tax |
61.300 |
17.200 |
22.100 |
34.200 |
45.100 |
|
Profit After Tax |
200.000 |
67.000 |
77.400 |
106.300 |
145.200 |
|
Net Profit |
200.000 |
67.000 |
77.400 |
136.800 |
145.200 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
6.38 |
3.42 |
5.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.58 |
4.86 |
6.35 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.14 |
8.14 |
8.83 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.12 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.67 |
0.51 |
0.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.38 |
1.60 |
1.72 |
LOCAL AGENCY FURTHER INFORMATION
The Details of
sundry creditors:
|
Particulars |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
Sundry Creditors |
|
|
|
|
- Micro, small and medium enterprises |
1.973 |
1.546 |
NA |
|
- Others |
812.740 |
645.621 |
NA |
|
Total |
814.713 |
647.167 |
NA |
History
Subject a member of Huhtamaki Packaging Worldwide is a leading
manufacture of flexible packaging materials in
During 1999 Huhtamaki Van Leer the packaging group with worldwide operation and
having leadership positions in consumer and industrial packaging became the 51%
shareholder of the company through preferential allotment of equity shares. The
company is taking all efforts to become a debt-free in the near future.
Subject which commands a 65% market share in the high end flexible packaging in
The company has technology-transfer agreements with Dennison Manufacturing
Company
Subject raised Rs.102.9 millions through an rights issue of 14% PCDs (FV of
Rs.100) in the year 1995 to part finance its Rs.280 millions Plant for
packaging material at Silvasa
Subject is increasing the production
capacity of its Silvassa plant at a capex of Rs.185 Millions. The commercial
production of the expansion project is expected in March 2003. It has also
redeemed its entire preference capital in the current year.
Subject has divested its entire stake in
PPL Feedback Packaging Limited (PFL) to Brown Paper Technologies Limited on Jan
29 2002 and hence PFL ceases to be a subsidiary of Subject .
The company was awarded the Worldstar For Packaging 1994 by the World Packaging
Organisation. In 1994 it also won the Kelkar Memorial Award for Technical
Research instituted by SICOM.
Performance During
The Year:
During the year, the net sales were Rs. 5776.900 million as compared to Rs. 6120.900 million in the previous year. Profit Before Tax was Rs. 495.700 million as compared to Rs. 297.700 million in the previous year.
After providing for Income Tax of Rs. 122.000 million, Profit after tax was Rs. 373.700 million. Further after transferring an amount of Rs. 37.400 million to General Reserve, the amount available for appropriation was Rs. 1186.200 million including amount brought forward of Rs.849.9 million of previous year. The Earning per Equity Share (EPS) was Rs. 5.96.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
Y 2009 began amidst severe global financial crisis induced
global economic recession. The economic environment in
Towards the later part of Y 2009, the economic stimulus and increased public expenditure, aided by a large domestic market, showed revival signs. Manufacturing and services sectors started bouncing back. The Government forecast for Y 2010 GDP growth was increased to 7%. However, amidst this, innovation soared and continues to be the biggest economic concern.
In this highly uncertain environment, the company achieved a significantly improved financial performance in 2009. While Net Sales declined by 5.6% compared to previous year, Operating Profit increased to INR 495 millions– a increase of 61% over Y2008 and the Profit after tax increased to INR 374 millionsas compared to INR 213 in the previous year.
The basic and diluted earnings per share (EPS) for Y2009 was INR 5.96 as compared to INR 3.40 in the previous year. Dividend of Rs. 2 per share has been proposed, i.e., 10% higher than the previous year. In addition a Special Platinum Jubilee one time dividend of Re. 1.00 per share has also been proposed for Y2009. Hence the total dividend for 2009 is Rs. 3 per equity share.
Amidst the challenges faced in a continuously changing environment, the company continued to maintain its focus on implementation of strategic initiatives. Highlights for 2009 include:
• New levels of material efficiencies were achieved at some of our operations. The team is committed to carry forward the benefits of these initiatives in 2010.
• Project
• Reconstruction of Thane Plant was fully completed by the 3rd quarter of 2010. Machines and utilities were shifted from the old plant into the new premises with minimum disruption to operations. They now have a world class plant in Thane which envisions new benchmarks of operational excellence with special focus on servicing export customers.
Platinum Jubilee
Celebrations
Y 2010 is Platinum Jubilee year of PPL. By a very happy coincidence, Y 2010 is also the 90th anniversary of PPL’s parent company, Huhtamaki Oyj. It is evident that this has been achieved with the support of our valued customers, trusted partners and all stakeholders. PPL places on record its deep appreciation for their support. It is planned that this momentous occasion is celebrated with specific events organized for the stakeholders.
FINANCIAL OVERVIEW
Sales
Y2009 ended with Gross Sales of INR 6180 millions (Y2008 – INR 6748.000 Millions). Net Sales were INR 5777.000 Millions. Sales declined by 5.6% in value and 9.8% in tonnage compared to 2008. Slowdown in sales in the early part of Y2009 was primarily due to the economic slowdown. In addition ERP related black out period and teething issues impacted sales in Q4’2009. Exports reduced by 3.2%.
Other Income
Other Income in Y2009 was INR 79.000 millions compared to INR 102.000 millions for Y2008. Other income for Y2009 includes pro!t of INR 10.600 millions realised on sale of surplus fixed assets . Dividend Income from Mutual Funds contributed INR 12.900 Millions. The remaining INR 55.500 millions mainly represents sale of scrap.
Profitability
Expenditure
Total operating expense in Y2009 P and L statement, i.e., aggregate of manufacturing and operating expenses, personnel expenses, administration and sales expenses and depreciation and amortization expenses amounted to INR 1548.000 millions as compared to INR 1518.000 millions in Y2008. Overall expenses were kept in constant control. However, the 5.6% drop in sales resulted in expenses as a % of Sales at 26.8% as compared to 24.8% in Y2008. To analyse key elements
Manufacturing and operating expenses were at INR 416.800 millions as against INR 393.500 millions in the previous year. The increase was primarily on account of a 25% increase in repairs and maintenance costs mainly due to shifting of machines to the new plant at Thane. In spite of rising power tariffs across all locations with deteriorating quality of power supply necessitating increased use of expensive DG power, the power and fuel costs were maintained at same the levels as in the previous year.
Personnel expenses were at INR 493.300 millions as against INR 509.200 millions in Y 2008. Y 2008 included INR 13.900 millions spend towards settlement of workers at Nagpur plant pursuant to its closure Excluding this impact, the personnel expense Y 2009 were marginally lower than Y 2008. Consequent to economic slowdown, compensation levels rose in subdued manner. Control over increases in compensation together with various cost control measures and favorable impact from retirement provisions helped in controlling personnel expenses. However, this trend is likely to see reversal in 2010.
Administration and Sales expenses were contained at INR 329.300 millions compared to INR 331.500 millions in the previous year. This included a 6% decrease in selling and distribution expenses to INR 148.00 millions (2.6% of net sales) compared to INR 158.000 millions (2.4% of net sales) in the previous year mainly due to decrease in exports. Administration expenses were marginally higher INR 181.300 millions compared to INR 173.000 millions in the previous year. Major reason for increase in Administration expenses was primarily on account of write off of fixed assets of INR 14.600 millions due to Thane Plant reconstruction and a few idle and obsolete assets.
MARKET COMMENTARY
The 2nd half of 2009 has clearly demonstrated that the
Indian economy has survived the impact of the global financial crisis. Led by
strong domestic demand and relatively quick revival in economic activity in the
manufacturing and service sectors, the Indian economy grew despite all odds by
6% in 2009.
Role of Packaging in
Society
Packaging is essential for societal development. Packaging performs multiple roles, i.e., distribution, availability, product protection with optimal economic material usage, preservation, containment, confidence, convenience, information, promotion… A good package must strive to satisfy everyone’s needs.
Opportunities:
Organized Retail is gaining share – at present around 5% of retail sales and is expected to go to over 10% within the next 4 to 5 years – driving consumption.
Growth of high performance packaging is a must for reducing
wastage, improving availability thereby contributing to
Packaging in
There are opportunities for growing exports in the developed
markets and in the Asian region. International majors look to source their
packaging requirements globally and regionally and
Concerns:
Packaging market in
Strategies
The company’s continued thrust on development of new innovative value added packaging formats that provide new value propositions to customers, and doing this in a profitable manner, is key to sustaining growth and margins.
In a highly cost driven market, the company is focused on profitable growth through:
A. Effective Business management
• Increasing market share and developing new business with customers
• New growth markets including geographical expansion in export markets
• Expanding the customer base through new customer development, by partnering with small and medium size FMCG companies
B. NASP – Unleashing Innovation
• Specialized - Pouches, Labels, Cartons
• Moving into new application areas
• Integrating Global Developments
C. Marketing Huhtamaki-PPL as a ‘one-stop’ shop – building customer confidence when they seek comprehensive packaging solutions and great service!
D. The Business Excellence Program – besides creating added customer value, is focused on continuous improvement in ‘cost’ and being ‘cost efficient’.
Attention to research and development in the field of packaging materials and manufacturing practices will continue to help us in offering solutions tailored to meet the needs of our customers. Our strategy of continuous innovation and development of newer packaging formats will stand us in good stead to meet the market needs and to grow profitably. Improved cost efficiency will create the balance needed between being competitive and being profitable.
NASP Programme Update
and Awards
NASP (New Applications Structures Products and Processes), the company’s innovation program, is the cornerstone of business strategy - a constant endeavour to renew product offering and constantly add superior value to customers. Innovation and creativity are in constant demand. NASP initiatives in Y 2009 contributed 25.8% of total sales.
Mention has been made of the ‘Small is beautiful’ customer in earlier reports. This program met with satisfying results as 96 new customers were added in Y2009.
As in the past, this year too saw a few of our special efforts recognized by discerning juries in Indian and international packaging competitions. The following awards were won in 2009:
1. 1 WORLDSTAR 2009 award
2. 7 PFFCASTAR 2009 awards
INTERNAL CONTROL
The company has in operation a reasonably good system of internal control considering the size and nature of operations.
The internal control system covers following aspects of business process and reporting systems;
• Financial propriety of business transactions.
• Accurate financial reporting of transactions as per applicable Accounting Standards and Policies.
• Safeguarding assets of the Company.
• Compliance with prevalent statutes, listing agreement provisions, management authorizations, policies and procedures.
• Review of information technology and other business process systems so as to suggest ways and means of cost
optimization.
FINALLY
Year 2009 started with the global economic slowdown and ended with a resurgence in the Indian economy.
In a highly uncertain environment, the company achieved a healthy growth in the bottom line. The financial position has improved and all interest bearing debt has been repaid. Cash and cash equivalents as at Dec’09 are at INR 351.000 Millions.
The volatile environment in past 5 years has been extremely
challenging for packaging business in
Simultaneously, strategic plans are being redrawn to build a sustainable high growth profitable business. This includes plans for new product offerings in multiple end user segments.
In the medium to long term, the company maintains a positive outlook.
CONTINGENT LIABILITIES
|
|
31.12.2009 |
31.12.2008 |
|
i) Excise Duty a Matters in
Appeal – Duty – Penalties b Show cause
notices – Duty –
Penalties |
497.382 7.148 225.242 1.179 |
497.382 7.148 189.392 0.776 |
|
ii) Customs Duty
demands in appeal |
-- |
0.133 |
|
iii) Service Tax
show cause notices – Penalties |
4.065 0.088 |
1.700 -- |
|
iv) Service Tax
appeal – Service Tax –
Penalties |
4.143 0.136 |
2.528 0.070 |
|
v) Sales Tax
demands in appeal |
22.998 |
19.546 |
|
vi) Claims
against the company not acknowledged as debts |
6.288 |
6.288 |
|
vii) Counter
guarantees issued to bankers for issuance of guarantees on
behalf of the Company |
17.685 |
6.918 |
|
viii) Contracts
remaining to be executed on capital account and not provided for
(net of advances) |
75.732 |
84.786 |
|
ix) Letters of
Credit issued by banks on behalf of the company for import of
goods |
36.559 |
62.571 |
|
x) The Company has
obtained EPCG licences issued under and subject to
conditions contained in Chapter 5 of the Foreign Trade Policy 2004–2009.These
licenses entitle the Company to import capital goods at concessional rates of
customs duty and accordingly the duty concession obtained In accordance
with the terms of the EPCG licence, the Company has an export obligation to
be discharged over a period of 8 years
As at year end
the Company has discharged export obligation of approximate value. |
222.309 1779.498 1779.498 |
222.309 1779.498 1679.970 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011
Rs. In Millions
|
Particulars |
Quarter ended 31.03.2011 (Unaudited) |
Quarter ended 31.03.2010 (Unaudited) |
Year Ended 31.12.2010 (Unaudited) |
|
Gross Sales |
2146.400 |
1718.200 |
7613.300 |
|
Less: Excise & Sales Tax |
165.100 |
127.400 |
573.200 |
|
Net Sales / Income from Operations |
1981.300 |
1590.800 |
7040.100 |
|
Other Operating Income (Refer Note B) |
32.800 |
16.300 |
65.300 |
|
Total Income |
2014.100 |
1607.100 |
7105.400 |
|
Expenditure |
|
|
|
|
(Increase)/ Decrease In Stock In Trade &
Work in Progress |
22.600 |
(48.800) |
(64.200) |
|
Consumption of Raw & Packing Materials |
1395.000 |
1136.100 |
5029.700 |
|
Staff Costs |
140.800 |
131.800 |
591.000 |
|
Depreciation & Amortisation |
77.200 |
81.700 |
324.000 |
|
Other Expenditure |
202.100 |
200.000 |
802.200 |
|
Total Expenditure |
1837.700 |
1501.000 |
6682.700 |
|
Foreign Exchange (Loss)/ Gain |
6.900 |
13.100 |
28.000 |
|
Profit from Operations before Other Income, Interest &
Exceptional items |
183.300 |
119.200 |
450.700 |
|
Other Income |
8.400 |
3.500 |
17.900 |
|
Profit before Interest and Exceptional items |
191.700 |
122.700 |
468.600 |
|
Financial Expenses |
1.400 |
1.200 |
5.900 |
|
Profit after Interest but before Exceptional items |
190.300 |
121.500 |
462.700 |
|
Exceptional Income - (Net) ( Refer note B) |
-- |
1398.000 |
122.800 |
|
Profit from Ordinary Activities Before Tax |
190.300 |
261.300 |
585.500 |
|
Provision for - Current Taxes |
51.500 |
64.000 |
152.800 |
|
- Deferred Taxes |
(6.400) |
(2.700) |
(18.00) |
|
Net Profit from Ordinary Activities After Tax |
145.200 |
200.000 |
450.700 |
|
Extraordinary Income/(Expenses) (net of tax) |
- |
-- |
30.500 |
|
Net Profit for the Period |
145.200 |
200.000 |
|
|
Dividend recommended per Equity Share (Rs.) |
-- |
-- |
30.500 |
|
Paid Up Share Capital - Equity Face Value Rs.2 |
125.400 |
125.400 |
125.400 |
|
Reserves (Excl. Revaluation Reserve) |
|
|
|
|
Basic & Diluted EPS Including Extraordinary and
Exceptional Items (Not Annualised) (Rs.) |
2.32 |
3.19 |
7.68 |
|
Basic & Diluted EPS Excluding Extraordinary and Exceptional
Items (Not Annualised) (Rs.) |
2.32 |
3.19 |
7.19 |
|
Basic & Diluted EPS Excluding Extraordinary and
Exceptional Items (Not Annualised) (Rs.) |
2.32 |
1.42 |
5.60 |
|
Public Shareholding |
|
|
|
|
-Number of Shares |
22641258 |
22641258 |
22641258 |
|
-Percentage of Shareholding |
36.12% |
36.12% |
36.12% |
|
Promoters & Promoter Group Shareholding |
|
|
|
|
a. Pledged / Encumbered -Number of Shares |
Nil |
Nil |
Nil |
|
-Percentage of Shares ( as a % of the total shareholding
of the |
Nil |
Nil |
Nil |
|
promoter & promoter group) |
|
|
|
|
-Percentage of Shares ( as a % of the total share capital
of the company) |
Nil |
Nil |
Nil |
|
b.Non-Encumbered -Number of Shares |
40045932 |
40045932 |
40045932 |
|
-Percentage of Shares ( as a % of the total shareholding
of the promoter & promoter group) |
100.00% |
100.00% |
100.00% |
|
- Percentage of Share (as a % of the total share
capital of the company) |
63.88% |
63.88% |
63.88% |
FIXED ASSETS:
- Land
- Building
- Computer
- Motor
Vehicles
- Furniture
Fixture Office
- Equipment and
Technical Library
- Computer
software
AS PER WEB SITE
DETAILS
PROFILE:
Perhaps it's a vision; Perhaps destiny, that
makes PPL a part and parcel of
the Indian packaging industry. Or perhaps it's more - Our ability to assimilate
and innovate.
The Year 1935 saw a young visionary herald the era of modern flexible packaging
in
With
consumer packaging sales revenue of Rs 3500 million in the year 2002, PPL is
Today PPL offers a wide portfolio of packaging solutions that include Flexible Packaging, Labelling Technologies
and Specialised Cartons. And all
this supported by the Packaging Machine Division
to provide the customer with Total packaging solutions. With Three state
of the art, fully integrated manufacturing facilities at Thane, Silvassa
and
Today, they are
proud that they matter to those, for whom packaging matters most. And this is
reflected in the impressive client list that includes, Levers, Nestle, Cadbury,
Britannia, Glaxo Smithkline, Coca Cola, Perfetti, Dabur, Marico, P and G
In 1999, PPL became
a member of the Huhtamaki Packaging Worldwide, a global leader in consumer
packaging.
About Huhtamaki
Huhtamaki Oyj headquartered in
PRESS
RELEASE:
The Paper Products Ltd
Sales for Q1-2011 grow by 24.5% & PBT
grows by 56.6%
Mumbai,
27.04.2011: The Paper
Products Limited (HUHTAMAKI-PPL),
The profit from
ordinary activities before exceptional items and tax is Rs.190.300 millions in
Q1-2011 compared to Rs.121.500 millions in Q1-2010 showing a growth of 56.6%.
The Exceptional
income of Rs 139.800 millions in Q1-2010 represented of net gain realised on
sale of
Net profit after tax
for Q1-2011 is Rs. 145.200 millions compared to Rs. 200.000 millions of
Q1-2010.
The basic and diluted
earnings per share is Rs.2.32 in Q1-2011 compared to Rs. 1.42 in Q1-2010
excluding the exceptional items. EPS in Q1-2010 including exceptional items was
Rs.3.19.
About The Paper
Products Limited (HUHTAMAKI-PPL):
PPL is
Since 1999, PPL is a
joint venture with the global packaging major,
PPL is a pioneer and
the technology and market leader in flexible packaging in
It meets the
packaging needs of almost the entire range of FMCG segments including personal
products, personal wash, laundry, foods, sauces, beverages, bakery products,
spices, chocolates and confectionery, dairy and also for seeds, specialized
chemicals, electronics, healthcare and many other specific specialized uses
including anti-spurious packaging.
The Package
Protection and Decoration products range includes latest leading edge
technologies — shrink sleeves, wrap-arounds, heat transfers, pressure
sensitives and metallised paper labels.
Manufacturing of
specialized cartons and cartoning systems, manufacture of poly films,
specialized barrier metallising and high-end application extrusion coating are
also part of PPL’s product offerings.
The company’s
packaging machines division offers complete packaging solutions to customers.
PPL mainly caters to
the premium segment of packaging and its clients include Britannia, Cadbury,
Castrol, Coca Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Unilever,
ITC, Marico, Nestle, Pepsi, Perfetti, P and G, Tata Tea, TTK-LIG, Wipro and
many more.
CMT REPORT (Corruption Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized blocked frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] 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.44.93 |
|
|
1 |
Rs.72.91 |
|
Euro |
1 |
Rs.64.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.