MIRA
INFORM REPORT
|
Report Date : |
01.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
THE WEST COAST PAPER MILLS LIMITED |
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Registered Office : |
Post Box No. 5, Bangur Nagar, Dandeli – 581 325, Uttara Kannada District, Karnataka |
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Country : |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
25.03.1955 |
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Com. Reg. No.: |
08-001936 |
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Capital Investment / Paid-up Capital : |
Rs.125.498 Millions |
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CIN No.: [Company
Identification No.] |
L02101KA1955PLC001936 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRT03385E |
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PAN No.: [Permanent
Account No.] |
AAACT4179N |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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Line of Business : |
Manufacturers of Writing, Printing and Packaging Paper. |
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No. of Employees : |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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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 22780000 |
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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 flagship company of the S K Bangur Group. It is well established and reputed company having good track. There
appears loss in the current year due to increase in the current year due to
increase in depreciation which result into reduction in profitability and
weaker debt servicing indicator. However subject gets good support from its group company. General
financial position is good. Trade relations are reported to be fair. Business
is active. Payments are regular and as per commitments. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A (Long Term Bank Facilities) |
|
Rating Explanation |
Having adequate degree of safety regarding timely servicing of
financial obligation. It carry low credit risk. |
|
Date |
May 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Factory 1 : |
Post Box No. 5, Bangur Nagar, Dandeli – 581 325, Uttara
Kannada District, |
|
Tel. No.: |
91-8284-231391/231395 |
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Fax No.: |
91-8284-231225/230443/231250/232148 |
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E-Mail : |
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Website : |
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Corporate Office : |
Chandra Kiran, 4th Floor, 10-A, |
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Tel. No.: |
91-80- 22231828/ 22231837/4112001/0006 |
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Fax No.: |
91-80 -22241916 /
22231838 |
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E-Mail : |
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Zonal Office : |
Located at ·
New Delhi ·
Kolkata ·
Mumbai ·
Chennai |
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Factory 2 : |
Telecom Cable Plant Sudarshan Telecom, Plot No. 386/387 KIADB, Electronic City
Hebbal, Industrial Area, |
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Tel. No.: |
91-821-2404060 |
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Fax No.: |
91-821-2404061 / 2404062 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. S. K. Bangur |
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Designation : |
Chairman and Managing Director |
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Qualification: |
B.Com |
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Date of Appointment: |
01.05.2003 |
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Name : |
Mrs. Shashi Devi Bangur |
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Designation : |
Director |
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Name : |
Mr. P. N. Kapadia |
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Designation : |
Director |
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Name : |
Mr. C. K. Somany |
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Designation : |
Director |
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Name : |
Mr. K. L. Chandak |
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Designation : |
Executive Director |
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Qualification : |
B.Com., F.C.A. |
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Date of Appointment : |
18.12.1971 |
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Name : |
Mr. R. N. Modi |
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Designation : |
Director |
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Name : |
Mr. Saurabh Bangur |
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Designation : |
Director |
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Name : |
Lt. Gen.[Retd.] Utpal Bhattacharyya |
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Designation : |
Director |
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Name : |
Mr. Krishna Kumar Karwa |
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Designation : |
Director |
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Name : |
Mr. Sanjay Kothari |
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Designation : |
Director |
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Name : |
Mr. M. P. Taparia |
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Designation : |
Director |
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Name : |
Mr. Haigreve Khaitan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. P K Mundra |
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Designation : |
V P (Finance) and Company Secretary |
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MANAGEMENT |
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PAPER
AND DUPLEX BOARD DIVISION CORPORATE
OFFICE |
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Name : |
Mr. J. K. Mandelia |
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Designation : |
President (Corporate) |
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Name : |
Mr. V. Subbiah |
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Designation : |
Vice-President
(Marketing) |
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Name : |
Mr. A. Bhaskar Reddy |
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Designation : |
President
(Commercial) |
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WORKS |
|
Name : |
Mr. S. S. Pal |
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Designation : |
President
(Technical) |
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Name : |
Mr. B.K Bhuyan |
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Designation : |
Vice-President
(Operations) |
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Name : |
Mr. B.H Rathi |
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Designation : |
Vice-President
(Operations) |
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TELECOM CABLE DIVISION |
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Name : |
Mr. V. Bangur |
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Designation : |
Chief
Executive Officer |
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Name : |
Mr. G S Naidu |
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Designation : |
President
[Operations] |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
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(A) Shareholding of Promoter and Promoter Group |
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Individuals / Hindu Undivided Family |
7798770 |
11.81 |
||||||||
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|
28376570 |
42.96 |
||||||||
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Sub Total |
36175340 |
54.77 |
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(2) Foreign |
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Total shareholding of Promoter and Promoter Group (A) |
36175340 |
54.77 |
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(B) Public Shareholding |
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(1) Institutions |
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|
||||||||
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Mutual Funds / UTI |
2345217 |
3.55 |
||||||||
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Financial Institutions / Banks |
30550 |
0.05 |
||||||||
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Insurance Companies |
2994111 |
4.53 |
||||||||
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Sub Total |
5369878 |
8.13 |
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(2) Non-Institutions |
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|
||||||||
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Bodies Corporate |
6772792 |
10.25 |
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Individuals |
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|
||||||||
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Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
13191757 |
19.97 |
||||||||
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
3522737 |
5.33 |
||||||||
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|
1016404 |
1.54 |
||||||||
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|
564165 |
0.85 |
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Foreign Nationals |
12050 |
0.02 |
||||||||
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|
16581 |
0.03 |
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Non Resident Indians |
423608 |
0.64 |
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Sub Total |
24503690 |
37.1 |
||||||||
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Total Public shareholding (B) |
29873568 |
45.23 |
||||||||
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Total (A)+(B) |
66048908 |
100 |
||||||||
|
|
0 |
0 |
||||||||
|
(1) Promoter and Promoter Group |
0 |
0 |
||||||||
|
|
0 |
0 |
||||||||
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Sub Total |
0 |
0 |
||||||||
|
Total (A)+(B)+(C) |
66048908 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Writing, Printing and Packaging Paper. |
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Products : |
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PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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|
|
|
|
Paper/Paper Board and Multilayer Board |
M.T. |
320000 |
267005 |
|
Optical Fibre Cables |
km. |
83500 |
27951 |
|
JFTC |
Ckm. |
1542000 |
78 |
|
Control Cable |
Ckm. |
3000 |
251 |
|
Signal Cable |
Ckm. |
5184 |
-- |
|
Quad Cable |
Ckm. |
3456 |
-- |
|
Wind Mills |
M.W/Kwh. |
1.75 |
1456700 |
GENERAL INFORMATION
|
No. of Employees : |
1500 (Approximately) |
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Bankers : |
·
Central Bank of India ·
State Bank of Mysore ·
Syndicate Bank ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Standard Chartered Bank ·
Barclays Bank Plc |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
· Baltliboi and Purohit Chartered Accountants
Cost Auditors ·
Umesh N Kini Chartered Accountants Legal Advisor
|
|
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|
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Associates : |
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Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs. 300.000 Millions |
|
6500000 |
Cumulative Redeemable Non-Convertible Preference Shares |
Rs.100/- each |
Rs. 650.000 Millions |
|
|
TOTAL |
|
Rs. 950.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62748908 |
Equity Shares |
Rs.2/- each |
Rs. 125.498
Millions |
|
|
|
|
|
NOTES
[a] Reconciliation
of the number of shares outstanding at the beginning and at the end of the year
|
PARTICULARS |
EQUITY SHARES |
|
|
NUMBER |
RS. IN MILLIONS |
|
|
Shares outstanding
at the beginning of the year |
62748908 |
125.498 |
|
|
|
|
|
Shares outstanding at the end of the year |
62748908 |
125.498 |
|
|
|
|
|
PARTICULARS |
8.5% CUMULATIVE REDEEMABLE NON-CONVERTIBLE PREFERENCE
SHARES |
|
|
|
NUMBER |
RS. IN MILLIONS |
|
Shares
outstanding at the beginning of the year |
6500000 |
650.000 |
|
Redemption of
Shares |
6500000 |
650.000 |
[b] Shares in the Company
held by each Shareholder holding more than 5% Shares
|
PARTICULARS |
NO. OF SHARES |
% OF HOLDINGS |
|
Veer Enterprises
Private Limited |
10,427,100 |
(16.62%) |
|
Shree Satyanaran
Investment Company Limited |
10,222,973 |
(16.29%) |
[c] 2,37,35,781
Equity Shares belonging to Promoter Group are locked-in till 28-06-2012
AS ON 30.07.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs. 300.000 Millions |
|
6500000 |
Cumulative Redeemable Non-Convertible Preference Shares |
Rs.100/- each |
Rs. 650.000 Millions |
|
|
TOTAL |
|
Rs. 950.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
66048908 |
Equity Shares |
Rs.2/- each |
Rs. 132.098
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
125.498 |
775.498 |
775.498 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5569.782 |
5929.275 |
5237.828 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5695.280 |
6704.773 |
6013.326 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6894.569 |
7260.202 |
9395.830 |
|
|
2] Unsecured Loans |
3612.191 |
3517.539 |
2951.314 |
|
|
TOTAL BORROWING |
10506.760 |
10777.741 |
12347.144 |
|
|
DEFERRED TAX LIABILITIES |
554.513 |
685.897 |
664.909 |
|
|
|
|
|
|
|
|
TOTAL |
16756.553 |
18168.411 |
19025.379 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14567.900 |
15283.172 |
8056.256 |
|
|
Capital work-in-progress |
45.668 |
0.865 |
7468.980 |
|
|
|
|
|
|
|
|
INVESTMENT |
467.120 |
467.120 |
467.120 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3132.914
|
2009.507
|
1790.554
|
|
|
Sundry Debtors |
728.489
|
731.595
|
342.417
|
|
|
Cash & Bank Balances |
141.258
|
757.881
|
1165.909
|
|
|
Other Current Assets |
1177.948
|
1338.572
|
0.000
|
|
|
Loans & Advances |
881.567
|
936.251
|
1833.121
|
|
Total
Current Assets |
6062.176
|
5773.806 |
5132.001 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
998.840
|
702.678
|
1799.305
|
|
|
Other Current Liabilities |
3321.791
|
2402.076
|
61.847
|
|
|
Provisions |
65.680
|
251.798 |
237.826 |
|
Total
Current Liabilities |
4386.311
|
3356.552 |
2098.978 |
|
|
Net Current Assets |
1675.865
|
2417.254
|
3033.023
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
16756.553 |
18168.411 |
19025.379 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13051.785 |
10709.240 |
6239.071 |
|
|
|
Other Income |
41.307 |
62.908 |
63.224 |
|
|
|
TOTAL (A) |
13093.092 |
10772.148 |
6302.295 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
Materials Consumed |
7400.921 |
5487.981 |
2230.290 |
|
|
|
Purchase of
Stock in Trade |
111.535 |
0.000 |
1997.266 |
|
|
|
Employee
Benefits Expense |
799.787 |
616.572 |
551.761 |
|
|
|
Administrative
Expenses |
0.000 |
0.000 |
291.377 |
|
|
|
Other Expenses |
2627.025 |
2263.466 |
0.000 |
|
|
|
Exceptional
Items |
621.978 |
0.000 |
0.000 |
|
|
|
Changes in
Inventories of Finished Goods, Work-in-Progress and Stock in Trade |
(147.690) |
(48.233) |
57.602 |
|
|
|
TOTAL (B) |
11413.556 |
8319.786 |
5128.296 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
16793.536 |
2452.362 |
1173.999 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
714.957 |
560.573 |
121.573 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
964.579 |
1891.789 |
1052.426 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1431.546 |
961.055 |
237.705 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(466.967) |
930.734 |
814.721 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(131.384) |
29.916 |
267.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(335.583) |
900.818 |
547.021 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
281.539 |
330.174 |
49.321 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividends on
Preference Shares |
8.023 |
55.250 |
55.250 |
|
|
|
Proposed Dividend on
Equity Shares |
12.550 |
125.498 |
125.498 |
|
|
|
Tax on Proposed
Dividends |
3.337 |
28.623 |
30.718 |
|
|
|
Capital Redemption
Reserve Account |
0.000 |
650.000 |
0.000 |
|
|
|
General Reserve |
0.000 |
90.082 |
54.702 |
|
|
BALANCE CARRIED
TO THE B/S |
(77.954) |
281.539 |
330.174 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1001.891 |
546.408 |
(208.541) |
|
|
TOTAL EARNINGS |
1001.891 |
546.408 |
(208.541) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
213.303 |
186.541 |
NA |
|
|
|
Stores & Spares |
336.720 |
191.747 |
NA |
|
|
|
Capital Goods |
160.327 |
115.252 |
NA |
|
|
TOTAL IMPORTS |
710.350 |
493.540 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.42 |
13.33 |
8.80 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
3298.110 |
3644.790 |
|
Total Expenditure |
2580.060 |
2882.210 |
|
PBIDT (Excl OI) |
718.050 |
762.580 |
|
Other Income |
1.250 |
0.990 |
|
Operating Profit |
719.300 |
763.570 |
|
Interest |
224.460 |
156.010 |
|
Exceptional Items |
(131.770) |
(131.770) |
|
PBDT |
363.070 |
475.790 |
|
Depreciation |
353.330 |
358.640 |
|
Profit Before Tax |
9.740 |
117.150 |
|
Tax |
(48.010) |
39.220 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
57.740 |
77.940 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
57.740 |
77.940 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(2.56)
|
8.36 |
8.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.58)
|
8.69 |
12.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.26)
|
4.42 |
6.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
0.14 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.71
|
2.21 |
2.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.38
|
1.72 |
2.44 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
PERFORMANCE
The working
results of the Company is a meta-narrative saga of a strong and solid performance
in the physical parameters of expanded capacity of production of Pulp and Paper
Board subverted by adverse conditions. The full fruitioning of the capacity in
terms of the achievement of production of Pulp and Paper and Paper Board is
significantly witnessed. However, the working results of the Company were
adversely affected by the overriding sluggish market conditions coupled with a
steep hike in the cost of raw materials, chemicals, coal, furnace oil, finance
charges etc., and the incidence of the settlement with unions for the period of
15 months i.e., from 01.01.2011 to 31.03.2012. This was compounded by the
breakdown of 34.5 MW Turbine for a period of about two months as well as
trippings during the year not only affected the production but also resulted in
higher power and fuel cost. Remedial measures and corrective actions have been
initiated by the company to avoid such technical snags in consultation with
machinery suppliers.
However, Paper
market has taken positive turn from February 2012 and Company expects that
results for the current year should improve, barring unforeseen circumstances
due to higher sales realization and increased production of Paper and
Paperboard.
The Company posted
gross profit of Rs. 1586.600 Millions as against Rs. 1891.800 Millions in the
previous year - lower by Rs. 305.200 Millions (16%) whereas there was a net
loss of Rs. 335.600 Millions as against profit of Rs. 900.800 Millions in the
previous year due to change in method of calculation of depreciation on new
fibre line and chemical recovery island of Paper and Paperboard division
resulting in higher depreciation/exceptional item by Rs. 1044.200 Millions.
DIVISION-WISE PERFORMANCE
A) PAPER AND
DUPLEX BOARD DIVISIONS
The production of paper,
paperboard and hardwood pulp was 3,08,230 MT (96.32% capacity utilization)
(including 1,43,990 MT on new Paper M/c No.VI) against 2,67,005 MT in the last
year (83.44% capacity utilization) (including 95,475 MT on new Paper Machine
No.VI) i.e., higher by 41,225 MT. The sale of paper, paperboard and hardwood
pulp was 3,05,818 MT against 2,67,992 MT in the last year i.e., higher by
37,826 MT.
The turnover
during the year was Rs. 13227.700 Millions as against Rs. 10794.100 Millions in
the previous year (both inclusive of excise duty), i.e., higher by Rs. 2433.600
Millions, due to increased production/sale.
Excise duty on
paper and paperboard has been increased from 5% to 6% with effect from
17.3.2012, which was passed on to the market.
B) CABLE DIVISION
– MYSORE
Production and
sales of optical fibre cable in terms of quantity has reduced during the year
to 20184 km and 20308 km, as against 27951 km and 27985 km in the previous
year, respectively. Sale of optical fibre cable in terms of value, was of Rs.
288.200 Millions as against Rs. 277.800 Millions (both inclusive of excise
duty) during the previous year. During 2011-12, the production was lower on
account of manufacture of more high fibre count which however, increased
realization compared to previous year.
Part of the
facilities of the non-operating PIJF plant were utilized for manufacturing
Control Cable and its production and sale was 341 kms and 337 kms respectively
as against both production and sale being 248 km in the last year. Total
turnover of cable division during year was Rs. 334.600 Millions as against Rs.
290.300 Millions (both inclusive of excise duty) during the previous year.
EXPORTS
Export of paper,
paperboard and duplex board increased from 13650 MT worth Rs.530.700 Millions
(FOB) in 2010- 11 to 23404 MT worth Rs.980.700 Millions (FOB) in 2011-12.
Further, 876 km of Cable worth Rs.21.200 Millions was exported in 2011-12
compared to 1519 km of Cable worth Rs.15.700 Millions in 2010-11.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
PAPER DIVISION
There are about
750 - 1000 paper mills (organized and unorganized sector) in the country out of
which large integrated units are only 14-15 nos. with a production share of
about 28% and balance comprises of medium (Agro-based) and Small (Waste paper
based) paper mills with production share of 72%.
The Indian paper
industry is an integral part of the Nation’s economy and contributes to its
growth and development. It is in this spirit that the Indian paper industry has
continued to upgrade its capacities and technologies, in spite of huge
challenges like shortage of raw material, highly capital intensive nature of
the industry, threat of cheaper imports from China, Indonesia etc. From a
situation where most paper mills were relatively small and with old
technologies, we have now reached a stage where almost all major paper mills
have adopted world class technologies and are fast progressing towards world
scale of operations as well.
The Indian paper
industry currently has a turnover of over Rs. 300000.000 Millions and
contributes over Rs. 30000.000 Millions to the national exchequer. Even more
importantly it is providing employment opportunities to over 1.5 million
people, mostly in rural areas.
The domestic
demand for all varieties of paper in India is estimated at around 11.6 million
tonnes per year. Of this, writing and printing paper accounts for approx. 4.2
million tonnes, packaging grades for approx. 5.05 million tonnes and newsprint
for about 1.75 million tonnes apart from specialty grade about 0.60 million
tonnes.
Even though their
domestic paper consumption has been growing
steadily, it is still only 10/11 kg per capita, which is abysmally low
when compared to even highly populated and developing economies. For example,
per capita consumption in China and Indonesia is estimated at 42 kgs and 23
kgs, respectively.
They have no doubt
that given India’s projected GDP growth, the renewed thrust on universal
education through Sarva Shiksha Abhiyan and Right to Education and the
consequent changes in lifestyle, paper demand per capita will gradually move to
at least 20 kgs per capita or 20 million tonnes by 2020 in their country,
requiring more than double quantity of paper that they currently produce and
consume.
To meet this
demand, the Indian paper industry expanded its capacity recently close to 1
million tonnes, however recession set in 2008 slow down fresh capacity
expansion coupled with uncertainty on raw material front particularly for wood
based units. The capacity additions initially resulted into oversupply
situation, which has now
been absorbed in
the market.
Industry has
upgraded process technologies, installed most modern fibre lines and high-speed
paper machines with shoe press to boost the production, conserve energy and
water and improve financial performance. Many mills have adopted extended
delignification processes, ECF bleaching to modernise the fibre lines. In the
area of paper making, adopted alkaline sizing, replacing clay and talk with GCC
and PCC fillers and increase the ash content in paper to reduce usage of fibre.
Industry has progressed in spite of challenges, improved environmental
performance in terms of reduction of effluent volumes, reduction in terms of
usage of steam, power, AOX reduction, apart from many other successful
achievements in process technologies.
Ministry of New
and Renewable Energy, Government of India vide its letter dt. 09.01.2012 has
confirmed that Black Liquor Dry Solids (BLDS) is a Renewable Biomass Source
which is a byproduct of wood, generated in the Pulp and Paper Industries and
accordingly the integrated Pulp and Paper Mills are eligible for Renewable
Energy Certificates for power generated by using steam from recovery boilers
wherein, Black Liquor Dry Solids are fired which will generate additional
revenue for these Mills.
Further, Ministry
of Power, Government of India has notified unit-specific “energy use norms” for
the paper industry vide Notification dated 30.03.2012 and the industry has to
comply the same by the target year 2014-15. Noncompliance of the same will lead
to penalties whereas improvement over the norms will be rewarded by issue of
Energy Saving Certificates.
The major challenge
for the Indian paper industry is raw material (wood) shortage. While the social
forestry model adopted by the industry has helped improve plantations and
pulpwood availability to some extent, these are by no means sufficient to meet
the growing need for capacity expansions. Indeed lack of stable and viable
sources of raw materials is a major impediment to the industry’s survival and
growth and wood rates are going out of control
apart from
availability for sustained production becoming a major concern. Import of
pulpwood logs and chips is being explored by the Paper Mills.
Major paper
producing countries of Latin America, Europe and Asia, including China,
Indonesia, Malaysia etc., have adopted a policy of granting forest concessions
to large paper mills to plant, protect and harvest pulpwood in a cost effective
manner. In absence of similar enabling policies, paper mills in India have to
necessarily depend upon small and scattered plantations developed through
Industry’s social forestry initiative or Government controlled forests. In the
process, the cost of collection and transportation works out to be greater than
cost of the pulpwood itself. As a result, cost of raw materials in India has
been continuously going up and has become most uncompetitive in comparison to
the major paper producing countries in the world.
In the Union
Budget for 2012-13, Excise duty on paper and paperboard has been increased from
5% to 6% with effect from 17.3.2012.
CABLE DIVISION
There are 12 Manufacturers
of Optical Fibre Cables having installed capacity of around 700000 km. BSNL has
released total 42000 Cable km of order for supply of 24F optical Fibre cables
in the current year. BSNL is expected to release further OFC orders for
different circles for their O and M requirement as there was a long gap in the
last procurement and the current tender. Besides this, RAILTEL / Railways will
come up with a requirement of 4000 kms in this year. Other major private
telecom players like Aircel, Reliance Communication, Bharti, Tata Teleservices,
VSNL, Vodafone etc., will also expand their network after successful launch of
3G, which will generate additional requirement of cables. Considering growing
demand for bandwidth in telecom network, the Company is focusing on high fibre
count Optical Fibre cable. The Company has got 2000 Kms of BSNL order after a
long gap of nearly 4 years.
SEGMENT-WISE PERFORMANCE REVIEW
The Company
operates in two business segments – paper/ paperboard (including duplex board)
at Dandeli and telecommunication cables at Mysore, apart from having wind mills
of 1.75 MW capacity in Tamilnadu for power generation. Detailed segment-wise
performance has been indicated in the Directors’ Report.
OUTLOOK
PAPER DIVISION
The paper industry
is understood to be cyclical in nature and its performance depends on the
global pulp and paper demand supply situation. The industry has also witnessed
cyclical impact from May 2011 to February 2012 and has not been able to revise
the prices to pass on part of the cost increase to the market. The Company has
well-diversified product base which also insulates it from the cyclical impact.
However, given the growth potential, outlook of paper industry is promising.
Over the past few
months, the corporate sector is abuzz with news on expansions, acquisitions and
fund-raising by Companies in Paper Industry. The M and A activity is catching
up in paper industry as well. India is the fastest growing paper market in the
world with growth in the range of 8-10%. The acquisition of controlling stake
in The Andhra Pradesh Paper Mills Limited by International Paper Company, USA,
is likely to lead to revamping of paper industry with a positive outlook.
CABLE DIVISION
Reliance
Industries is rolling out 4G network in 22 circles utilising high fibre count
OFC and their demand is expected to be approximately 250000 cable kms in next
2-3 years. Apart from Reliance Industries, other players like Bharti has also
commenced work on 4G.
Government of
India has planned to set up SPV called Bharat Broadband Network Limited, for
implementing Rs. 200000.000 Millions National Optical Fibre cable Network
(NOFN). The Network is expected to be operational by Nov’13. The demand of OFC
will be 2500000 cable km for next 3-4 years.
STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
SEPTEMBER 2012
(Rs. in millions)
|
Sr. No. |
Particular |
3 Months Ended |
Preceding 3 Months Ended |
Year to date
figures for current period ended |
|
|
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
(Unaudited) |
||
|
1. |
Net Sales/Income
from Operations |
3644.793 |
3298.112 |
6942.905 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of
Materials consumed |
2069.101 |
1824.388 |
3893.489 |
|
|
Changes in Inventories
of Finished Goods, Work-in-Progress and Stock-in-Trade |
(28.858) |
(72.554) |
(101.412) |
|
|
Employee
Benefits Expense |
210.210 |
195.791 |
406.001 |
|
|
Depreciation and
Amortisation Expense |
358.644 |
353.333 |
711.977 |
|
|
Other Expenses |
631.752 |
632.441 |
1264.193 |
|
|
Total Expenses |
3240.849 |
2933.399 |
6174.248 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
403.944 |
364.713 |
768.657 |
|
|
|
|
|
|
|
4. |
Other Income |
0.993 |
1.252 |
2.245 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
404.937 |
365.965 |
770.902 |
|
|
|
|
|
|
|
6. |
Interest |
156.014 |
224.460 |
380.474 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
248.923 |
141.505 |
390.428 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
131.770 |
131.770 |
263.540 |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
117.153 |
9.735 |
126.880 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
|
a) Current tax |
18.300 |
0.000 |
18.300 |
|
|
b) MAT Credit entitlement |
(18.300) |
0.000 |
(18.300) |
|
|
c) Deferred tax |
39.216 |
(48.009) |
(8.793) |
|
|
|
|
|
|
|
11. |
Net Profit
from Ordinary Activities after Tax (9-10) |
77.937 |
57.744 |
135.681 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
77.937 |
57.744 |
135.681 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
132.098 |
132.098 |
132.098 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
3.18 |
2.99 |
6.17 |
|
|
b) Basic and diluted EPS after extraordinary items |
3.18 |
2.99 |
6.17 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
29873568 |
29873568 |
29873568 |
|
|
- Percentage of Shareholding |
45.23 |
45.23 |
45.23 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non
Encumbered |
|
|
|
|
|
- Number of Shares |
36175340 |
36175340 |
36175340 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100 |
100 |
100 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
54.77 |
54.77 |
54.77 |
|
Particulars
|
Quarter
Ended 30.09.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the quarter |
Nil |
1.
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
PARTICULARS |
Current Half
Year End 30.09.2012 |
|
Equity and liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
132.098 |
|
Reserve &
surplus |
5878.053 |
|
Sub-total - Shareholders' funds |
6010.151 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
6424.698 |
|
Deferred tax liability
(net) |
545.720 |
|
Other Long Term
Liabilities |
310.619 |
|
Long term
provisions |
31.880 |
|
Sub-total - Non-current liabilities |
7312.917 |
|
Current
liabilities |
|
|
Short term
borrowings |
3322.546 |
|
Trade payables |
1164.661 |
|
Other current
liabilities |
2944.070 |
|
Short term
provisions |
36.160 |
|
Sub-total - Current liabilities |
7467.437 |
|
Total - Equity & Liabilities |
20790.505 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
13946.144 |
|
Non-current
investment |
467.120 |
|
Long term loans
& advances |
520.788 |
|
Sub-total - Non-current Assets |
14934.052 |
|
Current assets |
|
|
Inventories |
3049.212 |
|
Trade
receivables |
874.300 |
|
Cash & bank
balances |
117.620 |
|
Short term loans
& advances |
428.016 |
|
Other current
assets |
1387.305 |
|
Sub-total - Current Assets |
5856.453 |
|
Total – Assets |
20790.505 |
2.
Depreciation on Power Block, Converting Plant of PM-VI
and Effluent Treatment Plant of Paper and Paper Board Division has been changed
from Straight Line Method to Written Down Value Method w.e.f. 01.04.2012 due to
which depreciation and exceptional items (for depreciation of earlier years)
are higher by Rs.27.270 Millions and Rs.131.770 Millions respectively for the
quarter ended on 30th September 2012.
3.
Adverse notional exchange rate variation on foreign
currency project loans was Rs.1188.409 Millions as on 30-09-2012 as against
Rs.979.384 Millions as on 31-March-2012, which is added to fixed assets.
4.
Telecommunication Cables Revenue, Profit/Loss and
Assets are less than 10% of combined results for all the reported periods,
hence segment reporting as per Accounting Standard-17 issued by The Institute
of Chartered Accountants of India is not applicable.
5.
The above financial results have been reviewed by
the Audit Committee and approved by the Board of Directors at their meeting
held on 6th November 2012.
6.
The Statutory Auditors have carried out a
"Limited Review" of the above results.
7.
Figures of the previous period have been regrouped
and reclassified wherever necessary.
FIXED ASSETS
·
Leasehold Land
·
Freehold Land
·
Factory Building
·
Non-factory Building
·
Roads and Drainage
·
Effluent Treatment Plant
·
Construction Machinery
and Equipments
·
Water Treatment Plant
·
Electric Installations
·
Fire Fighting Equipments
·
Furniture, Fittings and
Air Conditioners
·
Office Equipments
·
Truck and Vehicles
·
Plant and Machinery
WEBSITE DETAILS
PROFILE
WCPM enjoys a pedigree of standing over the past 50
years. The company’s vision in constant upgradation of its process and
technology to offer uniform quality of customized products, the “wood to paper”
process mastery and product research have enabled the mill to produce a wide
portfolio of wood free papers and boards of highest quality.
The product-line features well-established brands
of commercial to premium grades of paper and boards ranging from 54 to 600 GSM
catered to across six different product segment namely; Writing, Printing,
Business stationery, specialty, industrial and packaging.
The company operates six versatile machines with an
installed capacity of 3,20,000 TPA. With the latest addition of 500 TPD State of
Art Voith Paper Machine, the quality standards have risen to international
standards.
With the installation of world’s most renowned
“Bielomatik” online cut-pack converting line, the quality standards of copier
papers have been elevated to international standards. The overwhelming
success of is Copier grades namely B2B, Copy Gold and Copy Plus have created a
revolution in the market for cut size papers in a record short time.
As an ISO 9001:2008 company, WCPM has been
consistently striving to improve its quality benchmarks. At the heart of WCPM’s
success is its strong customer focused research initiative backed by a
sophisticated research center and a team of qualified professionals who have
translated into a high degree of customer satisfaction, reflected in its loyal
off take.
MILESTONE
Subject is one of the pioneers in India and in Asia for using advanced
technology in paper production. Creativity and innovation are at the core of
all the milestones that they have achieved till date. With a large number of
"firsts" up their sleeve, Subject is truly the leader in paper
manufacturing in India. Some of their noteworthy milestones are as follows:
- They are the first company in Asia to install
twin-wire Papriformer paper machine.
- They are the first to use synthetic wire on paper
machine in India.
- In India, The West Coast Paper Mills Limited is the
first company to install Drum Chipper (supplied by Pallmann, Germany),
Disk Refiners, Rotary Limekilin to reburnlimesludge, 330 TPD Sids Chemical
Recovery Boiler, and FBC Coal-fired Boiler.
- They are the first to establish and use sulphuric
acid in India as a protective agent in conventional bleaching.
- In India, they are the first company to use 100%
hardwood, replacing 100% bamboo.
- They are the first company in India that has
successfully established a well equipped Research Centre attached with a
paper mill.
- They are the first to introduce captive plantation
in India.
- In India, they are the first to introduce a chemical
recovery boiler of 500 solids per day capacity.
- Their net profit increased from Rs 318.600 Millions
to Rs 36.04 Millions and the earnings per share from Rs. 35.64 to Rs.
40.31.
- We have successfully installed a 100 TPD Duplex
Board Machine and 350 TPD brown stock washing equipments at their paper
manufacturing plant.
GROUP COMPANIES
SUDARSHAN TELECOM, MYSORE
Sudarshan Telecom is a unit of The West Coast Paper
Mills Limited. It is a leading producer of telecom cables in India. The
state-of-the-art manufacturing facility of Sudarshan Telecom is located at the
Hi-Tech electronics zone in Mysore (140 Km from Bangalore). The company has the
capacity to produce 50,000 Km of optical fibre cable and 1.5 million CKM of
PIJF copper telephone cable per year.
RAMA NEWS PRINT AND PAPERS LIMITED
Established in 1996, it is the largest private
sector paper manufacturing facility in India for producing newsprint and paper
for writing and printing. The manufacturing unit is situated at a single
location for manufacturing recycled fibre and virgin pulp. The installed capacity
of the paper mill is 80,000 tonnes per annum of printing and writing paper, and
1, 44,000 tonnes per annum of newsprint or a mix of both.
THE KILKOTAGIRI TEA AND COFFEE ESTATES
COMPANY LIMITED
The company has over 2,000 acres of coffee and tea plantation
in the Nilgiris and Kilkoatagiri in Tamil Nadu. These plantations produce 9
lacs Kgs of Arbica coffee, Robusta and CTC and Orthodox tea.
THE THIRUMBADI RUBBER COMPANY LIMITED
The rubber plantation estate of this company is
spread over 1,800 acres at Mukkom, Calicut (Kozhikode) Kerala. Seven lacs Kgs
of Single and Double Centrifuged Natural Rubber Latex and Natural Dry
Rubber-ISNR 10 and 20 are processed and manufactured by Thirumbadi Rubber
Company.
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 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. 54.57 |
|
|
1 |
Rs. 87.48 |
|
Euro |
1 |
Rs. 70.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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.