1. Summary Information
|
|
|
Country |
|
|
Company Name |
THE PAPER
PRODUCTS LIMITED |
Principal Name 1 |
Mr. Suresh Gupta |
|
Status |
Good |
Principal Name 2 |
Mr. K. C. Narang |
|
|
|
Registration # |
11-145537 |
|
Street Address |
Regent Chambers,
13th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India |
||
|
Established Date |
12.06.1950 |
SIC Code |
-- |
|
Telephone# |
91-22-22820969 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-22832860 |
Business Style 2 |
Seller |
|
Homepage |
Product Name 1 |
Flexible Packaging |
|
|
# of employees |
1485 (Approximately) |
Product Name 2 |
Labeling Technologies |
|
Paid up capital |
Rs.125,383,000/- |
Product Name 3 |
Specialized Cartons |
|
Shareholders |
shareholding of
Promoter and Promoter Group –63.70% Public
shareholding 36.30% |
Banking |
BNP Paribas |
|
Public Limited Corp. |
Yes |
Business Period |
62 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Aa
(71) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company |
Netherlands |
Huhtavefa B.V., Netherlands |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.12.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,847,749,000 |
Current Liabilities |
1,447,431,000 |
|
Inventories |
843,734,000 |
Long-term Liabilities |
221,451,000 |
|
Fixed Assets |
1,739,264,000 |
Other Liabilities |
265,717,000 |
|
Deferred Assets |
0.000 |
Total Liabilities |
1,934,599,000 |
|
Invest& other Assets |
792,130,000 |
Retained Earnings |
3,162,895,000 |
|
|
|
Net Worth |
3,288,278,000 |
|
Total Assets |
5,222,877,000 |
Total Liab. & Equity |
5,222,877,000 |
|
Total Assets (Previous Year) |
4,690,895,000 |
|
|
|
P/L Statement as of |
31.12.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
7,973,007,000 |
Net Profit |
525,989,000 |
|
Sales(Previous yr) |
7,040,100,000 |
Net Profit(Prev.yr) |
481,240,000 |
MIRA
INFORM REPORT
|
Report Date : |
28.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
THE PAPER PRODUCTS LIMITED |
|
|
|
|
Registered
Office : |
Regent Chambers, 13th Floor, Nariman Point, Mumbai –
400021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.12.2011 |
|
|
|
|
Date of
Incorporation : |
12.06.1950 |
|
|
|
|
Com. Reg. No.: |
11-145537 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.125.383 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21011MH1950FLC145537 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT09909E NGPT00356G NGPT01042G PNET03852C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT0086E |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Seller of
Laminates and Converted, Coated / Uncoated Paper and Films, Cartons,
Moralised Films and Polyethylene Films. |
|
|
|
|
No. of Employees
: |
1485 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 13000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company
having fine track. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered
normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Regent Chambers, 13th Floor, Nariman Point, Mumbai-400021, |
|
Tel. No.: |
91-22-22820969 |
|
Fax No.: |
91-22-22832860 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office / Factory 1 : |
LBS Marg, Majiwada, Thane - 400601, Maharashtra, India |
|
Tel. No.: |
91-22-25343691 /25427051/ 25343692/
25343693/ 21735591/ 92/ 93/ 21735551/ 52/ 53 |
|
Fax No.: |
91-22-25340599/ 25427050 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Plot No. 139 and 148, Sri Venkateshwara, Co-operative Industrial
Estate, Bollarum, Medak District, |
|
Tel. No.: |
91-8458-279628/279616 |
|
Fax No.: |
91-8458-279464 |
|
|
|
|
Factory 3 : |
Survey No. 34, Hisa 1/3, At Post Umerkoi, Via Silvassa – 396230,
Dadra and Nagar Haveli, |
|
Fax No.: |
91-260-2681005/2681009 |
|
|
|
|
Factory 4 : |
Plot No. 70-73, Sector – 4,
IIEPantnagar, |
|
Tel. No.: |
91-5944-250183 / 250184 / 250185 |
|
Fax No.: |
91-5944-250186 |
|
|
|
|
Sales Office : |
91, Tel No.:
91-80-23568979/23568980/23342873 Fax No.: 91-80-22296522 Chennai: 5-8, Velachery, Tel No.: 91-44-22592461 Fax No.: 91-44-22452461 Kolkata: Laha Paint House, 5th
Floor, 7, Tel No.: 91-33-22372812/22348281 Fax No.: 91-33-22255654 508-510, Ansal Chambers – II, 6,
Tel No.:
91-11-26194795/26195641/26174297 Fax No.: 91-11-26194389 |
DIRECTORS
As on 31.12.2011
|
Name : |
Mr. Suresh Gupta |
|
Designation : |
Managing Director and Chairman |
|
Qualification : |
B. A. (Hons), MBA |
|
Date of Appointment : |
27.01.1988 |
|
|
|
|
Name : |
Mr. K. C. Narang |
|
Designation : |
Director |
|
Qualification : |
B.A / L.L.B |
|
|
|
|
Name : |
Mr. Arunkumar R. Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. V. Narayanan |
|
Designation : |
Director |
|
Date of Birth/ Age : |
10.03.1941 |
|
Qualification : |
Post graduate in chemistry and diploma in Marketing Management |
|
Date of Appointment : |
30.03.2002 |
|
|
|
|
Name : |
Mr. Jukka Moisio |
|
Designation : |
Director |
|
Qualification : |
MBA |
|
|
|
|
Name : |
Mr. Johann Sippel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Timo Salonen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. K. Dhir |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Palekar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. K. Srinivasan |
|
Designation : |
Chief Executive Director and Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Anand Daga |
|
Designation : |
Company Secretary and Head Taxation |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of
Shareholder |
Total No. of
Shares |
Total Shareholding
as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,833,987 |
2.93 |
|
|
1,833,987 |
2.93 |
|
|
|
|
|
|
38,095,166 |
60.77 |
|
|
38,095,166 |
60.77 |
|
Total shareholding of Promoter and Promoter Group (A) |
39,929,153 |
63.70 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,331,062 |
5.31 |
|
|
35,580 |
0.06 |
|
|
227,745 |
0.36 |
|
|
66,250 |
0.11 |
|
|
3,660,637 |
5.84 |
|
|
|
|
|
|
5,248,766 |
8.37 |
|
|
|
|
|
|
11,669,628 |
18.62 |
|
|
1,817,578 |
2.90 |
|
|
361,428 |
0.58 |
|
|
348,521 |
0.56 |
|
|
12,907 |
0.02 |
|
|
19,097,400 |
30.46 |
|
Total Public shareholding (B) |
22,758,037 |
36.30 |
|
Total (A)+(B) |
62,687,190 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
62,687,190 |
100.00 |
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
|
|
Bodies corporate |
|
|
Directors or relatives of Directors |
|
|
Other top fifty shareholders |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Laminates
and Converted Coated / Uncoated Paper and Films Cartons Moralised Films and
Polyethylene Films. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.12.2011)
|
Particulars |
Unit |
Installed
Capacity ** |
Actual
Production |
|
Laminates and Converted Coated/Uncoated Paper and Films |
Tones |
40990.000 |
29095.726 |
|
Cartons |
Tones |
5000.000 |
3607.768 |
|
Metalised Films $ |
Tones |
1000.000 |
750.984 |
|
Polyethylene Films # |
Tones |
5400.000 |
3394.384 |
* * Installed capacities are as certified by the management and have not been verified by the auditors, as this is a technical matter
$ Utilised for captive consumption
# Utilised for captive consumption. Production does not include job work production.
GENERAL INFORMATION
|
No. of Employees : |
1485 (Approximately) |
|||||||||
|
|
|
|||||||||
|
Bankers : |
· BNP Paribas · Punjab and Sindh Bank · Standard Chartered Bank · The Hongkong and Shanghai · Banking Corporation Limited ·
Union Bank of India |
|||||||||
|
|
|
|||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. V. Ghatalia and Associates Chartered Accountant |
|
|
|
|
Holding Company
: |
·
Huhtavefa B.V., Netherlands |
|
|
|
|
Ultimate Parent
Company : |
·
Huhtamaki Oyj., Finland |
|
|
|
|
Fellow
Subsidiaries : |
·
Huhtamaki New Zealand Limited, New Zealand. ·
Huhtamaki Vietnam Limited, Vietnam ·
Huhtamaki Australia Limited, Australia ·
Huhtamaki Deutschland Gmbh and Company KG.,
Germany ·
Huhtamaki South Africa Limited, South Africa ·
Huhtamaki (Thailand) Limited, Thailand |
CAPITAL STRUCTURE
As on 04.05.2012
Authorised Capital : Rs. 400.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.125.374 Millions
As on 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs. 300.000 Millions |
|
700000 |
12% Redeemable Cumulative Preference Shares |
Rs.100/-
each |
Rs. 70.000
Millions |
|
300000 |
Unclassified Shares |
Rs.100/-
each |
Rs. 30.000 Millions |
|
|
Total |
|
Rs. 400.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62687190 |
Equity Shares |
Rs.2/- each |
Rs. 125.375
Millions |
|
Add |
Forfeited Shares |
|
Rs. 0.009
Millions |
|
|
Total |
|
Rs. 125.383 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
125.383 |
125.383 |
125.383 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3162.895 |
2811.229 |
2490.080 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3288.278 |
2936.612 |
2615.463 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
14.042 |
|
|
2] Unsecured Loans |
221.451 |
225.309 |
225.309 |
|
|
TOTAL BORROWING |
221.451 |
225.309 |
239.351 |
|
|
DEFERRED TAX LIABILITIES |
25.212 |
52.639 |
67.759 |
|
|
|
|
|
|
|
|
TOTAL |
3534.941 |
3214.560 |
2922.573 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1739.264 |
1752.959 |
1987.843 |
|
|
Capital work-in-progress |
158.363 |
33.920 |
45.716 |
|
|
|
|
|
|
|
|
INVESTMENT |
633.767 |
394.481 |
310.359 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
843.734
|
892.068
|
759.294
|
|
|
Sundry Debtors |
1295.927
|
1188.299
|
971.981
|
|
|
Cash & Bank Balances |
222.785
|
108.447
|
40.774
|
|
|
Other Current Assets |
146.589
|
123.166
|
109.890
|
|
|
Loans & Advances |
182.448
|
197.555
|
212.051
|
|
Total
Current Assets |
2691.483
|
2509.535 |
2093.990 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1053.929
|
941.034
|
814.713
|
|
|
Other Current Liabilities |
393.502
|
308.078
|
430.529
|
|
|
Provisions |
240.505
|
227.223
|
270.093
|
|
Total
Current Liabilities |
1687.936
|
1476.335 |
1515.335 |
|
|
Net Current Assets |
1003.547
|
1033.200
|
578.655
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3534.941 |
3214.560 |
2922.573 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7973.007 |
7040.100 |
5776.923 |
|
|
|
Other Income |
136.775 |
83.218 |
79.028 |
|
|
|
TOTAL (A) |
8109.782 |
7123.318 |
5855.951 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
5636.768 |
4965.529 |
3825.421 |
|
|
|
Manufacturing and Operating Expenses |
507.910 |
447.841 |
416.761 |
|
|
|
Personnel Expenses |
642.993 |
591.007 |
493.334 |
|
|
|
Administrative and Selling Expenses |
376.859 |
354.345 |
329.286 |
|
|
|
Foreign Exchange |
(5.797) |
(28.039) |
(15.357) |
|
|
|
TOTAL (B) |
7158.733 |
6330.683 |
5049.445 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
951.049 |
792.635 |
806.506 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.947 |
5.970 |
(0.710) |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
945.102 |
786.665 |
807.216 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
320.456 |
323.967 |
311.467 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
INCOME / (EXPENSES) |
0.000 |
122.809 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
624.646 |
585.507 |
495.749 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
128.074 |
134.794 |
121.964 |
|
|
|
|
|
|
|
|
|
Add |
EXTRAORDINARY
INCOME / (EXPENSES) |
29.417 |
30.527 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
525.989 |
481.240 |
373.785 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1239.271 |
966.246 |
849.862 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
52.599 |
48.124 |
37.379 |
|
|
|
Dividend |
150.449 |
137.912 |
125.374 |
|
|
|
Provision for Dividend |
23.874 |
22.179 |
21.307 |
|
|
|
Proposed special one time dividend |
0.000 |
0.000 |
62.687 |
|
|
|
Provision for Dividend Tax |
0.000 |
0.000 |
10.654 |
|
|
BALANCE CARRIED
TO THE B/S |
1538.338 |
1239.271 |
966.246 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1379.566 |
1088.748 |
1235.785 |
|
|
|
Other Earnings |
31.360 |
21.148 |
26.741 |
|
|
TOTAL EARNINGS |
1410.926 |
1109.896 |
1262.526 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
879.177 |
984.591 |
982.165 |
|
|
|
Stores & Spares |
26.886 |
21.187 |
18.471 |
|
|
|
Capital Goods |
154.977 |
27.003 |
18.825 |
|
|
TOTAL IMPORTS |
1061.04 |
1032.781 |
1019.461 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.39 |
7.68 |
5.96 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2012 |
|
Type |
1st Quarter |
|
Net Sales |
2095.900 |
|
Total Expenditure |
1857.700 |
|
PBIDT (Excl OI) |
238.200 |
|
Other Income |
23.400 |
|
Operating Profit |
261.600 |
|
Interest |
0.000 |
|
PBDT |
261.600 |
|
Depreciation |
84.500 |
|
Profit Before Tax |
177.100 |
|
Tax |
48.000 |
|
Profit After Tax |
129.100 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
129.100 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
6.49
|
6.76
|
6.38 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.83
|
8.32
|
8.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.10
|
13.74
|
12.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.20
|
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.58
|
0.60
|
0.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.70
|
1.38 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
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) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
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 |
PERFORMANCE DURING
THE YEAR
During the year, the net sales were Rs.7973.007 Millions as compared to Rs.7040.100 Millions in the previous year. Profit Before Tax and Extraordinary Items was Rs. 624.646 Millions as compared to Rs.585.507 Millions in the previous year.
After providing for Income Tax of Rs. 128.074 Millions, Net Profit after Tax and Extraordinary Items was Rs. 525.989 Millions. Further, after transferring an amount of Rs. 52.600 Millions to General Reserve, the amount available for appropriation was Rs. 1712.600 Millions including amount brought forward of Rs. 1239.271 Millions of previous year. The Earning per Equity Share (EPS) including extraordinary items was Rs. 8.39 and the Earning per Equity Share (EPS) excluding extraordinary items was Rs. 7.92.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
Twenty years of economic reforms have permanently changed the way India lives. Cumulative effect of changes in the last two decades resulted in per capita income growing at its fastest rate since Independence. They are now the third largest economy in terms of purchasing power. Changes came in doses, in different sectors at different times --- but kept the economy rolling forward. The great Indian middle class supported steep increases in outlay, investment and consumption.
2011 was a very challenging year for India, as in other countries. Turbulence and volatility were the theme of 2011. Even as economies around the world tried to recover from the meltdown of 2008, natural disasters in South America, Japan and Thailand, revolutions in West Asia and North Africa, debt crisis and threat of collapse of the Eurozone have created uncertainties in the global economy. Two of the largest economic powers of the world – Japan and Europe - were badly affected. Signs of a deeper global recession have emerged during the second half of 2011.
While the developed world allowed interest rates to sink to near zero level to energise their economies, emerging economies had to increase interest rates to rein in inflation, especially in food and energy costs. Growth rates in India and China have slowed down.
Despite signs of global economic slowdown, commodity prices and energy costs continue to remain high due to rising crude price and shortages in supplies arising from disruption in production of key raw materials in Japan and Thailand.
While the global developments started exerting pressure on their economy as well, the Indian polity was also beset with scandals that led to a major movement by the Civil Society against corruption in public offi ces. Hence, policy issues took a back stage. The GDP Growth slipped in the second half of 2011 and the media and industry perceives it as “policy paralysis”.
Indian corporates need high growth to sustain investments made/planned in anticipation of an annual 8 – 9% growth in GDP. Slow-down in demand in several sectors led to sluggish volume growth, pushing up costs and drop in margins.
Successive interest rate increases and tightening of liquidity by the RBI forced business houses to do a fi ne balancing between Growth – Profits – Cash. Even fast growing segments, for example, Pharma and FMCG were under pressure and “Profit table Growth” became an operational challenge. Same was the case for PPL.
Huhtamaki Oyj increased its shareholding in the Company from 58.9% to 60.8% during the year, demonstrating Huhtamaki’s confidence in and support to Indian operations.
FINANCIAL OVERVIEW
Sales
The Company ended 2011 with Net Sales of Rs.7973.007 Millions against Rs.7040.100 Millions for 2010 - a value growth of 13.3%. Volumes in Domestic Flexible Laminates and Tube Laminates remained static while Labelling volumes grew by 25%. Exports volumes grew by 19%. The Specialized Cartons business was turned around by optimizing the Product mix.
Other Income
Other Income was Rs. 136.775 Millions against Rs.83.218 Millions for the previous year. It includes Rs. 42.200 Millions of dividend from Mutual Funds, Rs.16.800 Millions from sale of fixed assets (Net), INR 6.000 Millions from write back of fixed assets provision (Net) and INR 3.900 Millions of provision for sales tax written back.
Raw Material
Input costs rose from 70.5% of net sales in 2010 to 70.7% of net sales in 2011.
2011 was marked by product shortages and supply disruptions due to natural disasters during the first half of the year.
Though PET film prices normalized in early 2011 due to new capacities coming on stream, the reduction in costs was more than offset by price increases in specialty resins, solvents, pigments and adhesives which were in tight supply. Even as the supply position began easing towards the later part of 2011, depreciation of the rupee pushed up the cost of imports. Energy costs rose on the back of rising crude prices, shortage in supplies of coal and tariff increases. Manufacturing costs and freight rates rose steeply as a consequence.
OPPORTUNITIES
Growth in consumer spend, growing rural demand, changing demographics, emergence of a fast growing market for convenience goods, retail trade and quest for quality products are expected to sustain increase in the demand for packaging in the medium to long term.
Flexible packaging continues to be the preferred packaging medium as it is light, uses less material, is an efficient packaging format for transportation. It can -- in selective cases -- be made in re-closable format which is easy to store and dispose. Besides, it can protect the product from moisture and contamination, retain aroma and lend gloss and graphic appeal to the consumer.
Flexible Packaging industry is expected to grow in the near future at 15% per annum. It is estimated that Flexible Packaging accounts for about 22% of the total packaging market. Small pack sizes have helped grow the rural demand because of affordable price points.
Food on display – whether frozen or at normal temperature -- will need appropriate packaging. Branded foods use specialized packaging as a promotional medium. This would not only improve business prospects for packaging but also raise the bar for quality packaging. Besides normal known functions, packaging will also play a role in safe transportation, storage and handling as technology improvements take root in the supply chain. Necessity will also spur emerging ideas such as Active Packaging Technologies and use of new Barrier materials.
AWARDS
The Company continues to maintain its record of winning awards for Packaging innovation and excellence. During 2011, 7 IFCA STAR awards were received for speciality laminates, shrink sleeves and specialized cartons.
CONTINGENT LIABILITIES
Rs. In Millions
|
Particular |
31.12.2011 |
31.12.2010 |
|
i) Excise Duty |
|
|
|
a Matters in App |
|
|
|
– Duty |
501.367 |
498.157 |
|
– Penalties |
12.558 |
7.924 |
|
b Show cause notices |
|
|
|
– Duty |
294.866 |
259.674 |
|
– Penalties |
0.009 |
-- |
|
ii) Service Tax |
|
|
|
a Show cause notices |
|
|
|
- Service Tax |
10.889 |
9.788 |
|
b Matters in Appeal |
|
|
|
- Service Tax |
2.105 |
3.060 |
|
- Penalties |
0.070 |
0.685 |
|
iii) Sales Tax demands in appeal |
20.894 |
34.742 |
|
v) Claims against the company not acknowledged as debts Note for (i) to (v): Future cash outflows / uncertainties, if any, in respect of the above are determinable only on receipt of judgements / decisions pending with various forums / authorities. |
12.083 |
12.144 |
|
vi) Bank guarantees issued by bankers on behalf of the Company |
14.862 |
17.567 |
|
vii) Contracts remaining to be executed on capital account and not provided for (net of advances) |
96.147 |
177.764 |
|
viii) Letters of Credit issued by banks on behalf of the company for import of goods |
81.615 |
67.831 |
|
ix) The company has obtained EPCG Licenses issued under and subject to conditions 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 duty concession obtained is Rs 38.315 Millions (Previous year Rs Nil). In accordance with the terms of the EPCG License, the company has an export obligation of Rs 328.832 Millions (Previous year Rs Nil) to be discharged over a period of 8 years. As at the year end the company has discharged export obligation of approximate value of Rs 86.224 Millions (Previous year Rs Nil) |
|
|
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED
31.03.2012.
Rs. In Millions
|
Sr.No. |
Particulars |
Quarter
Ended |
|
|
|
31.03.2012 |
|
|
|
(Unaudited] |
|
|
PARTI |
|
|
1 |
Income from Operations |
|
|
|
a) Gross Sales |
2268.000 |
|
|
b) Less:ExciseDuty&SalesTax |
189.800 |
|
|
c) Net Sales / Income from Operations (la-lb) |
2078.200 |
|
|
d) Other Operating Income |
17.700 |
|
|
Total Income from Operations (net) |
2095.900 |
|
2 |
Expenses |
|
|
|
a) Cost of Materials Consumed |
1401.100 |
|
|
b) (Increase)/Decrease in Inventories of Finished Goods and
Work-in-Progress |
49.200 |
|
|
c) Employee Benefits Expenses |
165.300 |
|
|
d) Depreciation & Amortisation Expenses |
84.500 |
|
|
e) Other Expenses |
242.100 |
|
|
f) Foreign Exchange Loss /(Gain) |
(1.700) |
|
|
Total Expenses |
1940.500 |
|
3 |
Profit/(Loss) from operations before other income, finance cost &
exceptional items (1-2) |
155.400 |
|
4 |
Other income |
21.700 |
|
5 |
Profit/(Loss) from ordinary activities before finance costs and
exceptional items (3+4) |
177.100 |
|
6 |
Finance costs |
- |
|
7 |
Profit/(Loss) from ordinary activities after finance costs but before
exceptional items (5-6) |
177.100 |
|
|
|
|
|
8 |
Exceptional Items |
- |
|
9 |
Profit/(Loss) from Ordinary Activities Before Tax (7+8) |
177.100 |
|
10 |
Tax Expenses |
|
|
|
Provision for - Current Taxes |
50.000 |
|
|
- Deferred Taxes |
(2.000) |
|
11 |
Net Profit/(Loss) from Ordinary Activities After Tax (9-10) |
129.100 |
|
12 |
Extraordinary Income/(Expense) (Net of Tax expenses) |
- |
|
13 |
Net Profit/(Loss) for the Period (11+12) |
129.100 |
|
14 |
Paid Up Share Capital - Equity Face Value Rs.2 each |
125.400 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of
previous accounting year |
|
|
16.i |
Earnings per share (before extraordinary items) (not annualised) |
|
|
|
a) Basic |
2.06 |
|
|
b) Diluted |
2.06 |
|
16.ii |
Earnings per share (after extraordinary items) (not annualised) |
|
|
|
a) Basic |
2.06 |
|
|
b) Diluted |
2.06 |
|
A |
PART II |
|
|
1 |
PARTICULARS OF SHAREHOLDING |
|
|
|
Public Shareholding |
|
|
|
-Number of Shares |
22,758,037 |
|
2 |
-Percentage of Shareholding |
36.30% |
|
|
Promoters & Promoter Group Shareholding |
|
|
|
a. Pledged/Encumbered - Number of Shares |
Nil |
|
|
-Percentage of Shares (as a % of total shareholding of the Promoter
& Promoter group) |
Nil |
|
|
-Percentage of Shares (as a % of the total share capital of the
company) |
Nil |
|
|
b. Non-Encumbered - Number of Shares |
39,929,153 |
|
|
-Percentage of Shares (as a % of total shareholding of the Promoter
& Promoter group) |
100.00% |
|
|
-Percentage of Shares (as a % of the total share capital of the
company) |
63.70% |
Notes:
A. The company's sole business segment is consumer packaging and all other activities of the company are incidental to this business segment.
B. Expansion at Rudrapur has been completed during the quarter and balance equipments have gone into commercial production in Ql-2012.
C. The above results were reviewed by the audit committee and taken on record by the board at it's meeting held on 4th May 2012.
D. The figures of the quarter ended December 31, 2011 are the balancing figures between audited figures in respect of the full financial year up to December 31, 2011 and the unaudited published year to date figures upto September 30, 2011.
E. Previous period figures are appropriately reclassified to conform with current period's classification.
F. Statutory auditors have carried out limited review of the above results.
FIXED ASSETS:
- Land
- Building
- Computer
- Motor
Vehicles
- Furniture
Fixture Office
- Equipment and
Technical Library
- Computer
AS PER WEB SITE
DETAILS
PROFILE:
CORPORATE PROFILE
Perhaps it's a vision; Perhaps destiny, that makes PPL a part and parcel of the Indian packaging industry. Or perhaps it's more - their ability to assimilate and innovate.
The Year 1935 saw a young visionary herald the era of modern flexible packaging in India. The next 66 years saw this dream of PPL's founder, Mr. Sardarilal Talwar, transform itself onto a reality, which totally revolutionized the packaging industry in India.
With consumer packaging sales revenue of Rs 3500 million in the year 2002, PPL is India's leading Consumer Packaging Company
Today PPL offers a wide portfolio of packaging solutions that include Flexible Packaging, 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 Hyderabad; highly skilled and experienced staff, PPL is capable of working with the customer from product inception to the super market and with complete control and confidentiality.
Today, we are proud that we matter to those, for whom packaging matters most. And this is reflected in the impressive client list that includes, Levers, Nestle, Cadbury, Britannia, Glaxo Smithkline, Coca Cola, Perfetti, Dabur, Marico, P and G
In 1999, PPL became a member of the Huhtamaki Packaging Worldwide, a global leader in consumer packaging.
NEWS
PRESS REALEASED
Sales for Twelve Months-2011 up by 13.3%
PBT grows by 6.7% and PAT grows by 9.3%
Mumbai, January 31, 2012: The Paper Products Limited (HUHTAMAKI-PPL), India’s leading flexible packaging company, today announced its audited Financial Results for the year ended December 31, 2011. The company achieved net sales of Rs.7973.000 Millions during the year 2011, representing an increase of 13.3% from net sales of Rs.7040.100 Millions in 2010. The profit from ordinary activities before exceptional items and tax is Rs.624.600 Millions compared to Rs.462.700 Millions in 2010 showing a growth of 35%.
Net profit after tax and extra ordinary income is Rs.525.900 Millions compared to Rs.481.200 Millions of 2010.
The basic and diluted earnings per share is Rs.7.92 compared to Rs. 5.60 in 2010 excluding the extra ordinary and exceptional items. EPS including extra ordinary and exceptional items is Rs.8.39 compared to Rs.7.68 in 2010.
In comparison between quarters, the company has achieved sales of Rs.2073.000 Millions in Q4-2011 representing a increase of 9.2%, over sales of Rs.1898.700 Millions in Q4-2010.The profit before tax and extra ordinary income is Rs.122.100 Millions in Q4-2011 as compared to Rs.157.500 Millions in Q4-2010.
The basic and diluted earnings per share is Rs.1.58 in Q4-2011 compared to Rs. 1.88 in Q4-2010 excluding the extra ordinary and exceptional items. EPS including extra ordinary and exceptional items is Rs.1.58 compared to Rs.2.19 in Q4-2010.
Current year extra ordinary income represents Insurance claim Rs.29.400 Millions (net of Tax of Rs.14.100 Millions) received in Q3-2011.
The Board of Directors have recommended a dividend of Rs.2.40 per equity share of the face value of Rs. 2 each fully paid up subject to approval from shareholders at the forthcoming AGM.
Expansion at Rudrapur is progressing as per schedule, new gravure printer and laminator have gone into commercial production in Q4-2011.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.22 |
|
|
1 |
Rs.89.42 |
|
Euro |
1 |
Rs.71.46 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
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.