|
Report Date : |
05.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
THE WEST COAST PAPER MILLS LIMITED |
|
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|
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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) : |
31.03.2011 |
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Date of Incorporation : |
25.03.1955 |
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Com. Reg. No.: |
08-1936 |
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Capital Investment / Paid-up Capital : |
Rs.775.498 Millions |
|
|
|
|
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 ( 66) |
|
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 |
|
Maximum Credit Limit : |
USD 27000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established an 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 |
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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 |
LOCATIONS
|
Registered Office / Factory : |
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 1 : |
Telecom Cable Plant Sudarshan Telecom, Plot No. 386/387 KIADB, Electronic City
Hebbal, Industrial Area, |
|
Tel. No.: |
91-821-2404060 |
|
Fax No.: |
91-821-2404061 / 2404062 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. S. K. Bangur |
|
Designation : |
Chairman and Managing Director |
|
Qualification: |
B.Com |
|
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 |
|
Designation : |
Director |
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|
Name : |
Mr. K. L. Chandak |
|
Designation : |
Executive Director |
|
Qualification : |
B.Com., F.C.A. |
|
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 |
|
Designation : |
Director |
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|
Name : |
Lt. Gen.[Retd.] Utpal Bhattacharyya |
|
Designation : |
Director |
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|
Name : |
Mr. Krishna Kumar Karwa |
|
Designation : |
Director |
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|
Name : |
Mr. Sanjay Kothari |
|
Designation : |
Director |
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|
Name : |
Mr. M. P. Taparia |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. P K Mundra |
|
Designation : |
V P (Finance) and Company Secretary |
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Management |
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|
Paper
and Duplex Board Division, Dandeli :- |
|
Name : |
Mr. J.K.Mandelia |
|
Designation : |
President (Corporate) |
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|
Name : |
Mr. V. Subbiah |
|
Designation : |
Vice-President
(Marketing) |
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|
|
Name : |
Mr. V.V.Bhatt, |
|
Designation : |
Vice-President
(Marketing) |
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|
Name : |
Mr. S. S. Pal |
|
Designation : |
President
(Technical) |
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|
Name : |
Mr. A. Bhaskar Reddy |
|
Designation : |
President
(Commercial) |
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|
Name : |
Mr. B.K Bhuyan |
|
Designation : |
Vice-President
(Operations) |
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|
|
Name : |
Mr. B.H Rathi |
|
Designation : |
Vice-President
(Operations) |
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|
|
|
Telecom Cable Division |
|
Name : |
Mr. V. Bangur |
|
Designation : |
Chief
Executive Officer |
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|
|
|
Name : |
Mr. P. D. Kulkarni |
|
Designation : |
Vice-President
[Operations] |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
A) Shareholding of
Promoter and Promoter Group |
|
|
|
1) Indian Public |
|
|
|
Individual / Hindu Undivided Family |
5143394 |
8.20 |
|
Bodies Corporate |
27576570 |
43.95 |
|
Sub Total |
32719964 |
52.14 |
|
(2) Foreign |
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
32719964 |
52.14 |
|
B) Public
Shareholding |
|
|
|
1) Institutions |
|
|
|
Mutual Funds/ UTI |
2810063 |
4.48 |
|
Financial Institutions/Banks |
30550 |
0.05 |
|
Insurance Companies |
3021611 |
4.82 |
|
Sub Total |
5862224 |
9.34 |
|
Non Institutions |
|
|
|
a) Bodies Corporate |
7882295 |
12.56 |
|
|
|
|
|
Individuals- |
|
|
|
Individuals shareholders holding nominal share capital up to Rs. 0.100
Million |
12000324 |
19.12 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
3741879 |
5.96 |
|
Any Other
(Specify) |
542222 |
0.86 |
|
Clearing Members |
99575 |
0.16 |
|
Foreign Nationals |
12050 |
0.02 |
|
Trusts |
16531 |
0.03 |
|
Non Resident Indians |
414066 |
0.66 |
|
Sub
Total |
24166720 |
38.51 |
|
Total
Public shareholding (B) |
3028944 |
47.86 |
|
Total
(A)+(B) |
62748908 |
100.000 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub
Total |
-- |
-- |
|
Total
(A)+(B)+(C) |
62748908 |
-- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Writing, Printing and Packaging Paper. |
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||||||||
|
Products : |
Optical fibre cable
Power (6 windmills)
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
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, Uttara Kannada District, Karnataka, India · Oriental Bank of Commerce, Uttara Kannada District, Karnataka, India · State Bank of Mysore, Uttara Kannada District, Karnataka, India · Syndicate Bank, Uttara Kannada District, Karnataka, India · Export- Import Bank of India · ICGI Bank Limited · Industrial Development Bank of India Limited · ICICI Bank Limited · Barclays Bank Plc. Mauritius · IDBI Bank Limited · Barclays Bank Plc |
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Facilities : |
Notes: 1.
The Working Capital facilities from banks are secured by joint hypothecation of
stores, spares, raw materials, stock-in-process, finished goods, book debts
etc., ranking pari-passu inter-se. 2.
Term loans from IFC, Washington, Barclays Bank Plc and ICICI Bank Limited,
are secured by way of hypothecation on all movable assets both present and
future and are secured by equitable mortgage of immovable assets , both
present and future on pari-passu basis. 3.
12.5% Secured Redeemable Non-convertible Debentures and loan from Central
Bank of India were secured by second charge by way of hypothecation on all
movable assets, plant and machinery acquired / to be acquired under the
project on pari-passu basis. 4.
Loans from State Bank of Mysore are secured by second charge on plant and
machinery acquired / to be acquired under the project whereas part of the
loan amounting to Rs.440.000 Millions is also secured by hypothecation of
Cenvat receivables.
|
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|
|
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Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
· Baltliboi and Purohit Chartered Accountants
Cost Auditors ·
Narottam L. Tola Chartered Accountants Legal Advisor
|
|
|
|
|
Group Companies: |
· Sudarshan Telecom, Mysore · Rama News Print and Papers Limited · The Kilkotagiri Tea and Coffee Estates Company Limited · The Thirumbadi Rubber Company Limited |
|
|
|
|
Associates : |
·
Fort Gloster Industries Limited, Kolkata (FGI) ·
Rama Newsprint and Papers Limited
(RNPL) |
CAPITAL STRUCTURE
As on 31.03.2011
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 |
|
662748908 |
Equity Shares |
Rs. 2/- each |
Rs.125.498
Millions |
|
6500000 |
8.5% Cumulative Redeemable Non-convertible
Preference shares |
Rs. 100 each |
Rs. 650.000 Millions |
|
|
Total |
|
Rs.775.498 Millions |
Note:
Out of the above Equity Shares-
1) 7500000 Shares of Rs. 2/- each fully paid
were allotted as Bonus shares by capitalization of General Reserve.
2) Preference shares are redeemable at the end of5 years from the date
of allotment i.e. 30.03.2009, however, the company redeem at anytime at its
option after one year from the date of allotment.
3) Equity share warrants have been forfeited and transferred to reserves
and surplus.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
775.498 |
775.498 |
770.751 |
|
|
2] Share Application Money |
0.000 |
0.000 |
115.000 |
|
|
3] Reserves & Surplus |
5929.275 |
5237.828 |
4792.021 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6704.773 |
6013.326 |
5677.772 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8607.099 |
9395.830 |
9442.094 |
|
|
2] Unsecured Loans |
3517.539 |
2951.314 |
2294.412 |
|
|
TOTAL BORROWING |
12124.638 |
12347.144 |
11736.506 |
|
|
DEFERRED TAX LIABILITIES |
685.897 |
664.909 |
400.192 |
|
|
|
|
|
|
|
|
TOTAL |
19515.308 |
19025.379 |
17814.470 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15283.172 |
8056.256 |
2068.171 |
|
|
Capital work-in-progress |
0.865 |
7468.980 |
11200.452 |
|
|
|
|
|
|
|
|
INVESTMENT |
467.120 |
467.120 |
460.464 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2009.507
|
1790.554
|
1436.828
|
|
|
Sundry Debtors |
731.595
|
342.417
|
434.045
|
|
|
Cash & Bank Balances |
757.881
|
1165.909
|
2844.338
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2274.673
|
1833.121
|
1432.547
|
|
Total
Current Assets |
5773.656
|
5132.001
|
6147.758
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1711.969
|
1799.305
|
1820.216
|
|
|
Other Current Liabilities |
64.181
|
61.847
|
94.978
|
|
|
Provisions |
233.355 |
237.826 |
147.181 |
|
Total
Current Liabilities |
2009.505
|
2098.978
|
2062.375
|
|
|
Net Current Assets |
3764.151
|
3033.023
|
4085.383
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19515.308 |
19025.379 |
17814.470 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10647.300 |
6239.071 |
6197.514 |
|
|
|
Other Income |
124.848 |
63.224 |
78.827 |
|
|
|
TOTAL (A) |
10772.148 |
6302.295 |
6276.341 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Cost |
3749.128 |
2230.290 |
2318.290 |
|
|
|
Manufacturing Expenses |
3592.611 |
1997.266 |
1947.067 |
|
|
|
Payments to Employees |
616.572 |
551.761 |
545.268 |
|
|
|
Administrative
Expenses |
403.552 |
291.377 |
309.795 |
|
|
|
Variation in Stock of Finished
Goods |
(42.227) |
57.602 |
(125.139) |
|
|
|
TOTAL (B) |
8319.636 |
5128.296 |
4995.281 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2452.512 |
1173.999 |
1281.060 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
560.573 |
121.573 |
77.441 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1891.939 |
1052.426 |
1203.619 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
961.055 |
237.705 |
199.028 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
930.884 |
814.721 |
1004.591 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
30.066 |
267.700 |
99.209 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
900.818 |
547.021 |
905.382 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
330.174 |
49.321 |
31.658 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividends on Preference Shares |
55.250 |
55.250 |
0.303 |
|
|
|
Proposed Dividend on Equity Shares |
125.498 |
125.498 |
125.498 |
|
|
|
Tax on Proposed Dividends |
28.623 |
30.718 |
21.380 |
|
|
|
Capital Redemption Reserve Account |
650.000 |
0.000 |
650.000 |
|
|
|
General Reserve |
90.082 |
54.702 |
90.538 |
|
|
BALANCE CARRIED
TO THE B/S |
281.539 |
330.174 |
49.321 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
546.408 |
(208.541) |
244.614 |
|
|
|
Commission Earnings |
546.408 |
(208.541) |
244.614 |
|
|
|
Other Earnings |
|
|
|
|
|
TOTAL EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.36 |
8.80 |
15.74 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st Quarter |
30.09.2011 2nd
Quarter |
31.12.2011 3rd
Quarter |
|
Net Sales |
2877.080 |
3422.740 |
3294.660 |
|
Total Expenditure |
2255.790 |
2708.750 |
2822.760 |
|
PBIDT (Excl OI) |
621.290 |
713.990 |
471.900 |
|
Other Income |
1.730 |
1.120 |
2.560 |
|
Operating Profit |
623.020 |
715.110 |
474.460 |
|
Interest |
129.630 |
186.600 |
208.420 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
493.390 |
528.510 |
266.040 |
|
Depreciation |
250.660 |
571.150 |
571.150 |
|
Profit Before Tax |
242.730 |
(42.640) |
(305.110) |
|
Tax |
87.980 |
(14.660) |
(88.610) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
154.750 |
(27.980) |
(216.500) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
154.750 |
(27.980) |
(216.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.36
|
8.68 |
14.43 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.74
|
12.93 |
16.21 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.42
|
6.18 |
12.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.14 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.11
|
2.40 |
2.43 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.87
|
2.44 |
2.98 |
LOCAL AGENCY FURTHER INFORMATION
Performance
The working results
of the Company reflect a crystallised narrative of its strong and rapid pace as
well as its innate and intrinsic strength for sustained future growth. The
Company has been able to register fairly satisfactory working results compared
to the previous year due to expanded capacity of paper production. Teething
problems associated with the operation of the equipment installed under the
said expansion programme have been jointly overcome by the Company and the
suppliers. The Company has been able to absorb and adapt to the hike in the
costs of inputs: Raw Material, Chemicals, Coal, Furnace Oil, among others. It
is to be noted that the results have been achieved in spite of the formidable
odds posed by the hike in costs. It is expected that the full harvest of the
expansion programme will be reaped in the course of the ensuing year for which
indications are positive.
The Company posted
gross profit of Rs. 1891.900 Millions as against Rs. 1052.400 Millions in the
previous year – higher by Rs. 839.500 Millions (80%) whereas net profit also
increased from Rs. 547.000 Millions to Rs. 900.800 Millions - by Rs. 353.800
Millions (65%).
Division-Wise Performance
Paper and Duplex Board Divisions
The production of
paper, paperboard and Elemental Chlorine Free (ECF) bleached Hardwood Pulp was
2,67,005 MT (including 95,475 MT on new Paper M/c No.VI) against 1,73,638 MT in
the last year, higher by 93,367 MT. The sale of paper, paperboard and ECF
bleached Hardwood Pulp was 2,67,994 MT against 1,75,194 MT in the last year,
higher by 92,800 MT.
The turnover
during the year was Rs. 10796.300 Millions as against Rs. 6118.100 Millions in
the previous year (both inclusive of excise duty), higher by Rs.4678.200
Millions, due to increased production/sale.
Excise duty on paper
and paperboard increased from 4% to 5% with effect from March 1, 2011, and
passed on to the market.
Cable Division – Mysore
Production and
sales of optical fibre cable in terms of quantity increased during the
year to 27,951 km and 27,985 km, as against
18,003 km and 17,790 km in the previous year. Sales of optical fibre cable in
terms of value, however, reduced to Rs. 277.500 Millions as against Rs. 381.300
Millions (both inclusive of excise duty) during the previous year on account of
lower demand of higher sizes and stiff competition among the private telecom
operators which resulted in lower sales realisation. Part of the facilities of
the non-operating PIJF plant were utilized for manufacturing Control Cable. Its
production and sale was 248 kms, worth Rs.12.500 Millions. Total turnover of
the cable division during the year was Rs. 290.000 Millions as against Rs.
381.300 Millions (both inclusive of excise duty) during the previous year.
Management Discussion and Analysis
Overview
The dominant theme
in the global paper industry is one of consolidation, leading to a
concentration of capacity in the hands of fewer companies.
Countries like
China and Indonesia have a per capita consumption estimated at 42kg and 23kg
respectively. Developed countries like the US, Canada, Germany and the UK enjoy
higher per capita consumption of 300 kg, 243 kg, 233 kg and 202 kg,
respectively
Outlook
Paper division
The Indian paper
industry is estimated to grow at a CAGR of 10.7% from 317 billion 2009-10 to
Rs. 526 billion by 2014-15, catalysed by the growth in the country’s service
sector. The 6,00,000 TPA copier paper market is expected to grow at 14% over
the next few years. The printing and publishing industry is expected to grow at
CAGR of 15% over the next few years, increasing the demand for overall paper
industry.
Cable division
OFC demand is
projected to grow by 20% to over 6 million FKM in the current year. The
increase in the demand for OFC will be driven by the use of cable TV, roll out
of broadband networks using OFC and the use of OFC for laying and expanding
national long distance networks. As OFC demand increases and no major
capacities are expected, the division’s performance is set to improve further.
The Company has been successful in making inroads into the export market in
Europe, Vietnam, Bangladesh, Egypt and Dominican Republic and focuses its
efforts in this direction.
Diversification and new product development
Sudarshan Telecom
set up the manufacture of PIJF copper telephone cables in 2002, unfortunately
the demand started due to the focus of market presence comprises a dealership
network across 38 cities in 15 states telecom operators on wireless telephony.
The demand shifted towards optical fibre cables and ultimately the PIJF plant
operation was suspended during 2007. During the year , the Company took a
decision to restart the use of copper telephone cable infrastructure with
marginal investments to manufacture control cables, railway signalling and quad
cables. Accordingly, all the required balancing equipment was installed and
obtained BIS approval for manufacturing control cable and approval from
Railways for manufacturing of signalling and quad cables. We have started
getting orders for control, signalling and quad cables. Control cable worth Rs.
1.26 crore was manufactured and sold in 2009-10 and the order worth of Rs. 4.10
crore is pending for dispatch as on March 31, 2011.
Company overview
Subject is the
flagship company of the SK Bangur Group (incorporated in 1955). The Company is
one of the leading integrated paper and paperboard manufacturing companies in
India with an installed capacity of 3,20,000 tonnes per annum of paper. The
Company manufactures the following:
Writing and
printing paper (uncoated, surface size paper and specialty paper) and
industrial paper The Company operates in various segments – paper/paperboard
(including duplex board) at Dandeli and telecommunication cables at Mysore,
apart from wind mills (1.75 MW) in (packaging paper).
Within the uncoated
paper segment, the Company manufactures maplitho paper (commercial printing),
MG poster
paper and board,
creamwove paper (notebooks), maplitho deluxe (computer stationery), MG
(Manila/Bristol board), HL (stiffener paper used by FMCG companies to support
wrapping).
The surface size
paper manufactured by the Company comprised copier paper, surface-sized papers
with additives, while specialty paper comprised MICR cheque paper, parchment
paper and security paper.
Located in Dandeli
(North Karnataka), the Company’s manufacturing facilities are spread across 240
acres with the river Kali flowing close by. The Company invested in a
sophisticated ECF pulp manufacturing capacity in a state-ofthe- art,
fully-automated and fullyintegrated paper manufacturing line. The Company is
self-sufficient in power, with thermal power generation capacity of 70.3 MW,
apart from 12.84 MW multi-fuel-based power plants; there is a surplus of 20 MW
which the Company can export once permission to lay a 110 KVA line is granted
by the government
The Company’s
registered office is in Dandeli, corporate office in Bangalore, and four zonal
offices at Mumbai Maharashtra), Kolkata
(West Bengal), Chennai (Tamil Nadu) and New Delhi (Delhi). The Company’s
well-established Tamil Nadu.
Contingent
Liabilities not provided in respect of:
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
a) Bank Guarantee outstanding |
359.966 |
195.810 |
|
b) Letters of credit outstanding |
268.524 |
414.443 |
|
c) Corporate Guarantees given by the company to the bankers and
Institution |
1206.754 |
1213.242 |
|
d) Deman |
551.865 |
632.269 |
|
Deman |
3.066 |
3.066 |
|
e) Claims against the
Company, not acknowledged as debts |
210.000 |
0.000 |
Unaudited
Financial Results for the Quarter Ended 31.12.2011
|
Particulars |
Quarter Ended |
Nine Month
Ended |
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
Unaudited |
Audited |
||
|
Net Sales/ Income from Operations |
3284.861 |
3413.536 |
9560.538 |
|
Other Operating Income |
9.804 |
9.203 |
33.943 |
|
Total
Income from Operations |
3294.665 |
3422.739 |
9594.481 |
|
|
|
|
|
|
Expenditure: |
|
|
|
|
(Increase) /Decrease in stock |
184.402 |
(116.466) |
(303.514) |
|
Consumption of Raw Materials |
1283.835 |
1332.202 |
3704.837 |
|
Purchase of traded goods |
2.421 |
109.111 |
111.532 |
|
Employees Cost |
170.453 |
163.558 |
497.703 |
|
Depreciation |
571.151 |
571.151 |
1713.453 |
|
Other Expenditure |
1181.654 |
1220.340 |
3699.116 |
|
Total |
3393.916 |
3279.896 |
9423.127 |
|
|
|
|
|
|
Profit
from Operation before Other Income, Interest and Exceptional Items |
(99.251) |
142.843 |
171.354 |
|
Other Income |
2.558 |
1.122 |
5.412 |
|
Profit
before Interest and Exceptional Items |
(96.693) |
143.965 |
176.766 |
|
Interest and Finance Charges (Net) |
208.422 |
186.600 |
524.650 |
|
Profit
after Interest but before Exceptional Items |
(305.115) |
(42.635) |
(347.884) |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
Profit
before Tax |
(305.115) |
(42.635) |
(347.884) |
|
Tax Expense a)
Current Tax (including FBT in previous periods) b)
MAT Credit Entitlement c)
Deferred Tax |
0.000 0.000 (88.612) |
0.000 0.000 (146.56) |
0.000 0.000 (94.089) |
|
Net
Profit after Tax |
(216.503) |
(279.79) |
(253.795) |
|
Paid up Equity share capital (Face value
Rs. 2 per share) |
125.498 |
125.498 |
125.498 |
|
Reserves excluding Revaluation Reserves |
|
|
|
|
Earnings Per
Share |
|
|
|
|
Basic and Diluted Eps For The Period (Not Annualised) And For The
Previous Year/Period |
(3.45) |
(0.45) |
(4.04) |
|
|
|
|
|
|
Public
Shareholding |
|
|
|
|
Number Of Shares |
30028944 |
30154044 |
30028944 |
|
Percentage Of Shareholding |
47.86% |
48.06% |
47.86% |
|
|
|
|
|
|
Promoters And
Promoter Group Shareholding |
|
|
|
|
Pledged/
Encumbered |
|
|
|
|
Number Of Shares |
-- |
-- |
-- |
|
Percentage Of Shares (As A % Of The Total Shareholding Of Promoter And
Promoter Group) |
-- |
-- |
-- |
|
Percentage Of Shares (As A % Of The Total Share Capital Of The Company) |
-- |
-- |
-- |
|
|
|
|
|
|
Non-Encumbered |
|
|
|
|
Number Of Shares |
32719964 |
32594864 |
32719964 |
|
Percentage Of Shares (As A % Of The Total Shareholding Of Promoter And
Promoter Group) |
100.00 |
100.00 |
100.00 |
|
Percentage Of Shares (As A % Of The Total Share Capital Of The Company) |
52.14 |
51.94 |
52.14 |
Notes:
·
Paper and Paper Board production was 74587 MT as
against 74526 MT in the corresponding quarter of previous year.
·
Lower paper production on account of breakdown in power
plant, reduction in sales price and increase in cost of raw material, coal,
furnace oil, etc. have impacted the working results.
·
Notional loss of Rs.18.378 Millions on restatement
of foreign currency working capital loans is charged to profit and loss account
(Rs.33.010 Millions notional loss for the nine months period ended on
31.12.2011) and exchange rate variation on foreign currency project loans being
Rs.1307.766 Millions as on 31.12.2011 is added to fixed assets.
·
Depreciation on Plant and Machinery, Effluent
Treatment Plant and Roads and Drainage of Paper and Paper Board Division has
been changed from SLM Method to WDV Method w.e.f. 01.04.2011 due to which
depreciation is higher by Rs.320.465 Millions for the quarter and by Rs.961.394
Millions for the nine months period ended on 31-12-2011.
·
The 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.
·
The company has received and resolved 2 investor
complaints during the quarter ended 31st December 2011. No complaints were
pending at the beginning and end of the quarter.
·
The above financial results have been reviewed by
the Audit Committee and approved by the Board of Directors at their meeting
held on 14th February 2012.
·
The Statutory Auditors have carried out a
"Limited Review" of the above results.
·
The figures of the previous period have been
regrouped wherever necessary.
Fixed Assets:
·
·
·
·
·
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
·
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 :
The market
survey revealed that the amount of compensation sought by the subject is fair
an
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.
The 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.49.35 |
|
|
1 |
Rs.78.68 |
|
Euro |
1 |
Rs.65.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--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 |
|
66 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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.