MIRA
INFORM REPORT
|
Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
JK PAPER LIMITED (w.e.f. 07.05.2002) |
|
|
|
|
Formerly Known
As : |
CENTRAL PULP MILLS LIMITED |
|
|
|
|
Registered
Office : |
P.O. Central Pulp Mills, Fort Songarh, District Tapi – 394660, Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
04.07.1960 |
|
|
|
|
Com. Reg. No.: |
04-018099 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 1366.500
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21010GJ1960PLC018099 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
SRTJ00098A |
|
|
|
|
Legal Form : |
Public Limited Liability
Company. The company’s shares are
listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Paper and Paper Related Products. |
|
|
|
|
No. of Employees
: |
500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 34000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well established company having a satisfactory track
record. There appears dip in the profitability during 2011-2012. However, general financial position seems to be strong. Performance
capability is high. Trade relations are reported to be fair. Business is
active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealing 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long term rating : (FITCH) BBB+ |
|
Rating Explanation |
The default risk are currently low. The capacity
for payment of financial commitment is considered adequate. |
|
Date |
October 3, 2012 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 : |
P.O. Central Pulp Mills, Fort Songadh, District Tapi – 394660,
Gujarat, India |
|
Tel. No.: |
91-2624-220228 / 220278-80 |
|
Fax No.: |
91-2624-220138 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head / Administrative Office : |
Nehru House, 3rd Floor, 4 Bahadur Shah Zafar Marg, |
|
Tel. No.: |
91-11-23311112 / 41011116 |
|
Fax No.: |
91-11-23712680 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
JK Paper Mills, Jaykapur, Rayagada – 765017, Orissa, India |
|
Tel. No.: |
91-6856-233303 / 233770 / 233171 |
|
Fax No.: |
91-6856-222238 |
|
|
|
|
Zonal Offices : |
Located at : Ř
New Delhi Ř
Chennai Ř
Mumbai Ř
Kolkata |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Hari Shankar Singhania |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Harsh Pati Singhania |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Om Prakash Goyal |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Arun Bharat Ram |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dhirendra Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. H. Dalmia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. V. Kanoria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shailesh Haribhakti |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Pathak |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Udayan Bose |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinita Singhania |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Wim Wienk |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Suresh Chander Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1050000 |
0.77 |
|
|
68633953 |
50.24 |
|
|
69683953 |
51.01 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
69683953 |
51.01 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1000 |
0.00 |
|
|
1155476 |
0.85 |
|
|
6093317 |
4.46 |
|
|
71166 |
0.05 |
|
|
7690000 |
5.63 |
|
|
7690000 |
5.63 |
|
|
15010959 |
10.99 |
|
|
|
|
|
|
11789305 |
8.63 |
|
|
|
|
|
|
9217116 |
6.75 |
|
|
10747051 |
7.87 |
|
|
20172241 |
14.77 |
|
|
2841901 |
2.08 |
|
|
2500000 |
1.83 |
|
|
14830340 |
10.86 |
|
|
51925713 |
38.01 |
|
Total Public shareholding (B) |
66936672 |
48.99 |
|
Total (A)+(B) |
136620625 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
136620625 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Paper and Paper Related Products. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Paper and Board including Pulp for sale |
Tones |
240000 |
286019* |
|
|
|
|
|
* includes 27525 MT transferred to Packaging
Board
GENERAL INFORMATION
|
No. of Employees : |
500 (Approximately) |
|||||||||||||||||||||
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|
|
|||||||||||||||||||||
|
Bankers : |
Ř
State Bank of India, Bahadur Shah Zafar Marg, New
Delhi, India Ř
Axis Bank Limited Ř
Canara Bank Ř
IDBI Bank Limited |
|||||||||||||||||||||
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|
|||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Associates : |
JK Enviro-Tech Limited |
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|
|
|
Subsidiaries (Wholly Owned) : |
v Songadh Infrastructure and Housing Limited v
Jaykaypur Infrastructure and Housing Limited |
|
|
|
|
|
Habras International Limited |
CAPITAL STRUCTURE
AFTER 08.08.2012
Authorised Capital : Rs. 5000.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 1366.206
Millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs. 2000.000 Millions |
|
30000000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs. 3000.000 Millions |
|
|
Total |
|
Rs. 5000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
136620625 |
Equity Share |
Rs.10/- each |
Rs. 1366.200
Millions |
|
3000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs. 0.300
Million |
|
|
Total |
|
Rs. 1366.500 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 |
1366.500 |
782.400 |
783.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7148.100 |
5106.600 |
3973.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8514.600 |
5889.000 |
4757.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8073.100 |
4124.000 |
3921.500 |
|
|
2] Unsecured Loans |
1688.800 |
1259.600 |
1560.600 |
|
|
TOTAL BORROWING |
9761.900 |
5383.600 |
5482.100 |
|
|
DEFERRED TAX LIABILITIES |
1218.200 |
1284.000 |
1345.600 |
|
|
|
|
|
|
|
|
TOTAL |
19494.700 |
12556.600 |
11585.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8070.600 |
8444.600 |
8795.800 |
|
|
Capital work-in-progress |
5837.500 |
938.900 |
208.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
729.600 |
827.700 |
419.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1641.900
|
1275.300
|
1268.900
|
|
|
Sundry Debtors |
1441.600
|
1078.700
|
1044.900
|
|
|
Cash & Bank Balances |
1476.900
|
308.900
|
78.700
|
|
|
Other Current Assets |
564.300
|
0.000
|
0.000
|
|
|
Loans & Advances |
4066.900
|
1717.800
|
1609.800
|
|
Total
Current Assets |
9191.600
|
4380.700
|
4002.300
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
1427.000
|
1415.800 |
1157.113 |
|
|
Other Current Liabilities |
2618.400
|
561.890
|
1585.400
|
|
|
Provisions |
289.200
|
67.010
|
257.700
|
|
Total
Current Liabilities |
4334.600
|
2044.700
|
1843.100
|
|
|
Net Current Assets |
4857.000
|
2336.000
|
2159.200
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
9.400 |
2.700 |
|
|
|
|
|
|
|
|
TOTAL |
19494.700 |
12556.600 |
11585.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13282.600 |
12307.200 |
11055.300 |
|
|
|
Other Income |
253.000 |
148.200 |
27.700 |
|
|
|
TOTAL (A) |
13535.600 |
12455.400 |
11083.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material |
7214.000 |
5846.900 |
|
|
|
|
Purchase of Stock in trade |
722.000 |
333.500 |
|
|
|
|
Changes in Inventories of Finished Goods and WIP |
(161.300) |
103.700 |
|
|
|
|
Employee Benefits Expenses |
1261.400 |
1300.100 |
|
|
|
|
Other Expenses |
2736.400 |
2156.800 |
|
|
|
|
TOTAL (B) |
11772.500 |
9741.000 |
8628.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1763.100 |
2714.400 |
2454.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
512.500 |
513.700 |
484.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1250.600 |
2200.700 |
1969.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
729.400 |
716.200 |
700.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
521.200 |
1484.500 |
1269.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
28.000 |
420.300 |
359.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
493.200 |
1064.200 |
910.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2809.300 |
2029.800 |
1319.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
0.000 |
176.000 |
156.600 |
|
|
|
Debenture Redemption Reserves |
0.000 |
229.400 |
0.000 |
|
|
|
Debenture Redemption Reserves Written back
|
0.000 |
(229.400) |
0.000 |
|
|
|
Capital Redemption Reserves |
0.000 |
1.100 |
2.100 |
|
|
|
Corporate Dividend Tax |
0.000 |
29.200 |
1745.100 |
|
|
BALANCE CARRIED
TO THE B/S |
3302.500 |
2809.300 |
2029.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
436.100 |
422.534 |
290.543 |
|
|
|
Interest |
0.000 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
436.100 |
422.534 |
290.543 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2426.500 |
1183.971 |
1081.053 |
|
|
|
Stores & Spares |
189.200 |
148.587 |
149.419 |
|
|
|
Capital Goods |
2821.000 |
126.525 |
77.671 |
|
|
|
Others |
545.400 |
244.636 |
245.200 |
|
|
TOTAL IMPORTS |
5982.100 |
1703.719 |
1553.343 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
4.41 |
13.62 |
11.31 |
|
|
|
Diluted |
3.46 |
13.63 |
11.33 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
3451.800 |
3577.600 |
3685.200 |
|
Total Expenditure |
3025.200 |
3282.800 |
3465.900 |
|
PBIDT (Excl
OI) |
426.600 |
294.800 |
219.300 |
|
Other Income |
50.900 |
39.000 |
40.100 |
|
Operating
Profit |
477.500 |
333.800 |
259.400 |
|
Interest |
130.000 |
128.200 |
132.400 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
347.500 |
205.600 |
127.000 |
|
Depreciation |
182.000 |
184.700 |
184.900 |
|
Profit
Before Tax |
165.500 |
20.900 |
(57.900) |
|
Tax |
24.100 |
(25.700) |
(37.100) |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
141.400 |
46.600 |
(20.800) |
|
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 |
141.400 |
46.600 |
(20.800) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.64
|
8.54 |
8.21
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.92
|
12.06 |
11.48
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.10
|
11.57 |
9.92
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.25 |
0.27
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.15
|
0.91 |
1.15
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.12
|
2.14 |
2.17
|
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) |
No |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Passport No of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if
available |
Yes |
UNSECURED LOANS
DETAILS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Short Term Loans from Banks |
0.000 |
|
|
Buyer’s Credit facilities from Bank |
233.700 |
|
|
Public Deposits |
9.100 |
|
|
Foreign Currency Term Loans from Bank |
24.300 |
|
|
Foreign Currency Convertible Bonds (FCCB’s) |
2391.900 |
|
|
Public Deposits |
203.400 |
|
|
Less: Current maturities of Long Term Borrowings |
1173.600 |
|
|
Total |
1688.800 |
1259.600 |
|
Notes: (a) Term Loans of Rs. 3074.300 Millions (FIs – Rs. 736.300 Millions
and Banks Rs. 2338.000 Millions) are secured by means of first pari passu mortgage/charge
on the fixed assets of the Company. Out of the above Term Loan Rs. 1076.500
Millions (FIs - Rs. 702.500 Millions and Banks Rs. 374.000 Millions) are
further secured by second charge on the current assets of the Company. These
Term Loans are/shall be repayable as under :- (i) Term Loans aggregating to Rs. 224.600 Millions are repayable in 3
equal annual installments from June-2012 to June-2014, (ii) Term Loan of Rs. 378.600 Millions is repayable in 9 half-yearly
installments from June-2012 to June-2016, (iii) Term Loans aggregating to Rs. 890.600 Millions are repayable in
total 28 equal half-yearly installments from June-2012 to June-2018, (iv) Term Loans aggregating to Rs. 1301.700 Millions are repayable in total
51 equal quarterly installments from April-2012 to March-2018, (v) Term Loans aggregating to Rs. 44.800 Millions are repayable in
June 2012, (vi) Term Loan of Rs. 234.000 Millions is repayable in 26 equal
monthly installments from April-2012 to May-2014. (b) Terms Loans of Rs. 3935.300 Millions (FIs – Rs. Nil, Banks Rs.
3935.300 Millions) are secured by means of first pari passu mortgage/charge
on the fixed assets, both present and future, of Unit JKPM of the Company.
These Term Loans are/shall be
repayable as under :- (i) Term Loans aggregating to Rs. 950.000 Millions are repayable in
total 25 equal quarterly installments from September-2014 to December-2020, (ii) Term Loans aggregating to Rs. 2985.300 Millions are repayable in
total 50 equal half-yearly installments from March-2013 to March-2023, (c) Certain charges have been created against which loan disbursement
partially/yet to be availed. (d) Certain charges are in the process of satisfaction. (e) Secured Terms Loans from Financial Institutions and Banks include
Rs. 4035.700 Millions foreign currency loans. (f) Un-secured Term Loan from Bank of Rs. 24.300 Millions is repayable
in 4 equal half yearly installments from Apr-2012 (g) FCCB’s of EURO 35 Million @ 6.455% issued on 30th May, 2011 are
convertible into equity shares of the Company at an initial conversion price
of Rs. 65 per share, subject to price adjustment as per agreement, after 3
years and 6 months from the date of issue. If not converted then the FCCBs
will be redeemed at par between 15th May 2016 to 15th May 2018 in 5 half
yearly installments. (h) Public Deposits are due for repayment in 2012-13, 2013-14 and
2014-15. |
||
COMPANY HISTORY:
Subject (formerly Central Pulp Mills), a member of HS Singhania group is
originally promoted by Parkhe Group of Pune to manufacture Paper and Paper
products. The company which fell sick and referred to BIFR was taken over by JK
Corp limited of the HS Singhania Group in 1992. JK Corp. holds 44.76% in the
equity of this company as on Nov 6, 2003. The company has turnaround in a short
period of time with the rehabilitation package by HS Singhania Group companies
JK Corp Limited Industries. Subject today has an combined installed capacity of
150000 tpa with two integrated Paper Mills at Mills, Orissa (Inst. Cap 100000
tpa) and Central Pulp Mills,
PERFORMANCE REVIEW
The Company’s
Sales and Other Income during the year was Rs. 15571.000 Millions, Operating
Profit (PBIDT) Rs. 1763.100 Millions and PAT stood at Rs. 493.200 Millions. The
Company’s production was 2,83,038 tonnes and sales increased to 2,77,599 tonnes
as against 2,67,081 tonnes.
Operating Profit
(PBIDT) was considerably impacted due to increase in raw material price, lower
receipt of linkage coal resulting in purchase of open market coal at much
higher price and increase in other input costs. The Company was able to offset
some of these cost increases by higher productivity and efficiencies. However,
market conditions did not favour increase in product prices to fully compensate
the cost increases during the year.
International
hardwood pulp prices declined from a level of US $ 770/MT in April 2011 to as
low as USD 550/MT during December 2011. Since then it has increased again by
USD 150/MT. However, much of the benefits due to the drop in pulp prices were
neutralized by the depreciation in rupee vis-ŕ-vis the US Dollar.
JK Paper has been
constantly creating value with its Brand driven strategy and the brands of the
Company are synonymous with premium quality paper. It is the ability to
understand customers’ aspirations and develop products for those needs and
fulfill them which have given us the “first mover advantage” in many products.
Their long
standing relations with channel partners also helped us to withstand competition.
The Company is the market leader in office papers and among the top 2 players
in coated paper and high end packaging board segment.
The Company was
able to increase acreage under farm forestry significantly in 2011-12 by
aggressive efforts. This will augment supplies of wood from our nearby
catchment area and help us reduce transportation of wood from long distances.
The Company
carried out some upgradation and de-bottlenecking in its Packaging Board plant
at Unit CPM which enhanced its capacity from 60,000 tpa to 84,000 tpa. The
Company’s factories have been consistently operating at more than 100% of its
stated capacities. This is due to continuous improvements and modernisation of
plant and machinery. In order to better refl ect the current production
capabilities, the management considers it appropriate to re-state the installed
capacity at 2,90,000 tpa.
INDUSTRY SCENARIO
Office Papers: The market for
office papers was adversely affected last year due to general economic slowdown
and the consequent lesser spends by corporate and other sectors. Bunching of capacity
additions in recent years added to the market pressure. However, there are
signs of improvement and sales have picked up to some extent in the last
quarter of the year. This trend is likely to continue in the coming quarters.
Coated Papers: The two-side
coated segment where your Company operates exhibited a growth of about 12%
during the year and continues to grow robustly due to high growth in corporate
retailing and shift in marketing and branding methodology. However, the prices
were adversely impacted during much of the year due to higher imports from
Packaging Board: The overall
segment has grown at around 9-10% during the last year. The main reasons for
this increase in demand are rising disposable incomes and retail boom both of
which call for superior grade packaging. This is resulting in shifting of lower
quality packaging board to premium quality packaging board. The Company opines
that these trends are likely to sustain in the medium to long term thus making
this sector poised for growth. JK Paper has been focusing on the upper end of
Packaging Board which is benefitting from the shifts.
EXPANSION
JK Paper’s
expansion cum modernization project is on track. It envisages enlarging the
annual capacity from the current 2,90,000 tonnes to 4,55,000 tonnes per annum by
early 2013. The Rs. 1,6530.000 Millions expansion project achieved financial
closure with financing done through a mix of funding viz: Rights Issue, FCCBs,
Internal Accruals, Rupee-debt from Indian Banks and Forex-debt from
multilateral development funding institutions.
This expansion
plan will enable us to retain our leadership position in the Office Paper
segment. New production line will manufacture multi-purpose cut size Office
Papers. The machines from
The Company had
also issued unsecured and unlisted Foreign Currency Convertible Bonds (FCCBs)
aggregating to Euro 35 Million (equivalent to Rs. 2261.400 Millions) to
European Development Financial Institutions in May, 2011. Various loans have
also been negotiated from domestic and international banks/ institutions and
the project finance stands fully tied-up.
CUSTOMER-IN
CULTURE AND QUALITY
JK Paper has been
committed to meeting customers needs by offering them a range of products that
confirm to their varied requirements. They have been doing this through regular
and continual up gradation in product quality, modernization and adoption of
latest technology and processes, and strict adherence to quality standards and
pro active customer interaction.
Customers are
periodically invited to the Mills for interaction with our workmen and staff.
This makes the Company staff more quality conscious and customer focused. The
Company has been taking up regular audits to identify the areas for improvement
and take appropriate corrective and preventive measures. This has helped to
understand customer preference and prepare ourselves to stay ahead of
competition. Last year, we developed new products for specific segments like
C1S coated boards (Natural shade), Playing Card Boards, and Up gradation of JK
Easy copier shade etc.
AWARDS AND
RECOGNITION
It is a matter of
great satisfaction that your Company has continued to be conferred several
awards in recognition of its commitments to excellence, efficiency and
environment friendliness.
Unit JKPM has been
awarded the following;
(a) Greentech
Environment Excellence Award for Outstanding achievement in Safety Management.
(b) Silver Award
in Paper Sector from Greentech Foundation.
(c) National Award
for Excellence in Energy Management 2011 as an “Energy Efficient Unit” from
Confederation of Indian Industries (CII), and
(d) Second Prize
for “Best Practices in Industrial Relations” from Confederation of Indian
Industries (CII),
Unit CPM has been
awarded the following;
(a) CII National
HR Excellence Award – Strong Commitment to HR Excellence, 2011,
(b) Greentech
Foundation CSR Gold Award – 2011,
(c) Greentech
Safety Gold Award – 2011, and
(d) South
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
Global economic
recovery has seen a mixed pattern. While US has shown modest recovery,
Though the overall
sentiments improved during 2012, it would be too early to say that the global
economy is out of the woods. The events in Euro Zone and indicators from
Paper industry in
developed economies has been hit by increasing competition from electronic
media such as internet advertising, email, eBooks etc and this is likely to get
accentuated in the coming years. Paper and Board
demand in emerging
economies has, however, been robust thanks to increasing consumerism,
purchasing power, emphasis on education and knowledge as also the relatively
low per capita consumption of paper and board vis-ŕ-vis those in developed
countries.
IMPACT OF GLOBAL
DEVELOPMENTS ON INDIAN PAPER AND BOARD INDUSTRY
The slowdown in
global economy had its effect on the Indian economy with the GDP growth slowing
down to 6.5% in 2011/12 from 8.4% in 2010-11. Consequently, the Indian paper
and board industry was impacted by cost cutting by corporate sector and other
end use sectors. International pulp prices softened during the period but
dollar appreciation negated the possible gains to the industry. Indian industry
went through a challenging period last year due to the tough market conditions
and rising input costs especially of energy and to some extent chemical and
other inputs. Industry’s pricing power was limited while rising costs put
pressure on profit margins. We see some welcome signs of recovery both in
demand and pricing in recent months and hope that this will continue in the
coming quarters. The long term growth story of the industry is still intact and
we expect that the industry will soon catch up with its earlier growth path.
SUPPLY AND DEMAND
SCENARIO IN INDIAN PAPER AND BOARD INDUSTRY
The industry experienced
an unprecedented situation in 2011-12 with growth slowdown and commissioning of
new capacities in some segments by major players. This led to a temporary
demand – supply mismatch and inventory buildup in the industry. With no new
capacity additions likely in the near future, this mismatch will be absorbed in
the next few quarters as the economy returns to trend growth.
Over the past few
years, the Indian industry has grown faster at 8.5% annually as against the
global paper industry growth of 2%. The long term growth drivers, which remain
intact, will ensure that the Indian paper industry will continue to grow at
8-9% in this decade. Slowdown in most of the developed markets has forced major
global paper manufacturers look at newer markets across the world.
MARKET FOR
COMPANY’S PRODUCTS
The market for
Writing and Printing paper is expected to grow by about 9% annually over the
next 5-7 years. As a result market size will expand from the current 4.4
million tonnes to about 8 million tonnes per year. The industry will also see
acceleration in the trend that favours branded and value added products. The
combined annual size of Copier and Coated Papers is expected to double over the
next 5 years as a result of increasing use of electronic devices, e-ticketing
etc.
COPIER AND OFFICE
PAPER
Growth of Office
Papers was sluggish last year for a variety of reasons. Demand was subdued due
to growth slowdown in the economy and cost cutting across the board. At the
same time there was excess supply due to recent capacity additions. The demand
growth was muted in the first 9 months but the scenario improved during
Jan-March 2012. Taking a medium to long term outlook, it is clear that there is
a good demand growth coming from digital printing segment. This would mean
greater requirement of high quality papers like ColorLok that is marketed by
the Company. With the current expansion programme at JK Paper Mills getting
completed soon, the Company will be able to enhance market share in Copier and
Office Paper market over the next few years.
COATED PAPER
Coated Paper
segment maintained the strong growth in 2011-12 as well, though the market
witnessed high imports of Coated Paper from
PACKAGING BOARDS
Increasing
disposable income and retail boom has led to increased thrust on superior
product packaging in consumer goods. Consumer goods companies are increasingly
focusing on improving their product packaging to increase visibility of their
products and grab customer attention. This is fuelling high growth in the
premium Packaging Boards segment. Most of the end-use industries like FMCG, Pharmaceuticals,
Food & Beverages are experiencing good volume growth year on year. These
industries are also switching from low quality Duplex Boards to high quality
Virgin Fibre Boards for better visual appeal and functional properties, thus
benefiting the Company. We expect the volume growth in this segment at a
healthy rate of 9-10% annually with higher growth coming from premium Packaging
Board segment in which the Company is present.
The Company was
able to produce higher volumes this year due to the machine rebuild that was
completed towards the end of last year. The Company could achieve higher
capacity utilization of 106% on this expanded capacity and successfully market
it in the domestic markets to achieve a market share of over 25%. The Company
also optimised its product mix to achieve higher volumes in products with
higher profit margins. The Company has been consistently improving its service
levels to exceed customer expectations and strengthen its relationship with
them.
OUTSOURCING
To tide over the
capacity constraint and to satisfy customers’ needs for those products not
manufactured in-house, the Company has been actively encouraging outsourcing as
an option. Last year they increased our outsourcing activity which helped them
to reach out to more customers particularly in lower GSM Coated Papers. The
Company would continue to use this model to exploit opportunities available in
the market.
STATIONERY
PRODUCTS
For the Company
the stationery business is becoming increasingly important. Through this
business the Company is supplying note books to schools and ring pads to
corporate sector. This is a value added product, the market for which is
growing due to thrust on education at all levels. Within a short period the
Company has managed to establish its products in this market and expanded its
reach in all the four regions of the country. Last year saw consolidation of
our earlier efforts and entry into new markets in each zone.
UNAUDITED
FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 31ST DECEMBER,
2012
(Rs. in Millions)
|
PARTICULARS |
Three Months ended |
Preceding Three Months ended |
Nine Months ended |
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
Income from Operations |
4345.500 |
4221.100 |
12664.800 |
|
(a)
Net Sales / Income from operations |
3680.700 |
3570.800 |
10699.100 |
|
(b)
Other Operating Income |
4.500 |
6.800 |
15.500 |
|
Total
Income |
3685.200 |
3577.600 |
10714.600 |
|
Expenditure |
|
|
|
|
Cost
of material consumed |
2142.800 |
2065.900 |
6142.000 |
|
Purchases
of stock in trade |
321.700 |
179.700 |
597.500 |
|
Changes
in inventories of finished goods, work in progress and stock in trade |
(80.700) |
(36.300) |
(164.400) |
|
Employee
benefits expenses |
373.300 |
346.500 |
1053.200 |
|
Depreciation
and amortization expenses |
184.900 |
184.700 |
551.600 |
|
Other
expenses |
|
|
|
|
Power,
fuel and water |
473.500 |
494.800 |
1436.200 |
|
Others
|
235.300 |
232.200 |
709.400 |
|
Total |
3650.800 |
3467.500 |
10325.500 |
|
Profit
from operations before other income, interest and exceptional Items |
34.400 |
110.100 |
389.100 |
|
Other
income |
40.100 |
39.000 |
130.000 |
|
Profit
before interest and exceptional Items |
74.500 |
149.100 |
519.100 |
|
Interest |
132.400 |
128.200 |
390.600 |
|
Profit after Interest but
before Exceptional Items |
(57.900) |
20.900 |
128.500 |
|
Exceptional
Items |
-- |
-- |
-- |
|
Profit (+)/Loss(-) from
Ordinary Activities before tax |
(57.900) |
20.900 |
128.500 |
|
Tax
expense |
|
|
|
|
Provision
for current tax |
(11.300) |
(5.100) |
25.700 |
|
Mat
credit entitlement |
(15.700) |
(28.300) |
(44.000) |
|
Provision
for deferred tax |
(10.100) |
7.700 |
(20.400) |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
(20.800) |
46.600 |
167.200 |
|
Extraordinary items |
-- |
-- |
-- |
|
Net
Profit (+) / Loss (-) for the year period |
(20.800) |
46.600 |
167.200 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
1366.200 |
1366.200 |
1366.200 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
-- |
-- |
|
Earnings
per share (Before and After Extraordinary Items) (In Rs./ Shares) (Not
Annualised) |
|
|
|
|
(a) Basic |
(0.14) |
0.35 |
1.22 |
|
(a) Diluted |
(0.14) |
0.27 |
0.97 |
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
Public
shareholding |
|
|
|
|
Number of shares |
66936672 |
66936672 |
66936672 |
|
Percentage of shareholding |
48.99 |
48.99 |
48.99 |
|
|
|
|
|
|
Promoters and Promoters group
Shareholding- |
|
|
|
|
a)
Pledged /Encumbered |
|
|
|
|
Number
of shares |
Nil |
Nil |
Nil |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
Nil |
Nil |
Nil |
|
Percentage
of shares (as a % of total share capital of the company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
Number
of shares |
69683953 |
69683953 |
69683953 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
51.01 |
51.01 |
51.01 |
|
INVESTOR COMPLAINTS-THREE
MONTHS ENDED ON 31ST DECEMBER, 2012 |
Number |
|
Pending
at the beginning of the Quarter |
Nil |
|
Received
during the Quarter |
11 |
|
Disposed
of during the Quarter |
11 |
|
Remaining
unresolved at the end of the Quarter |
Nil |
NOTES:-
1.
Severe increases in raw material prices have
impacted results for the quarter, despite increase in Net Sales by 12.6%.
2.
Production from the expansion project is expected
by June 2013.
3.
The figures for the previous period have been
regrouped/ rearranged, wherever necessary.
4.
The company has only one business segment namely,
“Paper and Board”.
5.
These results have been reviewed by the Audit
Committee and approved by the Board of Directors, at their respective meetings
held on 21st January, 2013. Limited Review of these results has been
carried out by the Auditors.
CONTINGENT
LIABILITIES:
(Rs. in Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
(a) Excise duty liability in respect of matters in appeal |
98.300 |
96.200 |
|
(b) Sales tax liability in respect of matters in appeal |
36.900 |
38.800 |
|
(c) Other Matters |
277.800 |
117.500 |
In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.
FIXED ASSETS:
Tangible Assets:
v
Land
- Freehold
- Leasehold
v
Buildings
v
Plant
and Machinery
v
Furniture,
Fixtures and Equipments
v
Vehicles
and Locomotives
v
Railway
Sidings
Intangible Assets
v
Performance
Improvement and Development
v
Software
WEBSITE DETAILS
PRESS RELEASE:
JK PAPER PLANS TO
EXPAND BASE
SAURAV BORA
Paper and packaging major JK Paper plans to sustain its market leadership in the copier paper segment in the Northeast through adoption of newer technologies and expansion of its distribution network.
“We perceive the Northeast as an important market for our brands. As a matter of fact, we have been consistently focusing our attention on the region’s market in the past 18 years. The region will be key to JK Paper’s marketing strategy, particularly after commissioning of a new paper machine at our Odisha unit,” A.K. Ghosh, vice-president (marketing and sales) of the company told The Telegraph.
The company enjoys a 60 per cent market share in the Northeast and according to company sources, the plan is to take it beyond 70 per cent in the next three years. “Our total volume of sales in the region is estimated at 650 million tonnes per month,” the official said.
The total copier paper market in India is of the size of 5.4 lakh million tonnes. “JK Paper enjoys 28 per cent market share in the country, which will increase to aro-und 32 per cent after commissioning of the Odisha unit in the first quarter of 2013-14,” Ghosh said.
The company is also looking at strengthening its distribution network. “We have 15 dealers in the region and plan to add another seven to eight in the next two years,” a company source said.
“After the start of production from our new plant in Odisha, we will be making efforts to fill up the gaps that exist in the Northeast market. This, we believe, will strengthen our distribution network,” Ghosh said.
The paper major is eyeing augmentation of sales after being the only Indian company to secure ColorLok technology for producing high-quality paper from Hewlett Packard.
“Colorlok paper is easy to recycle as the ink is firmly put up on the surface of the paper and therefore consumes lower energy and less amount of water. The paper can also be de-inked for recycling. The technology facilitates superior print quality and enables reduction in operational costs for end-users such as photocopy shops, private and government offices and hospitals, among others,” he said.
Superiority of the technology in digital equipment makes it extremely necessary for the paper companies to meet their requirements. “From the perspective of future trends in paper usage, most paper mills would have to make necessary changes in their manufacturing process and adopt new technologies like Colorlok,” the official said.
JK PAPER UP 12% ON
BUZZ OVER STAKE SALE TO US FIRM
SNEHA SHAH, ET BUREAU
DEC 20, 2012, 04.00 AM IST
Shares of JK Paper surged as much as 12% to a yearly high of Rs 46.80 Wednesday on buzz US based International Paper, which acquired Andhra Pradesh Paper Mills only last year, will pick up a stake in the company.
The stock closed up 5.27% at Rs 43.95. Almost 11.65 lakh shares changed hands against the two-week daily average volume of 35,000 shares.
JK PAPER FORMS JV
WITH OJI HOLDINGS, MARUBENI CORP
NEW DELHI OCTOBER 25, 2012
Plans to invest Rs 1500.000 Millions on a new plant in
Rajasthan
JK Paper today said it has formed a joint venture with Japan's Oji Holdings Corporation and Marubeni Corporation for manufacturing and sales of corrugated paper products with plans to invest Rs 1500.000 Millions on a new plant in Rajasthan.
In the new JV -- Oji India Packaging Private Limited (OIPPL) -- Oji Holdings will hold 60% stake, while Marubeni and JK Paper each will have 20%.
"OIPPL proposes to set up a manufacturing facility at RIICO (Rajasthan State Industrial Development & Investment Corporation Limited) Neemrana Industrial Park Phase 3.. and has been allotted land for the purpose," JK Paper said in a filing to the BSE.
The company said the plant will have a capacity to manufacture corrugated packaging products of 34,000 tpa at an investment of Rs 1500.000 Millions, it added.
It is targeting companies in auto components, high-end electronic and consumer durables sectors located in the region as consumers of its corrugated packaging products.
JK Paper said OIPPL will apply to concerned authorities for change of name to
Oji JK Packaging Private Limited after subscription of shares by it and
Marubeni.
JK PAPERS EYEING RS
25000.000 MILLIONS BUSINESS NEXT FISCAL
Tiruchirapalli
(TN) Nov 23:
JK Papers Limited, the flagship arm of the Singhania Group, is eyeing Rs 25000.000 Millions business next fiscal, according to a top company official.
“We are targeting to end this fiscal with over Rs 17000.000 Millions business as against Rs 15000.000 Millions last year. Next year we expect to surpass Rs 25000.000 Millions with our expansion plans, both in production capacity and in marketing network,” JK Papers Limited President A.S Mehta said.
As of now, products are made available in all major cities as part of its pan-India presence. New territories are being explored where JK Papers does not have distribution, he said, adding the company would focus on tier II and III towns in future, he said.
On the exports front, he said the quantum is expected to double from the current 1200-1500 tonnes to over 3,000 tonnes next year, equivalent to Rs 1500.000 Millions.
“For export market expansion, a comprehensive market survey, scanning and identity of locations and distributors has been done as a prelude. The thrust will be on expansion in Middle East and the more vibrant African countries,” he added.
“JK Papers is set for this massive expansion with an investment of Rs 16500.000 Millions,” Mehta said.
He added “We could have a simple expansion by adding machines of 50,000 tonne capacity of copier papers. But the idea is to build a most modern facility with state-of-the-art technology with a viable capacity with one single machine“.
Besides this, JK Papers is also putting up a brand new pulp mill with additional capacity.
To support these endeavours, the company would invest Rs 250.000 Millions to build the most modern warehousing process which would be totally automated, Mehta said.
JK PAPER TO HAVE A
NEW PLANT NEXT FISCAL
PRASHANTH REDDY /
HYDERABAD 01 NOV 12 | 05:56 PM
The Rs 16500.000 Millions expansion plan of JK Paper Limited, a flagship company of the JK Singhania group, will be completed by the first quarter of 2013-14, according to vice president (marketing & sales) AK Gosh.
Gosh told Business standard that JK Paper was setting up a new 165,000 tonnes per annum (tpa) paper plant at its existing unit in Rayagada in Odhisa.
Following this, the combined installed paper-making capacity
of the company's manufacturing units would go up from 294,000 tpa to 465,000
tpa. JK currently operates two paper plants located in Odhisa and Gujarat.
The company recently formed a joint venture (JV), Oji India Packaging Private
Limited, in partnership with two Japanese firms -- Oji Holdings Corporation and
Marubeni Corporation -- to make and sell corrugated packaging projects.
The JV is planning to set up a 34,000-tpa manufacturing unit at the Neemrana
Industrial Park in Rajasthan at cost of Rs 1500.000 Millions. JK will have a
20% share in the JV for an equity investment of up to Rs 150.000 Millions.
This apart, the company is set to pick up an equity stake in a state-owned pulp
mill of Myanmar. The deal was expected to give a foothold for the company in
that country, which was now opening up to foreign investment. The details
of the deal were reportedly being worked out.
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 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. 54.03 |
|
|
1 |
Rs. 82.43 |
|
Euro |
1 |
Rs. 70.49 |
INFORMATION DETAILS
|
Report Prepared by
: |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.