MIRA
INFORM REPORT
|
Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
RAMA NEWSPRINT AND PAPERS LIMITED |
|
|
|
|
Registered
Office : |
Village Barbodhan, Taluka Olpad, Surat – 395005, Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
10.07.1991 |
|
|
|
|
Com. Reg. No.: |
04-19432 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.581.580
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21010GJ1991PLC019432 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR05789A/
SRTR00039E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR2499H |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of
Newsprint, Writing and Printing Papers. |
|
|
|
|
No. of Employees
: |
Information declined by management.
|
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4400000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is an established company having a moderate track record. The company has performed well during 2012 in its operations and has
earned better profits. However, the financial position of the company appears to be
vulnerable. Trade relations are reported as fair. Business is active. Payment
terms are reported as slow. The company can be considered for business dealings with great
caution. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans: C |
|
Rating Explanation |
Very high risk of default. |
|
Date |
March, 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limit: C |
|
Rating Explanation |
Very high risk of default. |
|
Date |
March, 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON CO-OPERATIVE
Contac No.: 91-26212-24203
LOCATIONS
|
Registered Office/ Factory : |
Village Barbodhan, Taluka Olpad, Surat-395005, |
|
Tel. No.: |
91-2621-224203/ 4 / 5 |
|
Fax No.: |
91-2621-224206 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office: |
181-B, Maker
Tower "E", Cuffe Parade, Mumbai – 400005, Maharashtra, India |
|
Tel. No.: |
91-22-22183791 |
|
Fax No.: |
91-22-22180136/
2188406 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
Chandermukhi Building, 8th Floor, ‘B’ Block, R. Goenka Marg, Nariman Point, Mumbai – 400021, Maharashtra, India |
|
Tel. No.: |
91-22-22821025/ 1014/ 1048 |
|
Fax No.: |
91-22-22821083 |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. Shree Kumar Bangur |
|
Designation : |
Chairman Cum Managing Director |
|
Date of Birth/Age : |
16.11.1949 |
|
Qualification : |
B.Com |
|
Experience : |
An industrialist
of repute with extensive experience of paper industry and general management
of Corporate and Industrial affairs. He is also past president of Indian
Paper Manufacturers Association. He is also a Committee Member of Federation
of Indian Chamber of Commerce and Industry (FICCI), Indian Chamber of
Commerce and Bharat Chamber of Commerce. |
|
|
|
|
Name : |
Mr. Virendra Bangur |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. K L Chandak |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudarshan Somani |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Lt. Gen (Retired) Ashok Kapur |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
13.05.1947 |
|
Qualification : |
Completed
10th, joined National Defence Academy,
Khadakwasla |
|
Experience : |
Lt. Gen. (Retd.)
Ashok Kapur has a vast administrative experience having successfully
performed various assignments in the Indian Army. At the time of his retirement
from the Indian Army he was Chief of Staff, Southern Command, Pune. Post
retirement he was Director General of operations and administration of
Military World Games and Additional Director General, Common Wealth Youth
Games in Pune. |
|
|
|
|
Name : |
Mr. Janak Mehta |
|
Designation : |
Independent Director |
|
|
26.10.1963 |
|
|
Commerce Graduate
|
|
|
Mr. Janak Mehta
is the Promoter and President of M/s. LKP Securities Ltd. He has attended various
executive programmers at Harvard Business School, ISB, etc. and is a member
of various committees on the Bombay Stock Exchange. He has about 23 years of
experience in the business of stock broking. |
|
|
|
|
Name : |
Mr. P. S. Maharaj |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Girish Sharma |
|
Designation : |
Vice President (F and A) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2012)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1711535 |
2.94 |
|
|
26872577 |
46.21 |
|
|
28584112 |
49.15 |
|
|
|
|
|
|
|
|
|
|
246839 |
0.42 |
|
|
1314850 |
2.26 |
|
|
1561689 |
2.69 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
30145801 |
51.83 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
60000 |
0.10 |
|
|
20125 |
0.03 |
|
|
60725 |
0.10 |
|
|
12300 |
0.02 |
|
|
12300 |
0.02 |
|
|
153150 |
0.26 |
|
|
|
|
|
|
|
|
|
|
5202470 |
8.95 |
|
|
|
|
|
|
18239047 |
31.36 |
|
|
3341476 |
5.75 |
|
|
1076088 |
1.85 |
|
|
429901 |
0.74 |
|
|
650 |
0.00 |
|
|
325 |
0.00 |
|
|
200 |
0.00 |
|
|
550 |
0.00 |
|
|
644462 |
1.11 |
|
|
27859081 |
47.90 |
|
|
|
|
|
Total Public
shareholding (B) |
28012231 |
48.17 |
|
|
|
|
|
Total (A)+(B) |
58158032 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total (A)+(B)+(C) |
58158032 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Foreign Mutual FundShareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
||
|
|
|
|
|
|
1 |
West Coast Paper Mills Limited |
2,11,24,791 |
36.32 |
|
2 |
Orbit Udyog Pvt Ltd |
4,31,326 |
0.74 |
|
3 |
Shree Satyanarayan Investment Company Limited |
14,92,645 |
2.57 |
|
4 |
The Diamond Company Limited |
6,90,348 |
1.19 |
|
5 |
Gold Mohre Investment Company Limited |
3,06,435 |
0.53 |
|
6 |
Soumya Trade and Fiscal Services Private Limited |
7,15,015 |
1.23 |
|
7 |
Indra Company Limited |
5,28,769 |
0.91 |
|
8 |
Veer Enterprises Limited |
15,83,248 |
2.72 |
|
9 |
Mega Star Investment Limited |
7,50,000 |
1.29 |
|
10 |
Indo Gulf Enterprises Limited |
5,64,850 |
0.97 |
|
11 |
Rangnath Shree Kumar |
60,725 |
0.10 |
|
12 |
Shree Kumar Bangur |
13,27,885 |
2.28 |
|
13 |
Shashi Devi Bangur |
25,015 |
0.04 |
|
14 |
Virendra Bangur |
2,45,352 |
0.42 |
|
15 |
Saurabh Bangur |
52,558 |
0.09 |
|
16 |
Ramesh Kumar Rochiram Narang |
2,46,839 |
0.42 |
|
|
|
|
|
|
|
Total |
3,01,45,801 |
51.83 |
Shareholding
of securities (including shares, warrants, convertible securities) of persons
belonging to the category Public and holding more than 1% of the total number
of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
|
|
|
|
1 |
Kamna Credits and Promoters Private Limited |
1230000 |
2.11 |
|
|
|
|
|
|
|
Total |
1230000 |
2.11 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Newsprint, Writing and Printing Papers. |
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|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management.
|
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Bankers : |
·
Bank of ·
Oriental Bank of Commerce ·
Central Bank of ·
Axis Bank Limited ·
ICICI Bank Limited |
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Facilities : |
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|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Haribhakti and Company Chartered Accountant |
|
Address : |
Mumbai, |
|
|
|
|
Advocates and
Solicitors : |
|
|
Name : |
Khaitan and Company Chartered Accountant |
|
Address : |
Mumbai, |
|
|
|
|
Other Related Party : |
Ø
The
West Coast Paper Mills Limite |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
233000000 |
Equity Shares |
Rs. 10/- each |
Rs.2330.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
58158032 |
Equity Shares |
Rs. 10/-
each |
Rs.581.580
Millions |
|
|
|
|
|
NOTE:
a) Reconciliation of Shares Outstanding during the year
No Shares have
been issued or bought back during the current and previous years.
b) Terms/Rights attached to Equity Shares
The Company has
only one class of equity shares having a par value of Rs.10/- per share. Each
holder of equity share is entitled to one vote per share.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to number of equity shares held
by shareholders.
c) Shareholder holding more than 5% of shares
|
Name of
Shareholder |
As at 31 March 2012 |
|
|
|
No. of Shares held |
% of Holding |
|
|
|
|
|
West Coast Paper Mills Limited |
21124791 |
36.32 |
d) Aggregate number of bonus shares issued, shares issued for
consideration other than cash and shares bought back during the period of five
years immediately preceding the reporting date
During the period of preceding five years the company has not:
- allotted any
shares without payment being received in cash,
- allotted any
shares by way of bonus shares and
- bought back any
shares.
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 |
581.580 |
581.580 |
581.580 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
513.891 |
229.773 |
2271.934 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
[639.269] |
|
|
NETWORTH |
1095.471 |
811.353 |
2214.245 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2445.994 |
1940.261 |
2118.310 |
|
|
2] Unsecured Loans |
272.085 |
351.611 |
242.979 |
|
|
TOTAL BORROWING |
2718.079 |
2291.872 |
2361.289 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3813.550 |
3103.225 |
4575.534 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2727.646 |
3082.651 |
3424.901 |
|
|
Capital work-in-progress |
42.105 |
17.714 |
17.653 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.163 |
0.163 |
0.163 |
|
|
DEFERREX TAX ASSETS |
1110.348 |
0.000 |
616.820 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
496.119
|
371.312 |
701.628
|
|
|
Sundry Debtors |
453.476
|
543.788 |
412.277
|
|
|
Cash & Bank Balances |
12.058
|
12.793 |
10.171
|
|
|
Other Current Assets |
63.195
|
9.639 |
0.000
|
|
|
Loans & Advances |
342.753
|
327.705 |
352.791
|
|
Total
Current Assets |
1367.601
|
1265.237 |
1476.867 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
533.528 |
272.548 |
231.244
|
|
|
Other Current Liabilities |
852.689
|
950.740 |
704.034
|
|
|
Provisions |
48.096
|
39.252 |
25.592
|
|
Total
Current Liabilities |
1434.313
|
1262.540 |
960.870
|
|
|
Net Current Assets |
(66.712)
|
2.697 |
515.997
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3813.550 |
3103.225 |
4575.534 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from
Operations |
3519.796 |
3203.209 |
3091.172 |
|
|
|
Other Income |
32.761 |
4.424 |
58.195 |
|
|
|
TOTAL (A) |
3552.557 |
3207.633 |
3149.367 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2370.666 |
2064.356 |
|
|
|
|
Changes in Inventories of Finished Goods and
Work-in-Progress |
(74.254) |
206.029 |
|
|
|
|
Employees Benefits
Expenses |
142.801 |
148.818 |
3160.177 |
|
|
|
Exchange
Fluctuation |
46.680 |
(19.576) |
|
|
|
|
Other Expenses |
1040.833 |
872.192 |
|
|
|
|
Extraordinary Items |
(1176.548) |
0.000 |
|
|
|
|
TOTAL (B) |
2350.178 |
3271.819 |
3160.177 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1202.379 |
(64.186) |
(10.810) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
505.505 |
373.372 |
324.156 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
696.874 |
(437.558) |
(334.966) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
346.556 |
348.514 |
346.408 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
350.318 |
(786.072) |
(681.374) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(270.962) |
616.820 |
(114.918) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
621.280 |
(1402.892) |
(566.456) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
(72.813) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
(639.269) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
60.461 |
60.540 |
106.695 |
|
|
TOTAL EARNINGS |
60.461 |
60.540 |
106.695 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Chemicals |
564.662 |
336.699 |
779.352 |
|
|
|
Stores, Spares & Components |
52.464 |
32.274 |
35.216 |
|
|
TOTAL IMPORTS |
617.126 |
368.973 |
814.568 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(9.55) |
(24.12) |
(9.74) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
892.040 |
769.610 |
|
Total Expenditure |
|
882.210 |
740.640 |
|
PBIDT (Excl OI) |
|
9.830 |
28.970 |
|
Other Income |
|
0.420 |
13.180 |
|
Operating Profit |
|
10.250 |
42.150 |
|
Interest |
|
126.660 |
127.080 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(116.410) |
(84.930) |
|
Depreciation |
|
86.840 |
87.280 |
|
Profit Before Tax |
|
(203.240) |
(172.210) |
|
Tax |
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(203.240) |
(172.210) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(203.240) |
(172.210) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
17.49
|
(43.74) |
[17.99]
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.95
|
(24.54) |
[22.04]
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.42
|
(18.08) |
[13.90]
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
(0.97) |
[0.31]
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.79
|
4.38 |
1.50
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95
|
1.00 |
1.54
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
- Due to Micro Enterprises and Small Enterprises |
0.000 |
0.000 |
0.000 |
|
- Others |
533.528 |
272.548 |
231.244 |
|
|
|
|
|
|
Total |
533.528 |
272.548 |
231.244 |
|
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 |
Yes |
|
8] |
No. of employees |
No |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE
DURING 2011-12
The year proved
to be another difficult year for the operations of the Company. Although the selling
prices of Newsprint witnessed an increase of about Rs.3200/MT, the effect of
the same was neutralized due to hikes in the cost of raw materials and coal. A
substantial increase in the finance cost coupled with loss on account of
exchange fluctuation, further aggravated the quantum of loss during the year.
As a result of the continuing cash losses, the liquidity crunch being faced by
the Company further worsened during the year causing delays and defaults in
payment of interest, term loans and other statutory dues.
The Company
improved its capacity utilization to about 88% during the year and produced
1,16,060 MT of Newsprint as against 1,09,355 MT during 2010-11. The Company
achieved a sales volume of 1,14,080 MT during the year as against 1,14,830 MT
during 2010-11.
During the year the Company availed new Term Loans of Rs.1600.000 Millions for refinancing of all the existing term loans and partly to reduce the Working Capital deficit. The new Term Loans provide for a moratorium period of two years alongwith extended repayment schedule. However, the Company could not pursue its plan of raising about Rs.500.000 Millions by way of Rights Issue of Equity
Shares on account
of the delay in getting the final approval of SEBI coupled with adverse capital
market scenario. It is now proposed to raise upto Rs.300.000 Millions by issue
of Preference Shares by way of private placement.
MANAGEMENT
DISCUSSION AND ANALYSIS
PAPER INDUSTRY
OUTLOOK
Paper industry in
India is one of the 35 high priority industries and is an integral part of the
nation’s economy and contributes to its growth and development. It currently
has a turnover of over Rs.300000.000 Millions and contributes over Rs.30000.000
Millions to national exchequer. The domestic demand for all varities of paper
in India is estimated at around 11.6 million tones per year and with an annual
growth rate of about 6.8% is likely to cross 20 million tonnes by 2020. The
projected GDP growth rate in India coupled with the continued thrust on
universal education by the government through ‘Sarva Shiksha Abhiyan’ and
“Right to Education” augurs well for the future growth of Indian paper
industry. The existing low base of per capita consumption of paper in India as
compared to other developing economies is another indicator of a sustainable
future growth potential.
NEWSPRINT
INDUSTRY
As per CRISIL estimates the demand for newsprint is expected to grow by about 9-10% CAGR from 2.1 million tonnes in 2011- 12 to about 3.4 million tonnes in 2016-17. The growth in print media particularly in vernacular editions, and the increasing level of population as well as literacy in the country, continue to be the major growth drivers for the demand of newsprint in India. With the existing domestic capacity being only about 40-45% of the demand, there is enough scope of future expansion and growth for newsprint manufacturers in India.
FIXED ASSETS:
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipments
·
Vehicles
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.54.85 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
31 |
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.