MIRA INFORM REPORT
|
Report Date : |
03.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE ANDHRA PRADESH PAPER MILLS LIMITED |
|
|
|
|
Registered
Office : |
Rajamundry, East Godavari District Hyderabad – 533105, Andhra Pradesh |
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|
Country : |
India |
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|
|
Financials (as
on) : |
31.12.2011 |
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|
Date of
Incorporation : |
29.06.1964 |
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Com. Reg. No.: |
01-001008 |
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Capital
Investment / Paid-up Capital : |
Rs. 397.700 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21010AP1964PLC001008 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
VPNT00325D / VPNT00329A |
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PAN No.: [Permanent Account No.] |
AAACT8849B / AAACT8849D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacture and sale of pulp, paper and paper board. |
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|
|
|
No. of Employees
: |
2405 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 19000000 |
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|
|
|
Status : |
Satisfactory |
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|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Exist |
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Comments : |
Subject is a well established company having a satisfactory track
record. Company has been successful in wiping off its losses during 2013. However, trade relations are fair. Business is active. Payments are
recorded as usually correct. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
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 |
CARE |
|
Rating |
Long term banking facilities: AA |
|
Rating Explanation |
High degree of safety and low credit risk. |
|
Date |
1 March, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term banking facilities: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
1 March, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Rajamundry, East Godavari District Hyderabad – 533105, Andhra Pradesh,
India |
|
Tel. No.: |
91-883-2471831 to 2471838 |
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Fax No.: |
91-883-2461764 |
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E-Mail : |
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Website : |
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Corporate Office : |
501-509, Swapnalok Complex, 5th Floor, 92/93 Sarojini Devi Road,
Secunderabad - 500 003 Andhra Pradesh, India |
|
Tel. No.: |
91-40-30482614, 27813715 |
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Fax No.: |
91-40-27813717 |
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E-Mail : |
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Factory 2 : |
Industrial Area,
MR Palem – 533126, Kadiyam Mandalam, East, Godavari District, Andhra Pradesh,
India |
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Tel. No.: |
91-883-2454651 |
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Fax No.: |
91-883-2453538 |
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E-Mail : |
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Factory 3 : |
Paper Cut to Size Unit Adj Hanuman Co-operative Sugar Mills Serinarasannapalem 521105 (On National Highway No.5) Near Hanuman Junction, Krishna District |
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Tel. No.: |
91-8656-261463 |
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Branches : |
Located at
|
DIRECTORS
As on 31.12.2011
|
Name : |
Mr. Paul Brown |
|
Designation : |
Chairman and Chief Executive Officer |
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|
|
Name : |
Mr. Thomas G. Kadien |
|
Designation : |
Director |
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|
Name : |
Mr. Brett Allen Mosley |
|
Designation : |
Director |
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|
Name : |
Mr. Shreeyash Bangur |
|
Designation : |
Director |
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|
Name : |
Mr. M.S. Ramachandran |
|
Designation : |
Director |
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|
Name : |
Mrs. Ranjana Kumar |
|
Designation : |
Director |
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|
Name : |
Mr. M.K. Sharma |
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Designation : |
Director |
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|
Name : |
Mr. Milind Sarwate |
|
Designation : |
Director |
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|
Name : |
Mr. Adhiraj Sarin |
|
Designation : |
Director |
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|
Name : |
Mr. Praveen P. Kadle |
|
Designation : |
Director |
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|
Name : |
Mr. Rampraveen Swaminathan |
|
Designation : |
Director |
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|
Name : |
Mr. P.K. Suri |
|
Designation : |
Director (Operations) |
KEY EXECUTIVES
|
Name : |
Mr. Michael Baymiller |
|
Designation : |
Chief People Officer |
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|
Name : |
Mr. E. Sairam |
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Designation : |
Senior Vice President (Finance and Accounts) and Chief Finance Officer |
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|
Name : |
Mr. C. Prabhakar |
|
Designation : |
Senior Vice President (Corporate Affairs) and Company Secretary |
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|
Name : |
Mr. Jaspal Singh |
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Designation : |
Senior Vice President (Marketing) |
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Name : |
Mr. J. K. Jain |
|
Designation : |
Senior Vice President (Commercial) |
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|
Name : |
Mr. Yogesh Jain |
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Designation : |
Associate Vice President (Commercial) |
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|
Name : |
Dr. Alok Prakash |
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Designation : |
Associate Vice President (Key Accounts and Sales Operations) |
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|
Name : |
Mr. Y. Uday Shankar |
|
Designation : |
General Manager (Product Development and Technical Services) |
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|
Name : |
Mr. S. Vasudevan |
|
Designation : |
General Manager (Sales) |
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|
Name : |
Mr. V.V. Ramakrishna |
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Designation : |
General Manager (Finance and Accounts) |
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|
Name : |
Mr. Veera Babu Kandukuri |
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Designation : |
General Manager (HR) |
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Name : |
Mr. Raghu Reganti |
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Designation : |
Senior Vice President (Projects and Maintenance) |
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|
Name : |
Mr. Ch.V. Rama Raju |
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Designation : |
Vice President (Operations) |
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|
Name : |
Mr. K.M. Kasetty |
|
Designation : |
General Manager (Paper) |
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|
Name : |
Mr. T.S. Sundaram |
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Designation : |
General Manager (Works) (Unit:CP) |
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|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
29827529 |
75.00 |
|
|
29827529 |
75.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
29827529 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
0.00 |
|
|
42090 |
0.11 |
|
|
1233350 |
3.10 |
|
|
910085 |
2.29 |
|
|
200 |
0.00 |
|
|
200 |
0.00 |
|
|
2185925 |
5.50 |
|
|
|
|
|
|
3247303 |
8.17 |
|
|
|
|
|
|
2554912 |
6.42 |
|
|
1869520 |
4.70 |
|
|
84850 |
0.21 |
|
|
5382 |
0.01 |
|
|
23815 |
0.06 |
|
|
55653 |
0.14 |
|
|
7756585 |
19.50 |
|
Total Public shareholding (B) |
9942510 |
25.00 |
|
Total (A)+(B) |
39770039 |
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) |
39770039 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of pulp, paper and paper board. |
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Products : |
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PRODUCTION STATUS AS ON (31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Pulp, Paper and Board* |
MT |
232189 |
187233 |
|
Generation of electricity** |
MW |
62.94 |
3192.44 Kwh Lakhs |
|
Generation of steam |
TPH |
573 |
2402712 MT |
* Represents
finished production of Paper and Paper Board. Production of pulp is not
separately ascertained as pulp plant is an integral part of paper and paper
board plant. Includes pulp production of 4,733 MT (Previous year:
24,705 MT) meant
for external sales.
** Total generation
of steam is for internal consumption. Generation of electricity is for internal
consumption with surplus units sold to APTRANSCO.
Notes:
i. Licensed
capacity not applicable in terms of Government of India's notification.
ii. Installed
capacities are as certified by the Managing Director and CEO and have not been
verified by the auditors as this is a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
2405 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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|
Name : |
BSR and Company Chartered Accountants |
|
Address : |
Hyderabad, Andhra Pradesh, India |
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|
|
|
Cost Auditors : |
|
|
Name : |
Narasimha Murthy and Company Chartered Accountants |
|
Address : |
Hyderabad, Andhra Pradesh, India |
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PAN No.: |
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Ultimate holding company: |
International Paper Company, USA |
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Holding company: |
IP Holding Asia Singapore PTE. Limited, Singapore |
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|
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Enterprises where principal shareholders have control: |
Samay Books Limited (Up to October 14, 2011) |
|
|
|
|
Enterprises where principal shareholders have significant influence
(Up to October 14, 2011) |
|
CAPITAL STRUCTURE
As on 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
500000 |
Redeemable cumulative preference shares |
Rs.100/- each |
Rs. 50.000 Millions |
|
|
Total |
|
Rs. 450.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
39770039 |
Equity Shares |
Rs.10/- each |
Rs. 397.700
Millions |
|
|
|
|
|
Notes:
Subscribed and paid-up share capital includes:
Equity shareholder holding more than 5% of
equity shares along with the number of equity shares held is as given below:
|
Name of the shareholder |
31.12.2011 |
|
|
|
% |
Number of shares |
|
IP Holding Asia Singapore PTE. Limited |
75.00 |
29,827,529 |
b. During the previous year ending March 31,
2011, the Company had issued and allotted 7,018,242 equity shares of Rs.10 each
at a premium of Rs.40 per share, towards conversion of an equivalent number of
detachable warrants. A sum of Rs.280.730 Millions collected on account of
premium at Rs.40 per share on 7,018,242 equity shares of Rs.10 each allotted on
conversion of warrants on December 2, 2010 was credited to securities premium
account. Expenses of Rs.0.292 Millions related to the issue of shares was
adjusted against the securities premium account. During the current year, no
shares were alloted and there are no pending warrants for conversion as on
December 31, 2011.
c. 7,018,242 equity shares of Rs.10 each at a
premium of Rs.40 per share offered to the shareholders on rights basis were
allotted on March 30, 2010. In terms of letter of offer dated February 22,
2010, 7,018,242 detachable warrants were also allotted on the same day which
was to be converted into equivalent number of equity shares of Rs.10 each on
payment of warrant exercise price of Rs.50 per warrant at any time before the
expiry of 18 months from the date of allotment i.e. September 30, 2011.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 (9 Months) |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
397.700 |
397.700 |
327.518 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4407.451 |
5385.573 |
4701.935 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4805.151 |
5783.273 |
5029.453 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2702.945 |
2512.162 |
4569.541 |
|
|
2] Unsecured Loans |
1113.892 |
379.486 |
364.118 |
|
|
TOTAL BORROWING |
3816.837 |
2891.648 |
4933.659 |
|
|
DEFERRED TAX LIABILITIES |
1216.670 |
427.125 |
307.525 |
|
|
|
|
|
|
|
|
TOTAL |
9838.658 |
9102.046 |
10270.637 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8066.059 |
8582.768 |
6779.926 |
|
|
Capital work-in-progress |
612.136 |
300.949 |
2259.575 |
|
|
|
|
|
|
|
|
INVESTMENT |
160.534 |
166.434 |
166.434 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2119.177
|
1210.685 |
1158.720
|
|
|
Sundry Debtors |
352.595
|
562.936 |
464.246
|
|
|
Cash & Bank Balances |
241.541
|
206.809 |
137.664
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
1006.069
|
985.049 |
722.911
|
|
Total
Current Assets |
3719.382
|
2965.479 |
2483.541 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1039.432
|
854.287 |
1048.068
|
|
|
Other Current Liabilities |
1662.361
|
2013.075 |
307.385
|
|
|
Provisions |
17.660
|
46.222 |
63.386
|
|
Total
Current Liabilities |
2719.453
|
2913.584 |
1418.839 |
|
|
Net Current Assets |
999.929
|
51.895 |
1064.702 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9838.658 |
9102.046 |
10270.637 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 (9 Months) |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5939.101 |
7818.127 |
6492.861 |
|
|
|
Other Income |
69.250 |
168.081 |
87.360 |
|
|
|
TOTAL (A) |
6008.351 |
7986.208 |
6580.221 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1929.214 |
2010.430 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress |
(799.161) |
138.599 |
|
|
|
|
Manufacturing expenses |
2628.690 |
2833.028 |
|
|
|
|
Employee benefits expense |
656.608 |
797.624 |
|
|
|
|
Other expenses |
467.161 |
559.378 |
|
|
|
|
Loss on discarded assets |
311.202 |
7.774 |
|
|
|
|
TOTAL (B) |
5193.714 |
6346.833 |
5049.951 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
814.637 |
1639.375 |
1530.270 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
440.049 |
398.843 |
321.545 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION
(C-D) (E) |
374.588 |
1240.532 |
1208.725 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
506.213 |
669.672 |
558.172 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX (E-F) (G) |
(131.625) |
570.860 |
650.553 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
846.497 |
121.438 |
108.619 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX (G-H) (I) |
(978.122) |
449.422 |
541.934 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
603.100 |
699.900 |
1196.101 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
500.000 |
1000.000 |
|
|
|
Proposed equity dividend |
0.000 |
39.800 |
32.742 |
|
|
|
Corporate tax on dividend |
0.000 |
6.500 |
5.439 |
|
|
BALANCE CARRIED
TO THE B/S |
(375.000) |
603.100 |
699.854 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on FOB basis |
213.932 |
447.479 |
441.798 |
|
|
TOTAL EARNINGS |
213.932 |
447.479 |
441.798 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
339.551 |
281.272 |
260.247 |
|
|
|
Stores & Spares |
170.842 |
216.925 |
157.538 |
|
|
|
Capital Goods |
64.379 |
64.721 |
101.339 |
|
|
TOTAL IMPORTS |
574.772 |
562.918 |
519.124 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(24.59) |
12.82 |
21.03 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2012 |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
3018.300 |
1897.600 |
2419.700 |
2460.900 |
2640.400 |
|
Total Expenditure |
2507.400 |
1862.5000 |
2052.400 |
2422.900 |
2303.400 |
|
PBIDT (Excl OI) |
510.900 |
35.100 |
367.400 |
38.000 |
337.000 |
|
Other Income |
15.900 |
13.500 |
34.400 |
25.500 |
10.100 |
|
Operating Profit |
526.800 |
48.600 |
401.700 |
63.500 |
347.100 |
|
Interest |
132.600 |
120.900 |
105.600 |
104.300 |
90.100 |
|
Exceptional Items |
0.00 |
0.000 |
0.000 |
(161.900) |
0.000 |
|
PBDT |
394.100 |
(72.400) |
296.100 |
(202.700) |
256.900 |
|
Depreciation |
162.900 |
168.400 |
175.000 |
183.400 |
189.700 |
|
Profit Before Tax |
231.200 |
(240.700) |
121.100 |
(386.100) |
67.200 |
|
Tax |
74.000 |
(82.600) |
45.600 |
(104.600) |
97.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
157.200 |
(158.100) |
75.500 |
(281.500) |
(30.200) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
157.200 |
(158.100) |
75.500 |
(281.500) |
(30.200) |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 (9 Months) |
31.03.2011 (12 Months) |
31.03.2010 (12 Months) |
|
PAT / Total Income |
(%) |
(16.28)
|
5.63 |
8.24 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.22)
|
7.30 |
10.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.54)
|
19.25 |
26.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.03)
|
0.10 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.80
|
0.50 |
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37
|
1.02 |
1.75 |
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 |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
No |
|
30] |
Major Shareholders, if
available |
No |
|
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 |
LITIGATION DETAILS
|
ITTA 191 / 2013 |
ITTASR 2400 / 2008 |
Case is: Pending |
|
||||||||||||
|
||||||||||||
|
FINANCIAL RESULTS
During the 9-month period (hereinafter referred to as 'financial year'),
The Company recorded paper production of 160,667 MT as against 136,081 MT for
the corresponding period of the previous year and 187,233 MT for the twelve
months ended March 31, 2011.
The Company has posted Rs.5939.100 Millions from paper, pulp and power
sales for the nine months ended December 2011 as against Rs.5270.200 Millions
for the corresponding period in the previous year and Rs.7818.100 Millions for
the twelve months ended March 31, 2011.
The EBIDTA for the nine months ended December 31, 2011 was Rs.1125.800
Millions as against Rs.1252.700 Millions for the corresponding previous period
and Rs.1647.200 Millions for the twelve months ended March 31, 2011. The
Company has made provisions and write offs aggregating to Rs.472.000 Millions
and deferred tax of earlier years amounting to Rs.847.500 Millions during the
financial year which resulted in net loss of Rs.978.100 Millions for the year.
MARKETING AND
EXPORTS
The Company made a sale of 139,888 MT for the nine months ended December
31, 2011 comprising of 139,786 MT of paper sales and 102 MT of pulp sales against
130,400 MT comprising of 125,667 MT of paper and 4,733 MT of pulp sale for the
corresponding period of previous year. For the twelve months ended March 31,
2011, the Company had made sale of 193,302 MT comprising of 188,569 MT of paper
sale and 4,733 MT of pulp sale.
For the nine months ended December 31, 2011, the domestic paper sales
were 124,503 MT against 109,586 MT for the corresponding period of previous
year and 166,900 for the twelve months ended March 31, 2011. Similarly, the
exports sales for the nine months ended December 31, 2011 was 15,283MT against
16,081 MT for the corresponding previous period and 21,669 MT for the twelve
months ended March 31, 2011.
While there has been a slight decrease in quantity, They were able to
substantially increase the sales realization per MT over the last year. The
Company managed to get a better net sales realization per MT over the previous
year due to upward price revisions across all grades and a change in the
product mix.
RAW MATERIAL
PROCUREMENT
Concerted efforts by APPM enabled the mills to meet 100% requirement of
pulpwood from own catchment area and overcome the stiff competition in pulpwood
procurement.
During the year, bamboo supply from government was also resumed up to
some extent.
RAW MATERIAL
RESOURCE DEVELOPMENT
120.700 Millions Quality seedlings were developed and distributed during
the planting year 2011 covering an area of 16,823 Ha under plantation against
development and distribution of 103.700 Million seedlings covering an extent of
15,000 Ha during previous 2010 planting year. Research on clonal development
has resulted into introduction of high yielding, disease resistantclones and
versatile to a wide variety of agro-climatic conditions in inland and coastal
areas.
Research and development initiatives with low cost planting techniques,
quality seed material and high yielding, short rotation planting stock have
enhanced raw material availability spread over more than 132,759 Ha. These
benefits are extended to around 44,563 families creating employment resource
pool of 66 million man-days especially in rural areas so far.
FORESTRY TARGETING
MARGINAL AND WASTELANDS
The ongoing farm forestry activities focused on the local agrarian
community of small and marginal land holdings which could be better utilized
for pulpwood plantations with minimal investmentby adopting low cost planting
technology. Introduction of Casuarina hybrid has resulted in higher yield
ensuring quality raw material to mills and higher returns to farmers. The Company's
farm forestry activities have helped in generating the pulpwood requirement to
the mills and also in sustaining the local needs of farmers by means of
generating employment and upliftment of socio-economic conditions of the
villagers and tribal communities. The Company's presence and initiatives in
greening waste lands for raw material resources have created a strong network
comprising tribal beneficiaries, self-help groups and village organizations to
fight against poverty and natural disasters.
Projects
Unit: APPM
i.
Retrofitting of
electro static precipitators (ESP)
Retrofit of ESPs for reduction of emissions and environment improvement
was completed for coal fired boiler No.5 in May 2011. Pressure parts modification
work is in progress, which is expected to be completed in May 2012.
ii.
Construction of D1
tower for DnD sequence
New RCC D1 tower for DnD sequence was taken into operation on trial in
July 2011.
iii.
Installation of a new
ESP and retrofit of recovery boiler # 4
ESP was taken into circuit in May 2011. Boiler retrofit shall be carried
out during next maintenance outage of the Mill in 2012.
iv.
Modifications in
Paper Machine # 5
New state of art design steam and condensate system equipment, new
ceramic top de-watering elements, new closed hood and PV system for post dryer
area and new micro travel variable speed high pressure oscillating showers were
installed in April 2011. New hood and PV system for pre-dryer area and UTM
pulper under size press will be completed during next maintenance outage of the
Mill in 2012.
v.
Rewinders for PM #
3 and PM # 6
A new rewinder for PM#3 was installed and trials are in progress. All
materials for the new winder on PM # 6 were
received and the erection is nearing completion.
vi.
Installation of
presses in effluent treatment plant for handling sludge
Two presses of each 20 tpd sludge handling capacity are installed and
pre-commissioning trials are in progress.
vii.
On-line monitoring
systems for stacks, ambient air and TOC analyzer for waste water
All the items have been received at site, installed and
pre-commissioning trials are in progress.
Unit: CP
i.
Retrofit of
De-Inking Plant
Plant was commissioned in July 2011 and is in regular operation.
ii.
On line monitoring
systems for stack and TOC analyzer for waste water
All the items were received at site, installed and pre-commissioning
trials are in progress. Award The Company received second prize in appreciation
of the achievements in Energy Conservation in Large Scale Industry Sector for
the year 2010-11from Government of Andhra Pradesh.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL SCENARIO
With its incredible versatility and application, paper is a ubiquitous
product with daily demand from almost all sections of society. The most
well-known applications of paper and paper industry products include writing
and printing (W and P) paper, industrial paper, specialty paper such as
tissues, newsprint, and value added products such as packaging materials,
corrugated cartons, paper cups, building materials, hospital products,
fire-resistant and water proofing materials.
Paper, made from natural and recyclable materials such as cellulose
sourced primarily from wood products as also from rags, grass and dry waste
materials, is a eco-friendly product because it is,
a. made from renewable materials;
b. sourced from forest products that are planted at a rate faster than
they are utilized, with increasing forest cover;
c. bio-degradable and recycled; and,
d. a source of renewable energy at the end of its life-cycle.
Worldwide the paper industry remains responsible to the environment and
prides itself in planting more number of trees than are used. The industry has
strived to be a responsible steward of sustainable development of forest
resources which, in turn, has added to the raw material security for the paper
manufacturers.
The clean technology management programs adopted by the paper manufacturers
have culminated in reduced environmental impact even as the paper production
volume has been stepped up. The industry has reduced its dependence on fossil
fuels, saved on energy consumption and cost, lowered waterconsumption,
successfully worked towards air purity and has been well-documented to be
non-CO 2 intensive. The paper industry is hence well-positioned to supply
larger volume of paper and has been growing despite the challenges from
alternative mediums such as internet and mobile applications.
INDIAN PAPER
INDUSTRY
The Indian paper industry is more than 140 years old with the first mill
having been commissioned in 1867. There are, at present, about 515 units
engaged in the manufacture of paper and paperboards and newsprint in India. The
country is almost self-sufficient in manufacture of most varieties of paper and
paperboards. Import, however, is confined only to certain specialty papers.
Over the years, in line with the improvement in the well-being of people
and rising literacy and aspiration levels, paper usage has increased. While
India accounts for approximately 17% of the global population, the domestic
paper industry accounts for about 1.6% of the world's production of paper and
paperboard. The estimated turnover of the industry is Rs.300000.000 Millions
(USD 6.2 billion) approximately and the industry provides employment to more
than 120,000 people directly and 340,000 indirectly.
Paper sector is dominated by small and medium size units; number of
mills of capacity 50,000 tons per annum or more is not more than 25. Less than
half a dozen mills account for almost 90% production of newsprint in the
country.
The industry was delicensed in July 1997 by the Government of India,
which enabled foreign participation and investment in the domestic industry.
Most of the paper mills are in existence for a long time and hence present
technologies fall in a wide spectrum ranging from oldest to the most modern.
Today almost every person uses paper in one form or the other. The
industry has responded to the growth in demand and the
installed capacity in India has risen from 0.137 million MT per
annum in 1951 to the current 10.8 million MT. This includes capacity
expansion of approximately 1.2 million MT in the recent past. A brief analysis of
the industry structure reveals that W and P paper capacity is 3.5 million MT,
of which 85% constitutes uncoated paper and the balance being coated varieties.
The uncoated varieties comprise of cream wove, maplitho and copier papers.
Out of the 10.8 million MT capacity referred above, paperboard
(industrial paper) accounts for 5 million MT. 58% of the productssuch as kraft
paper are used in tertiary packaging and theremaining 42% constitute consumer
packaging. Of the total industry cake, newsprint accounts for 1.9 million MT
capacity and specialty paper holds the balance 0.4 million MT.
The industry is further categorized on the basis of raw-material used
for manufacturing paper into forest-based (with a share of 21%), agro-based
(23%) and recycled fiber-based paper (56%).
There is a growing need to modernize the Indian mills, improve
productivity and build new capacities. Indian paper industry is capital, energy
and water intensive, highly fragmented and has sub-optimal economies of scale
due to use of obsolete technology.
There is however, a perceptible transformation in the industry. Medium
and larger domestic producers have been focusing on reducing cost of product
and improving quality of finished product. Some of the initiatives taken by
them include increasing the size of machines with high-speed features,
upgrading to new machine technology and increasing farm plantation activities.
The Indian paper industry is one of the world's fastest growing paper
markets, growing at a CAGR of 6.7% over the past 5 years, FY06-11 (Source:
CARE, August 2011). The paper industry performance is highly correlated with
the macro economic trends and is often demonstrated by an analogous directional
move. Over the years, the beta between
the growth trends of GDP and paper industry is nearly one. During the same 5
year periodreferred above, paper industry demand has grown at an average 0.9x
multiple of GDP.
PAPER INDUSTRY
OUTLOOK
Paperboard demand is expected to grow at the fastest rate across all segments
due to strong demand from organized retail market and flexible packaging
products. Newsprint demand is expected to grow with rise in literacy rate and
increased focus of print media companies on regional market. P and W demand is
also forecast to continue growing rapidly with increased government spending on
education and improved activity from service and manufacturing sector. As per
current estimates (Source: CRISIL, December 2011), some of the key components
of growth in the paper industry over the next five years are briefly listed
below:
- Coated and copier papers will drive W
and P paper growth by ~8%;
- Uncoated paper to grow at ~7.5%;
- Led by key drivers such as education
and office printing, branded copier paper market to grow by 6%;
- Demand for coated paper to be at ~9%
with art paper to grow by ~12% driven by organized retail, marketing
brochures and magazines;
- Paperboard demand to grow by ~7.5% with
increase in organized retail and rise in urbanization;
- Consumer packaging to grow by ~8% with
higher demand from organized retail, pharmaceuticals, textiles, food and
FMCG products;
- Average wood pulp and wastepaper prices
to decline in 2012; and,
- Operating rates to improve for
producers from 2013.
APPM is alert to the pressures of the market and is striving to improve
on all fronts including volumes, revenues, margins and cash flow. It is also
relevant to refer that while India imports about 2 million MT of pulp (both
hardwood and softwood) and faces the volatility in prices accentuated by a weakening
rupee-strong dollar trend, APPM manages its sensitivity with captive in-house
production of cost effective, good quality pulp to meet its total requirement.
Today, APPM is a low cost producer of paper in India and this strength is
likely to be retained.
PERFORMANCE REVIEW
Finished paper production for the 9-month period ending December 2011
was 160,667 MT as compared to 187,233 MT in the 12-month financial year ending
March 2011. Unbleached pulp production was 139,876 MT during the reporting
period as compared to 171,140 MT in the previous financial year.
Paper sales were 139,786 MT comprising 124,503 MT in the domestic market
and 15,283 as export sales. In 2010-11, in comparison, domestic paper sales
were 166,900 MT while export sales were 21,669 MT. Gross domestic net sales
realization was 7.5% higher over the previous year at Rs.44,891 per MT with
export realization higher by 8.7% at Rs.42,015. The Company managed to get a
better net sales realization per MT over the previous year partly due to better
market conditions and improved product pricing and partly due to change in
product mix at Unit:CP.
During the nine months ending December 2011, the revenue from operations
totaled Rs.5939.100 Millions, while Other Income was Rs.69.200 Millions. Total
revenue for the period was therefore Rs.6008.400 Millions.
Earnings before interest, depreciation and taxation (EBIDTA) were at
Rs.1125.800 Millions (before adjusting for one-time charges) constituting
18.73% of the revenue from operations. In the previous financial year 2010-11,
the corresponding amount was Rs.1647.200 Millions accounting for 20.62% of the
revenue.
Lower EBIDTA is also a function of the sensitivity attached to the
demand cycles. Market demand, volume sold and prevailing prices are normalized
in a 12-month cycle and hence are not comparable with a 9-month review period
ending December 2011.
Interest and finance charges were Rs.440.000 Millions, which accounted
for 6.92% of the gross revenue. Interest rates remained firm throughout the
period at review.
The volatility in the rupee-dollar exchange rate adversely impacted and
the Company incurred loss, primarily on account of mark-to-market (MTM) loss,
of Rs.79.000 Millions as at December 31, 2011. Such MTM losses were on account
of foreign exchange differences on long term foreign currency loans contracted
for acquisition of capital assets. Comparatively, the corresponding cost was
Rs.1.200 Millions as at March 31, 2011.
Profitability was also affected due to higher input cost (substantially
on account of the inflationary conditions in the economy) and non-recurring
loss such as write-off of plant and machinery, stores and spare parts
considered obsolete and inventory of damaged finished stock and provisioning
for legal cases and diminution in value of investments. The Company made an
internal technical review during the second and third quarter and recognized
impairment in the value of these assets aggregating to Rs.472.000 Millions.
They are non-recurring costs and have been charged to the revenue account
during the review period.
In addition, there was a non-cash charge of Rs.847.500 Millions being
provision for arrears of deferred tax liability. The Company had been recognizing
deferred tax expense arising primarily from depreciation on tangible fixed
assets on the basis of currently applicable Minimum Alternate Tax rather than
regular tax rates.
The Company had challenged the provisions of Accounting Standard 22 in
relation to this matter and filed a writ petition.
In view of the long pendency in resolution of the matter, the Company
has provided for arrears of deferred tax liability in the Profit and Loss
Account during the review period. As a result, the Company has reported a
pre-tax loss of Rs.131.600 Millions as against profit before tax of Rs.570.900
Millions reported in the earlier year. The loss after tax adjustment is
Rs.978.100 Millions. The profit after tax in the financial year ending March
2011 was Rs.449.500 Millions.
APPM OUTLOOK
APPM is well-positioned to face the challenges of tomorrow. A strong
technical team, revitalized marketing strategy, new product developments and
high-end quality products would add to traction at APPM to ride the future with
confidence.
The Company will leverage the resources, support systems and experience
available at International Paper to create one of the best integrated paper
companies and ensure sustainable growth.
The priority is to sustain momentum, create better value for products
and bring APPM closer to its customers. The Company shall add traction to its
business performance and operating results by working simultaneously with all
its key levers, a few of which are enumerated below:
- Execute the strategy of relentlessly
offering products that help customers compete more efficiently in their
addressable markets;
- Add volumes, offer niche products that
have less competition and drive higher margins with improvement in
efficiencies;
- Upgrade performance of the supply chain;
- Strive to integrate quality in all
business processes;
- Drive organizational change so that
APPM works as one team;
- Control costs, enhance earnings and
improve cash flow.
The Company seeks to grow revenue and bottom line and is striving to
participate in the improving demand scenario for paper in the market by
ensuring economies of scale, efficient usage of resources and value chain
management. The investments that continue to be made in systems, processes,
products and market are expected to enhance operational performance and meet
stakeholder expectations.
Every business carries inherent risks and uncertainties that can affect
financial conditions, results of operations and prospects. APPM has been
conscious of its risk factors and has been taking proactive steps to
mitigate/minimize them. The risk management goal is to identify and evaluate
risks as early as possible and limit business losses by taking suitable
measures. Overall, the Company aims to avoid risks that pose a threat to its
sustainable growth.
The management of APPM understands that risks can negatively impact the
attainment of both short term operational or long term strategic goals. Risk
management is a part of the business planning and controlling process and is vital
to ensure effectiveness in business success. Some of the industry specific
risks need a review:
The following factors are considered for determining the materiality:
- Some events may not be material
individually but may be found material collectively;
- Some events may have material impact
qualitatively instead of quantitatively;
- Some events may not be material at
present but may have material impact in future.
GENERAL ECONOMIC
FACTORS
Continued adverse business developments in general could have an adverse
effect on the demand for paper products, financial conditions and results of
operation. Paper industry has a positive correlation to economic development
and lower GDP growth could affect business fortunes.
Despite the global pressures, the Indian economy is expected to grow
much higher than the global average and report a GDPgrowth of 8% in 2011-12.
The Planning Commission of the Government of India has projected 9% annual
average economic growth rate during 2012-17, in the approach document to the
12th Plan.
Paper industry would be a beneficiary of the stimulus packages and
investment in education being made by the Union Government. Higher literacy and
aspiration levels of the peopleare expected to further increase the growth rate
of the paper industry.
UNSECURED LOAN
(Rs.
In Millions)
|
PARTICULARS |
31.12.2011 (9 Months) |
31.03.2011 (12 Months) |
|
Term loan from banks |
735.000 |
0.000 |
|
Deferred payment liabilities |
295.292 |
284.997 |
|
Deposits |
22.150 |
23.740 |
|
Deposits |
61.450 |
70.749 |
|
Total |
1113.892 |
379.486 |
|
Represents 14 years interest free sales tax deferment loan received
from Government of Andhra Pradesh. Repayment commences from March 31, 2013
based on the deferment availed in the respective year. Public deposit aggregating to Rs.61.450 Millions is repayable within 1
year and Rs.22.150 Millions is repayable within next 2 years. Unclaimed
public deposit Rs.1.701 Millions (March 31, 2011: Rs.2.360 Millions) is
included under the head 'Unpaid matured deposits and interest accrued
thereon'. Term loan from banks has a maturity tenor of 15 months, renewable
automatically for successive periods of 15 months, subject to consent of both
parties. |
||
STATEMENT OF AUDITED FINANCIAL
RESULTS FOR THE QUARTER AND FIFTEEN MONTHS PERIOD ENDED MARCH 31, 2013
(Rs.
In Millions)
|
|
|
Three months ended |
Fifteen months period ended |
||
|
Sl. No |
Particulars |
|
|
|
March 31, 2013 |
|
|
|
March 31, 2013 |
December 31, 2012 |
March 31, 2012 |
|
|
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
(Audited) |
|
1 |
Income |
|
|
|
|
|
|
(a) Net
Sales / Income from operations (Net of Excise duty) |
2615.642 |
2442.089 |
2991.366 |
12305.035 |
|
|
(b) Other
Income |
34.838 |
44.324 |
42.795 |
231.126 |
|
|
Total
Income |
2650.480 |
2486.413 |
3034.161 |
12536.161 |
|
2 |
Expenditure |
|
|
|
|
|
|
a] Cost of
materials consumed |
10,61.306 |
868.479 |
684.808 |
4053.116 |
|
|
b]
Purchase of stock-in-trade |
3.641 |
23.450 |
|
60.235 |
|
|
c] Changes
in inventories of finished goods, work-in-progress and |
(1.610) |
108.034 |
611.486 |
773.573 |
|
|
stock-in-trade |
|
|
|
|
|
|
d] Stores
and spares consumed |
500.094 |
523.040 |
548.020 |
2498.796 |
|
|
e] Power
and Fuel expenses |
194.338 |
245.108 |
221.507 |
1147.826 |
|
|
f]
Employee benefits expense |
234.785 |
240.818 |
206.607 |
1123.385 |
|
|
g] Loss on
discarded assets |
0.107 |
2.478 |
1.455 |
27.221 |
|
|
h] Other
expenses (Refer Note 4) |
310.751 |
411.493 |
233.497 |
1464.342 |
|
|
Total |
2303.412 |
2422.900 |
2507.380 |
11148.494 |
|
3 |
EBIDTA |
347.068 |
63.513 |
526.781 |
1387.667 |
|
4 |
Finance
costs |
90.127 |
104.306 |
132.643 |
553.625 |
|
5 |
Depreciation
and amortisation expense |
189.717 |
183.366 |
162.931 |
879.372 |
|
6 |
Profit/(Loss)
from ordinary activities after finance costs but before Exceptional items
& Tax expense |
67.224 |
(224.159) |
231.207 |
(45.330) |
|
7 |
Exceptional items |
-- |
161.932 |
-- |
161.932 |
|
8 |
Profit/(Loss) from Ordinary
activities before tax |
67.224 |
(386.091) |
231.207 |
(207.262) |
|
9 |
Tax Expense |
97.386 |
(104.624) |
73.965 |
29.761 |
|
10 |
Net Profit/(Loss) for the period |
(30.162) |
(281.467) |
157.242 |
(237.023) |
|
11 |
Paid - up equity share capital (face value
Rs.10/- each) |
397.700 |
397.700 |
397.700 |
397.700 |
|
12 |
Reserves
(Excluding revaluation reserve) |
-- |
-- |
-- |
4170.428 |
|
13 |
Earnings per share - Basic (Rs.) |
(0.76) |
(7.08) |
3.95 |
(5.96) |
|
14 |
Earnings per share
– Diluted (Rs.) |
(0.76) |
(7.08) |
3.95 |
(5.96) |
SELECT
INFORMATION FOR THE QUARTER AND FIFTEEN MONTHS PERIOD ENDED MARCH 31, 2013
(Rs.
In Millions)
|
Sl. No. |
PARTICULARS |
Three months ended |
Fifteen months period ended March
31, 2013 |
||
|
|
|
March 31, 2013 |
December 31, 2012 |
March 31, 2012 |
|
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
|
1 |
Public
share holding |
|
|
|
|
|
|
-
Number of shares |
9,942,510 |
9,942,510 |
9,942,510 |
9,942,510 |
|
|
-
Percentage of share holding |
25.00 |
25.00 |
25.00 |
25.00 |
|
2 |
Promoters
and promoter group Shareholding |
|
|
|
|
|
|
Non-encumbered |
|
|
|
|
|
|
-
Number of shares |
29,827,529 |
29,827,529 |
29,827,529 |
29,827,529 |
|
|
|
|
|
|
|
|
|
-
Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
100.00 |
100.00 |
100.00 |
100.00 |
|
|
Particulars |
Three months ended |
|
|
|
March 31, 2013 |
|
B |
INVESTOR
COMPLAINTS |
|
|
|
Pending at
the beginning of the quarter |
- |
|
|
Received
during the quarter |
6 |
|
|
Disposed
of during the quarter |
6 |
|
|
Remaining
unresolved at the end of the quarter |
- |
|
C |
STATEMENT
OF ASSETS AND LIABILITIES |
31.03.2013 |
|
a |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders'
funds |
|
|
|
(a) Share
Capital |
397.700 |
|
|
(b)
Reserve and Surplus |
4170.428 |
|
|
Sub-total
- Shareholders' fund |
4568.128 |
|
|
|
|
|
2 |
Non-current
liabilities |
|
|
|
(a)
Long-term borrowings |
3218.435 |
|
|
(b)
Deferred tax liabilities (Net) |
1243.163 |
|
|
(c) Other
long-term liabilitie s |
9.894 |
|
|
(d)
Long-term provisions |
1.851 |
|
|
Sub-total
- Non-current liabilities |
4473.343 |
|
3 |
Current
liabilities |
|
|
|
(a)
Short-term borrowings |
548.053 |
|
|
(b) Trade
payables |
1070.581 |
|
|
(c) Other
current liabilities |
1415.540 |
|
|
(d)
Short-term provisions |
- |
|
|
Sub-total
- Current liabilities |
3034.174 |
|
|
|
|
|
|
TOTAL - EQUITY AND LIABILITIES |
12075.645 |
|
|
|
|
|
|
B ASSETS |
|
|
|
1. Non-current
assets |
|
|
|
a] Fixed assets |
|
|
|
Tangible assets |
8162.156 |
|
|
Intangible
assets |
46.566 |
|
|
Capital
work-in-progress |
223.718 |
|
|
b] Non-current
investment |
160.264 |
|
|
c] long Term
loans and Advances |
870.073 |
|
|
Sub-total – Non-
current assets |
9462.777 |
|
|
|
|
|
|
2.
CURRENT ASSETS |
|
|
|
Inventories |
1447.931 |
|
|
Trade Receivables |
455.788 |
|
|
Cash & Bank Balances |
165.640 |
|
|
Short Term loans and advances |
533.867 |
|
|
Other current assets |
9.642 |
|
|
Sub-total – Current Assets |
3181.359 |
|
|
|
|
|
|
TOTAL
- ASSETS |
12075.645 |
Note:
- The audited results were reviewed
by the Audit Committee and approved by the Board of Directors at their
meeting held on April 23, 2013.
- During the previous period ended
December 31, 2011, the Company accrued Rs. 41.599 Millions towards
managerial remuneration paid to the erstwhile Directors, which was in
excess of the maximum limits specified in Schedule XIII to the Companies
Act, 1956. The excess remuneration amounted to Rs. 19.464 Millions. The
members at the Annual General Meeting held on March 22, 2012 approved the
remuneration payable to the Directors, subject to the Central Government
approval. The requisite application was made to the Central Government on
April 17, 2012 and the Company received approvals towards remuneration
paid to certain directors aggregating to Rs. 5.281 Millions. The
management is awaiting the Central Government approval for the balance
remuneration of Rs. 14.183 Millions.
- Exceptional Items:
During
the quarter ended December 31, 2012, the Company based on its internal
assessment of certain disputed matters relating to prior years and based on the
legal opinion obtained on such matters, made a provision of Rs. 161.932
Millions, being Rs. 156.131 Millions towards interest and Rs. 5.801 Millions
towards taxes.
- The Company entered into an
arrangement with a fellow subsidiary, pursuant to which professional
services were rendered. The company made an application on July 3, 2012 to
the Regional Director, Ministry of Corporate Affairs for approval and
pending such approval, the Company recognized and accounted a provision of
Rs. 140.000 Millions in the books during the quarter/ twelve months period
ended December 31, 2012. Subsequently, the Company had withdrawn the
application on February 6, 2013 and the provision was reversed in the
books during the quarter ended March 31, 2013.
- The Company is in the business of
manufacture and sale of pulp, paper and paper board. Management views
manufacture and sale of pulp, paper and paper boards as a single
reportable business segment.
- The Board of Directors at their
meeting held on January 22, 2013 had approved the extension of the
financial year from January 1, 2012 to December 31, 2012 till March 31,
2013. Hence, the current financial results is for a period of fifteen
months ended March 31, 2013.
- The Board of Directors at their
meeting held on December 6, 2011, had approved the change of the financial
year ending March to December every year. Pursuant to the change, the
previous financial year, is for a period of nine months ended December 31,
2011.
- The figures of the three months
ended March 31, 2013 are the balancing figures between the audited figures
in respect of the full financial year (fifteen months period ended March
31, 2013) and the published year to date figures upto the twelve months
period ended December 31, 2012.
- The figures of the previous
periods have been regrouped / reclassified, wherever considered necessary
to correspond with the current period's classification / disclosure.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.12.2011 |
|
i. Commitments/contingent liabilities |
|
|
a. Guarantees issued by banks |
68.739 |
|
b. Letters of credit outstanding |
162.908 |
|
c. Corporate guarantee given to the Forest
Department of Government of Andhra Pradesh |
147.209 |
|
ii. Claims against the Company not acknowledged as debts in respect of |
|
|
a. Income tax matters, pending decisions on
various appeals made by the Company and by the Department |
5.251 |
|
b. Excise matters, under dispute |
151.099 |
|
c. Sales tax matters, under dispute |
30.628 |
|
d. Other matters, under dispute |
33.412 |
|
e. Vacant land tax |
35.739 |
|
f. Demand raised by Eastern Power
Distribution Corporation of Andhra Pradesh Limited for surplus power supplied
by APGPCL disputed by the Company. An amount of Rs.7.698 Millions paid under protest (March 31, 2011:
Rs.7.698 Millions) has been
grouped under loans and advances. The appeal filed by APTRANSCO is pending
before the Hon'ble High Court of Andhra Pradesh in which other companies
similarly placed are made respondents. |
8.766 |
|
iii. Estimated amount of contracts remaining
to be executed on capital account and not provided for (net of
advances) |
104.389 |
|
iv. Commitment under Export Promotion
Capital Goods (EPCG) Scheme |
5136.062 |
FIXED ASSETS
- Land
- Road and Drainages
- Buildings
- Plant and Machinery
- Electrical Installations
- Furniture and Fixtures
- Vehicles
- Goodwill
WEBSITE DETAILS
NEWS
SAT ASKS AP PAPER TO PAY NON-COMPETE FEE TO
INVESTORS
SEPTEMBER 12, 2012
Securities Appellate Tribunal (SAT) has asked AP Paper (International Paper hold’s 75%) to pay non-compete fee to all investors who tendered in the open offer, reports CNBC-TV18's Sajeet Manghat.
SAT has dismissed the International Paper petition which challenged Securities and Exchange Board of India's (Sebi) order asking International Paper to pay the non-compete fee to all the investors.
The open offer for all the AP Paper investor was at Rs 544 per share and Sebi argue that this non-compete fee should be provided to all the shareholders who are tendering the shares in the open offer. The open offer for AP Paper is closed so only those shareholders who have tendered their share and whose shares have been accepted in the open offer will be getting this non-compete fee of Rs 130.73 per share.
The money as part of the entire proceeding, the entire non-compete fee was supposed to be deposited in an escrow account. As per the decision of SAT or the higher court it was supposes to be either given to the shareholders or taken back. International Paper has recourse to go for an appeal to the Supreme Court after that the decision will be taken.
As far as current shareholders are concerned, they will not be having any impact on it except for those shareholders who have already tendered and they have got the open offer price of Rs 544 per share.
At 12:37 hrs the share was quoting at Rs 347.70, up Rs 4.95, or 1.44%.
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.56.50 |
|
|
1 |
Rs.86.01 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.