MIRA
INFORM REPORT
|
Report Date : |
06.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
EMAMI PAPER MILLS LIMITED |
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Registered Office : |
687 Anandapur, Kasba Golpark, E M |
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Country : |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
26.09.1981 |
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Com. Reg. No.: |
21-034161 |
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Paid-up Capital : |
Rs.120.998 Millions |
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CIN No.: [Company
Identification No.] |
L21019WB1981PLC034161 |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business : |
Manufacturing of Paper |
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No. of Employees : |
600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6900000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an well established company having a good track record.
There appears slight dip in profitability during 2012. However, general financial strength seems to be good. Trade relations
are reported to be fair. Business is active. Payments are reported to be
regular and as per commitment. In view of experience directors, the company can be considered normal
for business dealings at usual trade terms and condition. |
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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
SHORT TERM BANK FACILITIES : CARE A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
21.11.2012 |
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Rating Agency Name |
CARE |
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Rating |
LONG TERM BANK FACILITIES : CARE A |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
21.11.2012 |
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/ Investor Relations/ Marketing Division : |
687 Anandapur, Kasba Golpark, E M |
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Tel. No.: |
91-33-66136264/ 66136471 |
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Fax No.: |
91-33-66136400 |
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E-Mail : |
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Website : |
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Head Office : |
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Tel. No.: |
91-33-2489330 / 6035 / 4076 / 6029/ 25488654 |
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Fax No.: |
91-33-2489288 |
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Telex : |
021-2337 MONO IN |
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Factory 1 / Warehouse : |
Balgopalpur, Post Rasulpur–756 020, Balasore, Orissa, India |
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Tel. No.: |
91-6782-75723/755/756 |
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Fax No.: |
91-6782-75778 |
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Factory 2 : |
R. N. Tagore Road,
Alambazar, Dakhneswar, Kolkata – 700035, West |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Radhe Shyam Goenka |
|
Designation : |
Executive Chairman |
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Address : |
110 A, Southern Avenue,
Kolkata – 700029, West |
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Date of Birth/Age : |
05.01.1947 |
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Qualification : |
M.Com., LL.B |
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Previous Employment
: |
Kemco Chemicals – Advisor |
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Date of Appointment : |
23.10.2000 |
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Name : |
Mr. Radhe Shyam Agarwal |
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Designation : |
Director |
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Address : |
118, Southern Avenue, Kolkata – 700029, West |
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Date of Birth/Age : |
06.01.1946 |
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Date of Appointment : |
26.03.1994 |
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Name : |
Mr. Manish Goenka |
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Designation : |
Whole Time Director |
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Address : |
110 A, Southern Avenue, Kolkata – 700029, West |
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Date of Birth/Age : |
07.02.1974 |
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Date of Appointment : |
01.02.2000 |
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Name : |
Mr. Aditya Vardhan Agarwal |
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Designation : |
Director |
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Address : |
118, Southern Avenue, Kolkata – 700029, West |
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Date of Birth/Age : |
06.01.1975 |
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Date of Appointment : |
23.10.2000 |
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Name : |
Mr. Shrawan Kumar Todi |
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Designation : |
Director |
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Address : |
2 Queens Park, Kolkata – 700019, West |
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Date of Birth/Age : |
15.08.1943 |
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Date of Appointment : |
05.04.2003 |
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Name : |
Mr. U. Gururaja Bhat |
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Designation : |
Director |
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Address : |
A3, Amaravatee Appartments, 2nd |
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Date of Birth/Age : |
15.04.1938 |
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Date of Appointment : |
26.09.2003 |
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Name : |
Mr. Nandananadan Mishra |
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Designation : |
Director |
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Address : |
Flat No.D053, |
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Date of Birth/Age : |
20.10.1942 |
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Date of Appointment : |
22.03.2006 |
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Name : |
Mr. P. S. Patwari |
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Designation : |
Executive Director |
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Address : |
58 B Block, D New Alipore, Kolkata – 700053, West |
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Date of Birth/Age : |
126.03.1955 |
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Date of Appointment : |
28.11.1994 |
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Name : |
Mr. H. M. Marda |
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Designation : |
Director |
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Name : |
Mr. S. Balasubramanian |
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Designation : |
Director |
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Name : |
Mr. J. N. Godbole |
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Designation : |
Director |
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Name : |
Mr. J. K. Khetawat |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ghanshyam Saraf |
|
Designation : |
Vice President (Finance)and Company Secretary |
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Address : |
AE 397, |
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Date of Birth/Age : |
01.01.1957 |
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Date of Appointment : |
28.05.1994 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
5498073 |
9.09 |
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|
39735063 |
65.68 |
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|
125000 |
0.21 |
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(B) Public Shareholding |
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|
11508448 |
19.02 |
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|
2056066 |
3.40 |
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|
1560000 |
2.58 |
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|
16400 |
0.03 |
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|
15900 |
0.03 |
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|
500 |
0.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total |
60499050 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionsBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Paper |
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Products : |
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Brand Name : |
“EMAMI”. |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Paper |
Tones |
145000 |
1,44,712 |
|
Generation of Electricity |
MW |
20 |
1,284.52 Kwh Lacs |
i)
Licensed capacity not
applicable in terms of Government of India’s Notification
ii)
Installed capacities are
certified by the management
iii)
Generation of electricity
is for internal consumption
GENERAL INFORMATION
|
No. of Employees : |
600 (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 : |
S. K. Agrawal and Company Chartered Accountants |
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Address : |
4-A, |
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Unit Auditors : |
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Name : |
Salarpuria Jajodia and Company Chartered Accountants |
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Address : |
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Group Companies : |
· Pan Emami Cosmed Limited · Suraj Viniyog (Private) Limited · Suntrack Commerce(Private) Limited · Emami Frank Ross Limited · TMT Viniyogan Limited · Emami Capital Markets Limited · Emami International Private Limited · Premier Ferro Alloys and Securities Limited · Emami Cement Limited · Aviro Vyapaar (Private) Limited · South City Projects(Kolkata) Limited · Emami Bangladesh Limited · AMRI Hospitals Limited · Auto Hitech Private Limited · Emami Vridhi Commercial Private Limited · New Age Realty Private Limited · Emami Skyhigh Private Limited · Emami Properties Private Limited · Emami Construction Private Limited · Orbit Projects Private Limited · Swastik Promoters Private Limited · Zandu Realty Limited · Bansilal Janki Devi Agarwal Trust · CRI International Limited · Emami Home Private Limited · Karan Business Private Limited · Sneha Abasan Private Limited · Sneha Gardens Private Limited · Ajanta Suppliers Private Limited · Emami High Rise Private Limited · Emami Enclave Makers Private Limited · Bhanu Vyapaar (Private) Limited · Diwakar Viniyog (Private) Limited · Emami Limited · EPL Securities Limited · Emami Realty Limited · Emami Group of Companies Private Limited · Emami Biotech Limited · Newway Constructions Limited · Prestige Vyapaar Limited · Emami Infrastructure Limited · CRI Limited. · Emami UK Limited · Emami International FZE · EFL Foods Limited · Emami Rainbow Niketan Private Limited · Nathvar Tracon Private Limited · Octagon BPO Private Limited · Emami Ashiana Private Limited · Delta PV Limited · A Rajabasan Private Limited · Basera Enclave Makers Private Limited · Orbit Realty Infrastructure Limited · Emami Foundation · Kesar Deo Ratni Devi Goenka Trust · CRI (Sanghai) Company Limited · Medal Chemical and Research Works Limited · Zen Business Private Limited · Sneha Enclave Private Limited · Sneha Niketan Private Limited ·
Aviro Vanijya Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
62500000 |
Equity Shares |
Rs.2/- each |
Rs. 125.000 Millions |
|
10000 |
6% Redeemable Non Cumulative Preference Shares |
Rs.100/- each |
Rs. 1.000 Million |
|
|
TOTAL |
|
Rs. 126.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60499050 |
Equity Shares |
Rs.2/- each |
Rs. 120.998 Millions |
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|
|
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|
Note:
a) Reconciliation of
the shares outstanding at the beginning and at the end of the reporting year
|
Particulars |
Equity Shares |
|
|
As at 31.03.2012 |
||
|
No. of Shares |
Rs. In Millions |
|
|
At the beginning of the period |
6,04,99,050 |
120.998 |
|
At the end of the period |
6,04,99,050 |
120.998 |
b) Terms / rights
attached to equity shares
The company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pay dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
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 the number of equity shares held by the shareholders.
c) Shareholders
holding more than 5% shares in the company
|
Name of Shareholder |
As at 31.03.2012 |
|
|
No. of Shares |
% of Holding |
|
|
a) Diwakar Viniyog Private Limited |
98,05,737 |
16.21% |
|
b) Emami Private Limited |
79,46,000 |
13.13% |
|
c) Suntrack Commerce Private Limited |
76,33,900 |
12.62% |
|
d) Bhanu Vyapaar Private Limited |
60,05,250 |
9.93% |
AS ON 13.08.2012
Authorised Capital : Rs. 324.000
Millions
Issued, Subscribed & Paid-up Capital : Rs. 320.998 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 |
120.998 |
120.998 |
120.998 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1608.958 |
1573.830 |
1483.969 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1729.956 |
1694.828 |
1604.967 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3360.359 |
3171.500 |
3945.210 |
|
|
2] Unsecured Loans |
704.000 |
0.000 |
271.740 |
|
|
TOTAL BORROWING |
4064.359 |
3171.500 |
4216.950 |
|
|
DEFERRED TAX LIABILITIES |
368.907 |
345.728 |
303.655 |
|
|
|
|
|
|
|
|
TOTAL |
6163.222 |
5212.056 |
6125.572 |
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4417.264 |
3861.012 |
4059.125 |
|
|
Capital work-in-progress |
696.746 |
102.654 |
52.534 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.765 |
5.765 |
30.040 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
781.425
|
764.604
|
698.726
|
|
|
Sundry Debtors |
504.572
|
712.560
|
754.128
|
|
|
Cash & Bank Balances |
228.507
|
40.988
|
62.913
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
791.240
|
603.439
|
671.073
|
|
Total
Current Assets |
2305.744
|
2121.591
|
2186.840
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
90.822
|
79.731
|
22.707
|
|
|
Other Current Liabilities |
1123.012
|
751.967
|
137.791
|
|
|
Provisions |
48.463
|
47.268
|
42.469
|
|
Total
Current Liabilities |
1262.297
|
878.966
|
202.967
|
|
|
Net Current Assets |
1043.447
|
1242.625
|
1983.873
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6163.222 |
5212.056 |
6125.572 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4896.900 |
4298.401 |
3978.942 |
|
|
|
Other Income |
58.949 |
69.639 |
20.088 |
|
|
|
TOTAL (A) |
4955.849 |
4368.040 |
3999.030 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2800.387 |
2628.283 |
|
|
|
|
Employee benefits expense |
297.411 |
279.217 |
|
|
|
|
Other expenses |
1101.314 |
836.394 |
|
|
|
|
(Increase) / Decrease in inventories of Finished Goods and Work-in-Progress |
62.430 |
(96.622) |
|
|
|
|
TOTAL (B) |
4261.542 |
3647.272 |
3347.810 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
694.307 |
720.768 |
651.220 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
306.585 |
274.035 |
239.345 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
387.722 |
446.733 |
411.875 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
271.622 |
265.759 |
294.090 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
116.100 |
180.974 |
117.785 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
33.030 |
42.322 |
47.891 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
83.070 |
138.652 |
69.894 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
103.276 |
56.813 |
79.388 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
36.300 |
36.300 |
36.300 |
|
|
|
Tax on Dividend |
5.888 |
5.889 |
6.169 |
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
50.000 |
|
|
BALANCE CARRIED
TO THE B/S |
94.158 |
103.276 |
56.813 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
21.387 |
55.897 |
14.921 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
488.703 |
628.547 |
555.399 |
|
|
|
Stores & Spares |
49.441 |
33.001 |
39.228 |
|
|
|
Capital Goods |
324.903 |
12.449 |
2.844 |
|
|
TOTAL IMPORTS |
863.047 |
673.997 |
597.471 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.37 |
2.29 |
1.16 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
1133.600 |
1218.400 |
1288.500 |
1417.200 |
|
Total Expenditure |
971.500 |
1037.100 |
1103.000 |
1229.300 |
|
PBIDT (Excl
OI) |
162.100 |
181.300 |
185.500 |
187.900 |
|
Other Income |
28.800 |
27.700 |
25.500 |
13.200 |
|
Operating
Profit |
190.900 |
209.000 |
211.000 |
201.100 |
|
Interest |
108.400 |
100.800 |
107.500 |
62.600 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
82.500 |
108.200 |
103.500 |
138.500 |
|
Depreciation |
72.700 |
73.800 |
73.900 |
83.000 |
|
Profit
Before Tax |
9.800 |
34.400 |
29.600 |
55.500 |
|
Tax |
2.900 |
6.500 |
4.500 |
(0.100) |
|
Reported PAT |
6.900 |
27.900 |
25.100 |
55.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
6.900 |
27.900 |
25.100 |
55.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total
Income |
(%) |
1.68
|
3.17
|
1.75
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.37
|
4.21
|
2.96
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.73
|
3.03
|
1.89
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.11
|
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.35
|
1.87
|
2.63
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.83
|
2.41
|
10.77
|
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) |
Yes |
|
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 |
UNSECURED LOANS
DETAILS:
(Rs.
In Millions)
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Loans from Bodies Corporate |
704.000 |
0.000 |
|
|
|
|
|
TOTAL |
704.000 |
0.000 |
|
NOTE: Terms of Repayment of Unsecured Loans: Repayable on demand after 31st March 2014. |
||
FINANCIAL PERFORMANCE
The Company strengthened its leadership in the newsprint segment and continued to be the lowest cost manufacturer in the country. The Company's commitment in delivering high quality products to customers has been a major reason for maintaining prestigious position in the industry and allowed the Company to achieve better sales realization against the stiff competition with imported newsprint.
The Company registered a considerable growth of 13.92% in the turnover from Rs.4298.400 Millions in 2010 - 11 to Rs.4896.900 Millions during the year. The Company achieved another landmark by registering a record production of 144920 MT for the year. Operating profit (PBDIT) was marginally lower at Rs.694.300 Millions as against Rs.720.800 Millions last year despite sharp increase in the cost of raw material, coal and financing charges. Directors are pleased to inform that in spite of turbulent business environment, the company, based on its intrinsic strength, has maintained its performance and outperformed the industry.
With the increased focus on the literacy by the Government and allocation of large funds for education and print media sector, demand of the company's products is expected to be very promising. Therefore, overall performance of the Company is expected to be improved substantially in the coming years.
MANAGEMENTS DISCUSSIONS AND ANALYSIS
GLOBAL ECONOMY
The global economy rebounds in 2010, improves marginally in 2011 led by demand revival in key global economies. In Asia and Middle East, Europe and Latin America, demand grew by over 7 per cent during the year on the back of a revival in the macroeconomic environment. Growing domestic demand has encouraged large capacity additions in Asia where around 41 million tonnes of paper and board capacity are likely to be added over the next 5 years. Of this, China alone is expected to add around 30 million tonnes of capacity while India would add 4 to 5 million tonnes.
INDIAN ECONOMIC
OVERVIEW
The Indian Economy is estimated to grow over 7 per cent during 2012 and it is further expected that the growth momentum is likely to continue over the next few years.
With the increasing per capita income, growing emphasis on inclusive growth and faster development of infrastructure, education and health sector, India is well poised for major leap forward. Twelfth Five Year Plan in India is expected to further boost up the aforesaid sectors resulting in the great demand for cultural grade and industrial grade paper required for education, media and industrial sectors. But rising costs and inflation is a matter of concern. They do hope that effective steps will be taken to curb this trend without sacrificing the current growth momentum.
INDIAN PAPER INDUSTRY
Consumption of paper and paper board is closely linked to the economic development of a country. In India, though the per capita consumption of paper is low, it is gradually improving with buoyant economic growth. Industrial production, expenditure incurred on the print media, government spending on education, population growth and literacy levels are other contributing factors. With stable economic growth in the country, domestic demand for paper (including newsprint) has been steadily increasing over the years. It has grown at a 4-year CAGR of around 7 per cent to reach around 11.6 million tonnes in 2011-12 and expected to reach around 17 - 17.5 million tonnes in 2016-17.
The paper industry's market size (including newsprint) in 2010-11 has been estimated at Rs.445000.000 Millions. It has grown at a CAGR of 8.7 per cent over the last 4 years from around Rs.320000.000 Millions in 2006-07. Of all the segments, paperboard has been the highest value segment in 2010-11 accounting for a share of around 42 per cent of the total market size. This was followed by W and P paper at about 37 per cent and newsprint at about 13 per cent. Specialty paper segment accounted for about 8 percent in 2010-11.
Around 215,000 new educational institutions are expected to be established in the country between 201011 and 2015-16, as an outcome of the Indian government's Right to Education Act (RTE) initiative. In 2009, the government had passed the RTE to stimulate the spread of education in the country. Correspondingly, the Gross Enrolment Ratio is expected to increase to 90 per cent by 2015 from 71 per cent in 2008. Additionally, initiatives like Rashtriya Madhyamik Shiksha Abhiyan and Sarva Shiksha Abhiyan have boosted demand for W and P paper.
The paperboard segment caters to the packaging of manufactured goods. It can be further classified into tertiary packaging, which includes kraft paper and consumer packaging, which includes greyback paperboard, white-back board, folding box board (FBB) and solid bleached board (SBB). Demand for paperboard is closely linked to the level of industrial activity in the country.
Out of total industrial demand in 2010-11, kraft paper accounted for nearly 60 per cent, recycled boards like greyback / whiteback accounted for 31 per cent and virgin boards like FBB / SBB accounted for 9 per cent. Demand for paperboard has increased at a CAGR of 6.9 per cent to an estimated 5.0 million tonnes in 2010-11 from around 3.9 million tonnes in 2006-07.
The business environment in the sector is quite challenging and the companies producing high quality product and pricing at competitive rates alone can sustain and flourish in the domestic and international markets.
Paper industry has been granted a status of a priority sector for foreign collaboration and foreign equity participation up to 100% and is entitled to receive automatic approval from the Reserve Bank of India. More foreign players are expected to join the industry in the coming years.
Demand for paper and paperboard closely follow the economic growth of a country and have a positive correlation to the prevailing economic trends. In India, the demand drivers and growth triggers have come from a combination of factors:
·
the
rising level of national income;
·
the growing per capita disposable income;
·
rising aspiration levels of the people;
·
increasing size of the population;
·
spread of education and literacy throughout the
country;
·
government's several initiatives that focus on
education; and
·
higher level of industrial activity and corporate
spending.
Consistent economic growth in India is expected to result in the robust demand for paper, which has grown on an average 8% for past few years. During the past 5 years, newsprint has registered a growth of 13% while writing and printing paper registered growth of 7 V2%. The Company operates in these sectors.
Emami Paper mill is the largest newsprint manufacturer in India and producing world class product and selling the same against stiff competition with the imported newsprint. With the constant high demand of its product, EPM expects strong financial performance in the coming years.
INDIAN NEWSPRINT
INDUSTRY
The newsprint market in India is characterized with voluminous demand and high growth rate. However capacity of Indian paper mills is insufficient to meet the demand and almost 62% of the demand is met by way of import of newsprint. Thus this market is still very much open to absorb further expansions by the Indian Players, provided quality newsprint as per customer requirements are supplied at a competitive price.
CRISIL Research estimates demand for newsprint to grow by 9-10 per cent CAGR from 2.1 million tonnes in 2011-12 to 3.4 million tonnes in 2016-17, faster than the growth in circulation of print media. The sharper rise is also attributed to the expected rise in the number of pages per newspaper, mainly driven by rise in advertising spends of corporate. Rising literacy levels in the country have been driving the growth of print media in the country.
The National Youth Readership study in 2009 discloses following interesting facts those have major bearing over the Indian newsprint market.
·
Nearly
24% of the household have newspaper subscription.
·
Four out of every seven households of graduates and
three of every eight urban households with literates buy a newspaper.
·
Despite television being the most popular source of
information (78%), followed by newspapers (53%), the later cored over
television for news and current affairs information source.
·
Literacy increased from 64.83% in 2001 to 74.04% in
2011, as per census 2011.
India has more daily newspaper than any other nation and out of world's 100 largest newspapers 20 are Indian.
Manufacturing newsprint through the waste paper is prevalent in India. Since India does not have a developed waste paper collection system, raw material availability is low and prices are high. Consequently, imports of waste paper accounts for 55-60% of the total waste paper consumed (mostly from the US, the world's largest waste paper market).
AWARDS
The Company received the following awards during the year:
ENERGY AWARD:
2011- 'National Award for Excellence in Energy Management- 2011' by CII - GBC Hyderabad. This prestigious award was received from Dr. Ajay Mathur, Director General, and Bureau of Energy Efficiency in 10th Energy Efficiency Summit 2011.
For Energy Management, Emami has also received the First Prize for "NATIONAL ENERGY CONSERVATION AWARD" for the Pulp and Paper Sector from the Ministry of Power, Government of India for the year 2009-10
EXCELLENCE AWARD:
2011- Silver Certificate of Merit of The Economic Times India Manufacturing Excellence Award 2011 for the efforts taken by the Plant and its personnel in enhancing manufacturing and supply chain excellence. This award is jointly hosted by The Economic Times in collaboration with Frost and Sullivan.
CONTINGENT LIABILITY
(AS ON 31.03.2012):
(i) Outstanding
guarantees and letters of credit furnished by the bankers on behalf of the
Company secured by hypothecation of current assets, as specified in note 2.7 –
Rs.56.374 Millions (Rs.251.260 Millions).
(ii) Sales tax /
VAT / Entry Tax / Central Excise duties / Service tax / ESI Contribution and
other taxes under appeal (net of advances) – Rs.67.577 Millions (Rs.4.687
Millions).
(iii) Bonds /
Undertakings given under EPCG scheme to Custom Authority – Rs.84.166 Millions
(Rs.57.874 Millions)
(iv) Withdrawal of
incentive tariff of electricity by NESCO (net of advance) – Rs.4.626 Millions
(Rs.4.626 Millions)
AUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 31ST MARCH, 2013
(Rs. In Millions)
|
Sr. No. |
Particular |
3 months Ended |
Preceding 3 Months Ended |
Current Year Ended |
|
|
|
31.03.2013 (Audited) |
31.12.2012 (Reviewed) |
31.03.2013 (Audited) |
|
1. |
Income from
Operations |
|
|
|
|
|
Net Sales |
1417.200 |
1303.200 |
5100.200 |
|
|
Net Sales/Income
from Operations |
1417.200 |
1303.200 |
5100.200 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
749.500 |
743.000 |
3001.700 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
120.300 |
43.300 |
70.900 |
|
|
Employee Benefits Expenses |
60.600 |
65.600 |
245.200 |
|
|
Power and Fuel |
169.400 |
165.600 |
634.300 |
|
|
Depreciation and Amortization Expenses |
83.000 |
73.900 |
303.300 |
|
|
Other Expenses |
129.500 |
100.200 |
431.400 |
|
|
f) Total |
1312.300 |
1191.600 |
4686.800 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
104.900 |
111.600 |
413.400 |
|
|
|
|
|
|
|
4. |
Other Income |
13.200 |
0.700 |
18.100 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
118.100 |
112.300 |
431.500 |
|
|
|
|
|
|
|
6. |
Interest |
62.600 |
82.700 |
302.200 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
55.500 |
29.600 |
129.300 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
55.500 |
29.600 |
129.300 |
|
|
|
|
|
|
|
10. |
Tax Expense |
(0.100) |
4.500 |
13.800 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
55.600 |
25.100 |
115.500 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
55.600 |
25.100 |
115.500 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
121.000 |
121.000 |
121.000 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
2208.600 |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
0.92 |
0.41 |
1.91 |
|
|
b) Basic and diluted EPS after extraordinary items |
0.92 |
0.41 |
1.91 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
15140914 |
15140914 |
15140914 |
|
|
- Percentage of Shareholding |
25.06% |
25.06% |
25.06% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
45358136 |
45358136 |
45358136 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
74.97% |
74.97% |
74.97% |
NOTES
1.
The audited accounts of the company, after review
by the Audit Committee, were adopted by the Board of Directors at its meeting
held on 30th April 2013.
2.
The Company has issued and allotted 20,00,000 8% Cumulative
Redeemable Non-convertible Preference Shares of Rs.100/- each at a premium of
Rs. 300/- per share aggregating to Rs.800.000 Millions. On 28th
March, 2013
3.
The company is setting up 100000 TPA Multi-Layer
Coated Board expansion cum-diversification project and progress is
satisfactory.
4.
The Board has recommended dividend @ Rs. 0.60 per
share on Equity share of Rs. 2/- each and Rs. 0.09 per share pro-rata dividend
on 8% preference shares of Rs. 100/- each for the financial year 2012-13.
5.
The Company’s business activity falls within
primary business segment of “Manufacture of Paper” and “Real Estate Business”
as per As-17. The operating income and segment result includes Rs. 90.000
Millions from Real Estate Business. Over revenue, segment assets and liabilities
are exclusive related to manufacture of paper business.
6.
Comparative figures of the previous period have
been regrouped / rearranged wherever necessary.
STATEMENT
OF ASSETS AND LIABILITIES
(Rs.
In Millions)
|
PARTICULARS |
31.03.2013 AUDITED |
|
Equity and
liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
321.000 |
|
Reserve &
surplus |
2275.800 |
|
Sub-total - Shareholders' funds |
2596.800 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
2613.500 |
|
Deferred tax
liability (net) |
382.700 |
|
Other long term
liabilities |
3.900 |
|
Long term
provisions |
8.500 |
|
Sub-total - Non-current liabilities |
3008.600 |
|
Current
liabilities |
|
|
Short term
borrowings |
1131.500 |
|
Trade payables |
141.100 |
|
Other current
liabilities |
1057.200 |
|
Short term
provisions |
42.700 |
|
Sub-total - Current liabilities |
2372.500 |
|
Total - Equity & Liabilities |
7977.600 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
5255.200 |
|
Non-current
investment |
5.800 |
|
Long term loans
& advances |
299.500 |
|
Sub-total - Non-current Assets |
5560.500 |
|
Current assets |
|
|
Current
Investments |
|
|
Inventories |
766.200 |
|
Trade
receivables |
471.900 |
|
Cash & bank
balances |
746.300 |
|
Short term loans
& advances |
432.500 |
|
Other current
assets |
0.200 |
|
Sub-total - Current Assets |
2417.100 |
|
Total – Assets |
7977.600 |
FIXED ASSETS:
- Free
- Building
- Plant and
Machinery
- Office
Equipments
- Furniture and
Fittings
- Vehicles
- Software
WEBSITE DETAILS:
NEWS
EMAMI
PAPER APPROVES DELISTING OF EQUITY SHARES FROM CALCUTTA AND UP STOCK EXCHANGE
Emami Paper Mills at its meeting held
on April 30, 2013, has approved the delisting of Equity Shares of the Company
from the Regional Stock Exchange i.e. Calcutta Stock Exchange Limited and U. P.
Stock Exchange Association Limited.
Emami Paper Mills Limited has informed BSE that the Board of Directors of
the Company at its meeting held on April 30, 2013, have approved the delisting
of Equity Shares of the Company from the Regional Stock Exchange i.e. Calcutta
Stock Exchange Limited and U. P. Stock Exchange Association Limited
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.42 |
|
|
1 |
Rs.86.53 |
|
Euro |
1 |
Rs.73.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
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.