MIRA
INFORM REPORT
|
Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT PAPER AND
INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Unit VIII, Plot
No. 7, Bhoinagar, Bhubaneswar – 751012, Orissa |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
25.07.1936 |
|
|
|
|
Com. Reg. No.: |
15-000117 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 204.879
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21011OR1936PLC000117 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDO00346D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer and Seller of Cement, Paper, Electrical
Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control
Equipments. |
|
|
|
|
No. of Employees
: |
3807 (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 44700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject has been promoted by G.P. Birla, Birla Group. Subject is a well established company having a good track record. The company
has completed it demerger of the cement division which has affected the
financial position due to which there appears sharp dip in its share price. However, general financial position seems to be good. Trade relations are reported to be fair. Business
is active. Payments are reported to be regular and as per commitments. In view of experience promoters, the company can be considered for
normal 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 |
ICRA |
|
Rating |
Short Term Debt : A2+ |
|
Rating Explanation |
Having strong degree of safety regarding
timely payment of financial obligation it carry low credit risk. |
|
Date |
May 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 : |
Unit VIII, Plot
No. 7, Bhoinagar, Bhubaneswar – 751012, Orissa, India |
|
Tel. No.: |
91-674-2396930/
2392947 |
|
Fax No.: |
91-674-2396364 |
|
E-mail : |
|
|
Website: |
|
|
|
|
|
Corporate /
Principal Office: |
|
|
Tel. No.: |
91-33-22480135/
22131680/ 30573700/ 30410900 |
|
Fax No.: |
91-33-22430490 |
|
E-mail : |
|
|
|
|
|
Mills : |
ORIENT PAPER Mills ö P.O.:- Amlai Paper Mills, District Shahdol - 484117, Madhya Pradesh, India Tel No.:- 91-7652-286275/ 286277 Fax:- 91-7652-286274 E-mail: unit_amlai@orientpaperindia.com ö P.O.:- Brajrajnagar, District Jharsuguda - 768216, Orissa, India ORIENT CEMENT ö P.O.:- Devapur Cement Works, District Adilabad - 504218, Andhra Pradesh, India Tel No.: 91-8736-240709 Fax:- 91-8736-240522 E-mail: orcem123@sancharnet.in ö Village Nashirabad, National Highway No. 6, District Jalgaon - 425309, Maharashtra, India Tel No.:- 91-257-2356651 Fax:- 91-257-2356290 E-mail: orinas_jal@sancharnet.in ORIENT FANS ö 6, Ghore Bibi Lane, Kolkata - 700054, West Bengal, India Tel No.:- 91-33-23203614/ 15/ 16/ 19 Fax :- 91-33-23205246 E-mail: custcare@orientfans.com ö 11, Industrial Estate, Sector – 6, Faridabad - 121006, Uttar Pradesh, India Tel No.:- 91-129-4283000 Fax:- 91-129-4283030 E-mail: custcare@orientfans.com |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. C.K. Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Manohar Lal Pachisia |
|
Designation : |
Managing Director |
|
Address : |
8/12, Alipore Road, Kolkata – 700027, West Bengal, India |
|
Date of Birth/ Age : |
67 Years |
|
Date of Appointment |
23-09-1997 |
|
|
|
|
Name : |
Mr. B.K. Jhawar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. Ghosh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Michael
Bastian |
|
Designation : |
Nominee – IDBI |
|
Address : |
Cecilia, 1186, 22nd Cross, 14th Main, HSR Layout, Sector III,
Bangalore- 560034, Karnataka, India |
|
Date of Birth/ Age : |
67 Years |
|
Date of Appointment |
27-10-2009 |
KEY EXECUTIVES
|
Name : |
Mr. S L Saraf |
|
Designation : |
Secretary |
|
|
|
|
BOARD COMMITTEES |
|
|
Audit Committee : |
v
Ghosh (Chairman) v
B.K. Jhawar v Michael Bastian |
|
|
|
|
Shareholders/Investors Relation Committee : |
v
Michael Bastian v M.L. Pachisia |
|
|
|
|
Remuneration Committee : |
v
B.K. Jhawar v Michael Bastian |
|
|
|
|
Committee of Directors : |
v
M.L. Pachisia v B.K. Jhawar |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7371250 |
3.60 |
|
|
69458672 |
33.90 |
|
|
76829922 |
37.50 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
76829922 |
37.50 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
36591138 |
17.86 |
|
|
149960 |
0.07 |
|
|
4000 |
0.00 |
|
|
25606820 |
12.50 |
|
|
4909178 |
2.40 |
|
|
67261096 |
32.83 |
|
|
|
|
|
|
34732116 |
16.95 |
|
|
|
|
|
|
19403568 |
9.47 |
|
|
2202601 |
1.08 |
|
|
4439457 |
2.17 |
|
|
24780 |
0.01 |
|
|
732437 |
0.36 |
|
|
3682240 |
1.80 |
|
|
60777742 |
29.67 |
|
Total Public shareholding (B) |
128038838 |
62.50 |
|
Total (A)+(B) |
204868760 |
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) |
204868760 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Cement, Paper, Electrical
Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control
Equipments. |
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|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production Qty |
|
|
|
Capacity per annum |
|
|
|
Pulp, Paper and Board - Amlai |
MT |
100000 |
110000 |
52534 |
|
– Brajrajnagar * |
MT |
76000 |
76000 |
-- |
|
Caustic Soda (Brajrajnagar) * |
MT |
3292 |
3292 |
-- |
|
Chlorine (Brajrajnagar) * |
MT |
2926 |
2926 |
-- |
|
C.S. Lye (excluding Flake conversion) |
MT |
77930 |
52340 |
19503 |
|
C.S. Flakes |
MT |
-- |
-- |
10525 |
|
Liquid Chlorine |
MT |
|
|
19491 |
|
HydroChloric Acid |
MT |
29980 |
46059 |
15459 |
|
Calcium Hypochlorite |
MT |
7200 |
|
2102 |
|
Sodium Hypochlorite* |
MT |
2316 |
-- |
-- |
|
Compressed Hydrogen* |
CuM |
1000000 |
-- |
-- |
|
Portand Cement |
MT |
5000000 |
5000000 |
3508431 |
|
Electric fans |
Nos |
1674000 |
5000000 |
5539544 |
|
Lights & Luminaries |
Nos |
6000000 |
8060000 |
7066676 |
|
Air Pollution Control Equipment |
Nos |
300 |
300 |
213 |
|
Industrial Blower |
Nos |
540 |
540 |
413 |
|
Room Air conditioner* |
Nos |
2200 |
2200 |
-- |
|
Water Cooler Package Type* |
Nos |
300 |
300 |
-- |
|
Air conditioner* |
Nos |
480 |
480 |
-- |
|
Cooling Towers* |
Nos |
360 |
360 |
-- |
(i) Equivalent
production at 100% contents of Chlorine Gas would be 4808 MT(3514 MT)
(ii) Includes 4521
MT (6074 MT) of C S Lye, 18 MT (15MT) of C S Flakes, 1575 MT (2970 MT) of
Liquid Chlorine, 21 MT (23 MT) of HCL and 2114 MT (3123MT) of Hypo Chlorite
consumed departmentally.
(iii) Includes
588091 Nos. towards warranty replacement.
* Represents item
where manufacturing operations were not carried on during the year.
** After adjusting
shortage / excess / reprocessing loss/ quantity discarded etc.
@ Including excise
duty and export incentives but excludes cash discount, rebates etc.
# Value written off
Notes:
1. Installed
capacities have been certified by the management and accepted as correct by the
Auditors.
2 Pulp plant is an
integrated part of the Paper and Board plants and therefore, capacity and
actual production of pulp is not separately ascertained.
3. Sale of Pulp,
Paper and Board includes own consumption 6 MT (7 MT)
4. Sale of C S Lye
and Hydrochloric Acid includes own consumption 266 MT (271 MT) and 3068 MT
(2787 MT) respectively.
5. Sale of
Portland Cement includes own consumption, samples etc. 3974MT (8698 MT) and
sale of clinker 143373 MT (178874) valuing Rs. 291.976 Millions (Rs. 323.806
Millions).
GENERAL INFORMATION
|
No. of Employees : |
3807 (Approximately) |
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Bankers : |
Not Available |
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|
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Facilities : |
|
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|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
Address : |
22, Camac Street, Block C, 3rd Floor, Kolkata - 700016,
West Bengal, India |
|
|
|
|
Subsidiaries : |
Orient Cement Limited |
|
|
|
|
Enterprises owned or significantly
influenced by key management personnel or their relatives |
v Origami Products v Origami v Origami Tissues v Origami Enterprises v Origami Industries v Origami Industries |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
750000000 |
Equity Shares |
Rs. 1/- each |
Rs. 750.000 Millions |
|
2500000 |
Preference Shares |
Rs. 100/- each |
Rs. 250.000 Millions |
|
|
Total |
|
Rs. 1000.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
204888000 |
Equity Shares |
Rs. 1/- each |
Rs. 204.888
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
|
|
|
|
|
204869000 |
Equity Shares |
Rs. 1/- each |
Rs. 204.869
Millions |
|
|
Add : Forfeited Shares (Amount
Originally Paid-Up) |
|
Rs. 0.010
Million |
|
|
|
|
Rs. 204.879 Millions |
Note:
(a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
Equity shares
|
Particulars |
31.03.2012 |
|
|
|
Number of Shares [In Lacs] |
Amount in Millions |
|
At the beginning of the period |
1928.85 |
192.877 |
|
Issued during the period - on conversion of share warrants |
120.00 |
12.000 |
|
Shares forfeited during the year |
0.16 |
0.008 |
|
Outstanding at the end of the period |
2048.69 |
204.869 |
Preference shares
|
Particulars |
31.03.2012 |
|
|
|
Number of Shares [In Lacs] |
Amount in Millions |
|
At the beginning of the period |
1.00 |
10.000 |
|
Redeemed during the period |
1.00 |
10.000 |
|
Outstanding at the end of the period |
-- |
-- |
(b) Terms/ rights
attached to equity shares
The Company has only one class of equity shares having a par value of `1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays 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.
During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was ` 2.00 including interim dividend of `1.00 per share (31 March 2011: `1.50).
(c) Terms of
Redeemable Non-Cumulative Preference Shares
Redeemable non-cumulative preference shares issued in earlier years have been redeemed during the year which carried dividend @6% p.a. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors upto the date of redemption is subject to the approval of the shareholders in the ensuing Annual General Meeting.
(d) Details of shareholders
holding more than 5% shares in the company
|
Particulars |
31.03.2012 |
|
|
Name of the
shareholders |
Number of Shares [In Lacs] |
% holding |
|
Equity shares of `1 each fully paid |
|
|
|
Central India Industries Limited |
491.44 |
23.99% |
|
Reliance Capital Trustee Company Limited A/c Reliance Growth Fund |
143.42 |
7.00% |
|
Shekhavati Investments and Traders Limited Shares of `100 each fully paid |
123.21 |
6.01% |
|
GMMCO Limited |
-- |
-- |
As per of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
204.879 |
202.877 |
|
(b) Reserves & Surplus |
|
10980.836 |
8651.597 |
|
(c) Money received against share warrants |
|
0.000 |
171.750 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
1489.052 |
2728.554 |
|
(b) Deferred tax liabilities (Net) |
|
1462.349 |
1353.551 |
|
(c) Other long
term liabilities |
|
8.743 |
12.701 |
|
(d) long-term
provisions |
|
189.354 |
174.619 |
|
|
|
|
|
|
(4)
Current liabilities |
|
|
|
|
(a) Short
term borrowings |
|
2367.861 |
1864.722 |
|
(b)
Trade payables |
|
2217.107 |
1894.513 |
|
(c)
Other current liabilities |
|
2943.376 |
1783.682 |
|
(d) Short-term
provisions |
|
438.780 |
507.940 |
|
TOTAL |
|
22302.337 |
19346.506 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
12205.198 |
11840.092 |
|
(ii) Intangible Assets |
|
113.842 |
115.378 |
|
(iii)
Capital work-in-progress |
|
1442.733 |
166.591 |
|
(iv) Expenditure on Expansion/New projects (pending allocation) |
|
292.058 |
106.171 |
|
(b) Non-current Investments |
|
90.165 |
90.384 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
369.705 |
662.021 |
|
(e)
Other Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
784.414 |
572.770 |
|
(b) Inventories |
|
1964.266 |
1642.345 |
|
(c) Trade receivables |
|
3469.505 |
2396.529 |
|
(d) Cash and cash equivalents |
|
514.919 |
588.391 |
|
(e) Short-term loans and advances |
|
989.397 |
1128.364 |
|
(f) Other current assets |
|
66.135 |
37.470 |
|
TOTAL |
|
22302.337 |
19346.506 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
202.867 |
|
|
2] Money received against warrant |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
7564.020 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
7766.887 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
4171.022 |
|
|
2] Unsecured Loans |
|
|
964.151 |
|
|
TOTAL BORROWING |
|
|
5135.173 |
|
|
DEFERRED TAX LIABILITIES |
|
|
1102.781 |
|
|
DEFERRED PAYMENT LIABILITIES |
|
|
27.304 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
14032.145 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
11159.127 |
|
|
Capital work-in-progress |
|
|
534.616 |
|
|
Expenditure on Expansion/New projects (pending allocation) |
|
|
33.148 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
471.190 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1503.093
|
|
|
Sundry Debtors |
|
|
1844.000
|
|
|
Cash & Bank Balances |
|
|
466.974
|
|
|
Other Current Assets |
|
|
96.463
|
|
|
Loans & Advances |
|
|
1076.804
|
|
Total
Current Assets |
|
|
4987.334 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
1873.013
|
|
|
Other Current Liabilities |
|
|
473.310
|
|
|
Provisions |
|
|
806.947
|
|
Total
Current Liabilities |
|
|
3153.270 |
|
|
Net Current Assets |
|
|
1834.064
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
14032.145 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (net) |
24906.374 |
19799.657 |
16197.546 |
|
|
|
Other Income |
222.949 |
166.712 |
162.886 |
|
|
|
TOTAL (A) |
25129.323 |
19966.369 |
16360.432 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw material and components consumed |
7394.668 |
6092.389 |
|
|
|
|
Purchase of traded goods |
1250.041 |
906.861 |
|
|
|
|
(Increase) / decrease in inventories of finished goods work-in-progress and traded goods |
(139.872) |
39.743 |
|
|
|
|
Employee benefits expense |
1467.630 |
1191.409 |
|
|
|
|
Other expenses |
10666.081 |
8386.364 |
|
|
|
|
TOTAL (B) |
20638.548 |
16616.766 |
13123.915 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4490.775 |
3349.603 |
3236.517 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
423.322 |
439.671 |
345.327 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4067.453 |
2909.932 |
2891.190 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
884.004 |
814.820 |
550.136 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3183.449 |
2095.112 |
2341.054 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1060.691 |
664.067 |
747.966 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2122.758 |
1431.045 |
1593.088 |
|
|
|
|
|
|
|
|
|
Add |
Debenture Redemption
Reserve Written back |
0.000 |
0.000 |
250.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1050.400 |
1694.600 |
2144.085 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
1500.800 |
1766.957 |
|
|
|
Transfer to Debenture Redemption Reserve |
0.000 |
237.500 |
|
|
|
|
Dividend on Preference Shares |
0.200 |
0.600 |
0.600 |
|
|
|
Proposed Final Dividend on Equity Shares |
0.000 |
0.000 |
289.327 |
|
|
|
Dividend on Ordinary shares |
397.700 |
289.300 |
0.000 |
|
|
|
Capital Redemption Reserve |
10.000 |
0.000 |
187.500 |
|
|
|
Tax on Dividend |
64.600 |
47.000 |
48.154 |
|
|
|
|
1472.5 |
2075.2 |
2292.538 |
|
|
BALANCE CARRIED
TO THE B/S |
1700.658 |
1050.400 |
1694.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of goods at F.O.B. Value |
898.152 |
839.325 |
536.420 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
303.131 |
135.608 |
113.272 |
|
|
|
Stores & Spares |
43.537 |
81.066 |
31.762 |
|
|
|
Capital Goods |
78.239 |
133.035 |
150.247 |
|
|
|
Trading Goods |
50.120 |
84.623 |
57.722 |
|
|
TOTAL IMPORTS |
475.027 |
434.332 |
353.003 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic
|
10.94 |
7.42 |
8.26 |
|
|
|
Diluted
|
10.94 |
7.41 |
8.26 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
6684.450 |
6080.400 |
6044.300 |
4826.900 |
|
Total Expenditure |
5692.090 |
5567.600 |
5547.300 |
4490.700 |
|
PBIDT (Excl
OI) |
992.360 |
512.800 |
497.000 |
336.200 |
|
Other Income |
37.100 |
57.000 |
30.600 |
64.700 |
|
Operating
Profit |
1029.460 |
569.800 |
527.700 |
400.900 |
|
Interest |
95.340 |
73.900 |
85.800 |
84.800 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
934.120 |
495.900 |
441.800 |
316.000 |
|
Depreciation |
217.080 |
218.300 |
229.800 |
117.400 |
|
Profit
Before Tax |
717.040 |
277.700 |
212.000 |
198.700 |
|
Tax |
228.240 |
85.800 |
65.200 |
92.900 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
488.800 |
191.900 |
146.800 |
105.700 |
|
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 |
488.800 |
191.900 |
146.800 |
105.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
8.45
|
7.17 |
9.74
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.78
|
10.58 |
14.45
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.55
|
11.04 |
14.50
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.23 |
0.30
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.34
|
0.51 |
0.66
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98
|
1.05 |
1.58
|
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 |
-- |
|
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
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
LONG-TERM
BORROWINGS |
|
|
|
Other loans and
advances |
|
|
|
Deferred sales tax loan |
489.052 |
500.720 |
|
SHORT–TERM
BORROWINGS |
|
|
|
Commercial Papers From a Scheduled Bank |
650.000 |
250.000 |
|
From Others |
500.000 |
150.000 |
|
Buyers Credit |
61.848 |
0.000 |
|
Total |
1700.900 |
900.720 |
CORPORATE INFORMATION
Subject is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is primarily engaged in manufacture and sale of Cement, Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at Devapur, Jalgaon, Amlai, Brajrajnagar, Faridabad and Kolkata.
DEMERGER OF CEMENT DIVISION
The Board, shareholders and creditors of Orient Paper and Industries Limited (OPIL) have approved a scheme for demerger of the Cement Undertaking of OPIL to Orient Cement Limited. OPIL and Orient Cement Limited have filed applications in Court seeking sanction for such demerger, which is now pending final hearing.
ECONOMIC CLIMATE AND
PERFORMANCE
There has been a perceptible slow down in the Indian economy with GDP growth coming down to below 7% for the year as against over 8% growth achieved during past several years.
While slow-down in International economy caused by Euro zone crisis must have also contributed to this, they believe that internal factors like slow pace of infrastructure development, high inflation, unprecedented increases in prices of vital input like coal and power, credit squeeze applied by RBI and general lack of policy direction were the major factors in bringing down the rate of growth.
However, India still continues to be one of the fastest growing economies of the world and they hope that the Government will take effective and pro-active steps to restore the growth momentum to above 8% soon.
It is a matter of satisfaction that even in the face of these challenges, they were able to achieve a growth of 27 % in their net sales turnover and 48 % in their net profit after tax.
Domestic cement demand grew by 6.6% during the year due to the good growth recorded during 2nd half of the year. However, there was no growth in the Southern region, mainly because of negative growth of -8% in Andhra Pradesh. They were however able to increase their cement sales volumes by 8% and gain market share in their core markets. They could also achieve a capacity utilisation of 77% compared to the industry average of 68% in South and West, where their plants are located. In spite of huge pressure on their costs because of factors totally beyond their control, they were also able to increase their PBIT from cement business by 62% through a combination of higher volumes, better product and market mix and cost reduction efforts.
Because of slow-down in construction activities, overall demand for Fans also came down by 2.8% compared to previous year. However, they were still able to achieve a 5.6% growth in their Fan volumes through introduction of new and exciting models and increasing their distribution reach. In lighting products, they increased their sales volumes by 38 % and introduced several new SKUs. Towards the end of this financial year, they also launched a wide range of household electrical appliances. Overall their electrical division achieved a growth of 18 % in net sales turnover for the year. Also, they were able to achieve similar profitability level in this division as the preceding year in spite of substantial cost and competitive pressures.
In their paper division also, they were able to increase their Paper volumes by 22 % in spite of 43 days shut down in the 1st quarter due to water scarcity and loss of 5 days output in December due to a minor fire incident in the power plant. Paper volume could have still been higher but for frequent break-down of their aging power plant. The Chemical plant performed satisfactorily. However, there were unprecedented increases in prices of pulp wood, coal and power which resulted in substantially increased losses from this business. Going forward, they expect this division’s performance to improve once the new 55 MW power plant, now nearing completion, gets commissioned as it will not only bring down the cost of energy but will also contribute towards stabilizing operations. They also do not expect any water scarcity related shut down in 2012-13 as there is adequate water available in their water reservoirs. The proportion of value added Tissue papers is also expected to increase as the additional rewinder for the 2nd Tissue machine is now fully operational.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERALL ECONOMY
There has been a perceptible slow down in the Indian economy with GDP growth coming down to below 7% for the year. Infrastructure development has not kept pace with expectations.
Rampant inflation and escalating cost of vital industrial
inputs such as Coal, power and freight etc have also caused severe strain on the economy.
Credit squeeze and tight monetary policies adopted by RBI do not appear to have neither controlled inflation nor helped growth.
Slow-down in International economy caused by Euro zone crisis also contributed to poor market sentiments.
Coupled with lack of clear policy direction and minimal progress on the reforms process, these factors have changed the investment climate from being optimistic to cautionary.
However, India still continues to be one of the fastest growing economies of the world and hope that the Government will take effective and pro-active steps soon to restore the growth momentum to above 8%.
On their part, they continue to strongly believe in the India growth story and feel that in spite of these temporary problems, Indian economy will soon return to a healthier growth path. Accordingly, they continue to pursue aggressive growth targets for all their businesses.
SEGMENT-WISE BUSINESS
ANALYSIS
BUSINESS SEGMENT –
CEMENT
INDUSTRY STRUCTURE
AND DEVELOPMENT
Thanks to a pick-up in demand in 2nd half of the year, domestic cement demand, which had a dismal growth of only 3% in 1st half, could register a growth of 6.6% for the year.
However, cement demand in Southern region recorded no growth at all mainly because of a negative growth of -8% in Andhra Pradesh. It will be recalled that Andhra Pradesh had registered a negative growth of -
15% in the preceding year as well.
Capacity additions also slowed down with only 11 million tons of new capacities being commissioned during the year. With these additions, the total capacity of the Indian cement industry stood at over 300 million tons as at the end of March 2012.
Still, capacity utilisation on an all- India basis continued to be around 77% because of slower than expected growth in demand. The southern region was affected even more with capacity utilisation of plants in the region coming down to as low as 63%.
Simultaneously, the industry had to again contend with steep statutory increases in cost of most major inputs such as coal, power, fly ash etc. Logistics costs also increased significantly.
However, particularly due to improved demand for cement during 2nd half of the year, cement prices improved and remained generally firm.
SEGMENTAL REVIEW AND
ANALYSIS
They sold 3.782 millions tons of cement during the year against 3.497 millions tons last year. However, they reduced their clinker sales to only 0.052 million tons against 0.143 million tons last year.
Thus they achieved 8% growth in volumes against 5 % growth by the industry in Southern+ Western region. Their capacity utilization was also higher at 77% against the industry average of 68% in South & West. Consequently, they were able to increase market share in both their primary markets of Andhra Pradesh and Maharashtra.
They were also able to maintain a better proportion of blended cement in their product mix at 73% compared to industry average of 47% in Andhra Pradesh, 69% in Maharashtra and 68% nationally.
As with the entire cement industry, they also faced significant cost pressures because of steep increases in prices of coal, fly ash and packaging material etc. Logistics costs also increased, particularly after the rail freight hike in the last quarter of the financial year.
However, their continuous efforts towards reducing costs and improving efficiencies enabled us to achieve best-in-class benchmarks in terms of manufacturing as well as distribution costs. For example they further improved on their power and fuel consumptions and also started using alternative fuels and in-house production of gypsum from waste materials. These initiatives helped us to partly offset the cost increases due to external factors mentioned above.
Their new 50 MW power plant also stabilized and enabled us to meet most of their power requirement for Devapur plant and insulated us against the large scale power cuts imposed in Andhra Pradesh from time to time.
As a result, they have been able to further strengthen their position as one of the lowest cost producers of cement in India.
Their sales realisation was also better this year partly because of favourable market situation and also because of better product and market mix achieved by us.
These factors contributed towards increase of 33% in net sales turnover of their cement division to from Rs.10332.400 millions last year to Rs.13750.900 millions for the year Their PBIDT also increased by 51% to Rs. 4356.400 millions from Rs.2879.000 millions Last year. Similarly PBIT also improved to Rs.3775.800 millions this year from Rs. 2336.200 millions last year.
OUTLOOK
As approved by the Board and shareholders of the Company, cement business is proposed to be demerged into an independent company, Orient Cement limited, with effect from 1st April 2012 through a classical demerger scheme under which all shareholders of Orient paper and Industries Limited as on the record date will receive shares of Orient Cement Limited in the ratio of 1:1. This is expected to unlock significant value for their shareholders.
While post this demerger, cement business will be reported independently, they wish to share with their existing stakeholders the outlook and plans for their cement business hereunder.
They remain hopeful that cement demand in India should increase by between 8%-10% per year during the next few years. Coupled with their continuous efforts to increase market share in their core markets, this should result in steady improvement in capacity utilization of their existing plants. Several initiatives towards further efficiency
improvements are also in the process.
They have also been able to synchronise their captive power plant with the grid and have obtained approval for sale of surplus power generated by us. Sale of surplus power is expected to commence from May 2012. This will enable us to run their power plant at full capacity thereafter.
Land acquisition for their proposed green field 3 million tons per year cement plant in Gulbarga district of Karnataka has reached an advanced stage. They have also obtained an inprinciple environmental approval. They propose to place orders for equipment and construction during the 1st half of FY 12-13.
While sales realisation will depend upon market forces, they are confident that Orient’s cement business will be able to maintain its cost leadership. Coupled with expected increase in capacity utilisation of the existing facilities and the expansion plans already in hand, they believe that Orient cement will have a bright future and continue to delight all its stake holders.
BUSINESS SEGMENT –
PAPER
INDUSTRY STRUCTURE
AND DEVELOPMENT
Aggregate Paper demand in India is estimated to be growing at around 6%. However, growth in demand for packaging boards, coated paper and tissue paper has been much higher, while in writing and printing segment it has been lower. They estimate growth in Tissue paper segment to be as high as around 20%.
During the year, there was no significant capacity addition in the Writing and Printing segment from integrated pulp and paper mills. However, significant capacities had been added in this segment in the last two years, which came into full production this year. This has resulted into over-capacity writing and printing paper for the present.
Globally, pulp and paper prices also softened due to poor demand from Europe and USA. Therefore export realisations were also not attractive. Withdrawal of DEPB scheme and its replacement with lower rates of duty draw back scheme also proved to be a deterrent in encouraging exports. Combined result of the above factors resulted into lower price realization from the writing and printing paper segment and affected market Sentiments.
At the same time, pulp wood prices increased substantially because of limited availability to meet increased demand from new capacities. This was in spite of major efforts made by the organised paper industry over the years to increase plantations through social and farm forestry schemes. Social and farm forestry, in the context of small land holdings in India, obviously imposes limitations on mass scale plantations required to meet needs of the paper industry. That is why the industry has been making repeated representations to the authorities for Public- Private Partnership in large scale plantations on huge tracts of degraded forest lands and/or revenue waste lands, which can be put to productive use and create significant employment opportunities in rural areas.
Apart from pulpwood availability and costs, recent unprecedented increases in price of coal in the garb of rationalization and re-grading have added to the woes of paper industry.
As a result of lower realisation and increasing costs, margins for the entire paper industry in India remained under severe pressure throughout the year.
A redeeming feature has been the robust growth in Tissue paper demand and reasonable price realisation in that segment.
SEGMENTAL REVIEW AND
ANALYSIS
In spite of 43 days of plant shut down in the 1st quarter due to water scarcity and another 5 days lost due to a minor fire in the power plant, they could increase their paper production by 22% to 64193 tons during the year as against 52534 tons in the preceding year. Production volume could have been still higher but for frequent break-downs of their aging power plant.
They were also able to increase the proportion of the more remunerative tissue papers in their Product Mix from 20.4 % last year to 25.6 % during the year . Quality of their tissue papers has found wide acceptance in the global market and they have been successful in developing regular exports to UK, USA, France, Hong Kong, Singapore, China, Philippines, East Africa, Nigeria and the Middle east countries.
Their net sales turnover from Paper division increased by 20% from Rs.2773.600 millions last year to Rs. 3337.500 millions during the year .Although they could also achieve some improvements in efficiencies, steep escalation in costs of pulpwood, coal, power and chemicals could not be compensated. Additionally, Madhya
Pradesh Government imposed electricity duty and cess of a whopping 87 paisa per unit of power generated by captive power plants. This additional burden had to be borne only by us in the Indian paper industry.
As a result even after increase in volumes and turnover, their PBIDT loss from the division increased to Rs. 415.300 millions from Rs. 84.200 millions last year. Loss before interest and tax was higher at Rs. 620.100 millions as against Rs. 281.600 millions last year.
In order to address the rising cost of pulp wood, they have been laying increasing emphasis on development and plantation of clonal saplings, which ensure better survival and faster growth. Their clonal plantations increased to 4.50 million this year as against 3.65 million in the previous year and covered 1808 hectares during the year against 1448 hectares last year. The benefits from these increased plantations are expected to accrue in the coming years.
As informed earlier, they are building a new and efficient 55 MW power plant in order to address high energy costs, which is one of the major cost constituents in production of paper, caustic and chlorine. This power plant will not only meet their total requirement for the division and will also substantially reduce their coal and energy costs. It will also have over 15 MW surplus capacity for sale of power. The new power plant should also be exempt from electricity duty as per M.P. Government’s declared industrial policy. The project is already in advanced stage of completion and is expected to be operational by the 2nd quarter of FY 2012-13.
OUTLOOK – AMLAI PLANT
The new power plant, expected to be commissioned shortly, should substantially reduce costs and also facilitate uninterrupted operations of the paper plant. It will also open up opportunities for capacity expansion and / or income from export of power.
The additional rewinder of Tissue Machine 2 has started yielding results. Some modifications and adjustments have recently been made to improve productivity of this machine with the objective of further enriching their product mix.
Water scarcity related shut down should henceforth be minimal, if at all.
Based upon all these factors, they believe that operational performance will improve and the division will return to good health.
BRAJRAJNAGAR
PLANT
As reported last year, operations at this plant continue to remain suspended. Only 97 employees, who are mostly required for upkeep of the facility, now remain on the rolls of this plant. We have applied for coal linkage for a IPP project on the site and await its approval.
BUSINESS SEGMENT –
ELECTRICALS
INDUSTRY STRUCTURE
AND DEVELOPMENT FANS
Because of slow down in construction activities, the Indian fan industry registered a de-growth of - 2.8% compared to the previous year. It has indeed been a long time since the industry saw a year of de-growth.
Most organised players in the Indian fan industry have reported lower volumes than the previous year.
Orient is one of only two companies to have achieved positive growth during the year.
Ceiling fans constituted around 74% of the total demand for fans with table, pedestal, exhaust and industrial fans accounting for the balance.
Costs for the industry always remain under pressure because of fluctuations in prices of commodities
like copper, aluminium, paints etc.
On the other hand, Fan industry remains highly competitive with several organised players and a number of relatively smaller regional producers. It is therefore not possible always to pass on these increased costs to the market.
Therefore, successful players not only need to continuously achieve higher volumes but also to reduce costs through regular value engineering, while maintaining quality and product innovations to attract customer preference.
LIGHTING
The lighting industry in India is estimated have grown by 15% during the year with CFLs and Luminaires growing by 21% and 20% respectively.
With power tariffs increasing and growing awareness on energy conservation, CFLs and energy efficient Luminaires are becoming increasingly popular.
Orient entered
Lighting business 3 years ago and has been initially consolidating its position
gradually in CFL and Luminaires segments of the lighting industry.
HOUSEHOLD ELECTRICAL APPLIANCES
Orient has entered
this line of business for the first time just before last quarter of the
financial year. The products covered by this segment include water heaters, air
coolers, mixers/ grinders/ juicers, electric irons, kettles, toasters etc.
The Indian market
for these appliances is estimated to be worth Rs. 52000.000 Millions and is estimated to
be growing at the rate of around 12% per year. The market is being catered by
about a dozen medium and large volume players.
With changing life
styles and growing nuclear families, usage of these appliances is bound to grow
rapidly and therefore this business presents a good potential for Orient’s
growth.
SEGMENT REVIEW AND
ANALYSIS
FANS
They achieved growth of 5.3% in their fan volumes as against a negative growth of -2.8% in the industry as a whole. Obviously, this has been possible through increase in their market share across the entire product range.
They introduced a number of new and exciting models, which have been greatly appreciated by the customers. Simultaneously, they also further strengthened their distribution network to extend their market reach and penetration.
As a result sales of their fans increased to 6.925 millions units during the year from 6.548 millions units in the previous year.
While cost escalations arising out of frequent increase in commodity prices continued to put pressure on margins, they could offset part of the same by reduction in costs through concentrated actions on optimisation
in all areas.
In this effort, they have also engaged the services of one of the most reputed International consulting organisation. While part of benefits from this initiative has been captured within the year , further benefits are expected to be derived in the coming year.
LIGHTING
They could achieve a growth of 44% in sales volume to reach 1.25 million units this year as against 87 lac units
in the previous year.
Their market share has thus increased from 3.3% last year to 4.2% during the year .
Apart from introducing several new SKUs, they have further increased their distribution reach and penetration across the Country.
HOUSEHOLD APPLIANCES
While they have just introduced this product range in limited markets, they are highly encouraged by the initial response from customers and dealers alike.
Within a limited period of less than four months and restricted markets in which these products have been test marketed, they have been able to achieve sales of over fifty one thousand appliances.
They therefore see a good avenue for growth in this large market.
OVERALL
Overall we expect
our electrical business to steadily grow into a sizeable business with robust
profitability.
COMPANY’S OVERALL
PERFORMANCE AND ANALYSIS
SALES AND PROFIT
Their gross sales increased from Rs.21750.000 millions in 2010-11 to Rs. 27640.000 millions in 2011-12, while net sales increased from Rs.19590.000 millions to Rs.24910.000 millions
Despite challenges of cost escalations and poor performance of their paper business, they achieved profit before depreciation and interest of Rs.4490.000 millions for the year against Rs. 3330.000 millions in the previous year.
Net profit before tax also increased similarly from Rs. 2090.000 millions in the preceeding year to Rs. 3180.000 millions for the year .
Net profit after tax (after deferred tax provision of Rs.108.800 millions) was Rs.2120.000 millions this year against Rs.1430.000 millions last year.
This translates to an EPS of ` 10.94 and cash EPS of ` 16.06 for the year as against ` 7.42 and ` 12.94 respectively for the preceding year. They invested Rs. 2724.800 millions on capital projects during the year mostly out of internal generation.
The financial position of the Company continues to be fairly strong with their debt equity ratio at 0.25:1 and the DSCR of 5.57.
They believe that the Company has initiated a number of concrete steps in each of its businesses to unleash significant value through not only demerger of the cement business but also to achieve accelerated growth through diversification and expansion in the electrical and paper businesses as well.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
(Rs. in Millions) |
|
|
a) Outstanding bank guarantees |
96.355 |
70.277 |
|
b) Demands/claims
by various Government authorities and others not acknowledged as debts and contested by the Company: |
|
|
|
Excise Duty |
206.874 |
212.591 |
|
Sales Tax |
93.068 |
93.164 |
|
Income Tax |
273.016 |
287.575 |
|
Water Tax |
310.296 |
241.614 |
|
Escot Charges |
431.860 |
118.260 |
|
Others |
479.739 |
490.128 |
|
Against the
above, payments have been made under protest and/ or debts have been withheld
by respective parties. |
67.774 |
53.352 |
|
Note: * Based on discussions
with the solicitors/ favourable decisions in similar cases/legal opinions
taken by the Company, the management believes that the Company has a good
chance of success in above-mentioned cases and hence, no provision there
against is considered necessary. c) Outstanding
claims from employees not acknowledged as debts, including Bonus claims under
adjudication and wages for suspension period at Brajrajnagar Unit. Amount
unascertainable d) The Company
has filed a writ petition in the High Court of Jabalpur, contesting the order
of Commissioner Commercial Tax in the case of IOC Limited regarding
taxability of furnace oil at par with diesel. Pending final disposal of this
matter, the Company is unable to ascertain the impact of the order, if any, on
the accounts of the Company. |
||
FIXED ASSETS:
v Freehold Land
v Leasehold Land
v Factory Buildings
v Railway Sidings
v Plant and equipment
v Furniture and fixtures
v Office equipment
v Vehicles
v Computer software
v Mining Rights
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. 58.74 |
|
|
1 |
Rs. 91.99 |
|
Euro |
1 |
Rs. 78.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
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 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.