MIRA INFORM REPORT

 

 

Report Date :

21.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ORIENT PAPER AND INDUSTRIES LIMITED

 

 

Registered Office :

Unit VIII, Plot No. 7, Bhoinagar, Bhubaneswar – 751012, Orissa

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

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 Exchange.

 

 

Line of Business :

Manufacturer and Seller of Cement, Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments.

 

 

No. of Employees :

2842 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (51)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

USD 18000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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 recorded a loss from its operation during the financial year 2013.

 

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 conditions.

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities: A-

Rating Explanation

Adequate degree of safety and low credit risk

Date

27.06.2013

 

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities: A1

Rating Explanation

Very Strong degree of safety and lowest credit risk.

Date

27.06.2013

 

 

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.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON CO-OPERATIVE

 

CONTACT NO.: 91-674-2396930

 

 

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 :

paper@opilbbsr.com

aklabhcs@gmail.com

cosec@orientpaperindia.com

Website:

http://www.orientpaperindia.com

 

 

Corporate/ Principal Office:

Birla Building, 13th Floor, 9/1, R. N. Mukherjee Road, Kolkata – 700001, West Bengal, India

Tel. No.:

91-33-22480135/ 22131680/ 30573700/ 30410900

Fax No.:

91-33-22430490

E-mail :

info@orientpaperindia.com

 

 

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 31.03.2013)

 

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 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 Appointment

27-10-2009

 

 

Name :

Mr. N. S. Sisodia

Designation :

Director

 

 

KEY EXECUTIVES

 

BOARD COMMITTEES

 

Audit Committee :

v  A. Ghosh (Chairman)

v  B. K. Jhawar

v  Michael Bastian

v  N. S. Sisodia

 

 

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 30.09.2013)

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

7371250

3.60

http://www.bseindia.com/include/images/clear.gifBodies Corporate

70958672

34.64

http://www.bseindia.com/include/images/clear.gifSub Total

78329922

38.23

 

 

 

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

78329922

38.23

 

 

 

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

29762060

14.53

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

148960

0.07

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

4000

0.00

http://www.bseindia.com/include/images/clear.gifInsurance Companies

24543671

11.98

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

3286929

1.60

http://www.bseindia.com/include/images/clear.gifSub Total

57745620

28.19

 

 

 

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

34591779

16.88

 

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

25639420

12.52

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

3792626

1.85

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

4769393

2.33

http://www.bseindia.com/include/images/clear.gifTrust & Foundation

29780

0.01

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1057373

0.52

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

3682240

1.80

http://www.bseindia.com/include/images/clear.gifSub Total

68793218

33.58

 

 

 

Total Public shareholding (B)

126538838

61.77

 

 

 

Total (A)+(B)

204868760

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

 

 

 

Total (A)+(B)+(C)

204868760

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Seller of Cement, Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments.

 

 

Products :

Products Description

Item Code No.

 

Ordinary Portland Cement

25231000

Paper

48024000

Electric Fans

84145102

 

 

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

58200

 

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 :

2842 (Approximately)

 

 

Bankers :

Not Available

 

 

Facilities :

Secured Loans

31.03.2013

31.03.2012

 

 

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Debentures (Privately Placed)

 

 

12.45% Non-Convertible Debentures of Rs.1.000 Million each

0.000

1000.000

Term Loans from Bank

0.000

0.000

 

 

 

SHORT–TERM BORROWINGS

 

 

Cash credit from banks

1002.541

1156.013

 

 

 

Total

 

1002.541

2156.013

 

LONG-TERM BORROWINGS

 

12.45% Non-Convertible Debentures of Rs.1.000 Million each were secured by first mortgage/charge ranking pari-passu with each other on the movable and immovable properties pertaining to the Paper Plants at Amlai and Brajrajnagar and Cement plants at Devapur and Jalgaon and a first charge on the Company’s freehold land at Mehsana, Gujarat. The above debentures have been transferred to Resulting Company pursuant to the Scheme of arrangement

 

(a) Term Loans of Rs.114.434 Millions were secured by first charge ranking pari-passu with each other on the immovable properties (both present and future) pertaining to the Paper plants at Amlai and Brajrajnagar and Cement plant at Devapur and by way of hypothecation of moveable fixed assets (both present and future) ranking pari passu with each other, pertaining to the Paper plants at Amlai and Brajrajnagar and Cement plant at Devapur.

 

(b) Term Loans of Rs.1113.400 Millions were secured by first charge ranking pari-passu with each other on the fixed assets (both present and future) pertaining to the Paper plants at Amlai and Brajrajnagar and Cement plants at Devapur and Jalgaon.

 

Deferred sales tax loan has been transferred to Resulting Company pursuant to the Scheme of arrangement

 

 

SHORT–TERM BORROWINGS

 

1. Cash credit from banks is secured / to be secured against hypothecation of stock in trade, stock in progress, raw materials, stores and chemicals, book debts and other current assets of the Company and second charge on fixed assets of the Company. Cash credit is repayable on demand and carries interest @ 9.95 p.a. to 12.30% p.a. (10.90 % p.a. to 14.90 % p.a.)

 

2. Commercial papers from banks and others carry interest @ 9.70% p.a. to 10.35% p.a and are repayable between a period of 62 days to 91 days.

 

3. Buyers Credit carries interest @ 1.52% p.a. to 2.32% p.a and is repayable in 180 days.

 

4. Loan from Resulting company under the Scheme of Arrangement carries interest @ 10.00% p.a. and is repayable on demand.

 

 

 

 

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 (Upto 31st March 2012)

 

 

Associates :

·         Central India and Industries Limited

 

 

Enterprises owned or significantly influenced by key management personnel or their relatives

·         Origami Products

·         Origami

·         Origami Tissues

·         Origami Ventures

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

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

 

 

 

 

 

Total

 

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

31.03.2013

 

Number of Shares [In Lacs]

Amount in Millions

At the beginning of the period

2048.69

204.869

Issued during the period - on conversion of share warrants

--

--

Shares forfeited during the year

--

--

Outstanding at the end of the period

2048.69

204.869

 

Preference shares

 

Particulars

31.03.2013

 

Number of Shares [In Lacs]

Amount in Millions

At the beginning of the period

--

--

Redeemed during the period

--

--

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 Rs.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 2013, the amount of per share dividend recognized as distributions to equity shareholders was Rs.0.10 per shares including interim dividend of Rs.1.00 per share.

 

In the event of liquidaton 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) Details of shareholders holding more than 5% shares in the company

 

Particulars

31.03.2012

Name of the shareholders

Number in lacs

% holding in the class

Equity shares of Rs.1 each fully paid

 

 

Central India Industries Limited

491.44

23.99%

Reliance Capital Trustee Company Limited A/c Reliance Growth Fund

133.42

6.51%

Shekhavati Investments and Traders Limited

123.21

6.01%

 

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

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

204.879

204.879

202.877

(b) Reserves & Surplus

4179.755

10980.836

8651.597

(c) Money received against share warrants

0.000

0.000

171.750

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1)+(2)

4384.634

11185.715

9026.224

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

1489.052

2728.554

(b) Deferred tax liabilities (Net)

79.332

1462.349

1353.551

(c) Other long term liabilities

327.888

8.743

12.701

(d) long-term provisions

187.312

189.354

174.619

Total Non-current Liabilities (3)

594.532

3149.498

4269.425

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3052.884

2367.861

1864.722

(b) Trade payables

2142.881

2217.107

1894.513

(c) Other current liabilities

714.547

2943.376

1783.682

(d) Short-term provisions

171.495

438.780

507.940

Total Current Liabilities (4)

6081.807

7967.124

6050.857

 

 

 

 

TOTAL

11060.973

22302.337

19346.506

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

5465.642

12205.198

11840.092

(ii) Intangible Assets

10.625

113.842

115.378

(iii) Capital work-in-progress

49.677

1442.733

166.591

(iv) Expenditure on Expansion/ New Projects (Pending allocation)

5.790

292.058

106.171

(b) Non-current Investments

89.744

90.165

90.384

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

158.347

369.705

662.021

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

5779.825

14513.701

12980.637

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

784.414

572.770

(b) Inventories

1332.178

1964.266

1642.345

(c) Trade receivables

3290.242

3469.505

2396.529

(d) Cash and cash equivalents

180.615

514.919

588.391

(e) Short-term loans and advances

412.684

989.397

1128.364

(f) Other current assets

65.429

66.135

37.470

Total Current Assets

5281.148

7788.636

6365.869

 

 

 

 

TOTAL

11060.973

22302.337

19346.506

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations (net)

12695.181

24906.374

19799.657

 

 

Other Income

176.691

222.949

166.712

 

 

TOTAL                                     (A)

12871.872

25129.323

19966.369

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of raw material and components consumed

5913.295

7394.668

6092.389

 

 

Purchase of traded goods

1959.953

1250.041

906.861

 

 

(Increase) / decrease in inventories of finished goods work-in-progress and traded goods

(91.410)

(138.922)

39.743

 

 

Employee benefits expense

1228.765

1467.630

1191.409

 

 

Other expenses

3755.461

10665.131

8386.364

 

 

TOTAL                                     (B)

12766.064

20638.548

16616.766

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

105.808

4490.775

3349.603

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

191.891

423.322

439.671

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(86.083)

4067.453

2909.932

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

367.104

884.004

814.820

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                 (G)

(453.187)

3183.449

2095.112

 

 

 

 

 

Less

TAX                                                                  (H)

(130.838)

1060.691

664.067

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-I)                   (I)

(322.349)

2122.758

1431.045

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1700.700

1050.400

1694.600

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

50.000

1000.000

1500.800

 

 

Transfer to Debenture Redemption Reserve

0.000

0.000

237.500

 

 

Dividend on Preference Shares

0.000

0.200

0.600

 

 

Proposed Final Dividend on Equity Shares

0.000

0.000

0.000

 

 

Dividend on Ordinary shares

20.500

397.700

289.300

 

 

Capital Redemption Reserve

0.000

10.000

0.000

 

 

Tax on Dividend

3.500

64.600

47.000

 

BALANCE CARRIED TO THE B/S

1304.351

1700.658

1050.400

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports of goods at F.O.B. Value

1083.777

898.152

839.325

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

270.210

303.131

135.608

 

 

Stores & Spares

23.349

43.537

81.066

 

 

Capital Goods

132.239

78.239

133.035

 

 

Trading Goods

125.487

50.120

84.623

 

TOTAL IMPORTS

551.285

475.027

434.332

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

-Basic

(1.57)

10.94

7.42

 

-Diluted

(1.57)

10.94

7.41

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2012

Type

 

 

1st Quarter

Net Sales

 

 

3211.700

Total Expenditure

 

 

3171.100

PBIDT (Excl OI)

 

 

40.600

Other Income

 

 

163.500

Operating Profit

 

 

204.000

Interest

 

 

90.200

Exceptional Items

 

 

0.000

PBDT

 

 

113.800

Depreciation

 

 

112.500

Profit Before Tax

 

 

1.400

Tax

 

 

(0.500)

Provisions and contingencies

 

 

0.000

Profit After Tax

 

 

1.900

Extraordinary Items

 

 

0.000

Prior Period Expenses

 

 

0.000

Other Adjustments

 

 

0.00

Net Profit

 

 

1.900

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
(2.50)
8.45

7.17

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(3.57)
12.78

10.58

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(4.15)
15.55

11.04

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.10)
0.28

0.23

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.70
0.34

0.51

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
0.87
0.98

1.05

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report

(Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

No

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

No

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

 

Particulars

31.03.2013

31.03.2012

 

 

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

Other loans and advances

 

 

Deferred Sales Tax Loan

0.000

489.052

 

 

 

SHORT–TERM BORROWINGS

 

 

Commercial Papers

From a Scheduled Bank

100.000

650.000

From Others

1350.000

500.000

Buyers Credit

134.745

61.848

Loan from Resulting Company under the Scheme of Arrangement

465.598

0.000

Total

 

2050.343

1700.900

 

 

CORPORATE INFORMATION

 

The Company 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 Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at Amlai, Brajrajnagar, Faridabad and Kolkata. The Cement Undertaking of the Company has been transferred to Orient Cement Limited ongoing concern basis w.e.f. April 01, 2012 pursuant to the scheme of arrangement approved by the Hon’ble Orissa High Court,

 

 

DEMERGER OF CEMENT DIVISION

 

The demerger of Company’s cement business into a separate Company Orient Cement Limited was completed during the year. This has paved the way for shareholders of the Company to participate directly in a focussed entity engaged in the cement business. They are confident that this pragmatic step will yield rich dividends in the long run and lay a strong foundation for future growth.

 

 

ECONOMIC CLIMATE AND PERFORMANCE

 

The Indian economy has been passing through a period of slow down with GDP growth coming down to close to

5.5% during the year.

 

The major factors responsible for slow-down in the economy have been the slow pace of infrastructure development and unprecedented increases in prices of vital inputs.

 

However, there have been some positive policy pronouncements recently, which if successfully implemented could result in restoration of the growth momentum.

 

Notwithstanding these difficult circumstances, they continued to invest in long term growth potential for both their Electricals and Paper businesses. Therefore, even though the performance in terms of profitability for the year has been unsatisfactory, mainly due to poor performance of the Paper business, they remain confident of significant improvement going forward because of several initiatives taken by them, details of which are being shared with in subsequent chapters in this report. During the year, the Indian Paper industry in general faced unprecedented cost increases particularly in cost of pulpwood. At the same time, Paper prices remained pressure for most of the year because of substantial new capacities having been added in the previous year. While there has been some positive movement in Paper prices towards the end of the year, this has not been adequate to cover increases in costs.

 

Therefore, margins in the Indian Paper industry in general are likely to remain under pressure for some time. Additionally, for the past few years their Paper business had been facing two major internal problems due to prolonged shut down of operations during the summer months and unstable operation of their aging power generation facilities. They are happy to report that long term measures to mitigate both these challenges have now been put in place. As already reported last year, the recently constructed water reservoirs of 250 million gallons are now able to take care of the water shortage problem during summer months. The unstable power generation problem has also been resolved by commissioning of their new 55 MW power plant in December 2012. Apart from helping in stable operations of the Paper plant, this will also result in substantial cost reduction, as already evidenced by improved performance of the Paper division from February 2013.

 

While their Paper division achieved a growth of 5.5% in turnover, their losses from this division were higher. However, the division’s results for last quarter of the year have improved significantly since the stabilization of the new power plant and they expect this trend to continue.

 

In the Electricals business, the Indian Fan industry is estimated to have grown by approx. 7% during the year. Against this, they have achieved a growth of 10% in their Fan volumes and have thus gained market share. A number of new SKUs and high end models were introduced during the year and were backed up by a new ad campaigns.

 

Sales of Orient lighting also grew by 33% against the industry growth of around 12%. Thus their market share, particularly in CFLs and Consumer Luminaires increased. Going forward, they plan to further expand their market reach and lay greater focus on sales of Consumer Luminaires, LED Light Sources and Systems, which provide better margins.

 

It will be recalled that they had introduced a range of domestic electrical appliances last year. This year they achieved a turnover of Rs.530.000 Millions from these products. While this was below their expectations, they are pleased at the positive feedback from the customers about quality and designs of the products. With changing life style, these products provide a huge opportunity for growth, which they shall pursue aggressively.

 

Overall the electrical business achieved a growth of 21.5 in net sales and 8.6% in PBIT over the previous year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

OVERALL ECONOMY

 

For the 2nd year running, GDP growth of the country has shown a declining trend with an estimated growth of around 5.5% only during the year. In the view, delays in implementation of announced policies and projects and escalating costs of vital industrial inputs have been the major factors responsible for decline in growth. Infrastructure development has also slowed down considerably with several major private sector projects also facing severe bottlenecks.

 

However, The Government of India has recently announced several bold initiatives and reforms which, if speedily implemented, could restore the growth momentum.

 

They continue to strongly believe that, in spite of these temporary problems, future of the Indian economy remains bright. Based upon this conviction, they are continuing their thrust for profitable and sustainable growth in all their businesses.

 

As a part of these initiatives, they had decided to demerge the cement business so that it could pursue an aggressive and focused growth, while unlocking significant shareholder value as well. As earlier advised, this process has been completed and has become effective from 1st April 2012. Therefore, management discussion and analysis hereunder covers Paper and Electricals businesses only.

 

 

 

SEGMENT-WISE BUSINESS ANALYSIS

 

BUSINESS SEGMENT – CEMENT

INDUSTRY STRUCTURE AND DEVELOPMENT

 

Aggregate overall Paper demand in India has been growing at around 6% annually. The product range covers two sub segments of Paper i.e. Writing and Printing Papers and Tissue Pape` While Tissue paper demand continued to record substantially higher growth rate of around 15%, the demand for Writing and Printing paper remained lack lustre for most of the year.

 

As reported last year, the Indian Paper industry had added significant new capacities in Writing and Printing segment in the previous 2 years which resulted in mismatch of supply and demand. Resultantly paper prices for these grades remained under pressure for most of the year.

 

At the same time, there was unprecedented further escalation in pulp wood prices because of increased demand from new capacities. While the organized paper sector has made serious efforts to increase plantations through social forestry, there are limitations on mass scale plantations due to small land holdings. The industry has been making repeated representations to the authorities for Public-Private Partnership in large scale plantations on huge tracts of revenue waste lands lying fallow, which can be put to productive use and also create significant employment opportunities in rural areas. They hope that this issue will receive serious attention of the authorities soon.

 

While Paper prices improved to some extent towards end of the financial year, this has not been adequate to cover the steep increases in costs of pulp wood, coal, freight etc. Consequently, margins for the entire paper industry in India remained under severe pressure throughout the year.

 

However, both Domestic and International demand for Tissue paper remained reasonably robust and price realisation was also relatively better.

 

 

SEGMENTAL REVIEW AND ANALYSIS

 

In spite of frequent disruptions due to problems with the old power plant as also during commissioning and trials of the new power plant, the paper sales for the year were more or less same as last year at 62585 MT as against 62975 MT last year.

 

Proportion of Tissue papers increased from 25.6% last year to 26.7% this year. More significantly, their export of Tissue papers increased by 82% from 4557 MT last year to 8320 MT during this year.

 

They also upgraded their Caustic soda unit from the Mercury cells to the environmentally IEM cells during the year. In the process of this change over, the caustic soda production was affected and was lower at 26347 MT this year against 30184 MT last year. However apart from full compliance with environmental requirements up gradation to IEM cells will significantly reduce power consumption which is the most significant component of this unit’s costs.

 

The new 55 MW power plant was commissioned in December 2012 and was stabilized by the end of January 2013. Apart from significant cost reduction, this has been aimed at stabilizing production and efficiencies of the Paper as well as Caustic soda plants.

 

Results have been immediately visible with significant improvements in all aspects Since February 2013 as evidenced by improved results in the last quarter.

 

Overall the Paper division achieved a net turnover of Rs.3490.600 Millions as against Rs.3337.500 Millions last year.

 

However, because of increased pressure on margins as explained above and unstable operations until January 2013, their loss before interest and tax from the division for the year increased to Rs.742.800 Millions from Rs.617.000 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. The benefits from these increased plantations are expected to accrue in the coming years.

 

 

CONTINGENT LIABILITIES: (RS. IN MILLIONS)

 

Particulars

31.03.2013

31.03.2012

31.03.2011

 

 

 

 

 

a) Outstanding bank guarantees

94.834

96.355

70.277

b) Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

 

 

 

Excise Duty

152.318

206.874

212.591

Sales Tax

59.573

93.068

93.164

Income Tax

272.977

273.016

287.575

Water Tax

397.640

310.296

241.614

Cess on Captive Power Consumption

128.920

--

--

Escot Charges

--

431.860

118.260

Others

490.407

479.739

490.128

Against the above, payments have been made under protest and/ or debts have been withheld by respective parties.

70.273

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.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/

Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10385068

18/10/2012

1,814,300,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B61592028

2

10199483

25/03/2013 *

3,468,300,000.00

STATE BANK OF INDIA (LEAD BANK)

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

B72213002

3

10132446

09/02/2009 *

1,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BLDG., GROUND FLOOR, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI- 400 001., MAHARASHTRA - 400001, INDIA

A56146558

4

10112521

23/06/2008

295,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA

A41983065

5

10028797

04/09/2008 *

1,960,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA

A45294881

6

80012444

09/02/1999

1,330,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 24, PARK STREET, KOLKATA, WEST
BENGAL - 700016, INDIA

-

7

80012445

30/06/1998

1,330,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 24, PARK STREET, KOLKATA, WEST
BENGAL - 700016, INDIA

-

8

80012655

24/04/1997

1,330,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 24, PARK STREET, KOLKATA, WEST
BENGAL - 700016, INDIA

-

9

80012439

27/02/2007 *

964,100,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 24, PARK STREET, KOLKATA, WEST
BENGAL - 700016, INDIA

-

* Date of charge modification

 

 

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, India Prisons Service, Interpol, etc.

 

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.61.28

UK Pound

1

Rs.99.02

Euro

1

Rs.83.80

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Report Prepared by :

NIT

 

 

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

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

51

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.