MIRA INFORM REPORT
|
Report Date : |
21.09.2013 |
IDENTIFICATION DETAILS
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Name : |
EMAMI PAPER MILLS LIMITED |
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Registered Office : |
687, Anandapur, Kasba Golpark, E.M. Bye Pass, Kolkata – 700 107, West
Bengal |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
26.09.1981 |
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Com. Reg. No.: |
21-034161 |
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Capital
Investment / Paid-up Capital : |
Rs.320.998 Millions |
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CIN No.: [Company
Identification No.] |
L21019WB1981PLC034161 |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are listed on
the Stock Exchanges. |
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Line of Business : |
Subject is engaged in manufacturing of paper and real estate business. |
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No. of Employees : |
600 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 10387000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of “Emami Group”. It is a well established company having a fair track record. There
appears a better growth in its sales turnover as well as net profitability
during 2013. General financial strength seems to be good. Trade relations are
reported to be fair. Business is active. Payments are reported to be regular
and as per commitment. In view of experienced promoters and continuing group support, the
company can be considered good for business dealings at usual trade terms and
condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very
High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 |
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Rating |
Long Term Bank Facilities: A |
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Rating Explanation |
Adequate degree of safety and low credit risk. |
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Date |
September 12, 2013 |
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Rating Agency Name |
CARE |
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Rating |
Short Term Bank Facilities: A1 |
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Rating Explanation |
Very strong degree of safety and lowest credit risk. |
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Date |
September 12, 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
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Registered Office/ Marketing Division : |
687, Anandapur, Kasba Golpark, E.M. Bye Pass, Kolkata – 700 107, West
Bengal, India |
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Tel. No.: |
91-33-66136264/ 66136471 |
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Fax No.: |
91-33-66136400 |
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E-Mail : |
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Website : |
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Factory 1 : |
Balgopalpur, Post Rasulpur, Balasore – 756 020, Orissa, India |
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Factory 2 : |
R.N. Tagore Road, Alambazar, Dakshineswar, Kolkata – 700 035, West Bengal, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Aditya Vardhan Agarwal |
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Designation : |
Executive Chairman |
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Address : |
118, Southern Avenue, Kolkata – 700 029, West Bengal, India |
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Date of Birth/Age : |
06.01.1975 |
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Qualification : |
B.Com. |
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Expertise in specific functional areas : |
Well-known
industrialist. Rich and varied experience in marketing, corporate planning,
business development, strategy formulation and overall management. |
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Date of Appointment : |
23.10.2000 |
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Other Directorship : |
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Name : |
Mr. Manish Goenka |
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Designation : |
Whole Time Director |
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Address : |
110 A, Southern Avenue, Kolkata – 700 029, West Bengal, India |
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Date of Birth/Age : |
07.02.1974 |
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Date of Appointment : |
01.02.2000 |
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Name : |
Mr. P.S. Patwari |
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Designation : |
Executive Director |
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Address : |
58 B Block, D New Alipore, Kolkata – 700 053, West Bengal, India |
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Date of Birth/Age : |
58 Years |
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Qualification : |
B.Com. FCA |
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Expertise in specific functional areas : |
Extensive
experience in the area of finance, accounting, corporate planning, business
development, strategy formulations and overall management. |
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Date of Appointment : |
28.11.1994 |
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Other Directorship : |
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Name : |
Mr. J.N. Godbole |
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Designation : |
Director |
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Name : |
Mr. H.M. Marda |
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Designation : |
Director |
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Name : |
Mr. J.K. Khetawat |
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Designation : |
Director |
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Name : |
Mr. S. Balasubramanian |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
71 Years |
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Qualification : |
B.Com, L.L.B.,
A.C.A.A.C.S., AICWA, DMA(ICA) |
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Expertise in specific functional areas : |
He is former
Chairman of Company Law Board, has rich and varied experience in corporate
law. He is a well-known personality for his valuable contribution to the corporate
world. He was also former member of Indian Postal Service and having senior
level experience in public sector. |
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Date of Appointment : |
05.05.2010 |
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Other Directorship : |
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Name : |
Mr. U. Gururaja Bhat |
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Designation : |
Director |
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Address : |
A3, Amaravatee Apartments, 2nd Main Road, Gandhi Nagar,
Adyar, Chennai – 600 020, Tamilnadu, India |
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Date of Birth/Age : |
15.04.1938 |
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Date of Appointment : |
26.09.2003 |
KEY EXECUTIVES
|
Name : |
Mr. Ghanshyam Saraf |
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Designation : |
Vice President (Finance) and Company Secretary |
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Address : |
AE 397, Salt Lake City, Sector I, Kolkata – 700 064, West
Bengal, India |
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Date of Birth/Age : |
01.01.1957 |
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Date of Appointment : |
28.05.1994 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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5498073 |
9.09 |
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39735063 |
65.68 |
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45233136 |
74.77 |
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125000 |
0.21 |
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125000 |
0.21 |
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Total shareholding of Promoter and Promoter Group (A) |
45358136 |
74.97 |
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(B) Public Shareholding |
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11631875 |
19.23 |
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|
1923574 |
3.18 |
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|
1560000 |
2.58 |
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|
25465 |
0.04 |
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|
9565 |
0.02 |
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|
15900 |
0.03 |
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|
15140914 |
25.03 |
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Total Public shareholding (B) |
15140914 |
25.03 |
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Total (A)+(B) |
60499050 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
60499050 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in manufacturing of paper and real estate business. |
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Products/ Services : |
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Brand Name : |
“EMAMI”. |
PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Paper |
Tones |
145000 |
1,44,712 |
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Generation of Electricity |
MW |
20 |
1,284.52 Kwh Lacs |
1. Licensed capacity not applicable in terms of Government of India’s Notification
2. Installed capacities are certified by the management
3. Generation of electricity is for internal consumption
GENERAL INFORMATION
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Customers : |
Newsprint:
Writing and printing paper:
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No. of Employees : |
600 (Approximately) |
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Bankers : |
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Facilities : |
NOTES: LONG TERM
BORROWINGS Nature of Security: (i) Term loans
of Rs.3421.432 millions (Rs.2894.055 millions) are secured by deposit of title
deeds in respect of present and future immovable properties and hypothecation
of present and future movable fixed assets on a pari-passu basis. Term loans
from banks are also secured by second charge on current assets on pari-passu
basis. (ii) Term loans
of Rs.167.477 millions (Rs.352.786 millions) are supported by personal
guarantee of some of the promoters and second/ subservient charge on all
movable assets of the company ranking pari-passu. Terms of repayment of term loans: (i) ECB $ 23
million from ICICI Bank Limited carries interest @ 6m libor + 1.70% p.a. -
Rs.260.140 millions outstanding as on 31.03.2013 is repayable in 5 quarterly
installments (Rs.438.840 millions is repayable in 9 quarterly installments). (ii) ECB $ 16.50
million from ICICI Bank Limited carries interest @ 6m libor + 1.00% p.a. -
Rs.261.271 millions outstanding as on 31.03.2013 is repayable in 7 quarterly
installments (Rs.384.780 millions is repayable in 11 quarterly installments). (iii) ECB $ 10
million from State Bank of India carries interest @ 6m libor + 165 bp p.a. -
Rs.67.863 millions outstanding as on 31.03.2013 is repayable in 2 quarterly
installments (Rs.190.800 millions is repayable in 6 quarterly installments) (iv) ECB $ 4.50
million from DBS Bank carries interest @ applicable benchmark rate plus 295
bps p.a. Rs.122.153 millions outstanding as on 31.03.2013 is repayable in 1
annual Installment (Rs.228.960 millions is repayable in 2 annual
Installments). (v) FCNR (B) 21
million from State Bank of India carries interest @ 6m libor + applicable
Spread p.a. - Rs.891.137 millions outstanding as on 31.03.2013 is repayable
in 9 quarterly installments (Rs.1004.628 millions is repayable in 13
quarterly installments). (vi) Rupee term
loan from State Bank of Hyderabad carries interest @ SBH base rate + 3% p.a.
- Rs.499.971 millions outstanding as on 31.03.2013 is repayable in 12
quarterly installments from the end of 27 month from the date of disbursement
(Rs.500.000 millions is repayable in 12 quarterly installments from the end of
27th month from the date of disbursement). (vii) Corporate
loan from SBI carries interest @ 2.30% above base rate p.a. - Rs.700.000
millions outstanding as on 31.03.2013 is repayable in 20 quarterly
installments after 2 years moratorium period (nil). (viii) Rupee
term loan from ICICI Bank Limited carries interest @ ICICI Bank base rate +
applicable Spread p.a. Rs.600.000 millions outstanding as on 31.03.2013 is
repayable in 20 quarterly installments commencing from the end of 27th
month from the date of first drawdown. (ix) Loan from
IndusInd Bank carries interest @ 6m libor + 5.00 % p.a. - Rs.97.133 millions
outstanding as on 31.03.2013 is repayable in 5 Quarterly installments
(Rs.163.857 millions is repayable in 9 quarterly installments). (x) Loan from Axis
Bank carries interest @ 6m libor + 5.00% p.a. - Rs.70.344 millions
outstanding as on 31.03.2013 is repayable in 7 monthly installments
(Rs.188.928 millions is repayable in 19 monthly installments). * The amount
repayable within next 12 month for the above loans has been classified as
“Current maturities” SHORT TERM
BORROWINGS Nature of Security: Working Capital
facilities from banks are secured by hypothecation of present and future stock
of materials, stock-in-process, finished goods, stores and spares, book
debts, outstanding money, claims receivable and further secured by way of
second charge on all immovable and movable properties/fixed assets both
present and future on a pari passu basis. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S.K. Agrawal and Company Chartered Accountants |
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Address : |
4-A, |
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Unit Auditors : |
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Name : |
Salarpuria Jajodia and Company Chartered Accountants |
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Address : |
7, C.R. Avenue, Kolkata – 700 072, West Bengal, India |
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Enterprises over which Key management personnel
are able to exercise significant influence : |
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CAPITAL STRUCTURE
AS ON 13.08.2013
Authorised Capital : Rs.624.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.320.998
Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
62000000 |
Equity Shares |
Rs.2/- each |
Rs.124.000 Millions |
|
2000000 |
Preference Shares |
Rs.100/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs.324.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60499050 |
Equity Shares |
Rs.2/- each |
Rs.120.998 Millions |
|
2000000 |
8% Cumulative
Redeemable Non-Convertible Preference Shares |
Rs.100/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs.320.998 Millions |
Notes:
a) Reconciliation
of the shares outstanding at the beginning and at the end of the reporting year
I) Equity Shares
|
Particulars |
As at 31.03.2013 |
|
|
No.
of Shares |
Amount
(Rs.
in Millions) |
|
|
At the beginning of the year |
60499050 |
120.998 |
|
At the end of the year |
60499050 |
120.998 |
II) Preference
Shares
|
Particulars |
As at 31.03.2013 |
|
|
No.
of Shares |
Amount
(Rs.
in Millions) |
|
|
At the beginning of the year |
-- |
-- |
|
Add: Shares issued during the year |
2000000 |
200.000 |
|
At the end of the year |
2000000 |
200.000 |
b) Terms / rights
attached to equity shares
i) Equity shares
The company has
only one class of equity shares having a par value of Rs.2/- per share. Each holder
of equity shares is entitled to one vote per share. The company declares and
pay dividends in Indian rupees. The dividend proposed by the Board of Directors
is subject to the approval of the shareholders in the ensuing Annual General
Meeting.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
ii) Preference shares
During the year
ended 31st March’2013 the company issued 2000000 cumulative redeemable
non-convertible preference shares (CRNPS) of Rs.100 each fully paid up at a
premium of Rs.300 per share. CRNPSs carry cumulative dividend @ 8% p.a.
The company
declares and pay dividends in Indian rupees. The dividend proposed by the board
of directors is subject to the approval of the shareholders in the ensuing
annual general meeting. Holders of CRNPS have voting rights on matters
pertaining to CRNPS.
In the event of
liquidation of the company before redemption of CRNPS, the holders of CRNPS
will have priority over equity shares in the repayment of capital. The CRNPS is
redeemable on the expiry of 12 years from the date of issue at a premium of
Rs.500 per share with an option to redeem it earlier at a premium of to be
decided mutually between the company and the CRNPS Holders at a meeting of
CRNPS holders called for this purpose.
c) Shareholders
holding more than 5% shares in the company
I) Equity Shares
|
Name of
Shareholder |
As at 31.03.2013 |
|
|
No.
of Shares |
%
of Holding |
|
|
Diwakar Viniyog Private Limited |
9628713 |
15.92 |
|
Emami Limited |
7946000 |
13.13 |
|
Suntrack Commerce Private Limited |
7633900 |
12.62 |
|
Bhanu Vyapaar Private Limited |
6005250 |
9.93 |
II) Preference
Shares
|
Name of
Shareholder |
As at 31.03.2013 |
|
|
No.
of Shares |
%
of Holding |
|
|
Emami Estates Private Limited |
375000 |
18.75 |
|
Zandu Realty Limited |
350000 |
17.50 |
|
Suraj Viniyog Private Limited |
275000 |
13.75 |
|
Pan Emami Cosmed Limited |
250000 |
12.50 |
|
Oriental Sales Agencies India Private Limited |
250000 |
12.50 |
|
Bhanu Vyapaar Private Limited |
225000 |
11.25 |
|
Emami Realty Limited |
175000 |
8.75 |
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 |
320.998 |
120.998 |
120.998 |
|
(b) Reserves & Surplus |
2275.872 |
1608.958 |
1573.830 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
2596.870 |
1729.956 |
1694.828 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
2613.435 |
2916.810 |
2082.526 |
|
(b) Deferred tax liabilities (Net) |
382.684 |
368.907 |
345.728 |
|
(c)
Other long term liabilities |
3.824 |
2.566 |
2.687 |
|
(d)
Long-term provisions |
8.533 |
6.275 |
4.939 |
|
Total
Non-current Liabilities (3) |
3008.476 |
3294.558 |
2435.880 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1131.223 |
1147.549 |
1088.974 |
|
(b)
Trade payables |
141.131 |
90.822 |
79.731 |
|
(c)
Other current liabilities |
1057.177 |
1120.446 |
749.280 |
|
(d)
Short-term provisions |
42.674 |
42.188 |
42.329 |
|
Total
Current Liabilities (4) |
2372.205 |
2401.005 |
1960.314 |
|
|
|
|
|
|
TOTAL |
7977.551 |
7425.519 |
6091.022 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
4360.584 |
4412.169 |
3856.171 |
|
(ii)
Intangible Assets |
5.854 |
5.095 |
4.841 |
|
(iii)
Capital work-in-progress |
888.763 |
696.746 |
102.654 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
5.765 |
5.765 |
5.765 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
299.471 |
280.784 |
361.106 |
|
(e)
Other Non-current assets |
0.100 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
5560.537 |
5400.559 |
4330.537 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
766.170 |
781.425
|
764.604
|
|
(c)
Trade receivables |
471.853 |
504.572
|
712.560
|
|
(d)
Cash and cash equivalents |
746.322 |
228.507
|
40.988
|
|
(e)
Short-term loans and advances |
432.462 |
510.456 |
242.333 |
|
(f)
Other current assets |
0.207 |
0.000 |
0.000 |
|
Total
Current Assets |
2417.014 |
2024.960 |
1760.485 |
|
|
|
|
|
|
TOTAL |
7977.551 |
7425.519 |
6091.022 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net revenue from operations |
5100.161 |
4950.776 |
4298.401 |
|
|
|
Other Income |
18.080 |
15.806 |
69.639 |
|
|
|
TOTAL (A) |
5118.241 |
4966.582 |
4368.040 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2817.290 |
2800.387 |
2628.283 |
|
|
|
(Increase) / Decrease in inventories of Finished Goods and
Work-in-Progress |
70.911 |
62.430 |
(96.622) |
|
|
|
Employee benefits expense |
245.222 |
219.791 |
279.217 |
|
|
|
Other expenses |
1249.987 |
1232.537 |
836.394 |
|
|
|
TOTAL (B) |
4383.410 |
4315.145 |
3647.272 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
734.831 |
651.437 |
720.768 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
302.216 |
263.715 |
274.035 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
432.615 |
387.722 |
446.733 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
303.290 |
271.622 |
265.759 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
129.325 |
116.100 |
180.974 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
13.777 |
33.030 |
42.322 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
115.548 |
83.070 |
138.652 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
94.158 |
103.276 |
56.813 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend on Equity Shares |
36.300 |
36.300 |
36.300 |
|
|
|
Proposed Dividend on Preference Shares |
0.175 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
6.199 |
5.888 |
5.889 |
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
50.000 |
|
|
BALANCE CARRIED
TO THE B/S |
117.032 |
94.158 |
103.276 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
2.805 |
21.387 |
55.897 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials & chemicals |
456.255 |
488.703 |
628.547 |
|
|
|
Stores & spares |
31.684 |
49.441 |
33.001 |
|
|
|
Capital goods |
8.705 |
324.903 |
12.449 |
|
|
TOTAL IMPORTS |
496.644 |
863.047 |
673.997 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.91 |
1.37 |
2.29 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
1206.400 |
|
Total Expenditure |
|
|
1016.000 |
|
PBIDT (Excl OI) |
|
|
190.400 |
|
Other Income |
|
|
3.200 |
|
Operating Profit |
|
|
193.600 |
|
Interest |
|
|
30.300 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
163.300 |
|
Depreciation |
|
|
74.300 |
|
Profit Before Tax |
|
|
89.000 |
|
Tax |
|
|
24.100 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
64.900 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
64.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.26
|
1.67
|
3.17
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.54
|
2.35
|
4.21
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.83
|
1.73
|
3.03
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.07
|
0.11
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.44
|
2.35
|
1.87
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02
|
0.84
|
0.90
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
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 |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10445633 |
03/08/2013 |
595,000,000.00 |
ALLAHABAD BANK
(ACTING FOR ITS HONGKONG BRANCH) |
INDUSTRIAL
FINANCE BRANCH, 17, R. N. MUKHERJEE ROAD, 4TH FLOOR, KOLKATA, WEST BENGAL -
700001, INDIA |
B83355388 |
|
2 |
10440092 |
01/07/2013 |
750,000,000.00 |
AXIS BANK
LIMITED |
CORPORATE BANKING
BRANCH (CBB), 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST
BENGAL - 700071, INDIA |
B80978869 |
|
3 |
10432978 |
04/06/2013 |
835,660,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
FLOOR-21, CENTRE
ONE BUILDING, WORLD TRADE CENTRE, CUFF PARADE, MUMBAI, MAHARASHTRA - 400005,
INDIA |
B77933414 |
|
4 |
10426155 |
08/05/2013 |
270,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B75280636 |
|
5 |
10426156 |
08/05/2013 |
400,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B75280685 |
|
6 |
10371780 |
24/07/2012 |
90,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B56110687 |
|
7 |
10371779 |
24/07/2012 |
600,000,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B56110679 |
|
8 |
10343670 |
06/03/2012 |
500,000,000.00 |
STATE BANK OF
HYDERABAD |
COMMERCIAL BRANCH,
83 TOPSIA ROAD, KOLKATA, WEST BENGAL - 700046, INDIA |
B35623230 |
|
9 |
10319670 |
04/11/2011 |
200,000,000.00 |
AXIS BANK
LIMITED |
CORPORATE
BANKING BRANCH (CBB), 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR,, KOLKATA,
WEST BENGAL |
B26055202 |
|
10 |
10283294 |
13/04/2011 |
400,000,000.00 |
INDUSIND BANK
LIMITED |
SAVITRI TOWERS,
3A, UPPER WOOD STREET, KOLKATA, WEST BENGAL - 700017, INDIA |
B11858362 |
|
11 |
10214445 |
02/07/2010 * |
211,500,000.00 |
DBS BANK LIMITED |
KOLKATA BRANCH,
4A, NANDALAL BASU SARANI, KOLKATA, WEST BENGAL - 700071, INDIA |
A91172338 |
|
12 |
10148549 |
31/08/2013 * |
395,000,000.00 |
DBS BANK LIMITED |
4 A NANDALAL
BASU SARANI, KOLKATA, WEST BENGAL - 700071, INDIA |
B84692540 |
|
13 |
10171226 |
10/08/2009 * |
50,000,000.00 |
IDBI BANK
LIMITED |
KOLKATA MAIN
BRANCH (MCG), IDBI HOUSE, 44, SHAKES |
A68180165 |
|
14 |
10171221 |
13/01/2009 |
300,000,000.00 |
IDBI BANK
LIMITED |
KOLKATA MAIN BRANCH
(MCG), IDBI HOUSE, 44 SHAKESPEARE SARANI, KOLKATA, WEST BENGAL - 700017,
INDIA |
A67021030 |
|
15 |
10127272 |
31/10/2008 |
75,000,000.00 |
Standard
Chartered Bank |
19, N.S. ROAD,
KOLKATA, WEST BENGAL - 700001, INDIA |
A49258031 |
|
16 |
10116956 |
25/03/2013 * |
3,422,200,000.00 |
STATE BANK OF
INDIA |
COMMERCIAL
BRANCH, KOLKATA, 24, PARK STREET, KOLKATA, WEST BENGAL - 700016, INDIA |
B72000466 |
|
17 |
10072044 |
28/03/2008 * |
658,020,000.00 |
UNIT TRUST OF INDIA
INVESTMENT ADVISORY SERVICES LIMITED |
UTI TOWER GN
BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA |
A34755033 |
|
18 |
10036263 |
22/10/2007 * |
460,825,000.00 |
UNIT TRUST OF
INDIA INVESTMENT ADVISORY SERVICES LIMITED |
UTI TOWER GN
BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA |
A26368050 |
|
19 |
10042605 |
23/11/2006 |
1,090,000,000.00 |
STATE BANK OF
INDIA (LEAD BANK) |
BALASORE
INDUSTRIAL ESTATE BRANCH, BALASORE, ORISSA - 756001, INDIA |
A08319519 |
|
20 |
10023373 |
15/09/2006 |
150,000,000.00 |
STATE BANK OF
INDIA |
BALASORE
INDUSTRIAL ESTATE BRANCH, BALASORE, ORISSA - 756001, INDIA |
A05862073 |
|
21 |
80012696 |
23/08/2006 * |
1,074,000,000.00 |
UNIT TRUST OF
INDIA INVESTMENT ADVISORY SERVICES |
UTI TOWER GN
BLOCKBANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA |
- |
|
22 |
90256782 |
20/09/2005 |
200,000,000.00 |
STATE BANK OF
INDIA |
BALASORE
INDUSTRIAL ESTATE BRANCH, BALASORE, ORISSA, INDIA |
- |
|
23 |
90256181 |
10/06/2004 * |
407,000,000.00 |
INDIAN OVERSEAS
BANK |
2 ; WOOD STREET,
KOLKATA, WEST BENGAL, INDIA |
- |
|
24 |
80049622 |
09/04/2003 |
91,925,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA |
44 SHAKESPEARE
SARANI, KOLKATA, WEST BENGAL - 700017, INDIA |
- |
|
25 |
80010752 |
03/02/2009 * |
230,000,000.00 |
INDIAN OVERSEAS
BANK |
2, WOOD STREET, KOLKATA,
WEST BENGAL - 700016, INDIA |
A58375924 |
|
26 |
80055067 |
10/08/2009 * |
200,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR (LEAD BANK) |
N. S. ROAD
BRANCH, 14, N. S. ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
A68286202 |
* Date of charge modification
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Loans from Bodies Corporate |
0.000 |
704.000 |
|
Total |
0.000 |
704.000 |
FINANCIAL
PERFORMANCE
The Company
continued to reinforce its leadership position in the Indian newsprint industry
and remained one of the lowest cost manufacturers of Newsprint. Subject’s
commitment of delivering superior quality products to a wide segment of
pride-enhancing customers has been a major reason for the Company in
maintaining an impressive position in the industry.
Despite several
obstacles of challenging economic environment, high interest rates, stubborn
inflation levels and an overall suppressed consumer demand, the Company
registered a growth in the turnover from Rs.4935.000 millions in 2011-12 to
Rs.4998.900 millions in 2012-13. By achieving continued operational efficiency enhancements
and tight cost structures, the Company’s operating profit (PBDIT) increased
12.77% from Rs.651.400 millions in 2011-12 to Rs.734.600 millions in 2012-13. The
company has achieved record production of 145816 tonne for the year 2012-13
which is more than 100% of installed capacity.
This performance
is testimony to the Company’s inherently robust business and operating model,
enabling it to continue to outperform the industry average. With the increased
focus on literacy by the Government of India through such grassroots programmes
as Sarva Siksha Abhiyan and allocation of large funds for the education and the
print media sector, demand for newsprint in the country is expected to continue
to report substantial growth of between 8-10 percent over the next decade.
MILL EXPANSION AND
DEVELOPMENT PLAN
Leveraging a rich
experience of over 30 years in the business of manufacturing and marketing
various grades of paper, readymade and well-laid infrastructure in terms of
land, energy (captive power and grid transmission and distribution), water
availability, MOEF clearance and skilled resources, the Company is undertaking
a landmark expansion by setting-up a 100,000 TPA paper machine for
manufacturing multi-layer coated board (packaging paper grades) at its existing
location in Balasore. With a view to reinforce its competitiveness in the
market and secure energy availability, the new mill complex will also have a 10
MW captive power plant, providing 100 percent self-reliance.
When completed by
March 2015, the Company will emerge as the largest manufacturer of Multi-Layer
Coated Board in Eastern India and one of the largest in the country.
Multi-layer coated
board (comprising grey back, white back, folding box board, solid bleached
board and liquid packaging board) is one of the fastest growing segments of the
paper industry, growing at an annual rate of between 14-20 percent per year,
even faster than the overall rate of growth of the domestic paper industry at
about 10 percent.
Multi-layer coated
board is used in several industries such as FMCG, pharmaceuticals and several
other packaging-centric industries and with the upcoming boom in retail,
especially enabled by the 49 percent FDI being permitted into the industry, the
demand for duplex/ coated boards is expected to increase to 3.2 million tonne
by 2016-17, up from 2.2 million tonne in 2012-13.
The project
capital cost is optimally funded through a mix of promoter funds and foreign
currency debt (ECB/ FCNR).
ISSUE OF
PREFERENCE SHARES
During the year the
Company has issued 2000000, 8% Cumulative Redeemable, Non-Convertible
Preference Shares of the face value of Rs.100/- each at a premium of Rs.300/-
each aggregating to Rs.800.000 millions.
MANAGEMENT DISCUSSION AND ANALYSIS
Global economy
The global economy
remained sluggish on the back of risks related to the viability of the Eurozone
or major US fiscal policies and the fresh crisis in Cyprus. Policy tightening
in response to capacity constraints and concerns about the potential for
deteriorating bank loan portfolios, weaker demand from advanced economies and
country-specific factors slowed GDP growth in emerging markets and developing
economies from about 9 percent in late 2009 to about 5.25 percent in 2012. The
IMF staff’s Global Projection Model suggests that more than half of the
downward revisions
to real GDP growth in 2012 are rooted in domestic developments. However, a
gradual strengthening of activity in 2013 is expected.
Indian economy
The Indian economy
made significant strides over the last few years with gross domestic product
(GDP) projected to grow at an average of 5.3-5.5 percent in 2012-13, keeping
the country as one of the fastest-growing economies of the world.
India is the
world’s third largest economy in terms of the purchasing power parity (PPP) and
has investments amounting to nearly USD 1 trillion lined up in partnership with
the private sector over the coming years. The largely broad-based nature of the
country’s economy is represented by the fact that agriculture accounts for 17
percent, industrial 18 percent and services-based sectors 65 percent.
Indian paper
industry
The Indian paper
industry is estimated at between Rs.300000.000-350000.000 millions and accounts for
over 2.5 percent of the world’s paper and paperboard production even though the
country accounts for nearly 17 percent of the global population. The industry
is currently populated with over 700 mills with less than 50 mills having a
production capacity of 50,000 MTPA, demonstration the potential of consolidation
in the sector. Over the past five years, the Indian paper industry has invested
between Rs.100000.000-120000.000 millions towards increasing productivity through the
adoption of more efficient and cleaner technologies to enhance corporate
sustainability.
India is rated as
one of the fastest growing paper markets on the back of healthy GDP growth. As
per projections, the paper and paperboards industry is expected to cross 20
MTPA by 2020 and 40 MTPA by 2030 with an annual growth rate of between 7-8
percent.
The paper industry
has an important role to play in the Indian economy. Paper consumption in India
is pegged at about 12 kg per capita making it a highly potential market when
one considers the global per capita consumption of paper at 56 kg. In order to
serve this upcoming demand, Indian paper industry needs to upgrade capacity and
technology.
Newsprint sector
India led the
world in terms of newspaper circulation with a massive pile of 374 million
newspapers circulated daily with the total number of registered newspapers at
over 86,000. According to the National Readership Survey, India has more daily
newspaper than any other nation; out of the world’s 100 largest newspapers, 20
are Indian. The demand for newsprint in the country is expected to grow at a
rate of 9 percent and India’s paper consumption is expected to increase from
2.1 MTPA in 2012-13 to 3.0 MTPA by 2015-16 and 3.5 MTPA by 2017-18.
The Indian
newsprint market is characterised with voluminous demand and a high growth
rate. However, the capacity of Indian paper mills is insufficient to meet the
demand; almost 50 percent of the demand of about 2 MTPA is addressed by way of
newsprint imports. Manufacturing newsprint through waste paper is prevalent in
India, since the country does not have a developed waste paper collection
system, with raw material availability being low and prices being relatively
high. Consequently, imports of waste paper accounted for 55-60 percent of the
total waste paper consumed.
Printing and
publishing sector
Over the years,
the global printing industry has grown, making giant strides through improved
equipment (scope, technology and speed). The Indian publishing sector is one of
the largest in the world; the country is counted among the top-seven publishing
nations. The size of the Indian publishing and printing industry is estimated
at USD 1.9 billion and USD 25 billion, respectively. The size of the Indian
book printing market is estimated at about Rs.70000.000 millions and projected to
touch Rs.100000.000 millions by 2016. Moreover, India is emerging as an
outsourcing hub of publishing and printing services, the country accounting for
a 60 percent share of the global publishing outsourcing business. This robust
growth in printing and publishing sector leaves immense scope for the Indian
paper industry to grow at a pace in line or even ahead of GDP growth.
Packaging sector
The Indian
packaging industry is estimated at Rs.630000.000 millions, growing at 11
percent annually and expected to cross Rs.950000.000 millions by the year 2015.
Demand for packaging is driven by a high growth in volume sales most consumer
goods categories. Growth in organised and modern retailing channels
(supermarkets and hypermarkets) represent the main driver of this shift towards
packaged goods. As these modern retail outlets are better equipped to showcase
packaged products compared to traditional retail outlets, the role of packaging
in influencing purchasing in store decisions is greatly increasing. This has
made packaging a more potent marketing tool than before.
The use of
packaged goods products is trickling down from India’s large cities to rural
masses. The rise in competition among consumer goods manufacturers and an
increasing focus in providing consumers convenient closures are among the key
growth drivers. India’s retail industry is expected to grow 7 percent over the
next decade, reaching a size of USD 850 billion by 2020. Traditional retail is
expected to grow at 5 percent and reach a size of USD 650 billion while organized
retail is expected to grow at 25 percent and reach a size of USD 200 billion by
2020.
Emami’s industry
presence
Subject, part of
the Emami Group of Industries has paper mills located in Balasore (Odisha) and
Dakhineshwar (Kolkata) manufacturing newsprint and value-added writing and
printing (W&P) paper. Unit 1 at Balasore is one of the most
environmentally-friendly paper mills in Eastern India, consuming waste paper
for the manufacture of internationally-benchmarked newsprint.
The Company is in
the presence of undertaken a landmark move for establishing a new paper machine
for the manufacture of multi-layered coated board at its existing facility at
Balasore. Once completed, subject will emerge as Eastern India’s largest
manufacturer of such valueadded packaging paper varieties in Eastern India.
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED 30TH JUNE, 2013
PART-I
(Rs. in Millions)
|
SL. NO. |
PARTICULARS |
3 Months ended
30.06.2013 (Unaudited) |
|
1 |
Net
Sales/Income from operations (Net of Excise Duty) |
1206.400 |
|
|
Total |
1206.400 |
|
2 |
Expenses |
|
|
|
a.
Cost of Material Consumed |
699.800 |
|
|
b.
Changes in inventories of finished goods and work-in-progres |
2.500 |
|
|
c.
Employee benefits expense |
69.800 |
|
|
d.
Power & fuel |
142.000 |
|
|
e.
Depreciation |
74.300 |
|
|
f.
Other Expenses |
101.900 |
|
|
Total
Expenses |
1090.300 |
|
3 |
Profit
/ (Loss) from Operations before other Income and finance costs (1-2) |
116.100 |
|
4 |
Other
Income |
3.200 |
|
5 |
Profit
/ (Loss) before finance costs (3+4) |
119.300 |
|
6 |
Finance
Costs |
30.300 |
|
7 |
Profit
Before Tax (5-6) |
89.000 |
|
8 |
Tax
Expense |
24.100 |
|
9 |
Net
Profit After tax for the period |
64.900 |
|
10 |
Paid
- up Equity Share Capital (Face Value Rs.2/-each) Reserves Excluding |
121.000 |
|
11 |
Revaluation
Reserve |
-- |
|
12 |
Earning
Per Share (not annualised) |
|
|
|
(a)
Basic |
1.07 |
|
|
(b)
Diluted |
1.07 |
PART-II
|
SL.
NO. |
PARTICULARS |
3 Months ended
30.06.2013 (Unaudited) |
|
A
|
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
Public
Share Holding |
|
|
|
-
Number of Shares |
15140914 |
|
|
-
Percentage of Shareholding |
25.06% |
|
2 |
Promoter
and Promoter Group Shareholding |
|
|
|
a)
Pledged / Encumbered |
|
|
|
-
Number of Shares |
NIL |
|
|
-
Percentage of Shareholding (as a % of the total shareholding of promoter and
promoter group) |
NIL |
|
|
-
Percentage of Shares (as a % of total share capital of the Company) |
NIL |
|
|
b)
Non - Pledged / Encumbered |
|
|
|
-
Number of Shares |
45358136 |
|
|
-
Percentage of Shares (as a % of the total shareholding of promoter and
promoters group) |
100.00% |
|
|
-
Percentage of Shares (as a % of total share capital of the Company) |
74.97% |
|
B |
Investor
Complaints |
3 Months ended
30.06.2013 (Unaudited) |
|
|
Pending
at the beginning of the quarter |
Nil |
|
|
Received
during the quarter |
Nil |
|
|
Disposed
off during the quarter |
Nil |
|
|
Remaining
unresolved at the end of the quarter |
Nil |
Note:
1.
The above financial results have been reviewed by the Audit Committee, and
taken on record by the Board of Directors at its meeting held on 13th
day of August, 2013.
The
limited review has been carried out by the Auditors.
2.
Considering present volatility in foreign exchange rates, effects of foreign
exchange fluctuation on outstanding loans including rollover will be recognised
at the year end.
3.
The company is setting up 100000 TPA Multi-Layer Coated Board expansion
cum-diversification project and progress is satisfactory.
4. Comparative figures of the previous period have been regrouped/rearranged wherever necessary.
CONTINGENT
LIABILITIES (AS ON 31.03.2013):
a) Contingent liabilities not provided for in
respect of:
i) Outstanding
guarantees and letters of credit furnished by the bankers on behalf of the
Company secured by hypothecation of current assets- Rs.66.444 millions.
ii) Sales tax / VAT
/ entry tax / central excise duties / service tax / ESI contribution and other
taxes under appeal / review (net of advances) - Rs.114.445 millions.
iii) Bonds /
undertakings given under EPCG scheme to custom authority - Rs.85.193 millions.
iv) Withdrawal of
incentive tariff of electricity by NESCO (net of advance) - Rs.4.626
millions.
FIXED ASSETS:
Tangible assets
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Factory Building
·
Non Factory Building
·
Plant and Equipment
·
Office Equipment
·
Furniture and Fixtures
·
Vehicles
Intangible Assets
·
Computer Software
WEBISTE DETAILS:
PRESS RELEASES/ NEWS:
EMAMI PAPER TO
DIVERSIFY
Calcutta, June 16,
2013:
Emami Paper Mills, a group firm of FMCG conglomerate Emami, is betting on its diversification into the packaging business to generate additional revenue even as its core business of newsprint paper manufacturing is under pressure from subdued demand and competition from imports.
The board of directors of the city-based firm has decided to raise Rs.1200.000 millions through preferential allotment of shares to the promoters to set up an additional capacity to support the diversification at its manufacturing unit at Balasore, Odisha.
“We have decided to expand the capacity to 1 lakh tonnes per annum of multi-layered coated board paper at our existing plant at Balasore. The value added product market for paper industry has been growing at about 15 per cent, while the newsprint segment is under pressure from imports,” P.S. Patwari, executive director of Emami Paper Mills, told The Telegraph.
According to market observers, with the advent of online news solutions there has been a rise in unutilised capacity in global markets. This has led to imports becoming a favourable option to meet newsprint demand. Domestic manufacturing costs are at a similar level to that of imports, negating cost benefit of indigenous production.
Patwari said the firm was looking to leverage on a captive market for coated board paper from its parent firm Emami and other FMCG firms.
It is also expecting steady demand from the pharmaceutical and textile industry.
“We expect to bring into operation the additional capacity by March 2015,” Patwari said.
EMAMI PAPER PUTS OFF
MILL EXPANSION PROJECT IN ODISHA
Kolkata, December
31, 2012:
Emami Paper Mills Limited has shelved the proposed Rs.16000.000 millions paper mill expansion project at Balasore in Odisha.
The project could not take off due to failure of the associated social forestry plantations plan leading to uncertainty on availability of feedstock.
“We have shelved the project as we could not progress well on plantations,” said P.S. Patwari, Executive Director, Emami Paper Mills.
Emami Paper Mills is a Rs.5000.000 millions outfit of Kolkata-based Emami Group.
The proposed wood-based pulp and paper mill project, for producing copier paper, could have scaled up the company’s production capacity to 3 lakh tonnes an annum from the current 1.5 lakh tonnes an annum.
While newsprint accounts for almost 90 per cent of the 1.5 lakh tonnes capacity, the rest goes towards writing and printing paper at present. Nearly 100 per cent of the paper produced by the company currently comes from recycled wastes. The project, which was announced earlier this year, was to use wood pulp sourced from its plantations in Odisha.
“When we envisaged this project we had proposed to put up plantations in nearly 10,000 acres of land a year in and around Odisha. We were looking at a timeframe of about five years to take up plantations to a certain level (approximately 50,000 acres) before setting up the unit,” Patwari told Business Line.
However, since the time the social forestry project was rolled out about four years ago, the company has been able to put up plantations in only about ten per cent of the targeted area.
“The culture and climate in the eastern belt is not as good as in South India. Unlike in southern India, the land in Sates like Odisha is highly fragmented. So it becomes difficult to achieve the scale of production required to kick-start the project,” Patwari explained.
Drop in demand
A dip in demand in the copier paper segment is another reason for the shelving of the project. “There has been a drop in growth rate and demand for copier paper globally post the onslaught of laptops etc, so it has become difficult to market the product,” he said.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
|
1 |
Rs.99.90 |
|
Euro |
1 |
Rs.84.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
52 |
This score serves as
a reference to assess SC’s credit risk and to set the amount of credit to be
extended. It is calculated from a composite of weighted scores obtained from
each of the major sections of this report. The assessed factors and their
relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.