MIRA INFORM REPORT
|
Report Date : |
20.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
VOITH PAPER FABRICS INDIA LIMITED
|
|
|
|
|
Registered
Office : |
113/114A, Sector 24, Faridabad -121005, Haryana |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.09.2013 |
|
|
|
|
Date of
Incorporation : |
20.06.1968 |
|
|
|
|
Com. Reg. No.: |
05-004895 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.43.926 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899HR1968PLC004895 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and selling of paper machine clothing for pulp, paper and board industry. |
|
|
|
|
No. of Employees
: |
105 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5139000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of VP AUSLANDSBETEILIGUNGEN GMBH. It is a
well-established company having fine track record. The rating reflects sound financial risk profile supported by adequate
liquidity position and decent profitability of the company. Further rating
also reflects strong financial and managerial support that company receives
from its parent company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry
retained its status as the favourable venture capital investors in 2013.
Pakistan has temporarily banned gold imports for the second time in six months,
as it tries to stem smuggling into India. India’s import duty on gold is 10 %
and curbs on purchases have dried up legal imports into what used to be the
world’s biggest bullion buyers. The World Gold Council puts the amount smuggled
into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed
that unclaimed bank deposits estimated to be about Rs 35000 mn be used for
education and awareness among depositors. According to the plan, deposits
that have not been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
A1+ (SO): Long Term Non-Fund Based Limits |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
November 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
|
Name : |
Mr. Maheshwari |
|
Designation : |
Company Secretary |
|
Date : |
13.02.2014 |
LOCATIONS
|
Registered Office : |
113/114A, Sector 24, Faridabad -121005, Haryana, India |
|
Tel. No.: |
91-129-4292200 |
|
Fax No.: |
91-129-2232072 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on: 30.09.2013
|
Name : |
Martin Gustav Scherrer |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Biren De |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravinder Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chandra Sekhar Panigrahi |
|
Designation : |
Director |
|
Date of Birth/Age : |
67 Years |
|
Qualification : |
Graduate Engineer (Mechanical) |
|
Date of Appointment : |
26.03.2009 |
|
|
|
|
Name : |
Mr. Surinder Kumar Nagpal |
|
Designation : |
Director |
|
Date of Birth/Age : |
77 Years |
|
Qualification : |
B. Com (H); FCA |
|
Date of Appointment : |
27.01.2010 |
|
|
|
|
Name : |
Mr. Markus Johann Mader |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Maheshwari |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. R. Krishna Kumar |
|
Designation : |
President |
|
Date of Birth/Age : |
38 Years |
|
Qualification : |
B.E |
|
|
|
|
Name : |
Mr. Kalyan Dasgupta |
|
Designation : |
Finance Controller |
|
|
|
|
Name : |
C.S. Gugliani |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
(2) Foreign |
|
|
|
Bodies Corporate |
3252418 |
74.04 |
|
Sub Total |
3252418 |
74.04 |
|
Total shareholding
of Promoter and Promoter Group (A) |
3252418 |
74.04 |
|
(B) Public
Shareholding |
|
|
|
(1) Institutions |
|
|
|
|
706 |
0.02 |
|
|
51406 |
1.17 |
|
|
52112 |
1.19 |
|
|
|
|
|
|
110943 |
2.53 |
|
|
|
|
|
|
802758 |
18.28 |
|
|
158468 |
3.61 |
|
|
15860 |
0.36 |
|
|
15860 |
0.36 |
|
|
1088029 |
24.77 |
|
Total Public
shareholding (B) |
1140141 |
25.96 |
|
Total (A)+(B) |
4392559 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
4392559 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and selling of paper machine clothing for
pulp, paper and board industry. |
GENERAL INFORMATION
|
No. of Employees : |
105 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company LLP Chartered Accountants |
|
|
|
|
Holding Company : |
VP Auslandsbeteiligungen GmbH (formerly VPT Auslandsbeteiligungen GmbH) |
|
|
|
|
Ultimate Holding
Company : |
Voith Paper Holding GmbH and Comapny KG (Holds 100% Equity of VP Auslandsbeteiligungen GmbH) |
|
|
|
|
Fellow Subsidiaries
: |
|
CAPITAL STRUCTURE
As on: 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4392559 |
Equity Shares |
Rs.10/- each |
Rs.43.926 Millions |
|
|
|
|
|
a. Reconciliation of equity
shares outstanding at the beginning and at the end of the reporting period
|
At the beginning of
the year: |
30.09.2013 |
|
4,392,559 (Previous year 4,392,559) equity shares of Rs. 10/- each fully paid |
43.926 |
|
Issued during the year - for cash |
-- |
|
Outstanding at the end of the year |
43.926 |
b. Terms / rights
attached to equity shares
The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- 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 propsed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.
During the year ended September 30, 2013, the amount of per share dividend recognized as distributions to equity shareholoders was Rs. 3 (Previous year Rs. 3)
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c. Shares held by
holding company
|
|
30.09.2013 |
|
VP
Auslandsbeteiligungen GmbH |
|
|
3,252,418 (Previous year 3,252,418) shares of Rs. 10/- each fully paid |
32.524 |
d. Name of
shareholders holding more than 5% shares in the Company
|
|
30.09.2013 |
|
|
|
No. of Equity shares |
% holding in the class |
|
VP Auslandsbeteiligungen GmbH |
3252418 |
74.04 |
As per the 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 ownership of equity shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
43.926 |
43.926 |
43.926 |
|
(b) Reserves & Surplus |
1240.869 |
1127.684 |
1012.812 |
|
(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) |
1284.795 |
1171.610 |
1056.738 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
3.730 |
6.570 |
8.556 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
9.171 |
11.037 |
4.715 |
|
Total
Non-current Liabilities (3) |
12.901 |
17.607 |
13.271 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
81.060 |
62.416 |
59.955 |
|
(c) Other current liabilities |
36.845 |
24.115 |
11.621 |
|
(d) Short-term provisions |
47.313 |
42.484 |
51.539 |
|
Total
Current Liabilities (4) |
165.218 |
129.015 |
123.115 |
|
|
|
|
|
|
TOTAL |
1462.914 |
1318.232 |
1193.124 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
187.720 |
209.685 |
234.746 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
168.001 |
104.353 |
0.000 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
26.617 |
7.802 |
2.189 |
|
(e) Other Non-current assets |
2.629 |
2.479 |
294.543 |
|
Total
Non-Current Assets |
384.967 |
324.319 |
531.478 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
84.631 |
90.114 |
102.183 |
|
(c) Trade receivables |
163.713 |
123.968 |
110.345 |
|
(d) Cash and cash equivalents |
798.614 |
714.508 |
400.969 |
|
(e) Short-term loans and
advances |
29.645 |
24.795 |
23.508 |
|
(f) Other current assets |
1.344 |
40.528 |
24.641 |
|
Total
Current Assets |
1077.947 |
993.913 |
661.646 |
|
|
|
|
|
|
TOTAL |
1462.914 |
1318.232 |
1193.124 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
|
SALES |
|
|
|
|
|
|
Income |
591.895 |
577.434 |
544.286 |
|
|
|
Other Income |
84.544 |
85.716 |
73.622 |
|
|
|
TOTAL
(A) |
676.439 |
663.150 |
617.908 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
Cost of Raw Materials Consumed |
155.421 |
156.949 |
143.882 |
|
|
|
Purchases of traded goods |
5.963 |
0.000 |
0.000 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
14.345 |
7.967 |
1.424 |
|
|
|
Employees benefits expense |
110.427 |
118.043 |
108.807 |
|
|
|
Other expenses |
170.267 |
167.178 |
169.100 |
|
|
|
TOTAL
(B) |
456.423 |
450.137 |
423.213 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (C) |
220.016 |
213.013 |
194.695 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES
(D) |
0.027 |
0.225 |
2.325 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
219.989 |
212.788 |
192.370 |
|
|
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
26.672 |
26.823 |
26.491 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
193.317 |
185.965 |
165.879 |
|
|
|
|
|
|
|
|
|
Less |
TAX
(I) |
64.715 |
55.778 |
50.549 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I) (J) |
128.602 |
130.187 |
115.330 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
595.046 |
493.193 |
404.711 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
12.860 |
13.019 |
11.533 |
|
|
|
Dividend |
13.178 |
13.178 |
13.177 |
|
|
|
Tax on Dividend |
2.240 |
2.137 |
2.138 |
|
|
BALANCE CARRIED
TO THE B/S |
695.370 |
595.046 |
493.193 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
35.584 |
32.371 |
31.516 |
|
|
|
Commission Earnings |
8.025 |
9.201 |
8.611 |
|
|
|
Freight received |
0.042 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
43.651 |
41.572 |
40.127 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
113.567 |
139.215 |
103.459 |
|
|
|
Stores & Spares |
2.963 |
2.173 |
2.173 |
|
|
|
Capital Goods |
31.577 |
90.236 |
90.236 |
|
|
TOTAL IMPORTS |
148.107 |
231.624 |
195.868 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
29.28 |
29.64 |
26.26 |
|
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
PAT / Total Income |
(%) |
19.01 |
19.63 |
18.66 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
32.66 |
32.21 |
30.48 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.85 |
15.32 |
15.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.16 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.52 |
7.70 |
5.37 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
43.926 |
43.926 |
43.926 |
|
Reserves & Surplus |
1,012.812 |
1,127.684 |
1,240.869 |
|
Net
worth |
1,056.738 |
1,171.610 |
1,284.795 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
544.286 |
577.434 |
591.895 |
|
|
|
6.090 |
2.504 |
NET PROFIT MARGIN
|
Net
Profit Margin |
30.09.2013 |
30.09.2012 |
30.09.2011 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
544.286 |
577.434 |
591.895 |
|
Profit |
115.330 |
130.187 |
128.602 |
|
|
21.19% |
22.55% |
21.73% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
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 |
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The paper industry is one of the oldest and the most important industry in terms of socio-economic development of the country. It is one of the rapidly growing industries in India though it accounts for only about 2.5% of the global production of paper. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern.
The paper industry in India has capacity to produce about 12 million tonnes per annum and some more capacity is coming up. The overall market size is about Rs.60,000 crore and is growing at a steady pace aligned to the GDP growth rate. The size of country's population, demand in the office market and education will continue to drive this sector’s growth.
The paper industry has grown well over the last five years. Currently, the country's paper industry is passing through a phase of consolidation due to rising input costs, difficulty in raw material availability and increasing competition from global players. Most of the manufacturing units have converted themselves into integrated paper makers. Now they are in the phase of consolidation of their business and optimizing returns on their investments. The industry has braced quite well to the price increases and is faced with pressure on costs.
THEIR STRENGTHS
Being the single largest Indian manufacturer, supplying entire range of paper machine clothing (industrial felts) for pulp, paper and paperboard and fibre cement industries; the company is a clear leader in the Indian market and also having presence in overseas markets of the subcontinent.
Being part of Voith Group, which is famous for its "Engineered reliability" in all business segments where they operate, provides the Company an edge over its competitors. They perceive ourselves to be the preferred supplier for majority of their customers as their products enjoy a high level of acceptance in the market due to their inherent good quality and effective after sales support. The innovative paper machine clothing manufactured at the Company, continue to assist papermakers in applying the best solutions to improve paper properties and productivity.
The assiduous efforts of employees at all levels have helped the Company to grow, despite increased competition and prevailing economic uncertainty.
THEIR WEAKNESSES
As the major consumers of the company's products are paper industry and the fibre-cement industry, the prospects of the company are largely dependent on the growth of these industries.
Also, over 75% of the raw materials used to manufacture paper machine clothing are imported and hence input costs increases significantly in the eventuality of adverse fluctuation in rates of rupee vis-à-vis dollar and euro. Further, the industry specific policies framed by government, from time to time, may have an impact on the business environment for the industry as well as the company.
OUTLOOK
Paper, since time immemorial, has been a medium for propagation of thoughts and ideas and conveying feelings. In spite of the growth in electronic media, it is still the most popular mode of communication in the lettered world. Paper sector has been growing at a steady clip in the last few years across the world and in India too. The industry is cyclical but at this stage the cycle is in favour of paper manufacturers with demand outstripping supply. With increasing literacy and growing demand for packaged products, the industry seems set to see robust demand in the coming years. They will also benefit from using eco-friendly modes of producing paper and from growing emphasis on recycling paper. With increasing propensity for consumption of paper, the companies look set to prosper in the coming years.
Some of the Key Growth Drivers for Paper Industry in India are given below:
• The growing Indian economy will create more demand for paper.
• More offices and more jobs will create higher demand for office/printer paper.
• Focus of government on education will create demand in education sector
• Increasing literacy levels will lead to higher demand
• Increasing circulation/readership of newspapers/periodicals
• Higher prevalence of using packaged products
• Focus on marketing campaigns for products
• Increased demand for paper from hygiene/hospitality sector
However, the focus of paper industry is now shifting towards more eco-friendly products and technology, as the Government of India has established rules and regulations to control the pollution and degradation of forests. These measures taken by the Government are likely to bring about significant changes in the paper industry of India in future.
STANDALONE UNAUDITED (REVIEWED) RESULTS OF THE COMPANY FOR THE FIRST
QUARTER AND THREE MONTHS PERIOD ENDED 31.12.2013
(Rs. In Millions)
|
PART - I |
||||
|
SI. No. |
|
Three months ended 31.12.2013 and year to
date figures in the current year |
Preceeding three months ended 30.09.2013 |
Previous accounting year ended 30.09.2013 |
|
1 |
Income From
Operations |
|
|
|
|
|
(a) Net Sales / Income from Operations (Net of excise duty) |
154.584 |
160.459 |
591.895 |
|
|
(b) Other Operating Income |
5.014 |
5.565 |
19.418 |
|
|
Total Income from Operations (Net) |
159.598 |
166.024 |
611.313 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of material consumed |
49.862 |
45.999 |
155.421 |
|
|
(b) Purchases of stock-in-trade |
0.171 |
- |
5.963 |
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(5.652) |
1.578 |
14.345 |
|
|
(d) Employee benefit expenses |
28.814 |
26.876 |
110.427 |
|
|
(e) Depreciation and amortisation expense |
7.495 |
6.422 |
26.672 |
|
|
(f) Other expenses |
43.995 |
49.984 |
170.267 |
|
|
Total expenses |
124.685 |
130.859 |
483.095 |
|
3 |
Profit/(Loss) from
Operations before Other Income, finance cost & Exceptional Items (1 -2) |
34.913 |
35.165 |
128.218 |
|
4 |
Other Income |
18.657 |
17.534 |
65.127 |
|
5 |
Profit/ (Loss) from
ordinary activities before finance cost & Exceptional Items (3+4) |
53.570 |
52.699 |
193.345 |
|
6 |
Finance costs |
- |
0.016 |
0.028 |
|
7 |
Profit/(Loss) from
ordinary activities after finance cost but before Exceptional Items (5-6) |
53.570 |
52.683 |
193.317 |
|
8 |
Exceptional Items |
- |
- |
- |
|
9 |
Profit / (Loss)
from Ordinary Activities before tax (7+ 8) |
53.570 |
52.683 |
193.317 |
|
10 |
Tax Expense / (credit) |
18.209 |
18.009 |
64.715 |
|
11 |
Net Profit / (Loss)
after tax (9-10) |
35.361 |
34.674 |
128.602 |
|
12 |
Extraordinary Items |
- |
- |
- |
|
13 |
Net Profit for the
period (11-12) |
35.361 |
34.674 |
128.602 |
|
14 |
Paid-up Equity Share Capital (Face Value Rs. 10/- each) |
43.926 |
43.926 |
43.926 |
|
15 |
Reserves Excluding Revalution Reserves as per Balance Sheet of Previous Accounting Year |
- |
- |
1240.869 |
|
16 i |
Earnings Per Share (before extraordinary items) of Rs.10/- each (not annualized): |
|
|
|
|
|
- Basic & Diluted |
8.05 |
7.89 |
29.28 |
|
16 ii |
Earnings Per Share (After extraordinary items) of Rs.10/- each (not annualized): |
|
|
|
|
|
- Basic & Diluted |
8.05 |
7.89 |
29.28 |
SELECT INFORMATION
FOR THE FIRST QUARTER AND THREE MONTHS PERIOD ENDED 31.12.2013
(Rs. In Millions)
|
A |
PARTICULARS OF
SHAREHOLDING |
Three months ended 31.12.2013 and year to
date figures in the current year |
Preceeding three months ended 30.09.2013 |
Previous accounting year ended 30.09.2013 |
|
1 |
Public
shareholding : |
|
|
|
|
|
(a) Number of shares |
1140141 |
1140141 |
1140141 |
|
|
(b) Percentage of shareholding |
25.96% |
25.96% |
25.96% |
|
2 |
Promoters and
Promoter group shareholding : (a) Pledged /
Encumbered |
|
|
|
|
|
- Number of shares |
- |
- |
- |
|
|
- Percentage of shareholding (as a % of the total share holding of
promoter and promoter group) |
- |
- |
- |
|
|
- Percentage of shareholding (as a % of the total share capital of the
Company) |
- |
- |
- |
|
|
(b) Non Pledged
/ Non Encumbered |
|
|
|
|
|
- Number of shares |
3252418 |
3252418 |
3252418 |
|
|
- Percentage of shareholding (as a % of the total share holding of
promoter and promoter group) |
100% |
100% |
100% |
|
|
- Percentage of shareholding (as a % of the total share capital of the
Company) |
74.04% |
74.04% |
74.04% |
|
INVESTOR COMPLAINTS
[Nos.] |
Three months ended
31.12.2013 |
|
Pending at the beginning of the quarter |
- |
|
Received during the quarter |
1 |
|
Disposed of during the quarter |
- |
|
Remaining unresolved at the end of the quarter |
1 |
Notes:
- The above financial results were approved and taken on record by the Board of Directors at their meeting held on 12th February, 2014.
- The Company is mainly in the business of manufacturing and selling of felts. Hence, there is no separate reportable segment as per Accounting Standard 17, issued by the Institute of Chartered Accountants of India.
- Tax includes Current Tax and Deferred Tax.
- Previous year / period figures have been regrouped / rearranged, wherever considered necessary, to conform to the current period classification.
- Statutory auditors have carried out limited review on above results for the quarter ended 31st December, 2013.
Note: No Charges Exist for Company
FIXED ASSETS
- Freehold Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Office Equipments
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.12 |
|
|
1 |
Rs.103.93 |
|
Euro |
1 |
Rs.85.17 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
52 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational
base are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly
Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome
financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to be
in default upon maturity |
Limited
with full security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit
not recommended |
|
-- |
NB |
New
Business |
-- |
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.