MIRA
INFORM REPORT
|
Report Date : |
25.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
THE SIRPUR PAPER MILLS LIMITED |
|
|
|
|
Registered
Office : |
5-9-22/1/1, 1st Floor, Adarsh Nagar, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.11.1938 |
|
|
|
|
Com. Reg. No.: |
01-000591 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.164.436 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L21010AP1938PLC000591 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDT00008B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT7970R |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacture of Pulp, Paper and Paper Board and Generation of Power. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (17) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a moderate track record. There are loss recorded by the company during 2013. The rating takes into consideration continuous deterioration in
operational and financial performance. However, business is active. Payment are reported to be slow. The company can be considered for business dealings on safe and
secured 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 |
CARE |
|
Rating |
Long term bank facilities: “C” (Suspended) |
|
Rating Explanation |
Have very high risk of default. |
|
Date |
14.02.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: “A4” (Suspended) |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk. |
|
Date |
14.02.2014 |
Reason: The ratings have been suspended as the company has not
furnished the information required by CARE for monitoring the ratings.
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-COOPERATIVE (Tel. No.: 91-40-23240244)
LOCATIONS
|
Registered Office : |
5-9-22/1/1, 1st Floor, Adarsh Nagar, Hyderabad – 500463,
Andhra Pradesh, India |
|
Tel. No.: |
91-40-23240244/ 23231134/ 23236301/ 23298705 |
|
Fax No.: |
91-40-23232470 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Sirpur House, Plot No. 39, Sector – 44, P. O. Gurgaon – 122003,
Haryana, India |
|
Tel. No.: |
91-124-4888111 |
|
Fax No.: |
91-124-4888101 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Sirpur – Kaghaznagar – 504296, Andhra Pradesh, India |
|
Tel. No.: |
91-8738-238044/ 238045/ 239495 |
|
Fax No.: |
91-08738-238323/ 235148/
238642/ 238648 |
|
E-Mail : |
DIRECTORS
As on 31.03.2013
|
Name : |
Ranjan Kumar Poddar |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
12.08.1949 |
|
Qualification : |
B.A. Economics (Hons.) |
|
Expertise in
specific functional areas: |
Industrialist |
|
Date of Appointment : |
20.09.1975 |
|
|
|
|
Name : |
Devashish Poddar |
|
Designation : |
Vice-Chairman and Managing Director |
|
Date of Birth/Age : |
15.09.1972 |
|
Qualification : |
B.B.A. from London |
|
Expertise in
specific functional areas: |
Business Management and Administration and specialized knowledge in management systems |
|
Date of Appointment : |
07.11.1994 |
|
Other Directorship: |
· Devi Developers Private Limited Aravali Securities and Finance Limited Boutique Hotels India Private Limited Devi Business Hotels Private Limited Lakshmi Paper Industries Limited |
|
|
|
|
Name : |
Rameshwar Lall Lakhotia |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
26.07.1945 |
|
Qualification : |
B.Tech (Chemical Engg.) |
|
Date of Appointment : |
24.07.2010 |
|
|
|
|
Name : |
Sudhir Jalan |
|
Designation : |
Director |
|
Date of Birth/Age : |
07.11.1944 |
|
Qualification : |
B. Com, M.B.A. from IIM, Kolkata |
|
Expertise in
specific functional areas: |
He is an industrialist and has been associated in senior management positions as chairman and managing director/ CEO of various companies and diversified industries, President of International Chamber of Commerce (ICC India), Vice President of All India Management Association, Honorary Consul General of Greece in Kolkata and past president of FICCI. |
|
Date of Appointment : |
31.01.2000 |
|
|
|
|
Name : |
Laxminiwas Sharma |
|
Designation : |
Director |
|
Date of Birth/Age : |
17.02.1947 |
|
Qualification : |
F.C.A. |
|
Expertise in
specific functional areas: |
Former President of FAPCCI and a senior Chartered Accountant and Tax Consultant |
|
Date of Appointment : |
31.01.2000 |
|
Other Directorship: |
· B. N. Rathi Securities Limited Bapuji Estates Private Limited Hyderabad Trade Expo Centre Private Limited Agroha Co-operative Urban Bank Limited Bhamashah Health and Medical Co-operative Society Limited. |
|
|
|
|
Name : |
P. Vaman Rao |
|
Designation : |
Director |
|
Date of Birth/Age : |
12.06.1928 |
|
Qualification : |
B. A. |
|
Expertise in
specific functional areas: |
Public Relations and Journalism, General Administration and liaison |
|
Date of Appointment : |
10.11.2000 |
|
Other Directorship: |
· Hyderabad Industries Limited Hyderabad Agencies Private Limited |
|
|
|
|
Name : |
Rakesh Bhartia |
|
Designation : |
Director |
|
Date of Birth/Age : |
26.02.1969 |
|
Qualification : |
A.C.A., A.I.C.W.A. and A.C.S. |
|
Expertise in
specific functional areas: |
In the field of corporate and investment banking and managing a multilocation large industrial business enterprise |
|
Date of Appointment : |
29.04.2009 |
|
Other Directorship: |
· Shakumbari Sugar and Allied Industries Limited Kashipur Infrastructure and Allied Industries Limited |
|
|
|
|
Name : |
G.S. Srinivasan |
|
Designation : |
IDBI Nominee |
|
|
|
|
Name : |
Ms. Poonam Bodra |
|
Designation : |
Director |
|
Date of Birth/Age : |
3.11.1956 |
|
Qualification : |
M. Sc. (Zoology) |
|
Expertise in
specific functional areas: |
Principal, Zonal Training Centre, LIC of India |
|
Date of Appointment : |
09.08.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Dinesh Lata |
|
Designation : |
Company Secretary |
|
|
|
|
BOARD COMMITTEES |
|
|
|
|
|
AUDIT COMMITTEE: |
· Mr. P. Vaman Rao - Chairman Mr. R. L. Lakhotia Mr. Laxminiwas Sharma Mr. G. S. Srinivasan Mr. Rakesh Bhartia |
|
|
|
|
REMUNERATION
COMMITTEE: |
· Mr. Sudhir Jalan Mr. P. Vaman Rao Mr. Laxminiwas Sharma Mr. Rakesh Bhartia |
|
|
|
|
SHAREHOLDERS’
GRIEVANCES COMMITTEE: |
· Mr. Laxminiwas Sharma - Chairman Mr. Devashish Poddar Mr. R. L. Lakhotia Mr. P. Vaman Rao |
|
|
|
|
BORROWING
COMMITTEE: |
· Mr. Sudhir Jalan - Chairman Mr. R. L. Lakhotia Mr. Laxminiwas Sharma Mr. P. Vaman Rao |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3330 |
0.02 |
|
|
4684077 |
27.58 |
|
|
4687407 |
27.60 |
|
|
|
|
|
|
3790067 |
22.31 |
|
|
3790067 |
22.31 |
|
Total shareholding of Promoter and Promoter Group (A) |
8477474 |
49.91 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200 |
0.00 |
|
|
237312 |
1.40 |
|
|
1645611 |
9.69 |
|
|
1883123 |
11.09 |
|
|
|
|
|
|
1312432 |
7.73 |
|
|
|
|
|
|
2871236 |
16.90 |
|
|
2241431 |
13.20 |
|
|
199304 |
1.17 |
|
|
54857 |
0.32 |
|
|
52343 |
0.31 |
|
|
77515 |
0.46 |
|
|
14589 |
0.09 |
|
|
6624403 |
39.00 |
|
Total Public shareholding (B) |
8507526 |
50.09 |
|
Total (A)+(B) |
16985000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
16985000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Pulp, Paper and Paper Board and Generation of Power. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Pulp, Paper and Board |
MT |
138300 |
93900 |
|
Complete Pulp and Paper Making Plant (10-15TPD) |
Nos. |
4 |
-- |
|
Generation of Electricity |
MW |
32 |
1170.94 |
Licensed capacity is not applicable in terms of Govt. of India's
Notification.
(a) Installed
Capacities are as certified by the Executive Director.
(b) Represents Finished
Production of Pulp, Paper and Paper Board. Production of Pulp is not separately
ascertained as pulp plant is an integral part of paper and paper board plant.
Includes pulp production of 4091 (Previous Year – Nil MT) meant for external
sales.
Note: Generation
of electricity is for internal consumption. The installed capacity of these
Plants for the current year and for earlier years is as per the original
designed capacity.
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||
|
Bankers : |
· Central Bank of India State Bank of Hyderabad IDBI Bank Limited Andhra Bank |
||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||
|
Facilities : |
NOTE: LONG TERM
BORROWINGS Pursuant to the Company’s application for restructuring of its existing debts, the final restructuring package was approved by CDR-EG and implemented during the year. As per the approved scheme, a moratorium period of 21 months, from April 2012 to December 2013, is granted. Interest accrued for the year on terms loans amounting to Rs.336.621 Millions is treated as Funded Interest Term Loan (FITL) and included in the term loan above. The interest accrued on FITL is due and payable on monthly basis. The nature of security and terms of repayment for long-term secured borrowings as per the approved CDR package is given below:
b. Pledge of entire shareholding of the promoters viz. Shri Ranjan Kumar Poddar, Aravali Securities and Finance Limited and Amba Investment Private Limited, along with their voting rights on pari passu basis. c. Irrevocable and unconditional personal guarantee of Shri Ranjan Kumar Poddar and Shri Devashish Poddar in favour of the lenders. Term loans from banks includes Rs.2906.096 Millions which are optionally convertible by the lenders into fully paid Ordinary shares in the event of default in repayment of principal amount of loan or interest thereon or any combination thereof. Vehicle loan is repayable in 39 monthly installments ending in June 2016. SHORT TERM BORROWINGS Short term borrowings from banks are secured by a pari passu first charge on the entire current assets both present and future and pari passu second charge on entire fixed assets both present and future of the Company. Pledge of entire shareholding of the promoters viz. Shri Ranjan Kumar Poddar, Aravali Securities and Finance Limited and Amba Investment Private Limited, along with their voting rights on pari passu basis. Irrevocable and unconditional personal guarantee of Shri Ranjan Kumar Poddar and Shri Devashish Poddar in favour of the lenders. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Secunderabad, Andhra Pradesh, India |
|
|
|
|
Legal Advisers: |
|
|
Name : |
S. Ravi Advocate |
|
Address : |
Hyderabad, Andhra Pradesh, India |
|
Qualification : |
M.S. (Calif.), LLB |
|
|
|
|
Name : |
O.P. Khaitan and Company Solicitors and Advocates |
|
Address : |
New Delhi, India |
|
|
|
|
Entity holding more
than 20%: |
Aravali Securities and Finance Limited |
|
|
|
|
Entities where managerial
personnel along with their relative exercising significant influence: |
· Boutique Hotels India Private Limited Amba Investment Private Limited |
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital : Rs. 350.000 Millions
Issued, Subscribed & Paid-up Capital: Rs. 169.850 Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
1000000 |
Preference shares |
Rs.100/- each |
Rs. 100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 350.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16996174 |
Equity Shares |
Rs.10/- each |
Rs. 169.962 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16435000 |
Equity Shares |
Rs.10/- each |
Rs. 164.350 Millions |
|
|
Add: Forfeited shares |
|
Rs. 0.086 Million |
|
|
|
|
|
|
|
Total |
|
Rs. 164.436
Millions |
NOTES:
Subscribed and
paid up capital include:
a. Reconciliation of
number of Ordinary shares and amount outstanding at the beginning and at the
end of the year:
|
Particulars |
As at March 31, 2013 |
|
|
Number of shares |
Rs. In Millions |
|
|
Balance at the beginning of the year |
1,58,79,900 |
158.799 |
|
Add: Allotted during the year |
5,55,100 |
5.551 |
|
Balance at the end of the year |
1,64,35,000 |
164.350 |
b. Rights,
preferences and restrictions attached to Ordinary shares:
The Ordinary shares of the Company, having par value of Rs.10 per share, rank pari passu in all respects including voting rights and entitlement to dividend.
c. Shareholders
holding more than 5% of the Ordinary shares along with the number of shares
held is as given below:
|
Name of the
shareholder |
As at March 31, 2013 |
|
|
Number of shares |
% |
|
|
Aravali Securities and Finance Limited |
41,07,000 |
24.99 |
|
Amba Investment Private Limited |
32,40,067 |
19.71 |
d. Details of
forfeited shares:
|
Class of shares |
As at March 31, 2013 |
|
|
Number of shares |
Amount originally paid up |
|
|
Ordinary shares with voting rights |
9,154 |
0.86 |
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 |
164.436 |
158.885 |
158.885 |
|
(b) Reserves & Surplus |
885.200 |
1888.306 |
2076.021 |
|
(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) |
1049.636 |
2047.191 |
2234.906 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3084.589 |
2007.711 |
2075.119 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
55.948 |
103.540 |
|
(c) Other long term liabilities |
406.156 |
369.526 |
367.174 |
|
(d) long-term provisions |
88.210 |
84.382 |
105.966 |
|
Total Non-current Liabilities (3) |
3578.955 |
2517.567 |
2651.799 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
347.441 |
459.304 |
169.938 |
|
(b) Trade payables |
803.994 |
571.815 |
466.102 |
|
(c) Other current
liabilities |
158.015 |
760.257 |
707.820 |
|
(d) Short-term provisions |
15.963 |
14.165 |
6.722 |
|
Total Current Liabilities (4) |
1325.413 |
1805.541 |
1350.582 |
|
|
|
|
|
|
TOTAL |
5954.004 |
6370.299 |
6237.287 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4179.846 |
4479.673 |
4832.476 |
|
(ii) Intangible Assets |
2.204 |
3.626 |
0.000 |
|
(iii) Capital
work-in-progress |
93.621 |
102.981 |
51.171 |
|
(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 |
213.555 |
201.597 |
166.254 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
4489.226 |
4787.877 |
5049.901 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
409.556 |
462.095 |
302.231 |
|
(c) Trade receivables |
634.162 |
624.847 |
543.383 |
|
(d) Cash and cash
equivalents |
36.977 |
139.287 |
82.730 |
|
(e) Short-term loans and
advances |
261.800 |
257.458 |
210.152 |
|
(f) Other current assets |
122.283 |
98.735 |
48.890 |
|
Total Current Assets |
1464.778 |
1582.422 |
1187.386 |
|
|
|
|
|
|
TOTAL |
5954.004 |
6370.299 |
6237.287 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3540.056 |
3894.970 |
3645.920 |
|
|
|
Other Income |
111.961 |
107.342 |
107.172 |
|
|
|
TOTAL (A) |
3652.017 |
4002.312 |
3753.092 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1723.557 |
|
|
|
|
|
Changes in inventories of finished goods, stock-in-process and stock-in-trade |
15.038 |
(43.542) |
|
|
|
|
Employee benefits expense |
671.031 |
663.836 |
|
|
|
|
Other expenses |
1527.842 |
1278.344 |
|
|
|
|
TOTAL (B) |
3937.468 |
3504.394 |
3283.792 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
(285.451) |
497.918 |
469.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
448.779 |
418.728 |
347.381 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(734.230) |
79.190 |
121.919 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
292.700 |
299.873 |
303.532 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(1026.930) |
(220.683) |
(181.613) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(55.948) |
(47.592) |
(2.484) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(970.982) |
(173.091) |
(179.129) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(155.333) |
17.758 |
196.887 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1126.315) |
(155.333) |
17.758 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and spare parts |
16.805 |
15.322 |
12.680 |
|
|
TOTAL IMPORTS |
16.805 |
15.322 |
12.680 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(60.80) |
(10.90) |
(11.42) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
990.900 |
1009.200 |
1090.800 |
|
Total Expenditure |
1051.500 |
1168.800 |
1129.200 |
|
PBIDT (Excl OI) |
(60.600) |
(159.600) |
(38.400) |
|
Other Income |
0.400 |
05.800 |
0.100 |
|
Operating Profit |
(60.200) |
(153.800) |
(38.300) |
|
Interest |
99.600 |
103.500 |
108.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(159.800) |
(257.300) |
(146.600) |
|
Depreciation |
71.300 |
72.600 |
72.900 |
|
Profit Before Tax |
(231.100) |
(329.900) |
(219.500) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(231.100) |
(329.900) |
(219.500) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(231.100) |
(329.900) |
(219.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(26.59)
|
(4.32) |
(4.77) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(29.01)
|
(5.67) |
(4.98) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(17.52)
|
(3.52) |
(2.94) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.98)
|
(0.11) |
(0.08) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.27
|
1.21 |
1.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11
|
0.88 |
0.88 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
158.885 |
158.885 |
164.436 |
|
Reserves & Surplus |
2076.021 |
1888.306 |
885.200 |
|
Net
worth |
2234.906 |
2047.191 |
1049.636 |
|
|
|
|
|
|
Long-term borrowings |
2075.119 |
2007.711 |
3084.589 |
|
Short term borrowings |
169.938 |
459.304 |
347.441 |
|
Total
borrowings |
2245.057 |
2467.015 |
3432.030 |
|
Debt/Equity
ratio |
1.005 |
1.205 |
3.270 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3645.920 |
3894.970 |
3540.056 |
|
|
|
6.831 |
(9.112) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3645.920 |
3894.970 |
3540.056 |
|
Profit |
(179.129) |
(173.091) |
(970.982) |
|
|
(4.91%) |
(4.44%) |
(27.43%) |
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 |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred payment
liabilities |
|
|
|
Sales tax deferment loans |
221.195 |
203.743 |
|
Total |
221.195 |
203.743 |
|
NOTE: LONG TERM
BORROWINGS As per final eligibility certificate of Commissioner of Industries, Hyderabad, the sales tax payable on the sale of products manufactured by the Company over and above the turnover of Rs.1846.500 Millions is eligible for deferment up to a maximum of Rs.654.585 Millions. The deferment is to be availed in 14 financial years commencing from March 21, 2002 to March 20, 2016. Each year's deferment is payable after 14 years from the year of deferment, without interest. Based on the above, the Company has claimed deferred sales tax liability as at March 31, 2013 of Rs.245.411 Millions (March 31, 2012: Rs.210.051 Millions). The Company has received a demand of Rs.24.216 Millions (March 31, 2012: Rs.6.308 Millions) towards excess deferment availed |
||
CORPORATE
INFORMATION
Incorporated in 1938, subject is a manufacturer of paper and paper board in India, and its fully integrated pulp and paper mill and captive power plant is located at Sirpur Kaghaznagar, Andhra Pradesh, India. Its production commenced in 1942 with a capacity of 5,000 TPA. The present installed capacity of the mill is 138,300 TPA.
PERFORMANCE
The Company produced 83,085 MT of pulp and paper during the year as compared to 99,543 MT produced in the previous year and sales was 83,789 MT as compared to 98,079 MT in the previous year. The gross operating revenue during the year was Rs.3765.200 Millions as compared to Rs.4106.100 Millions in 2011-12. Capacity utilization was 60% since production was affected mainly due to an unfortunate accident in the Chemical (Soda) Recovery Plant at their mills at Sirpur-Kaghaznagar in April, 2012 which resulted in complete shutdown of the production process and loss of production for about 45 days.
Further, the severe power cuts by the state grid throughout the year, had a crippling effect on the operations resulting in shut down of one paper machine for most part of the year leading to tapered production.
The loss before other items, finance costs, depreciation and tax was Rs.146.000 Millions compared to profit of Rs.497.900 Millions in the previous year. There was steep increase in prices of wood, power and other major inputs which could not be passed on to the customers. Availability of wood in traditional sourcing areas in Andhra Pradesh declined considerably causing demand-supply mismatch which led to continuous increase in the prices throughout the year. Due to low availability of cheaper species of wood, the Company had to resort to procurement of other costlier species of wood. The situation was aggravated since wood had to be procured from distant locations and from outside the state, which further added to the cost. As a result, the cost of wood during the year increased by 40%.
Simultaneously, cost of coal during the year increasedby 20% due to massive short supply of coal from Singareni Collieries during the rainy season which forced the Company to procure from private suppliers and distant places at much higher prices.
The power prices increased by about 70% during the year and additional consumption of coal and furnace oil in order to cope with the severe power cuts in the state has also affected the profitability. The Company's incessant efforts towards control on cost and wastages, better input yield and improvement in productivity resulted in savings in consumption of inputs per MT of product which, to an extent, offset the impact of the input price rise.
The financial year ended with net loss after tax of Rs.971.000 Millions as against Rs.173.100 Millions in 2011-12.
FINANCE
The Company's finances have been strained due to continuous losses for the past four years. After considerable deliberations, the Company sought flexibility from the lenders and a comprehensive restructuring of its outstanding debt was approved by the lenders under the Corporate Debt Restructuring (CDR) scheme. The Company has been sanctioned a moratorium of principal and interest for 21 months from the cut off date i.e. April 1, 2012 and the payment of interest commences from January 2014 and that of principal from March 2014. There are no over dues in respect of any of the bank borrowings by the Company as on date.
In view of the approval of the CDR package, the interest rates has adjusted towards lower side marginally, though fresh loans by way of Funded Interest Term Loan (FITL) increased the overall finance cost to Rs.4.488 Millions as against Rs.4.187 Millions during 2011-12. The Company's management is committed to honouring its obligations, while it finds ways and means to lower the cost of production, improve volumes and enhance profitability.
The Company continues to avail sales tax deferment loan under Andhra Pradesh State Government policy and remains eligible for incentives under Industrial Incentive Scheme, 2005.
REPORTING TO BIFR
The accumulated losses of the Company at the end of financial year as on March 31, 2013 have resulted in erosion of more than fifty percent of its peak net worth during the immediately preceding four financial years. While the Company is taking necessary steps to protect further erosion, the Company will report to the Board for Industrial and Financial Reconstruction about such erosion of net worth as envisaged under Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985 upon finalization of duly audited accounts of the Company for the financial year ended March 31, 2013. Members are requested to take note of this erosion and consider the same at the ensuing Annual General Meeting. A report on causes of erosion of net worth and steps taken by the Company is forming part of the notice of Annual General Meeting.
PLANTATION
The availability of wood, their principal raw material, has seen a decline during the year. However, the Company has stepped up its initiative to augment raw material availability by distributing large quantities of planting material i.e. seeds, seedlings of subabul and quality clones of eucalyptus plants at subsidized rates to achieve higher yield. Managers of the Company also gave technical guidance and trained the farmers in various farming activities for achieving better results.
AWARDS AND ACCOLADES
For the year 2012, in appreciation of its achievements in energy conservation in the paper and pulp sector, the Company has been awarded the First Prize by Ministry of Power, Government of India. This prestigious National Award was received by Mr. Devashish Poddar, Vice-Chairman and Managing Director of the Company from Hon'ble President of India, Shri Pranab Mukherjee, in the presence of Shri Jyotiraditya Scindia, Hon'ble Minister for Power, Government of India, and several distinguished guests on December 14, 2012.
The Company has been declared winner of 'First Prize for Energy Conservation' in Small and Medium Scale Industry Category for the year 2011-12 by New and Renewable Energy Development Corporation of Andhra Pradesh Limited, and the award was received at a function held on December 20, 2012 at Hyderabad.
The Company has also bagged the 'Innovative Environmental Project-2012' and National Award for Excellence in Water Management-2012, both instituted by Confederation of Indian Industries.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL PERSPECTIVE
Early in 2013, the outlook for the global paper industry turned positive based on the expectation that the industry's global operating income is likely to increase by about 6% over the next 12 to 18 months, according to the rating agency Moody's in its industry outlook update on the sector.
Earnings from North American paper packaging are expected to drive most of the growth for the industry in the next year and will offset the weaker earnings facing European and Latin American producers, as well as the ongoing decline in paper consumption in most developed markets.
North American paper packaging companies account for almost 60% of the rated global industry's operating profit. Operating earnings of North American paper packaging producers are expected to improve as a result of higher pricing, modest demand increases, synergies from recent acquisitions and productivity and expansion projects.
At the same time, the situation will remain challenging for most European paper producers, which are likely to see their operating income decline in 2013 and 2014 due to lower prices consequent to reduced demand for paper. European paper volumes would decline because of persistent euro area macroeconomic weakness and the structural decline in demand for paper.
Similarly, Latin American pulp producers' operating income will decline due to weakening prices for market pulp. In addition, the ramping-up of three significant eucalyptus pulp mills in Brazil and Uruguay will test the global market's ability to absorb a significant spike in supply in the coming 12 to 18 months.
INDIAN PAPER INDUSTRY
The per capita consumption in India stands at only 9.3 kgs as against 42 kgs in China, 22 kgs in Indonesia, 25 kgs in Malaysia and 312 kgs in the US. Indian paper industry is classified into three main segments - paperboard and industrial packaging comprising ~45% of the industry, followed by writing and printing paper (WPP) accounting for ~35% and newsprint and others covering ~20% of the domestic paper production.
It is notable that India, the 15th largest paper manufacturer, is one of the world's fastest growingpaper market; producing however, only ~1.6% of its total output.
India is self sufficient in most paper segments, except for newsprint and higher grades of WPP papers on account of non-availability of superior quality of pulp.
Around 60% of domestic demand for newsprint is met through imports due to inverted duty structure, poor economies of scale and inferior product quality in comparison to international producers.
Long-term demand outlook for the Indian paper industry remains favourable driven by increasing literacy levels, rising income levels, growth in print media (including all the vernacular languages), higher government spending on education sector, changing urban lifestyles, greater thrust on industrialisation, improving demography as well as economic growth. Increased outlays and efficient targeting would lead to a better performance of the WPP segment.
Rising circulation of newspaper/journals/magazines due to higher literacy rate, greater focus of print media companies on regional content and improved demand traction from corporate sector due to higher advertisement spending is likely to help the newsprint segment grow at a higher CAGR up to 2016-17, than the growth of 4.9% during the period 2008-12.
Given that these factors are likely to be sustained, the paper industry is to continue growing at a rate of 6-8% in the medium to long term although there may be aberrant years given the cyclical nature of the industry. In addition, the preparation for general elections will provide further fillip to paper demand in 2013-14, says ICRA in its study on Indian paper industry.
According to the rating agency ICRA, the low per capita consumption of paper provides tremendous potential for growth in paper demand. Further the capacity addition programme in the domestic paper industry has now come to an end and there has been considerable slowdown in new project announcement and completion. With the recent capacity additions coming to completion, any fresh announcements is unlikely in the near term and with gestation period of 24-30 months for new capacities, supply side pressures have started easing. ICRA expects 0.35 million tonnes of capacities to be added during 2013-14 and 0.3 million tonnes in 2014-15 (as against current capacity of 13 million tonnes).
Assuming a moderate growth of 6.4% per annum, the market would expand by 0.7 million tonnes annually which would be sufficient to absorb the new capacities that will come up in the next 2-3 years. The Indian paper industry is expected to grow at a rate of ~6.4% CAGR to 15.5-16 MT up to 2016-17, as compared to a 5.7% CAGR between 2008-12 (Estimated).
However, the favourable demand-supply dynamics may not immediately translate into higher profits for paper companies. The cost for most of the key inputs is currently at a very high level and domestic coal and wood prices are still increasing at a rapid pace. The ability of the companies to pass on these costs will remain the key to profitability. Companies with better cost and capital structures and a diversified portfolio of products would be better placed to endure the pressures in the medium term.
The paper industry reported robust growth in revenues during the financial years 2008-13 driven by steady growth in consumption levels and increase in realisations. This period also saw steady increase in the cost of inputs such as wood, chemicals, coal etc. Over-supply scenario, rising cost pressures and increasing competitive pressures from imports made it increasingly difficult for the paper mills to pass on these cost increases. As a result, the operating profitability of the industry came under pressure in the financial years 2011-12 and 2012-13.
According to ICRA's sample study, the average operating margins of the companies declined from 21.9% in 2007-08 to 15.8% in 2012-13. Though pricing flexibility has improved marginally with an improvement in demand-supply dynamics, in ICRA's view, the profitability of paper mills continues to remain under pressure due to rising costs of raw material, coal and chemicals. Further, high depreciation and interest costs on account of debt funded capital expenditure undertaken by the industry have resulted in pressure on paper companies as reflected by decline in net profitability from 11.3% in 2007-08 to 1.4% in 2012-13.
The funding of capacity expansion projects through bank borrowings led to increase in gearing levels of paper companies from the lows of 2005-06. High gearing levels (in the range of 2-3 times as on March 31, 2012) coupled with decline in profitability has put pressure on the debt coverage indicators of the industry.
It is known fact that Indonesia and China have been continuously expanding their share in Indian market as they enjoy several advantages in their country. Their economies are driven by exports and the Indian paper industry has started feeling the heat from these sources, as well.
In sum, the industry has enormous demand-led opportunities to improve volumes and revenues, while margins are under severe pressure largely due to the external environment and for conditions beyond its control. These are testing times for the economics of the industry.
SIRPUR PAPER - A
PERSPECTIVE
MARKETING AND
DISTRIBUTION
The year opened with unfortunate incidents affecting production, cost increases and power availability affecting production, which impacted marketing efforts. There has been significant increase in key cost elements viz. raw material, coal, power, etc without commensurate increase in the selling price which had an adverse impact on margins. The Company however strived to hold the product quality and customer interface. The severe pressure on raw material availability added to the uncertainties in a highly price sensitive and competitive market.
Yet, it is gratifying that the gross operating revenue was lower only by 8.3% at Rs.3765.200 Millions as compared to Rs.4106.100 Millions in the previous year since the Company made every effort to hold its market and customers.
The Company looks forward to new product development to enter new niche segments so as to improve profitability apart from improving the quality and product mix for existing product lines.
RAW MATERIAL
Due to heavy competition, availability of wood in Andhra Pradesh declined considerably causing demand supply mismatch thereby increasing the cost of wood by about 40%. Costlier wood had to be procured due to low availability of cheaper species of wood. Although the company sourced most of the wood from within the state, some of it was procured from distant places and outside the state which further added to the cost.
The Company continued its efforts in the development of pulp wood plantations in its catchment areas through supply of planting material and technical guidance to the farmers to augment supplies.
MANUFACTURING
Production volume was 83,085 MT as against 99,543 MT achieved in 2011-12. Lower production is due to breakdown of chemical (soda) recovery plant. As a result, entire mill remained shut for about 45 days. Capacity utilisation got seriously affected due to acute shortage of power as Government of Andhra Pradesh imposed severe restriction and control measures for all the industries. Inspite of these setbacks, by process optimization and conservation steps, reduction in the consumption of steam, power and water could be achieved apart from reducing the fibre loss.
Steps are on to further reduce consumption.Preventive maintenance coupled with root cause analysis and rectification works minimised the breakdown of boilers and other equipment increasing the up time of the mill.
OUTLOOK
The Company passed through several challenges during 2012-13, especially breakdown of chemical recovery boiler and restricted availability of power from the state grid, which adversely impacted capacity utilization of the mill. Hike in the prices of raw material, coal and power tariff had a telling effect on the financial performance of the Company.
While steps have been taken to prevent such major breakdowns, the mill is now focusing on improving the profitability, by going in for manufacture of niche paper products. Continuous efforts are ongoing to enhance production volumes and product quality for better customer satisfaction.
Concerted efforts are being made to reduce raw material and chemical consumption and eliminate/ minimize wastages in a bid to improve profitability. Further, despite resource constraints, the Company is exploring possibilities to increase captive power generation. The Company is exploring ways to cope with the severe stress due to shortage of raw material that confronts the industry.
The Indian paper industry is expected to grow at a rate of ~6.4% CAGR to 15.5-16 MT up to 2016-17, as compared to a 5.7% CAGR between 2008-12 (Estimated). Low per capita consumption of paper provides tremendous potential for growth in paper demand. Sirpur Paper shall strive to improve on the industry average.
The paper industry is expected to see firm prices and volume trends over the next 12 months, enabling the manufacturers to improve margins.
Every business carries risks and uncertainties that can affect financial conditions, results of operations and prospects. The Company regularly identifies and assesses the risks associated with its business and correspondingly coordinates optimum resource application to minimise their impact.
STATEMENT OF UNADUDITED FINANCAIL RESULTS FOR THE QUARTER AND NINE
MONTHS ENDED DECEMBER 31, 2013
|
PARTICULARS |
QUARTER ENDED |
NINE MONTHS ENDED |
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
A) PAPER, PAPER BOARD AND PULP (FOR SALE) Production
MT Sales
MT Stock (including process stock) MT |
23,156 21,480 3,290 |
21,236 21,485 1,424 |
24,971 25,001 2,305 |
|
B) Part I |
|||
|
1) Income from Operations |
|
|
|
|
a) Net Sales/Income from Operations (Net of Excise Duty) |
1085.500 |
1006.100 |
3080.800 |
|
b) Other Operating Income |
5.300 |
3.100 |
10.100 |
|
Total Income from operations (net) |
1090.800 |
1009.200 |
3090.900 |
|
2) Expenses |
|
|
|
|
a) Cost of materials consumed |
684.400 |
582.700 |
1800.200 |
|
b) Purchases of stock-in-trade |
-- |
-- |
-- |
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(96.500) |
21.500 |
(92.500) |
|
d) Employee benefits expense |
167.400 |
188.400 |
532.400 |
|
e) Depreciation
and amortization expense |
72.900 |
72.600 |
216.800 |
|
f) Consumption
of stores and spares |
38.100 |
38.200 |
113.600 |
|
g) Power & fuel |
280.600 |
283.900 |
826.900 |
|
h) Other expenditure |
55.200 |
54.100 |
168.900 |
|
Sub-total |
1202.100 |
1241.400 |
3566.300 |
|
(i) Loss on
Assets retired from active use |
-- |
-- |
-- |
|
Total expenses |
1202.100 |
1241.400 |
3566.300 |
|
3) Profit/(Loss)
from Operations before Other Income, finance costs and Exceptional items
(1-2) |
(111.300) |
(232.200) |
(475.400) |
|
4) Other Income |
0.100 |
5.800 |
6.300 |
|
5) Profit/(Loss)
from ordinary activities before finance costs (3+4) |
(111.200) |
(226.400) |
(469.100) |
|
6) Finance costs (net) |
108.300 |
103.500 |
311.400 |
|
7) Profit/(Loss)
from ordinary activities after finance costs but before FSA ( 5-6) |
(219.500) |
(329.900) |
(780.500) |
|
8) Fuel
Surcharge Adjustments(FSA) for previous years |
-- |
-- |
-- |
|
9) Profit
/(Loss) from Ordinary Activities before Exceptional Items (7-8) |
(219.500) |
(329.900) |
(780.500) |
|
10) Exceptional Items |
-- |
-- |
-- |
|
11)
Profit/(Loss) from Ordinary Activities before Tax(9-10) |
(219.500) |
(329.900) |
(780.500) |
|
12) Tax Expense |
-- |
-- |
-- |
|
13) Net Profit /
(Loss) from Ordinary Activities after Tax (11-12) |
(219.500) |
(329.900) |
(780.500) |
|
14)
Extraordinary Items (Net of Tax Expense ) |
-- |
-- |
-- |
|
15) Net Profit
/(Loss) for the period (13-14) |
(219.500) |
(329.900) |
(780.500) |
|
16) Paid up Ordinary
Share Capital Face value of Rs. 10/- each |
169.900 |
169.900 |
169.900 |
|
17) Reserves
excluding Revaluation Reserves as per Balance Sheet of previous accounting
year |
-- |
-- |
-- |
|
18) Earning per Share (EPS) |
|
|
|
|
Basic and Diluted
EPS (not annualized) Rs. |
(12.92) |
(19.42) |
(45.94) |
|
|
|
|
|
|
Part II |
|||
|
a PARTICULARS OF SHAREHOLDING |
|
|
|
|
1) Public Shareholding |
|
|
|
|
- Number of Shares |
8,507,526 |
8,507,526 |
8,507,526 |
|
- Percentage of Shareholding |
50.09% |
50.09% |
50.09% |
|
2) Promoters and
promoter group Shareholding |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
- Number of shares |
6,794,297 |
6,794,297 |
6,794,297 |
|
Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
80.15% |
80.15% |
80.15% |
|
- Percentage of
shares (as a % of the total share capital of the company) |
40.00% |
40.00% |
40.00% |
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
1,683,177 |
1,683,177 |
1,683,177 |
|
- Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
19.85% |
19.85% |
19.85% |
|
- Percentage of
shares (as a % of the total share capital of the company) |
9.91% |
9.91% |
9.91% |
|
|
|
|
|
|
B INVESTORS'
COMPLAINTS Number of
Investors' complaints for the quarter ended 31st December, 2013: Opening - Nil; Received -Nil; Disposed Off
- Nil and Pending - Nil. |
|||
NOTES :
1 The Company is in the business of manufacture and sale of pulp, paper and paper boards. Management views manufacture and sale of pulp, paper and paper boards as a single reportable business segment.
2 Workers agreement has expired on March 31, 2013 and new agreement is yet to be concluded.
3 As at December 31, 2013, the accumulated losses amounted to Rs.1906.800 Millions has eroded the net worth of the company. In the FY 2012-13, the company was sanctioned a restructuring package by the lenders under the Corporate Debt Restructuring (CDR) mechanism and has the continuous support of the Promoters. It has put in place measures for revival and cost reduction, which in the opinion of the Management would enable the Company to generate sufficient profits in the foreseeable future.
4 The above unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meeting held on February 13, 2014.
5 The Statutory Auditors of the Company have carried out the limited review of the above results in terms of Clause 41 of the listing agreement.
6 Corresponding figures for earlier periods have been regrouped to conform with those of current period.
CONTINGENT
LIABILITIES:
i. Claims/demands under dispute not provided for
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Claims/demands
under dispute |
|
|
|
Income tax |
7.533 |
18.226 |
|
Excise duty etc. |
60.951 |
53.370 |
|
Value added tax |
32.456 |
32.348 |
|
Demand from Government of Andhra Pradesh * |
220.167 |
220.167 |
|
State levies |
94.177 |
162.025 |
|
Labour related cases |
35.132 |
35.131 |
|
Suppliers and service contracts |
76.854 |
69.547 |
* Includes interest demand of Rs.122.552 Millions from the Forest Department, Government of Andhra Pradesh on delayed payment of differential royalty which had been levied for the period 1980-81 to 1984-85. The Company has contested this demand in the Hon'ble High Court of Andhra Pradesh and in terms of the Order of the Court, a sum of Rs.10.000 Millions has been deposited and a corporate guarantee has been given for the balance amount. Based on the legal opinion, the management is hopeful of a decision in its favour and consequently, no provision has been made in the financial statement for the above mentioned demand.
ii. Show cause notices were issued by Central Excise Department claiming full rate of duty on clearance of paper and paper board at concessional rate during the period from September 1994 to September 1999. The amount involved, as per show cause notices, is Rs.180.800 Millions. The case was adjudicated by the Commissioner of Customs and Central Excise in Company's favour in July 2005 dropping all the proceedings, interest, penalty and duty. However, the Department has gone on an appeal to CESTAT against the order of the Commissioner. Pending the final outcome of the petition, no provision has been made.
iii. Government of Andhra Pradesh had levied electricity duty on power generated and consumed for captive use with effect from July 17, 2003 @ Rs.0.25 paise per unit of power generated. The Company had filed a writ petition against the said levy in the Hon'ble High Court of Andhra Pradesh which had granted a stay. Pending the final outcome of the petition, no provision has been made.
iv. Northern Power Distribution Company Limited of Andhra Pradesh (NPDCL) has raised a demand for Rs.91.334 Millions towards back billing alleging non-segregation of lights and fans load for the period 2007 to 2012. On a petition filed by the Company, the Hon'ble High Court of Andhra Pradesh has granted interim suspension of the demand and observed that the Company has already deposited Rs.10.000 Millions which covers the billing for 12 months maximum permissible under the circumstances. Pending the final outcome of the petition, no provision has been made.
FIXED ASSETS
v
TANGIBLE
ASSETS
Freehold
land
Buildings
Plant
and machinery
Furniture
and fixtures
Vehicles
Office
equipment
Railway
sidings
v
INTANGIBLE ASSETS
Software
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.62.12 |
|
|
1 |
Rs.103.38 |
|
Euro |
1 |
Rs.85.32 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
17 |
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.