MIRA
INFORM REPORT
|
Report Date : |
27.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
INTERNATIONAL PAPER APPM LIMITED (w.e.f. 21.01.2014) |
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Formerly Known
as : |
THE ANDHRA PRADESH PAPER MILLS LIMITED |
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Registered
Office : |
Rajahmundry, East Godavari District Hyderabad – 533105, Andhra Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
29.06.1964 |
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Com. Reg. No.: |
01-001008 |
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Capital Investment
/ Paid-up Capital : |
Rs. 397.700 Millions |
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CIN No.: [Company Identification
No.] |
L21010AP1964PLC001008 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
VPNT00325D / VPNT00329A / HYDI02505G |
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PAN No.: [Permanent Account No.] |
AAACT8849B / AAACT8849D / AABCI1749Q |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacture and sale of pulp, paper and paper board. |
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No. of Employees
: |
2405 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 18300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary of IP HOLDING ASIA SINGAPORE PTE. LIMITED,
Singapore. It is an established company having satisfactory track record. The company has incurred losses from its operational activities during
the financial year 2013. However, the rating reflects the company’s long-standing track record
in the Indian paper industry characterized by a diversified product-mix and
sound general financial risk profile. The rating also reflects financial and
managerial support that company receives from its parent company. Trade relations are fair. Business is active. Payment terms are
recorded as usually correct. In view of strong holding support, the company can be considered 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 – 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 |
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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
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product from
$31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in exports
and moderation in gold imports. Manufacturing activity and new orders in India
showed their strongest growth in a year in February. The news comes as a relief
after data showed Asia’s third largest economy grew by a slower-than-expected
4.7 % annually in the three months through December. The HSBC Manufacturing
Purchasing Managers’ Index which gauges the business activity of India’s
factories but not its’ utilities, rose to 52.5 in February, its highest in a
year from 51.4 in January. Overall new orders for factory goods which rose to a
one-year high of 54.9 contributed to the surge. China has emerged as India’s
biggest trading partner in the current financial year replacing the United Arab
Emirates and pushing it to the third spot. India-China trade has reached $49.5
billion with a 8.7 % share in India’s total trade. The US comes second at $46
billion with 8.1 % share during the first nine months of the current financial
year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term banking facilities: AA (SO) |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
October 8, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term banking facilities: A1+ (SO) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
October 8, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non Co-operative
Contact No.: 91-883-2471831
LOCATIONS
|
Registered Office/ Factory 1 : |
Rajahmundry, East Godavari District Hyderabad – 533105, Andhra
Pradesh, India |
|
Tel. No.: |
91-883-2471831 to 2471838 |
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Fax No.: |
91-883-2461764 / 3013000 |
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E-Mail : |
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Website : |
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Corporate Office : |
Krishe Sapphire Building,
8th Floor,1-89/3/B40 to 42/KS/801, Hi-tech City Main Road, Madhapur,
Hyderabad - 500 081, Andhra Pradesh, India |
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Tel. No.: |
91-40-33121000 |
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Factory 2 : |
Industrial Area,
MR Palem – 533126, Kadiyam Mandalam, East, Godavari District, Andhra Pradesh,
India |
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Tel. No.: |
91-883-2454651 |
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Fax No.: |
91-883-2453538 |
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E-Mail : |
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Factory 3 : |
Paper Cut to Size Unit Adj Hanuman Co-operative Sugar Mills Serinarasannapalem, Bapulapadu Mandal, Veeravalli – 521105, Krishna District, Andhra Pradesh, India |
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Tel. No.: |
91-8656-244653 / 242153 |
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Branches / Regional Offices : |
Located at ·
Haryana ·
Kolkata ·
Chennai ·
Mumbai ·
Bangalore ·
Karnataka ·
Kerala |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Thomas G. Kadien |
|
Designation : |
Director |
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|
Name : |
Mr. M.S. Ramachandran |
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Designation : |
Director |
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|
Name : |
Mrs. Ranjana Kumar |
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Designation : |
Director |
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|
Name : |
Mr. M.K. Sharma |
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Designation : |
Director |
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|
Name : |
Mr. Milind Sarwate |
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Designation : |
Director |
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|
Name : |
Mr. Adhiraj Sarin |
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Designation : |
Director |
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Name : |
Mr. W. Michael Amick Jr. |
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Designation : |
Director |
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Name : |
Mr. Rampraveen Swaminathan |
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Designation : |
Managing Director and CEO |
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|
Name : |
Mr. Kenneth P. Huelskamp |
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Designation : |
Director |
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|
Name : |
Mr. Michael Baymiller |
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Designation : |
Director |
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Name : |
Mr.
Praveen P Kadle |
|
Designation : |
Director |
KEY EXECUTIVES
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|
Name : |
Mr. Cherukumudi Prabhakar |
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Designation : |
Company Secretary |
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Name : |
Mr. Jaspal Singh |
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Designation : |
Senior Vice President (Marketing) |
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Name : |
Mr. Atanu Chakrabarti |
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Designation : |
Vice President (Supply Chain) |
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Name : |
Mr. Pamidimukkala Sreenivas |
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Designation : |
Chief Information Officer |
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Name : |
Mr. Viyyapu Srinivasa Rao |
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Designation : |
Associate Vice President (HR) |
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Name : |
Mr. Joseph Vinod Kumar Kammara |
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Designation : |
General Manager (Legal) |
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Name : |
Mr. V.V.B. Vasantharao |
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Designation : |
Senior Vice President (Operations) and Mill Manager |
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Name : |
Ms. Jayashree Satagopan |
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Designation : |
Chief Financial Officer |
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Name : |
Ms. Seema Nallani |
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Designation : |
General Manager (Corporate Social Responsibility) |
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Name : |
Mr. Deepak Khare |
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Designation : |
Forestry |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
29827529 |
75.00 |
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|
29827529 |
75.00 |
|
Total
shareholding of Promoter and Promoter Group (A) |
29827529 |
75.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
127825 |
0.32 |
|
|
34510 |
0.09 |
|
|
1191053 |
2.99 |
|
|
609512 |
1.53 |
|
|
200 |
0.00 |
|
|
200 |
0.00 |
|
|
1963100 |
4.94 |
|
|
|
|
|
|
3744363 |
9.42 |
|
|
|
|
|
|
2452398 |
6.17 |
|
|
1716326 |
4.32 |
|
|
66323 |
0.17 |
|
|
19332 |
0.05 |
|
|
10107 |
0.03 |
|
|
36884 |
0.09 |
|
|
7979410 |
20.06 |
|
Total Public
shareholding (B) |
9942510 |
25.00 |
|
Total (A)+(B) |
39770039 |
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) |
39770039 |
0.00 |
(1) Indian
Bodies Corporate
Foreign Bank
BUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of pulp, paper and paper board. |
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Products : |
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PRODUCTION STATUS AS ON (31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Pulp, Paper and Board* |
MT |
232189 |
187233 |
|
Generation of electricity** |
MW |
62.94 |
3192.44 Kwh Lakhs |
|
Generation of steam |
TPH |
573 |
2402712 MT |
* Represents
finished production of 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 4,733 MT (Previous year:
24,705 MT) meant
for external sales.
** Total
generation of steam is for internal consumption. Generation of electricity is for
internal consumption with surplus units sold to APTRANSCO.
Notes:
i. Licensed
capacity not applicable in terms of Government of India's notification.
ii. Installed
capacities are as certified by the Managing Director and CEO and have not been
verified by the auditors as this is a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
2405 (Approximately) |
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Bankers : |
·
State Bank of India ·
Canara Bank ·
Axis Bank Limited ·
Citibank N.A. ·
BNP Paribas ·
Bank of America N.A. ·
JPMorgan Chase Bank N.A. |
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Facilities : |
Note: Long-term borrowings These term loans from banks are repayable as
under: Term Loan I:
Rs.88.833 Millions (December 31, 2011 – Rs.99.316 Millions) repayable in
seven half-yearly installments of Rs.12.691 Millions each. Term Loan II: Rs.
Nil (December 31, 2011 – Rs.658.166 Millions) repayable in 16 equal quarterly
installments. The entire amount has been re-paid during the current financial
period. Term Loan III: Rs.159.930 Millions (December 31, 2011 – Rs.319.999
Millions) repayable in two annual installments of Rs.79.965 Millions. Term
Loan IV: Rs.723.333 Millions (December 31, 2011 – Rs.1156.667 Millions)
repayable in two quarterly installments of Rs.50.000 Millions each and
seventeen quarterly installments of Rs.36.667 Millions each. Term Loan V:
Rs.129.375 Millions (December 31, 2011 – Rs.190.000 Millions) repayable in
fifteen quarterly installments of Rs.86.25 each. Term loans from other parties Term loans from
other parties represents term loans availed from Foreign Financial
Institutions, aggregating Rs.574.569 Millions Term loans from other parties
(December 31, 2011 –Rs.942.703 Millions Term loans from other parties) is
availed at six month libor plus 250 basis points. These term loans are
repayable asunder: Term Loan I:
Rs.506.767 Millions Term loans from other parties (December 31, 2011 –
Rs.74.354 Millions Term loans from other parties Term loans from other
parties) repayable in four semiannually installments of Rs.1, 26.692 Millions
each. Term Loan II: Rs.67.863 Millions Term loans from other parties
(December 31, 2011 – Rs.199.163 Millions Term loans from other parties). The
amount of RsRs.67.863 Millions is repayable within one year. The Company is
in the process of creating exclusive first charge on specific moveable fixed
assets of the Company in respect of Term Loan V for Rs.129.375 Millions
(December 31, 2011 – Rs.190.000 Millions). Short-term borrowings Loans repayable
on demand from banks The Company has
availed working capital demand loans/cash credit facilities/buyers credit
from certain banks, at interest rates ranging from 9% to 13% during the year.
The outstanding as at the Balance Sheet date aggregates Rs.5, 17.773
(December 31, 2011 Rs.266.508 Millions). These are secured by hypothecation
of current assets along with second charge on the fixed assets of the Company
situated at Rajahmundry, Kadiyam and Serinarasannapalem and a Letter of
Comfort from International Paper Company, USA, and the ultimate holding
company. |
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Banking
Relations : |
|
|
|
|
|
Auditors 1 : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
Address : |
Hyderabad, Andhra Pradesh, India |
|
|
|
|
Auditors 2: |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address: |
Hyderabad, Andhra Pradesh, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Narasimha Murthy and Company Chartered Accountants |
|
Address : |
Hyderabad, Andhra Pradesh, India |
|
|
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|
Ultimate holding company: |
International Paper Company, USA |
|
|
|
|
Holding company: |
IP Holding Asia Singapore PTE. Limited, Singapore |
|
|
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|
Enterprises where principal shareholders have control: |
·
Samay Books Limited (Up to October 14, 2011) ·
The Peria Karamalai Tea and Produce Company
Limited (up to October 14, 2011) |
|
|
|
|
Fellow subsidiaries where transactions exists : |
·
IP Paper (India) Private Limited ·
International Paper Inc. TN USA ·
International Paper Procurement (Shanghai)
Limited ·
MB Commercial Company Limited (up to October 14,
2011) ·
Swadeshi Commercial Company Limited (up to
October 14, 2011) |
|
|
|
|
Entity where the Company is in a position to exercise control : |
The Employees Provident Fund of APPM Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
500000 |
Redeemable cumulative preference shares |
Rs.100/- each |
Rs. 50.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 450.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
39770039 |
Equity Shares |
Rs.10/- each |
Rs. 397.700
Millions |
|
|
|
|
|
Notes:
Reconciliation of the number of equity shares and amount outstanding at
the beginning and at the end of the period
|
Particulars |
Number of Shares
|
Rs. In Millions 31.03.2013 |
|
As at beginning of the period |
39770039 |
397.700 |
|
Changes during the period |
-- |
-- |
|
As at end of the period |
39770039 |
397.700 |
Rights, preferences
and restrictions attached to the equity shares
The Company has
only one class of issued, subscribed and paid up equity shares having a par
value of Rs.10each per share. Each holder of equity shares is entitled to one
vote per share. 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 number of
equity shares held by the shareholders.
Equity shares held by the holding company
|
Name of the
shareholder |
Number of Shares
|
|
IP Holding Asia Singapore Pte. Limited# |
29827529 |
|
# The ultimate holding company is International Paper Company, USA. |
|
Details of shares held by each shareholder holding more than 5% of the
aggregate shares in the Company
|
Name of the Shareholder |
Number of Shares
|
Percentage
Holding |
|
IP Holding Asia Singapore Pte. Limited |
29827529 |
75.00 |
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.12.2011 |
31.03.2011 |
|
|
(15 Months) |
(9 Months) |
(12 Months) |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
397.700 |
397.700 |
397.700 |
|
(b) Reserves & Surplus |
4170.428 |
4407.451 |
5385.573 |
|
(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) |
4568.128 |
4805.151 |
5783.273 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3218.435 |
3520.954 |
2662.920 |
|
(b) Deferred tax liabilities
(Net) |
1243.163 |
1216.670 |
427.125 |
|
(c) Other long term
liabilities |
9.894 |
25.423 |
0.000 |
|
(d) long-term provisions |
1.851 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
4473.343 |
4763.047 |
3090.045 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
548.053 |
327.958 |
228.728 |
|
(b) Trade payables |
1070.581 |
1222.738 |
854.287 |
|
(c) Other current liabilities |
1415.540 |
1436.501 |
2013.075 |
|
(d) Short-term provisions |
0.000 |
17.660 |
46.222 |
|
Total
Current Liabilities (4) |
3034.174 |
3004.857 |
3142.312 |
|
|
|
|
|
|
TOTAL |
12075.645 |
12573.055 |
12015.630 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
8162.156 |
8064.807 |
8582.768 |
|
(ii) Intangible Assets |
46.566 |
1.252 |
0.000 |
|
(iii) Capital work-in-progress |
223.718 |
612.136 |
300.949 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
160.264 |
160.534 |
166.434 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
870.073 |
552.967 |
564.574 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
9462.777 |
9391.696 |
9614.725 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1447.931 |
2119.177 |
1210.685 |
|
(c) Trade receivables |
455.788 |
352.595 |
562.936 |
|
(d) Cash and cash equivalents |
165.640 |
241.541 |
206.809 |
|
(e) Short-term loans and
advances |
533.867 |
452.411 |
420.475 |
|
(f) Other current assets |
9.642 |
15.635 |
0.000 |
|
Total
Current Assets |
2612.868 |
3181.359 |
2400.905 |
|
|
|
|
|
|
TOTAL |
12075.645 |
12573.055 |
12015.630 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 (15 Months) |
31.12.2011 (9 Months) |
31.03.2011 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12305.035 |
5952.276 |
7818.127 |
|
|
|
Other Income |
231.126 |
63.749 |
168.081 |
|
|
|
TOTAL |
12536.161 |
6016.025 |
7986.208 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3764.935 |
1929.214 |
2010.430 |
|
|
|
Purchase stock in trade |
60.235 |
7.674 |
0.000 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
794.958 |
(822.210) |
138.599 |
|
|
|
Manufacturing expenses |
0.000 |
0.000 |
2833.028 |
|
|
|
Employee benefits expense |
1123.385 |
656.608 |
797.624 |
|
|
|
Other expenses |
5404.981 |
3509.117 |
559.378 |
|
|
|
Loss on discarded assets |
0.000 |
0.000 |
7.774 |
|
|
|
TOTAL |
11148.494 |
5280.403 |
6346.833 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1387.667 |
735.622 |
1639.375 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
553.625 |
361.034 |
398.843 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
834.042 |
374.588 |
1240.532 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
879.372 |
506.213 |
669.672 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX, EXCEPRIONAL ITEMS |
(45.330) |
(131.625) |
570.860 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPRIONAL
ITEMS |
161.932 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE TAX |
(207.262) |
(131.625) |
570.860 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
29.761 |
846.497 |
121.438 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) AFTER TAX |
(237.023) |
(978.122) |
449.422 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
603.100 |
699.900 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
500.000 |
|
|
|
Proposed equity dividend |
NA |
NA |
39.800 |
|
|
|
Corporate tax on dividend |
NA |
NA |
6.500 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
603.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on FOB basis |
1174.759 |
213.932 |
447.479 |
|
|
TOTAL EARNINGS |
1174.759 |
213.932 |
447.479 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
527.584 |
339.551 |
281.272 |
|
|
|
Stores & Spares |
421.895 |
170.842 |
216.925 |
|
|
|
Capital Goods |
121.652 |
64.379 |
64.721 |
|
|
|
Others |
2.130 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
1073.261 |
574.772 |
562.918 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(5.96) |
(24.59) |
12.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
|
1st Quarter |
2nd
Quarter |
3rd
Quarter |
|
|
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
2591.300 |
2476.600 |
3025.500 |
|
Total Expenditure |
2208.400 |
2810.600 |
2842.000 |
|
PBIDT (Excl OI) |
382.900 |
(334.000) |
183.600 |
|
Other Income |
11.200 |
25.400 |
10.200 |
|
Operating Profit |
394.100 |
(308.600) |
193.700 |
|
Interest |
90.100 |
102.600 |
124.200 |
|
Exceptional Items |
0.00 |
0.000 |
0.000 |
|
PBDT |
304.100 |
(411.200) |
69.500 |
|
Depreciation |
187.200 |
254.500 |
216.900 |
|
Profit Before Tax |
116.900 |
(665.700) |
(147.400) |
|
Tax |
35.600 |
(215.200) |
(68.500) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
81.300 |
(450.500) |
(78.900) |
|
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 |
81.300 |
(450.500) |
(78.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 (15 Months) |
31.12.2011 (9 Months) |
31.03.2011 (12 Months) |
|
PAT / Total Income |
(%) |
(1.89)
|
(16.26)
|
5.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.68)
|
(2.21)
|
7.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.77)
|
(1.12)
|
4.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.05)
|
(0.03)
|
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.82
|
0.80
|
0.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86
|
1.06
|
0.76 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.12.2011 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
397.700 |
397.7 |
397.700 |
|
Reserves & Surplus |
5385.573 |
4407.451 |
4170.428 |
|
Net
worth |
5,783.273 |
4,805.151 |
4,568.128 |
|
|
|
|
|
|
long-term borrowings |
2,662.920 |
3,520.954 |
3218.435 |
|
Short term borrowings |
228.728 |
327.958 |
548.053 |
|
Total
borrowings |
2,891.648 |
3,848.912 |
3,766.488 |
|
Debt/Equity
ratio |
0.500 |
0.801 |
0.825 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.12.2011 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
7,818.127 |
5,952.276 |
12,305.035 |
|
|
|
(23.866) |
106.728 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.12.2011 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
7,818.127 |
5,952.276 |
12,305.035 |
|
Profit After Tax |
449.422 |
(978.122) |
(237.023) |
|
|
5.75% |
(16.43%) |
(1.93%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---- |
|
26] |
Buyer visit details |
---- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
No |
|
30] |
Major Shareholders, if
available |
No |
|
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 |
FINANCIAL RESULTS
CHANGE IN THE
FINANCIAL YEAR
In order to have
uniform financial year under various legislations, the Company has decided to change
the financial year from January-December to April-March. Accordingly, current
annual accounts and this Report of the Company are for a period of 15 months
from January 1, 2012 to March 31, 2013. Therefore, the figures for the current
period are not comparable with those of the 9 month period ended December 31,
2011.
PERFORMANCE OF THE
COMPANY
The Company
adopted 5 strategic principles viz.
a. Become the low
cost producer
b. Customer
support excellence
c. World class
operations and focus on safety, environment and productivity
d. Expand in
printing and writing segments and
e. Create a
performance culture. During the 15 month period ended March 31, 2013 the
Company recorded:
a. paper
production of 258,201 MT as against 160,565MT for the previous 9 month period
ended December 31, 2011;
b. Revenue of Rs.12305.000 Milions from net sale of paper as against
Rs.5952.300 Milions for the previous 9 month period ended December 31, 2011;
c. sales of 279,093 MT as compared to 1,39,786 MT. The Company managed
to get a better Net Sales Realization per MT over the previous year due to
upward price revisions across all grades and a change in the product mix;
d. Export volume of 37,819 MT as against 15,283 MT. Volume growth of
147% in exports accompanied by a sharp increase in prices improved net
realization per MT;
e. EBIDTA of Rs.1387.700 Milions as against Rs.735.600 Milions
f. A loss of Rs.237.000 Milions in view of outage, abnormal increase in
fibre cost, certain exceptional items and increase in legal and professional
charges. The outage incurred at a cost of `35 crore, had a nun favourable
impact on shipment of 13,000 MT. However, the outage completed without any LIFE
incident resulted in increase in bleached pulp production and stabilization of
power and paper machine performance.
NEW PROJECTS
During the financial year under review, the Company had commissioned
various maintenance and up gradation projects for sustaining production levels
with quality as well as regulatory projects for meeting regulatory norms and
strategic projects as part of business strategy in Units: Rajahmundry and
Kadiyam.
AWARDS/CERTIFICATIONS
The Company
received second prize in appreciation of the achievements in Energy
Conservation in Large Scale Industry Sector for the year 2011-12 from the
Government of Andhra Pradesh.
The Company was
also awarded the '2013 Award for Outstanding Rural Development' at the World
CSR Congress in Mumbai. This award is in global recognition of Company's efforts
in the areas of Social Development. The 2013 award recognizes the integrated
CSR efforts undertaken by the Company in rural areas, combining farm forestry
programs and social enrichment programs such as the Mamidilova Check Dam. The
award was titled 'Corporate Social Responsibility -Rural Development' for
improving the livelihood of farmers in the Mamidilova village.
The Company also
received Forest Stewardship Council Certification (FSC), in respect of Unit:
Kadiyam covering the production of paper using transfer and credit systems and
sourcing of reclaimed material.
RAW MATERIAL
PROCUREMENT
RAW MATERIAL
PROCUREMENT
The Company concentrated its efforts to procure pulpwood from South
India with focus on State of Andhra Pradesh for meeting its entire requirement
despite unprecedented competition from other paper manufacturers in this area.
During the year,161.30 million quality saplings were distributed
covering an area of 26,134 hectares under plantation against development and
distribution of 120.70 million seedlings covering an extent of 16,823 hectares
during the previous 2011 planting year. Research on clonal development has
resulted in introduction of high yielding, disease resistant clones and
versatile to a wide variety of agro-climatic conditions in inland and coastal
areas. Research and Development initiatives with low cost planting techniques,
quality seed material and high yielding, short rotation planting stock have
enhanced raw material availability spread over more than 158,891 hectares.
These benefits are extended to around 48,718 families creating employment
resource pool of 79 million man-days especially in rural areas so far. Specific
projects for infrastructure development and to provide better facilities in
wood procurement areas were undertaken.
RAW MATERIALS
The paper industry requires a sustainable supply of wood to survive and
flourish. Wood accounts for approximately30% of the cost of production. Any
threat in supplies would adversely affect the survival of the paper industry .At APPM, the
availability of raw material is given foremost priority. Every possible effort
is made to encourage landowners in the vicinity of the mill to grow more than
twice the number of trees than are required. They are also counseled on
nurturing the trees so that availability is guaranteed.
Subabul and
caesarian are the two varieties majorly used by APPM as raw materials for paper
production. Both are natural resources, and therefore not taken for granted.
The quality of products and customers' acceptance depends on the quality of raw
materials and APPM's ability to deliver in a timely manner and it is imperative
that availability is ensured, in the required quantities, of the specified
quality/standard/specification for uninterrupted production processes. The risk
is being mitigated by encouraging environment friendly farm forestry practices
and assisting land owners to cultivate trees on fallow wastelands. For over two
decades now, APPM has catalyzed the generation of raw materials in its catchment
area through farm/social forestry. The Company ensures conservation and
regeneration of natural resources, helps farmer’s to create sustainable income
streams and in the process, protects adequate availability of quality raw
materials for paper manufacture. These arrangements have been working
satisfactorily in the past and APPM has been procuring the required raw
material in sufficient quantities at competitive rates. The Company endeavors
to ensure raw material security while enabling the farmers to avail
remunerative prices, thus creating a sustainable future.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL SCENARIO
There is a
paradigm shift in the global paper and paperboard industry, with Asia
continuing to grow faster than the rest of the world. This trend is expected to
continuein 2013, with developing countries expected to grow by6%. More
significantly, China and India are expected to outpace and report higher than
the regional average. Developed countries are expected to report a flat demand
growth, as against a 2% decline that they saw in the past two years. India is
likely to be one of the fastest rising markets at an estimated 6.5% growth.
Overall, paper demand is unevenly distributed as 72%of the world's paper is
consumed by 22% of the world’s population - in the US, Europe and Japan. The
world demand for the material is expected to grow by around3% annually,
reaching an estimated 490 million tons by2020, with significant growth coming
out of Asia and Eastern Europe. The demographic trends and market dynamics are
influencing several salutary actions in the industry worldwide, with emphasis
on the following areas:
● New, state-of-the-art facilities to replace
older mills;
● Focus on newer technology, efficiency
improvements, cost reduction and cleaner production processes;
● Adoption of sustainability concerns as part
of the core operating principles;
● Development and implementation of best
practices in forest management;
● Initiatives to conserve forests and reduce
greenhouse gas (GHG) emissions;
● Greater reliance on renewable resources,
especially to increase plantations;
● Improvement in balance between paper demand
and capacity; and,
● Increase in investment in research and
development.
Industry experts
believe that the 3600 enhancement across all aspects of the industry with
special focus on newer technology, cost effectiveness and sustainability during
a period of rising global demand will improve the customer interface while
increasing the return on investment for manufacturers. Indeed, the industry is
better placed to attract resources such as the United Nations Program on
reducing emissions from deforestation and forest degradation and other carbon
mitigation initiatives. The industry is acknowledged to be a responsible
steward of forest resources, while such efforts have significantly added to the
raw material security of the paper manufacturers. Worldwide, the industry has
reduced its dependence on fossil fuels, conserved on energy consumption and
cost, lowered water consumption, improved on air purity and is increasingly
becoming non-CO2 intensive.
INDIAN PAPER
INDUSTRY
Indian paper
industry accounts for about 3% of the world’s paper and paperboard production
even though the country has nearly 17% of the global population. The per capita
consumption in the country is estimated at 9.18kgs compared with 42 kgs in
China, 350 kgs in developed countries and with global average at a healthy 58
kgs, implying a large scope for correction. Over the years, aspiration levels
of the growing middleclass, improving standards of living, better educational
opportunities and governmental support are some of the prime reasons for the
rising trend in consumption. This trend is expected to continue. It is
estimated that an increase in consumption by one kg per capita can potentially
increase annual paper demand by a million tons.
Historically, the
industry is more than 140 years old with the first mill having been
commissioned in 1867. There are, at present, about 800 units engaged in the
manufacture of paper and paperboards and newsprint in India. The country is
almost self-sufficient in manufacture of most varieties of paper and
paperboards. Import, however, is confined only to certain specialty papers.
Over the years, in line with the improvement in the wellbeing of people and
rising literacy and aspiration levels, paper usage has increased. The estimated
turnover of the industry is Rs.3500.000 Milions approximately and the industry
provides employment to more than 370,000people directly and 1,300,000 indirectly.
Paper sector is dominated by small and medium size units; number of mills of
capacity 50,000 MT per an numor more is not more than 25. Less than half a
dozen mills account for almost 90% production of newsprint in the country. The
industry was de licensed in July 1997 by the Government of India, which enabled
foreign participation and investment in the domestic industry. Most of the
paper mills have been in existence for a long time and hence present
technologies fall in a wide spectrum ranging from oldest to the most modern.
Today almost every person uses paper in one form or the other.
The industry has
responded to the growth in demand and the installed capacity in India has risen
from0.137 million MT per annum in 1951 to the approximately10.1 million MT.
This includes capacity expansion of approximately 2.5 million MT in the recent
past. A brief analysis of the industry structure reveals that W&Ppaper
capacity is 3.5 million MT, of which 85% constitutes uncoated paper and the
balance being coated varieties. The uncoated varieties comprise of cream wove
(46%),maplitho (23%) and copier papers (16%).Out of the 10.1 million MT
capacity referred above, paperboard (packaging paper) accounts for 5 million
MT. In the industrial paper & paperboard category, 58% of the products such
as kraft paper are used in tertiary packaging and the remaining 42% constitute
consumer packaging. Of the total industry cake, newsprint accounts for
1.9million MT capacity and specialty paper holds the balance0.6 million MT.In
effect, industrial paper constitutes 45.5% and W&P makes up another 32%.
Newsprint accounts for 17% and the balance capacity is in the specialty paper
category. Overall, the industry is working to 84% capacity utilization. The
industry is further categorized on the basis of raw material used for
manufacturing paper into forest-based(with a share of 21%), agro-based (23%)
and recycled fiber-based paper (56%).The mills use a variety of raw material
viz. wood, bamboo, recycled fibre, bagasse, wheat straw, rice husk, etc.
Approximately 35% are based on chemical pulp, 44% on recycled fibre and 21% on
agro-residues. There is a growing need to modernize the Indian mills, improve
productivity and build new capacities. Indian paper industry is capital, energy
and water intensive, highly fragmented and has sub-optimal economies of scale
due to use of obsolete technology.
There is, however,
a perceptible transformation in the industry. Medium and larger domestic
producer’s have been focusing on reducing cost of product and improving quality
of finished product. Some of the initiatives taken by them include increasing
the size of machines with high speed features, upgrading to new machine
technology and increasing farm plantation activities. The Indian paper industry
is the world's fastest growing paper market. The paper industry performance is
highly correlated with the macro economic trends and is often demonstrated by
an analogous directional move. Over the years, the beta between the growth
trends of GDP and paper industry is nearly one. During the same 5 year period
referred above, paper industry demand has grown at an average 0.9x multiple of
GDP.
CORPORATE
INFORMATION
Subject
("APPM"/"the Company") is an integrated pulp and paper
manufacturer.
APPM was
incorporated on June 29, 1964 in pursuance of an agreement dated May 13, 1964
between Government of Andhra Pradesh (GoAP) and Mr. G.D. Somani. By an
agreement dated February 10, 1966, Mr. G .D Somani transferred all his rights,
powers and authorities contained in the Agreement dated May 13, 1964 in favour
of The West Coast Paper Mills Limited (WCPM). By an agreement dated April 16,
1981, WCPM assigned to Digvijay Investments Limited (DIL) all its rights and
obligations under the agreement dated February 10, 1966.Consequent upon
disinvestment of its entire shareholding in favour of DIL in December, 2003,
GoAP and DIL agreed by an agreement dated December 12, 2003 that all subsisting
rights and obligations of GoAP and DIL arising out of the above agreements
dated February 10, 1966 and April 16, 1981 stand terminated with effect from
December 18, 2003. In October 2011, IP Holding Asia Singapore Pte. Limited has
acquired controlling stake of75% of paid up share capital in the Company from
the then promoters and public shareholders. Pursuant to such acquisition, IP
Holding Asia Singapore Pte Limited, became the holding company of The Andhra
Pradesh Paper Mills Limited and International Paper Company, USA, being the
ultimate holding company. The Company owns and operates two manufacturing units
located in the State of Andhra Pradesh, India, one at Rajahmundry and the other
at Kadiyam in East Godavari District.
PERFORMANCE REVIEW
Finished paper
production for the 15-month period ending March 2013 was 258,202 MT as compared
to 160,667MT in the 9-month financial year ending December 2011.Unbleached pulp
production was 217,632 MT during the reporting period as compared to 139,876 MT
in the previous financial year. Paper sales were 279,093 MT comprising 241,334
MT in the domestic market and 37,819 MT as export sales. In 2011, in
comparison, domestic paper sales were124,503 MT while export sales were 15,283
MT. Gross domestic net sales realization was 3.7% higher over the previous year
at `46,567 per MT with export realization
higher by 5.8% at `44,446. The Company managed toget a better net sales
realization per MT over the previous year partly due to better market
conditions and revisions in the price list across all grades.
During the fifteen
months ending March 2013, the net revenue from operations totaled Rs.1230.500
Milions, while Other Income was Rs.231.100 Milions. Total revenue for the
period was therefore Rs.12536.100 Milions. Earnings before interest,
depreciation and taxation(EBIDTA) were at Rs.1387.700 Milions (before adjusting
for one time charges) constituting 11.28% of the net revenue from operations.
In the previous financial year 2011, the corresponding amount was Rs.1125.800
Milions accounting for 18.73% of the revenue. Lower EBIDTA is also a function
of the sensitivity attached to the demand cycles. Market demand, volume sold
and prevailing prices are normalized in a 12-month cycle and hence are not
comparable with a 15-month review periodending March 2013.Interest and Finance Charges
for the 15 month period were Rs.553.600 Milions as against Rs.361.000 Milions
for the 9 month period. There was an annualized saving of 8% p.a. over the
previous reporting period. The savings were driven by restructuring of debt
portfolio. The foreign exchange fluctuation during the period was in the range
of Rs.48.60 to Rs.57.12 per US Dollar representing 17.50% movement. The loss on
account of adverse movement in foreign exchange rates was Rs.20.000 Milions
during the reporting period as compared to Rs.79.000 Milions in the previous
reporting period. Profitability was also affected due to higher input cost
(substantially on account of the inflationary conditions in the economy). In
addition, there was a provision of Rs.161.900 Milions based on internal
assessment and legal opinion obtained for certain disputed matters relating to
prior years' arrears. As a result, the Company has reported a pre-tax loss of
Rs.207.300 Milions as against pre-tax loss of Rs.131.600 Milions reported in
the earlier year. The loss after tax adjustment is Rs.237.000 Milions, which in
comparison was Rs.978.100 Milions in the financial year ending December 2011.
APPM OUTLOOK
During the
15-month period ended March 31, 2013, theCompany suffered a loss of Rs.237.000
Milions on account of abnormal increase in the cost of fiber, certain
exceptional items and increase in legal and professional charges. Keeping the
overall scenario of the industry, the Company is performing reasonably well and
has been improving its operational efficiencies across the segment to gain the
competitive edge. The Company is strengthening its focus on operational
efficiency supply chain management, quality control, captive production,
strategic market alliances and expansions. Barring unforeseen circumstances,
the overall outlook for the current financial year 2013-14 seems to be
positiveand the management is optimistic of achieving improvements in the
Company's performance. While it is extremely difficult in the present scenario
to predict profits in measurable terms, the Company's initiatives are expected
to improve productivity and profitability
GENERAL ECONOMIC
FACTORS
Adverse business developments could have a negative effect on the
demand for paper products, financial conditions and results of operation. The
paper industry has a positive correlation to economic development and Company suffered
a loss of Rs.237.000 Milions on account of abnormal increase in the cost of
fiber, certain exceptional items and increase in legal and professional
charges. Keeping the overall scenario of the industry, the Company is
performing reasonably well and has been improving its operational efficiencies
across the segment to gain the competitive edge. The Company is strengthening
itsfocus on operational efficiency supply chain management, quality control,
captive production, strategic market alliances and expansions. Barring
unforeseen circumstances, the overall outlook for the current financial year
2013-14 seems to be positive and the management is optimistic of achieving
improvements in the Company's performance. While it is extremely difficult in
the present scenario to predict profits in measurable terms, the Company's
initiatives are expected to improve productivity and profitability.
Management of
Risks
Global pressures
notwithstanding, the Indian economy is expected to grow much higher than the
world average and report a GDP growth of 6% in 2013-14. The Planning Commission
of the Government of India has projected8.2% annual average economic growth
rate during 2012-17, in the approach document to the 12th Plan. The paper
industry will benefit from the stimulus packages and investment in education
being made by the Union Government. Higher literacy and aspiration levels of
the people are expected to further increase the rate at which the paper
industry is growing.
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.12.2011 (Rs.
In Millions) |
|
Long Term
Borrowing |
|
|
|
Term loan from banks |
1482.500 |
735.000 |
|
Deferred payment liabilities |
355.994 |
327.367 |
|
Fixed Deposits From Public |
4.455 |
22.150 |
|
Loan From Related Party |
407.175 |
0.000 |
|
|
|
|
|
Short Term
Borrowing |
|
|
|
Fixed Deposits From Public |
30.280 |
61.450 |
|
|
|
|
|
Total |
2280.404 |
1145.967 |
Notes :
Long Term
Borrowing
Term loan from
banks
The Company has availed unsecured term loans from banks aggregating to Rs.1482.500
Millions (December 31, 2011 –Rs.735.000 Millions) and are secured by Letter of
Comfort from International Paper Company, USA, the ultimate holding company, at
interest rates ranging from 9.50% to 11%. These term loans are repayable as
under:
a. Term Loan I:
Rs.682.500 Millions (December 31, 2011 - Nil) has a maturity of 36 months and
is due in the financial year 2015-16. Further, it is subject to put/call option
at the end of 18 months.
b. Term Loan II:
Rs.400.000 Millions (December 31, 2011 - Nil) is payable in 3 equal
installments at the end of 18, 24 and 36 months.
c. Term Loan III :
Rs.400.000 Millions (December 31, 2011 - Nil) has a tenor of 18 months, which
is renewable automatically for a successive period of 18 months, subject to
consent of both the parties.
d. Term Loan IV:
Rs. Nil (December 31, 2011 – Rs.735.000 Millions) having an original maturity
of 15 months has been repaid during the current financial period.
Deferred payment
liabilities
Deferred payment
liabilities represents Sales Tax Deferral loan availed by the Company, from the
Government of Andhra Pradesh and is repayable after a period of 14 years from
the end of the financial year of its a ailment. These are interest free loans.
An amount of Rs.13.316 Milloins (December 31, 2011 - Nil) is due within next
twelve months and is included under the head‘Current maturities of long-term
debts’ disclosed under Note 7B - Other current liabilities.
Fixed Deposits
from Public (Long Term Borrowing/ Short Term
Borrowing)
The Company has
accepted public deposits at 10% to 10.92% interest rates, depending on the
tenure of the fixed deposits. The total outstanding amount as at the Balance
Sheet date aggregates Rs.34.880 Milloins (December 31, 2011 – Rs.87.731
Milloins) of which Rs.4.455 Milloins (December 31, 2011 – Rs.22.150 Milloins)
is payable beyond one year and Rs.30.280 Milloins (December 31, 2011 –
Rs.61.450 Milloins) is repayable within next twelve months. Unclaimed public
deposits of Rs.0.145 Milloins (December 31, 2011 – Rs.1.701 Milloins) is
included under the head Un paid matured deposits and interest accrued thereon’
disclosed under Note 7B - Other current liabilities.
Loan from Related
Party
6. The Company
availed an unsecured loan from IP Holding Asia Singapore Pte. Limited, the
holding company, aggregating Rs.7.175 Milloins (December 31, 2011 - Rs. Nil) at
Libor plus 250 basis points. Loan is repayable in seven half yearly
installments commencing from December 31, 2014.
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINETH MONTHS ENDED DECEMBER
31, 2013
(Rs.
In Millions)
|
|
|
Three months ended |
Nine Months ended |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income |
|
|
|
|
|
(a) Net Sales / Income
from operations (Net of Excise duty) |
3015.222 |
2464.890 |
8043.321 |
|
|
(b) Other Income |
20.457 |
37.158 |
96.960 |
|
|
Total Income |
3035.679 |
2502.048 |
8140.281 |
|
2 |
Expenditure |
|
|
|
|
|
a] Cost of materials
consumed |
1355.117 |
1171.430 |
3617.103 |
|
|
b] Purchase of
stock-in-trade |
28.969 |
10.717 |
60.174 |
|
|
c] Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
29.684 |
96.160 |
(74.996) |
|
|
d] Stores and spares
consumed |
592.772 |
620.226 |
1720.379 |
|
|
e] Power and Fuel
expenses |
222.190 |
236.617 |
652.092 |
|
|
f] Employee benefits
expense |
289.379 |
283.141 |
839.406 |
|
|
g] Other expenses (Refer
Note 4) |
323.853 |
392.333 |
413.971 |
|
|
Total |
2841.964 |
2810.624 |
7861.013 |
|
3 |
EBIDTA |
193.715 |
(308.576) |
279.268 |
|
4 |
Finance costs |
124.186 |
102.600 |
316.836 |
|
5 |
Depreciation and
amortisation expense |
216.922 |
254.527 |
658.630 |
|
6 |
Profit/(Loss)
from ordinary activities after finance costs but before Exceptional items
& Tax expense |
(147.393) |
(665.703) |
(696.198) |
|
7 |
Exceptional items |
-- |
-- |
-- |
|
8 |
Profit/(Loss)
from Ordinary activities before tax |
(147.393) |
(665.703) |
(696.198) |
|
9 |
Tax Expense |
(68.482) |
(215.239) |
(248.139) |
|
10 |
Net Profit/(Loss) for the period |
(78.911) |
(450.464) |
(448.059) |
|
11 |
Paid - up equity share capital (face value
Rs.10/- each) |
397.700 |
397.700 |
397.700 |
|
12 |
Reserves (Excluding revaluation reserve) |
-- |
-- |
-- |
|
13 |
Earnings per share - Basic (Rs.) |
(1.98) |
(11.32) |
(11.27) |
|
14 |
Earnings per share – Diluted (Rs.) |
(1.98) |
(11.32) |
(11.27) |
SELECT INFORMATION FOR THE
QUARTER AND FIFTEEN MONTHS PERIOD ENDED DECEMBER 31, 2013
(Rs.
In Millions)
|
Sl. No. |
PARTICULARS |
Three months ended |
Nine Months ended |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1 |
Public
share holding |
|
|
|
|
|
- Number
of shares |
9,942,510 |
9,942,510 |
9,942,510 |
|
|
-
Percentage of share holding |
25.00 |
25.00 |
25.00 |
|
2 |
Promoters
and promoter group Shareholding |
|
|
|
|
|
Non-encumbered |
|
|
|
|
|
- Number
of shares |
29,827,529 |
29,827,529 |
29,827,529 |
|
|
|
|
|
|
|
|
-
Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage
of shares (as a % of the total share Capital of the company ) |
75.00 |
75.00 |
75.00 |
|
|
Particulars |
Three months ended |
|
|
|
31.12.2013 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning
of the quarter |
- |
|
|
Received during the
quarter |
3 |
|
|
Disposed of during the
quarter |
3 |
|
|
Remaining unresolved at
the end of the quarter |
- |
Note :
1.
The above unaudited financial results have been
reviewed by the Audit Committee and approved by the Board of Directors of the
Company at their meetings held on January 21, 2014
2.
The above unaudited financial results have been
subjected to Limited Review by the Statutory Auditors of the Company.
3.
During the period ended December 31, 2011, the
Company accrued Rs.41.509 Millions towards managerial remuneration paid to the
erstwhile Directors, which was in excess of the maximum limits specified in
Schedule XIII to the Companies Act, 1956. The excess remuneration amounted to
Rs.19.464 Millions. The members at the Annual General Meeting held on March 22,
2012 approved the waiver of excess remuneration paid to the Directors, subject
to Central Government's approval. The requisite application was made to the
Central Government on April 17, 2012 and the Company received Government’s
approval towards remuneration paid to certain directors and is awaiting the
approval for balance remuneration of Rs.7.007 Millions in respect of a
director.
4.
Exceptional Items:
During the three months ended December 31,
2012, the Company based on its internal assessment of certain disputed matters
relating to prior years and based on the legal opinion obtained on such
matters, made a provision of Rs.161.932 Millions, being Rs. 156.131 Millions
towards interest and Rs. 5.801 Millions towards taxes.
5.
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.
6.
The Board of Directors at their meeting held on
January 22, 2013 had approved the extension of the previous financial year from
January 1, 2012 to December 31, 2012 till March 31, 2013. Pursuant to such
change, the previous financial year was for a period of fifteen months ended
March 31, 2013.
7.
Figures for the 9 months period ended December 31,
2012 are derived by aggregating the unaudited figures in respect of the
quarters ended June 30, 2012, September 30, 2012 and December 31, 2012.
8.
The name of the company has been changed from The
Andhra Pradesh Paper Mills Limited to International Paper APPM Limited with
effect from December 16, 2013.
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
|
i. Commitments/contingent liabilities |
|
|
a. Guarantees issued by banks |
76.584 |
|
b. Letters of credit outstanding |
44.562 |
|
c. Corporate guarantee given to the Forest
Department of Government of Andhra Pradesh |
-- |
|
ii. Claims against the Company not acknowledged as debts in respect of |
|
|
a. Income tax matters, pending decisions on
various appeals made by the Company and by the Department |
12.150 |
|
b. Excise matters, under dispute |
768.759 |
|
c. Sales tax matters, under dispute |
37.381 |
|
d. Other matters, under dispute |
22.624 |
|
e. Vacant land tax |
40.098 |
|
f. Electricity
duty (Levy of electricity duty towards consumption of energy generated by
captive power unit) |
391.275 |
|
g. Demand raised by Eastern Power Distribution
Corporation of Andhra Pradesh Limited for surplus power supplied by APGPCL
disputed by the Company. An amount of Rs.7.698 Millions paid under protest (March 31, 2011: Rs.7.698 Millions) has been grouped under loans and
advances. The appeal filed by APTRANSCO is pending before the Hon'ble High
Court of Andhra Pradesh in which other companies similarly placed are made
respondents. |
8.766 |
|
iii. Estimated amount of contracts remaining
to be executed on capital account and not provided for (net of
advances) |
399.827 |
|
iv. Commitment under Export Promotion
Capital Goods (EPCG) Scheme |
3519.775 |
FIXED ASSETS
·
Land
·
Road and Drainages
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Furniture and Fixtures
·
Vehicles
·
Goodwill
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.60.49 |
|
|
1 |
Rs.99.77 |
|
Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
SNT |
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 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
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.