MIRA
INFORM REPORT
|
Report No. : |
308883 |
|
Report Date : |
20.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
JK PAPER LIMITED (w.e.f. 07.05.2002) |
|
|
|
|
Formerly Known
As : |
CENTRAL PULP MILLS LIMITED |
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|
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|
Registered
Office : |
P.O. Central Pulp Mills, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
04.07.1960 |
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Com. Reg. No.: |
04-018099 |
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Capital
Investment / Paid-up Capital : |
Rs.1366.200 Millions |
|
|
|
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CIN No.: [Company Identification
No.] |
L21010GJ1960PLC018099 |
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IEC No.: |
Not Available |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
SRTJ00098A |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Exporter of Paper and Paper Related Products and
Pulp. |
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|
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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|
|
Payment Behaviour : |
slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial
risk profit and loss that company has incurred form its operational
activities during 2014. However, trade relations are fair. Business is active. Payments are
reported to be slow but correct. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long term issuer rating BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
July 9, 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
31-03-2014.
LOCATIONS
|
Registered Office / Factory 1 : |
P.O. Central Pulp Mills, Fort Songadh, District Tapi – 394660,
Gujarat, India |
|
Tel. No.: |
91-2624-220228 / 220278-80 |
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Mobile No.: |
91-2624-220138 |
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Fax No.: |
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E-Mail : |
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Head / Administrative Office : |
Nehru House, 3rd Floor, 4 Bahadur Shah Zafar Marg, New
Delhi – 110002, India |
|
Tel. No.: |
91-11-23311112 / 41011116 |
|
Fax No.: |
91-11-23712680 |
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E-Mail : |
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|
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|
Factory 2 : |
JK Paper Mills, Jaykapur, Rayagada – 765017, Orissa, India |
|
Tel. No.: |
91-6856-233303 / 233770 / 233171 |
|
Fax No.: |
91-6856-222238 |
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|
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Zonal Offices : |
Located At: ·
New Delhi ·
Chennai ·
Mumbai ·
Kolkata |
DIRECTORS
As on 27.09.2014
|
Name : |
Mr. Bharat Hari Singhania |
|
Designation : |
Chairman |
|
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|
Name : |
Mr. Harsh Pati Singhania |
|
Designation : |
Vice Chairman and Managing Director |
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|
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|
Name : |
Mr. Om Praeash Goyal |
|
Designation : |
Whole Time Director |
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|
Name : |
Mr. Arun Bharat Ram |
|
Designation : |
Director |
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|
Name : |
Mr. Dhirendra Kumar M.H. |
|
Designation : |
Director |
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|
Name : |
Mr. M.H. Dalmia |
|
Designation : |
Director |
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|
Name : |
Mr. R.V. Kanoria |
|
Designation : |
Director |
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|
Name : |
Mr. Shailendra Swarup |
|
Designation : |
Director |
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|
Name : |
Mr. Shailesh Haribhakti |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Udayan Bose Vinita |
|
Designation : |
Director |
|
|
|
|
Name : |
Singhania Wim Wienk |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Suresh Chander Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1050000 |
0.77 |
|
|
72798568 |
53.29 |
|
|
73848568 |
54.05 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
73848568 |
54.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
30834 |
0.02 |
|
|
1201166 |
0.88 |
|
|
6093317 |
4.46 |
|
|
120083 |
0.09 |
|
|
7690000 |
5.63 |
|
|
7690000 |
5.63 |
|
|
15135400 |
11.08 |
|
|
|
|
|
|
7794655 |
5.71 |
|
|
|
|
|
|
8629226 |
6.32 |
|
|
24450234 |
17.90 |
|
|
6762542 |
4.95 |
|
|
3022564 |
2.21 |
|
|
2500000 |
1.83 |
|
|
1239978 |
0.91 |
|
|
47636657 |
34.87 |
|
Total Public shareholding (B) |
62772057 |
45.95 |
|
Total (A)+(B) |
136620625 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
136620625 |
0.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Promoter and Promoter Group
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
Total shares (including underlying shares assuming
full conversion of warrants and convertible securities) as a % of diluted
share capital |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|||
|
1 |
Bengal & Assam
Company Ltd |
3,28,43,299 |
24.04 |
18.99 |
|
2 |
J K Fenner India Ltd |
2,54,57,500 |
18.63 |
14.72 |
|
3 |
Florence Investech Ltd |
1,18,33,332 |
8.66 |
6.84 |
|
4 |
BMF Investments Ltd |
22,52,297 |
1.65 |
1.30 |
|
5 |
Accurate Finman Services
Ltd |
4,11,140 |
0.30 |
0.24 |
|
6 |
Hari Shankar Singhania |
1,75,000 |
0.13 |
0.10 |
|
7 |
Sharda Singhania |
1,75,000 |
0.13 |
0.10 |
|
8 |
Dr Raghupati Singhania |
1,31,250 |
0.10 |
0.08 |
|
9 |
Harsh Pati Singhania |
1,31,250 |
0.10 |
0.08 |
|
10 |
Vikram Pati Singhania |
1,31,250 |
0.10 |
0.08 |
|
11 |
Vinita Singhania |
87,500 |
0.06 |
0.05 |
|
12 |
Anshuman Singhania |
43,750 |
0.03 |
0.03 |
|
13 |
Sunanda Singhania |
43,750 |
0.03 |
0.03 |
|
14 |
Mamta Singhania |
43,750 |
0.03 |
0.03 |
|
15 |
Shrivats Singhania |
43,750 |
0.03 |
0.03 |
|
16 |
Swati Singhania |
43,750 |
0.03 |
0.03 |
|
17 |
Nav Bharat Vanijya Ltd |
1,000 |
0.00 |
0.00 |
|
|
Total |
7,38,48,568 |
54.05 |
42.70 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons belonging
to the category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming
full conversion of warrants and convertible securities) as a % of diluted
share capital |
|
|
1 |
Pradip Kumar Khaitan |
11806112 |
8.64 |
6.83 |
|
|
2 |
International Finance
Corporation |
7690000 |
5.63 |
4.45 |
|
|
3 |
Life Insurance Corporation
of India |
3282805 |
2.40 |
1.90 |
|
|
4 |
Edgefield Securities Ltd |
2500000 |
1.83 |
1.45 |
|
|
5 |
General Insurance
Corporation of India |
2100000 |
1.54 |
1.21 |
|
|
6 |
Deepa Bagla Financial
Consultants Pvt Ltd |
1658141 |
1.21 |
0.96 |
|
|
|
Total |
29037058 |
21.25 |
16.79 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
(together with PAC) belonging to the category “Public” and holding more than 5%
of the total number of shares of the company
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons
Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
1 |
Pradip Kumar Khaitan |
11806112 |
8.64 |
6.83 |
|
|
2 |
International Finance
Corporation |
7690000 |
5.63 |
4.45 |
|
|
|
Total |
19496112 |
14.27 |
11.27 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Paper and Paper Related Products and
Pulp. |
|
|
|
|
Products : |
·
Paper Related Products ·
Pulp |
|
|
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|
Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of India, Bahadur Shah Zafar Marg, New
Delhi, India ·
Axis Bank Limited ·
Canara Bank ·
IDBI Bank Limited |
||||||||||||||||||||||||||||||||||||
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|
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|
Facilities : |
(Rs.
In Millions)
|
|
Auditors : |
|
|
Name : |
S.S. Kothari Mehta and Company Chartered Accountants |
|
Address : |
Delhi, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries
(Wholly Owned) : |
· Songadh Infrastructure and Housing Limited ·
Jaykaypur Infrastructure and Housing Limited ·
JK Enviro–Tech Limited |
|
|
|
|
Joint Venture : |
Oji JK Packaging Private Limited |
|
|
|
|
Enterprise over
which KMP's have significant influence : |
Habras International Limited |
CAPITAL STRUCTURE
As on 27.09.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000 Millions |
|
3,00,00,000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs.3000.000 Millions |
|
|
TOTAL
|
|
Rs.5000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13,66,20,625 |
Equity Shares |
Rs.10/- each |
Rs.1366.200
Millions |
|
|
|
|
|
Notes :
(a) (i) Reconciliation
of Equity Share Capital
|
Particular |
As at 31. 03. 2014 Number of Shares |
|
Shares outstanding at the beginning of the year |
13,66,20,625 |
|
Add : Shares issued during the year |
-- |
|
Less : Shares bought back during the year |
-- |
|
Shares outstanding at the end of the year |
13,66,20,625 |
(b) Equity Shares:
The equity shareholders have:–
· The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing general meeting.
· The Company has only one class of Equity Shares having face value of Rs. 10/– each and each shareholder is entitled to one vote per share.
· In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding in the paid up equity capital of the Company.
(c) List of
shareholders holding more than 5% of the Equity Share Capital of the Company
|
Particular |
As at 31. 03. 2014 Number of Shares |
|
Bengal and Assam Company Limited |
3,28,43,299 |
|
JK Fenner (India) Limited |
2,54,57,500 |
|
JK Paper Employees Welfare Trust |
1,24,30,362 |
|
Florence Investech Limited (formerly JK Agri Genetics Limited) |
1,16,81,684 |
|
International Finance Corporation |
76,90,000 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1366.200 |
1366.200 |
1366.500 |
|
(b) Reserves & Surplus |
6614.900 |
7388.700 |
7148.100 |
|
(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) |
7981.100 |
8754.900 |
8514.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
16888.400 |
14782.800 |
8455.600 |
|
(b) Deferred tax liabilities (Net) |
738.100 |
1199.700 |
1218.200 |
|
(c) Other long term liabilities |
349.100 |
279.100 |
241.300 |
|
(d) long-term provisions |
31.400 |
32.700 |
27.900 |
|
Total Non-current Liabilities (3) |
18007.000 |
16294.300 |
9943.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2190.500 |
1231.400 |
1306.300 |
|
(b) Trade payables |
2120.900 |
1370.600 |
1427.000 |
|
(c) Other current
liabilities |
4389.700 |
2867.200 |
2377.100 |
|
(d) Short-term provisions |
26.700 |
126.400 |
261.300 |
|
Total Current Liabilities (4) |
8727.800 |
5595.600 |
5371.700 |
|
|
|
|
|
|
TOTAL |
34715.900 |
30644.800 |
23829.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
24635.500 |
7708.800 |
8066.800 |
|
(ii) Intangible Assets |
48.500 |
1.500 |
3.800 |
|
(iii) Capital
work-in-progress |
171.500 |
15392.700 |
5818.600 |
|
(iv)
Intangible assets under development |
0.000 |
15.700 |
0.000 |
|
(b) Non-current Investments |
317.900 |
150.500 |
126.500 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
729.000 |
1307.700 |
2290.200 |
|
(e) Other Non-current assets |
242.500 |
453.600 |
477.500 |
|
Total Non-Current Assets |
26144.900 |
25030.500 |
16783.400 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
637.900 |
0.000 |
603.100 |
|
(b) Inventories |
2915.100 |
2160.000 |
1641.900 |
|
(c) Trade receivables |
1708.000 |
1193.800 |
1441.600 |
|
(d) Cash and cash
equivalents |
83.400 |
338.000 |
1476.900 |
|
(e) Short-term loans and
advances |
1825.000 |
1808.700 |
1795.600 |
|
(f) Other current assets |
1401.600 |
113.800 |
86.800 |
|
Total Current Assets |
8571.000 |
5614.300 |
7045.900 |
|
|
|
|
|
|
TOTAL |
34715.900 |
30644.800 |
23829.300 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17378.700 |
14591.100 |
13300.600 |
|
|
|
Other Income |
147.600 |
118.700 |
235.000 |
|
|
|
TOTAL (A) |
17526.300 |
14709.800 |
13535.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
10794.500 |
8331.200 |
7214.000 |
|
|
|
Purchases of Stock-in-Trade |
929.800 |
840.700 |
722.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(583.600) |
(121.200) |
(161.300) |
|
|
|
Employees benefits expense |
1587.100 |
1417.400 |
1261.400 |
|
|
|
Other expenses |
3413.400 |
2797.600 |
2736.400 |
|
|
|
Exceptional Items |
174.900 |
(157.400) |
0.000 |
|
|
|
TOTAL (B) |
16316.100 |
13108.300 |
11772.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1210.200 |
1601.500 |
1763.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1218.600 |
499.000 |
512.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(8.400) |
1102.500 |
1250.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1221.000 |
729.100 |
729.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(1229.400) |
373.400 |
521.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(457.500) |
(3.600) |
28.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(771.900) |
377.000 |
493.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3004.200 |
2715.600 |
2492.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Capital Redemption Reserve |
0.000 |
0.300 |
0.600 |
|
|
|
Debenture Redemption Reserve |
0.000 |
8.200 |
6.600 |
|
|
|
Dividend (Incl. Tax on Dividend) |
0.000 |
79.900 |
0.000 |
|
|
|
General Reserve |
0.000 |
0.000 |
25.000 |
|
|
|
Dividend: - On Preference
Shares (incl. Tax on Dividend) |
0.000 |
0.000 |
0.100 |
|
|
|
Dividend: - On Equity
Shares (incl. Tax on Dividend) |
0.000 |
0.000 |
238.200 |
|
|
BALANCE CARRIED
TO THE B/S |
2232.300 |
3004.200 |
2715.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
852.700 |
750.500 |
436.100 |
|
|
TOTAL EARNINGS |
852.700 |
750.500 |
436.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3392.900 |
2466.800 |
2426.500 |
|
|
|
Stores & Spares |
402.300 |
226.200 |
189.200 |
|
|
|
Capital Goods |
63.300 |
5836.800 |
2821.000 |
|
|
|
Others |
807.200 |
687.800 |
545.400 |
|
|
TOTAL IMPORTS |
4665.700 |
9217.600 |
5982.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
(5.65) |
2.76 |
4.41 |
|
|
|
- Diluted |
(5.65) |
2.18 |
3.46 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(4.44) |
2.58 |
3.71 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
6.96 |
10.98 |
13.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.59) |
2.48 |
2.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.15) |
0.04 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.39 |
1.83 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98 |
1.00 |
1.31 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
1366.500 |
1366.200 |
1366.200 |
|
Reserves & Surplus |
7148.100 |
7388.700 |
6614.900 |
|
Net
worth |
8514.600 |
8754.900 |
7981.100 |
|
|
|
|
|
|
long-term borrowings |
8455.600 |
14782.800 |
16888.400 |
|
Short term borrowings |
1306.300 |
1231.400 |
2190.500 |
|
Total
borrowings |
9761.900 |
16014.200 |
19078.900 |
|
Debt/Equity
ratio |
1.146 |
1.829 |
2.391 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
13300.600 |
14591.100 |
17378.700 |
|
|
|
9.703 |
19.105 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
13300.600 |
14591.100 |
17378.700 |
|
Profit |
493.200 |
377.000 |
(771.900) |
|
|
3.71% |
2.58% |
(4.44%) |
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 LOAN
(Rs.
In Millions)
|
PARTICULAR |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
Long Term
Borrowings |
|
|
|
Foreign Currency Term
Loans from Bank |
0.000 |
12.900 |
|
Foreign Currency
Convertible Bonds (FCCB's) |
2890.200 |
2434.000 |
|
Public Deposits |
130.100 |
153.300 |
|
Finance Lease obligation |
11.500 |
15.100 |
|
Less: Current Maturities of Long Term Borrowings |
|
|
|
Foreign Currency Term
Loans from Banks |
0.000 |
(12.900) |
|
Public Deposits |
(36.200) |
(65.200) |
|
Finance Lease obligation |
(3.900) |
(3.500) |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Vendor Bill discounting |
726.900 |
157.800 |
|
Buyer's Credit facilities
from Bank |
273.300 |
418.200 |
|
Public Deposits |
8.600 |
11.400 |
|
|
|
|
|
Total |
4000.500 |
3121.100 |
|
|
|
|
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10546039 |
21/01/2015 |
1,050,000,000.00 |
L&T FinCorp Limited |
L & T HOUSE, BALLARD ESTATE,, MUMBAI, Maharashtra - 400001,
INDIA |
C41929837 |
|
2 |
10540124 |
19/12/2014 |
1,400,000,000.00 |
IDBI Bank Limited |
INDIAN RED CROSS SOCIETY BUILDING, 1, RED CROSS R |
C38944435 |
|
3 |
10526065 |
30/09/2014 |
1,000,000,000.00 |
Axis Bank Limited |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G |
C29797263 |
|
4 |
10526288 |
27/09/2014 |
1,750,000,000.00 |
State Bank of India |
Corporate Accounts Group Branch, 2nd Floor, Reliance House,34,Jawaharlal
Nehru Road, Kolkata, West Bengal - 700071, INDIA |
C29959681 |
|
5 |
10491176 |
15/05/2014 |
250,000,000.00 |
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED |
RAMON HOUSE 169BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI, Maharashtra
- 400020, INDIA |
C04022877 |
|
6 |
10486092 |
10/07/2014 * |
350,000,000.00 |
IDBI Bank Limited |
INDIAN RED CROSS SOCIETY BUILDING, 1, RED CROSS ROAD, NEW DELHI, Delhi
- 110001, INDIA |
C15255110 |
|
7 |
10484805 |
19/03/2014 |
250,000,000.00 |
Axis Bank Limited |
2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD, NEW DELHI,
Delhi - 110001, INDIA |
C00484147 |
|
8 |
10481081 |
21/02/2014 |
900,000,000.00 |
ALLAHABAD BANK |
INDUSTRIAL FINANCE BRANCH, 2ND FLOOR,, 17, PARLIA |
B97824288 |
|
9 |
10462129 |
16/04/2014 * |
900,000,000.00 |
State Bank of India |
State Bank of India, Reliance House,2nd Floor,34, |
C02387496 |
|
10 |
10443433 |
14/10/2013 * |
500,000,000.00 |
STATE BANK OF HYDERABAD |
STATE BANK OF HYDERABAD, COMMERCIAL BRANCH, 74, JANPATH, NEW DELHI,
Delhi - 110001, INDIA |
B88348776 |
* Date of charge modification
PERFORMANCE REVIEW:
The Company’s
sales during the year increased to Rs 20254.700 Millions (up 18%) from Rs
17213.800 Millions in the previous year. The Operating Profit (PBIDT) stood at
Rs 1385.100 Millions, however the Company recorded a loss amounting to Rs
771.900 Millions as a result of higher interest and depreciation burden arising
from commissioning of Company’s new project (Rs 1775.000 Millions excluding
notional losses on forex loans) at Jaykaypur, Odisha, slower ramp up of
production and severe cost increase. Total production at 328321 tonnes and
Sales at 321094 tonnes represented an increase of 12% and 11% respectively over
the previous year and are highest ever achieved by the Company. Overall
capacity utilization (including new plant) was 85%. During the year, there was
a severe increase in wood prices (37%) and coal (15%). Though, the Company was
able to increase sales realization (12%), it was inadequate to cover the steep
cost increase thereby impacting the profit margins. Cost compression measures
adopted by the company helped to moderate the impact of higher input costs.
Hardwood pulp prices which were ruling higher during start of the year declined
during second half of the year but weakening of Rupee negated the impact on
landed cost. With the expected commissioning of new large scale pulp capacities
in Latin America, prices are likely to remain stable going forward. The growth
of Indian Paper and Board industry at 6.5% is one of the fastest in the world.
At 13 million tonnes per annum, the Indian Paper and Board market ranks amongst
the top 15 globally. Furthermore the large population base and low penetration
(per capita consumption at 11 Kg as compared to world average of 56 Kg)
indicates the future potential for growth. JK Paper has always focused on
providing value to its customers through differentiated products/ services and
led the transition of paper from being a commodity to a Branded product. The
Company introduced high quality “ColorLok” papers in India to address the
changing needs of customers, which have occupied a unique position in the minds
of its end customers. The Virgin Fibre Board and Coated Papers produced by the
Company are similarly recognized for their quality and functional properties.
All this has resulted in the Company achieving a leadership position in Office
Papers segment and being ranked one of the top 2 players in Coated Paper and
Virgin Fibre Board market. Wood is the primary raw material for the paper
industry, however in the recent years the domestic supply has failed to
catch-up with demand from various consuming industries. This
has led to sharp increase in wood prices and consequently higher input costs
for the paper industry. To tide over this situation the Company
imported some quantities of wood logs and wood chips during the year. The
industry will have to resort to such imports till the demand supply gap is
addressed in the next couple of years. The Company had foreseen this situation
and had intensified its farm forestry activities to develop raw material bank
within 200 Km radius of the mills. During the year the Company covered 14,877
hectares, thus achieving a cumulative acreage of 116000 hectares from the
inception of its farm forestry programme.
INDUSTRY SCENARIO:
The industry growth was muted due to economic slowdown and decrease in spending across the board. With gradual improvement in the economy and growth drivers in place such as changing lifestyles, increasing organized retail and government spending on education, the paper and board consumption is bound to increase.
However, increased supply in domestic market due to new capacities and Cheaper imports from ASEAN countries at zero duty are likely to pose some challenges in the short term.
OFFICE PAPERS: The market scenario for
uncoated paper improved during the year and some price increases could be
effected and sustained in the market. These are early indicators that the
capacity overhang created in the last couple of years is partly getting
absorbed. This augurs well for the Company as it will achieve full capacity
during FY 2014-15 from its new facility at Unit JKPM. The Company’s market
share has already increased to 26% from 19% in 2013-14.
The Company introduced JK MAX in 67 gsm and JK CMAX in 72gsm to cater to some unaddressed segments of the market. The products have been received favourably and are gaining popularity. The existing brands “JK Copier”,”JK Easy Copier”, “JK Copier Plus”, “Sparkle” and “Cedar” continued to cement their position further in the market. The Company’s products “JK Excel Bond”, “JK Ledger” and “MICR Cheque Papers” cater to niche segments and enjoy patronage from corporate customers.
Coated Papers: The market for Coated Papers continued to grow, however reduced corporate spending due to economic slowdown resulted in slower demand growth. Imports from China and Indonesia continued unabated preventing any significant price increases. Weakening of Rupee against the Dollar created a temporary slowdown in imports but lack of additional domestic supply assisted in recovery for imports. The Company’s Brands “JK Cote” and “JK Supercote” continue to attract a wide variety of customers.
Packaging Board: The Company focuses only on high end segment of Virgin Fibre Board with its brands “JK Tuffcote” and “JK Ultima”. Market growth for the targeted segment continues to be robust due to increasing thrust on good quality packaging for consumer products. Inspite of competition from new entrants the Company has maintained its position as the 2nd largest player in the market. With shift from low end packaging and increasing organized retail, the market is expected to continue its growth momentum. The Company will continue to maintain its position in this attractive market.
Maplitho Paper: With the new capacity at Unit JKPM now operational, the Company plans to re-enter this segment, which was created by your company, with a superior product offering. The market for Maplitho paper is large and growing at stable rate thus providing a good opportunity for the Company to leverage its
Brand recall with this category.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
Global economic activity that was on an uptrend in second half of last year, has gained strength with impetus mainly from the developed countries, primarily US. However, the slower pace of recovery has kept unemployment still high and so raises concern over the sustainability. While debt embroiled European nations are still grappling with growth slowdown, core economies of UK and Germany foster better growth. However downside risk still persists in the form of low inflation and/or deflation that would not only result in higher interest rates and higher debt burdens, but also lower investments and weaker growth. Emerging market economies, the growth driver for most of the past decade, have witnessed slowdown, notably in China, where growth has slowed to late 90s level, with concerns over a bulging real estate bubble. On the positive side, it also indicates a transition towards a more balanced growth path that is geared more towards domestic demand than led by exports and capital formation. Growth slowdown in India however is a cause of concern, as it has recorded growth below 5% for the second consecutive year. As US has embarked on its tapering of monetary stimulus, emerging economies with higher inflation and wider current account deficits, remain vulnerable to currency depreciation and capital flow reversals, and would therefore be forced to maintain monetary policy tightening. This could result in interest rates remaining high and delay in investments. Further many economies, most notably India, would need a new round of structural reforms, including investment in public infrastructure, to improve its competitiveness (to boost exports) and thus revive the faltering manufacturing sector. Therefore the green shoots of recovery that have arrived on the horizon need to be supplemented with appropriate policies and actions to maintain the growth uptrend.
FIXED ASSETS:
Tangible Assets:
v
Land
- Freehold
- Leasehold
v
Buildings
v
Plant and Machinery
v
Furniture, Fixtures and Equipments
v
Vehicles and Locomotives
v
Railway Sidings
Intangible Assets
v Performance
Improvement and Development
Software
STATEMENT
OF UNAUDITED STANDALONE RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31
DECEMBER 2014
(Rs.
In Millions)
|
PARTICULARS |
Quarter ended |
Nine months ended |
|
|
3112.2014 |
30.09.2014 |
3112.2014 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
PART
I |
|
|
|
|
Income
from operations |
|
|
|
|
(a) Net sales/Income from operations (Net of
excise duty) |
5447.300 |
5314.200 |
15634.900 |
|
(b) Other Operating Income |
88.400 |
22.800 |
134.300 |
|
Total
income from operations (net) |
5535.700 |
5337.000 |
15769.200 |
|
Expenses |
|
|
|
|
a)
Cost of materials consumed |
3451.300 |
3337.400 |
10107.500 |
|
b)
Purchase of traded goods |
54.300 |
285.600 |
540.100 |
|
c)
Change in inventories of finished goods, work-in progress and traded
goods |
(153.500) |
(212.200) |
(776.500) |
|
d)
Power & fuel |
531.900 |
574.100 |
1586.200 |
|
e)
Employee benefits expenses |
416.800 |
416.800 |
1247.100 |
|
f)
Depreciation and amortization expenses |
272.700 |
306.300 |
846.700 |
|
g)
Other expenses |
482.700 |
457.300 |
1433.800 |
|
Total
Expenses |
5056.200 |
5165.300 |
14984.900 |
|
Profit/(Loss)
from operations before other income, finance cost and Taxes |
752.200 |
478.000 |
1631.000 |
|
Profit/(Loss) from operations before other
income, finance cost and exceptional items |
479.500 |
171.700 |
784.300 |
|
Other Income |
14.000 |
48.600 |
107.600 |
|
Profit/(Loss) from ordinary activities
before finance costs & exceptional items |
493.500 |
220.300 |
891.900 |
|
Finance costs |
482.500 |
506.600 |
1488.200 |
|
Profit/(Loss) from ordinary activities
after finance costs but before exceptional items |
11.000 |
(286.300) |
(596.300) |
|
Exceptional items |
-- |
-- |
--- |
|
Profit/(Loss) from ordinary activities
before tax |
11.000 |
(286.300) |
(596.300) |
|
Tax expense (Net) |
(103.000) |
(89.500) |
(288.200) |
|
Net
Profit/(Loss) from ordinary activities after tax |
114.000 |
(196.800) |
(308.100) |
|
Extraordinary items (net of tax expenses) |
-- |
-- |
-- |
|
Net
Profit/(Loss) for the period |
114.000 |
(196.800) |
(308.100) |
|
Paid-up equity share capital (Face value
per share Re.1) |
1366.200 |
1366.200 |
1366.200 |
|
Reserves (excluding revaluation reserve) |
|
|
|
|
Earnings per share before and after
extraordinary items (Not annualized) |
|
|
|
|
Basic
(Rs.) |
0.84 |
(1.44) |
(2.25) |
|
Diluted
(Rs.) |
0.84 |
(1.44) |
(2.25) |
|
PART
II |
|
|
|
|
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
Public
shareholding |
|
|
|
|
-
Number of shares (Re. 1 each) |
62772057 |
63073705 |
62772057 |
|
- Percentage
of shareholding |
45.95 |
46.17 |
45.95 |
|
Promoters
and promoter group shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
-
Number of shares |
Nil |
Nil |
Nil |
|
- Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
-
Percentage of shares (as a % of the total share capital of the
company) |
Nil |
Nil |
Nil |
|
b) Non-Encumbered |
|
|
|
|
- Number
of shares |
73848568 |
73546920 |
73848568 |
|
-
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) |
54.05 |
53.83 |
54.05 |
|
Particulars
|
31.12.2014 |
|
Investors
Complaints (Nos.) |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
1 |
|
Disposed of during the quarter |
1 |
|
Remaining unresolved at the end of the quarter |
Nil |
Note:
1. Higher Production during the Quarter has increased Sales by 18% and doubled the EBITDA over Corresponding Quarter.
2. The Company’s proposed Scheme of Arrangement for transfer of Lime Kiln Undertaking of a Subsidiary is pending final approval with the High Court of Gujarat. The necessary accounting impact will be done on approval.
3. The Company has only one business segment namely, “Paper and Board”.
4. The figures for the previous periods have been regrouped / rearranged, wherever necessary. The Company does not have any Extraordinary Items to report for the above periods.
5. Income from Operations represents Gross Sales including Discounts and Excise Duty.
6. Depreciation has been provided in accordance with Part C, Schedule II of the Companies Act, 2013 w.e.f.1st April, 2014. Consequently the Depreciation and amortization expenses for the quarter and nine months ended 31st December, 2014 are lower by Rs. 107.8 Millions and Rs.288.7 Millions respectively. The Company has adjusted Rs.43.4 Millions (net of Deferred Tax) from Retained Earnings in respect of Fixed Assets whose useful life has already exhausted as on 1st April, 2014.
7. These results have been reviewed by the Audit Committee
and approved by the Board of Directors at their respective meetings held on
10th February, 2015. Limited Review of these results has been carried out by
the Auditors.
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.61.73 |
|
|
1 |
Rs.94.65 |
|
Euro |
1 |
Rs.70.78 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
32 |
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.