MIRA INFORM REPORT
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Report No. : |
308946 |
|
Report Date : |
20.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
THE MYSORE PAPER MILLS LIMITED |
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Registered
Office : |
16-4, |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
20.05.1936 |
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Com. Reg. No.: |
000173 |
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Capital
Investment / Paid-up Capital : |
Rs. 1188.934 Millions |
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CIN No.: [Company Identification
No.] |
L99999KA1936SG000173 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRT00256E |
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PAN No.: [Permanent Account No.] |
Not Available |
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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
: |
Manufacturer of Newsprint, Paper and Paper Boards and Sugar. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick Company |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Exist |
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Comments : |
The subject company is declared as a sick unit by Board for Industrial
and Financial Reconstruction. The management has register case (Case No. 601/2012) with Board for
Industrial and Financial Reconstruction under sick industrial companies’ act
1985. The order on which approval for rehabilitation proposal is awaited. As per latest financial record of 2014, the company has incurred huge
accumulated losses which has eroded net worth of the company. Liquidity
position of the company is under pressure. Business is active. Payments are reported to be slow and delayed. The company can be considered for business dealings on a fully secured
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 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
D (Long Term Rating) |
|
Rating Explanation |
Lowest-credit-quality very low prospects of recovery |
|
Date |
30.07.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
D (Short Term Rating) |
|
Rating Explanation |
Instruments with this rating are in default or expected to be in
default on maturity. |
|
Date |
30.07.2014 |
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.
INFORMATION DECLINED BY
Management non co-operative (91-80-22355141)
LOCATIONS
|
Registered Office / Corporate Office : |
16-4, |
|
Tel. No.: |
91-80-2262334 / 22255459 / 22266979 |
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Fax No.: |
91-80-22253478 |
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E-Mail : |
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Website : |
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Factory : |
Paper Town Post, Bhadravati – 577302, Karnataka, India |
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Tel. No.: |
91-8282-270201 / 204 |
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Fax No.: |
91-8282-270937 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2014
|
GOVERNMENT
DIRECTORS |
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|
Name : |
Mr. V Umesh, IAS |
|
Designation : |
Chairman (Up to 10.06.2014) |
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Name : |
Mr. K Ratnaprabha, IAS |
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Designation : |
Chairman (From 10.06.2014) |
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Name : |
Mr. Naveen Raj Singh, IAS |
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Designation : |
Managing Director (From 08.09.2014) |
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Name : |
Mr. M Maheshwar Rao, IAS |
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Designation : |
Managing Director (Up to 08.09.2014) |
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Name : |
Mr. Padam Kumar Garg, IPS |
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Designation : |
Managing Director (Up to 18.11.2013) |
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Name : |
Mr. Aravind Shrivastava, IAS |
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(From 25.06.2013) |
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Elected Directors : |
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Nominee Directors : |
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KEY EXECUTIVES
|
Name : |
Mr. Mohan D Kulkarni |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2014
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
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|
76971094 |
64.74 |
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|
76971094 |
64.74 |
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Total shareholding of Promoter and Promoter Group (A) |
76971094 |
64.74 |
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(B) Public Shareholding |
||
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|
12203120 |
10.26 |
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|
319 |
0.00 |
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|
6394368 |
5.38 |
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18597807 |
15.64 |
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|
993653 |
0.84 |
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|
6426483 |
5.41 |
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|
14150119 |
11.90 |
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|
1754276 |
1.48 |
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|
1678941 |
1.41 |
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|
58263 |
0.05 |
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|
17072 |
0.01 |
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|
23324531 |
19.62 |
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Total Public shareholding (B) |
41922338 |
35.26 |
|
Total (A)+(B) |
118893432 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
118893432 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Newsprint, Paper and Paper Boards and Sugar. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
M N S and Company Chartered Accountants |
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Address : |
No. 163, 2nd Floor, R.V. Road, Near Minerva Circle, Bengaluru-560 004, Karnataka, India |
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Memberships : |
-- |
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Collaborators : |
-- |
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Associates/Subsidiaries : |
Not Available |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000* |
Equity Shares |
Rs.10/- each |
Rs. 1500.000 Millions |
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
118893432** |
Equity Shares |
Rs.10/- each |
Rs. 1188.934
Millions |
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|
NOTES
* The Company in its
77th AGM held on 31.12.2012 has approved the enhancement of Authorised Capital
from 1500.000 Millions to Rs 5000.000 Millions. The Company has obtained
exemption from BIFR for payment of stamp duty towards issue of share
certificate to GOK and also towards filing fees to MCA. However, exemption for
payment of stamp duty is sought from GOK . Due to above, formalities for
enhancement of authorised capital is pending and consequently amount received
from GOK which is pending allotment is shown under Share Application Money
pending allotment to the extent within the authorised capital and under current
liabilities over and above the authorised share capital.
**Includes 9,00,000 shares allotted by way of Bonus Shares by capitalisation
of Share Premium and General Reserve
|
|
As at 31st
March 2014 Amount (Rs In
Millions) |
|
|
a) Reconciliation of share capital (Equity) |
|
|
|
Balance at the beginning of the year |
118893432 |
1188.934 |
|
Balance at the end of the year |
118893432 |
1188.934 |
|
b) Shareholders holding more than 5% of the shares |
Number |
Amount (Rs In
Millions) |
|
i) Government of Karnataka |
76971094 |
769.711 |
|
ii) Financial Institutions |
12230149 |
122.301 |
|
iii) Insurance Companies |
6423578 |
64.236 |
|
|
95624821 |
956.248 |
c) Details of
shares issued pursuant to contract without payment being received in cash
during preceding five years:
|
|
2012-13 |
2011-12 |
2010-11 |
2009-10 |
2008-09 |
|
No of share allotted |
- |
- |
- |
- |
48600 |
|
Amount (Rs In Millions) |
- |
- |
- |
- |
0.486 |
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 |
1,188.934 |
1,188.934 |
1,188.934 |
|
(b) Reserves & Surplus |
(4,231.624) |
(3,440.594) |
(2,663.005) |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
311.066 |
311.066 |
1,060.250 |
|
Total Shareholders’ Funds (1) + (2) |
(2,731.624) |
(1,940.594) |
(413.821) |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1,775.000 |
1,262.500 |
859.089 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
613.815 |
642.901 |
577.667 |
|
Total Non-current Liabilities (3) |
2,388.815 |
1,905.401 |
1,436.756 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1,308.801 |
1,215.897 |
1,215.654 |
|
(b) Trade payables |
1,371.317 |
987.705 |
1,290.406 |
|
(c) Other current liabilities |
2,572.298 |
1,964.876 |
871.572 |
|
(d) Short-term provisions |
123.551 |
93.713 |
82.002 |
|
Total Current Liabilities (4) |
5,375.967 |
4,262.191 |
3,459.634 |
|
|
|
|
|
|
TOTAL |
5,033.158 |
4,226.998 |
4,482.569 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
972.116 |
1,074.351 |
1,096.066 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
392.922 |
351.124 |
348.422 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
6.233 |
6.233 |
6.233 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
53.713 |
52.648 |
52.539 |
|
(e) Other Non-current assets |
702.007 |
641.992 |
581.833 |
|
Total Non-Current Assets |
2,126.991 |
2,126.348 |
2,085.093 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1,885.383 |
1,439.119 |
1,597.379 |
|
(c) Trade receivables |
193.725 |
156.613 |
289.246 |
|
(d) Cash and cash equivalents |
582.840 |
323.996 |
341.800 |
|
(e) Short-term loans and advances |
198.082 |
152.495 |
144.323 |
|
(f) Other current assets |
46.137 |
28.427 |
24.728 |
|
Total Current Assets |
2,906.167 |
2,100.650 |
2,397.476 |
|
|
|
|
|
|
TOTAL |
5,033.158 |
4,226.998 |
4,482.569 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
3837.124 |
4042.256 |
3618.524 |
|
|
Other Income |
126.100 |
134.978 |
192.852 |
|
|
TOTAL
(A) |
3963.224 |
4177.234 |
3811.376 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Material Consumed |
3298.150 |
2977.005 |
2974.157 |
|
|
Prior Period Items |
(6.148) |
(2.903) |
(1.480) |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(303.577) |
238.595 |
(291.582) |
|
|
Employees benefits expense |
1113.807 |
1111.074 |
1085.498 |
|
|
Other expenses |
236.586 |
230.490 |
354.907 |
|
|
TOTAL
(B) |
4338.818 |
4554.261 |
4121.500 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (C) |
(375.594) |
(377.027) |
(310.124) |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
325.169 |
286.488 |
354.762 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(700.763) |
(663.515) |
(664.886) |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
104.852 |
105.350 |
103.761 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX AND BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS |
(805.615) |
(768.865) |
(768.647) |
|
|
|
|
|
|
|
|
EXCEPTIONAL
ITEMS - INCOME |
23.998 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(781.617) |
(768.865) |
(768.647) |
|
|
|
|
|
|
|
Less |
TAX
(I) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
(781.617) |
(768.865) |
(768.647) |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
420.456 |
371.840 |
414.112 |
|
|
Spare Parts |
13.285 |
9.007 |
26.305 |
|
|
TOTAL
IMPORTS |
433.741 |
380.847 |
440.417 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
- |
(6.47) |
(6.47) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
Net Profit Margin |
(%) |
(20.37) |
(19.02) |
(21.24) |
|
|
|
|
|
|
|
|
|
Operating Profit Margin |
(%) |
(9.79) |
(9.33) |
(8.57) |
|
|
|
|
|
|
|
|
|
Return on Total Assets |
(%) |
(16.87) |
(19.87) |
(18.62) |
|
|
|
|
|
|
|
|
|
Return on Investment (ROI) |
|
0.29 |
0.40 |
1.86 |
|
|
|
|
|
|
|
|
|
Debt Equity Ratio |
|
(1.15) |
(1.16) |
(5.19) |
|
|
|
|
|
|
|
|
|
Current Ratio |
|
0.54 |
0.49 |
0.69 |
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
1,188.934 |
1,188.934 |
1,188.934 |
|
Reserves & Surplus |
(2,663.005) |
(3,440.594) |
(4,231.624) |
|
Net
worth |
(1,474.071) |
(2,251.660) |
(3,042.690) |
|
|
|
|
|
|
long-term borrowings |
859.089 |
1,262.500 |
1,775.000 |
|
Short term borrowings |
1,215.654 |
1,215.897 |
1,308.801 |
|
Total
borrowings |
2,074.743 |
2,478.397 |
3,083.801 |
|
Debt/Equity
ratio |
(1.407) |
(1.101) |
(1.014) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
3,618.524 |
4,042.256 |
3,837.124 |
|
|
|
11.710 |
-5.075 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR) |
(INR) |
(INR) |
|
Sales |
3,618.524 |
4,042.256 |
3,837.124 |
|
Profit |
(768.647) |
(768.865) |
(781.617) |
|
|
(21.24)% |
(19.02)% |
(20.3)7% |
LOCAL AGENCY FURTHER INFORMATION
LITIGATION
CASE PENDING
|
High Court of Karnataka -Bengaluru Bench |
RFA 1672/2014 |
|
THE CHIEF SECRETARY
TO GOVERNMENT OF KERALA |
Respondent/Defnt.
Name |
THE MYSORE PAPER
MILLS LIMITED |
|||
|
Petnr./Appnt.
Advocate |
GOVERNMENT
ADVOCATE |
Respnt./Defnt.
Advocate |
|||
|
Date Filed |
17/11/2014 |
Classification |
District |
Out Of State |
|
|
Stage |
PENDING FOR ADMISSON |
Last Posted For |
|||
|
Last Action Taken |
Last Date of Action |
Next Hearing Date |
|||
|
Latest Order |
|||||
|
Before Hon'ble Judge/s |
|||||
Lower Court Details
[Appeal from below case.]
|
Case No |
Court Name |
Disposal Dt |
|
O.S. 8052/1998 |
CCH9-XXVII ADDL. CITY CIVIL & SESSIONS
JUDGE BANGALORE |
16/04/2010 |
|
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 |
No |
|
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 |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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
|
Unsecured Loan |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Bonds / debentures |
|
|
|
8.27% Unsecured redeemable Non-Convertible Bonds |
175.000 |
262.500 |
|
8.49% Unsecured redeemable Non-Convertible Bonds |
500.000 |
500.000 |
|
9.65 % Unsecured redeemable Non-Convertible Bonds |
500.000 |
500.000 |
|
8.95% Unsecured redeemable Non-Convertible Bonds |
400.000 |
0.000 |
|
Term loans - |
|
|
|
From Government of Karnataka |
200.000 |
0.000 |
|
|
|
|
|
Short-term
borrowings |
|
|
|
Bonds / debentures |
|
|
|
8.27% Unsecured redeemable Non-Convertible Bonds |
87.500 |
87.500 |
|
Term loans - |
|
|
|
From banks |
80.000 |
80.000 |
|
|
|
|
|
TOTAL |
1942.500 |
1430.000 |
PRODUCTION
PERFORMANCE
It may be noticed
from the above that the production of WPP has decreased by 7.10% from the level
40960 MT to 38052 MT i.e. down by 2908 MT. The quantity wise sale of WPP has
also been decreased by 22.67 % from the level 45927 MT to 35515 MT i.e. down by
10412 MT. The production of NP has been decreased by 14.41 % from the level
45450 MT to 38902 MT i.e. up by 6548 MT. The quantity wise sale of NP has also
been decreased by 25.19% from the level 47208 MT to 35316 MT i.e. down by 11892
MT. The production of paper was decreased by 10.94% from the level of 86410 MT
in FY 2013 to 76954 MT in FY 2014 i.e., down by 9456 MT. Reduction in sale of
paper in quantity from the level of 93135 MT to 70831 MT down by 23.95% i.e
less by 22304 MT and the turnover from Rs 3624.000 Millions to Rs 3157.100
Millions less by Rs.466.900 Millions.
The production of
sugar has gone up by 43.63% due to increase in cane crushing activity from the
level of 182414.67 MT (recovery of 9.28 %) in FY 2013 to 253854.34 MT (recovery
of 9.28 %) in FY 2014. There is an increase in sale of sugar by 36.84 %. The
increase in turnover by 49% due to increase in quantity wise sales and there is
a decrease in net sales realization of sugar from Rs 29214/MT to Rs.29034 /MT
i.e. down by Rs.180/MT. The turnover from Sugar Division was Rs.813.400 Millions compared to Rs. 545.800 Millions in the previous year i.e. up
by 49 %. The total turnover of 2013- 14 has been decreased by Rs 199.300 Millions from the level Rs 4169.800 Millions to Rs 3970.500 Millions i.e. down by 4.78 %.
The Company has
incurred operating loss, Cash loss and Net loss of Rs. 351.600 Millions, Rs.676.800 Millions and Rs.781.600 Millions compared to previous year
losses of Rs. 377.000 Millions,
Rs.663.500 Millions and
Rs.768.900 Millions respectively.
The accumulated
losses at the end of 31.03.2014 stood at Rs.4259.400 Millions with that entire net worth of Rs 2870.900 Millions (including GOK loan of Rs
1010.200 Millions converted in
to equity in 2011-12 and infusion fresh equity of Rs 50.000 Millions in 2011-12, Rs.200.000 Millions in 2012-13 and Rs.400.000 Millions in 2013-14 and Conversion of
Guarantee Commission payable up to 31.03.2013 amounting to Rs.21.800 Millions in 2012-13) has been eroded.
The company has been registered as sick company as case no 601/2012 with BIFR,
the revival scheme has been submitted by M/s Deloitte and same with Board views
sent to Government for its perusal and advice.
STATUS OF BIFR
The company has
been registered as sick company as case No. 601/2012 with BIFR. The draft
revival scheme prepared by M/s. Deloitte Touche Tohmatsu India Private Limited
have been submitted to Government of Karnataka being the promoter of the
Company for their review and comments. The same has also been submitted to the
State Bank of Mysore, Ambedkar Veedhi Branch, Bengaluru, the Operating Agency
appointed by BIFR for their review and comments.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERALL REVIEW
This has been
covered in detail in the Directors’ Report.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
India ranks 15th
among paper producing countries in the world. Total installed capacity in the
country is approximately 12 million tonnes. The per capita consumption of paper
is about 10kg against the world average of 60kg and Asian average of 40kg. The
industry is fragmented with over 700 mills spread across the country. Only 50
Mills have a capacity of 50000 TPA or more. The current demand of 12 million
tonnes is expected to reach 20million tonnes by 2020. With the consistent
growth in the literacy rate and economy, India is rated as the fastest growing
market for paper in the world, with a growth rate of 6% per year. Increase of
per capita paper consumption by 1kg wood increase the demand by about 1.25
million tonnes per year.
The paper industry
divided into four segments namely Newsprint, Writing and Printing Paper (WPP),
Industrial Paper and Specialty Paper. WPP accounts for about 35%, Newsprint
19%, Industrial paper 40% and Specialty Paper 6% of total production. MPM
produces around 40000 MTs of WPP per annum, approximately 0.5% of the total
production of WPP in the country. Presently, MPM produces around 40000 MTs of
Newsprint per annum, approximately 3% of total production of Newsprint in the
country.
The paper industry
is broadly classified into three categories viz., Wood base, Agro base and
Waste Paper base. MPM uses predominantly wood from its captive forest along
with imported chemical pulp. Also, uses Bagasse as a raw material for
production of chemical pulp.
About 35% of the capacity
is located in Northern Region, 30% in the Western Region, 30% in Southern
Region and 5% in the Eastern Region.
OUTLOOK,
OPPORTUNITIES AND CHALLENGES
Newsprint:
MPM has produced
38900 MTs of Newsprint during 2013-14 when compared to 45450 MTs during
2012-13. The net sales realization has increased by 12% when compared to
2012-13 due to better opportunity for domestic Newsprint demand during 1st half
of the financial year 2013-14.
Manufacture and
Sale of Newsprint is totally uneconomical due to steep increase in variable and
fixed cost coupled with lower sales realization. Demand for indigenous
Newsprint mainly depends on uncontrolled imports coupled with dumping, cheaper
price and long-term credit supplies. Hence, as a preventive measures in future
MPM should drastically scale down its Newsprint production and in a phased
manner should discontinue the production of Newsprint in the near future.
Writing, Printing
and Packing Paper:
MPM has produced
36700 MTs of Writing, Printing and Packing Paper during the year 2013-14.
Despite sluggish market opportunity for Writing, Printing and Packing Paper
during 2013-14. MPM was able to sell 34200 MTs of Writing, Printing and Packing
Paper. Out of this MPM was able to sell 16000 MTs of Elegant variety alone
manufactured on PM-IV. The Maharashtra market segment played a significant role
in off-take of more than 8225 MTs of Elegant Paper which was dormant hither to
for years predominantly due to product improvement of Creamwove Elegant to an
acceptable level in the competitive price and quality oriented market.
MPM could also
extend its wing for larger segment of Creamwove market in Andhra Pradesh,
Karnataka, Tamil Nadu apart from Maharashtra and Gujarat only due to acceptable
and better price for Creamwove Elegant. In this endeavour MPM continuous to
expand its market segment for Creamwove Elegant / Maplitho varieties in the
near future with consistent quality and better pricing strategy.
Global paper
consumption is expected to reach 445 million tonnes by 2015. The growth in
developed countries is expected to be flat. The growth in developing country is
expected to provide for an over all growth of 1.5% - 2% per annum. Indian paper
industry market size is estimated at 12 million tonnes, consisting of Writing,
Printing and Packing Paper 4.2 million tonnes, Newsprint 2.3 million tonnes,
Industrial Papers 4.85 million tonnes, and Specialty Paper 0.65 million tonnes.
In the printing
and writing paper segment, unquoted variety constitute 3.52 million tonnes and quoted
varieties 0.68 million tonnes. Within the unquoted varieties, Creamwove Papers
constitute 50% and surface sized grades account for the balance 50%.
Between 2008 and
2011, paper production capacity increased by about 1.50 million tonnes,
approximately 60% over the capacity in 2007 against the demand growth of about
8% per annum. Supplies were in excess of demand during 2011 and 2012. Paper
prices therefore declined steeply during this year and continuing till date.
Raw material
shortages, ever rising input cost, strict environment regulations, high capital
cost and lower capital turn-over ratio besides liberal imports without custom
duty / anti dumping duty are the serious trade barriers in the industry.
However, due to capacity addition, liberal imports from Indonesia, Japan and
China, diversion of export material into domestic market etc., have contributed
for excess supplies over demand. Consequently, prices are steeply declining in
the trade.
Sugar:
The Sugar production
in the country for 2013-14 was 238 lakh tonnes, when compared to 251 lakhs
tonnes in 2012-13. While on the above, Sugar production in MPM is in the order
of 24675 MTs in 2013-14. This shows that MPM has produced 44% higher over the
production of previous year mainly due to increased availability of Sugar cane
and prompt payment to Farmers.
Presently, as per
the GOK order the entire production of Sugar ought to be handed over to Food,
Civil and Consumer Affairs Dept. for their onward distribution under PDS scheme
at the price fixed by GOK.
INTERNAL CONTROL
SYSTEMS & THEIR ADEQUACY
The company has
in-house internal audit system, and is also availing the services of auditors
to review the internal control systems and its adequacy. The company has over
the years been successful in implementing proper systems in internal controls
in order to ensure that all the assets and properties of the company are
economically utilized. The internal control system is devised in such a way
that the financial and other are reliable for preparing financial statements
and other data for maintaining accountability of assets. The reports of both
in-house internal audit and auditors are reviewed by the Audit Committee from
time to time.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
ADDRESS |
Service Request
Number (SRN) |
|
1 |
10262813 |
06/12/2010 |
50,000,000.00 |
Canara Bank |
CUNNINGHAM ROAD BRANCH,MARUTHI MANSION, 19/7,
CUNNINGHAM ROAD, BANGALORE, KARNATAKA - 560052, INDIA |
B04457602 |
|
2 |
10168008 |
10/06/2009 |
120,000,000.00 |
STATE BANK OF
MYSORE |
DR. AMBEDKARVEEDHI BRANCH,, RAJBHAVAN
ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
A66170507 |
|
3 |
10168407 |
10/06/2009 |
460,000,000.00 |
STATE BANK OF
MYSORE |
DR. AMBEDKARVEEDHI BRANCH,, RAJBHAVAN
ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
A66374810 |
|
4 |
10166762 |
01/06/2009 |
54,000,000.00 |
STATE BANK OF
INDIA |
INDUSTRIAL FINANCE BRANCH,, RESIDENCY PLAZA,
RESIDENCY ROAD,, BANGALORE, KARNATAKA - 560025, INDIA |
A65727281 |
|
5 |
10144288 |
02/02/2009 |
60,434,000.00 |
STATE BANK OF
MYSORE |
DR. AMBEDKAR VEEDHI BRANCH, BANGALORE,
KARNATAKA -560001, INDIA |
A57369183 |
|
6 |
80042543 |
22/02/2008 * |
85,800,000.00 |
CANARA BANK HEAD
OFFICE |
ET AND T SECTION, B.S.E. TOWERS, 51, 1ST
CROSS,,J.C. ROAD, BANGALORE, KARNATAKA - 560027, INDIA |
A33606419 |
|
7 |
80013113 |
25/08/2006 * |
455,000,000.00 |
CANARA BANK |
HEAD OFFICE, ETT SECTION, 51, STOCK EXCHANGE
TOWERS, 1ST CROSS, J.C.ROAD, BANGALORE, KARNATAKA - 560027, INDIA |
A05203088 |
|
8 |
80041880 |
17/05/2006 * |
188,903,000.00 |
IFCI LIMITED |
NARASIMHARAJA SQUARE, 3, CUBBONPET MAIN
ROAD,, POST BOX NO.6914,, BANGALORE, KARNATAKA - 560002, INDIA |
A32155442 |
|
9 |
80025053 |
30/03/2006 * |
885,300,000.00 |
State Bank of
Mysore |
DR. AMBEDKAR VEEDHI BRANCH, BANGALORE,
KARNATAKA -560001, INDIA |
A11919032 |
|
10 |
80024699 |
30/01/2010 * |
1,250,000,000.00 |
State Bank of
Mysore |
DR. AMBEDKAR VEEDHI BRANCH,,
VISHVESHVARAYYA TOWERES, OPP. GPO RAJBHAVAN ROAD, BANGALORE, KARNATAKA-
560001, INDIA |
A79201034 |
|
11 |
80063635 |
01/05/1939 |
300,000.00 |
IMPERIAL BANK OF
INDIA |
BANGALORE, KARNATAKA - 560001, INDIA |
- |
* Date of charge modification
FIXED ASSETS
- Land
- Leasehold
- Building
- Railway
Siding
- Plant and
Equipments
- Furniture and
Office Equipment
- Vehicles
- Earth Moving
Equipments
UNAUDITED FINANCIAL
(PROVISIONAL) RESULTS FOR THE QUARTER ENDED SEPTEMBER 2014.
(Rs. In Millions)
|
Part |
|
QUARTER ENDED |
HALF YEAR ENDED |
|
|
I |
PARTICULARS |
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
1 |
Income from Operations |
(Un Auditedl) |
(Un Auditedl) |
(Un Auditedl) |
|
|
a) Revenue from operations Net of Excise Duty(gross) |
790.300 |
1229.300 |
2019.500 |
|
|
b) Other Operating Income(Net) |
25.000 |
34.700 |
59.700 |
|
|
Total Income from Operations (Net) |
815.300 |
1264.000 |
2079.200 |
|
|
|
|
|
|
|
2 |
Expenses |
|
|
|
|
|
a) Cost of Materail Consumed |
604.700 |
579.000 |
1183.800 |
|
|
b) Changes in inventories of finished goods, work-in-progressand Stock
in trade. |
(10.000) |
460.000 |
450.000 |
|
|
c) Employee Cost |
300.400 |
263.400 |
563.800 |
|
|
d) Depreciation & Amortisation |
26.200 |
26.200 |
52.400 |
|
|
e) Other Expenses |
62.100 |
93.400 |
155.400 |
|
|
f) Prior Perild Expenses |
0.000 |
0.000 |
0.000 |
|
|
Total Expenses |
983.400 |
1422.000 |
2405.400 |
|
3 |
Profit from operations before other income, finance costs and
Exceptional items (1-2) |
(168.100) |
(158.000) |
(326.200) |
|
4 |
Other Income |
0.000 |
0.000 |
0.000 |
|
5 |
Profit from ordinary activities before finance cost and Exceptional
items (3-4) |
(168.100) |
(158.000) |
(326.200) |
|
6 |
Finance Cost |
67.400 |
79.000 |
146.400 |
|
7 |
Profit from ordinary activities after finance cost but |
0.000 |
0.000 |
0.000 |
|
|
before exceptional items (5-6) |
(235.500) |
(237.000) |
(472.600) |
|
8 |
Exceptional items |
|
|
|
|
9 |
Profit from ordinary activities before tax. (7-8) |
(235.500) |
(237.000) |
(472.600) |
|
10 |
Tax Expenses |
|
|
|
|
|
Current Tax |
0.000 |
0.000 |
0.000 |
|
|
Deferred Tax |
0.000 |
0.000 |
0.000 |
|
11 |
Net profit / (Loss) for the period (9-10) |
(235.500) |
(237.000) |
(472.600) |
|
12 |
Paid up Share Capital |
1188.934 |
1188.934 |
1188.934 |
|
13 |
Reserves Excluding Revaluation Reserve |
0.500 |
0.500 |
0.500 |
|
14 |
Earnings Per Share Before Extr- Ordinary Item (a) Basic (Rs.) |
(1.98) |
(1.99) |
(3.97) |
|
|
(b) Diluted(Rs.) |
(1.95) |
(1.97) |
(3.92) |
|
|
|
|
|
|
|
15 |
Earnings Per Share after Extr- Ordinary Item (a)
Basic (Rs.) |
(1.98) |
(1.99) |
(3.97) |
|
|
(b) Diluted(Rs.) |
(1.95) |
(1.97) |
(3.92) |
|
Part |
Particulars of Share Holding |
|
|
|
|
II |
Public Share Holding |
|
|
|
|
|
(a) No. of Shares ( Rs 10/- Each) |
41922238 |
41873738 |
41873738 |
|
|
(b)Percentage of share holding |
35.26 |
35.22 |
35.22 |
|
|
Promoters and promoters group |
|
|
|
|
18 |
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered - Number of Shares |
- |
- |
- |
|
|
Percentage of Shares (as a % of total share - holding of promoter and
promoter group) |
- |
- |
- |
|
19 |
Percentage of Shares (as a % of the total share - capital of the
company) |
- |
- |
- |
|
|
b) Non-encumbered - Number of Shares |
76971094 |
77019694 |
77019694 |
|
|
Percentage of Shares (as a % of total share - holding of promoter and
promoter group) |
100 |
100 |
100 |
|
|
Percentage of Shares (as a % of the total share - capital of the
company) |
64.74 |
64.78 |
64.78 |
QUARTERLY REPORTING (PROVISIONAL) OF SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF LISTING
AGREEMENT. Rs. Millions
|
|
PARTICULARS |
QUARTER ENDED |
HALF YEAR ENDED |
|
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
(Un Auditedl) |
(Un Auditedl) |
(Un Auditedl) |
|
1 |
SEGMENT REVENUE
(Net Sales) |
|
|
|
|
|
a. Paper |
797.300 |
783.100 |
1583.800 |
|
|
b. Sugar |
18.000 |
480.900 |
495.400 |
|
|
|
|
|
|
|
|
Less : Internal Segment Revenue |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Net Sales
/Income from Operation |
815.300 |
1264.000 |
2079.200 |
|
2 |
SEGMENT RESULTS |
|
|
|
|
|
(Profit(+)/Loss(-) Before Interest &
Tax |
|
|
|
|
|
a. Paper |
(135.900) |
(24.600) |
(148.800) |
|
|
|
|
|
|
|
|
b. Sugar |
(32.200) |
(133.400) |
(177.300) |
|
|
|
|
|
|
|
|
Sub Total |
(168.100) |
(158.000) |
(326.200) |
|
|
Less :Interest |
67.400 |
79.000 |
146.400 |
|
|
|
|
|
|
|
|
Total Profit(+)/Loss(-)
Before Tax |
(235.500) |
(237.000) |
(472.600) |
|
3 |
Capital Employed |
|
|
|
|
|
(Segment
Asset-Segment Liability) |
|
|
|
|
|
a. Paper |
831.400 |
1054.800 |
831.400 |
|
|
b. Sugar |
103.600 |
115.700 |
103.600 |
|
|
|
|
|
|
|
|
Total Capital
Employed in segments |
935.000 |
1170.500 |
935.000 |
|
|
ADD : Unallocatted Corporate asset over |
|
|
|
|
|
Corporate liability (Accumulated Loss) |
4732.000 |
4496.400 |
4732.000 |
|
|
|
|
|
|
|
|
Total Capital
Employed in company |
5666.900 |
5666.900 |
5666.900 |
|
Notes : i ) Management has identified two
reportable business segments, namely : |
|
- Paper - Comprising of writting and printing paper and Newsprint. |
|
- Sugar - Sugar |
|
ii) Inter segment Revenue- Bagasse
generated in the process of production of sugar has been valued at
equated cost of has been valued at equated cost of Raw material ie
(Sugar Cane) raw material i.e., ( Sugar cane ) |
|
iii) The above results are subject to
Limited Review by Statutory Auditors. |
|
iv) Previous period / year figures have been
regrouped / reclassified wherever considered necessary to facilitate
comparision. |
|
v) Government of Karnataka vide GO letter No:
CI/86/CPM/2011 Dated 19.12.2011has infused Rs 50.000 Millions fresh Equity
capital and the same has been shown in the books as share application money. |
|
vi) Government of Karnataka vide GO letter No: CI/86/CPM/2011
Dated 31.03.2012 has accorded for conversion of loan of Rs. 1010.200
Millions into equity and the same has been accounted as share application
money. |
|
vii) The above financial results were reviewed by
Audit Committee and approved by the Board in their respective meeting held on
18.11.2014. |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
|
1 |
Rs.95.57 |
|
Euro |
1 |
Rs.71.01 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
- |
|
PAID-UP CAPITAL |
1~10 |
- |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILITY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
- |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
-- |
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.