MIRA
INFORM REPORT
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Report No. : |
302498 |
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Report Date : |
17.01.2015 |
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 : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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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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IEC No.: |
Not Available |
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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
: |
2300 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (47) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11800000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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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 2014. 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
reported to be 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term banking facilities: AA (SO) |
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Rating Explanation |
High degree of safety and very low credit
risk. |
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Date |
October 8, 2013 |
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Rating Agency Name |
CARE |
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Rating |
Short term banking facilities: A1+ (SO) |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
October 8, 2013 |
RBI DEFAULTER’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTER’ 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
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Registered Office/ Factory 1 : |
Rajahmundry, East Godavari
District Hyderabad – 533105, Andhra Pradesh, India |
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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. 27.08.2014
|
Name : |
Mr. W. Michael Amick Jr. |
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Designation : |
Executive Chairman |
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Name : |
Mr. Rampraveen Swaminathan |
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Designation : |
Managing Director and CEO |
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Name : |
Mr. Thomas G. Kadien |
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Designation : |
Director |
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Name : |
Mr. M.S. Ramachandran |
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Designation : |
Independent Director |
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Name : |
Mrs. Ranjana Kumar |
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Designation : |
Independent Director |
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Name : |
Mr. M.K. Sharma |
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Designation : |
Independent Director |
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Name : |
Mr. Milind Sarwate |
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Designation : |
Independent Director |
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Name : |
Mr. Adhiraj Sarin |
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Designation : |
Independent Director |
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Name : |
Mr. Brett Allen Mosley |
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Designation : |
Director |
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Name : |
Ms. Shela P. Vinczeller |
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Designation : |
Director |
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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 |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
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. 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 |
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Name : |
Mr. P. Sreenivas |
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Designation : |
Chief Information Officer |
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Designation : |
Mr. Badrinath Chellappa |
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Name : |
Vice President & CFO (from May 1, 2014) |
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Name : |
Mr. Yogesh Jain |
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Designation : |
Associate Vice President (Purchase & Commercial) |
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 |
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|
29827529 |
75.00 |
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|
29827529 |
75.00 |
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Total
shareholding of Promoter and Promoter Group (A) |
29827529 |
75.00 |
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(B) Public
Shareholding |
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|
200 |
0.00 |
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|
45960 |
0.12 |
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|
1191053 |
2.99 |
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|
283005 |
0.71 |
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|
150 |
0.00 |
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|
150 |
0.00 |
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|
1520368 |
3.82 |
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|
3239028 |
8.14 |
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|
3174266 |
7.98 |
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|
1862307 |
4.68 |
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|
146541 |
0.37 |
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|
20832 |
0.05 |
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|
33009 |
0.08 |
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|
90700 |
0.23 |
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Foreign Nationals |
2000 |
0.01 |
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|
8422142 |
21.18 |
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Total Public
shareholding (B) |
9942510 |
25.00 |
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Total (A)+(B) |
39770039 |
100.00 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
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|
0 |
0.00 |
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0 |
0.00 |
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|
0 |
0.00 |
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Total
(A)+(B)+(C) |
39770039 |
100.00 |
(1) Indian
Bodies Corporate
Foreign Bank
BUSINESS DETAILS
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Line of Business : |
Manufacture and sale of pulp, paper and paper board. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
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Products : |
Not Available |
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Countries : |
Not Available |
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Imports : |
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Products : |
Not Available |
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Countries : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
2300 (Approximately) |
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Bankers : |
·
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 : |
(Rs. In Millions)
Notes : 1. a. Term loans availed from various banks and other parties aggregating to Rs. 9,06.255 Millions [March 31, 2013: Rs.16,76.039 Millions] are secured by a pari passu first charge on all the movable and immovable properties of the Company situated at Rajahmundry, Kadiyam and Serinarasannapalem, and Term Loan III is further secured by a charge on current assets of the Company. These term loans are availed at interest rates ranging from 10.00% to 12.50%, except for Term Loan I at six month Libor plus 300 basis points. b. These term loans from banks are repayable as under:Term Loan I: Rs.70.032 Millions (March 31, 2013: Rs.88.833 Millions) repayable in five half-yearly installments of Rs.14.006 each.Term Loan II: Rs.79.929 Millions (March 31, 2013: Rs.1,59.930 Millions) repayable in one annual installment of Rs.79.929 Millions.Term Loan III: Rs.4,76.667 Millions (March 31, 2013: Rs.7,23.333 Millions) repayable in thirteen quarterly installments of Rs.366.67 each.Term Loan IV: `Nil (March 31, 2013: Rs.1,29.375 Millions) repayable in fifteen quarterly installments of Rs.8.625 Millions each. The entire amount has been pre-paid during the year. c. Term loans from other parties represents term loans availed from foreign financial institutions, aggregating Rs.2,79.627 Millions (March 31, 2013: Rs.574.568 Millions) is availed at six month Libor plus 250 basis points. These term loans are repayable as under:Term Loan I: Rs.279.627 Millions (March 31, 2013: Rs.5,06.767 Millions) repayable in two semi-annually installments of Rs.1,39.814 Millions each.Term Loan II: `Nil (March 31, 2013: Rs.67.801 Millions). The entire amount has been re-paid during the year. c.The Company has availed unsecured term loans from banks aggregating to Rs.25,82.500 Millions (March 31, 2013: Rs.14,82.500 Millions) and are secured by Letter of Comfort from International Paper Company, USA, the ultimate holding company, at interest rates ranging from 9.00% to 11.50%. These term loans are repayable as under: a. Term Loan I: Rs.6,82.500 Millions (March 31, 2013: Rs.6,82.500 Millions) 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.10,00.000 Millions (March 31, 2013: Rs.4,00.000 Millions) is payable in 3 unequal installments at the end of 24, 30 and 36th month. c. Term Loan III: Rs.9,00.000 Millions (March 31, 2013: Rs.4,00.000 Millions) has a tenor of 18 months, which is renewable automatically for a successive period of 18 months, subject to consent of both the parties. |
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Auditors : |
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Name : |
Deloitte Haskins and Sells, Chartered Accountant |
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Address : |
Hyderabad, Andhra Pradesh, India |
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Name : |
Narasimha Murthy and Company Cost Accountant |
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Address : |
Hyderabad, Andhra Pradesh, India |
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Ultimate holding company: |
International Paper Company, USA |
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Holding company: |
IP Holding Asia Singapore PTE. Limited, Singapore |
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Subsidiary Company : |
IP India Foundation |
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Fellow subsidiaries where transactions exists : |
· International Paper (India) Private Limited · International Paper Incorporation., TN USA · International Paper Procurement (Shanghai) Limited · International Paper Investment (Shanghai) Limited · International Paper USA, Memphis · IP Singapore Holding PTE Limited · International Paper Nordic Sales Company |
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Entity where the Company is in a position to exercise control : |
The Employee's Provident Fund of The Andhra Pradesh Paper Mills Limited |
CAPITAL STRUCTURE
As on. 31.03.2014
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 |
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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 |
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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 31.03.2014 |
|
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 |
31.03.2014 |
31.03.2013 |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
397.700 |
397.700 |
397.700 |
|
(b) Reserves & Surplus |
3754.307 |
4170.428 |
4407.451 |
|
(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) |
4152.007 |
4568.128 |
4805.151 |
|
|
|
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(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3917.125 |
3218.435 |
3520.954 |
|
(b) Deferred tax liabilities (Net) |
1086.921 |
1243.163 |
1216.670 |
|
(c) Other long term liabilities |
2.384 |
9.894 |
25.423 |
|
(d) long-term provisions |
0.000 |
1.851 |
0.000 |
|
Total Non-current Liabilities (3) |
5006.430 |
4473.343 |
4763.047 |
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(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1076.330 |
548.053 |
327.958 |
|
(b) Trade payables |
1460.481 |
1042.024 |
1222.738 |
|
(c) Other current
liabilities |
1485.225 |
1444.097 |
1436.501 |
|
(d) Short-term provisions |
0.000 |
0.000 |
17.660 |
|
Total Current Liabilities (4) |
4022.036 |
3034.174 |
3004.857 |
|
|
|
|
|
|
TOTAL |
13180.473 |
12075.645 |
12573.055 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
8727.901 |
8162.156 |
8064.807 |
|
(ii) Intangible Assets |
38.277 |
46.566 |
1.252 |
|
(iii) Capital
work-in-progress |
97.942 |
223.718 |
612.136 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
154.337 |
160.264 |
160.534 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
653.187 |
870.073 |
552.967 |
|
(e) Other Non-current assets |
1.333 |
0.000 |
0.000 |
|
Total Non-Current Assets |
9672.977 |
9462.777 |
9391.696 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2076.433 |
1447.931 |
2119.177 |
|
(c) Trade receivables |
583.546 |
455.788 |
352.595 |
|
(d) Cash and cash
equivalents |
157.780 |
165.640 |
241.541 |
|
(e) Short-term loans and
advances |
664.304 |
533.867 |
452.411 |
|
(f) Other current assets |
25.433 |
9.642 |
15.635 |
|
Total Current Assets |
3507.496 |
2612.868 |
3181.359 |
|
|
|
|
|
|
TOTAL |
13180.473 |
12075.645 |
12573.055 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10916.519 |
12305.035 |
5952.276 |
|
|
|
Other Income |
132.528 |
231.126 |
63.749 |
|
|
|
TOTAL |
11049.047 |
12536.161 |
6016.025 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4650.997 |
3764.935 |
1929.214 |
|
|
|
Purchases of Stock-in-Trade |
71.611 |
60.235 |
7.674 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(315.769) |
794.958 |
(822.210) |
|
|
|
Employees benefits expense |
1081.660 |
1123.385 |
656.608 |
|
|
|
Other expenses |
4820.786 |
5404.981 |
3509.117 |
|
|
|
TOTAL |
10309.285 |
11148.494 |
5280.403 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
739.762 |
1387.667 |
735.622 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
433.860 |
553.625 |
361.034 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
305.902 |
834.042 |
374.588 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
870.149 |
879.372 |
506.213 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL
ITEMS |
0.000 |
161.932 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
564.247 |
(207.262) |
(131.625) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(148.126) |
29.761 |
846.497 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
(416.121) |
(237.023) |
(978.122) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
766.985 |
1174.759 |
213.932 |
|
|
TOTAL EARNINGS |
766.985 |
1174.759 |
213.932 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
755.252 |
527.584 |
339.551 |
|
|
|
Stores & Spares |
421.774 |
421.895 |
170.842 |
|
|
|
Capital Goods |
541.948 |
121.652 |
64.379 |
|
|
|
Others |
35.574 |
2.130 |
0.000 |
|
|
TOTAL IMPORTS |
1754.548 |
1073.261 |
574.772 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.46 |
(5.96) |
(24.59) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.12.2011 |
|
Net Profit Margin PAT / Sales |
(%) |
(3.81) |
(1.93) |
(16.43) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/ Sales) |
(%) |
6.78 |
11.28 |
12.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.36) |
(1.77) |
(1.12) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.14) |
(0.05) |
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.20 |
0.82 |
0.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.87 |
0.86 |
1.06 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
397.700 |
397.700 |
397.700 |
|
Reserves & Surplus |
4407.451 |
4170.428 |
3754.307 |
|
Net
worth |
4805.151 |
4568.128 |
4152.007 |
|
|
|
|
|
|
long-term borrowings |
3520.954 |
3218.435 |
3917.125 |
|
Short term borrowings |
327.958 |
548.053 |
1076.330 |
|
Total
borrowings |
3848.912 |
3766.488 |
4993.455 |
|
Debt/Equity
ratio |
0.801 |
0.825 |
1.203 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2011 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
5952.276 |
12305.035 |
10916.519 |
|
|
|
106.728 |
(11.284) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
5952.276 |
12305.035 |
10916.519 |
|
Profit |
(978.122) |
(237.023) |
(416.121) |
|
|
(16.43%) |
(1.93%) |
(3.81%) |
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---- |
|
22] |
Litigations that the firm / promoter involved in |
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 |
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 |
UNSECURED LOAN
(Rs. In Millions)
|
UNSECURED LOAN PARTICULAR |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
Long Term
Borrowing |
|
|
|
Term loans from banks (Note 1) |
2582.500 |
1482.500 |
|
Deferred payment liabilities (Note 3) |
320.606 |
355.994 |
|
Fixed deposits from public (Note 4) |
0.000 |
4.455 |
|
Loan from a related party (Note 5) |
642.000 |
407.175 |
|
Short Term
Borrowing |
|
|
|
Loans repayable on demand from banks (Note 2) |
813.482 |
219.924 |
|
Fixed deposits from public (Note 4) |
4.375 |
30.280 |
|
Total |
4362.963 |
2500.328 |
NOTE:
1. The Company has availed working capital demand loans/cash credit facilities from certain banks, at interest rates ranging from 9.50% to 12.00% during the year. The outstanding as at the Balance Sheet date aggregates Rs.2,58.473 Millions (March 31, 2013: Rs.2,97.849 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, the ultimate holding company.
2. The Company has unsecured short-term loans/working capital demand loans/cash credit facilities/buyers credit from certain banks, at interest rates ranging from 8.25% to 11.25% during the year. The outstanding as at the Balance Sheet date aggregates Rs.8,13.482 Millions (March 31, 2013: Rs.2,19.924 Millions).
3. Deferred payment liabilities represent 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 availment. These are interest free loans. An amount of Rs.38.693 Millions (March 31, 2013: Rs.13.316 Millions) 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.
4. 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.4.520 Millions (March 31, 2013: Rs.34.880 Millions) of which `Nil (March 31, 2013: Rs.4.455 Millions) is repayable beyond one year and Rs.4.375 Millions (March 31, 2013: Rs.30.280 Millions) is repayable within next twelve months.Unclaimed public deposits of Rs.0.145 Millions (March 31, 2013: Rs.0.145 Millions) is included under the head ‘Unpaid matured deposits and interest accrued thereon’ disclosed under Note 7B - Other current liabilities.
5. The Company availed an unsecured loan from IP Holding Asia Singapore Pte. Limited, the holding company, aggregating Rs.7,49.000 Millions (March 31, 2013: Rs.4,07.175 Millions) at Libor plus 250 basis points. Loan is repayable in seven half yearly installments commencing from December 31, 2014.
PERFORMANCE OF THE
COMPANY
Your Company adopted the following strategic principles:
a. Become the low cost producer;
b. Customer support excellence;
c. World class operations & focus on safety, environment and productivity;
d. Optimize footprint to grow in printing and writing segment.
During the financial year ended March 31, 2014, the Company continued to execute initiatives focused on these
Principles. These initiatives will continue to create long term value for our stakeholders and help position your
Company as a leading supplier of premium grade products in the Indian market.
The past two years have witnessed significant challenges for the paper industry in India. A soft economic environment, combined with significant escalations in fiber costs, depreciation of the rupee (versus the US Dollar)
and inflation has resulted in cost headwinds which have been challenging.
During the financial year ended March 31, 2014, your Company recorded:
a. paper production of 210,584 MT as against 258,202 MT for the previous 15 month period ended March 31, 2013;
b. revenue of Rs.10916.500 Millions from net sale of paper as against Rs.12305.000 Millions for the
Previous 15 month period ended March 31, 2013;
c. sales of 208,089 MT as compared to 279,093 MT in the fifteen month period January 2012 - March 2013.
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 16,748 MT as against 37,819 MT for the previous 15 month period ended March 31,
2013. There was substantial increase in sales realisation per MT over the previous period;
e. EBIDTA of Rs.739.800 Millions as against Rs.1387.700 Millions;
f. a loss of Rs.416.100 Millions in view of longer outage at Unit: Rajahmundry, rupee depreciation, adverse
fiber price and product mix and delay in consents. The outage, completed without any LIFE incident, resulted in quarterly downtime of 24 hours in recovery boiler. The critical issue of electric overhead travelling cranes in respect of Paper Machine # 2, 3 & 5 was addressed by renovation.
AWARDS/CERTIFICATIONS
The Company received 'Special Export Award' for 2011-12, in recognition of its achievement in respect of paper
and paperboard, as export sale increased by 19.14% as compared to the previous financial year 2010-11. The award was presented on December 26, 2013 by Dr. E.M. Sudarsana Natchiappan, Hon'ble Minister of State for
Commerce and Industry, Government of India, at the export award presentation function organized by CAPEXIL
at Kolkata.
RAW MATERIAL
PROCUREMENT
The Company's concerted efforts, in stiff competitive environment, has been able to meet 100% requirement of pulpwood from local farmers and was able to source major part of raw material primarily within 350 kms radius With in Andhra Pradesh.
During the last year, 204.800 million quality saplings (around 27% increase over the last year) were distributed covering an area of 28,019 hectares under plantation, as against development and distribution of 161.30 million seedlings covering an extent of 22,975 hectares during the previous 2012 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 has been taken at a wider perspective through a collaborative project with Institute of
Forest Genetic & Tree Breeding, Coimbatore, Tamilnadu. We are introducing more farmer-friendly demonstration
plots and other cost reduction measures in qualitative and quantitative production processes. In addition, the initiatives with high yielding, short rotation planting stock will enhance raw material availability, spread over 1,84,000 hectares. These have created a pool of about 91.75 million man-days especially in rural areas, so far.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL SCENARIO
Pulp, paper and board totalling 400 million metric tons is produced on all continents. The largest producer countries, US, China, Japan and Canada, make up more than half of the world's production. Asia Pacific is turning dominant in the industry due to improvement in changing lifestyle of consumers, rapid urbanization, and rise in disposable income. A combination of factors such as demographic and economic conditions, and environmental regulations has had a significant impact on the industry dynamics. Paper consumption is forecasted to increase to 490 million tons by 2020.
Celulose based paper and packaging has been an integral part of our cultural development and is essential for modern life, helps to raise the levels of literacy worldwide and plays an important role in protecting goods and foodstuffs during transit.
It is a versatile product with many end uses varying from household papers, graphic and office papers to medical papers. 50% of the paper and board produced globally is used for packaging. Writing & printing paper makes the second largest market for paper. Half the global paper is consumed in Europe and North America.
Pulp and paper is primarily made out of wood fibers originating from natural forests or pulpwood plantations. Recycled fiber and other fiber sources such as agricultural residue are also utilized and recycled fiber is becoming more commonly used in pulp and paper making.
Recent trend shows, several global pulp and paper companies are moving their production to the southern hemisphere due to lower production costs and proximity to fast growing pulpwood plantations. Adoption of responsible pulpwood plantation practices is another dynamic that is getting the attention of producers. Pulp and paper production often provides well needed jobs in many areas where other employment opportunities are limited.
Paper is made from renewable resources, and responsibly produced and used paper has many advantages over non-renewable alternative materials. Responsible production also minimizes harmful impact on forests, climate, and water. The industry in general has been in the forefront of stewardship to bring about sustainable forestry, clean pulp and paper manufacturing, and promote responsible paper consumption. The pulp and paper industry priorities can be summarized as follows:
● Wood fiber is grown, sourced and re-used in a responsible way. Maximizing the use of recycled fibers and sourcing virgin fiber from credibly certified natural forests and plantations is tending to reduce paper's ecological footprint.
● With the use of clean technology, the manufacturing process does minimize pulp and paper products' impact on climate change and water. Carbon dioxide emissions from the manufacturing process is being reduced by investing in new plants, retrofitting existing plants, heat recovery and increased paper recycling.
● Sustainable consumption practices help to reduce the environmental impact of paper.
INDIAN PAPER INDUSTRY
In this 140 year old paper industry, the first paper mill is known to have been established way back in 1867. According to an estimate, the paper industry has over 800 units engaged in the manufacture of paper, paperboards and newsprint across the country. The geographical spread of the industry as well as market is mainly responsible for regional balance of production and consumption. There is near self-sufficiency with the indigenous production of most varieties of paper and paperboards. Certain varieties of specialty papers are, however, imported.
The industry grew with the rising level of literacy, improving well-being of the people and surging aspiration levels. Paper usage has increased over the years. Yet, the per capita consumption in the country is estimated to be barely 9.3 kgs compared with 75 kgs in China, 158 kgs each in European Union, Korea, Taiwan, Hong Kong, Singapore & Malaysia, 218 kgs in Japan, 224 kgs in North America, and the global average itself is a healthy 55 kgs.
India has 17% of the world's population yet accounts for only about 3% of the world's production of paper and paperboard. The estimated turnover of the industry is Rs.358000.000 Millions approximately and provides employment to more than 370,000 people directly and 1,300,000 indirectly.
Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern. The mills use a variety of raw material viz. wood, bamboo, recycled fiber, bagasse, wheat straw, rice straw, etc.; approximately 35% are based on chemical pulp, 44% on recycled fiber and 21% on agro-residues.
India's wood resources suitable for paper production are inadequate. Cost of wood is hence much higher in comparison to the rest of the world. Since there is conspicuous absence of enabling policies favoring corporate plantation or farming, securing future wood supplies will be the industry's biggest challenge. Wood based segment of the paper industry meets its current wood requirements mainly through social/farm forestry and supplements it with purchases from the state forest development corporations. A few manufacturers have even explored import of raw wood from neighboring countries.
The paper industry in India is majorly categorized in to writing and printing (W&P), paperboard and newsprint segments. Paperboards constitute approximately 46% of the demand volume, while W&P accounts for approximately 31%. Newsprint makes for another 18%.
Major varieties of W&P are creamwove, maplitho, copier and coated paper. Recent trends indicate higher quality paper segments such as copier and coated varieties have been gaining volumes, while creamwove has a stable market. Maplitho, copier and coated paper command higher realizations, while creamwove is a volume runner. According to industry estimates, creamwove commands 44% of the W&P market, maplitho occupies 22% and copiers constitute the balance 34%.
Paperboard, primarily used for industrial purposes, consists of kraft paper, virgin board and recycled board. Kraft paper is produced in several varieties generally differentiated by properties of strength and grammage. Paperboard varieties include coated/uncoated duplex, chromo and triplex boards.
Cost competitiveness has differentiated the performance of paper mills, largely affected by location of the mills. Successful mills have been located near source of raw material i.e. wood as well as near source of coal, water and skilled labor. Availability and cost of power had also had a bearing on the performance of paper mills.
So far, the growth in paper industry has mirrored the growth in GDP. India is the fastest growing market for paper globally and it presents an exciting scenario; the operating capacity of the industry currently stands at 13.10 million tons. Of these, paperboard production is about 5.9 million tons, W&P constitutes 4.1 million tons and newsprint makes for 2.5 million tons. Amongst W&P, uncoated paper accounts for 84% or about 3.45 million tons (including creamwove 1.78 million tons; maplitho 0.90 million tons and copier 0.77 million tons) and the balance 16% is made up of coated paper (art board, art paper and chrome paper).
Paper consumption is poised for a big leap forward in sync with growing emphasis on education and literacy, along with the expected resurgence in the economy and is estimated to touch 13.95 million tons by 2017-18. While W&P is expected to reach 5.2 million tons, robust growth is expected in the copier variety which is likely to climb from the present 0.77 million tons to 1.25 million tons. Similarly, paperboard production is estimated to increase from the present 5.9 million tons to 7.6 million tons by 2017-18 with improved FMCG sales, wider reach of organized retail, penetration of healthcare in to the rural economy, sustained demand for packaged products in line with rising aspiration levels and changed lifestyles.
Growth in paper consumption anecdotally is correlated to the growth in GDP and hence an increase in consumption by one kg per capita on a 100 basis point increase in GDP, would lead to an increase in demand of 1 million ton. With growth in GDP and increase in literacy, paper consumption in India is bound to go up. In fact, consumption in India is estimated to double by 2020.
CORPORATE INFORMATION
International Paper APPM Limited ("IPAPPM"/"the Company") formerly known as The Andhra Pradesh Paper
Mills Limited 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 of 75% 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 International Paper APPM Limited (formerly 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
In its bid to gain momentum, the endeavor of the Company has been to adopt strategic principles that enhance long-term performance. The Company strived to become the low cost producer; fine tune customer support processes and systems to add excellence in delivery; focus on safety, environment and productivity to benchmark with global standards; and expand in printing and writing segments to be a leading supplier of premium grade products in the Indian market.
The environment was challenging, yet IP APPM produced of 210,584 MT of paper in the 12-months ended March 2014 as against 258,202 MT for the previous 15 month period ended March 31, 2013. Sales volume was 208,089 MT as compared to 279,093 MT in the fifteen month period January 2012-March 2013. Upward price revisions
across all grades were made and together with a change in the product mix, the Company earned a higher Net Sales Realization per MT of about 19.90% at `55,834.
There was 17% increase in export realisation per MT at `51,913 for the year over the previous period. The volume however, was lower at 16,748 MT as against 37,819 MT for the previous 15 month period ended March 31, 2013.
The net revenue from operations of Rs.10916.500 Millions from sale of paper is favorably comparable to Rs.12305.000 Millions in the previous 15 month period ended March 31, 2013; EBIDTA was Rs.739.800 Millions in the financial year as against Rs.1387.700 Millions in the earlier 15-month period.
Interest and Finance Charges for the current period of 12 months were Rs. 433.900 Millions as against Rs.553.600 Millions for the 15 month period of previous year. There was an annualized saving of 2% p.a. over the previous reporting period.
The foreign exchange fluctuation during the period under review was in the range of Rs.54.38 to Rs.61.12 per US Dollar representing 12.50% movement. The loss on account of adverse movement in foreign exchange rates was Rs.15.700 Millions during the reporting period as compared to Rs.20.000 Millions in the previous reporting period
One of the major thrust area of the Company was to enhance efficiencies throughout the operational process, which helped reduce costs. Yet, during 2013-14, there was a loss of Rs.416.100 Millions in view of longer outage at Unit:Rajahmundry, rupee depreciation, adverse input Raw Material costs and delay in consents.
Note: The current period figures relate to 12 months ended March 2014 as against the 15 month period ended March 2013 in the previous report and hence are not comparable. Paper demand has seasonal impact which may not permit extrapolation between two unequal periods.
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 lower GDP growth could affect business fortunes.
Global pressures notwithstanding, the Indian economy is expected to grow much higher than the world average and report a GDP growth of around 6% in 2014-15. The Planning Commission of the Government of India has projected 8.2% 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.
MANAGEMENT OF RISKS
Risks and uncertainties are an inherent part of every business, and yet it is important to identify the risks and take proactive steps to mitigate and minimize them. IP APPM identifies and evaluates risks as early as possible and limits business losses by taking suitable measures. The Company aims to avoid risks that pose a threat to its sustainable growth.
IP APPM understands that risks can negatively impact fruition of both short-term operational and long-term strategic goals. Risk management is a part of the Company's business planning and controlling process.
OUTLOOK
The long-term outlook is positive. The potentials of the paper industry are likely to be unlocked in the near future given the confidence in the Indian economy and the measures being taken by the government to rein in inflation, create employment opportunities, expand per capita incomes and invest in literacy and health. The undertone is firm across the Indian economy. There is a positive momentum and the paper industry can look ahead with reasonable optimism.
IP APPM has positioned itself better by strengthening the organizational processes and systems over the past two years. Concerted efforts were made to inspire the people with focus on management development as well as to improve efficiency of resources. Manufacturing processes were stabilized and new products introduced which have added to traction in the market. In a competitive copier market, IP APPM today has a high-end product.
There is some level of flattening in raw material prices. Farm forestry efforts have started to pay off with more plantings being made by farmers in their wastelands. Wood prices have tempered, while availability in the catchment areas have improved. Paper prices have tended to be firm, and with initiatives taken towards cost compression and efficiency enhancement, IP APPM will be creating the basis to ensure the Company's long-term success.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10316479 |
20/10/2011 |
400,000,000.00 |
BNP PARIBAS |
6-3-883/5, VENKAT PLAZA, PANJAGUTTA, HYDERABAD, A |
B24861601 |
|
2 |
10292829 |
30/08/2011 * |
370,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, PLOT NO. 12, GACHIBOWLI, HYDER |
B19496561 |
|
3 |
90137460 |
20/08/2014 * |
515,000,000.00 |
State Bank of India |
CAG Branch - 13039, "Ozone" 2nd Floor, 6-3-669,
P |
C19483189 |
* Date of charge modification
STATEMENT OF UAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTH ENDED 30 SEPTEMBER, 2014
(Rs. In Millions)
|
|
|
Quarter ended |
Year ended |
|
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income |
|
|
|
|
|
(a) Net Sales / Income from operations (Net of Excise duty) |
2815.519 |
2826.598 |
5642.117 |
|
|
(b) Other Income |
53.791 |
29.335 |
83.126 |
|
|
Total Income |
2869.310 |
2855.933 |
5725.243 |
|
2 |
Expenditure |
|
|
|
|
|
a] Cost of materials consumed |
1212.387 |
1252.424 |
2464.811 |
|
|
c] Changes in inventories of finished goods, work-in-progress and stock-in-trade |
85.168 |
(102.510) |
(17.342) |
|
|
d] Stores and spares consumed |
537.621 |
530.776 |
1068.397 |
|
|
e] Power and Fuel expenses |
245.776 |
226.420 |
472.196 |
|
|
f] Employee benefits expense |
301.744 |
291.927 |
593.671 |
|
|
g] Other expenses (Refer Note 4) |
382.571 |
327.319 |
709.890 |
|
|
Total |
2765.267 |
2526.356 |
5291.623 |
|
3 |
EBIDTA |
104.043 |
329.577 |
433.620 |
|
4 |
Finance costs |
108.347 |
116.628 |
224.975 |
|
5 |
Depreciation and amortisation expense |
175.836 |
162.598 |
338.434 |
|
6 |
Profit/(Loss) from
ordinary activities after finance costs but before Exceptional items & Tax
expense |
180.140 |
50.351 |
129.789 |
|
9 |
Tax Expense |
(61.354) |
8.645 |
52.709 |
|
10 |
Net Profit/(Loss) for the period |
187.786 |
41.706 |
77.080 |
|
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.) |
(2.99) |
1.05 |
1.94 |
|
14 |
Earnings per share – Diluted (Rs.) |
(2.99) |
1.05 |
1.94 |
SELECT INFORMATION FOR
THE QUARTER AND SIX MONTHS ENDED 30 SEPTEMBER, 2014
(Rs. In Millions)
|
Sl. No. |
PARTICULARS |
Quarter ended |
Year ended |
|
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
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 |
Quarter ended |
|
|
|
September 30, 2014 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
Received during the quarter |
4 |
|
|
Disposed of during the quarter |
4 |
|
|
Remaining unresolved at the end of the quarter |
-- |
STATEMENTS ASSETS
AND LIABILITIES
|
PARTICULARS |
30.09.2014 |
|
EQUITY AND LIABILITIES |
|
|
Shareholders'
funds |
|
|
Share Capital |
397.700 |
|
Reserves & Surplus |
3663.250 |
|
Sub total-
Shareholders' funds |
4060.950 |
|
Non-current
liabilities |
|
|
Long-term borrowings |
3928.300 |
|
Deferred tax liabilities (Net) |
1026.991 |
|
Sub total-Non-Current Liabilities |
4955.291 |
|
Current liabilities |
|
|
Short term borrowings |
791.324 |
|
Trade payables |
1762.517 |
|
Other current
liabilities |
1214.940 |
|
Sub total-Current Liabilities |
3768.781 |
|
TOTAL EQUITY AND LIABILITIES |
12785.022 |
|
|
|
|
ASSETS |
|
|
Non-current assets |
|
|
Fixed assets |
|
|
Tangible assets |
8508.265 |
|
Intangible assets |
32.696 |
|
Capital
work-in-progress |
160.207 |
|
Non-current Investments |
154.337 |
|
Long-term Loan and Advances |
655.616 |
|
Other Non-current assets |
1.398 |
|
Sub total-Non-Current Assets |
9512.519 |
|
Current assets |
|
|
Investment |
|
|
Inventories |
2108.961 |
|
Trade receivables |
593.731 |
|
Cash and cash equivalents |
96.105 |
|
Short-term loans and
advances |
447.660 |
|
Other current assets |
26.646 |
|
Sub
total-Current Assets |
3272.503 |
|
TOTAL-
ASSETS |
12785.022 |
Notes:
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 October 17, 2014
2. The above unaudited financial results have been subjected to Limited Review by the Statutory Auditors of the Company
3. The Company has adopted the useful lives of fixed assets as specified in Part C of Schedule II of the Companies Act, 2013 effective April 1, 2014. Consequently the depreciation and amortization expenses for the Quarter and Six Months Ended September 30, 2014 is lower by Rs. 446.91 Millions and Rs. 885.23 Millions respectively.
4. During the period ended December 31, 2011, the Company had accrued Rs. 41.599 Millions towards managerial remuneration paid to the erstwhile Directors, of which Rs 19.464 Millions, was in excess of the maximum limits specified in Schedule XIII to the Companies Act, 1956. The members of the Company at the Annual General Meeting held on March 22, 2012 approved the waiver of recovery of excess remuneration paid to the Directors, subject to Central Government's approval. Consequently, requisite application was made by the Company to Ministry of Corporate Affairs (MCA) on April 17, 2012, for which approval was received by the Company towards waiver of recovery of excess remuneration paid to erstwhile Managing Director and Executive Directors. However, MCA had rejected the application made by the Company for the waiver of recovery of excess remuneration paid to a promoter director during March 31, 2014, citing that he is a Director in two companies in the same financial year. Subsequent to a representation made by the Company to the MCA to reconsider the said rejection, the MCA vide its letter dated July 17, 2014 has directed, that the excess remuneration paid to the promoter director, needs to be refunded to either the Company or to the other Company in which he is a Director. The Company has received a certificate from the Statutory Auditors of the other Company, stating that the amount has been refunded by the Director to the other Company. Accordingly the Company has intimated the same to MCA vide its letter dated October 14, 2014.
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. During the previous year the Company had incorporated a subsidiary, IP India Foundation for its Corporate Social Responsibility activities. The same is not considered for consolidation, as the objective of control over this entity is not to obtain economic benefits from its activities.
7.
8. The figures of the previous periods have been regrouped/reclassified, wherever considered necessary to correspond with the current period’s classification/disclosure.
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.62.16 |
|
|
1 |
Rs.94.28 |
|
Euro |
1 |
Rs.73.73 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SPR |
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 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
RBI |
YES/NO |
NO |
|
EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.