MIRA INFORM REPORT

 

 

Report No. :

303844

Report Date :

19.01.2015

 

IDENTIFICATION DETAILS

 

Name :

MALU PAPER MILLS LIMITED (w.e.f. 24.04.1998)

 

 

Formerly Known As :

MALU SOLVEX LIMITED

 

 

Registered Office :

Heera Plaza, 4th Floor, Near Telephone Exchange, Nagpur – 440008, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

11.01.1994

 

 

Com. Reg. No.:

11-076009

 

 

Capital Investment / Paid-up Capital :

Rs. 170.593 Millions

 

 

CIN No.:

[Company Identification No.]

L15142MH1994PLC076009

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NGPM03504E

 

 

PAN No.:

[Permanent Account No.]

AACCM4333M

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Paper 

 

 

No. of Employees :

300 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca (16)

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

The rating is constrained on account of company’s weak financial risk profile marked by low profitability margins and huge accumulated losses incurred by the company.

 

Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings on safe and secured trade terms and conditions. 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

ICRA

Rating

Term Loan : C

Rating Explanation

Poor credit quality and limited prospect of recovery.

Date

February 2014

 

Rating Agency Name

ICRA

Rating

Non fund base limits: A4

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

February 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 PARTED BY

 

Name :

Mr. Modi

Designation :

Accounts Manager

Contact No.:

91-712-2760308

Date :

16.01.2015

 

 

LOCATIONS

 

Registered Office :

Heera Plaza, 4th Floor, Near Telephone Exchange, Nagpur – 440008, Maharashtra, India

Tel. No.:

91-712-2760308/2733100/2778506

Fax No.:

91-712-2760310

E-Mail :

contacts@malupaper.com

info@malupaper.com

Website :

www.malupaper.com

 

 

Factory 1 and 2:

Village Borujwada, Nagpur – Saoner Road, Taluka Saoner, District Nagpur, Maharashtra, India

 

 

Factory 3 :

Village Heti (Surla), Saoner MIDC Industrial Area, Taluka Saoner, District Nagpur, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Damodarlal Ramlal Malu

Designation :

Non Executive Chairman

Address :

4, Poonam Chaya, Ravi Industrial Co, Near Natraj Society, Thane, Maharashtra, India

Date of Birth/Age :

07.07.1946

Qualification :

Graduate and LLB

Date of Appointment :

01.11.1994

DIN No.:

00301120

 

 

Name :

Mr. Punamchand Ramlal Malu

Designation :

Managing Director

Address :

1249, Neelkamal Central Avenue, Nagpur-440002, Maharashtra, India

Date of Birth/Age :

13.03.1952

Date of Appointment :

01.11.1994

DIN No.:

00301030

 

 

Name :

Mr. Banwarilal Bhanwarlal Malu

Designation :

Joint Managing Director

Address :

Kamal Sadn, Gandhibagh, Nagpur -440002, Maharashtra, India

Date of Birth/Age :

01.06.1959

Qualification :

Graduate

Date of Appointment :

01.11.1994

DIN No.:

00301297

 

 

Name :

Mr. Vasudeo Bhanwarlal Malu

Designation :

Non Executive Directors

Address :

Kamal Sadn, Gandhibagh, Nagpur -440002, Maharashtra, India

Date of Birth/Age :

07.06.190

Qualification :

Graduate

Date of Appointment :

01.11.1994

DIN No.:

00301313

 

 

Name :

Mr. Chandrakant Jaydevshankar Thakar

Designation :

Independent Directors

Address :

220, Chandramouli, Near Verma Tractor Co., East Wardhman Nagar, Nagpur – 440008, Maharashtra, India

Date of Birth/Age :

21.04.1936

Qualification :

Graduate and LLB From Nagpur University

Date of Appointment :

11.11.2005

DIN No.:

00784189

 

 

Name :

Mr. Satyanarayan Radhakrishna Rathi

Designation :

Independent Directors

Address :

"Shraddha" East Wardhman Nagar, Near Radhakrishna Hospital, Nagpur 440 008, Maharashtra, India

Date of Birth/Age :

07.09.1953

Qualification :

Graduate

Date of Appointment :

11.11.2005

DIN No.:

01797378

 

 

Name :

Mr. Anil Kumar Purushottam Das Rathi

Designation :

Independent Directors

Address :

P/No/33, Central Bazar Road, Ramdaspeth Nagpur – 440010, Maharashtra, India

Date of Birth/Age :

03.06.1954

Date of Appointment :

29.09.2008

DIN No.:

01874539

 

 

Name :

Mr. Shyansunder Shivnarayan Sarda

Designation :

Independent Directors

Address :

114-1, Shivaji Ward, Bhandara, Maharashtra, India

Date of Birth/Age :

14.03.1958

Date of Appointment :

29.09.2011

DIN No.:

02399265

 

 

Name :

Mr. Shrutika Inani

Designation :

Independent Directors

 

 

Name :

Mr. Bhanwarlal Malu

Designation :

Founder

 

 

KEY EXECUTIVES

 

Name :

Mr. Girish Malpani

Designation :

Chief Financial Officer and Compliance Officer

 

 

Name :

Mr. Modi

Designation :

Accounts Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

8211317

48.13

http://www.bseindia.com/include/images/clear.gifBodies Corporate

3207679

18.80

http://www.bseindia.com/include/images/clear.gifSub Total

11418996

66.94

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

11418996

66.94

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

796109

4.67

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

2375734

13.93

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

2349326

13.77

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

119085

0.70

http://www.bseindia.com/include/images/clear.gifClearing Members

90486

0.53

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

28599

0.17

http://www.bseindia.com/include/images/clear.gifSub Total

5640254

33.06

Total Public shareholding (B)

5640254

33.06

Total (A)+(B)

17059250

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

17059250

0.00

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

 

Sl.No.

Name of the Shareholder

No. of Shares held

As a % of grand total (A)+(B)+(C)

No

As a percentage

As a % of
grand total
(A)+(B)+(C) of sub-clause (I)(a)

1

Bhanwarlal Malu

125

0.00

0

0.00

0.00

2

Punamchand Malu

4,02,208

2.36

402208

100.00

2.36

3

Banwarilal Malu

3,72,912

2.19

372912

100.00

2.19

4

Damodarlal Malu

3,45,833

2.03

345833

100.00

2.03

5

Purushottam Malu

3,02,083

1.77

302083

100.00

1.77

6

Vasudeo Malu

7,26,424

4.26

726424

100.00

4.26

7

Ghasiram Malu

50,000

0.29

50000

100.00

0.29

8

Frontline Commercial Pvt Ltd

11,37,757

6.67

962222

84.57

5.64

9

Marigold Farms Pvt Ltd

4,12,500

2.42

412500

100.00

2.42

10

Wistaria Farms Pvt Ltd

10,33,500

6.06

1033500

100.00

6.06

11

Shrawankumar Malu

2,88,472

1.69

283333

98.22

1.66

12

Radheshyama Malu

2,17,708

1.28

217708

100.00

1.28

13

Venugopal Malu

2,17,708

1.28

217708

100.00

1.28

14

Ganpati Malu

1,81,250

1.06

0

0.00

0.00

15

Damodarlal Malu HUF

1,58,333

0.93

158333

100.00

0.93

16

Punamchand Malu HUF

1,58,333

0.93

158333

100.00

0.93

17

Purushottam Malu HUF

1,58,333

0.93

158333

100.00

0.93

18

Shrawankumar Malu HUF

1,58,333

0.93

158333

100.00

0.93

19

Kaveri Malu

10,52,487

6.17

0

0.00

0.00

20

Suman Malu

4,03,750

2.37

403750

100.00

2.37

21

Kaushalya Malu

1,70,833

1.00

0

0.00

0.00

22

Anita Malu

1,70,833

1.00

0

0.00

0.00

23

Pushpa Malu

1,70,833

1.00

0

0.00

0.00

24

Sushila Malu

1,70,833

1.00

0

0.00

0.00

25

Sunflame Fuels Private Limited

5,27,255

3.09

527255

100.00

3.09

26

Omprakash Malu

14,500

0.08

14500

100.00

0.08

27

Manisha Malu

2,62,500

1.54

262500

100.00

1.54

28

Kantadevi Malu

26,900

0.16

0

0.00

0.00

29

Bharat Malu

1,89,583

1.11

0

0.00

0.00

30

Shashi Malu

6,67,464

3.91

667464

100.00

3.91

31

Banwarilal Malu HUF

1,29,933

0.76

129933

100.00

0.76

32

Vasudeo Malu HUF

3,70,117

2.17

370117

100.00

2.17

33

Gajendra Malu

3,13,356

1.84

0

0.00

0.00

34

Narayan Malu

3,09,340

1.81

268765

86.88

1.58

35

Solar Carbon Private Limited

96,667

0.57

96667

100.00

0.57

36

Shalini V Malu

50,000

0.29

0

0.00

0.00

 

Total

1,14,18,996

66.94

8700714

76.20

51.00

 

(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

 

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

1

Ashok Kumar Damani

289964

1.70

 

2

Bips Tradecom Pvt Ltd

373811

2.19

 

3

Neha Gajendra Malu

186720

1.09

 

 

Total

850495

4.99

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Paper 

 

 

Products :

Item Code No.

Product Description

48.01

Newsprint

48.02

Kraftpaper

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

L/C, Cash and Credit

 

 

Purchasing :

L/C, Cash and Credit

 

PRODUCTION STATUS NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Retailers and End Users

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

300 (Approximately)

 

 

Bankers :
  • State Bank of India
  • Axis Bank Limited
  • Bank of Baroda
  • Bank of India
  • Jammu and Kashmir Bank

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

Bank of India, Mumbai

154.025

150.397

Jammu and Kashmir Bank, Mumbai

102.151

94.141

State Bank of India, Nagpur

149.896

143.585

Bank of Baroda, Mumbai

60.100

65.059

Axis Bank, Nagpur

103.063

106.609

Sundaram Finance Limited

0.039

0.000

ICICI Bank Limited

0.657

1.220

State Bank of India

0.165

0.360

Short-term borrowings

 

 

Loans repayable on demand

Working Capital Limit from

 

 

Axis Bank Limited; Nagpur

42.112

40.153

State Bank of India, Nagpur

39.625

38.519

Bank of India, Mumbai

43.911

41.044

Jammu and Kashmir Bank, Mumbai

20.259

19.761

Bank of Baroda, Mumbai

21.009

20.381

Total

737.012

721.229

NOTE:

 

LONG-TERM BORROWINGS

 

(Loans are secured by :

 

1. Primary : First paripassu charge on the entire Fixed Assets of the Company both present and future.

 

2. Collateral : Second pari pasu charge on entire current assets of the company and First pari passu charge by way of equitable mortgage of Land and Plant and Machinery of Solar Carbon Private Limited.

 

3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu and Shri Banwarilal Malu and corporate guarantee of Solar Carbons Private Limited.)

 

4. Pledge of Promoters Shareholding to the extent of 51% of the paid up capital of the Company.

 

(Loans secured by hypothecation of vehicle of company.)

 

In the financial year 2011-12, Loans are restructured under the Corporate Debts Restructure (CDR) mechanism.

 

DETAILS OF RATE OF INTEEST and TERMS OF REPAYMENT OF TERM LOANS

Rs. In Millions

REPAYMENT SCHEDULE OF TERM LOANS

Repayable after 1 year from the date of Balance Sheet

Repayment in FY 14.15

Terms of Payment - 4 Quaterly Instalment

Rate of Interest

Bank of India, Mumbai

93.239

8.760

2.190

15.5%

Bank of India, Mumbai

44.286

4.065

1.016

11.5%

Bank of India, Mumbai

16.500

2.750

0.688

14.0%

Jammu and Kashmir Bank, Mumbai

86.329

7.998

1.999

15.5%

Jammu and Kashmir Bank, Mumbai

15.823

2.567

0.642

14.0%

State Bank of India, Nagpur

75.654

7.117

1.779

15.5%

State Bank of India, Nagpur

57.305

5.220

1.305

11.5%

Jammu and Kashmir Bank, Mumbai

16.938

2.700

0.675

14.0%

Bank of Baroda, Mumbai

60.100

5.752

1.438

15.5%

Axis Bank, Nagpur

33.221

3.264

0.816

23.5%

Axis Bank, Nagpur

63.944

6.168

1.542

11.5%

Axis Bank, Nagpur

5.897

1.000

0.250

14.0%

Total (i) :

569.236

57.361

14.34

 

 

Rs. In Millions

REPAYMENT SCHEDULE OF VEHICLE LOANS

Repayable after 1 year from the date of Balance Sheet

Repayment in FY 14-15

Terms of Payment -Monthly Instalment

Rate of Interest

Sundaram Finance Limited

0.039

0.470

0.039

9.50%

ICICI Bank Limited; Nagpur

0.657

0.563

0.047

10.50%

State Bank of India

0.165

0.180

0.015

10.50%

Total (ii) :

0.861

1.213

0.101

 

 

 

 

 

 

Total (I + ii) :

570.097

58.574

14.441

 

 

SHORT-TERM BORROWINGS

 

(Loans are secured by :

 

1. Primary : First paripassu charge on the entire Fixed Assets of the Company both present and future.

 

2. Collateral : Second pari pasu charge on entire current assets of the company and First pari passu charge by way of equitable mortgage of Land and Plant and Machinery of Solar Carbon Private Limited.

 

3. Guarantee : Personal guarantee of Directors Shri Punamchand Malu and Shri Banwarilal Malu and corporate guarantee of Solar Carbons Private Limited.)

 

4. Pledge of Promoters Shareholding to the extent of 51% of the paid up capital of the Company.

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

Demble Ramani and Company

Chartered Accountants

Address :

201, MG House, R.T. Road, Civil Lines, Nagpur – 440001, Maharashtra, India

Tel. No.:

91-712-3918630/3918631

Fax No.:

91-712-3918654

E-Mail :

dembleramani@yahoo.co.in

PAN No.:

AABFD9880A

 

 

Internal Auditors

Samria and Company

Chartered Accountants

Memberships :

--

 

 

Collaborators :

--

 

 

Associate Companies:
  • Malu Electrodes Private Limited
  • Frontline Commercials Private Limited
  • Narayan Coal Traders Private Limited
  • Neelkamal Financial Services Private Limited
  • Shree Sales Corporation Private Limited
  • Solar Carbons Private Limited
  • Wistaria Farms Private Limited
  • Malu Infrastructure Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

Rs. 10/- each

Rs.200.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

17059250

Equity Shares

Rs. 10/- each

Rs.170.593 Millions

 

 

 

 

 

Reconciliation of Number of Shares Outstanding:

 

Particular

Number of Shares

Rs. In Millions

Shares outstanding at the beginning of the year

17,059,250

170.593

Movement During the Year

-

-

Shares outstanding at the end of the year

17,059,250

170.593

 

Rights, preference & restriction attached to Equity Shares

 

The company has only one class of equity Share. Each Shareholder is eligible for one vote per share. In the event of liquidation of company, the shareholders are entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution shall be in proportion to number of equity shares held by the shareholder.

 

Details of Shareholders, holding more than 5% of the Paid up Equity Share Capital of the Company with Voting Rights :

 

Particular

Number of Shares

Rs. In Millions

Frontline Commercial Private Limited

962,222

5.64%

Wistaria Farms Private Limited

1,033,500

6.06%

Kaveri Malu

1,052,487

6.17%

 

 

 

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

170.593

170.593

170.593

(b) Reserves & Surplus

(60.891)

(74.874)

49.334

(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)

109.702

95.719

219.927

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

878.497

890.922

858.645

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

157.690

141.403

140.607

(d) long-term provisions

3.385

3.009

2.754

Total Non-current Liabilities (3)

1039.572

1035.334

1002.006

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

166.915

159.857

153.103

(b) Trade payables

150.387

178.846

86.716

(c) Other current liabilities

62.535

59.802

30.895

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

379.837

398.505

270.714

 

 

 

 

TOTAL

1529.111

1529.558

1492.647

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

932.806

990.690

1029.387

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

1.100

1.100

1.100

(c) Deferred tax assets (net)

121.310

127.194

71.825

(d)  Long-term Loan and Advances

65.531

63.476

60.967

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1120.747

1182.460

1163.279

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

129.806

118.502

123.016

(c) Trade receivables

209.041

174.228

168.122

(d) Cash and cash equivalents

15.294

22.430

15.827

(e) Short-term loans and advances

54.223

31.938

22.403

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

408.364

347.098

329.368

 

 

 

 

TOTAL

1529.111

1529.558

1492.647

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

2177.543

1775.433

1692.903

 

Other Income

18.606

26.686

4.105

 

TOTAL (A)

2196.149

1802.119

1697.008

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

1279.730

1155.953

1124.163

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

4.959

(3.023)

(0.991)

 

Employees benefits expense

44.455

38.148

34.865

 

Other expenses

630.030

574.929

631.263

 

TOTAL (B)

1959.174

1766.007

1789.300

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

236.975

36.112

(92.292)

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

154.251

153.913

139.208

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

82.724

(117.801)

(231.500)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

62.580

61.776

61.202

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

20.144

(179.577)

(292.702)

 

 

 

 

 

Less

TAX (I)

6.160

(55.369)

(90.606)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-I)   (J)

13.984

(124.208)

(202.096)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

39.172

10.728

NA

 

TOTAL EARNINGS

39.172

10.728

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

198.414

162.652

140.362

 

Components and Stores parts

10.329

9.929

2.406

 

TOTAL IMPORTS

208.743

172.581

142.768

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.82

(7.28)

(11.85)

 

 

Expected Sales (2014-2015) : Rs.2450.000 Millions

 

The above information has been parted by Mr. Modi

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2014

1st Quarter

30.09.2014

2nd Quarter

Audited / UnAudited

UnAudited

UnAudited

Net Sales

558.700

556.800

Total Expenditure

514.200

505.400

PBIDT (Excl OI)

44.500

51.500

Other Income

0.500

0.500

Operating Profit

45.000

52.000

Interest

35.400

41.900

Exceptional Items

0.000

0.000

PBDT

9.500

10.100

Depreciation

15.600

15.600

Profit Before Tax

(6.100)

(5.500)

Tax

(1.900)

(1.700)

Provisions and contingencies

0.000

0.000

Profit After Tax

(4.200)

(3.800)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

0.64

(7.00)

(11.94)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

10.88

2.03

(5.45)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.43

(12.82)

(20.62)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.18

(1.88)

(1.33)v

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

9.53

10.98

4.60

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.08

0.87

1.22

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

170.593

170.593

170.593

Reserves & Surplus

49.334

(74.874)

(60.891)

Net worth

219.927

95.719

109.702

 

 

 

 

long-term borrowings

858.645

890.922

878.497

Short term borrowings

153.103

159.857

166.915

Total borrowings

1011.748

1050.779

1045.412

Debt/Equity ratio

4.600

10.978

9.530

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

1692.903

1775.433

2177.543

 

 

4.875

22.649

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

1692.903

1775.433

2177.543

Profit

(202.096)

(124.208)

13.984

 

(11.94%)

(7.00%)

0.64%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

 

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

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

REVIEW OF OPERATIONS

 

The Company has posted impressive results when viewed in the light of the challenging business environment. For the year the Company recorded total income of Rs.2196.148 Millions while the profit before taxes was Rs.20.145 Millions.

 

MANAGEMENT REVIEW: 2013-14

 

INDIAN PAPER INDUSTRY SCENARIO

 

The Indian paper industry is the 15th largest in the world and contributes Rs 25 bn (approx) to the government. The industry has recorded a volume growth of CAGR of 5.5% over the last 3 years. The industry has a 1:1 correlation with the economy. With the expected GDP growth of 7-8%, the paper sector is also expected to record a similar growth rate. India's per capita consumption of paper is at 6 kgs compared to the global level of 52 kgs. However, with the expected increase in literacy rate and growth of the economy the per capita consumption of paper is expected to increase going forward.

 

FUTURE OUTLOOK

 

The Indian paper industry is moving up with strong demand and is expected to touch by 8.5% GDP in the coming years. Going forward, the Company continues its drive for sustainable growth. They are focused on the long term and expect that the current downturn will result in consolidation opportunities. They are adopting to successfully compete in difficult market conditions. With the rapid rise in demand for newsprint from the print media and for packing containers from the FMCG industry, the company is anticipating strong revenue growth in the current financial year, which is backed by improving margins. The increased focus on education by the government, an increase in the general level of literacy and continued demand from user industries will further add to the growth prospects of the Company. The total market size of paperboard was estimated to be about Rs 217 Billion. Of the total paper board demand, Kraft paper which is used for tertiary packaging, accounted for about 59 percent. Demand for paper board has increased at a CAGR of 6.5%. Demand for Kraft paper depends on the growth in Industrial production coupled with macro economic factors like GDP growth, disposable income etc. given the high linkage of spending on consumer durables, FMCG goods etc with these variables.

 

The Newsprint segment is expected to grow by 8-8.5% CAGR over the next 5 years driven by higher literacy levels and due to increase in circulation and increase in number of pages per newspaper. The paper board segment is expected to grow at 5.7-6% CAGR. This demand will be driven by growth in industrial production and 8-9% CAGR increase in demand for consumer goods. The company will endeavor to revitalize in the near future and are preparing for growth.

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10383237

05/11/2013 *

1,131,800,000.00

AXIS BANK LIMITED

TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G
ARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, IN
DIA

B92415587

2

10111570

24/04/2008

100,000,000.00

AXIS BANK LIMITED

M. G. HOUSE, RABINDRANATH TAGORE ROAD,, BESIDES B
OARD OFFICE, CIVIL LINES,, NAGPUR, MAHARASHTRA - 4
40001, INDIA

A40662827

3

10111558

24/04/2008

409,500,000.00

AXIS BANK LIMITED

M. G. HOUSE, RABINDRANATH TAGORE ROAD,, BESIDES B
OARD OFFICE, CIVIL LINES,, NAGPUR, MAHARASHTRA - 4
40001, INDIA

A40672503

4

10023999

01/11/2006

450,000,000.00

UTI BANK LIMITED

MAKER TOWERS F, 13TH FLOOR,, CUFFEE PARADE, COLAB
A,, MUMBAI, MAHARASHTRA - 440005, INDIA

A05904172

 

* Date of charge modification

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

Loans and advances from related parties

268.800

210.650

Loans and advances from others

39.600

118.900

Total

308.400

329.550

 

CONTINGENT LIABILITIES:

Rs. In Millions

Particular

31.03.2014

Bank Guarantee Outstanding

14.423

Letter of Credit

113.432

Bonds Executed in Favour of Government Authorities in respect of EPCG Licence towards duty saved against which Export ogligation has to be made.

61.404

 

FIXED ASSETS

 

Tangible Assets

 

  • Freehold Land
  • Factory Building
  • Office Building
  • Staff Quarters
  • Plant & Machinery
  • Furniture & Fixture
  • Office Equipment
  • Computers
  • Boiler
  • Captive Power Plant
  • Water Supply Equipments
  • Fire Fighting Equipments
  • Effluent Treatment
  • Electrical Installation
  • Misc.Fixed Assets
  • Vehicle ( Four Wheeler)
  • Vehicle (Industrial)
  • Vehicle ( Two Wheeler)

 

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 exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.89

UK Pound

1

Rs.93.92

Euro

1

Rs.72.01

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

2

PAID-UP CAPITAL

1~10

2

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILITY

1~10

2

--LIQUIDITY

1~10

2

--LEVERAGE

1~10

2

--RESERVES

1~10

1

--CREDIT LINES

1~10

1

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

16

 

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

 

--

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.