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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

510463

Report Date :

21.05.2018

 



IDENTIFICATION DETAILS

 

Name :

MALU PAPER MILLS LIMITED

 

 

Registered Office :

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

Mobile No.:

91-9850395280 (Mr. Ganplia)

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

11.01.1994

 

 

Com. Reg. No.:

11-076009

 

 

Capital Investment / Paid-up Capital :

INR 170.593 Million

 

 

CIN No.:

[Company Identification No.]

L15142MH1994PLC076009

 

 

IEC No.:

[Import-Export Code No.]

0396004067

 

 

GSTN :

[Goods & Service Tax Registration No.]

27AACCM4333M1ZB

 

 

TIN No.:

27860393586

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

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, exporter and importer of paper such as craft paper, writing paper, printing paper, new print paper, etc. [Registered activity and also confirmed by management]

 

 

No. of Employees :

280 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Maximum Credit Limit :

USD 510000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated in the year 1994 and it is engaged as manufacturer, exporter and importer of paper such as craft paper, writing paper, printing paper, new print paper, etc.

 

For the financial year 2017, the company has achieved decent growth in its revenue as compared to its previous year but has reported thin profit margin during the year.

 

The company possesses moderate financial risk profile marked by its large debt repayment obligations due to high gearing along with reserve level.

 

The company is listed on BSE and NSE and the price quoted on BSE is held at INR 43.80 against its face value of INR 10.

 

As per quarterly results of December 2017, the company has achieved revenue of INR 781.97 million and has clocked a net profit margin of 0.48%.

 

However, these rating weakness gets partially offset by established track record in the Kraft paper and newsprint segment.

 

Payment seems to be slow but correct.

 

In view of aforesaid, the company can be considered for business dealing with some caution.

 

NOTES:

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

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating: BB-

Rating Explanation

Moderate risk of default.

Date

21.02.2017

 

Rating Agency Name

CRISIL

Rating

Short term rating: A4+

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

21.02.2017

 

 

 

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 31-03-2018.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 21.05.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

INFORMATION PARTED BY

 

Name :

Mr. Ganplia

Designation :

Manager

Contact No.:

91-9850395280

Date :

19.05.2018

 

MANAGEMENT NON CO-OPERATIVE (91-712-2760308)

 

 

LOCATIONS

 

Registered Office :

Heera Plaza, 4th Floor, Near Telephone Shri SatyanarayanRathi Exchange, Central Avenue, Nagpur 440008, Maharashtra, India

Tel. No.:

91-712-2760308/2778506/2733100

Mobile No.:

91-9850395280 (Mr. Ganplia)

Fax No.:

91- 712- 2760310

E-Mail :

info@malupaper.com

contacts@malupaper.com

Website :

www.malupaper.com

Location:

Owned

Locality:

Industrial

 

Factory 1:

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

 

 

Factory 2:

Village HettiSurla, Nagpur Bhopal Road, Taluka: Saoner, District: Nagpur, Maharashtra, India

 

 

DIRECTORS

 

AS ON 31.03.2018

 

Name :

Poonamchand Ramlal Malu

Designation :

Managing Director

Address :

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

Date of Appointment :

11.01.1994

DIN No.:

00301030

 

 

Name :

Banwari Bhanwarlal Malu

Designation :

Managing Director

Address :

251, Kamala Sadan, Dhraskar Road, Itwari, Nagpur - 440002, Maharashtra, India

Date of Appointment :

11.01.1994

DIN No.:

00301297

 

 

Name :

Damodharlal Ramlal Malu

Designation :

Director

Address :

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

Date of Appointment :

11.01.1994

DIN No.:

00301120

 

 

Name :

Vasudeo Bhanwarlal Malu

Designation :

Director

Address :

251, Kamala Sadan, Dhraskar Road, Itwari, Nagpur - 440002, Maharashtra, India

Date of Appointment :

11.01.1994

DIN No.:

00301313

 

Name :

Chandrakant Jaydevshankar Thakar

Designation :

Director

Address :

220, Chandramauli, Near Verma Tractor East, Wardhaman Nagar, Nagpur - 440001, Maharashtra, India

Date of Appointment :

11.11.2005

DIN No.:

00784189

 

Name :

Satyanarayan Rathi

Designation :

Director

Address :

61, Shraddha East, Wardhaman Nagar, Nagpur -440008, Maharashtra, India

Date of Appointment :

11.11.2005

DIN No.:

01797378

 

Name :

Shyamsunder Shivnarayan Sarda

Designation :

Director

Address :

114-1, Shivaji Ward Bhandara, Bhandara -441904, Maharashtra, India

Date of Appointment :

29.09.2011

DIN No.:

02399265

 

Name :

Shrutika Arvind Inani

Designation :

Director

Address :

191, East Wardhaman Nagar Near Radha Krishna Hospital, Nagpur- 440008, Maharashtra, India

Date of Appointment :

25.09.2014

DIN No.:

06937649

 

 

KEY EXECUTIVES

 

Name :

Girish Ratanlal Malpani

Designation :

Chief Financial Officer

Address :

17, Ganga Vihar Middle Ring Road, Nagpur -440024, Maharashtra, India

Date of Appointment :

01.04.2017

PAN No.:

ACWPM7396R

 

 

Name :

Mr. Ganplia

Designation :

Manager

 

 

SHAREHOLDING PATTERN

 

AS ON 31.03.2018

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Promoter & Promoter Group

11823247

69.31

(B) Public

5236003

30.69

Grand Total

17059250

100.00

 

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP

 

Category of Shareholder

No. of Shares

Percentage of Holding

A1) Indian

 

0.00

Individuals/Hindu undivided Family

8247973

48.35

Kaveridevi Jeetmal Malu

1042487

6.11

Vasudeo Malu

726424

4.26

Shashikala Malu

668753

3.92

Suman Malu

403750

2.37

Punamchand R Malu

402208

2.36

Banwarilal Malu

372912

2.19

Vasudeo Malu (Huf)

370117

2.17

Damodarlal Malu

345833

2.03

Gajendra Jeetmal Malu

313356

1.84

Narayan Banwarilal Malu

304340

1.78

Purushottam Malu

302083

1.77

Shrawan Kumar Malu

288472

1.69

Manisha Banwarilal Malu

262500

1.54

Bharat Shrawankumar Malu

239725

1.41

Venugopal Punamchand Malu

217958

1.28

Radheshyam Purushottam Malu

217708

1.28

Ganpati Malu

181250

1.06

Kaushalya Malu

170833

1.00

Pushpa Malu

170833

1.00

Sushila Malu

170833

1.00

Anita Malu

170833

1.00

Damodarlal Malu (Huf)

158333

0.93

Purushottam Malu (Huf)

158333

0.93

Punamchand Malu { Huf }

158333

0.93

Shrawankumar Malu (Huf)

158333

0.93

Banwarilal Malu (Huf)

129933

0.76

Ghasiram Jhumarlal Malu

50000

0.29

Shalini Venugopal Malu

50000

0.29

Kantadevi Shreevallabh Malu

27000

0.16

Omprakash Jhumarlal Malu

14500

0.08

Any Other (specify)

3575274

20.96

Frontline Commercial Pvt. Ltd.

1505352

8.82

Wistaria Farms Private Ltd

1033500

6.06

Sunflame Fuels Pvt. Ltd

527255

3.09

Marigold Farms Pvt. Ltd.

412500

2.42

Solar Carbons Pvt Ltd

96667

0.57

Sub Total A1

11823247

69.31

A2) Foreign

 

0.00

A=A1+A2

11823247

69.31

 

STATEMENT SHOWING SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER

 

Category of Shareholder

No. of Shares

Percentage of Holding

B1) Institutions

 

0.00

B2) Central Government/ State Government(s)/ President of India

 

0.00

B3) Non-Institutions

 

0.00

Individual share capital upto INR 0.200 Million

2941002

17.24

Individual share capital in excess of INR 0.200 Million

939613

5.51

Any Other (specify)

1355388

7.95

HUF

363628

2.13

Non-Resident Indian (NRI)

40956

0.24

Clearing Members

244981

1.44

Bodies Corporate

705823

4.14

BIPS TRADECOM PRIVATE LIMITED

424011

2.49

Sub Total B3

5236003

30.69

B=B1+B2+B3

5236003

30.69

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, exporter and importer of paper such as craft paper, writing paper, printing paper, new print paper, etc. [Registered activity and also confirmed by management]

 

 

Products / Services :

Name and Description of main products / services

NIC Code

Kraft Paper

2800

Newsprint Writing Printing

2802; 2803

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • Sri Lanka
  • African Countries

 

 

Imports :

 

Products :

Raw material

Countries :

United Arab Emirates

 

 

Terms :

 

Selling :

L/C, Cash, Cheque, Credit and Others (NEFT) (30,60,90 Days)

 

 

Purchasing :

L/C, Cash, Cheque, Credit and Others (NEFT) (30,60,90 Days)

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

Customers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Experience :

--

Maximum Limit Dealt :

--

Remark :

--

 

 

No. of Employees :

280 (Approximately)

 

 

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

 

 

Facilities :

SECURED LOANS

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Bank of India, Mumbai

92.775

112.606

Jammu & Kashmir Bank, Mumbai

60.969

74.198

State Bank of India, Nagpur

89.498

108.898

Bank of Baroda, Mumbai

35.076

42.758

Axis Bank, Nagpur

42.564

76.412

State Bank of India

0.563

0.422

SHORT TERM BORROWINGS

 

 

Loans repayable on demand Working Capital Limit from

 

 

Axis Bank Limited, Nagpur

61.288

54.219

State Bank of India, Nagpur

61.224

58.449

Bank of India, Mumbai

56.674

58.895

Jammu & Kashmir Bank, Mumbai

30.662

29.368

Bank of Baroda, Mumbai

30.751

29.551

Total

 

 

Note:

 

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

 

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

 

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

 

 

Auditors :

 

Name :

Demble Ramani and Company

Chartered Accountants

Address :

201, M.G. House, R.T.Road, Civil Lines, Nagpur-440001, Maharashtra, India

Tel. No.:

91-712-6603630 / 631 / 632

Mob No.:

91-8087200551 / 552

Fax No.:

91-712-3918654

E-Mail :

contact@dembleramani.com  

dembleramani@yahoo.co.in

 

Internal Auditor:

Samria and Company

Chartered Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Associate Concerns:
  • Malu Electrodes Private Limited
  • Narayan Traders
  • Salasar Alloy and Steel Industries Private Limited
  • Frontline Commercials Private Limited
  • Narayan Coal Traders Private Limited
  • Neelkamal Financial Services Private Limited
  • Solar Carbons Private Limited
  • Wistaria Farms Private Limited
  • Malu Infrastructure Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

INR 10/- each

INR 200.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

17059250

Equity Shares

INR 10/- each

INR 170.593 Million

 

 

 

 

 

 

Reconciliation of Number of Shares Outstanding:

                                 

Equity Shares

Number of Shares

Amount

Shares outstanding at the beginning of the year

17059250

170.593

Movement During the Year

--

--

Shares outstanding at the end of the year

17059250

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 :

 

Name of Shareholder

Number of Shares

% holding

 

 

 

Frontline Commercial Private Limited

1,416,230

8.30%

Wistaria Farms Private Limited

1,033,500

6.06%

Kaveri Malu

1,042,487

6.11%

 

 

FINANCIAL DATA

[all figures are INR Million]

 

 

ABRIDGED BALANCE SHEET

 

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

170.593

170.593

170.593

(b) Reserves & Surplus

6.685

(22.632)

(42.163)

(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)

177.278

147.961

128.430

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

685.995

775.094

813.420

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

152.513

159.548

159.143

(d) long-term provisions

4.783

4.138

3.815

Total Non-current Liabilities (3)

843.291

938.780

976.378

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

240.599

230.482

224.323

(b) Trade payables

170.015

153.943

166.394

(c) Other current liabilities

84.042

83.880

77.297

(d) Short-term provisions

0.000

0.000

0.000

Total Current Liabilities (4)

494.656

468.305

468.014

 

 

 

 

TOTAL

1515.225

1555.046

1572.822

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

843.574

889.856

919.206

(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)

90.617

103.867

112.707

(d)  Long-term Loan and Advances

52.456

63.803

65.789

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

987.747

1058.626

1098.802

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

228.777

181.364

187.066

(c) Trade receivables

234.677

228.558

212.731

(d) Cash and cash equivalents

15.911

18.152

16.922

(e) Short-term loans and advances

48.113

68.346

57.301

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

527.478

496.420

474.020

 

 

 

 

TOTAL

1515.225

1555.046

1572.822

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

2520.675

2277.578

2308.177

 

Other Income

13.992

22.553

2.745

 

TOTAL

2534.667

2300.131

2310.922

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

1525.340

1354.444

1371.796

 

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

(15.563)

(3.667)

1.328

 

Employees benefits expense

74.375

67.869

62.391

 

Other expenses

726.957

649.759

646.185

 

TOTAL

2311.109

2068.405

2081.700

 

 

 

 

 

 

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

223.558

231.726

229.222

 

 

 

 

 

Less

FINANCIAL EXPENSES

135.000

156.301

155.752

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

88.558

75.425

73.470

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

47.991

47.054

46.140

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

40.567

28.371

27.330

 

 

 

 

 

Less

TAX

13.250

8.840

8.603

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

27.317

19.531

18.727

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(382.466)

(401.997)

(420.724)

 

 

 

 

 

 

Balance Carried to the B/S

(355.149)

(382.466)

(401.997)

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

1.72

1.14

1.10

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

69.852

74.247

71.340

 

 

 

 

Cash generated from operations

231.010

213.343

202.139

 

 

 

 

Net Cash from Operating Activities

217.760

204.503

193.536

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

(Unaudited)

30.09.2017

(Unaudited)

31.12.2017

(Unaudited)

 

1st Quarter

2nd Quarter

3rd Quarter

Net sales

690.820

678.680

722.320

Total Expenditure

654.430

629.390

673.250

PBIDT (Excluding Other Income)

36.390

49.290

49.070

Other income

3.180

NA

NA

Operating Profit

39.570

49.290

49.070

Interest

26.030

33.540

32.080

Exceptional Items

NA

NA

NA

PBDT

13.540

15.750

16.990

Depreciation

12.040

11.950

12.000

Profit Before Tax

1.490

3.790

4.990

Tax

0.460

1.190

1.560

Provisions and contingencies

NA

NA

NA

Profit after tax

1.030

2.600

3.430

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

1.030

2.600

3.430

 

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

33.98

36.63

33.64

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

10.74

9.96

10.85

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

40.68

41.49

44.27

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.98

1.28

1.23

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.27

0.26

0.25

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.83

0.85

0.86

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

5.62

7.30

8.64

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

2.79

3.17

3.64

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

4.76

6.01

7.16

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

1.66

1.48

1.47

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

1.08

0.86

0.81

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

1.80

1.26

1.19

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

15.41

13.20

14.58

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.07

1.06

1.01

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.60

0.67

0.61

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.12

0.10

0.08

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

5.84

6.33

6.50

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.07

1.06

1.01

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10/-

Market Value

INR 41.90/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

170.593

170.593

170.593

Reserves & Surplus

(42.163)

(22.632)

6.685

Share Application money pending allotment

0.000

0.000

0.000

Net worth

128.430

147.961

177.278

 

 

 

 

Long-Term Borrowings

813.420

775.094

685.995

Short Term Borrowings

224.323

230.482

240.599

Current Maturities of Long term debt

71.340

74.247

69.852

Total borrowings

1109.083

1079.823

996.446

Debt/Equity ratio

8.636

7.298

5.621

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2308.177

2277.578

2520.675

 

 

(1.326)

10.673

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2308.177

2277.578

2520.675

Profit

18.727

19.531

27.317

 

0.81%

0.86%

1.08%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

Yes

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

REVIEW OF OPERATIONS

 

The Company has posted another year of impressive results when viewed in the light of the challenging business environment. For the year the Company recorded total income of INR 2534.668 Million and booked profit before tax of INR 42.567 Million.

 

MANAGEMENT REVIEW: 2016-17

 

PAPER INDUSTRY SCENARIO

 

This was a difficult year for the pulp and Paper industry worldwide as the demand has grown at very slow pace of about 1%. The muted growth worldwide has been due to increase in digitization in developed and developing countries for the writing and printing segment, in the paperboard segment the growth has been slow due to China’s demand contraction and the Newsprint industry is affected by the growth of e-newspapers in developed countries, however in developing conutries there is growth in the market due to rise in literacy level and income growth. There was a marked slowdown in the overall capacity addition globally, as companies concentrated on raising the capacity utilsation and conversion of facilities for suitable grades. The lower new capapcity addition will lead to increase in operating rates in the coming years. The demand growth is likely to outpace the capacity addition in the coming years. The growing capacity utilization might see some hardening in the recovered paper price in the coming years, but this is likely to stabilize as pulp supply is likely to increase due to increased availability of pulp in the market as new capacities come up in South East Asia and South America.

 

The Indian Paper and Paper board industry will continue to grow at a CAGR of 6-7% during the next 5 years to approx 19.8 million tons. The segment wise break up and usage of paper and paper products in India in FY 2017 is Writing and Printing Paper 30%, Packaging and Paperboard around 47%, Newsprint 19% and Speciality and other paper about 5%. The segment wise share is likely to remain same in coming years. The segment wise growth will be lead by speciality paper at around 9-10% as the economy matures, followed by paperboard at 7-8%, Writing and Printing paper at 5-6% and Newsprint at 4.5-5%. The Indian paper industry continues to remain fragmented in nature due to logistics costs and scattered demand over the large landscape. The paper industry caters to the regional demands and this limits the large volume capacity addition. The overall growth in the WandP segment is expected to be at 5.5%-6.5%. The WandP paper demand will be lead by the Copier and Coated paper where the copier paper is expected to grow at 9-9.5% and Coated paper at 5%. The maplitho and creamwove segment will continue to grow at a pace of about 4%.

 

Newsprint demand is expected to grow at a moderate pace of about 4-5% over the next couple of years, the demand will be driven by the gradual rise in the literacy rates and steady growth of Newspaper circulation at about CAGR of 3-3.5%. There is unlikely to be any new capacity addition in the Newsprint segment, the share of imports may rise to about 68% and the capacity utilization of the domestic producers will also rise. The industry will also be supported by rise in the advertisement revenue due to increased economic activity of a proactive government, leading to increase in the number of pages per copy.

 

The demand of Paper and Paper Board is set to rise to robust 7-8%. The demand is expected to be led by FMCG and Pharmaceuticals due to the growth in the rural markets, availability of credit for consumer durables and increasing spend on the health care. The electronics and e-commerce are other sectors which will lead the demand growth. The rising affordability leading to shorter replacement cycles, multiple ownership of durable products and rise in e-commerce which fulfills the aspiration of the people in the remotest corner of India is going to be the demand generator in the economy. The increased use of packaging of fruits and vegetables also lends its share in increasing the demand for the paper board.

 

The per capita consumption of paper in India is a mere 11-12 kg in comparison to world average of 57 kg. The growth of paper industry is directly correlated to the growth in the economy, with the Indian economy expected to grow at a healthy pace, the paper industry will perform better in the coming years.

 

FUTURE OUTLOOK

 

The implementation of the GST law, which is the single biggest change in the business environment of modern India alongwith the emphasis of the Central Government in curtailing the unreported economic activity is going to be a big disruptor. This is going to transfer the scale in favour of more organized and formal economic activity. The implementation of the GST has removed the trade barriers caused by individual state taxation and smoothened the flow of goods across state borders. The growth prospects of paper and paper board industry are closely aligned with that of the economy in general and the growth in paper industry has historically followed the national GDP growth rate. The company is located centrally and equidistant from major markets. Therefore, the implementation of the GST act will open new frontiers and possibilities for the company.

 

In the recent past the paper industry has seen consolidation of capacities where in small and marginal players have closed down and efficient responsive managements have increased the production capacities by brownfield and green field expansions. There has been a shake up in the writing and printing paper segments where even the established producers have been forced to close down production. The demand growth forecast and closure of existing plants has opened new avenues for the existing players. The industry is poised to witness increased capacity utilisations and realisations in coming years.

 

Their company has been actively participating in the ongoing changes in the industry keeping in line with the trends in the industry. The company has focused on increasing the production of packaging and paper board segment as the robust growth in e-commerce, FMCG, Consumer goods, Healthcare etc. is likely to drive the paper board demand in coming years. The company has also focused in increasing its share in WandP segment as rising litereacy, school enrolment drive and formalization of the economy will lead to increased growth in this segement. The company has been focused on its Newsprint business, it is likely to benefit from implementation of the GST as it will be able to get credit on the input tax under the GST regime. The major customers are situated in away states, they will be able to take the benefit of input tax credit, making the products of the company more competitive. The governments focus to kick start the economy by focusing the expenditure on infrastructure thereby increasing the print advertisement spend which is expected to increase the number of pages and copies of newspaper. Increase in the general level of literacy and continued rise in the readership will further add to the growth prospects of the Newsprint Division. The company has been adapting its product portfolio to compete in emerging market conditions.

 

The company is likely to witness the benefits of better realisation in the coming year due to the change in the business environment, efforts taken by it in the past years to increase the quality and production and to diversify its product portfolio. The company continues to focus on the long term and it continues its drive for sustainable growth.

 

UNSECURED LOAN:

 

PARTICULARS 

31.03.2017

INR In Million

31.03.2016

INR In Million

LONG TERM BORROWINGS

 

 

Loans and advances from related parties

41.900

43.600

Loans and advances from Inter Corporate

322.650

301.200

Loans and advances from others

0.000

15.000

Total

364.550

359.800

 

 

 

STATEMENT OF UN-AUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2017

(INR in million)

 

 

Particulars

Quarter Ended

Nine months  ended

31.12.2017

30.09.2017

31.12.2017

Unaudited

Unaudited

Unaudited

 

Income from Operations

 

 

 

 

Net Sales/Income from Operations (net of excise duty)

718.971

675.552

2085.347

 

Other Income

3.346

3.127

9.654

 

Total Income from Operations (Net)

722.317

678.679

2095.001

 

Expenses

 

 

 

 

 

Cost of Materials consumed

500.512

481.252

1442.488

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

8.158

(2.268)

(4.813)

 

 

Employee benefit expenses

20.324

18.964

58.159

 

 

Finance Costs

32.076

33.538

91.646

 

 

Depreciation and amortization expense

11.998

11.953

35.993

 

 

Excise Duty

0.000

0.000

29.274

 

 

Other expenses

144.258

131.453

431.985

 

Total Expenses

717.326

674.892

2084.731

 

 

Profit /(Loss) before tax

4.991

3.787

10.269

 

Tax Expense

1.559

1.186

3.207

 

 

Profit /(Loss) after tax

3.432

2.601

7.062

 

Earnings per share (EPS) (INR)

 

 

 

 

Basic

0.20

0.15

0.41

 

Diluted

0.20

0.15

0.41

 

 

NOTES:

 

The Unaudited Financial results for the quarter ended on Dec 31, 2017 of the Company have been reviewed by the Audit Committee and subsequently approved by the Board of Directors at meeting held on March 12, 2018

 

The Company has adopted Indian Accounting Standards (Ind AS) with effect from April 1, 2017 (transition date being April 01,2016) and accordingly, the above results have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 prescribed under Section 133 of the Companies Act, 2013. As per SEBI Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016, the Company has Ind AS compliant financial results for the corresponding quarter ended Dec 31, 2016.

 

There is a possibility that these Quarterly financial statements may require adjustments before constituting the Final IND AS financial statements as of and for the year ending March 31, 2018 due to changes in financial reporting requirement arising from new or revised standards or interpretations issued by MCA or changes in the use of one or more optional exemptions from full retrospective application of certain IND AS as permitted under IND AS 101.

 

The Auditors of the Company have carried out Limited Review of unaudited financial results for the quarter ended September 30, 2017 as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the related report is being submitted to the concerned stock exchange. The Results for September 30, 2016 have not been subject to limited review or Audit. However, the Management has exercised necessary due diligence to ensure that the said Financial results provide a true and fair view of the Company's affairs.

 

 

Reconciliation of the Net profit between previous GAAP to Ind AS for the Quarter ended Dec 31, 2016.

 

Net Profit as per Indian GAAP

4.653

Adjustment for Government Grant(IND AS -20)

2.499

Fair Valuation of Assets and Liabilities (IND AS- 109)

(2.499)

Net Profit as per Ind AS

4.653

 

The Company operated in oune business segment as per Ind AS 108

 

Revenue from Operations for the Quarter ended September 30,2017 is shown net of Goods and Service Tax(GST).However Revenue from operations for the immediate preceding quarter, corresponding previous year quarter , previous half year and previous financial year is shown inclusive of excise duty.For Comparision purposes ,revenue excluding GST/Excise duty is given below.

 

 

 

Particulars

Quarter Ended

Nine months  ended

31.12.2017

30.09.2017

31.12.2017

Unaudited

Unaudited

Unaudited

 

 

 

 

 

 

Revenue excluding GST/Excise duty

718.971

675.552

2056.073

 

Figures for the previous period have been regrouped, whereever necessary, to correspond with the current period.

 

INDEX OF CHARGE:

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

B92415587

10383237

AXIS BANK LIMITED

29/09/2012

05/11/2013

-

1131800000.0

TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN

2

G47318746

10023999

UTI BANK LIMITED

01/11/2006

-

27/06/2017

450000000.0

MAKER TOWERS F, 13TH FLOOR,CUFFEE PARADE, COLABA,MUMBAIMH440005IN

3

G40327090

10111570

AXIS BANK LIMITED

24/04/2008

-

06/04/2017

100000000.0

M. G. HOUSE, RABINDRANATH TAGORE ROAD,BESIDES BOARD OFFICE, CIVIL LINES,NAGPURMH440001IN

4

G40140493

10111558

AXIS BANK LIMITED

24/04/2008

-

07/03/2017

409500000.0

M. G. HOUSE, RABINDRANATH TAGORE ROAD,BESIDES BOARD OFFICE, CIVIL LINES,NAGPURMH440001IN

5

B39383823

10081806

ICICI BANK LIMITED

19/09/2007

-

27/04/2012

1700000.0

CIVIL LINES, AKASHWANI CHOWKNAGPURMH440001IN

6

B08542284

90153825

STATE BANK OF INDIA

30/07/2001

-

16/03/2011

47500000.0

INDUSTRIAL FINANCE BRNACHNAGPURMHIN

7

B08541591

90154652

STATE BANK OF INDIA

30/07/2001

10/04/2007

16/03/2011

93700000.0

INDUSTRIAL FINANCE BRANCH,BHARAT NAGAR, AMARAVATI ROAD,NAGPURMH440010IN

8

B08541054

90154862

STATE BANK OF INDIA

09/08/2001

-

16/03/2011

47500000.0

INDUSTRIAL FINANCE BRNACHBHARAT NAGARNAGPURMH440010IN

9

B08541989

90153285

STATE BANK OF INDIA

06/06/1996

25/03/2000

16/03/2011

5430000.0

INDUSTRIAL FINANCE BRNACHBHARAT NAGARNAGPURMH440010IN

10

A39841580

10007688

CITICORP FINANCE (INDIA ) LIMITED

27/04/2006

-

28/05/2008

1650000.0

3RD FLOOR GUPTA HOUSE,CIVIL LINESNAGPURMH440001IN

 

 

CONTINGENT LIABILITIES

 

PARTICULARS 

31.03.2017

INR In Million

31.03.2016

INR In Million

 

 

 

Bank Guarantee Outstanding

25.400

14.673

Letter of Credit/Buyer's Credit

74.297

119.625

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

61.401

61.401

 

 

FIXED ASSETS:

 

Tangible Assets

 

  • Leasehold Land
  • Freehold Land
  • Factory Building
  • Office Building
  • Staff Quarters
  • Plant & Machinery
  • Furniture & Fixture
  • Office Equipment
  • Computers
  • Boiler
  • Captive Power Plant
  • Fire Fighting Equipments
  • Water Supply Equipments
  • Electrical Installation
  • Crane,Weigh bridge, Workshop Equip
  • Effluent Treatment
  • Vehicles

 

 

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

INR

US Dollar

1

INR 67.96

UK Pound

1

INR 91.88

Euro

1

INR 80.28

 

 

INFORMATION DETAILS

 

Information Gathered by :

KAM

 

 

Analysis Done by :

NIS

 

 

Report Prepared by :

KVT

 

 

SCORE FACTORS

 

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

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.