Emami Paper Mills - Appraisal Note

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emami paper mills

Text of Emami Paper Mills - Appraisal Note

WORKING CAPITAL MANAGEMENT (FI-221)

Appraisal Note for Working Capital Assessment of:

Emami Paper Mills

Project Aim: Increase WC by 20 croresPROCESS NOTE

(To be forwarded by Branch to Zonal Office in respect of Credit Limits of Rs. 1.00 Crore and above)

Ref. No.: MOB/Assignment01

Date: October 21/2015

Date of receipt of Proposal at the Branch: October 10/2015Branch: IIM KOZHIKODECredit Risk Code: BZone: KeralaAsset Classification: Std.

NAME OF THE BORROWER: Emami Paper Mills Ltd.

I. PRESENT PROPOSAL: For sanction of Fresh ()/Renewal/Enhancement of Credit facilities as follows:

Nature of facilityExisting LimitsLimits AppliedLimits now proposed

Secured Overdraft

(Cash Credit)

From other banks -

Rs.89.67 crores(Since April 2006)SOD-Rs.20 crores

SOD-Rs.20 crores

Note: It is assumed that the Term Loan enhancement proposal has been sanctioned separately.

SOD: Secured overdraft (also secured cash credit) Also Summary of deposit

OCC: open cash credit

TL: Term loanDPG: Deferred Payment GuaranteeII. PARTICULARS OF THE BORROWER:

1. Constitution

: Limited Company

2. Address of Registered Office : 687, Anandpur, 4th Floor, E.M. Bypass, Kolkata, West Bengal 700107, India3. Address of Factory/Unit at : 687, Anandpur, 4th Floor, E.M. Bypass, Kolkata, West Bengal 700107, India4. The Company has plant locations at the following sites: India- Balasore (Odhisha), Kolkata

Other Places: NilGroup to which the Co. belong : Emami Ltd.

5. Date of Incorporation

:19826. Sector

:Private

7. Line of Activity

DivisionLine of ActivityDate of commenceme-nt of comm. production

Paper Production

The Company possesses an installed capacity to manufacture 1,45,000 tonnes per annum of newsprint, printing and writing paper.1982

8. Products manufactured : The company manufactures the following products

ProductsCapacity

LicensedInstalledPresent Operating

1. Newsprint2. Writing and Printing paperNot applicableNot applicable

Not ascertainableNot ascertainable(metric tonnes)Total = 1,45,000

III. OWNERSHIP AND MANAGEMENT:

BOARD OF DIRECTORS

Name Designation/Area

A.V. Agarwal Executive ChairmanManish Goenka

Whole time directorP.S. Patwari

Executive Director

M.B.S Nair

Director - OperationsJ.N. Godbole

Director - Operations

H.M. Marda

Director - Operations J.K. Khetawat

Director - Operations S. Balasubramanian

Director - Operations U.G. Bhat

Director - Operations Richa Agarwal

Director - Operations

S.K. Jain

Sr. President

S.K. Khetan

President Finance and CFOMANAGEMENT:

Chairman: Mr. Tata, B.Sc. (Architecture), AMP (Harvard) joined the Tata Group in 1962. Mr. Tata is the Chairman of Tata Sons Limited since 1991, the apex holding company of the Tata Group and is the Chairman of major Tata Companies and Tata Trusts. He is the Chairman of the Investment Commission set up by the Government of India. He is also a member of several international boards/committees. He was also on the Central Board of the Reserve Bank of India.Vice-Chairman :Mr. Krishna Kumar, M.A. served as the Managing Director of the Company from May 1991 to January 1998. He was appointed Vice Chairman and Managing Director in 1997. In 1998 he ceased to be the Managing Director to take over as the Managing Director of The Indian Hotels Co. Ltd. He is also on the Boards of a number of Tata Group companies including Tata Sons Ltd. and Tata Industries Ltd. He is also trustee of several important Tata Trusts. Mr. Krishna Kumar is associated with the Tea industry for over 40 years. He has long experience of overall business management of Indian and overseas corporate bodies.

Managing Director: Mr. Siganporia is a Graduate in Science and holds a Post Graduate Diploma in Business Management from Xavier Labour Relations Institute, Jamshedpur. He joined the Tata Group as a Tata Administrative Services Officer and was deputed to your Company in 1974. Since then, Mr. Siganporia has held several senior positions in the marketing and sales functions of the Company including General Manager- Packet Tea Division, Vice President Marketing and Senior Vice President North India Plantation division before being appointed to the Board as a Wholetime director from 16.6.2000. With effect from 19.2.2001, Mr. Siganporia was designated as Deputy Managing Director of the Company by the Board. Mr. Siganporia has over 29 years work experience. At present, Mr. Siganporia has the overall charge of the North India Business Division of the Company and is also the Managing Director of the Company.Director -Business Management & Finance.: Mr. Kavarana, B. Com. FCA (Eng & Wales) MBA, USA has very long experience of management and administration of several large Tata companies both in India and abroad. Mr. Kavarana oversees the insurance business of the Tata Group as Chairman.

Director- Marketing:Mr. Pringle, B.Sc. (Economics) is the Vice Chairman & Chief Executive Officer of the Tetley Group Ltd. He was earlier Marketing Director of Joshua Tetley & Sons Ltd. He became Marketing Director of Lyons Tetley in 1988. He held several Senior Management positions in The Tetley Group. He is the Managing Director of Tetley GB since 1995.

Addl. Director- Financial Advising: Mr. Gandhi, B.Com, FCA (England & Wales) is a reputed Chartered Accountant and also a Member of the Chartered Institute of Taxation, London. Mr. Gandhi as an Executive Director of Tata Sons Ltd. has been assisting the Tata Group in acquiring diverse assets and companies across the globe. Mr. Gandhis professional career spans nearly 40 years and he has handled numerous mergers and acquisitions, both crossborder and domestic. He is a Member of the various committees constituted by industry forums and regulatory bodies such as SEBIs Takeover Panel Exemption Committee and the Accounting Standards Board of the Institute of Chartered Accountants of India.

Director:Mr. Engineer, B.A. (Hons.), LL.B. is a senior Advocate and Solicitor of the Bombay High Court and a senior Partner in Crawford Bayley & Co., a leading firm of Solicitors. He specializes in Indirect taxation, Arbitration, Litigation and various facets of Corporate Law. He is the former President of the Bombay Incorporated Law Society and has served on the Governing Council of the Bar Association of India. His expertise are in the areas of laws, regulations, taxation etc. A practising solicitor for several decades, Mr. Engineer has been associated with various Chambers of Commerce.

Director: Mr. Malegam, Chartered Accountant, till recently was the Senior Partner of S. B. Billimoria & Co., a leading firm of Chartered Accountants of India. Mr. Malegam is an expert on issues relating to Finance, Taxation, Capital Market, Securities Laws and Regulations. He is a member of the Governing Board of the Reserve Bank of India and has served many important committees set up by the Government/SEBI as Chairperson/Member. He is the Chairman of the National Advisory Committee on Accounting Standards set up by the Government of India. He was the Chairman of the SEBI Committee on Disclosure Requirements in Offer Documents. Mr. Malegam is a member of the Indian Institute of Bankers.

Director: Dr. Patel, Bachelor of Veterinary Science & Animal Husbandry, is an eminent professional in the field of Dairy Development, Co-operatives, Rural Management, Animal Husbandry, Ecological & Environmental matters. She is currently the Chairman of National Dairy Development Board, Mother Dairy Fruit & Vegetable Ltd. and several other companies as mentioned below. She has been conferred the Padma Bhushan by the Government of India.Solicitors and Legal Advisors n/aAuditors S.K. Agarwal & Co. Chartered AccountantsParticulars of present key personnel and the: Board Committees area supervised by them

Audit Committee

1. Shri J. Godbole - Chairman

2. Mr. H. M. Marda - Member

3. Mr. J. K. Khetawat MemberShareholders/Investors Grievance Committee

Not availableRemuneration Committee

1. Mr. J. Godbole - Chairman

2. Mr. H. M. Marda - Member

3. Mr. J. K. Khetawat - Member

4. Mr. S. Balasubramanian - MemberExecutive Committee

Not availableNomination Committee

Not availableEthics & Compliance Committee

1. Richa Agarwal - Chairman

Corporate Sustainability Reporting Committee

Not availableParticulars of present Key personnel/executives and the area supervised by them:

Group CFO : Mr.L Krishna Kumar

GM Sales & Marketing -Dubai: Mr. S DeshmukhGM Instant Tea Operations : Mr. S Ravi

GM- Mktg & Sales South: Mr. P P DantGM- Head - Tea Blending: Mr. Hazarika Abhijeet

GM- Tata Tetley Division: Mr.Hazarika Asim

GM- Business Excellence : Mr. Sunder RamakrishnaGM- Head - Sales : Mr. Vyas S

VP & Secretary : Mr. D K SenVP Tea Buying Blending & Bulk Tea Sale : Mr. K N DesaiVP & Head North India Plantation Opera: Mr. D BorahVP Finance : Mr. K Venkataramanan

VP- Special Projects: Mr. J Bhatt