Annual Report 2011 - Ballarpur Industries Limited

40
fINANcIAL HIGHLIGHTS in RS CRORE
consolidated standalone
particulars 2010-11 2009-10 2010-11 2009-10
Net Sales 4498.05 3794.59 1059.12 1020.58
Profit before Interest and Depreciation 875.02 818.36 171.95 193.10
Less: Interest and Finance Charges (Net) 270.45 237.12 37.47 22.32
Profit before Depreciation 604.57 581.24 134.48 170.78
Less: Depreciation 335.13 301.89 84.04 83.37
Net Profit for the year before Tax 269.44 279.35 50.44 87.41
Less: Provision for Taxation 3.38 38.94 20.29 29.13
Net Profit after Tax 266.06 240.41 30.15 58.28
Less: Excess Provision for Taxation relating to earlier Years 0.46 — — —
Less: Minority Interest 52.90 43.41 — —
Add: Balance brought forward from the previous year 647.80 496.52 315.09 302.53
Add: Debenture Redemption Reserve no longer required 7.50 7.50 7.50 7.50
Less: Adjustment for change in holding of subsidiary/ associate company
Leaving a surplus of
Which your directors recommend, be appropriated as follows:
868.00 701.02 352.74 368.31
Transfer to General Reserve 5.00 15.00 5.00 15.00
Transfer to Debenture Redemption Reserve
Payment of Dividend:
198.75 — 11.25
Proposed Dividend on 65,55,23,839 Equity Shares of Rs. 2/- each @ 30 per cent 39.33 32.78 39.33 32.78
Add: Dividend Tax 6.38 5.44 6.38 5.44
Balance carried forward to next year’s Account 618.54 647.80 290.78 315.09
operations
A detailed review of the consolidated
performance of your Company is given in
the Management Discussion & Analysis
Report, which is a separate chapter in the
Annual Report.
OVERSEAS LISTING OF
SECURITIES
During the year, BILT Paper Plc (BPP)
was incorporated in the United Kingdom
as a wholly owned step down subsidiary
of the Company. On 22 March 2011, BPP
announced its intention to apply (ITF) for
admission to the premium listing segment
of the official list of the UK Listing Authority
(“UKLA”), to trade on the main market of the
London Stock Exchange and to undertake
an offering of ordinary shares (IPO) of
approximately US$330 million for capital
expenditure and debt reduction.
In recognition of quality of its business
and general interest in the Indian paper
industry, your Company witnessed
considerable interest and engagement
from institutional investors in the United
ballarpur industries limited | annual report 2010–11
Kingdom, Europe and the United States
of America (USA). The acquisition
announcement in the last week of March
2011 by International Paper Company,
USA in the Indian market has set a new
benchmark for the valuation of paper
companies in India and will in all probability
lead to a re-rating of the Indian paper
industry. Given the interests of existing
shareholders in the Company and the
objective of maximizing value for them, the
Company believes it is important to study
the impact of the acquisition valuation
and the potential re-rating possibilities, as
against the IPO valuation. Accordingly, it has
put on hold the IPO process.
Ballarpur International Graphic Paper
Holdings B.V. (BIGPH), a stepdown
subsidiary of your Company was rated BB- /
BB- by Standard & Poor’s International
(S&P) and FITCH, respectively. On 5
August 2011, your Company successfully
completed its debut transaction in the
international bond markets by raising US$
200 million perpetual non-callable
5 / 10 year bonds at 9.75 per cent rate per
annum. This was successfully done through
dollar-denominated Subordinated Perpetual
Capital Securities (Bonds), despite turbulent
market conditions. The bonds are listed
on the Singapore Stock Exchange. The
proceeds from the issue of Bonds shall be
used for repayment of existing debt and to
fulfil the capital expenditure requirements of
subsidiaries of BIGPH. In several ways, this
was a pioneering transaction. Most notably,
it is the first true US dollar denominated
perpetual capital security from India, the
first instance of an Asian issuer making
a debut through issuance of a perpetual
capital security, Asia’s first non-listed hybrid
issuer and Asia’s first non-investment grade
US dollar new issue since May 2011. S&P
and FITCH have given a 50 per cent equity
credit for the said Bonds, which are entitled
to a 100 per cent equity credit accounting
under International Financial Reporting
Standards.
ACqUISITION OF PREMIER
TISSUES (INDIA) LIMITED
During the year under review, your Company
has acquired 100 per cent equity in
Bangalore based Premier Tissues (India)
Limited (PTIL) for an enterprise value of