www.hnlonline.

com

12.4 Hindustan Newsprint Ltd.

Hindustan Newsprint Ltd. (HNL) was incorporated as a wholly owned subsidiary of Hindustan Paper Corporation Ltd. (HPC) in 1982 with the main objective of taking over the business of Kerala Newsprint Project, a unit of Hindustan Paper Corporation Ltd. HNL is a Schedule- B Miniratna CPSE in consumer goods sector under the administrative control of Ministry of Heavy Industries & Public Enterprises, Department of Heavy Industry. Its Registered and Corporate offices are at Kottayam, Kerala. The vision of the company is to operate large capacity Newsprint / Paper Mills on sound commercial principles and to continuously upgrade and upscale production output and enhance market share. The mission of the company is to be the foremost and largest producer of quality Newsprint HNL is engaged in production of standard Newsprint grades of 45 GSM and 48.8 GSM of quality from its single operating unit. The physical performances of the company for last three years are given below:
Main Product Newsprint Capacity Utilization Domestic Market Share Unit MT % % Performance During 2010-11 104911 105 14 2009-10 100546 101 12 2008-09 108005 108 12

Human Resource Management

The company employed 909 regular employees as on 31.3.2011. The retirement age in the company is 60 years. It is following IDA 2007 pattern of remuneration. Details of employment in last 3 years are given below:
Particulars Executives including NonUnionised Supervisors Non-Executives # Total Employees 2010-11 257 652 909 2009-10 277 701 978 2008-09 301 735 1036

Vision / Mission

# Detail break-up of Non-Executive employees is at Statement no. 25 of volume-I of PE Survey.

Industrial / Business Operations

HNL meets a major portion of its requirement of fibrous raw materials from State Government forest sources. The Company also maintains Captive Plantations in about 3625 ha. of forest land obtained under lease from Government of Kerala. Availability of imported newsprint at cheaper rates as a result of total abolition of customs duty continues resulting in lower net realization for domestic newsprint. The operational performance of the company along with performance indicators and selected financial ratios during the period 2008-09 to 2010-11 can be seen on the opposite page. The Company registered an increase of ` 68.79 crore in total income during 2010-11 which went up to ` 315.35 crore in 2010-11 from ` 246.56 crore during 2009-10. The company has shown a net profit of ` 5.04 crore as against the previous years loss of `48.03 core due to increase in production and increase in selling price. However, steep increase in cost of production curtailed the profit margin.

Strategic issue

Performance Highlights

278

Consumer Goods

Newsprint Nagar PO, Kottayam, Kerala 68661

Hindustan Newsprint Ltd.

Balance Sheet Particulars Authorised Capital (1) Sources Of Fund (1.1) Shareholders Funds (A) Paid-Up Capital Central Govt Others (B) Share Application Money (C) Reserves & Surplus Total (A) + (B) + (C) (1.2) Loan Funds (A) Secured Loans (B) Unsecured Loans Total (A) + (B) (1.3) Deferred Tax Liability Total (1.1) + (1.2) + (1.3) (2) Application Of Funds (2.1) Fixed Assets (A) Gross Block (B) Less Depreciation (C) Net Block (A-B) (D) Capital Work In Progress Total (C) + (D) (2.2) Investment (2.3) Current Assets, Loan & Advances (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Other Current Assets (E) Loan & Advances Total (A)+ (B)+ (C)+ (D)+ (E) (2.4) Less:current Liabilities & Provisions (A) Current Liabilities (B) Provisions Total (A+B) (2.5) Net Current Assets (2.3-2.4) (2.6) Deferred Revenue / Pre. Expenditure (2.7) Deferred Tax Asset (2.8) Profit & Loss Account(Dr) Total (2.1+2.2+2.5+2.6+2.7+2.8) 6370 1470 7840 8119 0 0 0 23598 6571 1849 8420 5809 0 0 0 22200 6909 2868 3504 85 2593 15959 6106 1698 3569 27 2829 14229 41960 27273 14687 792 15479 0 40632 26102 14530 1861 16391 0 1367 0 1367 3017 23598 0 0 0 3025 22200 0 10000 0 9214 19214 0 10000 0 9175 19175 2010-11 10000 2009-10 10000

(` in Lakhs) 2008-09 10000

Profit & Loss Account Particulars (1) Income (A) Sales/Operating Income (B) Excise Duty 30174 8 30166 1352 17 31535 28445 7 28438 459 -4241 24656 2010-11 2009-10

(` in Lakhs) 2008-09

29782 14 29768 694 4283 34745

0 10000 0 13977 23977 3266 0 3266 3245 30488

(C) Net Sales (A-B) (D) Other Income/Receipts (E) Accretion/Depletion in Stocks (I)Total Income (C+D+E) (2) Expenditure (A) Purchase of Finished Goods/ Consumption Of Raw Materials (B) Stores & Spares (C) Power & Fuel (D) Manufacturing / Direct / Operating Expenses (E) Salary, Wages & Benefits / Employee Exp. (F) Other Expenses

13036 851 8528 1348 5864 176 11 29814 1721 1176 0 545

12280 854 7431 816 6099 1222 0 28702 -4046 1229 0 -5275

9644 895 8165 1857 5705 4470 547 31283 3462 1202 0 2260

40353 24873 15480 1713 17193 0

(G) Provisions (II)Total Expenditure (A to G) (3) Profit Before Dep, Int, Taxes & EP (PBDITEP) (I-II) (4) Depreciation (5) Dre/Prel Exp Written Off (6) Profit Before Int., Taxes & Ep (Pbitep) (3-4-5)

14415 4298 375 22 2803 21913

(7) Interest (A) On Central Government Loans (B) On Foreign Loans (C) Others (D) Less Interest Capitalised (E) Charged to P & L Account (A+B+C-D) (8) Profit Before Tax & EP(PBTEP) (6-7E) (9) Tax Provisions (10) Net Profit / Loss Before EP (8-9) (11) Net Extra-Ord. Items (12) Net Profit / Loss(-) (10-11) (13) Dividend Declared (14) Dividend Tax (15) Retained Profit (12-13-14) 0 0 62 0 62 483 38 445 -59 504 400 65 39 0 0 66 0 66 -5341 -497 -4844 -41 -4803 0 0 -4803 0 0 134 0 134 2126 846 1280 16 1264 1000 170 94

7275 1343 8618 13295 0 0 0 30488

Important Indicators (i) Investment (ii) Capital Employed (iii) Net Worth (iv) Cost of Production (v) Cost of Sales (vi) Gross Value Added (At Market Price) (vii) Total Employees (Other Than Casuals) (Nos.) (viii) Avg. Monthly Emoluments Per Employee (Rs.)

2010-11 10000 22806 19214 31052 31035

2009-10 10000 20339 19175 29997 34238

2008-09 10000 28775 23977 32619 28336

Financial Ratios (i) Sales : Capital Employed (ii) Cost of Sales : Sales (iii) Salary / Wages : Sales (iv) Net Profit : Net Worth (v) Debt : Equity (vi) Current Ratio (vii) Sundry Debtors : Sales (No. of Days) (viii) Total Inventory : Sales

2010-11 132.27 102.88 19.44 2.62 0.07 2.04 34.7 83.6

2009-10 139.82 120.4 21.45 -25.05 0 1.69 21.79 78.37

2008-09 103.45 95.19 19.16 5.27 0.14 2.54 52.7 176.75

909 53759

978 51968

1036 45890

Public Enterprises Survey 2010-2011: Vol-II

279