The Paper Products Ltd
Regd Office: Regent Chambers, 13th floor, Nariman Point, Mumbai - 400 021
Corporate Office: L.B. Shastri Marg, Majiwade, Thane - 400 601
 
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER & HALF YEAR ENDED 30.06.2005
         
(Rs In Lacs)
 
Quarter
Ended
30.06.2005
(Unaudited)
Quarter
Ended
30.06.2004
(Unaudited)
Half Year
Ended
30.06.2005
(Unaudited)
Half Year
Ended
30.06.2004
(Unaudited)
Year
Ended
31.12.2004
(Audited)
Gross Sales 12,938 11,916 24,530 23,141 45,391
Less: Excise & Sales Tax 1,685 1,609 3,169 3,150 5,989
Net Sales / Income from Operations 11,253 10,307 21,361 19,991 39,402
Other Income 114 109 442 256 551
Total Expenditure 9,832 8,780 18,803 17,154 34,317
  (Increase)/ Decrease In Stock In Trade 62 (15) (46) 49 91
  Consumption of Raw & Packing Materials 7,788 6,906 15,073 13,545 26,851
  Staff Costs 820 777 1,550 1,452 2,970
  Other Expenditure 1,162 1,112 2,226 2,108 4,405
Interest (Net) 14 17 25 43 62
Gross Profit 1,521 1,619 2,975 3,050 5,574
Depreciation & Amortisation 634 564 1,259 1,061 2,209
Profit Before Tax 887 1,055 1,716 1,989 3,365
Provision For  - Current Taxes 346 330 582 592 1,017
                     - Fringe Benefits Tax 10 -   10 _   _  
                     - Deferred Taxes (97) 9 (134) 8 (63)
Profit After Tax 628 716 1,258 1,389 2,411
Dividend recommended per Equity Share (Rs.)
       6.00
Paid Up Share Capital - Equity Face Value Rs. 10 1,254 1,254 1,254 1,254 1,254
Reserves (Excl. Revaluation Reserve)       16,370
Basic & Diluted EPS (Not Annualised) (Rs.) 5.00 5.71 10.03 11.08 19.23
Aggregate of Non-Promoter Shareholding        
 - Number of Shares 4,546,916 4,539,361 4,546,916 4,539,361 4,546,916
 - Percentage of Shareholding 36.27% 36.21% 36.27% 36.21% 36.27%
Notes:        
(Rs. In Lacs)
A. Inter Unit Sales (Incl. In Net Sales above)
849 
799 
1,727 
1,601 
3,224 
 
The auditors have carried out a limited review of the financial results for the quarter ended 30th June 2005 as per clause 41 of the Listing Agreement with Stock Exchange. Auditors have qualified the opinion on the results for the quarter ended 30th June 2005 (as in the prior periods) for inclusion of inter unit sales in net sales & raw materials consumed. The same however has no impact on profits or reserves.
B.
There were no investor complaints pending at the beginning of the quarter. Two investor complaints were received & resolved during the quarter & no complaints were pending at the end of the quarter.
C.

The company's sole business segment is consumer packaging & all activities of the company are incidental to this business segment.
D. 
The historically unprecendented increase in raw material prices mid previous year driven by the surge in petrochemicals prices continues to put pressure on margins. However specific strategies are being deployed to arrest deterioration & bring positive reversal.
E. 
The commissioner has passed an order on 22nd September 2004 raising an excise duty demand of Rs.320 Lacs. The Company has filed an appeal against same before CESTAT. A demand of Rs.53 Lacs on similar matter is being contested in an appeal before the supreme court.
Consistent with the previous stand & based on the opinion of legal counsel, no provision is made in the financial statements.
F. 
Other Income for the half year ended 30th June 2005 includes Rs. 180 Lacs compensation received on settlement of a claim accounted in Q1 2005.
G. 
Previous year figures are appropriately reclassified to conform with current year's classification.
H. 
Due to incessant rains at Thane & Mumbai on 26th July 2005, the operations of Thane plant have been affected. Whilst the situation is being assessed, all steps are being taken to return to normalcy. The plants at Silvassa, Hyderabad & Nagpur are unaffected & fully operational.
I. 
The above results were reviewed by the audit committee & taken on record by the board in it's meeting held on 29th July 2005.

Mumbai
  For The Paper Products Ltd.
29th July, 2005 
  Suresh Gupta - Managing Director