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
 
Audited Financial Results for the Year Ended 31.12.2006
         
(Rs In Lacs)
 
Quarter
Ended
31.12.2006
(Unaudited)
Quarter
Ended
31.12.2005
(Unaudited)
Year
Ended
31.12.2006
(Audited)
Year
Ended
31.12.2005
(Audited)
Gross Sales
14,583
13,256
57,957
49,841
Less: Excise & Sales Tax
1,861
1,749
7,836
6,555
Net Sales / Income from Operations
12,722
11,507
50,121
43,286
Other Income (Refer Note F)
250
332
1,116
949
Total Expenditure
11,462
10,037
44,619
37,818
  (Increase)/ Decrease In Stock In Trade
270
7
11
(306)
  Consumption of Raw & Packing Materials
 
8,833
7,730
34,934
30,055
  Staff Costs
 
899
869
3,779
3,214
  Other Expenditure
 
1,460
1,431
5,895
4,855
Interest (Net)
 
(7)
16
30
54
Gross Profit
 
1,517
1,786
6,588
6,363
Depreciation & Amortisation
 
591
618
2,306
2,494
Profit Before Tax & Extraordinary Items
 
926
1,168
4,282
3,869
Extraordinary Items(+Income/(-)Loss)(Refer Note G)  
4
1,208
(80)
Profit Before Tax & After Extraordinary Items  
926
1,172
5,490
3,789
Provision For  - Current Taxes (Refer Note H)
 
186
373
1,208
1,285
                     - Fringe Benefits Tax  
17
13
51
34
                     - Deferred Taxes
 
(34)
(65)
237
(297)
Profit After Tax
 
757
851
3,994
2,767
Dividend recommended per Equity Share (Rs.)
 
9.00
7.00
Paid Up Share Capital - Equity Face Value Rs.10
 
1,254
1,254
1,254
1,254
Reserves (Excl. Revaluation Reserve)
20,837
18,130
Basic & Diluted EPS including Extraordinary Items (Non Annualised) (Rs.)
 
6.03
6.79
31.85
22.07
Basic & Diluted EPS excluding Extraordinary Items (Non Annualised) (Rs.)  
6.03
6.76
26.73
22.71
Aggregate of Non - Promoter Shareholding
 
- Number of Shares
 
4,546,916
4,546,916
4,546,916
4,546,916
- Percentage of Shareholding
 
36.27%
36.27%
36.27%
36.27%
Notes:        
(Rs. In Lacs)
A. Inter Unit Sales (Incl. in Net Sales above)
 
895 
911 
3,653
3,457
 
Auditors have qualified their opinion on the results for the year ended 31st December 2006 (as in the prior periods) for inclusion of inter unit sales in net sales & raw materials consumed. The management has continued with this practice as in its view this treatment helps in correctly evaluating the operating profit ratio & the asset turnover ratio. Further this treatment has no impact on profits for the year or reserves.
B.
There were no investor complaints pending at the beginning of the quarter. One investor complaint was 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 commissioner of excise vide his order dated 22nd September 2004 has raised an excise duty demand of Rs.320 Lacs. CESTAT vide it's order dated 15th July 2005, recieved by the company in August 2005, has upheld the order passed by the commissioner, however, an appeal against CESTAT's order has been preferred before the Supreme Court & stay obtained. An appeal against a demand of Rs.53 Lacs on similar matter is pending before Supreme Court. Consistent with the previous stand and based on the opinion of the legal counsel, no provision is made in the financial statements.
E.
Work on the North India Greenfield project in state of Uttaranchal is progressing satisfactorily & commercial production has commenced in January 2007 in a phased manner.
F.
Other Income includes profit of Rs.139 Lacs realised on the disposal of leasehold land accounted in Q3- 2006.
G.
During Q3-2006, the outstanding insurance claim pertaining to damage to assets at Thane plant due to water inundation was settled. In terms of the settlement agreement and based on legal opinion obtained by the management, Rs. 1208 Lacs (net of constituents of loss as estimated by management) has been disclosed as extra-ordinary item. This surplus is being utilised for replaceing the damaged equipments. (Previous year extra-ordinary item of Rs.80 Lacs constituted net loss to assets/inventories damaged (net of estimated/settled insurance claim) as estimated by the management pursuant to damage caused by water inundation at Thane plant due to heavy rains in Thane & Mumbai on 26th July, 2005.)
H.
Provision for current taxes is net of write back in Q4-2006 of excess provision for earlier year of Rs. 135 Lacs.
I.
The directors have recommended dividing one equity share of the face value of Rs.10 each fully paid-up into five equity shares of the face value of Rs.2 each fully paid-up.
J.
The above results were reviewed by the audit committee & taken on record by the board in it's meeting held on 31st January 2007.

Mumbai    
  For The Paper Products Ltd.
31st January, 2007 
(Visit us at our website: www.pplpack.com)          Suresh Gupta - Managing Director