Audited Financial Results for the Year Ended 31.12.2007

         
(Rs in Lacs)
   
Quarter
Ended
31.12.2007
(Unaudited)
Quarter
Ended
31.12.2006
(Unaudited)
Year
Ended
31.12.2007
(Audited)
Year
Ended
31.12.2006
(Audited)
Gross Sales  
17,027
14,583
64,327
57,957
Less: Excise & Sales Tax  
1,700
1,861
7,268
7,836
Net Sales / Income from Operations  
15,327
12,722
57,059
50,121
Other Income (Refer Note D,E & F)  
335
250
1,170
1,116
Total Income  
15,662
12,972
58,229
51,237
Expenditure  
  (Increase)/ Decrease In Stock In Trade  
(37)
270
(752)
11
  Consumption of Raw & Packing Materials  
10,923
8,833
41,333
34,934
  Staff Costs  
1,181
899
4,394
3,779
  Depreciation & Amortisation
  
752
591
2,886
2,306
  Other Expenditure  
1,662
1,460
6,499
5,895
Total Expenditure  
14,481
12,053
54,360
46,925
Interest (Net)  
66
(7)
173
30
Profit Before Exceptional Items  
1,115
926
3,696
4,282
Exceptional Items(+Income/ (-) Loss) (Refer Note G)
  
-
-
(318)
-
Profit from Ordinary Activities Before Tax
  
1,115
926
3,378
4,282
Provision for  - Current Taxes (Refer Note H)  
195
186
482
1,123
                     - Fringe Benefits Tax  
11
17
47
51
                     - Deferred Taxes  
(7)
(34)
12
(244)
Profit from Ordinary Activities After Tax  
916
757
2,837
3,352
Extraordinary Items (+Income/ (-) Loss) (Net of Tax Expense of Rs.566 Lacs) (Refer Note I)  
-
-
-
642
Profit After Exceptional, Extraordinary Items & Tax  
916
757
2,837
3,994
Dividend recommended/ paid per Equity Share (Rs.)  
1.80
1.80
Paid Up Share Capital - Equity Face Value Rs.2  
1,254
1,254
1,254
1,254
Reserves (Excl. Revaluation Reserve)  
22,279
20,837
Basic & Diluted EPS including Extraordinary & Exceptional Items
(Not Annualised) (Rs.)		  
1.47
1.21
4.53
6.37
Basic & Diluted EPS excluding Extraordinary Items
(Not Annualised) (Rs.)		  
1.47
1.21
4.53
5.35
Basic & Diluted EPS excluding Extraordinary & Exceptional Items
(Not Annualised) (Rs.)		  
1.47
1.21
4.89
5.35
Aggregate of Public Shareholding  
 
- Number of Shares  
22,734,830
22,734,580
22,734,830
22,734,580
- Percentage of Shareholding  
36.27%
36.27%
36.27%
36.27%
Notes:          
A. Inter Unit Sales (Incl. in Net Sales & Raw Materials Consumed above)
1,098
895
3,853
3,653
 
Auditors have qualified their opinion on the results for the year ended 31st December 2007 (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 & at the end of the quarter. No investor complaint was received during the quarter.
C. 

The company's sole business segment is consumer packaging & all activities of the company are incidental to this business segment.
D. 
Other Income for 2007 includes profit of Rs. 95 Lacs realised on sale of a residential property & accounted in Q3-2007. Other Income for 2006 included profit of Rs.139 Lacs realised on the disposal of leasehold land & accounted in Q3-2006.
E.
Consequent to the applicability of Accounting Standard AS 11 (Revised 2003), 'The Effects of Changes in Foreign Exchange Rates', exchange fluctuation on revaluation of liabilities \ loans incurred for acquiring fixed assets from countries outside India has been recognised in the profit and loss account, as against the earlier policy of adjusting the same in the carrying cost of the related fixed assets. Accordingly, Other income for the Q4-2007 and year ended 31st December 2007 is net of an exchange loss of Rs.22 Lacs & 5 Lacs on this account respectively and, consequently, profit is lower by Rs.22 Lacs & Rs.5 Lacs in the respective periods. Net effect of the same on the previous year is not expected to be material & has not been quantified.
F. Other Income for Q4-2007 includes an amount of Rs.69 Lacs received on account of settlement of claims.
G.
The exceptional item of Rs. 318 Lacs has arisen out of the Supreme Court judgement received by the company on a contested matter on excise duty which was shown as contingent liability in the past years' financial statements. Provision has been done in Q2-2007 based on the legal advice obtained. The Company has filed a review petition with the Supreme Court.
H.
Provision for current taxes for 2007 is net of write back in Q3-2007 of excess provision for earlier periods of Rs.150 Lacs.
I.
Extra Ordinary Item during Year 2006 of Rs.642 Lacs (net of tax expense of Rs.566 Lacs) represents the difference between the insurance claim settlement amount, the expenditure already incurred & further provision made towards repairs to be incurred in connection with damages to fixed assets at Thane Plant consequent to floods on 26th July 2005 accounted in Q3-2006.
J.
Consequent to AS 15 (Revised), 'Employee Benefits' issued by Institute of Chartered Accountants of India becoming effective the Company has adjusted the impact on the adoption of this standard of Rs.41 Lacs against opening reserves as at 1st January 2007.
K. Reconstruction of Thane Plant is ongoing.
L.
The above results were reviewed by the audit committee & taken on record by the board in it's meeting held on 29th January 2008.
Mumbai   
 
29th January, 2008  
For The Paper Products Ltd.
(Visit us at our website: www.pplpack.com)
             Suresh Gupta - Managing Director