Submitted By:-

PRIYAMVADA (10609165-Marketing) ABHISEK CHOUDHARY (10609066-Marketing)

(EMAMI PAPER MILLS LTD.)

Emami Paper is the largest newsprint manufacturer in India and has embarked on an expansion to emerge as one of the largest in its industry in India. Emami Paper Mills Limited (established in 1982) is a paper mill based on recycled - fiber located in Balasore (Orissa) and Kolkata (West Bengal). The Company is a constituent of the Emami Group, which possesses diverse business interests comprising FMCG, edible oil, writing instruments, healthcare, retail departmental stores and real estate.

What company produces:

The Company possesses an installed capacity to manufacture 1,45,000 tonnes per annum of newsprint, printing and writing paper.

Who are our customers:

Newsprint: Hindustan Times, The Times of India, Dainik Jagran, Dainik Bhaskar, ABP (The Telegraph, Ananda Bazar Patrika), The Samaja, Prabhat Khabar, Sanmarg, Bartaman, Malayam Manorama and Deccan Herald amongst others.

Writing and printing paper:

Government presses, Orissa Bureau of Text Books (Bhubaneswar), Yugbodh Prakashan- Raipur, Govt. Press-Cuttack, State Bank of India, UCO Bank, Swapna Printing Press-Kolkata, among others.

What company is proud of:

Emami Paper has been making profits since inception across various industry cycles. The Company achieved a record production of 144712 MT during the year achieving plant capacity utilization of almost 100%.

CERTIFICATION
ISO 9001:2000
Quality Management System

ISO 14001:2000
Environmental Management System

OHSAS 18001:1999 to OHSAS 18001:2007

Occupational Health & safety Management System

Award for TPM Excellence First Category

At Emami Paper Mills all activities narrow down to three alphabets, TPM.

Though there are many institutions, certifications in the world, it is the TPM, which focuses on culture change, cost reduction, increasing the productivity by reducing breakdown to zero, the safety of the machine, man and material. This is the factor, which induced our management to opt for TPM and make it our way of life. With this intention we have kicked-off TPM in the year 2005 and having a long journey of 7 years we have been awarded TPM Award for Excellence 1st Category. We continued with TPM practices and achieved excellence in CONSISTENT TPM COMMITMENT AWARDS in 2008.

FINANCIAL HIGHLIGHTS :
The Company registered a 54% growth in profit before tax to Rs. 18.11 crores in 2010-11 against Rs. 11.78 crores in 2009-10. Profit after taxation also jumped over 98% from Rs. 6.99 crores in 2009-10 to Rs. 13.87 crores.

CORPORATE SUSTAINABILITY
Environment management Emami Paper Mills Limited (EPML) continues to be committed to its responsible manufacturing practices and has implemented several environment-friendly processes under its well-defined Environment Policy. Some of its environmental policies are:  Clean production  Resource conservation  Responsible waste management  Minimum pollution load EPML always makes constant efforts to better the standards set by the Pollution Control Board, ensuring sufficient energy conservation with higher waste recycling. The management is committed to saving the environment and upholding human safety and health. EPML has implemented its policies and focuses on environment, health and safety, quality and energy as under:  Complying with all relevant legislative requirements  Reducing pollution load in terms of liquid discharge, air emission and land conservation  Saving energy and preserving natural resources like water, raw material, fuels  Generating awareness on environment, safety and health  Minimising unsafe acts and working conditions  Promoting comprehensive programmes to propagate health and environmental safety. The Company is well-renowned for its environmental management practices. It possesses:  State-of-art effluent treatment plant  Sludge dewatering system  Managing solid wastes through recycling  Feeding of ETP sludge to boiler for power generation  Rainwater harvesting

New vista -agro-forestry

In line with Companys plans to install an Integrated Pulp & Paper Plant to produce high end Printing & Writing graphic papers from virgin pulp out of bamboo/wood as pulpable raw materials, the Company has set up a full fledged department known as Agro-Forestry Division at Balasore to develop a sound raw material base within its catchment area. Nurseries in various districts of Orissa and West Bengal have been established to provide saplings of Eucalyptus, Acacia & Casuarina to farmers for pulp wood tree plantations under farm forestry schemes. Apart from the seed root origin based saplings, the Company has planned to use higher technology aided clonal saplings to increase productivity. A Research and Development Centre for multiplication of clones of Eucalyptus and Casuarinas has started functioning at Balasore with an initial capacity of 10 lacs clonal saplings per year which will be increased to 50 lacs clonal saplings.

The above programme will mean the following direct and indirect advantages to the region. 1. It will provide productive use of the farmers land particularly in the non-irrigated areas. 2. It will provide 200 man days per Ha per annum of employment to the rural population. 3. Apart from bringing in the dramatic change in the earning capacity of farmers, it will improve soil condition of the arid land which can help arrest of degradation and erosion. 4. It will also work as huge carbon sink to reduce the GHG problem. The Agro-Forestry Division has also taken up activities to motivate the farmers/villagers to practice inter-cropping of vegetables, pulses, etc. along with tree plantation to get more interim revenue out of these fast growing crops.

BOARD OF DIRECTORS (Size and Composition): Name & Designation In 2010-2011:

Shri R.S. Goenka (Executive Chairman) Shri R.S. Agarwal (Director) Shri S.K. Khaitan (Director) Shri Manish Goenka (Whole time Director) Shri A.V. Agarwal (Director) Shri P.S. Patwari (Executive Director) Shri S.K. Todi (Director) Shri U.G. Bhat (Director) Shri N. Mishra (Director) Shri H.M. Marda (Director) Shri J.N. Godbole (Director) Shri S. Balasubramanian (Director)

IN 2009-2010:
Shri R. S. Goenka (Executive Chairman) Shri R. S. Agarwal (Director) Shri S. K. Khaitan (Director) Shri Manish Goenka (Whole Time Director) Shri A. V. Agarwal (Director) Shri P. S. Patwari (Executive Director) Shri S. K. Todi (Director) Shri J. N. Godbole (Director) Shri U. G. Bhat (Director) Shri N. Mishra (Director) Shri H. M. Marda (Director) Shri S. Balasubramanian (Director)

IN 2008-2009:
Shri R. S. Goenka (Executive Chairman) Shri R. S. Agarwal (Director) Shri R.C. Mall (Managing Director) Shri S. K. Khaitan (Director) Shri Manish Goenka (Whole Time Director) Shri A. V. Agarwal (Director) Shri P. S. Patwari (Executive Director) Shri S. K. Todi (Director) Shri J. N. Godbole (Director) Shri U. G. Bhat (Director) Shri N. Mishra (Director) Shri H. M. Marda (Director)

CEO DUALITY:
In EMAMI PAPER MILLS there is no CEO DUALITY as in all the 3 years that we had considered there are separate Chairman and Managing Directors hence no need to analyze CEO DUALITY concept here.

FINANCIAL PARAMETERS: RONW: Return on net worth = net income/shareholders equity

year 2009-2010 2010-2011 net income(in lacs) 39,789.42 43,218.24 shareholders equity(in crore) 698.94 1386.52 RONW 56.92 31.17

ROCE: Return on Capital Employed =Net Income/Capital employed

year 2009-2010 2010-2011

net income(in lacs) 39,789.42 43,218.24

capital employed(in crore) 535.28 465.49

ROCE 74.33 92.84

PBDIT: Profit before depreciation, interest and taxes

year 2008-2009 2009-2010 2010-2011 PBDIT(IN CRORE) 93.46 77.49 66.25

ACCOUNTING BASED MEASURES: PBDT: profit before interest and taxes

year 2008-2009 2009-2010 2010-2011 PBDT(IN CRORE) 57.36 41.19 44.67

PAT/SALES:
year 2008-2009 2009-2010 2010-2011 PAT(in crore) 22.08 6.99 13.87 sales(in crore) 434.97 385.77 429.84 PAT/SALES 0.05076 0.01811 0.03226

TOBINS Q:
a. Market Capitalization b. Book value of Debt c. Book Value of TOTAL Assets Tobins Q= (a+b)/c 2010-2011 60,499,050*33= (1996468650) 385.00(Crores) 554.49(Crores) 1.17

Economics theory of investment behavior where 'q' represents the ratio of the market value of a firm's existing shares (share capital) to the replacement cost of the firm's physical assets (thus, replacement cost of the share capital).  It states that if q (representing equilibrium) is greater than one (q > 1), additional investment in the firm would make sense because the profits generated would exceed the cost of firm's assets.  If q is less than one (q < 1), the firm would be better off selling its assets instead of trying to put them to use.  The ideal state is where q is approximately equal to one denoting that the firm is in equilibrium. Tobins Q value in 2010-2011 is greater than 1 which suggest that the market value is greater than the value of the company's recorded assets. This suggests that the market value reflects some unmeasured or unrecorded assets of the company. High Tobin's q value encourages companies to invest more in capital because they are "worth" more than the price they paid for them.

CORELATIONS: Corelation between Board Of Directors and RONW:

YEAR 2009-10 2010-11 BOD 12 12 RONW 56.92 31.17

Correlations BOD BOD Pearson Correlation Sig. (1-tailed) N RONW Pearson Correlation Sig. (1-tailed) N 3 -.951 .100 3 3 1 RONW -.951 .100 3 1

As we can see that the significant value (p) is coming negative which shows that there is no correlation between the size of board of directors and the return on net worth.

Corelation between Board of directors and ROCE:

YEAR 2009-10 2010-11 BOD 12 12 ROCE 74.33 92.84

Correlations BOD BOD Pearson Correlation Sig. (1-tailed) N ROCE Pearson Correlation Sig. (1-tailed) N 3 -1.000 .009 3 3
**

ROCE -1.000** .009 3 1

**. Correlation is significant at the 0.01 level (1-tailed). We can see from the pearson one tailed test that there is a negative correlation between number of board of directors and return on capital employed. Corelation between Board of Directors and PBDIT: YEAR 2008-09 2009-10 2010-11 Correlations BOD BOD Pearson Correlation Sig. (1-tailed) N PBDIT Pearson Correlation Sig. (1-tailed) N 3 .766 .222 3 3 1 PBDIT .766 .222 3 1 BOD 12 12 12 PBDIT 93.46 77.49 66.25

As the p value is coming positive (.766) and within the range their exist a positive correlationship between the board of directors and PBDIT. REGRESSION: Regression between Board size(independent variable) versus RONW,ROCE,PBDIT(dependent variables)

YEAR 2009-10 2010-11

BOD 12 12

RONW 56.92 31.17

ROCE 74.33 92.84

PBDIT 77.49 66.25

Variables Entered/Removedb Variables Model 1 Variables Entered BODa Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: RONW

ANOVAb Model 1 Regression Residual Total a. Predictors: (Constant), BOD b. Dependent Variable: RONW Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) BOD B 1202.300 -88.911 Std. Error 337.673 28.920 -.951 Coefficients Beta t 3.561 -3.074 Sig. .174 .200 Sum of Squares 5270.164 557.570 5827.734 df 1 1 2 Mean Square 5270.164 557.570 F 9.452 Sig. .200a

a. Dependent Variable: RONW Residuals Statisticsa Minimum Predicted Value Maximum Mean 1.649993E 2 Std. Deviation 51.3330496 N 3

1.353622E2 2.242736E2 1.6696850E 1

Residual

1.6696850E 1 1.155 .707

.0000000

16.6968500

Std. Predicted Value Std. Residual

-.577 -.707

.000 .000

1.000 .707

3 3

a. Dependent Variable: RONW

By analyzing the above statistics we find that since the t-stat is coming negative i.e -3.074.it means that board size does not contribute to the Return on net worth and as such RONW is independent of the board size.Also as F value is very low that is 9.452 which means that increase or decrease in RONW is not explained by the Board size to large extent. Similarly we can find out the regression equation and parameters between the board size and the ROCE and PBDIT as well. BOARD SIZE and ROCE:

Variables Entered/Removedb Variables Model 1 Entered BOD

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: ROCE

ANOVAb Model 1 Regression Residual Total a. Predictors: (Constant), BOD b. Dependent Variable: ROCE Sum of Squares 1423.400 1.054 1424.454 df 1 1 2 Mean Square 1423.400 1.054 F 1.350E3 Sig. .017a

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) BOD a. Dependent Variable: ROCE B 680.862 -46.207 Std. Error 14.681 1.257 -1.000 Coefficients Beta t 46.376 -36.749 Sig. .014 .017

Residuals Statisticsa

Minimum Predicted Value Residual Std. Predicted Value Std. Residual a. Dependent Variable: ROCE 126.3761 -.72595 -.577 -.707

Maximum 172.5832 .72595 1.155 .707

Mean 1.4178E2 .00000 .000 .000

Std. Deviation 26.67771 .72595 1.000 .707

N 3 3 3 3

Thus negative value of t stats and low value of F stats indicates that the ROCE is not affected by the board size at all and there is no relation between these dependent and independent variables.

BOARD SIZE AND PBDIT:

Variables Entered/Removedb Variables Model 1 Entered BODa Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: PBDIT

ANOVAb Model 1 Regression Residual Total Sum of Squares 4130661.454 2901616.410 7032277.864 df 1 1 2 Mean Square 4130661.454 2901616.410 F 1.424 Sig. .444a

a. Predictors: (Constant), BOD b. Dependent Variable: PBDIT Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) B -21816.335 Std. Error 24359.404 Coefficients Beta t -.896 Sig. .535

BOD

2489.175

2086.247

.766

1.193

.444

a. Dependent Variable: PBDIT

Residuals Statisticsa Minimum Predicted Value Residual Std. Predicted Value Std. Residual a. Dependent Variable: PBDIT 5.5646E3 -1.20449E3 -1.155 -.707 Maximum 8.0538E3 1.20449E3 .577 .707 Mean 7.2240E3 .00000 .000 .000 Std. Deviation 1437.12586 1204.49500 1.000 .707 N 3 3 3 3

In this case the positive t-stat value indicates that there is a relationship between these independent variables(board size) and dependent variable(PBDIT). Also as we had taken the parameters of net sales and net profit so we can infer from here that there is a positive correlation between the board size and the net profit as well, as there is a positive relationship between board size and PBDIT.