Press Information Bureau

Government of India

Ministry of Finance

10-August-2011 17:49 IST

FM Receives Maiden Dividend Cheque of Rs.115.43 Crore from SPMCIL;

SPMCIL’s Net Profit after Tax increases to Rs.577.19 Crore in 2010-11

Shri M.S. Rana, Chairman & Managing Director (CMD), Security Printing & Minting Corporation of India Limited (SPMCIL) presented the maiden dividend cheque for Rs.115,43,84,708/- to the Union Finance Minister Shri Pranab Mukherjee for the financial year 2010-11 here today. This is for the first time that dividend is paid by SPMCIL. The Government of India is holding the total equity capital in the Company. On this occasion, Shri R. Gopalan, Secretary, Department of Economic Affairs, Shri Bimal Julka, Director General (Currency), the members of the Board of Directors of SPMCIL and Senior Officers of Ministry of Finance and SPMCIL were also present.

Major achievements of SPMCIL include medals for Indian Railways, Common Wealth Games, National Games, Pravasi Bhartiya Divas, Tickets with advanced security features for Common Wealth Games, ASI and degree certificates, excise labels etc. with security features. It launched new products like E-passport and new coins with new rupee symbol. SPMCIL printed 7083 mpcs of bank notes and minted 6000 mpcs coins. Besides it, SPMCIL also printed 400 mpcs of Rs. 10 and Rs.100 bank notes for Nepal. It reduced its manpower by 24% from 16700 to 13453. All the units of SPMCIL are ISO 9000 certified and four units ISO 14000 certified.

SPMCIL has implemented ERP/SAP in six units and will implement in all the units by September 2011.

Shri M.S. Rana, CMD, SPMCIL informed about the operational and financial performance of the Company during the fiscal year 2010-11. He said that sales of the Company has increased by 4.17% to Rs.3164.49 crores during financial year 2010-11 from Rs.3037.79 crores in the financial year 2009-10. The operating profit (PBDIT) of the Company has increased to Rs.942.75 crores in the financial year 2010-11 from Rs. 881.60 crores in the previous financial. Net profit after tax has also increased to Rs.577.19 crores in 2010-11 from Rs.542.25 crores in 2009-10. The Profit After Tax (PAT) per employee has increased from Rs.3.63 lakh to Rs.4.28 lakh thus increasing by 17.90%. This increase is appreciable in the background that there is no change in the selling prices of currency notes and ferritic stainless steel coins since 2007-08. The Company has till date repaid working capital loan of Rs.525 crores out of Rs.700 crores taken from Ministry of Finance, Government of India. The financial year 2010-11 has also witnessed SPMCIL’s reserves reaching at Rs.1923 crores. By March 2012 SPMCIL will be a debt free Company.

CMD Shri Rana further informed that the Company has a modernization plan of about Rs.2500 crores during 5 years from 2009-10 to 2013-14. This will go a long way in bringing economy and self-sufficiency in the production of critical raw-materials needed for production of state of the art, currency, coins and security products in the country.

DSM/GN

Dividend distribution by state-owned company transfers surplus to government after reported increase in net profit and reserves. SPMCIL, wholly owned by the Government of India, presented its maiden dividend to the Union Government following increased sales, PBDIT and net profit in 2010-11 and growth in reserves. The release links the dividend to operational measures-manpower reduction, ISO certifications, ERP/SAP rollout-and financial actions, including substantial repayment of working capital borrowing and a target of becoming debt free, alongside a multi year modernization plan to secure domestic production of critical currency and security inputs.