Institute of Chartered Financial Analysts of India (ICFAI) University 2008 Certification Certified Financial Planner Portfolio management - Question Paper

wood always poses a threat.
To overcome such threats Tamilnadu Newsprint and Papers Ltd. (TNPL) came up with an alternate technology. The idea was to make
paper and newsprint primarily from bagasse, namely sugarcane waste using as little wood as possible. TNPL's vision was to use renewable
raw materials with minimum impact on the environment. So, TNPL pioneered the concept of newsprint from bagasse. TNPL is
acknowledged as the world leader in technology for the manufacture of newsprint from bagasse. TNPL has the most modern paper mill in
the country with an unique bagasse procurement, storing, preserving, handling, processing and pulping system.
Vasundhara Papers Ltd. (VPL)
The company is promoted by Mr. Vishnu Bhatt. Mr. Bhatt, aged about 42 years, is a chemical engineer from IIT and did his post
graduation from MIT. He worked as a production manager in Alaska Papers Inc., Florida for 5 years after completing his MS. Then he
did MBA from Harvard University and joined GE as a country manager in India. He worked with GE for 7 years. Then he ventured
into his own business Vasundhara Papers Ltd. (VPL). He started a trading business of industrial papers.
The overall management of the company is vested with the Board of Directors. The board of the company consists of experienced
and qualified professionals with backgrounds in the field of finance, management, accountancy, production, R&D, quality control and
projects. The company has roped in Mr. David Thomas from Alaska Papers to join as General Manager (Works). The company has
recruited around 18 process engineers with seven to 10 years of experience as frontline executives and 6 managers with more than ten years
of experience in paper industry for their middle level management cadre. Around 20 executives have joined in the finance, administration
and personnel departments.
Proposed Project
The company is all set to begin a production unit of industrial papers. At 100% capacity utilization the installed capacity of the unit would be
40 THTPA (Thousand Tonnes Per Annum). The project is proposed to be located at Guntur, Andhra Pradesh. The life of the project
is estimated to be 5 years.
Land
For the factory, the company has already acquired non-agricultural land of 500 acres at Guntur, Andhra Pradesh. The state
industrial development corporation organizes this land for the company. The basic cost of land and site development including
registration charges, leveling internal roads and external roads etc., is Rs.66.58 lakh. The land area is sufficient even for future expansion.

Earning:   Approval pending.