MIRA
INFORM REPORT
|
Report Date : |
16.08.2007 |
IDENTIFICATION DETAILS
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Name : |
CENTURY TEXTILE AND INDUSTRIES LIMITED |
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Registered Office : |
Century Bhavan, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.10.1987 |
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Com. Reg. No.: |
11-163 |
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CIN No.: [Company
Identification No.] |
L17120MH1897PLC000163 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC10668A |
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Legal Form : |
Subject Is A Public Limited Liability Company. The
Company’s Shares Are Listed On The Stock Exchanges. |
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Line of Business : |
Manufacturing and
Exporting of Cloth, Cotton Yarn, Cotton Yarn/Blended Yarn, Denim Cloth,
Viscose Filament Yarn and Viscose Tyre Yarn/ Industrial Yarn/ Rayon Yarn,
Tyre Yarn and Fabric, Sulphuric Acid, Carbon-di-Sulphide, Caustic Soda,
Liquid Chlorine, Hydrochloric Acid, Salt, Cement, Paper, Rayon and/or Paper
Grade Pulp, Bagasse based Paper, Newsprint, Compressed Hydrogen, Spinning
Machines and other Equipments, Generated Power, Cut Rose Flowers and Pig
Iron. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 42944000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company of B.K. Birla Group, one of the largest
industrial houses in the country. Financial
position is satisfactory but the company’s profitability is under severe pressure since last 2
years. Payments to local suppliers are
reported as slow. However, payments to overseas suppliers are met in time. The profitability
of the company in the current year has not perceptibly improved due to
continued economic slow down and recession particularly in cement and viscose
filament yarn. |
LOCATIONS
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Registered Office : |
Century Bhavan, |
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Tel. No.: |
91-22-24957000 |
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Mobile No.: |
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Fax No.: |
91-22-24309491 / 24361980 |
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E-Mail : |
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Website : |
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Factory : |
@
Textile Mills Pandurang Budhkar Marg, Mumbai – 400 025, Tel. No. 91-22-24303231 Fax No. 91-22-24304144/24305473 Gram. “centextile”
Mumabai @
Century Rayon Rayon, @
Cenray Minerals and Chemicals Nawa Nagna, @
Century Cement P. O. Baikunth – 493 116, @
Maihar Cement Units I & II P. O. Sarlanagar – 485 772, Maihar District, Satna, Madhya @
Manikgarh Cement P. O. Gadchandur – 442 908, P.O. Chandrapur, @
Century Pulp & Paper Ghanshyamdham, P. O. Lalkua – 262 402, District Nainital, Uttar Pradesh @
Century Yarn & Century Denim 100% Export Oriented Unit Satrati, Khargone –451 660, Madhya Pradesh, Tel. No. 91-7285-232040/265277 Fax No. 91-7285-265244 Gram. “centextile” Mumbai |
DIRECTORS
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Name : |
Mr. S. K. Birla |
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Designation : |
Chairman |
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Other
Directorship: |
1.
Birla
Brothers Private Limited 2.
Birla
Estern Limited 3.
Birla
VXL Limited 4.
Dormeuil
– Birla VXL Limited 5.
Mysore
Cements Limited 6.
Navin
Investments Limited 7.
Pilani
Investment Limited 8.
Industries
Corporation Limited Sidharth Soya
Products Limited |
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Date of
Appointment : |
04.06.1964 |
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Name : |
Mr. B. K. Birla |
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Designation : |
Chairman |
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Other Directorship: |
1.
B. K.
Birla Foundation 2.
Century
Enka Limited 3.
Jay
Shree Tea & Industries Limited 4.
Kesoram
Industries Limited Pilani Investment
& Industries Corporation Limited |
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Date of
Appointment : |
23.05.1973 |
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Name : |
Mr. P. K. Daga |
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Designation : |
Director |
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Other
Directorship: |
1.
Govind
Sugal mills Limited 2.
Deepak
Spinners Limited 3.
Longview
Tea Company Limited 4.
Deepak
Gears Limited Continental
Profiles Limited |
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Date of
Appointment : |
04.06.1963 |
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Name : |
Mr. E. B. Desai |
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Designation : |
Director |
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Experience : |
1.
Birla
Global Finance Limited 2.
Bekaert
Industries PrivateLimited 3.
Dolphin
Fisheries & Trading Private Limited 4.
Hercules
Hoists Limited 5.
Hindalco
Industries Limited 6.
Ispat
Metallics India Limited 7.
Matsushita
Lakhanpal Battery India Limited 8.
New
Age International Private Limited 9.
National
Panasonic India Private Limited 10.
Prudential
ICICI Trust Limited 11.
Siltap
Chemicals Limited Widia ( |
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Date of
Appointment : |
05.05.1970 |
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Name : |
Mr. Privanda Birla |
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Designation : |
Director |
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Other
Directorship: |
1.
Birla Brothers Private Limited 2.
Birla Corporation Limited 3.
Birla Financial Corporation Limited 4.
Birla Ericsson Optical Limited 5.
Hindustan Gum & Chemicals Limited 6.
Pilani Investment & Industries 7.
Corporation Limited 8.
Universal Cables Limited 9.
Vindhya Telelinks Limited 10.
The Indian
Smelting & Refining Company Limited 11.
Punjab Produce Holdings Limited 12.
Mazbat Properties Private Limited Optic Fibre Goa Limited |
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Date of
Appointment : |
25.01.2001 |
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Name: |
Mr. Arvind C.
Dalal |
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Designation: |
Director |
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Name: |
Mr. C. K. Birla |
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Designation: |
Director |
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Name: |
Mr. H. Narayanan |
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Designation: |
Director ( LIC
Representatives) |
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Name: |
Mr. Privanda
Birla |
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Designation: |
Director |
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Name: |
Mr. B. L. Jain |
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Designation: |
Whole Time
Director |
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Name: |
Mr. Kumar
Mangalam Birla |
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Designation: |
Director |
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Name: |
Mr. Amal Ganguli |
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Designation: |
Director |
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Other
Personnel: |
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Name: |
Mr. D. K. Agrawal |
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Designation: |
Company Secretary |
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Management: |
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TEXTILE MILLS, CENTURY YARN AND CENTURY
DENIM |
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Name: |
Mr. R. K. Dalmia |
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Designation: |
President |
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Name: |
Mr. D. K. Agrawal |
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Designation: |
Executive President
(Corporate Finance) & Secretary |
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Name: |
Mr. I. C. Surana |
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Designation: |
Joint President
(Finance) |
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Name: |
Mr. P. M. Nevatia |
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Designation: |
Joint President
(Works) |
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Name: |
Mr. U. C. Garg |
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Designation: |
Joint President
(Purchase & Projects) |
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Name: |
Mr. R. C. Panwar |
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Designation: |
Vice President
(Marketing) |
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Name: |
Mr. S. R.
Makharia |
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Designation: |
Vice President
(Production) |
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CENTURY RAYON, TYRECORD AND CHEMICALS |
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Name: |
Mr. M. C. Mehta |
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Designation: |
President |
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Name: |
Mr. O. R.
Chitlange |
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Designation: |
Joint President
(Finance) (Rayon and Shipping) |
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Name: |
Mr. R. Lalwani |
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Designation: |
Joint President
(Commercial) |
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Name: |
Mr. S. M.
Sanklecha |
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Designation: |
Senior Vice
President (Purchase) |
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Name: |
Mr. H. G.
Uttamchandani |
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Designation: |
Senior Vice
President (Rayon and Auxiliaries) |
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Name: |
Mr. R. K. Tandon |
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Designation: |
Vice President ( |
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Name: |
Mr. S K Mital |
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Designation: |
Vice President
(Engineering and Services) |
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Name: |
Mr. Sudhir A
Luthra |
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Designation: |
Vice President
(Chemicals) |
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Name: |
Mr. Subodh Dave |
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Designation: |
Vice President (Rayon)
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Name: |
Mr. Anil Sancheti
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Designation: |
Vice President
(Tyrecord and CSY) |
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CENTURY, MAIHAR AND MANIKGARH
CEMENT |
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Name: |
Mr. B. L. Jain |
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Designation: |
Senior President |
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CENTURY CEMENT |
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Name: |
Mr. B. L. Kedia |
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Designation: |
Executive
President (Plant) |
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Name: |
Mr. S. K. Jain |
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Designation: |
Joint President
(Finance) |
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Name: |
Mr. M. C. Gupta |
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Designation: |
Executive
President (Works) |
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Name: |
Mr. P. C. Jain |
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Designation: |
Senior Vice
President (Mines) |
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Name: |
Mr. S. L. Agarwal |
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Designation: |
Senior Vice
President (Commercial) |
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Name: |
Mr. Alok Patni |
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Designation: |
Senior Vice
President (Mechanical) |
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Name: |
Mr. S. K.
Sultania |
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Designation: |
Senior Vice
President (Marketing) |
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Name: |
Mr. N M Singhvi |
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Designation: |
Vice President
(Commercial) |
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Name: |
Mr. A H Singhania
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Designation: |
Vice President
(Mechanical) |
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MAIHAR CEMENT (UNIT I) |
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Name: |
Mr. Kamal Kishore |
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Designation: |
Executive
President (Co-ordination) |
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Name: |
Mr. R S Doshi |
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Designation: |
Joint President
(Finance) |
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Name: |
Mr. R K Vaishnavi
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Designation: |
Senior Vice
President (Plant) |
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Name: |
Mr. P M Intodia |
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Designation: |
Senior Vice
President (Marketing) |
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Name: |
Mr. Vijay Kumar |
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Designation: |
Vice President
(Process and Quality Control) |
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Name: |
Mr. A K Lodha |
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Designation: |
Vice President
(Marketing) |
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Name: |
Mr. M K Jain |
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Designation: |
Vice President
(Mechanical) |
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MAIHAR CEMENT (UNIT II) |
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Name: |
Mr. B. P. Jain |
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Designation: |
Executive
President (Plant) |
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Name: |
Mr. Rakesh Sharma |
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Designation: |
Senior Vice President
(Personnel & Administration) |
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Name: |
Mr. V K Bhandari |
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Designation: |
Joint President
(Commercial) |
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Name: |
Mr. B M Singh |
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Designation: |
Senior Vice
President (Projects) |
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Name: |
Mr. S K Tewari |
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Designation: |
Vice President
(Mines) |
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Name: |
Mr. G S Pandey |
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Designation: |
Vice President
(Market Development) |
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Name: |
Mr. Arvind Kumar
Jain |
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Designation: |
Vice President
(Mechanical) |
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MANIKGARH CEMENT |
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Name: |
Mr. S. S. Sharma |
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Designation: |
Executive
President (Co-ordination) |
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Name: |
Mr. P. S. Bakshi |
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Designation: |
Joint President
(Plant) |
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Name: |
Mr. S. K.
Mandelia |
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Designation: |
Senior Vice
President (Commercial & Administration) |
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Name: |
Mr. N. B. Singh |
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Designation: |
Senior Vice
President (Process & Quality Control) |
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Name: |
Mr. P. R.
Sundaresan |
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Designation: |
Vice President
(Electrical) |
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Name: |
Mr. A. D. Karwa |
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Designation: |
Senior Vice President
(Commercial) |
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Name: |
Mr. R K Udge |
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Designation: |
Vice President
(Mines) |
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Name: |
Mr. A K Panja |
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Designation: |
Vice President
(Marketing) |
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CENTURY SHIPPING |
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Name: |
Mr. S. K. Sood |
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Designation: |
Executive
President |
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Name: |
Mr. V. K. Bemby |
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Designation: |
Vice President
(Technical) |
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CENTURY PULP AND PAPER |
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Name: |
Mr. R. L.
Lakhotia |
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Designation: |
President |
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Name: |
Mr. J. K.
Mandelia |
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Designation: |
Senior Vice
President (Works) |
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Name: |
Mr. Dilip
Chandrana |
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Designation: |
Vice President
(Technical) |
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Name: |
Mr. R K Sharma |
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Designation: |
Vice President
(Electrical and Instrumentation) |
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Name: |
Mr. R C
Maheshwari |
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Designation: |
Vice President
(Utilities) |
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CENRAY MINERALS AND CHEMICALS |
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|
Name: |
Mr. M. M. Sand |
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Designation: |
Vice President
(Salt Works) |
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NEW PROJECTS |
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Name: |
Mr. A K Mukherjee
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Designation: |
Vice President
(Projects) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group 2 |
|
|
|
(1) Indian |
|
|
|
(a) Individuals / Hindu undivided family |
17940 |
0.02 |
|
(b)Bodies Corporate |
38614780 |
41.78 |
|
(2) Foreign |
|
|
|
(a) Bodies Corporate |
365820 |
0.40 |
|
(B) Public
Shareholding 3 |
|
|
|
(1) Institutions |
|
|
|
(a) Mutual Funds / UTI |
7651797 |
8.28 |
|
(b) Financial Institutions / Banks |
3475229 |
3.76 |
|
© Central Government / State Government(s) |
2580 |
0.000 |
|
(e) Insurance Companies |
2427871 |
2.63 |
|
(f) Foreign Institutional Investors |
11242156 |
12.17 |
|
(2) Non –
Institutions |
|
|
|
(a) Bodies Corporate |
7804934 |
8.45 |
|
(b) Individuals – i.Individual shareholders holding nominal share capital up to Rs.0.100
million ii. Individual shareholders holding nominal share capital excess of
Rs.0.100 million |
15870460 3634979 |
17.17 3.93 |
|
© Any Other (specify) |
|
|
|
i. Clearing Member |
665793 |
0.72 |
|
iii. Non Resident Indians (repat) |
575931 |
0.62 |
|
iv. Non Resident Indians (Non Repat) |
60970 |
0.07 |
|
© Shares held by custodians and against which depository receipts have
been issued |
634440 |
0.68 |
|
Grand Total |
52947637 |
100.000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Exporting of Cloth, Cotton Yarn, Cotton Yarn/Blended Yarn, Denim Cloth, Viscose
Filament Yarn and Viscose Tyre Yarn/ Industrial Yarn/ Rayon Yarn, Tyre Yarn
and Fabric, Sulphuric Acid, Carbon-di-Sulphide, Caustic Soda, Liquid
Chlorine, Hydrochloric Acid, Salt, Cement, Paper, Rayon and/or Paper Grade
Pulp, Bagasse based Paper, Newsprint, Compressed Hydrogen, Spinning Machines
and other Equipments, Generated Power, Cut Rose Flowers and Pig Iron. |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
12,601 |
|
|
|
|
Bankers : |
@
State
Bank of @
Central
Bank of 13. Bank of |
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|
|
|
|
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|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
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|
Name : |
Dalal and Shah Chartered
Accountants |
|
Address : |
Mumbai, |
|
|
|
|
Associates/Subsidiaries : |
@
Pilani
Investment and Industries Corporation Limited @
Kesoram
Industries Limited @
Century
Enka Limited @
Jayshree
Tea and Industries Limited @
Mangalam
Cement Limited @
Mangalam
Timber Products Limited @
Birla
Century Finance Limited @
Centak
Chemicals Limited @
Industry
House Limited @
Birla
Consultants Limited @
Phil
Textile Mills Inc., @
Birla
International Limited @
Vasavadatta
Services Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14,80,00,000 |
Equity Shares |
Rs. 10/- each |
Rs.1480.000 millions |
|
1,00,00,000 |
Redeemable
Cumulative Non-convertible Preference Shares |
Rs. 100/- each |
Rs.1000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
93040000 |
Equity Shares |
Rs.10/- each |
Rs. 930.400 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
930.400 |
930.400 |
930.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9805.600 |
7566.500 |
6810.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10736.000 |
8496.900 |
7740.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9298.700 |
6967.200 |
7063.800 |
|
|
2] Unsecured Loans |
3705.100 |
2333.900 |
1829.300 |
|
|
TOTAL BORROWING |
13003.800 |
9301.100 |
8893.100 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
2771.800 |
2430.300 |
|
|
|
|
|
|
|
|
TOTAL |
23739.800 |
20569.800 |
19064.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17264.800 |
13946.000 |
13337.600 |
|
|
Capital work-in-progress |
1233.000 |
1040.800 |
336.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
159.400 |
159.400 |
279.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4743.700
|
4909.300 |
4425.600 |
|
|
Sundry Debtors |
1969.000
|
1682.800 |
2078.000 |
|
|
Cash & Bank Balances |
1393.100
|
383.500 |
310.900 |
|
|
Other Current Assets |
0.000
|
44.100 |
37.400 |
|
|
Loans & Advances |
3693.100
|
3136.100 |
2000.500 |
|
Total
Current Assets |
11797.700
|
10155.800 |
8852.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
7151.00
|
3740.900 |
3268.400 |
|
|
Provisions |
1761.700
|
1220.900 |
665.400 |
|
Total
Current Liabilities |
8912.700
|
4961.800 |
3933.800 |
|
|
Net Current Assets |
2885.000
|
5194.000 |
4918.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
2197.600 |
229.600 |
192.100 |
|
|
|
|
|
|
|
|
TOTAL |
23739.800 |
20569.800 |
19064.100 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
35221.900 |
|
25297.200 |
|
|
Other Income |
801.200 |
|
|
|
|
Total Income |
36023.100 |
26986.600 |
25297.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3521.900 |
2033.600 |
1336.100 |
|
|
Provision for Taxation |
793.800 |
816.200 |
110.600 |
|
|
Profit/(Loss) After Tax |
2728.100 |
1217.400 |
1225.500 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
|
2306.300 |
2945.300 |
|
|
Commission Earnings |
NA |
250.400 |
278.300 |
|
|
Other Earnings |
|
9.500 |
0.600 |
|
Total Earnings |
|
2566.200 |
3224.200 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
|
822.700 |
722.200 |
|
|
Stores & Spares |
NA |
236.600 |
276.800 |
|
|
Capital Goods |
|
693.500 |
102.400 |
|
|
Others |
|
0.000 |
0.000 |
|
Total Imports |
|
1752.800 |
1101.400 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Administrative Expenses and Selling Expenses |
4126.000 |
3929.400 |
3517.600 |
|
|
Raw Material Consumed |
6873.600 |
6001.800 |
6067.700 |
|
|
Interest and Financial Charges |
645.100 |
488.400 |
515.300 |
|
|
Excise Duty |
3664.200 |
3826.400 |
3574.000 |
|
|
Power & Fuel |
5753.300 |
5591.600 |
5257.700 |
|
|
Depreciation & Amortization |
1439.600 |
1463.800 |
1370.200 |
|
Total Expenditure |
22501.800 |
21301.400 |
20302.500 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
Sales Turnover
|
|
|
8368.400 |
Other Income
|
|
|
208.200 |
Total Income
|
|
|
8576.600 |
Total Expenditure
|
|
|
6515.100 |
Operating Profit
|
|
|
2061.500 |
Interest
|
|
|
242.700 |
Gross Profit
|
|
|
1818.800 |
Depreciation
|
|
|
402.200 |
Tax
|
|
|
364.000 |
Reported PAT
|
|
|
1079.100 |
|
|
|
|
|
200706
Quarter 1 ---
Notes Expenditure Includes (Increase) / Decrease in Stock in
Trade Rs (139.80) million Consumption of Raw Materials Rs 2002.60 million Staff
Cost Rs 668.80 million Stores & Spares parts consumed Rs 1066.20 million
Power & Fuel & Water Rs 1440.00 million Freight, Forwarding, Octroi,
etc. Rs 771.90 million Other Expenditure Rs 513.40 million Depreciation
Includes Depreciation Rs 381.10 million Net adjustments including arrears of
depreciation, in respect of earlier years Rs 21.10 million Tax Includes
Provision for Current Tax Rs 357.00 million Deferred Tax Rs(26.50)million
Fringe Benefit Tax Rs 7.00 million EPS is Basic and Diluted Status of Investor
Complaints for the quarter ended June 30, 2007 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 19
Complaints disposed off during the quarter 19 Complaints unresolved at the end
of the quarter Nil 1. The above results have been reviewed and recommended for
adoption by the Audit Committee to the Board of Directors and have been
approved by the Board at its meeting held on July 23, 2007. The Statutory
Auditors have carried out a limited review of the above financial results and
their report contains no qualifications. 2. a) During the quarter ended June
30, 2007 the revenue in respect of ordinary activities of discontinued Textile
operations at Worli, Mumbai amounted to Rs 32.00 million and the loss in
respect of the same amounted to Rs 46.60 million. b) As a result of cessation
of manufacturing operations at the Textile Mill at Worli, Mumbai, the results
for the quarter ended June 30, 2007 are not comparable with those of previous
corresponding quarter. 3. Payments made during the quarter ended June 30, 2007
under the Voluntary Retirement Scheme (VRS) are being charged to the Profit and
Loss Account over a period of three accounting years commencing from the
accounting year 2007-08. Accordingly, VRS charged for the said quarter amounts
to Rs 5.80 million the VRS charged to Profit and Loss account also includes Rs
186.20 million being the proportionate amount of VRS paid in prior years, which
have been shown under Exceptional Items. 4. The figures of corresponding
quarter ended June 30, 2006 and previous accounting year ended March 31, 2007
have been adjusted / regrouped / recast wherever necessary.
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
|
1.18 |
1.15 |
1.29 |
|
Long Term Debt Equity Ratio |
|
0.77 |
0.60 |
0.79 |
|
Current Ratio |
|
0.90 |
0.84 |
0.90 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
1.08 |
1.00 |
0.97 |
|
Inventory |
|
7.30 |
6.37 |
6.18 |
|
Debtors |
|
19.29 |
15.81 |
13.51 |
|
Interest Cover Ratio |
|
8.67 |
3.90 |
3.34 |
|
Operating Profit Margin (%) |
|
19.96 |
11.33 |
10.97 |
|
Profit Before Interest and Tax Margin (%) |
|
15.87 |
6.40 |
6.10 |
|
Cash Profit Margin (%) |
|
14.78 |
7.63 |
8.76 |
|
Adjusted Net Profit Margin (%) |
|
10.70 |
2.69 |
3.89 |
|
Return on Capital Employed (%) |
|
28.87 |
11.33 |
9.93 |
|
Return on Net Worth (%) |
|
39.89 |
10.13 |
14.30 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.688.70/- |
|
Low |
Rs.686.10/- |
LOCAL AGENCY FURTHER INFORMATION
Company Details:
Century Textiles & Industries Limited (CTIL), a B K
Birla group flagship was incorporated in the year 1897. Till 1951 it had only one
industrial unit - Cotton Textile Mills. Since then the Company has been making
rapid progress in widely diversified fields in Yarn, Denim, Viscose Filament
Rayon Yarn, Tyrecords, Caustic Soda, Sulfuric Acid, Salt, Cement and Pulp &
Paper. The company also carried on Shipping business which was later disposed
off.
The company has it manufacturing facilities located at Mumbai, Kalyan,
The companies textile division in Mumbai, the 100% EOU for spinning in
Madhya Pradesh, and the rayon and tyre cord divisions, received the ISO 9002
certification, whereas, Birla Tyres was awarded the ISO 9001
certification.
Century Textiles produces 100% cotton fabrics. Century's
cloth covers the length and breadth of the Globe. Century Fabric has charmed
its way into:
CTIL set up a pulp and, writing and printing paper plant with a total capacity
of 400 tpd in
During 2001-2002, the company sold two bulk carriers, m.v. Aditya Gaurav
and m.v. Aditya Gopal built in 1984 and 1994 respectively.
During 2002-2003, In yarn and denim division, the company decided to
install one Thermal Power plant upto 10 MW capacity at the plant site and the
capacity for the manufacture of Continuous Spun Yarn is being raised by import
of machine from
The company decided to dispose of the existing fleet of two ships and shut down
the division during the year. 2002-2003. Efforts to dispose of the ships are in
progress.
During 2003-2004, in Yarn and denim division, the proposal to install one
Thermal Power plant upto 10 MW capacity at the existing plant site was dropped
due to expected operational and environmental problems. But the company decided
to install 6 MW Power plant using LSHS/furnance oil at the plant site which was
expected to be commissioned by the end of the financial year. In Rayon, Tyre
Cord & Chemicals division, the company imported and installed machines for manufacturing
Continuous Spun Yarn and started production from February 2004. An Efficient
electrolyzer was also commissioned which would increase the production of
Caustic Soda by about five tones per day. In Cement division, the company
completed close circuiting of two cement mills at Century Cement unit and
Maihar Cement unit. The installation of pre-grinders at these Cement units were
in progress during this year which will increase the capacity of Maihar Cement
to 3 million tones and Century Cement to 1.8 million tones. The project work
for increasing Captive Power Generation Capacity at Manikgarh Cement unit by
installing 10 MW turbine and discarding 5 MW old turbine was under progress.
The capacity was likely to be commissioned by September, 2004. The company also
decided to install 10 MW capacity at Maihar Cement unit at a cost of Rs.65
crores. The plant is likely to be commissioned during the first half of
2006-07. In paper division, the installation of Multi fuel boiler was
deferred.
During 2004-2005, in Yarn and Denim division, the installation of 6 MW
Power Plant using LSHS/Furnance has been completed and the plant started
operating since March 2005. The company decided to expand the manufacturing
capacity of denim Fabrics by 10 Million Meters per annum inclusive of 4 MW
Power Generating Set. In Cement division, the captive thermal power generation
capacity at Manikgarh Cement Unit increased from 10 MW to 15 MW. The project
work for capacity enhancement at all Cement units by technological upgradation
and by installation of balancing equipments at a project cost of Rs.150 crore
has been withdrawn. In paper division, the company decided to install a 211 TPD
Paper Plant based on waste paper/non- conventional raw materials and a 15 MW Turbine
with an estimated investment of about Rs.385 Crore. The Paper Plant is proposed
to be installed adjacent to the existing Plant and the same is expected to be
commissioned by the end of the financial year 2006-07.
During 2005-2006, in Denim division, the expansion of Denim plant was
completed by adding 10 million metres of quality denim to the plant capacity
and commissioned in march 2006. In Rayon division, erection and commissioning
of a 60 tonnes per day Fluidised Bed Combustion in replacement of the old and
inefficient oil fired boilers is under way and expected to be completed during
the year. In Cement division, New captive thermal power plants of 15 MW at
Maihar Cement Unit and 10 MW at Century Cement Unit have been commissioned in
the month of March, 2006 and April, 2006. With the commissioning of these
plants, the total installed capacity of captive thermal power plants is 75 MW
(Century Cement - 25MW, Maihar Cement -35 MW and Manikgarh Cement - 15 MW). All
the cement units of the company are on the way of enhancing capacity.
Consequently, the companies total cement manufacturing capacity will stand
enhanced from 6.30 million TPA to 7.80 million TPA by the 3rd quarter of
2006-07. In the paper division, the installation of the 211 TPD Paper Plant
based on waste paper/non-conventional raw material and a 16 MW Turbine is in
progress and will be commissioned by December, 2006. The company is also
expanding its paper manufacturing capacity by 75000 tonnes per annum before
2006-07.
Director’s Report
EXPORTS:
The total exports of the Company amounted to Rs.3150.000 millions which
represents about 10% percent of the net sales.
EXPANSION &
MODERNISATION:
a) Textiles
It has been decided to set up a new Textile Mill as a separate division of the
Company named as 'Birla Century' with about three hundred looms and nearly one
lac spindles at GIDC Industrial Estate, Jhagadia, Dist. Bharuch in the state of
Gujarat with manufacturing capacity of about twenty five million metres of
fabrics per annum, along with a captive thermal power plant of 30 MW at a total
estimated capital expenditure of upto Rs.7250.000 millions. The mill is
expected to be commissioned by about June, 2008.
b) Cement
i) The major work for capacity enhancement from 6.30 million tonnes per
annum to 7.80 million tonnes per annum at all cement units has been completed
except upgradation of the kiln and installation of a bag house at Maihar cement
unit No. 2 which is likely to be completed by September 2007 as the H.T. Motors
are expected to be delivered in June / July 2007.
ii) They intend to expand cement manufacturing capacity to 11.30 million
tonnes per annum by setting up a new cement plant of 2 million tonnes per annum
capacity adjacent to existing plant of Manikgarh cement at Gadchandur,
Maharashtra, along with a 35 MW captive thermal power plant and 1.50 million
tonnes per annum cement grinding unit at Sagardighi in District Murshidabad,
West Bengal. The estimated total capital outlay will be about Rs.9650.000 millions.
An application has been submitted to the Ministry of Environment and forest for
environment clearance. The Company has also taken the necessary steps to
acquire land for setting up the grinding unit in
the
c) Pulp & Paper
The
expansion of their paper unit for manufacturing paper from waste paper has been
commissioned from 03.02.2007 with a capacity of 211 tonnes per day and the
plant is now running smoothly.
It has been decided to set up a 100 tonnes per day Prime Grade Tissue
Paper Plant at a total capital outlay of Rs. 1750.000 millions based on
imported softwood and their own hardwood pulp as raw material. The technical
study for installation of the plant has already commenced. The paper plant is
proposed to be installed adjacent to the existing Pulp and Paper Plant at
Lalkua, Dist. Nainital, Uttarakhand and is expected to be operative by about
September, 2008.
d) General
Modernisation
and technological upgradation programmes, as necessary, are being continued in
all the units of the Company to maintain competitiveness and achieve better
quality. Stringent cost control measures continue to be implemented in all
possible areas.
6. GENERAL - AWARDS, SPORTS &
WELFARE ACTIVITIES:
a) Rayon,
i) Bagged CII National Award 2005 for 'Excellence in Energy Management'.
ii) Their Volley-ball team won the Thane District Championship.
iii) Their veteran Foot-ball team won the Mumbai Zone Championship.
b) Cement:
i) Century Cement has received for its Limestone Mines the 'Abheraj
Baldota Environment Award' for the year 2005-06 from the Federation of Indian
Mineral Industries (FIMI) for outstanding contribution to the national goal of
sustainable development through Environment Conservation of rational
utilization for natural resources.
ii) Century Cement has received the first prize in 'Waste Dump
Management' and 'Publicity & Propaganda' for its limestone mines during the
Mines Environment and Mineral Conservation Week 2006-07 held under the aegis of
Indian Bureau of Mines,
One student from their school at Century Cement has participated in the
Basketball Game at the National Level.
iii) Maihar Cement has received the first prize in 'Use of Explosives and
Dust Suppression', 'Machineries', 'Transport of Mineral and Overburden' and
'Overall performance' for its limestone mines during the Metalliferrous Mines
Safety Week, 2006 of
Maihar Cement has also received the first prize in 'Publicity and
Propaganda' and 'Air Quality Management' for its limestone mines during the
Mines Environment and Mineral Conservation Week in the year 2006-07 held under
the guidance of the Indian Bureau of Mines, Jabalpur region.
Maihar Cement Unit No. 2 has received the National Safety Award for
outstanding performance in Industrial Safety as runner-up during the Award year
2005 in achieving 'accident free year'.
Maihar cement has also received a shield and certificate for the Top
Central Excise Tax Payer for the year 2005-06 from the Central Excise, Customs
duty and Service tax Commissionerate,
Eleven students (7 Scouts & 4 Guides) from their school at Maihar Cement,
Sarlanagar have been selected for the Governor's award.
Three students have been honoured with the Kalaratna Award 2006 and one teacher
has been honoured with 'the Best Teacher Award 2006' in All India Drawing -
Handwriting Contest- 2006-07 organised by Akhil Bhartiya Nagrik Vikas Kendra.
Further two students have been honoured with the 'Hind Kala Visharad Award' for
painting/ handwriting contest 2006-07 organised by
One student has achieved excellent result and secured ninth position in Rewa
Division Merit List of Class X in the State Board High School Examination 2006.
He has scored 100% marks in Maths & Science.
iv) Manikgarh Cement has received the first prize in the Noise Vibration
Studies and Aesthetic Beauty, Top Soil Management and Afforestation for its
limestone mines during the Mines Environment and Mineral Conservation Week
2006-07, Nagpur Region (Madhya Pradesh and
Manikgarh Cement has also received the first prize in the Injury Rate
Performance, Explosives and Exhibition Stall for the same mines during
Metalliferrous Mines Safety Week 2006-07, Nagpur Region I & II.
Manikgarh Cement Quality Circle Group has been awarded a prize for
excellence in the Process category at the National convention held at
c) Pulp & Paper:
i) The unit received the 'Environment Award' - the First Prize for its
remarkable efforts for environmental protection and enrichment for the year
2005-06, awarded by the Indian Paper Manufacturers Association,
ii) This Unit's Quality Circle Aadarsh' has secured the 'Excellent' award
in the National Convention on Quality Circles held at I.I.T,
Cement Divisions
* Modification of raw mills by installation of high efficiency classifier
at all the Cement Units.
* Modification of pre-heater cyclones at Century Cement and Manikgarh
Cement Units.
* Construction of dry fly ash silos with conveying system to cement mills
at all cement units.
* Close circuiting of cement mills - 3 mills at Century Cement Unit and 1
mill at Manikgarh Cement Unit.
* Installation of multichannel burner on kiln no. 1 at Maihar Cement
Unit.
* Installation / Upgradation of DCS for various sections of plant at
Cement Units.
* Installation of DC drive for sepol fan for effecting variation in speed
at Manikgarh Cement Unit.
* Optimisation of compressed air system at Century Cement Unit and
Manikgarh Cement Unit.
* Installation of solar water heating system in the township of all the Cement
Units.
Pulp & Paper Division
* 56 Nos. variable frequency drive installed in plant.
* 3 Neutral compensator used to restrict neutral current flow.
* Low-tension voltage optimized of 4 power transformer.
* 16 MW Turbine commissioned
* Use or RGP Hot water in Bagasse Pulp mill.
(b) Additional investments and proposals, if any, being implemented by
the Company for reduction of consumption of energy.
* Installation of multi-channel burner at both the kilns of Century Cement
and kiln no.2 at Maihar Cement Unit.
* Modification of remaining raw mills by installation of high efficiency
classifier at Maihar Cement Unit and Manikgarh Cement Unit.
* Modification of pre-heater cyclones at Maihar Cement Unit No.2.
* Construction of remaining dry fly ash silos with conveying system to
cement mills of all the cement units.
* Close circuiting of one cement mill at Manikgarh Cement Unit.
* Installation of SPRS for pre-heater fan and high efficiency fan for
grate cooler at Manikgarh Cement Unit.
* Providing 1600 KW DC Motor for ESP fan no. 2 at Manikgarh Cement
Unit.
* Installation of Fuzy Logic at Century Cement and Manikgarh Cement
Units.
* Natural ventilator in machine house and 16 MW Turbine at Century Pulp
& Paper unit.
(c) Impact of measures at (a) & (b) for reduction of energy
consumption and consequent impact on the cost of production of goods.
* Increase in productivity.* Reduction in energy consumption.
(d) Total energy consumption and energy consumption per unit of
production as per Form 'A' of the Annexure in respect of industries specified
in the Schedule thereto.
FOREIGN EXCHANGE
EARNINGS AND OUTGO:
(f) Activities relating to exports, initiatives taken to increase
exports, developments of new export markets for products and services, and
export plans.
* In addition to what has been stated in the Management Discussion and
Analysis Report, they would like to mention that they have identified several
new and potential overseas markets for export of paper. The quality of their
paper had an overwhelming response and their paper is regularly exported to
markets like
Overall Review:
The profitability of the Company during the year under review has
improved considerably because of good performance of Cement and Pulp &
Paper Divisions of the Company. The Rayon Division also performed
satisfactorily. The manufacturing operations at their Textile Mill in Mumbai
have effectively ceased and the detailed comments about this are given in the
segmental review related to Textiles.
The interest cost in coming years is likely to increase due to continuing
rise in the rates of interest.
Due to firm demand for cement for infrastructure and housing, the prospects for
the cement segment appear positive. With the spread of education and the
continuing thrust of the Central Government on promoting education at all
levels, the demand for and prices of paper are likely to rule firm, resulting
in continued good performance. Viscose Filament Yarn (VFY) and Rayon Tyre Yarn are
expected to maintain steady performance based on stable prices and
demand.
2.1 Business Segment -
Textiles
Cotton Textiles, Yarn and Denim
a)
Industry Structure & Development:
As is known to the industry, the organized mill sector in the metro
cities including Mumbai has been facing serious difficulties in operating
profitably because of increased cost, taxes and duties pursuant to which
practically all mills in Mumbai had to close down. However, the Textile and
clothing industry in
b)
Opportunities & Threats:
As regards threats, the Indian Textile Industry has a global logistical
disadvantage, as shipping cost is high and the whole process from order to
delivery takes longer compared to other manufacturing countries like
If there is a slow down in the global economy, particularly the
c) Segmental Review and Analysis:
The difficulties facing the operation of their composite textile mill in Mumbai
have been commented on in earlier years. The mill is unviable because of
technical limitations of the machinery, comparatively high labour cost,
government levies, water and electricity charges. Although serious efforts were
made to continue to operate the mill on a reduced scale, in view of relentless
rise in costs, it was not viable. Accordingly, a Voluntary Retirement Scheme
(VRS) was introduced in the mill as a result of which over 6300 mill workers
and staff which constitutes more than 95% of the total strength have opted for
retirement during the months of November and December 2006. Consequently, the
manufacturing operations at the mill have effectively ceased. There are still
275 workers who have not accepted Voluntary Retirement. With such a reduced
number, it is not possible to operate the mill, consequently, an application
was made by the Company to the Labour Commissioner under the applicable
provisions of the Industrial Disputes Act for Government's permission to close
the operations of the textile mill. During the course of hearing before the
Labour Commissioner, the Hon'ble Minister for Labour intervened at the instance
of the workers and suggested that the matter be solved amicably between the
management and the workers. In view of this, it was felt necessary to withdraw
the application for permission for closure for the time being and discuss the
issue with the workers afresh. If an amicable solution cannot be worked out in
future, then, they may have to make an application once again to the Labour
Commissioner with a request to allow the closure of their textile mill at
Worli, Mumbai.
Ready to Wear products under the brand name 'Cottons by Century'
introduced in the recent past have proved attractive to customers and are doing
well. As a silverlining to the cloud, the sale of Ready to Wear products has
been increasing steadily and this trend is likely to continue. 'Cottons by
Century' is the only menswear brand that manufactures 100% Cotton Shirts, T
-Shirts, Trousers, Kurta-Pyjamas, Boxer Shorts, Nightwear etc. In a short span
of time 'Cottons by Century' has received so good a response that product lines
have been expanded to make available the maximum possible range of designs,
colours and products. As a step towards further improvement, they have
introduced Ready to Wear products for women which should attract a large
section of their female population. Unchallenged in its quality and
adaptability to suit every season, occasion and taste 'Cottons by Century' till
date continues to offer an endless array of contemporary designs, weaves and
vivid colours in fashion formals.
The performance of Yarn Division remained fairly stable in view of
depressed yarn prices during the year. The denim market was depressed
throughout the year and the prices were considerably lower due to an adverse
export as well as domestic market due to less demand. However, it is expected
that the export and domestic demand and prices should pick up in the near
future. During the year, the Company has introduced fancy denim products such
as Ring, Rain, Cross-hatch, Slubs, Polyester, Lycra, Linen, Overdyed in
different colours etc.
d) Risks and Concerns:
Any major downturn in the Indian economy, and to a lesser extent, a
downturn in the global economy, can seriously decelerate consumer spending
including clothing purchase, which would have a strong negative impact on this
sector.
The Chinese threat is continued, and especially after 2008, when the
quantitative restrictions on China shall be removed for the majors like USA and
European Union markets, the impact is likely to be felt by all textiles and
clothing producing countries including India.
Cotton which is required to manufacture yarn / fabrics is getting
costlier continuously in
e) Outlook:
Their thrust will be on Ready to Wear garments marketed under the brand
'Cottons by Century'. They are hopeful that the cotton yarn and denim markets
will improve leading to better results.
Century Rayon - Viscose Filament
Yarn (VFY), Continuous Spun Yarn (CSY) & Rayon
a) Industry Structure &
Development
During the year under review no new capacities have been added. As the
industry is capital intensive, needs stringent environmental clearances and large
manpower, it is unlikely that it will witness any new capacity addition in the
near future.
Gradual substitution of VFY by polyester yarn has made a dent in the demand for
VFY This has led to increase in inventory among all producers in the industry.
Producers like them could not increase prices due to yarn being sold at a
discount by a few producers.
b) Opportunities and Threats:
The Industry's efforts for imposition of anti dumping duty on cheaper
imports from China and Commonwealth of Independent States (CIS) countries met
with success as the Central Government levied an anti dumping duty on VFY This
has reduced imports of VFY The gap created due to reduced imports provided an
opportunity to domestic producers to channelize their products to consumers
previously using imported yarn.
Due to environmental and other problems, one major yarn producing unit in
Higher prices of major raw materials like wood-pulp and sulphur coupled
with new power tariffs have increased the overall cost of production.
The Central Government Budget this year did not offer any fiscal incentives for
Viscose Filament Yarn but reduced import duty on polyester yarn by 2.50% thus
making import of polyester yarn cheaper which is likely to put pressure on
them.
c) Segmental Review and Analysis:
Despite overall decrease in demand of VFY, their production and sales
have improved due to consistency in quality and introduction of a new variety
of yarn (fine denier) which has been readily accepted in the market. Adherence
to stringent quality norms has ensured that no complaints have been received
about their yarn from users in domestic as well as foreign markets.
Increased level of stocks of Rayon Tyre Yarn had also started affecting
prices in the foreign markets, where they export about 80% of their production.
The production was optimized so that stock levels and prices could be
maintained.
Making intense efforts they developed relationship with consumers in new
markets in Western Europe and
Increases in Dearness Allowance have worsened their already high labour cost
due to proximity of their unit to Mumbai. A long term wage settlement with the
The focus on implementation of energy saving schemes and automation will remain
a top priority of the Company so that operational efficiency can be further
improved.
It is heartening to mention that Century Rayon has been awarded Oeko-Tex
Standard 100 Certificate by Institute of the International Association for
Research and Testing in the Field of Textile Ecology,
Off-take and prices of various chemical products have been steady during
the year. Various measures taken by the Company have resulted in higher and
more efficient production.
Production and sales of Refined Salt remained at satisfactory levels.
Prices have increased due to scarcity of material. In order to run their Salt
Refinery at an optimum level, they had to procure raw salt from outside sources
at high prices. Optimum prices were realized for the company's export and
domestic sales. Exports of Refined Salt to the Middle East and
d) Risks and Concerns:
Pressure on cost of labour remains a major concern and efforts for
rationalization and optimum utilization of manpower will remain top priority.
Higher cost of raw-materials, particularly Wood Pulp and
Volatile conditions in exchange rates are likely to have the double
effect on reducing cost of imports but also reducing prices realized for
exports.
e) Outlook:
The
outlook in respect of VFY appears satisfactory for both off take and pricing.
They have been able to procure sizable orders for Rayon Tyre Yarn equivalent to
almost 80% of their production at a satisfactory price, thus protecting
ourselves from possible future uncertainties. The market for chemical products
is expected to remain buoyant.
2.2 Business Segment - Cement
Divisions
a)
Industry Structure & Development
The cement industry exported about six million tonnes of cement and about three
million tonnes of clinker during 2006-07. The export of cement is likely to
decline in the future due to additional capacity coming up in the Gulf
countries. Large global cement Companies may increasingly enter the more
lucrative and accessible markets of
The Indian cement industry has witnessed a flurry of mergers and
acquisitions amongst domestic producers, bringing smaller players under the
umbrella of larger companies, and some larger companies being merged with
global corporations. Four of the top five cement companies in the world have
entered
Over the last two decades cement plants across the globe have undergone
major technological upgradation and modernization. The Indian cement industry
has also kept pace with new developments and presently about 95 per cent of the
total capacity in the industry is based on the modern and environment-friendly
dry process technology.
b) Opportunities and Threats
The
cement industry at present is enjoying one of the best times in terms of
demand. For four successive years the Indian economy is witnessing impressive
growth. During the fiscal year 2006-07, the economy has perhaps grown by about
8.5% to 9%. The cement industry accounts for approximately 1.30% of GDP and
that bears a high co-relation with growth in the economy as a whole.
The boom in the housing sector, construction industry and increased
activity in infrastructure development such as state and national highways,
ports, airports, irrigation facilities, flyovers, setting up of Special
Economic Zones (SEZs), shopping malls, multiplexes and retail chains promise
good demand for cement in coming years. There are ongoing major investments by
the manufacturing sector as well as the addition of many lakh square feet of
office space. Any slow down in infrastructure development may have an adverse
impact on cement demand.
Though the Indian cement industry has clocked a production of more than
150 million tonnes in the year 2006-07, the per capita consumption of cement in
Inflation is hovering over 6%. Measures taken to curb inflation may
initially reduce the growth momentum but in the long run the pace of growth is
likely to be maintained.
Scrapping of import duty, countervailing duty and additional customs duty
on Portland Cement by Government, will reduce the import parity price by about
Rs.40 per bag. However, this is not likely to have much impact on the domestic
sector due to inadequate port facilities and logistical problems.
c) Segmental Review and
Analysis :
All
cement units of the Company are functioning at optimum levels. During the
current year the Company produced 67.49 lacs tonnes cement as against 66.36
lacs tonnes during the previous year. Slower production growth was caused by
planned stoppages for upgradation of plant capacity. A lot of emphasis is being
placed on production of blended cement which constitutes more than 95% of the
total cement produced by the Company as against 69% of cement industry in
In spite of increases in the cost of inputs and road transportation, the
performance of the cement divisions is substantially better mainly due to
higher sales realization and good logistics. Efforts are being made
continuously to increase productivity, reduce cost, conserve energy and improve
quality.
d) Risks and Concerns
:
Surging
inflation leading to hardening of interest rates, increased cost of land and
construction may affect the growth in the housing sector and infrastructure
development resulting in lower demand for cement.
Coal availability has become critical. The Ministry of Coal has reduced
the allocation of coal to 80% of linkage quantity. The introduction of coal
procurement through the e-booking mechanism at 30% higher than the notified
price has increased the cost of fuel.
Restrictions on carrying capacity on trucks has increased the
transportation cost. Poor availability of wagons, increases in power tariffs,
high incidence of taxes, duties & cess are matters of concerns for the
cement industry.
e) Outlook
The
Macro economic fundamentals are sound allowing the economy to make rapid
growth. The Government has set a target of 9% GDP growth in 11th five year plan
(2007-12). The plan addresses issues of promoting growth in industrial, housing
and realty sectors. Specific focus has been placed on development of rural
& urban infrastructure such as roads, railways, ports, airports,
irrigations projects, housing etc. An 11.50% compounded annual growth rate
(CAGR) in cement demand during the 11th plan has been projected which seems quite
feasible given the huge investment planned in infrastructure development by
both public and private sectors.
Though large capacity additions have been announced by various companies,
it will materialize in a phased manner. Due to equilibrium in demand &
supply of cement, the prices of cement in the long run are likely to remain at
a remunerative level.
2.3 Business Segment - Century
Pulp & Paper
a) Industry Structure & Development
The
Indian Paper industry comprises of writing and printing paper, industrial and
newsprint segments.
b) Opportunities and Threats
Uncertainty about the long term availability of adequate raw materials
continues to be an area of major concern for the entire paper industry. The
industry still awaits the formulation of a policy by the Government for
utilization of degraded forest or unutilized revenue land for development of
plantations to meet its raw material requirements. Further, interrupted power
supply could also adversely affect the growth of the industry.
c) Segmental Review and
Analysis
Prices
of pulp and paper were on upswing during the year under review and plant
capacity has been utilized to the optimum level. The process of introduction of
new qualities / improvement in the quality of existing products is going on.
Their brands have established premium positions in the market because of
consistent quality and timely introduction of good supply chain through their
strong distribution network. The new capacity should enable them to take full
advantage of the situation to increase their market share.
In keeping with the Company's policy and objectives, they have
successfully developed and marketed value added products like overlay tissue,
century tissue (HB), PVC coated paper and base for wall paper, which are used
for manufacturing melamine crockery, wax matchsticks, file covers and wall
papers. Other products like Century Excel and Supershine printing paper are
being used in executive diaries of prestigious organizations. In line with
development of new products, they are planning to manufacture prime grade
tissue paper, production of which in
d) Risk & Concerns
Inadequate
availability and poor quality of fuel such as coal and raw material continue to
be the areas of concern. They have, however, taken several steps to use
alternative raw material such as veneer chips, rice straw, wheat straw etc. and
alternate fuel to minimize the negative impact. Further, the rising cost of
wood, bagasse and waste paper - their major raw materials, may also put
pressure on their profitability.
e) Outlook
Considering the Government's thrust on education and the booming
economy, they are fairly optimistic about the outlook for their Paper
business.
3. Internal control systems and
their adequacy:
The
Company has proper and adequate systems of internal controls which ensure that
all assets are safeguarded against loss from unauthorised use or disposition
and that all transactions are authorised, recorded and reported correctly.
Regular internal audits and checks are carried out to provide assurance that
the responsibilities at various levels are discharged effectively and that
adequate systems are in place. The Management continuously reviews the internal
control systems and procedures to obtain comfort regarding orderly and
efficient conduct of business. The review includes overseeing adherence to the
management policies, safeguarding the assets of the Company and ensuring
preparation of timely and accurate financial information. The emphasis on
internal control prevails across functions and processes, covering the entire
gamut of activities including finance, supply chain, sales and distribution,
marketing etc. A strong system of internal audit and effective and comprehensive
reviews by the Audit Committee of the Board have strengthened the internal
control within the organization
Website
Details Attached
Company
Profile:
Century Textiles
& Industries Limited, Mumbai was incorporated in the year 1897. Till 1951
it had only one industrial unit - Cotton Textile Mills. Since then the Company
has been making rapid progress in widely diversified fields. At present, the
company is not only the trend setter in Cotton Textiles but has also made a
remarkable presence in Yarn, Denim, Viscose Filament Rayon Yarn, Tyrecords,
Caustic Soda, Sulfuric Acid, Salt, Cement and Pulp & Paper. The company is
managed by Board of Directors, comprising of eminent Industrialists,
businessmen and dedicated professionals and chairman of the Board is Mr. B.K.
Birla.
GLOBAL PRESENCE
Century Textiles produces 100% cotton fabrics. Century's
cloth covers the length and breadth of the Globe. In the highly competitive
international markets, Century's cloth has carved a niche for itself. In fact, Century
Fabric has charmed its way into:
VISION STATEMENT
To continuously
modernise, expand and technologically upgrade their Textile, Yarn and Denim
divisions for producing excellent quality goods to meet the changing customer
needs, foreign exchange earnings by promoting exports, face global &
domestic competition and further improve their global as well as domestic
presence, fame and glory. To ensure customer satisfaction, become cost
effective, to promote employee participation and to implement innovative
methods for enrichment of quality of life of all concerned.
Out Ready to wear
garments started about two years ago under the brand "Cottons by Century"
is on the success path and gradually they further expect encouraging
improvement in sales in the coming years.
CONCRETE VISION ELEMENTS
- Modernisation,
expansion and technological upgradation to achieve International Standards
of excellence.
- Marketing
focus on the changing customer needs and change of product suited to
customer requirements.
- Promotion of
exports and earning valuable foreign exchange for the country.
- Regular
upgradation to face global challenges and competition from developing countries.
- Continuous
Organizational restructuring to ensure customer satisfaction.
- Cost
effectiveness in all areas of operations and effective management to meet
global competition.
- Participation
of employees and their motivation for achieving their visionary goals.
Goal
- To ensure
customer suitable and cost-effective production technology.
- To conquer
tomorrow's marketplace today.
- To ensure and
monitor financial operations in a way to suitably encounter currency value
fluctuations.
- To evolve a
cost-effective system for integrating continuous quality improvement
efforts of the people at all levels in their organisation, leading to
Total Quality Management.
- To inspire
all employees of the organisation towards improved Quality of Life,
thereby focussing everyone towards beating the best.
Awards
AN ENVIABLE STRING OF AWARDS
At the first ever
global contest sponsored by 'The Textile Horizon' - an International Textile
Magazine published by The Textile Institute,
The above award is
an addition to the glittering string of awards, applauds and achievements, a
record yet to be set by any Company in
In its pursuit of
allround excellence, Century has a tradition to devote its resources towards
Greener Earth which result in receiving Championship Trophy at Flower, Plants
and Vegetable Show on several occasions.
Century has
inculcated habit of regular savings through-out the organisation. National
Savings Commissioner for
Management
EFFICIENT MANAGEMENT
Century Textiles
is well known for a vigilant and professional management. To promote Human
Resource Development, it imparts regular training to all workers and organises
refresher courses for Supervisory and Management cadre staff. It has a team of
dedicated and experienced workmen, managerial, technical staff and executives.
It has cordial relations with workmen and their representative union.
With planned and
channelised material feeding to machines, it has been possible to achieve
machine utilisation of 99.5% of the installed capacity and manufacture yarn and
fabrics of International standard.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.69 |
|
|
1 |
Rs.81.87 |
|
Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|