MIRA
INFORM REPORT
|
Report Date : |
19.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GRASIM INDUSTRIES LIMITED |
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Formerly Known As : |
GWALIOR RAYON SILK (WEAVING) COMPANY LIMITED |
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Registered Office : |
P. O. Birlagram, Nagda – 456 331, Madhya Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.08.1947 |
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Com. Reg. No.: |
10-410 |
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CIN No.: [Company
Identification No.] |
L17124MP1947PLC000410 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BPLG00117F |
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Legal Form : |
Public Limited Liability Company The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing and selling of complete range of plant and machinery for viscose staple fibre, viscose fibre yarn, rayon grade pulp & paper, sulphuric acid, alum, olieum, carbon-bi-sulphide, caustic soda, chlorine, hydrochloric acid, stable bleaching powder, water treatment plant, chloro-sulphuric acid, mini cement plant on turnkey basis, sodium sulphate, chlorine derivatives, electrostatic precipitator, baling press and evaporation system. |
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 199000000 |
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Status : |
Excellent |
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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 Birla Group. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are reported as fair. General financial position of the company is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
P. O. Birlagram, Nagda – 456 331, Madhya Pradesh, India |
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Tel. No.: |
91-7366-246760/62/64/66 |
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Fax No.: |
91-7366-244114/246024 |
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E-Mail : |
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Website : |
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Corporate Office : |
91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400 021, Maharashtra |
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Tel. No.: |
91-22-22819520 |
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Fax No.: |
91-22-22284629 |
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Office: |
Taple Fiber Division, Century Bhavan, 3rd Floor, Dr. A B
Road, Worli, Mumbai – 400030 |
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Tel. No.: |
91-22-24210182-86 |
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Fax No.: |
91-22-24220892 |
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Factory 1 : |
FIBRE,
PULP & CHEMICAL PLANTS
Staple
Fibre Division
Birlagram, Nagda – 456 331, Madhya Pradesh Tel. No. 91-7366-246760-246766 Fax No. 91-7366-244114/246024 Harihar
Polyfibres & Grasilene Division
Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka Tel. No. 91-8373-232637-39 Fax No. 91-8373-232465/232875 Birla
Cellulosic
Birladham, Kharach, Kosamba 394 120, District Bharuch, Gujarat Tel. No. 91-2629-270001/5 Fax No. 91-2629-270010/270310 Chemical
Division Birlagram 456 331 Nagda, Madhya Pradesh Tel No. : 91-7366 245501 - 03 Fax No. : 91-7366 246767 / 245845 Pulp
and Fibre Divisions
Birlakootam, Kozhikode, Mavoor – 673 661, Kerala Tel. No. 91-495-2483161-3 Fax No. 91-495-2483116 CEMENT
PLANTS
Vikram
Cement
District Neemuch, Khor – 458 470, Madhya Pradesh Tel. No. 91-7420-230514/230614 Fax No. 91-7420-235524 Aditya
Cement
Adityapuram Sawa – Shambhupura, District Chittorgarh, Rajasthan – 312 613 Tel. No. 91-1472-22201972/97 Fax No. 91-1472-2220289 Grasim
Cement
Grasim Vihar, Village P. O. Rawan, Tehsil Sigma, District Raipur, Madhya Pradesh Tel. No. 91-7726-288217/20 Fax No. 91-7726-288215/288209 Rajashree Cement
Aditya Nagar, Malkhed Road, Gulbarga – 582 292, Karnataka Tel. No. 91-8441-2687221-24 Fax No. 91-8441-2687225 Grasim
Cement Division – South
Reddipalayam P.O. : Ariyalur, District Perambalur – 621 704, Tamilnadu Tel. No. 91-4329-249240 Fax No. 91-4329-249253 Birla
White
Rajashree Nagar, Bhopalgarh, District Jodhpur, Kharia Khangar – 342 606, Rajasthan Tel. No. 91-2920-26040/89 Fax No. 91-2920-264225
Other
Plants
Bhiwani
Textile Mills/ Elegant Spinners
Birla Colony, Bhiwani – 125 021, Haryana Tel. No. 91-1664-242577 / 243126 Fax No. 91-1664-243717 / 242575 Sponge
Iron Division
Vikram Ispat, Salav, District Raigad – 402 202, Maharashtra Tel. No. 91-2141-260110 / 260119 Fax No. 91-2141-260104 / 260122 Vikram Woolens
GH I to IV, Ghironghi, Malanpur, District Bhind - 477 117, Madhya Pradesh Tel. No. 91-7539-283602 / 283606 Fax No. 91-7539-283339 |
DIRECTORS
|
Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Chairman |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Director |
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Name : |
Mr. M. L. Apte |
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Designation : |
Director |
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Name : |
Mr. B. V. Bhargava |
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Designation : |
Director |
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Name : |
Mr. R. C. Bhargava |
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Designation : |
Director |
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Name : |
Mr. Y. P. Gupta |
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Designation : |
Director |
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Name : |
Mr. S. B. Mathur |
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Designation : |
Director |
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Name : |
Mr. Cyril Shroff |
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Designation : |
Director |
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Name : |
Mr. S. G. Subrahmanyan |
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Designation : |
Director |
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Name : |
Mr. D. D. Rathi |
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Designation : |
Director |
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Name : |
Mr Shailendra K. Jain |
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Designation : |
Whole Time Director |
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OTHER
PERSONNEL :
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Name : |
Mr. Ashok Malu |
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Designation : |
Company Secretary
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Management
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Staple Fibre & Pulp Divisions :- |
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Mr. Shailendra K. Jain |
Business Director
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Mr. S. S. Maru |
Senior Executive
President, Pulp and Grasilene Divisions, Harihar |
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Mr. Thomas Varghese |
Executive
President (Marketing) |
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Mr. Vijay Kaul |
Senior Executive
President, Birla Cellulosic Division, Kharach |
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Mr. S. V. Kulkarni |
Executive
President, Birla Cellulosic Division, Kharach |
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Cement Divisions :- |
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Mr. Saurabh Mishra |
Business Head |
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Mr. O. P. Puranmalka |
Group Executive
President and Chief Marketing Officer |
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Mr. S. K. Maheshwari |
Senior Executive
President & Chief Manufacturing Officer |
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Mr. L. N. Rawat |
Senior Executive
President – Rajashree Cement |
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Mr. R. M. Gupta |
Senior Executive
President, Grasim Cement |
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Mr. D. R. Dhariwal |
President, Birla
White Cement |
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Mr. H. N. Singh |
Executive
President |
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Mr. D. P. Somani |
Executive
President, Vikram Cement & Aditya Cement |
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Chemical Division :- |
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Mr. G. K. Tulsian |
Executive
President |
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Mr. Sunil Kulwal |
Executive
President |
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Textile Divisions :- |
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Mr. Vikram D. Rao |
Group Executive
President (Textiles) |
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Mr. S. Krishnamoorthy |
Chief Operating
Officer |
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Corporate
Finance Division |
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Mr. D.D. Rathi |
Whole Time Director & CFO |
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Mr. Sanjeev Bafha |
Dy. Chief Financial Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters & Persons acting in concert |
22,898,164 |
25.00 % |
|
UTI Funds and Mutual Funds |
9,220,691 |
10.10 % |
|
Banks and FIs |
11,129,026 |
12.10 % |
|
FIIs |
19,481,318 |
21.30 % |
|
GDRs |
10,445,215 |
11.40 % |
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Corporates |
3,011,267 |
3.30 % |
|
NRIs/OCBs |
3,522,473 |
3.8 % |
|
Indian Public |
11,965,500 |
13.00 % |
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Total |
91,673,654 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and selling of complete range of plant and machinery for viscose staple fibre, viscose fibre yarn, rayon grade pulp & paper, sulphuric acid, alum, olieum, carbon-bi-sulphide, caustic soda, chlorine, hydrochloric acid, stable bleaching powder, water treatment plant, chloro-sulphuric acid, mini cement plant on turnkey basis, sodium sulphate, chlorine derivatives, electrostatic precipitator, baling press and evaporation system. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
1. Viscose Staple Fibre/Polynosic HWM/Hi-Performance/Speciality Fibre |
Tonne |
322100 |
257325 |
228981 |
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· At Nagda, Mavoor, Harihar & Kharach |
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2. Sulphuric Acid (Captive & Intermediate Product) |
Tonne |
298070 |
191750 |
204485 |
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· At Nagda, Mavoor, Harihar & Kharach |
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3. Carbon-di-Sulphide (Captive & Intermediate Products) |
Tonne |
67615 |
42915 |
41199 |
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· At Nagda, Mavoor, Harihar & Kharach |
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4. Rayon Grade Pulp (At Mavoor & Harihar) |
Tonne |
72000 |
70000 |
72558 |
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5. Rayon Grade Caustic Soda |
Tonne |
198000 |
190800 |
165509 |
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6. Stable Beaching Powder |
Tonne |
45000 |
150000 |
22385 |
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7. Man-Made Fibre Fabrics (At Gwalior & Bhiwani) |
Mtr. (in 000’s) |
600 Looms |
126 Looms |
12441 |
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8. Man-Made Fibre Yarn (At Bhiwani & Malapur) |
KG. (in 000’S) |
117500 Spindles |
43488 Spindles |
9068 |
|
9. Cement (At Jawad, Raipur, Shambhupura, Malkhed & Reddipalayam) |
Tonne |
18354356 |
13115290 |
13826256 |
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· White Cement (At Khariakhangar) |
Tonne |
475000 |
475000 |
350174 |
|
11. Industrial Machinery |
Tonne |
25000 |
15950 |
-- |
|
12. Poly Aluminium Chloride |
Tonne |
66000 |
36000 |
27301 |
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13. Chloro Sulphonic Acid |
Tonne |
49500 |
16500 |
16479 |
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14. Sponge Iron |
Tonne |
600000 |
900000 |
505825 |
GENERAL
INFORMATION
|
No. of Employees : |
16648 |
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Bankers : |
v State Bank of India, Bahrain v EXIM Bank, USA v Hongkong Bank, London v IDBI v ICICI v Mashreq Bank, Dubai v Standard Chartered Grindlays Bank, Dubai v British Bank of Middle East, Dubai |
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Facilities : |
SECURED LOANS
(Figures are in Rupees Millions)
UNSECURED LOANS (Figures are in
Rupees Millions)
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
G. P. Kapadia & Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra |
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Memberships : |
Nil |
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Collaborators : |
Nil |
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Associates: |
Aditya Birla Science & Technology Company Limited, became associate w.e.f. 28th March, 2006 |
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Subsidiaries |
v Sun God Trading and Investment Limited v Samruddhi Swastik Trading and Investment Limited v Shree Digvijay Cement Company Limited v
UltraTech
Cement Limited v
Narmada Cement
Company Limited v
Dakshin Cement
Limited v UltraTech Ceylinco (Private) Limited |
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|
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Joint Venture : |
v Birla Tata AT & T Limited v Idea Cellular Limited v AV Cell Inc, Canada v
TANFAC
Industries Limited, (ceased to be a joint venture w.e.f. 3rd February, 2006) v A V Nackawic Inc., Canada, (became a joint venture w.e.f. 4th October, 2005) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
95,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 950.000 millions |
|
|
Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
|
|
150,000 |
15% “A” Series |
|
Rs. 15.000 millions |
|
100,000 |
8.57% “B” Series |
|
Rs. 10.000 millions |
|
300,000 |
9.30% “C” Series |
|
Rs. 30.000 millions |
|
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TOTAL |
|
Rs. 1005.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
91673654 |
Equity Shares |
Rs. 10/- each |
Rs. 916.700 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
916.900 |
916.900 |
916.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.200 |
|
|
3] Reserves & Surplus |
48903.900 |
42366.600 |
35191.400 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
49820.800 |
43283.500 |
36108.300 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13310.800 |
14725.500 |
13278.000 |
|
|
2] Unsecured Loans |
5862.700 |
5357.900 |
7090.900 |
|
|
3] Docu. Bills Disc. With Banks |
623.200 |
0.000 |
283.400 |
|
TOTAL BORROWING
|
19796.700 |
20083.400 |
20652.300 |
|
|
DEFERRED TAX LIABILITIES |
5843.800 |
0.000 |
6325.000 |
|
|
|
|
|
|
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TOTAL
|
75461.300 |
63366.900 |
63085.600 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
30046.300 |
30626.000 |
31166.100 |
|
Capital work-in-progress
|
2936.400 |
1459.400 |
790.900 |
|
|
|
|
|
|
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INVESTMENT
|
34817.100 |
29820.200 |
25406.500 |
|
FIXED ASSETS HELD FOR DISPOSAL
|
127.600 |
0.000 |
225.700 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
7507.300
|
6785.900
|
4594.600 |
|
|
Sundry Debtors
|
4134.500
|
5220.100
|
4846.300 |
|
|
Cash & Bank Balances
|
1555.800
|
867.000
|
2274.800 |
|
|
Loans & Advances
|
7055.400
|
6164.800
|
3244.400 |
|
|
Interest accrued on Investment
|
14.600
|
0.000
|
0.000 |
Total Current Assets
|
20267.600
|
19037.800
|
14960.100 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
9691.500
|
14772.400
|
7521.000 |
|
|
Provisions
|
3042.200
|
2804.100
|
1942.700 |
Total Current Liabilities
|
12733.700
|
17576.500
|
9463.700 |
|
Net Current Assets
|
7533.900
|
1461.300
|
5496.400 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
75461.300 |
63366.900 |
63085.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover
[including other income]
|
67812.700 |
75464.600 |
53893.000 |
|
|
|
|
|
Profit/(Loss)
Before Tax
|
12060.300 |
13037.100 |
10772.600 |
Provision for Taxation
|
3428.200 |
4180.000 |
2980.000 |
Profit/(Loss) After
Tax
|
8632.100 |
8857.100 |
7792.600 |
|
|
|
|
|
Export Value
|
NA |
NA |
1561.700 |
|
|
|
|
|
Import Value
|
NA |
NA |
3803.100 |
|
|
|
|
|
Total Expenditure
|
55793.700 |
55142.100 |
43409.300 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 (1st
Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
|
Sales Turnover |
1,8769.900 |
2,0108.200 |
22793.900 |
|
Other Income |
374.700 |
502.200 |
443.900 |
|
Total Income |
1,9144.600 |
2,0610.400 |
23237.800 |
|
Total Expenditure |
1,3637.200 |
1,4786.600 |
16133.300 |
|
Operating Profit |
5507.400 |
5823.800 |
7104.500 |
|
Interest |
235.000 |
240.700 |
240.100 |
|
Gross Profit |
5272.400 |
5583.100 |
6864.400 |
|
Depreciation |
740.900 |
755.700 |
806.900 |
|
Tax |
1390.500 |
1458.000 |
1922.700 |
|
Reported PAT |
3119.000 |
3378.400 |
4115.800 |
200606 Quarter 1 –
Expenditure Includes (Increase)/Decrease in stock Rs 151.10
million Raw Material Consumed Rs 4638.40 million Purchase of Finished Goods Rs
681.70 million Payment to & Provision for Employees Rs 1130.30 million
Power & Fuel Rs 2645.00 million Freight, Handling & Other Expenses Rs
2302.60 million Other Expenditure Rs 2088.10 million Tax Includes Provision for
Current Tax Rs 1390.50 million Deferred Tax Rs 22.00 million EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended June 30, 2006
Complaints Pending at the beginning of the quarter 01 Complaints Received
during the quarter 07 Complaints disposed off during the quarter 08 Complaints
unresolved at the end of the quarter Nil 1. Consolidated Results have been
prepared in accordance with Accounting Standard on Consolidated Financial
Statements (AS-21), Accounting Standard on Accounting for Investments in
Associates (AS-23), and Accounting Standard on Financial Reporting of Interest
in Joint Ventures (AS-27) issued by the Institute of Chartered Accountants of
India (ICAI). 2. During the quarter ended June 30, 2006, due to water shortage,
the operations at the Company's Viscose Staple Fibre plant at Nagda were
suspended for forty five days and Chemical plant at Nagda operated at about
thirty five percent of its capacity during the same period. With the onset of
monsoon, the operations at Staple Fibre plant at Nagda were restarted from July
04, 2006. The operations at Chemical plant at Nagda, which were also gradually
increased, have been again curtailed to about fifty percent of its capacity
with effect from July 21, 2006 for about four weeks, on account of shut-down of
captive power plant for major repairs. 3. The revised Accounting Standard on
Employee Benefits (AS- 15) issued by the ICAI effective from April 01, 2006,
has been complied with and there is no significant impact of the same on the
results of the quarter ended June 30, 2006. The adjustment to opening revenue
reserves required under the transitional provisions of AS-15 will be made at
the year end. 4. In July 2006, the Company has acquired 72.05 millions shares
of Rs 10 each, at par, for an aggregate amount of Rs 720.50 million pursuant to
the rights issue made by its subsidiary, Shree Digvijay Cement Company Ltd (SDCCL).
Post rights issue, shareholding of the Company in SDCCL is 53.66%. 5. Segments
have been identified in line with the Accounting Standard on Segment Reporting
(AS-17), taking into account the organisational structure as well as
differential risks and return of these segments. Details of products included
in each of the above segments are as under: Fibre & Pulp - Viscose Staple
Fibre & Rayon Grade Pulp Cement - Grey & White Cement Sponge Iron -
Sponge Iron Chemicals - Caustic Soda & Allied Chemicals Textiles - Fabric
& Yarn Others - Mainly Telecom (in consolidated results) 6. Previous
period's figures have been regrouped / rearranged wherever necessary to conform
to the current period's classification. 7. The above Unaudited results for the
quarter ended June 30, 2006 have been reviewed by the Audit Committee of the
Board and approved by the Board of Directors at the meeting held on July 29,
2006. The limited review, as required under Clause 41 of Listing Agreement has
been completed by the auditors of the Company and the related report is being
submitted to the concerned Stock Exchanges.
200609 Quarter 2 –
Expenditure Includes (Increase)/Decrease in stock Rs
(144.50)million Raw Material Consumed Rs 5350.40 million Purchase of Finished
Goods Rs 605.90 million Payment to & Provision for Employees Rs 1230.50
million Power & Fuel Rs 2805.50 million Freight, Handling & Other
Expenses Rs 2365.90 million Other Expenditure Rs 2572.90 million Tax Includes
Provision for Current Tax Rs(1458.00) million Deferred Tax Rs 9.00 million EPS
is Basic & Diluted Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 06 Complaints disposed off during the
quarter 06 Complaints unresolved at the end of the quarter Nil 1. Consolidated
Results have been prepared in accordance with Accounting Standard on
Consolidated Financial Statements (AS-21), Accounting Standard on Accounting
for Investments in Associates (AS-23), and Accounting Standard on Financial
Reporting of Interest in Joint Ventures (AS-27) issued by the Institute of
Chartered Accountants of India (ICAI). 2. The operations at the Company's
Viscose Staple Fibre Plant at Nagda which were suspended in the previous quarter
due to water shortage were restored from July 04, 2006. 3. The operations at
Chemical Plant at Nagda, which were affected in the previous quarter due to
water shortage, were restored from July 04, 2006. The same were again curtailed
to about fifty percent capacity from July 21, 2006, on account of shut-down of
captive power plant for major repairs, which is likely to continue till
January, 2007. While this will impact the profitability of Chemical Division,
the Company does not expect any significant impact on its overall profitability
on this account. 4. During the quarter, the Company has acquired the entire
paid up equity share capital consisting of 50,000 fully paid shares of Rs 10
each of Harish Cement Ltd at a price of Rs 20 per share, thus making it a
wholly owned subsidiary of the Company. 5. Segments have been identified in
line with the Accounting Standard on Segment Reporting (AS-17), taking into
account the organisational structure as well as differential risks and return
of these segments. Details of products included in each of the above segments
are as under: Fibre & Pulp - Viscose Staple Fibre & Rayon Grade Pulp
Cement - Grey & White Cement Sponge Iron - Sponge Iron Chemicals - Caustic
Soda & Allied Chemicals Textiles - Fabric & Yarn Others - Mainly
Telecom (in consolidated results) 6. Previous period's figures have been
regrouped / rearranged wherever necessary to conform to the current period's
classification. 7. The above Unaudited results for the quarter ended September
30, 2006 have been reviewed by the Audit Committee of the Board and approved by
the Board of Directors at the meeting held on October 18, 2006. The limited
review, as required under Clause 41 of Listing Agreement has been completed by
the auditors of the Company and the related report is being submitted to the
concerned Stock Exchanges.
200612
Quarter 3
Expenditure Includes (Increase)/Decrease in stock Rs 46.00
million Raw Material Consumed Rs 5779.40 million Purchase of Finished Goods Rs
846.80 million Payment to & Provision for Employees Rs 1112.50 million
Power & Fuel Rs 3114.10 million Freight, Handling & Other Expenses Rs
2610.60 million Other Expenditure Rs 2623.90 million Tax Includes Provision for
Current Tax Rs 1922.70 million Deferred Tax Rs 19.00 million EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 06 Complaints disposed off during the quarter 06 Complaints
unresolved at the end of the quarter Nil 1. Consolidated Results have been
prepared in accordance with Accounting Standard on Consolidated Financial
Statements (AS-21), Accounting Standard on Accounting for Investments in
Associates (AS-23), and Accounting Standard on Financial Reporting of Interest
in Joint Ventures (AS-27) issued by the Institute of Chartered Accountants of
India (ICAI). 2. The operations at Chemical Plant at Nagda, which were
curtailed down to about fifty percent of capacity in the previous quarter due
to shut down of captive power plant for major repairs, have been restored fully
from December 30, 2006. 3. The Company has entered into an agreement to acquire
31% share in the registered capital of Birla Jingwei Fibres Company Ltd (BJFC),
a joint venture among certain Aditya Birla Group Companies and Hubei Jing Wei
Chemical Fibre Company Ltd(HJW), China- BJFC has acquired a Viscose Staple
Fibre Plant in China having capacity of 30000 tons per annum and has commenced
operations from November 01, 2006. Pending issue of Investment Certificate by
BJFC to the Company and pending preparation of its financial results for the
period ended December 31, 2006, the consolidated results of the Company do not
include results of BJFC, the impact of which will not be significant. 4.
Segments have been identified in line with the Accounting Standard on Segment
Reporting (AS-17), taking into account the organisational structure as well as
differential risks and return of these segments. Details of products included
in each of the above segments are as under: Fibre & Pulp - Viscose Staple
Fibre & Rayon Grade Pulp Cement - Grey & White Cement Sponge Iron -
Sponge Iron Chemicals - Caustic Soda & Allied Chemicals Textile - Fabric
& Yarn Others - Mainly Telecom (in consolidated results). 5. Previous
periods figures have been regrouped / rearranged wherever necessary to conform
to the current period's classification. 6. The above Unaudited result for the
quarter ended December 31, 2006 have been reviewed by the Audit Committee of
the Board and approved by the Board of Directors at the meeting held on January
23, 2007 The limited review, as required under Clause 41 of Listing Agreement
has been completed by the auditors of the Company and the related report is
being submitted to the concerned Stock Exchanges.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.43 |
0.51 |
0.63 |
|
Long Term Debt
Equity Ratio |
0.36 |
0.43 |
0.54 |
|
Current Ratio |
0.93 |
0.86 |
0.82 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.26 |
1.24 |
1.09 |
|
Inventory |
10.64 |
12.66 |
12.27 |
|
Debtors |
16.26 |
14.31 |
13.41 |
|
Interest Cover
Ratio |
13.39 |
10.40 |
8.00 |
|
Operating Profit
Margin (%) |
20.97 |
23.98 |
24.54 |
|
Profit Before
Interest and Tax Margin (%) |
17.13 |
20.03 |
20.08 |
|
Cash Profit
Margin (%) |
15.18 |
16.25 |
17.17 |
|
Adjusted Net
Profit Margin (%) |
11.35 |
12.30 |
12.71 |
|
Return on Capital
Employed (%) |
19.61 |
24.04 |
22.97 |
|
Return on Net
Worth (%) |
18.56 |
22.34 |
23.70 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.2040.00/- |
|
Low |
Rs.2003.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 25th August, 1947 at Nagda in Madhya Pradesh having Company Registration Number 410.
Grasim Industries, formerly Known as Gwalior Rayon Silk Manufacturing. (Weaving) Company, was incorporated in 1947 and commenced operations in 1950.
The company which commenced operation in 1950 by manufacturing fabrics using imported rayon (a manmade cellulosic fibre) at Gwalior has diversified into cement and became the third largest producer of cement in India. The company is also equally successful in Viscose Stable Fibre. The company has successful JVs abroad that include viscose staple fibre plants in Thailand and Indonesia and Carbon black plants in Thailand and Egypt and pulp plant in Canada.
The company’s joint ventures in India are Mangalore Refinery and Petrochemicals, Bihar Caustic and Chemicals, Tanfac Industries, Bina Power Supply Company, Birla AT & T Company, Dharani Cement Company, the companies subsidiary are Kerala Spinners, Sun God Trading and Investments and Samruddhi Swastik Trading and Investment.
The company, a constituent of Aditya Birla group, is one of the most successful diversified companies. It has a presence in VSF, pulp and chemicals (39% of total gross sales in FY 2000-01), cement (39%), sponge iron (8%) and others (8%).
Its joint ventures abroad include viscose staple fibre plants in Thailand and Indonesia and carbon black plants in Thailand and Egypt and pulp plant in Canada. Joint ventures in India are Mangalore Refinery and Petrochemicals, Bihar Caustic & Chemicals, Tanfac Industries, Bina Power Supply Company, Birla AT&T company, Dharani Cement Company, Grasim's subsidiaries are Kerala Spinners, Sun God Trading and Investments and Samruddhi Swastik Trading and Investments.
After consolidating its cement business by acquiring the cement operations of Indian Rayon and picking up strategic stakes in Dharani Cements and Shree Digvijay Cement, Grasim has become the third largest producer of cement in the country. The acquisitions have also helped Grasim to improve its geographical profile. The consolidation and the resultant economics of scale, improved logistics and operational synergies have strengthened its position.
In FY 2000-01, the company posted a sharp improvement in its performance. Three major factors have contributed to the sterling performance. Firstly, there was an all round growth by way of heightened production and turnover volumes along with higher realizations. Secondly, there were savings in operating costs resulting from on-going modernisation efforts, up-gradation of plants and energy optimisation. Thirdly, there was a reduction in financing cost through restructuring of high-cost debt coupled with effective fund management and reduction of debts.
To grow its cement business and to sustain its market share, Grasim has envisaged a capital expenditure of Rs 5300 millions.
MILESTONES
1947 – Company Incorporated
1950 – Commenced Operations
1954 – Company commenced rayon production at Nagda, Madhya Pradesh
1962 – Company incepts an Engineering Division to provide plant and machinery for VSF.
1963 – Company set up its first rayon grade pulp plant at Mavoor (Kerala) – the first of its’ kind plant with rayon grade pulp being made from bamboo and other hardwoods.
Company purchased a composite textile mill at Bhiwani (Haryana)
1968 – Rayon production commenced at Mavoor (Kerala)
1972 – Another pulp plant big production at Harihar (Karnataka) – a completely indigenous plant based on company’s own engineering and know-how.
At Nagda, Madhya Pradesh the company commenced production of rayon grade caustic soda, a major raw material for VSF production, another step towards being self-reliant.
1977 – At Harihar (Karnataka), the company’s third rayon plant was into production.
1985 – Vikram Cement – the company’s cement plant was on stream at Jawad (Madhya Pradesh).
1987 – Vikram Cement’s second production line was commissioned.
1991- A third production line was added at Vikram Cement.
1992 – The company established Birla International Marketing Corporation (BIMC), a Merchant Exporter.
1993 – Vikram Ispat, India’s third largest gas-based sponge iron plant, was commissioned. Birla Consultancy and Software Services set up to provide consulting services in the IT area and for software development.
1995 – The company commissioned two Greenfield cement plants – the Grasim Cement at Raipur (Madhya Pradesh) and Aditya Cement at Shambhupura (Rajasthan). The company set up tow new spinning units – Elegant Spinners at Bhiwani (Haryana) and Vikram Woollens at Malanpur (Madhya Pradesh).
1997 – The first phase of company’s fourth VSF plant was commissioned at Kharach (Gujarat).
1998 – The company acquires Shree Digvijay Cements Limited.
Through a restructuring exercise, the cement business of Group Company, Indian Rayon and Industries was transferred to company.
1999 – The company’s VSF and Rayon Grade Pulp units at Mavoor closed down due to lack of raw materials.
2000 – The Lawson Competency Centre was set up as division of Birla Consultancy and Software Services, the software arm of company, following a tie up with Lawson Competency Centre (U.S.A.), among Fortune’s top five private software companies.
Birla Consultancy and Software Services spun off, became separate entity, Birla Technology Limited.
2001 – The company has commissioned 1.0 millions TPD grinding unit at Bhatinda, Punjab on December 2001.
2001-02 – Gwalior fabric unit was sold to Melodeon Exports and decided to close the Mavoor plant in Kerala. The company also divested its entire stake in Birla Technologies, a software subsidiary of the company to PSI Data Systems.
In November 2001, Grasim acquired a strategic 10% equity stake in Larsen & Toubro, the second largest player in the cement industry, for Rs 7665 millions. The stake was acquired from Reliance Industries.
On 26th February 2002, the Board of Directors of the company approved the divesting of its loss making fabric-manufacturing operations at Gwalior to Melodeon Exports and its Associates. The Gwalior unit, with a block value of Rs 150 millions would be sold for a negative consideration of Rs 150 millions.
Business:
The company is also engaged in consultancy services, technical know-how, basic and detailed engineering and supervision of erection and commissioning.
Generic Names of Principal Products / Services of the Company are:-
|
Item Code No. |
Product Description |
|
550410.00 |
Staple Fibre |
|
252329.01 |
Grey Portland Cement |
|
720310.00 |
Sponge Iron |
The VSF business put up a creditable performance. Amidst intense competition from Polyester industry, they improved realizations by 6%, underterred by the severe water scarcity arising out of poor monsoons. In fact, company’s plants at Nagda and Harihar had to be shut for 45 days and 75 days respectively. To continue to service customer needs uninterruptedly, the company operated its VSF manufacturing facilities at more than their rated capacities and shored up its inventories. These are now at a comfortable level as the buffer for the current quarter for this fiscal had been built. Expansion of VSF capacity at all its plants was yet anotehr forward looking step taken by the company. With an increase of 31075 MT, the total VSF capacity stands raised to 251850 MT at the end of FY 2004.
The company’s cement business has been the growth driver. Its performance has been notable, recording a growth of 7%, both in production and sales, even as the industry grew by 5%. The share of blended cement in the total cement production rose from 35% to 46%. Despite realizations flat, operating margins were higher. Higher sales volumes and cost optimization measures in operations and logistics led to the improved performance of this business.
The Sponge Iron Business did remarkably well too. Production and Sales volumes were up by 12% and 11% at 687272 MT and 676921 MT respectively. Realisation surged by 44% to Rs. 9188 per MT. Viewed int eh backdrop of increased input cost to higher usage of naptha and higher price of pellets and iron ore, the performance of the division had been commendable.
The chemical business posted an impressive result registering an all round growth of 4% over the previous year. ECU ralization was up by 13% over the corresponding year.
Resultant from the measures on operational efficiencies through de-bottlenecking, plant upgradation, energy reduction and modernization processes has resulted in bolstering productivity.
Operational excellence, cost optimization, effective financial management which are at the core of company’s processes, coupled with continuous restructuring had led in no small measure to company’s exemplary results.
The company has technical collaboration with Udhe GmbH, Germany for manufacture of caustic soda by membrane cell in Caustic Soda Division.
The company's plants at Nagda, Harihar, Jawad, Raipur, Sambhupura and Jodhpur has been accredited with ISO 14001 Certification.
The company exports machinery & equipment for viscose staple fibre, sulphuric acid, carbon-bi-sulphide and alum plants on turn-key basis and technical consultancy services to Cuba, Indonesia, Kenya, Korea and Thailand.
The company imports special instruments and special metal sieve from Germany and UK.
The company has joint venture with :-
· Mangalore Refinery and Petrochemicals Limited
· Birla Tata AT & T Limited
· Idea Cellular Limited
· Birla Sun Life
· Indo-Gulf Corporation Limited
· AV Cell Inc., Canada
· Tanfac Industries Limited
The company is in trade terms with :-
· Fine Polycolloids Private Limited
· Sankalp Chemical, Mumbai
· VRW Refractories
· Bright Star Industries
The company’s fixed assets of important value include land, buildings, workers’ quarters under government subsidised scheme, railway sidings, plant & machinery, ships, furniture, fittings and office equipments, livestock and vehicles, etc.
MEMBERSHIPS
v Confederation of Indian Industry
PRESS RELEASE:
Grasim, The Aditya Birla
Group’s Flagship Company - Reports Excellent Performance for FY 2005
Net Profit after Tax (Before
Diminution) at Rs. 9780 MILLIONS, Up by 26%, Proposes 160% Dividend
Mumbai,
Maharashtra, India, Friday, April 29, 2005 -- (Business Wire India)
Grasim, the flagship
Company of the Aditya Birla Group, has posted commendable performance for the
financial year ended 31st March 2005. Capacity utilisation, strengthening of
operational efficiencies and marketing of higher volumes of an enriched product
mix have been key to this outstanding success.
The Company has attained an all round growth, with higher production, sales
volumes and realizations in all of its major businesses. While Turnover was up
by 19% at Rs.62470 millions, Profit before taxes and diminution was
higher by 30% at Rs.13960 millions. Notwithstanding a considerably higher
provision for tax expense, Net Profit (before considering diminution in value
of investment/loans) rose appreciably by 26% to Rs.9780 millions.
As a matter of prudence, the Company has provided for a sum of Rs.920 millions
towards permanent diminution in the value of investment/ loans to its
subsidiary, Shree Digvijay Cement Co. Limited PAT, even after this charge for
diminution, has risen by 14%.
The Company has posted impressive performance. Turnover at
Rs.7,6070 millions mirrors a 6% increase over the corresponding year. Net
Profit was lower at Rs.8630 millions, constrained by the Company's Sponge Iron
business, which was constricted by the phenomenal rise in input costs and
non-availability of natural gas. The commendable performance of the Cement
business, cost optimization measures and substantially reduced interest costs
helped mitigate the impact on profits to a great extent.
The VSF business' performance has been good. Despite the record global cotton
crop for the second consecutive year and disturbances in European markets
post-quota abolition, the business recorded its highest ever sales volumes of
242,399 tons. This was made possible due to a healthy domestic demand and
higher VSF exports to South Asian countries. The Company took a conscious
decision to scale down its production with a view to reducing inventory levels.
As a result, production was lower by 8% at 228,981 tons. Realisations were
lower at Rs.73,786 per ton, reflecting the lower prices of cotton and VSF
globally.
The Cement business posted an excellent performance. Higher capacity
utilisation, increased sales volumes and better realizations translated into
improvement in operating margins and increased profitability. Production at
13.83 Mn. tons and sales volumes at 13.99 Mn. tons were higher by 11% over the
corresponding year. Realisations grew reflecting better pricing environment.
Reduced power consumption, increase in blended cement ratio and better
economies of scale contributed in no small measure.
The White Cement business too performed exceedingly well. Production and sales
volumes rose by 11% and 12% respectively. Realizations increased by 7%.
Sponge Iron business remained under severe pressure during the year. Production
was limited due to nonavailability of natural gas. Consequently, sales volumes
declined. Operating margins were squeezed due to a steep increase in the prices
of inputs, viz., natural gas, iron ore and pellets. This impacted the overall
profitability of the Company.
The Chemical business recorded an improvement. Both production and sales were
up by 2%, while realizations amplified by 9% at Rs.20,594 per ton.
An unrelenting thrust on operational efficiencies through de-bottlenecking,
plant up-gradation, energy reduction and modernization processes has enabled
the Company to sustain its performance.
SUBSIDIARY COMPANIES
The Company's two key subsidiaries have performed well during the year.
The performance of UltraTech Cement Limited during the year was noteworthy. It
achieved a cement sale of 13.72 Mn. tons and clinker sale of 1.33 Mn. tons.
Domestic cement realizations have clocked a healthy growth during the
year.
MANAGEMENT DISCUSSION &
ANALYSIS
OVERVIEW
The Indian economy registered yet another year of excellent growth, heralding
the beginning of a new phase of upswing in the economy. Importantly the
industrial sector continued to display robust growth. Regardless, the year was
fraught with mixed trends for the different sectors in which the Company
operates. While the cement sector achieved one of the highest growth levels in
the recent years, the other businesses faced serious challenges with structural
changes taking place in the global textile trade post MFA regime, fluctuations
in global fibre prices, hardening of input prices and reduced availability of
natural gas.
CONSOLIDATED FINANCIAL PEFORMANCE
The overall performance of the Company has been excellent during the year.
Consolidated Net Turnover grew by 10% from Rs.92920 millions in the previous
year to Rs.101920 millions in FY06. Consolidated Profit After Tax rose by 18%
to Rs.10410 millions.
The Cement business with gains in volumes, realisation and profitability has
been the key driver of revenues and earnings. While the VSF business witnessed
pricing pressure, there was a sharp decline in the profitability of Sponge Iron
business owing to a combination of factors. The subsequent paragraphs aim to
outline the performance of individual business segments and their outlook for
the future.
Performance Review
The VSF business has posted a satisfactory performance amidst a challenging
environment. The period under review witnessed major structural changes in
textile industry world over and in India. At the global level, the Multi Fibre
Arrangement, popularly known as the 'Textiles Quota' regime, stood abolished,
while on the domestic front, the Government reduced the import duty on VSF from
20% to 15% and as also the DEPB benefits. As a result, the first half of the
year witnessed a state of uncertainty. Despite these, the business recorded its
highest ever sales volumes of 242,399 tonnes, a rise of 5%. After witnessing a
slow down, sales volumes picked up post August 2005 on the back of strong
domestic demand and increased direct exports. The Company's strategy of
focusing on promoting export of VSF to growing textile hubs like Pakistan and
Bangladesh paid off as direct exports more than doubled.
Global VSF prices were under pressure due to bumper cotton crop for the second
year in a row. Further, the reduction in import duty and DEPB incentives had a
negative fall out on the realisation. Accordingly, VSF prices remained
depressed for most part of the year except for the last quarter when prices
witnessed a recovery. Average realisations were lower by 7% at Rs.73,786 per
tonne, reflecting the lower prices of cotton and VSF globally. This, coupled
with the increase in the price of caustic soda, a key input, impacted the
margins adversely.
Q4FY06 reflected a bounce back in VSF segment. Production was higher by 2% at
64,606 tonnes. Sales volumes grew by 12% at 60,636 tonnes owing to the rise in
direct and deemed exports. On a sequential basis, realisations recorded a
growth of 6%.
Sector Outlook
The long-term outlook for VSF business remains positive. On the demand front,
global VSF consumption has been growing over the past 2-3 years. The Indian
Textile Industry is projected to be one of the main beneficiaries of quota
abolition with an increased share of global textile exports. However, there
will be increased competitive pressure due to quota abolition as well as
reduction of tariff barriers.
Business outlook
The Company is the market leader in this sector. To capitalise on the growth
opportunities, it is increasing production capacity gradually to 306,950 tonnes
per annum from its current level of 257,325 tonnes, both through brownfield
expansion as well as de-bottlenecking. The expansion is expected to be
completed by FY08. A total capital outlay of Rs.6270 millions towards capacity
expansion and modernisation at its VSF plants has been planned.
Efforts to expand the domestic market through enlargement of application areas
and new product developments are ongoing. The Company is positioning specialty
VSF like Spun Dyed Fibre, Modal, Viscose Plus, etc., at the premium end of the
fibre market. The Company continues with its strategy to focus on the growing
textile hubs of South Asia for direct exports of VSF.
Simultaneously the focus remains on increasing cost competitiveness through
backward integration. The production of paper grade pulp at the newly acquired
St. Anne Nackawic Pulp Mill has commenced. Production of Rayon grade pulp is
expected to begin in the 2nd quarter of FY08. This would augment the captive
supply of quality pulp.
The integrated plantation-cum-pulp plant planned by the Company at Laos is on
track. The Company would be able to source its requirement of quality pulp in
adequate quantities upon the implementation of this project, 7 years from
now.
The demand emanating for VSF, both in India and other South Asian countries
bodes well for the business. On the realisation front too, things appear
positive due to the expected recovery in global cotton prices. The outlook for
the business continues to be good.
Chemicals
Performance Review
The Chemical business, recorded an
improvement in its performance over the previous year. Production of Caustic
soda grew by 2% from 161,966 tonnes in FY05 to 165,509 tonnes in the current
year. Sales volumes at 165,853 tonnes were also higher by 2%. The realisation
of Caustic soda increased in line with international trends, which has led to a
rise of 9% in ECU realisation as compared to the previous year. Revenues at
Rs.3850 millions are up 10% from Rs.3509 millions. Operating margins increased
from 29.6% to 32.5% supported by better realisations, notwithstanding the
increase in the prices of key inputs, viz. salt and coal.
Sector Outlook
The domestic Caustic soda demand is
expected to grow on the back of expected growth in Alumina, which is one of the
major consumers of Caustic soda. Continued growth in other end-use segments
like Fibre, Paper, Pharma and Soaps and Detergent sectors will also contribute
to higher demand growth. Prices, which were higher in the first half of FY06
and have come down gradually, are expected to stabilise at current levels.
Business outlook
The Company is in the process of converting its remaining mercury cell based
capacity into energy efficient membrane cell technology, which will lead to an
improvement in productivity. The Company will continue to focus on optimum
utilisation of the plant capacity.
Cement
Performance Review
The Cement business has posted an
impressive performance, buoyed by the improved business environment. Higher
capacity utilisation, good growth in sales volumes and better realisations
resulted in an improvement in operating margins and higher profitability.
The cement industry clocked despatch growth of 11%. Strong growth in housing,
commercial construction and thrust on infrastructure were the key factors
behind the increased demand. Even more impressive was the recovery in the
Southern Region, which grew by 18% YoY and the double-digit growth in the
Eastern Region for the second consecutive year.
Capacity utilisation was 105% as against 95% in the previous year. Production
at 13.83 million tonnes was up by 11% over FY05. Sales volumes also expanded by
11% from 12.63 million tonnes to 13.99 million tonnes.
The Company grew by 11% in the North and 18% in the East, vis-a-vis the sector
growth of 7% and 11% respectively, thus outperforming the sector in both the
regions. Volumes growth in the South too was strong at 11%. Tightening of the
demand-supply balance in the industry and cost related pressure, primarily on
account of rising input costs and increased road freight, resulted in the
Cement price hike across India. Net realisation moved up 6% at Rs.1,987 per tonne
from Rs.1,874 per tonne during the previous year. This coupled with increased
efficiencies led to higher operating margins at 24.2% in FY06 against 19.7% in
FY05.
The Ready Mix Concrete (RMC) business bettered its performance. The Company
currently has RMC operations in seven cities. Aggregate RMC sales volumes were
higher by 8% at 1.16 millions cubic meters and revenues increased by 19%. In
line with the Company's strategy of growing the RMC business, three new RMC
plants were commissioned during the year.
Strategic marketing initiatives enabled White Cement business to enhance its
market share and fortify its market leadership. Sales volumes were up by 12% as
against 4% growth in the industry. Business efforts of developing and marketing
value added products have started yielding results. Volume growth and an
increased contribution from value added products led to a rise of 33% in
revenues to Rs.2918 millions.
Performance of Cement Subsidiaries
UltraTech Cement Limited including its two subsidiaries Narmada Cement Company
Limited and UltraTech Ceylinco (Private) Limited (collectively referred as
'UltraTech'), and another subsidiary Shree Digvijay Cement Company Limited
(SDCCL), together accounts for 58% of total consolidated cement capacity of 31
million TPA.
UltraTech - Consolidated Financial Performance
UltraTech witnessed an improvement in its performance during the year
reflecting the benefits of various initiatives taken and higher realisations.
Revenues increased by 12% from Rs.2,7010 millions in FY05 to Rs.3,0240 millions
in FY06. UltraTech clocked a net profit of Rs.2251 millions as against a loss
of Rs.534 millions in FY05.
This performance was achieved despite production loss suffered in the first
half of the year on account of flooding at the Company's largest plant located
at Kovayya in Gujarat and the planned shutdown at each of its production lines.
Though overall sales volumes declined by 3% at 15.1 million tonnes, cement
despatches were higher by 6% aided by higher cement exports during the year.
Taking advantage of excellent market conditions in the Middle East, UltraTech
cement exports rose by 66%.
Domestic cement realisations at Rs.1,980@ per tonne were up 13% reflecting an
improved pricing environment. Export realisations of cement were higher by 3%
at Rs.2,454 per tonne in FY06 from Rs.2,385 per tonne in the previous
year.
Operating margins rose significantly from 14.0% to 20.1% on account of higher
realisations and better product mix, notwithstanding cost pressures arising
from increased power and fuel costs. Interest charges fell to Rs.901 millions
from Rs.1093 millions on repayment of high cost debts. Profit before Tax was
Rs.2860 millions, a substantial gain over the previous year.
Birla Cellulosic plans expansion at Kosamba
PM News Bureau
The Gujarat-based Birla Cellulosic, a viscose staple fibre unit of Grasim Limited, will expand its exiting facilities and set up a textile research and application development centre at its plant at Kosamba near Bharuch. The cost of the project is about Rs 2600 millions. The R&D centre is being set up at Kosamba because it has the necessary infrastructure and is also close to Mumbai.
According to company sources, Rs 2000 millions would be invested in putting up
the third VSF manufacturing line at Kosamba to add 35,000 tpa by 2007. In
addition, Rs 300 millions will be invested on setting up a textile research and
application development centre and Rs 300 millions on de-bottlenecking to
increase capacity from the existing 60,000 tpa (175 tpd) to 72,000 tpa (200
tpd) by April 2004. The proposed R&D centre will cater to the entire value
chain under one roof and is slated for completion by December 2004.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.44.17 |
|
UK Pound |
1 |
Rs.85.58 |
|
Euro |
1 |
Rs.58.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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/normal. |
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 |
|