MIRA INFORM REPORT

 

 

 

Report Date :

13.09.2008

 

IDENTIFICATION DETAILS

 

Name :

VIKRAM ISPAT A UNIT OF GRASIM INDUSTRIES LIMITED

 

 

Formerly Known As :

GWALIOR RAYON SILK (WEAVING) COMPANY LIMITED

 

 

Registered Office :

P. O. Birlagram, Nagda – 456331, Madhya Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

25.08.1947

 

 

Com. Reg. No.:

10-410

 

 

CIN No.:

[Company Identification No.]

L17124MP1947PLC000410

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLG00117F

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing and selling of complete range of plant and machinery for viscose staple fibre, viscose fibre yarn, rayon grade pulp and 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

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

 

Registered Office :

P. O. Birlagram, Nagda – 456331, Madhya Pradesh, India

Tel. No.:

91-7366-246760/ 62/ 64/ 66

Fax No.:

91-7366-244114/ 246024

E-Mail :

grsmsfd@vsnl.com

shares@grasim.com

sfdiv.grasimbm@gems.vsnl.net.in

info@grasim.com

shares@adityabirla.com

Website :

http://www.grasim.com

http://www.adityabirla.com

 

 

Corporate Office 1:

91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400021, Maharashtra

Tel. No.:

91-22-22819520

Fax No.:

91-22-22284629

 

 

Corporate Office 2 :

Ahura Centre, 1st Floor, 82 Mahakali Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India

 

 

Administrative Office:

Taple Fiber Division, Century Bhavan, 3rd Floor, Dr. A B Road, Worli, Mumbai – 400030, India

Tel. No.:

91-22-24210182-86

Fax No.:

91-22-24220892

 

 

Factory  :

FIBRE, PULP and 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 and 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. B. V. Bhargava

Designation :

Director

Date of Birth/ Age :

16.04.1936

Date of Appointment :

26.03.1997

Qualifications :

M.Com, LLB

Directorship Company :
  • CRISIL Limited
  • Raymond Limited
  • Supreme Industries Limited
  • J.K. Lakshmi Cements Limited
  • SI Group India Limited
  • ICICI Lombard General Industries Limited
  • National Commodities and Derivatives Exchange Limited
  • Excel Crop Care Limited
  • L & T Infrastructure Finance Company Limited
  • Grasim Bhiwani Textiles Limited

 

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Director

Date of Birth/ Age :

14.06.1967

Date of Appointment :

14.10.1992

Qualifications :

ACA, MBA

Directorship Company :
  • Aditya Birla Nuvo Limited
  • Birla Sun Life Insurance
  • Birla Sun Life AMCLimited
  • Century Textiles & Industries Limited
  • Essel Mining & Industries Limited
  • Hindalco Industries Limited
  • Idea Cellular Limited
  • PSI Data Systems Limited
  • Transworks Information Services Limited
  • UltraTech Cement Limited

 

 

Name :

Mr. M. L. Apte

Designation :

Director

Date of Birth/ Age :

05.10.1932

Date of Appointment :

06.05.1987

Qualifications :

B.A.

Directorship Company :
  • Apte Amalgamation Limited
  • Bajaj Hindustan Limited
  • Kulkarni Power Tools Limited
  • New Phaltan Sugar Works Limited
  • Standard Industries Limited
  • Tata Asset Management Limited
  • The Bombay Burmah Trading Corpn. Limited
  • The Raja Bahadur International Limited
  • Zodiac Clothing Company Limited

 

 

 

 

Name :

Mrs. Rajashree Birla

Designation :

Director

 

 

Name :

Mr. R. C. Bhargava

Designation :

Director

 

 

Name :

Mr. Y. P. Gupta

Designation :

Director

 

 

Name :

Mr. S. B. Mathur

Designation :

Director

 

 

Name :

Mr. Cyril Shroff

Designation :

Director

 

 

Name :

Mr. S. G. Subrahmanyan

Designation :

Director

 

 

Name :

Mr. D. D. Rathi

Designation :

Whole Time Director

 

 

Name :

Mr. Shailendra K. Jain

Designation :

Whole Time Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashok Malu

Designation :

Company Secretary

 

 

Management

 

Staple Fibre and Pulp

Divisions:-

 

Mr. Shailendra K. Jain

Business Director

Mr. S. S. Maru

Senior Executive President, Pulp and Grasilene Divisions, Harihar

Mr. Thomas Varghese

Executive President (Marketing)

Mr. Vijay Kaul

Senior Executive President, Birla Cellulosic Division, Kharach

Mr. S. V. Kulkarni

Executive President, Birla Cellulosic Division, Kharach

 

 

Cement Divisions:-

 

Mr. Saurabh Mishra

Business Head

Mr. O. P. Puranmalka

Group Executive President and Chief Marketing Officer

Mr. S. K. Maheshwari

Senior Executive President and Chief Manufacturing Officer

Mr. L. N. Rawat

Senior Executive President – Rajshree Cement 

Mr. R. M. Gupta

Senior Executive President, Grasim Cement

Mr. D. R. Dhariwal

President, Birla White Cement

Mr. H. N. Singh

Executive President

Mr. D. P. Somani

Executive President, Vikram Cement and Aditya Cement

 

 

Chemical Division:-

 

Mr. G. K. Tulsian

Executive President

Mr. Sunil Kulwal

Executive President

 

 

Textile Divisions:-

 

Mr. Vikram D. Rao

Group Executive President (Textiles)

Mr. S. Krishnamoorthy

Chief Operating Officer

 

 

Corporate Finance Division

 

Mr. D.D. Rathi

Whole Time Director and CFO

Mr. Sanjeev Bafha

Dy. Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 31.03.2008)

Names of Shareholders

No. of Shares

Percentage of Holding

 

 

 

Promoters and Persons Group

23089160

25.20

Mutual Funds and Axis

7992922

8.70

FIs and Banks

10760961

11.70

FIIs

20380173

22.20

GDRs

10618934

11.60

Corporates

4090507

4.50

NRIs/OCBs

3443267

3.80

Indian Public

11298304

12.30

 

 

 

Total

91674228

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 and 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.

 

 

Products:

Item Code No.

Product Description

550410-00

Staple Fibre

252329-01

Grey Portland Cement

720310-00

Sponge Iron

 

 

Exports:

 

Products :
  • Machinery and Equipment
  • Viscose Staple Fibre
  • Sulphuric Acid
  • Carbon-bi-Sulphide and Alum Plants

Countries :
  • Cuba
  • Indonesia
  • Kenya
  • Korea
  • Thailand

 

 

Imports :

 

Countries :
  • Germany
  • UK

 

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

1.Viscose Staple Fibre/Polynosic HWM/Hi-Performance/Speciality Fibre

Tonnes

 

 

 

·         At Nagda, Mavoor, Harihar and

Kharach

 

393500

333975

279901

2. Sulphuric Acid (Captive and Intermediate Product)

Tonnes

 

 

 

·         At Nagda, Mavoor, Harihar and

Kharach

 

396070

222295

231216

3.Carbon-di-Sulphide (Captive and Intermediate Products)

Tonnes

 

 

 

·         At Nagda, Mavoor, Harihar and

     Kharach

 

78865

52610

50109

4. Rayon Grade Pulp (At Mavoor and Harihar)

Tonnes

72000

70000

73648

5. Rayon Grade Caustic Soda

Tonnes

258000

258000

188537

6. Stable Beaching Powder

Tonnes

45000

15000

21583

7. Man-Made Fibre Fabrics (At Gwalior and Bhiwani)

Mtr.

(in 000’s)

Looms

Looms

8413

8. Man-Made Fibre Yarn (At Bhiwani and Malapur)

KG.

(in 000’S)

25000 Spindles

8832 Spindles

5382

9. Cement

(At Jawad, Raipur, Shambhupura, Malkhed and Reddipalayam)

Tonnes

19654290

16750000

15363809

10. Ready Mix Xoncrete

Cu.Mtr.

-

5593056

1953323

11White Cement

       (At Khariakhangar)

Tonnes

475000

475000

407882

12 Putty

Tonnes

-

200000

115868

13. Industrial Machinery

Tonnes

25000

15950

##

14. Poly Aluminium Chloride

Tonnes

66000

36000

31405

15. Chloro Sulphonic Acid

Tonnes

49500

16500

17713

16. Sponge Iron

Tonnes

2500000

900000

562000

 

Note:

 

 

GENERAL INFORMATION

 

Suppliers:
  • G K Electrical Services
  • Harihar Industries
  • Steive Engineering
  • Unity Enterprises
  • G K Enterprises
  • HY-TTUF Steels Private Limited

 

 

No. of Employees :

16648

 

 

Bankers :
  • State Bank of India, Bahrain
  • EXIM Bank, USA
  • Hongkong Bank, London
  • IDBI
  • ICICI
  • Mashreq Bank, Dubai
  • Standard Chartered Grindlays Bank, Dubai
  • British Bank of Middle East, Dubai

 

 

 

Facilities :

Secured Loans

 

As on 31.03.2007

Rs. in Millions

Non-Convertible Debentures [Note 1]

700.000

Loans and advances from Banks:

 

-Working Capital Borrowings from Banks secured by hypothecation of stocks and book debts of the Company

3483.000

-Documentary Bills discounted against Demand/ Usance Bills under Letter of Credit

1618.300

-Rupee Term Loans [Note 2 (a)]

4327.00

-Foreign Currency Loans [Note 3]

12985.800

Other Loans:

 

Rupee Term Loan [Note 2 (b)]

-

Deferred Sales Tax Loans secured by first available charge on the assets of Cement Units I & II at Jawad [Subject to the charge of the Non-convertible Debentures and Loans referred in Note 1& 3 (a) below}

-

 

Notes: 

1. Non –Convertible Debentures

 

A. Non-Convertible Debentures are secured by first pari passu charge on the Fixed assets, both present and future, of the specified divisions.

 

a)       12.60% - XXIII Series Non-Convertible Debentures (redeemable at par in three annual installments of 33%, 33% and 34% respectively of the face value of the debentures, commenced from 17.08.2005) are secured on a plot of land situated in Maharashtra and on the fixed assets of the divisions as mentioned in Note 5 below.

-

b)       8.35% - XXXI Series Non-Convertible Debentures (redeemable at par on 05.07.2009, with put and call option on 05.07.2007)

500.000

ii) 8.20%-XXXII Series Non-Convertible Debentures (redeemable at par on 20.07.2009, with put and call option on 20.07.2007)

200.000

iii) Floating Rate (14% minus CMT1 per annum)- XXXIII Series Non-Convertible Debentures (redeemable at par on 13.08.2007)

-

iv) 7.55% - XXXIV Series Non-Convertible Debentures (redeemable at par on 20.08.2007) and

-

v) 6.75% - XXXV Series Non-Convertible Debentures (redeemable at par 09.11.2009, with put and call option on 09.11.2007)

-

vi) 6.08% - XXXVI Series Non-Convertible Debentures (redeemable at par on 11.01.2010, with put and call option on 11.01.2008) are secured on the fixed assets of the divisions as mentioned in Note 4 below.

-

B. MIBOR Linked NCDs (Redeemable at par on 12.06.2007 with daily put and call option)

-

2 a) Rupee Term Loans from Banks are secured by exclusive charge on certain fixed assets of

 

i) Fibre Divisions at Nagda, Harihar and Kharach

149.600

ii) Fibre/ Pulp Divisions at Nagda and Harihar

1177.400

 Rupee Term Loan from Bank to be secured by first pari passu charge on fixed assets, both present and future, of one or more divisions of the Company

3000.000 

b) Rupee Term Loan is secured by first charge on the movable fixed assets, both present and future, of Textile Divisions at Bhiwani and Malanpur and proposed to be further secured on the immovable fixed assets, both present and future, of the said divisions.

-

3. a) Foreign Currency Loans are secured by first pari passu charge on the fixed assets, both present and future, of the divisions as mentioned in Note 5 Below:

12706.600

    b)  Foreign Currency Loans to be secured by first pari passu charge on the fixed assets, both present and future, of one or more divisions of the Company

279.200

4. Buyer’s Credit to be secured by exclusive charge on certain fixed assets of one or more divisions of the Company

389.900 

5. Secured by charge on fixed assets, both present and future, of Grasim Cement Division at Raipur, Chemical Division at Nagda, Cement Division-South at Reddipalayam, Aditya Cement Division at Shambhupura, Vikram Cement Division at Jawad, Rajashree Cement Division at Malkhed, White Cement Division at Kharia Khangar, Grasim Cement Division (formerly, Birla Super Cement Division) at Hotgi, Grasim Cement Division (formerly, Birla Plus Cement Division) at Bathinda, Birla Super Bulk Terminal Division at Doddaballapur, Vikram Ispat Division at Salav, Fibre & Pulp Divisions at Harihar, Staple Fibre Division at Nagda, Engineering & Development Division at Nagda and Staple Fibre Division at Kharach [excluding certain specific fixed assets of Fibre / Pulp Divisions at Nagda, Harihar & Kharach which are exclusively charged for the loans mentioned in Note 2 (a) above].

 

 

Unsecured Loans:

 

As on 31.03.2007

Rs. in Millions

From Banks:

 

-Buyer’s Import Credit

1908.700

-Documentary Bills Discounted Against usance bills

-

Other Loans and Advances:

 

-From Banks:

 

-Foreign Currency Loans

3182.500

-Export Packing Credit

40.100

-From Others:

 

-Deferred Sales Tax Loan

3383.400

Total

8514.700

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

G. P. Kapadia and Company

Chartered Accountants

Address :

Mumbai, Maharashtra

 

 

Membership:
  • Confederation of Indian Industry

 

 

Associates:
  • Aditya Birla Science and Technology Company Limited

became associate w.e.f. 28th March, 2006

 

 

Subsidiaries
  • Sun God Trading and Investment Limited
  • Samruddhi Swastik Trading and Investment Limited
  • Shree Digvijay Cement Company Limited
  • UltraTech Cement Limited
  • Narmada Cement Company Limited
  • Dakshin Cement Limited
  • UltraTech Ceylinco (Private) Limited
  • Harish Cement Limited

 

 

Joint Venture :

  • Birla Tata AT and T Limited
  • Idea Cellular Limited
  • AV Cell Inc, Canada
  • TANFAC Industries Limited, (ceased to be a joint venture w.e.f. 3rd February, 2006)
  • A V Nackawic Inc., Canada, (became a joint venture w.e.f. 4th  October, 2005)  Birla Jingwei Fibres Company Limited (became a joint venture w.e.f. 25.09.2006)
  • Birla Lao Pulp and Plantation Company Limited (became joint venture w.e.f. 30.06.2006

 

 

CAPITAL STRUCTURE

 

Authorized Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

95000000

Equity Shares

Rs.10/- each

Rs.950.000 millions

 

Redeemable Cumulative Preference Shares

Rs.100/- each

 

150000

15%    “A” Series

 

Rs.15.000 millions

100000

8.57% “B” Series

 

Rs.10.000 millions

300000

9.30% “C” Series

 

Rs.30.000 millions

 

 

 

 

 

TOTAL

 

Rs.1005.000 millions

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

91673854

Equity Shares

(Of the above, 29532500 Equity Shares were issued as fully paid up Bonus Shares by way of Capitalization of Share Premium and Reserves and 19359864 Equity Shares of Rs. 10.00 each issued as fully paid up for acquiring the cement business pursuant to Scheme of Arrangement without payment being received in cash

Rs.10/- each

Rs.916.700 millions

 

 

 

 

 

Share Capital Suspense:

 

 

15651

Equity Shares to be issued as fully paid up pursuant to acquiring of cement business of Aditya Birla Nuvo Limited under Scheme of Arrangement without payment being received in cash

Rs.10/- each

Rs.0.200 million

 

Total

 

Rs.916.900 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

916.900

916.900

916.900

2] Share Application Money

49.000

0.000

0.000

3] Reserves & Surplus

80441.200

61383.500

48903.900

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

81407.100

62300.400

49820.800
 

 

 

 

LOAN FUNDS

 

 

 

1] Secured Loans

23504.000

22910.000

13310.800

2] Unsecured Loans

8514.700

6605.600

5862.700

3] Docu. Bills Disc. With Banks

0.000

0.000

623.200
TOTAL BORROWING

32018.700

29515.600

19796.700

DEFERRED TAX LIABILITIES

6068.700

5825.500

5843.800
 

 

 

 
TOTAL

119494.500

97641.500

75461.300
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

40235.100

33904.400

30046.300
Capital work-in-progress

30263.100

11923.500

2936.400
 

 

 

 
INVESTMENT

40807.900

42747.000

34817.100
FIXED ASSETS HELD FOR DISPOSAL

41.400

143.300

127.600
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
9784.400
8241.400
7507.300
 
Sundry Debtors
7119.800
5764.800
4134.500
 
Cash & Bank Balances
1274.700
1163.800
1555.800
 
Loans & Advances
11404.900
8246.900
7055.400
 
Interest accrued on Investment
7.000
7.000
14.600
Total Current Assets
29590.800
23423.900
20267.600
Less : CURRENT LIABILITIES & PROVISIONS
 
 
 
 
Current Liabilities
16041.700
12668.600
9691.500
 
Provisions
5402.100
1832.000
3042.200
Total Current Liabilities
21443.800
14500.600
12733.700
Net Current Assets
8147.000
8923.300
7533.900
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

119494.500

97641.500

75461.300

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006
Sales Turnover

103808.200

86035.900

66526.100
Other Income

2120.700

2653.200

1764.600
Total Income

105928.900

88689.100

68290.700
 

 

 

 
Profit/ (Loss) Before Tax

29642.200

22263.600

12060.300
Provision for Taxation

9166.500

6905.500

3428.200
Profit/ (Loss) After Tax

20475.700

15358.100

8632.100
 

 

 

 
Earnings in Foreign Currency:

 

 

 

 

Export of Goods-On FOB basis

3778.100

2729.000

1941.500
 
Technical Know-how and Service charges
3.800
4.400

3.600
 
Interest and Dividend
85.800
72.700

56.800
 
Others
0.900
0.700

1.100

Total Earnings

3868.600

2806.800

2003.000

 

 

 

 
Expenditures:

 

 

 
 
Raw Materials Consumed
28289.300
22193.200

18226.900
 
Manufacturing Expenses
21968.500
17443.300

15803.400
 
Purchases of Finished goods and Other Products
974.000
3211.600

2401.500
 
Payment to and Provisions for Employees
5500.700
4594.000

4076.400
 
Selling, Distribution, Administration and Other Expenses
14951.500
15056.900

11813.300
 
Interest
1070.000
1118.400

1033.800
 
Depreciation
3532.700
3179.100

2916.400
 
Surplus on pre-payment of sales tax loan
0.000
0.000

(41.300)
 
Write back of provision for diminution
0.000
(371.000)

0.000
 

76286.700

66425.500

56230.400

 

 

 

 

 

 

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2008

Type

 

 

1st Quarter

Sales Turnover

 

 

25923.300

Other Income

 

 

822.400

Total Income

 

 

26745.700

Total Expenditure

 

 

18403.100

Operating Profit

 

 

8352.600

Interest

 

 

304.600

Gross Profit

 

 

8038.000

Depreciation

 

 

1050.000

Tax

 

 

1318.700

Reported PAT

 

 

5141.900

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Debt Equity Ratio

0.43

0.44

0.43

Long Term Debt Equity Ratio

0.35

0.37

0.36

Current Ratio

0.90

0.94

0.93

TURNOVER RATIOS

 

 

 

Fixed Assets

1.62

1.49

1.26

Inventory

12.90

12.20

10.64

Debtors

18.05

19.41

16.26

Interest Cover Ratio

27.83

20.91

13.39

Operating Profit Margin (%)

28.65

27.65

20.97

Profit Before Interest and Tax Margin (%)

25.61

24.34

17.13

Cash Profit Margin (%)

20.28

19.30

15.18

Adjusted Net Profit Margin (%)

17.24

15.98

11.35

Return on Capital Employed (%)

29.04

28.98

19.61

Return on Net Worth (%)

27.93

27.42

18.56

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

An arm of Aditya Birla Group is aggressively known as the company. It was incorporated in 25th August 1947, exactly 10 days after India's independence and it was started as textile manufacturer in the year 1948. The company ranks among India's largest private sector companies. The Grasim's businesses comprise Viscose Staple Fibre (VSF), Cement (grey and white), Sponge Iron, Chemicals and Textiles. VSF and Cement are core business of the company. 

 
The company started its fabrics Production at Gwalior with imported man-made rayon in the year 1950. The VSF production of the company was commenced at Nagda (Madhya Pradesh) in 1954, now the company is world leader in VSF. Grasim manufactures VSF at its units located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka, with a combined installed capacity of 270,100 tpa. In 1962, incepted Engineering Division for plant and machinery for VSF. During the year 1963 the company composite the textile mill at Bhiwani (Haryana). The Rayon production was commenced in the year 1968 at Mavoor, Kerala. Nagda commenced the country's second largest rayon grade caustic soda unit in 1972 and started production of caustic soda for an important raw material in VSF production, also the VSF and Pulp plant at Harihar (Karnataka) based on in-house engineering and know-how. In the year 1977, the company's third rayon plant was goes into production at Harihar, Karnataka. During 1985, Grasim's first cement plant goes on stream at Jawad (Madhya Pradesh), which was named under Vikram Cement and subsequently in the year 1987, the Vikram Cement's second production line was bespoke and also added its third production line in 1991, since then it has grown to become a cement major. The company's cement operations today span the length and breadth India, with 11 composite plants, 7 split grinding units, 4 bulk terminals and 20 ready-mix concrete plants and all units are ISO 9001 for Quality Systems and ISO 14001 for Environment Management Systems. 

 
Grasim sets up Birla International Marketing Corporation (BIMC), a merchant exporter during the period of 1992 and in the same year the company issued Global Depositary Receipt (GDR) for US$ 90 million. The company ventured into Sponge iron segment, the Vikram Ispat, India's third largest gas-based sponge iron plant was commissioned at Salav in Alibag, Maharashtra in the year 1993 and Birla Consultancy and Software Services was sets up in the year, to provide IT consulting services and for software development. In 1994, the company made second issue of GDRs for US $100 million. During the period of 1995, the Grasim established its two Greenfield Cement plants namely Grasim Cement at Rawan (Chattisgarh) and Aditya Cement at Shambhupura (Rajasthan), the Vikram Woollens Spinning unit at Malanpur (Madhya Pradesh) was sets up in the equivalent year. The first phase of the company's fourth VSF plant was made to order in 1996 at Kharach (Gujarat). During the year 1998, Grasim acquired the Atholville Pulp Mill, the Canada Company; it was the first acquisition in overseas. In the same year, the company acquired Dharani Cements Ltd and Shree Digvijay Cements Limited, Grasim acquired the cement business of Group Company, Indian Rayon and Industries Limited (IRIL) was transferred to Grasim in a corporate restructuring exercise. The viscose staple fibre (VSF) and rayon grade pulp units at Mavoor are closed down owing to lack of raw material in the year 1999. 

 
The Lawson Competency Centre was activated as a division of Birla Consultancy and Software Services, the software arm of Grasim in the year 2000, followed a tie up with Lawson Software (USA), among Fortune's top five private software companies. Under the cement business, the four Ready-Mix Concrete plants commissioned in the year 2001 with an aggregate capacity of 1 million cubic meters. The company's consultancy and software services spun off; becomes separate entity, Birla Technologies Limited in 2001 and Grasim divests its holding in Birla Technologies to PSI Data Systems. VSF Research & Application Centre was established in the year 2002 at Kharach in Gujarat. The company divests its Gwalior textiles unit in the year 2002 and the Textile operations were consolidated at Bhiwani to manufacture Grasim and Graviera brands. 

 
During the year 2003 Grasim's Chemical Division received the SA 8000 (Social Accountability) and OHSAS 18001 certifications and in 2004, for the recognition of its social accountability initiatives the Staple Fibre Division and Engineering & Development Division of Grasim, Nagda received SA 8000:2001 certification from SAI. During the year 2004, the company completed the implementation process to de-merge the cement business of L&T and made open offer by Grasim, with the latter acquiring controlling stake in the newly formed company Ultra Tech. The company acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc in the year 2005 along with Thai Rayon and PT Indo Bharat Rayon. Grasim bagged Environmental and Ecological Gold Award by Greenland Society and Golden Peacock Eco-Innovation Award by IOD in the year 2005. In the year 2006, Grasim Industries Limited, India; Thai Rayon Public Company Limited, Thailand and P.T. Indo Bharat Rayon, Indonesia formed a JV with Hubei Jing Wei Chemical Fibre Company, China, for VSF and also the chlor alkali and chlorine derivatives businesses of Grasim, Aditya Birla Nuvo and Bihar Caustic become a single SBU. Received the Greentech Environmental Excellence Award by Greentech Foundation in 2006. The company awarded the IMC Ramakrishna Bajaj National Quality Special Award for performance excellence 2007 in the manufacturing category.  
 
Some facts on the company embrace, Grasim in Aditya Birla Group is the world's largest producer of VSF, the 11th largest cement producer in the world and the seventh largest in Asia, Largest merchant producer of sponge iron, Second largest producer of caustic soda in India and the Grasim and Graviera range of fabrics signify the 'power of fashion'. 

 

 

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 and 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.

  

 

TRADE REFERENCE:

 

·         Fine Polycolloids Private Limited

·         Sankalp Chemical, Mumbai

·         VRW Refractories

·         Bright Star Industries

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

OVERVIEW: 


The Indian economy recorded yet another year of robust growth, in FY08. The last three years have proved to be one of the best phases for the economy, with growth averaging above 9%. During the latter half of the last fiscal, however, there has been a slowdown in the growth momentum, partly contributed by the deteriorating global economic environment and uncertainty in global financial markets. Nevertheless, India is likely to maintain a high level of growth rate, given the uptrend in the saving and investment rate in the last few years. The Company has benefited from the strength in the economy. Key businesses of the Company, Cement and Viscose Staple Fibre, have performed well during the year, even as they faced the challenge of managing rising input costs as global commodity prices, viz. pulp, oil, coal, etc. touched new highs.

 

BUSINESS PERFORMANCE REVIEW: 

 

VISCOSE STAPLE FIBRE (VSF)


FY 08 has been a good year for VSF business with all-round improvement in production, sales and profitability. A strong global demand for cellulosic fibres led to higher volumes and significant increase in realisations. On the input side, the pulp prices continued to rise, albeit at a slower pace. Sulphur which is a major component of the cost witnessed increase in prices to unprecedented levels.

 

Though the year as a whole was good, the last quarter witnessed a reversal of trend. Several adverse macro economic factors like US recession, strengthening of Indian rupee, slowdown of yarn exports from India to Turkey, Brazil etc. led to a drop in the demand for VSF in the last quarter. Coupled with high inventory levels in the value chain, it led to a drop in VSF prices.

 

In this rapidly changing environment, the business averaged a production growth of 13% and realization increase of 21%. The operating margins grew from 31% to 37% during the year.

 


SECTOR OUTLOOK: 

 

The long-term outlook for the VSF business remains positive in line with the overall textiles outlook. In the short term, both demand and realisations are expected to remain subdued. Margins may remain under stress and are likely to see a further decline in the short to medium term due to the impact of increasing input costs, coupled with softening of VSF prices.

 

BUSINESS OUTLOOK: 

 

In line with the weak outlook for sector in short term, the VSF business performance is likely to remainrestrained. Profitability may be impacted due to lower volumes and weak margins.

 

The expansion project at the Kharach unit was commissioned in March 2008, taking the total installed capacity of the Company from 270,100 TPA to 333,975 TPA. The Company is in the process of obtaining requisite approvals for Brownfield expansion at Harihar in Karnatka (31,000 TPA) and Greenfield project at Vilayat in Gujarat (88,000 TPA).

 

The Company has been working towards strengthening its captive pulp supply. Towards this objective, itsstake in AV Cell, the Canadian pulp JV, has been increased from 16% to 45%. Further, the conversion of AV Nackawic facility in Canada, from paper grade pulp to dissolving grade pulp is underway and is expected to be Completed in Q2FY09.

 

The division forayed into VSF consumer products by launching wipes under the brand names KARA and PRIM. These products have been test launched in select markets and the national roll out is planned in FY 09. Your Company’s Research & Application Development Centre at Kharach (Gujarat) continues to nurture the development of new applications and value added products which in time would propel the demand for VSF.

 

CHEMICALS:

 

PERFORMANCE REVIEW

 

The Chemical business recorded an improved performance during the year. Production of caustic soda was at its highest, given the expanded capacity and normal operations. During the previous year, production was affected due to water shortage and shut down of a captive power plant for major repairs. Sales volumes were higher by 36% aided by increased production and higher captive demand from VSF division. The operating margins improved despite a fall in realisations and cost pressure on key inputs, aided by lower power cost and economies of scale.

 

 


SECTOR OUTLOOK: 

 

The high growth anticipated in domestic alumina production will lead to a healthy demand for caustic soda. Prices are expected to remain range bound as new capacities get commissioned.

 

 

BUSINESS OUTLOOK: 

 

With various measures taken for reduction in power consumption and rationalization of manpower, the business is expected to perform well.

 

 

CEMENT:

 

PERFORMANCE REVIEW

 

The Cement business has delivered an encouraging performance. Despite capacity constraints, sales volume grew from 14.52 million tonnes in FY 07 to 15.54 million tonnes in FY08, a growth of 7%. While realisations at Rs.3192 per tonne improved by 11%, the same was inadequate to meet the impact of sharp rise in energy prices and increase in other input costs. Average fuel cost soared by 31% due to increase in prices of imported coal, petcoke and indigenous coal. Operating margins witnessed a nominal reduction from 33.2% in FY07 to 31.9% in the current year. The Company successfully transited the “Birla Plus” brand to “Ultra Tech Cement – The Engineer’s Choice” for a common brand identity across the country. The Ready Mix Concrete (RMC) business expanded its network at a rapid pace across the country. The number of plants increased from 13 at the start of the year to 31. Consequently sales volumes grew by 36% at 1.95 million cubic meters. The White Cement division has recorded yet another year of good performance supported by 8% volume growth against the industry growth of 2%. Wall Care Putty, a value added product, grew by 59%.

 

 

SPONGE IRON:

 

PERFORMANCE REVIEW

 

The Sponge Iron business continued to face shortage of natural gas leading to low capacity utilisations. Production increased by 7% with the use of alternate fuels. Average realisations were higher by 24% given the firm trend in international scrap prices. The impact of higher realisations was partially offset by higher cost of iron ore and use of costly alternate fuels.

 

SECTOR OUTLOOK

 

Given the high growth trajectory of the Indian economy, the demand for steel is expected to remain buoyant. Consequently, sponge iron being an intermediate product will benefit. Scrap prices are on the rise fuelled by a substantial increase in finished steel prices in the global markets. As a result, prices of sponge iron are expected to remain firm.

 

BUSINESS OUTLOOK

 

The Dahej- Dabhol pipeline has been commissioned during the year. Adequate gas is expected to be available as spur pipeline connecting the same to the existing GAIL pipeline is likely to get commissioned in the first half of FY2009. This will enable higher capacity utilisation and cost optimisation, though pricing of gas being uncertain continues to remain a matter of concern.

 

GRASIM BHIWANI TEXTILES LIMITED (GBTL)

 

During the six months of its operation, GBTL, a subsidiary of the Company, incurred a loss of Rs.47.000 Millions, due to increase in raw material and power costs. Depressed export markets further weakened the performance. A thermal power plant of 8 MW is under construction which will lead to a reduction in power cost. GBTL is taking various measures to enhance operational efficiency and better its performance.

 

FINANCIAL RESULTS:

 

The Company has posted an impressive performance during the year. Its turnover increased by 21% at Rs.115520.000 Millions. Net Profit (before extraordinary items) rose appreciably by 33% at Rs.20480.000 Millions. Cement and VSF businesses continued to be the growth drivers.

 

The performance of the VSF business has been encouraging. Sales volumes recorded an increase of 8% at 269,781 tons. Despite the steep rise in input costs, Operating margins were higher due to realisations being up by 21% at Rs.103316 per ton.

 

The Cement business recorded a good performance. Both Production and Sales volumes grew by 7% at 15.36 Mn. tons and 15.54 Mn. tons respectively. The share of blended cement increased from 62% to 68%. Higher volumes and economies of scale contributed to profitability. However, the sharp hike in fuel cost led to lower operating margins. The Company continued its efforts to achieve over 100 percent capacity utilisation to meet the growing demand. RMC (Ready Mix Concrete) volumes expanded by 36%, buoyed by the rapid expansion in RMC network. The White Cement performance too has been good. Production was higher by 12% at 407,882 tons, while Sales volumes extended by 8% at 396,295 tons.

 

The Sponge Iron business posted improved performance. Production at 562,000 tons reflected an increase of 7%. Sales volumes, however, were lower by 2% at 557,187 tons. Realisations expanded by 24% owing to a surge in global scrap prices. The gains on this account were offset by higher prices of iron ore, naptha and propane. The non-availability of adequate quantity of natural gas and its pricing continued to remain an area of concern. The Chemical business put up a moderate performance. Production of caustic soda, which was affected in the corresponding year due to the breakdown of a captive power plant, grew by 38% at 188,537 tons. Sales volumes too moved in tandem, growing by 36% at 187,356 tons. But for the cost pressure on key inputs and fall in realisation, its performance would have been better.

  

 

AWARDS & ACCOLADES

 

The Company’s pursuit of excellence has earned for it national and international honours. Some of the significant accolades received during the year were:

 

 

 

SUBSIDIARY COMPANIES:

 

The performance of Ultra Tech Cement Limited, the Company’s key subsidiary, was encouraging. Domestic Cement sales were higher at 14.25 Mn. tons, an increase of 7%. However, exports of Cement and Clinker were down by 25% from 3.48 Mn. tons to 2.61 Mn. tons. Net Profit was higher by 29% at Rs.10080.000 Millions. During the year under review, the Company has transferred w.e.f. 1st October, 2007, the Company’s textile units at Bhiwani (Haryana), as a going concern, to its separate subsidiary, Grasim Bhiwani Textiles Limited (GBTL). In its first accounting period of six months ended 31st March 2008, GBTL has posted a net loss of Rs.460.000 Millions. Efforts are on to improve the performance of GBTL.

 

The Company has sold its entire holding of 75.800 Millions equity shares representing 53.63% of the capital of Shree Digvijay Cement Company Limited (SDCCL) to Cimpor Inversiones S.A., Spain at Rs.42.50 per share. With the completion of the said sale on 25th March, 2008, SDCCL has ceased to be a subsidiary of the Company. Profit of Rs.1800.000 Millions resulting from the stake sale has been shown in Profit & Loss Account as “Extraordinary item”.

 

The Statement pursuant to Section 212 of the Companies Act, 1956 containing the details of the Company’s subsidiaries is attached.

 

In terms of the approval granted by the Government of India, Ministry of Corporate Affairs, New Delhi u/s 212 (8) of the Companies Act, 1956 vide its letter No. 47/207/2008 - CL- III dated 24th April, 2008, copies of the Balance Sheet, Profit & Loss Account, Reports of the Board and the Auditors of all the Subsidiary Companies have not been attached to the Balance Sheet of the Company as at 31st March, 2008. Pursuant to the said approval, a gist of the financial performance of the Subsidiary Companies is disclosed in this Annual Report. However, the related detailed information of the annual accounts of the Subsidiary Companies will be made available to the holding and subsidiary companies’ investors seeking this information at any point of time. The annual accounts of the Subsidiary Companies will also be kept for inspection by any investor at the Registered Office of the Company and that of the Subsidiary Companies concerned.

 

 

FIXED ASSETS

 

 

WEBSITE DETAILS ATTACHED:

 

THE EMERGING CEMENT MAJOR

 

Subject is a company of the Aditya Birla Group, ranks among India's largest private sector companies, with consolidated net revenues of Rs.141 billion (FY2007).


Starting as a textiles manufacturer in 1948, today subject’s businesses comprise Viscose Staple Fibre (VSF), Cement, Sponge Iron, Chemicals and Textiles — in all of which the company holds a dominant position.

 

In July 2004, subject acquired a majority stake and management control in UltraTech Cement Limited, the de-merged cement business of Larsen & Toubro Limited (L&T). One of the largest of its kind, in the cement sector, this acquisition catapulted the Aditya Birla Group at the top of the league in India. The Group's combined capacity stands raised to 31 million TPA, of which 17.0 million tpa capacity comes from UltraTech and 1.1 million tpa from Shree Digvijay Cement Co. Ltd, another subsidiary of Grasim.

 

Between Grasim and its subsidiaries, the Group has 11 composite plants, seven split grinding units, four bulk terminals — inclusive of one in Sri Lanka and 10 ready-mix concrete plants. Importantly, it gives the Group a strong national presence, with a leadership position in 17 states.

 

Viscose staple fibre


The Aditya Birla Group is the world's largest producer of VSF, commanding a 23 per cent global market share. The company meets India's entire domestic VSF requirements.


Cement


The Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia

 

Sponge iron


It is the largest merchant producer of sponge iron in India.

 

Chemicals
Grasim has India's second largest caustic soda unit.

 

Textiles


Its premium brands, the Grasim and Graviera range of fabrics, have distinctively positioned themselves as 'the power of fashion'.

All of Grasim's units have earned ISO 9002 and 14001 certifications.

 

 

FACTFILE:

 

 

 

 

 

 

 

 

 

PRESS RELEASE:

 

 

 2 September 2008

 

Cement performance for August 2008


The Aditya Birla Group’s cement production for the period April-August 2008 has moved up by 1.11 per cent at 126.16 lakh mt as against 124.77 lakh mt during April-August 2007. Dispatches moved up 1.51 per cent at 125.93 lakh mt in April-August 2008 as against 124.07 lakh mt in the corresponding period last year.

 

Cement production and dispatches for the month of August 2008 stood at 21.19 lakh mt and 21.88 lakh mt, registering a decline of 8.87 per cent and 5.39 per cent over August 2007 respectively.

 

 

1 August 2008

 

Cement performance for July 2008


The Aditya Birla Group’s cement production for the period April-July 2008 has moved up by 3.40 per cent at 104.97 lakh mt as against 101.52 lakh mt during April-July 2007. Dispatches grew by 3.09 per cent at 104.05 lakh mt in April-July 2008 vis-a-vis 100.94 lakh mt in the corresponding period last year.

 

Cement production for the month of July 2008 rose by 7.38 per cent at 25.16 lakh mt. Dispatches are up by 4.40 per cent at 24.56 lakh mt over July 2007.

 

 

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.45.77

UK Pound

1

Rs.80.67

Euro

1

Rs.64.20

 

 

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.

 

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

 

 

 

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