MIRA INFORM REPORT

Report Date :

19.09.2008

IDENTIFICATION DETAILS

Name :	CENTURY PULP AND PAPER – DIVISION OF CENTURY TEXTILE AND INDUSTRIES LIMITED
Registered Office :	Century Bhavan, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	20.10.1987
Com. Reg. No.:	11-163
CIN No.: [Company Identification No.]	L17120MH1897PLC000163
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10668A
Legal Form :	Subject Is A Public Limited Liability Company. The Company’s Shares Are Listed On The Stock Exchanges.
Line of Business :	Manufacturing and Exporting of Cloth, Cotton Yarn, Cotton Yarn/Blended Yarn, Denim Cloth, Viscose Filament Yarn and Viscose Tyre Yarn/ Industrial Yarn/ Rayon Yarn, Tyre Yarn and Fabric, Sulphuric Acid, Carbon-di-Sulphide, Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Salt, Cement, Paper, Rayon and/or Paper Grade Pulp, Bagasse based Paper, Newsprint, Compressed Hydrogen, Spinning Machines and other Equipments, Generated Power, Cut Rose Flowers and Pig Iron.

RATING & COMMENTS

MIRA’s Rating :

Aa

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

Maximum Credit Limit :	USD 42944000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company of B.K. Birla Group, one of the largest industrial houses in the country. Available information indicates high financial responsibility of the company. Trade relations are fair. General financial position is good. Payments are reported as usually correct and as per commitments. The company can be considered good for any normal business dealings.

LOCATIONS

Registered Office :	Century Bhavan, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-24957000
Fax No.:	91-22-24309491 / 24361980
E-Mail :	centextho@centurytext.com atulkedia@centurytext.com
Website :	http://www.centurytext.com www.Centurypaperindia.com
Factory :	· Textile Mills Pandurang Budhkar Marg, Mumbai – 400 025, Maharashtra, India Tel. No. 91-22-24303231 Fax No. 91-22-24304144/24305473 Gram. “centextile” Mumabai · Century Rayon Rayon, Tyre Cord & Chemical Plants, Murbad Road, Kalyan – 421 103, Maharashtra, India · Cenray Minerals and Chemicals Nawa Nagna, Jamnagar – 361 007, Gujarat, India · Century Cement P. O. Baikunth – 493 116, Raipur (Chatisgarh), India · Maihar Cement Units I & II P. O. Sarlanagar – 485 772, Maihar District, Satna, Madhya Pradesh, India · Manikgarh Cement P. O. Gadchandur – 442 908, P.O. Chandrapur, Maharashtra, India · Century Pulp & Paper Ghanshyamdham, P. O. Lalkua – 262 402, District Nainital, Uttar Pradesh · Century Yarn & Century Denim 100% Export Oriented Unit Satrati, Agra-Mumbai Road, Tehsil – Kasrawad, District Khargone –451 660, Madhya Pradesh, India Tel. No. 91-7285-232040/265277 Fax No. 91-7285-265244 Gram. “centextile” Mumbai

DIRECTORS

Name :	Mr. S. K. Birla
Designation :	Chairman
Other Directorship:	1. Birla Brothers Private Limited 2. Birla Estern Limited 3. Birla VXL Limited 4. Dormeuil – Birla VXL Limited 5. Mysore Cements Limited 6. Navin Investments Limited 7. Pilani Investment Limited 8. Industries Corporation Limited Sidharth Soya Products Limited
Date of Appointment :	04.06.1964
Name :	Mr. B. K. Birla
Designation :	Chairman
Other Directorship:	1. B. K. Birla Foundation 2. Century Enka Limited 3. Jay Shree Tea & Industries Limited 4. Kesoram Industries Limited Pilani Investment & Industries Corporation Limited
Date of Appointment :	23.05.1973
Name :	Mr. P. K. Daga
Designation :	Director
Other Directorship:	1. Govind Sugal mills Limited 2. Deepak Spinners Limited 3. Longview Tea Company Limited 4. Deepak Gears Limited Continental Profiles Limited
Date of Appointment :	04.06.1963
Name :	Mr. E. B. Desai
Designation :	Director
Experience :	1. Birla Global Finance Limited 2. Bekaert Industries PrivateLimited 3. Dolphin Fisheries & Trading Private Limited 4. Hercules Hoists Limited 5. Hindalco Industries Limited 6. Ispat Metallics India Limited 7. Matsushita Lakhanpal Battery India Limited 8. New Age International Private Limited 9. National Panasonic India Private Limited 10. Prudential ICICI Trust Limited 11. Siltap Chemicals Limited Widia (India) Limited
Date of Appointment :	05.05.1970
Name :	Mr. Privanda Birla
Designation :	Director
Other Directorship:	1. Birla Brothers Private Limited 2. Birla Corporation Limited 3. Birla Financial Corporation Limited 4. Birla Ericsson Optical Limited 5. Hindustan Gum & Chemicals Limited 6. Pilani Investment & Industries 7. Corporation Limited 8. Universal Cables Limited 9. Vindhya Telelinks Limited 10. The Indian Smelting & Refining Company Limited 11. Punjab Produce Holdings Limited 12. Mazbat Properties Private Limited Optic Fibre Goa Limited
Date of Appointment :	25.01.2001
Name:	Mr. Arvind C. Dalal
Designation:	Director
Name:	Mr. C. K. Birla
Designation:	Director
Name:	Mr. H. Narayanan
Designation:	Director ( LIC Representatives)
Name:	Mr. Privanda Birla
Designation:	Director
Name:	Mr. B. L. Jain
Designation:	Whole Time Director
Name:	Mr. Kumar Mangalam Birla
Designation:	Director
Name:	Mr. Amal Ganguli
Designation:	Director
Other Personnel:
Name:	Mr. D. K. Agrawal
Designation:	Company Secretary
Management:
TEXTILE MILLS, CENTURY YARN AND CENTURY DENIM
Name:	Mr. R. K. Dalmia
Designation:	President
Name:	Mr. D. K. Agrawal
Designation:	Executive President (Corporate Finance) & Secretary
Name:	Mr. I. C. Surana
Designation:	Joint President (Finance)
Name:	Mr. P. M. Nevatia
Designation:	Joint President (Works)
Name:	Mr. U. C. Garg
Designation:	Joint President (Purchase & Projects)
Name:	Mr. R. C. Panwar
Designation:	Vice President (Marketing)
Name:	Mr. S. R. Makharia
Designation:	Vice President (Production)
CENTURY RAYON, TYRECORD AND CHEMICALS
Name:	Mr. M. C. Mehta
Designation:	President
Name:	Mr. O. R. Chitlange
Designation:	Joint President (Finance) (Rayon and Shipping)
Name:	Mr. R. Lalwani
Designation:	Joint President (Commercial)
Name:	Mr. S. M. Sanklecha
Designation:	Senior Vice President (Purchase)
Name:	Mr. H. G. Uttamchandani
Designation:	Senior Vice President (Rayon and Auxiliaries)
Name:	Mr. R. K. Tandon
Designation:	Vice President (Delhi Office)
Name:	Mr. S K Mital
Designation:	Vice President (Engineering and Services)
Name:	Mr. Sudhir A Luthra
Designation:	Vice President (Chemicals)
Name:	Mr. Subodh Dave
Designation:	Vice President (Rayon)
Name:	Mr. Anil Sancheti
Designation:	Vice President (Tyrecord and CSY)
CENTURY, MAIHAR AND MANIKGARH CEMENT
Name:	Mr. B. L. Jain
Designation:	Senior President
CENTURY CEMENT
Name:	Mr. B. L. Kedia
Designation:	Executive President (Plant)
Name:	Mr. S. K. Jain
Designation:	Joint President (Finance)
Name:	Mr. M. C. Gupta
Designation:	Executive President (Works)
Name:	Mr. P. C. Jain
Designation:	Senior Vice President (Mines)
Name:	Mr. S. L. Agarwal
Designation:	Senior Vice President (Commercial)
Name:	Mr. Alok Patni
Designation:	Senior Vice President (Mechanical)
Name:	Mr. S. K. Sultania
Designation:	Senior Vice President (Marketing)
Name:	Mr. N M Singhvi
Designation:	Vice President (Commercial)
Name:	Mr. A H Singhania
Designation:	Vice President (Mechanical)
MAIHAR CEMENT (UNIT I)
Name:	Mr. Kamal Kishore
Designation:	Executive President (Co-ordination)
Name:	Mr. R S Doshi
Designation:	Joint President (Finance)
Name:	Mr. R K Vaishnavi
Designation:	Senior Vice President (Plant)
Name:	Mr. P M Intodia
Designation:	Senior Vice President (Marketing)
Name:	Mr. Vijay Kumar
Designation:	Vice President (Process and Quality Control)
Name:	Mr. A K Lodha
Designation:	Vice President (Marketing)
Name:	Mr. M K Jain
Designation:	Vice President (Mechanical)
MAIHAR CEMENT (UNIT II)
Name:	Mr. B. P. Jain
Designation:	Executive President (Plant)
Name:	Mr. Rakesh Sharma
Designation:	Senior Vice President (Personnel & Administration)
Name:	Mr. V K Bhandari
Designation:	Joint President (Commercial)
Name:	Mr. B M Singh
Designation:	Senior Vice President (Projects)
Name:	Mr. S K Tewari
Designation:	Vice President (Mines)
Name:	Mr. G S Pandey
Designation:	Vice President (Market Development)
Name:	Mr. Arvind Kumar Jain
Designation:	Vice President (Mechanical)
MANIKGARH CEMENT
Name:	Mr. S. S. Sharma
Designation:	Executive President (Co-ordination)
Name:	Mr. P. S. Bakshi
Designation:	Joint President (Plant)
Name:	Mr. S. K. Mandelia
Designation:	Senior Vice President (Commercial & Administration)
Name:	Mr. N. B. Singh
Designation:	Senior Vice President (Process & Quality Control)
Name:	Mr. P. R. Sundaresan
Designation:	Vice President (Electrical)
Name:	Mr. A. D. Karwa
Designation:	Senior Vice President (Commercial)
Name:	Mr. R K Udge
Designation:	Vice President (Mines)
Name:	Mr. A K Panja
Designation:	Vice President (Marketing)
CENTURY SHIPPING
Name:	Mr. S. K. Sood
Designation:	Executive President
Name:	Mr. V. K. Bemby
Designation:	Vice President (Technical)
CENTURY PULP AND PAPER
Name:	Mr. R. L. Lakhotia
Designation:	President
Name:	Mr. J. K. Mandelia
Designation:	Senior Vice President (Works)
Name:	Mr. Dilip Chandrana
Designation:	Vice President (Technical)
Name:	Mr. R K Sharma
Designation:	Vice President (Electrical and Instrumentation)
Name:	Mr. R C Maheshwari
Designation:	Vice President (Utilities)
CENRAY MINERALS AND CHEMICALS
Name:	Mr. M. M. Sand
Designation:	Vice President (Salt Works)
NEW PROJECTS
Name:	Mr. A K Mukherjee
Designation:	Vice President (Projects)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2007

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group 2
(1) Indian
(a) Individuals / Hindu undivided family	17940	0.02
(b)Bodies Corporate	38614780	41.78
(2) Foreign
(a) Bodies Corporate	365820	0.40
(B) Public Shareholding 3
(1) Institutions
(a) Mutual Funds / UTI	7651797	8.28
(b) Financial Institutions / Banks	3475229	3.76
© Central Government / State Government(s)	2580	0.000
(e) Insurance Companies	2427871	2.63
(f) Foreign Institutional Investors	11242156	12.17
(2) Non – Institutions
(a) Bodies Corporate	7804934	8.45
(b) Individuals – i.Individual shareholders holding nominal share capital up to Rs.0.100 million ii. Individual shareholders holding nominal share capital excess of Rs.0.100 million	15870460 3634979	17.17 3.93
© Any Other (specify)
i. Clearing Member	665793	0.72
iii. Non Resident Indians (repat)	575931	0.62
iv. Non Resident Indians (Non Repat)	60970	0.07
© Shares held by custodians and against which depository receipts have been issued	634440	0.68
Grand Total	52947637	100.000

BUSINESS DETAILS

Line of Business :

Manufacturing and Exporting of Cloth, Cotton Yarn, Cotton Yarn/Blended Yarn, Denim Cloth, Viscose Filament Yarn and Viscose Tyre Yarn/ Industrial Yarn/ Rayon Yarn, Tyre Yarn and Fabric, Sulphuric Acid, Carbon-di-Sulphide, Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Salt, Cement, Paper, Rayon and/or Paper Grade Pulp, Bagasse based Paper, Newsprint, Compressed Hydrogen, Spinning Machines and other Equipments, Generated Power, Cut Rose Flowers and Pig Iron.

GENERAL INFORMATION

No. of Employees :	12,601
Bankers :	@ State Bank of India Madame Cama Road, Mumbai – 400 021, @ Central Bank of India 13. Bank of India

Banking Relations :	Good
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	Mumbai, Maharashtra, India
Associates/Subsidiaries :	@ Pilani Investment and Industries Corporation Limited @ Kesoram Industries Limited @ Century Enka Limited @ Jayshree Tea and Industries Limited @ Mangalam Cement Limited @ Mangalam Timber Products Limited @ Birla Century Finance Limited @ Centak Chemicals Limited @ Industry House Limited @ Birla Consultants Limited @ Phil Textile Mills Inc., Republic of Philippines @ Birla International Limited @ Vasavadatta Services Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
14,80,00,000	Equity Shares	Rs. 10/- each	Rs.1480.000 millions
1,00,00,000	Redeemable Cumulative Non-convertible Preference Shares	Rs. 100/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
93040000	Equity Shares	Rs.10/- each	Rs. 930.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		930.400	930.400	930.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12108.600	9805.600	7566.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13039.000	10736.000	8496.900
LOAN FUNDS
1] Secured Loans		13413.900	9298.700	6967.200
2] Unsecured Loans		753.900	3705.100	2333.900
TOTAL BORROWING		14167.800	13003.800	9301.100
DEFERRED TAX LIABILITIES		0.000	0.000	2771.800
TOTAL		27206.800	23739.800	20569.800
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17142.800	17264.800	13946.000
Capital work-in-progress		6271.400	1233.000	1040.800
INVESTMENT		277.000	159.400	159.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6128.800	4743.700	4909.300
	Sundry Debtors	1649.100	1969.000	1682.800
	Cash & Bank Balances	474.600	1393.100	383.500
	Other Current Assets	0.000	0.000	44.100
	Loans & Advances	5075.300	3693.100	3136.100
Total Current Assets		13327.800	11797.700	10155.800
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	8846.100	7151.00	3740.900
	Provisions	2781.200	1761.700	1220.900
Total Current Liabilities		11627.300	8912.700	4961.800
Net Current Assets		1700.500	2885.000	5194.000
MISCELLANEOUS EXPENSES		1815.100	2197.600	229.600
TOTAL		27206.800	23739.800	20569.800

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		39125.400	35221.900	26986.600
Other Income		738.300	801.200
Total Income		39863.700	36023.100	26986.600
Profit/(Loss) Before Tax		3695.200	3521.900	2033.600
Provision for Taxation		900.900	793.800	816.200
Profit/(Loss) After Tax		2794.300	2728.100	1217.400
Earnings in Foreign Currency :
	Export Earnings			2306.300
	Commission Earnings	NA	NA	250.400
	Other Earnings			9.500
Total Earnings				2566.200
Imports :
	Raw Materials			822.700
	Stores & Spares	NA	NA	236.600
	Capital Goods			693.500
	Others			0.000
Total Imports				1752.800
Expenditures :
	Administrative Expenses and Selling Expenses	4776.400	4126.000	3929.400
	Raw Material Consumed	8158.600	6873.600	6001.800
	Interest and Financial Charges	928.600	645.100	488.400
	Excise Duty	4078.300	3664.200	3826.400
	Power & Fuel	6307.600	5753.300	5591.600
	Depreciation & Amortization	1957.400	1439.600	1463.800
	Manufacturing Expenses	5297.200	0.000	0.000
	Other Expenses	4664.400	0.000	0.000
Total Expenditure		36168.500	22501.800	21301.400

QUARTERLY RESULTS

PARTICULARS	30.06.2008 1^st Quarter
Sales Turnover	9517.900
Other Income	161.300
Total Income	9679.200
Total Expenditure	8187.900
Operating Profit	1491.300
Interest	165.400
Gross Profit	1325.900
Depreciation	395.900
Tax	136.500
Reported PAT	625.000

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio	1.16	1.18	1.15
Long Term Debt Equity Ratio	0.96	0.77	0.60
Current Ratio	1.00	0.90	0.84
TURNOVER RATIOS
Fixed Assets	1.09	1.08	1.00
Inventory	7.20	7.30	6.37
Debtors	21.63	19.29	15.81
Interest Cover Ratio	6.02	8.67	3.90
Operating Profit Margin (%)	19.30	19.96	11.33
Profit Before Interest and Tax Margin (%)	14.29	15.87	6.40
Cash Profit Margin (%)	13.96	14.78	7.63
Adjusted Net Profit Margin (%)	8.95	10.70	2.69
Return on Capital Employed (%)	24.01	28.87	11.33
Return on Net Worth (%)	29.90	39.89	10.13

LOCAL AGENCY FURTHER INFORMATION

History:

Century Textiles & Industries Limited (CTIL), a B K Birla group flagship was incorporated in the year 1897. Till 1951 it had only one industrial unit - Cotton Textile Mills. Since then the Company has been making rapid progress in widely diversified fields in Yarn, Denim, Viscose Filament Rayon Yarn, Tyrecords, Caustic Soda, Sulfuric Acid, Salt, Cement and Pulp & Paper. The company also carried on Shipping business which was later disposed off. 

The company has it manufacturing facilities located at Mumbai, Kalyan, Jamnagar, Baikunth(Raipur), Sarlanagar, Gadchandur, Lalkua and Satrati (Khargone). 

The companies textile division in Mumbai, the 100% EOU for spinning in Madhya Pradesh, and the rayon and tyre cord divisions, received the ISO 9002 certification, whereas, Birla Tyres was awarded the ISO 9001 certification. 

Century Textiles produces 100% cotton fabrics. Century's cloth covers the length and breadth of the Globe. Century Fabric has charmed its way into: Bahrain, Bangladesh, Belgium, Canada, China, Comoros, Egypt, France, Germany, Honduras, Hong Kong, Hungary, Indonesia, Israel, Italy, Japan, Jordan, Kenya, Kuwait, Madagascar, Mauritius, Morocco, Nepal, Netherland, Panama, Portugal, Russia, S.Africa, S.Korea, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, U.A.E., U.K., Uganda and USA 

CTIL set up a pulp and, writing and printing paper plant with a total capacity of 400 tpd in Punjab and another paper plant in Uttar Pradesh. A 100% export-oriented denim plant at Satrati, Madhya Pradesh got completed during 1996-97. It also set up a pig iron project of 0.3 Million tpa in West Bengal, under a new division -- Century Iron and Steel. It has also set-up a floriculture project for export-quality roses at Shirgaon, Pune, additional polyhouses and new varieties have been planted for improvinginternational marketability. 

 During 2001-2002, the company sold two bulk carriers, m.v. Aditya Gaurav and m.v. Aditya Gopal built in 1984 and 1994 respectively.

 During 2002-2003, In yarn and denim division, the company decided to install one Thermal Power plant upto 10 MW capacity at the plant site and the capacity for the manufacture of Continuous Spun Yarn is being raised by import of machine from Germany. In Cement division capacity of Century and Maihar Cement units is being increased by 8 Lac tones by close circuit Cement mills and installation of pre-grinder. Order for 10 MW Turbine was also placed for Manikgarh Cement unit for increasing captive power generation capacity. Old turbine of 5 MW is proposed to be discarded after commissioning of this turbine, which is likely to be commissioned by December 2004. In Paper division, plant was upgraded by installing a multi fuel boiler and it is expected to be completed by December 2004. 

The company decided to dispose of the existing fleet of two ships and shut down the division during the year. 2002-2003. Efforts to dispose of the ships are in progress. 

 During 2003-2004, in Yarn and denim division, the proposal to install one Thermal Power plant upto 10 MW capacity at the existing plant site was dropped due to expected operational and environmental problems. But the company decided to install 6 MW Power plant using LSHS/furnance oil at the plant site which was expected to be commissioned by the end of the financial year. In Rayon, Tyre Cord & Chemicals division, the company imported and installed machines for manufacturing Continuous Spun Yarn and started production from February 2004. An Efficient electrolyzer was also commissioned which would increase the production of Caustic Soda by about five tones per day. In Cement division, the company completed close circuiting of two cement mills at Century Cement unit and Maihar Cement unit. The installation of pre-grinders at these Cement units were in progress during this year which will increase the capacity of Maihar Cement to 3 million tones and Century Cement to 1.8 million tones. The project work for increasing Captive Power Generation Capacity at Manikgarh Cement unit by installing 10 MW turbine and discarding 5 MW old turbine was under progress. The capacity was likely to be commissioned by September, 2004. The company also decided to install 10 MW capacity at Maihar Cement unit at a cost of Rs.650.000 millions. The plant is likely to be commissioned during the first half of 2006-07. In paper division, the installation of Multi fuel boiler was deferred. 

 During 2004-2005, in Yarn and Denim division, the installation of 6 MW Power Plant using LSHS/Furnance has been completed and the plant started operating since March 2005. The company decided to expand the manufacturing capacity of denim Fabrics by 10 Million Meters per annum inclusive of 4 MW Power Generating Set. In Cement division, the captive thermal power generation capacity at Manikgarh Cement Unit increased from 10 MW to 15 MW. The project work for capacity enhancement at all Cement units by technological upgradation and by installation of balancing equipments at a project cost of Rs.1500.000 millions has been withdrawn. In paper division, the company decided to install a 211 TPD Paper Plant based on waste paper/non- conventional raw materials and a 15 MW Turbine with an estimated investment of about Rs.3850.000 millions. The Paper Plant is proposed to be installed adjacent to the existing Plant and the same is expected to be commissioned by the end of the financial year 2006-07. 

 During 2005-2006, in Denim division, the expansion of Denim plant was completed by adding 10 million metres of quality denim to the plant capacity and commissioned in march 2006. In Rayon division, erection and commissioning of a 60 tonnes per day Fluidised Bed Combustion in replacement of the old and inefficient oil fired boilers is under way and expected to be completed during the year. In Cement division, New captive thermal power plants of 15 MW at Maihar Cement Unit and 10 MW at Century Cement Unit have been commissioned in the month of March, 2006 and April, 2006. With the commissioning of these plants, the total installed capacity of captive thermal power plants is 75 MW (Century Cement - 25MW, Maihar Cement -35 MW and Manikgarh Cement - 15 MW). All the cement units of the company are on the way of enhancing capacity. Consequently, the companies total cement manufacturing capacity will stand enhanced from 6.30 million TPA to 7.80 million TPA by the 3rd quarter of 2006-07. In the paper division, the installation of the 211 TPD Paper Plant based on waste paper/non-conventional raw material and a 16 MW Turbine is in progress and will be commissioned by December, 2006. The company is also expanding its paper manufacturing capacity by 75000 tonnes per annum before 2006-07. 

WEBSITE DETAILS ATTACHED

Company Profile:

Century Textiles & Industries Limited, Mumbai was incorporated in the year 1897. Till 1951 it had only one industrial unit - Cotton Textile Mills. Since then the Company has been making rapid progress in widely diversified fields. At present, the company is not only the trend setter in Cotton Textiles but has also made a remarkable presence in Yarn, Denim, Viscose Filament Rayon Yarn, Tyrecords, Caustic Soda, Sulfuric Acid, Salt, Cement and Pulp & Paper. The company is managed by Board of Directors, comprising of eminent Industrialists, businessmen and dedicated professionals and chairman of the Board is Mr. B.K. Birla.

GLOBAL PRESENCE

Century Textiles produces 100% cotton fabrics. Century's cloth covers the length and breadth of the Globe. In the highly competitive international markets, Century's cloth has carved a niche for itself. In fact, Century Fabric has charmed its way into: Bahrain, Bangladesh, Belgium, Canada, China, Comoros, Egypt, France, Germany, Honduras, Hong Kong, Hungary, Indonesia, Israel, Italy, Japan, Jordan, Kenya, Kuwait, Madagascar, Mauritius, Morocco, Nepal, Netherland, Panama, Portugal, Russia, S.Africa, S.Korea, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, U.A.E., U.K., Uganda and USA.

VISION STATEMENT

To continuously modernise, expand and technologically upgrade their Textile, Yarn and Denim divisions for producing excellent quality goods to meet the changing customer needs, foreign exchange earnings by promoting exports, face global & domestic competition and further improve their global as well as domestic presence, fame and glory. To ensure customer satisfaction, become cost effective, to promote employee participation and to implement innovative methods for enrichment of quality of life of all concerned.

Out Ready to wear garments started about two years ago under the brand "Cottons by Century" is on the success path and gradually they further expect encouraging improvement in sales in the coming years.

CONCRETE VISION ELEMENTS

• Modernisation, expansion and technological upgradation to achieve International Standards of excellence.
• Marketing focus on the changing customer needs and change of product suited to customer requirements.
• Promotion of exports and earning valuable foreign exchange for the country.
• Regular upgradation to face global challenges and competition from developing countries.
• Continuous Organizational restructuring to ensure customer satisfaction.
• Cost effectiveness in all areas of operations and effective management to meet global competition.
• Participation of employees and their motivation for achieving their visionary goals.

Goal

• To ensure customer suitable and cost-effective production technology.
• To conquer tomorrow's marketplace today.
• To ensure and monitor financial operations in a way to suitably encounter currency value fluctuations.
• To evolve a cost-effective system for integrating continuous quality improvement efforts of the people at all levels in their organisation, leading to Total Quality Management.
• To inspire all employees of the organisation towards improved Quality of Life, thereby focussing everyone towards beating the best.

Awards

AN ENVIABLE STRING OF AWARDS

At the first ever global contest sponsored by 'The Textile Horizon' - an International Textile Magazine published by The Textile Institute, Manchester, U.K., Century Mill was chosen for the highly coveted "International Textile Mill of the Year Award".

The above award is an addition to the glittering string of awards, applauds and achievements, a record yet to be set by any Company in India. Century has won 81 awards, including 31 awards from Cotton Textiles Export Promotion Council, 23 awards from Government of Maharashtra, 8 National Awards from Government of India and 5 awards from Indo-German Chamber of Commerce for its outstanding export performance and 14 other prestigious awards.

In its pursuit of allround excellence, Century has a tradition to devote its resources towards Greener Earth which result in receiving Championship Trophy at Flower, Plants and Vegetable Show on several occasions.

Century has inculcated habit of regular savings through-out the organisation. National Savings Commissioner for India declared it as Bachat (saving) Mill in recognition to its efforts for promoting the habit of savings amongst its employees. Century has been also declared as All India Best Pay-roll saving group in private sector.

Management

EFFICIENT MANAGEMENT

Century Textiles is well known for a vigilant and professional management. To promote Human Resource Development, it imparts regular training to all workers and organises refresher courses for Supervisory and Management cadre staff. It has a team of dedicated and experienced workmen, managerial, technical staff and executives. It has cordial relations with workmen and their representative union.

With planned and channelised material feeding to machines, it has been possible to achieve machine utilisation of 99.5% of the installed capacity and manufacture yarn and fabrics of International standard.

SALES POLICY IN INDIA AND OVERSEAS

Basic feature of Century's marketing policy is "FIRST SELL, THEN PRODUCE". Century's sales policy for world-wide export is sell for 3 months at a time - and this sale is completed 2 months in advance before the commencement of the period for which the sale is made.

For domestic market the same is for 2 months at a time and that too in advance. By this policy it is possible to control the inventory of fabric to the bare minimum.

All fabrics therefore, are delivered to the buyers in India and world-over only after receipt of full payment through irrevocable letter of credit at sight in case of export and by demand documentary bill or by advance payment in domestic market. This has been achieved as a result of excellent quality of fabrics appreciated by fashion lovers world-over and fair business dealings.

Internationally the Indian textiles are sold with two names viz. Century Textiles and Indian Mills. The quality standard of Century itself is so high that it does not require any certificate from outside agency. This is the confidence and faith the buyer has in Century Products.

Being in the business of textiles manufacturing and marketing, with decades of success in export, Century takes special care with regard to its dealing with domestic and international customers. It is by now renowned for its:

• Quick business responses
• Planned business bookings
• Timely despatches
• Meticulous pre-packing quality inspection
• Zero-defect fabric
• Extra careful packaging
• Customer feed-back evaluation
• After sales service
• Fair business policies

It is to the credit of the mill that it has established and maintained most cordial business equation with a string of leading buyers from all over the globe.

MODERNIZATION AND TECHNOLOGICAL UPDATING

Confronting and developing new generation technology is a formidable challenge. Hence, in step with time and technology the Company has installed highly sophisticated Airjet weaving machines, High Speed Ring Frames, High Speed Cards, Auto-Coners and Open-End Spinning Machines. Century's weaving machines can produce wider width cloth upto 132" suitable for exports. It has equipped itself with several latest chemical-processing machineries. In the last 20 years Century Textiles has spent more than US $ 58 million for its modernisation plans and upgrading of technology. Computerisation has been introduced in the mills to improve quality and work efficiency, production reports, quality improvements etc. Management Information Systems have all been computerised online. For sustained efforts put in, Century Textiles was awarded Indian Cotton Mills Federation's Productivity Award.

ENERGY CONSERVATION

Century stands for energy conservation by process renovation and upgrading of techniques. In recognition to its outstanding achievement century bagged 4 Gold Trophies and one Sliver Trophy from the "I.B.P.L. Urja Research Foundation."

ENVIRONMENTAL CARE

Being environment conscious, Century has adequate pollution control arrangements both for water and air to provide healthy atmosphere in the locality.

Its clean technology for dyeing of sulphur black colour has been cited as a lone example from textile industry world over, in United Nations publication "CLEANER PRODUCTION WORLDWIDE " published from England. For this technology Century also received Indian Merchant Chambers Award as an outstanding contribution in Technology Research pertaining to the textile industry.

In a planned manner. Century Textiles has phased out the use of toxic and harmful dyes and chemicals by switching over to the use of non-toxic, biodegradable dyes, chemicals and enzymes.

Thus, Century Textiles became the first textile unit in India to receive Humano-Ecological Oeko-tex Certificate for "Confidence in Textiles" from Germany for its fabric exported world-over. Scope of the Oek-tex certificate has been continuously enlarged and at present it covers the entire product range being manufactured.

It also became possible to modify the effluent treatment plant to generate Biogas, which is utilised in the mills, making it an example of Wealth from Waste.

Century Textile's case has been elaborated in the changing consumption and production patterns book" UNLOCKING TRADE OPPORTUNITIES " by the International Institute of Environment and Development, London, prepared for United Nations Department of Policy Co-ordination and Sustainable Development. This book was released in Earth Summit +5 Conference held in New York during May 1997.

Century Textiles has lived up to its name by completing a century of its existence. Over the years, it has grown in terms of infrastructure and capacity to deal with the challenges of new millenium. Enriched with the experienced manpower, modern machines and sound financial health, it has made an indelible mark of excellence in Textile Business. Century has been playing an unique role with its commitment to highest level of quality standards and it believes in rededicating itself to the same commitment in the years to come.

Quality, productivity and environmental policy

"Century Textiles, producing and marketing cotton textiles, is totally
committed to comply with requirements and continually improve quality,
productivity and environmental performance through effective management system including:
- meeting the needs and expectations of the customers,
- minimising losses,
- improving equipment availability by effective maintenance,
- conservation of natural resources,
- reduction in waste generation,
- human resource development and
- involvement of all employees."

RESEARCH AND DEVELOPMENT

In-house R & D unit of Century Textiles has continuous recognition since 1975 by Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India. R & D efforts of Century aims towards,

• improvement in productivity and quality of Yarn and fabric manufacture, Processing and Finishing;
• developing and imparting various special finishes to 100% cotton fabrics;
• create new materials, designs and finishes to meet the requirement of domestic and global consumers;
• Process modification or chemical substitution to reduce cost of manufacture, minimise pollution and to conserve energy.

PRESS RELEASE

CENTURY TEXTILES AND INDUSTRIES LTD.

PRESS RELEASE ON FINANCIAL RESULTS FOR THE YEAR 2007-08

1. Overall Review:

The profitability of the Company has increased in comparison to the previous year, mainly driven by better performance of the Cement and Pulp & Paper Divisions. In spite of adverse market conditions, the performance of Rayon Division is considered to be satisfactory. ‘Century Mill’, the Textile unit of the Company at Worli, Mumbai, has now closed and detailed comments about this are given separately under the heading Textile Mill at Mumbai.

Demand growth for cement is expected due to major infrastructure development projects as well as construction of residential units. The prices and demand for paper are likely to rule firm owing to the Central Government’s sustained thrust on promoting education at all levels. Furthermore, by producing finer denier yarn used for high value fabric, the demand for Viscose Filament Yarn (VFY) is expected to improve.

2. Textile Mill at Mumbai :

The Textile unit of the Company at Worli, Mumbai has closed down with effect from 12^th January, 2008 pursuant to the State Government’s approval for closure of the mill under the applicable provisions of the Industrial Disputes Act, 1947. Out of the remaining 275 workers, 82 have challenged the decision and the matter is pending before the Industrial Tribunal at Mumbai.

We have decided to develop the available mill land at Worli, Mumbai for commercial purposes. To obtain the optimum benefit, we intend to use the land for the purpose of Hospitality services, Information Technology, Information Technology Enabled Services and other commercial purposes, subject to various permissions and approvals, which will be obtained in due course. The construction work can commence only after all permissions and approvals are in place.

3. Exports :

The total exports of the Company amounted to Rs.2920.000 millions which represents about 8% per cent of the Net Sales.

4. EXPANSION & MODERNISATION:

a) Textiles

The project work for setting up a new Textile Mill as a separate Division of the Company named as “Birla Century”, at GIDC Industrial Estate, Jhagadia, Dist. Bharuch in the State of Gujarat, is at an advanced stage and is expected to be commissioned by about June 2008 as scheduled. The mill is slated to house about three hundred looms and one lac spindles for a manufacturing capacity of about twenty five million metres of fabrics per annum. The plant will also be equipped with a gas based captive power plant of 30 MW.

b) Cement

i) Modification and upgradation work at all Cement units is complete and the current cement manufacturing capacity has increased to 7.80 million tonnes per annum, with effect from 1^st March, 2008.

ii) Subsequent to our report in the previous year, our proposal for cement capacity expansion is modified to increase the current cement manufacturing capacity from 7.80 million tonnes per annum to 11.80 million tonnes per annum. This is expected to be achieved by setting up a new clinker line of the capacity of 2.50 million tonnes and an equivalent cement grinding facility, adjacent to the existing plant of Manikgarh Cement at Gadchandur, Maharashtra, along with a captive Thermal Power Plant of 40 MW and as planned earlier, the 1.50 million tonnes per annum cement grinding unit at Sagardighi in Dist. Murshidabad, West Bengal. The revised total outlay for the aforesaid expansion is estimated to be about Rs.18000.000 millions. Environment clearance from Ministry of Environment and Forests, New Delhi, has been received for expansion of Cement Manufacturing Capacity at Gadchandur, Maharashtra. The clearance for Forest Land admeasuring 7.06 hectare for pipe/belt conveyor system is yet to be received from Ministry of Environment and Forests, New Delhi. We intend to place orders for major equipments for expansion at Gadchandur, Maharashtra after getting clearance for forest land.

As regards setting up a grinding unit at Sagardighi, District Murshidabad, West Bengal, we have taken possession of 159 acres of requisite land. The Environment Clearance for the Grinding Unit is expected shortly from the Pollution Control Board, West Bengal. We plan to place orders for major equipments for the Grinding Unit at Sagardighi, West Bengal after getting the environment clearance as mentioned above. The expansion is expected to be operational within 3 years from the placement of orders for the Plant and Machinery.

Pulp & Paper

Prime Grade Tissue Paper Plant:

Orders for major machineries have been placed. Civil construction of buildings for plant and godowns is in progress. The project is running on schedule and is expected to be operational by about November, 2008. Total cost of the project is expected to be around rs.1750.000 millions.

Multi-layer packaging board plant

To diversify further and to cater to the growing packaging paper board demand, it has been decided to set up a 500 tonnes per day multi-layer packaging board plant and a 40 mw power generation plant with an estimated investment of about Rs. 7750.000 millions. The board plant is proposed to be installed adjacent to the existing pulp and paper plant at lalkua, dist. Nainital, uttarakhand and is expected to be operational by december, 2009. Quotations for the main plant and machinery have been received and are under process.

4 : Fibre line (pulp plant)

It has been decided to install a state-of-the-art, eco-friendly fibre line to produce best quality wood pulp, with a capacity of 450 tonnes per day and a chemical recovery boiler of 1,200 tonnes per day to meet the requirements of pulp for the paper board plant. The fibre line will also help in the enhancement of paper production in the existing plants at lalkua, dist. Nainital, uttarakhand. The estimated investment for this expansion is Rs. 4950.000 millions and the plant is expected to be operational by december 2009. We have already received quotations for the main plant and machinery and these proposals are currently being reviewed.

d) General

Modernisation and technological upgradation programmes, as necessary, are ongoing in all the units of the Company to maintain competitiveness and achieve better quality. Stringent cost control measures continue to be implemented in all possible areas.

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.40.69
UK Pound	1	Rs.81.87
Euro	1	Rs.55.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		81

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions