MIRA INFORM REPORT

 

 

Report Date :

01.07.2011

 

IDENTIFICATION DETAILS

 

Name :

KESORAM INDUSTRIES LIMITED

 

BIRLA TYRES PROP. KESORAM INDUSTRIES LIMITED

 

 

Registered Office :

9/1, Birla Building, 8th Floor, RN Mukherjee Road, Kolkata – 700001, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

18.10.1919

 

 

Com. Reg. No.:

21-3429

 

 

Capital Investment / Paid-up Capital :

Rs. 457.416 millions

 

 

CIN No.:

[Company Identification No.]

L17119WB1919PLC003429    

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALK03134F

 

 

PAN No.:

[Permanent Account No.]

AABCK2417P

 

 

Legal Form :

Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Portland Cement, Artificial Filament Viscose Rayon Yarn, Automobile Tyres (for bus and lorry), Automobile Tubes (for bus and lorry) and Automobile  Flaps (for bus and Lorry)

 

 

No. of Employees :

Above 9000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (69)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 61610000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists

 

 

Comments :

Subject is an old and established company with good track. Financials of the company appears to be strong and healthy. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for normal business dealings under usual trade terms and conditions.  

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

9/1, Birla Building, 8th Floor, RN Mukherjee Road, Kolkata – 700001, West Bengal, India

Tel. No.:

91-33-22435453 / 22209454 / 22486607 / 22429454

Fax No.:

91-33-22109455

E-Mail :

kesocorp@cal3.vsnl.net.in

Website :

http://www.kesocorp.com

 

 

Factory  :

·         Cement Section

Basantnagar, District Karimnagar, Andhra Pradesh-505187, India

Tel No :- 91-8728-228122/8125/8156

Fax No :- 91-8728-228160

Email: kesoram3@hd2.dot.net.in

 

·         Sedam, District Gulbarga, Karnataka-585222, India

Tel No :- 91-8441-276005 / 277403

Fax No :- 91-8441-276139

E-mail :- communication@vasavadattacement.com

 

·         Automobile Tyres and Tubes

P. O. Chanpur, Via Curuda, Balasore, Orissa-756056, India

Tel No :- 91-6782-254259/780/885

Fax No :- 91-6782-254225

E-mail :- btbls@cal2.vsnl.net.in  

 

·         Heavy Chemicals

19, B. T. Road, Khardah, P. O. Balaram Dharma,

Sopan Kolkata – 700 116

Tel.No:91-33-25532879/5183

Fax No: 91-33-25533860/25839218

Email: hhcl_fac@vsnl.net

                  hhc_ho@vsnl.net

 

·         Gram : Khedimubarakpur, Tehsil : Laksar, Dist : Haridwar, Uttarakhand – 247663

Tel. No : 91-1332-255177 / 254409

Fax No: 91-1332-255099

 

·         P.O. Nayasarai, Railway Station, Kuntighat, Near Tribeni Dist. Hooghly, West Bengal – 712513

Tel. No : 91-33-26846431-34 / 26846457

Fax No: 91-33-26846461

E-Mail : kesoram@rayonworks.com

 

·         P.O. Adcconagar, Bansberia, Dist. Hooghly, West Bengal – 712 121 

Tel. No : 91-33-26346462 / 26346465 / 26346620

Fax No: 91-33-26346621

E-Mail : spunpipe@cal.vsnl.in

 

 

Branches :

·         10-3-316/A 1st Floor, S. D. Eye Hospital Road, Masab Tank, Hyderabad – 500 028, Andhra Pradesh, India

Tel.No: 91-40-23342296/8056

Fax No: 91-40-23344109/7821

Email: hyderabad@vasavadattacement.com

 

·         10-3-316/A, 2nd Floor, S. D. Eye Hospital Road, Masab Tank, Hyderabad – 500028, Andhra Pradesh, India

Tel.No: 91-40-23348896/7843/7613

Fax No: 91-40-23344109/7821

 

·         Shivam Chambers, 53, Syed Amir Ali Avenue, Kolkata-700019, West Bengal, India

Tel.No: 91-33-22814813/4717/18/19/20

Fax No: 91-33-2281-4874

Email: ho@birlatyre.com

 

·         8th Floor, Birla Building, 9/1, R. N. Mukherjee Road, Kolkata-700001, West Bengal, India

Tel.No: 91-33-22131680/89 (10 lines)

Extn: 1863/1854

Fax No: 91-33-22421931

E-Mail : hhc_ho@vsnl.net

 

·         “Industry House”, 10, Camac Street, Kolkata – 700 017, West Bengal, India

Tel. No: 91-33-22824721-24

Fax No.: 91-33-22828879

E-Mail : rayon@cal.kesoramrayon.co.in

 

·         Industry House”, 10, Camac Street, Kolkata – 700 017, West Bengal, India

Tel. No: 91-33-22822476-78

Fax No.: 91-33-22829370

E-Mail : kesospun@cal.vsnl.net.in

 

 

DIRECTORS

 

Name :

Mr. Basant Kumar Birla

Designation :

Chairman

 

 

Name :

Mr. Krishna Gopal Maheshwari

Designation :

Director

 

 

Name :

Mr. Bhagwati Prasad Bajoria

Designation :

Director

 

 

Name :

Mr. Pesi Kushru Choksey

Designation :

Director

 

 

Name :

Ms. Neeta Mukerji

Designation :

Director  - Nominee [ICICI]

 

 

Name :

Mr. D. N. Mishra

Designation :

Director – Nominee [LIC]

 

 

Name :

Mr. Amitabha Ghosh

Designation :

Additional Director

 

 

Name :

Mr. Prasanta Kumar Malik

Designation :

Director

 

 

Name :

Mrs. Manjushree Khaitan

Designation :

Director

 

 

Name :

Mr. Shiv Kumar Parik

Designation :

Director cum Company Secretary

Qualification :

B.Com , FCA, FCS

Date of Appointment :

14.07.1955

 

 

Name :

Mr. Govind Ballabh Pande

Designation :

Director

 

 

Name :

Deepak Tondon

Designation :

Whole Time Director

 

 

KEY EXECUTIVES

 

Name :

Mr. S. K. Parik

Designation :

Company Secretary

 

 

Name :

Mr. K C Jain

Designation :

Manager of the Company and Sr. President (Cement Sections)

Qualification :

B.Com, FCA

Previous Employment :

Singhi and Company

 

 

VASAVADATTA CEMENT SECTION :

Name :

Mr. D S Bindra

Designation :

President

 

 

Name :

Mr. P R Sharma

Designation :

Joint President

 

 

Name :

Mr. C K Jain

Designation :

Joint President (O and M and TPH)

 

 

Name :

Mr. P S Rao

Designation :

Joint President ( Projects)

 

 

Name :

Mr. Yashwant Mishra

Designation :

Senior Vice President and Marketing Head

 

 

Name :

Mr. O P Sharma

Designation :

Vice President (Commercial)

 

 

Name :

Mr. I K Purohit

Designation :

Vice President (Sales and Marketing)

 

 

Name :

Mr. R K Gandhi

Designation :

Vice President (Production and Quality Control)

 

 

Name :

Mr. B. K. Sharma

Designation :

Vice President (Mechanical)

 

 

Name :

Mr. Rajesh Garg

Designation :

Vice President (Mines)

 

 

Name :

Mr. S. G. Karwa

Designation :

Vice President (Finance and Accounts)

 

 

KESORAM CEMENT SECTION :

Name :

Mr. S V Tapadia

Designation :

Joint President (Finance and Administration)

 

 

Name :

Mr. K L Narayana Rao

Designation :

Joint President (Technical)

 

 

Name :

Mr. Mahesh Agarwal

Designation :

Vice President (Technical)

 

 

Name :

Mr. Ch. S. Nageshwar Rao

Designation :

Vice President (PQC)

 

 

Name :

Mr. Ashok Ostwal

Designation :

Vice President (Sales and Marketing)

 

 

BIRLA TYRES SECTION :

 

Name :

Mr. Praveen Mehta

Designation :

Vice President (Sales)

 

 

Name :

Mr. R K Shah

Designation :

Vice President (Commercial)

 

 

Name :

Mr. A K Uppal

Designation :

Vice President (Marketing)

 

 

Name :

Mr. P. K. Mitra

Designation :

Vice President (Engineering)

 

 

Name :

Mr. R C Singh

Designation :

Vice President (Production)

 

 

Name :

Mr. Anoj Agarwal

Designation :

Vice President (Works)

 

 

Name :

Mr. Anupam Dutta

Designation :

Vice President (Technical)

 

 

Name :

Mr. Arindam Gupta

Designation :

Vice President (Production)

 

 

Name :

Mr. S. C. Sood

Designation :

Vice President (Commercial)

 

 

Name :

Mr. Kanti Chaudhury

Designation :

Vice President (Production)

 

 

RAYON AND TRANSPARENT PAPER SECTION :

Name :

Mr. J D Palod

Designation :

President (Rayon, TP and Heavy chemicals Sections)

Qualification :

BE (Mech. AMIE)

Date of Appointment :

01.01.1988

Previous Employment :

Hindusthan Heavy Chemicals Limited

 

 

Name :

Mr. J P Bohra

Designation :

Joint President (Finance)

 

 

Name :

Mr. S C Tripathy

Designation :

Senior Vice President (Technical)

 

 

Name :

Mr. S S Singhania

Designation :

Vice President (Engineering)

 

 

Name :

Mr. S K Patodia

Designation :

Vice President (Commercial)

 

 

Name :

Mr. A K Kejriwal

Designation :

Vice President (Marketing)

 

 

SPUN PIPES SECTION :

Name :

Mr. Sadhan Sarkar

Designation :

Dy. General Manager

 

 

HINDUSTHAN HEAVY CHEMICALS SECTION :-

Name :

Mr. S Roy

Designation :

Senior Vice President (Commercial)

 

 

Name :

Mr. M L Bhattacharya

Designation :

Senior Vice President (Works)

 

 

Name :

Mr. U S Asopa

Designation :

Senior Vice President (Finance)

 

 

Name :

Mr. S R Chamaria

Designation :

Senior Vice President (Accounts and HRD)

 

 

Name :

Mr. Suresh Sharma

Designation :

Senior Vice President (Commercial)

 

 

Name :

Mr. G K Ojha

Designation :

Vice President (Secretarial)

 

 

Name :

Mr. Vikas Agarwal

Designation :

Vice President (Taxation)

 

 

Name :

Mr. O P Poddar

Designation :

President (Cement sections)

Qualification :

B.Com, Visharad

Date of Appointment :

03.05.1966

 

 

Name :

Mr. P K Goyenka

Designation :

President (Vasavadatta Cement)

Qualification :

M Tech , MBA (USA)

Date of Appointment :

11.01.1978

Previous Employment :

Regional Engineering College

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2011

 

Category Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

Description: http://bseindia.com/images/clear.gif(1) Indian

 

 

Description: http://bseindia.com/images/clear.gifIndividuals / Hindu Undivided Family

535,347

1.38

Description: http://bseindia.com/images/clear.gifBodies Corporate

11,504,397

29.73

Description: http://bseindia.com/images/clear.gifSub Total

12,039,744

31.11

Description: http://bseindia.com/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

12,039,744

31.11

(B) Public Shareholding

 

 

Description: http://bseindia.com/images/clear.gif(1) Institutions

 

 

Description: http://bseindia.com/images/clear.gifMutual Funds / UTI

4,320,730

11.16

Description: http://bseindia.com/images/clear.gifFinancial Institutions / Banks

440,206

1.14

Description: http://bseindia.com/images/clear.gifInsurance Companies

6,769,329

17.49

Description: http://bseindia.com/images/clear.gifForeign Institutional Investors

1,153,066

2.98

Description: http://bseindia.com/images/clear.gifSub Total

12,683,331

32.77

Description: http://bseindia.com/images/clear.gif(2) Non-Institutions

 

 

Description: http://bseindia.com/images/clear.gifBodies Corporate

3,298,798

8.52

Description: http://bseindia.com/images/clear.gifIndividuals

 

 

Description: http://bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

6,635,753

17.15

Description: http://bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1,679,408

4.34

Description: http://bseindia.com/images/clear.gifAny Others (Specify)

2,364,409

6.11

Description: http://bseindia.com/images/clear.gifNon Resident Indians

621,731

1.61

Description: http://bseindia.com/images/clear.gifOverseas Corporate Bodies

1,742,678

4.50

Description: http://bseindia.com/images/clear.gifSub Total

13,978,368

36.12

Total Public shareholding (B)

26,661,699

68.89

Total (A)+(B)

38,701,443

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

Description: http://bseindia.com/images/clear.gif(1) Promoter and Promoter Group

-

-

Description: http://bseindia.com/images/clear.gif(2) Public

7,041,875

-

Description: http://bseindia.com/images/clear.gifSub Total

7,041,875

-

Total (A)+(B)+(C)

45,743,318

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Portland Cement, Artificial Filament Viscose Rayon Yarn, Automobile Tyres (for bus and lorry), Automobile Tubes (for bus and lorry) and Automobile  Flaps (for bus and Lorry)

 

 

Products :

·         Cement

·         Rayon and Transparent Paper

·         Refractory

·         Spun Pipes and Foundries

·         Textile

 

Item Code No

Product Description

324101000

Portland Cement

540331.00

Artificial Filament Viscose Rayon Yarn

401120.00

Automobile Tyres (for bus and lorry)

401310.02

Automobile Tubes (for bus and lorry)

401290.04

Automobile Flaps (for bus and lorry)

 

PRODUCTION STATUS

 

(As on 31.03.2010)

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Hindustan Heavy Chemicals

  1. Caustic Soda Lye (100%)
  2. Liquid Chlorine
  3. Sodium Hypochlorite
  4. Hydrochloric Acid (100%)
  5. Ferric Alum (including Alum Liquor)
  6. Sulphuric Acid (including Battery Grade)
  7. Purified Hydrogen Gas

Metric Tons per year

 

 

 

 

M3 per year

 

15120

6000

16500

9750

3200

20400

3024000

 

12410

5045

6205

8200

3200

18700

162000

 

 

11663*

4831*

2686*

5373*

---

19061*

753453*

 

* Production is inclusive of internal consumption.

 

 

GENERAL INFORMATION

 

No. of Employees :

Above 9000 (Approximately)

 

 

Bankers :

·         State Bank of India

·         Citi Bank N.A

·         Allahabad Bank

·         The Hongkong and Shanghai Banking Corporation

·         UCO Bank

·         Central Bank of India

·         Canara Bank

·         Oriental Bank of Commerce

·         State Bank of Hyderabad

·         BNP Paribas

·         HDFC Bank Limited

·         ICICI Bank Limited

·         IndusInd Bank Limited

 

 

Facilities :

 

SECURED LOANS

 

 

Nature of loan

Nature of Security

31.03.2010

(Rs. In millions)

7.30% Redeemable Non- Convertible Debentures

 

 

Hypothecation/mortgage (since created) on all the present and future movable (save and except book debts / immovable properties (including mortgage to be created on immovable properties at uttarakhand of company’s Tyre Unit) of all Units of the company on pari passu basis with other lenders.

1000.000

Terms Loans from -State Bank of India

 

 

 

 

----

State Bank of India

Hypothecation/mortgage charge over the fixed assets of the Company (movable/ immovable) ranking pari passu with the existing charges save and except assets exclusively charged to others for specific loans

2142.891

ICICI Bank Limited

First pari passu charge on both present and future movable fixed assets of cement expansion project at vasavadatta cement unit by way of hypothecation and first pari passu charge of mortgage over both present and future immovable fixed assets of vasavadatta cement unit of the company

2855.125

State Bank of India

 

 

Hypothecation/mortgage over all the movable/immovable assets (including mortgage on all immovable assets of all the units of the company,s spun pipes and foundries unit to be created) both present and future of all units of the company ranking pari passu with the existing charges save and except assets exclusively charged to others for specific loans.

1999.793

Interest accrued and due

 

17.833

State Bank of India

Hypothecation over all movable/immovable assets (including mortgage on all immovable assets of all the units of the company to be created) both present and future of all the units of the company ranking pari passu with the existing charges save and except assets exclusively charged to others for specific loans.

1098.487

Interest accrued and due

 

10.027

State Bank of India

First mortgage / charge to be created on all the fixed assets both present and future of the company on pari passu basis with all the term lenders of the company

1000.000

Interest accrued and due

 

0.212

Standard Chartered Bank

First pari passu charge by way of hypothecation over all movable assets, both present and future of the company and first pari passu charge by way of mortgage over all immovable properties (including charge to be created on assets at uttarakhand of company’s Tyre unit) both present and future of all the units of the company

929.800

Standard Chartered bank

First pari passu charge by way of hypothecation/mortgage over all movable/immovable properties (including charge to be created on immovable properties at uttarakhand of company’s tyre unit) both present and future, of all the units of the company

671.156

State Bank of India

First pari passu charge to be created with other lenders on existing and future fixed assets of the company including equitable mortgage on land and building

1224.902

HSBC Bank Limited

First pari passu charge to be created over the fixed assets of the tyre division at uttarakhand

451.157

Yes Bank Limited

First pari passu charge to be created over the fixed assets of the tyre division at uttarakhand

280.625

DBS Bank Limited

Pari passu first mortgage to be created on all immovable assets and pari passu first hypothecation to be created on all movable fixed assets of the company

963.200

Induslnd bank limited

Pari passu first charge to be created on the fixed assets of the company

100.000

Interest accrued and due

 

0.179

Working Capital Demand Loan

Hypothecation of current assets and second charge on movable and immovable fixed assets both present and future of the company

1400.001

Interest accrued and due

 

1.046

Overdraft/ Cash Credit

 

298.645

Packing Credit Loan

 

1292.073

 

 

 

Total

 

18637.152

 

 

UNSECURED LOANS

31.03.2010

 (Rs. In millions)

 

 

Fixed deposit

49.224

Security deposits from selling agents and others

2147.074

Interest accrued and due

76.046

Short Term Loans

 

Form banks

4031.947

Interest accrued and due

9.407

Temporary Bank overdraft

3.733

Others

3850.000

Other Loans

 

From banks

4600.000#

Interest accrued and due

4.604

 

 

Total

14772.035

# Includes Rs. 1000.000 millions repayable within one year from the balance sheet date.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

 

 

Associates :

·         Mangalam Timber Products Limited

·         Birla Buildings Limited

·         Century Textiles and Industries Limited

·         HGI Industries Limited

·         Indian Rayon and Industries Limited

·         Jay Shree Tea and Industries Limited

·         Padmavati Investments Limited

·         Birla Century Finance Limited

·         ECE Industries Limited

·         Mangalore Refinery and Petrochemicals Limited

·         Mangalam Cement Limited

 

 

Subsidiaries :

·         Bharat General and Textile Industries Limited

·         KICM Investment Limited

·         Assam Cotton Mills Limited

·         Softshree Estates Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital:

No. of Shares

Type

Value

Amount

5000000

Redeemable Cumulative Preference Shares

Rs. 100/- each

Rs. 500.000 millions

400000

Redeemable Cumulative Second Preference Shares

Rs. 100/- each

Rs.   40.000 millions

66000000

Ordinary Shares

Rs. 10/- each

Rs. 660.000 millions

 
Total

 

Rs. 1200.000 millions

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

45743318

Ordinary Shares

Out of the above:-

575435     shares of Rs. 10 each allotted as fully paid

                 up without payment being received in

                 cash pursuant to a scheme of

                 amalgamation

5949480   shares of Rs. 10 each allotted as fully paid

                 Up bonus shares by way of capitalization     

                 Of Reserve

400000     shares of Rs. 10 each – Rs. 3.75 per

                 Share received in cash and balance

                 Credited as bonus by way of capitalization

                 Of Reserve

Rs. 10/- each

Rs. 457.433 millions

Less:

Allotment Money receivable

 

Rs. 0.017 millions

 
Total

 

Rs. 457.416 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

457.416

457.416

457.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

14944.993

12843.632

9361.800

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

15402.409

13301.048

9819.200

LOAN FUNDS

 

 

 

1] Secured Loans

18637.152

15362.689

9710.600

2] Unsecured Loans

14772.035

6056.500

2437.500

TOTAL BORROWING

33409.187

21419.189

12148.100

DEFERRED TAX LIABILITIES

3284.382

1261.475

0.000

 

 

 

 

TOTAL

52095.978

35981.712

21967.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

34318.206

18043.473

10842.400

Capital work-in-progress

4128.332

8648.527

6345.900

 

 

 

 

INVESTMENT

514.336

617.810

478.300

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
9161.941
5890.612
4421.700

 

Sundry Debtors
5428.886
3801.705
2730.700

 

Cash & Bank Balances
804.488
568.552
405.400

 

Other Current Assets
301.337
223.641
0.000

 

Loans & Advances
2874.621
2132.411
4563.900

Total Current Assets
18571.273

12616.921

12121.700

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
5286.244
3631.125
4482.100

 

Other Current Liabilities
 

 

 

 

Provisions
149.925
313.894
3338.900

Total Current Liabilities
5436.169
3945.019
7821.000

Net Current Assets
13135.104
8671.902
4300.700

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

52095.978

35981.712

21967.300

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

47306.546

38777.220

29898.100

 

 

Other Income

1250.667

759.398

402.400

 

 

TOTAL                                     (A)

48557.213

39536.618

30300.500

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Ram Materials and Finished Goods

22322.347

16535.171

11466.300

 

 

Manufacturing, Selling and Administrative Expenses

18661.606

16583.022

9562.400

 

 

Power and Fuel Cost

0.000

0.000

459.800

 

 

Employee Cost

0.000

0.000

1584.100

 

 

Miscellaneous Expenses

0.000

0.000

678.200

 

 

Increase/Decrease in Stock

0.000

0.000

(408.900)

 

 

TOTAL                                     (B)

40983.953

33118.193

23341.900

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

7573.260

6418.425

6958.600

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1090.312

1208.721

540.600

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

6482.948

5209.704

6418.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1728.003

1118.561

892.700

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

4754.945

4091.143

5525.300

 

 

 

 

 

Less

TAX                                                                  (H)

3394.071

553.734

1691.800

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1360.874

3537.409

3833.500

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

0.000

0.000

4506.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

General Reserve

240.000

447.816

694.300

 

 

Proposed Dividend

148.665

148.665

 

 

 

Interim Dividend

102.922

102.922

 

 

 

Tax on Proposed Dividend

24.691

25.265

 

 

 

Tax on Interim Dividend

17.491

17.491

 

 

BALANCE CARRIED TO THE B/S

827.105

2795.250

7645.200

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

3750.367

2541.671

NA

 

TOTAL EARNINGS

3750.367

2541.671

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

4399.317

3446.101

NA

 

 

Stores & Spares

107.788

274.582

NA

 

 

Capital Goods

3247.058

1624.274

NA

 

TOTAL IMPORTS

7754.163

5344.957

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

51.88

82.80

82.88

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

14141.230

12519.000

13413.400

15239.300

Total Expenditure

12571.300

11959.200

12161.900

15311.100

PBIDT (Excl OI)

1569.930

559.800

1251.500

(71.800)

Other Income

29.400

176.600

53.600

31.700

Operating Profit

1599.330

736.400

1305.100

(40.100)

Interest

452.030

572.800

667.400

706.100

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

1147.300

163.600

637.700

(746.200)

Depreciation

631.070

640.000

726.700

728.100

Profit Before Tax

516.230

(476.400)

(89.000)

(1474.300)

Tax

160.000

(150.500)

63.600

505.500

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

356.230

(325.900)

(152.600)

(1979.800)

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

356.230

(325.900)

(152.600)

(1979.800)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
2.80
8.94

12.65

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
10.05
10.55

18.48

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.99
13.34

24.06

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.30
0.30

0.56

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.52
1.90

2.03

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
3.41
3.19

1.54

  

 

LOCAL AGENCY FURTHER INFORMATION

 

 

LITIGATION

 

Case Status - PENDING

 

Status of     INCOME TAX APPEAL (ITA) 207 of 2008

 

COMMISSIONER OF INCOME TAX, KOLKATA – II       Vs.            M/S.

KESORAM INDUSTRIES LIMITED

 

Pet’s Adv.   : S. S. SARKAR

 

Res’s Adv. : 

 

Court No.   : 13  last Listed On : Tuesday, August 05, 2008

 

Category    : INCOME TAX : REVENUE

 

CONNECTED APPLICATION (S); No Connected Application.

 

CONNECTED MATTER (S); No Connected Cases.

 

Case Updated on : Thursday, August 07, 2008

 

 

Case Status – PENDING

 

Status of       INCOME TAX APPEAL (ITA) 496 of 2008

 

COMMISSIONER OF INCOME TAX, KOLKATA – II       Vs.            M/S.

KESORAM INDUSTRIES LIMITED

 

Pet’s Adv.   : S. S. SARKAR

 

Res’s Adv. : 

 

Court No.   : 13  last Listed On : Monday, August 18, 2008

 

Category    : INCOME TAX : REVENUE

 

CONNECTED APPLICATION (S) ; No Connected Application.

 

CONNECTED MATTER (S) ; No Connected Cases.

 

Case Updated on : Monday, August 18, 2008

 

 

HISTORY

 

The Company was incorporated on 18.10.1919 under the Indian Companies Act, 1913, in the name and style of Kesoram Cotton Mills Limited. It had a Textile Mill at 42, Garden Reach Road, Calcutta 700024. The name of the Company was changed to Kesoram Industries and Cotton Mills Limited. on 30th August, 1961 and the same was further changed to Kesoram Industries Limited on 9th July, 1986. The said Textile Mill at Garden Reach Road was eventually demerged into a separate company.

 

GENERAL REVIEW

During the year, the turnover for the first time crossed Rs 500000.000 Millions. This has been primarily due to the increase in sales of Tyre Section from Birla Tyres Unit-II at Laksar,  Haridwar.  Birla  Tyres

Unit-III  and  Unit-IV related to Truck / Bus Radial and Motor  Cycle/  LCV  tyres  started  Commercial  Production in March,  2010  and  October,  2009  respectively.  Capacity at Vasavadatta Cement was also increased which started Commercial Production in August, 2009.

 

The total benefit in top line and bottom line for all these expansions will get reflected in the coming year.

 

The profitability of the Company during the year has also increased due to good results  of Cement Sections and enhanced capacity of Tyre Sections besides  good treasury management and cost control effected throughout  the Company.  Rayon Section also showed higher profitability due to strong domestic demand.

 

Work at Spun Pipe Section Continues to be under suspension.

 

CEMENT SECTIONS; 


Vasavadatta Cement

 

The Directors are pleased to report that the expansion undertaken at  this section  by setting up the 4th Unit comprising of Cement capacity  of  1.65 million  ton  per  annum  and  thermal power plant  of  17.5  MW  has  been completed.  After completion of trial run, commercial production of Cement has started from 07.08.2009.

 

Operational performance of this section continues to be good and it has achieved highest ever production of Clinker as well as Cement during the year.  Production figures of this section given hereunder include 1, 29,300

Metric ton of clinker and 76,610 metric ton of cement produced during trial run of the 4th Unit:

 

Production          2009-10         2008-09

                        (Metric Ton)   (Metric Ton)

 

Clinker              42,98,390       34,41,496

Cement             42,03,373       39,24,589

 

Cement  dispatches  were  adversely affected  due to non-availability of adequate wagons and as a result clinker to the extent of 4,52,045 metric ton was sold during the year.

 

The Section has achieved higher production despite several challenges such as substantial build-up of new capacity by other companies in the industry, lack  of  corresponding  pickup  in demand, shortage of  rail wagons  for movement  of  cement,  coal  and  raw  materials and unsatisfactory coal availability  position in absence of adequate coal  linkage  arrangements. However, quality of its products, established brand image and proper

Logistic management have enabled the section to achieve good performance in a year characterized by continued slowdown in the construction sector and weak monsoon. Due to surplus capacity, cement prices were not able to keep pace with rising costs for major part of the year resulting in pressure on margins. Stimulus measures undertaken by the Government, particularly reduction in excise duty, encouragement to infrastructure development and improving liquidity in the economy have however, helped to maintain the growth momentum.

 

Captive power generation was 445.07 million KWH during the year as against 338.12 million KWH during the previous year.  Captive power generation catered to about 98% of the total power requirement of the section.  54.15 million KWH being 12.17% of the power generated from the power plants was sold to Gulbarga Electricity Supply Company Limited The unit is also exploring the possibilities of power generation from Waste Heat Recovery System which will give considerable advantage in cost of power generation. Further, the Company is also exploring possibilities of further expansion or a Green field unit in nearby area.

 

As  a  part  of corporate social responsibility, the  unit  has  undertaken various  social  welfare  and  community  development  activities  such  as construction of water tank and children's park, plantation of trees,  water conservation, health camps, distribution of agricultural implements to  the villagers,  vocational training and skill development activities,  etc.  in its surrounding areas.

 

In the year 2009-10, the Section received two prizes in the Mines Safety Week' under the aegis of DGMS - Drilling and Blasting First Prize and Method of Working 2nd Prize. Also in the various safety competitions conducted on the occasion of Gulbarga Region Industrial Safety Day 2010’ (GRISD) celebration, the employees bagged various prizes.

 

Apart from the above,  seven Scout and Guide  students  of  the  School  - Vasavadatta Vidya Vihar have won  recently, the coveted Award of Rashtrapati Puraskar'.

 

Industrial relations with the employees were good during the year.

 

Kesoram Cement

 

Production figures of this Section are as under:

 

Production                2009-10          2008-09

                             (Metric Ton)     (Metric Ton)

 

Clinker                  11,61,200       10,97,175

Cement                 13,78,833       15,11,615

 

This Section also has achieved highest ever production of Clinker. However, Cement production and dispatches were adversely affected due to Telangana agitation and paucity of Railway wagons for movement   of   cement. Consequently, the Section had to sell 55,024 metric ton of clinker.  There was substantial capacity expansion also in Andhra Pradesh, which had put pressure on sales realizations and profitability of the Section.  However, from the month of March 2010, cement prices are improving and are expected to improve further in coming months.

 

The unit has built-up an excellent brand image of its blended cement 'BIRLA SHAKTI' and was able to market about 81% of its total output in PPC cement segment.

 

There has been substantial increase in cost of raw materials and coal. However, Management has taken various control measures to keep the cost of cement under control.

 

Captive Thermal Power Plant of this Section generated 113.29 million KWH of power, out of which 0.03 million KWH were supplied to APTRANSCO.  In this Section, about 82% of the power requirement of the cement plant is met from the Captive generation and balance power was purchased from APTRANSCO.

Captive   Power   Plant plays a vital role in   improving   the   cost competitiveness and providing quality power to the Section.  In view of this, the Section is considering the feasibility of power generation by Waste Heat Recovery System.

 

The  suit  challenging the validity of imposition of  Electricity  Duty  on captive  power  generation  @  25 paise per Unit  from  17.07.2003  by  the Government of Andhra Pradesh is still pending before the Hon'ble High Court of Andhra Pradesh.

 

This  Section bagged the FAPCCI (Federation of Andhra Pradesh  Chambers  of Commerce  and Industry) Award of EXCELLENCE IN WORKERS' WELFARE for the  year 2008-09,  which  was  presented by the Hon'ble  Chief  Minister  of  Andhra Pradesh Sri K. Rosaiah on 5th April 2010.

 

Basantnagar  Limestone  Mines  of this Section bagged two  1st  prizes  for Environmental and Health Management' and 'Maintenance and Operation of Heavy Earth Moving Equipments' and 2nd prize for 'Drilling and Blasting' from the Director  General of Mines Safety, Hyderabad during the Mines  Safety  Week celebrations.

 

As a part of corporate social responsibility, the Section is continuing the rural and community development and welfare activities in nearby villages by running of Agricultural Demonstration Farm, Model Dairy Farm, and Vocational

Training Centre for Youth, Distribution of agricultural implements, sewing

Machines, Tri-cycles for physically challenged people, Animal Health Camps, Blood Donation Camps, Pulse Polio Programs and promotion  of  Self  Help Groups of women for their economic development etc.

 

Industrial relations were cordial during the year.

 

BIRLA TYRES SECTIONS

 

The gross turnover of the Section this year has been Rs.28496.200 Millions as compared to Rs.19472.300 Millions showing an increase of about 46.34% compared to last year. In spite of stiff competition, we have been able to increase the market share from 15% to 18%. The export sales for the year amounted to Rs 3614.800 Millions as against Rs 2404.100 Millions in the previous year.

 

Though the Section has recorded commendable sales growth but due to sharp increase in raw material prices particularly of rubber in quarter III and quarter IV, profitability has been adversely affected.

 

The  Company's  world class Green field facility for  production  of  Motor Cycle/LCV  and  Truck/ Bus Radial tyres started  commercial  production  in October, 2009 and March, 2010 respectively. The board has approved further

expansion  of  capacity to produce Truck/Bus Radial tyres by 85  MT/day  at Haridwar  and  for  Passenger Car Radial tyres of 80 MT/day  at  Balasore involving  capital outlay of Rs. 3500.000 Millions and Rs. 4500.000 Millions  respectively. The civil construction for the above expansions is in full swing and order for the major machineries and equipments have already been placed.  The commercial productions in both the projects are likely to commence by March, 2011.

 

The Section continues to have the distinction of being certified for ISO-9001, TS-16949, ISO-14001, SA-8000, OSHAS-18001 and TPM.

 

Relations with employees have been cordial and conducive to growth during the year.

 

RAYON AND TRANSPARENT PAPER SECTIONS

 

Amidst challenging environment, performance of VFY (Viscose Filament Yarn) business is satisfactory. Strong domestic demand and higher penetration in export market led to substantial growth in volumes, coupled with  reduction in  the  cost  of  all the major raw materials  -  pulp  and  sulphur,  the Section's  operating margin improved in spite of the steep hike in  coal  & electricity  costs. Margins in future are likely to decline from current level due to upward trend in pulp and sulphur prices. Export  demands  are also  likely  to be impacted due to stiff competition from  China  and  the imposition of Anti-dumping duty by the Government has not been of much help in  arresting  cheap  imports in the country. The exports were 612  M.T. against 521 M.T. of previous year.

 

The T.P (Transparent Paper) business continues with unfavorable market environment resulting into poor realization mainly due to competition with cheaper imports and substitutes.  As a result  of  the  above,  again  the production  capacity  of  this Section could not  be  fully  utilized.  The exports were 293 M.T. against 306 M.T. of previous year. The recent hike in the rate of Excise Duty will further impact the demand and profitability of this product.

 

The performance of Section's chemical business was satisfactory despite the prevailing global economic conditions and cheap imports.

 

Relations with the employees were cordial during the year.

 

SPUN PIPES SECTION

 

The factory of this Section continues to be under suspension of work on and from 02.05.2008. The blockade and barricade in front of the factory gate is continuing, as a result finished goods and other material lying inside the factory could not be removed. All finished goods outside the factory have been sold.

 

During the year Rs 45.300 Millions were recovered against old outstanding while sale was of Rs.3.500 Millions only.

 

HINDUSTHAN HEAVY CHEMICALS SECTION

 

The production figures of the Section were as under:

 

Production                     2009-10        2008-09

 

Caustic Soda Lye       11,663 MT     11,737 M.T.

Sulphuric Acid            19,061 MT     19,139 M.T.

Hydrogen Gas           7,53,453 M3   8,18,882 M3

 

Demand for Caustic Soda was subdued during the year due to slow down in Aluminium sector.  However, there was improvement in demand for joint products - Chlorine and Hydrochloric Acid - towards the end of the year. Production of Caustic Soda was affected due to frequent breakdowns and power trippings. Production of Hydrogen Gas was lower due to lesser  demand from  Vanaspati  Industry  in  the first half  of  the  year  but  improved considerably towards end of the year.

 

The Section continues to enjoy certificates for Quality and Environment management under ISO-9001-2000 and ISO-14001-2004.

 

The Section takes various measures on its own and also in collaboration with various government agencies for improving awareness of environment and safety.

 

Relations with employees continue to be cordial.

 

 

FIXED ASSETS

·     Freehold Land

·         Buildings

·         Railway Siding

·         Plant and Machinery

·         Electric Power Sub-Station at Nangi

·         Furniture

·         Fixture

·         Office Equipment

·         Vehicles.

·         Leasehold Land

·         Software Acquired (intangible)

·         Livestock

 

WEBSITE DETAILS:

 

History:

 

The Company is a well-diversified entity in the fields of Cement, Tyre, Rayon Yarn, Transparent Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e. Cement and Tyres.


In Spun Pipes and Foundries, a unit of the Company, work suspended from 2nd May, 2008 still commences till further notice.


The Company as of now is listed on three major Stock Exchanges in India i.e. Bombay Stock Exchange Limited, Mumbai, Calcutta Stock Exchange Association Limited, Kolkata and National Stock Exchange of India Limited, Mumbai and at the Societe de la Bourse de Luxembourg, Luxembourg.

 

Growth

 

The First Plant for manufacturing of rayon yarn was established at Tribeni, District Hooghly, West Bengal and the same was commissioned in December, 1959 and the second plant was commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per annum (mtpa) of rayon yarn.This Unit has 6,500 metric tons per annum (mtpa) capacity as on 31.3.2008.

 
The plant for manufacturing of transparent paper was also set up at the same location at Tribeni, District Hooghly, West Bengal, in June, 1961. It has the annual capacity to manufacture 3,600 metric tons per annum (mtpa) of transparent paper.

 
The Company diversified into manufacturing of cast iron spun pipes and pipe fittings at Bansberia, District Hooghly, West Bengal, with a production capacity of 45,000 metric tons per annum (mtpa) of cast iron spun pipes and pipe fittings in December, 1964.

 
The Company subsequently diversified into the manufacturing of Cement and in 1969 established its first cement plant under the name 'Kesoram Cement' at Basantnagar, Dist. Karimnagar (Andhra Pradesh) and to take advantage of favourable market conditions, in 1986 another cement plant, known as 'Vasavadatta Cement', was commissioned by it at Sedam, Dist. Gulbarga (Karnataka). The cement manufacturing capacities at both the plants was augmented from time to time according to the market conditions and as on 31.3.2008 have annual cement manufacturing capacities of 1.2 million metric tons and 4.1 million metric tons respectively.

 
The Company in March 1992, commissioned a plant at Balasore known as Birla Tyres in Orissa, for manufacturing of 1000000 mtpa automotive tyres and tubes in the first phase in collaboration with Pirelli Limited, U.K., a subsidiary company of the world famous Pirelli Group of Italy - a pioneer in production and development of automotive tyres in the world. The Company as on 31.3.2008 had the manufacturing capacities of 2.1 million tyres, 1.4 million tubes and 1.1 million flaps per annum in the said Plant.


It has small manufacturing capacities of various Chemicals at Kharda in the State of West Bengal also. It has the annual manufacturing capacities of 12410 mtpa of Caustic Soda Lye, 5045 mtpa of Liquid Chlorine, 6205 mtpa of Sodium Hypochlorite, 8200 mtpa of Hydrochloric Acid, 3200 mtpa of Ferric Alum, 18700 mtpa of Sulphuric Acid and 1620000 m3pa of purified Hydrogen Gas.

 

Future

 

A further expansion upto 1.65 million tons of cement per annum in Vasavadatta Cement at Sedam in Karnataka at the same site is in progress, with a Captive Power Plant, involving a capital expenditure of about Rs.5500 millions.

 
Further, after augmentation of the existing capacity of Tyre Plant at Balasore in Orissa, which has the total capacity of 252 metric tons per day as on date, the Board has sanctioned setting - up of a Greenfield Project of 257 metric tons per day capacity in the State of Uttarakhand with a capex of about Rs.7600 millions. The work on which is in progress and the commercial production of the first phase of 70 metric tons per day has started in May, 2008. The total expansion of the said Haridwar Project should be in place by the 3rd quarter of 2008 - 09.

The Board in principal has further approved an expansion at the same site i.e Uttarakhand  for radial tyres with 100 metric tons per day capacity and bias tyres with 125 metric tons per day capacity involving an estimated aggregate capital outlay of about Rs.8400 millions. The project is likely to start commercial production by end 2009.

 

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND THE HALF YEAR ENDED 30.09.2010

(Rs. in millions)

Sl. No.

Particulars

Three Months ended
30-9-2010
(Unaudited)

Six
Months ended
30-9-2010
(Unaudited)

1.

 

 

 

 

 

a.

Net Sales/Income from Operations

Note 1

12718.900

27670.600

 

b.

Other Operating Income

Note 8

626.200

788.200

 

Total

 

13345.100

28458.800

2.

Expenditure

 

 

 

 

a.

(Increase) /Decrease in stock in trade and work in progress

 

(1322.900)

(2222.400)

 

b.

Consumption of Raw Materials

 

7922.900

15962.200

 

c.

Purchase of traded goods

 

62.800

141.400

 

d.

Employee Cost

 

673.500

1285.800

 

e.

Depreciation (Net of Transfer from Revaluation Reserve)

 

640.000

1271.100

 

f.

Power and Fuel

 

1791.500

3637.100

 

g.

Excise Duty

 

826.100

1798.600

 

h.

Packing and Carriage

 

1230.900

2442.700

 

i.

Other Expenditure

 

1600.500

3283.700

 

Total

 

13425.300

27600.200

3.

Profit / (Loss) from Operations before Other Income, Interest and Exceptional Items (1 - 2)

 

(80.200)

858.600

 

 

 

 

 

4.

Other Income

 

176.600

206.000

 

 

 

 

 

5.

Profit / (Loss) before Interest and Exceptional Items (3 + 4)

 

96.400

1064.600

 

 

 

 

 

6.

Interest

 

572.800

1024.800

 

 

 

 

 

7.

Profit / (Loss) after Interest but before Exceptional Items (5 - 6)

 

(476.400)

39.800

 

 

 

 

 

8.

Exceptional items

 

-

-

 

 

 

 

 

9.

Profit / (Loss) from Ordinary Activities before tax (7 + 8)

 

(476.400)

39.800

10.

Tax Expense

 

 

 

 

a.

Provision for Current Tax

Note 2

(59.600)

0.400

 

b.

Provision for Deferred Tax charge / (credit)

 

(90.900)

9.100

 

c.

Provision for Fringe Benefit Tax (Net)

 

-

-

11.

Net Profit / (Loss)from Ordinary Activities after tax (9 - 10)

 

(325.900)

30.300

 

 

 

 

 

12.

Extraordinary Items (net of tax expense Rs. Nil)

 

-

-

 

 

 

 

 

13.

Net Profit / (Loss) for the period (11 - 12)

 

(325.900)

30.300

14.

Paid-up Ordinary Share Capital (Face Value Rs.10.00 per share)

 

457.400

457.400

15.

Reserves excluding Revaluation Reserve as per Balance Sheet of previous accounting year

 

 

 

16.

Earnings Per Share (EPS)

 

 

 

 

a.

Basic and Diluted EPS before Extraordinary Items (Rs.)

 

(7.12)

0.66

 

b.

Basic and Diluted EPS after Extraordinary Items (Rs.)

 

(7.12)

0.66

17.

Debt Service Coverage Ratio

Note 12

 

2.28

 

 

 

 

 

18.

Interest Service Coverage Ratio

Note 12

 

2.28

 

 

 

 

 

19.

Public Shareholding

 

 

 

 

–

Number of shares

 

2,67,01,709

2,67,01,709

 

–

Percentage of shareholding

 

58.37%

58.37%

20.

Promoters and
Promoter Group
Shareholding

 

 

 

 

a.

Pledged /Encumbered

 

 

 

 

 

-

Number of shares

 

Nil

Nil

 

 

-

Percentage of shares (as a % of the total shareholding of
promoter and promoter group)

 

Nil

Nil

 

 

-

Percentage of Shares (as a % of the total share capital of the company)

 

Nil

Nil

 

b.

 

Non encumbered

 

 

 

 

 

-

Number of shares

 

1,19,99,734

1,19,99,734

 

 

-

Percentage of shares (as a % of the total shareholding of
promoter and promoter group)

 

100%

100%

 

 

-

Percentage of Shares (as a % of the total share capital of the company)

 

26.23%

26.23%

 

 

REPORT ON SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

 

Particulars

Three Months
ended
30-9-2010
(Unaudited)

Six
months
ended
30-9-2010
(Unaudited)

1.

Segment Revenue

 

 

 

a.

Tyres

7884.500

17329.800

 

 

 

 

 

 

b.

Cement

4146.100

9022.400

 

 

 

 

 

 

c.

Rayon, T.P. and Chemicals

717.800

1384.900

 

 

 

 

 

 

d.

Unallocated

--

--

 

 

 

 

 

TOTAL

12748.400

27737.100

 

Less : Inter segment revenue (at cost)

29.500

66.500

 

 

 

 

 

Net Sales / Income from Operations

12718.900

27670.600

2.

Segment Results Profit / (Loss) before Tax and Interest

 

 

 

a.

Tyres

241.200

288.600

 

b.

Cement

(274.300)

753.700

 

c.

Rayon, T. P. and Chemicals

6.600

49.200

 

d.

Unallocated

(5.100)

(9.400)

 

TOTAL

(31.600)

1082.100

 

Less :

 

 

 

a.

Interest

572.800

1024.800

 

 

 

 

 

 

i.

Other Un-allocable Expenditure

48.600

223.500

 

ii.

Other Un-allocable Income

176.600

206.000

 

b.

Other Un-allocable Expenditure (net-off other Un-allocable Income) [(i)-(ii)]

(128.000)

17.500

 

Total Profit / (Loss) before Tax

(476.400)

39.800

3.

Capital Employed (Segment Assets-Segment Liabilities)

 

 

 

a.

Tyres

37093.100

37093.100

 

b.

Cement

15862.300

15862.300

 

c.

Rayon, T.P. and Chemicals

1099.200

1099.200

 

d.

Unallocated

60.000

60.000

 

TOTAL

54114.600

54114.600

 

Notes:

 

1. Sales are inclusive of Excise duty.

2. Provision for Current Tax for the half year ended 30th September, 2010 is net of MAT credit of Rs.7.500 millions as the Company is confident to generate sufficient taxable income in few years available for set off of the aforesaid credit within stipulated time (half year ended 30th September, 2009 - Rs.110.000 millions; year ended 31st March, 2010 - Rs.445.000 millions).

3. Period-end mark-to-market loss (net) recognised in respect of outstanding derivative contracts is Rs.77.800 millions (half year ended 30th September, 2009 - Rs.27.300 millions, year ended 31st March, 2010 - Rs.14.300 millions).

4. Profit for the current quarter and half year vis-à-vis the corresponding previous periods is affected primarily due to decrease in cement prices in southern India and steep hike in rubber prices in tyre unit.

5. The Company's Spun Pipes and Foundries Unit continues to be under suspension of work (effective 2nd May, 2008).

6. Pending disposal (consented by the shareholders in March, 2006) of the Company's Hindusthan Heavy Chemicals Unit, the revenue / expenses of the unit (insignificant in terms of the Company's total revenue / expenses) have been and will be included in these and subsequent results till its disposal.

7. The lockout at Birla Tyres, Balasore unit of the company effective from 16th July,2010 was lifted on 3rd August, 2010.

8. The operations at Birla Tyres, Uttrakhand unit of the Company had to be suspended between 19th September, 2010 to 24th September, 2010 on account of unprecedented flood in that region. As a result of such flood certain inventory items got damaged for which related insurance claims of Rs.481.600 millions have been lodged and the Company within the period has also received Rs.40.000 millions as on account payment. These claims has been recognised as "Other Operating Income" receivable with an appropriate adjustment to the related inventories pending settlement of the same by the insurance company. Adjustment, as may be required and which are not currently ascertainable, will be made on final settlement of the same. Further, the Company has lodged another claim of Rs.220.000 millions on an estimated basis for damages made to certain plant and machinery items, boundary walls, roads etc. This claim together with related adjustments to the book value of respective fixed assets will be accounted for on settlement.

9. The time frame for completion of expansion of Vasavadatta cement unit of the Company is being extended beyond 2012-13.

10. The number of investor complaints received, disposed off and lying unresolved at the quarter ended 30th September, 2010 are as under:

 

Pending at the beginning of the quarter

—

Nil

Received during the quarter

—

57

Disposed off during the quarter

—

57

Lying unresolved at the end of quarter

—

Nil

 

11. Statement of Assets and Liabilities as on 30.09.2010

12. The formulae used in calculation of debt service coverage ratio and interest service coverage ratio are as follows:

 

a)

Debt service coverage ratio

:

Profit before interest, depreciation and tax / (interest + principal repayment)

b)

Interest service coverage ratio

:

Profit before interest, depreciation and tax / Interest.

 

While calculating the above ratios, debt which has been refinanced has not been considered as repayment of principal.

13. The Board of Directors in its meeting of 10th November, 2010 declared interim dividend at the rate of Rs 2.25 per share.

14. Comparative figures have been regrouped or rearranged where considered necessary.

15. The Statutory Auditors of the Company have carried out the limited review of the above unaudited financial results for the quarter and half year ended 30th September, 2010 in terms of Clause 41 of the Listing Agreement.

 

(Rs. in millions)

 

Particulars

 

As at
30-09-2010

(Unaudited)

SOURCES OF FUNDS:

 

Shareholders funds

 

(a) Share Capital

45.74

(b) Reserves and Surplus

1,497.27

Loan Funds

3,974.86

Deferred Tax Liabilities (net)

329.35

Total                                                          

5,847.22

 

 

APPLICATION OF FUNDS:

 

Fixed Assets

4,031.96

Investments

64.69

Current asset , Loans and Advances

 

(a) Inventories

1,226.64

(b) Sundry Debtors

665.47

(c) Cash and Bank Balances

76.91

(d) Other Current assets

76.01

(e) Loans and advances

392.17

 

2,437.20

Less: Current Liabilities and Provisions

 

(a) Current Liabilities

685.71

(b) Provisions

0.92

Net Current Assets

1,750.57

Total

5,847.22

 

 

 

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.72

UK Pound

1

Rs.71.95

Euro

1

Rs.64.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

69

 

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

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

-

NB

                                       New Business

-

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.