MIRA INFORM REPORT

 

 

Report Date :

10.06.2011

 

IDENTIFICATION DETAILS

 

Name :

ULTRATECH CEMENT LIMITED (w.e.f. 14.10.2004)

 

 

Formerly Known As :

ULTRATECH CEMCO LIMITED

 

 

Registered Office :

B Wing, 2nd Floor, Ahura Centre, Mahakali Caves Road, Andheri [East], Mumbai – 400093, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

24.08.2000

 

 

Com. Reg. No.:

11-128420

 

 

Capital Investment / Paid-up Capital :

Rs. 1244.900 millions

 

 

CIN No.:

[Company Identification No.]

L26940MH2000PLC128420

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMU03782C

 

 

PAN No.:

[Permanent Account No.]

AAACL6442L

 

 

Legal Form :

A Public Limited Liability Company. The company’s Share are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturers, Dealers and Sellers of Cement, Clinker, Lime, Plasters, Whiting, Clax, Granule, Sand Coke, Fuel, Artificial Stone, Builders requisites and Convenience of all kinds and any products or things which may be manufactured out of or with cement or in which the use of cement may be made.

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa  (74)

 

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 184346000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

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

 

It can be regarded as a promising business partner in a medium to long-run.

 

NOTES :

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

 

 

INFORMATION DENIED BY

 

Name :

Mr. Dinesh

Designation :

Accounts

Date :

09.06.2011

 

 

LOCATIONS

 

Registered Office :

B Wing, 2nd Floor, Ahura Centre, Mahakali Caves Road, Andheri [East], Mumbai – 400093, Maharashtra, India

Tel. No.:

91-22-66917800

Fax No.:

91-22-66928109

E-Mail :

sharesutcl@adityabirla.com

csutcl@adityabirla.com

kamal.r@adityabirla.com

Website :

http://www.ultratechcement.com

 

 

Central Marketing Office:

A Wing, Ahura Centre, 1st Floor, Mahakali Caves Road, Near M.I.D.C office,  Andheri (East), Mumbai 400 093

Tel. No.:

91-22-66917360 / 66928400 / 66917274

Fax No.:

91-22-66917361 / 66928401 / 66927250

 

 

Zonal marketing offices Located at:

Ahmedabad

301/302, III Floor, High Street – 1, Opposite Law Gardens, Ellis Bridge, Ahmedabad – 380004

Tel No.: 91-79-66076000

Fax No.: 91-79-66076005

 

 

 Bangalore

No. 45, “Industry House”, 6th floor, Race Course Road, Bangalore – 560 001

Tel No. : 91-80-22250748/ 22250749/ 22356574

Fax No. :  91-80-22204839

 

 

Chennai

23, Anna Salai, Little Mount, (Above Swaraj Mazda Showroom) Saidapet,  Chennai – 600 015

Tel No. :  91-44-42118962/ 63

Fax No. : 91-44-42118982

 

 

Hyderabad

503, Aditya Trade Centre, 5th Floor Aditya Enclave Road, Ameerpet, Hyderabad – 515002

Tel No.:  91-40-66430430

Fax No.: 91-40-66430440

 

 

Kolkata

“Constantia office Complex” 7th Floor, 11, Dr. U.N. Brahamachari Street, Kolkata – 700 017

Tel No. : 91-33-30214100/ 30214400

Fax No. : 91-33-30214490/ 30214590/ 30214390

 

 

NEW DELHI

12th Floor, Ambadeep Building, K.G. Marg, Connaught Place, New Delhi – 110 001

Tel No. : 91-11-43573200/ 23315007/ 10

Fax No. : 91-11-23315000

 

 

Factory 1 :

Andhra Pradesh,  Cement Works,

Village: Bhogasamudram, Tadipatri, Anantapur District, Andhra Pradesh -   515415

 

Tel. No.:

91-8558-288841 / 01

 

Fax No.:

91-8558-288821 / 31/ 59

 

 

 

 

Factory 2 :

Awarpur, Cement Works,

P.O. Awarpur Cement Project, Taluka: Korpana, District Chandrapur - 442917, Maharashtra

 

Tel. No.:

91-7173-266322/ 6323

 

Fax No.:

91-7173-266339

 

 

 

 

Factory 3 :

Gujarat ,Cement Works,

Village: Kovaya, Taluka: Rajula City, District Amreli - - 365541, Gujarat

Tel. No.:

91-2794-283056 / 3034

Fax No.:

91-2794-283007 3036

 

 

 Factory 4 :

Hirmi , Cement Works,

P. O. Hirmi, Taluka: Simga, Via: Neora, District Raipur - 493195, Chattisgarh

Tel. No.:

91-7726-281269 / 1217 / 218 / 221

Fax No.:

91-7726-281268 / 1572

 

 

Factory 5 :

Jafrabad Works, Cement Works

P B No. 10,  Village: Babarkot, Taluka: Jafrabad, District Amreli -365540, Gujarat

Tel. No.:

91-2794-245356 / 103

Fax No.:

91-2794-245110

 

 

Factory 6 :

Arakkonam, Cement Works

Chetteri Village, Arakkonam, District Vellore - 631003, Tamilnadu

Tel. No.:

91-4177-329504 / 293291/ 29311

Fax No.:

91-4177-233585 / 293810

 

 

Factory 7 :

Jharsuguda, Cement Works,

Near Dhutra Railway Station, P.O. Arda, District Jharsuguda, Orissa - 768202

Tel. No.:

91-6645-283161/ 283104/ 105

Fax No.:

91-6645-283108/ 110

 

 

Factory 8 :

Magdalla, Cement Works

Near Magdalla Port, Dumas Road, Surat - 395007, Gujarat, India

Tel. No.:

91-261-2721318/ 5175/ 176

Fax No.:

91-261-2726952

 

 

Factory 9 :

Ratnagiri, Cement Works

MIDC Industrial Estate, Zadgaon Block, Ratnagiri – 415639,Maharashtra

Tel. No.:

91-2352-223679

Fax No.:

91-2352-221807

 

 

Factory 10 :

West Bengal, Cement Works,

Near EPIP plot, Muchipara, Post: Rajbandh, Durgapur -  713212 , West Bengal, India

Tel. No.:

91-343-2533029/ 3030/ 4324/ 3361

Fax No.:

91-343-2533358

 

 

Factory 11 :

Ginigera, Cement works

Tel. No.:

Ginigera Grinding Unit, Ginigera Village, Koppal Gangavathi Road, Koppal Taluq and District, Karnataka

Fax No.:

91-8539-286575/ 201452

E-Mail :

91-8539-286574

 

 

DIRECTORS

 

As on 29.07.2010

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Industrialist and Director

Date of Birth/Age:

14.06.1967

Date of Appointment:

14.05.2004

Qualification:

ACA, MBA

 

 

Name :

Mr. G. M. Dave

Designation :

Advocate and Corporate Advsior and Director

Date of Birth/Age:

12.07.1938

Date of Appointment:

07.07.2006

Qualification:

M. Com, LLB, CAIIB

 

 

Name :

Mrs. Rajashree Birla

Designation :

Director

 

 

Name :

Mr. R C Bhargava

Designation :

Director

 

 

Name :

Mr. Yashwant M. Deosthalee

Designation :

Director

Address :

1001, Prabhu Kutir, 15 Altamount Road, Mumbai – 400 026, Maharashtra

Date of Birth/Age :

6th September, 1946

Date of Appointment :

24th August, 2000

 

 

Name :

Mr. S Misra

Designation :

Managing Director

 

 

Name :

Mr. V T Moorthy

Designation :

Director

 

 

Name :

Mr. J P Nayak

Designation :

Director

Address :

Gilder House, 67-F,Bhuleshwar Desai Road, Mumbai - 400 026, Maharashtra

Date of Birth/Age :

13th November, 1943

Date of Appointment :

24th August, 2000

 

 

Name :

Mr. S Rajgopal

Designation :

Nominee (UTI)

 

 

Name :

Mr. D D Rathi

Designation :

Company Executive and Director

Address :

Flat No. 82, Jolly Maker Apartments-II, Cuffe Parade, Mumbai – 400 005, Maharashtra

Date of Birth/Age :

11.01.1947

Date of Appointment :

06.07.2004

Qualification:

B. Com., F.C.A.

 

 

Name :

Mr. N J Jhaveri

Designation :

Additional Director

  

 

Name :

Mr. S B Mathur

Designation :

Company Executive and  Director

Date of Birth/Age:

11.10.1944

Date of Appointment:

10.09.2008

Qualification:

B. Com., F.C.A., ICWA Part I, and II London

 

 

KEY EXECUTIVE

 

Name :

Mr. K. C. Birla

Designation :

Executive President and Chief Financial Officer

 

 

Name :

Mr. S. K. Maheshwari

Designation :

Chief Manufacturing Officer

 

 

Name :

Mr. O. P. Puranmalka

Designation :

Group Executive President and Chief Marketing Officer

 

 

Name :

Mr. S. K. Chatterjee

Designation :

Company Secretary

E-Mail :

sanjeeb.chatterjee@adityabirla.com

 

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Chairman

 

 

Name:

Amarchand and Mangaldas and Suresh A. Shroff and Company

Designation:

Advocates and Solicitors, Mumbai

 

 

Name:

R K Shah

Designation:

Group Executive President and Chief Manufacturing Officer

 

 

Name:

C B Tiwari

Designation:

Chief People Officer

 

 

Unit Heads:

Name : K Y P Kulkarni

Designation : Kovaya and Jfrabad (Gujarat)

 

Name : S Kumar

Designation : Hirmi (Chattisgarh)

 

Name : P S. Mazumdar

Designation : Tadipatri (Andhra Pradesh)

 

Name : B Singh

Designation : Awarpur (Maharashtra)

 

 

Name:

Mr. J Bajaj

Designation:

Executive President (Finance)

 

 

Name:

Mr. B Agarwal

Designation:

Joint President (F and C)

 

 

MAJOR SHAREHOLDERS

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

77,009

0.03

Bodies Corporate

173,528,048

64.68

Sub Total

173,605,057

64.71

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

173,605,057

64.71

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

4,155,407

1.55

Financial Institutions / Banks

189,993

0.07

Insurance Companies

16,996,799

6.34

Foreign Institutional Investors

35,471,839

13.22

Sub Total

56,814,038

21.18

(2) Non-Institutions

 

 

Bodies Corporate

14,049,277

5.24

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Millions

19,218,679

7.16

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions

2,078,671

0.77

Any Others (Specify)

2,506,654

0.93

Non Resident Indians

955,522

0.36

Foreign Corporate Bodies

1,499,356

0.56

Foreign Nationals

51,776

0.02

Sub Total

37,853,281

14.11

Total Public shareholding (B)

94,667,319

35.29

Total (A)+(B)

268,272,376

100.00

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

-

-

(1) Promoter and Promoter Group

2,744,168

-

(2) Public

3,025,121

-

Sub Total

5,769,289

-

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

274,041,665

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers, Dealers and Sellers of Cement, Clinker, Lime, Plasters, Whiting, Clax, Granule, Sand Coke, Fuel, Artificial Stone, Builders requisites and Convenience of all kinds and any products or things which may be manufactured out of or with cement or in which the use of cement may be made.

 

 

 Products :

Item Code

Product Description

252329.01

Portland Cement

 

 

 

PRODUCTION STATUS (As on 31.03.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Cement

Lakh Tonnes

NA

231.00

176.39

 

Licensed capacity not indicated due to abolition of industrial licenses as per Notification No. 477 (E) dated July 25, 1991 issued under The Industries (Development and Regulation) Act, 1951.

 

 

GENERAL INFORMATION

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

Not Available

 

 

Facilities:

Secured Loan

As on 31.03.2010 in Millions

As on 31.03.2009 in Millions

Non-Convertible Debentures

5363.300

8352.900

Other Loans

 

 

Foreign Currency Loan

2851.600

2851.600

 

 

 

Loans form Banks:

 

 

Cash Credits / Working Capital Borrowings from Banks Secured by Hypothecation of Stocks and Book Debts of the Company

327.000

553.500

Total

8541.900

11758.000

 

 

 

Unsecured Loan

As on 31.03.2010 in Millions

As on 31.03.2009 in Millions

Short term :

 

 

From Banks

134.700

2465.400

 

 

 

Long term :

 

 

From Banks (Due within a year Rs. 1234.800 Millions; (Previous Year Rs. NIL.))

3209.800

3352.600

Sales Tax Deferment Loans (Due within a year Rs. 5.700 Millions; (Previous Year Rs. 5.700 Millions))

4158.800

3840.300

Total

7503.300

9658.300

 

 

 

Banking Relations :

Good

 

 

Auditors :

S B Billimoria and Company /G P Kapadia and Company

Chartered Accountants 

 

 

Name :

Deloitte Haskins and Sells,

Chartered Accountants

Address:

Mumbai

 

 

Name :

G P Kapadia and Company

Chartered Accountants

Address:

Mumbai

 

 

 

 

Associates/Subsidiaries Company

·         Narmada Cement Company Limited (NCCL)

·         Dakshin Cement Limited

·         Sun God Trading And Investment Limited

·         Samruddhi Swastik Trading And Investment Limited (SSITL)

·         Shree Digvijay Cement Company Limited (SDCCL)

·         Harish Cement Limited (HCL)

·         Grasim Bhiwani Textiles Limited (GBTL)

·         Vikram Sponge Iron Limited (VSIL)

·         Ultra Tech Ceylinco (Private) Limited (AUCPL)

·         Dakshin Cements Limited (DCL)

 

 

Holding Company :

·         Grasim Industries Limited

 

 

Joint Venture ;

·         Madanpur (North) Coal Company (Private) Limited

 

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

130,000,000

Equity Shares

Rs. 10 each/-

Rs. 1300.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

124,487,079

Equity Shares

Rs. 10 each/-

Rs. 1244.900 millions

 

Note:

 

(a) 99,521,437 Equity shares of Rs. 10 each issued as fully paid-up for acquiring the Cement business pursuant to the Scheme of Arrangement with Larsen and Toubro without payment being received in cash (Previous Year Rs. 124.485 Millions)

 

b) 87,258 Equity shares of Rs 10 each issued as fully paid up to shareholders of erstwhile Narmada Cement Company Limited (NCCL) pursuant to the Scheme of Amalgamation without payment being received in cash.  (Previous Year Rs. 99.521 Millions)

 

(c) 68,192,294 shares are held by Grasim Industries Limited (Holding Company), (Previous Year 63,114,691) and Nil shares are held by Samruddhi Swastik Trading and Investment Limited (Subsidiary Company of Grasim Industries Limited), (Previous Year 5,077,603)

 

 

As on 29.07.2010

 

 

Authorised Capital : Rs. 2800.000 Millions

 

 

 

Issued, Subscribed & Paid-up Capital : Rs. 2740.459 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

1244.900

1244.900

1244.900

2] Share Application Money

0.000

0.000

0.000

3] Employees Stock Options Outstanding

19.900

16.800

7.700

4] Reserves & Surplus

44821.700

34759.300

25717.300

5] Accumulated Losses)

0.000

0.000

0.000

NETWORTH

46086.500

36021.000

26969.900

LOAN FUNDS

 

 

 

1] Secured Loans

8541.900

11758.000

9826.600

2] Unsecured Loans

7503.300

9658.300

7578.400

TOTAL BORROWING

16045.200

21416.300

17405.000

DEFERRED TAX LIABILITIES

8307.300

7229.300

5423.500

 

 

 

 

TOTAL

70439.000

64666.600

49798.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

49416.800

46356.900

25004.600

Capital work-in-progress

2593.700

6772.800

22831.500

 

 

 

 

INVESTMENT

16695.500

10348.000

1709.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

 

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
8217.000
6919.700

6097.600

 

Sundry Debtors
2158.300
1861.800

2166.100

 

Cash & Bank Balances
837.300
1044.900

1006.900

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
3511.300
3789.700

3768.300

Total Current Assets
14723.900
13616.100

13038.900

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
6815.100
7393.900

7764.000

 

Current Liabilities
4565.700
3815.300

3766.100

 

Provisions
1610.100
1218.000

1255.500

Total Current Liabilities
12990.900
12427.200

12785.600

Net Current Assets
1733.000
1188.900

253.300

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

70439.000

64666.600

49798.400

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

70496.800

63830.800

55087.800

 

 

Interest and Dividend Income

562.100

451.500

374.700

 

 

Other Income

665.000

606.900

632.400

 

 

TOTAL                                    

71723.900

64889.200

56094.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

9606.100

6849.600

5367.700

 

 

Manufacturing Expenses

21521.100

24201.700

18288.700

 

 

Purchase of Finished Products

637.400

195.000

136.800

 

 

Payments to and Provisions for Employees

2506.200

2176.700

1675.900

 

 

Selling, Distribution, Administration and Other Expenses

16533.000

14337.900

12760.300

 

 

Increase/Decrease in Stock

22.700

(887.600)

(266.300)

 

 

TOTAL                                    

50826.500

46873.300

37963.100

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

20897.400

18015.900

18131.800

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

1175.200

1255.100

823.100

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION                                  

19722.200

16760.800

17308.700

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

3880.800

3230.000

2372.300

 

 

 

 

 

 

 

15841.400

13530.800

14936.400

 

 

 

 

 

Less

CAPTIVE CONSUMPTION OF CEMENT (NET OF EXCISE DUTY RS. 34.600 MILLIONS (PREVIOUS YEAR RS. 64.800 MILLIONS)

(40.200)

(83.800)

(133.700)

 

 

 

 

 

 

PROFIT BEFORE TAX  

15881.600

13614.600

15070.100

 

 

 

 

 

Less

TAX                                                                 

4944.200

3844.400

4994.000

 

 

 

 

 

 

PROFIT AFTER TAX                

10932.400

9770.200

10076.100

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

24384.000

15981.200

7751.600

 

 

 

 

 

Less

APPROPRIATIONS

8022.700

1367.400

1846.500

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

27293.700

24384.000

15981.200

 

 

 

 

 

 

Earnings Per Share (Rs.)

87.82

77.63

80.09

 

 

QUARTERLY RESULTS

 

                                                                                                                                                          (Rs. in Millions)

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

18096.700

32445.000

37408.700

45559.300

Total Expenditure

13841.300

28069.200

30074.400

34691.700

PBIDT (Excl OI)

4255.400

4375.800

7334.300

10867.600

Other Income

285.100

385.900

349.900

436.300

Operating Profit

4540.500

4761.700

7684.200

11303.900

Interest

278.600

845.100

818.000

829.400

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

4261.900

3916.600

6866.200

10474.500

Depreciation

1015.500

2183.800

2191.100

2266.900

Profit Before Tax

3246.400

1732.800

4675.100

8207.600

Tax

819.100

575.100

1485.500

939.900

Provisions and Contingencies

0.000

0.000

0.000

0.000

Profit After Tax

2427.300

1157.700

3189.600

7267.700

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

2427.300

1157.700

3189.600

7267.700

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
15.24

15.06

17.96

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
22.52

21.32

27.34

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
24.75

22.69

39.61

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.34

0.38

0.56

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.63

0.94

1.12

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.13

1.09

1.02

 

 

  

LOCAL AGENCY FURTHER INFORMATION

 

Sundry Creditors

                                                                                                                            (Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

 

 

 

Dues of Micro, Small and Medium Enterprises

1.300

8.600

2.100

Others

6813.800

7385.300

7755.900

Parent Company and Fellow Subsidiaries

-

-

6.000

 

 

HISTORY

 

Subject, a Grasim subsidiary was incorporated in 24th August 2000 as L and T Cement Limited, has an annual capacity of 17 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana Cement. As part of the eighth biggest cement manufacturer in the world, UltraTech Cement has five integrated plants, five grinding units as well as three terminals of its own (one overseas, in Colombo, Sri Lanka). All the plants have ISO 9001 certification, and all but one have ISO 14001 certification. While two of the plants have already received OSHAS 18001 certification. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's strategy for growth. The Grasim acquired 10 per cent stake in L and T in the year of 2001. During the same year the Durgapur grinding unit was came to existence. The Company bagged Indo-German Greentech Environment Excellence Award from the Greentech Foundation, New Delhi during the period of 2000-2001. The value of stake increased to 15.3 per cent by October 2002. The Grasim Board approved an open offer for purchase of up to 20 per cent of the equity shares of Larsen and Toubro Limited (L and T) during the year 2002, in accordance with the provisions and guidelines issued by the Securities and Exchange Board of India (SEBI) Regulations, 1997. Again the Grasim increased its stake in L and T to 14.15 per cent in 2002 and the Arakkonam grinding unit was started. During the year 2003, the board of Larsen and Toubro Limited (L and T) decided to demerger of its cement business into a separate cement company (Cem Co). Grasim decided to acquire an 8.5 per cent equity stake from L and T and then made an open offer for 30 per cent of the equity of Cem Co, to acquire management control of the company. The Company received State and Zonal level I prize for overall performance in Mines safety 2003-2004 Energy efficient unit award from CII. In 2004, L and T completed the implementation process to demerger of the cement business and the Grasim also completed open offer, with the latter acquiring controlling stake in the newly formed company UltraTech. Grasim acquired management control in July 2004 and the name of the company was changed to Subject with in 14th October 2004. The Company enhanced its capacity utilisation across its plants. Cement is an energy intensive industry with coal and power being the major cost contributors. Use of alternative fuels auctioned, while over Rs.6000.000 millions has been committed for the installation of captive power plants throughout the year 2004-05. Narmada Cement Company Limited (NCCL) was amalgamated with the company in May of the year 2006. With an eye on the growing Ready Mix Concrete business, the Company has commenced setting up Ready Mix Concrete plants in various places in the country during the year 2007. The Captive Power Plants being set up at the Company's Units in Andhra Pradesh, Chattisgarh and Gujarat, are on track. It may be to go on stream between FY08 and FY09.

 

OVERVIEW AND REVIEW OF OPERATIONS

 

The impact of the global financial crises continued to be felt in the financial year under review. The Indian economy witnessed challenging times as a result of high cost of credit and fall in capital markets that stoked the sluggishness in the economy. However, the stimulus packages announced by the Government together with the

initiatives for boosting rural development, infrastructure and housing aided in the revival of the economy. The cement industry also benefited on account of the measures adopted by the Government. This, together with some delay in materialisation of new capacities resulted in the ndustry posting healthy growth.

 

Against this background, the Company has produced 17.64 MMT of cement (15.87 MMT). Effective capacity utilisation was 88% (96%) on an expanded capacity. The aggregate sales volume at 20.21MMT (18.16 MMT) was higher by 11%.

 

The Company’s gross turnover at Rs. 77291.300 millions was up by 8% compared to Rs. 71604.200 millions  achieved in the previous year. Profit after tax stood at Rs. 10932.400 millions (Rs. 9770.200 million) after providing for depreciation – Rs. 3880.800 millions (Rs. 3230.000 millions) and tax – Rs. 4949.200 millions (Rs. 3844.400 millions). Cash profit was higher at Rs. 15891.200 millions (Rs. 14806.000 millions).

 

Management Discussion and Analysis



OVERVIEW

 

After the marked slowdown in economic growth and the prevailing financial crises during 2008 and 2009, the global economy is now indicating some signs of recovery. Led by the emerging economies, more significantly the Asian economies, an increasing number of countries have begun registering notable recovery. Notwithstanding this, there are concerns that the recovery is uneven and conditions for sustained growth remain fragile. Credit conditions are still tight in major developed economies. Much of the rebound in the real economy is due to the strong fiscal stimulus provided by Governments in a large number of developed and developing countries.

 

The Indian economy, despite witnessing challenging times, fared much better than most of the global economies. The GDP forecast in FY11 is over 8% linked to improved overall performance in all the three components of the

economy viz. agriculture, manufacturing and services.

 

Cement demand grew @12% during H1FY10. However, new capacity additions in the sector resulted in a surplus supply scenario from H2FY10 onwards with a consequent fall in cement realisation and pressure on prices, which is continuing. However, Government efforts on infrastructure development, low cost housing and improving civic and urban amenities will enable the sector grow over 10%.

 

The Company’s efforts were focused on stabilising performance of the expanded capacities. It also continued with initiatives to contain costs, improve productivity and conserve cash. The Company is currently in the midst of a restructuring program

 

PERFORMANCE REVIEW

 Capacity Utilisation

 

 

FY10

FY09

% Change

Installed capacity (MTPA):

 

 

 

Clinker

17.80

17.80

-

Cement

23.10

21.90

5

Production (MMT):

 

 

 

Clinker

15.55

15.07

3

Cement

17.67

15.86

11

clinker capacity utilisation

87%

90%

-

effective capacity utilisation@

88%

96%

-

 

*clinker capacity utilisation based on period of new capacity in operations

 

@ effective capacity utilisation: cement production + clinker sold, based on period of new capacity in operations

 

Sales Volume

 

 

FY10

FY09

% Change

Sales Volume (MMT)

 

 

 

Domestic

 

 

 

Cement

17.26

15.32

13

Clinker

0.52

0.47

11

Total

17.78

15.79

13

Exports

 

 

 

Cement

0.50

0.48

5

Clinker

1.92

1.88

2

Total

2.42

2.36

3

Total Volume

20.21

18.16

11

 

Domestic sales volume rose by 13% over FY09, though total volume was up by 11%.

 

Sales Realisation (Net of Excise Duty)

 

FY10

FY09

% Change

 

 

 

 

Average Realisation (Rs. / MT)

3311

3,349

-1

 

 

 

 

Domestic - Cement

3543

3,522

-

 

 

 

 

Export - Cement

3050

3,100

-1

           - Clinker

1602

2,306

-30

 

 

 

 

 

The markets of South India which account for around 30% of the Company’s total sales volume witnessed a sharp fall in realisation from H2FY10. Despite this, the average domestic sales realisation remained almost flat during the year.

 

On the exports front, on account of the crises in the Middle East, clinker export prices dropped sharply by around 30% - hovering around USD 34/ mt during the year as compared to USD 50/mt in FY09.

 

AWARDS

 

The Company was the recipient of the following awards during the year:

 

  • Top Exporter Award from CAPEXIL for the thirteenth consecutive year;

 

  • Best  Thermal  Energy  Performance  for  the  year  2008-09  in  energy  conservation  and performance for Andhra Pradesh Cement Works  (APCW)  from National Council for Cement and Building Materials;

 

  • Energy efficient unit in energy conservation for APCW from Confederation of Indian Industry;

 

  • First  prize  for  Energy  Conservation  2008-09  for  APCW  from  Non-conventional Energy Development Corporation of Andhra Pradesh;

 

  • First  prize  for mines operations and  maintenance  of  machinery  and overall  performance  in  the  Mines  Safety Week  -  2009  for  APCW  from Directorate General of Mines Safety;

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

(Rs. in Millions)

Particulars

2008-09

2007-08

Sales-tax liability

607.200

513.000

Excise Duty

467.100

273.500

Royalty on Limestone / Marl

410.100

432.700

Customs

01.100

01.100

Others

364.300

318.200

 

 

FIXED ASSETS

 

Tangible Assets

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Railway Sidings

·         Plant and Machinery

·         Furniture and Fixtures

·         Jetty

·         Vehicles

 

Intangible Assets

 

·         Software

 

 

AS PER WEB SITE DETAILS

 

Subject has an annual capacity of 18.2 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC).

 

Subject has five integrated plants, six grinding units and three terminals — two in India and one in Srilanka.

 

UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East.


UltraTech’s subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (Private) Limited.

 

 

UNIQUE PRODUCT MIX

 

UltraTech is India's largest exporter of cement clinker. The company's production facilities are spread across five integrated plants, five grinding units, and three terminals — two in India and one in Sri Lanka. All the plants have ISO 9001 certification, and all but one have ISO 14001 certification. While two of the plants have already received OHSAS 18001 certification, the process is underway for the remaining three. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total exports. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's strategy for growth.

 

UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and Portland blast furnace slag cement

 

·         Ordinary Portland cement

·         Portland blast furnace slag cement

·         Portland Pozzolana cement

·         Cement to European and Sri Lankan norms

Ordinary Portland cement

Ordinary Portland cement is the most commonly used cement for a wide range of applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.


Portland blast furnace slag cement

Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated blast-furnace slag, a nonmetallic product consisting essentially of silicates and alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter colour, better concrete workability, easier finish ability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.



Portland Pozzolana cement

Portland pozzolana cement is ordinary Portland cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or siliceous earths), either together or separately. Portland clinker is ground with gypsum and pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete and mortar.

 

 

press releases

 

26 October 2010



UltraTech Cement announces results for the Quarter ended 30 September 2010

                                  

                                                                                   (Rs. In Millions)

 

30.09.2010

30.09.2009 (LFL)

30.09.2009

Net Sales

32150.000

35380.000

15410.000

PBIDT

4760.000

11840.000

5010.000

PAT

1160.000

6310.000

2510.000

 

UltraTech's performance for the second quarter reflects the first financial results post the amalgamation of Samruddhi Cement Limited with the Company. The results include the performance of Samruddhi with effect from 1 July 2010, which was the Appointed Date for the amalgamation. The results for the corresponding Quarter of FY10 have been re-casted to include Samruddhi's performance for like-for-like comparison and are strictly not comparable with the corresponding period of the previous year.

 

Financials


Net Sales stood at ` 32150.000 millions as compared to 35380.000 Millions in the corresponding period of the previous year. Profit before Interest, Depreciation and Tax is ` 4760.000 Millions while Profit after Tax is ` 1160.000 millions vis-a-vis 11840.000 Millions and ` 6310.000 Millions respectively in the corresponding period of the previous year.

 

The Company produced 8.61 MMT (8.36 MMT) of grey cement. The combined cement and clinker sales of grey cement was 9.10 MMT (8.64 MMT).

 

A subdued demand on account of monsoons, capacity additions, fall in realisation coupled with increase in costs has impaired the Company's performance. The prices of imported coal rose from US$ 76/Mt to US$ 110/Mt substantially escalating the Company's energy cost. These factors have put the Company's margins under pressure.

 

Scheme of Amalgamation and acquisition of ETA Star Cement in UAE, Bahrain and Bangladesh

The Scheme of Amalgamation of Samruddhi Cement Limited ("Samruddhi") with the Company ("the Scheme") has become effective from 1 August 2010 and is operative from the Appointed Date i.e.1 July 2010.

 

In terms of the Scheme, 14,95,33,469 equity shares of ` 10 each have been allotted to shareholders of Samruddhi including the Custodian(s) of the Global Depository Receipts (GDRs).

 

The Company's wholly-owned subsidiary, UltraTech Cement Middle East Investments Limited, has completed the acquisition process of ETA Star Cement together with its operations in the UAE, Bahrain and Bangladesh. It has also acquired management control.

 

With the amalgamation of Samruddhi and the acquisition of ETA Star Cement, the Company's capacity stands augmented to 52 mtpa making it the eigth-largest cement company in the world.

 

Directors
The Board, at its meeting held today, inducted Mr. Adesh Gupta, Whole-time Director and CFO of Grasim Industries Limited as an additional director of the Company with immediate effect.

 

Outlook
The demand for cement is expected to grow around 10% on the back of a good monsoon and the government's initiatives to boost rural demand, infrastructure and housing. These aspects augur well for the Company.

UltraTech Cement Limited


Regd. Office: B Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road, Andheri (East), Mumbai 400 093
Website: www.ultratechcement.com / www.adityabirla.com Email: sharesutcl@adityabirla.com

 

 

UltraTech Cement announces results for the quarter ended 30.06.2010

 

(Rs. In millions)

 

Quarter ended

 

30.06.2010

30.06.2009

Net sales

17900.000

19530.000

PBIDT

4540.000

7510.000

Profit after tax (PAT)

2430.000

4180.000

 

UltraTech Cement Limited, an Aditya Birla Group company, today announced its unaudited financial results for the quarter ended 30 June 2010.

Financials


Net sales stood at Rs. 1,790 crore as compared to Rs. 1,953 crore in the corresponding period of the earlier year. Profit before interest, depreciation and tax is Rs. 454 crore and profit after tax is Rs. 243 crore vis-a-vis Rs. 751 crore and Rs. 418 crore respectively, in the corresponding period of the previous year.

The company produced 4.63 mmt (4.52 mmt) of cement during the quarter, reflecting a growth of 2 per cent YoY. The combined cement and clinker sales of 5.12 mmt.

These results have to be viewed in the light of the oversupply scenario in the sector together with logistics and cost pressures.

There have been capacity additions in excess of 60 mtpa in the previous year. This has resulted in an oversupply scenario. Markets of South India which account for around 33 per cent of the company's total sales volume, continued to be adversely affected due to lower off take and a shortage of wagons. The markets of Western and Eastern India were constrained on account of logistics and partial disruption in operations.

Although prices remained flat sequentially, there was a sharp fall as compared to Q1FY10.

Moving on to costs, prices of coal, raw material such as slag and fly-ash and transportation expenses have risen considerably. Consequently, costs escalated by 12% compared to Q1FY10. The quarter also witnessed a reduction in coal supply through linkages which compelled the company to increase its coal purchase from the domestic market at a higher price. It had to meet its balance requirement through imports. Imported coal prices rose from US$ 76 pmt to US$110 pmt YoY.

These factors have lead to a squeeze on margins. However sequentially (QoQ), performance has improved.

Capex
The company has an on-going capex plan of around Rs. 2,600 crore. This will be spent over the next three years on augmenting its grinding capacity in Gujarat, installing waste heat recovery systems and setting up of packaging terminals across locations.

The Board, at its meeting held today, has approved an additional capex of around Rs.5,600 crore. This is earmarked for setting up additional clinkerisation plants at Chhattisgarh and Karnataka. The company will also establish grinding units and bulk packaging terminals across various states. Consequent to these expansions, the total cement capacity addition will be 9.2 mtpa.

Together with Samruddhi's capex, the company's total capital outlay extends to over Rs. 10,000 crore to be spent over the next three years. These projects will be funded through a judicious mix of internal accruals and borrowings. The company has a strong balance sheet with a net debt-equity ratio of 0.1 and an interest cover of more than 10 times.

Scheme of amalgamation of Samruddhi and acquisition of ETA Star Cement

The scheme of amalgamation of Samruddhi Cement Limited (Samruddhi) with the company having been approved by the Board, shareholders and respective High Courts, will be effective from 1August 2010. It is operative from the appointed date i.e 1July 2010.

The company will allot around 14.95 crore equity shares to the shareholders of Samruddhi in the ratio of four equity shares of the company of face value Rs.10 each fully paid-up for every seven equity shares of Samruddhi of face value Rs.5 each fully paid-up.

The acquisition of ETA Star Cement is likely to be completed during the quarter.

With the amalgamation of Samruddhi and the acquisition of ETA Star Cement, the company's capacity will stand augmented to 52 mtpa. This makes it the ninth largest cement company in the world.

Outlook
In the short to medium term, there will be pressure on price and margins, given the surplus capacity. However, industry demand is expected to grow around 10 per cent, given the government's initiatives to boost rural development, infrastructure and housing, which augurs well for the company. The outlook for the company remains positive.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2011

 

(Rs. In millions)

Particulars

Three Months Ended 31.03.2011 (Unaudited)

Year Ended 31.03.2011 (Audited)

Income

 

 

a) Net Sales / Income from Operations

44901.300

132099.100

b) Other Operating Income

658.000

1409.500

Expenditure

 

 

(a) (Increase)/decrease in Stock in Trade

220.200

(618.400)

(b) Consumption of Raw Materials

5715.900

18053.300

(c) Purchase of traded goods

384.800

1221.800

(d) Employees Cost

2168.500

6665.000

(e) Depreciation

2266.900

7657.300

(f) Power and Fuel

9655.900

31225.900

(g) Freight and handling Expenses

8205.200

25580.800

(h) Other Expenditure

8341.200

24547.100

Total Expenditure

36958.600

114332.800

Profit / (Loss) From Operations before other Income & Interest

8600.700

19175.800

Other Income

436.300

1457.200

Profit before Interest

9037.000

20633.000

Interest

829.400

2771.100

Profit before tax expenses

8207.600

17861.900

Tax Expenses (Net of excess tax provision reversal of Rs. 1151.400 Millions in Q4FY11 and Rs. 1255.200 Millions in FY 11, related to earlier years)

939.900

3819.600

Profit After Tax

7267.700

14042.300

Minority Interest

0.000

0.000

Net Profit (After Minority Interest)

7267.700

14042.300

Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )

2740.400

2740.400

Reserves (Excluding Revaluation Reserves)

--

103872.200

Earning Per Share (EPS) (Not annualized)

 

 

-Basic

26.52

62.74

-Diluted

26.51

62.72

Public Share Holding

 

 

- Number of Shares

94667

94667

- Percentage of shareholding

34.54%

34.54%

Promoters and Promoter group share holding

 

 

a) Pledged / Encumbered

 

- Number of Shares

--

--

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

--

--

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

--

--

b) Non-encumbered

 

- Number of Shares

173605

173605

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

100.00%

100.00%

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

63.35%

63.35%

 

Comparable Net Sales and PBIT for the corresponding period of previous year (on like for like basis) are as under:

                                                                                                                                                         (Rs. in Millions)

Particulars

Standalone

Three Months ended 31.03.2011

Year Ended 31.03.2011

Net Sales

44901.300

132099.100

PBIT

9037.000

20633.000

 

 

Statement of Assets and Liabilities as on 31.03.2011

 

Particulars

Standalone

As on 31.03.2011 (Audited) (Rs. in

Millions)

Shareholder’s Fund:

 

Share Capital

2740.400

Employees Stock options outstanding

47.800

Reserve and Surplus

103872.200

Loan Funds

41446.000

Minority Interest

0.000

Deferred Tax Liabilities (Net)

17300.500

Total

165406.900

Application of Funds

 

Fixed Assets

125055.700

Goodwill

0.000

Deferred Tax Assets (Net)

0.000

Investments

37303.200

Inventories

19565.200

Sundry Debtors

6022.900

Cash and Bank Balance

1447.900

Loans and Advances

10538.800

Assets held for Disposal

12.200

Less: Current Liabilities and Provisions

 

Current Liabilities

28804.100

Provisions

5734.900

Miscellaneous Expenditure (To the extent not written off or adjusted)

0.000

Total

165406.900

 

 

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.73.47

Euro

1

Rs.65.38

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

74

 

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.