MIRA INFORM REPORT

Report Date :

02.04.2012

IDENTIFICATION DETAILS

Name :	CENTURY TEXTILE AND INDUSTRIES LIMITED CENTURY YARN (A DIVISION OF CENTURY TEXTILE AND INDUSTRIES LIMITED)
Registered Office :	Century Bhavan, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.10.1897
Com. Reg. No.:	11-000163
Capital Investment / Paid-up Capital :	Rs.930.400 Millions
CIN No.: [Company Identification No.]	L17120MH1897PLC000163
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10668A
Legal Form :	Public Limited Liability Company. The Company’s Shares Are Listed On The Stock Exchanges.
Line of Business :	Manufacturer and Trader of Cotton Yarn that used for manufacturing of Cotton Fabrics.
No. of Employees :	11326 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

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 78000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. 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.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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/ Corporate Office :	Century Bhavan, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra, India
Tel. No.:	91-22-24957000
Fax No.:	91-22-24309491/24361980
E-Mail :	centextho@centurytext.com atulkedia@centurytext.com
Website :	http://www.centurytext.com
Factory :	BIRLA CENTURY Plot No. 826, GIDC Industrial Estate, Jhagadia - 393 110, District Bharuch, Gujarat, India CENTURY RAYON Rayon, Tyre Cord and Chemical Plants, Murbad Road, Kalyan - 421 103, Maharashtra, India CENRAY MINERALS AND CHEMICALS Nawa Nagna, Jamnagar - 361 007, Gujarat, India CENTURY CEMENT P.O. Baikunth - 493 116, District Raipur, Chhattisgarh, India MAIHAR CEMENT UNITS I and II P.O. Sarlanagar - 485 772, Maihar, District Satna, Madhya Pradesh, India MANIKGARH CEMENT P.O. Gadchandur - 442 908, District Chandrapur, (Maharashtra) CENTURY PULP AND PAPER Ghanshyamdham, P.O. Lalkua - 262 402, District Nainital, Uttarakhand, India CENTURY YARN CENTURY DENIM Village and Post Satrati, Tehsil – Kasrawad, District Khargone - 451 660, Madhya Pradesh, India Tel. No.: 91-7285-255277/ 255281/ 82/ 83/ 84 Fax No.: 91-7285-255305

DIRECTORS

As on 31.03.2011

Name :	Mr. B.K. Birla
Designation :	Chairman
Date of Birth/ Age :	91 Years
Name :	Mr. Kumar Mangalam Birla
Designation :	Director
Name :	Mr. Pradip Kumar Daga
Designation :	Director
Name :	Mr. Arvind C. Dalal
Designation :	Director
Name :	Mr. Amal Ganguli
Designation :	Director
Name :	Mr. B. L. Jain
Designation :	Director

KEY EXECUTIVES

CENTURY TEXTILES BIRLA CENTURY, CENTURY YARN AND DENIM :
Name :	Mr. R.K. Dalmia
Designation :	Senior President
Name :	Mr. D.K. Agrawal
Designation :	President (Corporate Finance) and Secretary
Name :	Mr. U.C. Garg
Designation :	Executive President (Purchase and Projects)
Name :	Mr. R.C. Panwar
Designation :	Joint President (Marketing)
Name :	Mr. Sanjay Khimesra
Designation :	Joint President (Birla Century)
Name :	Mr. S.K. Somani
Designation :	Vice President (Finance)
CENTURY RAYON, TYRECORD AND CHEMICALS:
Name :	Mr. O.R. Chitlange
Designation :	Senior President
Name :	Mr. R. Lalwani
Designation :	President (Commercial)
Name :	Mr. S.M. Sanklecha
Designation :	Joint President (Purchase)
Name :	Mr. S.K. Mital
Designation :	Joint President (Engineering Services and Auxiliaries)
Name :	Mr. Subodh Dave
Designation :	Senior Vice President (Personnel and Administration)
Name :	Mr. Apurva Gupta
Designation :	Senior Vice President (Rayon and Development)
Name :	Mr. V.K. Jhingon
Designation :	Senior Vice President (Tyre Cord and CSY)
Name :	Mr. Sudhir Luthra
Designation :	Senior Vice President (Chemicals)
Name :	Mr. B. Manmohan
Designation :	Vice President (Finance)
Name :	Mr. Arun Jhawar
Designation :	Vice President (Marketing)
CENTURY, MAIHAR, MANIKGARH AND SONAR BANGLA CEMENTS:
Name :	Mr. B.L. Jain
Designation :	Senior President
Name :	Mr. Kamal Kishore
Designation :	President (Co-ordination)
CENTURY CEMENT AND SONAR BANGLA CEMENT:
Name :	Mr. Alok Patni
Designation :	President (Works)
Name :	Mr. J. L. Tiwari
Designation :	Executive President (Projects-Cement Division)
Name :	Mr. Rakesh Sharma
Designation :	Executive President (Personnel and Administration)
Name :	Mr. M.K. Jain
Designation :	Senior Vice President (Purchase)
Name :	Mr. A.K. Panja
Designation :	Senior Vice President (Commercial)
Name :	Mr. Satish Gurtoo
Designation :	Senior Vice President (Electrical and Instt.)
Name :	Mr. Arun Gaur
Designation :	Senior Vice President (Finance)
Name :	Mr. C.S. Vithalkar
Designation :	Vice President (Mechanical)
Name :	Mr. A.K. Biswas
Designation :	Vice President (Project)
Name :	Mr. A.K. Bajpai
Designation :	Vice President (Marketing)
MAIHAR CEMENT UNITS I AND II:
Unit I:
Name :	Mr. R.K. Vaishnavi
Designation :	President (Works)
Name :	Mr. P. M. Intodia
Designation :	Executive President (Marketing)
Name :	Mr. Arvind Kumar Jain
Designation :	Senior Vice President (Mechanical)
Name :	Mr. M.P. Joshi
Designation :	Senior Vice President (Electrical and Instt.)
Name :	Mr. Manoj Gupta
Designation :	Senior Vice President (Finance)
Name :	Mr. Ajai Kumar Jain
Designation :	Vice President (Production)
Name :	Mr. R. Deshpande
Designation :	Vice President (Purchase)
Unit II
Name :	Mr. R.S. Doshi
Designation :	Executive President (Commercial)
Name :	Mr. S. K. Tewari
Designation :	Joint President (Mines and Projects)
Name :	Mr. Ashok Maheshwari
Designation :	Senior Vice President (Commercial)
Name :	Mr. P.K. Agarwal
Designation :	Senior Vice President (Purchase)
Name :	Mr. H.P. Tiwari
Designation :	Senior Vice President (Personnel and Administration)
Name :	Mr. A.S. Thakur
Designation :	Vice President (Materials and Systems)
Name :	Mr. J. P. Pandey
Designation :	Vice President (Mechanical)
MANIKGARH CEMENT UNITS I AND II
Unit I
Name :	Mr. P.S. Bakshi
Designation :	President (Works)
Name :	Mr. S.K. Mandelia
Designation :	Executive President (Commercial)
Name :	Mr. A.D. Karwa
Designation :	Executive President (Finance and Marketing)
Name :	Mr. Vijay Kumar
Designation :	Joint President (Plant)
Name :	Mr. R.K. Udge
Designation :	Senior Vice Presidient (Mines)
Name :	Mr. A.K. Jain
Designation :	Senior Vice President (Mechanical)
Name :	Mr. O.P. Moondra
Designation :	Senior Vice President (Instrument)
Name :	Mr. N.D. Hemke
Designation :	Senior Vice President (Mechanical)
Name :	Mr. Kiran Sharma
Designation :	Vice President (Generation)
Unit II
Name :	Mr. Surendra Kumar
Designation :	Vice President (Project)
Name :	Mr. E. V. Ravikumar
Designation :	Vice President (Finance)
Name :	Mr. V. K. Sharma
Designation :	Vice President (Mechanical)
Name :	Mr. Deepak Jaisinghani
Designation :	Vice President (Mechanical)
PAPER:
CENTURY PULP AND PAPER:
Name :	Dr. B.L. Bihani
Designation :	Senior President
Name :	Mr. S.K. Agarwal
Designation :	Senior Vice President (Commercial)
Name :	Mr. A.C. Mittal
Designation :	Senior Vice President (Production)
Name :	Mr. J.K. Jain
Designation :	Senior Vice President (Raw Material)
Name :	Mr. R.K. Sharma
Designation :	Senior Vice President (Engineering)
Name :	Mr. S.L. Sharma
Designation :	Vice President (Commercial)
Name :	Mr. U.K. Agarwal
Designation :	Vice President (Process)
Name :	Mr. S.P. Bhandari
Designation :	Vice President (Sales and Marketing)
Name :	Mr. C.V. Ramaraju
Designation :	Vice President (Technical)
SALT
CENRAY MINERALS AND CHEMICALS:
Name :	Mr. M.M. Sand
Designation :	Vice President (Salt Works)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	210,470	0.23
Bodies Corporate	37,358,910	40.29
Sub Total	37,569,380	40.51
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	37,569,380	40.51
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10,934,549	11.79
Financial Institutions / Banks	3,796,369	4.09
Central Government / State Government(s)	2,580	-
Insurance Companies	2,792,572	3.01
Foreign Institutional Investors	4,325,682	4.66
Sub Total	21,851,752	23.56
(2) Non-Institutions
Bodies Corporate	9,699,665	10.46
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	17,161,643	18.51
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	4,629,046	4.99
Any Others (Specify)	1,818,514	1.96
Clearing Members	525,190	0.57
Non Resident Indians	842,815	0.91
Overseas Corporate Bodies	365,820	0.39
Trusts	81,996	0.09
Foreign Nationals	613	-
Directors & their Relatives & Friends	2,080	-
Sub Total	33,308,868	35.92
Total Public shareholding (B)	55,160,620	59.49
Total (A)+(B)	92,730,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	315,680	-
Sub Total	315,680	-
Total (A)+(B)+(C)	93,045,680	-

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Cotton Yarn that used for manufacturing of Cotton Fabrics.

Products :

Item Code NO.	Product Description
252329	Other Grey Portland Cement
480200	Paper
540332	Viscose Filament Yarn

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity (a) *	Actual Production (b)
Cloth )	Mtrs.	31608000	25000000	22903698
Made Ups )	Mtrs.	--	--	412886
Cotton Yarn )	Mtrs. / Kgs.	--	--	1034908
Cotton Yarn/Blended Yarn	Spindles/ Kgs.	25200	24960	4244202
Denim Cloth	Mtrs.	21000000	21000000	15137834
Viscose Filament Yarn and Viscose Tyre Yarn/Industrial Yarn (c)	MT	30000	25000	--
Rayon Yarn	MT	--	--	18027
Tyre Yarn and Fabric	MT	--	--	3034
High Performance (c)	MT	--	--	--
Viscose Staple Fibre	MT	--	--	--
Sulphuric Acid @	MT	71000	71000	68695
Carbon di-sulphide @	MT	20000	18000	14899
Caustic Soda @	MT	28426	20500	20304
Liquid Chlorine @	MT	25000	175000	17255
Hydrochloric Acid	MT	47241	19241	3297
Refined Salt (d)	MT	144000	100000	63258
Salt	MT	--	--	57440
Cement	MT	7800000	7800000	7701762
Paper including Paper Board/Straw Board	MT	29800	37250	38388
Rayon and/or Paper Grade Pulp	MT	20000	31320	35858
Bagasse based Paper @	MT	84600	84600	84522
Newsprint	MT	20000	--	--
Recycle Based Paper	MT	75960	75960	84783
Prime Grade Tissue Paper	MT	36000	36000	12689
Compressed Hydrogen M³ @	MT	8000000	6200000	5034197
Flowers (Cut Rose, Gerbera, etc.)	Nos.	Not Applicable		6881173

NOTE:

(a) As certified by the Management and being a technical matter accepted by the Auditors as correct.

(b) Including production for internal consumption and/or reprocessed production.

(c) Licensed and Installed capacity includes for High Performance Viscose Staple Fibre and Tyre Yarn Fabric.

(d) Capacity as per registration given by Dy. Salt Commissioner vide its office letter No.18 (9) salt/91/1143 dated 19th January, 1999. Revised Capacity vide Dy. Salt Commissioner Office letter No. 18(9) Salt/91/Pt.l/150 dated 05.01.2010.

@ Company has filed memorandum with the Department of Industrial Development, Ministry of Industry.

* Installed against Industrial Entrepreneur Memorandum. Company has filed memorandum of information with Secretariat for Industrial approval, Government of India.

GENERAL INFORMATION

No. of Employees :

11326 (Approximately)

Bankers :

· State Bank of India, Madame Cama Road, Mumbai – 400 021, Maharashtra, India

· Central Bank of India

· Bank of India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Sales Tax Loan from Madhya Pradesh Audyogik Vikas Nigam (Interest free)	0.000	0.100
Rupee Term Loans from Banks	16252.100	13309.300
Short Term Rupee Loan from a Bank	0.000	2500.000
Working Capital Loans from Banks	4728.300	1801.800
Total	20980.400	17611.200
Unsecured Loan
Fixed Deposits	534.700	421.400
Short Term Borrowings from Banks :
- Under Buyer’s Credit Arrangement	5120.200	4135.300
- Rupee Loans	1950.000	1000.000
Commercial Paper (Maximum balance outstanding during the year Rs. 8750.000 Millions; Previous year Rs. 950.000 Millions)	1500.000	500.000
Total	9104.900	6056.700

NOTE:

1. Rupee term loans from banks are secured by first pari passu mortgage / hypothecation of all the immovable / movable fixed assets, present and future of the Company's Birla Century, Cement, Pulp and Paper and Rayon Divisions (excluding Leasehold Land at Birla Century, Pulp and Paper and Sonar Bangla Cement Division) and also a portion of land at Worli, Mumbai and second charge created in favour of certain term lenders on the current assets of the Company. Loans for the Company’s Century Denim Division are also secured by mortgage / hypothecation of all the immovable / movable fixed assets of the Denim Division (Due within one year Rs. 3851.700 Millions).

2. Pre-shipment, Post-shipment, Cash Credits, Working Capital Demand Loans and Export Bills Discounting facilities are secured against the hypothecation of the whole of the Company’s Raw Materials, Finished Goods, Material in process, Stores and Spares, present and future Book Debts, Receivables, etc. and second charge created over movable and immovable fixed assets Company’s divisions viz. Birla Century, Cement, Pulp and Paper and Rayon Divisions ( excluding Leasehold Land at Birla Century, Pulp and Paper and Sonar Bangla Cement division) and also a portions of the land at Worli, Mumbai.

3. Unclaimed Fixed deposits amounting to (Rs. 22500.000 Millions) [31.3.2010 (Rs. 225000.000 Millions)] and (Rs. 31500.000 Millions) [31.3.2010 (Rs.31500.000 Millions)] being interest accrued and due thereon remain unpaid in view of the internal disputes between the claimants which has been referred to the Court whose decision is awaited.

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	Mumbai, Maharashtra, India
Related Parties :	· Pilani Investment and Industries Corporation Limited · Kesoram Insurance Broking Services Limited · Vasavadatta Services Limited · Industry House Limited · Bander Coal Company Private Limited · Shri B.K. Birla · Kesoram Industries Limited · Century Enka Limited · Jayshree Tea and Industries Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
148000000	Equity Shares	Rs.10/- each	Rs.1480.000 Millions
10000000	Redeemable Cumulative Non-Convertible Preferences Shares	Rs.100/- each	Rs.1000.000 Millions
	Total		Rs.2480.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
93061090	Equity Shares	Rs.10/- each	Rs.930.600 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
93045680	Equity Shares [ including 87890120 Equity Shares, issued as fully paid up Bonus Shares by way of capitalization of Reserves and Securities Premium Account ]	Rs.10/- each	Rs.930.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		930.400	930.400	930.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18600.600	16821.600	14024.800
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19531.000	17752.000	14955.200
LOAN FUNDS
1] Secured Loans		20980.400	17611.200	17149.800
2] Unsecured Loans		9104.900	6056.700	433.100
TOTAL BORROWING		30085.300	23667.900	17582.900
DEFERRED TAX LIABILITIES		2639.400	2513.400	2900.800
TOTAL		52255.700	43933.300	35438.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23987.300	24843.700	25797.500
Capital work-in-progress		19983.500	12873.800	2282.900
INVESTMENT		683.600	584.300	465.400
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10706.700	8685.100	6705.700
	Sundry Debtors	3081.000	2251.100	1508.900
	Cash & Bank Balances	414.700	574.100	665.400
	Other Current Assets	326.800	320.200	337.800
	Loans & Advances	10296.400	7510.100	6722.400
Total Current Assets		24825.600	19340.600	15940.200
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1876.200	8074.300	6733.200
	Other Current Liabilities	8845.100	171.700	77.000
	Provisions	6503.000	5525.300	3277.400
Total Current Liabilities		17224.300	13771.300	10087.600
Net Current Assets		7601.300	5569.300	5852.600
MISCELLANEOUS EXPENSES		0.000	62.200	1040.500
TOTAL		52255.700	43933.300	35438.900

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	46766.800	44529.000	38156.900
		Other Income	1254.100	946.700	749.700
		TOTAL (A)	48020.900	45475.700	38906.600
Less	EXPENSES
		Cost of Materials Consumed, Purchases and Manufacturing Expenses	29411.600	26004.800	23274.300
		Payments to and Provision for Employees	3652.700	3332.300	3046.100
		Selling and Other Expenses	8350.400	7804.300	6471.300
		Exceptional Items	37.800	881.600	364.300
		Increase / Decrease in Inventories	(336.100)	(1074.800)	(748.700)
		Expenditure Transferred to Capital Account	(112.700)	(57.800)	(53.100)
		TOTAL (B)	41003.700	36890.400	32354.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7017.200	8585.300	6552.400
Less	FINANCIAL EXPENSES (D)		1182.100	1005.300	1030.100
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5835.100	7580.000	5522.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2396.600	2344.700	2052.800
	PROFIT BEFORE TAX (E-F) (G)		3438.500	5235.300	3469.500
Less	TAX (H)		1042.500	1673.700	821.500
	PROFIT AFTER TAX (G-H) (I)		2396.000	3561.600	2648.000
Add/ Less	Short Provision for tax adjustments in respect of earlier years ( Net )		(21.100)	(165.000)	12.400
	Prior Period Adjustments (Net)		0.000	(1.900)	7.100
Less/ Add	Installment of Arrears of Depreciation		0.000	0.000	263.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3078.900	1781.000	1405.500
Less	APPROPRIATIONS
		Transfer to General Reserve	1500.000	1500.000	1500.000
		Dividend	511.800	511.800	418.700
		Tax on Dividend	83.000	85.000	71.200
	BALANCE CARRIED TO THE B/S		3359.000	3078.900	1781.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2882.200	2374.000	2292.900
		Dividend	0.600	0.600	0.700
		Sale proceeds of assets	0.000	37.400	0.400
		Others	1.700	0.000	0.000
	TOTAL EARNINGS		2884.500	2412.000	2294.000
	IMPORTS
		Raw Materials	1984.000	2389.900	1551.800
		Stores & Spares	441.700	294.500	665.700
		Capital Goods	1016.200	6012.900	1697.600
	TOTAL IMPORTS		3441.900	8697.300	3915.100
	Earnings Per Share (Rs.) [Basic]		25.52	36.48	25.42
	Earnings Per Share (Rs.) [Diluted]		25.80	42.83	29.24

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	11760.300	10989.500	13015.100
Total Expenditure	10646.100	10393.100	11453.100
PBIDT (Excl OI)	1114.200	596.400	1562.000
Other Income	25.800	55.800	32.300
Operating Profit	1140.000	652.200	1594.300
Interest	345.600	320.700	393.900
Exceptional Items	0.000	(52.500)	(13.700)
PBDT	794.400	279.000	1186.700
Depreciation	600.600	600.600	608.200
Profit Before Tax	193.800	(321.600)	578.500
Tax	(45.200)	0.000	35.700
Profit After Tax	239.000	(321.600)	542.800
Net Profit	239.000	(321.600)	542.800

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.99	7.83	6.81
Net Profit Margin (PBT/Sales)	(%)	7.35	11.75	9.09
Return on Total Assets (PBT/Total Assets}	(%)	7.04	11.85	8.31
Return on Investment (ROI) (PBT/Networth)		0.18	0.29	0.23
Debt Equity Ratio (Total Liability/Networth)		2.42	2.11	1.85
Current Ratio (Current Asset/Current Liability)		1.44	1.40	1.58

LOCAL AGENCY FURTHER INFORMATION

EXPORTS:

The total exports of the Company amounted to Rs.3660.000 Millions (Previous year Rs.3720.000 Millions) representing about 8 percent of the net sales.

EXPANSION AND MODERNISATION:

A) RAYON

The process of installation of 12 machines for production of viscose filament yarn is in progress in order to increase the production capacity of viscose filament yarn by about 5 per cent per annum. Further, two existing electrolyzers are being replaced by an energy efficient electrolyzer in the Caustic Soda plant. These improvements involve capital expenditure of about Rs.500.000 Millions and are expected to be completed before December, 2011.

B) CEMENT

Purchase orders for supply of main plant and machinery for 1.5 million tonnes per annum (tpa) cement grinding unit named Sonar Bangla Cement at Sagardighi, Distt. Murshidabad, West Bengal and for expansion of 2.8 million tpa cement manufacturing capacity at Manikgarh Cement, Gadchandur, Distt. Chandrapur, Maharashtra have been released.

At Sonar Bangla Cement (Grinding Unit) extensive pilling work on account of soil condition had to be undertaken and it is likely to be over by June, 2011. Thereafter main plant civil work will commence. Civil work for Manikgarh Cement expansion will start from June, 2011. The Sonar Bangla Cement (Grinding Unit) is expected to be operational by September, 2012 and Manikgarh Cement expansion by March, 2013.

After ongoing upgradation and expansion, the total cement manufacturing capacity will stand increased to 12.8 million tonnes per annum.

C) PULP AND PAPER

The Fibre Line (Pulp Plant) with a capacity of 1.62 lac tonnes per annum and Multilayer Packaging Board Plant with a capacity of 1.8 lac tonnes per annum are near completion. The production is expected to commence during May, 2011 and will get stabilized in due course. It may be added that the 43 MW turbine has already been commissioned successfully.

Further, we have undertaken upgradation of Paper Machine based on recycled pulp by installing a size press and A-4 cutter for copier paper for which orders have already been placed. We are also increasing the bagasse pulping capacity by another 23,400 tonnes per annum by installing a continuous digester and carrying out modifications in the existing plant. The total cost for these initiatives is expected to be about Rs.2200.000 Millions and these are likely to be completed before the end of the current financial year.

D) GENERAL

Modernisation and technological upgradation programmes continue at all the units of the Company to maintain competitiveness and achieve better quality. Stringent cost control measures remain in place in all possible areas and are regularly reviewed.

GENERAL – AWARDS, SPORTS and WELFARE ACTIVITIES:

Various Divisions of the Company have received awards for environmental excellence, efficiency in energy, safety provisions etc. Some notable awards are as under:-

A) CENTURY CEMENT:

· First Prize for “Standard of Working”, “Tyre Maintenance” and “Environment Management and Pollution Control” for the limestone mines from the Director General of Mines Safety, Bilaspur Region. * First Prize for “Noise Vibration Control and Aesthetic Beauty” for the limestone mines, from Indian Bureau of Mines, Nagpur Region (Chhattisgarh State).

· Six students of our school and college (1 in Football, 1 in Soft Ball and 4 in Net Ball) have been selected at the National Level.

· Five students of our school (2 of class VII, 1 of Class VIII and 2 of class XII) have attained merit positions in the Board Exams for the academic session 2009-10.

B) MAIHAR CEMENT:

· First prize for “Standard of Working”, “Electrical Installation and Ore Handling Plant” and “Best Team of First-Aid

· Competition” for the limestone mines from the Director General of Mines Safety, Jabalpur Region.

· First prize for “Waste Dump Management” for the limestone mines, from the Indian Bureau of Mines, Jabalpur Region.

· Master Devesh Gedam, student of Class VII of our School received the Gold Medal in “Junior General Knowledge and Intelligence Test” conducted by the “Central Institute of General Knowledge Learning, New Delhi”.

· 13 Students from our school (8 Scouts and 5 Guides) have been selected for the “Governor’s Award” during the academic session 2010-11.

C) MANIKGARH CEMENT:

· First Prize “Gold Award” in the International Convention of Quality Circles held at Hyderabad on the case study titled “To eliminate Bags and Electrodes damage inside Hybrid ESP”.

· First Prize for “Overall Performance”, “Opencast Working”, “Transport in Mines and Dust Suppression”, “House Keeping and Provision of Welfare Facility”, “Injury Rate Performance” and “Exhibition Stall” for the limestone mines, from the Directorate General of Mines Safety, Western Zone, Nagpur Region.

· First Prize for “Environment Excellence”, “Waste Dump Management”, “Noise Vibration Control and Aesthetic Beauty” and “Water Quality Management” for the limestone mines from the Indian Bureau of Mines, Nagpur Region (Maharashtra and Madhya Pradesh States).

D) PULP AND PAPER:

· The Unit’s Quality Circle “AGRO” has secured the “Gold Award” in the 21st Regional Convention on Quality Circles, organized by the Quality Circle Forum of India, Kanpur Chapter, held at Kanpur on 13 November 2010 for their case study presentation.

· The Unit’s Quality Circle “AGRO” has secured “Excellent Award” in the 24th National Convention on Quality Circles, organized by the Quality Circle Forum of India, Visakhapatnam Chapter, held at Visakhapatnam during 27th to 30th December, 2010 for their case study presentation.

· Certified for Forest Stewardship Council (FSC) Chain-of-custody (CoC), an International Certification, for the period from 24.01.2011 to 23.01.2016 which will assist us for business with improved international market access in an increased environmentally aware sector.

· The Unit has begged the Certificate of Export Recognition, a ‘Special Export Award’ in recognition of achievement in exports in respect of Printing and Writing Paper for the year 2009-10, by CAPEXIL (Sponsored by the Ministry of Commerce and Industry, Govt. of India), in the Annual Award Function held at Delhi on 4th March, 2011.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERALL REVIEW:

The overall profitability of the Company during the year under review has been adversely affected as compared to the previous year due to unfavourable market conditions prevailing for a major part of the year, particularly in the cement segment which is a major contributor to the revenues of the Company. Global economic recovery is still uneven and weak though emerging economies have grown strongly. Commodity prices have risen sharply. Oil prices are uncomfortably high due to various factors including unrest in several Middle Eastern countries. In India, the economy has grown well. Concerns include rising commodity prices, high inflation, particularly food price inflation and high current account deficit. The rupee has been strengthening against the dollar putting pressure on realizations from exports. In order to control high inflation, RBI has adopted tighter monetary policies which have resulted in higher interest rates. Interest cost is likely to increase further in the coming years partly due to higher borrowings for various expansion programmes and partly because of a general increase in the interest rates on all types of borrowings, whether short term or long term. Other input costs such as those of coal, power and oil are also rising regularly year after year due to various factors including fresh levies by way of excise duty, service tax, etc. by the Government and the market is not in a position to absorb compensating cost increases fully. We expect the growing economy to result in increased demand and the ability and willingness to accept price increases.

BUSINESS SEGMENT – TEXTILES COTTON TEXTILES, YARN AND DENIM:

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Textile industry faces a particularly acute challenge as the price of its raw material, viz. cotton, has increased by more than 100 per cent in just the last one year. The industry has not been able to take the advantage of heavy investments made in recent years because of lack of demand. Particularly in the export market, the prices realizable are not remunerative. The importing countries are still not fully out of the demand recession and the adverse rupee dollar parity does not encourage exports. Allowing export of cotton has created an acute shortage of this commodity. This factor coupled with increased cost to an unprecedented level and partial restrictions on the export of yarn up to March, 2011 have all added to the problems of the industry. Unless export policies get stabilized on a sound footing, it will be difficult for the industry to improve substantially in the near future.

OUTLOOK:

In spite of the current stressful situation outlined above, the demand for cotton textiles in the long run should remain strong in India and abroad. Our continued efforts to maintain quality and scouting for new and better markets should promote growth and we hope to achieve a better performance in the near future.

CENTURY RAYON – VISCOSE FILAMENT YARN (VFY), CONTINUOUS SPUN YARN (CSY) AND RAYON TYRE YARN.

INDUSTRY STRUCTURE AND DEVELOPMENT:

During the year under review, overall demand for VFY improved in the backdrop of a spurt in consumption for few end-use segments, ensuring off-take outstripping supplies. Arrivals from China continue to remain high and more quantities now emanating are in the form of value added products like doubled and twisted yarn. In view of high imports of double and twisted yarn and embroidery yarn from China, an application has been filed by the industry to Government to impose a safe guard duty on imports, so as to provide a level playing field to Indian producers.

Due to this industry being labour intensive and subject to stringent environment control the world over, including

India, no new major expansions are in the pipeline. In a positive note for the industry, consumption of finer denier yarn is on the rise and fabric selling prices are firm.

OUTLOOK:

Finer denier yarn and eco-friendly fabrics are being increasingly favoured by discerning customers and we have the advantage of versatility in suiting our yarn to what the fashion industry wants. Therefore, our outlook for VFY remains comfortable.

BUSINESS SEGMENT – CEMENT DIVISIONS

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Indian cement industry is the second largest in the world. The industry occupies an important place in the national economy because of its strong linkages to other sectors such as construction, coal, power and transportation. It is also one of the major contributors to the exchequer by way of direct and indirect taxes. The Indian cement industry has witnessed healthy trends such as cost control and continuous technology upgradation.

The present installed capacity is about 280 million tonnes and it is set to achieve the capacity of 298 million tonnes (including mini plants) targeted by the working group on the cement industry for the XI five year (2007-12) plan. During the year 2010-11, cement production in the country stood at 210.52 million tonnes as against 201.28 million tonnes during the previous year 2009-10 witnessing a growth of about 4.6%.

OUTLOOK:

Pricing pressures will continue in the short / medium term and competition may be intensified by greater fragmentation of production with many small players increasing capacity to become mid size players. Companies enjoying a leaner cost structure, vocational advantages, strong capital structures and geographically dispersed plants would be in a better position to face competition. Looking further ahead, high domestic growth is expected to boost consumption. The pace of capacity addition is expected to slow down from 2012 onwards. The long term outlook for the industry looks positive.

BUSINESS SEGMENT – CENTURY PULP AND PAPER

INDUSTRY STRUCTURE AND DEVELOPMENT:

The demand for paper in India is estimated to be growing at 8 to 9% p.a. which is higher than the world average. This is also helped by the emphasis of the Government on improving literacy and spreading education through various programmes like Sarva Siksha Abhiyan. The production capacities on the other hand are also being augmented in the last 2 to 3 years. The increase in demand is now catching up with the increased production and demand and supply should come to equilibrium during the current year. With the economy growing, the demand for tissue paper has improved and is likely to increase in the domestic as well as international markets in the coming years.

OUTLOOK:

The overall outlook for writing and printing paper, packaging board etc. in both domestic and export markets is positive.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
(a) Guarantees given by Company's bankers [Guarantees have been given by the Company's bankers in the normal course of business and are not expected to result in any liability on the Company)	44.900	18.900
(b) (i) Claims against the Company not acknowledged as debts in respect of :
- Custom Duty and Excise Duty	411.300	378.900
- Sales Tax and Entry Tax	404.900	359.600
- Power Charges	124.800	237.200
- Royalty	2029.300	1688.000
- Others	331.000	186.000
(ii) Claims not acknowledged as debts jointly with other members of "Business Consortium of Companies" in which the Company had an interest (proportionate)	185.900	174.800
(c) Registration and Road Tax on Dumper of Cement Division	Amount not determinable
(d) Disputed income tax matters under appeal	117.100	28.100
(e) Liability on account of Jute packaging obligation upto 30th June, 1997 under the Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987 -	Amount not determinable
Note: Item No.5(b) to 5(e) (The Company has taken legal and other steps necessary to protect its position in respect of these claims which based on legal advice are not sustainable. It is not possible to make any further determination of the liabilities which may arise or the amounts which may be refundable in these respects).

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31^ST DECEMBER, 2011

Rs. in Millions

PARTICULARS	PREVIOUS 3 MONTHS ENDED	3 MONTHS ENDED	YEAR TO DATE FIGURES FOR CURRENT PERIOD ENDED
	30.09.2011	31.12.2011	31.12.2011
Sales/ Income From operations	11817.600	14097.700	38734.300
Less: Excise Duty	1092.000	1327.300	3598.100
1. Net Sales/ Income From Operations	10725.600	12770.400	35136.200
2. Other Operating Income	263.900	244.700	628.700
3. Total Income ( 1+2)	10989.500	13015.100	35764.900
4. Expenditure
a) Increase/ Decrease in stock in trade and work in progress	(77.600)	13.700	(925.700)
b) Consumption of raw material	2838.400	3346.800	9816.500
c) Purchase of traded goods	133.800	93.600	290.000
d) Employee Cost	992.000	1012.000	3082.600
e) Depreciation	600.600	608.200	1809.400
f) Other Expenditure
- Stores and Spare parts consumed	1249.500	1265.500	3899.300
- Power, fuel and Water	2985.000	3124.000	8994.400
- Freight, Forwarding, Octroi etc.	1493.700	1789.200	4966.000
- Others	778.300	808.300	2369.200
g) Total (a to f)	10993.700	12061.300	34301.700
5. Profit form operations before other Income, Interest and Exceptional Item (3-4)	(4.200)	953.800	1463.200
6. Other Income	55.800	32.300	1139.900
7. Profit before Interest and Exceptional Item ( 5+6)	51.600	986.100	1577.100
8. Interest (Net)	320.700	393.900	1060.200
9. Profit after Interest but before Exceptional Item ( 7-8)	(269.100)	592.200	516.900
10. Exceptional Items:
a) Payments under Voluntary Retirement Scheme and other exit payments	52.500	13.700	66.200
b) Surplus on Sale of Assets of Textile Mill at Worli	0.000	0.000	0.000
c) Surplus on sale of Property	0.000	0.000	0.000
11. Profit Before Tax ( 9-10)	(321.600)	578.500	450.700
12. Tax Expenses
- Current Tax	0.000	35.700	0.000
- Deferred Tax	0.000	542.800	(9.500)
13. Net Profit After tax ( 11-12)	(321.600)	542.800	460.200
14. Extraordinary Items	0.000	0.000	0.000
15. Net Profit for the period ( 13-14)	(321.600)	542.800	460.200
16. Paid-up Equity Share Capital (Face Value : Rs. 10/- per share)	930.400	930.400	930.400
17. Reserve excluding Revaluation Reserve as per balance sheet of previous accounting year	--	--	--
18. Basic and Diluted Earnings Per Share in Rs. (not annualised) before and after extraordinary Items.	(3.46)	5.83	4.95
19. Public Shareholding
- Number of Shares	55160620	55160620	55160620
- Percentage of Shareholding	59.28	59.28	59.28
20. Promoters and Promoter group Shareholding
- Number of Shares	132050	132050	132050
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	0.35	0.35	0.35
- Percentage of Shares (as a % of total share capital of the company)	0.14	0.14	0.14
b) Non- encumbered
- Number of Shares	37437330	37437330	37437330
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	99.65	99.65	99.65
- Percentage of Shares (as a % of total share capital of the company)	40.24	40.24	40.24

NOTE:

1. The above results have been reviewed and recommended for adoption by the Audit Committee to the Board of Directors and have been approved by the Board at its meeting held on 31st January, 2012. The Statutory Auditors have carried out a limited review of the above financial results and their report contains no qualification.

2. Information on investor complaints for the quarter – (Nos.): Opening balance – 0, New – 6, Disposals – 6, Closing balance – 0.

3. In order to comply with certain pollution control requirements and other technical reasons, manufacturing operations at Pulp and Paper Division of the Company situated at Lalkua, District Nainital, Uttarakhand have been temporarily shut down effective from Friday, December 23, 2011 till date. Efforts are being made to resume operations at the earliest.

4. Previous period’s figures have been regrouped / recast wherever necessary.

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED, UNDER CLAUSE 41 OF THE LISTING AGREEMENT FOR THE QUARTER ENDED 31^ST DECEMBER, 2011

Rs. in Millions

Particulars	PREVIOUS 3 MONTHS ENDED	3 MONTHS ENDED	YEAR TO DATE FIGURES FOR CURRENT PERIOD ENDED
	30.09.2011	31.12.2011	31.12.2011
	UNAUDITED	UNAUDITED	UNAUDITED
1. Segment Revenue (Net Sales/ Income from Operations)
a) Textiles*	3332.200	3103.300	9479.600
b) Cement	5339.400	7396.200	18884.000
c) Pulp and Paper @	2326.900	2475.600	7469.600
d) Others	255.200	259.500	781.500
Total	11253.700	13234.600	36614.700
Less: Inter Segment Revenue	531.100	464.200	1478.500
Net Sales/ Income From operations	10725.600	12770.400	35136.200
2. Segment Results
Profit/ Loss after depreciation but before interest and exceptional items
a) Textiles*	(60.500)	(61.200)	(240.300)
b) Cement	121.700	1136.400	1909.900
c) Pulp and Paper @	(36.000)	30.900	42.700
d) Others **	13.200	20.900	77.900
Sub-Total	38.400	1127.000	1790.200
Add/ Less:
Inter Segment Profit/ Loss	(18.400)	(39.000)	(53.600)
Total	20.000	1088.000	1736.600
Add/ Less:
i) Interest (Net)	320.700	393.900	1060.200
ii) Other un-allocable expenditure net of un-allocable income	(31.600)	101.900	159.600
Profit before Exceptional items and tax	(269.100)	592.200	516.900
Less:
Exceptional Items (Textiles)	52.500	13.700	66.200
Total Profit Before Tax	(321.600)	578.500	450.700
3. Capital Employed $ (Segment Assets – Segment Liabilities)
a) Textiles*	13525.000	13045.100	13045.100
b) Cement	9714.200	11046.200	11046.200
c) Pulp and Paper @	30366.800	30633.100	30633.100
d) Others **	3519.700	3818.600	3818.600
Total Capital Employed in Segments	57125.700	58543.000	28543.000
e) Unallocable assets less liabilities	(37677.300)	(38551.800)	(38551.800)
Total Capital Employed in the company	19448.400	19991.200	19991.200

NOTE:

1. "Textiles" include Yarn, Cloth and Denim Cloth, Viscose Filament Yarn and Tyre Yarn

2. "Cement " include Cement and Clinker

3. "Pulp and Paper" include Pulp, Writing and Printing paper, Tissue paper, Multilayer packaging Board and Fibre line

4. "Others" include Salt works, Chemicals, Floriculture and Real Estate.

5. Includes projects under implementation.

FIXED ASSETS:

· Land

· Freehold and Leasehold Land

· Building

· Water Pipe Lines and Tanks

· Plant and Machinery

· Floral Plantation

· Railway Siding and Locomotives

· Ropeway

· Reservoir and Pans

· Electric Installation

· Air Conditioning Plant

· Furniture, Fixtures and Equipments

· Vehicles

· Software Developments

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.51.15
UK Pound	1	Rs.81.80
Euro	1	Rs.68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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.