MIRA INFORM REPORT

Report Date :

01.02.2012

IDENTIFICATION DETAILS

Name :	CENTURY EXTRUSIONS LIMITED
Registered Office :	113, Park Street, N Block, 2^nd Floor, Kolkata – 700016, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.02.1988
Com. Reg. No.:	043705
Capital Investment / Paid-up Capital :	Rs.80.000 Millions
CIN No.: [Company Identification No.]	L27203WB1988PLC043705
TAN No.: [Tax Deduction & Collection Account No.]	CALC00594G
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturer of Aluminium.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1294952
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears a Dip in the profitability of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow and correct. The company can be considered for normal business dealings at usal 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 Office :	113, Park Street, N Block, 2^nd Floor, Kolkata – 700016, West Bengal, India
Tel. No.:	91-33-22291012/1291
Fax No.:	91-33-22261110/22495656
E-Mail :	century@centuryextrusions.com
Factory 1 :	Plot no. 7A, Sector B, P O Rakhjungle, Nimpura, West Midnapore – 721301, West Bengal, India

DIRECTORS

AS ON 31.03.2011

Name :	Mr. M G Todi
Designation :	Director
Name :	Mr. R N Das
Designation :	Director
Name :	Mr. V K Mushran
Designation :	Director
Name :	Mr. R K Sharma
Designation :	Director
Name :	M P Jhunjhunwala
Designation :	Chairman and Managing Director

KEY EXECUTIVES

Name :	Ms. Sunita Mukhopadhyay
Designation :	Company Secretary
Name :	Mr. Kailash Baheti
Designation :	Chief Executive Officer and Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of promoter and Promoter Group
1) Indian
a) Individuals / Hindu Undivided Family	9168967	11.46
b) Bodies corporate	32459682	40.57
2) Foreign
(B) Public Shareholdings
1) Institutions
a) Mutual Funds	1800	--
b) Financial Institutions/Banks	2500	--
c) Foreign Institutional Investors	100	0.01
2) Non – Institution
a) Bodies corporate	4495160	5.62
b) Individuals
i. Individual Shareholders holding nominal share capital upto Rs.0.100 Million	30368	37.96
ii. Individual Shareholders holding nominal share capital in excess Rs.0.100 Million	1693773	2.12
c) Any other
i) Clearing Member	2900	--
ii) NRI – Repatriable	1806539	2.26
Total	80000000	100.000

BUSINESS DETAILS

Line of Business :

Manufacturer of Aluminium.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Aluminium Extrusions	MT	15000	10033
Power T and D Hardware	MT	6000	133

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

· Axis Bank Limited

· ICICI Bank Limited

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Loans from Banks : Vehicles Loan from : ICICI Bank HDFC Bank State Bank of India Axis Bank Buyers Credit from : State Bank of India Cash Credit Account: State Bank of India Axis Bank Term Loan from : State Bank of India Foreign Currency Demand Loan State Bank of India Working Capital Demand Loan Axis Bank Channel Financing ICICI Bank Limited Other Loans : Term Loans from Govt. of West Bengal : Soft Loan Sales Tax Loan	0.093 0.178 1.066 0.855 5.702 34.766 16.801 127.500 32.377 20.000 48.515 40.000 27.475	0.225 0.345 1.538 1.043 0.000 46.728 27.400 150.000 0.000 0.000 0.000 48.000 31.400
TOTAL	355.328	306.679
UNSECURED LOAN	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Other Loans Deferred Sales Tax	18.565	25.251
TOTAL	18.565	25.251

Banking Relations :	--
Auditors :
Name :	A L P S and Company Chartered Accountant
Address :	310, Todi Chambers, 2 Lalbazar Street, Kolkata – 700029, West Bengal, India
Associates:	· Century Aluminium Manufacturing Company Limited · Vintage Capital Markets Limited · Paramsukh Properties Private Limited · Jeco Exports and Finance Limited · CAMCO Multi Metal Limited · Nandadevi Sales Agency (upto 28.02.2011) · Alfa Aluminium Private Limited · Vintage Securities Limited · Kutir Udyog Kendra (India ) Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
120000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs.10/- each	Rs.80.000 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		80.000	80.000	80.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		243.738	236.489	192.367
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		323.738	316.489	272.367
LOAN FUNDS
1] Secured Loans		355.328	306.679	189.769
2] Unsecured Loans		18.565	25.251	29.376
TOTAL BORROWING		373.893	331.930	219.145
DEFERRED TAX LIABILITIES		17.964	18.479	7.482
TOTAL		715.595	666.898	498.994
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		445.796	448.968	69.743
Capital work-in-progress		2.687	1.252	57.840
Pre-Operative Expenses		0.000	0.000	13.894
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	190.452	139.443	156.196
	Sundry Debtors	244.376	179.771	106.585
	Cash & Bank Balances	26.327	22.375	23.597
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	63.678	46.743	200.841
Total Current Assets		524.833	388.332	487.219
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	155.600	78.137	61.354
	Other Current Liabilities	71.130	54.391	42.171
	Provisions	30.991	39.126	26.177
Total Current Liabilities		257.721	171.654	129.702
Net Current Assets		267.112	216.678	357.517
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		715.595	666.898	498.994

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1631.249	1227.100	985.616
		Other Income	8.850	2.638	9.451
		Impairment of Assets Written Back	0.000	0.262	0.930
		TOTAL (A)	1640.099	1230.000	995.997
Less	EXPENSES
		Cost of Material Consumed	1283.713	898.817	728.406
		Purchase of Trading Goods	0.000	5.610	0.000
		Manufacturing, Selling and Administrative Expenses	317.316	249.873	180.344
		Increased / (Decreased) In Stock	(57.271)	(52.476)	17.135
		Rights Issue Expense Written Off	0.000	0.000	2.498
		TOTAL (B)	1543.758	1101.824	928.383
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		96.341	128.176	67.614
Less	FINANCIAL EXPENSES (D)		49.285	26.476	14.482
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.056	101.700	53.132
Less/ Add	DEPRECIATION/ AMORTISATION (F)		40.438	24.187	7.300
	PROFIT BEFORE TAX (E-F) (G)		6.618	77.513	45.832
Less	TAX (I)		0.771	24.062	17.804
	PROFIT AFTER TAX (G-I) (J)		5.847	53.451	28.028
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		137.489	93.367	74.699
Less	APPROPRIATIONS
		Proposed Dividend	0.000	8.000	8.000
		Provision for Tax on Dividend	0.000	1.329	1.360
	BALANCE CARRIED TO THE B/S		143.336	137.489	93.367
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.123	NA	NA
	TOTAL EARNINGS		0.12	NA	NA
	IMPORTS
		Raw Materials	21.294	15.029	NA
		Stores & Spares	12.191	12.886	NA
		Capital Goods	1.100	0.000	NA
		Trading Goods	0.000	5.714	NA
	TOTAL IMPORTS		34.585	33.629	NA
	Earnings Per Share (Rs.)		0.07	0.67	--

QUARTERLY

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Sales Turnover	453.260	465.250
Total Expenditure	428.990	450.940
PBIDT (Excl OI)	24.270	14.310
Other Income	4.880	5.070
Operating Profit	29.150	19.380
Interest	14.530	14.120
Exceptional Items	0.000	0.000
PBDT	14.620	5.260
Depreciation	10.080	10.400
Profit Before Tax	4.540	(5.140)
Tax	2.210	(2.530)
Reported PAT	2.320	(2.600)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	2.320	(2.600)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.36	4.35	2.81
Net Profit Margin (PBT/Sales)	(%)	0.40	6.32	4.65
Return on Total Assets (PBT/Total Assets}	(%)	0.68	9.26	8.22
Return on Investment (ROI) (PBT/Networth)		0.02	0.24	0.17
Debt Equity Ratio (Total Liability/Networth)		1.95	1.59	1.28
Current Ratio (Current Asset/Current Liability)		2.03	2.62	3.76

LOCAL AGENCY FURTHER INFORMATION

Growth of the Indian economy:

The Indian Economy has emerged with remarkable rapidity from the slowdown caused by the global financial crisis of 2008-2009. The growth rate has been 8.6 percent in 2010-11 and is expected to be around 8 to 8.5 percent in the next fiscal year. Post recovery, growth in the industrial sector was buoyant during the first two quarters of the year under review. The manufacturing sector in particular showed a remarkable robustness growing at rates of 12.6% & 9.9% respectively during the two quarters. However, the second half saw a slowdown mainly as a result of the gradual tightening of monetary policy, in response to growing inflationary pressures.

The year 2010-11 witnessed the Indian Economy as one of the fastest growing economies globally and well positioned to attain a sustainable high growth trajectory. The overall economic canvas appears to be robust and conducive to the growth of our Company in the years ahead.

The Scenario of the Aluminum Extrusion Industry

The Aluminum Extrusion industry in India is likely to see a double digit growth over the next few years due to robust demand from all its consumer segments, particularly construction, electrical and automobile sectors.

Current installed capacity of Indian Aluminum Extrusion industry approximates just under 300,000 TPA in the Organized sector, with perhaps similar capacity in unorganized sector. The Un-organized sector widely spread across the country caters to local demand of extrusions at lower end of the market.

Investment in infrastructure especially in deficit regions like Asia is growing at a phenomenal rate. In India, mega and ultra-mega power projects are being set up with a vision to make the country self reliant in electricity. There is

progressively higher use of aluminum in automobiles for light-weighting of vehicles for better fuel efficiencies. The

building/construction industry continues to grow at a rapid pace. These factors will ensure a high growth in demand for quality extruded products.

FINANCIAL PERFORMANCE

The Company achieved a sales turnover of Rs.17.962 Millions as against Rs.132.95 crores in the previous financial year recording an increase of 35.10%. The increase in sales turnover would have been significantly higher but for the workmen’s agitation pressing for their Charter of Demands for a long term wage settlement and consequent work suspension at factory in July 2010, which resulted in production slow down for a few days and complete production loss for 27 days.

The Power Transmission and Distribution Hardware (Power T & D Hardware) division registered a sale of Rs.2.16 crores as against Rs.0.69 Millions in the previous year. The balance of the turnover was contributed by Company’s principal business i.e. by Aluminium Extrusions Division.

The Profit After Tax (PAT) for the year is Rs.5.847 Millions as against Rs.53.451 Millions showing a big decline in spite of robust growth in business volume. The decline in profit during the year is mainly due to the following factors:-

(a) Production loss due to workmen’s agitation and consequent work suspension.

(b) Increase of over 50% in the Electricity Tariff over last two financial years.

(c) Significant increase in Finance Cost due to hardening of interest rates in India.

(d) Apparent slow down in general economic activity in the last quarter resulting in reduced order flows. The Company has taken steps to counter the above factors as have been mentioned elsewhere in this report and expects to achieve higher Sales Turnover as well as profitability in the next financial year.

FUTURE OUTLOOK

Extrusions

The Company has an installed capacity to produce 15000MT of extrusions per annum. As against this, our production for the year 2010-11 was 10033 MT. We thus have a significant spare capacity to increase production and sales volume.

The demand for aluminium extrusions has been growing in double digits for past few years. However, even today the present per capita consumption of aluminium in India is very low at below 2 kgs. against over 10kgs. in developed countries. Due to this very low present consumption, meaning a low base, the demand growth for extrusions is likely to remain buoyant over many years to come.

The segment-wise expected demand growth is given hereafter:

1. Power Sector – Power and infrastructure sectors in India are witnessing and would continue to witness strong

growth in the coming years with the boost from policy measures and budgetary allocations. Our country faces

continuing power shortage. More investments to plug the gap means more aluminium extrusions.

2. The vibrant Real Estate Sector in our country – Triggered by growth opportunities in the construction sector with increasing government budgetary support for the housing sector, the Company eyes for a wider market asmore homes and offices mean more aluminium extrusions. Aluminum being Green Metal and an effective substitute to wood and also being corrosion resistant favourably competes with other substitute materials such as steel and wood. The light weight, high strength and durability of aluminum alloys make aluminum attractive for building and construction.

3. Rapidly growing Transportation Sector - More road and more vehicles mean more aluminium extrusions. The

Growing Vehicular aluminium content for light weighting of vehicles to save energy will drive aluminium demand

further.

4. Engineering Applications- Aluminium Extrusions are increasingly being used to manufacture forged and forged & machined components for use as parts of machinery, fastners, rivets, wire rope ferrules, motor housings for domestic pumps, hydraulic gear pump casings, heat sinks, ladders, elevators, etc.

5. The Sustained Agriculture Emphasis in our Country – More investments in irrigation mean more aluminium Extrusions 6. Solar Energy Industry is an emerging opportunity, which implies significant consumption opportunities for aluminium extrusions from solar panels over the years to come.

7. Indian Defence Sector: Aluminium extrusions are consumed in a wide range of applications in this sector, comprising tail-end fuse connectors for detonator shells and grenades, frame-work for tents and as a roll-over ‘mattress’ for tanks to navigate difficult terrains. Given the significant supply deficits, high growth potential and conducive government policies, a large opportunity exists for the Aluminum extrusions suppliers including our Company. The above projection of robust demand growth is however tempered by the fact that the extrusioin industry is fragmented, and significant competition exists among players in the industry. As a result, the bargaining power of industry players is moderate.

POWER T AND D HARDWARE

India today stands at the threshold of being an economic superpower. Power is one of the key requirements to support and sustain our economic growth. Power is a key ingredient in driving growth in manufacturing & services. Aluminium finds growing use in this space as it is directly used in the overhead transmission and distribution lines.

Power Transmission and Distribution Hardware Fittings are required for use on Overhead Transmission and Distribution Lines for connecting Insulators with Tower/Pole Cross Arms and Insulators with conductors. The Company has manufacturing facilities for casting of Aluminium Alloys, manufacturing of Extruded products in Aluminium & its Alloys, Wire Drawing, Helical Products, Fabrication of Ferrous & Non-Ferrous Components, Argon Welding, Electric Arc Welding, Machining, Bundle Spacer Assembly, Vibration Damper Assembly, Conductor Accessories, Clamp Connectors for Hardware Assembly, and manufacturing of Tools, Dies & Moulds.

Aluminium is also used in insulated and underground cables laid in large populated urban areas and in reserved forests (to avoid deforestation), Round Tubes are used for corona control rings, grading rings, mid-span compression joints, dead-end clamps and jointing sleeves, among others, signifying huge opportunities for extrusions in the power sector.

During the financial year 2010-11 the Company recorded a sales turnover of T & D Hardware amounting to Rs. 21.600 Millions approx. as against Rs.6.900 Millions in the previous financial year. At the beginning of the year 2011-12, the Company had orders in hand worth approx. Rs. 40.000 Millions. The Company has successfully registered itself as a supplier of its products with a number of State Electricity Boards during the year and the process is continuing. The process will get further momentum as company achieves requirements of minimum years of supply track record and experience, with each passing year. The Company has received substantial orders from the said State Electricity Boards, Transmission and Distribution Line State based utilities and Erection Contractors.

As the Company gets itself registered as a supplier with more electricity utility companies, the order book will become better and stronger, and the growth in coming few years is likely to be in multiples of the previous year performance.

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.49.68
UK Pound	1	Rs.78.07
Euro	1	Rs.65.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.