MIRA INFORM REPORT

Report Date :

29.04.2013

IDENTIFICATION DETAILS

Name :	THE INDIA CEMENTS LIMITED
Registered Office :	"Dhun Building", 827, Anna Salai, Chennai – 600002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.02.1946
Com. Reg. No.:	18-000931
Capital Investment / Paid-up Capital :	Rs. 3071.781 Millions
CIN No.: [Company Identification No.]	L26942TN1946PLC000931
Legal Form :	A Public Limited Liability Company. The Company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturing and Marketing of Cement.
No. of Employees :	3195 (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 100000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well established and reputed company having a good track record. Financially appears to be strong. Liquidity position is good. Performance capability is high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Facilities: A+
Rating Explanation	Having adequate degree of safety regarding timely servicing of financial obligation. It carry low credit risk.
Date	18.01.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	"Dhun Building", 827, Anna Salai, Chennai – 600002, Tamilnadu, India
Tel. No.:	91-44-28521526
Fax No.:	Not Available
E-Mail :	investor@indiacements.co.in
Website:	www.indiacements.com
Corporate Office :	“Coromandel Towers”, 93, Santhome High Road, Karpagam Avenue, R. A. Puram, Chennai – 600028, Tamilnadu, India
Cement Factories :	Located At: TAMILNADU Sankarnagar, Tirunelveli District - 627357, Tamilnadu, India Tel No.: 91-462-2300221 Fax No.: 91-462-2300294 Sankari, Salem District - 637303, Tamilnadu, India Tel No.: 91-4283-240387 Fax No.: 91-4283-240051 Dalavoi, Ariyalur District - 621709, Tamilnadu, India Tel No.: 91-4329-248201 Fax No.: 91-4329-248248 ANDHRA PRADESH Chilamakur, Cuddapah District - 516310, Andhra Pradesh, India Tel No.: 91-8563-276150 Fax No.: 91-8563-276155 Yerraguntla, Cuddapah District – 516309, Andhra Pradesh, India Tel No.: 91-8563-275158 Fax No.: 91-8563-275154 Vishnupuram, Nalgonda District - 508355, Andhra Pradesh, India Tel No.: 91-8689-228427 Fax No.: 91-8689-228447 Malkapur, Ranga Reddy District - 500157, Andhra Pradesh, India Tel No.: 91-8411-246324 Fax No.: 91-8411-246302
Grinding Units :	Located At: TAMILNADU Vallur Village, Tirunelveli District, Tamilnadu, India MAHARASHTRA Parli Vaijnath, Beed District, Maharashtra, India

DIRECTORS

As on: 31.03.2012

Name :	Mr. N. Srinivasan
Designation :	Vice Chairman and Managing Director
Date of Birth/Age :	27.07.1931
Qualification :	B.Com., C.A.
Name :	Mrs. Chitra Srinivasan
Designation :	Vice Chairman and Managing Director
Name :	Ms. Rupa Gurunath
Designation :	Wholetime Director
Name :	Dr. B. S. Adityan
Designation :	Wholetime Director
Name :	Mr. Arun Datta
Designation :	Wholetime Director
Name :	Mr. R. K. Das
Designation :	Wholetime Director
Name :	Mr. N. R. Krishnan
Designation :	Wholetime Director
Name :	Mr. V.Manickam
Designation :	(Nominee of Life Insurance Corporation of India)
Date of Birth/Age :	01.04.1952
Qualification :	B.Sc., C.A.
Name :	Mr. K. P. Nair
Designation :	(Nominee of IDBI Bank Limited)
Name :	Mr. A. Sankarakrishnan
Designation :	Director
Date of Birth/Age :	27.10.1942
Qualification :	B.E. (Mechanical)
Name :	Mr. N. Srinivasan
Designation :	Director
Date of Birth/Age :	03.01.1945
Qualification :	B. Sc (Tech.), M.S. (IIT) Chicago

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	20015896	6.77
Bodies Corporate	66168057	22.38
Any Others (Specify)	542420	0.18
Directors/Promoters & their Relatives & Friends	542420	0.18
Sub Total	86726373	29.33
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	86726373	29.33
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	20344006	6.88
Financial Institutions / Banks	1957398	0.66
Insurance Companies	26268396	8.88
Foreign Institutional Investors	96984540	32.80
Sub Total	145554340	49.22
(2) Non-Institutions
Bodies Corporate	35957309	12.16
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	20609091	6.97
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	3457838	1.17
Any Others (Specify)	3418052	1.16
Directors & their Relatives & Friends	22204	0.01
Foreign Corporate Bodies	7118	0.00
Overseas Corporate Bodies	2000	0.00
Non Resident Indians	975759	0.33
Custodian	11854	0.00
Trusts	451824	0.15
Hindu Undivided Families	738230	0.25
Clearing Members	1209063	0.41
Sub Total	63442290	21.45
Total Public shareholding (B)	208996630	70.67
Total (A)+(B)	295723003	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	11455654	0.00
Sub Total	11455654	0.00
Total (A)+(B)+(C)	307178657	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Cement.

PRODUCTION STATUS AS ON 31.03.2012

Particulars	Unit	31.03.2012
Installed Capacity	Tonnes	14050000
Actual Production	Tonnes	9463119

GENERAL INFORMATION

No. of Employees :

3195 (Approximately)

Bankers :

• IDBI Bank Limited
• State Bank of India
• Punjab National Bank
• Kotak Mahindra Bank
• Axis Bank Limited
• HDFC Bank Limited.
• ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Bonds / Debentures	19.142	115.998
Term Loans:
Banks	8894.986	5939.809
Others	305.406	494.671
Loans repayable on Demand
Cash Credit facilities from scheduled banks (The fund based and non-fund based working capital facilities are secured by a first charge on pari passu basis on all the current assets and second charge on the movable fixed assets and immovable properties of the company).	5921.537	2768.359
Total	15141.071	9318.837
(a) Bonds / Debentures: 1. Item (i) is secured by a registered first mortgage on the Company’s properties in the State of Gujarat and further secured by a joint first equitable mortgage / charge on the immovable and movable assets (excluding assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security) present and future subject to prior charge on the movable assets in favour of the Company’s bankers for working capital requirements. 2. Item (ii) is secured by a registered first mortgage on the Company’s properties in the State of Gujarat and further secured by a joint first equitable mortgage on the immovable properties of the Company both present and future. 3. Item (iii) is secured by a registered first mortgage on the Company’s non-agricultural freehold land situate at Sathurayanpudur village, Tirunelveli Taluk, Tirunelveli and further secured by a joint first equitable mortgage / charge on the immovable and movable properties of the Company both present and future. Term Loans: From Banks: 1. Items (i) and (ii) are secured by first equitable mortgage and charge on pari passu basis (with other Lenders / Debenture Trustees) on the immovable and movable assets (with exclusion of assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security), both present and future, subject to prior charge on the movable assets in favour of the Company’s bankers for working capital requirements. 2. Items (iii) and (iv) are secured by a joint first equitable mortgage / charge on the immovable and movable assets (excluding assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security) present and future subject to prior charge on the movable assets in favour of the Company’s bankers for working capital requirements. 3. Item (v) is secured by hypothecation of Fixed Assets of the Company at Sankarnagar, Dalavoi and Yerraguntla cement plants and further secured by a joint first equitable mortgage / charge on the immovable and movable assets (excluding assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security) present and future subject to prior charge on the movable assets in favour of the Company’s bankers for working capital requirements. 4. Item (vi) is secured by a first pari passu charge (with other Lenders / Debenture Trustees) on the movable and immovable fixed assets of the Company both present and future save and except book debts and subject to prior charges created / to be created in favour of the Company’s bankers on its current assets for securing the borrowings for working capital requirements. 5. Item (vii) and (viii) are secured by way of exclusive charge on the immovable properties of the Company being the land and building situated at 93, Santhome High Road, Chennai. 6. Item (ix) is secured by first pari passu charge on the specific fixed assets of the Company’s plant at Vishnupuram, Nalgonda District excluding the assets of the thermal power plant and the land on which it is proposed to be installed and further secured by a joint first equitable mortgage/ charge on the immovable and movable properties of the Company both present and future. 7. Item (x) is secured by a pari passu charge on all the movable assets of the Company excluding the current assets and movable assets at Chennai and Parli grinding units excluding current assets and further secured by a joint first equitable mortgage / charge on the immovable properties of the Company both present and future. 8. Item (xii) is secured by a first charge on pari passu basis on the movable fixed assets and immovable properties of the Company and a second charge on the current assets. 9. Item (xiii) is secured by a first and exclusive charge on movable fixed assets of the Company’s captive power plant at Vishnupuram and further secured by a joint first equitable mortgage / charge on the immovable and movable properties of the Company both present and future. 10. The term loan from State Bank of India is additionally secured by a second charge on the current assets of the Company. 11. Loans mentioned in (b) (i) carry an option for conversion into equity shares at par not exceeding 20% of the sanctioned loan / outstanding loan in the advent of certain events and subject to conditions. From Others: 1. Item (i) is secured by an exclusive first charge by way of hypothecation of the equipment purchased together with tools & accessories at Vishnupuram cement plant and further secured by a joint first equitable mortgage / charge on the immovable and movable assets (excluding assets purchased under Asset Credit Scheme and certain other assets specifically excluded from the purview of the security) present and future subject to prior charge on the movable assets in favour of the Company’s bankers for working capital requirements. 2. Item (iii) is secured by a first pari passu mortgage and charge on the movable and immovable properties and second pari passu charge on the current assets of the Company’s Cement manufacturing facilities.

Banking Relations :	--
Auditors :
Name :	Messrs Brahmayya and Company Chartered Accountant
Address :	48, Masilamani Road, Mylapore Balaji Nagar, Royapettah Chennai - 600014, Tamilnadu, India
Name :	Messrs P.S. Subramania Iyer and Company Chartered Accountant
Address :	103, P.S. Sivaswamy Salai, Chennai - 600004, Tamilnadu, India
Subsidiary Companies:	Industrial Chemicals and Monomers Limited ICL Financial Services Limited ICL Securities Limited ICL International Limited PT. Coromandel Minerals Resources, Indonesia Trishul Concrete Products Limited Trinetra Cement Limited (Formerly Indo Zinc Limited) Coromandel Minerals Pte. Limited, Singapore Coromandel Electric Company Limited
Associate Companies:	Raasi Cement Limited Coromandel Sugars Limited India Cements Capital Limited Coromandel Travels Limited Unique Receivable Management Private Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
460000000	Equity Shares	Rs.10/- each	Rs. 4600.000 Millions
7500000	Redeemable Cumulative Preference Shares	Rs.100/- each	Rs. 750.000 Millions
	Total		Rs. 5350.000 Millions

Issued

No. of Shares	Type	Value	Amount
307178723	Equity Shares	Rs.10/- each	Rs. 3071.787 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
	Equity Shares fully paidup:
307174910	Opening balance	Rs.10/- each	Rs. 3071.749 Millions
337	Add : Partly paidup shares, subscribed fully during the year	Rs.10/- each	Rs. 0.003 Million
1500	Add : Subscribed during the year	Rs.10/- each	Rs. 0.015 Million
307176747	Total issued, subscribed and fully paidup		Rs. 3071.767 Millions

No. of Shares	Type	Value	Amount
	Equity Shares – subscribed but not fully paid (other than Directors):
2247	Opening balance	Rs.10/- each	Rs. 0.015 Million
337	Less: Partly paidup shares, subscribed fully during the year	Rs.10/- each	Rs. 0.001 Million
1910	Total - Equity Shares subscribed but not fully paid	Rs.10/- each	Rs. 0.014 Million
307178657	Total - Subscribed Equity Shares		Rs. 3071.781 Millions

List of shareholders holding more than 5% of the equity share capital (Par value per share is Rs.10/-)

Shareholder’s Name	Number of shares held	% held	Total Face Value in Millions
The Bank of New York Mellon Corporation on Behalf of Mellon Capital Management Corporation And The Boston Company Asset Management LLC together with PAC	32115284	10.45	321.153
EWS Finance and Investments Private Limited	27643432	9.00	276.434
Life Insurance Corporation of India	20703547	6.74	207.035
Vidya Subramanian	19954024	6.50	199.540
Prince Holdings (Madras) Private Limited	17900000	5.83	179.000
Trishul Investments Private Limited	17525976	5.71	175.260

Aggregate number of equity shares allotted in the previous 5 years without being received in cash:

During the year 2007-08, the Company allotted 40000000 Equity Shares of Rs.10/- each fully paidup, to the shareholders of erstwhile Visaka Cement Industry Limited (VCIL) pursuant to the Order dated 25th July, 2007 of the Honourable High Court of Judicature at Madras sanctioning the Scheme of Amalgamation of VCIL with The India Cements Limited.

Terms / Rights / restrictions attached to shares:

The Company has only one class of Equity share. Each share has a paidup value of Rs.10/-. Every shareholder is entitled to one vote per share, except for the holders of Global Depository Receipts / Global Depository Shares, as given below:

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3071.781	3071.765	3071.745
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		37604.368	37825.840	38286.495
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		40676.149	40897.605	41358.240
LOAN FUNDS
1] Secured Loans		15141.071	9318.837	8666.436
2] Unsecured Loans		7544.822	9047.905	12660.868
TOTAL BORROWING		22685.893	18366.742	21327.304
DEFERRED TAX LIABILITIES		3245.148	2742.700	2899.054
TOTAL		66607.190	62007.047	65584.598
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41329.212	38344.789	39186.167
Capital work-in-progress		1451.031	2883.972	7028.897
INVESTMENT		8519.587	1603.097	3139.733
DEFERREX TAX ASSETS		0.000	0.000	206.353
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT		88.794	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5258.087	4973.090	4477.653
	Sundry Debtors	2098.220	2544.012	2534.026
	Cash & Bank Balances	28.824	330.906	538.134
	Other Current Assets	0.000	204.247	204.247
	Loans & Advances	23728.343	28500.670	18691.861
Total Current Assets		31113.474	36552.925	26445.921
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6330.453	5425.305	7295.688
	Other Current Liabilities	8240.048	10687.365	2027.723
	Provisions	1324.407	1265.066	1099.062
Total Current Liabilities		15894.908	17377.736	10422.473
Net Current Assets		15218.566	19175.189	16023.448
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		66607.190	62007.047	65584.598

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	42034.021	35007.177	41007.028
		Other Income	192.884	396.126	1209.892
		Less: Excise Duty	0.000	0.000	(4134.359)
		TOTAL (A)	42226.905	35403.303	38082.561
Less	EXPENSES
		Cost of materials consumed	5410.253	5162.189
		Changes in Inventories of Finished goods / Work-in-Progress	31.594	(113.992)
		Employee benefits expense	3026.336	2654.397
		Manufacturing and Other Operating Expenses	12275.462	11607.132	29011.749
		Administration and Other Charges	2023.721	1645.580
		Selling and Distribution Expenses	10157.084	9645.880
		Donations	75.976	69.189
		Foreign currency translation difference on FCCBs	36.382	(23.250)
		TOTAL (B)	33036.808	30647.125	29011.749
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9190.097	4756.178	9070.812
Less	FINANCIAL EXPENSES (D)		2867.300	1417.166	1426.397
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6322.797	3339.012	7644.415
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2512.949	2440.277	2331.206
	PROFIT BEFORE TAX (E-F) (G)		3809.848	898.735	5313.209
Less	TAX (H)		880.154	217.699	1769.800
	PROFIT AFTER TAX (G-H) (I)		2929.694	681.036	3543.409
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9544.855	9861.119	8234.105
Less	APPROPRIATIONS
		Transfer to General Reserve	400.000	100.000	700.000
		Proposed Dividend on Equity capital	714.000	537.300	614.359
		Dividend Distribution tax	0.000	0.000	102.036
		Transfer to Contingency Reserve	0.000	360.000	500.000
		Transfer to Debenture Redemption Reserve	475.800	0.000	0.000
	BALANCE CARRIED TO THE B/S		10884.749	9544.855	9861.119
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	850.000	573.400	451.700
		Other Earnings	25.447	15.971	12.772
	TOTAL EARNINGS		875.447	589.371	464.472
	IMPORTS
		Raw Materials	161.004	166.288	223.663
		Stores & Spares	54.056	49.883	330.435
		Capital Goods	146.629	18.262	99.717
		Others	4811.972	4195.683	3752.411
	TOTAL IMPORTS		5173.661	4430.116	4406.226
	Earnings Per Share (Rs.)		9.54	2.22	12.49

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	12050.300	11256.800	10838.800
Total Expenditure	9486.700	9176.200	9008.000
PBIDT (Excl OI)	2563.600	2080.600	1830.800
Other Income	0.400	1.700	18.400
Operating Profit	2564.000	2082.300	1849.200
Interest	699.200	666.900	711.100
Exceptional Items	(200.000)	000	000
PBDT	1664.800	1415.400	1138.100
Depreciation	691.600	698.800	707.600
Profit Before Tax	973.200	716.600	430.500
Tax	352.500	225.800	169.300
Provisions and contingencies	000	000	000
Profit After Tax	620.700	490.800	261.200
Extraordinary Items	000	000	000
Prior Period Expenses	000	000	000
Other Adjustments	000	000	000
Net Profit	620.700	490.800	261.200

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	6.94	1.92	9.31
Net Profit Margin (PBT/Sales)	(%)	9.06	2.57	12.96
Return on Total Assets (PBT/Total Assets}	(%)	5.26	1.20	8.09
Return on Investment (ROI) (PBT/Networth)		0.09	0.02	0.13
Debt Equity Ratio (Total Debt /Networth)		0.56	0.45	0.52
Current Ratio (Current Asset/Current Liability)		1.96	2.10	2.54

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS

CHENNAI COURT CASE STATUS INFORMATION SYSTEM

Case Status: Pending

Status Of: CIVIL MISC. APPEAL

Case No: 1735

Year: 2012

Petitioner: COMMISSIONER OF CENTRAL

Respondent: M/S THE INDIA CEMENTS LIMITED

Pet's Advocate: M/S.V.SUNDARESWARAN

Res's Advocate: M/S C.SARAVANAN

Category: Central Excises and Salt Act, 1944 (1 of 1944)

Last Listed on: No Date Mentioned

Case Updated on : 21.09.2012

CHENNAI COURT CASE STATUS INFORMATION SYSTEM

Case Status: Pending

Status Of: CIVIL MISC. APPEAL

Case No: 2243

Year: 2012

Petitioner: COMMISSIONER OF CENTRAL EXCISE

Respondent: M/S THE INDIA CEMENTS LIMITED

Pet's Advocate: M/S. T. CHANDRASEKARAN

Category: NO CATEGORY MENTIONED

Last Listed on: No Date Mentioned

Case Updated on : 18.10.2012

OPERATIONS

COMPANY PERFORMANCE

The details relating to the performance of the Company have been outlined in the Management Discussion and Analysis Section. As mentioned therein while there was a marginal growth of 6.6% for cement demand on an all India basis, the Southern region registered practically nil growth during the year and had a negative growth of 3% upto December 2011. With substantial increase in capacity in the region, the overall capacity utilization was lesser than that of all India at 63% only in the South. Given the back drop of the tight market conditions, the cement production of the Company was lower than that of previous year.

The overall clinker production was at 71.95 lakh tons (76.34 lakh tons) while the grinding was at 94.63 lakh tons (99.80 lakh tons). The sale of cement was at 94.51 lakh tons as opposed to 99.32 lakh tons with a clinker sale of 0.76 lakh tons as compared to 0.32 lakh tons in the previous year.

With better selling prices prevailing, the total sales and other income for the year was higher at Rs.42226.900 Millions registering a growth of 19% over that of previous year. The cost of production was higher on account of the increase in the prices of materials, fuel, power, transport charges and consequently the EBIDTA was at Rs.9190.097 Millions as compared to Rs.4756.178 Millions in the previous year. Interest charges were higher at Rs.2867.300 Millions as compared to Rs.1417.166 Millions in the previous year due to loans taken for redemption of FCCB and higher utilization of cash credit. The depreciation / amortization charges were marginally higher at Rs.2512.949 Millions as compared to Rs.2440.277 Millions due to higher capitalization. The foreign currency translation difference resulted in an expenditure of Rs.36.382 Millions as compared to a gain of Rs.23.250 Millions in the previous year. The provision for current tax was at Rs.377.700 Millions (Rs.167.700 Millions) while the deferred tax provision as per AS 22 was at Rs.502.400 Millions as compared to Rs.50.000 Millions in the previous year. The resultant profit after tax was at Rs.2929.694 Millions as compared to Rs.681.036 Millions in the previous year.

The performance could have been better but for the bout of cost increases as detailed below:

a. Increase in wages due to All India Wage Settlement which along with the cost of living index by 356 points and this together with the increased provision for unavailed leave as per Accounting Standard 15.

b. Increase in the price of diesel during the year which impacted the inward and outward freight cost and raw material prices.

c. Increase in the price of coal by Singareni Colleries Limited from April 2011.

d. Fuller impact of increase in price of fly-ash by the state owned thermal plants in Tamil Nadu and Andhra Pradesh.

e. Fuller impact of power tariff increases by the State Electricity Boards in the previous year.

f. Depreciation of rupee against dollar impacting the coal price.

The improvement in selling price together with cost reduction initiatives taken in improving the operating parameters and improvement in blending ratio have more than offset the above cost increases. The Company's Sankari cement factory was granted Licence for Quality Management Systems in accordance with IS/ISO 9001:2008 by the Bureau of Indian Standards, Chennai and that the said Licence would be valid from 28th November, 2011 to 27th November, 2014.

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMY – AN OVERVIEW

Against the backdrop of the Eurozone crisis, turmoil in West Asia and spike in crude prices, the fiscal year 2011-12 was a year of "recovery interrupted" for the Indian economy. India's GDP growth is estimated at 6.9% in 2011-12 - a sharp fall from 8.4% in the last year.

While the estimated growth of 6.9% in the fiscal year 2011-12 can be considered reasonably healthy in view of the adverse global developments mentioned above, it would be unwise to ignore the fact that domestic factors like high inflation, depressed investment climate and unaddressed manufacturing bottlenecks also slowed down industrial activity. India's slow down in 2011-12 can be attributed almost entirely to weak industrial growth with the good performance of the services and agricultural sectors. In 2011-12 the growth is estimated to be 2.5% in agriculture, 3.9% in industry and 9.4% in services.

EXPORTS / IMPORTS

Owing to buoyant demand from diversified overseas markets, exports, according to provisional figures released by the Industry, Chemicals and Textiles Ministry, exceeded the targeted US$ 300 billion for the fiscal year 2011-12. The sectors that posted impressive growth included engineering, gems and jewellery, textiles and pharmaceuticals.

Imports during 2011-12 clocked a high of US$ 485 billion mainly on account of rising global oil prices with oil imports touching US$ 150 billion. The trade deficit widened to US$ 185 billion and the Government faces a stiff challenge to keep it under control in the current fiscal.

During the period April-December 2011, the Current Account Deficit (CAD) - an indication of the gap between foreign exchange inflows and outflows, surged to US$ 53.7 billion (4% of the GDP) from 3.30% of GDP in the same period last year - reflecting higher trade deficit on account of imports of petrol, oil, lubricants, gold and silver.

INFLATION

Inflation which had raged at double digit levels over the last two years is now lower. The decline in inflation has provided some relief and the time is ripe therefore to boost investment in the economy. The Prime Minister's Economic Advisory Council has opined that inflation would drop further and hover around 5% to 6% in the current fiscal 2012-13.

INDUSTRY SCENARIO

Demand for cement in the country improved during the current year under review, registering a 6.60% growth better than 4.70% registered in the previous year. Given the long term nature of business and also since it takes, of late, 24-30 months to set up capacity, Industry created capacity much ahead of demand and this led to lower capacity utilization - more so in South, where substantial capacity came into play - Capacity utilization in South was 63% as against All India Capacity utilization of 75%. It is expected that capacity utilization will improve steadily in line with growth in demand in the coming years.

Demand growth was healthy in regions where Infrastructure and Housing activities were brisk on the back of progressive policy of State Government. Western region registered significant growth of 13.80% followed by North of 11%, Central of 9.30% and East of 2.90%. However, in Southern region, growth was flat primarily due to lack of infra and housing projects in Andhra Pradesh and Karnataka.

It is heartening to note that during January - March '12 quarter, demand has grown sharply at 10% as opposed to 5.60% in the preceding 9 months. South has shown a remarkable growth of 9.40% as compared to negative growth of 3% in the preceding three quarters.

Southern cement industry which has the highest capacity in the country, have been striving hard to access Northern and Eastern markets in the interest of improving the capacity utilization, but is constrained due to Rail Rakes availability.

Given that supply-demand imbalance in South is relatively higher, it is expected that demand will catch up with supply by 2014-15. With a pronounced GDP growth of around 7.50% next year, the industry can expect a reasonable growth rate of 8% - 9% in the coming years which should enable the industry to operate at around 80% of its capacity.

In addition to the supply overhang, the industry had also to bear the substantial cost push in the form of increase in the price of coal, diesel price revision, increase in the Sales Tax on cement by 2% in Tamil Nadu, heavy depreciation of Rupee against Dollar of more than 13% from Rs.45 to Rs.51 impacting coal prices, revision in power tariff in Andhra Pradesh and continued power cut and load shedding in the States of Tamil Nadu and Andhra Pradesh necessitating usage of high cost DG and purchased power. In addition, the Union Budget 2012 proposes to increase the Excise Duty from 10% to 12% and steep increase in railway freight on inward and outward movement of materials ranging from 20% to 30% and a steep 35% increase in power tariff in Tamil Nadu from 1/4/2012. Given all these adverse factors the Company's main challenge during the year under review was to manage volumes and cost of production on the one hand and optimize selling prices on the other to improve the bottom line.

OUTLOOK

The Prime Minister's Economic Advisory Council (PMEAC) has projected a 7.5% to 8% growth for the fiscal year 2012-13.

Economic experts are banking on the domestic market to sustain growth through a Government led initiative to boost private sector infrastructure investments. With industrial growth exhibiting signs of a revival and given the Government's intention to boost agriculture development and give a fillip to infrastructural growth, the clocking of a GDP growth of 7.5% in 2012-13 could well be achievable.

Both the Central and State Governments have plans to boost investments in housing for the lower income groups which could help drive cement demand together with proposed investments on roads and other infrastructural projects. The recent proposals of the Reserve Bank of India in its Credit Policy to reduce Repo and Reverse Repo rates by 50 basis points is expected to soften housing loan interest rates thereby giving a fillip to demand for housing for the middle income sector.

Given all these positive factors, it is reasonably expected a 8% to 10% annual growth in cement demand over the next few years and an early restoration of parity between cement demand and supply which should augur well for the cement industry.

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Others	5745.816	5997.887
Commercial Papers placed with Banks	0.000	400.000
Short-Term Loans - Banks	1799.006	2650.018
Total	7544.822	9047.905

FIXED ASSETS

• Land Building
• Railway Siding
• Plant and Machinery
• Electrical Installation
• Ships
• Furniture and Fixtures
• Vehicles
• Computer Softwares

Website Details

Company Profile

Subject was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949. Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh. The capacities as on March 2010 have reached 14.05 mtpa.

COMPANY HIGHLIGHTS

• The Company is the largest producer of cement in South India.

• The Company's plants are well spread with three in Tamilnadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra

• The Company is the market leader with a market share of 28% in the South. It aims to achieve a 35% market share in the near future. The Company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimisation of existing plants as well as by acquisitions.

• The Company has a strong distribution network with over 10,000 stockists of whom 25% are dedicated.

• The Company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power.

• Regional offices in all southern states and Maharasthra offices/representative in every district.

MILESTONE

• 1946 Incorporation of The India Cements Limited.

• 1949 Commissioning of first Cement plant at Sankarnagar-Installed capacity 1 lac tonnes per annum

• 1963 Commissioning of second Cement plant at Sankaridrug-Installed capacity 2 lac tonnes per annum

• 1969 Capacity expansion at Sankarnagar touches 9 lac tonnes per annum.

• 1969 Awarded Merit Certification for Outstanding Export Performance (1968-1969).

• 1971 Capacity Expansion at Sankari Durg to 6.00 Lakh tonnes per annum.

• 1990 Acquisition of Coromandel Cement plant at Cuddapah-Installed Capacity rises to 2.6 million tonnes per annum. The India Cements Limited. becomes the largest producer of Cement in South India

• 1990 Conversion of Sankarnagar Plant to Dry Process with the increased capacity of 1.00 million tonnes per annum

• 1991 India Cements ventures into Shipping. Sets up a Shipping Division.

• 1994 ISO 9002 Certification for Sankarnagar plant

• 1994 Floats successfully US$ 50 million GDR issue.

• 1995 Announces issue of 1:1 Bonus shares.

• 1996 India Cements' green field cement plant at Dalavoi commences commercial production. Installed capacity 0.9 million tonnes per annum.

• 1997 India cements acquires Aruna Sugars Finance Limited Renamed as India Cements Capital and Finance Limited

• 1997 India Cements acquires Cement Plant of Visaka Cement Industry Limited., at Tandur, Ranga Reddy district of Andhra Pradesh. Installed capacity 0.9 Million Tonnes

• 1998 India Cements acquires Cement Corporation of India's Yerraguntla Cement Plant at Andhra Pradesh. Installed capacity 0.4 Million Tonnes.

• 1998 India cements acquires Raasi Cement Limited., at Nalgonda District of Andhra Pradesh. Installed capacity 1.8 million tonnes.

• 1999 India Cements acquires Cement Plant of Shri Vishnu Cement Limited., at Nalgonda District of Andhra Pradesh. Installed capacity 1.0 Million Tonnes.

• 1999 Turnover sails over the Rs. 10000.000 Millions mark.

• 2001 India Cements divests its stake in Sri Vishnu Cement Limited.

• 2001 Group's overall capacity reaches 9 million tonnes.

• 2004 The Unique Waste Heat Recovery System for generation of power from waste gas at Vishnupuram Cement Plant was commissioned during November 2004, for a capacity of 7.7 MW of power.

• 2004 The company through its Special Purpose vehicle M/s Coromandel Electric Co Limited has commissioned a (gas based) captive power plant at Ramanathapuram for a capacity of 17.4 MW and the same has started supplying power from the month of November 2004.

• 2005 The Company has successfully completed an equity issue in the international market during October 2005 by issuing 25,613,796 Global Depositary Shares (GDSs) at USD 4.3226 per GDS, (each GDS representing 2 underlying equity shares of Rs 10 each) and raised an amount of Rs 4970.000 Millions including a premium of Rs 4460.000 Millions.

• 2006 The Company has issued unsecured Zero Coupon Convertible Bonds due 2011 (FCCBs) for US $75 Million to investors outside India at an initial conversion price of Rs.305.57 per share.

• 2007 The Hon'ble High Court of Judicature at Madras vide its order dated 25th July 2007 sanctioned the Scheme of amalgamation of Visaka Cement Industry Limited with The India Cements Limited.

• 2007 The Company has converted the Sankari plant from wet process to dry process and commissioned the plant.

• 2008 The Company has revived its shipping business with the purchase of two ships (dry bulk carriers) with a total capacity of 79843 DWT.

• 2008 The Company has successfully bid for the Chennai franchise of the DLF-IPL 20/20 Cricket Tournament – “Chennai Super Kings”.

• 2008 The Company has completed and commenced commercial production of one million tonne grinding plant at Chennai.

• 2009 The Company has completed and commenced commercial production of one million tonne grinding plant at Parli (Maharashtra).

• 2009 The Company’s subsidiary, namely, Trishul Concrete Produts Limited has completed and commenced commercial production of one lakh Cu.M ready mix concrete Plant at Hyderabad (Andhra Pradesh).

• 2009 The II line of 1.2 MT at Malkapur was commenced operations from March 2009.

• 2009 The upgraded capacity of kiln I to 3000 TPD (1700 TPD) at Vishnupuram started functioning from April 2009.

• 2010 ICL Financial Services Limited (ICLFSL), the Company’s wholly owned subsidiary, acquired 60.89% (including shares acquired under open offer) of equity share capital of Indo Zinc Limited (IZL). Consequently, IZL became a subsidiary of ICLFSL and ultimate subsidiary of the Company in January, 2010.

• 2010 The Corporate office of the company was shifted in February, 2010 to its own building “Coromandel Towers” at 93, Santhome High Road, Karpagam Avenue, MRC Nagar, Chennai 600028

• 2010 The Company privately placed in March, 2010 24594000 equity shares at a price of Rs.120.20 per share (including premium of Rs.110.20 per share) to Qualified Institutional Buyers.

• 2010 The Company’s cricket franchise “Chennai Super Kings” has won IPL III Trophy in April 2010

• 2010 The Company invested 99.99% of the share capital of Coromandel Minerals Pte. Limited (CMPL), Singapore, making CMPL a subsidiary effective from 1st June 2010.

• 2010 The Chilamakur plant with capacity upgraded to 4500 Tonnes per day started functioning from June 2010.

• 2010 The Company’s cricket franchise “Chennai Super Kings” won Champions League T20 tournament on 26th September 2010.

• 2011 Trinetra Cement Limited (formerly Indo Zinc Limited), the company’s subsidiary, has commenced commercial production of its 1.5 million tonnes cement plant in Banswara District, Rajasthan, in January 2011.

• 2011 IS/ISO 9001:2008 Certification for Dalavoi Plant in February 2011.

• 2011 The Company redeemed fully all the outstanding Foreign Currency Convertible Bonds for US$ 75 Million on 12th May 2011, the scheduled date.

• 2011 The Company’s cricket franchise “Chennai Super Kings” won IPL IV Trophy on 28th May 2011.

• 2011 The Birth Centenary of Sri. T. S. Narayanaswami, one of the Founders of the Company, was celebrated on 11th November, 2011

• 2011 IS/ISO 9001:2008 Certification for Sankari Plant in November 2011.

• 2012 The 48 MW Captive Power Plant at Sankarnagar was commissioned in January 2012.

• 2012 IS/ISO 9001:2008 Certification for Yerraguntla Plant in April 2012.

• 2012 The Company had acquired its third bulk carrier of 52489 DWT in August 2012.

• 2012 Commemorative Postage Stamp on the Birth Centenary of Sri. T. S. Narayanaswami, one of the Founders of the Company, was released on 11th November, 2012.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No 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. 54.29
UK Pound	1	Rs. 83.88
Euro	1	Rs. 70.68

INFORMATION DETAILS

Report Prepared by :

UDS

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	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.