MIRA
INFORM REPORT
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Report Date : |
17.07.2013 |
IDENTIFICATION DETAILS
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Name : |
CENTURY TEXTILE AND INDUSTRIES LIMITED |
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Registered
Office : |
‘Century Bhavan’, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
20.10.1897 |
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Com. Reg. No.: |
11-000163 |
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Capital
Investment / Paid-up Capital : |
Rs. 930.400
Millions |
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CIN No.: [Company Identification
No.] |
L17120MH1897PLC000163 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC10668A |
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PAN No.: [Permanent Account No.] |
AAACC2659Q |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Textiles including Yarn, Viscose Filament
Yarn, Cement, Pulp and Paper and Others like Salt Works, Chemicals,
Floriculture and Real Estate. |
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No. of Employees
: |
12972 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (60) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 72198000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a part of B.K. Birla Group. It is an old and well
established company having fine track record. The company has incurred a huge loss during 2013. Liquidity position
appears to be stretched. However, financial position is strong and healthy. Trade relations are fair. Business is active. Payment terms are
regular. In view of experienced promoters and well diversified business profile
the company can be considered good for the 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities : AA- |
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Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
July 05, 2013 |
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Rating Agency Name |
CARE |
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Rating |
Short term bank facilities : A1+ |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
July 05, 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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE [91-22-24957000]
LOCATIONS
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Registered/ Corporate Office : |
‘Century Bhavan’, |
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Tel. No.: |
91-22-24957000 |
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Fax No.: |
91-22-24309491/ 24361980 |
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E-Mail : |
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Website : |
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Corporate
Office: |
CENTURY RAYON Industry House, 159, Churchgate Reclamation, Mumbai – 400020, Tel No.: 91-22-22027570 |
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Factory : |
Located at: ¯
BIRLA
CENTURY Plot No. 826, GIDC Industrial Estate, Jhagadia, District Bharuch - 393110, Gujarat, India ¯
CENTURY
RAYON Rayon, Tyre Cord and Chemical Plants, Murbad Road, Kalyan - 421103, Maharashtra, India ¯
CENRAY
MINERALS AND CHEMICALS Nawa Nagna, Jamnagar - 361007, Gujarat, India ¯
CENTURY
CEMENT P.O. Baikunth, District Raipur - 493116, Chhattisgarh, India ¯
MAIHAR
CEMENT UNITS I and II P.O. Sarlanagar, Maihar, District Satna - 485772, Madhya Pradesh, India ¯
MANIKGARH
CEMENT P.O. Gadchandur, District Chandrapur - 442908, Maharashtra, India ¯
SONAR
BANGLA CEMENT Village Dhalo, P.O. Gankar, P.S. Raghunathganj, District Murshidabad - 742227, West Bengal, India ¯
CENTURY
PULP AND PAPER Ghanshyamdham, P.O. Lalkua, District Nainital - 262402, Uttarakhand, India ¯
CENTURY
YARN ¯
CENTURY
DENIM Village and Post Satrati, Tehsil – Kasrawad, District Khargone - 451660, Madhya Pradesh, India Tel. No.: 91-7285-255277/ 255281/ 82/ 83/ 84 Fax No.: 91-7285-255305 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. B.K. Birla |
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Designation : |
Chairman |
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Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Director |
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Name : |
Mr. Pradip Kumar Daga |
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Designation : |
Director |
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Name : |
Mr. Arvind C. Dalal |
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Designation : |
Director |
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Date of Appointment : |
09.05.1986 |
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Name : |
Mr. Amal Ganguli |
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Designation : |
Director |
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Name : |
Mr. B. L. Jain |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
76 Years |
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Qualification : |
Bachelor’s
degree in Commerce and is a Chartered Accountant. |
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DIN No.: |
00040804 |
KEY EXECUTIVES
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TEXTILE CENTURY TEXTILES BIRLA CENTURY, CENTURY YARN AND DENIM : |
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Name : |
Mr. R.K. Dalmia |
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Designation : |
Senior President |
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Name : |
Mr. D.K. Agrawal |
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Designation : |
President (Corporate Finance) and Secretary |
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Name : |
Mr. U.C. Garg |
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Designation : |
Executive President (Purchase and Projects) |
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Name : |
Mr. R.C. Panwar |
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Designation : |
Joint President (Marketing) |
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BIRLA CENTURY |
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Name : |
Mr. Sanjay Khimesra |
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Designation : |
Joint President (Birla Century) |
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Name : |
Mr. Abhijit Bhatwadekar |
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Designation : |
Vice President (Spinning) |
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Name : |
Mr. Pankaj Mehta |
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Designation : |
Vice President (Processing) |
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CENTURY YARN AND DENIM |
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Name : |
Mr. R.S. Verma |
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Designation : |
Joint President |
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RAYON CENTURY RAYON, TYRECORD AND CHEMICALS: |
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Name : |
Mr. O.R. Chitlange |
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Designation : |
Senior President |
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Name : |
Mr. R. Lalwani |
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Designation : |
President (Commercial) |
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Name : |
Mr. S.M. Sanklecha |
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Designation : |
Joint President (Purchase) |
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Name : |
Mr. S.K. Mital |
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Designation : |
Joint President (Engineering Services and Auxiliaries) |
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Name : |
Mr. Subodh Dave |
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Designation : |
Senior Vice President (Personnel and Administration) |
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Name : |
Mr. Apurva Gupta |
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Designation : |
Senior Vice President (Rayon) |
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Name : |
Mr. V.K. Jhingon |
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Designation : |
Senior Vice President (Tyrecord, CSY and TQM) |
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Name : |
Mr. Sudhir Luthra |
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Designation : |
Senior Vice President (Chemicals and Safety) |
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Name : |
Mr. B. Manmohan |
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Designation : |
Vice President (Finance) |
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Name : |
Mr. Arun Jhawar |
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Designation : |
Vice President (Marketing) |
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CEMENT CENTURY, MAIHAR, MANIKGARH AND SONAR BANGLA
CEMENTS: |
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Name : |
Mr. B.L. Jain |
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Designation : |
Senior President |
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CENTURY CEMENT AND SONAR BANGLA CEMENT: |
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Name : |
Mr. Alok Patni |
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Designation : |
President (Works) |
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Name : |
Mr. Vijay Kumar |
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Designation : |
Joint President (Plant) |
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Name : |
Mr. M.K. Jain |
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Designation : |
Senior Vice President (Purchase) |
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Name : |
Mr. A.K. Panja |
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Designation : |
Senior Vice President (Commercial) |
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Name : |
Mr. Satish Gurtoo |
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Designation : |
Senior Vice President (Electrical and Instrumentation) |
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Name : |
Mr. Arun Gaur |
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Designation : |
Senior Vice President (Finance) |
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Name : |
Mr. C.S. Vithalkar |
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Designation : |
Vice President (Mechanical) |
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Name : |
Mr. A.K. Biswas |
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Designation : |
Vice President (Project) |
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Name : |
Mr. A.K. Bajpai |
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Designation : |
Vice President (Marketing) |
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Name : |
Mr. B. P. Mishra |
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Designation : |
Vice President (Mines) |
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Name : |
Mr. Piyush Kumar Choudhary |
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Designation : |
Vice President (Power Plant) |
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MAIHAR CEMENT UNITS I AND II: |
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UNIT I: |
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Name : |
Mr. R.K. Vaishnavi |
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Designation : |
President (Works) |
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Name : |
Mr. P. M. Intodia |
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Designation : |
Executive President (Marketing) |
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Name : |
Mr. Arvind Kumar Jain |
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Designation : |
Joint President (Mechanical) |
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Name : |
Mr. Manoj Gupta |
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Designation : |
Joint President (Finance) |
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Name : |
Mr. Ajai Kumar Jain |
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Designation : |
Senior Vice President (Production) |
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Name : |
Mr. R. Deshpande |
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Designation : |
Senior Vice President (Purchase) |
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Name : |
Mr. Govind Mahajan |
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Designation : |
Vice President (Electrical & Instrumentation) |
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UNIT II |
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Name : |
Mr. R.S. Doshi |
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Designation : |
Executive President (Commercial) |
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Name : |
Mr. S. K. Tewari |
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Designation : |
Executive President (Mines and Projects) |
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Name : |
Mr. Ashok Maheshwari |
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Designation : |
Joint President (Marketing) |
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Name : |
Mr. P.K. Agarwal |
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Designation : |
Joint President (Purchase) |
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Name : |
Mr. A.S. Thakur |
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Designation : |
Vice President (Materials and Systems) |
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Name : |
Mr. J. P. Pandey |
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Designation : |
Vice President (Mechanical) |
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Name : |
Mr. S. K. Singh |
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Designation : |
Vice President (Personnel) |
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MANIKGARH CEMENT UNITS I AND II |
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UNIT I |
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Name : |
Mr. P.S. Bakshi |
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Designation : |
President (Works) |
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Name : |
Mr. A.D. Karwa |
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Designation : |
Executive President (Finance and Marketing) |
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Name : |
Mr. R.K. Udge |
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Designation : |
Joint President (Mines) |
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Name : |
Mr. M. P. Joshi |
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Designation : |
Joint President (Electrical and
Instrumentation) |
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Name : |
Mr. A.K. Jain |
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Designation : |
Senior Vice President (Mechanical) |
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Name : |
Mr. Deepal Jaisinghni |
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Designation : |
Vice President (Mechanical) |
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UNIT II |
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Name : |
Mr. J. L. Tiwari |
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Designation : |
Senior Executive President (Plant) |
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Name : |
Mr. S.K. Mandelia |
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Designation : |
Executive President (Commercial) |
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Name : |
Mr. N. D. Hemke |
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Designation : |
Senior Vice President (Mechanical) |
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Name : |
Mr. E. V. Ravikumar |
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Designation : |
Vice President (Finance) |
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Name : |
Mr. V. K. Sharma |
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Designation : |
Vice President (Mechanical) |
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Name : |
Mr. P. K. Bajaj |
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Designation : |
Vice President (Commercial) |
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Name : |
Mr. G.V. Suryanarayan |
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Designation : |
Vice President (Instrumentation) |
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PAPER: |
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CENTURY PULP AND PAPER: |
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Name : |
Mr. Bipin Lal |
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Designation : |
Chief Executive
Officer |
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Name : |
Mr. J. P. Narain |
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Designation : |
Chief Operating Officer
(Works) |
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Name : |
Mr. Karthik V. Kumar |
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Designation : |
Chief Strategy
and Marketing Officer |
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Name : |
Mr. Indranil Roy |
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Designation : |
Chief Sales
Officer |
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Name : |
Mrs. Archana Singh |
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Designation : |
Chief Finance and
Business Planning Officer |
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Name : |
Mr. Ashutosh Bhalerao |
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Designation : |
Chief Supply
Chain Officer |
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Name : |
Mr. A. K. Bhatia |
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Designation : |
Chief Procurement
Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
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|
210470 |
0.23 |
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|
37358910 |
40.28 |
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|
37569380 |
40.51 |
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|
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Total shareholding of Promoter and Promoter Group (A) |
37569380 |
40.51 |
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(B) Public Shareholding |
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|
|
|
|
|
|
|
9241177 |
9.96 |
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|
3819332 |
4.12 |
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|
2580 |
0.00 |
|
|
2388936 |
2.58 |
|
|
8958357 |
9.66 |
|
|
24410382 |
26.32 |
|
|
|
|
|
|
8910311 |
9.61 |
|
|
|
|
|
|
16245752 |
17.52 |
|
|
4030741 |
4.35 |
|
|
1572914 |
1.70 |
|
|
473266 |
0.51 |
|
|
625426 |
0.67 |
|
|
365820 |
0.39 |
|
|
104134 |
0.11 |
|
|
388 |
0.00 |
|
|
880 |
0.00 |
|
|
3000 |
0.00 |
|
|
30759718 |
33.17 |
|
Total Public shareholding (B) |
55170100 |
59.49 |
|
Total (A)+(B) |
92739480 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
306200 |
0.00 |
|
|
306200 |
0.00 |
|
Total (A)+(B)+(C) |
93045680 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionShareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the
Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % |
||
|
1 |
Pilani Investment and Industries Corporation Limited |
34220520 |
36.78 |
|
2 |
Kesoram Industries Limited |
2746100 |
2.95 |
|
3 |
Aditya Marketing and Manufacturing Limited |
60900 |
0.07 |
|
4 |
Prakash Educational Society |
128000 |
0.14 |
|
5 |
Birla Educational Institution |
44000 |
0.05 |
|
6 |
Manav Investment and Trading Company Limited |
11950 |
0.01 |
|
7 |
Godavari Corporation Private Limited |
126740 |
0.14 |
|
8 |
Sunanda Medical Institute |
4000 |
0.00 |
|
9 |
Padmavati Investment Limited |
16700 |
0.02 |
|
10 |
Basant Kumar Birla |
131900 |
0.14 |
|
11 |
Sarala Devi Birla |
67900 |
0.07 |
|
12 |
Ramavatar Makharia |
1110 |
0.00 |
|
13 |
Ravi Makharia |
3620 |
0.00 |
|
14 |
Laxmi Devi Makharia |
3440 |
0.00 |
|
15 |
Ganga Somani |
2500 |
0.00 |
|
|
Total |
37569380 |
40.38 |
Shareholding of securities (including shares, warrants, convertible securities)
of persons belonging to the category Public and holding more than 1% of the
total number of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
HDFC Trustee Company Limited HDFC Top 200 Fund |
4890300 |
5.26 |
|
|
2 |
Life Insurance Corporation of India |
3276238 |
3.52 |
|
|
3 |
SBI Magnum Tax Gain 1993 |
1800000 |
1.93 |
|
|
4 |
Birla Corporation Limited |
1807660 |
1.94 |
|
|
5 |
Orient Paper and Industries Limited |
1545140 |
1.66 |
|
|
6 |
Credit Suisee (Singapore) Limited |
1054740 |
1.13 |
|
|
7 |
Macquarie Bank Limited |
1229000 |
1.32 |
|
|
8 |
Birla Sunlife Trustee Company Private Limited A/c Birla Sunlife Tax
Relief 1996 and Others |
1015939 |
1.09 |
|
|
|
Total |
16619017 |
17.86 |
|
Shareholding of securities (including shares, warrants, convertible
securities) of persons (together with PAC) belonging to the category “Public” and
holding more than 5% of the total number of shares of the company
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % |
|
|
1 |
HDFC Trustee Company Limited HDFC Top 200 Fund |
4890300 |
5.26 |
|
|
|
Total |
4890300 |
5.26 |
|
Details of Depository Receipts (DRs)
|
Sl. No. |
Type of
Outstanding DR (ADRs, GDRs, SDRs, etc.) |
No.
of Outstanding DRs |
No.
of Shares Underlying |
Shares
Underlying Outstanding DRs as % |
|
1 |
GDRs |
306200 |
306200 |
0.33 |
|
|
Total |
306200 |
306200 |
0.33 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Textiles including Yarn, Viscose Filament
Yarn, Cement, Pulp and Paper and Others like Salt Works, Chemicals,
Floriculture and Real Estate. |
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Products/ Services : |
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GENERAL INFORMATION
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No. of Employees : |
12972 (Approximately) |
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Bankers : |
¯ State Bank of
India ¯ Bank of Baroda ¯ State Bank of
Hyderabad ¯ Allahabad Bank ¯ Union Bank of
India ¯ IDBI Bank ¯ Dena Bank ¯ Syndicate Bank ¯ State Bank of Tranvancore ¯ Indusind Bank ¯ State Bank of
Mysore ¯ ICICI Bank ¯ Development
Credit Bank ¯ State Bank of
Patiala ¯ State Bank of
Bikaner and Jaipur |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Dalal and Shah Chartered
Accountants |
|
Address : |
Mumbai, |
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Where significant
influence exists : |
¯ Pilani Investment and Industries Corporation Limited ¯ Kesoram Insurance Broking Services Limited ¯ Vasavadatta Services Limited ¯ Industry House Limited ¯ Bander
Coal Company Private Limited |
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Other Related
Parties : |
¯ B.K. Birla ¯ Kesoram Industries Limited ¯ Century Enka Limited ¯ Jayshree Tea and Industries Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
148000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1480.000 Millions |
|
10000000 |
Redeemable
Cumulative Non-convertible Preference 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 |
Rs. 10/- each |
Rs. 930.400
Millions |
|
|
(The Company has
only one class of equity share. Each shareholder is eligible for one vote per
share. The dividend proposed by the Board is subject to the approval of
shareholders except in case of interim dividend. In the event of liquidation,
the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts in proportion to their
shareholding.) |
|
|
Shareholders holding more than 5%
shares of the Company
|
Name of Shareholders |
31.03.2013 |
|
|
|
Number |
Percentage |
|
Pilani Investment and Industries Corporation Limited |
34220520 |
36.78% |
|
HDFC Trustee Company Limited |
4828300 |
5.19% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
930.400 |
930.400 |
930.400 |
|
(b) Reserves & Surplus |
17119.100 |
18058.800 |
18600.600 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
18049.500 |
18989.200 |
19531.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
31481.500 |
19771.000 |
12400.500 |
|
(b) Deferred tax liabilities (Net) |
2429.200 |
2627.400 |
2639.400 |
|
(c) Other long
term liabilities |
388.000 |
200.800 |
170.100 |
|
(d) long-term
provisions |
3636.100 |
3195.900 |
2760.500 |
|
Total Non-current
Liabilities (3) |
37934.800 |
25795.100 |
17970.500 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
12125.000 |
14448.000 |
13814.700 |
|
(b)
Trade payables |
3598.700 |
3075.500 |
4117.400 |
|
(c) Other
current liabilities |
9872.200 |
9688.300 |
7643.800 |
|
(d) Short-term
provisions |
1024.000 |
925.000 |
799.800 |
|
Total Current
Liabilities (4) |
26619.900 |
28136.800 |
26375.700 |
|
|
|
|
|
|
TOTAL |
82604.200 |
72921.100 |
63877.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
42292.800 |
41039.900 |
23950.100 |
|
(ii)
Intangible Assets |
31.100 |
34.800 |
37.200 |
|
(iii)
Capital work-in-progress |
17107.600 |
11119.200 |
19975.800 |
|
(iv)
Intangible assets under development |
4.800 |
17.300 |
11.600 |
|
(b) Non-current Investments |
737.800 |
692.800 |
683.600 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2904.500 |
2880.300 |
2658.200 |
|
(e) Other
Non-current assets |
196.400 |
166.900 |
49.800 |
|
Total Non-Current
Assets |
63275.000 |
55951.200 |
47366.300 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
20.700 |
0.000 |
|
(b)
Inventories |
12037.900 |
10952.400 |
10706.600 |
|
(c)
Trade receivables |
4080.100 |
3334.500 |
3071.500 |
|
(d) Cash
and cash equivalents |
534.900 |
500.900 |
406.400 |
|
(e)
Short-term loans and advances |
2377.600 |
1988.600 |
2016.000 |
|
(f)
Other current assets |
298.700 |
172.800 |
310.400 |
|
Total
Current Assets |
19329.200 |
16969.900 |
16510.900 |
|
|
|
|
|
|
TOTAL |
82604.200 |
72921.100 |
63877.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
59494.700 |
48727.800 |
47600.300 |
|
|
|
Other Income |
269.000 |
271.800 |
420.400 |
|
|
|
TOTAL |
59763.700 |
48999.600 |
48020.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
20256.400 |
15687.800 |
15768.500 |
|
|
|
Purchases of Stock-in-trade |
182.900 |
375.800 |
183.200 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-progress and Stock-in-Trade |
(565.400) |
(431.500) |
(336.100) |
|
|
|
Employee Benefits Expense |
4928.900 |
4247.200 |
3620.700 |
|
|
|
Other Expenses |
29080.000 |
24785.100 |
21885.800 |
|
|
|
TOTAL |
53882.800 |
44664.400 |
41122.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
5880.900 |
4335.200 |
6898.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
3199.500 |
1720.800 |
1182.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
2681.400 |
2614.400 |
5715.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
3559.500 |
2581.200 |
2396.600 |
|
|
|
|
|
|
|
|
|
|
EXPENDITURE
TRANSFERRED TO CAPITAL ACCOUNT |
166.000 |
192.300 |
112.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
(712.100) |
225.500 |
3432.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(367.200) |
4.200 |
1057.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
(344.900) |
221.300 |
2374.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
2915.500 |
3359.000 |
3078.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Equity Dividend |
511.800 |
511.800 |
511.800 |
|
|
|
Tax on proposed equity dividend |
83.000 |
83.000 |
83.000 |
|
|
|
General Reserve |
0.000 |
70.000 |
1500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1975.800 |
2915.500 |
3359.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of exports |
3220.300 |
2960.800 |
2882.200 |
|
|
|
Dividend |
0.700 |
1.000 |
0.600 |
|
|
|
Others |
1.000 |
6.400 |
1.700 |
|
|
TOTAL EARNINGS |
3222.000 |
2968.200 |
2884.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2788.700 |
2539.700 |
1984.000 |
|
|
|
Stores & Spares |
457.200 |
423.400 |
441.700 |
|
|
|
Capital Goods |
1161.300 |
1039.100 |
1016.200 |
|
|
TOTAL IMPORTS |
4407.200 |
4002.200 |
3441.900 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(3.71) |
2.38 |
25.52 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.58)
|
0.45 |
4.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.20)
|
0.46 |
7.21 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.10)
|
0.37 |
7.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04)
|
0.01 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.42
|
1.80 |
1.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.73
|
0.60 |
0.63 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Term loans from Banks - Secured |
|
|
|
|
Term Loan from
State Bank of India (Repayable in 24
equal quarterly instalments, last instalment falling due on June’2016.
Interest rate as at 31.03.2013 - 11.20 % p.a) |
666.800 |
666.800 |
666.800 |
|
Term Loan from
Bank of Baroda (Repayable in 24
equal quarterly instalments, last instalment falling due on June’ 2014.
Interest rate as at 31.03.2013 - 11.20 % p.a) |
302.400 |
228.000 |
119.200 |
|
Term Loan from
State Bank of Hyderabad (Repayable in 24
quarterly instalments, last instalment falling due on June’ 2014. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
151.200 |
114.000 |
59.600 |
|
Term Loan from
Allahabad Bank (Repayable in 24
quarterly instalments, last instalment falling due on June’ 2014. Interest
rate as at 31.03.2013 - 11.20 % p.a) |
151.200 |
114.000 |
59.600 |
|
Term Loan from
Union Bank of India (Repayable in 24
quarterly instalments, last instalment falling due on June’ 2015. Interest
rate as at 31.03.2013 - 11.20 % p.a) |
353.200 |
266.400 |
139.200 |
|
Term Loan from
IDBI Bank (Repayable in 24
quarterly instalments, last instalment falling due on June’ 2014. Interest
rate as at 31.03.2013 - 11.20 % p.a) |
302.400 |
228.000 |
119.200 |
|
Term Loan from
Indusind Bank (Prepaid during the year) |
0.000 |
494.800 |
75.800 |
|
Term Loan from State
Bank of India (Repayable in 20
quarterly instalments, last instalment falling due on Sep’2018. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
200.000 |
0.000 |
-- |
|
Term Loan from
Bank of Baroda (Repayable in 20
quarterly instalments, last instalment falling due on Sep’2018. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
41.600 |
0.000 |
-- |
|
Term Loan from
State Bank of Hyderabad (Repayable in 20
quarterly instalments, last instalment falling due on Sep’2018. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
36.000 |
0.000 |
-- |
|
Term Loan from
Allahabad Bank (Repayable in 20
quarterly instalments, last instalment falling due on Sep’2018. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
38.400 |
0.000 |
-- |
|
Term Loan from
Union Bank of India (Repayable in 20
quarterly instalments, last instalment falling due on Sep’2018. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
56.000 |
0.000 |
-- |
|
Term Loan from
State Bank of Mysore (Repayable in 20
quarterly instalments, last instalment falling due on Sep’2018. Interest rate
as at 31.03.2013 - 11.20 % p.a) |
36.000 |
0.000 |
-- |
|
Term Loan from
Indusind Bank (Repayable in 12
equal quarterly Instalments, last instalment falling due on Sep’2016. Interest
rate as at 31.03.2013 - 11.50 % p.a) |
191.700 |
0.000 |
-- |
|
Term Loan from
State Bank of India (Repayable in
monthly instalments, last instalment due on May’2012 ) |
0.000 |
1500.000 |
1500.000 |
|
Term Loan from
ICICI Bank (Repayable in 16
equal quarterly instalments, last instalment falling due on Jan’2017.
Interest rate as at 31.03.2013 - 11.50 % p.a) |
1000.000 |
250.000 |
0.000 |
|
Term Loan from
Development Credit Bank (Repayable in 12
equal quarterly instalments, last instalment falling due on Dec’2016.
Interest rate as at 31.03.2013 - 11.20 % p.a) |
116.700 |
0.000 |
-- |
|
Term Loan from
Syndicate Bank (Repayable in 12
equal quarterly instalments, last instalment falling due on Dec’2016.
Interest rate as at 31.03.2013 - 11.50 % p.a) |
141.700 |
0.000 |
-- |
|
TUF Loan from
State Bank of India (Repayable in 26
quarterly instalments, last instalment falling due on Mar’2014. Interest rate
as at 31.03.2013 - 5.95 % p.a) @ |
175.000 |
160.000 |
160.000 |
|
TUF Loan from
State Bank of Patiala (Repayable in 26
equal quarterly instalments, last instalment falling due on June’2015.
Interest rate as at 31.03.2013 - 6.50 % p.a) @ |
47.300 |
47.300 |
47.300 |
|
TUF Loan from
State Bank of India (Repayable in 28
equal quarterly instalments, last instalment falling due on June’2014.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
9.500 |
9.400 |
9.400 |
|
TUF Loan from
State Bank of India (Repayable in 32
equal quarterly instalments, last instalment falling due on Sep’ 2018.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
7.000 |
6.800 |
0.000 |
|
TUF Loan from
State Bank of India (Repayable in 28
equal quarterly instalments, last instalment falling due on Mar’2016.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
468.600 |
468.600 |
468.600 |
|
TUF Loan from
State Bank of India (Repayable in 26
quarterly instalments, last instalment falling due on Mar’2015. Interest rate
as at 31.03.2013 - 5.95 % p.a) @ |
8.100 |
8.100 |
8.100 |
|
TUF Loan from
State Bank of India (Repayable in 26
equal quarterly instalments, last instalment falling due on Mar’2016.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
115.200 |
115.200 |
115.200 |
|
TUF Loan from
State Bank of India (Repayable in 28
equal quarterly instalments, last instalment falling due on Mar’2016.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
50.000 |
50.000 |
50.000 |
|
TUF Loan from State
Bank of Mysore (Repayable in 28
equal quarterly instalments, last instalment falling due on Mar’2016.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
107.100 |
107.100 |
107.100 |
|
TUF Loan from
State Bank of Hyderabad (Repayable in 28
equal quarterly instalments, last instalment falling due on Mar’2016.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
71.400 |
71.400 |
71.400 |
|
TUF Loan from
State Bank of Bikaner & Jaipur (Repayable in 28
equal quarterly instalments, last instalment falling due on Mar’2016.
Interest rate as at 31.03.2013 - 5.95 % p.a) @ |
50.000 |
50.000 |
50.000 |
|
TUF Loan from State Bank of Patiala (Repayable in 24 equal quarterly instalments, last instalment paid on 30.03.2012. Interest rate 7.00 %)@ |
-- |
-- |
25.000 |
|
Amount
disclosed under the head “ Other Current Liabilities” |
(4894.500) |
(4955.900) |
(3851.500) |
|
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:
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
STAMP NO:
WPST/14052/2013
FILING DATE: 07.05.2013 |
|
PETITIONER: M/S. MARKET ANALYSIS AND PRODUCT PROMOTERS, THROUGH PARTNER, ARCHANA
MANDELIA
RESPONDENT: CENTURY TEXTILE
AND INDUSTRIES LIMITED PETN.ADV: P.S. DANI DISTRICT: MUMBAI |
|
BENCH: SINGLE STATUS: PRE-ADMISSION Last Date: 10.06.2013 Stage: Last Coram: REGISTRAR
(JUDICIAL) |
|
ACT: Rent
Act |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
|
|
SHORT TERM BORROWINGS |
|
|
|
Fixed Deposits |
601.100 |
543.400 |
|
Short Term
Borrowings from Banks: Under a buyer’s credit arrangement in foreign currency Rupee Loans |
3495.200 |
7013.700 |
|
Total |
4096.300 |
7557.100 |
EXPANSION AND MODERNISATION:
Rayon, Tyre Cord and Chemicals
Three additional Pot Spun Yarn (PSY)
spinning machines with balancing equipment in spin bath and four Continuous
Spun Yarn (CSY) spinning machines are expected to be commissioned by June, 2013
and additional six CSY machines by March, 2014. After such commissioning, the
capacity of PSY and CSY will increase by about 1800 tonnes per year. These
additions will be at an estimated investment of about Rs.62 crore.
Cement
Sonar Bangla Cement – Grinding Unit – 1.5 Million
tpa – Sagardighi, Dist. Murshidabad (West Bengal)
Out of two cement mills, one cement
mill has been commissioned in February, 2013 and after successful trial runs,
commercial production and despatches have commenced in March, 2013. Erection of
another cement mill has been completed and expected to be commissioned by July,
2013.
Manikgarh Cement Expansion – 2.8 Million tpa + 60
MW Captive
Thermal Power Plant – Gadchandur, Maharashtra
The work schedule of civil construction
activities at Manikgarh cement expansion was adversely affected due to
incessant rains in 2012. An acute shortage of natural sand has also delayed
progress of the project work. Civil and structural work is expected to be
completed by October, 2013. Mechanical erection work is simultaneously in
progress.
The Company will be installing a
captive thermal power plant of 60 MW capacity, compared to 40 MW earlier
planned, which is more economical in terms of operating cost and sufficient to
meet the requirement for both existing capacity and the proposed cement plant
expansion. Environment clearance from Ministry of Environment and Forests for
the 60 MW captive thermal power Plant has been obtained.
Manikgarh Cement Unit II is expected to
be operational by March, 2014. After the proposed expansion, the Company’s
total cement manufacturing capacity will stand increased to 12.8 million tonnes
per annum.
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.
AWARDS:
Various Divisions of the Company have
received various notable awards as mentioned below:-
Rayon, Tyrecord and Chemicals:
The Unit’s Four Quality Circles
Kohinoor, Swastik, Progressive and Sanghrachna won the Gold Trophy at a
Convention of Quality Circle-2012 held at Hyderabad.
Century Cement:
First prize for “Overall Performance”,
“Standard of Working”, “Environment Management and Pollution Control”,
“Electrical Installation and Exhibition Stall” for the limestone mines from the
Director General of Mines Safety, Bilaspur and Raigarh Region.
First prize for “Water Quality
Management” for the limestone mines from the Indian Bureau of Mines, Nagpur
Region (Chhattisgarh State).
Maihar Cement:
First prize for “Standard of Working”
and “Use of Explosives and Dust Suppression” for the limestone mines from the
Directorate General of Mines Safety, Jabalpur Region.
First prize in “Water Quality
Management” for the limestone mines from the Indian Bureau of Mines, Jabalpur
Region.
Manikgarh Cement:
First Prize in the “House Keeping and Provision
of Welfare Facilities”, “Transport in Mines and Dust Suppression” and
“Exhibition Stall” for its limestone mines from the Directorate General of
Mines Safety, Western Zone, Nagpur Region.
First Prize in the “Afforestation” for
its limestone mines from the Indian Bureau of Mines, Nagpur Region.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
OVERALL REVIEW
The profit of the Company, after
interest, during the year has remained almost at the same level as compared to
last year. However, due to higher depreciation in the current year on account
of commissioning of Multilayer Packaging Board and Fiberline Plant (Pulp plant)
in the Pulp and Paper Division, the Company has incurred a net loss. Though
operations have not shown the desired improvement due to increase in input
costs, higher interest, adverse market conditions, mainly in the Paper segment
and also because of the ongoing depressed conditions in the Indian as well as
the world economy, efforts are being made to improve the overall performance of
the Company. The steps taken by the Reserve Bank of India to stimulate the
economy have marginally brought down the interest rates but these are still
painfully high. It is hoped and expected that after inflation eases, Reserve
Bank of India will consider favourably relaxing the interest regime further
which can be instrumental in helping the revival of the economy. The outlook
appears to be more hopeful as the government has repeatedly stated that it is
committed to reforms. FDI in retail allowed within the year by the government may see the beginning of
investment in new infrastructure and technology by global giants and the
systematic marketing of agricultural produce in India. Other keenly awaited
measures like the implementation of Goods and Service Tax (GST) as well as
power sector reforms would go a long way in achieving this positive outlook.
Increase in spending by the government coupled with the current expectation of
a normal monsoon portend positive signals for the economy in the coming year and
it is expected that demand and prices of cement, paper and textiles which
comprises the Company’s main business will keep pace with the general upturn in
the economy. Considering all these factors, the Company is hopeful of a
supportive environment, enabling it to maintain steady performance. The
circumstances prevailing in each of the business segments of the Company and
their operations are separately discussed hereunder.
BUSINESS SEGMENT – TEXTILES (COTTON FABRICS, DENIM
CLOTH, YARN, VISCOSE FILAMENT YARN AND TYRE YARN) COTTON TEXTILES, YARN AND
DENIM
INDUSTRY STRUCTURE AND DEVELOPMENT
The Indian textile industry is on a comeback trail due to an improved US
economy, a recovering demand from the European Union and favourable raw
material prices. China, a major textiles producer for about two decades is now
focusing on other sectors, which should open up opportunities for other
textiles producing countries such as India and Bangladesh. As a result, India,
Bangladesh and Vietnam are receiving more orders due to reduction in the global
spinning capacity and cut down in cotton imports by China. The global buyers,
therefore, are looking at India as one of the major sourcing destinations. The
Indian textile industry is competitively placed vis-à-vis competitors. India
offers higher skills, lower costs, modern technology, global acceptance and a
highly creative pool of design talent. A supportive policy regime and the
absolute commitment of private enterprise add strength to Indian prospects.
India is among the few textiles manufacturing countries, which is fully
integrated from fibre to finished products.
SEGMENTAL REVIEW AND ANALYSIS
The financial performance of their
textile unit known as ‘Birla Century’ has improved as also its capacity
utilization. The sales at Birla Century have improved by about 65% as compared
to last year due to better use of capacity and increasing demand in domestic
and US markets. We are concentrating on high priced premium branded goods,
which are in demand in high- end markets. However the market for denim is
depressed. We have, therefore, reengineered the product line to produce the
items that customers prefer, to overcome the slackness. Cottons By Century with
its new summer collection and diversified product plan is expected to do better
in the years ahead. Innovative styling of fashion fabrics along with the cost
advantage due to withdrawal of excise duty will help us to have an edge over
others.
OUTLOOK
Their textile unit has a competitive edge
in terms of quality, designs and innovative products. We expect much better
performance in the coming years on the back of revival in the world economy
including India.
CENTURY RAYON – VISCOSE FILAMENT YARN (VFY) [POT
SPUN YARN (PSY) AND CONTINUOUS SPUN YARN (CSY)] AND RAYON TYRE YARN
INDUSTRY STRUCTURE AND DEVELOPMENT
Demand for VFY remained stable throughout the year. Overall inventories
in the industry and at unit level are comfortable, which resulted in prices
being maintained. Demand for tyre yarn remained subdued. The Chemical Division
is operating at optimum capacity. Production of VFY by domestic producers has
dropped by about 23% in the last 5 years and the gap thus created has been met
through higher imports as there have been no significant additions to
capacities within India. Due to imposition of anti- dumping duty on certain
products originating from China, some reduction has been witnessed in the
quantities of VFY imports compared to earlier years. This has helped the
domestic industry in maintaining an adequate off-take of its products. Notably,
despite the overall volume of imports going down, China continues to export
huge quantities in the form of doubled and twisted yarn and embroidery thread
at lower rates, thus adversely affecting market sentiment. Due to escalation in
costs coupled with environmental issues, some of the small rayon producing
units in China have ceased operations. This is a good sign for the Indian
industry. No major investments are taking place in the Industry world-wide.
Continuing recession in Europe has adversely affected the off-take of rayon
tyre yarn which forced their unit to curtail its production by about 35%.
SEGMENTAL REVIEW AND ANALYSIS
Due to introduction of super fine
deniers, their unit has been able to retain its competitive edge and increase
its market share. Efforts undertaken to bring down cost of the main raw
materials like wood pulp and other inputs together with initiatives in
curtailing cost of power and water have yielded positive results. The Company’s
initiatives for improving productivity of the machines has enhanced production
and reduced the cost of production. Continued depreciation of the rupee and
very high premiums on forward rates have caused cost of imports to rise.
Similarly, continued inflation also resulted in rising dearness allowance paid
to employees, thereby increasing the labour cost. However, due to innovations
in production and stringent cost control measures, the performance of their
unit remains satisfactory.
Considering the present demand- supply
imbalance, lower utilization of rayon tyre yarn capacity is likely to continue
in the next financial year.
SALT WORKS
Production of raw salt is at optimum
capacity. We have sufficient raw salt to run the refinery to meet present
market demand. We expect better performance during this financial year.
OUTLOOK
The unit is expected to work
satisfactorily during the year ahead due to steady demand and optimum capacity
utilization for the manufacture of viscose filament yarn and chemical products.
The success of further efforts to reduce power and raw material cost would
enhance benefits and may improve overall performance.
BUSINESS SEGMENT – CEMENT (CEMENT AND CLINKER)
INDUSTRY STRUCTURE AND DEVELOPMENT
The Cement industry had witnessed a growth of 10.5% in the year
2009-2010. Unfortunately, with the withdrawal of stimulus packages coupled with
a slowdown in construction activity due to lower spending on infrastructure and
a deceleration in the realty sector caused by high interest rates and a
simultaneous over-supply of built stock in some areas, the cement industry
slipped to growth rates of 6.7% during 2011-2012. The growth for the year 2012-
2013 is expected to be around 5.5% only. The cement industry had surpassed the
target set by the working group on this industry for the XIth five year plan
(2007-2012). The installed capacity was over 340 million tonnes against a
target of 298 million tonnes at the end of the terminal year of the XIth five
year plan, resulting in surplus capacity. Though the pace of capacity addition
has slowed during the current year, surplus capacity is still a major concern.
Lacklustre demand has caused a part of the existing capacity to remain idle.
SEGMENTAL REVIEW AND ANALYSIS
All the cement divisions of the company
have operated at optimum levels. Captive thermal power plants have also worked
equally well. During the year 2012-13, we have produced 76.51 lac tonnes of
cement as compared to 75.25 lac tonnes in the previous year. We continue to
focus on conservation of energy and protection of the environment by production
of blended cement which constituted about 95% of the Company’s total cement
production compared to about 70% in the industry. The overall financial
performance has been better than in the previous year.
OUTLOOK
India’s growth story remains attractive
in comparison with many developed and developing economies. GDP is expected to
grow at around 6% in the fiscal year 2013-14. Various economic reforms
announced by the Government are expected to boost investment and, it is hoped,
rejuvenate the economy. The recent measures announced by the government to
expedite infrastructure projects and with upcoming state and national
elections, construction activity is expected to pick up, resulting in improved
demand for cement. During the XIIth five year plan (2012-2017) government has
provided impetus to the housing, rural development and infrastructure
construction activities. Investment in the infrastructure sector during this
five year plan is expected to be around Rs.50 lac crore. Therefore, the long
term growth prospects for the cement industry appear to be favourable.
BUSINESS SEGMENT – PULP AND PAPER (PULP, WRITING
AND PRINTING PAPER, TISSUE PAPER AND MULTILAYER PACKAGING BOARD)
INDUSTRY STRUCTURE AND DEVELOPMENT
The growth in the paper industry has traditionally mirrored the growth
in GDP. Being a commodity, the industry is cyclical in nature and is strongly
co-related with global economic factors. While India represents more than 15%
of the world population, consumption of paper is one of the lowest in the world
at about 2% of the world’s consumption. Based on the expected growth in India’s
GDP, it is estimated that the paper industry will grow at about 6 – 8% in the
next financial year.
SEGMENTAL REVIEW AND ANALYSIS
Demand and consequently the prices of
paper products were under pressure for a major part of the year. There was some
relief in the last quarter which witnessed firmed up demand, affording a window
of opportunity to improve prices. Apart from lack of demand, the high cost of
essential raw materials like wood and coal also necessitated increase in
selling prices. The financial performance of the unit was very adversely
affected mainly on account of higher interest cost on borrowed money for
setting up new projects for Multilayer Packaging Board and for increasing the
pulping capacity. In view of lower realization and higher interest costs, the
financial performance of this Division has been unsatisfactory.
OUTLOOK
The long-term outlook for paper, board
and tissue paper appears to be good. However, increasing costs and competition,
will compel focus to be directed to operational efficiency, new product and service
development and enhanced customer satisfaction for optimum results.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 |
31.03.2012 |
|
|
(Rs. in Millions) |
|
|
(a) (i) Claims against the Company not acknowledged as
debts in respect of : |
|
|
|
- Custom Duty and Excise Duty |
185.300 |
179.800 |
|
- Sales Tax and Entry Tax |
1053.200 |
944.600 |
|
- Power Charges |
124.800 |
151.000 |
|
- Royalty |
3109.800 |
2815.200 |
|
- Others |
138.800 |
175.700 |
|
(ii) Claims not acknowledged as debts jointly with other members of “Business Consortium of Companies” in which the Company had an interest ( proportionate) |
200.200 |
191.900 |
|
(b) Disputed income tax matters under appeal |
142.600 |
131.800 |
|
(c) Registration and Road Tax on Dumper of Cement Division |
Amount not
determinable |
Amount not
determinable |
|
(d) 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 |
Amount not
determinable |
|
(e) The Competition Commission of India (CCI) has vide its order dated 20th June, 2012, upheld the complaint filed by the Builders Association of India alleging cartelisation against certain cement manufacturing companies, including the Company. The CCI has imposed a penalty on the Company. Based on a legal opinion, the Company believes that it has a good case and has filed an appeal against the Order before the Competition Appellate Tribunal. Future cash flows in respect of item No.32 (a) to (e) above are determinable only on receipt of judgements / decisions pending with various forums / authorities.) |
2740.200 |
0.000 |
|
(f) Guarantees given by the 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 |
224.800 |
24.100 |
|
(g) Undertaking given by the Company under concessional duty / exemption scheme to government authorities (net of obligation fulfilled) |
6320.800 |
6967.900 |
FIXED ASSETS:
TANGIBLE
ASSETS
¯
Freehold
Land
¯
Leasehold
Land
¯
Buildings
¯
Plant
and Equipment
¯
Furniture
and Fixtures
¯
Vehicles
¯
Office
equipment
¯
Water
Pipe Lines and Tanks
¯
Railway
Sidings and Locomotives
¯
Ropeway
¯
Reservoir
and Pans, etc.
¯
Electric
Installations
¯
Air-conditioning
Plant
¯
Improvement
to Leased Premises
¯
Floral
Plantation – Roses
INTANGIBLE
ASSETS
¯
Computer
software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 59.39 |
|
|
1 |
Rs. 89.90 |
|
Euro |
1 |
Rs. 77.73 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
60 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.