MIRA INFORM REPORT

 

 

Report Date :

20.03.2013

 

IDENTIFICATION DETAILS

 

Name :

GRASIM INDUSTRIES LIMITED (w.e.f. 22.07.1986)

 

 

Formerly Known As :

GWALIOR RAYON SILK (WEAVING) COMPANY LIMITED

 

 

Registered Office :

Birlagram, Nagda, ujjain  – 456331, Madhya Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

25.08.1947

 

 

Com. Reg. No.:

10-000410

 

 

Capital Investment / Paid-up Capital :

Rs.917.200 Millions

 

 

CIN No.:

[Company Identification No.]

L17124MP1947PLC000410

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLG00117F

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of Inorganic Industrial Chemicals.

 

 

No. of Employees :

71297 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (75)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 360000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a Birla Group Company. It is a well established and a reputed company having a fine track record. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List – 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

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating = AAA

Rating Explanation

Highest degree of safety and lowest credit risk

Date

17.07.2012

 

 

Rating Agency Name

CRISIL

Rating

Short Term Rating = A1+

Rating Explanation

Very strong degree of safety and lowest credit risk

Date

17.07.2012

 

 

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 :

Birlagram, Nagda, Ujjain – 456331, Madhya Pradesh, India

Tel. No.:

91-7366-246760/ 62/ 64/ 66 / 256556

Fax No.:

91-7366-244114/ 246024

E-Mail :

anil.ladha@adityabirla.com

grasimshares@adityabirla.com

shares@adityabirla.com

Website :

http://www.grasim.com

 

 

Corporate Office :

91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400021, Maharashtra, India

Tel. No.:

91-22-22819520

Fax No.:

91-22-22284629

 

 

Administrative Office:

Staple Fiber Division, Century Bhawan, 3rd Floor, Dr. A B Road, Worli, Mumbai – 400030, Maharashtra, India

Tel. No.:

91-22-24210182-86/ 22025012/ 24210182/ 24303169/ 22043451/ 65991600

Fax No.:

91-22-24220892

 

 

Plants  :

FIBRE, PULP CHEMICAL and textiles PLANTS

 

 

Staple Fibre Division

Birlagram, Nagda – 456 331, Madhya Pradesh

Tel. No. 91-7366-246760-246766

Fax No. 91-7366-244114/246024

 

Harihar Polyfibres and Grasilene Division

Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka

Tel. No. 91-8373-232637-39

Fax No. 91-8373-232465/ 232875

             91-8192-247555

 

Birla Cellulosic

Birladham, Kharach, Kosamba 394 120, District Bharuch, Gujarat

Tel. No. 91-2629-270001/5

Fax No. 91-2629-270010/270310

 

Grasim Cellulsic Division

Plot no.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka Vagra, District Bharuch – 392012, Gujarat, India

 

Chemical Plants

 

Chemical Division

Birlagram 456 331

Nagda, Madhya Pradesh

Tel No. : 91-7366 245501 – 03

Fax No. : 91-7366 246767 / 245845

 

Grasim Chemical Division

Plot No.1, GIDC, Vilayat Industrial Estate P. O. Vilayat, Taluka Vagra, District Bharuch – 392012, Gujarat, India

 

Textile Plant

Vikram Woollens

GH I to IV, Ghironghi Malanpur–477 117, District Bhind, Madhya Pradesh, India

Tel.: 91-7539-283602 / 283603

Fax: 91-7539-283339

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Chairman

 

 

Name :

Mrs. Rajashree Birla

Designation :

Director

Qualification :

BA

 

 

Name :

Mr. Madhav L. Apte

Designation :

Director

Qualification :

BA

 

 

Name :

Mr. B. V. Bhargava

Designation :

Director

Qualification :

Commerce

Law

 

 

Name :

Mr. R. C. Bhargava

Designation :

Director

Qualification :

Mathematics

 

 

Name :

Mr. Arun Kanti Dasgupta

Designation :

Director

Qualification :

Science

 

 

Name :

Mr. Cyril Shroff

Designation :

Director

 

 

Name :

Dr. Thomas m. Connelly

Designation :

Director

Qualification :

PHD Chemical Engineering

 

 

Name :

Mr. Shailendra K. Jain

Designation :

Whole Time Director

 

 

Name :

Mr. N. Mohan Raj (w.e.f. 21st June, 2012)

Designation :

Director

 

 

Name :

Mr. D. D. Rathi

Designation :

Director

 

 

Name :

Mr. Mr. Adesh Gupta

Designation :

Whole Time Director

 

 

Name :

Mr. K K Maheshwari

Designation :

Whole Time Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashok Malu

Designation :

Company Secretary

 

 

Name :

Mr. Adesh Gupta

Designation :

Manager and Chief Financial Officer

 

 

Fibre and Pulp Business

 

Name :

Mr. K.K. Maheshwari

Designation :

Business Director

 

 

Name :

Mr. S.K. Saboo

Designation :

Group Advisor, Chairman’s Office

 

 

Name :

Dr. Prakash Maheshwari

Designation :

Group Executive President, Chief Operating Officer (India) and Head (Projects)

 

 

Name :

Mr. Vijay Kaul

Designation :

Group Executive President (Marketing) and Head-Pulp Operations

 

 

Name :

Mr. Vinod Tiwari

Designation :

Chief Operating Officer(Pulp Operations)

 

 

Name :

Dr. Aspi Patel

Designation :

Chief Technology Officer

 

 

Name :

Mr. Rajeev Gopal

Designation :

Chief Marketing Officer

 

 

Name :

Dr. Raju Mistry

Designation :

Chief People Officer

 

 

Cement Business

 

Name :

Mr. O.P. Puranmalka

Designation :

Business Head

 

 

Name :

Mr. R.K. Shah

Designation :

Group Executive President and CMO (Mfg. and Projects)

 

 

Name :

Mr. S.N. Jajoo

Designation :

Chief Marketing Officer

 

 

Name :

Mr. K.C. Birla

Designation :

Sr. Executive President (Finance)

 

 

Name :

Mr. C. B. Tiwari

Designation :

Chief People Officer

 

 

Chemical Business

 

Name :

Mr. Lalit Naik

Designation :

Business Head

 

 

Name :

Mr. K.C. Jhanwar

Designation :

Group Executive President

 

 

Name :

Mr. G.K. Tulsian

Designation :

Executive President

 

 

Name :

Mr. Gerard Dcunha

Designation :

Chief People Officer

 

 

Textile Business

 

Name :

Mr. Thomas Varghese

Designation :

Chief Executive Officer

 

 

Name :

Mr. S. Krishnamoorthy

Designation :

President

 

 

Corporate Finance Division

 

Name :

Mr. Pavan K. Jain

Designation :

Executive President

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2012

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

133372

0.17

http://www.bseindia.com/include/images/clear.gifBodies Corporate

23295546

29.09

http://www.bseindia.com/include/images/clear.gifSub Total

23428918

29.26

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

23428918

29.26

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

6911250

8.63

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

91110

0.11

http://www.bseindia.com/include/images/clear.gifInsurance Companies

7150260

8.93

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

21458231

26.80

http://www.bseindia.com/include/images/clear.gifSub Total

35610851

44.47

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

8288697

10.35

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

8735650

10.91

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

719248

0.90

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

3288811

4.11

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

2622613

3.28

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

666198

0.83

http://www.bseindia.com/include/images/clear.gifSub Total

21032406

26.27

Total Public shareholding (B)

56643257

70.74

Total (A)+(B)

80072175

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

4802304

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

6880538

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

11682842

0.00

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

91755017

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of a Inorganic Industrial Chemicals.

 

 

Products :

Item Code No.

Product Description

 

550410-00

Staple Fibre

252329-01

Grey Portland Cement

720310-00

Sponge Iron

281512-00

Caustic Soda

 

 

 

PRODUCTION STATUS

 

As on 31.03.2011

 

Particulars

Unit

Installed Capacity

 

Actual Production

1. Viscose Staple Fibre/Polynosic HWM/HiPerformance/Speciality Fibre

Tonnes

333975

305087

2. Sulphuric Acid (Captive and Intermediate Product)

Tonnes

297850

253622

3. Carbon-di-Sulphide (Captive and Intermediate Products)

Tonnes

61800

54221

4. Rayon Grade Pulp (At Mavoor and Harihar)

Tonnes

70000

73360

5. Rayon Grade Caustic Soda

Tonnes

258000

242037

6. Stable Beaching Powder

Tonnes

29436

25672

7. Man-Made Fibre Fabrics

Mtr.

(in 000’s)

8832

Spindles

2284

8. Industrial Machinery

Tonnes

15950

##

9. Poly Aluminium Chloride                    

Tonnes

36000

37661

10. Chloro Sulphonic Acid

Tonnes

23400

14723

 

Notes:

 

a)     Licensed capacity not indicated due to abolition of industrial licences under The Industries (Development and Regulation) Act, 1951

b)    The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a technical matter.

c)     # Includes third party processing.

d)    ## Quantitative data can not be given as production represents fabrication, machining, etc. against individual orders for made to order machines/equipment.

e)     @ Pursuant to scheme of demerger of Cement business of the Company, the related installed capacity is transferred to Samruddhi Cement Limited but has been disclosed above.

f)     *Related installed capacity is transferred pursuant to scheme of sale of Sponge Iron unit but has been disclosed above.

 

 

 

GENERAL INFORMATION

 

No. of Employees :

71297 (Approximately)

 

 

Bankers :
  • State Bank of India, Bahrain
  • EXIM Bank, USA
  • Hongkong Bank, London
  • IDBI Bank
  • ICICI Bank Limited
  • Mashreq Bank, Dubai
  • Standard Chartered Grindlays Bank, Dubai
  • British Bank of Middle East, Dubai

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

LONG-TERM BORROWINGS

 

 

Rupee Term Loans

4413.700

3178.200

Foreign Currency Loans

506.000

785.100

SHORT-TERM BORROWINGS

 

 

Working Capital Borrowings

567.400

488.000

Total

5487.100

4451.300

 

Nature of Security and Repayment Terms

Rs. In Millions

 

Particular

31.03.2012

31.03.2011

Secured Long-Term Borrowings:

 

 

(a)

Rupee Term Loans secured by exclusive charge on certain specific fixed assets of the Company located at Nagda (Staple Fibre Division) and Harihar (Staple Fibre and Pulp Divisions) Quarterly ballooning repayment from October 2007, over 8 years

549.700

703.200

(b)

Rupee Term Loan secured by first

pari-passu charge on the fixed assets, both present and future, of the Company located at Nagda (Staple Fibre, Chemical and Engineering and Development Divisions),

Kharach (Staple Fibre Division) and Harihar

(Staple Fibre and Pulp Divisions) [excluding those specific fixed assets, which are exclusively charged for the loans mentioned in Note (a) above] Quarterly ballooning repayment from April 2010, over 8 years

2175.000

2475.000

(c)

Rupee Term Loan secured by first pari-passu charge on the Plant and Machinery, both present and future, of the Company located at Vilayat (Staple Fibre Division)

Quarterly ballooning repayment from April 2014, over 5 years

1689.000

-

(d)

Foreign Currency Loans secured by first pari-passu charge on the fixed assets, both present and future, of the Company located at Nagda (Staple Fibre, Chemical and Engineering and Development Divisions), Kharach (Staple Fibre Division) and Harihar (Staple Fibre and Pulp Divisions) [excluding those specific fixed assets, which are exclusively charged for the loans mentioned in Note (a) above]

- Repayable after 5 years, bullet repayment

in March 2013

 

279.100

 

- Repayable after 5 years, bullet repayment

in April 2013

506.000

506.000

 

- Repaid in October 2011

-

-

 

Total Secured Borrowings (I)

4919.700

3963.300

 

 

 

Banking Relations :

--

 

 

Statutory Auditors 1 :

 

Name :

G P Kapadia and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Statutory Auditors 2 :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Branch Auditors  :

 

Name:

Vidyarthi and Sons

Chartered Accountants

Address:

Gwalior

 

 

Solicitors:

·         Mulla and Mulla and Craigie, Blunt and Care

·         Amarchan and Mangaldas and Suresh A Shroff and Company

 

 

Subsidiaries :
  • Sun God Trading and Investments Limited
  • Samruddhi Swastik Trading and Investments Limited
  • Grasim Bhiwani Textiles Limited
  • Aditya Birla Power Ventures Limited (w.e.f. 29th July, 2011)
  • UltraTech Cement Limited
  • Samruddhi Cement Limited (w.e.f. 4th September, 2009 and upto 30th June, 2010)

 

 

Sub-Subsidiaries :
  • UltraTech Cement Lanka Private Limited, Sri Lanka
  • Dakshin Cement Limited Harish Cement Limited
  • UltraTech Cement Middle East Investment Limited, Dubai, UAE
  • Star Cement Co. LLC, Dubai, UAE
  • Star Cement Co. LLC, RAK, UAE
  • Al Nakhla Crusher LLC, Fujairah, UAE
  • Arabian Cement Industry LLC,
  • Abu Dhabi, UAE Arabian Gulf Cement Co. WLL, Bahrain
  • Emirates Power Company Limited, Bangladesh
  • Emirates Cement Bangladesh Limited, Bangladesh
  • PT UltraTech Mining Indonesia, Indonesia (w.e.f. 12th April, 2011)
  • UltraTech Cement SA (PTY), South Africa (w.e.f. 9th April, 2011)
  • UltraTech Cement Mozambique Limitada, Mozambique (w.e.f. 22nd February, 2012)
  • PT UltraTech Investments Indonesia, Indonesia (w.e.f. 26th March, 2012)

 

 

Joint Ventures :
  • A.V. Cell Inc., Canada
  • A.V. Nackawic Inc., Canada
  • Birla Jingwei Fibres Company Limited, China
  • Birla Lao Pulp and Plantations Company Limited, Laos
  • Aditya Birla Elyaf Sanayi Ve Ticaret Anonim
  • Sirketi,Turkey (w.e.f. 30th December, 2011)
  • Bhaskarpara Coal Company Limited
  • Madanpur (North) Coal Company (Private) Limited
  • Bhubaneswari Coal Mining Limited (w.e.f. 21st September, 2010)

 

 

Associates :
  • Aditya Birla Science and Technology Company Limited Idea Cellular Limited
  • Aditya Group AB, Sweden (w.e.f. 13th June, 2011)

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

95000000

Equity Shares

Rs.10/- each

Rs.950.000 Millions

150000

15%    “A” Series - Redeemable Cumulative Preference Shares

Rs.100/- each 

Rs.15.000 Millions

100000

8.57% “B” Series - Redeemable Cumulative Preference Shares

Rs.100/- each 

Rs.10.000 Millions

300000

9.30% “C” Series - Redeemable Cumulative Preference Shares

Rs.100/- each 

Rs.30.000 Millions

 

TOTAL

 

Rs.1005.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

91709742

Equity Shares

Rs.10/- each

Rs.917.100 Millions

 

Share Capital Suspense

14,906 (14,906) Equity Shares of Rs.10 each to be issued as fully paid-up pursuant to acquiring of Cement Business of Aditya Birla Nuvo Limited under the Scheme of Arrangement without payment being received in cash

 

Rs.0.100 Millions

 

Total

 

Rs.917.200 Millions

 

 

Reconciliation of the Number of Equity Shares Outstanding (including Share Capital Suspense)

Particular

Number of Shares

Outstanding as at the beginning of the year

91,713,684

Issued during the year under Employee Stock Option Scheme

10,964

Outstanding as at the end of the year

91,724,648

 

List of Shareholders holding more than 5% shares in the Equity Share Capital of the Company:

Particular

Number of Shares

Life Insurance Corporation of India

6,512,338

Turquoise Investment and Finance Private Limited

5,908,341

Trapti Trading and Investments Private Limited

5,477,863

 

 

219,170 (224,570) Equity Shares of Face Value of Rs. 10 each are reserved for issue under Employee Stock Option Scheme, 2006 (ESOS-2006)

 

Under the ESOS-2006, the Company has granted 295,474 Options to its eligible employees in four tranches, the details of which are given hereunder:

 

 

I

II

III

IV

No. of Options Granted

201,530

16,610

71,297

6,037

Grant Date

23rd Aug,

25th Jan

30th Aug,

2nd June

Grant Price (Rs. Per Share)

1,928

2,885

1,440

1,594

Revised Grant Price*

1,523

2,279

N.A.

N.A.

Market Price on the Date of Grant (Rs.)

2,728

2,885

2,018

2,330

 

Movement of Options Granted

Particular

Number of Options

Outstanding at the beginning of the year

224,570

Granted during the year

6,037

Exercised during the year

10,964

Lapsed during the year

473

Outstanding at the end of the year

219,170

Options: Unvested at the end of the year

59,510

Exercisable at the end of the year

159,660

 

 

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

917.200

917.100

917.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

90076.700

80420.200

70441.600

4] Employee Stock Option Outstanding

0.000

0.000

95.100

5] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

90993.900

81337.300

71453.700

LOAN FUNDS

 

 

 

1] Secured Loans

5487.100

4451.300

7436.400

2] Unsecured Loans

816.300

1046.100

2939.800

TOTAL BORROWING

6303.400

5497.400

10376.200

DEFERRED TAX LIABILITIES

2392.400

2298.200

2521.600

 

 

 

 

TOTAL

99689.700

89132.900

84351.500

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

15485.300

15418.100

17860.600

Capital work-in-progress

4769.400

565.300

429.800

 

 

 

 

INVESTMENT

68297.400

69102.500

63247.900

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
6309.100

4216.500
4172.400

 

Sundry Debtors
5092.300

4556.300
3450.100

 

Cash & Bank Balances
110.200

146.500
159.200

 

Other Current Assets
235.600

373.700
3851.200

 

Loans & Advances
10061.400

5687.100
9.500

Total Current Assets
21808.600

14980.100

11642.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2950.500

2235.300
2014.400

 

Other Current Liabilities
3021.800

4113.600
1009.300

 

Provisions
4698.700

4584.200

5805.500

Total Current Liabilities
10671.000

10933.100

8829.200

Net Current Assets
11137.600

4047.000
2813.200

 

 

 
 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

99689.700

89132.900

84351.500

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

49697.200

46400.600

81721.100

 

 

Interest and Dividend income

0.000

0.000

2237.000

 

 

Other Income

4634.600

2977.700

1520.600

 

 

TOTAL                                     (A)

54331.800

49378.300

85478.700

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

24053.300

19496.300

 

 

Purchases of Stock-in-Trade

157.000

0.000

 

 

 

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

(1321.000)

(100.900)

55755.600

 

 

Employee Benefits Expenses

3311.400

2956.300

 

 

 

Power and Fuel

6756.800

4988.500

 

 

 

Freight and Handling Expenses

679.900

530.300

 

 

 

Other Expenses

3701.900

3377.700

 

 

 

Captive Consumption

(225.600)

(37.900)

 

 

 

TOTAL                                     (B)

37113.700

31210.300

55755.600

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

17218.100

18168.000

29723.100

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

358.200

458.100

1203.900

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

16859.900

17709.900

28519.200

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1442.000

1762.900

3511.400

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

15417.900

15947.000

25007.800

 

 

 

 

 

Less

TAX                                                                  (H)

3647.900

4129.900

4086.800

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

11770.000

11817.100

20921.000

 

 

 

 

 

 

DEBENTURE REDEMPTION RESERVE NO LONGER REQUIRED

0.000

0.000

50.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

7037.200

22190.700

21809.700

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

10000.000

25000.000

17500.000

 

 

Corporate Dividend Tax

120.200

136.600

339.500

 

 

Proposed Dividend

2063.600

1834.000

2750.500

 

 

Transfer to Debenture Redemption  Reserve

0.000

0.000

0.000

 

BALANCE CARRIED TO THE B/S

6623.400

7037.200

22190.700

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

11187.800

8250.700

7282.600

 

 

Other Earnings

19.300

 24.600

0.300

 

TOTAL EARNINGS

11207.100

8275.300

7282.900

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

8364.200

7398.400

7765.200

 

 

Stores & Spares

162.700

65.800

1320.600

 

 

Capital Goods

1668.400

246.500

2774.500

 

TOTAL IMPORTS

10195.300

7710.700

11860.300

 

 

 

 

 

 

Earnings Per Share (Rs.)

128.33

128.86

191.51

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

 

1st  Quarter

2nd Quarter

3rd Quarter

Net Sales

12583.000

13533.500

12197.400

Total Expenditure

9437.600

10446.800

9886.100

PBIDT (Excl OI)

3145.400

3086.700

2311.300

Other Income

651.500

1917.000

793.500

Operating Profit

3796.900

5003.700

3104.800

Interest

61.000

77.900

106.800

Exceptional Items

0.000

0.000

0.000

PBDT

3735.900

4925.800

2998.000

Depreciation

359.700

386.200

395.100

Profit Before Tax

3376.200

4539.600

2602.900

Tax

646.800

712.300

623.400

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

2729.400

3827.300

1979.500

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

2729.400

3827.300

1979.500

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
21.66

23.93
24.47

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
31.02

34.37
30.60

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
41.34

52.46
84.76

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.17

0.20
0.35

 

 
 

 
 

Debt Equity Ratio

(Total Debt /Networth)

 
0.07

0.07
0.15

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.04

1.38
1.32

 

 

 

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

No

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

----------------------

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

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

 

FINANCE

 

The Company raised a long-term rupee loan of Rs.1690.000 Millions for financing its VSF expansion projects. Term loans aggregating Rs.2590.000 Millions were repaid during the year.

 

AWARDS AND ACCOLADES

 

In recognition of the extraordinary contribution made towards setting corporate governance standards in India, for authoring the first ever Securities and Exchange Board of India (SEBI) initiated Corporate Governance Report in India and for benchmarkable Governance standards in Aditya Birla Group companies, the Asian Centre for Corporate Governance and Sustainability has conferred the “Transformational Leader Award” on Mr. Kumar Mangalam Birla.

 

Some of the significant accolades earned by the Company during the year include:

 

  • GREENTECH Environment Award 2011 – Gold Award - from Greentech Foundation: Chemical Division, Nagda (M.P.)

 

  • State Level Safety Award (1st Prize for Fuel Efficient Boiler) from Karnataka State Safety Institute: Grasilene Division, Harihar (Karnataka)

 

  • Best Fuel Efficient Boiler Award (1st Prize) from Department of Factories and Boilers, Government of Karnataka: Grasilene Division, Harihar

 

  • Unnatha Suraksha Puraskara from National Safety Council, Karnataka, for Outstanding Safety Performance and Management Systems during 2009-10: Harihar Polyfibers, Harihar

 

  • Best Tax Payer Award (2nd Prize) for 2009- 10 from M.P. State Government: Staple Fibre Division Nagda

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

OVERVIEW

 

Global business sentiments in FY11-12 (Financial Year from April 2011 to March 2012) were marred by poor economic growth and debt concerns in the European Union. The Greece crisis and related problems with other countries not only affected the Euro Zone but also the rest of the world, including India. High crude oil prices added to the economic uncertainties. Amidst this global environment and the country’s internal factors, Indian economic growth also moderated with GDP growing by 6.5% in comparison to 8.4% in the previous financial year. While there was slower consumption growth, investment recorded a sharp slowdown. Average inflation at 9%, remained high during the year. This led to policy interest rate hikes by RBI continuously which further deteriorated the domestic investment scenario. The Indian rupee weakened sharply in the second half of FY11-12 as current account deficit widened and capital inflows reduced. Weaker currency led to further fuelling of inflation. With the easing of monetary policy by RBI, an impetus to growth is expected.

 

The Company was also affected by these macro-economic conditions. Rising energy cost and rupee depreciation led to a substantial increase in input costs for both Viscose Staple Fibre (VSF) and Cement. While higher interest rates resulted in a slowdown in infrastructure development and housing demand in urban India, inflation impacted consumption led demand.

 

STRATEGIC INITIATIVES

 

Acquisition of Domsjo Fabriker AB, Sweden

 

The Company completed the acquisition of a 1/3rd stake in Aditya Holding AB, Sweden (the holding company of leading pulp manufacturer Domsjo Fabriker AB, Sweden), in June 2011. The acquisition of Domsjo will help secure high quality dissolving grade pulp for VSF expansion.

 

Setting up of Greenfield VSF Plant in Turkey

 

To expand global footprint, plans are on anvil to set up a greenfield VSF plant in Turkey. To this end, Grasim has invested 1/3rd of the initial capital of Aditya Birla Elyaf Sanayi Ve Ticaret Anonim Sirketi (ABES), for acquiring land and meeting initial expenses during the year. ABES is in the process of undertaking a detailed study and subsequently seeking the necessary approvals.

 

BUSINESS PERFORMANCE REVIEW

 

Viscose Staple Fibre (VSF)

 

Performance Review

In FY11-12, prices of VSF and competing fibres corrected from their peak level witnessed in last year. In anticipation of record crop, cotton prices declined during the first quarter. High inventory and a cautious approach adopted by the Textile Value Chain amidst Euro Zone uncertainties affected business sentiments and demand for VSF. There were spurts of demand to restore depleted inventory by the downstream players in the second half. Higher input cost and sharp rupee depreciation impaired operating margins.

 

The Company operated all of its VSF plants at full capacity (excluding the shutdown period at its Nagda plant for water shortage). Production increased by 5% with reduced shutdown days at the Nagda plant. Sale volumes improved marginally as compared to the last year. A sharp depreciation in rupee, rise in energy prices, and higher caustic and sulphur prices led to substantial increase in input costs. The average pulp cost was up by 11%. Increase in input costs resulted in lower PBIDT and operating margins.

 

The performance of Pulp JVs was impacted due to increase in energy cost coupled with softening of Pulp prices. Difficult market conditions affected the performance of the fibre JV Birla Jingwei in China.

 

Capex Plan – VSF Business

 

The VSF greenfield projects at Vilayat (120,000 TPA), Gujarat, and the brownfield expansion (36,500 TPA) at Harihar, Karnataka, are on track. The Vilayat project is slated for commissioning towards the end of FY12-13. The Harihar project is expected to be commissioned in two phases during the current year. Total capital outlay of Rs.27000.000 Millions has been earmarked on above projects and other normal capex, of which Rs.7000.000 Millions is already spent. Balance amount of Rs.20000.000 Millions will be spent during FY12-13.

 

An additional water reservoir is being constructed at Nagda to create additional water storage capacity to meet water requirements during summers (pre-monsoon period). This will help in ensuring continuous plant operations at Nagda and avoid the plant shutdown due to water shortage. This is expected to be commissioned in June 2012.

 

Sector Outlook

 

The demand for textile will continue to expand as growing population and rising prosperity in the emerging markets will fuel consumption. With limited availability of arable land for cotton due to competition with other cash crops, VSF demand is expected to grow reasonably well in long term.

 

In the short run, the market condition may remain volatile. New capacities in China may create pressure on markets. Stability in the Euro Zone and macro-economic policies will be the key factors influencing demand. Profitability will be governed largely by the dynamics of competing fibres, input and energy costs.

 

Business Outlook

 

The focus of the Company continues to be on specialty fibres. The Company’s plan to produce specialty fibre at Vilayat will lead to market enlargement. The business will increase its efforts towards building a strong RandD, which will enable it to launch new product offerings. With the availability of increased volumes post expansion, VSF business will be able to achieve accelerated growth and increase its market share globally.

 

Chemicals

 

Performance Review

 

The Chemical business performed well. Despite the water shortage impacting operations in the first quarter, business attained a record production and sales volume. Caustic prices remained firm as industry capacity utilisation was affected due to low chlorine offtake. Chlorine prices declined to abnormal levels on account of lower demand of chlorine derivatives. High international prices resulted in lower import of Caustic. Gains from higher ECU realisations were partially offset by high salt cost and energy cost. Large export of salt, a key raw material for Caustic, from India led to a spike in salt prices. Operating profit at Rs. 1610.000 Millions increased by 29%.

 

The Company has been making concerted efforts to expand its portfolio of Value Added Products to increase the captive use of chlorine and simultaneously add value. Towards this end, the capacity of Chlorinated Paraffin Wax was increased from 10,000 TPA to 20,000 TPA during the year.

 

Sector Outlook

 

The demand for Caustic will be driven by higher consumption from the key consuming industries such as Aluminium, Paper and Pulp, Fibre, etc. Caustic prices are expected to remain firm given the favourable demand supply outlook.

 

Business Outlook

 

The expansion project of 182,500 TPA under implementation at Vilayat along with VSF project, mainly for captive use, is expected to be commissioned by the end of FY12-13, as scheduled. The business expects to maintain high capacity utilisation, given the favourable demand outlook.

 

UltraTech Cement Limited. (Cement Subsidiary)

 

Performance Review

 

The Indian economy saw growth moderation primarily on account of continuing high inflation and interest rates, exchange rate volatility and continuing rise in energy cost. The cement industry was impacted on account of these developments. However, demand recovery was seen from November 2011. The industry continued to have surplus capacity with capacity utilisation at around 73%.

 

Operating costs, particularly the cost of power and coal, increased substantially, attributable mainly to the over 30% hike in price of domestic coal by Coal India Limited. Imported coal prices also escalated as the rupee depreciated. Consequent to the escalation in the cost of diesel, freight costs saw a steep hike. The hike in railway freight and change in the excise duty structure further burdened the industry. The variable costs rose by 13%. The impact of higher energy prices were partially offset by fuel mix optimisation.

 

Both RMC and White Cement recorded good performance. RMC volumes were up by 10%. White Cement continued to operate at full capacity utilisation. Wall Care Putty, a value added product of White Cement, continued to grow impressively.

 

PBIDT increased by 31% supported largely by higher volumes of all the products.

 

Outlook for Cement Business

 

The cement demand is expected to grow by more than 8%. Infrastructure, housing development and rural development will be the major growth drivers. Capital outlay on infrastructure has been doubled to $1 trillion in the Twelfth Five-Year Plan. This will boost cement demand. Demand growth should lead to higher volumes and better capacity utilisation for the Company.

 

Despite the 8% projected growth in demand, the surplus scenario is likely to continue for another 3 years. In the present context, rising energy costs pose a challenge to the businesses. Margins may come under pressure due to volatile prices and increase in freight cost.

 

Capex Plan – Cement Business

 

The Chhattisgarh and Karnataka brownfield expansion projects together with the grinding units and bulk packaging terminals are on track and are targeted to be operational by Q1 FY13-14. Consequently, UltraTech’s cement capacity will be enhanced by 10 Mn. TPA to reach 62 Mn. TPA. With the enhanced capacity, volumes will increase from FY13-14. A total capex of Rs.104000.000 Millions is under implementation. Of this, Rs.55000.000 Millions is on expansion projects and Rs.49000.000 Millions towards augmentation of the grinding and evacuation facility, logistic infrastructure, captive thermal power plant, waste heat recovery system, modernisation and upgradation, etc.

 

Grasim Bhiwani Textiles Limited (GBTL)

 

GBTL revenue grew by 9% from Rs.3410.000 Millions to Rs.3720.000 Millions despite weak global sentiments. The fall in export volumes was compensated by domestic retail sales. The focus on high-end segments like women’s wear, contributed positively. The thrust on increasing conversion margins resulted in a higher net profit from Rs.43.000 Millions in the previous year to Rs.62.000 Millions, this year.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF :

Rs. In Millions

Particular

31.03.2012

31.03.2011

Claims/Disputed Liabilities not acknowledged as debt:

 

 

Custom Duty

37.000

37.000

Sales Tax/Purchase Tax/VAT

2.000

20.100

Excise Duty/Cenvat Credit/Service Tax

75.800

76.500

Water Cess

241.700

225.300

Various claims in respect of disputed liabilities of

 

 

discontinued business in earlier year

700.000

-

Others

268.100

360.500

Out of the above matter disputes pending with Revenue and other Government authorities challenged/appealed by the Company are:

 

 

(a)    Water charges for water not made available as per agreement

223.200

206.800

(b)    Penalty for not utilising the land within the time limit prescribed as per the sanction document, utilisation of which is delayed due to non-fulfilment of condition by Gujarat Industrial Development Corporation

53.400

-

(c)    Claims arising from disputes of vendors/contractors

71.600

75.600

(d)    Service Tax on Goods Transport Agency on full amount of service instead on 25% of value of services

Cash outflows for the above are determinable only on receipt of judgements pending at various forums/authorities

59.000

48.100

 

 

 

Custom Duty (Net of Cenvat Credit) which may arise if obligation for exports is not fulfilled against import of raw materials and machinery

80.600

08.500

 

 

 

Letter of Undertaking-cum-Indemnity, Corporate Guarantees given to Bank/ Financial Institutions for finance provided to subsidiary and joint venture

2076.100

3786.800

- Amount Outstanding against above

966.900

1783.600

 

 

UNSECURED LOAN

Rs. In Millions

 

As on

31.03.2012

As on

31.03.2011

LONG-TERM BORROWINGS

 

 

Deferred Sales Tax Loans

753.700

914.900

SHORT-TERM BORROWINGS

 

 

Documentary Demand Bills/Usance Bills under

Letter of Credit Discounted

62.600

131.200

Total

816.300

1046.100

 

Nature of Security and Repayment Terms

Rs. In Millions

Particular

31.03.2012

31.03.2011

(a)   Deferred Sales Tax Loans

 

 

- Repayable in six annual instalments starting from 31st May, 2012

544.600

653.500

- Repayable after ten years from the respective year in which the actual tax was collected, starting from 14th March, 2011

209.100

261.400

(b)   Foreign Currency Loans

 

 

- Repaid in September 2011

-

-

- Repaid in October 2011

-

-

Total Unsecured Borrowings (II)

753.700

914.900

 

 

STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012

Rs. In Millions

 

 

Three Months Ended

Nine Months Ended

 

31-12-2012

30-09-2012

31-12-2012

Particulars

 

(Unaudited)

(Unaudited)

(Unaudited)

1

Income from Operations

 

 

 

 

Net Sales / Income from Operations (Net ofExcise Duty)

12039.600

13344.800

3,7774.600

 

Other Operating Income

157.800

188.700

539.300

 

Total Income from Operations (Net)

12197.400

13533.500

3,8313.900

 

 

 

 

 

2

Expenses

 

 

 

 

Cost of Materials Consumed

6900.100

6269.000

1,9575.200

 

Purchases ofStock-in-Trade

-

09.600

48.700

 

Changes [Decrease / (Increase)] in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

(911.500)

504.100

(1086.700)

 

Employee Benefits Expense

994.000

892.500

2771.700

 

Power and Fuel Cost

1834.800

1796.800

5425.000

 

Freight and Handling Expenses

172.300

193.500

572.100

 

Depreciation and Amortisation Expense

395.100

386.200

1141.000

 

Other Expenses

896.400

781.300

2464.500

 

Total Expenses

1,0281.200

1,0833.000

3,0911.500

 

 

 

 

 

3

Profit from Operations before Other Income and Finance

Costs (1 - 2)

1916.200

2700.500

7402.400

4

Other Income

793.500

1917.000

3362.000

5

Profit from Ordinary Activities Before Finance Costs and

Tax (3 + 4)

2709.700

4617.500

1,0764.400

6

Finance Costs

106.800

77.900

245.700

7

Profit from Ordinary Activities before Tax (5 - 6)

2602.900

4539.600

1,0518.700

8

Tax Expense

623.400

712.300

1982.500

9

Net Profit for the Period (7 - 8)

1979.500

3827.300

8536.200

10

11

Paid-up Equity Share Capital (Face Value X 10 per share) Reserve excluding Revaluation Reserves

917.700

917.600

917.700

12

 

 

 

 

 

(a) Basic (Rs.)

(b) Diluted (Rs.)

21.57

21.55

41.72

41.68

93.04

92.96

 

 

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding *

- Number of Shares (000's)

56,643

57,150

56,643

2

- Percentage of Shareholding Promoters and Promoter Group Shareholding *

61.73%

62.30%

61.73%

 

a) Pledged / Encumbered

 

 

 

 

- Number of Shares (000's)

-

-

 

 

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

-

-

 

 

- Percentage of Shares (as a % of the total share capital of the Company)

-

-

 

 

b) Non-encumbered

 

 

 

 

- Number of Shares (000's)

23,429

23,429

23,429

 

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

100.00%

100.00%

100.00%

 

- Percentage of Shares (as a % of the total share capital of the Company) * Excludes shares represented by Global Depository Receipts

25.53%

25.54%

25.53%

B

INVESTORS COMPLAINTS

 

 

 

Pending at the beginning of the Quarter

-

 

 

Received during the Quarter

9

 

 

Disposed ofduring the Quarter

9

 

 

Remaining unresolved at the end of the Quarter

-

 

 

 

UNAUDITED STANDALONE SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2012

Rs. In Millions

 

 

Three Months Ended

Nine Months Ended

 

31-12-2012

30-09-2012

31-12-2012

Particulars

 

(Unaudited)

(Unaudited)

(Unaudited)

Viscose Staple Fibre

10299.400

11640.300

32559.000

Chemicals - Caustic Soda and Allied Chemicals

2355.100

2252.400

6951.600

Others *

255.000

261.300

765.400

TOTAL

12909.500

14154.000

40276.000

(Less) : Inter Segment Revenue

(712.100)

(620.500)

(1962.100)

Total Operating Income

12197.400

13533.500

3,833.900

 

 

 

 

2. SEGMENT RESULTS

 

 

 

Viscose Staple Fibre

1575.900

2221.600

6299.500

Chemicals - Caustic Soda and Allied Chemicals

524.300

585.400

1683.200

Others *

12.400

13.700

47.200

TOTAL

 

2112.600

2820.700

8029.900

Add / (Less) :

Finance Costs

(106.800)

(77.900)

(245.700)

Net Unallocable Income / (Expenditure )

597.100

1796.800

2734.500

Profit from Ordinary Activities before Tax

2602.900

4539.600

10518.700

 

 

 

 

3. CAPITAL EMPLOYED

(Segment Assets - Segment Liabilities)

 

 

 

Viscose Staple Fibre

37525.700

33660.900

37525.700

Chemicals - Caustic Soda and Allied Chemicals

13007.400

11243.200

13007.400

Others *

 

268.900

337.200

268.900

TOTAL

 

50802.000

45241.300

50802.000

Add: Unallocated Corporate Capital Employed

63930.600

66462.100

63930.600

TOTAL CAPITAL EMPLOYED

114732.600

111703.400

1147302.600

 

NOTES:

1. During the quarter, the Company has allotted :

 

  1. 14,334 fully paid up equity shares of Rs.10 each upon exercise of stock options granted under the Employee Stock Option Scheme, 2006.
  2. 27 equity shares of Rs.10 each out of Share Capital Suspense pursuant to Scheme of Arrangement between Aditya Birla Nuvo Limited and the Company, implemented in the Financial Year 1999-2000.

2.

  1. Previous periods' figures have been regrouped / rearranged wherever necessary to conform to the current periods' classification.
  2. The above Results were reviewed by the Audit Committee and approved by the Board of Directors today.

 

 

 

WEBSITE DETAILS

 

PRESS RELEASE

 

31 January 2013

Grasim reports financial results for Q3 FY 2012-13

 

 

Rs. in Millions

Consolidated net revenue

67680.000 http://www.grasim.com/media/press_releases/images/arrow.gif7%

Consolidated PBIDT

14850.000

 

 

 

Rs. in Millions

New capacities to be commissioned by Q1 FY 2013-14

 

 

VSF

146K TPA  http://www.grasim.com/media/press_releases/images/arrow.gif40 %

 

Cement

9.2 Mn. TPA  http://www.grasim.com/media/press_releases/images/arrow.gif 20%

 

Consolidated Financial Performance:

Grasim Industries Limited, an Aditya Birla Group Company, announced its results for the 3rd quarter ended 31st December 2012.

 

 

Q3 (October – December)

9M (April-December)

FY
2012-13

FY 2011-12

% Change

FY
2012-13

FY 2011-12

% Change

Reported

Restated
(Note a)

Reported

Restated
(Note a)

Net Revenue

6,768

6,300

6,300

7

20,203

17,962

17,962

12

PBIDT

1,485

1,554

1,488

--

4,757

4,437

4,346

9

Net Profit

549

669

634

(13)

1,887

1,839

1,801

5

Comparable Net Profit (excluding AV Terrace Bay- Note b)

574

 

634

(9)

1,920

 

1,801

7

 

 

Given the challenging global and domestic market conditions, the Company has performed satisfactorily, maintaining its PBIDT for the quarter.

 

The results for the current quarter are not strictly comparable as:

 

  • Financial results of UltraTech Cement, the cement subsidiary, for Q3 FY 2011-12 included subsidies amounting to Rs.860.000 Millions for the earlier period, and

 

  • Grasim’s proportionate share amounting to Rs.250.000 Millions in the loss incurred by the recently acquired pulp JV, AV Terrace Bay, Canada is included in the current quarter.

 

Comparable Net Profit for the quarter adjusted for a. and b. above is Rs.5740.000 Millions against Rs.6340.000 Millions in corresponding quarter.

 

During nine months, the Company’s comparable Net Profit have gone up by 7 per cent from Rs.18010.000 Millions in last year to Rs.19200.000 Millions in the current year.


Viscose Staple Fibre (VSF)

Market conditions for the textile industry, the key consumer of VSF, continued to be challenging. This was compounded by the surplus VSF capacity in China and depressed cotton prices. Despite the difficult environment, sales volumes at 78,579 tonnes have been sustained. However, volumes during the nine months have grown by 14 per cent. Global VSF prices declined sharply by 14 per cent as compared to Q3 last year. The rupee depreciation has reduced its impact in the domestic market to some extent. Higher Caustic prices coupled with lower realization, have led to pressure on margins. The Chemical business, however, benefited from the increase in Caustic prices.

 

While in Nagda, the water shortage issue has been resolved with the construction of reservoir, due to abnormally deficient rains in Karnataka, production at Harihar is likely to be impacted intermittently from February onwards till onset of monsoons.


The performance of pulp JVs was adversely affected due to the decline in realisations and volumes.  AV Terrace Bay, Canada, the pulp JV acquired in Q2 FY 2012-13 with Grasim holding a 40 per cent stake, commenced operations in October, 2012, as planned. Its losses are expected to be reduced and converted into profit in a phased manner thru’ mill upgradation and cost optimization.

Cement Subsidiary (UltraTech Cement)

UltraTech has reported satisfactory performance for the quarter. Cement sales volumes were maintained at 10.4 Mn. tonnes as demand remained subdued. Net Revenue stood at Rs.51640.000 Millions as compared to Rs.48000.000 Millions, up by 8 per cent. Net Profit for the quarter was at Rs.6080.000 Millions as against Rs.5980.000 Millions, inclusive of subsidies for the earlier period as explained.

 

The increase in railway freight and hike in diesel prices led to higher costs of raw materials and logistics. The softening in prices of imported coal and fuel mix optimisation helped in reducing energy costs, though rupee depreciation partially offset the benefit.


Chemical Business

The Chemical business continued to perform well. ECU realisation remained firm as lower chlorine offtake led to lower industry utilisation. The operating profit, as well as margins, grew.

 

VSF and Chemical Capex

At Harihar (Karnataka), having commissioned Phase I expansion in Quarter 2, Phase II (18,250 TPA) expansion is expected to be completed in the current quarter.

 

The greenfield projects of VSF (120,000 TPA) and Chemical (182,500 TPA) along with captive power plants at Vilayat (Gujarat) are progressing well. On completion by Quarter 1 in the next fiscal, these projects will generate additional volumes and profitability.

 

Work on Epoxy project (Vilayat) has started and is likely to be commissioned in September 2013.

 

A major revamp of the VSF plant at Nagda has started which will be undertaken in phases, spread over the next three years.



Cement Capex

The brownfield expansions at Chhattisgarh and Karnataka totaling 9.2 Mn. TPA are on track. Clinker capacity is expected to be completed by Q1 FY 2013-14. Consequently, UltraTech’s cement capacity will stand augmented to 62 Mn. TPA.

 

Disposal of Investments

In line with the Company’s long term strategy of exiting from unrelated investments, the Company has entered into agreement to sell its entire holding of 15 per cent unquoted equity shares in Alexandria Carbon Black Co. (ACB) and 2.75 per cent quoted equity shares in Thai Carbon Black Public Company Limited (TCB) to another Aditya Birla Group Company. While the sale of TCB has been completed at market valuation in January, 2013, the sale of ACB shares will be completed shortly at the fair valuation done by the independent reputed valuer.  

 

Outlook
Given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry is expected to remain under pressure for some more time. However, in Cement, the long term demand is expected to grow by an average 8 per cent with housing, infrastructure and allied spending being the key value drivers. Industry capacity utilisation is likely to improve to 80 per cent in FY 2016 as the pace of capacity addition will slow down. Input cost is likely to increase in line with the general inflation with margins remaining range bound.

 

Capacity expansions under implementation in both VSF and Cement will provide additional volumes, driving growth and further consolidation of the Company’s leadership. The Company will continue to focus on cost reduction measures and improving asset productivity to maintain its position as the lowest cost producer creating shareholder value.

Cautionary Statement

Statements in this “Press Release” describing the Company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities law and regulations. Actual results could differ materially from those express or implied. Important factors that could make a difference to the Company’s operations include global and Indian demand supply conditions, finished goods prices, feedstock availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise. 

 

 

 

 

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.54.26

UK Pound

1

Rs.81.94

Euro

1

Rs.70.21

 

 

INFORMATION DETAILS

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

75

 

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.