MIRA INFORM REPORT

 

 

Report Date :

17.10.2013

 

IDENTIFICATION DETAILS

 

Name :

CENTURY TEXTILE AND INDUSTRIES LIMITED

 

CENTURY PULP AND PAPER DIVISION OF CENTURY TEXTILE AND INDUSTRIES LIMITED

 

 

Registered Office :

‘Century Bhavan’, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

20.10.1897

 

 

Com. Reg. No.:

11-000163

 

 

Capital Investment / Paid-up Capital :

Rs. 930.400 Millions

 

 

CIN No.:

[Company Identification No.]

L17120MH1897PLC000163

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMC10668A

 

 

TIN No.:

05001266166

 

 

PAN No.:

[Permanent Account No.]

AAACC2659Q

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

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.

 

 

No. of Employees :

12972 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (60)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 72198000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities : AA-

Rating Explanation

High degree of safety and very low credit risk.

Date

July 05, 2013

 

 

Rating Agency Name

CARE

Rating

Short term bank facilities : A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

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.

 

 

LOCATIONS

 

Registered/ Corporate Office :

‘Century Bhavan’, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra, India

Tel. No.:

91-22-24957000

Fax No.:

91-22-24309491/ 24361980

E-Mail :

atulkedia@centurytext.com

centextho@centurytext.com

purchase@century.org.in

sdbahuguna@centurypaper.org.in

Website :

http://www.centurytextind.com

 

 

Corporate Office:

CENTURY RAYON

Industry House, 159, Churchgate Reclamation, Mumbai – 400020, Maharashtra, India

Tel No.: 91-22-22027570

 

 

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

Designation :

Chairman

 

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Director

 

 

Name :

Mr. Pradip Kumar Daga

Designation :

Director

 

 

Name :

Mr. Arvind C. Dalal

Designation :

Director

Date of Appointment :

09.05.1986

 

 

Name :

Mr. Amal Ganguli

Designation :

Director

 

 

Name :

Mr. B. L. Jain

Designation :

Whole-time Director

Date of Birth/Age :

76 Years

Qualification :

Bachelor’s degree in Commerce and is a Chartered Accountant.

DIN No.:

00040804

 

 

KEY EXECUTIVES

 

TEXTILE

CENTURY TEXTILES

BIRLA CENTURY, CENTURY YARN AND DENIM :

Name :

Mr. R.K. Dalmia

Designation :

Senior President

 

 

Name :

Mr. D.K. Agrawal

Designation :

President (Corporate Finance) and Secretary

 

 

Name :

Mr. U.C. Garg

Designation :

Executive President (Purchase and Projects)

 

 

Name :

Mr. R.C. Panwar

Designation :

Joint President (Marketing)

 

 

BIRLA CENTURY

 

Name :

Mr. Sanjay Khimesra

Designation :

Joint President (Birla Century)

 

 

Name :

Mr. Abhijit Bhatwadekar

Designation :

Vice President (Spinning)

 

 

Name :

Mr. Pankaj Mehta

Designation :

Vice President (Processing)

 

 

CENTURY YARN AND DENIM

 

Name :

Mr. R.S. Verma

Designation :

Joint President

 

 

RAYON

CENTURY RAYON, TYRECORD AND CHEMICALS:

Name :

Mr. O.R. Chitlange

Designation :

Senior President

 

 

Name :

Mr. R. Lalwani

Designation :

President (Commercial)

 

 

Name :

Mr. S.M. Sanklecha

Designation :

Joint President (Purchase)

 

 

Name :

Mr. S.K. Mital

Designation :

Joint President (Engineering Services and Auxiliaries)

 

 

Name :

Mr. Subodh Dave

Designation :

Senior Vice President (Personnel and Administration)

 

 

Name :

Mr. Apurva Gupta

Designation :

Senior Vice President (Rayon)

 

 

Name :

Mr. V.K. Jhingon

Designation :

Senior Vice President (Tyrecord, CSY and TQM)

 

 

Name :

Mr. Sudhir Luthra

Designation :

Senior Vice President (Chemicals and Safety)

 

 

Name :

Mr. B. Manmohan

Designation :

Vice President (Finance)

 

 

Name :

Mr. Arun Jhawar

Designation :

Vice President (Marketing)

 

 

CEMENT

CENTURY, MAIHAR, MANIKGARH AND SONAR BANGLA CEMENTS:

Name :

Mr. B.L. Jain

Designation :

Senior President

 

 

CENTURY CEMENT AND SONAR BANGLA CEMENT:

Name :

Mr. Alok Patni

Designation :

President (Works)

 

 

Name :

Mr. Vijay Kumar

Designation :

Joint President (Plant)

 

 

Name :

Mr. M.K. Jain

Designation :

Senior Vice President (Purchase)

 

 

Name :

Mr. A.K. Panja

Designation :

Senior Vice President (Commercial)

 

 

Name :

Mr. Satish Gurtoo

Designation :

Senior Vice President (Electrical and Instrumentation)

 

 

Name :

Mr. Arun Gaur

Designation :

Senior Vice President (Finance)

 

 

Name :

Mr. C.S. Vithalkar

Designation :

Vice President (Mechanical)

 

 

Name :

Mr. A.K. Biswas

Designation :

Vice President (Project)

 

 

Name :

Mr. A.K. Bajpai

Designation :

Vice President (Marketing)

 

 

Name :

Mr. B. P. Mishra

Designation :

Vice President (Mines)

 

 

Name :

Mr. Piyush Kumar Choudhary

Designation :

Vice President (Power Plant)

 

 

MAIHAR CEMENT UNITS I AND II:

UNIT I:

 

Name :

Mr. R.K. Vaishnavi

Designation :

President (Works)

 

 

Name :

Mr. P. M. Intodia

Designation :

Executive President (Marketing)

 

 

Name :

Mr. Arvind Kumar Jain

Designation :

Joint President (Mechanical)

 

 

Name :

Mr. Manoj Gupta

Designation :

Joint President (Finance)

 

 

Name :

Mr. Ajai Kumar Jain

Designation :

Senior Vice President (Production)

 

 

Name :

Mr. R. Deshpande

Designation :

Senior Vice President (Purchase)

 

 

Name :

Mr. Govind Mahajan

Designation :

Vice President (Electrical & Instrumentation)

 

 

UNIT II

 

Name :

Mr. R.S. Doshi

Designation :

Executive President (Commercial)

 

 

Name :

Mr. S. K. Tewari

Designation :

Executive President (Mines and Projects)

 

 

Name :

Mr. Ashok Maheshwari

Designation :

Joint President (Marketing)

 

 

Name :

Mr. P.K. Agarwal

Designation :

Joint President (Purchase)

 

 

Name :

Mr. A.S. Thakur

Designation :

Vice President (Materials and Systems)

 

 

Name :

Mr. J. P. Pandey

Designation :

Vice President (Mechanical)

 

 

Name :

Mr. S. K. Singh 

Designation :

Vice President (Personnel)

 

 

MANIKGARH CEMENT UNITS I AND II

UNIT I

 

 

Name :

Mr. P.S. Bakshi

Designation :

President (Works)

 

 

Name :

Mr. A.D. Karwa

Designation :

Executive President (Finance and Marketing)

 

 

Name :

Mr. R.K. Udge

Designation :

Joint President (Mines)

 

 

Name :

Mr. M. P. Joshi

Designation :

Joint  President (Electrical and Instrumentation)

 

 

Name :

Mr. A.K. Jain

Designation :

Senior Vice President (Mechanical)

 

 

Name :

Mr. Deepal Jaisinghni

Designation :

Vice President (Mechanical)

 

 

UNIT II

 

Name :

Mr. J. L. Tiwari

Designation :

Senior Executive President (Plant)

 

 

Name :

Mr. S.K. Mandelia

Designation :

Executive President (Commercial)

 

 

Name :

Mr. N. D. Hemke

Designation :

Senior Vice President (Mechanical)

 

 

Name :

Mr. E. V. Ravikumar

Designation :

Vice President (Finance)

 

 

Name :

Mr. V. K. Sharma

Designation :

Vice President (Mechanical)

 

 

Name :

Mr. P. K. Bajaj

Designation :

Vice President (Commercial)

 

 

Name :

Mr. G.V. Suryanarayan

Designation :

Vice President (Instrumentation)

 

 

PAPER:

CENTURY PULP AND PAPER:

 

 

Name :

Mr. Bipin Lal

Designation :

Chief Executive Officer

 

 

Name :

Mr. J. P. Narain

Designation :

Chief Operating Officer (Works)

 

 

Name :

Mr. Karthik V. Kumar

Designation :

Chief Strategy and Marketing Officer

 

 

Name :

Mr. Indranil Roy

Designation :

Chief Sales Officer

 

 

Name :

Mrs. Archana Singh

Designation :

Chief Finance and Business Planning Officer

 

 

Name :

Mr. Ashutosh Bhalerao

Designation :

Chief Supply Chain Officer

 

 

Name :

Mr. A. K. Bhatia

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

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

210470

0.23

Bodies Corporate

37358910

40.28

Sub Total

37569380

40.51

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

37569380

40.51

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

9241177

9.96

Financial Institutions / Banks

3819332

4.12

Central Government / State Government(s)

2580

0.00

Insurance Companies

2388936

2.58

Foreign Institutional Investors

8958357

9.66

Sub Total

24410382

26.32

(2) Non-Institutions

 

 

Bodies Corporate

8910311

9.61

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

16245752

17.52

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4030741

4.35

Any Others (Specify)

1572914

1.70

Clearing Members

473266

0.51

Non Resident Indians

625426

0.67

Overseas Corporate Bodies

365820

0.39

Trusts

104134

0.11

Foreign Nationals

388

0.00

Directors & their Relatives & Friends

880

0.00

Foreign Corporate Bodies

3000

0.00

Sub Total

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

(1) Promoter and Promoter Group

0

0.00

(2) Public

306200

0.00

Sub Total

306200

0.00

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

93045680

0.00

 

 

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.

 

 

Products/ Services :

Products Description

Item Code No.

 

Other Grey Portland Cement

252329

Paper

480200

Viscose Filament Yarn

540332

Melt-O-Clean

1740846

Terms :

 

Selling :

Cheque

 

 

Purchasing :

Cheque

 

 

GENERAL INFORMATION

 

No. of Employees :

12972 (Approximately)

 

 

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 Travancore

¯      Indusind Bank

¯      State Bank of Mysore

¯      ICICI Bank

¯      Development Credit Bank

¯      State Bank of Patiala

¯      State Bank of Bikaner and Jaipur

 

 

Facilities :

 

Secured Loans

31.03.2013

31.03.2012

 

 

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Secured Non Convertible Debentures

 

 

1000000 (31.03.2012 - Nil) Redeemable non-convertible debentures (Repayment due on Oct’ 2015, put / call option from May’2015 with one month notice. Interest rate as at 31.03.2013 - 10.07 % p.a)

5000.000

0.000

Term loans from Banks - Secured

 

 

Term Loan from State Bank of India

(Repayable in 24 equal quarterly installments, last installment falling due on June’2016. Interest rate as at 31.03.2013 - 11.20 % p.a)

1666.200

2333.000

Term Loan from Bank of Baroda

(Repayable in 24 equal quarterly installments, last installment falling due on June’ 2014. Interest rate as at 31.03.2013 - 11.20 % p.a)

69.600

372.000

Term Loan from State Bank of Hyderabad

(Repayable in 24 quarterly installments, last installment falling due on June’ 2014. Interest rate as at 31.03.2013 - 11.20 % p.a)

59.800

211.000

Term Loan from Allahabad Bank

(Repayable in 24 quarterly installments, last installment falling due on June’ 2014. Interest rate as at 31.03.2013 - 11.20 % p.a)

59.800

211.000

Term Loan from Union Bank of India

(Repayable in 24 quarterly installments, last installment falling due on June’ 2015. Interest rate as at 31.03.2013 - 11.20 % p.a)

555.200

908.400

Term Loan from IDBI Bank

(Repayable in 24 quarterly installments, last installment falling due on June’ 2014. Interest rate as at 31.03.2013 - 11.20 % p.a)

69.600

372.000

Term Loan from Dena Bank

(Repayable in 22 equal quarterly installments, last installment falling due on Mar’2019. Interest rate as at 31.03.2013 - 11.25 % p.a)

1112.900

646.200

Term Loan from Syndicate Bank

(Repayable in 22 equal quarterly installments, last installment falling due on Mar’2019. Interest rate as at 31.03.2013 - 11.20 % p.a)

1073.000

623.100

Term Loan from State Bank of Travancore

(Repayable in 22 equal quarterly installments, last installment falling due on Mar’2019. Interest rate as at 31.03.2013 - 11.25 % p.a)

914.100

530.700

Term Loan from State Bank of India

(Repayable in 10 equal quarterly installments, last installment falling due on Mar’2017. Interest rate as at 31.03.2013 - 11.20 % p.a)

3500.000

3500.000

Term Loan from Indusind Bank

(Prepaid during the year)

0.000

865.900

Term Loan from State Bank of India

(Repayable in 20 quarterly installments, last installment falling due on Sep’2018. Interest rate as at 31.03.2013 - 11.20 % p.a)

2300.000

750.000

Term Loan from Bank of Baroda

(Repayable in 20 quarterly installments, last installment falling due on Sep’2018. Interest rate as at 31.03.2013 - 11.20 % p.a)

478.400

150.000

Term Loan from State Bank of Hyderabad

(Repayable in 20 quarterly installments, last installment falling due on Sep’2018. Interest rate as at 31.03.2013 - 11.20 % p.a)

414.000

150.000

Term Loan from Allahabad Bank

(Repayable in 20 quarterly installments, last installment falling due on Sep’2018. Interest rate as at 31.03.2013 - 11.20 % p.a)

441.600

150.000

Term Loan from Union Bank of India

(Repayable in 20 quarterly installments, last installment falling due on Sep’2018. Interest rate as at 31.03.2013 - 11.20 % p.a)

644.000

150.000

Term Loan from State Bank of Mysore

(Repayable in 20 quarterly installments, last installment falling due on Sep’2018. Interest rate as at 31.03.2013 - 11.20 % p.a)

414.000

150.000

Term Loan from Indusind Bank

(Repayable in 12 equal quarterly Installments, last installment falling due on Sep’2016. Interest rate as at 31.03.2013 - 11.50 % p.a)

958.300

1000.000

Term Loan from State Bank of India

(Repayable in monthly installments, last installment due on May’2012 )

0.000

0.000

Term Loan from ICICI Bank

(Repayable in 16 equal quarterly installments, last installment falling due on Jan’2017. Interest rate as at 31.03.2013 - 11.50 % p.a)

2750.000

3750.000

Term Loan from Indusind Bank

(Repayable in 12 equal quarterly installments, last installment falling due on Nov’2017. Interest rate as at 31.03.2013 - 11.25 % p.a)

650.000

0.000

Term Loan from Development Credit Bank

(Repayable in 12 equal quarterly installments, last installment falling due on Dec’2016. Interest rate as at 31.03.2013 - 11.20 % p.a)

583.300

0.000

Term Loan from Syndicate Bank

(Repayable in 12 equal quarterly installments, last installment falling due on Dec’2016. Interest rate as at 31.03.2013 - 11.50 % p.a)

708.300

0.000

Term Loan from State Bank of India

Bullet repayable at the end of 24 months, repayment falling due on Dec’2014. Interest rate as at 31.03.2013 - 10.35 % p.a)

3000.000

0.000

Term Loan from State Bank of Travancore

Bullet repayable at the end of 24 months, repayment falling due on Dec’2014. Interest rate as at 31.03.2013 - 10.40 % p.a)

2000.000

0.000

TUF Loan from State Bank of India

(Repayable in 26 quarterly installments, last installment falling due on Mar’2014. Interest rate as at 31.03.2013 - 5.95 % p.a) @

0.000

175.000

TUF Loan from State Bank of Patiala

(Repayable in 26 equal quarterly installments, last installment falling due on June’2015. Interest rate as at 31.03.2013 - 6.50 % p.a) @

59.200

106.500

TUF Loan from State Bank of India

(Repayable in 28 equal quarterly installments, last installment falling due on June’2014. Interest rate as at 31.03.2013 - 5.95 % p.a) @

3.100

12.500

TUF Loan from State Bank of India

(Repayable in 32 equal quarterly installments, last installment falling due on Sep’ 2018. Interest rate as at 31.03.2013 - 5.95 % p.a) @

42.200

49.900

TUF Loan from State Bank of India

(Repayable in 28 equal quarterly installments, last installment falling due on Mar’2016. Interest rate as at 31.03.2013 - 5.95 % p.a) @

937.100

1405.700

TUF Loan from State Bank of India

(Repayable in 26 quarterly installments, last installment falling due on Mar’2015. Interest rate as at 31.03.2013 - 5.95 % p.a) @

7.600

15.600

TUF Loan from State Bank of India

(Repayable in 26 equal quarterly installments, last installment falling due on Mar’2016. Interest rate as at 31.03.2013 - 5.95 % p.a) @

231.600

346.800

TUF Loan from State Bank of India

(Repayable in 28 equal quarterly installments, last installment falling due on Mar’2016. Interest rate as at 31.03.2013 - 5.95 % p.a) @

100.000

150.000

TUF Loan from State Bank of Mysore

(Repayable in 28 equal quarterly installments, last installment falling due on Mar’2016. Interest rate as at 31.03.2013 - 5.95 % p.a) @

214.300

321.400

TUF Loan from State Bank of Hyderabad

(Repayable in 28 equal quarterly installments, last installment falling due on Mar’2016. Interest rate as at 31.03.2013 - 5.95 % p.a) @

142.800

214.300

TUF Loan from State Bank of Bikaner and Jaipur

(Repayable in 28 equal quarterly installments, last installment falling due on Mar’2016. Interest rate as at 31.03.2013 - 5.95 % p.a) @

100.000

150.000

TUF Loan from State Bank of India

(Repayable in 20 equal quarterly installments, last installment falling due on Jan’2020. Interest rate as at 31.03.2013 - 6.20 % p.a) @

148.700

0.000

TUF Loan from State Bank of India

(Repayable in 20 equal quarterly installments, last installment falling due on May’2020. Interest rate as at 31.03.2013 - 5.95 % p.a) @

72.800

0.000

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

(a) Working capital loans from banks

7575.600

6890.900

(b) Pre-shipment, Post-shipment and Export Bills Discounting facilities

453.100

0.000

Total

39510.200

26661.900

 

Note:

 

@ Represents effective interest rate net of 4% - 5% subsidy under Technology Upgradation Fund (TUF) Scheme.

 

LONG TERM BORROWINGS

 

Details of Security :

1 Loans covered in S. No. 2 to 7 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile (Birla Century), Rayon, Century Cement, Maihar Cement I and II, Manikgarh Cement, Pulp and Paper divisions and phase I of Real Estate Development (excluding leasehold land of Birla Century and Pulp and Paper divisions).

 

2 Loans covered in S. No. 8 to 11, 22 to 26, 38 and 39 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile (Birla Century), Rayon, Cement, Pulp and Paper divisions and phase I of Real Estate Development (excluding leasehold land at Birla Century, Pulp and Paper, Sonar Bangla Cement and Maihar Cement I and II divisions).

 

3 Loans covered in S. No. 13 and 19 to 20 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile, Rayon, Century Cement, Maihar Cement I and II, Manikgarh Cement and Pulp and Paper divisions and phase I of Real Estate Development (excluding the leasehold land of the Birla Century, Pulp and Paper and Maihar Cement I and II divisions).

 

4 Loans covered in S. No. 14 to 18 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile (Birla Century), Rayon, Cement and Pulp and Paper divisions and phase I of Real Estate Development of the Company including those acquired/ to be acquired for the new project (excluding the leasehold land of Birla Century, Pulp and Paper and Sonar Bangla Cement divisions).

 

5 Loans covered in S. No. 1 and 21 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile, Rayon, Cement and Pulp and Paper divisions and phase I of Real Estate Development including those acquired/to be acquired for the new project (excluding the leasehold land of all divisions).

 

6 Loans covered in S. No. 27 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile (Birla Century), Rayon, Cement and Pulp and Paper divisions and phase I of Real Estate Development including expansion project of Denim division (excluding the leasehold land of the Pulp and Paper division).

 

7 Loans covered in S. No. 28 to 37 above :

First pari passu charge over the entire fixed assets, present and future, of the Company’s Textile (Birla Century), Rayon, Cement and Pulp and Paper divisions and phase I of Real Estate Development including those acquired/to be acquired for the new project (excluding the leasehold land of Pulp and Paper division).

 

SHORT TERM BORROWINGS

 

Nature of Security

(i) Working capital loans from banks are secured against the hypothecation of the whole of the Company’s raw materials, finished goods, material-in-process, stores and spares, present and future book debts, receivables and a second charge created over movable and immovable fixed assets of some of the Company’s divisions viz. Birla Century, Cement, Pulp and Paper and Rayon divisions (excluding leasehold land at Birla Century, Pulp and Paper and Sonar Bangla Cement division) and also a portion of the land at Worli, Mumbai.

 

(ii) The charge created as per para (i) also extends to the guarantees given by the banks on behalf of the Company, aggregating Rs.1290.600 Millions (31.3.2012 Rs.2286.400 Millions).

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Dalal and Shah

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

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

 

 

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 AND LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011 

 

SALES

 

 

 

 

 

Income

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.)

(3.710

2.380

25.520

 

 

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

1.8

1.34

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.73

0.6

0.63

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

Yes

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

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

 

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

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10433162

31/05/2013

5,300,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE, J  .N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B78017340

2

10402127

14/01/2013 *

5,000,000,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, MAKER TOWER, 'E', CUFFE PARADE, COLABA,, MUMBAI, MAHARASHTRA - 400005, INDIA

B67999219

3

10395550

26/12/2012 *

437,500,000.00

STATE BAN OF INDIA

CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE J. N. HEREDIA MARGE BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B65841835

4

10395553

26/12/2012 *

1,250,000,000.00

INDUSIND BANK LTD.

2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, MAHARASHTRA - 411001, INDIA

B65705212

5

10360939

05/07/2012 *

3,500,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE J .N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B43992361

6

10350203

10/04/2012 *

3,900,000,000.00

DENA BANK

CORPORATE BUSINESS BRANCH, C-10, G -BLOCK, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA

B38774675

7

10348102

10/04/2012 *

4,000,000,000.00

INDUSIND BANK LTD.

2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, MAHARASHTRA - 411001, INDIA

B37180239

8

10339007

10/04/2012 *

4,000,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B36662880

9

10325474

16/12/2011 *

11,460,000,000.00

STATE BANK OF INDIA

CORPORAT ACCOUNTS GROUP BRANCH, NEVILLE HOUSE, J. 
N. HEREDIA MARG BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B29040151

10

10253715

23/12/2010 *

2,850,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, NEVILLE HOUSE J.N. HERE 
DIA MARGE, BALLARD ESTATE, MUMBAI, MAHARASHTRA – 400001, INDIA

B03371838

11

10257264

23/12/2010 *

8,334,700,000.00

STATE BANK OF INDIA (AS SECURITY AGENT)

CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE J. 
N. HEREDIA MARG BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B03369352

12

10225179

23/12/2010 *

72,400,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, NEVILLE HOUSE J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 40 0001, INDIA

B03430931

13

10157532

23/12/2010 *

4,000,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, 23, J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B03431640

14

10144100

16/02/2009

10,630,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP BRANCH, VOLTAS HOUSE, 23 J.N HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

A57158602

15

10120215

23/12/2010 *

802,400,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, 23, J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B03431277

16

10073621

19/09/2007

5,296,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP BRANCH, VOLTAS HOUSE,23, J.N.HEREDIA MARG, MUMBAI, MAHARASHTRA - 400001, INDIA

A25881210

17

10074379

23/12/2010 *

66,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, 23, J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B03570207

18

10069808

23/12/2010 *

5,230,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, 23, J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B03432044

19

10040820

26/02/2007

2,250,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP BRANCH, VOLTAS HOUSE-23 J N HEREDIA MARG, MUMBAI, MUMBAI, MAHARASHTRA - 400001, INDIA

A11774015

20

10085121

23/12/2010 *

310,000,000.00

STATE BANK OF PATIALA

ATLANTA 1ST FLOOR, JAMNALAL BAJAJ MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

B03239308

21

10009471

26/06/2006

310,000,000.00

STATE BANK OF PATIALA

ATLANTA,1ST FLOOR, JAMANA LAL BAJAJ MARG, NARIMAN, 
POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

A02278877

22

90240991

26/09/2005 *

2,180,000,000.00

STATE BANK OF INDIA

STATE BANK BHAVAN, MADAM CAMA RAOD, MUMBAI, MAHARASHTRA - 400021, INDIA

-

23

90214879

24/05/2013 *

19,000,000,000.00

STATE BANK OF INDIA

CORPORATE ACCOUNTS GROUP, NEVILLE HOUSE, J.N. HER 
EDIA MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B77066967

24

90215984

10/04/1996 *

836,600,000.00

THE BANK OF NOVA SCOTIA ASIA LTD.

10; COLLYER QUAY, 15-01/04; OCEAN BUILDING, SINGAPORE

-

25

90212751

12/10/1995

39,000,000.00

ALLAHABAD BANK.

RED CROSS PLACE BRANCH, RED CROSS PLACE, CALCUTTA, WEST BENGAL - 700001, INDIA

-

26

90212691

03/07/1995

50,000,000.00

STANDARD CHARTERED BANK

4, N.S. ROAD, CALCUTTA, WEST BENGAL - 700001, INDIA

-

27

90212638

18/09/1995 *

30,500,000.00

THE BANK OF RAJASTHAN LTD.

31, CHOWRINGHEE ROAD, CALCUTTA, WEST BENGAL - 700016, INDIA

-

28

90214545

09/12/1996 *

427,500,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 24; PARK STREET, CALCUTTA, WEST BENGAL - 700016, INDIA

-

29

90212428

08/12/1993

100,000,000.00

ANZ GRINDLAYS BANK PLC.

90, MAHATMA GANDHI ROAD, BOMBAY, MAHARASHTRA - 400023, INDIA

-

 

* Date of charge modification

 

 

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.620 Millions.

 

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


 

CENTURY TEXTILES AND INDUSTRIES LIMITED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2013

(Rs. In Millions)

PARTICULARS

3 months

ended

30.6 2013

 

(Unaudited)

Income from operations

 

(a) Net sales/income from operations

(Net of excise duty)

15734.2

(b) Other operating income

174.100

Total Income from operations (net)

15908.300

Expenses

 

(a) Cost of materials consumed

5864.400

(b) Purchases of stock-in-trade

12.700

(c) Changes in inventories of finished goods,

 

work-in-progress and stock-in-trade

(521.000)

(d) Employee benefits

1284.600

(e) Depreciation and amortisation

896.700

(f) Other expenditure

 

- Stores and Spare parts consumed

731.100

- Power, Fuel and water

3185.600

- Freight. Forwarding, Octroi, etc

2226.900

- Others

969.300

Less: Expenditure transferred to Capital Account

15.900

Total expenses (a to f)

14634.400

Profit from Operations before other income, finance costs and exceptional items ( 1-2)

1273.900

Other Income

47.6000

Profit from ordinary activities before finance costs and exceptional items (3 + 4)

1321.500

Finance Costs

875.000

Profit / (Loss) from ordinary activities after finance costs and before exceptional items (5 - 6)

446.500

Exceptional items

-

Profit / (Loss) from ordinary activities before tax (7 -8 )

446.500

Tax expense

- Current Tax (Net of MAT entitlement credit)

-

- Deferred Tax

70.000

- Tax adjustments in respect of earlier years (Net) Net Profit / (Loss) from ordinary activities

-

Net Profit / (Loss) from ordinary activities after tax (9-10)

376.500

Extraordinary items

-

Net Profit / (Loss) for the period (11 -12)

376.500

Paid-up equity share capital (Face Value : Rs 10/- per Share)

930.400

Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

Basic and Diluted Earnings Per Share in Rs. ( not annualised)

4.05

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED, UNDER CLAUSE 41 OF THE LISTING AGREEMENT FOR THE QUARTER ENDED 30TH JUNE, 2013

(Rs. In Millions)

 

3 months

ended

30 6 2013

 

 

(Unaudited)

1

Segment Revenue

 

 

(Net Sales / Income from operations)

 

 

(a ) Textiles

3944.800

 

(b ) Cement

8368.200

 

( c ) Pulp and Paper

3791.200

 

( d ) Others

316.100

 

Total

16420.300

 

Less: Inter Segment Revenue

686.100

 

Net Sales/Income from operations

15734.200

2

Segment Results

 

 

Profit / ( Loss ) after depreciation but before finance costs and exceptional items

 

 

(a) Textiles

340.900

 

( b) Cement

1076.800

 

( c ) Pulp and Paper

(55.300)

 

(d ) Others

83.100

 

Sub - Total

1445.500

 

 

 

 

Add / ( Less) :Inter Segment ( Profit) / Loss

0.400

 

Total

1445.900

 

(Add) / Less

 

 

i   Finance Costs

875.000

 

ii Other un-allocable expenditure

 

 

net of un-allocable income

124.400

 

Total Profit / (Loss) Before Tax

446.500

3

Capital Employed $

 

 

(Segment Assets-Segment Liabilities)

 

 

 

 

 

(a) Textiles

12768.600

 

(b) Cement

21753.700

 

( c ) Pulp and Paper

29651.300

 

(d) Others

6827.700

 

Total Capital Employed in Segments

71001.300

 

( e ) Unallocable assets less liabilities

(52575.300)

 

Total Capital Employed in the Company

18426.000

 

 

(a) Textiles includes Yarn, Cloth and Denim Cloth, Viscose Filament Yarn and Tyre Yarn

 

(b) "Cement" include Cement and Clinker

 

(c) Pulp and Paper Include Pulp, writing and Printing paper, Tissue paper, Multilayer packaging Board and Fibre line

 

(d) Other include Salt works, Chemicals Floriculture and Real Estate.

 

$ Includes projects under implementation

 

CENTURY TEXTILES AND INDUSTRIES LIMITED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE,

 

A.   PARTICULARS OF SHAREHOLDING

3 months

ended

 

30.06 2013

1   Public Shareholding

 

- Number of Shares

55170.100

- Percentage of Shareholding

59.29%

2  Promoters and promoter group Shareholding

 

a) Pledged / Encumbered

 

- Number of Shares

129940

- Percentage of Shares

035%

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

 

- Percentage of Shares

0 14%

( as a % of the total share capital of the company )

 

b) Non-encumbered

 

- Number of Shares

374.39440

- Percentage of Shares

99.65%

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

 

- Percentage of Shares

40.24%

( as a % of the total share capital of the company )

 

 

 

B  INVESTOR COMPLAINTS

3 Months ended 30.06.2013

Pending at the beginning of the Quarter

Nil

Received during the Quarter

10

Disposed of during the Quarter

10

Remaining unresolved al the end of the Quarter

Nil

 

NOTES

 

1) The above results have been reviewed and recommended for adoption by the Audit Committee to the Board of Directors and have been approved by the Board at its meeting held on 23rd July, 2G13 The Statutory Auditors have carried out a limited review of the above financial results.

 

2} The Competition Commission of India (CCI) had imposed a penalty of Rs 2740.200 Millions on the Company based on the complaint filed by the Builders Association of India alleging cartelisation by the Company along with other cement manufacturing companies Based on the legal opinion, the Company believes that it has a good case and has filed an appeal against the order before the Competition Appellate Tribunal (COMPAT). Accordingly no provision has been made in the accounts. During the quarter, the Company was asked to pay 10% of tr? penalty pending disposal of appeal by the COMPAT, which the Company has deposited by way of Fixed Deposit Receipt as per the directive of Honourable Supreme Court

 

3} As regards the grinding unit (Sonar Bangla Cement) with a capacity of 1 5 Million Tonnes p a. in West Bengal, out of the two cement mills, one cement mill having a capacity of 0,75 Million Tonnes p a had started commercial production in March, 2013 and the second cement mill has been commissioned in July, 2013

 

4) The results for the quarter ended 31st March. 2013 are derived figures arrived at by subtracting the results for the nine months ended on 31st December, 2012 from the audited results for the year ended 31st March, 2013.

 

5) Previous period's figures have been regrouped / recast wherever necessary

 

 

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

·         Electric Installations

·         Air-conditioning Plant

·         Improvement to Leased Premises

·         Floral Plantation – Roses

 

INTANGIBLE ASSETS

·         Computer software

 

 

AS PER WEBSITE DETAILS

 

News

 

CENTURY TEXTILES TO RAMP UP CEMENT CAPACITY BY FY14-END

 

BK Birla-led Century Textiles is ramping up cement-making capacity to 12.8 million tonnes per annum (mtpa) by FY14-end even as it described the present over-capacity situation as a major concern for the sector.

 

"The (Manikgarh Unit-II of 2.8 mtpa capacity) plant is expected to be operational by March, 2014. After expansion, the company's total cement manufacturing capacity will stand increased to 12.8 mtpa," Century Textiles said in its annual report.

 

The company has around 10 mtpa capacity now at its four existing plant locations in Chhattisgarh, Madya Pradesh, Maharashtra and West Bengal.

 

The Manikgarh plant in Maharashtra has 1.9 mtpa capacity now and following the completion of the brown-field expansion, it would go up to 4.7 mtpa.

 

The commissioning of the plant with extended capacity was supposed to be over by end of 2012-13. However, it got delayed due to delay in civil construction activities.

 

"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," it said.

 

Century Textiles has also decided to increase the planned captive power plant capacity of the plant to 60 MW from 40 MW earlier to suffice the needs of the facility even after the expansion.

 

"Environment clearance from the ministry of environment and forests for the 60 MW captive thermal power plant has been obtained," it said.

 

Meanwhile, the company said though the pace of capacity addition has slowed in recent times, surplus capacity is still a major concern. Lacklustre demand has caused a part of the existing capacity to remain idle.

 

India's installed cement-making capacity was over 340 mtpa against the target of 298 mtpa at the end of the terminal year of XIth Five Year Plan, resulting in surplus capacity. On the other hand, cement industry's growth rate fell from 10.5 percent in FY10 to 6.7 percent in FY12 and again to 5.5 percent in FY13 due to slowdown in the construction activity and deceleration in realty sector, the company said.

 

On October 15, 2013, at 12:16 hrs Century Textiles and Industries was quoting at Rs 258.00, down Rs 5.35, or 2.03 percent. The 52-week high of the share was Rs 470.00 and the 52-week low was Rs 195.05.

 

 The company's trailing 12-month (TTM) EPS was at Rs 0.08 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 3225. The latest book value of the company is Rs 193.99 per share. At current value, the price-to-book value of the company was 1.33.

 

 

CENTURY TEXTILES SEES EXPORTS UP 10% THIS FISCAL

 

The BK Birla-controlled Century Textiles said it expects a 10 percent rise in exports this fiscal, aided by the falling rupee.

 

"Pursuant to weak global demand, our exports have been impacted. But the weakening of the rupee will help us achieve a 10-percent increase this fiscal year," Century Textiles director Kumar Mangalam Birla said, addressing the company's shareholders at the 116th AGM.

 

He based his optimism on favourable raw material prices in the global markets and also the recovery in Western economies. "The textile sector is on a recovery path mainly due to favourable raw material prices as well as improved demand from the US and recovery in demand from Europe. Presumption of zero percent excise on readymade garments will also boost exports," Birla said, adding he expects the Indian economy to improve going forward.

 

Total exports of the company stood at Rs 4150.000 Millions in FY13 against Rs 3670.000 Millions in FY12.

 

"Economic problems faced by the developed countries have impacted developing economies, leading to a rise in inflation in these areas. While we witnessed a negative growth in exports, imports expanded mostly due to increase in imports of oil and gold. Negative growth in exports resulted in a sharp depreciation in rupee."

 

He further said the company is taking steps towards increasing its cement capacity. "Civil and structural work of the Manikgarh unit II, 2.8 mtpa cement expansion plant and 60 mw captive thermal power plant, adjacent to the existing unit in Chandrapur in Maharashtra, is expected to be completed by October. The plant is expected to be operational by next March," he said.

 

After expansion, the company's total cement capacity will increase to 12.8 mtpa, Birla added. Meanwhile, during the AGM, one shareholder, who had complaints about adoption of accounts and resolutions pertaining to payment of dividend, demanded a poll. The poll will be held on July 26.

 

On October 15, 2013, at 15:24 hrs Century Textiles and Industries was quoting at Rs 254.80, down Rs 8.55, or 3.25 percent. The 52-week high of the share was Rs 470.00 and the 52-week low was Rs 195.05. The company's trailing 12-month (TTM) EPS was at Rs 0.08 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 3185. The latest book value of the company is Rs 193.99 per share. At current value, the price-to-book value of the company was 1.31.

 

 

 

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. 61.69

UK Pound

1

Rs. 98.59

Euro

1

Rs. 83.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 

 

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

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

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

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NB

                                       New Business

 

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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.