MIRA INFORM REPORT

Report Date :

15.07.2014

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) :	31.03.2013
Date of Incorporation :	25.08.1947
Com. Reg. No.:	10-000410
Capital Investment / Paid-up Capital :	Rs.917.900 Millions
CIN No.: [Company Identification No.]	L17124MP1947PLC000410
TAN No.: [Tax Deduction & Collection Account No.]	BPLG00117F/ BPLG00021A/ BPLG01651G
PAN No.: [Permanent Account No.]	AAACG4464B
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The subject is continuously engaged in the process of energy conservation through improved operational and maintenance practices.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (74)

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 400000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a flagship company of the Aditya Birla Group. It is a well-established company having excellent track and ranks among India’s largest private sector companies. The company possesses a strong financial profile marked by comfortable capital structure and debt coverage indicators and robust liquidity position with healthy cash accruals and high financial flexibility. Trade relations are trustworthy. Business is active. Payment terms are reported as regular and as per commitments. In view of prominent parentage, the subject can be considered 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = AAA
Rating Explanation	Highest degree of safety and carry lowest credit risk.
Date	14.10.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A1+
Rating Explanation	Strong degree of safety and low credit risk.
Date	14.10.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

INFORMATION DENIED

Management Non Co-operative (91-22-24210182)

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, India Tel. No. 91-7366-246760-246766 Fax No. 91-7366-244114/246024 Harihar Polyfibres and Grasilene Division Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka, India 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, India 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, India 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: 31.03.2013

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. 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 :	Managing 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 :	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)
	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
	Textile Business
Name :	Mr. Thomas Varghese
Designation :	Chief Executive Officer
Name :	Mr. S. Krishnamoorthy
Designation :	President
Name :	Mr. Man Mohan Singh
Designation :	Unit Head (Grasim Bhiwani Textiles Limited)
	Corporate Finance Division
Name :	Mr. Pavan K. Jain
Designation :	Executive President
Name :	Mr. Hemant K. Kadel
Designation :	Executive President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 31.03.2014

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	133372	0.17
Bodies Corporate	23296096	29.65
Sub Total	23429468	29.82
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	23429468	29.82
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	5303383	6.75
Financial Institutions / Banks	79480	0.10
Insurance Companies	9384802	11.94
Foreign Institutional Investors	20967591	26.69
Sub Total	35735256	45.48
(2) Non-Institutions
Bodies Corporate	6905095	8.79
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	8462782	10.77
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	807406	1.03
Any Others (Specify)	3227721	4.11
Overseas Corporate Bodies	2622613	3.34
Non Resident Indians	605108	0.77
Sub Total	19403004	24.70
Total Public shareholding (B)	55138260	70.18
Total (A)+(B)	78567728	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	4802304	0.00
(2) Public	8456939	0.00
Sub Total	13259243	0.00
Total (A)+(B)+(C)	91826971	0.00

BUSINESS DETAILS

Line of Business :	The subject is continuously engaged in the process of energy conservation through improved operational and maintenance practices.
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
1. Viscose Staple Fibre/ Polynosic HWM/Hi Performance/ 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 licenses 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

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Available

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

31.03.2013

As on

31.03.2010

Long-Term Borrowings

Rupee Term Loans

9225.900

4413.700

Foreign Currency Loans

0.000

506.000

Short-Term Borrowings

Working Capital Borrowings

278.500

2.700

Foreign Currency Loans

723.400

564.700

Total

10227.800

5487.100

Nature of Security and Repayment Terms

	Particular	31.03.2013	31.03.2012
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	221.300	328.400
(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	337.500	1837.500
(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	0.000	7060.000
(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] - Repaid in March 2013	0.000	0.000
	- Repayable after 5 years, bullet repayment in April 2013	506.000	0.000
	Total Secured Borrowings (I)	1064.800	9225.900

Working Capital Borrowings are secured by hypothecation of stocks and book debts of the Company.

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:	· 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
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) · PT UltraTech Cement, Indonesia (w.e.f. 16th July, 2012) · Gotan Lime Stone Khanij Udyog Private Limited (w.e.f. 23rd July, 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) · Bhubaneswari Coal Mining Limited (w.e.f. 21st September, 2010) · A.V. Terrace Bay Inc., Canada (w.e.f. 12th July, 2012) · Aditya Group AB, Sweden (w.e.f. 1st October, 2012) (Note 2.12.5)
Associates :	· Aditya Birla Science and Technology Company Limited · Idea Cellular Limited · Aditya Group AB, Sweden (w.e.f. 30^th September, 2012)

CAPITAL STRUCTURE

As on: 31.03.2013

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
91776533	Equity Shares	Rs.10/- each	Rs.917.800 Millions
	Share Capital Suspense 14,879 (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.917.900 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	91724648
Issued during the year under Employee Stock Option Scheme	66764
Outstanding as at the end of the year	91791412

Aggregate number of Equity Shares allotted as fully paid-up out of Share Capital Suspense Account as aforesaid during the period of five years immediately preceding the reporting date (without payment being received in cash)

378

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

Particular	Number of Shares
Turquoise Investment and Finance Private Limited	5908341
Trapti Trading and Investments Private Limited	5477863
Life Insurance Corporation of India	5375364

Equity Shares of Rs.10 each represented by Global Depository Receipts (No voting rights)

12997155

Rights, Preferences and Restrictions attached to Equity Shares:

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

219,170 (219170) 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
Method of Accounting	Intrinsic Value
Graded Vesting Plan	25% every year, commencing one year from the date of grant
Normal Exercise Period	5 years from the date of vesting

* The Grant Price in respect of Tranche I and II was revised in the Financial Year 2010-11 as per the Scheme of Demerger of Cement Business.

Movement of Options Granted

Particular	Number of Options
Outstanding at the beginning of the year	219170
Granted during the year	--
Exercised during the year	66764
Lapsed during the year	--
Outstanding at the end of the year	152406
Options: Unvested at the end of the year	40176
Exercisable at the end of the year	112230

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	917.900	917.200
(b) Reserves & Surplus	100300.700	90076.700
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	101218.600	90993.900
(3) Non-Current Liabilities
(a) long-term borrowings	9809.200	5673.400
(b) Deferred tax liabilities (Net)	3439.100	2392.400
(c) Other long term liabilities	129.100	121.200
(d) long-term provisions	434.400	390.400
Total Non-current Liabilities (3)	13811.800	8577.400
(4) Current Liabilities
(a) Short term borrowings	1908.200	630.000
(b) Trade payables	3456.900	2950.500
(c) Other current liabilities	5396.500	2900.600
(d) Short-term provisions	4725.700	4308.300
Total Current Liabilities (4)	15487.300	10789.400
TOTAL	130517.700	110360.700
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	20702.500	15471.100
(ii) Intangible Assets	17.100	14.200
(iii) Capital work-in-progress	24250.900	4769.400
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	45188.100	44744.500
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4394.500	6142.700
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	94553.100	71141.900
(2) Current assets
(a) Current investments	17056.200	23552.900
(b) Inventories	7893.400	6309.100
(c) Trade receivables	5166.300	5092.300
(d) Cash and cash equivalents	162.700	110.200
(e) Short-term loans and advances	5420.100	3918.700
(f) Other current assets	265.900	235.600
Total Current Assets	35964.600	39218.800
TOTAL	130517.700	110360.700

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		917.200
2] Share Application Money		0.000
3] Reserves & Surplus		80320.700
4] Employee Stock Option Outstanding		99.500
5] (Accumulated Losses)		0.000
NETWORTH		81337.400
LOAN FUNDS
1] Secured Loans		5562.100
2] Unsecured Loans		2575.400
TOTAL BORROWING		8137.500
DEFERRED TAX LIABILITIES		2298.200
TOTAL		91773.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15418.100
Capital work-in-progress		1009.600
INVESTMENT		69102.500
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4216.500
	Sundry Debtors	4787.000
	Cash & Bank Balances	146.500
	Other Current Assets	22.000
	Loans & Advances	5363.800
Total Current Assets		14535.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2835.000
	Other Current Liabilities	873.700
	Provisions	4584.200
Total Current Liabilities		8292.900
Net Current Assets		6242.900
MISCELLANEOUS EXPENSES		0.000
TOTAL		91773.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	52550.100	49735.600	45170.400
		Interest and Dividend income	0.000	0.000	2519.100
		Other Income	4345.700	4634.600	1747.600
		TOTAL (A)	56895.800	54370.200	49437.100
Less	EXPENSES
		Cost of Materials Consumed	26094.100	24053.300
		Purchases of Stock-in-Trade	48.700	157.000
		Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	(265.600)	(1321.000)
		Employee Benefits Expense	3736.700	3317.600
		Power and Fuel	7143.300	6756.800
		Freight and Handling Expenses	829.900	679.900
		Other Expenses	4379.900	3734.100
		Captive Consumption	(298.700)	(225.600)
		Exceptional Item	(2044.300)	0.000
		TOTAL (B)	39624.000	37152.100	31266.300
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17271.800	17218.100	18170.800
Less	FINANCIAL EXPENSES (D)		390.900	358.200	455.900
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16880.900	16859.900	17714.900
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1592.100	1442.000	1762.900
	PROFIT BEFORE TAX (E-F) (G)		15288.800	15417.900	15952.000
Less	TAX (H)		3028.900	3647.900	4134.900
	PROFIT AFTER TAX (G-H) (I)		12259.900	11770.000	11817.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6623.400	7037.200	22190.700
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	10000.000	25000.000
		Corporate Dividend Tax	NA	120.200	136.600
		Proposed Dividend	NA	2063.600	1834.000
		Transfer to Debenture Redemption Reserve	NA	0.000	0.000
	BALANCE CARRIED TO THE B/S		NA	6623.400	7037.200
	EARNINGS IN FOREIGN CURRENCY
		Export Of Goods On FBO Basis	12631.400	11187.800	8250.700
		Technical Know-how and Service Charges	2.400	2.100	0.000
		Interest and Dividend	146.600	195.100	0.000
		Sale of Fixed Asset	52.700	0.000	0.000
		Others	11.700	19.300	24.600
	TOTAL EARNINGS		12844.800	11404.300	8275.300
	IMPORTS
		Raw Materials	11508.300	8364.200	7398.400
		Stores & Spares	180.100	162.700	65.800
		Capital Goods	6374.900	1668.400	246.500
	TOTAL IMPORTS		18063.300	10195.300	7710.700
	Earnings Per Share (Rs.)		133.62	128.33	128.86

QUARTERLY RESULTS

PARTICULARS	30.06.2013 1^st Quarter	30.09.2013 2^nd Quarter	31.12.2013 3^rd Quarter	31.03.2014 4^th Quarter
Audited / Unaudited	Unaudited	Unaudited	Unaudited	Unaudited
Net Sales	11630.700	14214.400	14701.400	15488.500
Total Expenditure	9465.300	11442.600	12613.000	13902.000
PBIDT (Excl OI)	2165.400	2771.800	2088.400	1586.500
Other Income	817.500	2053.500	348.400	629.700
Operating Profit	2982.900	4825.300	2436.800	2216.200
Interest	78.200	94.500	133.500	109.000
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	2904.700	4730.800	2303.300	2107.200
Depreciation	484.400	529.700	546.800	635.200
Profit Before Tax	2420.300	4201.100	1756.500	1472.000
Tax	159.000	66.000	495.600	169.400
Provisions and contingencies	0.000	0.000	0.000	0.000
Profit After Tax	2261.300	4135.100	1260.900	1302.600
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	2261.300	4135.100	1260.900	1302.600

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	21.55	21.65	23.90
Net Profit Margin (PBT/Sales)	(%)	29.09	30.99	35.32
Return on Total Assets (PBT/Total Assets}	(%)	25.03	25.33	53.26
Return on Investment (ROI) (PBT/Networth)		0.15	0.17	0.20
Debt Equity Ratio (Total Debt/Networth)		0.11	0.07	0.10
Current Ratio (Current Asset/Current Liability)		2.32	3.63	1.75

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions
Share Capital	917.200	917.900
Reserves & Surplus	90076.700	100300.700
Net worth	90993.900	101218.600
long-term borrowings	5673.400	9809.200
Short term borrowings	630.000	1908.200
Total borrowings	6303.400	11717.400
Debt/Equity ratio	0.069	0.116

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Total Income	49,437.100	54,370.200	56,895.800
		9.979	4.645

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Total Income	49,437.100	54,370.200	56,895.800
Profit	11,817.100	11,770.000	12,259.900
	23.90%	21.65%	21.55%

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	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

LITIGATION DETAILS:

IN THE HIGH COURT OF DELHI AT NEW DELHI

  LPA 137/2014 and CM No.2544/2014 (for stay)

  COMPETITION COMMISSION OF INDIA ..... Appellant

  Through: Mr. Balbir Singh and Mr. Abhishek Singh Baghel, Advs.


Versus



  M/S GRASIM INDUSTRIES LTD ..... Respondent

  Through: Mr. C.S. Vaidyanathan, Sr. Adv. with Mr. Ajit Warrier and Mr.
  Aditya Nayyar, Advs.

  CORAM:

   HON'BLE THE CHIEF JUSTICE

   HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW

   O R D E R

   08.07.2014



  Learned senior counsel for the respondent seeks adjournment.

  List on 28th July, 2014.





  CHIEF JUSTICE







   RAJIV SAHAI ENDLAW, J.

  JULY 08, 2014

  ?gsr?

  9$

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

Long-Term Borrowings

Deferred Sales Tax Loans

583.300

753.700

Short-Term Borrowings

Working Capital Borrowings

543.900

0.000

Foreign Currency Loans

250.000

0.000

Documentary Demand Bills/Usance Bills under

Letter of Credit Discounted

112.400

62.600

Total

1489.600

816.300

Nature of Security and Repayment Terms

Particular	31.03.2013	31.03.2012
(a) Deferred Sales Tax Loans
- Repayable in six annual installments starting from 31st May, 2012	108.900	435.700
- Repayable after ten years from the respective year in which the actual tax was collected, starting from 14th March, 2011	61.500	147.600
Total Unsecured Borrowings (II)	170.400	583.300

PRESS RELEASE

Grasim reports financial results for Q1 FY 2013-14

	Rs. In Millions
Consolidated net revenue	69400.000
PBIDT	15490.000
PAT	6100.000

Projects commissioned recently
Caustic Soda – Vilayat	18K TPA (May)
Cement Business – Clinker Plant Rawan	3.3 Mn. TPA (March)
Cement Business – Clinker Plant Malkhed	3.3 Mn. TPA (July)

VISCOSE STAPLE FIBRE

The production of VSF improved by 2% over the preceding quarter with completion of the expansion at Harihar plant.  The Kharach unit operated at lower capacity for 45 days as Govt. canal supplying water was under repair. However, the new reservoir at Nagda, and better planning at Harihar, ensured that there is no production loss.

Sales volume was 77,518 MT and Net Revenue stood at Rs.980 crore.  The VSF prices remained under pressure due to overcapacity in China.  The impact of the decline in prices was partly neutralized by depreciation of the Indian rupee.  On the cost front, the price of caustic and sulphur has eased. However, lower realisations resulted in a decline in profits.  

The pulp JVs have reported higher sales volumes. Pulp prices have improved sequentially.

CEMENT SUBSIDIARY (ULTRA TECH CEMENT)

The combined cement and clinker sales volume was 10.88 Mn. Tons. Net Revenue stood at Rs.5,294 crore. The quarter witnessed an increasing trend in logisitics and raw material cost, linked to increase in railway freight and diesel prices. The benefit of softening in prices of imported coal was partly offset by the depreciation of the rupee.

CHEMICAL BUSINESS

The Chemical business put in a satisfactory performance. With the commissioning of the Caustic Soda plant at Vilayat (Gujarat) in May 2013, sales volume increased by 9% to 72,028 MT. Volumes will further improve with the gradual ramp up of capacity. ECU realizations saw a correction from the peak level witnessed during FY 2013.

VSF AND CHEMICAL CAPEX

The green field projects of VSF (120,000 TPA) and Epoxy (51,000 TPA) at Vilayat are expected to go on stream in the 3rd quarter in a phased manner.

CEMENT CAPEX

The clinkerisation plant at Malkhed (Karnataka) of 3.30 Mn. TPA was commissioned during July 2013 in addition to that of Rawan (Chattisgarh) of 3.30 Mn. TPA in  March 2013. With this, the total clinker capacity stands increased to 45.10 Mn. TPA. This will contribute to the volumes in a phased manner.

Work on the 2.90 Mn. TPA brown field expansion at Shambhupura (Rajasthan), has commenced.

After the commissioning of all the projects (including cement grinding units) currently under implementation, Ultra Tech’s cement capacity will stand augmented to 64.45 Mn. TPA.

OUTLOOK
Given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry continues to face a challenging environment in the immediate term. In Cement, the demand is expected to grow by 6% in FY 2014 due to the slowdown in GDP growth rate. It has the potential to recover to over 8% with the improvement in the economic environment.

Capacity expansions in VSF and Cement will provide additional volumes, driving growth and further consolidate the Company’s leadership. This will enable the Company to move forward rapidly, with the recovery in the market.

The Company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest cost producer and expanding specialty products portfolio for sustained shareholder value creation.

Grasim reports better performance for financial year 2012-13

(Rs. In Millions)

Consolidated net revenue	279040.000
PBIDT	65430.000
PAT	27040.000

Projects commissioned
VSF – Harihar Phase II	18K TPA
Caustic – Vilayat	182K TPA
Cement – Rawan Clinkerisation	3.3 Mn. TPA
Hotgi Grinding Unit	1.55 Mn. TPA

VISCOSE STAPLE FIBRE (VSF)

Sluggishness in the global economy continued to impact the textile industry. Fibre prices remained volatile due to the surplus VSF capacity in China and high cotton inventory. Despite the difficult market conditions, sales volumes for the quarter at 95,161 tonens were maintained. Volumes during the year, however, grew by 9 per cent. Global VSF prices declined by 10 per cent on YoY basis. Though pulp cost eased with decline in imported pulp prices, higher caustic prices led to pressure on margins. The Chemical business, however, benefited from the increase in caustic prices.

The performance of the company’s pulp JVs was adversely affected due to fall in realizations.

CEMENT SUBSIDIARY (ULTRATECH CEMENT)

The combined cement and clinker sales for the quarter was 12.05 Mn. tonnes. Net revenue stood at Rs. 58190.000 millions (Rs.56500.000 millions), up by 3 per cent. Profit after Tax was Rs. 7530.000 millions (after providing for the additional deferred tax liability of Rs.870.000 millions) as compared to Rs. 8720.000 millions in Q4 FY 2011-12.

The quarter witnessed continuing pressure on input and logistics costs, given the increase in railway freight and hike in diesel prices though there was some relief on account of the softening in prices of imported coal.

CHEMICAL BUSINESS

The Chemical business continued to perform well. ECU realizations remained firm. Some improvement in chlorine prices was visible during the quarter. Both operating profit and margins, improved.

VSF AND CHEMICAL CAPEX

The brown field VSF expansion at Harihar (Karnataka), has been completed with the commissioning of Phase II (18,250 TPA) in May 2013.

The green field project of VSF (120,000 TPA) at Vilayat (Gujarat) is nearing completion and is expected to go on stream in the 2nd quarter. Chemical plant (182,500 TPA) started commercial production in May 2013. There will be a gradual ramp up in capacity in the first half of FY 2013-14.

Work on epoxy project (Vilayat) is progressing, and is likely to be commissioned in September 2013.

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

CEMENT CAPEX

UltraTech is implementing projects across many of its locations. Of these, the following projects have been commissioned during the quarter:

Clinkerisation plant at Rawan, Chhattisgarh	3.30 Mn. TPA
Grinding unit at Hotgi, Maharashtra	1.55 Mn. TPA
Increase in cement grinding capacity at Gujarat plant	0.60 Mn. TPA
Bulk terminal at Cochin, Kerala
Wall care putty plant at Katni, Madhya Pradesh

With the commissioning of these projects, the clinker capacity has increased to 41.80 Mn. TPA and that of cement to 53.90 Mn. TPA. The clinkerisation plant of 3.30 Mn. TPA in Karnataka is expected to go on stream in Q1 FY 2013-14.

UltraTech plans to expand its capacity at Aditya Cement Works in Rajasthan by 2.90 Mn. TPA including the setting up of two grinding units. The expansion envisages a capital outlay of Rs.20000.000 millions. The additional capacity is expected to be commissioned by March 2015.

With the commissioning of the existing projects under implementation and Aditya expansion, UltraTech’s cement capacity will stand augmented to 64.45 Mn. TPA.

OUTLOOK

Given the prevailing global economic conditions, coupled with the surplus capacity in China, the VSF industry is expected to remain under pressure in the short term. In Cement, the demand is expected to grow by an average 8 per cent in the long term 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. Cost pressures are easing off with the decline in global commodity prices, particularly energy. 

Capacity expansions in VSF and capacities under implementation / unutilised in cement will provide additional volumes, driving growth and further consolidation of the company’s leadership. The company will utilise these capacities at the earliest in the present difficult situation. The company will continue to focus on cost reduction measures, improving asset productivity to maintain its position as the lowest costs producer and expanding specialty products portfolio for sustained shareholder value creation.

Cement stocks rally on price hike, Citi prefers Grasim

Jun 05, 2014,

Moneycontrol Bureau Shares of cement stocks are rallying on price hikes ranging from 3-30 percent across most regions. According to Citi, monsoon, loss burden in South-based companies and production discipline may have been the reasons for the price hike. Stocks like Andhra Cement  , India Cements  ,  Heidelberg Cements  and  Dalmia Bharat  are gaining most in the sector. Here is how pricing looks like in different regions. After a correction in May, there was a price hike of Rs10/bag to Rs 300 in north India while Andhra Pradesh and Chennai saw an increase of Rs60/bag (to Rs 265) and around 14 percent (to Rs 330/bag) respectively. In the eastern part of India, prices are stable at Rs 340-350/bag over the last few months. Prices in Mumbai are largely unchanged (Rs 300/bag) since February but fall is expected during the monsoon. However, Citi adds that at the moment these are announcements and dealers are adopting a wait and watch stance to see if the hikes go through while discounts continue to prevail. “General indications point to a likely correction during the monsoon,” it said. According to the brokerage, cement stocks have rallied on hope but the market is now pricing in a very optimistic scenario even if demand recovers in line with the average. Citi maintains sell rating on UltraTech Cement but prefers  Grasim  on relative valuations.

Company Name	Last	% Chg
	Price
ACC	1431.05	0.57
Ambuja Cements	229.45	-0.07
Andhra Cement	10.87	4.82
Dalmia Bharat	406	2.36
Heidelberg Cem	66.65	4.3
India Cements	115.35	5.2
J. K. Cement	365.05	2.44
UltraTechCement	2570	-0.12

GRASIM INDUSTRIES RESTARTS OPERATIONS AT CHEMICAL PLANT AT VILAYAT, GUJARAT

Dec 26, 2013

With reference to the earlier announcement dated October 07, 2013 regarding operations of the Company's Chemical Plant were suspended due to unexpected floods affecting the plant/ power supply, Grasim Industries Ltd has now informed BSE that the operations of the Chemical Plant at Vilayat in Gujarat have resumed now. The Company have also commenced operations of the downstream Epoxy Plant at Vilayat.The full capacity at both the Plants will be achieved in a phased manner

GRASIM INDUSTRIES ALLOTS EQUITY SHARES

Capital Market April 30, 2014

Under ESOS

Grasim Industries announced that the Stakeholders' Relationship Committee of the Board of Directors of the Company has approved allotment of 623 equity shares of Rs 10/- each of the Company upon exercise of stock options under the Company's Employee Stock Option Scheme, 2006.

GRASIM INDUSTRIES SOARS 10% AMID RALLY IN CEMENT STOCKS

Cement stocks rallied on Monday on hopes that the new government's focus on infrastructure will translate into higher demand and lead to an absorption of the current overcapacity in the industry.

Four of top five Nifty gainers were cement stocks on Monday. As of 10.50 a.m. Grasim Industries led the index with 9.1 per cent gains followed by Ambuja Cements, ACC and Ultra Tech Cement, all of which traded over 5 per cent higher.

Neeraj Dewan, director at Quantum Securities told NDTV that cement is a play on economic and infrastructure recovery. Companies with capacity will gain advantage and there might be some more price hike going ahead. "There might be short term corrections, but investors should get decent gains over next 2-3 years," he added.

South India-based cement companies hiked cement prices by 3-30 per cent last week.

Cement demand, which grew at a compounded annual growth rate (CAGR) of 6 per cent over the last four years until fiscal 2014, has likely bottomed out, analysts say.

Asia Pacific focused brokerage CLSA maintained a buy on Grasim Industries with target price at Rs. 4,900 per share. The brokerage expects pick-up in cement business and says the stock is trading at excessive discount despite an improvement in outlook. Grasim is a conviction buy for CLSA.

Meanwhile, the Sensex and Nifty hit another record high today. The Sensex scaled the 25,600 mark, while the Nifty traded near the 7,650 levels.

GRASIM'S VALUATION GAP WITH ULTRATECH GIVES IT ROOM FOR APPRECIATION

The attractive gap in valuations of holding company Grasim Industries and its subsidiary, Ultra-Tech Cement, has caught the eye of investors. This resulted in a gain of more than 11 per cent in Grasim's share price on Monday, the highest single-day percentage gain over the past five years.

While UltraTech is valued at $195 per tonne, the implied valuation of Grasim stands at $110 per tonne, a discount of about 43 per cent for the value it has derived from UltraTech's cement assets.

Analysts believe that the expectation of improvement in cement utilisation from the current 70 per cent in the next 2-3 years will trigger another leg of rerating of cement stocks. This could possibly narrow down the valuation gap between Grasim and its 60 per cent-owned subsidiary UltraTech.

Goldman Sachs, in a report on cement industry on May 25, said, "We believe the current structure of Grasimwas created in June 2010 and was not there in the previous upcycle (FY04-08). Hence, the holding co history of the last four years is not reflective of the holding company discount that would prevail in an upcycle."

BE SELECTIVE IN CEMENT SPACE

CLSA UPGRADES GRASIM INDUSTRIES' TARGET PRICE TO RS 4,900; HOPES OF RISE IN SECTOR DEMAND, PRICES

Cement Stocks gained up to 12 per cent on Monday, led by hopes of a revival in demand amid firm prices. Aiding sentiment was a report by international brokerage CLSA that had raised the target of Grasim Industries to Rs 4,900 and termed it a conviction buy.

“Grasim’s cement (69 per cent of FY14 earnings before interest, tax, depreciation and amortisation, or Ebitda) should benefit from a pick–up in the sector utilisation rates driven by receding capacity surpluses, with an expected demand pick-up. This should drive strong earnings growth for its  subsidiary UltraTech Cement,” CLSA’s Vivek Maheshwari and Bhavesh Pravin Shah said.

“Margin pressure, with higher capex across key businesses pulled down Grasim’s return on equity to 10 per cent in FY14. The improvement in margins, with higher asset turns, should expand return ratios to 14 per cent over three years. With peak capex behind, we expect Grasim to generate rising free cash flow over FY16-17.” The upmove in cement stocks has been triggered by a price rise reported from south-based companies, which analysts say, can be sustained in case demand improves. Sunil Jain, vice-president – equity research at Nirmal Bang, says: “Capacity addition in the south will be lower compared to the others in two to three years. So if the demand picks up, excess capacity in the south will get absorbed, which will give some pricing power to players. Prices can sustain at these levels and move up.”

Demand dynamics

Analysts expect the weakness in sector growth to continue for six months. Kamlesh Bagmar at Prabhudas Lilladher says the growth bottomed out in FY14, with the demand growth being the lowest since FY02, below the gross domestic product growth.

“In demand, the worst is behind us, with the easing of the sand-mining ban, clarity over the political uncertainty in Andhra Pradesh, the second-largest consumer state, and pent-up demand likely to drive growth. We expect gradual recovery in demand in FY15, with 7.2 per cent compound annual growth over FY15E-17E,” says Ritesh Shah at Espirito Santo Secutities.

Investing strategy

Analysts say one needs to be selective while making a fresh commitment since most stocks have seen a healthy upside. A look at Bloomberg data show many stocks are near or above their one-year target prices. Shah of Espirito Santo Securities retains ‘buy’ on UltraTech and ‘neutral’ on Ambuja Cements. “We have downgraded ACC to ‘neutral’ and Shree Cement to ‘sell’ on expensive valuations. We revise downward our fair value (FV) for ACC due to continued weakness in south. We expect UltraTech to grow on a par with the sector and it remains our preferred pick in the large-cap space.” For Ambuja Cements, Piyush Jain at Morningstar India pegs its FV at Rs 262 a share. Sunil Jain prefers UltraTech, India Cements and Dalmia Bharat in this space.

GRASIM INDUSTRIES: CEMENT SECTOR

Grasim ventured into cement production in the mid-1980s, setting up its first cement plant at Jawad in Madhya Pradesh and since then has grown to become a leading cement company in India. In July 2004, Grasim acquired a majority stake and management control in UltraTech. One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group as one of the top cement manufacturers in India.

As a part of the restructuring process, the cement business has been consolidated with its subsidiary UltraTech Cement Limited. In the first phase, Grasim's cement business was demerged into Samruddhi Cement Limited, a subsidiary of Grasim. In the second phase, Samruddhi Cement Limited has been amalgamated with UltraTech Cement Limited w.e.f. 1 July 2010. The merger has created the largest cement company in India and has provided a platform for pursuing aggressive growth going forward. With a total capacity of 52 million tpa, UltraTech Cement is a leading player in the cement industry in India.

Grasim's subsidiary UltraTech Cement has 11 integrated plants, 15 grinding units, five bulk terminals and 101 ready mix concrete (RMC) plants – spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. All the plants are located close to sizeable limestone mines and are fully automated to ensure consistent quality. All units use state-of-the-art equipment and technology and are certified with ISO 9001 for quality systems and ISO 14001 for environment management systems.

UltraTech is a leading RMC manufacturer in India. UltraTech is also the largest producer of white cement in India, with a capacity of 560,000 tpa. Branded as Birla White, the white cement division manufactures world-class white cement in a variety of textures and finishes.

UltraTech is a voluntary member of the Cement Sustainability Initiative (CSI), which is the apex for the cement industry globally to establish common measures, share best practices and exchange data relating to environmental impact.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

In the Financial Year ending 31st March, 2013 (FY 2012-13), the global economy continued to show a dismal picture amidst a difficult fiscal situation in many of the advanced economies. Though the US economy saw some improvement, Japan and European Union slipped into recession, while growth in China declined. However, fear of collapse in European economy has subsided. Amidst the continued global uncertainty and slowdown, India’s GDP growth is estimated to have declined to ~5% in the FY 2012-13, its slowest pace in the last ten years arising out of the sharp slowdown in investment, weakening consumption and declining exports. Inflation remained high, given supply side bottlenecks limiting the scope of monetary easing. The sharp decline of the rupee during the first half of the FY 2012-13 further widened the current account deficit.

Though they have seen a difficult year, the global and domestic economic scenario is expected to improve marginally in the FY 2013-14. Policy actions in the US and EU have lowered the acute crisis risks. Monetary stimulus measures in advanced as well as emerging economies should help support growth. Even in India, the Government announced various policy reform measures during the year. This coupled with the expected reduction in interest rates, should aid the growth momentum going forward.

Overall, weak global and domestic conditions posed challenges for the Company’s businesses. Despite volume growth in VSF, prices remained weak due to surplus capacity in China, cotton surpluses and overall slowdown in textile industry. The Cement sector witnessed a slowdown in demand in the second half. On the positive side, weak global energy prices eased cost pressures to an extent in both businesses.

BUSINESS PERFORMANCE REVIEW

PERFORMANCE REVIEW

The FY 2012-13 has been an extremely challenging year for the VSF business. The slow recovery of the US economy, continued crisis in the Euro-zone and the slowdown in the Chinese economy, especially low exports of textiles, have put pressure on the overall global economy. These coupled with the steep fall in the prices of cotton and significant surplus VSF capacity in China, has adversely impacted the price of VSF. While the demand for VSF has been robust, the sharp drop in realisation and increase in input costs have impacted the margins significantly. A sharp decline in realisation in international markets was largely offset due to rupee depreciation and, therefore, realisations for the Company reduced by only 4% in comparison to last year.

Production increased by 5% as compared to last year with enhanced capacity at Harihar plant and reduction in the shutdown days at the Nagda plant through better water management. In difficult market conditions, sales volumes rose by 9%, with increased focus on export markets. A sharp depreciation of the rupee and steep increase in Caustic prices led to a substantial increase in input costs. Chemical business, however, benefitted from increase in caustic prices.

Despite better efficiency achieved in Pulp JVs, profitability was impaired due to lower pulp realisation. The performance of the Chinese VSF JV was also not optimal due to adverse market conditions. Initial losses at AV Terrace Bay amounting to Rs.602.000 millions (Company’s share), further affected the consolidated performance in the second half of the financial year.

During the year, an additional water reservoir was constructed at Nagda to create additional water storage capacity to meet water requirement during summers. This will help in ensuring uninterrupted plant operations at Nagda.

Capex plans of Rs.28260.000 millions are under implementation for the expansion projects and the normal capex, of which Rs.16700.000 millions has already been spent.

SECTOR OUTLOOK

In the near term, given the deceleration in global economy, the recovery of the textile sector is expected to be slow. The huge cotton reserves created by China and surplus capacities have led to uncertainty in VSF prices. These factors are likely to impact margins in the short term.

In the long term, with limitations for growth of cotton production due to competition with other cash crops, growing population, rising prosperity and increasing consumer awareness about the benefits of cellulosic fibre, VSF is well positioned to achieve a larger share of the global fibre pie.

BUSINESS OUTLOOK

The focus of the Company continues to be on specialty fibres. The Company plans to add significant capacity for specialty fibre at Vilayat as part of its efforts for market enlargement. The Business has intensified efforts to build a strong R and D set-up, which will enable it to launch new product offerings. Improving the overall operational efficiencies in these challenging times will enable it to protect margins. With additional capacity coming on stream in the first half of the FY 2013-14, the Company is well equipped to further consolidate its leadership position in the industry.

PERFORMANCE REVIEW

The Chemical business has reported an excellent performance. With plant operations at full capacity, the business achieved record production and sales volume. Caustic realisation remained firm throughout the year in line with global trend as industry capacity utilisation was affected due to low chlorine off take. As a result, ECU realisation was up by 13%. Operating profit at Rs.2450.000 millions rose by 52%.

SECTOR OUTLOOK

The demand growth momentum for Caustic is expected to be maintained, led by the Aluminium, Paper and Fibre industries. Globally, production of chlorine is slated to improve with recovery in the housing markets, which may result into increased caustic production and, hence, may lead to softening of caustic prices.

BUSINESS OUTLOOK

The 182,500 TPA expansions at Vilayat was commissioned in May 2013. There will be a gradual rampup in capacity, during the first half of the FY 2013-14. Volumes will grow significantly with the new capacity and the favourable demand outlook. The portfolio of Value Added Products is being enhanced continuously with the twin purpose of utilising chlorine and simultaneously adding value.

PERFORMANCE REVIEW

As a direct result of slowdown in GDP growth in India, the year was tough for the cement industry. The demand growth in industry has slowed down due to subdued off take from infrastructure and housing segment. Grey cement sales volume remained flat at the previous year levels.

During the year, prices remained volatile. Although the first half witnessed an improving trend, in the later part of the year prices declined. Domestic cement realisation was up by 9%, linked to improved demand in the first half of the year. The increase in logistic costs, input material and additives prices were passed on. Energy cost at Rs.989/ton remained flat. Imported coal prices were lower by around 20-25% in USD term; however, the benefit of such reduction was partially negated due to rupee depreciation. The Company constantly optimise the fuel-mix in kilns and power plants so as to reduce the use of high cost imported coal and maximise the use of low cost fuel, viz., pet coke, alternate fuel, etc. Pet coke consumption in kilns and power plants improved to ~35%. White Cement volume grew by 2% from 5.55 Lac Tons to 5.66 Lac Tons.

Ultra Tech’s turnover crossed the Rs. 200000.000 millions mark, up by 11% over the FY 2011-12. PBIDT increased by 13% from Rs. 45650.000 millions to Rs. 51430.000 millions.

The Competition Commission of India (CCI) had imposed a penalty of Rs.11754.900 millions on UltraTech for alleged contravention of the provisions of the Competition Act, along with 9 other cement companies. Based on the legal opinion, Ultra Tech has been advised that it has a good case and accordingly it has filed an appeal before the Competition Appellant Tribunal.

OUTLOOK FOR CEMENT BUSINESS

The growth prospects of the Cement industry are closely linked to the growth of the overall economy in general and the real estate, construction sector and infrastructure in particular. The housing sector consumes nearly two-thirds of the country’s total cement and is the most important cement driver. If the present slowdown in organised real estate persists for an extended period, it may impact the growth in consumption of cement.

The government’s focus on infrastructure development should boost cement demand. Higher infrastructure spending, robust growth in rural housing and expected decline in interest rates augur well for the cement industry and, therefore, the long-term drivers for cement demand remain intact.

FINANCIAL PERFORMANCE

The Company has reported improved performance for the year, achieving higher Revenue and PBIDT, despite the economic slowdown as reflected in decline in the Indian GDP growth to ~5%. The Company’s Revenue increased by 11% at Rs.279040.000 millions (Rs.252450.000 millions). PBIDT was up from Rs.63210.000 millions to Rs.65430.000 millions, a growth of 4%, led by improved volumes in the VSF business and cost optimisation. Net Profit was Rs.27040.000 millions as compared to Rs.26470.000 millions in the FY 2011-12.

The Company’s subsidiary, Ultra Tech, reported a net profit of Rs.26780.000 millions vis-à-vis Rs.24030.000 millions, reflecting a growth of 11%. The pressure on input and logistic cost continued, though there was some relief on account of the softening in prices of imported coal.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

(Rs. In Millions)

Particular	31.03.2013	31.03.2012
Claims/Disputed Liabilities not acknowledged as debt:
Custom Duty	20.700	37.000
Sales Tax/Purchase Tax/VAT	0.100	2.000
Excise Duty/Cenvat Credit/Service Tax	19.800	75.800
Water Cess	239.600	241.700
Various claims in respect of disputed liabilities of discontinued business in earlier year	700.000	700.000
Others	253.700	268.100
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	239.600	223.200
(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	62.100	53.400
(c) Claims arising from disputes of vendors/contractors	72.500	71.600
(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
Custom Duty (Net of Cenvat Credit) which may arise if obligation for exports is not fulfilled against import of raw materials and machinery	458.400	80.600
Letter of Undertaking-cum-Indemnity, Corporate Guarantees given to Bank/ Financial Institutions for finance provided to subsidiary and joint venture	--	2076.100
- Amount Outstanding against above	--	966.900

STATEMENT OF STANDALONE OF AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2014

(Rs. In Millions)

Particulars	Three Months Ended		Year Ended
	31.03.2014 (Audited)	31.12.2013 (Unaudited)	31.03.2014 (Audited)
Income from Operations
Net Sales / Income from Operations (Net of Excise Duty)	15283.500	14558.200	55386.100
Other Operating Income	205.000	143.200	648.900
Total Income from Operations (Net)	15488.500	14701.400	56035.000
Expenses
Cost of Materials Consumed	8286.000	7887.000	29826.100
Purchases of Stock-in-Trade	26.500	10.800	68.000
Changes [Decrease / (Increase)] in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	780.500	279.800	40.500
Employee Benefits Expense	819.500	963.800	3788.000
Power and Fuel Cost	2167.800	2060.700	8145.800
Freight and Handling Expenses	280.600	255.700	943.200
Depreciation and Amortization Expense	635.200	546.800	2196.100
Other Expenses	1541.100	1155.200	4610.100
Total Expenses	14537.200	13159.800	49617.800
Profit from Operations before Other Income, Finance Costs and Exceptional Item (1 - 2)	951.300	1541.600	6417.200
Other Income	629.700	348.400	3847.900
Profit from Ordinary Activities before Finance Costs and Exceptional Item (3 + 4)	1581.000	1890.000	10265.100
Finance Costs	109.000	133.500	415.200
Profit from Ordinary Activities after Finance Costs but before Exceptional Item (5 - 6)	1472.000	1756.500	9849.900
Exceptional Item (Refer Note 2)	--	--	--
Profit from Ordinary Activities before Tax (7 + 8)	1472.000	1756.500	9849.900
Tax Expense	169.400	495.600	890.000
Net Profit for the Period (9 - 10)	1302.600	1260.900	8959.900
Paid-up Equity Share Capital (Face Value Rs.10 per share)	91.84	91.84	91.84
Reserve excluding Revaluation Reserves			107357.400
Earning per share (of Rs.10/- each) (not annualized)
(a)Basic (Rs.)	14.18	13.73	97.58
(b)Diluted (Rs.)	14.18	13.73	97.54
PARTICULARS OF SHAREHOLDING
Public Shareholding *
- Number of Shares (000's)	55138	55010	55138
- Percentage of Shareholding	60.05	59.91	60.05
Promoters and Promoter Group Shareholding *
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)	23429	23429	23429
- 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	25.51	25.52	25.51
INVESTORS COMPLAINTS
Pending at the beginning of the Quarter	--
Received during the Quarter	5
Disposed of during the Quarter	5
Remaining unresolved at the end of the Quarter	--

AUDITED STANDALONE SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND YEAR ENDED 31.03.2014

(Rs. In Millions)

Particulars	Three Months Ended		Year Ended
	31.03.2014 (Audited)	31.12.2013 (Unaudited)	31.03.2014 (Audited)
1. SEGMENT REVENUE
Viscose Staple Fibre	12735.600	12500.200	47141.400
Chemicals - Caustic Soda and Allied Chemicals	3366.800	2597.300	10745.000
Others *	224.600	245.500	955.600
TOTAL	16327.000	15343.000	58842.000
(Less) : Inter Segment Revenue	(838.500)	(641.600)	(2807.000)
Total Operating Income	15488.500	14701.400	56035.000
2. SEGMENT RESULTS
Viscose Staple Fibre	892.200	1312.300	5739.600
Chemicals - Caustic Soda and Allied Chemicals	320.100	423.100	1605.700
Others *	5.800	5.800	18.100
TOTAL	1218.100	1741.200	7363.400
Add / (Less):
Finance Costs	(109.000)	(133.500)	(415.200)
Net Unallocable Income / (Expenditure )	362.900	148.800	2901.700
Profit from Ordinary Activities after Finance Costs but before Exceptional Item	1472.000	1756.500	9849.900
Exceptional Item (Refer Note 2)	--	--	--
Profit from Ordinary Activities before Tax	1472.000	1756.500	9849.900
3. CAPITAL EMPLOYED (Segment Assets - Segment Liabilities)
Viscose Staple Fibre	50434.600	49187.300	50434.600
Chemicals - Caustic Soda and Allied Chemicals	18882.500	18296.100	18882.500
Others *	278.500	282.300	278.500
TOTAL	69595.600	67765.700	69595.600
Add: Unallocated Corporate Capital Employed	56321.000	60838.100	56321.000
TOTAL CAPITAL EMPLOYED	125916.600	128603.800	125916.600

* Others represent mainly textiles

NOTES:

1. The figures for the quarter ended 31st March are the balancing figures between the audited figures in respect of the full financial year and published year to date figures upto third quarter of the relevant financial year.

2. The Financial Results were reviewed by the Audit Committee and approved by the Board of Directors on May 02, 2014.

3. Previous periods’ figures have been regrouped / rearranged wherever necessary to conform to the current periods’ classification.

4. Exceptional item of Rs. 2044.300 Millions appearing in the audited results for the year ended March 31, 2013 represents profit on sale of the long-term investments in Thai Carbon Black Public Company Limited, Thailand and Alexandria Carbon Black Co., S.A.E., Egypt.

5. Tax expenses for the quarter and year ended March 31, 2014 are net of provisions pertaining to earlier years’ write back amounting to Rs. 72.400 Millions and Rs. 290.900 Millions respectively.

6. During the quarter, the Company has allotted 6,279 fully paid up equity shares of Rs. 10 each upon exercise of employee stock options.

7. The Board of Directors has recommended a dividend of Rs.21 per share of face value of Rs. 10 each aggregating Rs. 2003.200 Millions (including corporate dividend tax).

STANDALONE STATEMENT OF ASSTES AND LIABILITIES AS ON 31.03.2014

Rs. In Millions

SOURCES OF FUNDS	31.03.2014
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	918.400
(b) Reserves & Surplus	107357.400
(c) Pending Call Money	0.000
Sub-total Shareholders’	108275.800
(2) Non-current liabilities
(a) long-term borrowings	10043.800
(b) Deferred Tax Liabilities	4620.000
(c) Other long-term liabilities	146.600
(d) Long-term Provisions	423.100
Sub-total of Non-Current liabilities	15233.500
(3) Current liabilities
(a) Short term borrowings	1271.600
(b) Trade payables	4513.900
(c) Other current liabilities	4819.800
(d) Short-term provisions	4661.900
Sub-total of Current liabilities	15267.200
TOTAL	138776.500
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	53551.900
(b) Non-Current investments	44201.000
(c) Deferred tax assets (net)	0.000
(d) Long term loans and advances	4786.000
(e) Other non-current assets	0.000
Sub-total of Non-Current Assets	102538.900
(2) Current assets
(a) Current investments	11835.400
(b) Inventories	12122.700
(c) Trade receivables	6137.900
(d) Cash and cash equivalents	263.000
(e) Short-term loans and advances	5514.900
(f) Other current assets	363.700
Sub-total of Current Assets	36237.600
TOTAL	138776.500

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10326687	07/01/2012	9,000,000,000.00	STATE BANK OF INDIA	Corporate Account Group Branch, Neville House, JN Heredia Marg, Mumbai, Maharashtra - 400001, INDIA	B29015542
2	10108132	18/05/2010 *	3,000,000,000.00	IDBI Bank Limited	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA	A86805397
3	80024425	15/12/2005	1,386,000,000.00	Industrial Development Bank of India Ltd.	IDBI Tower, WTC Complex, Cuffe Parade, Mumbai, Maharashtra - 400005, INDIA	-
4	80024325	18/05/2010 *	8,300,000,000.00	State Bank of India	Corporate Accounts Group, Voltas House, 23, JN Heredia Marg, Mumbai, Maharashtra - 400001, INDIA	A87144812

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 60.01
UK Pound	1	Rs. 102.72
Euro	1	Rs. 81.60

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		74

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.