MIRA INFORM REPORT

Report Date :

05.09.2014

IDENTIFICATION DETAILS

Name :	CENTURY TEXTILE AND INDUSTRIES LIMITED BIRLA CENTURY A DIVISION OF CENTURY TEXTILE AND INDUSTRIES LIMITED
Registered Office :	‘Century Bhavan’, Dr. Annie Besant Road, Worli, Mumbai – 400025, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
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.:	24210800333
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 and Exporting of Textiles including Yarn, Viscose Filament Yarn, Cement, Pulp and Paper and Others like Salt Works, Chemicals, Floriculture and Real Estate.
No. of Employees :	12950 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (62)

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established company having fine track record. The rating reflects the company’s well- established operations marked by profit achieved during financial year 2014, diversified business profile and sound general financial position of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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	06.08.2014
Rating Agency Name	CARE
Rating	Commercial paper issue: “A1+”
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	06.08.2014

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Nirav Sharaft
Designation :	Company Secretary
Contact No.:	91-22-22023936
Date :	26.06.2014

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 ambuj@birlacentury.com
Website :	http://www.centurytextind.com
Head Office:	CENTURY RAYON Industry House, 159, Churchgate Reclamation, Mumbai – 400020, Maharashtra, India Tel No.: 91-22-22027570 Fax No.: 9122-22853085
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 Tel No.: 91-7721-261222 – 6 Fax No.: 91-7721-261229 ¯ 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 31.03.2014

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

Name :	Mr. M. Vishwanath Lath
Designation :	Finance Manager
Name :	Mr. Nirav Sharaft
Designation :	Company Secretary
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)
Name :	Mr. Sanjay Khimesra
Designation :	Joint President (Works)
Name :	Mr. Pradeep Kher
Designation :	Vice President (Marketing)
Name :	Mr. Abhijit Bhatwadekar
Designation :	Vice President (Spinning)
Name :	Mr. Abhay K. Nahar
Designation :	Vice President (Finance)
Name :	Nilay Rathi
Designation :	Vice President (Commercial)
Name :	Mr. Atul K. Kedia
Designation :	Vice President (Legal and Secretarial)
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 :	Executive President (Engineering, Auxiliary and Instrument)
Name :	Mr. Subodh Dave
Designation :	Joint President (Personnel and Administration)
Name :	Mr. Apurva Gupta
Designation :	Joint President (Rayon)
Name :	Mr. Sudhir Luthra
Designation :	Joint President (Chemicals and Safety)
Name :	Mr. B. Manmohan
Designation :	Senior Vice President President (Finance)
Name :	Mr. Arun Jhawar
Designation :	Senior Vice President 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 :	Executive President (Plant)
Name :	Mr. A.K. Panja
Designation :	Executive President (Plant) - Sonar Bangla Cement
Name :	Mr. Satish Gurtoo
Designation :	Joint President (Electrical and Instrumentation)
Name :	Mr. Arun Gaur
Designation :	Joint President (Finance)
Name :	Mr. M.K. Jain
Designation :	Senior Vice President (Plant)
Name :	Mr. C.S. Vithalkar
Designation :	Senior Vice President (Mechanical)
Name :	Mr. A.K. Biswas
Designation :	Senior Vice President (Project)
Name :	Mr. A.K. Bajpai
Designation :	Senior Vice President (Marketing)
Name :	Mr. B. P. Mishra
Designation :	Vice President (Mines)
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 and Instrumentation)
UNIT II
Name :	Mr. R.S. Doshi
Designation :	Executive President (Commercial)
Name :	Mr. Ashok Maheshwari
Designation :	Joint President (Marketing)
Name :	Mr. P.K. Agarwal
Designation :	Joint President (Purchase)
Name :	Mr. A.S. Thakur
Designation :	Senior Vice President (Materials and Systems)
Name :	Mr. J. P. Pandey
Designation :	Senior Vice President (Mechanical)
Name :	Mr. S. K. Singh
Designation :	Senior 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. Deepak Jaisinghni
Designation :	Vice President (Mechanical)
Name :	Mr. P.K. Bajaj
Designation :	Vice President (Commercial)
UNIT II
Name :	Mr. J. L. Tiwari
Designation :	Senior Executive President (Plant)
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. 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 30.06.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	207970	0.22
Bodies Corporate	37228170	40.14
Sub Total	37436140	40.36
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	37436140	40.36
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7004958	7.55
Financial Institutions / Banks	3567888	3.85
Central Government / State Government(s)	2591	0.00
Insurance Companies	1941871	2.09
Foreign Institutional Investors	9125826	9.84
Sub Total	21643134	23.34
(2) Non-Institutions
Bodies Corporate	11596949	12.50
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	13715921	14.79
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	6876266	7.41
Any Others (Specify)	1480070	1.60
Clearing Members	533194	0.57
Non Resident Indians	474620	0.51
Overseas Corporate Bodies	365820	0.39
Trusts	105806	0.11
Foreign Nationals	350	0.00
Directors & their Relatives & Friends	280	0.00
Sub Total	33669206	36.30
Total Public shareholding (B)	55312340	59.64
Total (A)+(B)	92748480	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	297200	0.00
Sub Total	297200	0.00
Total (A)+(B)+(C)	93045680	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Exporting of Textiles including Yarn, Viscose Filament Yarn, Cement, Pulp and Paper and Others like Salt Works, Chemicals, Floriculture and Real Estate.

Products :

Item Code No. (ITC Code)	Product Description
252329	Other Grey Portland Cement
480200	Paper
540332	Viscose Filament Yarn

GENERAL INFORMATION

No. of Employees :

12950 (Approximately)

Bankers :

¨ State Bank of India, Corporate Account Group II, The Capital, A- Wing, 16^th Floor, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India

¨ Bank of Baroda

¨ State Bank of Hyderabad

¨ Allahabad Bank

¨ Union Bank of India

¨ IDBI Bank

¨ Dena Bank

¨ Syndicate Bank

¨ State Bank of Tranvancore

¨ Indusind Bank

¨ State Bank of Mysore

¨ ICICI Bank

¨ Development Credit Bank

¨ State Bank of Patiala

¨ State Bank of Bikaner and Jaipur

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Non-Convertible Debentures	9000.000	5000.000
Term loans from bank	18104.200	26481.500
SHORT TERM BORROWINGS
Loans repayable on demand from banks
Working capital loans from banks	5961.400	7575.600
Pre-shipment, Post-shipment and Export Bills Discounting facilities	859.900	453.100
Total	33925.500	39510.200

NOTE:

SHORT TERM BORROWINGS

Nature of Security

(i) Working capital loans from banks are secured against a first and pari passu charge over the Current Assets (including documents of title to goods/related receivables), second pari passu charge over the entire fixed assets, present and future, of the Company’s 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 and building of Birla Century and Pulp and Paper divisions, Sonar Bangla Cement and land and buildings of Maihar Unit I and II, 1.35 acres out of the 544 acres situated at Cement Plant at Raipur and furniture and fixtures, vehicle and other miscellaneous assets of all the above divisions are excluded).

The charge created as per para (i) also extends to the guarantees given by the banks on behalf of the Company, aggregating Rs. 2409.700 millions (31.03.2013 Rs.1290.600 millions.)

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	Mumbai, Maharashtra, India
Related Parties :	¨ Pilani Investment and Industries Corporation Limited ¨ Kesoram Insurance Broking Services Limited ¨ Vasavadatta Services Limited ¨ Industry House Limited ¨ Bander Coal Company Private Limited ¨ Century Enka Limited ¨ Kesoram Industries Limited ¨ Jayshree Tea and Industries Limited

CAPITAL STRUCTURE

As on 31.03.2014

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	31.03.2014
	Number	Percentage
Pilani Investment and Industries Corporation Limited	34220520	36.78%
HDFC Trustee Company Limited	--	--

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	930.400	930.400	930.400
(b) Reserves & Surplus	16543.600	17119.100	18058.800
(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)	17474.000	18049.500	18989.200
(3) Non-Current Liabilities
(a) long-term borrowings	28104.200	31481.500	19771.000
(b) Deferred tax liabilities (Net)	2667.900	2429.200	2627.400
(c) Other long term liabilities	2355.600	1912.100	200.800
(d) long-term provisions	4055.600	3633.200	3195.900
Total Non-current Liabilities (3)	37183.300	39456.000	25795.100
(4) Current Liabilities
(a) Short term borrowings	16592.800	12125.000	14448.000
(b) Trade payables	5035.300	3595.800	3075.500
(c) Other current liabilities	15702.900	8366.400	9688.300
(d) Short-term provisions	927.300	1024.000	925.000
Total Current Liabilities (4)	38258.300	25111.200	28136.800
TOTAL	92915.600	82616.700	72921.100
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	43760.800	42292.800	41039.900
(ii) Intangible Assets	35.800	31.100	34.800
(iii) Capital work-in-progress	22286.600	17107.600	11119.200
(iv) Intangible assets under development	0.000	4.800	17.300
(b) Non-current Investments	936.200	737.800	692.800
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	2622.600	2917.000	2880.300
(e) Other Non-current assets	659.700	196.400	166.900
Total Non-Current Assets	70301.700	63287.500	55951.200
(2) Current assets
(a) Current investments	5.600	0.000	20.700
(b) Inventories	13004.400	12037.900	10952.400
(c) Trade receivables	5257.900	4080.100	3334.500
(d) Cash and cash equivalents	728.800	534.900	500.900
(e) Short-term loans and advances	3193.600	2377.600	1988.600
(f) Other current assets	423.600	298.700	172.800
Total Current Assets	22613.900	19329.200	16969.900
TOTAL	92915.600	82616.700	72921.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	66659.200	59494.700	48727.800
		Other Income	282.600	269.000	271.800
		TOTAL	66941.800	59763.700	48999.600
Less	EXPENSES
		Cost of Materials Consumed	23945.000	20256.400	15687.800
		Purchases of Stock-in-Trade	49.600	182.900	375.800
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	104.200	(565.400)	(431.500)
		Employees benefits expense	5014.800	4928.900	4247.200
		Expenditure transferred to capital account	(81.500)	(166.000)	(192.300)
		Other expenses	30455.500	29080.000	24785.100
		TOTAL	59487.600	53716.800	44472.100
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		7454.200	6046.900	4527.500
Less	FINANCIAL EXPENSES		3628.000	3199.500	1720.800
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		3826.200	2847.400	2806.700
Less/ Add	DEPRECIATION/ AMORTISATION		3546.200	3559.500	2581.200
	PROFIT/ (LOSS) BEFORE TAX		280.000	(712.100)	225.500
Less	TAX		252.800	(367.200)	4.200
	PROFIT/ (LOSS) AFTER TAX		27.200	(344.900)	221.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1975.800	2915.500	3359.000
Less	APPROPRIATIONS
		Proposed Equity Dividend	511.800	511.800	511.800
		Tax on proposed equity dividend	90.900	83.000	83.000
		General Reserve	3.200	0.000	70.000
		Debenture Redemption Reserve	24.000
	BALANCE CARRIED TO THE B/S		1373.100	1975.800	2915.500
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. value of exports	4383.400	3220.300	2960.800
		Dividend	0.900	0.700	1.000
		Others	0.000	1.000	6.400
	TOTAL EARNINGS		4384.300	3222.000	2968.200
	IMPORTS
		Raw Materials	4083.400	2788.700	2539.700
		Stores & Spares	742.000	457.200	423.400
		Capital Goods	373.100	1161.300	1039.100
	TOTAL IMPORTS		5198.500	4407.200	4002.200
	Earnings / (Loss) Per Share (Rs.)		0.29	(3.71)	2.38

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.04	(0.58)	0.45
Net Profit Margin (PBT/Sales)	(%)	0.42	(1.20)	0.46
Return on Total Assets (PBT/Total Assets}	(%)	0.40	(1.10)	0.37
Return on Investment (ROI) (PBT/Networth)		0.02	(0.04)	0.01
Debt Equity Ratio (Total Debt/Networth)		2.56	2.42	1.80
Current Ratio (Current Asset/Current Liability)		0.59	0.77	0.60

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	930.400	930.400	930.400
Reserves & Surplus	18058.800	17119.100	16543.600
Net worth	18989.200	18049.500	17474.000
long-term borrowings	19771.000	31481.500	28104.200
Short term borrowings	14448.000	12125.000	16592.800
Total borrowings	34219.000	43606.500	44697.000
Debt/Equity ratio	1.802	2.416	2.558

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	48727.800	59494.700	66659.200
		22.096	12.042

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	48727.800	59494.700	66659.200
Profit	221.300	(344.900)	27.200
	0.45%	(0.58%)	0.04%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

Presentation Date: 12.02.2014

Lodging No: ITXAL/360/2014 Filing Date: 12.02.2014 Reg. No.:- ITXA/1072/2014 Reg. Date:- 01.07.2014

Petitioner: THE COMMISSIONER OF INCOME TAX- 6 Respondent: CENTURY TEXTILE AND

INDUSTRIES LIMITED

Petn. Adv : SHEHNAZ (SHEROO) VISPY BHARUCHA Resp. Adv.: PANKAJ RANJIT TOPRANI (I5270)

District: MUMBAI

Bench: SINGLE

Status: Pre-Admission Category: TAX APPEALS

Last Date: 24/09/2014 Stage: FOR DIRECTOR

Last Coram: ACCORDING TO SITTING LIST

ACCORDING TO SITTING LIST

Act: Income Tax Act, 1961 UNDER SECTION: 260 A

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Non-Convertible Debentures	1000.000	0.000
SHORT TERM BORROWINGS
Fixed Deposits	418.700	601.100
Under a buyer’s credit arrangement in foreign currency	2102.800	2995.200
Rupee Loans	500.000	500.000
Commercial Paper	6750.00	0.000
Total	10771.500	4096.300

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10486213	24/03/2014	500,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP II BRANCH, "THE CAPITAL" A WING ,16TH FLOOR B.K.C., MUMBAI, Maharashtra - 400051, INDIA	C00946418
2	10486380	24/03/2014	2,940,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP II BRANCH, "THE CAPITAL" A WING ,16TH FLOOR B.K.C., MUMBAI, Maharashtra - 400051, INDIA	C00997528
3	10486338	12/03/2014	4,000,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE,, COLABA, MUMBAI, Maharashtra - 400005, INDIA	C00731059
4	10456590	25/10/2013	3,000,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP II BRANCH, "THE CAPITAL" A WING ,16TH FLOOR B.K.C., MUMBAI, Maharashtra - 400051, INDIA	B88167440
5	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
6	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
7	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
8	10395553	26/12/2012 *	1,250,000,000.00	INDUSIND BANK LTD.	2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, Maharashtra - 411001, INDIA	B65705212
9	10360939	05/07/2012 *	3,500,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP BRANCH, NEVILLE HOUSE J. N. HEREDIA MARGE BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA	B43992361
10	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
11	10348102	10/04/2012 *	4,000,000,000.00	INDUSIND BANK LTD.	2401 GEN THIMMAYYA ROAD, CONTONMENT, PUNE, Maharashtra - 411001, INDIA	B37180239
12	10339007	10/04/2012 *	4,000,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA	B36662880
13	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
14	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
15	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
16	10225179	23/12/2010 *	72,400,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP, NEVILLE HOUSE J.N. HERE DIA MARG, BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA	B03430931
17	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
18	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
19	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
20	10073621	19/09/2007	5,296,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP, 23, J.N. HEREDIA MARG , BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA	A25881210
21	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
22	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
23	10040820	26/02/2007	2,250,000,000.00	STATE BANK OF INDIA	CORPORATE ACCOUNTS GROUP, 23, J.N. HEREDIA MARG , BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA	A11774015
24	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
25	10009471	26/06/2006	310,000,000.00	STATE BANK OF PATIALA	ATLANTA 1ST FLOOR, JAMNALAL BAJAJ MARG, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA	A02278877
26	90240991	26/09/2005 *	2,180,000,000.00	STATE BANK OF INDIA	STATE BANK BHAVAN, MADAM CAMA RAOD, MUMBAI, Maharashtra - 400021, INDIA	-
27	90214879	06/12/2013 *	19,000,000,000.00	State Bank of India	CORPORATE ACCOUNT GROUP II BRANCH, "THE CAPITAL" A WING 16TH FLOOR B.K.C. MUMBAI, Maharashtra - 400051, INDIA	B92093137
28	90215984	10/04/1996 *	836,600,000.00	THE BANK OF NOVA SCOTIA ASIA LTD.	10; COLLYER QUAY, 15-01/04; OCEAN BUILDING, SINGA PORE, , SINGAPORE	-
29	90212751	12/10/1995	39,000,000.00	ALLAHABAD BANK.	RED CROSS PLACE BRANCH, RED CROSS PLACE, CALCUTTA, West Bengal - 700001, INDIA	-
30	90212691	03/07/1995	50,000,000.00	STANDARD CHARTERED BANK	4, N.S. ROAD, CALCUTTA, West Bengal - 700001, INDIA	-
31	90212638	18/09/1995 *	30,500,000.00	THE BANK OF RAJASTHAN LTD.	31, CHOWRINGHEE ROAD, CALCUTTA, West Bengal - 700016, INDIA	-
32	90214545	09/12/1996 *	427,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 24; PARK STREET, CALCUTTA, Wes t Bengal - 700016, INDIA	-
33	90212428	08/12/1993	100,000,000.00	ANZ GRINDLAYS BANK PLC.	90, MAHATMA GANDHI ROAD, BOMBAY, Maharashtra - 400023, INDIA	-

* Date of charge modification

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERALL REVIEW:

In spite of the adverse market conditions prevailing in various businesses in which the Company operates, the overall performance of the Company during the year has marginally improved compared to that of the previous year. The global economic outlook remained uncertain and challenging with a growth of about three per cent in 2013. There were many reasons for this sluggishness including weak recovery in the US and Europe and a general economic slowdown in emerging economies like China and India.

During much of 2013-14, there was no turnaround in the domestic economy in either consumption or investment as was reflected by the downward trend in both the capital and consumer goods segments. The high borrowing cost to combat inflation, coupled with lower consumption, low investment in infrastructure and other sectors of the economy were responsible for this, although agriculture and allied businesses had shown some improvement. Foreign Institutional Investors (FIIs) were record buyers of Indian debt instruments in the quarter ended March 2014, reflecting increased confidence in India’s long-term economic prospects although growth is yet to show any definite signs of emerging from a slump. The Rupee has recently strengthened against the US Dollar which might adversely affect exports from India.

It is expected that the economy should grow in the coming years and the demand for and prices of cement, paper and textile products should improve which will enable the Company to regain steady or better 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:

Raw material costs have been increasing globally, coupled with a shortage of skilled workers. While a shift is taking place of textiles industries from China and Bangladesh to India, the industrial climate in India has also become adverse due to regular increases in input costs. Any further appreciation of the Rupee will adversely affect exports from India. Though the spinning industry has fared somewhat better those with a presence in weaving, processing or even composite businesses are facing the heat due to increases in input cost without being able to pass on such higher costs to customers as the market is simply unable to absorb the same.

SEGMENTAL REVIEW AND ANALYSIS:

The financial performance of their textile unit known as ‘Birla Century’ has stabilized and is showing improvements

including in capacity utilization. As a result, the sales at Birla Century have improved aided by increasing demand in the domestic and U.S. Markets. The demand for premium branded goods is healthier and they are concentrating on high priced premium goods. The performance of the yarn Division remained fairly stable. Since April, 2014, the yarn market is depressed but it is hoped that it should improve in the current year. The market for denim is depressed. They have, therefore, changed the product pattern based on cotton lycra denim fabric which is in demand and which customers have been seen to prefer in adverse market conditions. Considering the challenges that exist, the financial results of this division are satisfactory.

OUTLOOK:

Their textile unit has in the current year found acceptance by major retail chain stores in the US for all the products

which also has the added beneficial effects of strengthening the quality / design and innovations in the product. 2014- 2015 may see better performance in India and possibly a stronger performing world economy.

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 Viscose Filament Yarn (VFY) declined after September 2013 leading to a continuous increase in inventories both at the unit and industry levels. Appreciation of the Rupee recently against the US Dollar has reduced landed cost of material from China thus putting additional pressure on the industry to re-adjust its prices. A demand-supply imbalance coupled with a subdued market for the fabric had also adversely impacted the consumption of VFY.

Consumption of PSY as well as CSY is gradually shifting from coarser denier to super fine deniers which invites increased imports from China. Available capacity in the industry to cater to the changing pattern of demand is inadequate and it is expected that imports will continue to dominate despite the levy of an anti dumping duty.

New pollution control norms proposed to be introduced by the Government will increase the operating cost further. Consumption of Rayon Tyre Yarn, mainly used abroad as reinforcement material in Ultra High Performance (UHP) Passenger Car Tyres has grown both in Europe and Japan, and this helped the unit to increase capacity utilization to about 80%.

Chemical products had witnessed mixed fortunes as prices of Caustic Soda, CS2 and Hydrogen remained stable while those of Sulphuric Acid and Chlorine remained volatile thus adversely affecting the operating margins of the unit.

SEGMENTAL REVIEW AND ANALYSIS:

It is expected that the existing trend of excess supply affecting sales volumes as well as prices will continue for some time. Focused measures taken by the management to control cost of raw material, power and utilities have helped the unit to maintain its performance at a satisfactory level.

The recent strengthening of the Rupee against the U.S. Dollar and a simultaneous weakening of the Chinese Yuan would erode competitiveness of Indian viscose filament yarn producers in both Indian and global markets.

Capacity utilization in tyre cord is expected to be sustained at the level of 80% which has been achieved.

The market for their chemical products viz. Caustic Lye and Sulphuric Acid is expected to remain stable. However, sales of Carbon-di-sulphide may come under pressure due to additional capacities entering the market.

Demand for doubled and twisted yarn is now met by Chinese material and production from the unorganized sector. The unit is at advanced stage of introducing this product.

OUTLOOK:

Due to augmentation of production, both in PSY and CSY to cater to the growing demand for super- fine denier and efforts undertaken by the unit in reducing the cost of raw material, power and other utilities, the performance of the unit ought to remain satisfactory. Increased capacity utilization would help to reduce cost and gain more orders.

BUSINESS SEGMENT – CEMENT (CEMENT AND CLINKER)

INDUSTRY STRUCTURE AND DEVELOPMENT:

The Indian cement industry has an installed capacity of about 360 million tonnes. The Industry grew by an average annual growth rate of 8.6% during the golden period of 3 years (2007-08 to 2009-10). With the withdrawal of stimulus packages coupled with a slowdown in construction activity, the average annual growth has come down to 6.3% during the last three years. During 2013-14, cement production in India was 255.63 million tonnes (248.23 million tonnes in 2012-13) witnessing a growth of 2.98%. GDP growth in the year 2013-14 is expected to come out at 4.5% to 5%. The multiplier of cement demand growth to GDP growth not only declined below one but also lost its relevance. Lower growth was due to several reasons – a prolonged monsoon, natural calamities (floods and cyclones) that hit many parts of India and poor demand due to high cost of borrowings, low investment in the infrastructure and commercial segments. Over the past few years, the Production capacity industry-wide has also increased substantially, thus resulting in a situation of over-capacity and consequently lowering capacity utilization. Demand is anticipated to revive gradually over 2014 and 2015 with the formation of a new government and recovery in industry generally and particularly in construction activity. The cement industry faced many intricate issues like -rising cost, non-availability of linkage coal, high interest rates and clearances under various statutes. An overall weak macro environment and ban on sand mining continued to be causes for worry.

SEGMENTAL REVIEW AND ANALYSIS:

During the year 2013-14, they have produced 81.67 lac tonnes of cement compared to 76.51 lac tonnes in the previous year, a growth of 6.74%. In line with the Company’s plans and practices, the focus on production of fly ash based cement was maintained. The production of blended cement constituted about 96% of the Company’s total cement production. Energy is one of the major costs of production in this industry. Continuous efforts are being made to increase productivity, control cost and improve quality. Costs of major raw materials-fly ash, power and fuel, freight and forwarding and packing bags have increased during the year.

The Company continues to develop and leverage its large and able network of stockists, dealers and retailers. Their reach and penetration helps the Company in core rural and semi-urban markets. This coupled with the strong brand equity and efficient channel management has significantly helped the Company to withstand severe competition in an over supplied market.

OUTLOOK:

The GDP growth is expected to remain soft in the first quarter of financial year 2014-15. It is expected that Indian economy will grow at around 5-6% during 2014-15 driven by India’s strong economic fundamentals, high saving and investment rates, rapid workforce growth, a quickly expanding middle class and the start of a shift from low productivity agriculture to high productivity manufacturing and accordingly cement demand and prices should show an improvement.

The mid-term outlook will possibly remain challenging though there are reasons to hope that growth will tend more towards 6% after 2014-15. It is expected that capacity utilization will improve gradually given the slowdown in capacity addition and gradual recovery of demand for cement. Economy reforms announcements including the much hoped for lowering of interest rates would boost sentiment and rejuvenate the economy.

The cement industry is looking for an up-cycle backed by an increase in rural consumption and recovery in infrastructure activity after a muted growth for last three years. Long term growth prospects for cement demand are favourable.

BUSINESS SEGMENT –PULP AND PAPER (PULP, WRITING AND PRINTING PAPER, TISSUE PAPER AND MULTILAYER PACKAGING BOARD)

INDUSTRY STRUCTURE AND DEVELOPMENT:

Century Pulp and Paper is the only unit that produces the complete range of paper and paper products whilst using all the possible raw material options i.e. wood, agro and recycle paper.

India’s paper industry is one of the oldest and core industrial manufacturing sectors with a bearing on socio-economic development, which has undergone a significant change during the last decade. The changing policy of the government has propelled this sector to integrated international markets. Further, apart from rising production and consumption, erstwhile import dependent India has achieved self-sufficiency and also has witnessed an increase in exports. The nature of India’s Paper industry has been considerably influenced by the changing policies of the government during the last three decades.

SEGMENTAL REVIEW AND ANALYSIS:

Demand for paper products during the first half of 2013 - 14 was quite satisfactory and healthy. However from December 2013 onwards, demand started to contract and subsequently prices too came under pressure. In Q3 of last year, the industry has seen a price rise of around 7 - 8% which has helped recoup raw material costs to some extent. While raw material costs have been increasing, the selling prices could not be increased to offset entirely the rising costs which resulted in an adverse financial performance.

During 2013-14, Century Pulp and Paper has opened up 11 new markets for paper boards viz., Poland, Sri Lanka Greece, Italy, Russia, UK, Slovenia, Canada, Turkey, Ukraine and Iran.

OUTLOOK:

In the long term, the outlook for the industry is quite positive and encouraging.

AWARDS

Various Divisions of the Company have received notable awards as mentioned below:-

(a) Rayon, Tyre Cord and Chemicals:

¨ Century Rayon was felicitated by OEKO-TEX Association of STeP (Sustainable Textiles Production) at Frankfurt in Germany for its outstandin achievements with regard to human-ecologically optimised textiles and sustainable production.

¨ Two Quality Circles participated in National Convention of Quality Circles at Kolkata and won the Par Excellence Award (the highest recognition).

¨ Two Quality Circles participated in the Maharashtra Convention for Best Quality Circles at Aurangabad and won the Diamond Award (the highest recognition).

¨ Seven Quality Circles participated in the Chapter Convention on Quality Concept held at Mumbai. Six quality circles won the Gold Award and one Circle the Silver Award.

(b) Century Cement:

¨ First prize for “Innovative Practices and Technology Adopted” and “Compliance of Recommendation of 10th Safety Conference” for the limestone mines from the Directorate General of Mines Safety, Bilaspur Region.

¨ First prize for “Top Soil Management” for the limestone mines from the Indian Bureau of Mines, Nagpur Region.

(c) Maihar Cement:

¨ First prize for “Standard of Working” and “Welfare Amenities and Injury Rate Performance” for the limestone mines from the Directorate General of Mines Safety, Jabalpur Region.

¨ First prize in “Noise, Vibration and Aesthetic Beauty” and “Afforestation” for the limestone mines from the Indian Bureau of Mines, Jabalpur Region.

(d) Manikgarh Cement:

¨ First prize in the “Overall Best Performance” and “Provision of Safety Equipments and Statutory Survey Plans and Equipments” for its limestone mines from the Directorate General of Mines Safety, Western Zone, Nagpur Region I and II.

¨ First prize in the “Afforestation and Noise Vibration Control and Aesthetic Beauty” for its limestone mines from the Indian Bureau of Mines, Nagpur Region.

¨ Units Akshaya Quality Circle and Electron Quality Circle, both have won Gold Awards in the “24th Chapter Level Convention and Competition on Quality Circles” held at Nagpur in September, 2013 on the case studies “Frequent stoppage of Cement Mill No.3 due to tripping of Belt Conveyors 1 and 2 belts” and “Undetected breaking of Raw mill hydro pneumatic cylinder rocker arm spring rod” respectively.

¨ At “Quality Progress-2014” organized by “The Institution of Engineers (India)” at Nagpur in February, 2014 unit’s Electron Quality Circle team has won the Gold Award and Akshaya Quality Circle team has won Par Excellence Award.

CONTINGENT LIABILITIES:

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
(a) (i) Claims against the Company not acknowledged as debts in respect of :
- Custom Duty and Excise Duty	147.700	185.300
- Sales Tax and Entry Tax	1114.600	1053.200
- Power Charges	259.400	124.800
- Royalty	3453.200	3109.800
- Others	298.500	138.800
(ii) Claims not acknowledged as debts jointly with other members of “Business Consortium of Companies” in which the Company had an interest ( proportionate)	208.400	200.200
(b) Disputed income tax matters under appeal	156.500	142.600
(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 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 year, the Company was directed to deposit 10% of this demand pending disposal of the appeal by COMPAT. Consequently, an amount of Rs.274.000 millions was deposited by the Company as Fixed Deposit with its bankers in the name of the “Registrar, Competition Appellate Tribunal A/c Century Textiles and Industries Ltd.” The amounts shown in respect of item No.32 (a) to (e) represent the best possible estimates arrived at on the basis of available information. The uncertainties are dependent on the outcome of the different legal processes. The timing of future cash flows will be determinable only on receipt of judgements / decisions pending with various forums / authorities. The Company does not expect any reimbursements against the above.	2740.200	2740.200
(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	132.900	224.800
(g) Undertaking given by the Company under concessional duty / exemption scheme to government authorities (net of obligation fulfilled)	5530.300	6320.800

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE 2014

(RS. IN MILLIONS)

Particular	3 Months ended 30.06.2014
	(Unaudited)
Income from Operations
Net Sales/Income from Operations	18389.300
Other Operating Income	484.400
Total Income from operations (net)	18873.700
Expenses
(a) Cost of material consumed	7769.000
(b) Purchase of stock in trade	16.200
(c) Changes in inventories of finished goods, work in progress and stock in trade	(526.400)
(d) Employee benefit expenses	1382.000
(e) Depreciation and amortization expenses	586.500
(f) Other Expenses
- Stores and Spare Parts consumed	799.800
- Power, Fuel and water	3651.300
- Freight, Forwarding , Octroi etc.	2606.200
- Others	1137.500
Less: Expenditure transferred to Capital Account	11.300
Total Expenses	17410.800
Profit from Operations before Other Income, Finance costs and Exceptional item	1462.900
Other Income	74.600
Profit/ Loss from Ordinary Activities before Finance costs and Exceptional item	1537.500
Finance costs	962.600
Profit/ Loss from Ordinary Activities after Finance costs but Exceptional item	574.900
Exceptional item	--
Profit/ Loss from Ordinary Activities before tax	574.900
Tax Expenses
- Current Tax (Net of MAT entitlement credit)	--
- Deferred Tax Liability/ Assets	(90.000)
- Tax adjustments in respect of earlier years	--
Net Profit/ Loss from Ordinary Activities after tax	664.900
Extraordinary Items
Net Profit for the period	664.900
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	930.400
Paid-up Debt Capital (Listed Debenture)
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year
Basic and Diluted Earnings per share Rs. (not annualized)	7.15
Debt Equity Ratio
Debt Service Coverage Ratio
Interest Service Coverage Ratio
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	55312340
Percentage of Shareholding	59.44%
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	2201740
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	5.88%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	2.37%
Non - encumbered
- Number of Shares	35234400
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	94.12%
- Percentage of Shares (as a % of the total share capital of the company)	37.87%

	Particulars	3 Months ended 30.06.2014
B	Investor complaints (Nos.)
	Pending at the beginning of the quarter	Nil
	Received during the quarter	7
	Disposed of during the quarter	7
	Remaining unresolved at the end of the quarter	Nil

SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Particulars	3 Months ended 30.06.2014
	(Unaudited)
1. Segment Revenue
a. Textiles	4298.900
b. Cement	10085.400
c. Pulp and Paper	4447.700
d. Others	304.400
Total	19136.400
Less: Inter – segment revenue	747.100
Total income from operations (net)	18389.300
2. Segment Results
Profit/ (loss) before tax and interest
a. Textiles	325.400
b. Cement	967.600
c. Pulp and Paper	221.000
d. Others	50.700
Total	1564.700
Inter Segment Profit / (Loss)	3.300
Total	1568.000
Less: Finance Costs	962.600
Other un-allocable expenditure net off un-allocable other operating income	30.500
Total Profit Before Tax	574.900
3. Capital Employed $
(Segment Assets – Segment Liabilities)
a. Textiles	13465.300
b. Cement	25755.100
c. Pulp and Paper	29011.000
d. Others	9032.100
e. Total Capital Employed in Segments	77263.500
f. Unallocated	(57698.000)
Total	19565.500

Note:

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 July 24, 2014. The Statutory Auditors have carried out a limited review of the above financial results.

During the year 2012-13 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 year 2013-14, the Company was directed to deposit 10% of this demand pending disposal of the appeal by COMPAT. Consequently, an amount of Rs. 274.000 Millions was deposited by the Company as Fixed Deposit with its bankers in the name of the “Registrar, Competition Appellate Tribunal A/c Century Textiles and Industries Ltd.”.

In terms of the Shareholders approval obtained in the extra-ordinary general meeting of the Company held on June 04, 2014, the Company issued and allotted 1,86,50,000 preferential warrants @ Rs.354.89 each as per SEBI guidelines to the Promoter Group, to be utilised to reduce debt. Warrant holders will be entitled to apply for and obtain one equity share of the face value of Rs.10/- fully paid up of the Company against each of such warrant. The Company has received 25% against each such warrant.

In accordance with the provisions of the Companies Act 2013, effective from April 01, 2014, the Company has reassessed the remaining useful lives of its fixed assets. As a consequence of such reassessment, the charge for depreciation for the period is lower than the previously applied rates by Rs. 282.200 millions, correspondingly as the transitional impact of Rs. 223.400 millions (net of deferred tax Rs. 115.100 millions) has been adjusted to retained earnings.

The results for the quarter ended March 31, 2014 are derived figures arrived at by subtracting the results for the nine months ended on December 31, 2013 from the audited results for the year ended March 31, 2014.

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

FIXED ASSETS

œ Land at Worli (Freehold and Leasehold)

œ Land Others (Freehold and Leasehold)

œ Buildings

œ Plant and Equipment

œ Furniture and Fixtures

œ Vehicles

œ Office equipment

œ Water Pipe Lines and Tanks

œ Railway Sidings and Locomotives

œ Ropeway

œ Reservoir and Pans, etc.

œ Electric Installations

œ Air-conditioning Plant

œ Improvement to Leased Premises

œ Floral Plantation - Roses

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.60.45
UK Pound	1	Rs.99.46
Euro	1	Rs.79.47

INFORMATION DETAILS

Information Gathered by :	SVA
`
Analysis Done by :	KAR
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.