A REPORT ON

PROSPECTIVE CLIENTS IN KOLKATA

SUBMITTED TO
Mr. Amar Goenka
Vice – President (The cCorporate Group)

Prepared By
Deep Ray
Christ University (BBM)
 CONTENTS

 Acknowledgement

 Overview of the Bank

 History of the Bank

 Prospective Client List

 Brief Profile on each company

 Conclusion
 Acknowledgement

I would like to express my profound gratitude to all those who have been instrumental in the
preparation of this project report. I wish to place on records, my deep gratitude towards my
project guide Mr. Amar Goenka, Vice president (The Corporate gGroup), a highly esteemed and
distinguished guide for his expert advice and help.

I would like to thank everyone in the Kolkata branch for helping me towards this project
especially Mr. Sovan Ganguly (Sr. Vice President & Branch Head) and all other employees in the
branch.

I am also grateful to Mr. Jacob Joseph K. my faculty guide for his constant support for this entire
project.

Lastly, I would like to thank God, My parents and My friends for their constant support and help.

Deep Ray
Christ University
Bachelors in Business Management
 AN OVERVIEW OF THE BANK

 BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters
in London. In October 2010, BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and
largest company in the world by assets with over US$3.1 trillion. It was formed through the merger of
Banque Nationale de Paris (BNP) and Paribas in 2000. In April 2009, BNP Paribas purchased a 75
percent stake in Fortis Bank, the Belgian banking business, making BNP the eurozone's largest bank by
deposits held. In 2011, BNP Paribas is the world’s biggest bank, as measured by total assets of US$2.670
trillion.
 BNP Paribas has one of the highest credit ratings in its peer group with the long term debt of the group
currently ranked AA- by S&P, Aa3 by Moody's and A+ by Fitch.

 The firm is a universal bank split into three strategic business units: Retail Banking, Corporate &
Investment Banking and Investment Solutions (which includes Asset Management, custodial
banking, and real estate services).

 BNP Paribas's four domestic markets are France, Italy, Belgium, and Luxembourg. It also has
significant retail operations in the United States, Poland, Turkey, Ukraine, and North Africa, as well as
large-scale investment banking operations in New York, London, Hong Kong, and Singapore.

 We are tThe Corporate and Investment Banking activities of the BNP Paribas Group entail

1. Around 20,000 people, in more than 50 countries worldwide.

2. An international core business with important platforms in Paris, London, Hong-Kong, New-York,
Tokyo and Singapore.

Our cClient segments include

9,800 corporate clients:

 Major corporations,
 Medium-sized businesses with high development potential;

4,200 financial institutions

 General and specialised banks (public or private),

 Insurance companies, mutual health insurers, personal risk protection providers,
 Pension Funds
 Fund managers,
 Central banks and supranational entities;

Major shareholders
1) France (17%) 5) General Mediterranean Holdings
2) Belgium (11.6%) 6) Employeses
3) AXA insurance company
4) Customers
 History

 In the early 1820s, Louis-Raphaël Bischoffsheim founded in his own name a private banking
establishment in Amsterdam, while his brother Jonathan Raphaël created a branch in Antwerp in 1827
before settling in Brussels in 1836. Having married the daughter of Frankfurt banker Hayum-Salomon
Goldschmidt, Louis-Raphaël Bischoffsheim established the Bischoffsheim-Goldschmidt bank in Paris
in 1846, then in London in 1860. In 1863 he merged these banks with the Banque de Crédit et de Dépôt
des Pays-Bas, which he had founded in Amsterdam: the Bichoffsheim family thereby established a
powerful multinational banking conglomerate.
 Additionally in 1869, a group of bankers and investors including Adrien Delahante, Edmond Joubert
and Henri Cernuschi, with the private bankers Eugène Goüin (Tours), E. Fould of the Fould banking
dynasty, E. et A. Schnapper Stern (Paris), Brugmann (Bruxelles), Tietgen (Copenhague), founded the
Banque de Paris, with its headquarters near the Opera at 3 rue d'Antin, Paris.

 After the end of World War II, the French State decided to "put banks and credit to work for national
reconstruction". René Pleven, then Minister of Finance, launched a massive reorganization of the banking
industry. A law passed on 2 December 1945 redefined the regulatory framework governing the industry
and decreed the nationalization of the Banque de France and the four leading French retail banks: BNCI,
CNEP, Crédit Lyonnais and Société Générale. It went into effect on 1 January 1946.

 Shares in these companies were transferred to the French State, which assumed complete ownership of
the financial institutions. The boards of directors were dissolved and twelve new directors were appointed
at each bank. BNCI and CNEP were merged in 1966 to form BNP. BNP was re-privatised in 1993.

 In 1999, BNP and Société Générale fought a complex battle on the stock market, with Société
Générale bidding for Paribas and BNP bidding for Société Générale and counter-bidding for Paribas.
BNP's bid for Société Générale failed, while its bid for Paribas succeeded leading to a merger of BNP and
Paribas one year later on 22 May 2000.

 On 9 August 2007, BNP Paribas became the first major financial group to acknowledge the impact of
the sub-prime crisis by closing two funds exposed to it. This day is now generally seen as the start of the
credit crisis and the bank's quick reaction saved it from the fate of other large European banks such as
UBS.

 On 6 October 2008, BNP took over 75% of troubled bank Fortis activities in Belgium, and 66% in
Luxembourg, in exchange for the Belgian government becoming the new group's major shareholder. The
sales of the Fortis shares was suspended by a court order from the Court of Appeal on Friday 12
December.

 On 14 December 2008, BNP announced it could lose €350 million as a victim of the Madoff fraud.

 In the end of January, the Belgian government and BNP negotiated for a 75% partnership in Fortis
Bank Belgium. Fortis Insurance Belgium would be reintegrated in Fortis Holding.

 On 11 February, Fortis' shareholders decided that Fortis Bank Belgium and Fortis Insurance Belgium
should not become property of BNP Paribas. However the acquisition was completed and BNP Paribas
took 75% share holding and renamed the new subsidiary BNP Paribas Fortis. After this only Fortis
Insurance International was left in Fortis Holding and this was renamed as Ageas, a business that had
Insurance all over Europe and Asia. The remaining Fortis Bank Netherlands was in the hands of the Dutch
Government which merged it with other ABN AMRO holdings it already owned under the name ABN
AMRO.

 In May 2009, BNP Paribas became the majority shareholder (65.96%) of BGL (formerly Fortis Bank
Luxembourg), the State of Luxembourg retaining 34%. On 21 September, the bank's registered name was
changed to BGL BNP Paribas and in February 2010, BGL BNP Paribas became the 100% owner of BNP
Paribas Luxembourg. The transfer was finalised on 1 October 2010 with the incorporation of BNP Paribas
Luxembourg's business in the operational platforms of BGL BNP Paribas.

FOLLOWING CAN BE PROSPECTIVE CLIENTS OF BNP PARIBAS:-

1. Philips Carbon Black Limited (RP – Sanjeev Goenka Group)

2. CESC Limited (RP – Sanjeev Goenka Group)

3. Birla Corporation Limited

4. EIH Limited

5. Century Plyboards India Limited

6. Rohit Ferro Tech Limited

7. Gujarat NRE Coke Limited

8. Hindustan Copper Limited

9. Techno Electric & Engineering Co. Limited

10. Mcnally Bharat Engineering Company Limited

Philips Carbon Black Limited (RP – Sanjieev Goenka Group)

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Board Of Directors Mr. Sanjiv Goenka

(Chairman)
Mr. C R Paul
Dr. Ram S Tarneja
Mr. K S B Sanyal
Mr. Paras K Chowdhary
Mr. O P Malhotra
Mr. Pradip Roy
Mr. A Goyal
(Managing Director)

Phillips Carbon Black Limited, part of the RP-SG Group, pioneered the carbon black industry in India.
It is now the leading producer of carbon black in the country.

Phillips Carbon Black has come a long way since its inception in 1960. PCBL started production from
December 1962 by the oil furnace technology; the most widely accepted manufacturing process of carbon
black patented by its then collaborator and world carbon black leader, Phillips Petroleum Company, USA.
The collaboration ended in 1978. However, PCBL continued its progress by virtue of the ingenuity of its
technologists, engineers and sustained R & D activities. In 1988 PCBL entered into a technical agreement
with Columbian Chemicals Company, USA, and acquired access to the modern state-of-the-art Carbon
Black technology. This resulted in the company gaining flexibility, product range, production capacity and
energy conservation. The company's present installed capacity is 270,000 MTPA. The company is not
only the largest exporter of Carbon Black from India but also one of the largest in Asia in its field. The
company has taken advantage of the newly introduced Electricity Act of 2003 to setup a 12 MW
co-generation power plant at its Baroda plant using the off gas. After meeting the internal
demand for production of carbon black, the surplus power of around 7 MW - 7.5 MW is being
sold to the GEB Grid from end March, 05. Company's Commercial Paper has been rated as PR1
by Credit Analysis & Research Ltd. 2004.Encouraged by the success of the Baroda co-
generation power plant, the company is setting up a 30 MW co-generation power plant at its
Durgapur plant utilizing the off gas for generation of power. The internal consumption would be
around 6 MW and the surplus power would be sold to interested consumers. State of the art
Enterprise Resource Planning system SAP was implemented in conjunction with the
internationally renowned consultants, M/S Accenture as the implementing partner. SAP is
functioning satisfactorily.

Shareholding pattern (as on ________) and share price data

% of
Shareholders Shareholding

Promoters & Group Companies (A)

Public (B)
FIIs
Institutional
Public
Others
Sub total (B)
TOTAL (A+B)

The share price data of the company is summarised below: -

INR / Share INR M

Face value of Price as on 52 week 52 week Market Gross Networth
share ________ High Low Capitalisation (as on March, 2011)

SHARE VALUE OF PCBL (Face value Rs. 10)

BSE May 24,15:43 NSE May 24,15:32
Day's High | Low 99.50 | 98.00 Day's High | Low 101.00 | 97.65
Day's Volumes 1,400 Day's Volumes 6,271
52Wk High | Low 158.50 | 77.05 52Wk High | Low 159.00 | 76.05
Open Price 98.05 Open Price 101.00
Deliverable Vol. 312 Deliverable Vol. 2,463
6 Mth. Avg. Vol. 81,007.84 6 Mth. Avg. Vol. 53,313.40
 Performance in the year ending March 2011FY

Summary of financials

Year end Income EBIDTA PAT Net Leverage Gross Interest Total Debt/ Net Debt/
(Growth %) (% margin) (% margin) worth Gearing Cover EBIDTA EBIDTA
FY 2011 47,510.3 4,783.3 1,232.4 10,757.4 3.5 1.6 3.3 3.5 3.3
6.9% 10.1% 2.6%
FY 2010 44,427.5 4,541.7 1,226.0 9,662.6 3.2 1.3 3.8 2.9 2.7
-4.7% 10.2% 2.8%
FY 2009 46,626.6 4,362.3 1,208.0 8,764.1 3.5 1.4 2.9 2.8 2.6

 Phillips Carbon Black has reported a sales turnover more than Rs.1800 crore and a net profit
of Rs 116 crore for the year ended march '11.
 The board of Phillips Carbon Black in its meeting on 28 October 2011 has allotted 12, 50,000
equity shares at a price of Rs. l96 per share, arising out of conversion of preferential issue of
convertible warrants.

 The company has tied up debt of $900 million from ICICI Bank for its planned bid for the
carbon black business of Evonik Industries.

 (CARE Ratings) has assigned the following credit ratings to the Company:

1. 'CARE A+' [Single A Plus] rating to the long term facilities of the Company.

2. 'CARE A1+' [A One Plus) rating to the short term facilities of the Company.

3. 'CARE A1+' [A One Plus] rating to the short term debt of the Company .

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 1.3 1.8 1.6
Ratio
Long Term 0.8 1.4 1.2
Debt-Equity
Ratio
PBIDTM 12.3 13.6 0.8
(%)
ROCE (%) 20.1 19.9 -1.8
RONW (%) 27.5 45.2 -28.1
PE 4.2 4.6 0.0
EBIDTA 230.3 182.8 9.0
EPS 34.2 42.6 0.0

KEY RISKS
 • Fortunes highly dependent on performance of tyre industry.
• Volatility in raw material prices i.e. carbon black feedstock which is derivative of crude oil.
• Fluctuations in power prices could hamper company’s profitability.
• Delay in project executions could affect earnings.
• Foreign exchange fluctuations as exports make ~16% of total revenues in FY10.

KEY STRENGTHS
Largest player in domestic market
The domestic carbon black industry is consolidated with six players accounting for the entire carbon black
capacity. PCBL is the largest player in the industry with a market share of 41% in terms of production.
This is because it has the largest manufacturing capacity - 360,000 MT as of FY10.
Strong relationships with domestic tyre manufacturers have ensured a sustained off-take of carbon black.
Increase in power generation capacity in FY10
PCBL has increased its power generation capacity with commencement of operations of 30 MW
Co- Generation Plant (CPP) at Durgapur and 16 MW CPP at Mundra plant. The contribution of
power segment to the company’s profit increased significantly in FY10 with the commissioning
of aforesaid CPPs, coupled with higher unit price realization. Revenue generated from sale of
power in FY10 was 3.5 times higher over FY09. Power contributed ~6% to total sales whereas in
terms of EBITDA it contributed ~22% mainly on account lower cost of generating power.

RECOMMENDATIONS

 Phillips Carbon Black Limited, part of the RP-SG Group, pioneered the carbon black industry in India and
is considered as the largest producer in India and 8th largest in the world. The company has clients across
the globe such as Bridgestone, Goodyear, loadstar etc. The company has an A1+ rating by CARE which
shows the strong creditability in the market. The sales turnover of more than Rs. 1800 crores and a net
profit of Rs. 116 crores show the company has a good profitability from its operations. The company is
under the banner of RP- SG Group which has almost more than Rs. 1200 crores of assets under
management.
 Hence, I would recommend the bank to look at PCBL as future prospective client.
Rama Goenka Chairman Emeritus and a Member of
Management Board of RPG Enterprises
Sanjiv Goenka Vice Chairman of Management Board,
RPG Enterprises
Pradip Khaitan B.Com, L.L.B., Attorney-at-Law Khaitan & Co.
Brij Khaitan B. Com. Eveready Industries India Ltd.
Sumantra Banerjee Managing Director & Executive Director
( CESC ltd)
Srinivasan Srinivasan CESC Ltd.

CESC Limited (RP – Sanjeev Goenka Group)

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Rama Goenka Chairman Emeritus and a Member of
Management Board of RPG Enterprises
Sanjiv Goenka Vice Chairman of Management Board,
RPG Enterprises
Pradip Khaitan B.Com, L.L.B., Attorney-at-Law Khaitan & Co.
Brij Khaitan B. Com. Eveready Industries India Ltd.
Sumantra Banerjee Managing Director & Executive Director
( CESC ltd)
Srinivasan Srinivasan CESC Ltd.

Board of Directors

 It supplies electricity to area under the Kolkata municipal corporation in the city of Kolkata, India,
mainly but also few areas of Howrah, Hooghly, 24 Parganas (North) and 24 Parganas (South) districts of
West Bengal, India.
 The Company continues with long term credit rating “CAREAA” and short term rating “PR1+” by
CARE.

 CESC Limited, a power utility, engages the generation, transmission, and distribution of power. The
company owns and operates four thermal power plants that generate approximately 1225 MW of power;
and transmission and distribution system that include 474 km circuit of transmission lines linking its
generating and receiving stations with 85 distribution stations, as well as 3,837 km circuit of HT lines
linking distribution stations with LT substations and industrial consumers, and 9,867 km circuit of LT
lines connecting the LT substations to LT consumers.

 It serves approximately 2.5 million customers in the area of 567 square kilometers of Kolkata and
Howrah. The company also involves in mining coal; organized retail business that cater to various
family needs, groceries, personal care products, and home accessories; and real estate development
business, including a warehouse in Howrah, as well as a shopping mall project in Kolkata. It operates
208 stores in India under the Spencer’s label, including 19 standalone apparel stores and 19
hypermarkets; 92 stores the label Music World and Books & Beyond that sell various genres of musical
albums, movies, and books; and 2 retail cafe stores in Bangalore. The company was founded in 1897
and is head.

SHARE VALUE (Face Value Rs. 10)

BSE May 24,15:58 NSE May 24,15:45
Day's High | Low 271.75 | 267.15 Day's High | Low 271.60 | 267.40
Day's Volumes 7,212 Day's Volumes 106,087
52Wk High | Low 364.40 | 186.30 52Wk High | Low 364.90 | 190.95
Open Price 270.00 Open Price 269.95
Deliverable Vol. 3,995 Deliverable Vol. 100,667
6 Mth. Avg. Vol. 111,005.44 6 Mth. Avg. Vol. 145,815.72
PERFORMANCE IN THE FY
 CESC, a power generation company, has reported a massive growth of 130.36% year-on-year in its net
profit of Rs 258 crore for the fourth quarter of FY12.
 During the year under review, the Company’s earnings from sale of Electricity increased by 19.65%
over last year to reach Rs. 3939.85 crore. Including other income, total income grew by 18.65% from
Rs. 3449.04 crore in 2009 -10 to Rs. 4092.29 crore in 2010 -11. Profit before depreciation and taxation
(PBDT) grew by 21.15% to Rs. 881.62 crore during the year. After providing for depreciation of Rs.
267.37 crore and taxation of Rs. 125.85 crore, the profit after taxes (PAT) for 2010 -11 stands at Rs.
488.40 crore, which reflects a 12.72% increase over Rs. 433.30 crore during 2009-10.
 Total income jumped 57.6% to Rs 1,379 crore from Rs 875 crore year-on-year.

 Numbers were better than expectations - analysts on average had expected net profit at Rs 186 crore
and total income at Rs 1,364 crore.

 Other income too nearly doubled at Rs 38 crore in the January-March quarter of 2012 as against Rs 20
crore in a year ago period.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 0.9 1.0 0.9
Ratio
Long Term 0.9 0.9 0.9
Debt-Equity
Ratio
PBIDTM 30.3 28.7 27.0
(%)
ROCE (%) 12.0 10.7 10.8
RONW (%) 12.0 12.0 12.9
PE 8.1 11.3 6.6
EBIDTA 1,213.3 963.3 832.5
EPS 38.2 33.8 31.9

KEY RISK:-

 It is becoming more and more difficult to build generating stations inside a congested metro like
Kolkata - not the least because of environmental concerns. As CESC's plants age, it is but natural that
their operating efficiencies shall reduce; beyond a point in time, shutting down and replacement of these
plants will become imperative. If the Company is not allowed to build replacement plants at the sites
where current generating stations exist, the cost of evacuating and distributing power from far flung
locations into the licensed area will increase substantially, in turn impacting quality of service delivery
and profitability.
 High quality coal, i.e. coal with low ash content and high heat value, is becoming scarcer. Some of
CESC's older plants had been designed for high quality coal as input energy source. With the supply of
this type of coal drying up, it will become, over a period of time, more difficult to operate these generating
stations.

 Power is a highly regulated sector and this exposes the Company to risks with respect to changes in
policies and regulations. Besides, given the polluting nature of the industry, there is a risk of more
stringent policies and norms aimed at addressing environmental concerns. This can make it more difficult
to execute new projects as well as manage increased cost of operations. Efficient managing and recycling
of fly ash is one such area.

RECOMMENDATIONS:-

 CESC as being the 4th largest private power utility company has a turnover of more than 4,000 crore
and above looks to be very strong in the financial along with the strong customer base of around 2.5
million. As CESC is power Generation Company, so it requires more working capital for its operations. It
apparently continues with long term credit rating “CAREAA” and short term rating “PR1+” by CARE,
which is looking healthy from a creditability aspect. The R P SANJIV GOENKA GROUP has over
14,000 cr. (over USD 3 billion) of assets under its management; the group has ambitious growth plans.
 With the prospective import of coal from South Africa from this year. Hence I would recommend to
look at CESC as future prospective client and to build healthy relation.

Birla Corporation Limited

 COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Board of Directors
 Bi
Chairman Harsh V Lodha rla
Director Pracheta Majumdar
Vikram Swarup
Anand Bordia
B B Tandon
Executive Director & CEO B R Nahar
Director D N Ghosh
Additional Director Deepak Nayyar
Mahendra Kumar Sharma
Corporation Limited (BCL) is the flagship Company of the M.P. Birla Group. Incorporated as Birla
Jute Manufacturing Company Limited in the year 1919. The company has products ranging from
cement to jute goods, PVC floor covering, as well as auto trims (jute felt-based car interiors
manufactured with German technology). The Cement Division of Birla Corporation Limited has seven
plants, having an installed capacity of 5.8 million tons. These plants manufacture varieties of cement,
including Ordinary Portland Cement (OPC), 43 & 53 grades, fly ash-based Portland Pozzolana Cement
(PPC), Portland Slag Cement (PSC) and low- alkali Portland cement. Recently, the Company has
started producing Sulphate Resistant Cement (SRC) and it has been well accepted in the market.The
Jute Division of the company manufacturing more than 120 tonnes of a variety of jute products in
Birla Jute Mill. The product range comprises of almost every major application of jute - the most
versatile, eco-friendly, biodegradable fibre available, Jute- durable, natural and anti-static. The Auto
Trim Division of the company has been outfitting major Indian cars with natural fibre-based interiors.
Birla Corporation Limited's subsidiaries consist of Assam Jute Supply Company Limited, Talavadi
Cements Limited and Lok Cements Limited.
 The Oxygen & Acetylene Gas Unit of the company was commissioned in August of the year 1964. The
Company entered into an agreement with Indian Oxygen, Calcutta, for exclusive sale of its products on
principal-to-principal basis in the same year. During the year 1969, BCL had entered into an agreement
with Hindustan Steel Ltd for the purchase of blast furnace slag from the Durgapur Steel Plant to set up
a slag-cement plant at Durgapur. Bally Jute Co. Limited's two units, such as Bally-1 and Bally-2 were
amalgamated with the Company with effect from 1st April of the year 1982. With effect from 7th
February of the year 1983, the name of the company was changed from the Birla Jute Manufacturing
Company Limited to Birla Jute & Industries Limited. Credit Analysis and Research Limited (CARE)
assigned 'CARE AA' rating to the company for long term borrowing Programme in the year 2006-07.
The Company has been included in the prestigious "Best under a Billion" list by Forbes and is one of
the 20 Indian companies featured this year.

Performance in the FY

 Achieved its highest ever cement production at 5.70 million tonnes.

 Achieved its highest ever turnover of Rs. 2387.07 Crores.
 Highest ever rate of Dividend of 60% declared by the Company including Interim Dividend of 25%
and Dividend Payout of Rs. 53.95 Crores (including Corporate Dividend Tax).

 Highest ever share (86.86%) of blended cement in the overall cement production of the Company.

 The Company has been included in the prestigious "Best under a Billion” list by Forbes based on its
excellent performance.

 Decision to allocate a minimum of 10% of the distributed profit of the Company for Corporate Social
Responsibility activities.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 0.5 0.3 0.2
Ratio
Long Term 0.3 0.2 0.2
Debt-Equity
Ratio
PBIDTM 23.0 35.4 24.6
(%)
ROCE (%) 17.6 38.9 32.5
RONW (%) 16.7 36.4 28.4
PE 8.4 5.6 4.3
EBIDTA 555.0 843.3 501.9
EPS 40.6 71.4 41.2

SHARE PRICES (FACE VALUE Rs. 10)

BSE May 24,15:54 NSE May 24,15:51

Day's High | Low 254.95 | 242.50 Day's High | Low 255.95 | 246.20
Day's Volumes 234 Day's Volumes 597
52Wk High | Low 390.00 | 240.00 52Wk High | Low 398.95 | 238.00
Open Price 250.00 Open Price 255.00
Turnover 133,705.00 Turnover 151,047.25
Deliverable Vol. 381 Deliverable Vol. 432
6 Mth. Avg. Vol. 96,602.22 6 Mth. Avg. Vol. 173,115.98

KEY OPPORTUNITY

 With the boost given by the Central Government and the private sector to various infrastructure
projects, road network, housing facilities and Mega Power Projects, grow thin the cement consumption
is anticipated to continue in the coming years. Concrete roads, which are maintenance-free and have a
longer useful life, offer tremendous scope for growth in cement demand and the recent emphasis of
certain State Governments, in particular Uttar Pradesh in this direction offers good opportunity for the
cement industry.
 Jute products are environmental friendly and biodegradable. Good grade jute products processed with
vegetable oil is widely used by the producers and exporters of coffee, cocoa beans and other shelled
nuts mainly in Latin America, African and Far East countries. Jute goods further offer versatile
application prospects ranging from low value geo-textiles to high value carpet, apparel, composites,
decorative, up holstery furnishings, fancy non-wovens for new products, decorative colour boards etc

KEY RISKS

 The prices of major inputs for cement such as coal, slag, gypsum, and fly ash and petroleum products
are showing an upward trend and are likely to harden in the F.Y. 2010-11, which may adversely affect
the manufacturing and distribution costs. Coal is a primary input for manufacturing of cement and
securing reliable supplies of indigenous coal of consistent quality remains a key area of concern. The
price of imported coal has started moving up, which may have an adverse impact. However,
strengthening of Rupee against Dollar may partially off set the rise in global coal prices.
 The unabated import of jute goods from Bangladesh is an area of concern. The increasing the amount
of Dearness Allowance (D.A.) liability as agreed upon at the time of settlement of jute strike, would
also cast heavy burden. Continuation of mandatory packaging as per Jute Packaging Order is necessary
for continuing viability of jute industry.

Strengths ?

RECOMMENDATIONS

 Birla Corporation limited is a part of the M P Birla group stands strong with a turnover of more than
Rs. 2200 crores with a diversified business over more than 3 sectors like cement, jute, and auto trim
etc. Birla cement is having a good market standing due to the quality products. The company
apparently has a good credibility in the market as (CARE) assigned 'CARE AA' rating to the
company for long term borrowing Programme in the year 2006-07. The company also has a healthy
profitability situation as the PBDIT stands around Rs.546 crores and a net profit margin is 14.25%.
 Hence I would recommend to look at BIRLA CORPORATION LTD as future prospective client and
to build healthy relation.
 EIH LIMTED

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Board of Directors and Key Executives

Chairman & Chief Executive P R S Oberoi
Vice Chairman S S Mukherji
Joint MD & COO Vikram Oberoi
Joint Managing Director Arjun Oberoi
Director S K Dasgupta
Anil Nehru
Rajan Raheja
L Ganesh
Additional Director Nita M Ambani
Manoj Harjivandas Modi
Renu Sud Karmad
Robert Henry Burns

 EIH Ltd, the flagship company of Oberoi group is one of the largest chains of hotels in India. The
company is in the business of luxury hotels, restaurant, management contracts and travel and tours.
Their services include airline catering, management of restaurants and airport bars, travel and tour
services, car rentals, project management and corporate air charters. They operate hotels under the
brand name Oberoi and Trident. The hotels owned and managed by the company are The Oberoi,
Mumbai; The Oberoi Udaivilas, Udaipur; The Oberoi, New Delhi; The Oberoi, Bangalore; The Oberoi
Grand, Kolkata; The Oberoi Vanyavilas, Ranthambhore; Trident, Nariman Point, Mumbai, and Trident,
Bandra Kurla, Mumbai. Other business units owned and managed by the company include Motor
Vessel Vrinda, Cochin (a luxury cruiser); Oberoi Airport Services, Mumbai, Delhi, Chennai, Kolkata,
Cochin, Bangalore; Business Aircraft Charters and luxury car hire.
 EIH Ltd was incorporated on May 26, 1949 as a public limited company with the name East India
Hotels Ltd. Initially, the company was in the business of lessee and operator of The Oberoi Palace
Hotel in Srinagar, Kashmir. In the year 1956, the equity shares of the company were fist listed on BSE.
In the year 1965, they built their first hotel, The Oberoi Intercontinental, now known as The Oberoi,
New Delhi. In September 9, 1968, The Associated Hotels of India Ltd and Hotels (1938) Pvt Ltd were
amalgamated with the company pursuant to which the company acquired five hotels including, The
Oberoi Grand in Kolkata, The Maidens Hotel in Delhi and The Oberoi Cecil, Shimla. In 1973, the
company commenced operations at the Oberoi Towers in Mumbai and subsequently expanded their
operations from the five star deluxe segments to 'Trident' branded hotels which were targeted at
business and leisure customers seeking high-quality service at more affordable prices. In the year
1986, the company forayed into the airport services business by entering into a ten year contract with
the International Airport's Authority to operate all the snack bars and restaurants at the domestic and
international terminals in Mumbai.
 EIH Ltd owns and manages hotels under the Oberoi and Trident brand. The FAAA rating assigned by
the Credit Rating Information Services of India (Crisil) to the fixed deposit Programme has been
reaffirmed.
 An LAAA (Pronounced L triple A) rating has been assigned to the Rs 113.55 million non-convertible
debentures Programme of EIH Limited, indicating highest safety and a fundamentally strong position
from ICRA. Risk factors are negligible.

SHARE VALUE
BSE May 24,15:59 NSE May 24,15:58
Day's High | Low 77.30 | 76.00 Day's High | Low 77.90 | 75.80
Day's Volumes 10,765 Day's Volumes 28,805
52Wk High | Low 103.00 | 74.05 52Wk High | Low 103.20 | 75.00
Open Price 76.80 Open Price 76.50
Turnover 874,654.00 Turnover 3,037,659.25
Deliverable Vol. 7,767 Deliverable Vol. 26,723
6 Mth. Avg. Vol. 101,146.87 6 Mth. Avg. Vol. 284,468.71

PERFORMANE IN FY
 During the Financial Year 2010-2011, the Company’s Total Revenue was Rs. 11,430million as
compared to Rs. 9,073 million in the previous year, an increase of 26%.
 Earnings before Interest, Depreciation, Taxation, Exceptional Items and other Amortizations
(EBIDTA) were Rs. 3,340 million as compared to Rs. 2,579 million in the previous year, an increase of
approximately 30%.
 The Profit after Tax was Rs. 645 million as compared to Rs. 572 million in the previous year, an
increase of approximately 13%.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 0.6 1.0 0.8
Ratio
Long Term 0.6 0.9 0.8
Debt-Equity
Ratio
PBIDTM 33.9 33.3 45.8
(%)
ROCE (%) 8.6 8.2 17.4
RONW (%) 3.7 4.9 15.2
PE 80.8 96.1 20.9
EBIDTA 328.1 257.5 409.6
EPS 1.0 1.3 4.1

KEY STRENGHTS & OPPURTUNITIES

 Strong established Brand of the Oberoi Group which has a global reputation.
 The World Economic Forum’s Travel and Tourism Competitiveness Report for 2011predicts that by
2015 the growth rate of each of China and India’s travel and tourism industries will exceed or equal
that of the United Kingdom, France and Japan.
 The share of revenue from domestic market was 20% which had now increased to 40% and in future
Indian market will grow as overseas is uncertain.
KEY RISKS

 As hotels constitute only one element of tourism infrastructural development. Modern airports, good
air connectivity and a network of road are all necessary to facilitate easy travel. Whilst considerable
progress has been made in the last few years, much remains to be done to handle the anticipated
increase in travel volumes, especially arising out of India’s continued economic growth.
 Margins are likely to be impacted by continuing inflation, oil price volatility and rising payroll costs.
The Company plans to offset pressure on margins through higher occupancies and modest increases in
average room rates. Furthermore, proceeds from the recent Rights Issue (how much) will be used to
reduce interest costs thus contributing to increased profitability.

RECOMMENDATION

EIH Ltd. is chain of hotels under the flagship of the World renowned THE OBEROI GROUP. It stands at
a turnover of about Rs.1000 crores and a net profit of about Rs.65 crores. The group operates 28 hotels
and three cruisers in five countries under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. The Group is
also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project
management and corporate air charters, which shows the amount of diversification in terms of location
and a world wide presence. With the FAAA rating from CRISIL reaffirms a good creditability, thus would
like the bank to look at EIH ltd. as a prospective client for future.
 CENTURY PLYBOARD INDIA LIMITED

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Board of Directors
Vice Chairman Hari Prasad Agarwal
Chairman Sajjan Bhajanka
Managing Director Sanjay Agarwal
Prem Kumar Bhajanka
Vishnu Khemani
Executive Director Ajay Baldawa
Director Manindra Nath Banerjee
Mangi Lal Jain
Plistina Dkhar
Independent Director Samarendra Mitra
Santanu Ray
Asit Pal
 Century Plyboards (India) Ltd is an India-based company. The company is engaged in the
manufacture, sale, and export of plywood and veneer in India. They offer plywood, block-board,
veneer, and timber; various laminates, including decorative laminates and pre laminated boards; and
Ferro alloys comprising Ferro silicon.
 They also engage in power generation; offer cement and clinker; and provide adhesives and chemicals,
as well as involves in logistic activities. The company operates in five segments, namely plywood,
laminates, Ferro alloys and power, cement, and others. They manufacture plywood and market their
plywood products under the brand name, Century Ply. The company's Ferro alloy unit is situated in
Meghalaya. Their subsidiary, Cement Manufacturing Company Ltd has the cement and clinker units
situated at Lumshnong in Meghalaya. They sell their cement under the brand name Star Cement.
Century Plyboards (India) Ltd was incorporated in the year 1982.
 In the year 1997, the company was the first to introduce the borer proof plywood in India. Over the
years, they introduced the boiling water resistant decorative veneer, seven-year powder proof
guaranteed PF plywood, the revolutionary non-leachable Firesafe plywood. In the year 2002, they
introduced Flexoply, the only flexible plywood variety. Also, they introduced Architect Ply and the
Fantasy range of decorative veneer in India. In the year 2004, the company's laminate plant started
operation. In March 2005, they inaugurated the Pre-Lam particleboard plant. They also started
manufacturing Hi-Pressure Laminates, Pre-Laminated Particle Board and MDF and with this, the
company completed the full range of manufacturing of plywood and veneer related items.
 Also, Cement Manufacturing Co Ltd acquired 100% controlling interest in Star Cement Meghalaya
Ltd and hence, SCML became a subsidiary of the company with effect from June 2, 2007. During the
year 2008-09, the company acquired 100% controlling interest in Cent Ply Pvt. Ltd (CPPL) and thus,
CPPL became a wholly-owned subsidiary of the company with effect from October 1, 2008.
 The company, together with their subsidiary CMCL, acquired controlling interest in Meghalaya Power
Ltd (MPL) and thus MPL became a subsidiary of the company with effect from July 14, 2008. During
the year 2009-10, the company's wholly owned subsidiary Cent Ply Pvt Ltd was amalgamated with the
company with effect from appointed date, April 1, 2009.
 The company's subsidiary Cement Manufacturing Company Ltd (CMCL) along with Star Cement
Meghalaya Ltd (SCML) is setting up a 1.75 million tonne per annum capacity clinker unit at
Meghalaya and 3.20 million tonne per annum cement grinding units at Assam and Bihar. Also,
Meghalaya Power Ltd (MPL) is setting up a 51 MW power generation capacity near company's
existing and proposed clinker unit at Meghalaya.
 The company plans for capacity expansions through organic and inorganic routes, considering buoyant
demand for the products and marketing strength of 'Century ply' brand. The company is having a
proposal to de-merger their cement and ferro alloy businesses into two separate entities. They also plan
to reorganize captive coal based power generating units of cement and ferro alloy units.
 SHARE VALUE (Face Value Rs. 1)
BSE May 24,15:59 NSE May 24,15:54
Day's High | Low 55.75 | 52.00 Day's High | Low 55.60 | 51.00
Day's Volumes 4,241 Day's Volumes 9,542
52Wk High | Low 73.90 | 44.00 52Wk High | Low 73.80 | 44.50
Open Price 52.50 Open Price 51.00
Turnover 53,422.00 Turnover 959,389.65
Deliverable Vol. 600 Deliverable Vol. 10,550
6 Mth. Avg. Vol. 3,062.34 6 Mth. Avg. Vol. 11,552.10

Performance in the FY
 During the year, the company achieved Gross Income of Rs. 1091.10 crores against Rs. 849.82 crores
during the previous year reflecting a growth of over 28%. However, net profit reduced from Rs. 80.95
crores to Rs. 74.51 crores. The company continued its dominance in plywood, veneer & allied products
and further increased its market share.
 During the year under review, the company achieved Gross Income of Rs. 1646.92 crores against Rs.
1343.78 crores during the previous year, reflecting a growth of over 22 %. The Net Profit after
minority interest increased from Rs. 146.18 crores to Rs. 154.58 crores, reflecting a growth of about
6%.
 In view of the consistent financial performance of the Company during the financial year 2010-11, the
Board of Directors recommend dividend @ Re. 1/- per equity share at par with the dividend paid last
year. Dividend on 9% Preference Shares shall be paid as per coupon rate. All dividend amounts are
exclusive of tax on dividend.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 0.8 1.0 1.0
Ratio
Long Term 0.2 0.2 0.2
Debt-Equity
Ratio
PBIDTM (%) 10.5 16.0 10.2
ROCE (%) 19.4 27.8 17.6
RONW (%) 29.6 41.2 26.7
PE 20.5 15.4 57.0
EBIDTA 112.7 128.4 42.6
EPS 3.2 3.6 0.5

KEY OPPORTUNITIES & STRENGTHS

 In view of potential growth of housing and infrastructure, the overall demand for Plywood and
Laminates is expected to remain buoyant The Indian Plywood and panel market is estimated around
Rs. 12000 crores, with expected growth of 15% year on year basis.
 The Company is India’s leading plywood manufacturing company with a very strong brand image.

 In view of potential growth of housing and infrastructure, the overall demand for Ferroalloy which is
one of the ingredients of steel is expected to remain buoyant. The Indian steel capacity which at
 present is 73 million tonnes per annum is expected to grow to 293million tonnes per annum by the year
2020.

 STAR CEMENT is today the leading and the highest selling cement brand in the North Eastern part of
the country. This unit has the advantage of its own captive lime stone mines and is situated at a close
proximity of large reserves of coal at a distance of only 25 kms .

KEY RISK

 Cheap imported products particularly Chinese products may eat away organized sector market and
hence slow down company’s growth. Emergence of new organized player’s will increase competition
in organized sector.
 Problem which cans disrupt production is availability of power, as production process of ferro alloy is
highly Power intensive and supply of power in Meghalaya is not comfortable.

 The demand supply mismatch and high logistic cost of bringing cement from outside north
east has resulted in north east being a high price-end market.

RECOMMENDATIONS

 I would recommend Century Plyboards India Ltd. as future client, as it is India’s leading plywood
manufacturing company with a turnover of more than an Rs1000 crores with business diversified into
more than 3 sectors such as Plyboards & laminates, Ferro alloy, cement etc. CRISIL has combined the
business and financial risk profiles of CPIL and its six subsidiaries: Cement Manufacturing Co Ltd
(rated ‘A/Stable/P1’ by CRISIL), Auro Sundaram Ply and Doors (Pvt) Ltd, Aegis Business Ltd, Megha
Technical and Engineers (Pvt) Ltd (rated ‘A/Stable/P1’ by CRISIL), Star Cement Meghalaya Ltd (rated
‘A/Stable’ by CRISIL), and Meghalaya Power Ltd (rated ‘A/Stable’ by CRISIL). The company also
shows a PBDIT of almost Rs.250 crores, which shows a strong financial position of the company.

ROHIT FERRO TECH LIMITED

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Board of Directors
Chairman Suresh Kumar Patni
Managing Director Rohit Patni
Joint Managing Director Ankit Patni
Executive Director Binit Jain
Director Kailash Chand Jain
Jatindra Nath Rudra
Jayanta Chatterjee
Asoke Kumar Basu

 A well-differentiated player in the Ferro Alloy manufacturing sector, Rohit Ferro-Tech Limited (RFTL)
operates with a vision that inspires, and a business strategy that sustains.Promoted by Mr. S K Patni,
RFTL started its journey in 2003 with a humble capacity of 24,000 TPA from its 2 x 9 MVA furnaces
in Bishnupur, West Bengal. With its continuous expansions every year, the group now has a total
installed capacity of 2, 74,583 mtpa.The company is also setting up a 67 MW Captive Power Plant at
its jajpur unit to feed its energy requirements. In an attempt to forward-integrate, RFTL has set up a
100,000 TPA Stainless Steel manufacturing facility at its Bishnupur unit and the capacity utilization is
being enhanced in phases.
 On the side of backward integration, RFTL has acquired economic interest in coal mines in Indonesia
securing thermal and coking coal requirements of its manufacturing facilities. Since its inception, the
Company has come a long way to position itself as one of the leading producer of High
Carbon Ferro Chrome. RFTL has accreditation like ISO 9001:2000, a Two Star Export House
Status, award for Export Excellence by EEPC, Membership of ICDA (International Chrome
Development Association), IMNI (International Manganese Institute) etc. The company is
listed with the two major stock exchanges of India – National Stock Exchange of India and
Bombay Stock Exchange Limited. The Credit rating of the Company for long term and
medium term debts/facilities has been accorded as BBB (Triple B) and the short term
debts/facilities have been rated as PR3 (PR Three) by the Credit rating Agency – Credit
Analysis & Research Ltd (CARE).

BSE May 24,15:59 NSE May 24,15:40

Day's High | Low 27.85 | 26.05 Day's High | Low 27.85 | 26.25
Day's Volumes 15,855 Day's Volumes 15,970
52Wk High | Low 44.00 | 21.45 52Wk High | Low 44.00 | 21.75
Open Price 26.05 Open Price 27.35
Turnover 143,358.00 Turnover 281,238.75
Deliverable Vol. 3,464 Deliverable Vol. 5,238
6 Mth. Avg. Vol. 56,696.19 6 Mth. Avg. Vol. 107,696.03

Performance in FY
 During the year under review, the net sales/Income from Operation increased from Rs. 824.36 Crores
in FY 2009-10 to Rs. 1166.72 Crores in FY 2010-11 representing an increase of 41.53%.
 Profit before Tax for the year stood to Rs. 68.13 Crores as compared to Rs. 52.00 Crores in previous
year registering a growth of 31%. The increase in sales and profit was mainly due to increase in sales
quantity of Ferro Alloys. Consequent on the improved working of the Company, the net worth stood at
 Rs. 393.32 Crores as against Rs. 303.84 Crores in last year. During the year, Gross Fixed Assets
increased to Rs. 369.62 Crores as compared to Rs. 260.33 Crores in last year due to capital expenditure
incurred and recorded in the Gross block.

Key Ratios Mar-11 Mar-10 \Mar-09

Years
Debt-Equity 1.6 1.4 1.2
Ratio
Long Term 0.8 0.7 0.6
Debt-Equity
Ratio
PBIDTM 12.3 13.4 8.8
(%)
ROCE (%) 14.6 16.2 14.5
RONW (%) 13.2 12.9 3.8
PE 5.3 4.8 8.0
EBIDTA 145.4 111.7 78.9
EPS 8.3 8.6 1.9

Key Strengths & Opportunities

 The positive prospects of the industry, availability of all inputs within the country and the Company's
current linkage with renowned overseas manganese ore miners, the Company is confident of
maintaining cost competitiveness and prevails over the competition in the market place.
 The Company's proposed Captive Power Plant of 110 MW in Orissa will also help the Company to
mitigate the risk of availability of power as well as increasing power cost in future.

 The Company has recently secured coal supply for its own consumption as well as its proposed power
plant by acquiring economic stake in its thermal and coking coal mines in Indonesia, to make it more
competitive and secured on the energy front. The Company has a very effective marketing
management with exporting about 70% of its total production and the Company's highest quality
assurance are very well accepted in the world market.

Key Risks & Threats

 Captive Power as well as Captive supply of raw materials is the key success factors for this industry.
The volatility in the major input cost i.e. ores, coal and power holds threat of increase in cost of
production. The volatility of the ore prices as well as the finished product prices are the other major
concern. The perceived threats to the Company - acute competition from existing competitors and also
by new entrants in this field, increasing raw material cost, un-remunerative prices and un-availability
of raw materials and inputs, thus can be easily addressed by your Company.
 Non-availability and price rise of raw materials and other inputs such as power etc. are the main area
of concern for the Company. However, these factors are not particular to our Company, but are across
the industry, and thus, can be mitigated by passing the burden of the increased prices to the consumers
of the finished products. This is a general phenomenon, not limited to the Company alone, but to the
industry as a whole. The Company is also exposed to external risks such as fluctuation in demand,
competition in the market etc. as well as internal risks like variations in operational efficiency,
 manpower issues etc. The Company is also exposed to financial risks like changes in interest rates,
foreign exchange fluctuations etc. The risks which are identified are taken care of by the management
by taking appropriate steps such as Insurance, hedging of foreign currencies, Risk Assessment
Exercises etc.

Recommendations

 Rohit Ferro Tech Limited is company with a turnover of more than Rs. 1200 crores looks to be company
which is strong and has promising future with a very competent human resource which is very efficient
so as to keep the input cost low. The company also has maintained a strong foot in the industry for the
last five years. The Credit rating of the Company for long term and medium term debts/facilities has
been accorded as BBB (Triple B) and the short term debts/facilities have been rated as PR3 (PR Three)
by CARE which looks a good enough creditability. Hence I would suggest the bank to look forward to
Rohit Ferro Tech Limited as prospective client in near future.

GUJARAT NRE COKE LIMITED

 COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

BOARD OF DIRECTORS

Mr. Girdhari Lal Jagatramka (Chairman Emeritus)

Mr. Arun Kumar Jagatramka (Chairman & Managing Director)

Mrs. Mona Jagatramka (Director)

Mr. Subodh Kumar Agrawal (Director)

Mr. Chinubhai R. Shah (Director)

Dr. Basudeb Sen (Director)

Dr. Mahendra Kumar Loyalka (Director)

Mr. S. Murari (Director)

 Gujarat NRE Coke Ltd (GNCL), the flagship company of Gujarat NRE group is the largest
independent producer of met coke in India with an installed capacity of 1.43 MTPA. Identified as the
4th best performing stock in 1st decade of this millennium, GNCL has also been ranked 7th by
Business Today in 10 year profit growth (BT 500 ranking).
 Gujarat NRE is the only Indian company with coking coal mines in Australia having over 650
million tons of Coking Coal resource with excellent coking properties. The coal mines are owned
through its subsidiary — Gujarat NRE Coking Coal Limited, listed on the ASX. The hard coking coal
production is being increased from current level of 2 MTPA to 6 MTPA by 2015 making it one of the
top 10 hard coking coal producers in the world. The group is also the largest petroleum exploration
block owner amongst the Indian companies in Australia. Gujarat NRE Coke Ltd, through forward
integration has also forayed into steel making and power generation through the renewable energy
route. The company has 87.5 MW wind power energy and has also set up a mini steel mill in Gujarat
to recycle steel scraps using green wind energy to manufacture TMT Bars. The company is currently
setting up 60 MW power plants out of the waste heat emanating from the coke making process, while
over next few years’ targets to increase metallurgical coke making capacity to 4 MTPA along with
240 MW of waste heat based power plants.

 The Group has eminent independent professional directors and is headed by Mr Arun Kumar
Jagatramka, a qualified Chartered Accountant with an all India 1st rank and gold medal. The group is
all set to emerge as a global resource entity with core focus on coking coal and coke.

 Credit rating agency, CARE has retained AA- rating on Rs.726.39 crore long term bank facilities of
Gujarat NRE Coke. The rating agency has also retained PR1+ rating on Rs 1,230 crore short term
bank facilities of the company. Further, the company has reaffirmed PR1+ rating assigned to Rs 100
crore commercial paper of the company.
 BSE May 24,15:59 NSE May 24,15:57
Day's High | Low 16.55 | 16.05 Day's High | Low 16.50 | 16.10
Day's Volumes 178,599 Day's Volumes 509,563
52Wk High | Low 52.50 | 14.80 52Wk High | Low 52.60 | 14.70
Open Price 16.10 Open Price 16.30
Turnover 5,632,877.00 Turnover 14,755,395.00
Deliverable Vol. 131,010 Deliverable Vol. 522,452
6 Mth. Avg. Vol. 682,668.40 6 Mth. Avg. Vol. 707,845.75

Performance in FY

 The steel industry witnessed recovery during the financial year 2010-11. Consequently, coking coal
and met coke being major raw material for steel industry and market, also witnessed consolidation
with rise in prices.
 The Company reported higher income from operations amounting to Rs.325.96 Crores during the
financial year ended 31st March, 2011 as compared to Rs 246.98 Crores during the previous year as a
consequence of better realizations and a continuous focus on cost management during the year under
review.
 Consequently, the net profit after tax earned during the financial year ended 31st March, 2011 was
higher at Rs. 102.65 crores as compared to Rs. 51.87 crores during the previous year.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 1.0 1.1 0.8
Ratio
Long Term 0.8 0.8 0.6
Debt-Equity
Ratio
PBIDTM 16.5 18.2 24.7
(%)
ROCE (%) 7.4 8.0 16.0
RONW (%) 3.9 3.7 16.7
PE 29.8 101.9 9.5
EBIDTA 339.5 267.9 266.0
EPS 1.7 0.9 2.1

KEY OPPORTUNITY & THREATS

 The increasing demand of steel worldwide with BRIC (Brazil, Russia, India, and China) countries
steadily increasing steel production has caused a severe shortfall of coking coal and met coke world
wide. The supply situation has further worsened with no new good coking coal mines having started
production which can considerably cater to this increased demand. Though this has been a cause of
major concern for the steel producers, however, all these factors attribute to a brighter future for met
coke as well as coking coal producers.
 Scarcity in availability of met coke globally, which may be attributed to a variety of factors, viz., drastic
reduction in Chinese exports, increased demand from new steel plants, etc have provided a good
opportunity for growth to the global met coke industry. Many new steel plants that have come up in
South East Asia and also in India that do not have a captive met coke plant, which further provides an
excellent opportunity for merchant coke producers in India and elsewhere to expand and grow.

 However, China being the largest consumer of both coking coal and met coke plays a critical role in
determining its global demand and supply and consequently, the prices of both. Therefore, any major
shift in policy by China may pose a threat to the industry. Most of the global steel plants use blast
furnace route for manufacturing steel and in the process creates huge demand for coking coal.
Fluctuations in demand in global steel industry or increase in use of other mode of steel making i.e.
Electric Arc Furnace by Steel Industry might act as a threat to the met coke and coking coal industry.

KEY RISK

 The Company is exposed to the risk of price fluctuations on raw materials and finished goods.
However, considering the normal correlation in the prices of raw material i.e coking coal and finished
good i.e. met coke, this risk gets reduced/ adjusted over a period of time.
 The Company has a policy to hedge its foreign exchange risk within the defined parameters. As
imports (raw materials etc) exceed exports, the Company suitably hedges the differential from time
to time to appropriately manage the currency risk.

 Coking coal, the critical raw material required for manufacture of met coke is in short supply
internationally resulting in uncertainty in its availability and consequently, its prices. Timely
availability of raw material at reasonable prices is therefore, critical for survival in this industry. The
Company’s strategy of backward integration by acquiring coking coal mines in Australia helps in
minimizing the effect of volatility in prices and secures availability of premium quality hard coking
coal.

 Any act of nature detrimental to the smooth functioning of the mining of Coking coal in Australia as
well as production of metallurgical coke in India, can adversely affect the performance of the
Company.

Recommendations

 Gujarat NRE Coke Ltd the flagship company of Gujarat NRE group is the largest independent
producer of met coke in India, the turnover for the financial year is more than Rs1600 crores with a
reported net profit of Rs. 102.65 crores shows a strong financial position of the company. The
company apparently the only Indian company which owns a coal mines in Australia. CARE has
retained AA- rating on Rs.726.39 crore long term bank facilities of Gujarat NRE Coke. The rating
agency has also retained PR1+ rating on Rs 1,230 crore short term bank facilities of the company,
which shows a good creditability position of the company. Hence I would the recommend the bank to
look at GUJARAT NRE COKE LTD as prospective client in near future.
 HINDUSTAN COPPER LIMITED

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

Board of Directors
Chairman & Managing Director Shakeel Ahmed
Director (Operation) Kailash Dhar Diwan
Director (Personnel) Anupam Anand
Company Secretary C S Singhi
Director (Mining) Avijit Ghosh
Part Time Non Official Ind.Dir Apurba Kumar Sarmah
Raajnish Gossain
Official Director (Part time) G Srinivas
Anjali Anand Srivastava
Director (Finance) K K Saberwal
Part Time Non Official Ind.Dir Arvind Sahay
G P Joshi
Puneesh Kapoor

 Hindustan Copper Limited (HCL), a public sector undertaking under the administrative control of the
Ministry of Mines, was incorporated on 9th November 1967. It has the distinction of being the nation’s
only vertically integrated copper producing company as it manufactures copper right from the stage of
mining to beneficiation, smelting, refining and casting of refined copper metal into downstream
saleable products.
 CRISIL has placed the outstanding AAA rating assigned to Hindustan Copper Ltd's 15cr Non-
Convertible bond programme on rating watch and developing implications.

 The Company markets copper cathodes, copper wire bar, continuous cast copper rod and by-products,
such as anode slime (containing gold, silver, etc.), copper sulphate and sulphuric acid. More than 90%
of the sales revenue is from cathode and continuous cast copper rods. In concluded financial year
 2006-07, as per provisional estimates, the Company has earned a all time highest net profit pf Rs 331
crore (~USD 75 million) against a sales turnover of Rs 1800 crore (~ USD 420 million). HCL’s mines
and plants are spread across four operating Units, one each in the States of Rajasthan, Madhya
Pradesh, Jharkhand and Maharashtra as named below:

1. Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan

2. Indian Copper Complex (ICC) at Ghatsila, Jharkhand

3. Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya Pradesh

4. Taloja Copper Project (TCP) at Taloja, Maharashtra

 Development of Banwas Copper Deposit: North of Khetri mine is the Banwas Copper Deposit which
has an ore reserve of 25 million tonnes @1.69% Cu. A contract for 5 years has been awarded to
develop this deposit with a decline from surface connecting underground working. With the
exploitation of Banwas deposit, about 6.0 lakh tonne of ore @ 1.10% Cu ore per annum will be mined
from the 5 year onwards using existing infrastructure of Khetri mine.
SHARE VALUE
BSE May 24,15:59 NSE May 24,15:55
Day's High | Low 249.75 | 245.00 Day's High | Low 249.65 | 244.55
Day's Volumes 82,475 Day's Volumes 112,015
52Wk High | Low 320.00 | 146.25 52Wk High | Low 321.95 | 146.00
Open Price 247.00 Open Price 246.75
Turnover 23,432,748.00 Turnover 28,721,845.10
Deliverable Vol. 8,190 Deliverable Vol. 12,324
6 Mth. Avg. Vol. 8,712.70 6 Mth. Avg. Vol. 0.00

Performance in FY
 Hindustan Copper has reported a sales turnover of Rs 269.98 crore and a net profit of Rs 46.46 crore
for the quarter ended Sep '11.
 Hindustan Copper has announced its first quarter results. The company's Q1 net profit was up 132% at
Rs 60.4 crore versus Rs 26 crore. Its net sales were up 19% at Rs 269 crore versus Rs 226 crore.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 0.0 0.0 0.1
Ratio
Long Term 0.0 0.0 0.1
Debt-Equity
Ratio
PBIDTM 28.6 16.6 2.3
(%)
ROCE (%) 28.6 20.6 1.1
RONW (%) 19.0 14.8 -0.8
PE 128.8 319.4 0.0
EBIDTA 359.6 237.2 32.2
EPS 2.3 1.7 0.0
Opportunities and threats
 The Company has adequate opportunity to augment its mining capacity by increasing production from
the existing mines and by developing new ore resources besides reopening some of the mines that were
closed in the past. Accordingly, the Company has reoriented its business strategy to take advantage of
the situation.
 The export market in the Asian region presents a good opportunity for the Company.
 Threat perception for the Company includes intense volatility in world copper prices and the rising
cost of inputs, particularly power and fuel due to global inflationary trends. Furthermore, it is
inevitable that the Company may also witness threat to its market share on account of competition
from imports and other domestic manufacturers.
 During the last few years, there has been a paradigm shift in the Indian copper industry where India
has now become a net exporter of refined copper from the earlier position when bulk of its refined
copper requirements were imported.

Key Risks
 Main business risks faced by HCL continue to be the volatility of LME price of copper and the
hardening of rupee against US$ as these two factors determine the selling price of copper. As the
capacity of the private players is far in excess of country’s demand, the excess of production is
normally exported by them. With the economic downturn in the export market, there is a risk that these
players would push their material in the local market bringing the price further down.
 The threat perception for the Company includes great volatility of world copper prices and increasing
cost of inputs. Further, HCL may also witness threat to its market share on account of intense
competition from imports and other domestic manufacturers.

Recommendations
 Hindustan copper limited is public sector undertaking, which is India’s only integrated copper
manufacturing company with a huge production capacity across various plants with an annual turnover
of 2011-12 stands at more than Rs.1200 crores and the EBITDA at Rs. 435 crores which shows a
strong financial position of the company. On the other hand CRISIL has placed the outstanding AAA
rating for the company which shows a strong creditability situation for the company. Hence I would
suggest the Bank look at this Public sector Company as prospective client by looking at its strong
background.
 TECHNO ELETRIC & ENGINEERING CO. LTD

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

BOARD OF DIRECTORS
Name Designation
K K Rai Independent Director
K M Poddar Independent Director
K Vasudevan Independent Director
P P Gupta CEO
P P Gupta Managing Director
S N Roy Independent Director
V D Mohile Independent Director
 For more than a century, India invested in conventional energy forms. The country is now at an inflection
point. Extending to renewable energy forms without emission, pollution, and carbon footprint and resource
depletion. Techno Electric is one of the first companies to make this happen through aggressive capacity
creation in the renewable energy segment. The result: A business model that reconciles conventional energy
management (through EPC contracting) on the one hand with non conventional energy capacity on the other.
 CRISIL has provided Techno Electric & Engineering Co Ltd (Techno) to ‘Negative’, while reaffirming the
rating on the same at ‘AA-‘; the rating on the short-term debt Programme and other short-term bank loan
facilities has been reaffirmed at ‘P1+’ .
Parentage
Techno Electric is a leading EPC services company in India’s power sector. The Company provides engineering,
procurement and construction services to all three industry segments (generation, transmission and distribution).
It was engaged in setting up (in one capacity or other) over 50% of India’s thermal power generating capacity
and a major portion of the national power grid. The Company also possesses specific domain knowledge that
enables it to serve the EPC needs of power, steel, fertilizer, metals and petrochemicals sectors, among others.
Businesses
The two major business segments of the Company’s presence comprise engineering, procurement and
construction (EPC) for the power sector and power generation (non-conventional).
Presence
The Company is headquartered in Kolkata, West Bengal (India) with marketing offices in three Indian states.
Listing
The Company’s equity shares are listed and actively traded on the Bombay Stock Exchange (BSE) and the
National Stock Exchange (NSE). The promoters held 54.97% of the Company’s equity as on March 31, 2011.
Team
The Company employs 500 professionals (engineering, commercial, graduates and post graduates). The
engineering team possessed an average experience of more than 25 years as on March 31, 2011.

SHARE VALUE (Face value Rs. 2)

BSE May 24,15:59 NSE May 24,15:44
Day's High | Low 177.70 | 172.00 Day's High | Low 176.90 | 172.55
Day's Volumes 42,552 Day's Volumes 7,742
52Wk High | Low 280.00 | 164.00 52Wk High | Low 270.00 | 165.50
Open Price 172.50 Open Price 174.00
Deliverable Vol. 2,014 Deliverable Vol. 859
6 Mth. Avg. Vol. 0.00 6 Mth. Avg. Vol. 0.00
Performance in FY

 During the year, the Company has achieved a turnover of Rs. 63,183.54 lacs from construction activities and
Rs. 3,620.35 lacs from generation activities. The Company has also earned other income amounting to Rs.
5,246.84 lacs and profit after tax amounting to Rs. 11,381.37 lacs. The EBITDA stand at Rs. 164.34 Crores
and reported PAT (Profit after tax) stands at Rs. 113.82 crores, which is 48%, jump from the previous year.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 0.0 0.0 0.1
Ratio
Long Term 0.0 0.0 0.1
Debt-Equity
Ratio
PBIDTM 28.6 16.6 2.3
(%)
ROCE (%) 28.6 20.6 1.1
RONW (%) 19.0 14.8 -0.8
PE 128.8 319.4 0.0
EBIDTA 359.6 237.2 32.2
EPS 2.3 1.7 0.0
Key opportunities & Threats

 The Company operates in power generation through wind and commissioned 30 wind turbine generators in
Tamil Nadu. Fiscal incentives and promotional measures initiated by the Ministry of New and Renewable
Energy (MNRE) have helped the accelerated wind power development in India.
 The incentive package available for wind energy projects included tax concessions like 80% accelerated
depreciation, tax holiday for power-generation projects, loans from IREDA, customs and excise duty relief;
liberalized foreign investment procedures, among others. Preferential tariffs are being reviewed by state
Electricity Regulatory Commissions (ERCs).

 The report of research houses estimates Rs. 7,50,000 crore is likely to be invested in the power sector by
2013-14, out of which, Rs. 4,80,000 crore is expected to be invested in the power-generation area.

 Nearly half of the investments in the power-generation space are likely to be made by the private sector. This
has created opportunities in the transmission sector as well. In order to encourage private sectors in the
transmission line business, the government issued guidelines for private sector participation.

Key Risks

 The major risk in the power-generation business, apart from successful commissioning of the projects on
time, is regulatory risk. The regulatory set-up at the State and Central levels was created following the
Electricity Act, 2003; the regulatory process is undergoing regular changes as the Act is being selectively
implemented. However, the Company is present in the non-conventional energy segment only and the new
incentives like GBI, REC, among others, are being periodically introduced to make investments in this sector
more attractive to the conventional power-generation business. Further, the Company has a 20-year firm
tariff with state utilities in Tamil Nadu, and Karnataka (10 years), and no such risks are relevant in this case.
The EPC business engaged in by the Company is working capital-intensive. There is always a question of
risk involved owing to longer execution periods, fluctuations in material and equipment prices and costs
overrun owing to delay in project completion, among others. This is a matter of concern and the Company
has adapted to timely decision-making and internal policy measures to minimize risk. There is a lack of
skilled personnel in the middle management across the power sector in which the Company operates.
However, the Company’s policy to recruit fresh graduates and diploma-holders and provide training to them,
both at office and on site, has thus far worked well to minimize risk to.

Recommendations

 Techno Electric is one those impressive companies which has a very impressive track record and certainly
has a very bright future as being an EPC services enterprise. If we look at the turnover which about Rs. 630
crores and good profitability of Rs. 113.82 which looks very healthy. CRISIL believes that Techno will
continue to benefit during this period from its established market position backed by strong customer
relationships and the healthy growth prospects of the end-user industries. The rating may be downgraded if
Techno contracts larger-than-expected debt to fund its capex programme, thereby weakening its capital
structure, or if there is significant deterioration in the profitability or working capital cycle of the company,
leading to decline in its overall credit risk profile. But looking in a broader perspective we can certainly say
that Techno Electric does look fit to be a part of being a prospective client of BNP Paribas.
 MCNALLY BHARAT ENGINEERING COMPANY LIMITED

COMPANY OVERVIEW / FINANCIAL ANALYSIS / MAJOR DEVELOPMENTS

BOARD OF DIRECTORS
Name Designation
A Khaitan Director
Aditya Khaitan Additional Director
Asim Kumar Barman Director
Deepak Khaitan CEO
Deepak Khaitan Executive Chairman
P H Ravi Kumar Independent Director
P K Chandra Whole Time Director & COO
Prabir Kumar Ghosh Group CFO
Prabir Kumar Ghosh Whole Time Director
S R Dasgupta Director
Sudipto Sarkar Independent Director
Utsav Parekh Director
V K Verma Director

McNally Bharat Engineering Company Ltd. (MBE) is one of the leading Engineering Companies in India
engaged in providing turnkey solutions in the areas of Power, Steel, Aluminum, Material Handling, Mineral
Beneficiation, Pyroprocessing, Pneumatic Handling of powdered materials including fly ash handling and
high concentrate disposal, coal washing, port cranes, civic and industrial water supply etc. Over 300 plants
have been constructed on turnkey basis by MBE till date. In 2011 we are celebrating our Golden Anniversary
year (1961 - 2011).
The Company, headquartered at Kolkata, is a part of the Williamson Magor Group. The EPC project activity
of the company is managed through separate Business Divisions Groups that assume responsibility for each
activity from concept to commissioning. MBE has been awarded ISO 9001:2008 certification. BE
manufactures a wide range of products required for its various projects through its subsidiary company
McNally Sayaji Engineering Ltd. (MSEL), to whom it provides the requisite technology and design to
manufacture the products. MSEL product range includes crushing, Mobile Crushing and Screening Plants,
screening & milling equipment, pressure vessels, material handling equipment, steel plant equipment, process
equipment like flotation cells, thickeners, slurry pumps etc.

MBE has technical collaborations with some of the world’s leading firms for each of their activities. Some of
our associates include SOLIOS - France, Poltegor- Poland, TPE - Russia, DMT - Germany, Siemens Vai -
France, KCI Cranes - Finland, CODCO - China, GRD Minproc - Australia, Gea Messo - Swiss, MCC (China),
Uralmash Engg. - Russia, Mekhanobr Chormet (Ukraine) etc. BE through its subsidiary MBE Mineral
Technology Pvt Ltd, have acquired in 2009 the Coal & Mineral Technology division of KHD Humboldt
Wedag, a global leader in coal and mineral processing. MBE also has a third subsidiary EWB, Hungary.

SHARE VALUE (Face Value Rs.10)

BSE May 24,13:49 NSE May 24,14:02
Day's High | Low 90.40 | 88.15 Day's High | Low 89.90 | 87.25
Day's Volumes 2,128 Day's Volumes 3,325
52Wk High | Low 181.20 | 79.75 52Wk High | Low 182.95 | 79.55
Open Price 90.40 Open Price 89.90
Deliverable Vol. 4,012 Deliverable Vol. 7,800
6 Mth. Avg. Vol. 80,866.25 6 Mth. Avg. Vol. 20,918.22

Performance in the FY
 During the year, your Company recorded growth in its performance both in terms of Sales and
Profitability. While the total income of the Company has grown from Rs. 1,487 Crores to Rs. 1,775
Crores, the Profit before Tax has gone up from Rs. 53 Crores to Rs. 74 crores and earning per share has
gone up from Rs. 11.16 per share to Rs. 15.41 per share.
 Based on the business scenario within the Country and Company's extended capability, the Company
has set a higher benchmark of performance for the year to come. The Board expects this growth trend,
both in terms of profitability and sales, to be maintained in the coming years.

Key Ratios Mar-11 Mar-10 Mar-09

Years
Debt-Equity 1.0 0.8 0.6
Ratio
Long Term 0.3 0.4 0.2
Debt-Equity
Ratio
PBIDTM 7.9 7.2 8.1
(%)
ROCE (%) 26.2 26.2 27.1
RONW (%) 19.5 16.5 10.4
PE 14.4 26.8 3.6
EBIDTA 138.4 106.2 102.2
EPS 15.2 11.0 10.8

Key opportunities & Threats

 MBE is facing increased competition in Material Handling & Ash handling projects, which have been
its core strengths, due to entry of a large number of players. In addition, ordering for new projects have
slowed down due to delays in land acquisitions, obtaining environmental clearances, coal availability
etc.
 To counter increased competition in domestic markets, MBE is increasingly focusing in International
markets, with the help of the Coal & Mineral Technology Group who are present in China, Russia &
CIS countries, South America, Africa & Indonesia. MBE has opened an office in South Africa and
plans to open more offices in other markets.

Key Risks & Concerns

 The EPC Business as such is exposed to risks at various stages. Increase in raw material prices of steel,
cement and other items, delays at construction sites due to unforeseen circumstances beyond our
control, all add to increase in project costs.
 The company has got in place risk mitigation strategies to minimize the impact of such events.
Moreover, with Oracle based ERP implemented across the company, your company is better equipped
today to monitor all operations on real time basis, thereby taking corrective actions and reducing risk.

Recommendations

 McNally Bharat Engineering Company Ltd. (MBE) is one of the leading Engineering Companies in
India and providing turn key solutions across various areas such as power, steel, aluminum etc. The
company had a turnover of more than Rs.1700 crores and EBITDA stands at Rs.130.21 crores which
strong financial standing which the apparently has maintained for the four years and shows a good
amount of growth in the other financial from those previous years. CARE had assigned a PR 1+ rating
which was assigned on the short term loans, shows a good credibility of the company. Hence I would
recommend the company to look forward to MBE as future prospective client.
 CONCLUSION
The data analyzed of the companies in this project had been done by keeping in the criteria of the
Bank. The various aspects which are looked into before selecting a particular company are:

 Historical Background of the companies

 Background of the parent company or the group it belongs to

 Background of the promoters

 Recent development and news of the companies

 Key Financial figures and shareholding pattern

 Complete analysis of the company and industry to which it belongs.

 Recent Financial Performance

 Top Clients of these companies

Finally, I would like to express that the experience in the course of this six weeks internship with
BNP Paribas Kolkata has definitely helped me to gain a lot of practical knowledge in the field of
corporate banking. The working on this project helped to gain in depth knowledge towards
various functions performed by a corporate bank. The professional exposure that I got by
interacting with esteemed employees and clients of this organization added a lot to my
intellectual capacity.