MIRA
INFORM REPORT
|
Report Date : |
10.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
THE
BOMBAY DYEING & MANUFACTURING COMPANY LIMITED |
|
|
|
|
Registered Office : |
Neville House, J. N. Heredia Marg, Ballard Estate, Mumbai-400 001 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
23.08.1879 |
|
|
|
|
Com. Reg. No.: |
11-37 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L17120MH1879PLC000037 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00159F/MUMT13249F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT2328K |
|
|
|
|
Legal Form : |
A
public limited liability company. The
company's shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business : |
Manufacturing
and Selling of Textiles (Predominantly Cotton) and DMT. It Manufactures and Sells Yarn as well as
Cloth. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD
18500000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is the main company of the Wadia Group. Subject was established in 1879 and
has shown satisfactory progress over the years. Available information indicates high financial responsibility
of the company. Financial position of
the company is good. Reserves
position is strong. Trade relations
are reported as fair. Payments are
reported as correct and as per commitments. The company
can be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Neville House, J. N. Heredia Marg, Ballard Estate, Mumbai-400 001 |
|
Tel. No.: |
91-22-261 8071 / 4520 / 269 3712 / 265 5014 |
|
Fax No.: |
91-22-261 5622 / 265 5014 / 261 4520 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
J N
Heredia Marg, Ballard Estate, Mumbai – 400038 |
|
Tel. No.: |
91-22-22618071/22657895 |
|
Fax No.: |
91-22-22614520/22615014/22615622/22653530 |
|
|
|
|
Factory
1 : |
Spring
mill G. D.
Ambedkar Marg, Near Wadala Telephone Exchange, Naigaon, Mumbai - 400 012 Tel.
No. 91-22-4146050 Fax
No. 91-22-4145038 Textile
mill New
Prabhadevi Road, Mumbai – 400 025 Tel.
No. 91-22-4308351 Fax
No. 91-22-4222085 DMT
plant A-1,
Patalganga Industrial Area, District Raigad, Taluka Khalapur, Maharashtra Tel.
No. 91-2192-50225 Fax
No. 91-2192-50263 |
DIRECTORS
|
Name : |
Mr. Nusli N. Wadla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Keshub Mahlndra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. N. Tata |
|
Designation : |
Director |
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. H. N. Sethna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. S. Kelkar |
|
Designation : |
Director |
|
Age |
61
years |
|
Qualification |
M. Com. |
|
Experience |
37 years |
|
Date
of Joining |
09.10.1972 |
|
Previous
Employment |
Bank of India – Officer |
|
|
|
|
Name : |
Mr. S. Ragothaman |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. K. Hlrjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. M. Palia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nlnu Khanna, |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P. V. Kuppuswamy |
|
Designation : |
Managing Director |
|
Age |
57
years |
|
Qualification |
B.Sc. (Chem), B. Sc. (Chem. Engg.), Post Graduate
Diploma of Indian Institute of Petroleum (Petroleum Refining &
Petrochemicals) |
|
Experience |
33 years |
|
Date
of Joining |
01.08.1979 |
|
Previous
Employment |
Manager – Solvent Alcohol Plant – Nocil |
|
|
|
|
Name : |
Mr. Ness N. Wadia, |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. M. K. Singh |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Surya Kant Gupta, |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name
: |
Mr. P. Govindan |
|
Designation
: |
Secretary |
|
|
|
|
VICE
PRESIDENTS/BUSINESS HEAD |
Mr. Burjor Nariman,
Sr. Vice-President (Corporate Group) Dr. S. C. Basu, Business Head (PSF) Mr. Rajiv Bhatia,
Head-Operations:Retail Initiative Mr. R.
Chandrasekharan, Vice-President (Corporate Group) Mr. S. K. Gupta,
Vice-President (Manufacturing & Commercial) Mr. Bhagaban Kar,
Asst. Vice-President (PSF Manufacturing) Mr. R. Mahindru,
Vice-President - Business Development (Shopping Centre) |
|
|
|
|
GENERAL MANAGERS |
Mr. A. Bhawsingka,
General Manager - Corrmercial & Operations Mr. K. C. Chandani, General
Manager - Engineering Mr. R. K. Gupta,
General Manager - Marketing Mr. Kapur, General
Manager - Processing Mr. K. V.
Krishnamurthy, General Manager - Operations Mr. Nimesh Mehta,
General Manager - Treasury Mr. B. K. Pandya,
General Manager - Manufacturing Mr. P. Phadnis,
General Manager - Corporate Affairs Mr. A. V. Potdar,
General Manager - Personnel & Administration Mr. V. Shanbhag,
General Manager - Commercial Mr. R. Sharma, General
Manager (CTS) Mr. S. K. Tibrewal,
General Manager - Industrial & Wholesale Marketing |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter Group |
1, 66,07,639 |
43.02 |
|
Financial Institutions |
43,57,082 |
11.29 |
|
Nationalised Banks |
45,586 |
0.12 |
|
Mutual Funds |
19,86,117 |
5.14 |
|
Flls |
54,93,030 |
14.23 |
|
GDR Holders |
6,10,245 |
1.58 |
|
Others |
95,05,571 |
24.62 |
|
Total |
3,86,05,270 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Selling of Textiles (Predominantly Cotton) and DMT. It Manufactures and Sells Yarn as well as
Cloth. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Export |
Australia,
Canada, Japan, Middle East, New Zealand, Scandinavia, South Africa, USA and
West Europe. |
||||||||
|
|
|
||||||||
|
Import |
Europe,
Far East Asia and South East Asia |
PRODUCTION
STATUS
|
Particulars |
|
|
Actual Production |
Processing Capacity |
|
Spindles |
|
|
52200 |
933
Mts.Cloth |
|
Looms |
|
|
165000 |
864M. tons Yarn |
|
|
|
|
|
|
|
Packed production |
|
|
|
|
|
Cloth |
|
|
45.548 Mts. |
-- |
|
Yarn |
|
|
0.105 Kgs. |
-- |
|
DMT |
|
|
14134.345 M. Tons |
-- |
|
Waste |
|
|
0.653 Kgs |
-- |
GENERAL
INFORMATION
|
No. of Employees : |
9037 |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
v ABN Amro Bank N V v Standard Chartered Grindlays Bank Limited v BNP Paribas v Canara Bank v Centurion Bank Limited v Citi Bank N.A. v Credit Lyonnais v The Hongkong and Shanghai Banking Corporation Limited v Standard Chartered Bank v State Bank of India v State Bank of Hyderabad v
UTI Bank Limited v
IDBI Bank Limited v
State Bank of Hyderabad v State Bank of Patiala |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
A. F.
Ferguson & Company Chartered
Accountants |
|
|
|
|
Associates/Subsidiaries : |
v
Citergia
Biochemicals Limited v
Nusli
Wadia & Company Limited v
Gerzi
Eastern Limited v
And
few more SUBSIDIARIES v
Archway
Investment Company Limited v
Scal
Services Limited v
Pentafil
Investments Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
5,00,00,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 50.000 |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
4,10,01,829 |
Equity
Shares |
Rs. 10/- Each |
Rs. 410.000 Millions |
|
Less |
|
|
|
|
25,45,259 |
Equity shares bought back and extinguished as at
the year end in accordance with section 77A of the Companies Act, 1956 |
|
(25.500) |
|
Add |
|
|
|
|
1,48,700 |
Equity shares issued under Employees' Stock
Option Scheme |
|
Rs. 1.500 Millions |
|
|
Total |
|
Rs. 386.000 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
386.000 |
385.800 |
385.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4262.300 |
3033.800 |
3474.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4648.300 |
3419.600 |
3860.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4285.100 |
2145.200 |
2225.100 |
|
|
2] Unsecured Loans |
1298.600 |
1399.400 |
1400.900 |
|
|
TOTAL BORROWING |
5583.700 |
3544.600 |
3626.000 |
|
|
DEFERRED TAX LIABILITIES |
26.000 |
106.400 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10258.000 |
7070.600 |
7486.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1243.000 |
1320.900 |
2161.500 |
|
|
Capital work-in-progress |
2750.700 |
593.900 |
61.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1680.200 |
2411.900 |
3602.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2119.500
|
1997.300 |
1678.700 |
|
|
Sundry Debtors |
1585.300
|
727.600 |
635.000 |
|
|
Cash & Bank Balances |
333.400
|
55.100 |
68.400 |
|
|
Other Current Assets |
10.600
|
1.000 |
0.000 |
|
|
Loans & Advances |
1530.300
|
1119.100 |
1281.100 |
|
Total Current Assets |
5579.100
|
3900.100 |
3663.200 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
675.000
|
748.900 |
1420.800 |
|
|
Provisions |
375.700
|
407.300 |
581.300 |
|
Total Current Liabilities |
1050.700
|
1156.200 |
2002.100 |
|
|
Net Current Assets |
4528.400
|
2743.900 |
1661.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
55.700 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10258.000 |
7070.600 |
7486.100 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other
income] |
10383.200 |
10527.000 |
11027.100 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
592.200 |
336.800 |
725.600 |
|
Provision
for Taxation |
(21.200) |
71.200 |
190.600 |
|
Profit/(Loss)
After Tax |
613.400 |
265.600 |
535.000 |
|
|
|
|
|
|
Import
Value |
965.500 |
2748.100 |
NA |
|
|
|
|
|
|
Total
Expenditure |
9791.000 |
10190.200 |
11024.700 |
QUARTERLY
|
PARTICULARS |
30.06.2006 (1ST Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3RD Qtr) |
|
Sales
Turnover |
1202.000 |
1266.100 |
1066.300 |
|
Other
Income |
41.100 |
48.800 |
123.900 |
|
Total
Income |
1243.100 |
1314.900 |
1190.200 |
|
Total
Expenditure |
993.300 |
1121.700 |
965.100 |
|
Operating
Profit |
249.800 |
193.200 |
225.100 |
|
Interest |
43.700 |
51.600 |
67.100 |
|
Gross
Profit |
206.100 |
141.600 |
158.000 |
|
Depreciation |
43.500 |
43.600 |
41.400 |
|
Tax |
21.100 |
12.400 |
14.900 |
|
Reported
PAT |
147.600 |
102.600 |
72.100 |
200606 Quarter 1 - EPS is Basic Status of Investor Complaints for the quarter ended 30.06.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 156 Complaints disposed off during the quarter 156 Complaints unresolved at the end of the quarter Nil * Interest income indicate interest income netted off of Rs. 14.900 million 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 27.07.2006 The Statutory Auditors have carried out a limited review of these results pursuant to Clause 41 of the Listing Agreement. 2. During the quarter ended 30.06.2006, 8,000 Employees' Stock Options granted in the previous year were exercised in respect of which 8,000 equity shares have been issued subsequent to 30.06.2006 and 1,210 options were granted which will vest in June, 2007. 3. A part of the Company's land under Real Estate Development had been converted from fixed assets into stock-in-trade at market value. The difference between the market value and cost of that part of land amounting to Rs 1983.40 million was credited to revaluation reserve in the previous year. Accordingly, cost in respect of real estate is net of revaluation reserve released to the profit and loss account, amounting to Rs. 273.90 million for the quarter ended 30.06.2006 and Rs. 1150.60 million for the year ended 31.03.2006 (includes Rs. 352.200 million for the quarter ended 30.06.2005), being revenue arising on sale of undivided interest in the underlying land pertaining to flats where agreements for sale of such flats have been entered into. 4. DMT plant operations have been temporarily suspended effective 06.03.2006 for tying in the PSF Project being implemented at the same location. Consequently DMT Division recorded a negligible turnover during the current quarter against Rs 1366.50 million in the corresponding period in the previous year and all proportionate expenses related to the DMT business including full depreciation has been charged to revenue of the current quarter. 5. Figures for the previous period have been regrouped / restated wherever necessary.
200609 Quarter 2 - Expenditure Includes Decrease in stock in Trade Rs. 77.80 million Consumption of Raw Material & Purchase of Goods Rs. 533.60 million (*net of insurance claim of Rs 49.700 million) Cost in respect of real estate, net of revaluation reserve Rs 1.10 million Staff Cost Rs 100.60 million Other expenditure Rs 404.20 million Tax Includes Provision for Current Tax Rs 10.40 million Deferred Tax Rs (17.00) million Fringe Benefit Tax Rs 2.00 million EPS is Basic Status of Investor Complaints for the quarter ended 30.09.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 159 Complaints disposed off during the quarter 157 Complaints unresolved at the end of the quarter 02 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 27.10. 2006. The Statutory Auditors have carried out a limited review of these results pursuant to Clause 41 of the Listing Agreement. 2. During the quarter ended 30.09.2006, 8,000 equity shares were issued against Employees' Stock Options granted in the previous year and exercised in the quarter ended 30.06.2006. 3. A part of the Company's land under Real Estate Development had been converted from fixed assets into stock-in-trade at market value. The difference between the market value and cost of that part of land amounting to Rs 1983.40 million was credited to revaluation reserve in the previous year. Accordingly, 'cost in respect of real estate' is net of revaluation reserve released to the profit and loss account, amounting to Rs 449.30 million for the half year ended 30.09.2006 (includes Rs. 175.40 million for the quarter ended 30.09.2006) and Rs 1150.60 million for the year ended 31.03.2006 [includes Rs 352.80 million for the quarter ended 30.09.2005 (Cumulative in respect of the half year ended 30.09.2005: Rs 705.00 million)], being revenue arising on sale of undivided interest in the underlying land pertaining to flats where agreements for sale of such flats have been entered into. 4. DMT plant operations have been temporarily suspended effective 06.03.2006 for tying in the PSF Project being implemented at the same location. Consequently, DMT Division recorded a negligible turnover during the current quarter and current half year against Rs 1358.10 million and Rs 2724.60 million, respectively, in the corresponding periods in the previous year. Proportionate expenses related to the DMT business including full depreciation have been charged to the revenue of the current quarter / half year. 5. As part of textile business restructuring plan, the Company has offered a Voluntary Retirement Scheme (VRS) to the workers of its Textile Mills at Worli. Majority of the workers have opted for separation under VRS in September 2006. As per the accounting policy of the Company, Voluntary retirement compensation is to be written-off equally over a period of 5 years. Accounting Standard, 15, Employee Benefits, requires immediate expensing of expenditure on VRS; however, option is given where such expenditure is incurred on or before 31.03.2009, to follow the accounting policy of deferring such expenditure over its pay-back period but the expenditure so deferred cannot be carried forward to accounting periods commencing on or after 01.04.2010. The Company has opted to defer VRS compensation and accordingly, the same would be amortised over a period of less than 5 years i.e. from October, 2006 to March, 2010 on a pro-rata basis. 6. Figures for the previous periods have been regrouped / restated wherever necessary.
200612 Quarter 3 --------------- Notes Expenditure Includes Decrease in stock in Trade Rs 78.70 million Consumption of Raw Material & Purchase of Goods Rs 442.20 million Cost in respect of real estate, net of revaluation reserve Rs 1.00 million Staff Cost Rs 80.80 million Other expenditure Rs 307.40 million Tax Includes Provision for Current Tax Rs 13.00 million Deferred Tax Rs 29.60 million Fringe Benefit Tax Rs 1.90 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter 02 Complaints Received during the quarter 122 Complaints disposed off during the quarter 119 Complaints unresolved at the end of the quarter 05 (since resolved) 1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 24, 2007. The Statutory Auditors have carried out a limited review of these results pursuant to Clause 41 of the Listing Agreement. 2. In the previous year, a part f the Company's land under Real Estate Development had been converted from fixed assets into stock-in-trade at market value. The difference between the market value and cost of that part of land amounting to Rs 1983.40 million was credited to revaluation reserve in the previous year. Accordingly, 'cost in respect of real estate' is net of revaluation reserve released to the profit and loss account, amounting to Rs 591.80 million for the nine months ended December 31, 2006 (includes Rs 142.50 million for the quarter ended December 31, 2006) and Rs 1150.60 million for the year ended March 31, 2006 [includes Rs 357.60 million for the quarter ended December 31, 2005 (Cumulative in respect of the nine months ended December 31, 2005: Rs 1062.60 million)], being revenue arising on sale of undivided interest in the underlying land pertaining to flats where agreements for sale of such flats have been entered into. 3. DMT plant operations have been temporarily suspended effective March 06, 2006 for tying in the PSF Project being implemented at the same location. Consequently, DMT Division (which has been renamed as Polyester Division) recorded a negligible turnover during the current quarter and current nine months against Rs 1337.10 million and Rs 4061.70 million, respectively, in the corresponding periods in the previous year. Proportionate expenses related to the DMT business including full depreciation have been charged to the revenue of the current quarter / nine months. 5. The Company has offered a Voluntary Retirement Scheme (VRS) to the workers of the Textile Mills majority of whom have accepted. As per the accounting policy of the Company and in terms of the transitional provisions of Accounting Standard-15, VRS compensation paid out is being amortised over the period October, 2006 - March, 2010 on a pro-rata basis. 6. Figures for the previous periods have been regrouped / restated wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.26 |
0.99 |
1.01 |
|
Long Term Debt Equity Ratio |
0.64 |
0.43 |
0.44 |
|
Current Ratio |
1.37 |
1.03 |
0.93 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Asset |
1.59 |
1.47 |
1.23 |
|
Inventory |
5.38 |
6.15 |
5.42 |
|
Debtors |
9.57 |
16.60 |
16.93 |
|
Interest Cover Ratio |
4.36 |
2.58 |
3.74 |
|
Operating Profit Margin (%) |
8.47 |
5.00 |
9.47 |
|
Profit Before Interest and Tax Margin (%) |
6.94 |
3.29 |
6.00 |
|
Cash Profit Margin (%) |
7.07 |
3.30 |
6.71 |
|
Adjusted Net Profit Margin (%) |
5.54 |
1.59 |
3.24 |
|
Return on Capital Employed (%) |
9.42 |
5.15 |
8.04 |
|
Return on Net Worth (%) |
16.96 |
4.93 |
8.71 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.647.00/- |
|
Low |
Rs.588.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Bombay Dyeing & Manufacturing Company was incorporated in 1879 to set up the country's first indigenous yarn dyeing facility, to cater to the powerlooms which were, till then, totally dependent on yarn dyed abroad. It started with grey yarn in 1895, and soon produced a surplus which was exported to China. Today, it is one of the largest manufacturers in the composite sector of the Indian textile industry. In 1940, the company shipped its first batch of exports and, over the years, established a market in US, UK, Europe, Gulf and Soviet Union.
In 1981, Bombay Dyeing obtained licence to manufacture dimethyl
terephthalate (DMT), a raw material used to manufacture polyester staple fibre,
polyester filament yarn, film and engineering plastics. It commenced commercial
production in 1986 and further enhanced the capacity from 60,000 tpa to
1,65,000 tpa in technical collaboration with Glitsch, a division of Foster
Wheeler Corporation, US.
In December 1993, it came out with a GDR issue and spent Rs 241.8
millions (US $ 7.7 mln) to modernise the spinning department at its textile
mills to improve quality for export and to install processing equipment for
product diversification. Archway Investment Company, Scal Investments, Scal
Services, Pentafil Investments, Megapode Airlines were ceased to be the
subsidiaries of Bombay dyeing.
Scal Investments Limited, a wholly owned subsidiary of the company was
amalgamated with the company with effect from 01.10.2000. In 2000-2001 the DMT
Division obtained ISO 14001 certification.
During 2001-02 the company made a buy back of 18,26,554 equity shares at
an average price of Rs.40.70 per share. The company brought back 549981 equity
shares at an average price of Rs.46.47 and extinguished the same.
During October,2002 the company entered into a joint venture with
'Proline India Ltd' and transferred its Readymade Garment business. As on
March,2003 the company divested the major part of its holdings in the erstwhile
subsidiaries viz Archway Investments Company Ltd,Scal Services Ltd and Pentafil
Investments Ltd.
As a part of the restructuring the company's textile division and
consolidation of its manufacturing facilities at one location, the company
disposed of the old equipment at Spring Mills and rightsized the workforce. 450
positions were reduced under a scheme of voluntary separation resulting in
considerable cost saving. The company's textile division is also setting up
processing and stitching facility at an aternate location in Maharashtra. Further
DMT Business of the company is going a head with downstream project for
manufacture of polyester staple fibre at the existing DMT Plant Site with an
capacity of 165000 tpa and this project is expected to be completed in the
third quarter of 2006.
During 2004-05 the company's new real estate division took initial steps
to build the organization and was in a position to develop the two properties
spring mills, Dadar and Textile Mills, Worli. But the Spring Mills developent
plan was challenged by Public Interest Litigation (PIL) which was filed in
February 2005. However this was subject to the final disposal of the case in
the appropriate Court, as also the adherence to and in conformity with the
orders of the Supreme Court dated 11.05.2005.
During 2005-2006, the Real Estate division commenced the development of
two properties- Spring Mills, Dadar and Textile Mills, Worli. The First Phase
of Spring Mills Project commenced which includes a Town/Shopping Centre
development serving Central Mumbai and its residents. The development of
Textile Mills, Worli has commenced in phases.
The companies Textile division was confered with the 'Best Brand in the Home
Fashion Category'- by Images Fashion Forum 2006 and 'Home and Lifestyle
retailer of the year 2005' instituted by ICICI Bank and KSA Technopak.
COMPANY RESULTS AND DIVIDEND:
The Company's profits grew by 131 % as compared to
last yeas. The increase in the profit is mainly in the Real Estate division.
The earnings of the Textile and DMT divisions have on the other hand shown a
decline. Falling export volume resulting from fierce international competition
consequent upon abolition of quotas arid rise in price of finer varieties of
cotton have had an adverse impact on the results of the Textile division. The
division has chalked out ambitious plans to refurbish the existing retail
network and establish new format stores including shop-in-shops in select
mails. A state-of-the-art greenfield processing unit is also being established
at Ranjangaon near Pune to improve export competitiveness. This is expected to
involve an investment of Rs. 1890.000 Millions.
The financial performance of the DMT Division suffered a setback on
account of unprecedented increase in the international price of oil, lowering
of import duties and unfavourable price differential between the prices of DMT
and Paraxylene, its major raw material. The implementation of the Rs. 4000.000
Millions Polyester Staple Fibre (PSF) Project has progressed substantially and
trial production is expected to commence in the third quarter of the current
financial year. DMT plant operations have been temporarily suspended effective
06.03.2006 for tying in the PSF Project being implemented at the same
location.
The Supreme Court by its judgment on 07.03.2006 has clarified the
regulatory basis of the development of cotton textile mill lands. Accordingly
the Company's Spring Mill land development at Dadar has commenced. Besides a
residential segment the first phase of the Spring Mills Project also includes a
Town/Shopping Centre development serving Central Mumbai and its resents. The
development of Textile Mills at Worli has also commenced in phases in line with
the modernization of the textile activity on the property. The Mumbai real
estate market is buoyant and the demand for large sized residential units has
increased.
The Directors recommend a dividend of Rs. 5/- per share of Rs.5/- each
for the year ended 31.03. 2006, to be paid, if declared by the members at the
Annual General Meeting to be held on 27.07.2006.
TEXTILE DIVISION:
Decline in export volume owing to intense price competition in the
post-quota period led to a 7% drop in sales turnover of the Division to Rs.
3680.000 Millions against Rs. 3930.000 Millions of the preceding year. This
along with increase in input costs impacted profit margins. Contrary to
expectations, cotton prices of finer varieties continue to rule high.
Domestic over-the-counter sales however recorded a 14% jump riding on the
success of new product launches and supporting advertising and marketing
campaigns. Selection of 'Ebony & Ivory' bed and bath marketing campaign
from amongst 121 entries across ail lifestyle and retail brands with special
mention from the IFF jury during 'Images Fashion Award Forum 2006', is a
testimony to Company's efforts in this direction.
In addition to continuing its focus on new product introductions, the
Division has chalked out ambitious plans to refurbish existing retail net-work
and establish new format stores including shop-in-shops in select malls, to
provide world class shopping experience to its customers.
The following awards were conferred on the Division during the year under
review:
'Best Brand in the Home Fashion Category' - by Images Fashion Forum (IFF)
2006.
'Home and Lifestyle retailer of the year 2005' -instituted by ICICI Bank
and KSA Technopak.
To garner greater share of world markets through competitiveness a
state-of-the-art greenfield processing unit is being established at Ranjangaon
near Pune which will also house some of the critical equipments to be relocated
from Mumbai unit for overall consolidation and ease of control. This facility
is expected to be operative from the first quarter of the next financial year.
Out of a total capex of Rs. 1890.000 Millions approved for the purpose, capital
expenditure to the extent of Rs. 860.000 Millions has already been committed.
Simultaneously down-sizing of existing facilities at Mumbai is also being
planned through the voluntary retirement scheme.
In the meantime, the Company is actively engaged in revamping its product
design and development activities along with product rationalisation and
speedier migration to higher value added made-ups.
DMT/PSF DIVISION:
The production and sale of DMT during the year were lower at 1,41,343
tonnes and 1,43,023 tonnes respectively, compared to the previous year. The
turnover was Rs.6300.000 Millions compared to Rs.7450 Millions for the previous
year. Production was adversely affected due to the collapse of 220 KV HT
transmission towers supplying power to the DMT Plant, during the unprecedented
rains on 26.07.2005. The Plant was restarted on 10.08.2005, on alternative 22
KV grid supply while the 220 KV power was restored only on 21.09.2005. DMT
Plant operations have been suspended from 06.03.2006 to enable implementation
of the Polyester Staple Fibre (PSF) Project located at the same site. This was
necessary as, by then, the plant site had received major part of the project
equipment and substantial manpower was mobilized for expeditious completion of
the PSF project.
A steep fall in the international prices of Paraxylene and DMT in April
2005 resulted in a substantial write-down of inventories both in pipeline and
in stock, severely affecting the financial performance of the Division. A
reduction of import duty in March 2005 from 20% to 15% (since further reduced
to 10% in March 2006) unfavourable price differential between DMT and
Paraxylene, its major raw material, as well as production losses during
July-September 2005 further aggravated the situation. However, with the
commencement of PSF production expected in the third quarter of the current
financial year, the results of the Division are expected to show
improvement.
DMT Division continued to excel in various Total Quality Initiatives and
received the prestigious 'Sword of Honour' from the British Safety Council
during the year.
REAL ESTATE DIVISION
The Division has commenced the development of the two properties - Spring
Mills, Dadar, and Textile Mills, Worli.
The Spring Mills development, planned in phases, consisting of
residential, commercial, school segments, etc., was delayed due to the Public
Interest Litigation (PIL) filed in February 2005. The PIL had challenged the
2001 amendment to the Development Control Regulation 58, which sets out the
framework of the orderly development of land owned by Cotton Textile Mills.
Aggrieved by the judgment of the Bombay High Court the Company approached the
Supreme Court for relief. In March 2006, the Supreme Court upheld the law and
confirmed that the amended Development Control Regulation 58 does not violate
any environmental laws. Construction on Spring Mill land has commenced. Besides
a residential segment the first phase of the Spring Mills Project also includes
a Town/Shopping Centre development serving Central Mumbai and its
residents.
The development of Textile Mills, Worli has commenced in phases, in line
with the modernisation of the textile activity on the property.
TAXATION
The assessment of the Company for the assessment year 2003-2004 has now
been completed. The department has raised a demand of Rs.35.300 Millions. The
Company is contesting the Demand in appeal and expects to succeed. Consequently
no further provision in the books of accounts is considered necessary. However,
the disputed demand has been disclosed as a contingent liability.
OPPORTUNITIES AND THREATS
Though sudden over build-up of capacities in Asian Region including India
poses a temporary threat, demand supply position is expected to gradually
stabilize and offer enough scope to the Division for leveraging Company's old
established equity in the international markets.
Demand for life-style products amongst the burgeoning middle and high
income consumers at home continues unabated. Consequently the market for
premium home textiles is growing at a rapid pace, largely fueled by the
explosive growth in the housing sector, reduction in homeowners' age and high
international awareness. Bombay Dyeing, a leader in the Home Fashion Category,
synonymous with Bed & Bath products has an edge in terms of exploiting this
opportunity.
The Division also visualises considerable growth on the export front as the
advantages of a low cost competition accrue to it once the processing facility
at Ranjangaon commences operation.
OUTLOOK
Overall outlook appears promising with growing markets fueled by changing
consumer lifestyle in India and neighbouring countries.
Shifting of sourcing by developed countries, main consuming centres, to
Asian Region offers significant growth prospects to Indian Industry.
Cotton prices are expected to remain steady during the current financial
year given the general forecast of a good crop in the ensuing season.
INDUSTRY STRUCTURE AND DEVELOPMENT
Bombay Dyeing is the largest producer of DMT in the country and has been
a merchant seller of the product since inception. PTA is an alternative raw
material to DMT. During the current year, substantial PTA production capacity
is being added. Also, large capacities of Polyester Staple Fibre (PSF) and
Polyester Filament Yarn (PFY) based on Continuous Polymerization are being
added. Hence, the Company has forward integrated into PSF manufacture to
convert its entire DMT production. The PSF Plant is expected to come on line in
the last quarter of this calendar year. This capacity is expected to represent
around 15% of the country's capacity.
OPPORTUNITIES AND THREATS
With the reduction in Excise Duty on PSF from 16% to 8% and reduction in
Customs Duty from 15% to 10% in the recent fiscal budget, a major growth thrust
is expected to take place in the downstream Textile Industry, with the addition
of spinning/weaving/processing capacities to cater to domestic and
international customers. Hence, even though PSF supply will outstrip demand in
the next couple of years due to commissioning of large capacities this year, in
the longer term the entire domestic PSF capacity is exk acted to be absorbed by
the market.
OUTLOOK
The Company's PSF Plant is based on latest technology and is expected to
give better performance quality-wise and cost-wise compared to many of the
earlier plants. Further, the Plant is built to produce a range of PSF products
including Speciality Fibres. The Company hopes to achieve market penetration
based on these strengths as well as its strong TOM culture. However in the near
future, the Company may have to resort to export markets to ensure sale of its
total production.
The Wadias' first venture, over 250 years ago, was in the area of ship building, more than 355 ships were designed and built by the Wadias, including men-of-war for the British Navy. It was on one such ship that the American National Anthem was composed, and on another Wadia built deck that the 'Treaty of Nanking', ceding Hongkong to England, was signed.
The company's fixed assets of important value include leasehold and freehold land, buildings, plant & machinery, furniture, motor vehicles, etc
As per Website Details
The Spring Mills began operations in 1903 Emerging opportunities : With the wave of industrialization in the 19th century, trading grew, and with it, opportunities for new areas of business. In 1879, Bombay was next only to New Orleans as the world's largest cotton port. It was at this time that Nowrosjee Wadia set his sights on India's mushrooming textile industry. On August 23rd, in a humble redbrick shed, he began a small operation. Here, cotton yarn spun in India was dip dyed by hand in three colors-turkey red, green and orange-and laid out in the sun to dry.
Humble opportunities : The Bombay Dyeing & Manufacturing Co. Ltd. had been born. A modest beginning for a company that was to grow in the following 115 yr. into one of India's largest producer of textiles. Along the path of growth and diversification, Bombay Dyeing has spawned dozens of other companies. In technical and financial collaboration with world leaders, such companies have pioneered the manufacture of various chemicals and have grown to be leaders in their new fields. It was more than just a company that was born in 1879, a legacy was born. A legacy that would give rise to one of India's most respected business houses
Bombay Dyeing has two main streams of business. Textile is a dominant activity for which the company has advanced facilities.
Each of Bombay Dyeing's five manufacturing facilities is of International
standards. Weaving facilities include technology from world leaders such as
Sulzer.Bombay Dyeing has 519 Sulzer Projectile Machines in widths of 130",
142", 153" and 169".
In addition the company has 123 Sulzer Airjet Machines in widths of 110"( with tucked in selvedge) and 75" (with fringe selvedge). The Ruti Automatic Looms ranging in widths of 40" to 110" totaling 1,260 are gradually being phased out and substituted by the latest in weaving technology.
The Spinning and Winding facilities are equipped with Schlafhorst Autocore
Rotors, Auto Corner Winding Spindles and Schweiter CA - 11 Spindles with an
installed capacity of 135,336 Ring Spindles.
Today the daily production at Bombay Dyeing exceeds 300,000 meters of fabrics. Facilities are available to produce bleached fabric upto 120",dyed and printed fabric upto 98" and grey fabric upto 124
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.06 |
|
UK
Pound |
1 |
Rs.86.34 |
|
Euro |
1 |
Rs.57.46 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|