MIRA
INFORM REPORT
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Report Date : |
08.05.2007 |
IDENTIFICATION DETAILS
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Name : |
DIC INDIA LIMITED |
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Registered Office : |
Transport |
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Country : |
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Financials (as on) : |
31-12-2005 |
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Date of Incorporation : |
02/04/1947 |
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Com. Reg. No.: |
21-15202 |
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CIN No.: [Company
Identification No.] |
L24223WB1947PLC015202 |
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TAN No.: [Tax
Deduction andCollection Account No.] |
CALC00179E |
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PAN No.: [Permanent
Account No.] |
AABCC0703C |
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Legal Form : |
Public Limited liability company. The company’s shares are listed on
Stock Exchanges |
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Line of Business : |
Manufacturer of printing inks, surface coatings and allied products |
RATING andCOMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial andoperational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 4000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well - established and reputed company having
satisfactory track. Directors are reported as experience and respectable
businessmen. Trade relations are reported as fair. Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be considered as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered/Corporate/factory
Office : |
Transport |
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Tel. No.: |
91-332449 6591-6, 2449 3984/85, 2449 2345/46 |
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Fax No.: |
91-33 2449 5267 / 2311 / 0433 |
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E-Mail : |
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Factory 1 : |
Chandivali Farm, Off |
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Factory 2 : |
7, D.L.F. Industrial Area, Shivaji Marg, New Delhi-110 015 |
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Factory 3 : |
C-55 A&B, Phase II, Dist. Gautam Budh Nagar, Noida,U.P.- 201 305(Utter Pradesh) |
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Factory 4 : |
Plot No. 633 &634, G.I.D.C. Industrial Estate, Phase IV, Vatva, Ahmedabad
– 382 445 ( |
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Factory 5 : |
60, |
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Factory 6 : |
66A, Bommasandra Industrial Area, |
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Factory 7 : |
66B, Bommasandra Industrial Area, |
DIRECTORS
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Name : |
Mr. Jagdish Narain Sapru |
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Designation : |
Chairman |
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Name : |
Dr. Prabir Kumar Dutt |
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Designation : |
Managing Director |
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Name : |
Mr. Bodi Singh Kampani |
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Designation : |
Wholetime Director |
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Name : |
Mr. Dipak Banerjee |
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Designation : |
Director |
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Name : |
Mr. Hisato Tanemura |
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Designation : |
Director |
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Name : |
Mr. Rasendu Bhushan putatunda |
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Designation : |
Director |
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Name : |
Mr. Masayuki Saito |
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Designation : |
Director |
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Name : |
Mr. Paul Koek |
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Designation : |
Director |
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Name : |
Dr P K Dutt |
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Designation : |
Managing Director |
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Date of Birth/Age : |
64 year old |
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Qualification : |
M.Tech, Ph.D |
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Experience : |
41 years |
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Date of Appointment : |
2.5.1984 |
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Others Directorship: |
Managing Director, Coates Brothers (WA) Limited, |
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KEY EXECUTIVES
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Audit Committee: |
Mr. D Banerjee (Chairman) |
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Mr. R B Putatunda |
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Mr. P Koek |
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Administrative Committee: |
Mr. J N Sapru |
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Dr. P K Dutt |
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Mr. B S Kampani |
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Mr. D Banerjee |
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Mr. R B Putatunda |
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Remuneration Committee: |
Mr. J N Sapru (chairman) |
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Mr. D Banerjee |
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Mr. M Saito |
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Management Committee: |
Dr. P K Dutt |
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Mr. S Bhaumik |
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Mr. T B Chatterjee |
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Mr. A Mukhopadhyaya |
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Mr. B S Kampani |
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Mr. J L Basu |
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Mr. A D Chatterjee |
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Mr. R G Ganguly |
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Mr. N R Sharma |
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Mr. A Puri |
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Name : |
Mr. Timir Baran Chatterjee |
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Designation : |
Vice President andCompany Secretary |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of
Promoter and Promoter Group2 |
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Indian |
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Bodies Corporate |
4527888 |
65.76 |
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Sub - Total |
4527888 |
65.76 |
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Total
shareholding of Promoter and Promoter Group |
4527888 |
65.76 |
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Public
Shareholding |
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Institutions |
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Mutual Funds/UTI |
62359 |
0.91 |
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Financial Institutions/Banks |
424 |
0.01 |
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Central Government/State Government(s) |
240 |
0.00 |
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Insurance Companies |
348989 |
5.07 |
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Sub - Total |
412012 |
5.98 |
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Non-Institutions |
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Bodies Corporate |
289008 |
4.20 |
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Individuals - |
1237736 |
17.98 |
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Individuals - |
399346 |
5.80 |
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Any Other (Specify) |
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NRIs & OCBs |
18729 |
0.27 |
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Clearing Members |
818 |
0.01 |
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Sub - Total |
1945637 |
28.26 |
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Total Public
Shareholding |
2357649 |
34.24 |
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TOTAL |
6885537 |
100.00 |
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GRAND TOTAL |
6885537 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of printing inks, surface coatings and allied products. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Printing Inks |
Tonnes |
N.A. |
32,130 |
23,356 |
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Synthetic Resins (+) |
Tonnes |
N.A. |
- |
- |
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Press Room Chemicals |
Tonnes |
N.A. |
480 |
323 |
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Rubber Blankets |
Sq.Yard |
N.A. |
- |
- |
GENERAL INFORMATION
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Bankers : |
v
Bank of v
Standard Chartered Bank v
State Bank of v
The Hongkong and Shanghai Banking Corporation
Limited v
ANZ Grindlays Bank PLC, Vereinigtes Konigreich |
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Facilities : |
Secured Loans : Overdrafts/Working Capital loans From Banks : Rs.35.260 millions Add: Interest Accrud and Due : Rs.0.010 millions Total : Rs.35.270 millions Unsecured Loans
: Short term Loan From Banks : Rs.218.840 millions Commercial Paper Loans : Rs.120.000 millions Other Loan From Banks : Rs.70.000 millions Total : Rs.408.840 millions |
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Auditors : |
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Name : |
Lovelock and lewes |
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Associates : |
(Ultimate Holding Company as certified by
the Management)
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7,000,000 |
Equity Shares |
Rs 10/- each |
Rs.70.000 millions |
Issued, Subscribed andPaid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6885337 |
Equity Shares |
Rs.10/- each |
Rs.68.860
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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68.860 |
68.860 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves andSurplus |
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944.220 |
870.360 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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1013.080 |
939.220 |
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LOAN FUNDS |
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1] Secured Loans |
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35.270 |
33.880 |
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2] Unsecured Loans |
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408.840 |
345.000 |
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TOTAL BORROWING |
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444.110 |
378.880 |
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DEFERRED TAX LIABILITIES |
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50.850 |
59.670 |
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TOTAL |
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1508.040 |
1377.770 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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423.710 |
388.300 |
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Capital work-in-progress |
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27.400 |
15.270 |
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INVESTMENT |
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107.540 |
107.640 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS andADVANCES |
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Inventories |
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387.180 |
325.860 |
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Sundry Debtors |
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953.020 |
846.690 |
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Cash andBank Balances |
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145.240 |
157.980 |
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Other Current Assets |
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145.190 |
55.380 |
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Loans andAdvances |
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Total
Current Assets |
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1630.630 |
1385.910 |
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Less : CURRENT
LIABILITIES andPROVISIONS |
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Current Liabilities |
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631.810 |
478.720 |
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Provisions |
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49.430 |
40.630 |
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Total
Current Liabilities |
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681.240 |
519.350 |
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Net Current Assets |
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949.390 |
866.560 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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1508.040 |
1377.770 |
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PROFIT AND LOSS
ACCOUNT
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PARTICULARS |
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31.12.2005 |
31.12.2004 |
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Sales Turnover |
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2785.550 |
2445.070 |
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Other Income |
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45.230 |
31.990 |
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Total Income |
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2830.780 |
2477.060 |
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Profit/(Loss) Before Tax |
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147.170 |
113.580 |
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Provision for Taxation |
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45.830 |
38.360 |
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Profit/(Loss) After Tax |
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101.340 |
75.220 |
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Earnings in Foreign Currency : |
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Export Earnings |
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159.727 |
120.211 |
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Other Earnings |
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2.763 |
1.925 |
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Total Earnings |
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162.490 |
122.136 |
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Imports : |
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Raw Materials |
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514.139 |
451.852 |
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Stores andSpares |
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5.433 |
2.181 |
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Capital Goods |
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17.386 |
20.346 |
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Others |
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122.653 |
72.489 |
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Total Imports |
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659.611 |
546.868 |
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Expenditures : |
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Expenses |
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592.150 |
545.150 |
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Raw Material Consumed |
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2004.270 |
1741.220 |
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Interest |
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31.760 |
27.720 |
27.720 |
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Depreciation andAmortization |
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49.750 |
45.510 |
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Discount on issue of commercial paper |
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5.680 |
3.880 |
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Total Expenditure |
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2683.610 |
2363.480 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.12.2006 (Full year) |
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Sales Turnover |
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3395.000 |
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Other Income |
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52.100 |
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Total Income |
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3447.100 |
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Total Expenditure |
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3186.500 |
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Operating Profit |
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260.600 |
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Interest |
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|
60.800 |
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Gross Profit |
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199.800 |
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Depreciation |
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54.400 |
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Tax |
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37.600 |
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Reported PAT |
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|
99.900 |
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Dividend (%) |
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350.000 |
QUARTERLY
RESULTS
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PARTICULARS |
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31.0.2007 (1st
Quarter) |
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Sales Turnover |
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901.100 |
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Other Income |
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8.100 |
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Total Income |
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909.200 |
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Total Expenditure |
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842.400 |
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Operating Profit |
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|
66.800 |
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Interest |
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|
20..200 |
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Gross Profit |
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|
46.600 |
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Depreciation |
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|
14.800 |
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Tax |
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|
12.700 |
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Reported PAT |
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|
20.300 |
200703 Quarter 1
NOTES:
EPS is Basic 1.Cost of employee benefits in accordance with the Accounting
Standard-15 (Revised) has been reckoned on an estimated basis in the Quarterly
result. Any variance arising out of actuarial valuation will be effected in the
December 2007 quarter results. 2. No investor complaints were received during
the quarter ended 31.03.2007 and no complaints were pending at the beginning
and end of the quarter. 3. Figures have been regrouped/rearranged wherever
considered necessary. 5. The above results for the quarter ended 31.03.2007
duly reviewed by the Audit Committee were taken on record by the Board of
Directors at its meeting held on 27.04.2007.
KEY RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
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0.42 |
0.44 |
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Long Term Debt-Equity Ratio |
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0.07 |
0.10 |
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Current Ratio |
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1.51 |
1.60 |
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TURNOVER RATIOS |
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Fixed Assets |
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4.28 |
4.14 |
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Inventory |
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8.96 |
9.80 |
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Debtors |
|
3.55 |
3.40 |
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Interest Cover Ratio |
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5.63 |
5.10 |
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Operating Profit Margin(%) |
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7.16 |
6.65 |
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Profit Before Interest And Tax Margin(%) |
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5.60 |
5.03 |
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Cash Profit Margin(%) |
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4.73 |
4.30 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.177.00 |
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Low |
Rs.174.25 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE REVIEW
The Company consumes substantial -amount of petro-based products as raw
material for its manufacturing activities. There was a price hike of
petro-based products due to abnormal increase in crude oil prices. This led to
steep increase in raw material costs for manufacturing activities of the
Company. Though the Company effected a marginal price increase in the products,
the continuous price hike of petro-based products and vegetable oils have led
to shrinking margins and made a negative impact on the Company's overall
profitability. Further, the disruption of activities in the Western Region
caused by flood/inundation in the month of July, 2005 aggravated the situation
further. Despite the difficult operating conditions as enumerated above, the
Company's overall net sales increased from Rs.2445.07 million to Rs.2785.55
million registering a growth of 13-93 % in terms of value and 11.34 % in terms
of volume. The main areas of growth were Sheetfed Inks, UV Inks and News Inks.
Action was in place to cut low margin business, mainly in Liquid Ink and News
Ink (Black) segment and improvement of yield in various units by reducing
handling loss and wastage. This led to an increase in pre-tax profit of
Rs.147.17 million compared to Rs.113-58 million earned in the previous year
registering an increase of 29.57%. The post tax profit witnessed a significant
increase from Rs.75.22 million in 2004 to Rs.101.34 million in the current
year.
FLOOD IN THE
WESTERN REGION
The country witnessed one of the worst natural calamity in the form of
floods in Mumbai and
contaminated with flood water. Certain materials which were also due for
unloading in the Bhiwandi warehouse were completely submerged in the flood
water. Further, certain stocks and the boundary wall at the Company's
manufacturing unit at Chandivali were also affected by the flood The Company
has lodged the necessary claims
with the insurance Company and has also received the full and final
settlement against DCIL's claim at Bhiwandi and the claim for contaminated
stock at Chandivali, Mumbai after deduction of the requisite policy
deductibles. the Company has also received an on account payment for the major
insurance claim for damaged stock at the Bhiwandi godown and the final
settlement of the claim is awaited from the Insurance Company.
DIC COATINGS
The operation of the Company's wholly owned subsidiary, DIC Coatings
India Limited (DCIL), was also adversely affected due to increase in raw
material cost by 3.53%. However, sales during the year, registered an increase
of 5.57% in terms of volume and 22.23% in terms of value. During the year under
review, DCIL regained its share in the Collapsible Aluminium Tubes segment
which had
Company’s Fixed Assets Includes Land-Freehold, Land-Leasehold,
Buildings, Plant andMachinery, Furniture and Equipment, Transport Vehicles,
Computers
Coates of India, incorporated as a private limited company in Apr.'47, was promoted by Coates Brothers & Company (now known as Coates Brothers) as a wholly-owned subsidiary to manufacture and market printing inks and allied products.
The company went public in 1962. Coates Brothers,
During the year 2001 Coates India made a restructuring in their organisation.
As per the restructuring DIC is in the process of reorgnising its holdings into
single entity viz DIC Asia Pacific Pte Ltd. The 51% stake conssiting of 3511624
shares held by Coates Brother Plc
In the second phase DIC Asia Pacific Pte Limitedhas acquired the entire stake
of 59.42% of the paid up capital from Sun Chemical group B.V.,through an
inter-se transfer within the Group Holding. As on December,2002 DIC Asia
Pacific Pte Limitedholds 59.54% stake in Coates of India Ltd.
The first unit to manufacture printing inks, surface coatings and allied
products came up in 1947 in
Coates has diversified into the production of industrial adhesives for which
the technology was supplied by
In March 2001 the company has acquired the entire share capital of Rohit
Industries Private Limitedwith a view to utilise its resources in an effective
manner. Rohit has now become a wholly owned subsidiary of the company. The
installed capacity of Printing Inks was increased from 15060 Tonnes to 17280
Tonnes.
The company has expanded the installed capacity of Printing Ink during the year
2002-03 by 2124 TPA and with this expansion the total capacity has risen to
23376 TPA. The name of the company has been changed during August 2004 from
Coates of India Limited to DIC India Limited.
Website Details:
DIC India Limited has its registered and head offices at
Kolkata and manufacturing facilities at Kolkata,
In keeping with its leadership status in its industry, DIC
India is a truly all-India company.
DIC India is part of Dainippon Ink and Chemicals Inc. of Japan
(DIC). DIC, along with its subsidiaries, are the world leaders in printing inks
with a global market share of nearly 40 per cent. DIC is not only a leader in
Graphic Arts but has a strong presence in printers’ supplies, machinery,
pigments and reprographic products.
DIC India's product range in inks is truly wide their six
factories manufacture inks of diverse kinds including black inks, offset inks,
liquid inks, screen inks and print finish inks. These cover virtually all
printing processes in use in the country today.
The real strength of their impressive product range lies in
the consistently high quality of DIC inks. The focus on quality ensures
uniformly high reliability of the Company’s products and services. The
reliability extends to ensuring both consistent quality as well as,
importantly, timely delivery
DIC India Limited (formerly coats of
CMT REPORT (Corruption, Money Laundering andTerrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.41.00 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.55.58 |
SCORE andRATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial andoperational 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 andfavourable 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 |
|