MIRA
INFORM REPORT
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Report Date : |
11.09.2007 |
IDENTIFICATION DETAILS
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Name : |
DCM SHRIRAM INDUSTRIES LIMITED |
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Registered Office : |
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Country : |
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Financials (as
on) : |
31.03.2007 |
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Date of Incorporation : |
21.02.1989 |
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Com. Reg. No.: |
55-35140 |
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CIN No.: [Company
Identification No.] |
U74899DL1989PLC035140 |
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TAN No.: (Tax Deduction & Collection Account No.) |
DELD06462B DELD06289D |
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PAN No.: (Permanent Account No.) |
AAACD0204C AAACD0229M |
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Legal Form : |
It is a public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Engaged in manufacturing of
chemicals, sugar and textile products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 7100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established
and reputed company having satisfactory track. The company is making
satisfactory progress in its performance. Directors are experienced and resourceful
industrialists. Trade relations are reported as fair. Payments are reported
as slow but correct. The company can be considered
normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-11-2332 1413 (10 Lines)/
91-11-23759300 |
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Fax No.: |
91-11-2331 0765 / 2331 5424 |
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E-Mail : |
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Website : |
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Divisional offices: |
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Tel. No.: |
91-11-2332 1413 (10 Lines) |
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Fax No.: |
91-11-2335 0765 / 2331 5424 |
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E-Mail : |
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Divisional offices: |
1-89, Himalaya House, 23,
Kasturba Gandhi Marg, |
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Tel. No.: |
91-11-2331 8609 |
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Fax No.: |
91-11-2331 8605 |
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E-Mail : |
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Divisional offices: |
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Tel. No.: |
91-11-2331 2267 |
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Fax No.: |
91-11-2331 3494 |
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E-Mail : |
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Divisional offices: |
204-205, |
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Tel. No.: |
91-11-2373 9311 |
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Fax No.: |
91-11-2373 9316 |
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Regional offices: |
208, Marine Charmers, Sir
Vithaldas Thackersey Marg, |
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Tel. No.: |
91-22-22011440/ 22051455 /
22059207 |
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Mobile No.: |
91-9967847733 |
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Fax No.: |
91-22-22031570 |
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Regional offices: |
23/1A |
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Tel. No.: |
91-33-22373411 |
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Corporate Office : |
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Tel. No.: |
91-11-2332 1413 (10 Lines) |
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Fax No.: |
91-11-2335 0765 / 331 5424 |
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E-Mail : |
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Website : |
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Factory 1 : |
DCM SHRIRAM TEXTILES
HRM Premises, Dasna, |
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Factory 2 : |
DAURALA ORGANICS
Daurala, Meerut District - 250221, Uttar Pradesh |
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Tel. No.: |
91-121-2588096
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Fax No.: |
91-123-2788131
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E-Mail : |
http://www.dauralaorganics.com
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Factory 3 : |
SHRIRAM RAYONS
Shriram Nagar, |
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Tel. No.: |
91-744-2424401
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Fax No.: |
91-744-2424403
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E-Mail : |
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Factory 4 : |
INDITAL TINTORIA LIMITED
Matsya Industrial Area, District
Alwar, Rajasthan |
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Tel. No.: |
91-144-2281053
/ 2811053
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Fax No.: |
91-144-2281253
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E-Mail : |
srrayons@jp1.dot.net.in
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Factory 5 : |
DCM REMY LIMITED
Daurala, Meerut District, Uttar Pradesh |
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Tel. No.: |
91-121-2288533
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Fax No.: |
91-1237-288511
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Factory 6 : |
Daurala Sugar Works, Daurala, Meerut District - 250221,
Uttar Pradesh
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Tel. No.: |
91-1237-288096 – 99 |
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Fax No.: |
91-1237-288131 |
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E-Mail : |
dsw@dcmsr.com
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DIRECTORS
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Name : |
Shri Tilak Dhar |
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Designation : |
Chairman & Managing Director |
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Name : |
Shri Alok B. Shriram |
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Designation : |
Dy. Managing Director |
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Name : |
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Designation : |
Whole - Time Director |
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Name : |
Shri Madhav B. Shriram |
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Designation : |
Whole - Time Director |
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Name : |
Shri Atam Parkash |
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Designation : |
Directors |
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Name : |
Shri P.R. Khanna |
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Designation : |
Directors |
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Name : |
Dr. V.L. Dutt |
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Designation : |
Directors |
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Name : |
Shri K.K. Mudgil |
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Designation : |
UTI Nominee |
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Name : |
Shri S. P. Arora |
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Designation : |
IFCI Nominee |
KEY EXECUTIVES
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Name : |
Shri B. P. Khandelwal |
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Designation : |
Company Secretary |
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Name : |
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Designation : |
President |
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Name : |
Shri G. Kumar |
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Designation : |
Chief Operating Officer (Sugar) |
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Name : |
Shri Anil Gujral |
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Designation : |
Chief Operating Officer (Chemicals & Alcohol) |
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Name : |
Shri V.K-Jhingon |
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Designation : |
Vice President and Resident Head (Rayons) |
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Name : |
Shri N.K. Jain |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. K N Rao |
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Designation : |
Chief Operating Officer (Rayons) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
43.53 |
28.46 |
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FIs, Banks & Mutual Funds |
32.01 |
20.92 |
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Others (public) |
77.44 |
50.62 |
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TOTAL |
152.98 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in manufacturing of chemicals,
sugar and textile products. |
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Products : |
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Exports to : |
Europe and |
PRODUCTION STATUS
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Particulars |
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Unit |
Installed Capacity |
Actual Production |
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Sugar |
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Tonnes |
8000 |
155156 |
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Alcohol |
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K.L. |
45000 |
30636 |
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Fine Chemicals |
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Tonnes |
13114 |
5784 |
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Industrial Fibres |
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Tonnes |
15700 |
7000 |
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Carbon-di-sulphide |
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Tonnes |
15 |
901 |
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Anhydrous Sodium Sulphate |
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Tonnes |
7700 |
6090 |
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Textiles |
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Looms Nos. |
-- |
-- |
GENERAL INFORMATION
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Suppliers : |
Ř
Apex Enterprises Ř
Amit Offset Works Ř
Atul Rubbers Private Limited. Ř
Bhatia Metals Ř
Bright Enterprises Ř
DKB Engg. Works Ř
Dashmesh Auto Engineers Ř
Grover & Company Ř
Hind Soka Enterprises Ř
Ř
Indana Rubber Industries Ř
JM Engg. Works Ř
Jugnu Electric Works Ř
Ř
Ř
Mittal Industries Ř
Nacones Private Limited Ř
NK Paper Tube Industries Ř
New Shakti Rewinder Ř
NSP Tech Services Ř
Ř
PL Engg. Works Ř
Ř
Pentagon Turbines Private Limited Ř
Reliable Chemical Industries Ř
Universal Stores Supplying Ř
Vikas Pumps & Projects Ř
CNV Engineering Private Limited. Ř
Flexibles, Flow Chem Industries Ř
GVT Engg. (I) Private Limited. Ř
Maharani Industrial Corporation Ř
Mono Industries, N.D. Enterprises Ř
Pap-Flon Engineering Co. Ř
Pap-Flon Ř
Shefa Engineers Private Limited. Ř
Super Scientific Works Private Limited. |
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No. of Employees : |
2689 |
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Bankers : |
Ř
State Bank of Ř
Punjab National Bank Ř
Oriental Bank of Commerce Ř
State Bank of Bikaner & Jaipur Ř
Punjab & Sind Bank Ř
The United Western Bank Limited Ř
The Hongkong and Shanghai Banking Corporation
Limited Ř
Moradabad Zila Sahkari Bank Limited Ř
Meerut Zila Sahkari Bank Limited. Ř
Ghaziabad Zila Sahkari Bank Limited Ř
Saharanpur Zila Sahkari Bank Limited Ř
Karnataka Bank Limited Ř
Syndicate Bank |
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Facilities : |
SECURED Debentures 5, 00,000 (2004-05
- 5, 00,000) privately placed 10% (as rescheduled) secured redeemable non
convertible debentures of Rs.100 each allotted w.e.f. April 24, 1992.
Rs.33.333 Millions outstanding against the same was rescheduled for
redemption at par in 6 quarterly installments commencing from June 30, 2005.
The installments due for redemption have been redeemed. 2,00,000 (2004-05
- 2,00,000) and 1,00,000 (2004-05 -1,00,000) privately placed 12.50% (as
rescheduled) secured redeemable non convertible debentures of Rs.100 each
allotted w.e.f. April 24,1992 and July 14,1992 respectively, were rescheduled
for redemption at par in 28 equal quarterly installments commencing from
October 15,2004. The installments due for redemption have been redeemed. 2,00,000 (2004-05
- 2,00,000) and 50,000 (2004-05 - 50,000) privately placed 12.5% (as
rescheduled) secured redeemable non convertible debentures of Rs.100 each
allotted w.e.f. April 24, 1992 and July 14, 1992 respectively, were
rescheduled for redemption at par in 28 equal quarterly installments
commencing from December 31,2005. The installments due for redemption have
been redeemed. 8,98,000 (2004-05
- 8,98,000) privately placed 12.50% (as rescheduled) secured redeemable non
convertible debentures of Rs. 100 each allotted w.e.f. June 18, 2001, was
rescheduled for redemption at par in 26 equal quarterly installments
commencing from April 15, 2005. The installments due for redemption have been
redeemed. These debentures
are secured by a first mortgage over all the immovable properties and a first
charge by way of hypothecation of all the movable properties of the Company
excluding all assets of Daurala Organics, a unit of the Company, both present and future (save and
except book debts), subject to prior charges created / to be created in
favour of the Company's bankers for securing borrowings for working capital
requirements, the charges ranking pari-passu with the mortgages and charges
created / to be created in favour of existing first charge holders for their
respective term loans /debentures. Debentures in (a) (iv) above are also
secured / to be secured by second charge on current assets of the Company
excluding those of Dajjrala Organics, a unit of the Company. 8,46,839 (2004-05
- 8,46,839) - Part-C of Rs.50 each, being the non convertible portion of 10%
(as rescheduled) secured redeemable partly convertible debentures of Rs.135
each and 8,31,680 (2004-05 - 8,31,680) 10% (As rescheduled) secured
redeemable non convertible debentures of Rs.60 each allotted w.e.f. February
22, 1994, were rescheduled for redemption in 6 quarterly installments w.e.f.
June 30, 2005. The installments due for redemption nave been redeemed. 2,42,047 (2004-05
- 2,42,047) - Part-C of Rs.50 each, being the non convertible portion of
12.50%(as rescheduled) secured redeemable partly convertible debentures of
Rs.135 each and 2,42,047 (2004-05 - 2,42,047) 12.50% (as rescheduled) secured
redeemable non convertible debentures of Rs.60 each, allotted w.e.f. February
22, 1994 were rescheduled for redemption in 28 equal quarterly installments
commencing from October 15,2004. The installments
due for redemption have been redeemed. 2,38,113 (2004-05
- 2,38,113) - Part-C of Rs.50 each, being the non convertible portion of
12.50% (as rescheduled) secured redeemable partly convertible debentures of
Rs.135 each and 2,40,397 (2004-05 - 2,40,397) 12.50% (as rescheduled) secured
redeemable non convertible debentures of Rs.60 each, allotted w.e.f. February
22, 1994, were rescheduled for redemption in 28equal quarterly installments
commencing from December 31,2005. The installments
due for redemption have been redeemed. These debentures
are secured by way of second charge / mortgage in favour of the trustees on
all or any of the immovable and/or movable properties of the Company
excluding all assets of Daurala Organics a unit of the Company, both present
and future, upon such terms and conditions and in such form and manner as the
Board may determine in consultation with the Trustees but specifically
excluding the current assets, receivables, inventories, book debts (present
and future) and such other specific items of machinery and equipments or any
other assets as are specifically charged to any other lenders or authorities. Banks Cash credits are
secured by hypothecation of stocks/stores, both present and future. Some of
these are further secured by hypothecation of book debts/ receivables and
also by way of second pari-passu mortgage and charge on the fixed assets,
both present and future. Rs.90.909
Millions (2004-05 - Rs.117.204 Millions) are secured by a first mortgage and
charge on all the immovable and movable properties of the Company excluding
all assets of Daurala Organics a unit of the Company, subject to prior
charges created / to be created in favour of the Company's bankers for
securing the borrowings for working capital requirements, the charges ranking
pari-passu with the charges created/to be created in favour of existing first
charge holders for their respective term loans / debentures. Rs.759.5 Millions
(2004-05 - Rs. 12.658 Millions) are secured by a first mortgage and charge on
all the immovable and movable properties (save and except book debts) of
Daurala Organics a unit of the Company, subject to prior charges created / to
be created in favour of the Company's bankers for securing the borrowings for
working capital requirements, the charges ranking pari-passu with the charges
created/to be created in favour of existing first charge holders for their
respective term loans. Rs.11.374
Millions (2004-05 - Rs. 11.480 Millions) are secured by hypothecation of the
specific assets. Others Rs.220.973
Millions (2004-05 - Rs.288.343 Millions) from financial institutions secured
by a first mortgage and charge on all the immovable and movable properties of
the Company excluding all assets of Daurala Organics a unit of the Company,
subject to prior charges created / to be created in favour of the Company's
bankers for securing the borrowings for working capital requirements, the
charges ranking pari-passu with the charges created/to be created in favour
of existing first charge holders for their respective term loans /
debentures. Out of these Rs. 1541.89 Millions (2004-05 - Nil) relating to a
financial institution is further secured / to be secured by second charge on
current assets of the Company excluding those of Daurala Organics, a unit of
the Company. Rs.2.252 Millions
(2004-05 - Rs.11.262 Millions) from a financial institution is secured by
first charge by way of mortgage on all the immovable and movable properties
(save and except book debts) of Daurala Organics a unit of the Company,
subject to prior charges created / to be created in favour of the Company's
bankers for securing the borrowings for working capital requirements, the
charges ranking pari-passu with the charges created/to be created in favour
of existing first charge holders for their respective term loans. Rs.30.000
Millions (2004-05 - Rs.31.700 Millions) from a financial institution is
secured by first charge by way of equitable mortgage on all the immovable and
movable properties (save and except book debts) and a floating charge on the
current assets subservient to the charge on the current assets in favour of
the banks of Daurala Organics a unit of the Company, subject to prior charges
created / to be created in favour of the Company's bankers for securing the
borrowings for working capital requirements, the charges ranking pari-passu
with the charges created/to be created in favour of existing first charge
holders for their respective term loans. Rs.32.004
Millions (2004-05 - Rs.51.639 Millions) from a financial institution as
interest free loan in lieu of trade tax deferment scheme. The loan is secured
by second charge on pari-passu basis on immovable and moveable assets of
Daurala Organics a unit of the Company including its stock of raw materials,
stores, finished stocks, stock in process and all book debts, both present
and future. Nil (2004-05 -
Rs.11.1 Millions) from a financial institution secured by first charge on
immovable and movable assets (except book debts) of the Company's sugar and
distillery units, subject to prior charges created/to be created in favour of
the Company's bankers for securing the borrowings for working capital
requirements, the charges ranking pari-passu with the charges created/to be
created in favour of existing first charge holders for their respective term
loans / debentures. Rs.48.918
Millions (2004-05 - Rs. 116.101 Millions) interest on debentures held by
financial institutions / mutual fund converted into loans, secured by a
mortgage on all the immovable properties and a first charge by way of
hypothecation of all the movable properties of the Company excluding all
assets of Daurala Organics a unit of the Company, both present and future
(save and except book debts), subject to prior charges created/to be created
in favour of the Company's bankers for securing borrowings for working
capital requirements, the charges ranking pari-passu with the charges
created/to be created in favour of existing first charge holders for their
respective term loans/debentures. Rs.43.233
ta@M2004-05 - Rs.141.971 Millions) interest on debentures held by financial
institutions / mutual fund converted, secured by way of second charge /
mortgage on all immovable and movable properties of the Company excluding the
assets of Daurala Organics a unit of the Company, both present and future,
upon such terms and conditions and in such form and manner as the Board may
determine in consultation with the Trustees but specifically excluding the
current assets, receivables, inventories, book debts (present and future) and
such other specific items of machinery and equipment or any other assets as
are specifically charged to any other lenders or authorities. Nil (2004-05 -
Rs.101.00 Millions) are secured by pledge of investments in Omax Autos
Limited. Rs.0.743 Millions
(2004-05 - Rs.1.335 Millions) are secured by hypothecation of the specific
assets. Finance Lease Rs.9.334 Millions
(2004-05 - Rs.2.504 Millions) are secured by hypothecation of the specific
assets. |
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Banking Relations
: |
Satisfactory |
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Auditors : |
A.F. Ferguson and
Company Chartered
Accountants |
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Subsidiaries : |
Ř
Indital Tintoria
Limited Ř
DCM Shriram Leasing
and Finance Limited Ř
DCM Shriram
International B V Ř Hindon River Mills Limited |
|
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Associates: |
Ř
DCM Hyundai Limited Ř
Daurala Organics
Limited Ř
Daurala Foods &
Beverages Private Limited |
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MEMBERSHIPS: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6,50,00,000 |
Equity shares |
Rs. 10.00 each |
Rs. 650.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,5298437 |
Equity shares |
Rs. 10.00 each |
Rs. 152.984 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
153.000 |
152.984 |
137.302 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
15.682 |
|
|
3] Reserves &
Surplus |
1640.000 |
1671.644 |
1462.315 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1793.000 |
1824.628 |
1615.299 |
|
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LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
2289.600 |
1891.195 |
2514.280 |
|
|
2] Unsecured
Loans |
56.600 |
56.293 |
68.860 |
|
TOTAL BORROWING
|
2346.200 |
1947.488 |
2583.140 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
291.327 |
283.972 |
|
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|
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TOTAL
|
4139.200 |
4063.443 |
4482.411 |
|
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
2268.100 |
2050.458 |
1951.903 |
|
Capital work-in-progress
|
143.300 |
172.158 |
155.874 |
|
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|
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INVESTMENT
|
53.600 |
30.815 |
44.815 |
|
DEFERREX TAX ASSETS
|
0.000 |
38.661 |
152.094 |
|
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CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
2212.000 |
1966.534 |
2301.389 |
|
|
Sundry Debtors
|
313.700 |
407.104 |
444.798 |
|
|
Cash & Bank Balances
|
40.600 |
98.064 |
272.969 |
|
|
Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
561.000 |
403.178 |
241.981 |
Total Current Assets
|
3127.300 |
2874.88 |
3261.137 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1333.600 |
980.327 |
976.037 |
|
|
Provisions
|
121.400 |
128.954 |
117.157 |
Total Current Liabilities
|
1455.000 |
1109.281 |
1093.194 |
|
Net Current Assets
|
1672.300 |
1765.599 |
2167.943 |
|
|
|
|
|
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MISCELLANEOUS EXPENSES
|
1.900 |
5.752 |
9.782 |
|
|
|
|
|
|
|
TOTAL
|
4139.200 |
4063.443 |
4482.411 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
7436.800 |
8423.600 |
6602.700 |
|
|
Other Income |
339.000 |
208.800 |
396.300 |
|
|
Stock Adjustments |
0.000 |
(342.000) |
8.500 |
|
|
Total Income |
7775.800 |
8290.400 |
7007.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
57.500 |
493.600 |
359.800 |
|
|
Provision for Taxation |
41.600 |
202.700 |
111.400 |
|
|
Profit/(Loss) After Tax |
15.900 |
290.900 |
248.400 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
3702.600 |
3681.000 |
2934.400 |
|
|
Excise Duty |
1440.900 |
1396.000 |
1280.100 |
|
|
Power and Fuel Cost |
0.000 |
422.700 |
271.900 |
|
|
Other Manufacturing Expenses |
1168.100 |
780.000 |
709.700 |
|
|
Employee Cost |
599.300 |
574.800 |
461.700 |
|
|
Selling and Administration Expenses |
263.600 |
378.700 |
284.600 |
|
|
Miscellaneous Expenses |
227.200 |
229.000 |
388.200 |
|
|
Interest and Financial Charges |
182.700 |
215.300 |
243.800 |
|
|
Depreciation |
133.900 |
119.300 |
73.300 |
|
Total
Expenditure |
7718.300 |
7796.800 |
6647.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 (1st Quarter) |
|
Sales Turnover |
|
|
1386.400 |
|
Other Income |
|
|
7.000 |
|
Total Income |
|
|
1393.400 |
|
Total Expenditure |
|
|
1338.300 |
|
Operating Profit |
|
|
55.100 |
|
Interest |
|
|
73.300 |
|
Gross Profit |
|
|
(18.200) |
|
Depreciation |
|
|
36.100 |
|
Tax |
|
|
(16.900) |
|
Reported PAT |
|
|
(37.400) |
200706 Quarter 1
Notes: 1. unprecedented sugar production has resulted in steep
decline in free sale sugar prices. This coupled with higher State Advised Price
for cane in Uttar Pradesh and relatively lower sugar recoveries in the region
have severely affected margins of the sugar business. 2. In accordance with the
accounting policy consistently followed by the Company, the off-season
expenditure aggregating Rs.51.000 millions (corresponding previous quarter Rs.
97.500 millions) has been deferred for inclusion in cost of sugar to be
produced in the remainder of the year. 3. As per a Scheme of Rehabilitation
approved by BIFR on 24.5.2007 for DCM Hyundai Limited (DHL), a promoted
company, effective from 31.3.2007 the existing equity capital of DHL has been
reduced by 90%. Further, the company has been allotted Rs. 8.600 millions equity
capital and Rs. 128.500 millions. 5%
Optionally Convertible Preference Shares in DHL on conversion of part of the
existing loans/advances. 4. Liabilities/benefits, if any, out of reorganization
arrangement of DCM Ltd. in 1990 will be accounted for if and when they arise.
5. In accordance with the announcement issued by the Institute of Chartered
Accountants of India, the Company has complied with Accounting Standard-15
(Revised) 'Employee Benefits' from April 1,2007.The adjustment on account of
transitional provisions will be dealt with in revenue reserves at the year end.
6. No investor complaint was pending at the beginning of the quarter. One
complaint received during the quarter has been redressed. 7. Previous period
figures have been regrouped / recast, wherever necessary.
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
|
1.61 |
1.89 |
2.50 |
|
Long Term Debt-Equity Ratio |
|
1.16 |
0.82 |
1.25 |
|
Current Ratio |
|
1.50 |
1.18 |
1.31 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
2.78 |
2.49 |
2.51 |
|
Inventory |
|
3.56 |
3.95 |
3.06 |
|
Debtors |
|
2.63 |
19.78 |
14.74 |
|
Interest Cover Ratio |
|
1.31 |
3.29 |
2.48 |
|
Operating Profit Margin |
(%) |
5.03 |
9.83 |
10.25 |
|
Profit Before Interest And Tax Margin |
(%) |
3.23 |
8.42 |
9.14 |
|
Cash Profit Margin |
(%) |
2.01 |
4.87 |
4.87 |
|
Adjusted Net Profit Margin |
(%) |
0.21 |
3.45 |
3.76 |
|
Return On Capital Employed |
(%) |
6.90 |
20.51 |
16.78 |
|
Return On Net Worth |
(%) |
1.19 |
24.41 |
24.31 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 57.85 |
|
Low |
Rs. 49.00 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS
Land
Buildings
Plant and Machinery
Furniture and fixtures
Vehicles
Assets taken finance lease
Financial Results
As
will be seen from the financial results the Company posted its best ever
results. The turnover for the year including other income was Rs.7190.000 millions
compared to Rs.5550.000 millions in the previous year. The Gross Profit and the
Net Profit were higher at Rs.630.000 millions and Rs.290.000 millions compared
to Rs.410.000 millions and Rs.250.000 millions respectively in the previous
year. Exports of the Company at Rs.1860.000 millions against Rs.1390.000
millions in the previous year were an all time high.
After payment of dividend and transfer of Rs.60.000 millions. to General
Reserve (previous year - nil), the balance carried forward in the Profit and
Loss Account will be Rs.610.000 millions
which include Rs.320.000 millions brought forward from previous year and
Rs.80.000 millions Debenture Redemption Reserve written back.
OPERATIONS
Sugar
The overall performance of the business was better due to improved managerial
inputs and market conditions.
The Country's sugar production and consumption during the year were more or
less balanced. This coupled with exports resulted in lower inventories and
sugar prices remaining firm. International sugar prices have also firmed
up.
During the year, Daurala's cane crushing at 1.360 millions MT and sugar
production at 0.132 millions MT were marginally lower than the previous year
due to lower reservation of cane area as a result of establishment of new sugar
factories around their plant. Due to early start of factories in the region and
late rains, sugar recovery was lower than usual in Western U.P as a whole and
Daurala was no exception. Efforts are being made to improve cane availability this
year.
The first phase of the project for expansion of cane crushing capacity and
modernization was implemented during the year by adding 2000 TCD capacity,
taking the expanded crushing capacity to 10,000 TCD. The second phase of the
project to add another 2000 TCD crushing capacity and modernization of the
sugar plant and the powerhouse is in progress. To provide further stability to
the operations and achieve value addition, enhancing co-generation of power and
other cost reduction measures are under active consideration.
Alcohols
Production and sale of alcohols were stable. Margins were under pressure due to
reduced availability of molasses and resultant volatility in its price.
Supplies of Anhydrous Alcohol to oil companies, which remained suspended
through most part of the year due to unattractive prices offered by the oil
companies, resumed in the last quarter on reaching an agreement with them. The
prospects for the current year are encouraging. In case it is made mandatory
for oil companies to admix 5% ethanol with petrol, demand could rise
significantly.
Chemicals
During the first full year of operation of the chemical business after
amalgamation of Daurala Organics, there was all round improvement. Year on year
growth in income was higher and exports during the year also registered an
increase over the previous year. In the phase of a continuing competitive
market situation, the growth is indicative of better customer confidence in the
Company and its products.
Efforts are on to improve efficiencies and increase the level of value
addition, to counteract the increase in some raw material prices which are
driven by rising global commodity prices.
Rayon:
Rayon operations were upgraded with the addition of 500 TPA capacities and installation
of state of the art Airjet looms for improving the fabric quality.
Exports grew in spite of a weak Euro during the year. Operational margins,
however, suffered during the year on account of increased raw material prices,
high energy costs and relatively weak Euro.
The Unit has installed a 3.2 MW back pressure turbine and is taking steps to
install a high efficiency multi-fuel boiler. These steps are expected to reduce
energy costs significantly and keep the Unit more competitive in the international
market. This Project will also promote 'clean' fuel usage. Steps are also being
taken to upgrade the dipping facility to meet value added products required by
customers.
The Unit, for the 10th time since 1992-93, received the award for highest
exports from Synthetics and Rayon Export Promotion Council for the year
2004-05.
Nylon:
Nylon chafer market continued on a limited scale on account of availability of
cheaper imported material.
PROMOTED COMPANIES
DCM Hyundai Ltd.
The
Company's efforts for diversification from traditional shipping containers to
production and sale of special containers have achieved some break through. It
is expected that the operations will improve further.
To supplement its efforts at arriving at a workable revival plan through the
Hon'ble BIFR, the Promoter Company has taken over the debt of one of the two
large creditors of the Company through a onetime settlement. Efforts are being
made to arrive at a settlement on the remaining issues, to be able to revive
the Company.
Others
During the year Daurala Foods and Beverages Pvt. Ltd. continued to earn a small
operating profit. DCM Shriram Leasing and Finance Limited continued its efforts
in recovering its dues as last year. However, recoveries have slowed down due
to lengthy legal processes.
MANAGEMENT DISCUSSION AND ANALYSIS
REPORT
The Company's business comprises of sugar, alcohols, chemicals and rayon with
manufacturing facilities at Daurala (U.P) and
Industry structure and competitive scenario for various products are given
below:
Sugar
The
operations of the Company's sugar unit during the period were satisfactory and
well managed. Despite a significant drop in the reserved cane area, the unit
managed to crush 1.360 millions MT of cane by increasing procurement from its
own area and from other assigned areas. In view of the increased crushing
capacity they could have done better had full cane been available.
The new incentive scheme of the UP Government for creation of new capacity in
the State is strongly biased towards new capacity, at the cost of the existing
capacity and has significant barriers of entry for small groups and existing
plants. Various new sugar plants have come up in the area on the strength of the
incentive scheme. On the other hand the State Government has so far been unable
to evolve an equitable policy for allocation of sugarcane area amongst
factories. These factories together have had an adverse impact on the
operations of the existing sugar factories including theirs. Efforts are
continuing at various levels to evolve an equitable methodology for reservation
of cane area on factory wise basis, in the overall interest of the
industry.
After the decision of Supreme Court empowering the State Govt. to fix cane
price, the State Govt. has yet to evolve a methodology for arriving at a fair
price on a year to year basis which would take care of the various aspects,
including sugar prices, for keeping the Industry healthy.
Domestic sugar production for the season more or less balanced with demand.
This coupled with exports resulted in firming of sugar prices.
With the developed countries starting to withdraw subsidies and many sugar
producing countries diverting sugar cane towards alcohol production, for mixing
with petrol, the prices of sugar in the international market have firmed up.
This will have a positive implication for the domestic sugar industry as a
whole; as regards export avenues as also sugar price stability
Alcohols
With the increasing trend of sugar production molasses and alcohol production
is also expected to increase in the future. The availability of free molasses
would need to be closely monitored keeping its cyclic nature as also new
distillation capacity coming up at the sugar factories in mind.
The Government of India is keen that the admixing of ethanol with petrol
increases rapidly, in light of
Fine Chemicals
While their fine chemicals business improved over the previous year, such
business in general is operating under pressure. Increase in cost of raw materials,
many of which are linked to global and commodity price, has affected margins
adversely.
The
Company is pursuing a market led strategy to meet the situation, expanding the
production and market share with a thrust on exports on one hand and improving
process efficiencies and diversifying portfolio on the other.
Rayon
The Unit being a manufacturer of high tenacity rayon products for the tyre
industry caters to major tyre producers in the international market. Presently
tyre companies are sourcing yarn and fabric from them and getting it processed
for their usage. They are keen to directly source the processed fabric instead
and for this purpose the Unit is taking steps to upgrade its dipping facilities
so that it can effectively meet the demand for value added products.
Being a very specialized business with limited raw material supplies and a
relatively small number of customers, cost competitiveness and quality
consciousness are of utmost importance.
The Unit is taking cost reduction measures and making continuous improvements
in processes and equipment to ease the pressure on the margins due to increase
in prices of inputs as well as energy. The implementation of Total Quality
Management is expected to optimize the processes, equipment utilization and
reduce wastage.
The dependence on State Electricity Board for additional power is being
significantly reduced with the installation of 3.2 MW back pressure turbine for
co-generation of power as a by-product from the steam used in the process. In
order to further reduce usage of coal and promote 'clean' fuel usage, a high
pressure multi fuel Fluidized Bed Combustion Boiler is proposed to be
installed.
Website details attached:
For over a hundred
years, the name DCM Shriram has been synonymous with Excellence, Quality,
Integrity, Environmental consciousness and pioneering spirit.
This is the legacy
that DCM Shriram Industries Group - born in 1990 on restructuring of the
erstwhile DCM Ltd - aspires to live up to and surpass.
As a business group
that has inherited the rich legacy of sound governance, effective corporate
management, technological sophistication and above all the goodwill and loyalty
of numerous stakeholders and associates, they continue to build their business
on the vision and values endowed by their founder.
DCM Shriram Industries is a diversified group with operations in Sugar,
Alcohol, Organic and Inorganic Chemicals, Drug Intermediates, Rayon Tyrecord,
Shipping Containers and processed cotton yarn.
The group comprises five main business operations, each with a history of
consistent performance over the years.
1. Daurala Sugar Complex, comprising a cane sugar
plant, distillery and an aromatic chemicals unit.
2. Shriram Rayons, comprising rayon
tyrecord/yarn/fabric and nylon chafer/fabric plants.
3. Daurala Organics, manufacturing new generation
drug intermediates.
4. Daurala
Foods and Beverages (P) Ltd., manufacturing high-class liquors.
5. DCM Hyundai
Ltd., manufacturing shipping containers.
As market-driven agglomerate, responsive to customer needs, DCM Shriram
Industries group remains committed to continuous modernization, expansion,
diversification and innovation.
It is a commitment that has helped us maintain leadership in every area of
their operations.
A tradition of excellence.
Corporate Ethos
Enterprises of DCM
SHRIRAM Group endeavour to maintain leadership status by observing norms of
excellence in all areas.
Quality Systems
Highest degree of
product specifications and quality standards is maintained by adopting
world-class quality systems. ISO 9000 series certification has been
received from RWTUV of Germany and Det Norsk Veritas of
Research and
Development
Research and Development
is a continuous process. Focus is on maintaining a technological edge
through product development, technology upgradation, energy conservation,
pollution control, optimization of resources, and conservation of
environment. Close connection is maintained with research institutions
like the Shriram Institute for Industrial Research (SRIFIR), Shriram Cane
Research Farm, and Shriram Test House.
Environment
Manufacturing units
of the Group are like garden factories. Utmost attention is paid to treatment
of effluents, control of pollution, and conservation of environment. This
constitutes a specific target of R&D effort.
Safety
Safety of men,
machines and materials has a high priority. One of the units, Shriram Rayons,
has won the National Safety Award consecutively for 15 Yrs.
Human Resource
Emphasis is placed
on worker-management partnership... Achieving corporate goals through the
cooperation and dedication of all personnel... Motivating them by imparting a
sense of involvement, caring and recognition.
Human resource
development, career planning and skill-upgradation are essential parts of the
Group's management process.
Quality Of Life
Helping to improve
the quality of life of employees is a part of the basic management philosophy of
the Group. Facilities like housing, education, healthcare, family welfare,
libraries and reading rooms, sports and cultural centres are common features at
all units.
Social
Responsibility
As part of corporate
social responsibility, programs are undertaken regularly for community
development to improve the living conditions of people in the vicinity of the
Group's units.
Environment
Health and Safety
DCM Shriram Industries Group has always been dedicated to meeting their
responsibility towards protection of environment and conserving scarce natural
resources. This has prompted us to adopt the following measures:
- Boilers modified for multi-fuel
arrangement and can be run on various renewable fuels, viz., bagasse,
rice-husk and eco-friendly bio-gas (methane).
- Effective flue gas wet scrubbing system
using in-house technologies to release pollution free flue gases.
- ESP's
- Bio-methanation and secondary Plant set
up to obtain eco-friendly bio-gas from distillery effluent, using in-house
technologies.
- Effluent Treatment Plants set up in all
factories to not only control discharge of pollutants within prescribed
limit but also generates bio gas which is used as a clean fuel in the
boilers
- Green Belt in and around the factory
and residential complexes.
- Minimizing energy and water consumption
in processes.
- Yearly
- Newer technology are adopted to
minimize consumption of energy and water in the complex
- Bio compost plant provides eco-friendly
manure to the farmers of the area
It is their policy
to maintain the wholesomeness of the environment and preserve the ecosystem.
HEALTH and SAFETY
Health and safety
of employees and the public is of paramount importance to us.
- Shriram Rayons has won the
National Safety Award for 15 Yrs.
- Organize regular training programmes
covering all aspects of safety and hazardous operations.
- Assessment and elimination of potential
hazards/risks to Safety, Health and the environment, supported by regular
safety audits and timely implementation and maintenance of safety systems
supported by periodic drills and rehearsals.
Quality Policy
DCM Shriram Group has inherited the precept of giving the customer "an extra inch" from its founder. The group has moved away from its one-time staple, textiles, but the precept remains. And it applies to product specifications and quality as much as to other aspects of business.
Milestones
|
1889 |
Delhi Cloth Mills founded at |
|
1932 |
- Sugar factory set up at Daurala |
|
1934 |
Textile Mills set up at Lyallpur (Now Faisalabad in |
|
1940 |
Sugar factory set up at Mawana |
|
1941 |
Heavy inorganic chemicals plant set up at |
|
1943 |
Distillery set up at Daurala |
|
1948 |
New textile mills set up at |
|
1958 |
Spinning mills at Hissar and Silk mills set up at |
|
1960 |
PVC, Chlor-alkali and Calcium Carbide plant set up at |
|
1965 |
Rayon tyrecord plant set up at |
|
1967 |
Liquor operations started at Daurala |
|
1969 |
Urea plant set up at |
|
1970 |
Aromatic chemicals plant set up at Daurala |
|
1972 |
Textile mills set up at Dasna Computers unit set up at |
|
1977 |
Precision castings (for automobiles) foundry set up at
Ropar |
|
1990 |
DCM restructured into 4 different groups |
|
1994 |
Drug intermediates company
established with works at Daurala |
|
1995 |
Shipping containers company
established at Chennai |
|
1997 |
Joint
Venture Liquor company established with works at Daurala |
|
2004 |
Commercial
production of Anhydrous Alcohol (for admixing field) |
|
2005 |
Daurala
Organics Ltd. , amalgamated with DCM SHRIRAM INDUSTRIES Ltd. |
|
Note |
: Divested
operations are not shown |
CMT REPORT (Corruption, Money Laundering & Terrorism]
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. 43.59 |
|
|
1 |
Rs. 85.53 |
|
Euro |
1 |
Rs. 58.14 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
52 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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 |
|