MIRA
INFORM REPORT
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Report Date : |
22.09.2007 |
IDENTIFICATION DETAILS
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Name : |
DAMODAR MANGALJI AND COMPANY LIMITED |
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Registered Office : |
1st floor, Damodar Niwas,
Mahatma Gandhi Road, Post Box No. 32, Panjim – 403 001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.06.1965 |
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Com. Reg. No.: |
24-0031 |
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CIN No.: [Company
Identification No.] |
U51109GA1965PLC000031 |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Mining Activity |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1486388 |
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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 experienced 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 regarded as a promising business partner in a
medium to long – run. |
LOCATIONS
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Registered Office : |
Damodar Niwas, |
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Tel. No.: |
91-832-2223381 - 85 |
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Fax No.: |
91-832-2223198 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Dhirajlal M Rajani |
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Designation : |
Chairman Cum Managing Director |
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Address : |
House No E - 291, Damodar D B Bandodkar Marg, |
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Date of Birth/Age : |
11.02.1934 |
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Date of Appointment : |
01.10.1988 |
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Name : |
Mr. Dwarkadas B Sanghani |
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Designation : |
Director |
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Address : |
G – 2, Sonali Apartment, Caranzalem, North Goa – 403 001, |
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Date of Birth/Age : |
07.08.1925 |
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Date of Appointment : |
27.02.1991 |
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Name : |
Mr. Pramod Chandra B Deshpande |
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Designation : |
Director |
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Name : |
Mr. Manharlal Rajani |
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Designation : |
Director |
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Address : |
505 - A, Machados Cove, Dona Paula – 403 001, North |
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Date of Birth/Age : |
17.08.1936 |
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Date of Appointment : |
30.09.1997 |
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Name : |
Mr. Dipak Manharlal Rajani |
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Designation : |
Whole Time -Director |
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Address : |
505 - A, Machado’s Cove, Dona Paula – 403 004, North Goa, India |
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Date of Birth/Age : |
04.06.1956 |
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Date of Appointment : |
01.09.1999 |
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Name : |
Mr. Harish Rajani |
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Designation : |
While Time Director |
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Address : |
Damodar No 832, |
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Date of Birth/Age : |
09.03.1960 |
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Date of Appointment : |
01.09.1992 |
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Name : |
Mr. Manoj Rajani |
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Designation : |
Whole Time Director |
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Address : |
Damodar No 832, |
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Date of Birth/Age : |
29.08.1962 |
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Date of Appointment : |
01.09.1992 |
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Name : |
Mr. Pramod Chandra Deshpande |
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Designation : |
Director |
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Address : |
Varsha Bungalow, 246 /1 Near |
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Date of Birth/Age : |
16.10.1956 |
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Date of Appointment : |
27.02.1990 |
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Name : |
Mr. Gopal Dharwadkar |
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Designation : |
Whole Time director |
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Address : |
No.787, |
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Date of Birth/Age : |
17.08.1997 |
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Date of Appointment : |
30.09.1997 |
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Name : |
Mr. Devji Amlani |
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Designation : |
Director |
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Address : |
Shubham A-S, La- Champa La
Colony, |
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Date of Birth/Age : |
10.01.1927 |
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Date of Appointment : |
30.09.1997 |
KEY EXECUTIVES
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Name : |
Mr. Dhirajlal Damodar |
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Designation : |
Chairman |
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Name: |
Ms. Kiriti Jobanputra Kumar |
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Designation |
Manager |
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Address: |
Flat No. BF/6, Kamat Arcade, St. INEZ P.O.Caranzalem, Panaji – 403
002, |
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Date of Birth/Age : |
09.02.1960 |
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Date of Appointment : |
01.01.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. Manharlal Rajani |
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820 |
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Mrs. Niranjana Rajani |
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800 |
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Mr. Dipak Rajani |
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3600 |
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Mr. Harish Rajani |
|
4580 |
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Manhar Investment Company |
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7200 |
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Dhiraj Investment Company |
|
7200 |
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HD Investment Company |
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7200 |
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Mr. Bhavik Rajani |
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1980 |
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Mr. Manoj Rajani |
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3810 |
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Mr. Dhruv Harish Rajani |
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1210 |
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Mr. Rahul Manoj Rajani |
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1980 |
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Mr. Vikram Dipak Rajani |
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1980 |
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Mr. Vijay Dipak Rajani |
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1980 |
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Dipak Meena Trust |
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2040 |
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Mr. Dhirajlal Rajani Mr. Harish Rajani |
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410 |
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Mr. Dhirajlal Rajani Mr. Manoj Rajani |
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410 |
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Mrs Lilavati Rajani Mr. Harish Rajani |
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400 |
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Mrs. Lilavati Rajani Mr. Manoj Rajani |
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400 |
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Total |
48000 |
Equity Share Break – up (Percentage of Total Equity)
|
Sr.
No. |
Category |
Percentage |
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1 |
Bodies Corporate |
45.00 |
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2 |
Directors or relatives of directors |
50.75 |
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3 |
Other top fifty (50) Shareholders |
4.25 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Mining Activity |
GENERAL INFORMATION
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No. of Employees : |
500 |
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Bankers : |
Canara Bank, Address: Panaji
403 001, |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
V M Shah and Company Chartered Accountants |
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Address : |
103, Radha Apartments, |
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Associates/Subsidiaries : |
·
CIN of Subsidiary Company: U70101GA1994PTC001717
Name of the subsidiary company: Dhirajlal Damodar and Sons Holdings Company Private Limited ·
Damodar Mangalji Mining Company ·
Rajani Trading and Investments Private Limited ·
Gomantak Investments Private Limited ·
Damodar Auto Parts ·
Dhiraj Investment Company ·
HD Investment Company ·
Manhar Investments Company ·
Rajani Minerals Exports ·
Resources International ·
Resourceful Earthmovers |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
51000 |
Equity shares |
Rs. 100/- each |
Rs. 5.100 millions |
|
14000 |
Preference Shares |
Rs. 100/- each |
Rs. 1.400 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48000 |
Equity Shares |
Rs. 100/-
each |
Rs. 4.800
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4.800 |
4.800 |
4.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
366.797 |
768.314 |
339.306 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
371.597 |
773.114 |
344.106 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
2.347 |
1.852 |
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TOTAL |
371.597 |
775.461 |
345.958 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
37.464 |
35.832 |
32.524 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
59.851 |
40.897 |
24.708 |
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DEFERREX TAX ASSETS |
0.477 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
244.661
|
65.228 |
156.118 |
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Sundry Debtors |
15.566
|
40.571 |
16.197 |
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Cash & Bank Balances |
1193.541
|
759.487 |
168.085 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
666.902
|
381.298 |
114.163 |
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Total
Current Assets |
2120.670
|
1246.584 |
454.563 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
328.424
|
224.110 |
122.122 |
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Provisions |
1518.441
|
323.742 |
43.715 |
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Total
Current Liabilities |
1846.865
|
547.852 |
165.837 |
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Net Current Assets |
273.805
|
698.732 |
288.726 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
371.597 |
775.461 |
345.958 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
970.982 |
1322.048 |
574.817 |
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|
0.000 |
14.324 |
9.175 |
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Other Income |
273.977 |
34.932 |
16.050 |
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Share of Profit /(Loss) from a Firm |
0.000 |
15.240 |
4.130 |
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Increase / (Decrease) In Stocks |
0.000 |
(93.359) |
95.733 |
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Total Income |
1244.959 |
1293.185 |
699.905 |
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Profit/(Loss) Before Tax |
1091.266 |
706.987 |
151.756 |
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Provision for Taxation |
352.729 |
260.000 |
40.000 |
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Profit/(Loss) After Tax |
738.537 |
446.987 |
111.756 |
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Earnings in Foreign Currency : |
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Export Earnings |
420.316 |
700.113 |
392.856 |
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Total Earnings |
420.316 |
700.113 |
392.856 |
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Imports : |
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Spares Parts
and Components |
0.000 |
0.024 |
0.103 |
|
Total Imports |
0.000 |
0.024 |
0.103 |
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Expenditures : |
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Purchase of Finished goods |
0.000 |
20.675 |
18.025 |
|
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Production and Transportation of |
0.000 |
325.820 |
322.432 |
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|
Administrative and Other Expenses |
0.000 |
234.454 |
201.910 |
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Purchases made for re-sale |
370.011 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
|
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
|
0.000 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
49.661 |
0.000 |
0.000 |
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Payment to Auditors |
0.359 |
0.000 |
0.000 |
|
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Interest |
1.813 |
0.954 |
1.971 |
|
|
Insurance Expenses |
0.040 |
0.209 |
0.000 |
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|
Power & Fuel |
9.632 |
7.379 |
0.000 |
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|
Depreciation & Amortization |
5.147 |
4.293 |
3.812 |
|
|
Other Expenditure |
112.673 |
0.000 |
0.000 |
|
Total Expenditure |
574.009 |
593.784 |
548.150 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
59.32
|
65.04 |
15.96 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
112.38
|
113.67 |
26.40 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
49.19
|
53.42 |
29.65 |
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Return on Investment (ROI) (PBT/Networth) |
|
2.93
|
0.91 |
0.44 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.97
|
0.70 |
0.48 |
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Current Ratio (Current Asset/Current Liability) |
|
1.14
|
2.27 |
2.74 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
·
Land
·
Mining Concessions
·
Buildings
·
Plant and Machinery
·
Shovels
·
Vehicles Dumpers, Cars and Cycles
·
Furniture and Fixtures
·
Other assets
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Name of the
company |
M/S DAMODAR MANGALJI AND COMPANY LIMITED |
|
Presented
By |
Mr. Harish D
Rajani |
|
1) Date and
description of instrument creating the change |
The Agreement of
Hypothecation Dated 08.02.1972 executed by M/s Damodar Mangalji and Company
Limited in favour of Canara Bank , Panaji Goa. |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 2.500
millions with interest at @ 2% .a. above RBI rate with a minimum of 18%p.a. |
|
3) Short
particular of the property charged. If the property acquired is subject to charge,
date of the acquired of the property should be given |
Iron Ore meant
for export or sale to other exporters stacked at various river side loading
points and at mines heads and at Berth No.9 at Marmugao Harbour. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Hypothecation of property mentioned in
item No.3 above as security towards Packing Credit Limit of Rs. 2.500
millions |
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5) Name and
Address and description of the person entitled to the charge. |
Canara Bank Address: Panaji 403 001, |
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6) Date and brief description of instrument
modifying the charge |
Letter dated
10.03.2004 from Canara Bank Panaji |
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7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The charge was
earlier modified on 29.07.1976, 17.09.1976, 20.01.1982, 01.10.1983,
06.11.1984, 29.08.1985, 31.07.1986. 11.08.1987, 30.09.1988, 22.07.1989,
30.08.1991, 09.11.1992, 20.03.1993, 31.10.1995, 23.10.1996, 27.11.2000, 23.09.2003 The other terms
and conditions remains unchanged. The charge has
been decreased from Rs. 95.000 millions to Rs. 65.000 millions consisting of
the limits OCC / PC, FDP, Guarantee. |
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.39.70 |
|
|
1 |
Rs.80.10 |
|
Euro |
1 |
Rs.56.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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. |
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 |
|