MIRA
INFORM REPORT
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Report Date : |
10.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
DCM HYUNDAI LIMITED |
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Registered Office : |
6th Floor, Kanchanjunga Building 18, Barakhamba Road, New
Delhi, India |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.03.1993 |
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Com. Reg. No.: |
052399 |
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CIN No.: [Company
Identification No.] |
U99999DL1993PTC052399 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHED00539A |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing
of freight containers including 20 feet equal units of dry cargo containers. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
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 444000 |
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Status : |
Improving |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of DCM Shriram Group. The company has improved its
performance as per its last available financials of 31.03.2007. Its networth
has turned positive and it is expected to wipe-off all its previous losses,
soon. Trade relations are reported as fair. Business is active. Payments are
reported as slow but correct. The company can be considered normal for business dealings at usual
trade term and conditions. |
LOCATIONS
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Registered Office : |
6th Floor, Kanchanjunga Building 18, Barakhamba Road, New
Delhi, India |
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Website : |
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Factory : |
104, Pollovakam Village, Thivallur Sripeumbudur Road, Sriperumpudur,
Tamilnadu, India |
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Tel. No.: |
91-44-22350500 / 91-4116-58429 |
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Fax No.: |
91-44-22353605 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Akashdeep
Buildings, 5th Floor, 26 A, Barakhamba Road, New Delhi – 110001 |
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Tel. No.: |
91-11-23312267 |
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Fax No.: |
91-11-23313494 |
DIRECTORS
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Name : |
Mr. R.
Srinivasan |
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Designation : |
Director
Whole-time-Director |
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Name : |
Mr.
Yeo Sung Lee |
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Designation : |
Director |
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Address : |
1001-602, Hukok Moul, 18/1 - 1074, IIsan Gu Koyang,
Kyumgki, Seoul, Korea |
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Name : |
Mr. H. D.
Bang |
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Designation : |
Director |
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Name : |
Mr. T.
Willington |
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Designation : |
Director
TIDCO Nominee |
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Address : |
Flat 1 A, Norton Street, Mandeveli, Chennai - 600 028,
Tamilnadu |
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Name : |
Mr.
Manabendra Nath Sen |
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Designation : |
Director
(TAIB Bank E.C.) |
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Name : |
Mr. N.K.
Kapur |
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Designation : |
Director |
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Name : |
Mr. Arun
Kumar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Alok B
Shriram |
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Designation : |
Chief
Executive Officer |
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Address : |
A/11/6, Vasant Vihar, New Delhi |
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Name : |
Mr. L.
Sriram |
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Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2006)
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Names of Shareholders |
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Percentage of
Holding |
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Government |
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5.09 % |
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Foreign
Holding |
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57.27 % |
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Bodies
Corporate |
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25.59 % |
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Directors
and Relatives |
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0.35 % |
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Other
Top 50 |
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1.20 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
of freight containers including 20 feet equal units of dry cargo containers. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Actual Production |
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Dry Land Containers |
Nos. |
-- |
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Dry Cargo Containers |
Nos. |
773 |
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Special Containers |
Nos. |
270 |
GENERAL
INFORMATION
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No. of Employees : |
200 |
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Bankers : |
Thiruvallur,
Tamilnadu
Thiruvallur,
Tamilnadu |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A F
Ferguson Associates Chartered
Accountants |
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Address : |
443,
Anna Salai, Chennai - 600 018, Tamilnadu, India |
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Associates/Subsidiaries : |
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Joint Venture : |
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CAPITAL STRUCTURE
(As on 31.03.2006)
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40000000 |
Equity Shares |
Rs.10 each |
Rs.400.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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16850000 |
Equity Shares |
Rs.10 each |
Rs.168.500 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
168.500 |
314.149 |
314.149 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(57.500) |
26.500 |
26.500 |
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4] (Accumulated Losses) |
0.000 |
(1422.697) |
(1481.454) |
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NETWORTH |
111.000 |
(1082.048) |
(1140.805) |
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LOAN FUNDS |
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1] Secured Loans |
191.800 |
1168.130 |
1153.852 |
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2] Unsecured Loans |
0.000 |
239.115 |
239.115 |
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TOTAL BORROWING |
191.800 |
1407.245 |
1392.967 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
302.800 |
325.197 |
252.162 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
316.500 |
402.155 |
431.774 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
26.900
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60.658
|
38.609 |
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Sundry Debtors |
1.800
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12.435
|
9.209 |
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Cash & Bank Balances |
2.500
|
19.677
|
11.162 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
8.700
|
18.125
|
30.566 |
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Total
Current Assets |
39.900
|
110.895 |
89.546 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
50.600
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184.901
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266.941 |
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Provisions |
3.000
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2.952
|
2.217 |
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Total
Current Liabilities |
53.600
|
187.853 |
269.158 |
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Net Current Assets |
(13.700)
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(76.958)
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(179.612) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
302.800 |
325.197 |
252.162 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
130.900 |
216.100 |
90.600 |
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Other Income |
1389.300 |
53.900 |
0.600 |
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Stock Adjustments |
(15.000) |
8.800 |
3.900 |
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Total Income |
1505.200 |
278.800 |
95.100 |
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Profit/(Loss) Before Tax |
1339.000 |
59.100 |
(143.000) |
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Provision for Taxation |
0.300 |
0.300 |
0.000 |
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Profit/(Loss) After Tax |
1338.700 |
58.800 |
(143.000) |
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Export Value |
NA |
215.454 |
76.661 |
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Import Value |
NA |
74.997 |
65.000 |
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Expenditures : |
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Raw Material Consumed |
66.700 |
125.000 |
74.100 |
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Excise Duty |
3.300 |
0.000 |
0.700 |
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Power and Fuel Cost |
9.500 |
8.800 |
4.800 |
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Manufacturing Expenses |
21.700 |
22.600 |
7.400 |
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Employee Cost |
14.900 |
15.100 |
9.400 |
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Selling and Administrative Expenses |
8.600 |
8.600 |
6.000 |
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Miscellaneous Expenses |
8.300 |
3.700 |
1.200 |
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Interests and Financial Charges |
0.700 |
0.900 |
100.000 |
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Depreciation |
32.500 |
35.000 |
34.500 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
166.200 |
219.700 |
238.100 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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0.00
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0.00
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0.00 |
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Long Term Debt-Equity Ratio |
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0.00
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0.00
|
0.00 |
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Current Ratio |
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0.62
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0.44
|
0.32 |
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TURNOVER RATIOS |
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Fixed Assets |
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0.17
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0.27
|
0.11 |
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Inventory |
|
2.99
|
4.35
|
2.63 |
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Debtors |
|
18.44
|
20.01
|
7.16 |
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Interests Cover Ratio |
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(60.57)
|
66.67
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(0.43) |
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Operating Profit Margin (%) |
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(7.56)
|
43.96
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(9.38) |
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Profit Before Interests and Tax Margin (%) |
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(32.39)
|
27.76
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(47.46) |
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Cash Profit Margin (%) |
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(8.33)
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43.41
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(119.76) |
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Adjusted Net Profit Margin (%) |
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(33.16)
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27.21
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(157.84) |
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Return On Capital Employed (%) |
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(3.97)
|
6.00
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0.00 |
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Return On Net Worth (%) |
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(21.32)
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(14.70
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0.00 |
LOCAL AGENCY FURTHER
INFORMATION
Director Report:
The Directors are pleased to present the 14th Annual Report
along with the Audited Accounts of the Company for the year ended 31st March
2007. The year was special in the annals of the Company's history. Nine years
after getting the Company registered with the Hon'ble Board for Industrial and
Financial Reconstruction (BIFR), as required under the Sick Industrial
Companies (Special Provisions) Act, 1985, the Company could present a duly tied
up Rehabilitation Scheme through Indian Bank, the Operating Agency appointed by
BIFR. The directors have pleasure to report that the Scheme has been approved
by the onible designated Bench of BIFR in the hearing held on 24th May, 2007.
The Scheme is effective from 31.3.2007 i.e. in the year ended March 2007.
SALIENT FEATURES OF THE SCHEME
- Reduction in
Capital:
As per the Scheme the paid up equity share capital of the
Company stand reduced from Rs.314.100 Millions to Rs.31.400 Millions. The
equity shareholders, whose names appear in the Register of Members as on
09.7.2007, will be issued one equity share of Rs.10 credited as fully paid
against every ten equity shares of Rs.10 each held and new share certificates
are being issued. Existing share certificates will stand cancelled.
- Further issue
of capital:
Pursuant to the Scheme the Promoter Company, DCM Shriram
Industries Limited, has been allotted Rs.0.860 Million equity shares of Rs.10
each for cash at par and Rs.1.285 Million - 5% Optionally Convertible
Non-Cumulative Pref. Shares of Rs.100 each, with an optional life span of 10
years, on conversion of part of its loans/ advances. This is after waiver of
its dues of Rs.750.000 Millions by the Promoter Company.
- Waivers and
write off:
The Company could arrive at a settlement with ARGIL for
repayment of its dues against the foreign currency loan of USD 6 million. This
settlement paved the way for evolving the Rehabilitation Scheme. The Secured
Creditors including the Promoter Company, DCM Shriram Industries Limited, have
waived off 80% of their dues. The unsecured creditors as on the cut off date
are also to be paid 20% of their dues as per the Scheme. Upon effectuation of
the Scheme the Company's net worth has become positive at Rs.111.000 Millions.
FINANCIAL RESULTS
The Company had a turn over of Rs.130.900 Millions against
Rs.216.100 Millions last year. There was an net loss of Rs.43.000 Millions as
against a net profit of Rs.590.000 Millions last year which included other
income of Rs. 52.600 Millions.
OPERATIONS
The Company continues its efforts in developing and
marketing value added products such special type containers, specified
fabrication jobs etc. for which there is lot of scope. The new products
developed by the Company are finding acceptance by customers in India and abroad.
In order to exploit more domestic business the Company has got itself
de-bonded. This should facilitate procuring more domestic business from the
engineering sector.
FIXED ASSETS
- Free hold land
- Buildings
- Plant and machinery
- Electrical installation
- Office equipments
- Furniture
- Vehicles
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.02 |
|
UK Pound |
1 |
Rs.78.77 |
|
Euro |
1 |
Rs.62.97 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
54 |
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 |
|