MIRA INFORM REPORT

Report Date :

18.02.2007

IDENTIFICATION DETAILS

Name :	DCM SHRIRAM INDUSTRIES LIMITED
Registered Office :	Kanchenjunga Building, 5^th Floor, 18, Barakhamba Road, New Delhi – 110 001, India
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	21.02.1989
Com. Reg. No.:	55-35140
CIN No.: [Company Identification No.]	L74899DL1989PLC035140
TAN No.: (Tax Deduction & Collection Account No.)	DELD06462B DELD06289D
PAN No.: (Permanent Account No.)	AAACD0204C AAACD0229M
Legal Form :	It is a public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Engaged in manufacturing of chemicals, sugar and textile products.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 7100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
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 regular. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Corporate Office :	Kanchenjunga Building, 5^th Floor, 18, Barakhamba Road, New Delhi – 110 001, India
Tel. No.:	91-11-2332 1413 (10 Lines)/ 23759300
Fax No.:	91-11-2331 0765 / 2331 5424
E-Mail :	dsil@dcmsr.com
Website :	http://www.dauralaorganics.com , http://www.dcmsr.com
Divisional offices:	Kanchenjunga Building, 18, Barakhamba Road, New Delhi - 110 001
Tel. No.:	91-11-2332 1413 (10 Lines)
Fax No.:	91-11-2335 0765 / 2331 5424
E-Mail :	sugarsud@dcmsr.com
Divisional offices:	1-89, Himalaya House, 23, Kasturba Gandhi Marg, New Delhi - 110 001
Tel. No.:	91-11-2331 8609
Fax No.:	91-11-2331 8605
E-Mail :	doldelhi@del2.vsnl.net.in
Divisional offices:	Akashdeep Building, 5^th Floor, 26A, Barakhamba Road, New Delhi - 110 001
Tel. No.:	91-11-2331 2267
Fax No.:	91-11-2331 3494
E-Mail :	shrirayn@del2.vsnl.net.in
Divisional offices:	204-205, Ashoka Estate Building, Barakhamba Road, New Delhi - 110 001
Tel. No.:	91-11-2373 9311
Fax No.:	91-11-2373 9316
Regional offices:	208, Marine Charmers, Sir Vithaldas Thackersey Marg, Opposite SNDT College, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22011440/ 22051455 / 22059207
Mobile No.:	91-9967847733
Fax No.:	91-22-22031570
Regional offices:	23/1A Giri Babu Lane, Kolkata – 700 012, West Bengal, India
Tel. No.:	91-33-22373411
Factory 1 :	DCM SHRIRAM TEXTILES HRM Premises, Dasna, Ghaziabad, Uttar Pradesh
Factory 2 :	DAURALA ORGANICS Daurala, Meerut District - 250221, Uttar Pradesh
Tel. No.:	91-121-2588096
Fax No.:	91-123-2788131
E-Mail :	http://www.dauralaorganics.com
Factory 3 :	SHRIRAM RAYONS Shriram Nagar, Kota, Rajasthan - 324 004
Tel. No.:	91-744-2424401
Fax No.:	91-744-2424403
E-Mail :	srryons@jp1.dot.net.in
Factory 4 :	INDITAL TINTORIA LIMITED Matsya Industrial Area, District Alwar, Rajasthan
Tel. No.:	91-144-2281053 / 2811053
Fax No.:	91-144-2281253
E-Mail :	srrayons@jp1.dot.net.in
Factory 5 :	DCM REMY LIMITED Daurala, Meerut District, Uttar Pradesh
Tel. No.:	91-121-2288533
Fax No.:	91-1237-288511
Factory 6 :	Daurala Sugar Works, Daurala, Meerut District - 250221, Uttar Pradesh
Tel. No.:	91-1237-288096 – 99
Fax No.:	91-1237-288131
E-Mail :	dsw@dcmsr.com
Branch Office :	Daurala Organics 22-B, Himalya House, 2^nd Floor, 23 Kasturba Gandhi Marg, New Delhi – 11000

DIRECTORS

Name :	Mr. Tilak Dhar
Designation :	Chairman & Managing Director
Date of Birth/Age :	51Years
Qualification :	B. Com, CA [Inter] MBA
Experience :	27 Years
Date of Appointment :	08.09.1980
Previous Employment :	Manager, DCM Limited
Name :	Mr. Alok B. Shriram
Designation :	Dy. Managing Director
Date of Birth/Age :	46 Years
Qualification :	B. Com. [Hons.]
Experience :	27 Years
Date of Appointment :	01.01.1990
Previous Employment :	Dy. General Manager, Shriram Honda Power Equipment Limited
Name :	Mr. S.D. Nigam
Designation :	Whole - Time Director
Name :	Mr. Madhav B. Shriram
Designation :	Whole - Time Director
Date of Birth/Age :	42 Years
Qualification :	B. Com., MBA
Experience :	19 Years
Date of Appointment :	22.05.1990
Previous Employment :	Executive Trainee, Nissho Iwai Corporation
Name :	Mr. Atam Parkash
Designation :	Directors
Name :	Mr. P.R. Khanna
Designation :	Directors
Name :	Dr. V.L. Dutt
Designation :	Directors
Name :	Mr. K.K. Mudgil
Designation :	UTI Nominee
Name :	Mr. S. P. Arora
Designation :	IFCI Nominee

KEY EXECUTIVES

Name :	Mr. B. P. Khandelwal
Designation :	Company Secretary
Name :	Mr. D.C. Mittal
Designation :	President
Date of Birth/Age :	80 Years
Qualification :	B. Com., MA [Eco.]
Experience :	60 Years
Date of Appointment :	28.06.1997
Previous Employment :	Senior Executive President, Modi Alkalies and Chemicals Limited
Name :	Mr. G. Kumar
Designation :	Chief Operating Officer (Sugar)
Name :	Mr. Anil Gujral
Designation :	Chief Operating Officer (Chemicals & Alcohol)
Name :	Mr. V.K-Jhingon
Designation :	Vice President and Resident Head (Rayons)
Name :	Mr. N.K. Jain
Designation :	Chief Financial Officer
Name :	Mr. K N Rao
Designation :	Chief Operating Officer (Rayons)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	Percentage of Holding
Promoters	28.46
FIs, Banks & Mutual Funds	20.92
Others (public)	50.62
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Engaged in manufacturing of chemicals, sugar and textile products.

Products :

ITC Code	17.01
Product Descriptions	Cane Sugar

ITC Code	59.02
Product Descriptions	Tyre Cord Fabric

ITC Code	22.08
Product Descriptions	Undenatured Ethyl Alcohol

ITC Code	2207.10
Product Descriptions	Ethyl Alcohol Rectified Spirit

Exports to :

Europe and USA.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Sugar	Tonnes	11000	137234
Alcohol	K.L.	45000	28965
Organic / Fine Chemicals	Tonnes	14048	8778
Industrial Fibres	Tonnes	16200	6567

GENERAL INFORMATION

Suppliers :	Ø Apex Enterprises Ø Amit Offset Works Ø Atul Rubbers Private Limited. Ø Bhatia Metals Ø Bright Enterprises Ø DKB Engg. Works Ø Dashmesh Auto Engineers Ø Grover & Company Ø Hind Soka Enterprises Ø Hindustan Auto Electric Work Ø Indana Rubber Industries Ø JM Engg. Works Ø Jugnu Electric Works Ø Kota Electronics Ø Kota Glass Works Ø Mittal Industries Ø Nacones Private Limited Ø NK Paper Tube Industries Ø New Shakti Rewinder Ø NSP Tech Services Ø Om Gases & Chemicals Ø PL Engg. Works Ø Punjab Electrical Industries Ø Pentagon Turbines Private Limited Ø Reliable Chemical Industries Ø Universal Stores Supplying Co. Ø Vikas Pumps & Projects Ø CNV Engineering Private Limited. Ø Flexibles, Flow Chem Industries Ø GVT Engg. (I) Private Limited. Ø Maharani Industrial Corporation Ø Mono Industries, N.D. Enterprises Ø Pap-Flon Engineering Co. Ø Pap-Flon Enterprise Pawan Brothers Ø Shefa Engineers Private Limited. Ø Super Scientific Works Private Limited.
No. of Employees :	2689
Bankers :	Ø State Bank of India Ø Punjab National Bank Ø Oriental Bank of Commerce Ø State Bank of Bikaner & Jaipur Ø Punjab & Sind Bank Ø The United Western Bank Limited Ø The Hongkong and Shanghai Banking Corporation Limited Ø Moradabad Zila Sahkari Bank Limited Ø Meerut Zila Sahkari Bank Limited Ø Ghaziabad Zila Sahkari Bank Limited Ø Saharanpur Zila Sahkari Bank Limited Ø The Industrial Development Bank of India Limited Ø State Bank of Hyderabad Ø Karnataka Bank Limited Ø Syndicate Bank

Banking Relations :	Satisfactory
Auditors :	A.F. Ferguson and Company Chartered Accountants New Delhi
Subsidiaries :	Ø Indital Tintoria Limited Ø DCM Shriram Leasing and Finance Limited Ø DCM Shriram International B V Ø Hindon River Mills Limited
Associates:	Ø DCM Hyundai Limited Ø Daurala Organics Limited Ø Daurala Foods & Beverages Private Limited
Memberships:	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity shares	Rs. 10/- each	Rs. 650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15298437	Equity shares	Rs. 10/- 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		152.984	152.984	137.302
2] Share Application Money		0.000	0.000	15.682
3] Reserves & Surplus		1640.041	1671.644	1462.315
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1793.025	1824.628	1615.299
LOAN FUNDS
1] Debentures (Non - convertible)		110.768	209.212	0.000
2] Public deposits		40.011	36.354	0.000
3] Secured Loans		2178.876	1681.983	2514.280
4] Unsecured Loans		16.570	19.939	68.860
TOTAL BORROWING		2346.225	1947.488	2583.140
DEFERRED TAX LIABILITIES		241.353	252.666	283.972
TOTAL		4380.603	4024.782	4482.411
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2268.101	2050.458	1951.903
Capital work-in-progress		143.325	172.158	155.874
INVESTMENT		53.555	30.815	44.815
DEFERREX TAX ASSETS		0.000	0.000	152.094
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2212.019	1966.534	2301.389
	Sundry Debtors	313.696	407.104	444.798
	Cash & Bank Balances	40.566	98.064	272.969
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	433.530	403.178	241.981
Total Current Assets		2999.811	2874.88	3261.137
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	964.706	980.327	976.037
	Provisions	121.399	128.954	117.157
Total Current Liabilities		1086.105	1109.281	1093.194
Net Current Assets		1913.706	1765.599	2167.943
MISCELLANEOUS EXPENSES		1.916	5.752	9.782
TOTAL		4380.603	4024.782	4482.411

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		5995.878	6984.035	6602.700
Other Income		339.052	208.776	396.300
Total Income		6334.930	7192.811	6999.000
Profit/(Loss) Before Tax		57.482	493.579	359.800
Provision for Taxation		41.636	202.662	111.400
Profit/(Loss) After Tax		15.846	290.917	248.400
Expenditures :
	Cost of goods consumed / sold	3702.601	4023.036
	Manufacturing expenses	1168.081	1214.869
	Selling expenses	244.539	286.718
	Salaries, wages and other employee benefits	599.337	574.751
	Managerial remuneration	11.883	21.299	6639.200
	Interest	182.714	215.306
	Depreciation	133.931	119.309
	Auditors' remuneration	2.507	2.449
	Other expenses	231.855	219.782
	Exceptional items	0.000	21.713
Total Expenditure		6277.448	6699.232	6639.200

QUARTERLY RESULTS

PARTICULARS	30.06.2007 (1^st Quarter)	30.09.2007 (2^nd Quarter)	31.12.2007 (3^rd Quarter)
Sales Turnover	1386.400	1404.300	1452.800
Other Income	7.000	88.500	23.900
Total Income	1393.400	1492.800	1476.700
Total Expenditure	1338.300	1465.900	1409.200
Operating Profit	55.100	26.900	67.500
Interest	73.300	70.800	62.400
Gross Profit	[18.200]	[43.900]	05.100
Depreciation	36.100	36.600	37.000
Tax	[16.900]	[43.700]	[4.500]
Reported PAT	[37.400]	[36.800]	[27.400]

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.25	4.04	3.55
Net Profit Margin (PBT/Sales)	(%)	0.96	7.07	5.45
Return on Total Assets (PBT/Total Assets}	(%)	1.09	10.02	6.90
Return on Investment (ROI) (PBT/Networth)		0.03	0.27	4.33
Debt Equity Ratio (Total Liability/Networth)		1.91	1.68	2.28
		2.76	2.59	2.98
Current Ratio (Current Asset/Current Liability)

LOCAL AGENCY FURTHER INFORMATION

HISTORY

DCM Shriram Industries Limited (DSIL), a part of DCM Shriram group, promoted by Bansi Dhar, is a diversified group with operations in Sugar, Alcohol, Organic and Inorganic Chemicals, Drug Intermediates, Rayon Tyrecord, Shipping Containers and processed cotton yarn. 

The company has its manufacturing facilities located at Daurala and Kota.Daurala Sugar Complex, situated at Daurala comprises of a cane sugar plant, distillery with a capacity of 10000 cane crushing per day and an aromatic chemicals unit. Shriram Rayons, situated at Kota comprises rayon tyrecord/yarn/fabric and nylon chafer/fabric plants with capacity of 16200. Daurala Organics, manufactures new generation drug intermediates.  

DSIL has promoted DCM Hyundai Limited to manufacture marine freight containers at Pollivakkam near Chennai and also Daurala Foods & Beverages Private Limited 

In 2003-2004, the company commenced production and supply of Anhydrous Alcohol to the oil companies for admixing with petrol. 

Daurala Organics Limited was amalgamated with the Company w.e.f January 1, 2005 pursuant to scheme of Amalgamation. 

During 2005-2006, In sugar division the company implemented expansion of cane crushing capacity and modernization by adding 2000 TCD capacity, taking the expanded crushing capacity to 10000 TCD. The second phase of the project to add another 2000 TCD crushing capacity. In Rayon division, Rayon operations were upgraded with the addition of 500TPA capacity and installation of state of art Airjet Looms for improving the Fabric quality. The Division has installed a 3.2 MW back pressure turbine and is taking steps to install a high efficiency multi-fuel boiler. 

The companies production capacity of Sugarcane crushing per day expanded from 8000 TPD to 10000 TPD, capacity of Industrial Fibres expanded from 15700 TPA to 16200 TPA and capacity of Organic/Fine Chemicals expanded from 13114 TPA to 13874 TPA. The production capacity of Alcohol stood at 45000 KL per year. 

FINANCIAL RESULTS 

The turn over for the year including other income at Rs.6330 Millions was lower compared to Rs.7190 Millions in the previous year because of low sugar prices and planned maintenance shut down at the Rayon plant during the year. The Gross Profit and the Net Profit were Rs.191 Millions and Rs.16 Millions compared to Rs.630 Millions and Rs.290 Millions respectively in the previous year. Exports of the Company were Rs.1670 Millions against Rs.1860 Millions in the previous year. 

Looking into the limited surplus available for the year and commitments on account of debt servicing the Board of Directors have not recommended any dividend for the year. 

OPERATIONS 

Sugar 

2006-07 turned out to be one of the worst years for the sugar industry. Daurala Sugar Works was no exception, despite significant steps taken to improve productivity and good operation of the plant. The depressed sugar market sentiment due to an all time high production of about 28 million MT for the season against a consumption of about 20 million MT, brought about a steep fall in the selling price of sugar. The unwarranted ban on export of sugar in the early part of the year, when international prices were favourable, resulted in building up of inventory which further impacted the prices. This phenomenon has severely affected the working of the Unit. Of late a few measures such as some support for exports and creation of a buffer stock of 5 million MT have been announced by the Central Government. More is required to be done in the present situation. The State Government has also been approached to consider some relief measures as in the past, and like some other states to help the industry to face the crisis. 

The Uttar Pradesh Government has scrapped the existing Sugar Incentive Policy, which was put in place by the previous Government as being excessive and unjustifiably tilted towards large Units/ Groups. The State Government is reportedly considering a new policy, which hopefully may provide similar benefits to all units, which have undertaken expansion of capacities. 

During the year, cane crushing at DSW at 1.427 Millions MT and sugar production at 0.137 Millions MT was the highest ever so far. An active cane development programme is being undertaken to be able to achieve better recovery in future. 

During the year, under the second phase of expansion/ modernisation, crushing capacity was enhanced and modernisation of sugar plant and power house undertaken. This has taken the total crushing capacity to 11000 TCD. The project shall be completed in the current year. The Company is actively pursuing the upgradation of its co-generation facility to export surplus power so as to reduce the cyclicity of its sugar business. 

Alcohols  

The overall scenario of the Company's Alcohol business was positive with stable sales volumes and higher profitability. Use of Anhydrous Alcohol by Oil Companies improved with the introduction of the Ethanol blending programme in a few more States. This market is slated to steadily grow. 

Chemicals 

The chemical business of the Company showed higher revenues and operating profits during the year, despite higher input prices, greater competition and the appreciation of the Rupee. This was due to increased sales volume and cost reduction. Exports were at an all time high, indicating international acceptance and confidence in the Company's products. During the year Daurala Organics Unit was accredited with ISO 14001:2004 and OHSAS 18001 Certification for environment, and occupational health and safety management systems respectively. 

Rayon 

Taking advantage of inventory build up at customers' end, a shut down was taken to make changes so as to improve productivity and quality of the products in the future. Though this affected our export volumes in the year, this has improved quality and operating efficiencies, which have been appreciated by our customers. Upgradation of our Rayon fabric dipping facilities will open opportunities for value additions. Customers have commenced the approval process of our dipped fabric. This is expected to give the Unit a better position in the market in the coming years. 

Up-gradation and modernization of our power plant by installing a high efficiency multi fuel boiler is in progress. This will reduce energy cost and also promote clean fuel usage. 

Nylon chafer operations were carried-on on a limited scale due to availability of cheaper imports. 

PROMOTED COMPANIES 

DCM Hyundai Limited 

During the year, DHL was successful in arriving at a settlement with its remaining secured creditor, and putting up a fully tied up Rehabilitation Scheme before the Hon'ble BIFR through the Operating Agency. The Scheme was approved by the BIFR on 24.5.2007. On implementation of the Scheme DHLs net worth has become positive as on 31.3.2007, the effective date of the Scheme. 

The company continued its efforts to expand its activities in the area of value added products like special type containers, fabrication work etc. In order to enhance its business domestically, the Company has been "Debonded" from its earlier status of an EOU. 

Others 

With the Company acquiring the shareholding of foreign collaborators, who had ceased to be associated with the operations of Daurala Foods & Beverages Private Limited (DFBL), DFBL has become a subsidiary of the Company. In the current year DFBL has leased its bottling facility to the Company to enable the Company to increase the bottling of licensed brands. 

DCM Shriram Leasing & Finance Limited (name changed to Versa Trading Limited) continued its efforts to recover its dues. The company also ceased to be a NBFC. Opportunities for commencing some trading activities are being explored. 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT  

The Company's business comprises of sugar, alcohol, chemicals and rayon with manufacturing facilities at Daurala (U.P) and Kota (Rajasthan). The performance of each segment during the year and the financials have been covered in the Directors' Report. A record all India production of about 28 million MT of sugar and the resultant depressed market conditions, adversely affected the sugar industry during the year 2006-07. This situation had a significant negative impact in the performance of the Company. 

Industry structure and competitive scenarios for various products are given below: 

Sugar 

After weathering the rough patch of 1999-2003, sugar industry was seeing an uptrend, which along with major incentives offered by the U.P Government resulted in large scale expansion of sugar capacity. Consequently there was record sugar production in 2006-07 resulting in a demand supply mismatch and drop in realisations. This coupled with the increase in cane price and ban on exports when internationally sugar prices were ruling high led to margins being severely affected and inventory reaching very high levels. By the time the export ban was lifted, the international sugar prices had softened due to a substantial increase in World sugar production. 

The situation in U.P is particularly adverse as most of the capacity addition has taken place in the State and the cane price paid to farmers is the highest in the Country. Both the Centre and State Governments have appreciated the problems faced by the industry and some steps like creation of buffer stock, export subsidy etc. have been initiated by the Centre. However, for the industry to recover, much more is required and the government is expected to announce some more reliefs. For the future, some proper methodology for creating a link between sugar price to cane price is required, for stability of the industry. 

The operations of the Company's sugar unit during the period were adversely affected due to factors mentioned above. To mitigate these adverse factors and also to provide stability during downward cycles of sugar business cost control measures and steps for optimizing power generation and efficiencies have been initiated. Further, cogeneration has been identified as a thrust area and the Company is working on a project for co-generation of power for sale to the grid. The project is proposed to be implemented with Clean Development Mechanism (CDM) support under Kyoto protocol. 

Alcohols 

Alcohol production within the Country is likely to increase substantially due to increase in sugar and consequently molasses production. The demand for alcohol in the chemical and potable sectors is expected to increase steadily. As regards Oil companies, a major surge in demand is expected with higher ethanol blending in petrol. Overall, the market is expected to remain competitive. 

Chemicals 

While the chemical business of the Company showed higher revenues and profits due to better volumes, the margins are under pressure due to the increase in cost of raw materials and also appreciation of the Indian Rupee, resulting in lower export realisations and pressure on domestic prices due to threat of cheaper imports. The Company is endeavouring to mitigate the impact of these factors through higher domestic / export sale volumes, improving efficiencies, cost reduction and diversifying into new products. Active Research & Development is undertaken to achieve these gains on a regular basis. In the endeavour to further improve systems and customer confidence the Daurala Organics unit was accredited with ISO 14001:2004 & OHSAS 18001 certification for Environmental and Occupational health & safety management systems respectively. 

Rayon 

Rayon business is predominantly export oriented and supplies tyre cord yarn and fabric to international tyre producers for use in high speed rated tyres. There has been a shift in the requirement from yarn and fabric to treated fabric which gives higher value addition. To meet this demand of customers, the dipping facilities have been upgraded with tie-up of long term funds under Textile Upgradation Fund Scheme. Subsequent to customer audit and samples approval, final approvals are at an advanced stage. Regular orders of treated material are expected which shall help increase volumes. 

Besides value addition, the unit continues to focus on cost control and improving operating efficiencies. A plant shut down was taken for major maintenance resulting in substantial improvement in the qperating efficiencies. Energy is one of the major constituents of the cost of production. To achieve economics in this area focus is on reducing the coal usage as well as to promote usage of clean fuel. As a major step in this direction, the Unit, is installing high efficiency multi fuel boiler with the support of CDM under the Kyoto Protocol. In addition, energy efficient coolers and solar water heating system have been installed.  

FIXED ASSETS

• Land
• Buildings
• Plant and Machinery
• Furniture and fixtures
• Vehicles
• Assets taken finance lease

AS PER WEBSITE

Subject is the flagship company of the DCM Shriram Industrial Group based predominantly in Northern India with a portfolio of products comprising of sugar, alcohol, fine chemicals, rayon tyrecord & textiles. The group has a strong emphasis on technology and quality as also a strong commitment to environmental & social concerns.

DCM Shriram Industries Group - born in 1990 on restructuring of the erstwhile DCM Limited - 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) Limited, manufacturing high-class liquors.

5. DCM Hyundai Limited, manufacturing shipping containers.

As market-driven agglomerate, responsive to customer needs, DCM Shriram Industries group remains committed to continuous modernization, expansion, diversification and innovation.

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.

Milestones

1889 Delhi Cloth Mills founded at Delhi

1932 - Sugar factory set up at Daurala

1934 Textile Mills set up at Lyallpur (Now Faisalabad in Pakistan)

1940 Sugar factory set up at Mawana

1941 Heavy inorganic chemicals plant set up at Delhi

1943 Distillery set up at Daurala

1948 New textile mills set up at Delhi

1958 Spinning mills at Hissar and Silk mills set up at Delhi

1960 PVC, Chlor-alkali and Calcium Carbide plant set up at Kota

1965 Rayon tyrecord plant set up at Kota

1967 Liquor operations started at Daurala

1969 Urea plant set up at Kota

1970 Aromatic chemicals plant set up at Daurala

1972 Textile mills set up at Dasna Computers unit set up at Delhi

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
(Daurala Organics Limited) Yarn dyeing and processing unit established at Alwar
(Indital Tintoria Limited)

1995 Shipping containers company established at Chennai
(DCM Hyundai Limited)

1997 Joint Venture Liquor company established with works at Daurala
(DCM Remy Limited)

2004 Commercial production of Anhydrous Alcohol (for admixing field)

2005 Daurala Organics Limited , amalgamated with DCM Shriram Industries Limited

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, India Prisons Service, Interpol, etc.

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. 39.66
UK Pound	1	Rs. 78.16
Euro	1	Rs. 58.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		66

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions