MIRA INFORM REPORT

 

 

Report Date :

24.11.2008

 

IDENTIFICATION DETAILS

 

Name :

DCM SHRIRAM INDUSTRIES LIMITED

 

 

Registered Office :

Kanchenjunga Building, 5th Floor, 18, Barakhamba Road, New Delhi–110 001

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

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 :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 9000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is part of DCM Group, a medium sized industrial house.

 

Trade relations are fair. Payments are reported as slow but correct. Profit margin is under severe pressure.

 

The company can be considered normal for business dealings at usual trade terms and conditions with slight caution.

 

LOCATIONS

 

Registered/ Corporate Office:

Kanchenjunga Building, 5th 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, 5th 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, 2nd Floor, 23 Kasturba Gandhi Marg, New Delhi – 11000

 

DIRECTORS

 

Name :

Mr.  Tilak Dhar

Designation :

Chairman and 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

 

 

Name :

Mr. G. Kumar

Designation :

Director (sugar Operation)

 

 

Name :

Mr. S.B.Mathur

Designation :

Director

 

 

Name :

Mr. Ravinder Narain

Designation :

Director

 

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)

 

 

Name :

Mr. L. Mishra

Designation :

IFCI Nominee

 

 

Name :

Mr. P.V.Barke

Designation :

Sr. Vice President

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

 

 

 

Promoters

6.137

37.30

FIs, Banks and Mutual Funds

1.672

10.16

Others (public)

8.644

52.54

 

 

 

TOTAL

16.453

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 :

 

Countries:
  • Europe
  • USA.

 

PRODUCTION STATUS AS ON 31.03.2008

 

Particulars

 

Unit

Installed Capacity

Actual Production

Sugar

 

Tonnes

12000

155332

Alcohol

 

K.L.

45000

30114

Organic / Fine Chemicals

 

Tonnes

14048

9097 (c)

Industrial Fibres

 

Tonnes

16200

6007 (d) (e)

 

GENERAL INFORMATION

 

Suppliers :
  • Apex Enterprises
  • Amit Offset Works
  • Atul Rubbers Private Limited.
  • Bhatia Metals
  • Bright Enterprises
  • DKB Engg. Works
  • Dashmesh Auto Engineers
  • Grover and Company
  • Hind Soka Enterprises
  • Hindustan Auto Electric Work
  • Indana Rubber Industries
  • JM Engg. Works
  • Jugnu Electric Works
  • Kota Electronics
  • Kota Glass Works
  • Mittal Industries
  • Nacones Private Limited
  • NK Paper Tube Industries
  • New Shakti Rewinder
  • NSP Tech Services
  • Om Gases and Chemicals
  • PL Engg. Works
  • Punjab Electrical Industries
  • Pentagon Turbines Private Limited
  • Reliable Chemical Industries
  • Universal Stores Supplying Company
  • Vikas Pumps and Projects
  • CNV Engineering Private Limited.
  • Flexibles, Flow Chem Industries
  • GVT Engg. (India) Private Limited.
  • Maharani Industrial Corporation
  • Mono Industries, N.D. Enterprises
  • Pap-Flon Engineering Company
  • Pap-Flon Enterprise Pawan Brothers
  • Shefa Engineers Private Limited.
  • Super Scientific Works Private Limited.

 

 

No. of Employees :

2689

 

 

Bankers :
  • State Bank of India
  • Punjab National Bank
  • Oriental Bank of Commerce
  • State Bank of Bikaner and Jaipur
  • Punjab and Sind Bank
  • The United Western Bank Limited
  • The Hongkong and Shanghai Banking Corporation Limited
  • Moradabad Zila Sahkari Bank Limited
  • Meerut Zila Sahkari Bank Limited
  • Ghaziabad Zila Sahkari Bank Limited
  • Saharanpur Zila Sahkari Bank Limited
  • The Industrial Development Bank of India Limited
  • State Bank of Hyderabad
  • Karnataka Bank Limited
  • Syndicate Bank
  • IDBI Bank Limited
  • Bijnor Zilla sahkari bank lImited

 

Banking Relations :

-

 

 

Auditors :

 

Name :

A.F. Ferguson and Company

Chartered Accountants

Address :

New Delhi

 

 

Subsidiaries :
  • Indital Tintoria Limited
  • DCM Shriram Leasing and Finance Limited
  • DCM Shriram International B V
  • Hindon River Mills Limited

 

 

Associates:
  • DCM Hyundai Limited
  • Daurala Organics Limited
  • Daurala Foods and 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

 

 

 

 

16453400

Equity shares

Rs. 10/- each

Rs. 164.534 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

 

31.03.2006

 

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

164.534

152.984

152.984

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1637.716

1640.041

1671.644

4] (Accumulated Losses)

0.000

0.000

0.000

5] Equity Share Warrants

85.050

0.000

0.000
NETWORTH

1887.300

1793.025

1824.628
 

 

 

 

LOAN FUNDS

 

 

 

1] Debentures (Non - convertible)

86.646

110.768

209.212

2] Public deposits

36.341

40.011

36.354

3] Secured Loans

2893.190

2178.876

1681.983

4] Unsecured Loans

55.764

16.570

19.939
TOTAL BORROWING

3071.941

2346.225

1947.488

DEFERRED TAX LIABILITIES

196.639

241.353

252.666
 

 

 

 
TOTAL

5155.880

4380.603

4024.782
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

2502.014

2268.101

2050.458
Capital work-in-progress

157.212

143.325

172.158
 

 

 

 
INVESTMENT

45.055

53.555

30.815
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories

2963.111

2212.019

1966.534
 
Sundry Debtors

384.243

313.696

407.104
 
Cash & Bank Balances

91.381

40.566

98.064
 
Other Current Assets

0.000

0.000

0.000
 
Loans & Advances

463.218

433.530

403.178
Total Current Assets

3901.953

2999.811

2874.88
Less : CURRENT LIABILITIES & PROVISIONS

 

 

 
 
Current Liabilities

1335.664

964.706

980.327
 
Provisions

114.690

121.399

128.954
Total Current Liabilities

1450.354

1086.105

1109.281
Net Current Assets

2451.599

1913.706

1765.599
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

1.916

5.752
 

 

 

 
TOTAL

5155.880

4380.603

4024.782

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

5570.501

5995.878

6984.035

Other Income

467.237

339.052

208.776

Total Income

6037.738

6334.930

7192.811

 

 

 

 

Profit/(Loss) Before Tax

(75.898)

57.482

493.579

Provision for Taxation

(33.843)

41.636

202.662

Profit/(Loss) After Tax

(42.055)

15.846

290.917

 

 

 

 

Expenditures :

 

 

 

 

Cost of goods consumed / sold

3200.569

3702.601

4023.036

 

Manufacturing expenses

1235.868

1168.081

1214.869

 

Selling expenses

302.927

244.539

286.718

 

Salaries, wages and other employee benefits

649.592

599.337

574.751

 

Managerial remuneration

12.478

11.883

21.299

 

Interest

280.147

182.714

215.306

 

Depreciation

0.000

133.931

119.309

 

Auditors' remuneration

3.426

2.507

2.449

 

Other expenses

428.632

231.855

219.782

 

Exceptional items

0.000

0.000

21.713

Total Expenditure

6113.639

6277.448

6699.232

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2008

30.09.2008

 Type

 

1st Quarter

 2nd Quarter

Sales Turnover

 

1779.000

1972.700

Other Income

 

24.600

105.000

Total Income

 

1803.600

2077.700

Total Expenditure

 

1672.700

1795.200

Operating Profit

 

130.900

282.500

Interest

 

85.200

89.600

Gross Profit

 

45.700

192.900

Depreciation

 

41.200

42.100

Tax

 

03.000

51.300

Reported PAT

 

01.500

99.500

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Debt-Equity Ratio

1.98

1.61

1.89

Long Term Debt-Equity Ratio

1.46

0.64

0.82

Current Ratio

1.51

1.11

1.18

TURNOVER RATIOS

 

 

 

Fixed Assets

2.43

1.99

2.49

Inventory

2.84

3.56

3.95

Debtors

21.07

20.63

19.78

Interest Cover Ratio

0.73

1.31

3.29

Operating Profit Margin(%)

4.77

5.03

9.83

Profit Before Interest And Tax Margin(%)

2.78

3.23

8.42

Cash Profit Margin(%)

1.42

2.01

4.87

Adjusted Net Profit Margin(%)

(0.57)

0.21

3.45

Return On Capital Employed(%)

5.01

6.90

20.51

Return On Net Worth(%)

(3.07)

1.19

24.41

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
(0.69)
0.25

4.04

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
(1.36)
0.96

7.07

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(1.14)
1.09

10.02

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.04)
0.03

0.27

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.39
1.91

1.68

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.69
2.76

2.59

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject is 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 canes 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 and 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.6040.000 millions. was lower compared to Rs.6330.000 millions. in the previous year due to low sugar prices. Gross Profit and Net Profit were Rs.70.800 millions and Rs.(42.100) millions. Compared to Rs. 191.000 millions. And Rs. 16.000 millions. respectively in the previous year. Exports during the year were Rs. 1650.000 millions. Against Rs.1670.000 millions. in the previous year. In view of the loss for the year under review, the Directors have not recommended any dividend for the year

 

OPERATIONS

 

Sugar

 

The year 2007-08 continued to be amongst the worst years ever for the Sugar Industry, and the Company's sugar operations, despite significant steps taken during the year in areas like productivity, cost cutting and value addition, showed a loss. Market sentiment during the financial year remained bearish owing to the continued mismatch between supply and demand and high inventories despite the creation of buffer stock of 5 million MT by the Government. While there was some improvement in the sugar market towards the end of the year in anticipation of lower production in the next season, liberal release of sugar in the free-sale market by the Government has once again dampened the sentiment.

 

During the year, the State Government announced an unrealistic cane price for the season 2007-08 at Rs.125 per qtl. As this price was non-viable in light of the prevailing and anticipated low sugar prices, the sugar factories in U.P. approached the Hon'ble High Court against the above, and the High Court gave an interim order for payment of Rs.110 per qtl, after which the factories started crushing operations.

 

Daurala Sugar Works achieved its highest ever sugar production of0. 156 million MT of sugar by crushing 1.572 millions MT of cane. This was possible due to completion of the second phase of expansion/modernisation, whereby the crushing capacity has been increased to 12,000 TCD. Cane development activities were continued to improve yield and recovery in future.

 

On upgradation and enhancement of the power house at Daurata, the Company commenced supply of power to the grid in March 2008. The project for exporting 12 MW power in the next season, is under implementation.

 

Alcohol

 

The overall performance of the Alcohol business of the Company was satisfactory, despite a rise in the cost of molasses consequent to a 20% decline in molasses production. During the year, the distillery was upgraded with the installation of a multi pressure distillation plant to produce high quality extra neutral spirit. This has given access to a new segment of the market.

 

Chemicals

 

The performance of the Company's chemical business was largely maintained, through innovation in areas of productivity, cost reduction and product mix-changes, inspite of significant increase in prices of major raw materials and appreciation of rupee. Various initiatives are being taken to improve future profitability.

 

Rayon

 

The steps taken last year to upgrade the Rayon plant and the steps taken in the textile area in the current year resulted in improved product quality, export yield and customer satisfaction. As a result, exports in quantitative term increased by 15% over the previous year. During the year a high efficiency multi fuel boiler was commissioned, which will help the Unit to control energy costs and promote the usage of cleaner fuel.

 

Nylon chafer operations were stable.

 

 

 

 

Subsidiary

 

Daurala Foods and Beverages Private Limited have leased its bottling facility to the Company considering the synergy and economies of scale.

 

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. 

 
MANAGEMENT DISCUSSION AND ANALYSIS REPORT

  

Material Development in human resources/ industrial relation front

 

The Company appreciates the importance of an efficient and contented manpower in achieving business goals. The policies in this regard are evolved and pursued accordingly. Industrial relations remained cordial during the year. As on 31.3.2008 the total number of employees on the payrolls of the Company were 2547.

 

Corporate Social Responsibility (CSR)

 

The Company's CSR activities aim at improving the quality of life of people living near its production facilities. Imparting education at affordable cost, promotion of sports, environment protection, development of city infrastructure and promotion of good health and family planning are some of the important areas in this regard. The Company runs Senior Secondary Level Schools at Daurala and Kota. Keeping in view the changing trend the medium of instruction is being switched over from Hindi to English at Dr. Bansi Dhar School, Kota. Sports events are organised regularly and employees are also encouraged to participate in such events organised by others. Annual Shriram Hockey Tournament organised by Shriram Rayons is an important National sports event. Regular monitoring and upgradation of pollution control measures, planting of trees and water conservation are other areas, which receive utmost importance. At Daurala farmers are educated to adopt best agricultural practices, which helped them to enhance their earnings. On the cultural front, apart from organising programmes of children and employees on important occasions, the annual "Shankar Shad Indo-Pak Mushiara" sponsored by the Company is a big draw.

 

Contingent Liabilities as on 31.03.2008

 

Particulars

Rs. In Million

Excise/ Service tax/ Customs Duty matters

75.546

Claims against the Company not acknowledged as debts

(excluding claims by employees, where amount is not ascertaihable)*

90.705

Bills/cheques discounted

197.495

Total

363.746

 

FIXED ASSETS

 

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

 

AS PER WEBSITE

 

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 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.

Daurala Sugar Complex, comprising a cane sugar plant, distillery and an aromatic chemicals unit.


Shriram Rayons, comprising rayon tyrecord/yarn/fabric and nylon chafer/fabric plants.


Daurala Organics, manufacturing new generation drug intermediates.


Daurala Foods and Beverages (P) Limited , manufacturing high-class liquors.


DCM Hyundai Limited, manufacturing shipping containers.


As a market-driven agglomerate, responsive to customer needs, DCM Shriram Industries group remains

committed to continous 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.


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 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. 50.03

UK Pound

1

Rs. 74.42

Euro

1

Rs. 62.71

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

38

 

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