MIRA INFORM REPORT

 

 

Report Date :

24.11.2008

 

 

IDENTIFICATION DETAILS

 

Name :

DUJODWALA PRODUCTS LIMITED

 

 

Registered Office :

Kumbhivali Village 812, Savroli Kharpada Road, Taluka – Khalapur, Khopoli-410203, District Raigad, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

03.07.1981

 

 

Com. Reg. No.:

11-24742

 

 

CIN No.:

[Company Identification No.]

L24110MH1981PTC024742

 

 

Legal Form :

A Public Limited Company. The Company’s shares are listed on the Stock exchanges.

 

 

Line of Business :

Manufacturer and selling of Camphor, Sodium Acetate and byproducts, Terpene Chemicals and Synthetics

 

 

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 1300000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow and Delayed

 

 

Litigation :

Exist

 

 

Comments :

Subject is a part of Dujodwala Group, a medium sized Industrial House having moderate performance and track. Its profit margin is insignificant. Payments are reported as slow and delayed.

 

The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office /

Plant :

Kumbhivali Village 812, Savroli Kharpada Road, Taluka – Khalapur, Khopoli-410203, District Raigad, Maharashtra.

Tel. No.:

91-22-22854618/22824089

E-Mail :

power@bom3.vsnl.net.in

 

 

Administrative Office :

812, Tulsiani Chambers, Nariman Point, Mumbai-400 021, Maharashtra

 

 

DIRECTORS

 

Name :

Mr. Kamalkumar Dujodwala

Designation :

Chairman

 

 

Name :

Mr. Pannkaj Dujodwala

Designation :

Managing Director  

 

 

Name :

Mr. R.K. Shriya

Designation :

Director  

Date of Birth/Age :

31.12.1934

Date of Appointment :

21.08.1995

Qualification :

B.Com.

List of Public Companies In which Outside Directorships held as on 31st March, 2008 :

·         Bajrang Finance Limited

·         Remi Securities Limited

·         Remi Process Plant and Machinery Limited)

·         Advent Investment and Finance Company Limited

Expertise of specific Functional areas :

Dealing in Textiles Business.

 

 

Name :

Mr. Narendra Goenka

Designation :

Director     

 

 

Name :

Ms. Madhavi Kapadia

Designation :

Nominee Director - IDBi Limited

 

 

Name :

Mr. S.C. Sen

Designation :

Whole Time Director 

 

 

KEY EXECUTIVES

 

Audit Committee :

 

 

Mr. Kamalkumar Dujodwala, Chairman

Mr. Narendra Goenka, Member

Ms. Madhavi Kapadia, Member

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 31.03.2008)

 

Names of Shareholders

No. of Shares

Percentage of Holding

Indian Promoters

3549543

41.17

Foreign Promoters

---

---

Mutual Funds and UTI

1900

0.02

Banks / Financial Institutions

600

0.01

Foreign Institutional Investors

---

---

Private Corporate Bodies

746749

8.66

NRIs/ OCBs

336969

3.91

Indian Public

3985839

46.23

Total

8621600

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and selling of Camphor, Sodium Acetate and byproducts, Terpene Chemicals and Synthetics

 

 

GENERAL INFORMATION

 

No. of Employees :

Around 250

 

 

Bankers :

·         The Jammu and Kashmir Bank Limited, Fort, Mumbai, Maharashtra

·         Industrial Development Bank of India Limited, IDBI Tower, Cuffe Parade, Mumbai, Maharashtra

·         HDFC Bank

·         ICICI Bank

·         Citi Bank

·         SBI Khopoli Bank

·         SBICI Bank

 

 

Facilities :

Secured Loans

31.03.2008

(Rs. In Millions)

Term Loan From IDBI

6.994

Rupee Term Loan

 

(Secured against Mortgage on all the immovable and movable assets, present and future guaranteed by all Promotor Directors of the Company alongwith corporate guarantee of Dujodwala Resins and Terpenes Limited)

( Repayable within one year Rs.4.668 millions)

(Previous year Rs.4.668 millions)

 

 

 

Rupee Term Loan

48.000

(Secured against Mortgage on all the immovable and

movable assets, present and future and Personal guarantee of Promotor Directors of the Company-Shri K.R Dujodwala and Shri P.R Dujodwala along with corporate guarantee of Dujodwala Resins and Terpenes Limited and Demand Promissory Note.)

(Repayable within one year Rs. 12.000 millions)

(Previous year Rs. 12.000 millions)

 

 

 

Foreign Currency Loan

(I) Dollar Loan II US $ NIL (US $ 80008.49)

(Previous year US $ 160017.08)

---

 

 

(ii) Dollar Loan-US $ NIL (P. Y.US$ 139250.50) –

(Secured against Mortgage on all the immovable and movable assets, present and future and further personal guarantee of Shri K.R Dujodwala and Shri PR Dujodwala and Demand Promissory Note and Undertaking to reimburse withholding/ any other taxes to IDBI if applicable)

(Previous year US$.557002)

---

 

 

Working Capital Loan from J and K Bank

 

Foreign Currency Loan US$ NIL (P.Y US$2100000)

----

Rupee Demand Loan

116.000

Cash Credit from Jammu and Kashmir Bank

(First charge on Company Current assets. Second charge on Company Fixed assets at Atkargaon and Kumbhivali. Personal guarantee of Shri P.R Dujodwala and Shri K.R Dujodwala and with Corporate guarantee of DRTL)

41.909

 

 

Working Capital Loan from IDBI Bank

 

IDBI Bank Cash Credit A/C

76.730

IDBI-FCNR Loan A/c. –

(Secured against Mortgage on all the immovable and movable assets, present and future and Personal guarantee of Promotor Directors of the Company-Shri K.R Dujodwala and Shri P.R Dujodwala along with corporate guarantee of Dujodwala Resins and Terpenes Limitedand

Demand Promissory Note.)

----

Vehicle Loans: -

Loan from Citibank

0.036

Loan from ICICI bank

1.225

Loan from HDFC bank

1.150

(Secured against Vehicle)

 

Excess Cheque Drawn:

SBI Khopoli/Abhudaya Bank Khopoli 

J and K Bank Current A/c Khopoli

Interest Accrued and Due but not Paid

 

0.701

 

2.113

Total

294.858

 

Unsecured Loans

31.03.2008

(Rs. In Millions)

Sales Tax Defferment

15.077

 

 

Banking Relations :

----

 

 

Auditors :

 

Name :

M/S Sunderlal, Desai and Kanodia

Chartered Accountants 

Address :

903, Arcadia, NCPA Marg, Nariman Point, Mumbai – 400 021, Maharashtra

 

 

Associates/Subsidiaries :

·         Sterling Products

·         Nidhi Chemicals

·         Dujodwala Resin and Terpenes Limited

·         Indo-Euro Securities Limited

·         Alcon Enterprises

·         Chemexcil Corporation

·         Balaji Pine Chemicals Limited

·         Specialty Chemicals

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2008)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1000000

Equity Shares

Rs. 10/- Each

Rs. 10.000 millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8621600

Equity Shares

Rs. 10/- Each

Rs. 86.216 millions

Less :

Calls in Arrears

 

Rs. 0.152 million

 

 

Total

Rs. 86.064 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

86.064

86.064

86.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

165.223

162.175

195.700

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

251.287

248.239

281.800

LOAN FUNDS

 

 

 

1] Secured Loans

294.858

264.135

201.800

2] Unsecured Loans

15.077

15.995

16.900

TOTAL BORROWING

309.935

280.130

218.700

DEFERRED TAX LIABILITIES

45.673

43.157

0.000

 

 

 

 

TOTAL

606.895

571.526

500.500

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

307.025

318.719

280.500

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
264.449

352.092

286.900

 

Sundry Debtors
141.543

72.916

77.000

 

Cash & Bank Balances
10.154

13.605

13.100

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
21.516

31.537

37.200

Total Current Assets
437.662

470.150

414.200

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
137.792

217.343

193.400

 

Provisions
0.000

0.000

0.800

Total Current Liabilities
137.792

217.343

194.200

Net Current Assets
299.870

252.807

220.000

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

606.895

571.526

500.500

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

526.002

487.869

642.900

Other Income

272.002

205.745

0.700

Total Income

798.004

693.614

643.600

 

 

 

 

Profit/(Loss) Before Tax

6.763

4.380

16.100

Provision for Taxation

3.715

[2.741]

[10.500]

Profit/(Loss) After Tax

3.048

7.121

26.600

 

 

 

 

Export Value

144.685

61.622

NA

 

 

 

 

Import Value

182.076

157.693

NA

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses, Administrative Expenses , Selling and Other expenses

152.799

126.475

35.800

 

Raw Material Consumed

449.293

521.229

360.600

 

Purchases made for re-sale

50.876

84.737

NA

 

Increase/(Decrease) in Finished Goods

77.046

[94.293]

73.400

 

Interest

34.458

27.229

19.800

 

Depreciation & Amortization

26.769

23.857

21.900

 

Other Expenditure

NA

NA

116.000

Total Expenditure

791.241

689.234

627.500

 

QUARTERLY RESULTS

 

Year

 

30.06.2008

30.09.2008

Type

 

1st Quarter

2nd Quarter

Sales Turnover

 

312.000

222.000

Other Income

 

1.000

1.100

Total Income

 

313.000

223.100

Total Expenditure

 

293.600

203.100

Operating Profit

 

19.400

20.000

Interest

 

8.200

8.200

Gross Profit

 

11.200

11.800

Depreciation

 

6.600

6.900

Tax

 

0.000

0.000

Reported PAT

 

4.600

4.900

 

KEY RATIOS

 

Year

31.03.2008

31.03.2007

31.03.2006

Debt-Equity Ratio

1.18

0.94

0.85

Long Term Debt-Equity Ratio

0.34

0.38

0.62

Current Ratio

1.05

1.18

1.67

TURNOVER RATIOS

Fixed Assets

1.64

1.50

1.39

Inventory

2.80

2.37

2.65

Debtors

8.05

10.10

8.01

Interest Cover Ratio

1.18

1.13

1.81

Operating Profit Margin(%)

8.25

7.98

8.99

Profit Before Interest And Tax Margin(%)

5.14

4.82

5.58

Cash Profit Margin(%)

3.46

4.09

7.54

Adjusted Net Profit Margin(%)

0.36

0.94

4.14

Return On Capital Employed(%)

8.15

7.09

7.22

Return On Net Worth(%)

1.24

2.68

9.91

 

 

LOCAL AGENCY FURTHER INFORMATION

 

OPERATIONS

During the year, the company has achieved sales and other income of Rs.879.270 millions as against Rs.762.031 millions during the previous year resulting increase of 15.36%. However, the net profit has been declined at Rs.3.048 millions as against Rs.7.121 millions during the previous year mainly on account of higher outgo of interest, provision of depreciation and provision for deferred taxation.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Overview

The Company is engaged in the manufacturing and selling of Camphor, Sodium Acetate and byproducts, Terpene Chemicals and Synthetics. Resins at its units located at Kumbhivali, Taluka Khalapur, Khopoli, Dist.Raigad, Maharashtra.

 

 

Fixed assets:-

·         Land

·         Residential Premises

·         Factory Building

·         Plant And Machinery

·         Vehicles

·         Furniture And Fixtures

·         Computer

·         Office Equipment

·         Office Premises

 

 

Contingent Liabilities

 

Contingent Liabilities - Not provided for in respect of.

 

31.03.2007

(Rs. In Millions)

 

 

Bank Guarantee

0.105

Bank Guarantees issued by Banks on behalf of the company Rs. 0.105 million (Previous Year Rs.0.105 million). These are secured by the charge created in favour of the company's bankers by way of pledge of Fixed Deposit Receipts.[Issued to the Raigad Irrigation Department valid till 4/3/2010]

 

 

Excise Duty

 

- Feb 04 to May 05 (Price Difference)

24.749

- April 99 to March 04 (Central excise duty)

115.895

- April 04 to Nov 04 (Central excise duty)

10.193

- Dec 04 to Sept 05 (Central excise duty)

8.144

- Interest on Excise duty (net.of payment)

16.392

 

 

Claim not acknowledged

 

Customs Department (Sept 01 to June 03)

11.052

Others

0.910

 

The (Other) claim against company not acknowledged as debt is for suite filed in Mumbai High court for Rs 0.765 million by Mumbai Port Trust and claim for Rs 0.127 million by Marine Container Service Limited and Rs 0.002 million by Pacific International Limited as damages charges for container received through them.

 

 

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.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

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

1

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

3

--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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

34

 

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

 

 

 

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