MIRA INFORM REPORT

Report Date :

23.12.2011

IDENTIFICATION DETAILS

Name :	THE DHARAMSI MORARJI CHEMICAL COMPANY LIMITED
Registered Office :	Prospect Chambers, 317/21, D.N. Road, Fort, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.09.1919
Com. Reg. No.:	11-000564
Capital Investment / Paid-up Capital :	Rs.300.578 millions
CIN No.: [Company Identification No.]	L24110MH1919PLC000564
Legal Form :	Public Limited Liability Company. Company's Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturers of Chemicals
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is an old and established company but seems to be passing through difficult times at present. Profitability of the company is under severe pressure. There appears huge accumulated losses recorded by the company. Payments are reported as slow and delayed. The company can be considered for business dealings on fully safe and secured terms only.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :

Prospect Chambers, 317/21, D.N. Road, Fort, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-22048881-2-3

Fax No.:

91-22-22813657

E-Mail :

dgokhale@dmcc.com

Website :

http://www.dmcc.com

Corporate / Marketing Office:

M.G. Road, Ambernath (West), Thane – 421 501, Maharashtra, India

Tel. No.:

91-251-2682241/ 2/ 3/ 4/ 5

Fax No.:

91-251-2682769

Factory 1 :

Ambernath: M.G. Road, Ambernath, District Thane - 421 501, Maharashtra, India

Factory 2 :

Roha: 105, MIDC Industrial Area, Audyogik Vasahat Post Office, Dhatav, Roha, District Raigad - 402 116, Maharashtra, India

Factory 3 :

Jhar: Jhar Village, Taluka - Dhari, District Amreli – 365 630, Gujarat, India

Factory 4 :

Khemli: Khemli Village, Tehsil - Mavli, District Udaipur, Rajasthan, India

DIVISION	Email	Telephones	Fax No.
Administration
Corporate	corpdmcc@dmcc.com	91-251-2682241-5	91-251-2682769
Secretarial	secretarial@dmcc.com	91-251-2687738	91-251-2684523
Compliance Officer – Mr. D T Gokhale	dgokhale@dmcc.com	91-251-2687738	91-251-2684523
Investor Complaints	investor@dmcc.com	91-251-2682245	91-251-2684523
Fertilizer and Agro-Business	fertsales@dmcc.com	91-251-2688449/50	91-251-2684523
Chemicals
International Sales	intlsales@dmcc.com	91-251-2684526/27	91-251-2684525
Domestic India - Bulk Chemicals	domcomchem@dmcc.com	91-251-2688441/8442	91-251-2684525
Domestic India – Specialty Chemicals	domsplchem@dmcc.com	91-251-268444/45	91-251-2688443
Purchase	purdmcc@dmcc.com	91-251-2684154	91-251-2684573

DIRECTORS

As on 06.09.2011

Name :

Mr. Haridas Tricumdas Kapadia

Designation :

Director

Address :

Shree Satyam Co-Operative Housing Society, Plot No.65, Sai Section, Ambernath, Thane – 421 501, Maharashtra, India

Date of Birth/Age :

17.02.1935

Date of Appointment :

06.10.1978

DIN No.:

00125090

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24110MH1919PLC000564	The Dharamsi Morarji Chemical Company Limited	Director	06-10-78	06-10-78	-	Active	NO
2	U23200MH1997PLC105710	DMCC Oil Terminals (Navlakhi) Limited	Director	06-02-97	06-02-97	16-06-09	Active	NO
3	L24100MH1963PLC012706	Borax Morarji Limited	Managing director	01-04-00	01-04-00	01-04-09	Active	NO
4	U29198MH1979PTC021361	L P Gas Equipments Private Limited	Director	06-09-04	06-09-04	-	Active	NO

Name :

Mr. Laxmikumar Narottam Goculdas

Designation :

Director

Address :

53/57, Laxmi Insurance Building, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India

Date of Birth/Age :

17.09.1943

Date of Appointment :

06.03.1992

DIN No.:

00459347

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51900MH1982PTC026518	Jasraj Trading Company Private Limited	Director	27-04-89	27-04-89	-	Active	NO
2	L24110MH1919PLC000564	The Dharamsi Morarji Chemical Company Limited	Director	06-03-92	06-03-92	-	Active	NO
3	U23200MH1937PTC002629	Natural Gas Company Private Limited	Director	15-01-93	15-01-93	-	Active	NO
4	L24100MH1963PLC012706	Borax Morarji Limited	Director	19-02-97	19-02-97	-	Active	NO
5	U23200MH1997PLC105710	DMCC Oil Terminals (Navlakhi) Limited	Director	01-04-00	01-04-00	16-06-09	Active	NO
6	U92419MH1946PTC004912	B S and Service Private Limited	Director	01-06-00	01-06-00	-	Active	NO
7	U51100MH1948PTC006525	Phoenix Distributors Private Limited	Director	06-10-03	06-10-03	-	Active	NO
8	U24110MH1962PTC023819	Kosan Industries Private Limited	Director	06-09-04	06-09-04	-	Active	NO
9	U23200MH1977PTC019516	Gocul Gas Private Limited	Director	08-09-05	08-09-05	-	Active	NO
10	U23201MH1970PTC014549	L P Gas Transport and Bottleing Company Private Limited	Director	03-03-09	03-03-09	-	Active	NO
11	U29198MH1979PTC021361	L P Gas Equipments Private Limited	Director	24-11-09	24-11-09	-	Active	NO
12	U40200MH1993PTC074915	Autogas Conversion (India) Private Limited	Director	24-11-09	24-11-09	-	Active	NO
13	U15110MH1942PTC003603	Bombay Foods Private Limited	Director	24-11-09	24-11-09	-	Active	NO
14	U55101MH2008PTC186772	Conservation Corporation Of India Private Limited	Director	23-08-10	12-12-09	-	Active	NO

Name :

Madhu Thakorlal Ankleshwaria

Designation :

Director

Address :

7, Gokul Nivas, Bajaj Road, Vile Parle (West), Mumbai – 400 056, Maharashtra, India

Date of Birth/Age :

23.08.1949

Date of Appointment :

31.07.2009

DIN No.:

02753794

Name :

Mr. Shantilal Tejshi Shah

Designation :

Director

Address :

Mayur, 2^nd Floor, 8^th NS Road, Juhu Schme, Vile Parle (West), Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

28.12.1938

Date of Appointment :

27.07.2010

DIN No.:

00004850

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24110GJ1984PLC007301	Aarti Industries Limited	Director	25-04-90	25-04-90	-	Active	NO
2	U67120MH1995PTC084963	Aarti Corporate Services Limited	Director	25-01-95	25-01-95	-	Active	NO
3	U24116MH1988PLC046048	Surfactant Specialities Limited	Director	15-04-04	15-04-04	-	Amalgamated	NO
4	U24100MH1966PLC013490	Nascent Chemical Industries Limited	Director	05-09-11	01-04-05	-	Active	NO
5	U70109MH2002PTC135736	Crystal Millennium Realtors Private Limited	Director	20-05-05	20-05-05	-	Active	NO
6	U45201MH2001PTC133804	Dhaval Realtors (India ) Private Limited	Director	10-10-05	10-10-05	-	Active	NO
7	U92110MH2004PTC144283	Radiant Entertainments Private Limited	Additional director	24-12-09	24-12-09	-	Active	NO
8	U24297MH2010PLC202582	Aarti Ventures Limited	Director	30-04-10	30-04-10	-	Active	NO
9	L24110MH1919PLC000564	The Dharamsi Morarji Chemical Company Limited	Director	27-07-10	27-07-10	-	Active	NO
10	U45400MH2008PTC183209	Unidus Developers and Logistics Private Limited	Director	30-09-11	15-02-11	-	Active	NO

Name :

Mr. Arvind W. Ketkar

Designation :

Director

Address :

4, Soukhya, Opposite BMC Hospital, VN Purav Marg, Chuna Bhatti, Mumbai – 400 042, Maharashtra, India

Date of Birth/Age :

14.05.1940

Date of Appointment :

22.01.2010

DIN No.:

02863429

KEY EXECUTIVES

Name :	Mr. Bimal Lalitsingh Goculdas
Designation :	Manager
Address :	Mathradas Goculdas Bunglow, 12, French Bridge, Mumbai – 400 007, Maharashtra, India
Date of Birth/Age :	08.11.1968
Date of Appointment :	01.04.2009
PAN No.:	AAFPG3673G
Name :	Mr. Dilip Trimbak Gokhale
Designation :	Secretary
Address :	Parvati Niwas, Savarkar Road, Dombivali (East), Thane – 400 201, Maharashtra, India
Date of Birth/Age :	16.10.1949
Date of Appointment :	11.04.1993
PAN No.:	AASPG1811B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3,671,506	17.27
Bodies Corporate	2,020,795	9.51
Sub Total	5,692,301	26.78
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	4,469,081	21.02
Sub Total	4,469,081	21.02
Total shareholding of Promoter and Promoter Group (A)	10,161,382	47.80
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	4,304	0.02
Financial Institutions / Banks	851,825	4.01
Insurance Companies	57,898	0.27
Sub Total	914,027	4.30
(2) Non-Institutions
Bodies Corporate	1,414,252	6.65
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	4,711,328	22.16
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	3,522,905	16.57
Any Others (Specify)	533,927	2.51
Non Resident Indians	363,166	1.71
Trusts	105,661	0.50
Clearing Members	65,100	0.31
Sub Total	10,182,412	47.90
Total Public shareholding (B)	11,096,439	52.20
Total (A)+(B)	21,257,821	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	21,257,821	-

BUSINESS DETAILS

Line of Business :

Manufacturers of Chemicals

Products :

Item Code No. (ITC Code)	310310.00
Product Description	Single Super Phosphate
Item Code No. (ITC Code)	280700.01
Product Description	Sulphuric Acid
Item Code No. (ITC Code)	280620.00
Product Description	Chlorosulphonic Acid

PRODUCTION STATUS (AS ON 30.06.2010)

Capacities and Production (in M. Tonnes)

Particulars	Licensed/ Registered Capacity 2009-2010 (Per Annum)	Installed Capacity * 2009-2010 (Per Annum)	Actual Production @ April 2009 to June 2010
Single Superphosphate	432000	366000	16005**
Sulphuric Acid 100%	412400	320000	99228
Chlorosulphonic Acid	88000	56500	5408
Sulfamic Acid	10000	10000	854
Alumina Sulphate 17%	52800	52800	--
Ammonium Sulfamate	1500	1500	14
Diethyl Sulphate	5000	5000	1696
Benzene Sulfonyl Chloride	3750	3750	--
Ammonium Silico Fluoride	3000	3000	--
Methane Sulfonic Acid	1000	1000	--
Other Speciality Products	11650	11650	1523

* As certified by the Management

@ Includes production for captive consumption, wherever applicable

** Includes production for 3^rd parties

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of India

v Dena Bank

v SBI Commercial and International Bank Limited

v ICICI Bank Limited

v Industrial Development Bank of India

v The Federal Bank Limited, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loans	01.07.2010 to 31.03.2011 (9 Months) (Rs in millions)	01.04.2009 to 30.06.2010 (15 Months) (Rs. in millions)
Working capital loans banks secured	48.202	460.698
Other debt secured	536.510	299.865
Total	584.712	760.563

Unsecured Loans	01.07.2010 to 31.03.2011 (9 Months) (Rs in millions)	01.04.2009 to 30.06.2010 (15 Months) (Rs. in millions)
Loans directors unsecured	171.543	153.043
Deferred sales tax loan unsecured	22.190	24.314
Other debt unsecured	89.680	104.020
Total	283.413	281.377

Banking Relations :	--
Auditors :
Name :	K.S. Aiyar and Company Chartered Accountants
Associates:	Borax Morarji Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs.10/- each	Rs.300.000 millions
1000000	Preference Shares	Rs.100/- each	Rs.100.000 millions
	Total		Rs.400.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
21258631	Equity Shares	Rs.10/- each	Rs.212.586 millions
880000	Preference Shares	Rs.100/- each	Rs.88.000 millions
	Total		Rs.300.586 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21257821	Equity shares of Rs.10 each [Out of these 82,41,175 Shares of Rs 10 each were allotted as fully paid up by way of Bonus shares by capitalisation of General Reserve 10,05,914 Shares were allotted as fully paid to the shareholders of the erstwhile Udaipur Phosphates and Fertilisers Limited (UPFL) consequent to the Amalgamation of UPFL with the company w.e.f.1-4-1999 and 67,63,437 Equity Shares of Rs.10 each were issued to the existing Shareholders on rights basis] and 4,15,369 Equity Shares were issued to Lenders	Rs.10/- each	Rs.212.578 millions
880000	Preference Shares	Rs.100/- each	Rs.88.000 millions
	Total		Rs.300.578 millions

6,00,000 Redeemable Cumulative Non-Convertible Preference Shares of Rs.100 each aggregating to Rs.60.000 millions are redeemable in Five Equal Installments of Rs.12.000 millions each during the Financial Years 2008-09 To 2012-13. However, The Company has not Redeemed these Preference Shares as per the revised redemption schedule in view of the carried forward losses. As per revised redemption schedule the unpaid dividend on these Preference Shares as at 30.06.2010 is Rs. 34.800 millions (Previous Year Rs. 28.800 millions) at the revised rate of 8 percent p.a. Since, these Preference Shares are cumulative, this dividend amount will be paid in the year, in which the Company declares the same.

Further, 2,80,000 2.5 percent Redeemable Cumulative Non-Convertible Preference Shares of Rs.100 each allotted on 31.12.2007, aggregating to Rs.28.000 millions are redeemable in sixteen equal quarterly installments of Rs.1.750 millions commencing from 1^st April, 2012.

The unpaid dividend on these Preference Shares as at 30.06.2010 is Rs.1.756 millions, at the rate of 2.50 percent p.a.. Since these preference shares are cumulative, this dividend amount will be paid in the year, in which the company declares the same.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		01.07.2010 to 31.03.2011 (9 Months)	01.04.2009 to 30.06.2010 (15 Months)	01.10.2007 to 31.03.2009 (18 Months)
SHAREHOLDERS FUNDS
1] Share Capital		300.578	300.578	300.578
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		352.864	16.588	16.588
4] (Accumulated Losses)		(935.743)	(887.789)	(569.182)
NETWORTH		(282.301)	(570.623)	(252.016)
LOAN FUNDS
1] Secured Loans		584.712	760.563	795.551
2] Unsecured Loans		283.413	281.377	170.958
TOTAL BORROWING		868.125	1041.940	966.509
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		585.824	471.317	714.493
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		484.436	507.573	607.073
Capital work-in-progress		0.114	5.753	3.767
INVESTMENT		0.162	0.162	50.173
DEFERREX TAX ASSETS		265.415	265.415	265.415
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.022	64.422	71.702
	Sundry Debtors	197.039	202.200	219.127
	Cash & Bank Balances	19.508	33.251	5.925
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	64.947	75.287	70.443
Total Current Assets		356.516	375.160	367.197
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	395.244	461.263	517.029
	Other Current Liabilities	94.329	127.057	56.721
	Provisions	31.246	101.523	89.893
Total Current Liabilities		520.819	689.843	663.643
Net Current Assets		(164.303)	(314.683)	(296.446)
MISCELLANEOUS EXPENSES		0.000	7.097	84.511
TOTAL		585.824	471.317	714.493

PROFIT & LOSS ACCOUNT

	PARTICULARS		01.07.2010 to 31.03.2011 (9 Months)	01.04.2009 to 30.06.2010 (15 Months)	01.10.2007 to 31.03.2009 (18 Months)
	SALES
		Operating Revenue (Net)	429.580	596.791	1569.499
		Other Income	4.953	2.863	9.121
		TOTAL (A)	434.533	599.654	1578.620
Less	EXPENSES
		Consumption Materials changes inventories	257.977	347.725	1662.167
		Manufacturing service costs	78.337	98.106
		Employee related expenses	44.842	171.365
		Administrative selling other expenses	37.425	192.985
		TOTAL (B)	418.581	810.181	1662.167
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.952	(210.527)	(83.547)
Less	INTEREST (D)		15.236	28.194	71.282
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.716	238.721	(154.829)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		48.668	79.884	115.899
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(47.952)	(318.605)	(270.728)
Less	TAX (H)		0.002	0.002	1.804
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(47.954)	(318.607)	(272.532)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(887.789)	(569.182)	(296.650)
	BALANCE CARRIED TO THE B/S		(935.743)	(887.789)	(569.182)
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	91.745	124.785	216.351
		Turnkey Projects Sales	1.212	1.501	114.777
	TOTAL EARNINGS		92.957	126.286	331.128
	IMPORTS
		Raw Materials & Boughtouts	7.924	0.000	300.482
	TOTAL IMPORTS		7.924	0.000	300.482
	Earnings/ (Loss) Per Share (Rs.)		(2.48)	(15.37)	(12.82)

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Net Sales	216.460	191.680
Total Expenditure	195.730	193.660
PBIDT (Excl OI)	20.730	(1.980)
Other Income	0.000	0.000
Operating Profit	20.730	(1.980)
Interest	5.980	6.030
Exceptional Items	0.000	0.000
PBDT	14.750	(8.010)
Depreciation	12.440	12.450
Profit Before Tax	2.310	(20.460)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	2.310	(20.460)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	2.310	(20.460)

KEY RATIOS

PARTICULARS		01.07.2010 to 31.03.2011 (9 Months)	01.04.2009 to 30.06.2010 (15 Months)	01.10.2007 to 31.03.2009 (18 Months)
PAT / Total Income	(%)	(11.04)	(53.13)	(17.26)
Net Profit Margin (PBT/Sales)	(%)	(11.16)	(53.39)	(17.25)
Return on Total Assets (PBT/Total Assets}	(%)	(5.70)	(36.09)	(27.79)
Return on Investment (ROI) (PBT/Networth)		(0.17)	(0.56)	(1.07)
Debt Equity Ratio (Total Liability/Networth)		(4.92)	(3.03)	(6.47)
Current Ratio (Current Asset/Current Liability)		0.68	0.54	0.55

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

The Company has closed the current financial year of nine months as on 31^st March, 2011 as decided by the Board of Directors of the Company. Accordingly, financial statements for the current financial year have been prepared for a period of nine months commencing from 1^st July, 2010 and ending on 31st March, 2011. Therefore, the Gross Turnover for the Financial Year ended 31^st March, 2011 is not comparable with the Gross Turnover for the previous Financial Year ended 30^th June, 2010 (15 months).

In view of the loss during the year, the Directors have not recommended any Dividend on Cumulative Preference Shares and Equity Shares of the Company, for the nine months financial year ended 31^st March, 2011.

MANAGEMENT DISCUSSION and ANALYSIS REPORT

OVERVIEW OF OPERATIONS

The Company’s fertiliser business continued to get adversely affected, inter alia, due to strained liquidity and shortage of Working Capital. This has forced the Company to reduce volumes of the fertiliser business, during the year. Consequently the turnover in respect of fertilizers during the current financial year ended 31^st March, 2011 was very small.

The turnover of Commodity Chemicals during the current Financial Year ended 31st March, 2011 was lower at about Rs.240.000 millions as compared to the turnover of about Rs.340.000 millions, during the previous Financial Year ended 30^th June, 2010 mainly due to the fact that the current Financial Year was for 9 months as compared to the previous Financial Year for 15 months. The turnover of Speciality Chemicals during the current Financial Year was also lower at about Rs.190.000 millions, as compared to the turnover of about Rs.270.000 millions during the previous Financial Year ended 30^th June, 2010 mainly due to the fact that the current Financial Year was for 9 months as compared to the previous Financial Year for 15 months.

PROSPECTS IN THE INDUSTRY:

Fertilisers and Chemicals

The Company’s Fertilisers and Chemical businesses continue to be adversely affected by severe working capital constraints experienced by the Company, resulting in reduced capacity utilization. The Company expects to increase its capacity utilization, after completing Corporate Financial Restructuring.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on 31.03.2011)

v Guarantees given by the Company's Bankers Amount to Rs.5.146 millions

v Dispute related to Tax/Interest/Penalty is pending with Appelate Tribunal for 1992-1993 and 1993-1994, amounting Rs.0.691 million and Rs.0.420 million

v Dispute related to Entry Tax for Tax/Interest is pending with High Court, amounting Rs.0.447 million

v Claims against Company not acknowledged as debts amount to Rs.5.576 millions

v Arrears of Cumulative Preference Dividend amount to Rs.40.681 millions

FINANCIAL RESULTS:

PARTICULARS		Quarter ended
		30.06.11 (REVIEWED)
1	Gross Sales	235.579
	Less : A) Excise Duty	14.337
	B) Value Added Tax / Sales Tax	8.412
	Net Sales	212.830
2	Other  Operating Income	3.632
3	Total Income (1+2)	216.462
4	Total Expenditure
a	(Increase)/Decrease In Stock In Trade	6.390
b	Consumption of Raw Materials & Bought Outs	129.578
c	Purchase of Traded Goods	2.439
d	Power & Fuels	12.370
e	Repairs To Plant & Machinery And Buildings	7.412
f	Employees  Cost	15.719
g	Compensation As Per Voluntary Seperation Scheme	-
h	Depreciation	12.439
i	Amortisation Of Lenders' Sacrifice	-
J	Other Expenditure	21.822
	Total Expenditure	208.169
5	Profit/(Loss)  From Operations Before Other Non-Operating Income & Interest  (3-4)	8.293
6	Other Non-Operating Income
7	Profit/(Loss) Before Interest (5+6)	8.293
8	Interest	5.985
9	Profit/(Loss)  After Interest, But Before Tax (7-8)	2.308
10	Current Tax Expense - Wealth Tax	-
11	Net Profit/(Loss) From Ordinary Activities After Tax (9-10)	2.308
12	Extraordinary Items (Net of Tax Expenses)
13	Net Profit/(Loss) For The Period (11+/-12)	2.308
14	Paid-up Share Capital
	Equity - (Rs.10/- each Fully Paid up)	212.578
	Preference - (Rs.100/- each Fully Paid up)	88.000
15	Reserves  Rs.16.588 Millions, Excluding Revaluation Reserves (After Adjusting Carried Forward Loss of Rs.887.789 Millions)	-
16	Basic And Diluted Earnings Per Equity  Share (EPS) (Not Annualised)
	A ) Before Extraordinary Items	0.03
	B ) After Extraordinary Items	0.03
19	Public  Equity Shareholding
	- Number of Shares	10245997
	- Percentage Of Shareholding	48.20%
20	Promoters and Promoter Group Share Holding
	A ) Pledged / Encumbered
	No. of  Shares	9810253
	Percentage of Shares (As % of the total shares holding of promoter and promoter group)	89.09%
	Percentage of Shares (as % of the total share capital of the  company)	46.15%
	B ) Non-Encumbered
	No. of  Shares	1201571
	Percentage of Shares (As % of the total shares holding of promoter and promoter group)	10.91%
	Percentage of Shares (As % of the total share capital of the  company)	5.65%

FIXED ASSETS:

v Freehold Land

v Leasehold Land

v Buildings

v Plant and Machinery (Owned)

v Plant and Machinery (Leased)

v Furniture And Equipments

v Vehicles

WEBSITE DETAILS:

COMPANY PROFILE

Subject has a record of always venturing away from the beaten track to blaze new trails. New situations present new challenges; new problems are not answered by old solutions. One of the most encouraging results of this approach to business is the development of innovative technologies to minimize effluent generation and recycle byproducts into the basic chemical manufacturing process.

With such a track record and quality culture, DMCC has earned the coveted ISO 9001-2000 certification from BVQI to Research and Development and Operations at Roha and Ambernath plants for innovative research and excellence in production methodologies respectively. DMCC is seeking greater involvement with "Responsible Care", an initiative towards greater environmental concern by industry.

The Chairman of the company is Mr. R.M. Goculdas, an Industrialist with over five decades of global business experience. The core management team is made up of professionals with relevant experience and expertise in their respective areas.

With over 85 years' experience spanning many sectors of the chemical industry, DMCC has been at the forefront of offering innovative solutions to customers. They have a leading presence in India and the world market for their products, a fact reflected in export awards. DMCC has a established strong foothold in the discerning global markets which results not only from an expanded sales presence but also from deep sense of commitment to their customer's success.

Some business areas encompassed by DMCC products are:

• Bulk Chemicals

• Pharmaceutical Intermediates

• Intermediates for Personal Care Products

• Specialty Organic and Inorganic Chemicals

• Intermediates for Electroplating Chemicals

• Water Treatment Chemicals

• Descalents

• Flame Retardants

• Fertilisers - Organic, Biofertilisers, Micronutrients

• Boron Minerals and Chemicals

• Polymer and Emulsion Additives

• Leather Processing Additives

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] 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.52.78
UK Pound	1	Rs.82.73
Euro	1	Rs.68.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	1
--RESERVES	1~10	-
--CREDIT LINES	1~10	1
--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		16

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.