MIRA INFORM REPORT

 

 

Report Date :

28.01.2011

 

IDENTIFICATION DETAILS

 

Name :

DIC INDIA LIMITED (with effect from August 6, 2004)

 

 

Formerly Known As :

COATES OF INDIA LIMITED

 

 

Registered Office :

Transport Depot Road, Kolkata - 700 088, West Bengal

 

 

Country :

India

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

02.04.1947

 

 

Com. Reg. No.:

21-15202

 

 

CIN No.:

[Company Identification No.]

L24223WB1947PLC015202

 

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALC00179E

 

 

PAN No.:

[Permanent Account No.]

AABCC0703C

 

 

Legal Form :

Public Limited liability company. The company’s shares are listed on Stock Exchanges

 

 

Line of Business :

Manufacturer of Printing Inks, Surface Coatings and Allied Products.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

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 7934000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financials of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

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

 

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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

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/Corporate Office /factory 1 :

Transport Depot Road, Kolkata - 700 088, West Bengal, India

Tel. No.:

91-33-24496591-6, 24493984/ 85, 24492345/ 46

Fax No.:

91-33-24495267 / 2311 / 0433

E-Mail :

tb.chatterjee@cal.coates.companyin       

coi@dic.co.in

 

 

Factory 2 :

Chandivali Farm, Off Saki Vihar Road, Mumbai - 400 072, Maharashtra, India

 

 

Factory 3 :

7, D.L.F. Industrial Area, Shivaji Marg, New Delhi - 110 015, India

 

 

Factory 4 :

C - 55 A and B, Phase II, Dist. Gautam Budh Nagar, Noida - 201 305, Uttar Pradesh, India

 

 

Factory 5 :

Plot No.633 and 634, G.I.D.C. Industrial Estate, Phase IV, Vatva, Ahmedabad - 382 445, Gujarat, India

 

 

Factory 6 :

92, Sheik Maistry Street, Royapuram, Chennai - 600 013, Tamilnadu, India

 

 

Factory 7 :

66A, Bommasandra Industrial Area, Hosur Road, Anekal Taluk, Bangalore - 562 158, Karnataka, India

 

 

Factory 8 :

66B, Bommasandra Industrial Area, Hosur Road, Anekal Taluk, Bangalore - 562 158, Karnataka, India

 

 

Sales Office and Depots :

Chennai

11, Arathonon Road, Royapuram, Chennai – 600013, Tamilnadu, India

Tel No.: 91-44-5960775

 

New Delhi

25, Community Centre, Phase I, Mayapuri, New Delhi – 110064, India

Tel No.: 91-11-5138970 / 5132533

 

Mumbai

Off. Dr. E Moses Road, Worli., Mumbai – 400018, Maharashtra, India

Tel No.: 91-22-4922251 / 4949529 / 30 / 31 / 4948450 / 43

 

Located at:

 

  • Bangalore
  • Hyderabad
  • Madurai
  • Vadodara
  • Kanpur

 

 

DIRECTORS

 

AS ON 02.06.2010

 

Name :

Dr. Prabir Kumar Dutt

Designation :

Chairman and Chief Executive Officer

Date of Birth/Age :

67 Years

Qualification :

M. Tech, Ph.D

Experience :

44 Years

Date of Appointment :

02.05.1984

 

 

Name :

Mr. Arun Das Chatterjee

Designation :

Whole-time Director

Date of Birth/Age :

56 Years

Qualification :

M.Sc, MBA

Experience :

31 Years

Date of Appointment :

19.05.1978

 

 

Name :

Mr. Dipak Banerjee

Designation :

Director

 

 

Name :

Mr. Samir Bhaumik

Designation :

Whole-time Director

Date of Birth/Age :

55 Years

Qualification :

B.Com(Hons), LLb, FCA

Experience :

31 Years

Date of Appointment :

07.07.1997

 

 

Name :

Mr. Subir Bose

Designation :

Director

 

 

Name :

Mr. Purushottam Lal Agarwal

Designation :

Director

 

 

Name :

Mr. Mitsunobu Miyasaka

Designation :

Director

 

 

Name :

Mr. Biswajit Choudhuri

Designation :

Director

 

 

Name :

Mr. Paul Koek

Designation :

Director

 

 

Name :

Prof Ranjan Das

Designation :

Director

 

 

Name :

Mr. Purushottam Lal Agarwal

Designation :

Director

 

 

Name :

Mr. Bhaskar Nath Ghosh

Designation :

Additional Director

 

 

Name :

Mr. Arun Das Chatterjee

Designation :

Whole time director

 

 

Name :

Mr. Kazuo Kudo

Designation :

Additional Director

 

 

KEY EXECUTIVES

 

Audit Committee:

Mr. Dipak Banerjee - Chairman

 

Mr. Subir Bose

 

Mr. Biswajit Choudhuri

 

Mr. Paul Koek

 

 

Shareholders’/ Investors’ Grievance Committee :

Prof Ranjan Das – Chairman

 

Dr Prabir Kumar Dutt

 

Mr. B S Kampani

 

Mr. Paul Koek

 

 

Remuneration Committee:

Mr. Dipak Banerjee – Chairman

 

Mr. Mitsunobu Miyasaka

 

Mr. Paul Koek

 

 

Name :

Mr. Timir Baran Chatterjee

Designation :

Senior Executive Vice President (Corporate Affairs and Legal) and Company Secretary

Date of Birth/Age :

53 Years

Qualification :

B.Com (Hons), M.Com, FCS, MIIA (USA)

Experience :

32 Years

Date of Appointment :

21.08.1996

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2010

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

(2) Foreign

 

 

Bodies Corporate

6,586,077

71.75

Sub Total

6,586,077

71.75

Total shareholding of Promoter and Promoter Group (A)

6,586,077

71.75

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

9

-

Financial Institutions / Banks

6,734

0.07

Central Government / State Government(s)

240

-

Foreign Institutional Investors

50

-

Sub Total

7,033

0.08

(2) Non-Institutions

 

 

Bodies Corporate

265,935

2.90

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

1,632,587

17.79

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

618,364

6.74

Any Others (Specify)

68,981

0.75

NRIs/OCBs

53,801

0.59

Clearing Members

12,338

0.13

Trusts

2,842

0.03

Sub Total

2,585,867

28.17

Total Public shareholding (B)

2,592,900

28.25

Total (A)+(B)

9,178,977

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)

9,178,977

-

 

 

 

 

BUSINESS DETAILS

 

 

 

Line of Business :

Manufacturer of Printing Inks, Surface Coatings and Allied Products.

 

 

Products :

Product Description

ITC code

Printing Inks

32151100

Lamination Adhesive

35069190

 

PRODUCTION STATUS (As on 31.12.2008)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Printing Inks

Tonnes

N.A.

60936

33244

Synthetic Resins (+)

Tonnes

N.A.

--

--

Press Room Chemicals

Tonnes

N.A.

360

142

Rubber Blankets

Sq. Yards

N.A.

--

15600

 

 

GENERAL INFORMATION

 

Bankers :

v      Bank of Baroda

v      Standard Chartered Bank

v      State Bank of India

v      The Hongkong and Shanghai Banking Corporation Limited

v      ANZ Grindlays Bank PLC, Vereinigtes Konigreich

 

 

Facilities :

Secured Loans :

 

 

As on 31.12.2008

Rs. in Millions

Overdrafts/Working Capital Loans

 

From Banks

88.730

Total

88.730

 

Note:

The Company's borrowings from the Consortium of Banks are secured by:

(i) Mortgage of immovable properties of industrial land at Plot 633 and 634 at Vatwa Industrial Estate at Ahmedabad; Transport Depot Road, Kolkata; Chandivali Farm at Mumbai; Plot C-55A Noida Phase II, U.P. (together with all structures thereon) and also by deposit of title deeds/share certificates in respect of the residential flats at Mumbai, Kolkata, Chennai and New Delhi;

(ii) Hypothecation of movable properties of the Company, including Plant and Machinery, Spares, Stores, Tools and Accessories both present and future;

(iii) Hypothecation of Stock-in-trade of the Company both present and future; and

(iv) Hypothecation of Book Debts of the Company both present and future.

(v) The Consortium of Banks shares the relevant securities on pari passu basis. It is, however, agreed that the banks will release the first charge in case the Company borrows in future against securities mentioned in item (i) above.

 

Unsecured Loans :

 

 

As on 31.12.2008

Rs. in Millions

Short Term Loan from Subsidiary

10.000

Short Term Loan from Banks

100.000

Short Term Loan from others

150.000

Add: Interest Accrued and Due

0.880

Commercial Paper Loan

[Maximum amount outstanding at any time during the year is Rs.150.000 millions]

100.000

Other Loan

 

From Holding Company

45.870

Add: Interest Accrued and Due

1.480

Total

408.230

 

Auditors :

 

Name :

Lovelock and Lewes

Chartered Accountants

 

 

Holding Company :

DIC Asia Pacific Pte Limited, Singapore

 

 

Ultimate Holding Company :

DIC Corporation, Japan

 

 

Subsidiaries :

  • DIC Coatings India Limited
  • Rohit (Printing Inks and Paints) Industries Private Limited (till 31st March, 2007)

 

 

Fellow Subsidiaries :

  • Aekyung Chemical Company Limited
  • Allmake Rollers Limited
  • Bridgestone REI Komposit Sdn. Bhd.
  • Camus Water Technologies LLC
  • Changzhou Huari New Material Company, Limited
  • Chia Lung Chemical Industrial Corp.
  • Coates Brothers (Caribbean) Limited
  • Coates Brothers (East Africa) Limited
  • Coates Brothers (South Africa) Limited.
  • Coates Brothers (West Africa) Limited
  • Coates Brothers (Zambia) Limited (formerly: Coates Zambia Limited)
  • Coates Brothers (Zimbabwe) Private Limited
  • Coates Lorilleux Murekkep Ve Kimya
  • San.Tic.A.S.
  • Coates Screen Inks GmbH.
  • Coates Thailand Limited
  • CST Grafiska AB
  • Dainichi Building Materials, Inc.
  • Dainippon Ink and Chemicals (HK) Limited
  • Dainippon Ink and Chemicals (Philippines) Inc.
  • Ink and Chemicals (Thailand) Company Limited
  • Dainippon Ink Eco-Engineering Company Limited
  • Deqing DIC Synthetic Resins Limited
  • DH Material Inc.
  • DIC Logistics China Company Limited
  • DIC (MALAYSIA) Sdn. Bhd.
  • DIC (Taiwan) Limited
  • DIC (Vietnam) Company Limited
  • DIC Alkylphenol Singapore Pte. Limited
  • DIC Americas Inc.
  • DIC Australia Pty. Limited
  • DIC Bayer Polymer Limited
  • DIC Berlin GmbH R and D Laboratory
  • DIC Capital Corp.
  • DIC Career Company Limited
  • DIC Coatings S.L.
  • DIC Color (Thailand) Company Limited
  • DIC Color Coating, Inc.
  • DIC Colorants Inc.
  • DIC Colorants Taiwan Company Limited
  • DIC Colour and Design Company Limited
  • DIC Compounds (Malaysia) Sdn. Bhd.
  • DIC EP Inc.
  • DIC Epoxy (Malaysia) Sdn. Bhd.
  • DIC Europe GmbH
  • DIC Express Company Limited
  • DIC Filtec Inc.
  • DIC Fine Chemicals Private Limited
  • DIC Global Logistics Company Limited
  • DIC Graphics (Guangzhou) Limited
  • DIC Graphics (Hong Kong) Limited
  • DIC Graphics (Shenzhen) Limited
  • DIC Holdings Austria GmbH
  • DIC Holdings B.V.
  • DIC Imaging Products U.S.A., LLC
  • DIC India Limited
  • DIC Information Service Inc.
  • DIC Interior Company Limited
  • DIC International (Thailand) Company Limited
  • DIC International (USA) LLC
  • DIC International Chemicals(S) Pte. Limited
  • DIC Investments Japan Inc.
  • DIC Korea Corp.
  • DIC Lanka (Private) Limited
  • DIC Lifetec Company Limited
  • DIC Machinery and Printer's Supplies Inc.
  • DIC New Zealand Limited
  • DIC Pakistan Limited
  • DIC Performance Resins GmbH
  • DIC Plapallet Pte., Limited
  • DIC Plastics Inc.
  • DIC Precision Corp.
  • DIC Space Amenity Company Limited
  • DIC Synthetic Resins (Zhongshan) Company Limited
  • DIC Technologies Limited
  • DIC Technology Corp.
  • DIC Zhangjiagang Chemicals Company Limited
  • DIC (China) Company Limited
  • Earthrise Nutritionals LLC
  • ECG Holdings Limited
  • Eques Coatings B.V.
  • Eques Coatings C.V.
  • European Manufacturers Insurance Company Limited
  • Fuji Label Company Limited
  • General Printing Ink Corp.
  • Gibbon Finecal Limited
  • Glenside Properties Limited
  • Guangzhou DIC International Company Limited
  • Gunma Kosoku Offset Inc.
  • Hainan DIC Microalgae Company Limited
  • Hamamatsu Dainippon Ink Hanbai Inc.
  • Hartman d.o.o.
  • Hartmann Druckfarben GmbH
  • Hartmann-Sun Chemical EOOD
  • IMS Concepts S.A./N.V.
  • Inmobiliaria Sunchem S.A. de C.V.
  • Interbak Ambalaj Sanayii Ve Ticaret Anonim
  • Sirketi (Interbak AS)
  • Japan Fine Coatings Inc.
  • Japan Formalin Company Inc.
  • Japan Vilene Company Limited
  • Kangam Chemical Company Limited
  • Kitanihon DIC Company Limited
  • Kyodo Printing Comapny (S'pore) Pte. Limited
  • Kyushu Polymer Company Limited
  • Lidye Chemical Company Limited
  • Lorilleux Maroc S.A.
  • Mizushima Kasozai Inc.
  • Mondis Manufacturers Insurance Company N.V.
  • Nantong DIC Color Company Limited
  • New England Manufacturers Insurance Corp.
  • Nichiei Development Company Limited
  • Nichiei Plastics Inc.
  • Nihon Packaging Material Company Limited
  • Nippon Decor Inc.
  • Nippon Epoxy Resin Manufacturing Company Limited
  • Nippon Plapallet Company
  • Nishinihon Butylphenol Inc.
  • Oxirane Chemical Corp.
  • P.T. DIC Astra Chemicals
  • P.T. Pardic Jaya Chemicals
  • Parker Williams Design Limited
  • PT. DIC Graphics
  • Qingdao DIC Finechemicals Company Limited
  • Qingdao DIC Liquid Crystal Company Limited
  • Renaissance Inc.
  • Rycoline Products LLC
  • Samling Housing Products Sdn. Bhd.
  • SC Funding LLC
  • Seiko PMC (Shanghai) Commerce and Trading Corp.
  • Seiko PMC (Zhangjiagang) Corp.
  • Seiko PMC Corp.
  • Shanghai DIC Ink Company Limited
  • Shanghai DIC International Trading Company Limited
  • Shanghai DIC Pressure-sensitive Adhesive
  • Materials Company Limited
  • Shanghai Long Feng Food Additives Company Limited
  • Shanghai Showa Highpolymer Company Limited
  • Shenzhen Coates Lorilleux Chemicals Limited
  • Shenzhen-DIC Company Limited
  • Shin DIC Kako Company Limited
  • Shin Nihon Kasei Inc.
  • Siam Algae Company Limited
  • Siam Chemical Industry Company Limited
  • Sinclair del Centro America S.A.
  • Sinclair S.A.
  • Societe Fonciere de la Manche
  • Sun Chemical (Chile) S.A.
  • Sun Chemical (Colores) S.A. de C.V.
  • Sun Chemical A/S (Denmark)
  • Sun Chemical A/S (formerly:Coates Lorilleux
  • A/S) (Norway)
  • Sun Chemical AB
  • Sun Chemical AG
  • Sun Chemical AG (S.A., Limited)
  • Sun Chemical B.V.
  • Sun Chemical Central Europe Beteiligungs GmbH
  • Sun Chemical Central Europe Holding and Company KG
  • Sun Chemical Corp.
  • Sun Chemical de Centro America S.A. de C.V.
  • Sun Chemical de Panama S.A.
  • Sun Chemical do Brasil Ltda.
  • Sun Chemical Group B.V.
  • Sun Chemical Group S.p.A.
  • Sun Chemical Holding B.V.
  • Sun Chemical Holding GmbH
  • Sun Chemical Ink Ireland
  • Sun Chemical Inks A/S
  • Sun Chemical Inks S.A.
  • Sun Chemical Investments LLC
  • Sun Chemical Lasfelde GmbH
  • Sun Chemical Limited (Canada)
  • Sun Chemical Limited (U.K.)
  • Sun Chemical Management L.L.C.
  • Sun Chemical Murekkep ve Kimya Sanayi ve Ticaret A.S.
  • Sun Chemical N.V./S.A.
  • Sun Chemical Nyomdafestek Kereskedelmi Es
  • Gyatro KFT (Sun Chemical KFT)
  • Sun Chemical of Michigan LLC,
  • Sun Chemical Osterode Druckfarben GmbH
  • Sun Chemical Oy
  • Sun Chemical Pigments S.L. (formerly:Coates Lorilleux S.A.)
  • Sun Chemical Portugal-Tintas Graficas Ltda.
  • Sun Chemical Printing Ink d.o.o.
  • Sun Chemical S.A.
  • Sun Chemical S.A. de C.V.
  • Sun Chemical S.A.S
  • Sun Chemical s.r.l.
  • Sun Chemical Sp (z.o.o) (formerly:Sun Chemical Sp (z.o.o) Limited)
  • Sun Chemical Ukraine Limited
  • Sun Chemical Zagreb d.o.o.
  • Sun Chemical ZAO
  • Sun Chemical, d.o.o.e.l.
  • Sun Chemical, S.r.o. (Czech Republic)
  • Sun Chemical, S.r.o. (Slovakia)
  • SUNDIC Incorporated
  • Suzhou Lintong Dyestuff Chemical Company Limited
  • Taiyuan Coates Lorilleux Chemicals Limited
  • Techno Science Inc.
  • TFE Company Limited
  • Tien Lee Hong Company Limited
  • Tintas S.A.
  • TOA-DIC Zhangjiagang Chemicals Company Limited
  • TOPIC. Company Limited
  • Tsuruga Chemicals Service Company
  • Tsuruga Terminals Company
  • Watt Gilchrist Limited
  • Weesp Finance C.V.
  • Weesp Unlimited
  • Wuxi DIC Epoxy Company Limited
  • YD Plastics Company Limited
  • Yunnan DIC Ink Company Limited
  • Zhaoqing DIC Gum Rosins Limited
  • Zhongshan DIC Colour Company Limited

 
  •  

 

CAPITAL STRUCTURE

 

As on 02.06.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity Shares

Rs.10/- each

Rs.150.000 millions

 

Issued, Subscribed andPaid-up Capital :

No. of Shares

Type

Value

Amount

9178977

Equity Shares

Rs.10/- each

Rs.91.790 millions

 

Of the above shares:

 

1) 35,013 Shares were allotted as fully paid up pursuant to contracts without payment being received in cash

2) 1 Share was allotted partly for cash amounting to Rs.6.67 and balance Rs.3.33 for other consideration pursuant to contracts,

3) 4,044,351 Shares were allotted as fully paid up Bonus Shares by capitalisation of Share Premium and General Reserve,

4) 6,586,077 (2007: 4,527,888) Shares are currently held by the holding Company, DIC Asia Pacific Pte Limited,

Singapore.

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2009

31.12.2008

31.12.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

91.800

91.790

68.860

2] Share Application Money

0.000

0.000

516.110

3] Reserves & Surplus

1891.600

1711.580

1105.130

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1983.400

1803.370

1690.100

LOAN FUNDS

 

 

 

1] Secured Loans

166.700

88.730

60.950

2] Unsecured Loans

260.000

408.230

147.890

TOTAL BORROWING

426.700

496.960

208.840

DEFERRED TAX LIABILITIES

70.100

59.990

57.540

 

 

 

 

TOTAL

2480.200

2360.320

1956.480

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

670.000

687.350

500.040

Capital work-in-progress

86.700

57.710

182.290

 

 

 

 

INVESTMENT

107.500

107.530

107.530

DEFERREX TAX ASSETS

6.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
592.300
647.610

445.700

 

Sundry Debtors
1269.200
1319.100

1141.040

 

Cash & Bank Balances
251.000
173.450

194.410

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
245.500
237.830

230.910

Total Current Assets
2358.000
2377.990

2012.060

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors and Current Liabilities
683.800
817.180

792.320

 

Provisions
64.200
53.080

53.120

Total Current Liabilities
748.000
870.260

845.440

Net Current Assets
1610.000
1507.730

1166.620

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2480.200

2360.320

1956.480

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2009

31.12.2008

31.12.2007

 

SALES

 

 

 

 

 

Income

4592.500

4719.290

4038.630

 

 

Other Income

103.900

40.640

49.910

 

 

TOTAL                                     (A)

4696.400

4759.930

4088.540

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Consumed

3082.100

3545.210

2993.530

 

 

Expenses

0.000

848.720

774.710

 

 

Discount on Issue of Commercial Paper

0.000

5.320

14.310

 

 

Power and Fuel Cost

80.300

0.000

0.000

 

 

Employee Cost

317.600

0.000

0.000

 

 

Other Manufacturing Expenses

302.500

0.000

0.000

 

 

Selling and Administration Expenses

317.600

0.000

0.000

 

 

Miscellaneous Expenses

141.700

0.000

0.000

 

 

Stock Adjustment

14.500

0.000

0.000

 

 

TOTAL                                     (B)

4256.300

4399.250

3782.550

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

440.100

360.680

305.990

 

 

 

 

 

Less

INTEREST EXPENSES                          (D)

38.200

57.240

71.150

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

401.900

303.440

234.840

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

82.300

71.960

67.690

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

319.600

231.480

167.150

 

 

 

 

 

Less

TAX                                                                  (H)

96.600

80.540

57.920

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

223.000

150.940

109.230

 

 

 

 

 

Less

Extraordinary Items

0.200

--

--

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

536.300

--

--

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

65.500

--

--

 

BALANCE CARRIED TO THE B/S

693.600

--

--

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

23.61

16.56

15.86

 

Diluted

23.61

16.56

15.69

 

QUARTERLY RESULTS

 

PARTICULARS

 

31.03.2010

30.06.2010

30.09.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

1254.650

1380.220

1479.630

Total Expenditure

1152.860

1277.930

1378.740

PBIDT (Excl OI)

101.790

102.290

100.890

Other Income

46.790

9.720

3.630

Operating Profit

148.580

112.010

104.520

Interest

7.390

5.910

3.890

Exceptional Items

0.000

0.000

0.000

PBDT

141.190

106.100

100.630

Depreciation

20.300

21.070

21.760

Profit Before Tax

120.890

85.030

78.870

Tax

24.670

33.150

25.760

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

96.220

51.880

53.110

Extraordinary Items

0.000

251.180

4.390

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

96.220

303.060

57.490

 

KEY RATIOS

 

PARTICULARS

 

 

31.12.2009

31.12.2008

31.12.2007

PAT / Total Income

(%)
4.75
3.17

2.67

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
6.96
4.90

4.14

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.55
7.55

8.31

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.16
0.13

0.10

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.59
1.11

0.62

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
3.15
2.73

2.38

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY:

 

Coates of India, incorporated as a private limited company in Apr.'47, was promoted by Coates Brothers and Company (now known as Coates Brothers) as a wholly-owned subsidiary to manufacture and market printing inks and allied products. The company went public in 1962. Coates Brothers, UK, has a 51% stake in the company. The company is a part of Dainippon Ink and Chemicals Inc. (DIC), Japan. DIC along with its subsidiaries are the world leaders in printing inks with global market share of nearly 40%. During the year 2001 Coates India made a restructuring in their organisation. As per the restructuring DIC is in the process of reorgnising its holdings into single entity viz DIC Asia Pacific Pte Limited The 51% stake conssiting of 3511624 shares held by Coates Brother Plc UK has been acquired Sun Chemical group B.V., in October,2001. Consequent to this acquisition of the shares,the total equity stake held by Sun Chemical group in the company went up to 59.42%. In the second phase DIC Asia Pacific Pte Limited has acquired the entire stake of 59.42% of the paid up capital from Sun Chemical group B.V., through an inter-se transfer within the Group Holding. As on December, 2002 DIC Asia Pacific Pte Limited holds 59.54% stake in Coates of India Limited The first unit to manufacture printing inks, surface coatings and allied products came up in 1947 in Calcutta, and other manufacturing units were established in Chennai (1958), Mumbai (1960), Delhi (1966) and Noida (1990) in a phased manner, to cater to the demands of the local market. Coates has diversified into the production of industrial adhesives for which the technology was supplied by Bostik, UK which commenced its commercial production in Jul.'93. It undertook a chip project for the in-house manufacture of certain intermediate products. This project lead to a significant improvement in the quality and productivity of the company's core business of inks. In March 2001 the company has acquired the entire share capital of Rohit Industries Private Limited with a view to utilise its resources in an effective manner. Rohit has now become a wholly owned subsidiary of the company. The installed capacity of Printing Inks was increased from 15060 Tonnes to 17280 Tonnes. The company has expanded the installed capacity of Printing Ink during the year 2002-03 by 2124 TPA and with this expansion the total capacity has risen to 23376 TPA. The name of the company has been changed during August 2004 from Coates of India Limited to DIC India Limited.

 

OVERVIEW OF THE ECONOMY: 

 
The year 2009 was perhaps the most eventful year in the  Indian  economic front.  The year started with the Indian economy grappling with the  ripple effects  of  the  unprecedented  adverse  global  developments  leading  to recessionary condition with waning domestic demand, shrinkage in industrial production,  lower  export  growth.  The poor  monsoon  also  affected  the agricultural  sector and further compounding the problem during  the  year.

The  Government, to counter the cascading effect, continued its  effort  to revive the economy with the various fiscal and monetary measures introduced from  time to time. The economy slowly started responding to  the  measures from  June,  2009  and the latest reports confirm the same  with  a  marked recovery  in industrial growth, increase in export etc. The very high  rate of inflation, rising crude prices and the fiscal deficit remain a cause  of concern.  With  the  global economy stabilizing,  albeit,  slowly,  if  the Government can address these concerns suitably, India is expected to have a robust economic growth.


INDUSTRY OVERVIEW (PRINTING INK): 

 

Consumption  of  Printing  Ink is directly proportional  to  the  state  of economy.  The demand in both publication and packaging sector was  affected adversely  in most of the developed countries as a consequence of  economic

slowdown.  However, in India the impact was not severe. though the  demand in  publication sector went down considerably. The moderate growth  in  the FMCG segment, however, resulted in growth in the packaging sector.

 

PERFORMANCE REVIEW: 


The Printing Ink market witnessed demand slowdown and sales price came down in general. The slowdown in the economy resulted in the reduction in number of pages by newspaper houses and also in the number of colour advertisement leading  to  lower  demand for News Ink. Packaging  Inks  business  started slowly but subsequently picked up volume. During the year the raw  material cost remained low due to subdued global demand.

 

Due  to  the  above,  the  Company's  overall  net  sales  decreased  from Rs.4,719.29 million to Rs.4,592.52 million registering a decline of  2.68%. Low  raw material cost and improvement in operating efficiency resulted  in

increase in operating margin. Pre-tax profit was Rs.319.53 million compared to Rs.231.48 million earned in the previous year registering an  impressive increase  of  38.04%.  The post tax profit was Rs.222.95  million  in  2009

compared to Rs.150.94 million in the previous year, an increase of 47.71%.

 

SUBSIDIARY COMPANY

 

DIC COATINGS INDIA LIMITED (DCIL)

 

During  the  year  , Pesticide  and  Paint  container  business started  out  in a subdued way but improved subsequently. PP  cap  business performed  at  expected level. Aerosol container business  was  normal  and growing.  Crown  customer  also picked up in  the  latter  half.  Organosol business was stable. There was a decline in the Collapsible tube  business. Battery jacket business was stable.

 

The Company witnessed a increase in sales from Rs.433.84 million in 2008 to Rs.457.56 million. The impact of lower raw material cost and improvement in operational  efficiency  resulted in the profit before tax  being  Rs.71.50 million  as  against  Rs.44.92 million registered  during  the  last  year. Likewise,  profit after tax also increased from 29.78 million  to  Rs.48.32 million in the current year.

 

The  Company had declared an interim dividend of Rs.2.50 per  share  (2596) and  followed  it up with a second interim dividend of  Rs.2.20  (22%)  per share in their meeting held on 22nd October, 2009. The total dividend  pay-out for the year amounted to Rs.50,539,790.90.

 

As  informed to the Stock Exchanges, the Management is  evaluating  various options to divest its shareholdings with DIC Coatings India Limited.

 

As  stipulated  by  Clause  32 of the  Listing  Agreement  with  the  Stock Exchanges, the consolidated financial statements have been prepared by  the Company  in accordance with the applicable accounting standards  issued  by the  institute of Chartered Accountants of India. The audited  consolidated financial  statements together with the Auditors' Report form part  of  the Annual Report.

 

BUSINESS OUTLOOK AND FUTURE PROSPECTS

 

The year 2009 started on a cautious note but caught up pace from the second half  of  the year. The Government stimuli package alongwith  the  inherent strength of the Indian economy helped in preventing the global recessionary trend  from affecting India much. As a result of the same,  the  industrial output surged to 11.7% in November, 2009.

 

It  is expected that the GDP rate projection of 7.2% will be  achieved  for the  current  fiscal.  The primary focus of the next  fiscal  would  be  of consolidation  of the recovery through combination of monetary, fiscal  and other  measures and the GDP is expected to achieve a growth rate  of  8.5%. Economic  growth, favourable monsoon and a favourable  demographic  profile are the key demand drivers of maintaining the momentum in growth.   

 

The Company's business strategy for the current financial year would be to consolidate the business which showed an impressive growth during last year and  to  focus on high quality market segment.  By  integrating  individual technologies  and functions from the Group's wide range of  products,  the Company  will  facilitate  the  development of  new  and  high  performance products  in the commercial printing sectors. Further, the  Company  would focus  on  improving  the operating margins  through  better  productivity, greater  focus on logistics and effective working capital  management.  The concern however remains on the uncertainty in oil price.

 

The  Company's  continued focus on Research and Development  enabled  it  to develop several environment friendly products including certain products in the  field  of high performance to cater to some niche markets. The R  and  D Centre  is  recognized by the Central Government, Ministry of  Science  and Technology. The Company has a basket of several internationally recognised products  and  has  plans to exploit these as well  as  to  increase  sales through new product launches and expanding market network. Effective  plans are  in place for all round cost saving and improvement in productivity  to ensure   satisfactory  growth.  The  Company  will  continue   to   invest substantially in Research and Development to upgrade its product  portfolio and  manufacturing  process  to  cater to the future  demands.  It  is  the endeavour of the Company to deploy resources in a balanced manner so as to secure the interest of the shareholders in the short, medium and long term. With  a significant improved customer base, experience in  varied  markets, continuous  technical assistance from DIC Corporation, Japan,  the  world's largest ink manufacturing company and strong management team, the  Company feels confident of sustained growth in all the market segments.

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2010

 

(Rs. in millions except EPS figure)

Sl.
No.

Particulars

Quarter ended 30th September

Nine months ended
30th September

 

 

2010
(Unaudited)

2010
(Unaudited)

1.

a) Net Sales/Income from Operations

1459.019

4075.299

 

b) Other Operating Income

20.606

39.196

2.






 

Expenditure
a) (Increase)/Decrease in Stock in Trade & W.I.P.
b) Consumption of Raw Materials

c) Purchase of Traded Goods

d) Employee Cost

e) Depreciation

f) Other Expenditure

g) Total

 

(67.960)

1091.769
68.065
104.149
21.764
182.720
1400.507

 

(122.558)
2948.817

204.145
302.931
63.133
476.142
3872.610

3.

Profit from Operations before Other Income,
Interest & Exceptional Items (1-2)


79.118


241.885

4.

Other Income

3.631

60.093

5.

Profit before Interest & Exceptional Items (3+4)

82.749

301.978

6.

Interest

3.894

17.204

7.

Profit after Interest but before Exceptional Items (5-6)

78.855

284.774

8.

Exceptional Item

-

-

9.

Profit (+)/Loss (-) from Ordinary Activities before Tax (7+8)

78.855

284.774

10.

Tax Expense –Current

Fringe Benefit Tax

Deferred

28.935
0.000
(3.183)

82.452
0.000
1.123

11.

Net Profit (+) / Loss (-) from Ordinary Activities after Tax (9-10)

53.103

201.198

12.

Extraordinary Item (Net of Tax Expense)

4.388

255.569

13.

Net Profit (+)/Loss (-) for the period (11+12)

57.491

456.767

14.

Paid up Equity Share Capital

(Face Value of Rs. 10 each)

91.790

91.790

15.

Reserves excluding Revaluation Reserves as per the Balance Sheet of previous accounting year

-

-

16.

a) Earning per Share (EPS) before Extraordinary Items for the period, for the year to date and for the previous year

- Basic

- Diluted



 

5.79
5.79



 

21.92
21.92

 

b) Earning per Share (EPS) after Extra-ordinary Items for the period, for the year to date and for the previous year
- Basic

- Diluted



 

6.26
6.26



 

49.76
49.76

17.

Public Shareholding
- Number of Shares

- Percentage of Shareholding


2,592,900
28.25%


2,592,900
28.25%

18.

Promoters and Promoter Group Shareholding
a) Pledged/Encumbered

--- Number of Shares

--- Percentage of Shares (as a % of the total Shareholding of Promoter and Promoter Group)

--- Percentage of Shares (as a % of the total Share Capital of the Company)

b) Non-encumbered

--- Number of Shares

--- Percentage of Shares (as a % of the total Shareholding of Promoter and Promoter Group)
--- Percentage of Shares (as a % of the total Share Capital of the Company)

 

 

 

-
-

-




6,586,077
100.00%

71.75%

 

 

 

-
-

-




6,586,077
100.00%

71.75%

 

SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH SEPTEMBER 2010

(Rs. in millions)

Sl.
No.

Particulars

Quarter ended 30th September

Nine months ended 30th September

2010
(Unaudited)

2010
(Unaudited)

(Rs. in Lakhs)

(Rs. in Lakhs)

1.

 

2.

 








3.

Segment Revenue


Segment Results
(Profit/(Loss) before Tax and Interest)

 

 




Capital Employed
(Segment Assets - Segment Liabilities)

Inks
Lamination Adhesive
Net Sales

Inks
Lamination Adhesive
Total
Add : Extra-ordinary Item
Less: Unallocable Expenses
Less : Interest
Add : Unallocable Income

 

Total Profit Before Tax

Inks
Lamination Adhesive
Total

1387.279
71.740
1459.019

79.156
8.612
87.768
-
5.160
3.894
0.141

78.855

2482.732
156.219
2638.951

3891.112
184.187
4075.299

246.562
19.097
265.659
293.148
14.759
17.204
51.078

577.922

2482.732
156.219
2638.951

 

Notes:

1.       No investor complaints were received during the quarter ended 30th September, 2010 and no complaints were pending at the beginning and end of the quarter.

2.       The above results for the quarter ended 30th September, 2010 duly reviewed by the Audit Committee, were taken on record by the Board of Directors at its meeting held on 21st October, 2010. As required under the Listing Agreement, the same have been subjected to Limited Review by the Statutory Auditors.

3.       Figures have been regrouped/rearranged wherever considered necessary.

 

FIXED ASSETS:

 

  • Computer Software
  • Land – Freehold
  • Land – Leasehold
  • Buildings
  • Plant and Machinery
  • Furniture and Equipments
  • Transport Vehicles
  • Computers

 

WEBSITE DETAILS:

 

PROFILE:

 

Subject has its registered and head offices at Kolkata and manufacturing facilities at Kolkata, Delhi, Mumbai, Chennai, Noida and Ahmedabad. The industrial coatings manufacturing facility of its wholly owned subsidiary DIC Coatings India Limited is located at Bangalore. DIC India’s major revenues are generated from printing inks.

 

In keeping with its leadership status in its industry, DIC India is a truly all-India company.

 

DIC India is part of Dainippon Ink and Chemicals Inc. of Japan (DIC). DIC, along with its subsidiaries, are the world leaders in printing inks with a global market share of nearly 40 per cent. DIC is not only a leader in Graphic Arts but has a strong presence in printers’ supplies, machinery, pigments and reprographic products.

 

DIC India's product range in inks is truly wide their six factories manufacture inks of diverse kinds including black inks, offset inks, liquid inks, screen inks and print finish inks. These cover virtually all printing processes in use in the country today.

 

The real strength of their impressive product range lies in the consistently high quality of DIC inks. The focus on quality ensures uniformly high reliability of the Company’s products and services. The reliability extends to ensuring both consistent quality as well as, importantly, timely delivery

 

Subject (formerly coats of India), a subsidiary of Dainippon Ink and Chemicals, Japan, is planning to merge, it subsidiaries DIC Coatings India and Rohit Industries with itself. The company will invest 100 millions in the year to increase the news inks capacity of its Noida unit.

 

 

 

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.45.57

UK Pound

1

Rs.72.50

Euro

1

Rs.62.46

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--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

 

68

 

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.