MIRA
INFORM REPORT
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Report Date : |
14.03.2011 |
IDENTIFICATION
DETAILS
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Name : |
THE DHARAMSI MORARJI CHEMICALS COMPANY LIMITED |
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Registered Office : |
Prospect Chambers, 317/21, D N Road, Fort, Mumbai-400001, |
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Country : |
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Financials (as on) : |
30.06.2010 |
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Date of Incorporation : |
12.09.1919 |
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Com. Reg. No.: |
11-000564 |
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CIN No.: [Company
Identification No.] |
L24110MH1919PLC000564 |
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Legal Form : |
Public Limited Liability Company. Company's Shares are Listed on the
Stock Exchange. |
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Line of Business : |
Manufacturers of Chemicals |
RATING & COMMENTS
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MIRA’s Rating : |
Ca (16) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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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 – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Prospect Chambers, 317/21, D N Road, Fort, Mumbai-400001, |
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Tel. No.: |
91-22-22048881-2-3 |
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Fax No.: |
91-22-22813657 |
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E-Mail : |
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Website : |
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Corporate /
Marketing Office: |
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Tel. No.: |
91-251-2682241/2/3/4/5 |
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Fax No.: |
91-251-2682769 |
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Factory : |
Located At
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DIRECTORS
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Name : |
Mr. Dilip P Goculdas |
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Designation : |
ManagingDirector |
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Qualification : |
Inter Commerce |
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Name : |
Mr. Bimal L Goculdas |
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Designation : |
ManagingDirector |
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Qualification : |
B. Chem Engg. M.S. ( |
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Name : |
Mr. D N Vaze |
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Designation : |
Executive Director |
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Qualification : |
B. Com, ACA, AICWA, ACS, CPA ( |
KEY EXECUTIVES
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Name : |
Mr. D T Gokhale |
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Designation : |
Vice President |
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Qualification : |
B.Com., LLB, FCS, CAIIB, AIMA |
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Name : |
Mr. H.C. Pande |
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Designation : |
Senior Vice President |
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Qualification : |
B. E. Chem |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
6332696 |
30.78 |
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Sub Total (A)
(1) |
6332696 |
30.78 |
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2. Foreign |
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Foreign Individuals (NRI / Foreign Individuals) |
4285300 |
21.02 |
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Sub Total (A)
(2) |
4285300 |
21.02 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
0 |
0.02 |
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Financial Institutions / Banks |
532632 |
4.01 |
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Insurance Companies |
57698 |
0.27 |
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Sub Total (B)
(1) |
590330 |
4.30 |
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2. Non
Institutions |
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Bodies Corporate |
1124671 |
5.40 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
3750801 |
21.95 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
2677974 |
13.13 |
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Non Resident Indians |
78133 |
0.88 |
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Trusts |
105661 |
0.50 |
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Clearing Members |
434670 |
2.04 |
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Sub Total (B)
(2) |
618464 |
3.42 |
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(B) = (B) (1) +
(B) (2) |
8171910 |
43.90 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
0 |
0 |
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Total (A) + (B) +(C) |
19380236 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Chemicals |
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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 |
GENERAL INFORMATION
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Bankers : |
v
State Bank of v
Dena Bank v
SBI Commercial and International Bank Limited v
The Federal Bank Limited v
ICICI Bank Limited v
Industrial Development Bank of |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K S Aiyar And Company Chartered Accountant |
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Joint Venture
Company : |
Monsanto-DMCC Enviro-Tech And Engg Limited' (for a part of
the year ended 31 .03.2006) |
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Other Related Company : |
Monsanto Holdings Private Limited (for a part of the year ended 31.03.2006) The Natural Gas Co.Private Limited LP.Gas Equipment Private Limited Jasraj Trading Company Bombay Foods Private Limited |
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Subsidiaries : |
DMCC Oil Terminals (Navlakhi) Limited |
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Associates: |
Borax Morarji
Limited Activity: Producer of
bulk and specialty Boron Chemicals, eco friendly timber, and renewable energy Address: M.G.Road,
Ambernath-421 501, Falcon Chemicals
LLC, Activity: Producer of
construction chemicals, adhesives, PVA latex, Bitumen based waterproofing
compounds, sulfuric acid and various other cutom manufacturing and blending
services. Address: Falcon
Chemicals LLC, P.O. Box :2924, Kosan Industries
Limited Activity: Manufacturer of
valves and regulators for medical and industrial gases, automotive LPG kits,
etc. Address: Laxmi
Insurance building, P.M. Road, Fort Mumbai-400001, Cylingas LLC, Activity: Manufacturer of
Cylinders, tanks, and pressure vessels. |
CAPITAL STRUCTURE
As on 30.06.2010
Authorised Capital : Rs.400.000 million
Issued, Subscribed & Paid-up Capital : Rs.300.578 million
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2010 (15 Months) |
31.03.2009 (18 Months) |
30.09.2007 (18
Months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
300.600 |
300.600 |
296.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(871.200) |
(552.600) |
(275.900) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
(570.600) |
(252.000) |
20.500 |
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LOAN FUNDS |
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1] Secured Loans |
460.700 |
795.500 |
691.200 |
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2] Unsecured Loans |
281.400 |
171.000 |
146.300 |
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TOTAL BORROWING |
742.100 |
966.500 |
837.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
171.500 |
714.500 |
858.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
507.600 |
607.000 |
697.000 |
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Capital work-in-progress |
5.800 |
3.800 |
16.100 |
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INVESTMENT |
0.200 |
50.200 |
84.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
64.400
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71.700
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239.300 |
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Sundry Debtors |
202.200
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219.100
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480.000 |
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Cash & Bank Balances |
26.600
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3.600
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12.600 |
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Fixed Deposits |
6.700
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2.300
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25.600 |
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Loans & Advances |
524.000
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519.200
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512.400 |
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Total
Current Assets |
823.900
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815.900 |
1269.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1071.600
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757.000 |
1268.400 |
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Provisions |
101.500
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89.900 |
70.800 |
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Total
Current Liabilities |
1173.100
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846.900 |
1339.200 |
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Net Current Assets |
(349.200)
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(31.000) |
(69.200) |
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MISCELLANEOUS EXPENSES |
7.100 |
84.500 |
129.500 |
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TOTAL |
171.500 |
714.500 |
858.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2010 (15 Months) |
31.03.2009 (18 Months) |
30.09.2007 (18
Months) |
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SALES |
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Income |
617.200 |
1621.500 |
2606.900 |
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Other Income |
(19.900) |
(34.900) |
37.600 |
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TOTAL (A) |
597.300 |
1586.600 |
2644.500 |
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Less |
EXPENSES |
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Raw Materials |
343.000 |
1121.600 |
1682.800 |
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Power and Fuel |
41.300 |
98.700 |
205.800 |
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Employee Cost |
171.400 |
174.500 |
231.300 |
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Other Manufacturing Expenses |
28.800 |
53.600 |
114.900 |
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Selling and Admin Expenses |
77.400 |
183.000 |
407.400 |
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Miscellaneous Expenses |
60.000 |
22.000 |
47.400 |
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Stock Adjustments |
10.400 |
29.600 |
30.700 |
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Other Written off |
77.400 |
36.900 |
16.200 |
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TOTAL (B) |
809.700 |
1719.900 |
2736.500 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(212.400) |
(133.300) |
(92.000) |
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Less |
FINANCIAL
EXPENSES (D) |
29.500 |
72.200 |
142.600 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(241.900) |
(205.500) |
(234.600) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
76.700 |
115.900 |
126.000 |
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PROFIT BEFORE
TAX (E-F) (G) |
(318.600) |
(321.400) |
(360.600) |
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Less |
TAX (I) |
0.000 |
(48.900) |
(212.200) |
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PROFIT AFTER TAX
(G-I) (J) |
(318.600) |
(272.500) |
(148.400) |
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Earnings Per
Share (Rs.) |
(14.99) |
(12.82) |
(7.12) |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
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30.09.2010 1st
Quarter |
31.12.2010 2nd
Quarter |
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Type |
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Sales Turnover |
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131.660 |
127.280 |
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Total Expenditure |
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126.910 |
140.590 |
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PBIDT (Excl
OI) |
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4.75 |
(13.31) |
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Other Income |
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0 |
0 |
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Operating
Profit |
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4.75 |
(13.31) |
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Interest |
|
5.000 |
4.970 |
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Exceptional
Items |
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0 |
0 |
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PBDT |
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(0.250) |
(18.280) |
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Depreciation |
|
14.750 |
13.530 |
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Profit
Before Tax |
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(15.000) |
(31.790) |
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Tax |
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0 |
0 |
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Reported PAT |
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(15.000) |
(31.790) |
KEY RATIOS
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PARTICULARS |
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30.06.2010 (15 Months) |
31.03.2009 (18 Months) |
30.09.2007 (18
Months) |
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PAT / Total Income |
(%) |
(53.34)
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(17.18) |
(5.61) |
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Net Profit Margin (PBT/Sales) |
(%) |
(51.62)
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(19.82) |
(13.83) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(23.93)
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(22.59) |
(18.33) |
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Return on Investment (ROI) (PBT/Networth) |
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(0.56)
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(1.28) |
(17.59) |
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Debt Equity Ratio (Total Liability/Networth) |
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(3.36)
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(7.20) |
106.18 |
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Current Ratio (Current Asset/Current Liability) |
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0.70
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0.96 |
0.95 |
LOCAL AGENCY FURTHER INFORMATION
Financial Results
The Company has extended the current financial year by three months upto
30* June, 2010 in accordance with the provisions of Sec.210 (4) of the
Companies Act, 1956. Accordingly, financial statements for the current
financial year have been prepared for a period of fifteen months commencing
from 1st April, 2009 and ending on 30* June, 2010.
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 extended financial year ended
30* Jane, 2010.
MANAGEMENT DISCUSSION and ANALYSIS REPORT
(a) Overview of operations
(i) The Companys 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 30* June, 2010 was very small.
(it) The turnover of Commodity Chemicals
during the current financial year ended 30th June, 2010 was also lower at Rs. 340.000
millions as compared to the turnover of Rs. -1020.000 millions. during the
previous financial year ended 31st March, 2009 mainly due to substantial
reduction in seang prices. The turnover of Speciality Chemicals during the
current financial year was also lower at Rs. 270.000 millions, as compared to
the turnover of Rs. 410.000 millions during the previous financial year ended
31st March, 2009, due to reduction in selling prices as well as
lower volumes. The selling prices of
both Commodity Chemicals and Speciality Chemicals were lower during the current
financial year, mainly due to substantial reduction in the purchase prices of
the main raw material viz. sulphur.
Prospects in the Industry:
Fertilisers and Chemicals
The Companys 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.
CORPORATE FINANCIAL RESTRUCTURING
The Management is continuing its
endeavors for Corporate Financial Restructuring, with a view to improve the
operational and financial performance of
the Company. Towards this end, the Company has obtained the requisite approval of its shareholders
under Section 293 (1) (a) of the Companies Act, 1956 for sale/transfer/disposal
of its land, factory buildings and plant
and machinery at its Ambernath Factory.
Contingent
Liabilities not provided for:
(i) Outstanding claims in respect of Excise Duty, Sales Tax etc. 8.364
(ii) Guarantees given by the Company and Company's Bankers 158.704
(iii)
Claims against the company not acknowledged as
debts 2.410
(iv)
Arrears of Cumulative Preference Dividend 21.600
Fixed Assets :
v
v
v Buildings
v Plant & Machinery (Owned)
v Plant & Machinery (Leased)
v Furniture And Equipments
v Vehicles
AS PER WEBSITE
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
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,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.21 |
|
|
1 |
Rs.72.54 |
|
Euro |
1 |
Rs.62.43 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.