1. Summary Information
|
|
|
Country |
India |
|
Company Name |
DAURALA SUGAR
WORKS CHEMICAL DIVISION OF DCM SHRIRAM INDUSTRIES LIMITED |
Principal Name 1 |
Mr. Tilak Dhar |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Alok B. Shriram |
|
|
|
Registration # |
55-35140 |
|
Street Address |
Kanchenjunga Building, 18, Barakhamba Road, New Delhi
–110001, Delhi, India |
||
|
Established Date |
21.02.1989 |
SIC Code |
-- |
|
Telephone# |
91-11-23321413 (10 Lines) |
Business Style 1 |
Manufacturing |
|
Fax # |
91-11-23310765 / 23315424 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Chemicals |
|
|
# of employees |
2689
(Approximately) |
Product Name 2 |
Sugar |
|
Paid up capital |
Rs. 173,984,370 /- |
Product Name 3 |
Textile Products |
|
Shareholders |
Promoter and Promoter Group - 43.50% Public shareholding – 56.50 |
Banking |
|
|
Public Limited Corp. |
YES |
Business Period |
21 years |
|
IPO |
YES |
International Ins. |
-- |
|
Public |
YES |
Rating |
Ba
(45) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates
|
India |
DCM Hyundai Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,204,000,000 |
Current Liabilities |
2,217,400,000 |
|
Inventories |
3,718,100,000 |
Long-term Liabilities |
2,988,800,000 |
|
Fixed Assets |
2,756,800,000 |
Other Liabilities |
544,200,000 |
|
Deferred Assets |
64,700,000 |
Total Liabilities |
5,750,400,000 |
|
Invest& other Assets |
359,000,000 |
Retained Earnings |
2,178,200,000 |
|
|
|
Net Worth |
2,352,200,000 |
|
Total Assets |
8,102,600,000 |
Total Liab. & Equity |
8,102,600,000 |
|
Total Assets (Previous Year) |
7,121,839,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
8,372,900,000 |
Net Profit |
389,300,000 |
|
Sales(Previous yr) |
8,035,500,000 |
Net Profit(Prev.yr) |
659,300,000 |
MIRA INFORM
REPORT
|
Report Date : |
18.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
DCM SHRIRAM INDUSTRIES LIMITED DAURALA SUGAR WORKS CHEMICAL DIVISION OF DCM SHRIRAM INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
21.02.1989 |
|
|
|
|
Com. Reg. No.: |
55-35140 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.173.984 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74899DL1989PLC035140 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELD06462B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACD0204C AAACD0229M |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing of Chemicals,
Sugar and Textile Products. |
|
|
|
|
No. of Employees
: |
2689 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9400000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered for 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) |
|
|
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 / Divisional Offices 1: |
|
|
Tel. No.: |
91-11-23321413 (10 Lines) / 23759300
/ 23759400 |
|
Fax No.: |
91-11-23310765 / 23315424 |
|
E-Mail : |
|
|
Website : |
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|
|
|
Divisional Offices 2: |
1-89, Himalaya House, 23,
Kasturba Gandhi Marg, |
|
Tel. No.: |
91-11-2331 8609 |
|
Fax No.: |
91-11-2331 8605 |
|
E-Mail : |
|
|
|
|
|
Divisional Offices 3: |
|
|
Tel. No.: |
91-11-23312267/ 2331413 |
|
Fax No.: |
91-11-23313494/ 22351916/
23315424 |
|
E-Mail : |
|
|
|
|
|
Divisional Offices 4: |
204-205, |
|
Tel. No.: |
91-11-2373 9311 |
|
Fax No.: |
91-11-2373 9316 |
|
|
|
|
Divisional Offices 5: |
22-B, Himalaya House, 2nd Floor,
23 Kasturba Gandhi Marg |
|
Tel. No.: |
91-11-23318609/ 23759200 |
|
Fax No.: |
91-11-23318605 |
|
Email : |
|
|
|
|
|
Corporate Office : |
|
|
Tel. No.: |
91-11-23739311 / 23759250 /
23312267 |
|
Fax No.: |
91-11-23739316 / 23313494 /
22351916 |
|
E-Mail : |
|
|
|
|
|
Regional Offices 1: |
208, Marine Charmers, Sir
Vithaldas Thackersey Marg, |
|
Tel. No.: |
91-22-22011440/ 22051455 /
22059207/ 23318609/ 23759200 |
|
Fax No.: |
91-22-22031570/ 23318605 |
|
Email : |
|
|
|
|
|
Regional Offices 2: |
Mumbai Office Sir Vithaldas Chambers, 6th
Floor, 16 Tel. No. :91-22-2045313/1440 Fax No. :91-22-2041570 E-Mail : nfbhatia@dcmsr.com Kolkata Office 26-A, Tel. No. :91-33-4595576 Fax No. :91-33-4590508 23/1A Tel. No. :91-33-22373411 |
|
|
|
|
Factory 1 : |
HRM Premises, Dasna, |
|
|
|
|
Factory 2 : |
Daurala, Meerut District -
250221, |
|
Tel. No.: |
91-121-2588096/ 91-1237-230096/
230100/ 230086/ 230544 |
|
Fax No.: |
91-123-2788131/ 91-1237-230131/
230149/ 230511 |
|
Email : |
|
|
Website: |
|
|
|
|
|
Factory 3 : |
Shriram Nagar, |
|
Tel. No.: |
91-744-2424401/ 02/ 04 |
|
Fax No.: |
91-744-2424403/ 2480003/ 2481519 |
|
E-Mail : |
|
|
|
|
|
Factory 4 : |
Matsya Industrial Area, District
Alwar, Rajasthan |
|
Tel. No.: |
91-144-2281053 / 2811053 |
|
Fax No.: |
91-144-2281253 |
|
E-Mail : |
|
|
|
|
|
Factory 5 : |
Daurala, Meerut District, Uttar
Pradesh |
|
Tel. No.: |
91-121-2288533 |
|
Fax No.: |
91-1237-288511 |
|
|
|
|
Factory 6 : |
Daurala Sugar Works, Daurala, Meerut
District - 250221, Uttar Pradesh |
|
Tel. No.: |
91-1237-288096 – 99 |
|
Fax No.: |
91-1237-288131 |
|
E-Mail : |
|
|
|
|
|
Factory 7: |
104, |
|
Tel No.: |
91-44-22350500 |
|
Fax No.: |
91-44-22353605 |
|
Email : |
|
|
|
|
|
Branch Office : |
Daurala Organics 22-B, Himalya House,
2nd Floor, 23 Kasturba Gandhi Marg, |
DIRECTORS
As on : 31.03.2010
|
Name : |
Mr. Tilak Dhar |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
51Years |
|
Qualification : |
B. |
|
Experience : |
27 Years |
|
Date of Appointment : |
08.09.1980 |
|
Previous Employment : |
Manager, DCM Limited |
|
|
|
|
Name : |
Mr. Alok B. Shriram |
|
Designation : |
Dy. Managing Director |
|
Date of Birth/Age : |
46 Years |
|
Qualification : |
B. Com. [Hons.] |
|
Experience : |
27 Years |
|
Date of Appointment : |
01.01.1990 |
|
Previous Employment : |
Dy. General Manager, Shriram Honda Power Equipment Limited |
|
|
|
|
Name : |
Mr. Madhav B. Shriram |
|
Designation : |
Whole - Time Director |
|
Date of Birth/Age : |
42 Years |
|
Qualification : |
B. Com., MBA |
|
Experience : |
19 Years |
|
Date of Appointment : |
22.05.1990 |
|
Previous Employment : |
Executive Trainee, Nissho Iwai Corporation |
|
|
|
|
Name : |
Mr. Atam Parkash |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. P.R. Khanna |
|
Designation : |
Directors |
|
|
|
|
Name : |
Dr. V.L. Dutt |
|
Designation : |
Directors |
|
|
|
|
Name : |
Mr. K.K. Mudgil |
|
Designation : |
UTI Nominee |
|
|
|
|
Name : |
Mr. S. C Kumar |
|
Designation : |
IFCI Nominee |
|
|
|
|
Name : |
Mr. G. Kumar |
|
Designation : |
Director (sugar Operation) |
|
|
|
|
Name : |
Mr. S.B.Mathur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ravinder Narain |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. B. P. Khandelwal |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
|
|
Designation : |
President |
|
Previous Employment : |
Senior Executive President, Modi Alkalies and Chemicals Limited |
|
|
|
|
Name : |
Mr. G. Kumar |
|
Designation : |
Chief Operating Officer (Sugar) |
|
|
|
|
Name : |
Mr. Anil Gujral |
|
Designation : |
Chief Operating Officer (Chemicals and Alcohol) |
|
|
|
|
Name : |
Mr. V.K-Jhingon |
|
Designation : |
Vice President and Resident Head (Rayons) |
|
|
|
|
Name : |
Mr. N.K. Jain |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. K N Rao |
|
Designation : |
Chief Operating Officer (Rayons) |
|
|
|
|
Name : |
Mr. P. V. Bakre |
|
Designation : |
Sr. Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Names of Shareholders
|
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
278,584 |
1.60 |
|
|
7,290,055 |
41.90 |
|
|
7,568,639 |
43.50 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
7,568,639 |
43.50 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5,267 |
0.03 |
|
|
3,856 |
0.02 |
|
|
1,379,814 |
7.93 |
|
|
1,388,937 |
7.98 |
|
|
|
|
|
|
5,536,061 |
31.82 |
|
|
|
|
|
|
2,607,207 |
14.99 |
|
|
168,808 |
0.97 |
|
|
128,785 |
0.74 |
|
|
|
|
|
|
81,892 |
0.47 |
|
|
2,003 |
0.01 |
|
|
1,777 |
0.01 |
|
|
43,113 |
0.25 |
|
|
8,440,861 |
48.52 |
|
Total Public shareholding (B) |
9,829,798 |
48.52 |
|
Total (A)+(B) |
17,398,437 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
-- |
-- |
|
Total (A)+(B)+(C) |
17,398,437 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Engaged in Manufacturing of
Chemicals, Sugar and Textile Products. |
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Products : |
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Exports : |
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Countries : |
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GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||
|
No. of Employees : |
2689 (Approximately) |
||||||||||||||||||||||||||||
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|
|
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Bankers : |
|
||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
A.F. Ferguson and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Memberships: |
Confederation of Indian Industry |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Associates: |
|
CAPITAL STRUCTURE
As on 31.03.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65000000 |
Equity Shares |
Rs.10/- Each |
Rs.650.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17398437 |
Equity Shares |
Rs.10/- Each |
Rs.173.984 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
174.000 |
173.984 |
164.534 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2178.200 |
1920.193 |
1637.716 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Equity Share
Warrants |
0.000 |
0.000 |
85.050 |
|
|
NETWORTH |
2352.200 |
2094.177 |
1887.300 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2891.700 |
2837.567 |
2979.836 |
|
|
2] Unsecured Loans |
97.100 |
101.687 |
92.105 |
|
|
TOTAL BORROWING |
2988.800 |
2939.254 |
3071.941 |
|
|
DEFERRED TAX LIABILITIES |
544.200 |
337.001 |
196.639 |
|
|
|
|
|
|
|
|
TOTAL |
5885.200 |
5370.432 |
5155.880 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2756.800 |
2737.036 |
2502.014 |
|
|
Capital work-in-progress |
286.400 |
197.642 |
157.212 |
|
|
|
|
|
|
|
|
INVESTMENT |
72.600 |
87.142 |
45.055 |
|
|
DEFERREX TAX ASSETS |
64.700 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3718.100
|
2895.214
|
2963.111 |
|
|
Sundry Debtors |
634.400
|
688.575
|
384.243 |
|
|
Cash & Bank Balances |
123.600
|
132.311
|
91.381 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
446.000
|
383.919
|
463.218 |
|
Total
Current Assets |
4922.100
|
4100.019 |
3901.953 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
|
Other Current Liabilities |
2060.000
|
1591.509
|
1335.664 |
|
|
Provisions |
157.400
|
159.898
|
114.690 |
|
Total
Current Liabilities |
2217.400
|
1751.407 |
1450.354 |
|
|
Net Current Assets |
2704.700
|
2348.612
|
2451.599 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5885.200 |
5370.432 |
5155.880 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8372.900 |
8035.500 |
5523.900 |
|
|
|
Other Income |
362.800 |
440.300 |
467.200 |
|
|
|
TOTAL (A) |
8735.700 |
8475.800 |
5991.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials |
5570.200 |
4532.500 |
3900.300 |
|
|
|
Power and Fuel Cost |
611.100 |
597.700 |
375.200 |
|
|
|
Employee Cost |
729.400 |
655.800 |
631.400 |
|
|
|
Other Manufacturing Expenses |
852.500 |
964.800 |
852.900 |
|
|
|
Selling and Administrative Expenses |
300.200 |
372.500 |
370.500 |
|
|
|
Miscellaneous Expenses |
243.700 |
395.500 |
209.600 |
|
|
|
Stock Adjustment |
(566.900) |
(2.300) |
(699.700) |
|
|
|
TOTAL (B) |
7740.200 |
7516.500 |
5640.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
995.500 |
959.300 |
350.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
232.800 |
352.000 |
280.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
762.700 |
607.300 |
70.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
190.700 |
171.000 |
146.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
572.000 |
436.300 |
(75.900) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
182.700 |
148.500 |
(33.800) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
389.300 |
287.800 |
(42.100) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
825.400 |
659.300 |
682.400 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
1101.000 |
825.400 |
659.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
21.62 |
16.20 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2010 (1st Quarter) |
|
Gross Sales |
|
|
2084.200 |
|
Other Operating Income |
|
|
50.300 |
|
Other Income |
|
|
18.800 |
|
Total Income |
|
|
2153.300 |
|
Total Expenditure |
|
|
2227.600 |
|
PBIDT |
|
|
(74.300) |
|
Interest |
|
|
90.700 |
|
PBDT |
|
|
(165.000) |
|
Depreciation |
|
|
48.700 |
|
Tax |
|
|
(71.100) |
|
Fringe Benefit Tax |
|
|
0.000 |
|
Deferred Tax |
|
|
0.000 |
|
Reported Profit After Tax |
|
|
(142.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.46 |
3.40 |
(0.70) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.83 |
5.43 |
(1.37) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.45 |
6.38 |
(1.19) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24 |
0.21 |
(0.04) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.21 |
2.24 |
2.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.22 |
2.34 |
2.69 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is a part of DCM Shriram group, promoted by Bansi
Dhar, is a diversified group with operations in Sugar, Alcohol, Organic and
Inorganic Chemicals, Drug Intermediates, Rayon Tyrecord, Shipping Containers
and processed cotton yarn.
The company has its manufacturing facilities located at Daurala and
Kota.Daurala Sugar Complex, situated at Daurala comprises of a cane sugar
plant, distillery with a capacity of 10000 canes crushing per day and an
aromatic chemicals unit. Shriram Rayons, situated at
Subject has promoted DCM Hyundai Limited to manufacture marine freight
containers at Pollivakkam near Chennai and also Daurala Foods and Beverages
Private Limited
In 2003-2004, the company commenced production and supply of Anhydrous Alcohol
to the oil companies for admixing with petrol.
Daurala Organics Limited was amalgamated with the Company w.e.f January 1, 2005
pursuant to scheme of Amalgamation.
During 2005-2006, In sugar division the company implemented expansion of cane
crushing capacity and modernization by adding 2000 TCD capacity, taking the
expanded crushing capacity to 10000 TCD. The second phase of the project to add
another 2000 TCD crushing capacity. In Rayon division, Rayon operations were
upgraded with the addition of 500TPA capacity and installation of state of art
Airjet Looms for improving the Fabric quality. The Division has installed a 3.2
MW back pressure turbine and is taking steps to install a high efficiency
multi-fuel boiler.
The Companies production capacity of Sugarcane crushing per day expanded from
8000 TPD to 10000 TPD, capacity of Industrial Fibres expanded from 15700 TPA to
16200 TPA and capacity of Organic/Fine Chemicals expanded from 13114 TPA to
13874 TPA. The production capacity of Alcohol stood at 45000 KL per year.
FINANCIAL RESULTS
Turnover for the year including other income at Rs.8740.000 millions was at an all time high against Rs.8350.000 millions in the previous year. Gross profit and net profit of Rs.760.000 millions and Rs.570.000 millions as compared to Rs.610.000 millions and Rs.440.000 millions, respectively are also the highest ever.
OPERATIONS
SUGAR
During the year, the Company achieved a sugar production of 12.000 millions MT by crushing 1.305 millions MT of cane against 0.125 millions MT sugar and 1.331 millions MT of cane in the previous year. The performance of the Unit was satisfactory with crush being the highest in the State. The Unit commissioned a new 90 TPH boiler and achieved a peak export of 19 MW power to the Grid.
The first three quarters of the year saw sugar prices at very attractive levels anticipating low domestic and international production. The Government initiated various steps to control sugar prices. However, the subsequent unexpected upward revision of domestic and global sugar production estimates resulted in sugar prices collapsing drastically. In the changed scenario, the high cane prices paid in anticipation of the continued strength in the sugar markets, in order to combat diversion of cane to the unorganised sector, became unrealistic. Domestic prices remain weak due to the reluctance of the Government to roll back the price control measures in place, as also a collapse of the global markets due to higher production prospects for next year.
The State Government announced a higher SAP of Rs.165 per quintal of cane for the season 2009-10. The Central Government in the meantime amended the Sugar Cane (Control) Order, 1966 replacing 'minimum price' with 'fair and remunerative price' (FRP). The intention was that if any authority fixed a cane price above FRP, the said authority was to bear the difference, so as to insulate sugar mills from any unrealistic cane pricing. This provision was subsequently withdrawn, bringing the situation back to square one, and leaving the mills vulnerable to unrealistic cane pricing/ litigation once again.
Overall, considering the volatility seen in the industry last year, the performance of the Company's Sugar Unit has been satisfactory.
The Company has taken in hand debottlenecking of cane crushing capacity, as also an expansion of its cogeneration facility so as to increase the peak export of power to the Grid to 23 MW in the next season.
ALCOHOL
Overall performance of the alcohol business was maintained despite volumes being largely limited to captive molasses availability. The market was sluggish because the alcohol based chemical sector reduced purchases of domestic alcohol as imported alcohol and finished products were cheaper, and off take by oil companies for blending with petrol was low. Towards the end of the year, molasses availability as well as alcohol demand from the chemical sector have shown some signs of revival.
CHEMICALS
The performance of the Company's chemical business was largely maintained despite appreciation of the Rupee and increased competition leading to lower sales volumes and prices towards the year end. This was achieved by focusing on raising productivity and cost reduction.
To further consolidate its market position, the Company is undertaking expansion wherever viable and diversification in its range of products.
RAYON
In spite of the global recession they succeeded in maintaining their market share. The Unit improved its operating margins through better realizations and improved operating efficiencies. Continuous use of the TQM philosophy enabled the Unit in improving product quality and reduce process wastages.
To control energy costs and also promote clean fuel usage, one more boiler is being modified to use agro fuels in place of coal. With this the carbon foot print of the Unit should come down significantly in the current year.
The Unit achieved higher domestic sale of Nylon Chafer as well as Carbon di Sulphide. Subsidiary
The bottling facility of Daurala Foods and Beverages Private Limited continued to be on lease with the Company.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
The Company's
business comprises of sugar, alcohol, power,
chemicals and rayon, with
manufacturing facilities at Daurala (U.P.)
and
The industry situation and competitive scenarios for the various products are given below:
SUGAR
The year 2009-10 commenced with a backdrop of low sugar inventories in the Country due to the drop in sugar production in 2008-09. In the light of the low sugar production estimates of 15 million MT for the season 2009-10 as against consumption of 23 million MT, the markets became bullish. This was further aggravated by the estimated drop in global sugar production. The higher sugar prices resulted in intense competition for cane, fueling a cane price war particularly in U.P., on the one hand and various concessions being given by the Government to facilitate import of raw and white sugar into the Country on the other hand.
The Government also implemented tough measures like weekly release orders, stipulating 10 days stocking level for institutional consumers etc. This prompted institutional buyers to contract large quantities of imported
sugar (reportedly equivalent to 8-9 months of their requirement) and thereafter purchasing only small quantities domestically. The domestic production estimates increased to over 18 million MT from 15 million MT earlier. Consequent to all the above, the price of sugar dropped to around Rs.2800 per qtl from a peak of Rs.4400 per qtl in the first week of January, 2010.
In light of the dramatically changed scenario, the industry has been pursuing with the Government, the need to reverse some of its policies, such as permitting import of raw and white sugar without duty; the abnormally low stock limit for domestic sugar for institutional buyers; exemption of levy obligation and release controls on imported sugar and reduction in levy sugar to 10% from the present 20%.
The operations of the Company's sugar Unit during the period were satisfactory with the Unit achieving a crush of 1.305 millions MT, which was the highest in the region. During the year, the Unit commissioned a 90 TPH high efficiency boiler and achieved a peak export of power to the grid of 19 MW. Steps are in hand to debottle-neck capacity and further increase co-generation to 23 MW in the next season.
Going forward, it appears clear that the deficit scenario a
year ago is now over and the abnormal buoyancy in both sugar and sugar cane
pricing are no longer realistic. The
coming year shall be a difficult one in which sincere efforts will
be necessary to revert cane prices
to realistic levels commensurate with the change in sugar
prices scenario. In the longer run it would
appear that volatility will continue given the fact that production swings in the two largest sugar
producing countries,
costs and conversion costs both must strive for international competitiveness.
ALCOHOL
In spite of a 40% decline in alcohol production in U.P., due to a corresponding reduction in sugar production, the market remained dull, as the alcohol-based chemical sector remained largely closed due to cheaper imports of their end products.
To improve profitability, the Company is endeavouring to expand sales of value added products, and is also attempting to enter the export market. Simultaneously, the Company has opted out of potable alcohol operations for now, since they are currently not viable.
The sugar and alcohol industries are making sustained efforts with the oil sector/ Government to resume blending of alcohol with Motor Spirits, at prices which are remunerative to the industry. If successful, this move should greatly improve the prospects of the alcohol industry.
CHEMICALS
While the chemical business of the Company showed lower revenues mainly due to lower export business and appreciation of the Rupee which also resulted in pressure on domestic prices, increased competition and lower sales volumes, the Company was able to maintain the profits at last year's level. This was achieved by focusing on productivity, cost reduction and product mix.
In-house R and D and diversification in the segment has been the mainstay of the Company's operations and have helped in continuously upgrading quality, improving efficiencies and introducing new products.
To further consolidate its market position, the Company is undertaking expansion and diversification wherever viable, including introduction of new products.
RAYON
The Unit operates in export market and supplies tyre cord, yarn and fabric to international tyre producers. In spite of the market being affected by global recession the Unit substantially improved its operating margins with
better realization and cost control.
Continuous focus on the TQM philosophy resulting in improvement in quality systems, enabled the Unit to further improve product quality, operating efficiencies, productivity and reduce wastages.
Based on requirement from international tyre companies the Unit upgraded its dipping plant for supplying value added treated fabric. With successful approvals of the product the Unit has been able to increase the sale of
treated fabric in place of grey fabric.
To reduce the energy cost the Unit had already commissioned an efficient Multi-fuel Fluidised Bed Combustion (FBC) Boiler. With encouraging result the Unit is further modifying one more boiler for agro-fuel consumption to
substantially reduce its carbon foot print.
The Unit recorded higher sale in domestic market with increase in sale of Nylon Chafer and Carbon di Sulphide.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2010
(Rs. In millions)
|
Particulars |
Three
Month Ended |
|
|
30.06.2010 (unaudited) |
|
1. (a)Net sales |
2084.200 |
|
(b) Other Operating Income |
50.300 |
|
Total |
2134.500 |
|
2 EXPENDITURE |
|
|
a) Increase / (decrease) in stock in trade and work in progress |
613.200 |
|
b) Consumption of raw materials |
894.900 |
|
c) Purchase of Traded Goods |
154.200 |
|
d) Employee Cost |
190.400 |
|
e) Depreciation |
48.700 |
|
f) Stores, Spares and Components |
106.300 |
|
g) Power and Fuel |
128.900 |
|
f) Other expenditure |
139.700 |
|
Total |
2276.300 |
|
3. Profit/ (Loss) from operations before other income and interest |
(141.800) |
|
4. Other income |
18.800 |
|
5. Profit / (Loss) before Interest |
(123.000) |
|
6. Interest |
90.700 |
|
7. Profit / (Loss) from ordinary activities before tax |
(213.700) |
|
8. Tax Expenses |
(71.100) |
|
9. Net Profit/ (Loss) for the period |
(142.600) |
|
10. Paid-up equity share capital (face value Rs.10/- per share) |
174.000 |
|
11. Reserves (excluding revaluation reserves) |
|
|
12. Basic and Diluted Earning per share for the period (Rs.) |
(8.20) |
|
13. Public shareholding |
|
|
- Number of shares (‘000) |
10054 |
|
- Percentage of shareholding |
57.8% |
|
14. Promoters and promoter group Shareholding |
|
|
a) Pledged / encumbered |
|
|
- Number of shares (‘000) |
1659 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
22.6% |
|
- Percentage of shares (as a % of the total share capital of the company) |
9.5% |
|
b) Non-encumbered |
|
|
- Number of shares (‘000) |
5686 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
77.4% |
|
- Percentage of shares (as a % of the total share capital of the company) |
32.7% |
SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In millions)
|
Particulars |
Three
Month Ended |
|
|
30.06.2010 (unaudited) |
|
1. Segment Revenue |
|
|
a) Sugar* |
1241.900 |
|
b) Industrial Fibres and related products |
327.400 |
|
c) Chemicals |
565.200 |
|
Total |
2134.500 |
|
d) Less: Inter Segment Revenue |
-- |
|
Net Sales / Income from operation |
2134.500 |
|
2. Segment
Results |
|
|
Profit / (Loss) before tax and interest |
|
|
a) Sugar |
(161.200) |
|
b) Industrial Fibres and related products |
9.200 |
|
c) Chemicals |
52.500 |
|
Total |
(99.500) |
|
d) Less: i) Interest |
90.700 |
|
ii) Other unallocable expenditure net of unallocable income |
23.500 |
|
Profit / (Loss) before tax |
(213.700) |
|
3. Capital Employed
|
|
|
(Segment assets-segment liabilities) |
|
|
a) Sugar |
2944.700 |
|
b) Industrial Fibres and related products |
1186.700 |
|
c) Chemicals |
802.200 |
|
Total Segment
Capital Employed |
4933.600 |
* Comprising of sugar, power and alcohol.
NOTE
1. In accordance with the accounting policy consistently followed by the
Company, off-season expenditure aggregating Rs. 63.400 millions (corresponding
previous quarter Rs. 122.600 millions) has been deferred for inclusion in the
cost of sugar to be produced in the remainder of the year.
2. The Company had paid and accounted for cane purchases for sugar
season 2007-08 at Rs. 110 per qtl., as per the interim Order of the Hon’ble
Supreme Court, against the price of Rs. 125 per qtl fixed by the Uttar Pradesh
State Government. Necessary adjustments, if any, will be made as per the Orders
of the
3. Liabilities / benefits, if any, out of reorganization arrangement of
DCM Limited in 1990 will be accounted for, if and when these arise.
4. A Petition challenging the Preferential Issue of capital by the
Company filed by a shareholder before the Hon’ble Company Law Board is pending
since November 2007.
5. No investor complaint was pending at the beginning of the quarter
ended 30.06.2010. Four complaints received during the quarter have been
redressed.
6. Previous period figures have been regrouped / recast, wherever
necessary.
Limited Review
The Limited Review, as required under Clause 41 of the Listing Agreement
has been completed by the Statutory Auditors. The Limited Review Report for the
quarter ended June 30, 2010 does not have any impact on the above Results.
FIXED ASSETS
- Land
- Buildings
- Plant and Machinery
- Furniture and fixtures
- Vehicles
AS
PER WEB DETAILS
PROFILE
For over a hundred years, the name
DCM Shriram has been synonymous with Excellence, Quality, Integrity,
Environmental consciousness and pioneering spirit.
This is the legacy that DCM
Shriram Industries Group - born in 1990 on restructuring of the erstwhile DCM
Ltd - aspires to live up to and surpass.
As a business group that has
inherited the rich legacy of sound governance, effective corporate management,
technological sophistication and above all the goodwill and loyalty of numerous
stakeholders and associates, they continue to build their business on the
vision and values endowed by their founder.
DCM Shriram Industries is a diversified group with operations in Sugar,
Alcohol, Organic and Inorganic Chemicals, Drug Intermediates, Rayon Tyrecord,
Shipping Containers and processed cotton yarn.
The group comprises five main business operations, each with a history of
consistent performance over the years.
Daurala Sugar Complex, comprising a cane sugar plant,
distillery and an aromatic chemicals unit. Shriram Rayons, comprising rayon tyrecord/yarn/fabric and
nylon chafer/fabric plants.
Daurala Organics, manufacturing new generation drug
intermediates.
Daurala Foods and Beverages (Private) Limited, manufacturing
high-class liquors.
DCM Hyundai Limited, manufacturing shipping containers.
As a market-driven agglomerate, responsive to customer needs, DCM Shriram
Industries group remains committed to continous modernization, expansion,
diversification and innovation.
It is a commitment that has helped us maintain leadership in every area of
their operations.
A tradition of excellence.
MILESTONES
1889 - Delhi
Cloth Mills founded at
* 1932 - Sugar
factory set up at Daurala
1934 - Textile
Mills set up at Lyallpur (Now Faisalabad in
1940 - Sugar
factory set up at Mawana
1941 - Heavy
inorganic chemicals plant set up at
* 1943 - Distillery
set up at Daurala
1948 - New
textile mills set up at
1958 - Spinning
mills at Hissar and Silk mills set up at
1960 - PVC,
Chlor-alkali and Calcium Carbide plant set up at
* 1965 - Rayon
tyrecord plant set up at
* 1967 - Liquor
operations started at Daurala
1969 - Urea
plant set up at
* 1970 - Aromatic
chemicals plant set up at Daurala
1972 - Textile
mills set up at Dasna
- Computers
unit set up at
1977 - Precision
castings (for automobiles) foundry set up at Ropar
1990 - DCM
restructured into 4 different groups
- Birth
of DCM Shriram Industries group
* Asterisked units above form part of DCM Shriram Industries Ltd after
the reorganisation
1994 - Drug
intermediates company established with works at Daurala (Daurala Organic Limited)
- Yarn
dyeing and processing unit established at Alwar (Indital Tintoria Limited)
1995 - Shipping
containers company established at Chennai
(DCM Hyundai Limited)
1997 - Joint
Venture Liquor company established with works at Daurala (DCM Remy Limited)
2004 - Commercial
production of Anhydrous Alcohol (for admixing field)
2005 - Daurala
Organics Limited , amalgamated with DCM SHRIRAM INDUSTRIES Limited
PROFILE :
Subject was
established in the pre independence era in the year 1932 at Daurala , a small
unknown village near Meerut on New Delhi - Haridwar National highway no. 58. Today
, after more than seven decades it continues to command respect as one of the
most efficient and modern sugar factories of the country being familiar name
not only in India but the world over.
Over this period of time, diversification of activities were pioneered under
the umbrella brand of "Daurala Sugar works". These included
manufacture of pharmaceutical grade sugar, sugarcane research farm, setting of
distillery, manufacture of IMFL, Bio-Methanation, manufacture of aromatic
chemical, co-generation of power etc.
The entire range of products are manufactured in modern plants having
contemporary equipments and employing R&D based advanced technologies. An
independent quality assurance and control system ensures continual improvement
and choicest quality products to satisfy even the most demanding customer needs
Highlights
·
First plant
in India to manufacture double-refined sugar of international quality.
·
First plant
in India to manufacture pharmaceutical grade sugar conforming to IP/BP
specifications.
·
Among the first in India to adopt intensive process automation even for high
skill dependent sugar crystallisation process to provide quality products of
high consistency
·
To further improve the sugar quality
new process and technology is being adopted. Recently added syrup clarification
and filtrate clarification system to meet out the requirements of institutional
buyers of international standards
·
Power house at Daurala comprises of
Seven boilers and a battery of Turbo and diesel generators to produce 27 MW
power for captive consumption
·
First sugar
plant in India to indigenously convert bagasse fed boilers to multi fuel fed
boilers operating on bagasse, coal ,rice husk, mustard bran and methane.
·
Indigenously designed and commissioned
wet scrubbing system at boilers for releasing cleaner and non polluting flue
gases
·
Fully equipped in-house R and D
department to continuous development and improvement of process and products
·
In house sugarcane research farm to
help identify and test high yielding varieties of cane and cropping systems for
improved resource utilisation and economy
·
Indigenously designed distillery is
rated among the largest , in
terms of capacity in the country, producing rectified spirit , Extra Neutral
alcohol, denatured spirit and potable alcohol
·
The distillery also produces anhydrous
ethanol for mixing with petrol thereby contributing towards keeping
environmental pollution under control
·
First in
India to design indigenously , install and successfully operate distillery effluent
treatment plant recovering eco-friendly fuel methane gas in the process
·
The recently commissioned Bio-compost
plant combines treated distillery effluent with sugar factory waste to produce
a farmer friendly manure , thereby taking Daurala towards achieving "Zero effluent" discharge
status in near future ...
·
Chemical plant at Daurala is a leading
manufacturer and exporter of fine aromatic chemicals.
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 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. 45.07 |
|
|
1 |
Rs. 72.97 |
|
Euro |
1 |
Rs. 63.57 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.