MIRA
INFORM REPORT
|
Report Date : |
28.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
D C W LIMITED |
|
|
|
|
Registered
Office : |
No. 2, Guest House, Dhrangadhra – 363315, |
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|
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Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
28.01.1939 |
|
|
|
|
Com. Reg. No.: |
04-000748 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.392.309 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110GJ1939PLC000748 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufactures of Soda Ash, Caustic Soda, PVC Resins, Soda
Bicarbonates, Trichloroethylene, Synthetic Rutile, Titox, Utox, Bromine,
Bromide and a Few Other Chemicals. |
|
|
|
|
No. of Employees
: |
2090 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
|
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 15000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well established and a reputed company having good track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal business dealing 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 / Factory : |
No. 2, Guest House, Dhrangadhra – 363315, Gujarat, India |
|
Tel. No.: |
91-2754-5719967 / 76 / 44 |
|
Fax No.: |
91-2754-5755731 / 283245 |
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E-Mail : |
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Website : |
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Head Office : |
Nirmal, 3rd Floor, Nariman Point, Mumbai – 400021, |
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Branch Office : |
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Factory 1 : |
Caustic Soda
Division: Arumuganeri P. O., Sahupuram-628202, Tamilnadu, India |
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|
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|
Factory 2 : |
PVC Division: Arumuganeri P. O., Sahupuram-628202, Tamilnadu, India |
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|
Factory 3 : |
Salt Works : Kuda Gujarat, India |
DIRECTORS
As on 24.11.2011
|
Name : |
Mr. Shashi Chand Jain |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Pramod Kumar Jain |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Bakul Jain |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mrs. Vandana Jain |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. F. H. Tapia |
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Designation : |
Director |
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|
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|
Name : |
Mr. Sushil Kumar Jalan |
|
Designation : |
Director |
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|
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Name : |
Dr. V. H. Joshi |
|
Designation : |
Director |
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Name : |
Mr. Sodhsal Singh Dev of Dharnagadhra |
|
Designation : |
Director |
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|
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|
Name : |
Mr. R. V. Ruia |
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Designation : |
Director |
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|
|
|
Name : |
Berjis Desai |
|
Designation : |
Additional Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
Category of Shareholders
|
No. of shares
|
Percentage (%)
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
31,745,846 |
15.85 |
|
|
52,444,056 |
26.18 |
|
|
84,189,902 |
42.03 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
84,189,902 |
42.03 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18,705 |
0.01 |
|
|
68,225 |
0.03 |
|
|
8,900,110 |
4.44 |
|
|
24,794,177 |
12.38 |
|
|
42,225 |
0.02 |
|
|
42,225 |
0.02 |
|
|
33,823,442 |
16.88 |
|
|
|
|
|
|
9,915,480 |
4.95 |
|
|
|
|
|
|
53,930,327 |
26.92 |
|
|
9,544,751 |
4.76 |
|
|
8,922,393 |
4.45 |
|
|
95,685 |
0.05 |
|
|
3,032,240 |
1.51 |
|
|
5,761,118 |
2.88 |
|
|
33,350 |
0.02 |
|
|
82,312,951 |
41.09 |
|
Total Public shareholding (B) |
116,136,393 |
57.97 |
|
Total (A)+(B) |
200,326,295 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have
been issued |
- |
- |
|
|
- |
- |
|
|
2,773,750 |
- |
|
|
2,773,750 |
- |
|
Total (A)+(B)+(C) |
203,100,045 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufactures of Soda Ash, Caustic Soda, PVC Resins, Soda
Bicarbonates, Trichloroethylene, Synthetic Rutile, Titox, Utox, Bromine,
Bromide and a Few Other Chemicals. |
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Products : |
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PRODUCTION STATUS (31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
DHARANGADHRA
UNIT: |
|
|
|
|
|
Soda Ash |
MT |
96000 |
96000 |
83621 |
|
Soda Bicarbonate |
MT |
12000 |
12000 |
20340 |
|
Amonium Bicarbonate |
MT |
5000 |
-- |
612 |
|
Detergent - Green |
MT |
-- |
-- |
17174 |
|
Detergent - Active |
MT |
-- |
-- |
14675 |
|
SAHUPURAM UNIT: |
|
|
|
|
|
Caustic Soda Lye |
MT |
100000 |
100000 |
81684 |
|
Caustic Soda Solid |
MT |
-- |
-- |
123 |
|
Caustic Soda Flakes |
MT |
-- |
-- |
20265 |
|
Sodium Hypochlorine |
MT |
-- |
-- |
2769 |
|
Hydrochloric Acid 100% |
MT |
90000 |
66000 |
51803 |
|
Liquid Chlorine |
MT |
36000 |
36000 |
20748 |
|
Trichloroethylene |
MT |
7200 |
7200 |
7006 |
|
Upgraded llmenite |
MT |
72000 |
48000 |
45046 |
|
Utox |
MT |
No Licence
Required |
600 |
1683 |
|
Ferrie Chloride |
MT |
-- |
10000 |
3925 |
|
Yellow Iron oxide |
MT |
-- |
-- |
334 |
|
PVC Resin |
MT |
90000 |
90000 |
89943 |
Note:
1. Licensed
capacity is not applicable in view of the company's products having been
delicensed as per the new liberalised licensing policy announced by the
Government of India.
2 Ammonium
Bicarbonate production is out of part of Soda ash plant.
3 Self consumption
quantity mentioned includes quantity lost in handling, lost in transit, wash
loss, samples, etc.
4. Previous year
figures are given in bracket.
5. Lye sales quantity excludes 197.00 MT being excess as per survey.
GENERAL INFORMATION
|
No. of Employees : |
2090 (Approximately) |
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Bankers : |
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Facilities : |
(Rs. in Millions)
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Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
V. Sankar Aiyar and Company Chartered Accountant |
|
Address : |
Mumbai, |
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|
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Subsidiaries : |
DCW Pigments Limited |
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|
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Associates : |
|
CAPITAL STRUCTURE
As on 24.11.2011
Authorised Capital : Rs. 650.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.414.047
Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
325000000 |
Equity Share |
Rs.2/- Each |
Rs.650.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
196154590 |
Equity Share |
Rs.2/- Each |
Rs.392.309 Millions |
|
|
|
|
|
Notes:
Of the Equity
Shares
1) The following
Shares were allotted as fully paid-up without payment being received in cash :–
a) 5,25,000 Shares
to Vendors
b) 4,550 Shares to
Equity Shareholders of the erstwhile, PRC Limited, pursuant to the amalgamation
with the Company.
2) 3,74,50,985
Shares were allotted as fully paid up Bonus Shares by Capitalisation of Capital
Redemption Reserve, Share Premium
Account and General Reserve.
3) 2,66,66,550
Shares were issued and allotted consequent to conversion of Part A of the
26,66,655 partly convertible debentures allotted in April’1992.
4) 4,61,25,000
Shares were issued in 1994-95 against which Global Depository Receipts were
issued by the Depository viz.Citi Bank, USA.
5) 2,80,94,525 shares
were issued and allotted pursuant to Rights issue made during 2000-01.
6) 2,36,10,000
Shares were issued and allotted on preferential basis to the Promoters of the
company and FII’s
during 2007-08.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
392.309 |
392.309 |
392.309 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3558.944 |
3354.480 |
2763.723 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3951.253 |
3746.789 |
3156.032 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3307.338 |
3127.291 |
4250.811 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.341 |
|
|
TOTAL BORROWING |
3307.338 |
3127.291 |
4251.152 |
|
|
DEFERRED TAX LIABILITIES |
768.272 |
834.490 |
786.990 |
|
|
|
|
|
|
|
|
TOTAL |
8026.863 |
7708.570 |
8194.174 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6068.580 |
6421.144 |
6894.890 |
|
|
Capital work-in-progress |
1780.923 |
898.000 |
661.280 |
|
|
|
|
|
3.741 |
|
|
INVESTMENT |
3.239 |
8.115 |
|
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
3.234 |
|
|
|
|
|
0.000 |
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1272.563
|
1499.940 |
1184.783
|
|
|
Sundry Debtors |
1046.967
|
1017.260 |
972.498
|
|
|
Cash & Bank Balances |
19.361
|
17.118 |
15.808
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
747.512
|
565.289 |
539.004
|
|
Total
Current Assets |
3086.403
|
3099.607 |
2712.093 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
452.947
|
831.258 |
716.413
|
|
|
Other Current Liabilities |
2293.547
|
1719.094 |
1203.343
|
|
|
Provisions |
165.788
|
167.944 |
161.308
|
|
Total
Current Liabilities |
2912.282
|
2718.296 |
2081.064 |
|
|
Net Current Assets |
174.121
|
381.311 |
631.029 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8026.863 |
7708.570 |
8194.174 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10576.543 |
10268.031 |
9070.320 |
|
|
|
Other Income |
164.507 |
23.402 |
302.544 |
|
|
|
TOTAL (A) |
10741.050 |
10291.433 |
9372.864 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
9601.916 |
8470.524 |
8489.375 |
|
|
|
TOTAL (B) |
9601.916 |
8470.524 |
8489.375 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1139.134 |
1820.909 |
883.489 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
304.672 |
387.009 |
270.978 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
834.462 |
1433.900 |
612.511 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
475.579 |
489.271 |
412.328 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
358.883 |
944.629 |
200.183 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
69.782 |
268.325 |
57.722 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
289.101 |
676.304 |
142.461 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
400.436 |
206.746 |
333.131 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
400.000 |
400.000 |
200.000 |
|
|
|
Proposed Dividend on Equity Shares |
70.616 |
70.616 |
58.846 |
|
|
|
Tax on Dividend |
11.456 |
12.001 |
10.001 |
|
|
BALANCE CARRIED
TO THE B/S |
207.475 |
482.617 |
206.745 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1506.880 |
943.703 |
1001.859 |
|
|
|
Other Earnings |
1.427 |
1.330 |
1.573 |
|
|
TOTAL EARNINGS |
1508.307 |
945.033 |
1003.432 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5086.974 |
4409.018 |
3746.829 |
|
|
|
Stores & Spares |
12.887 |
42.738 |
15.512 |
|
|
|
Capital Goods |
26.466 |
15.283 |
3.331 |
|
|
TOTAL IMPORTS |
5126.327 |
4467.039 |
3765.672 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.47 |
3.45 |
0.73 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
2630.220 |
2863.040 |
3136.870 |
3231.640 |
|
Total Expenditure |
2353.230 |
2479.680 |
2675.050 |
2739.240 |
|
PBIDT (Excl OI) |
276.990 |
383.360 |
461.820 |
492.40 |
|
Other Income |
0.060 |
2.220 |
0.190 |
7.480 |
|
Operating Profit |
277.050 |
385.580 |
462.010 |
499.880 |
|
Interest |
86.290 |
68.000 |
86.700 |
93.280 |
|
Exceptional Items |
(4.630) |
(11.880) |
(173.460) |
(129.910) |
|
PBDT |
186.130 |
305.700 |
201.850 |
276.710 |
|
Depreciation |
117.400 |
121.220 |
132.620 |
140.750 |
|
Profit Before Tax |
68.730 |
184.480 |
69.230 |
135.940 |
|
Tax |
13.000 |
12.000 |
27.500 |
97.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
55.730 |
172.480 |
41.730 |
38.540 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
55.730 |
172.480 |
47.730 |
38.540 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.69
|
6.57 |
1.52 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.39
|
9.20 |
2.21 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.63
|
30.48 |
7.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.25 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.57
|
1.56 |
2.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.06
|
1.14 |
1.30 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last one year |
Yes |
|
12) Profitability for last one year |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
OPERATIONS:
Sales during the
year were Rs. 11456.200 Millions as compared to Rs. 10957.600 Millions recorded
in the previous year, registering an increase of 4.55%. The Gross Profit for the
year (before depreciation) is Rs. 834.500 Millions against Rs. 1433.900
Millions in previous year. The profit before tax amounted to Rs. 358.900
Millions as against Rs. 944.600 Millions in the previous year. The profit after
provision of tax is Rs. 289.100 Millions against previous years Rs. 676.300
Millions, an decrease of 57%.
The Company’s
profits have been lower during the financial year on account of higher raw
material prices, coupled with higher energy costs due to increase in cost of
coal and oil. The price realization on the products has since gone up, the
Company is hopeful of achieving improved profitability in the current year.
EXPORTS:
The Company’s
exports were Rs.1533.400 Millions as compared to Rs. 969.200 Millions in the
previous year. The 58% increase in exports was on account of higher export of
Beneficated limenite coupled with higher realisation. The price of the product
has further gone up and the Company is hopeful of achieving increase in exports
turn over during current year.
DIVISION WISE PERFORMANCE:
a) PVC Division
The turnover of
the division is Rs. 5176.300 Millions as compared to Rs. 4566.600 Millions in
the previous year, registering an increase of 13%. This increase in sales was due
to increase in quantity sold of PVC compared to previous year. The company sold
89944 MT of PVC resin compared to 85311 MT in the previous year. All major user
segments are recording good demand and PVC industry continues to show positive
growth. The Government has identified irrigation, power and infrastructure, as
thrust areas and increased activity in these sectors are likely to boost demand
of PVC Resin.
b) Caustic Soda Division:
The turnover of
the division is Rs. 4387.200 Millions as compared to Rs. 4388.400 Millions in
the previous year. The Company sold 81355 MT of Caustic Soda during the year as
compared to 75611 MT in the previous year, an increase of 8%. Though Caustic
Soda registered higher quantity of sales, realization on Caustic Soda has been
lower during the year compared to previous year.
Also due to higher
captive consumption of power by the company surplus power available for sale
has come down compared to previous year. Average realisation on sale of power
has also come down compared to previous year due to the State Electricity Board
purchasing lower quantity of power.
c) Soda Ash Division:
The turnover of
the division was Rs. 1882.800 Millions as compared to Rs. 1928.700 Millions in
the previous year, registering a decrease of 2%. The decrease in turnover is
mainly due to lower quantity of Soda Ash and Soda Bicarbonate sold compared to
previous year. The Company sold 72658 MT of Soda Ash, 19638 MT of Soda
Bicarbonate and 31489 MT of Detergent during the year as compared to 80186 MT
of Soda Ash. 23741 MT of Soda Bicarbonate and 29721 MT of Detergent, in the
previous year
PROJECTS IMPLEMENTED AND UNDER IMPLEMENTATION:
Projects Implemented during the year:
Additional 8.27 MW Turbine in Thermal Power Plant:
The Company has
successfully commissioned additional 8.27 MW Turbine in its Thermal
Co-generation power plant during the year. The additional turbine will help
company in reducing the overall cost of energy.
Porjects Under Implementation:
Calcium Chloride Plant:
The Company had
started necessary modification in its Calcium Chloride plant at its Soda Ash
Unit, during the year as suggested by Akzo Noble, Netherlands, by installing
additional equipments. The work on the plant is in final stages and is expected
to start production by second quarter of 2011-12.
Solway Towers
Solway towers
installed at the Soda Ash Unit are still to be commissioned. An assignment was
given to Akzo Noble, Neatherlands, to do basic engineering to utilise the towers
and to increase Soda Ash production. Akzo Noble has submitted Basic Engineering
documents and detailed Engineering work is under progress. On completion of
same company will start placing orders for doing the necessary modifications to
the towers in current year and is expected to be completed by next year.
Synthetic Iron Oxide Pigment and Calcium Chloride
Project:
The company is
establishing a Synthetic iron oxide pigment (SIOP) plant at its production
facility located at Sahupuram, in Tamil Nadu. The proposed new facility will
refine and convert waste effluent stream coming out
from it
Beneficiated ilmenite plant which is rich in iron (iron Chloride liquor). The
project will enable the company to utilise its waste and generate a
commercially viable product.
The facility will
be employing both DCW’s inhouse developed patented yellow iron oxide pigment
technology and also the technology it has licensed from Rockwood Italia (Group
Company of Rockwood Pigments, USA) for manufacture of red iron oxide pigment.
The facility’s annual iron oxide pigment manufacturing and finishing capacity
will be approximately 32,000 TPA. Waste steam coming out from the Synthetic
Iron Oxide Pigment Plant will be used to convert it into Calcium Chloride and
pure water, the company will be producing 50000TPA of Calcium Chloride.
The Company has
appointed UHDE India Limited., well known engineering company to provide
engineering services for this plant. Detailed engineering has been completed
and the company is in process of placing orders for various equipments with the
vendors. This plant is expected to start commercial production by 2013-14.
DCW has also
entered into a product off take agreement with Rockwood Italia for 50% of the
Synthetic Iron Oxide
Pigment produced. The
company to sell the remaining 50% of the product manufactured either to
Rockwood Italia or to third parties at its option.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Outlook:
The Company has a
diversified operation with three business segments viz. PVC, Chloro Alkali and
Soda Ash. It is thus reasonably protected from the vagaries of individual
business cycles of these products.
PVC Division:
The Company, one
of the country’s five producers of PVC resin, has maintained its market share
of about 10%. Against demand of 1.75 million tons, the domestic production
capacity is 1.25 Million Tons thereby leaving shortfall of over 0.50 Million
Tons. Also PVC demand is growing at a CAGR of above 10%, with increased
government spending towards infrastructure, agriculture and water management.
The Company is exploring the possibility of increasing PVC Production, to cater
to this demand supply gap.
Caustic Soda Division:
The Company
continues to be a major player in South India with a market share of approximately
15%. The demand for caustic soda is expected to grow at a steady rate of 4% to
5%, especially with increased demand from alumina manufacturers. The company is
able to fully use its HCL & Chlorine to maintain Caustic Production at full
level.
The conversion
from Mercury Cell to Membrane Cell technology has not only resulted in
substantial capacity addition but also has brought down the consumption of
power which has helped in improving the bottom-line.
Soda Ash Division:
The Soda Ash
Industry continues to grow at a compounded rate of 4% to 5% per annum and this
trend is expected to continue due to strong demand from end user industries.
Plans are being made to marginally increase Soda Ash production by utilizing
the Solway Towers and installation of Co2 compressor.
Sale of Surplus Power:
The Company’s
Captive Thermal Co-Generation Plant established as part of its Caustic Soda
Division to meet company’s present and future energy requirements. This Thermal
Cogeneration plant at present has additional un-utilised capacity. With the
demand of power going up due to power shortfall in the country, the company is
selling the excess
power to Tamil Nadu Electricity Board and to third parties in the State
CONTINGENT
LIABILITIES NOT PROVIDED FOR
(Rs. In Millions)
|
A. CONTINGENT
LIABILITIES NOT PROVIDED FOR: |
As
at 31.03.2011 |
|
1. Disputed Sales Tax Demands |
125903 |
|
2. Disputed Excise Demands |
39.999 |
|
3. Disputed Customs Demands |
15.961 |
|
4. Disputed
Income tax Demand (Paid Rs.8.000 Millions against the demand and appeals
pending before the appeallate authority) |
0.000 |
|
5. Company's contribution to ESI not made pursuant to petitions for
exemption pending before ESI Court |
8.736 |
|
6. Lease Rent, Local Cess, Interest on Lime Stone, Surcharge, Stamp
Duty, Octroi and Water and Electricity charges |
223.014 |
|
7. Disputed Industrial relations matters |
44.590 |
|
B Claims not acknowledged as debts : |
8.000 |
|
TOTAL |
456.203 |
|
C. GUARANTEE AS A MEMBER OF THE ALKALI MFRS. ASSN. |
0.001 |
|
(A Company Limited by Guarantee) |
|
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND YEAR ENDED 31 ST MARCH, 2012
|
PARTICULARS |
QUARTER ENDED |
YEAR ENDED |
|
|
|
31.03.2012 Unaudited |
31.12.2011 Unaudited |
31.03.2012 Unaudited |
|
1. INCOME FROM OPERATIONS (a) Net sales/income from operations (Net of excise
duty) (b) Other operating income |
3209.175 22.469 |
3110.74 26.799 . |
11806.070 55.704 |
|
TOTAL INCOME FROM
OPERATIONS (NET) |
3231.3644 |
3136.873 |
11861.774 |
|
2. EXPENDITURE |
|
|
|
|
a. Cost of materials
consumed b. Purchase of stock-in-trade c. Power and Fuel d. Changes in inventories of finished
goods e. Employee benefits expense f. Depreciation and amortisation expense g. Other expenses |
1895.954 0.000 218.015 73.052 175.579 140.758 376.648 |
1860.930 0.000 200.142 179.482 135.649 132.615 298.856 |
7494.934 0.000 923.248 (9.362) 599.645 512.099 1238.643 |
|
TOTAL EXPENSES |
2880.006 |
2807.674 |
10759.207 |
|
3. Profit / (Loss) from operations
before other income, finance costs and exceptional items (1 - 2) |
351.638 |
329.199 |
1102.567 |
|
4. Other income |
7.481 |
0.186 |
9.943 |
|
5. Profit / (Loss) from
ordinary activities before tax (3 + / - 4) |
3590119 |
329.385 |
1112.510 |
|
6. Finance costs |
93.273 |
86.701 |
334.266 |
|
7. Profit / (Loss) from
ordinary activities after finance costs but before exceptional items (5 + / -
6) |
265.846 |
242.684 |
778.244 |
|
8. Exceptional items |
(129.904) |
(173.458) |
(319.870) |
|
9. Profit / (Loss) from
ordinary activities before tax (7 + / - 8) |
135.942 |
69.226 |
458.374 |
|
10. Tax expense |
97.400 |
27.500 |
149.900 |
|
11. Net Profit / (Loss)
from ordinary activities after tax (9 +/-10) |
38.542 |
41.726 |
308.474 |
|
12. Extraordinary items
(net of tax expense) |
- |
- |
- |
|
13. Net Profit / (Loss)
lor the period (11 + / -12) |
38.542 |
41.726 |
308.474 |
|
14. Paid-up equity share capital (Face
value of Rs. 21- each) |
406.200 |
392.309 |
406.200 |
|
16. I. Earnings per share (before
extraordinary Items) (Face value of Rs.2/-
each) (not annualised) : Basic and Diluted |
0.20 |
0.21 |
1.56 |
|
ii. Earnings per share
(after extraordinary items) (Face value of Rs.2/-
each) (not annualised) : Basic and Diluted |
0.20 |
0.21 |
1.56 |
|
17 Public shareholding |
|
|
|
|
Number of shares |
118910143 |
118910143 |
118910143 |
|
Percentage of shareholding |
58.55% |
60.62% |
58.55% |
|
18 Promoters shareholding and promoter group
shareholding |
-- |
-- |
-- |
|
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) |
-- |
-- |
-- |
|
Non-encumbered |
|
|
|
|
Number of shares |
84189902 |
77244447 |
84189902 |
|
Percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
Percentage of shares (as a % of the total share capital
of the company) |
41.45% |
39.38% |
41.45% |
SEGMENT REVENUE, RESULTS AND CAPITAL EMPLOYED
|
PARTICULARS |
QUARTER ENDED |
YEAR ENDED |
|
|
|
31.03.2012 Unaudited |
31.12.2011 Unaudited |
31.03.2012 Unaudited |
|
i. Segment Revenue : (Net Income) a. Soda Ash b. Caustic Soda c. PVC d. Others |
520.686 1534.106 1121.238 33.145 |
481.974 1403.168 1206.995 17.937 |
1749.005 5219.840 4743.243 93.982 |
|
Net Sales from operation |
3209.175 |
3110.074 |
11806.070 |
|
ii. Segment Results :
(Profit before Interest and Tax) a. Soda Ash b. Caustic Soda c. PVC d. Others Less : Interest Exceptional Items -
Profit /(Loss) |
31.138 317.741 (6.060) 16.300 359.119 93.273 (129.904) |
20.390 281.843 25.743 1.408 329.384 86.701 (173.458) |
111.145 949.363 0.169 51.833 1112.510 334.266 (319.870) |
|
TOTAL PROFIT BEFORE TAX |
1,359.42 |
692.25 |
4,583.74 |
|
III. Capital Employed
(Segment assets - Segment Liabilities) a. Soda Ash b. Caustic Soda c. PVC d. Others |
1606.102 6417.505 (182.311) 1856.272 |
1487.303 6532.349 (675.640) 1806.588 |
1606.102 6417.505 (182.311) 1856.272 |
|
Total : |
9697.568 |
9150.500 |
9697.568 |
|
Note: 1. The above unaudited financial
results were reviewed and recommended by the Audit committee and approved by
the Board of Directors at their meeting held on 2nd May, 2012 and a limited
review of the same has been carried out by the statutory auditors of the
Company. 2. The guidance on implementing AS15, Employee Benefits
(Revised 2005) issued by the Accounting Standards Board (ASB) states that
provident funds set up by the employers, which require interest shortfall to
be met by the employer, are defined benefit plans. Accordingly for the
current year deficiency estimated at Rs. 0.800 Million has been provided. 3. Tax Expenses for the quarter/year ended 31 st March, 2012
and 31 st March, 2011 is net of Deferred tax and for the year ended 31st
March, 2011 is also net of MAT Credit available and Tax adjustment of
previous year. 4. The company has issued 1,36,36,363 convertible warrants
and has converted 69,45,455 of such warrants in to equity shares on
preferential basis to promoters /promoters group during the year. The company
has received total amount of Rs. 94.800 Millions against the same. The amount
has been utilized for project expenses Balance 66,90,908 warrants are pending
to be converted. 5. Exceptional items for they earned quarter ended
31.03.2012and 31.03.2011 includes exchange difference and for the year ended
31.03.2011 includes profit of Rs. 110.081 Millions from sale of windmills. 6. Previous periods' figures have been regrouped/ rearranged
wherever necessary. |
|||
FIXED ASSETS
- Land
- Building
- Plant and Machinery
- Furniture and
Fittings
- Vehicles
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.56.91 |
|
|
1 |
Rs.71.24 |
|
Euro |
1 |
Rs.88.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
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 |
|
70 |
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.