MIRA
INFORM REPORT
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Report Date : |
07.11.2012 |
IDENTIFICATION DETAILS
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Name : |
DIC INDIA LIMITED (w.e.f. 06.08.2004) |
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Formerly Known
As : |
COATES OF INDIA LIMITED |
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Registered
Office : |
Transport |
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Country : |
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Financials (as
on) : |
31.12.2011 |
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Date of
Incorporation : |
02.04.1947 |
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Com. Reg. No.: |
21-015202 |
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Capital Investment
/ Paid-up Capital : |
Rs. 91.790
Millions |
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CIN No.: [Company Identification
No.] |
L24223WB1947PLC015202 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALC00179E |
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PAN No.: [Permanent Account No.] |
AABCC0703C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Printing Inks, Surface Coatings and Allied Products. |
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No. of Employees
: |
630 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (68) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 10000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financials of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
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Source
: CIA |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CRISIL |
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Rating |
Cash Credit : (CRISIL) AA- |
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Rating Explanation |
Having high degree of safety regarding
timely servicing of financial obligation. It carry very low credit risk. |
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Date |
January 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
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Registered/ Corporate Office / Factory 1 : |
Transport Depot Road, Kolkata - 700088, West Bengal, India |
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Tel. No.: |
91-33-24496591-6, 24493984/ 85/ 24492345/ 46 |
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Fax No.: |
91-33-24495267 / 2311 / 0433 |
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E-Mail : |
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Website : |
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Factory 2 : |
Chandivali Farm,
Off Saki Vihar Road, Mumbai - 400072, Maharashtra, India |
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Factory 3 : |
C - 55 A and B, Phase
II, Dist. Gautam Budh Nagar, Noida - 201305, Uttar Pradesh, India |
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Factory 4 : |
Plot No.633 and
634, G.I.D.C. Industrial Estate, Phase IV, Vatva, Ahmedabad - 382445,
Gujarat, India |
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Factory 5 : |
66A, Bommasandra
Industrial Area, Hosur Road, Anekal Taluk, Bangalore - 562158, Karnataka,
India |
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Sales Office and Depots : |
Located at: v Bangalore v Hyderabad v Madurai v Vadodara v Kanpur |
DIRECTORS
AS ON 31.12.2011
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Name : |
Dr. Prabir Kumar Dutt |
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Designation : |
Chairman and Chief Executive Officer |
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Address: |
Flat No.2A, 2nd Floor, P-384/B, Kevatala Lane, Kolkata –
700029, West Bengal, India |
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Date of Birth/Age : |
14.02.1942 |
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Qualification : |
M. Tech, Ph.D |
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Date of Appointment : |
02.05.1984 |
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Name : |
Mr. Dipak Banerjee |
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Designation : |
Director |
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Address: |
57A, Garcha Road, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
19.02.1946 |
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Date of Appointment : |
08.03.2001 |
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Name : |
Mr. Samir Bhaumik |
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Designation : |
Managing Director |
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Address: |
Flat No.302, Pearl Court, III Essel Towers, Main Mehrauli, Gurgaon
Road, Gurgaon – 122002, Haryana, India
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Date of Birth/Age : |
21.11.1953 |
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Qualification : |
B.Com (Hons),
LLB, FCA |
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Date of Appointment : |
29.10.2007 |
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Name : |
Mr. Subir Bose |
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Designation : |
Director |
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Address: |
37, Abhiripukur Road, Kolkata, West Bengal, India |
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Date of Birth/Age : |
10.12.1949 |
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Date of Appointment : |
27.07.2007 |
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Name : |
Mr. Purushottam Lal Agarwal |
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Designation : |
Director |
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Address: |
Udayachal 1st Floor, 9 Sarojini Naidu Sarani, Kolkata –
700017, West Bengal, India |
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Date of Birth/Age : |
02.01.1942 |
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Date of Appointment : |
30.10.2008 |
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Name : |
Mr. Biswajit Choudhuri |
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Designation : |
Director |
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Address: |
Rajani Kusumalav Nandalal Jiu Road, Off 119 Sarat Bose Road, Kolkata –
700026, India |
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Date of Birth/Age : |
30.04.1942 |
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Date of Appointment : |
29.10.2007 |
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Name : |
Mr. Paul Koek |
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Designation : |
Director |
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Address: |
76, Bayshore Road, #04-17, Costa Del Sol, Singapore |
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Date of Birth/Age : |
14.06.1960 |
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Date of Appointment : |
29.06.2004 |
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Name : |
Mr. Bhaskar Nath Ghosh |
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Designation : |
Director |
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Address: |
Flat no5E, 11 Broad Street, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
31.01.1946 |
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Date of Appointment : |
25.07.2009 |
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Name : |
Mr. Kazuo Kudo |
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Designation : |
Director |
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Address: |
2 Marina Boulevard, The Sail Marina Bay Singapore |
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Date of Birth/Age : |
03.01.1954 |
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Date of Appointment : |
02.06.2010 |
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Name : |
Mr. Utpal Sengupta |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Timir Baran Chatterjee |
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Designation : |
Senior Executive Vice President (Corporate Affairs and Legal) and
Company Secretary |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B.Com (Hons), M.Com, FCS, MIIA ( |
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Experience : |
32 Years |
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Date of Appointment : |
21.08.1996 |
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Audit Committee: |
Mr. Dipak Banerjee - Chairman |
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Mr. Biswajit Choudhuri |
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Mr. Subir Bose |
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Mr. Bhaskar Nath Ghosh |
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Mr. Paul Koek |
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Shareholders’/ Investors’ Grievance Committee : |
Mr. Purushottam Lal Agarwal - Chairman |
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Dr Prabir Kumar Dutt |
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Mr. Paul Koek |
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Remuneration Committee: |
Mr. Dipak Banerjee – Chairman |
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Kazuo Kudo |
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Mr. Paul Koek |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of Promoter and Promoter Group |
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6586077 |
71.75 |
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Sub Total |
6586077 |
71.75 |
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Total
shareholding of Promoter and Promoter Group (A) |
6586077 |
71.75 |
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(B) Public
Shareholding |
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9 |
0.00 |
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|
174 |
0.00 |
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|
240 |
0.00 |
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|
50 |
0.00 |
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Sub
Total |
473 |
0.01 |
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|
225752 |
2.46 |
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|
1653800 |
18.02 |
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|
654098 |
7.13 |
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|
58777 |
0.64 |
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|
46158 |
0.50 |
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|
9342 |
0.10 |
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|
3277 |
0.04 |
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Sub
Total |
2592427 |
28.24 |
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Total Public
shareholding (B) |
2592900 |
28.25 |
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Total (A)+(B) |
9178977 |
100.00 |
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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(1) Promoter and Promoter Group |
0 |
0.00 |
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(2) Public |
0 |
0.00 |
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Sub Total |
0 |
0.00 |
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Total
(A)+(B)+(C) |
9178977 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
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Line of Business : |
Manufacturer of Printing Inks, Surface Coatings and Allied Products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.12.2011)
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Particulars |
Unit |
Licensed
Capacity * |
Installed
Capacity** |
Actual
Production |
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Printing Inks |
Tonnes |
N.A. |
60,288 |
42,209 |
|
Press Room Chemicals |
Tonnes |
N.A. |
360 |
53 |
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Rubber Blankets |
Sq. Yards |
N.A. |
-- |
9,563 |
Note: * Under the Industrial Policy Statement dated
24th July 1991 and the Notification issued there under, no licensing is
required for the Company's products.
** As certified by the Management.
GENERAL INFORMATION
|
No. of Employees : |
630 (Approximately) |
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Bankers : |
v
Bank of v
Standard Chartered Bank v
State Bank of v
The Hongkong and Shanghai Banking Corporation
Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Address : |
Plot No. Y-14, Block EP, Sector V, Salt Lake, Electronics Complex,
Bidhan Nagar, Kolkata – 700091, West Bengal, India |
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Holding Company : |
DIC Asia Pacific Pte Ltd., Singapore |
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Ultimate Holding Company : |
DIC Corporation, Japan |
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Subsidiary : |
DIC Coatings India Limited, till 31st May 2010 |
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Fellow Subsidiaries : |
v DIC Graphics Corporation v DIC Investments Japan, LLC. v DIC Machinery and Printer's Supplies, Inc. v TOPIC Company Limited v Hamamatsu DIC v DIC Kyushu Polymer Company Limited v DIC Color Coatings Inc. v DIC Kitanihon Polymer Company Limited v DIC Kako Inc. v Oxirane Chemical Corp. v Mizushima Kasozai Inc. v Nippon Epoxy Resin Manufacturing Company Limited v Japan Formalin Company Inc. v DIC Bayer Polymer Limited v DH Material Inc. v Japan Fine Coatings Inc. v SUNDIC Incorporated v DIC Plastics Inc. v DIC Molding Inc. v Techno Science Inc. v DIC EP Corporation v YD Plastics Company Limited v Fuji Label Company Limited v DIC Filtec Inc. v Nihon Packaging Material Company Limited v DIC Lifetec Company Limited v DIC Decor Inc. v DIC Interior Company Limited v Renaissance Inc. v DIC Information Service Inc. v Nantong DIC Color Company Limited v Shanghai Showa Highpolymer Company Limited v Shanghai DIC Pressure-sensitive Adhesive v Materials Company Limited v Seiko PMC (Shanghai) Commerce and Trading Corp. v DIC (Nantong) Metallic Pigment Company Limited v Lianyungang DIC Color Company Limited v DIC Trading (HK) Limited v DIC Express Company Limited v Tien Lee Hong Company Limited v DIC Graphics (Hong Kong) Limited v DIC Graphics Chia Lung Corp. v DIC (Taiwan) Limited v Lidye Chemical Company Limited v DIC Colorants Taiwan Company Limited v DIC Korea Corp. v Aekyung Chemical Company Limited v Kangnam Chemical Company Limited v DIC Alkylphenol Singapore Pte. Limited v DIC Compounds (Malaysia) Sdn. Bhd. v DIC (Malaysia) Sdn. Bhd. v Bridgestone REI Komposit Sdn. Bhd. v Samling Housing Products Sdn. Bhd. v DIC Epoxy (Malaysia) Sdn. Bhd. v DIC Graphics (Thailand) Company Limited v DIC International (Thailand) Company Limited v Siam Chemical Industry Company Limited v Coates Thailand Limited v TFE Company Limited v DIC Color (Thailand) Company Limited v DIC Resins (Thailand) Company Limited v P.T. DIC Astra Chemicals v P.T. DIC Graphics v P.T. Pardic Jaya Chemicals v DIC Philippines Inc. v DIC (Vietnam) Company Limited v DIC Fine Chemicals Private Limited v DIC Pakistan Limited v DIC Lanka (Private) Limited v DIC New Zealand Limited v DIC Australia Pty. Limited v Allmake Rollers Limited v Camus Water Technologies LLC v Coates Brothers (Caribbean) Limited v Sun Chemical (South Africa) (Pty.) Limited v Coates Brothers (West Africa) Limited v Coates Screen Inks GmbH. v Color Vision GmbH v DIC Europe GmbH v DIC Imaging Products U.S.A., LLC v DIC International (USA), LLC v ECG Holdings Limited v Gibbon Finecal Limited v Glenside Properties Limited v Hartman d.o.o. v Hartmann Druckfarben GmbH v Hartmann-Sun Chemical EOOD v IMS Concepts, S.A./N.V. v Inmobiliaria Sunchem, S.A. de C.V. v Lorilleux Maroc S.A. v Weesp Finance C.V. v Weesp Unlimited v Tintas S.A. v DIC Estate Company Limited v Seiko PMC Corp. v Tsuruga Terminals Company v Tsuruga Chemicals Service Company v DIC Color Design Inc. v DC Katsuya Company Limited v Earthrise Nutritionals LLC v Earthrise Holdings Inc. v DIC Holdings B.V. v DIC Performance Resins GmbH v DIC Holdings Austria GmbH v Zhongshan DIC Colour Company Limited v DIC (China) Company Limited v Hainan DIC Microalgae Company Limited v Qingdao DIC Finechemicals Company Limited v Qingdao DIC Liquid Crystal Company Limited v Shanghai DIC Ink Company Limited v Shenzhen-DIC Company Limited v DIC (Shanghai) Company Limited v DIC Logitech China Company Limited v Changzhou Huari New Material Company Limited v Deqing DIC Synthetic Resins Limited v DIC (Guangzhou) Company Limited v Suzhou Lintong Chemical Science Corp. v DIC Synthetic Resins (Zhongshan) Company Limited v DIC Graphics Taiyuan Company Limited v DIC Graphics (Guangzhou) Limited v TOA-DIC Zhangjiagang Chemicals Company Limited v Seiko PMC (Zhangjiagang) Corp. v DIC Zhangjiagang Chemicals Company Limited v Shenzhen DIC Chemicals Company Limited v Mondis Manufacturers Insurance Company N.V. v New England Manufacturers Insurance Corp. v Parker Williams Design Company Limited v Rycoline Products LLC v SC Funding LLC v SC (Puerto Rico) Ink v Sinclair del Centro America S.A. v Sinclair S.A. v Sun Branding Solutions Company Limited v Sun Chemical (Chile) S.A. v Sun Chemical A/S v Sun Chemical A/S (formerly:Coates Lorilleux A/S) v Sun Chemical AB v Sun Chemical AG v Sun Chemical AG (S.A. Ltd.) v Sun Chemical Albania SHPK v Sun Chemical B.V. v Sun Chemical Delta B.V. v Sun Chemical Central Europe Beteiligungs GmbH v Sun Chemical Central Europe Holding and Company KG v Sun Chemical Corp. v Sun Chemical d.o.o. v Sun Chemical de Centro America, S.A. de C.V. v Sun Chemical de Panama, S.A. v Sun Chemical do Brasil Limited v Sun Chemical for Graphic Arts S.A.E v Sun Chemical Group Coöperatief U.A. v Sun Chemical Group S.p.A. v Sun Chemical Holding B.V. v Sun Chemical Holding GmbH v Sun Chemical Ink Ireland v Sun Chemical Inks A/S v Sun Chemical Inks S.A. v Sun Chemical Investments LLC v Sun Chemical Lasfelde GmbH v Sun Chemical Limited v Sun Chemical Management, LLC. v Sun Chemical N.V./S.A. v Sun Chemical Nyomdafestek Kereskedelmi Es v Gyatro KFT (Sun Chemical KFT) v Sun Chemical of Michigan LLC v Sun Chemical Osterode Druckfarben GmbH v DIC Coatings S.L. v Coates Brothers (East Africa) Limited v Coates Brothers (Zambia) Limited (formerly Coates Zambia Limited)• v Coates Brothers (Zimbabwe) Private Limited v Sun Chemical Oy v Sun Chemical Pigments S. L. (formerly Coates Lorilleux S.A.) v Sun Chemical Portugal-Tintas Graficas Limited v Sun Chemical Printing Ink d.o.o. v Sun Chemical S.A. v Sun Chemical S.A. de C.V. v Sun Chemical S.A.S. v Sun Chemical s.r.l. v Sun Chemical Sp (z.o.o) [formerly Sun Chemical Sp (z.o.o)( Limited)] v Sun Chemical Turkey v Sun Chemical Ukraine Limited v Sun Chemical ZAO v Sun Chemical, d.o.o.e.l. v Sun Chemical Holding (Hong Kong) Limited v Sun Chemical, S.r.o. v Sun Chemical, S.r.o. |
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v
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CAPITAL STRUCTURE
AS ON 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9,178,977 |
Equity Shares |
Rs.10/- each |
Rs. 91.790
Millions |
|
|
|
|
|
Of the above Shares:
1) 35,013 shares were allotted as fully paid
up pursuant to contracts without payment being received in cash,
2) 1 share was allotted partly for cash
amounting to Rs.6.67 and balance Rs.3.33 for other consideration pursuant to
contracts,
3) 4,044,351 shares were allotted as fully
paid up Bonus Shares by capitalisation of Share Premium and General
Reserve
4) 6,586,077 shares are currently held by the
holding company, DIC Asia Pacific Pte Limited, Singapore.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
91.790 |
91.790 |
91.790 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2567.290 |
2345.460 |
1891.570 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2659.080 |
2437.250 |
1983.360 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
127.040 |
114.800 |
166.750 |
|
|
2] Unsecured Loans |
100.000 |
0.000 |
260.000 |
|
|
TOTAL BORROWING |
227.040 |
114.800 |
426.750 |
|
|
DEFERRED TAX LIABILITIES |
69.210 |
68.820 |
64.120 |
|
|
|
|
|
|
|
|
TOTAL |
2955.330 |
2620.870 |
2474.230 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
762.330 |
714.580 |
669.990 |
|
|
Capital work-in-progress |
134.450 |
57.640 |
86.750 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
107.530 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1035.280
|
854.370
|
592.310
|
|
|
Sundry Debtors |
1819.170
|
1491.420
|
1269.240
|
|
|
Cash & Bank Balances |
140.480
|
176.440
|
251.030
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
300.650
|
330.330
|
245.400
|
|
Total
Current Assets |
3295.580
|
2852.560
|
2357.980
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1116.290
|
865.930
|
643.750
|
|
|
Other Current Liabilities |
44.110
|
44.880
|
40.030
|
|
|
Provisions |
76.630
|
93.100
|
64.240
|
|
Total
Current Liabilities |
1237.030
|
1003.910
|
748.020
|
|
|
Net Current Assets |
2058.550
|
1848.650
|
1609.960
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2955.330 |
2620.870 |
2474.230 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6747.550 |
5533.610 |
4592.520 |
|
|
|
Other Income |
52.640 |
119.070 |
103.900 |
|
|
|
TOTAL (A) |
6800.190 |
5652.680 |
4696.420 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Consumed |
5146.880 |
4135.570 |
3354.290 |
|
|
|
Expenses |
1142.260 |
1035.080 |
892.280 |
|
|
|
Discount on Issue of Commercial Paper |
0.000 |
0.000 |
9.840 |
|
|
|
TOTAL (B) |
6289.140 |
5170.650 |
4256.410 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
511.050 |
482.030 |
440.010 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
40.910 |
23.250 |
38.160 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
470.140 |
458.780 |
401.850 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
88.240 |
85.970 |
82.320 |
|
|
|
|
|
|
|
|
|
Add |
EXTRAORDINARY
ITEMS |
0.000 |
275.690 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
381.900 |
648.500 |
319.530 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
117.390 |
141.100 |
96.580 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
264.510 |
507.400 |
222.950 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1096.680 |
693.790 |
536.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
26.450 |
51.000 |
22.500 |
|
|
|
Proposed Dividend |
36.720 |
45.890 |
36.720 |
|
|
|
Dividend Tax including Surcharge |
5.960 |
7.620 |
6.240 |
|
|
BALANCE CARRIED
TO THE B/S |
1292.060 |
1096.680 |
693.790 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
317.502 |
243.517 |
208.735 |
|
|
|
Commission |
1.621 |
2.001 |
2.383 |
|
|
TOTAL EARNINGS |
319.123 |
245.518 |
211.118 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1625.521 |
1290.369 |
931.272 |
|
|
|
Spare Parts |
6.627 |
12.981 |
13.941 |
|
|
|
Capital Goods |
41.345 |
43.506 |
4.357 |
|
|
|
Goods Traded in |
224.415 |
200.283 |
108.951 |
|
|
TOTAL IMPORTS |
1897.908 |
1547.139 |
1058.521 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
28.82 |
28.92 |
24.29 |
|
|
|
|
28.82 |
55.28 |
24.29 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2012 |
30.06.2012 |
30.09.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
1815.000 |
1746.640 |
1795.420 |
|
Total Expenditure |
1686.350 |
1638.330 |
1680.560 |
|
PBIDT (Excl
OI) |
128.650 |
108.310 |
114.860 |
|
Other Income |
0.530 |
0.530 |
11.450 |
|
Operating
Profit |
129.180 |
108.840 |
126.310 |
|
Interest |
11.600 |
14.080 |
12.800 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
117.580 |
94.760 |
113.510 |
|
Depreciation |
22.330 |
25.260 |
26.270 |
|
Profit
Before Tax |
95.240 |
69.500 |
87.250 |
|
Tax |
31.780 |
20.740 |
27.760 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
63.470 |
48.760 |
59.490 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
63.470 |
48.760 |
59.490 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
3.89 |
8.98
|
4.75
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.66 |
11.72
|
6.96
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.41 |
18.18
|
10.55
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14 |
0.27
|
0.16
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.55 |
0.46
|
0.59
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.66 |
2.84
|
3.15
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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
three years |
Yes |
|
12] |
Profitability for last
three years |
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 involved in |
-- |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
BACKGROUND
DIL is a 71.75%
subsidiary of DIC AP, a wholly owned subsidiary of Dainippon Ink and Chemicals
(DIC) Japan is the leader in the global inks industry with ~40% global market
share. DIL manufactures printing ink, which covers newsprint ink, offset ink
and liquid ink used by newspapers, other publications and packaging industries.
The company also provides lamination adhesive, synthetic resins, press room
chemicals, and rubber blankets. Printing inks contributed to ~86% of CY09
revenues while industrial coatings and lamination adhesives contributed ~9% and
~5% respectively. DIC has presence of over five decades in the printing
segment, with four base factories-one each in Kolkata (West Bengal), Mumbai
(Maharashtra), Noida (Delhi) and Ahmedabad (Gujarat)-and three blending
factories, one each in Chennai (Tamil Nadu), New Delhi and Bangaluru
(Karnataka). As on December 31 2009, the company had a printing ink capacity of
60936 tonnes per annum (tpa) which is second largest in India after Micro Links
Ltd which has a capacity of 203,00 tpa. DIL has technical collaboration
agreement with DIC AP and DIC corporation in the area of manufacturing printing
ink and other products. In June 2010, DIL sold its entire stake in DIC coatings
Limited (that manufactures industrial coatings) to Vaspar for a consideration
of Rs. 400 million. The manufacturing of lamination adhesives is done on a job
work basis by DIC coatings India Limited.
INDUSTRY PROFILE
Dyes and pigments
The dyestuff
industry has three sub-segments - dyes, pigments and intermediates. Dyes are
soluble and essentially used in textile products. Pigments, on the other hand,
are insoluble and are important inputs for products like paints. Based on
product variation, the industry is divided further into basic dyes, disperse
dyes, reactive dyes, sulphur dyes, vat dyes, naphthols, optical brighteners,
fast colour bases and azoacids amongst others.
The industry has
nearly 1,000 small-scale units and 50 large units for manufacturing dyes,
pigments and intermediates. Total capacity of the Indian dyes and pigments
industry is around 4, 55,000 tonnes per annum (tpa). Maharashtra and Gujarat
account for around 90 per cent of the country`s total dyestuff production.
The dyestuff
industry has forward and backward linkages with a number of industries. Some
major industries that use dyes are textiles, leather, paper, printing inks and
food processing. In fact, the textiles and leather processing industries
consume around 85 per cent of the total dyes manufactured in the country.
The industry
enjoys the benefits of a large market, availability of key inputs and
technology and competitiveness in the export market. However, the highly
fragmented nature of the industry has given rise to intense competition. In
production value terms, the unorganised sector accounts for around 35 per cent
of the market.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
OVERVIEW OF THE
ECONOMY
The global economy was threatened by the economic crisis in the euro area and uncertainties elsewhere. There was deterioration in the financial conditions as well as growth prospects. A slowdown was visible in the emerging and developing economies also due to the worsening external environment and a weakening internal demand.
India, inspite of the inherent strengths in its economy could not remain immune to the prevailing global scenario. There was a slackening in the pace of growth in the Indian economy. The average GDP growth was projected at 6.9% for 2011-12 after recording 8.4% growth in the preceding two years. WPI based inflation rate remained at approx 7.9%. Tax revenue growth remained far below the budgeted growth, reflecting not only a significant amount of direct tax refunds but also slowdown in indirect tax revenues during the current financial year. A slowdown in IIP was also noticed. The Rupees vis-ŕ-vis the US Dollar depreciated sharply to cross the Rs.50.00 barrier. This has resulted in ballooning imported fuel bill widening the trade deficit. Deficit was noted in all the key areas of gross fiscal deficit and revenue deficit. Current account deficit was estimated at 3.6 per cent of GDP. However, agricultural and services sector performed well. There are signs of recovery in core sectors like coal, fertilizers, cement and electricity. With numerous indicators present, it is believed that the economy will turn around soon.
At present, the most important challenge before the Government is to restore confidence and put an end to the crisis by supporting growth and providing more liquidity in the market and also to prune inflation. The Government and the Reserve Bank of India are taking various fiscal and monetary steps by responding to the moderating domestic growth and to slowing external demand from advanced economies.
INDUSTRY OVERVIEW
(PRINTING INK)
The printing ink consumption is directly related to GDP growth. The size of printing ink market in India is estimated to be in the range of Rs.25 billion and is expected to maintain 10-12 % annual growth in volume led by strong growth in FMCG and Publication space.
PERFORMANCE REVIEW
During the year, the Company's overall net sales increased from Rs.5533.61 million to Rs.6747.55 million registering an increase of 21.94% in terms of value and 8.2% in terms of volume. During the year, the Company witnessed a significant increase in raw material cost partly due to the impact of a major Rupee depreciation in the second half. The Company could pass only a part of the increased input cost to the market. However, due to better product mix and strong cost control, the Company was able to increase its overall operating profit from Rs.344.57 million to Rs.416.58 million which translates into a growth of 20.89% as compared to previous year. The Company recorded a Pre-tax profit of Rs.381.90 million compared to Rs.322.27 million (excluding Rs.50.54 million towards dividend received from subsidiary) earned in the previous year registering an increase of 18.50%. The post tax profit recorded was Rs. 264.51 million as against Rs.507.40 million of previous year. The results of the Company against last year are not comparable due to the fact that the Company had recorded extra- ordinary income in the financial year ended 31st December 2010 on account of sale of its stake in its wholly owned subsidiary, DIC Coatings India Limited.
BUSINESS OUTLOOK AND
FUTURE PROSPECTS
Inspite of slowdown in the economy, India is expected to register a growth of 7.6% for the fiscal year 2011-2012.
According to reports, the main factors that could adversely impact the markets include oil prices, inflation, high rates and slowing growth.
Although there is a concern that further deterioration of economic crisis might occur, we expect that considering sustained domestic demand and its inherent strength, Indian economy would show rapid improvement.
The Company's business strategy for the current financial year would be to consolidate the business which showed an impressive growth during last year and to focus on high quality market segment. By integrating individual technologies and functions from their Group's wide range of products, the Company will facilitate the development of new and high performance products. Further, the Company would focus on improving the operating margins through better productivity, greater focus on logistics and effective working capital management.
The Company's continued focus on Research and Development enabled it to develop several environment friendly products including certain products in the field of high performance to cater to some niche markets. The R & D Centre is recognized by the Central Government, Ministry of Science and Technology. The Company has a basket of several internationally recognised products and has plans to exploit these as well as to increase sales through new product launches and expanding market network.
The Company has continued its effort to implement all round cost saving measures and improving productivity to ensure that the Company's growth rate continues. The investment in Research and Development measures to upgrade its product portfolio and manufacturing process to cater to the future demands would be continued to maintain the Company's leadership in the market. It is the endeavour of the Company to deploy resources in a balanced manner so as to secure the interest of the shareholders in the short, medium and long term. With a significant improved customer base, experience in varied markets, continuous technical assistance from DIC Corporation, Japan, the world's largest ink manufacturing company and strong management team, the Company feels confident of sustained growth in all the market segments.
CONTINGENT LIABILITIES
Contingent Liabilities not provided for in
respect of:
(a) Income Tax matters Rs. 32.665 Millions
(2010 - Rs. 30.986 Millions) pending in appeals.
(b) Disputed Sales Tax, Excise Duties, etc.
Rs. 288.746 Millions (2010 - Rs.161.399 Millions) for which appeals before the relevant
authorities are pending disposal.
(c) In respect of Bills Discounted Rs. NIL
(2010 - Rs. 2.505 Millions)
The future cash outflow on account of above
cannot be determined at this stage.
FIXED ASSETS:
Tangible assets:
v Land – Freehold
v Land – Leasehold
v Buildings
v Plant and Machinery
v Furniture and Equipments
v Vehicles
v Computers
Intangible assets
v Computer Software
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. 54.60 |
|
|
1 |
Rs. 87.31 |
|
Euro |
1 |
Rs. 69.86 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.