1. Summary Information
|
Country |
India |
||
|
Company Name |
DAI ICHI
KARKARIA LIMITED |
Principal Name 1 |
Mr. J. H. C. Jehangir |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. A. H. Jehangir |
|
Registration # |
11-011681 |
||
|
Street Address |
Liberty
Building, Sir Vithaldas Thackersey Marg, Mumbai – 400 020, Maharashtra, India |
||
|
Established Date |
13.05.1960 |
SIC Code |
-- |
|
Telephone# |
91-22-22015895 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-22082113 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Oil Field Chemicals |
|
|
# of employees |
239 (Approximately) |
Product Name 2 |
Synthetic Polymers |
|
Paid up capital |
Rs.
75,512,000/- |
Product Name 3 |
Trimetazidine |
|
Shareholders |
Shareholding of Promoter and Promoter Group 60.68% Public Shareholding 39.32% |
Banking |
Bank of India |
|
Public Limited Corp. |
Yes |
Business Period |
53 Years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
Ba
(47) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary Company |
India |
Basic Oil Treating (India) Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
309,372,000 |
Current Liabilities |
136,318,000 |
|
Inventories |
91,813,000 |
Long-term Liabilities |
11,351,000
|
|
Fixed Assets |
154,462,000 |
Other Liabilities |
27,841,000 |
|
Deferred Assets |
0000 |
Total Liabilities |
175,510,000 |
|
Invest& other Assets |
270,327,000 |
Retained Earnings |
575,952,000 |
|
|
|
Net Worth |
650,464,000 |
|
Total Assets |
825,974,000 |
Total Liab. & Equity |
825,974,000 |
|
Total Assets (Previous Year) |
777,949,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
703,436,000 |
Net Profit |
33,517,000 |
|
Sales(Previous yr) |
542,296,000 |
Net Profit(Prev.yr) |
41,039,000 |
MIRA INFORM REPORT
|
Report Date : |
16.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
DAI ICHI KARKARIA LIMITED |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
13.05.1960 |
|
|
|
|
Com. Reg. No.: |
11-011681 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.74.512 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24100MH1960PLC011681 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PNED01751B MUMD09272E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACD0548F |
|
|
|
|
Legal Form : |
Public limited liability company.
The company's shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
The company is engaged in Manufacturing of Speciality
Chemicals. |
|
|
|
|
No. of Employees
: |
239 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2600000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is established company having a satisfactory track record.
Trade relations 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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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
|
Registered Office : |
|
|
Tel. No.: |
91-22-22015895/22017130 |
|
Fax No.: |
91-22-22082113/22096976 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
105th Milestone, Mumbai – Pune Marg, P.O.
Kasarwadi, Pune – 411 034, |
|
Tel No.: |
91-20-66308800 |
|
Fax No.: |
91-20-27125233/ 66308815 |
|
Email: |
|
|
|
|
|
Factory 2 : |
Plot No. D-13, MIDC, Kurkumbh Industrial Area, Village
Kurkumbh, Taluka Daund, District Pune, |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. D. M. Neterwala |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. S. F. Vakil |
|
Designation : |
Vice –Chairperson and Managing Director |
|
Qualification : |
M.A. (Hons.), M.B.A. ( |
|
Date of Appointment : |
01.10.1980 |
|
Previous Employment |
Universal Ferro and Allied Chemicals Limited |
|
|
|
|
Name : |
Mr. J. H. C. Jehangir |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. H. Jehangir |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. D. Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. A. M. Naik |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. K. R. Bharucha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. S. Bilimoria |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. M. Elavia |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Kavita Thadeshwar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3834457 |
51.46 |
|
|
686717 |
9.22 |
|
|
4521174 |
60.68 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
4521174 |
60.68 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
Mutual Funds / UTI |
1600 |
0.02 |
|
Sub Total |
1600 |
0.02 |
|
|
|
|
|
|
232243 |
3.12 |
|
|
|
|
|
|
1538191 |
20.64 |
|
|
1031798 |
13.85 |
|
|
126223 |
1.69 |
|
|
20100 |
0.27 |
|
Non Resident Indians |
68677 |
0.92 |
|
|
37446 |
0.50 |
|
|
2928455 |
39.30 |
|
Total Public
shareholding (B) |
2930055 |
39.32 |
|
Total (A)+(B) |
7451229 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
7451229 |
- |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in Manufacturing of Speciality
Chemicals. |
||||||||||||||
|
|
|
||||||||||||||
|
Products : |
· Oil Field Chemicals · Textile Auxiliaries · Surface Action Agents · Flocculants · Bulk Drugs · Intermediates
|
GENERAL INFORMATION
|
No. of Employees : |
239 (Approximately) |
|||||||||
|
|
|
|||||||||
|
Bankers : |
|
|||||||||
|
|
|
|||||||||
|
Facilities : |
Note : The Term Loan of Rs. 0.461 Million from HDFC Bank Limited is secured against hypothecation of the vehicle purchased under the loan and is payable in 60 equated monthly installments of Rs. 0.010 Million each commencing from October 2011 at an interest rate of 12.50% per annum on reducing balance. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai-400020, |
|
|
|
|
Solicitors : |
Bharucha and Partners |
|
|
|
|
Subsidiary Company: |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Other related
parties : |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs. 100.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7451229 |
Equity shares |
Rs.10/- each |
Rs. 74.512 Millions |
|
|
|
|
|
a) Reconciliation of
number of shares and amount Outstanding
|
Particulars |
As at 31.03.2012 |
||
|
|
No. of Shares |
No. of Shares Amount (Rs. In Millions) |
|
|
Number of Equity Shares at the beginning and end of the period/year |
74,51,229 |
74.512 |
|
|
Equity shares issued during the year |
-- |
|
|
|
Equity shares outstanding at the end of the year |
74,51,229 |
74.512 |
|
b) Details of shares held
by each shareholder holding more than 5% shares:
|
Particulars |
As at 31.03.2012 |
||
|
|
No. of Shares Held |
% Holding |
|
|
Equity Shares With
Voting Rights |
|
|
|
|
Ashokumar Parmar |
732266 |
9.83 |
|
|
S. F Vakil |
1283630 |
17.23 |
|
|
P. R. Mehta |
1687500 |
22.65 |
|
c) Aggregate number
and class of shares allotted as fully paid up pursuant to contract(s) without
payment being received in cash, bonus shares and shares bought back for the period
of 5 years immediately preceding the Balance Sheet date:
|
Particulars |
Aggregate number of shares As
at 31st March, 2012 |
Aggregate number of shares As at 31st
March, 2011 |
Aggregate number of shares As at 31st
March, 2010 |
Aggregate number of shares As at 31st
March, 2009 |
Aggregate number of shares As at 31st
March, 2008 |
|
Equity Shares bought back |
-- |
-- |
155171 |
-- |
-- |
d) The Company has one class of equity shares having a par value of Rs. 10/- per share. Each equity share holder is eligible for one vote per share held. Each equity share holder is entitled to dividend as and when the Company declares and pays dividend after obtaining share holders approval. Dividends are paid in Indian Rupees.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
74.512 |
74.512 |
74.512 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
575.952 |
560.101 |
538.865 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
650.464 |
634.613 |
613.377 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.354 |
0.000 |
0.071 |
|
|
2] Unsecured Loans |
10.997 |
12.088 |
12.967 |
|
|
TOTAL BORROWING |
11.351 |
12.088 |
13.038 |
|
|
DEFERRED TAX LIABILITIES |
1.947 |
3.291 |
4.690 |
|
|
|
|
|
|
|
|
TOTAL |
663.762 |
649.992 |
631.105 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
154.462 |
140.944 |
146.081 |
|
|
Capital work-in-progress |
0.359 |
2.744 |
3.354 |
|
|
|
|
|
|
|
|
INVESTMENT |
269.968 |
334.930 |
336.298 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
91.813
|
66.763 |
54.143 |
|
|
Sundry Debtors |
134.695
|
95.974 |
90.385 |
|
|
Cash & Bank Balances |
98.038
|
73.032 |
74.528 |
|
|
Other Current Assets |
1.067
|
0.223 |
3.388 |
|
|
Loans & Advances |
75.572
|
63.339 |
45.081 |
|
Total
Current Assets |
401.185
|
299.331 |
267.525 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
86.428
|
58.791 |
50.506 |
|
|
Other Current Liabilities |
49.890
|
43.476 |
42.628 |
|
|
Provisions |
25.894
|
25.690 |
29.019 |
|
Total
Current Liabilities |
162.212
|
127.957 |
122.153 |
|
|
Net Current Assets |
238.973
|
171.374 |
145.372 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
663.762 |
649.992 |
631.105 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
703.436 |
542.296 |
504.830 |
|
|
|
Other Income |
43.725 |
55.252 |
50.413 |
|
|
|
TOTAL (A) |
747.161 |
597.548 |
555.243 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
507.077 |
374.873 |
|
|
|
|
Changes in inventories of finished goods, work-in progress. |
(7.759) |
(5.684) |
|
|
|
|
Employee benefits expenses |
90.331 |
79.486 |
|
|
|
|
Other expenses |
105.644 |
90.421 |
|
|
|
|
TOTAL (B) |
695.293 |
539.096 |
488.321 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
51.868 |
58.452 |
66.922 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.018 |
0.003 |
0.236 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
51.850 |
58.449 |
66.686 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
11.427 |
10.008 |
11.003 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
40.423 |
48.441 |
55.683 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
6.906 |
7.402 |
15.993 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
33.517 |
41.039 |
39.690 |
|
|
|
|
|
|
|
|
|
|
Excess provision for Dividend and Dividend Tax of earlier year written
back |
0.000 |
0.000 |
0.337 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
N.A |
201.959 |
182.310 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
N.A |
N.A |
3.000 |
|
|
|
Dividend |
N.A |
N.A |
14.903 |
|
|
|
Tax on Dividend |
N.A |
N.A |
2.475 |
|
|
BALANCE CARRIED
TO THE B/S |
N.A |
N.A |
201.959 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
105.203 |
45.434 |
29.247 |
|
|
|
Commission Earnings |
0.226 |
0.304 |
0.134 |
|
|
TOTAL EARNINGS |
105.429 |
45.738 |
29.381 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Packing
Materials |
100.550 |
61.897 |
61.145 |
|
|
|
Capital Goods |
0.000 |
1.199 |
1.198 |
|
|
TOTAL IMPORTS |
100.550 |
63.096 |
62.343 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
4.50 |
5.51 |
5.30 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
192.200 |
202.300 |
205.800 |
|
Total Expenditure |
183.800 |
197.400 |
198.800 |
|
PBIDT (Excl OI) |
8.400 |
4.900 |
7.000 |
|
Other Income |
18.200 |
12.300 |
5.500 |
|
Operating Profit |
26.600 |
17.200 |
12.500 |
|
Interest |
0.000 |
0.000 |
0.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
26.600 |
17.200 |
12.400 |
|
Depreciation |
3.200 |
3.300 |
4.000 |
|
Profit Before Tax |
23.400 |
13.900 |
8.400 |
|
Tax |
5.000 |
3.000 |
1.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
18.400 |
10.900 |
6.500 |
|
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 |
18.400 |
10.900 |
6.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.49
|
6.87 |
7.15
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.75
|
8.93 |
11.03
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.27
|
11.00 |
13.46
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.08 |
0.09
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.02
|
0.02 |
0.02
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.47
|
2.34 |
2.19
|
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 |
No |
|
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 |
No |
DETAILS OF
UNSECURED LOAN:
|
Particulars |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
Deferred Payment Liabilities |
10.997 |
12.088 |
|
Total |
10.997 |
4.718 |
Note :
Under the package scheme of incentive for industries in backward area, the company has been sanctioned deferral of payment of sales tax collection for a period of 74 months commencing August 1, 2000 up to an amount of Rs. 48.442 Millions for the Kurkumbh unit at Pune. The deferred amount is recognized as long term borrowing and is unsecured, interest free and payable after a moratorium period of 10 years in 5 yearly equal installments which commence from year 2011.
The deferred sales tax liability is payable in annual installments as below:
|
Year |
31.03.2012 (Rs. In Millions) |
|
2013 |
1.601 |
|
2014 |
2.008 |
|
2015 |
2.174 |
|
2016 |
1.912 |
|
2017 |
1.502 |
|
2018 |
0.992 |
|
2019 |
0.586 |
|
2020 |
0.223 |
|
2021 |
10.997 |
PERFORMANCE REVIEW:
Sales increased by 30% to approx. Rs. 760.000 Millions compared with the year ended 2010-11. There is a substantial increase in exports contributing to 15% of total revenue. Sharply increased RM costs could not be passed on in Sales prices with several customers, resulting in higher Material to Sales ratios. These high costs have put a strain on bottom-line of the Company, reducing PBDIT to 7%.
MANAGEMENT DISCUSSIO
N AND ANALYSIS REPORT:
INDUSTRY STRUCTURE
AND DEVELOPMENT: OPPORTUNITIES AND THREATS, RISKS AND CONCERNS
The year started well as demand recovered from the 2008 recession, and the Company settled into a fine 10 – 15% growth pattern over most of its industrial segments. However with the extreme volatility of the currency from July onwards, and unpredictable feedstock prices, there was a marked slowdown; into the 3rd and 4th quarter.
In the background of the European financial crisis and the lagging US economy, a general worry about future economic development has plagued the mind set of most companies. Future uncertainties together with higher interest rates affected the economic environment of the 2nd half 2011. There was a general slowdown compared with the first half of the year. Our customers planned cautiously, reducing inventories, delaying orders with the expectation of falling prices.
Worldwide the Chemical Industry is back on the growth path. Global demand for chemicals for 2011 grew by 23% reaching an all time high of € 3.10 billion. The growth in Asia, South America and East Europe were the strongest. India’s chemical industry is on the way back to moderate growths. The country however remains a net importer, as the basic demand for feed stocks outstrips domestic supply. In India where competition is very often determined by price, there can be dramatic shifts in Revenues, based on a company’s competitive edge and its product differentiation.
SECTOR-WISE
PERFORMANCE:
The Company has one Reportable Business segment viz. Specialty Chemicals.
In the past year the Company has concentrated on reducing the number of special customized products and focused on higher value business.
This has resulted in substantial increase in business for its Oil Field chemicals to the Middle East and further exports to the Far East and Russia through its joint venture partner Champion Technologies. In January earnings improved thanks to the successful business with oil field chemicals to the Middle East and through CTI.
Sales in Anionics and Nonionics rose due to good demand after January ’12 and price increases followed.
In addition the Company has focused on increasing its reach for its specialty Textile and Spin Finish offerings to the Polyester Industry. However, this area remains highly competitive, with extremely stretched margins.
In the other industrial applications, the Company has seen moderate organic growth, and is presently limited by its own capacity constraints. The decision to expand capacities has been taken, and the logistics and time lines are being worked out.
Our turnover risk is pooled across several bands of the economy. This increases the complexity of the production processes and the constant need to review the product portfolio against capacities. It also requires a change in focus as products get commoditized.
In our attempt to step up our competitiveness and enhance our global reach, the Company has prioritized production and followed clearly defined scheduling, allowing for improved operational efficiencies.
The Companies multipurpose, batch production facilities and focus on increasing yields, and improving energy efficiency has resulted in Productivity increase of over 10 - 15% this year.
The Companies focus on cost reduction initiatives, through improving production efficiencies and reducing energy costs has allowed it to become more competitive, where products have become commoditized through time.
The Company has replaced and supplemented its present oil fired boiler, with a Bio fuel based system, and has already reduced costs substantially.
In the cluttered market of me-too products and inadequate intellectual property protection, it is important differentiate ourselves by creating brand value. The Company has built up this credibility through not only its ability to pioneer new chemistries, but also by its insistence on batch to batch consistencies, and zero tolerance for deficiencies in quality.
The Company will remain committed to reducing costs further whilst improving efficiencies at all levels. The Company’s focus on product innovations and value added niche applications will continue to be its prime objective. 10 Annual Report 2011-2012 In the oil field sector, our joint venture with Champion Technologies is moving forward very well.
Our ability to give the oil operators, much flexible and innovative solutions to their performance needs has resulted in substantial increase in business for the Joint Venture Company. Dai-ichi continues to support these operations through cost effective and timely local supplies.
The Kurkumbh Plant has recently started exports of its products, and has improved its bottom line, even though it continues to be in the red this year.
The Company’s focus in the coming year will continue to be in customized, cost efficient, environmentally friendly products using innovative and pioneering technologies.
COMPANY OVERVIEW :
Subject was incorporated on 13th May, 1960 under the laws of the Republic of India and has its registered office at Mumbai (Maharashtra). The Company is engaged in manufacturing of Specialty Chemicals. The Company has a joint venture with CTI Chemicals Asia Pacific Private Limited, Singapore.
The manufacturing activities of the Company are carried out at its plants located at Kasarwadi and Kurkumbh, Pune (Maharashtra).
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Guarantees issued to others by Bank secured by counter guarantee of the company and by charge on the fixed assets, inventories and book debts of the company and personal guarantee of the Chairman of the company. |
19.414 |
28.379 |
|
Guarantee given to Bank of Baroda, for credit facilities extended to Joint Venture – Champion Dai-ichi Technologies India Limited |
-- |
22.500 |
|
Customs duty bonds |
**73.553 |
52.650 |
** Includes Rs. 50.671 Millions of Bonds, issued jointly in name of the Company and Champion Dai-ichi Technologies
India Limited.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED
3OTH SEPTEMBER, 2012
|
Particulars |
Quarter Ended |
Half Year Ended |
|
|
PART - I |
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
1. Income from Operations: |
|
|
|
|
a) Net Sales/ Income From Operation |
201.800 |
192.000 |
393.800 |
|
b) Other operating Income |
0.500 |
0.200 |
0.700 |
|
Total Income from Operations (Net) |
202.300 |
192.200 |
395.500 |
|
2. Expenses |
|
|
|
|
a) Cost of materials and packing materials
consumed |
147.000 |
142.900 |
289.900 |
|
b)Changes in inventories of Finished goods,
work-in progress and stock in trade |
(4.300) |
(8.100) |
(12.400) |
|
c) Employee benefit expenses |
23.400 |
20.600 |
44.000 |
|
e) Depreciation |
3.300 |
3.200 |
6.500 |
|
f) Other Expenditure |
31.300 |
28.400 |
59.700 |
|
Total Expenses |
200.700 |
187.000 |
387.700 |
|
|
|
|
|
|
3. Profit/ Loss from operations before other
Income, Interest and Exceptional Item (1-2) |
1.600 |
5.200 |
6.800 |
|
4. Other Income |
12.300 |
18.200 |
30.500 |
|
5. Profit/ Loss before Interest and
Exceptional Item (3+4) |
13.900 |
23.400 |
37.300 |
|
6. Interest |
*** |
*** |
*** |
|
7. Profit/ Loss after Interest but before
Exceptional Item (5-6) |
13.900 |
23.400 |
37.300 |
|
8. Exceptional Items |
0.000 |
0.000 |
0.000 |
|
9. Profit/ Loss from ordinary Activities
before tax (7+8) |
13.900 |
23.400 |
37.300 |
|
10. Tax expenses (including deferred tax and
fringe benefit tax) |
3.000 |
5.000 |
8.000 |
|
11.Net Profit/ Loss from ordinary Activities
after tax (9-10) |
10.900 |
18.400 |
29.300 |
|
12. Extraordinary Item (Net of tax expenses) |
0.000 |
0.000 |
0.000 |
|
13. Net Profit/ Loss for the period (11-12) |
10.900 |
18.400 |
29.300 |
|
14. Paid up equity Share Capital (Face value per share – Rs. 10) |
74.500 |
74.500 |
74.500 |
|
15. Reserves excluding Revaluation Reserve |
0.000 |
0.000 |
0.000 |
|
16. Earning per Share (EPS) of Rs. 10 each
(not annualized) |
|
|
|
|
a) Basic and Diluted EPS before and after
Extraordinary item for the year to date and for the previous year (not
annualized) |
1.46 |
2.47 |
3.93 |
|
b) Basic and diluted EPS after extraordinary
items for the period, for the year to date and for the previous year (not
annualized) |
1.46 |
2.47 |
3.93 |
|
PART - II |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of Shares |
2930599 |
2930599 |
2930599 |
|
- Percentage of shareholding |
39.33% |
39.33% |
39.33% |
|
2. Promoters and Promoter group shareholding |
|
|
|
|
a) Pledged/ Encumbered |
|
|
|
|
- Number of shares |
0.000 |
0.000 |
0.000 |
|
- Percentage of share (as a %d of the total
shareholding of promoter and promoter group) |
0.000 |
0.000 |
0.000 |
|
- Percentage of share (as a % of the total
share capital of the company) |
0.000 |
0.000 |
0.000 |
|
b) Non Encumbered |
|
|
|
|
- Number of Shares |
4520630 |
4520630 |
4520630 |
|
- Percentage of share (as a% of the total shareholding
of promoter and promoter group) |
100 % |
100 % |
100 % |
|
- Percentage of share (as a % of the total
share capital of the company) |
60.67 % |
60.67 % |
60.67 % |
|
B. INVESTOR COMPALAINTS |
3 Months Ended 30.09.2012 |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
Received during the year |
Nil |
|
|
|
Disposed of during the quarter |
Nil |
|
|
|
Remaining unresolved at the end of the
quarter |
Nil |
|
|
Note :
*** Interest Expenses are less than Rs. 0.050 Million.
STANDALONE STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
A. EQUITY AND LIABILITIES |
As at 30.09.2012 |
|
1. Shareholders’ funds |
|
|
a) Share Capital |
74.500 |
|
b) Reserves and Surplus |
605.100 |
|
Sub -total Shareholders’ funds |
679.600 |
|
2. Non-current Liabilities |
|
|
a) Long-term borrowings |
12.000 |
|
b) Deferred tax liabilities (net) |
1.100 |
|
c) Other long term liabilities |
12.900 |
|
d) Long term provisions |
6.600 |
|
Sub –total Non-current Liabilities |
32.600 |
|
3. Current liabilities |
|
|
a) Trade payables |
82.400 |
|
b) Other current liabilities |
62.800 |
|
c) Short-term provisions |
2.100 |
|
Sub –total Current liabilities |
147.300 |
|
TOATL EQUITY AND LIABILITIES |
859.500 |
|
|
|
|
B.ASSETS |
|
|
1. Non-current assets |
|
|
a) Fixed assets |
161.200 |
|
b) Non-current investments |
64.800 |
|
c) Long-term loans and advances |
109.200 |
|
Sub –total Non-current assets |
335.200 |
|
2. Current assets |
|
|
a) Current investments |
147.900 |
|
b) Inventories |
110.800 |
|
c) Trade receivables |
141.800 |
|
d) Cash and cash equipments |
98.800 |
|
e) Short-term loans and advances |
23.800 |
|
f) Other current assets |
1.200 |
|
Sub –total current assets |
524.300 |
|
TOATL ASSETS |
859.500 |
Note :
1. The above financial results have been reviewed by the Audit Committee of Directors and approved by the Board of Directors at its meeting held on 26th October, 2012.
2. The statutory auditors have conducted the limited review of the results for the quarter ended 30th September, 2012.
3. The operation of the company relates to a single reportable segment that is Speciality Chemicals.
4. Previous periods figures are regrouped and rearranged wherever required. Figures are rounded off to the nearest Millions
FIXED ASSETS:
·
·
· Building – Residential
· Building – Non-Residential
· Plant and Machinery
· Furniture and Fixture
· Laboratory, Office and Factory Equipment and Air conditioner
· Vehicles
· Scientific research capital expenditure: Non Residential building
· Building
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 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.54.63 |
|
|
1 |
Rs.83.70 |
|
Euro |
1 |
Rs.71.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.