MIRA
INFORM REPORT
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Report Date : |
01.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
GUJARAT
ALKALIES AND CHEMICALS LIMITED |
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Registered Office : |
P. O. Petrochemicals, District Vadodara – 391
346, Gujarat, INDIA |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.03.1973 |
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Com. Reg. No.: |
04-2247 |
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CIN No.: [Company
Identification No.] |
L24110GJ1973PLC002247 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDG00596B |
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PAN No.: [Permanent
Account No.] |
AAACG8896M |
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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 : |
Manufacturers
and Sellers of caustic soda lye and caustic potash lye, chlorine,
chloromethanes, sodium cyanide, phosphoric acid, hydrogen peroxide, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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
28500000 |
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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 an old and well-established company and it is one of the largest manufacturers
of Caustic Soda and Chlorine in the country. The company has made good
progress in its performance during the last two financial years. Its
financial position is satisfactory. Trade relations are fair. Payments are
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
P. O. Petrochemicals, District Vadodara – 391
346, Gujarat, INDIA |
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Tel. No.: |
91-265-2232681-82/2232981-82 |
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Fax No.: |
91-265-2232701/2272130/2273208 |
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E-Mail : |
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Website : |
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Factory
1 : |
Tel. No.
91-265-2372681-82/2232981-82/2232701 Fax No. 91-265-2372130 E-mail. general@gacl.co.in Website.
http://www.gacl.com
Tel. No.
91-2641-256314-16-17/256235 Fax No. 91-2641-256220 |
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Overseas
market.: |
Located
at: Australia,
Chile, Indonesia, Mauritius, South Africa, Taiwan, U.K., Bangladesh, China,
Japan, Nepal, Singapore, Tanzania, Zimbabwe, Belgium, Egypt, Kenya,
Netherlands, Spain, Thailand, Brazil, Hong Kong, Malaysia, Philippines, Sri
Lanka and UAE. |
DIRECTORS
|
Name : |
Mr. P. K. Taneja |
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Designation : |
Managing Director |
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Date of Birth/Age : |
05.02.1957 |
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Qualification : |
B. E. (Electronic & Communications),
I.A.S. |
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Experience : |
17 Years |
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Date of Appointment : |
31.12.2001 |
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Other
Directorships |
Gujarat State Electricity Corporation
Limited Gujarat Energy Transmission Corporation
Limited Gujarat Alumina and Bauxite Limited Gujarat Industries Power Company Limited |
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Name : |
Mr. S. G. Mankad |
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Designation : |
Chairman |
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Name : |
Mr. Balwant Singh |
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Designation : |
Director
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Name : |
Mr. G. C. Murmu |
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Designation : |
Director
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Name : |
Mr. B. P. Singh |
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Designation : |
Director (Nominee Director
of IDBI Limited.) |
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Name : |
Mr. Sukh Dev |
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Designation : |
Director
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Name : |
Mr. H. N. Sinor |
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Designation : |
Director
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KEY EXECUTIVES
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Name
: |
Mr. V. L. Vyas |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
|
16 |
0.02 |
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Directors
and their Relatives |
2 |
-- |
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Mutual
Funds, Banks, FI’s |
90 |
0.12 |
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Individuals
|
70807 |
97.57 |
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Companies
|
1320 |
1.82 |
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FII’s,
NRI’s, OCB’s |
340 |
0.47 |
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Total
|
72575 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Sellers of caustic soda lye and caustic potash lye, chlorine,
chloromethanes, sodium cyanide, phosphoric acid, hydrogen peroxide, etc. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
vadodara
complex
|
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Caustic Soda Lye & Caustic Potash Lye |
MT |
370000 |
313550 |
322757 |
|
Caustic Soda Flakes / Prills and Caustic
Potash Flakes |
MT |
69500 |
168500 |
153031 |
|
Chlorine Gas |
MT |
327440 |
273585 |
286995 |
|
Liquid Chlorine |
MT |
-- |
222000 |
139935 |
|
Hydrochloric Acid (100 %) |
MT |
130350 |
95300 |
89983 |
|
Hydrogen
Gas (Compressed) |
MT |
1037.80 |
31.060 |
51152233 |
|
Cyanide Salt |
MT |
3000 |
3000 |
2318 |
|
Chloromethanes |
MT |
29700 |
24750 |
26166 |
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Sodium Ferrocyanide |
MT |
100 |
100 |
63 |
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Sodium Hypochlorite (100 %) |
MT |
12500 |
4500 |
1694 |
|
Potassium Carbonate |
MT |
15000 |
13200 |
11005 |
|
Hydrogen Peroxide (100 %) |
MT |
11000 |
12540 |
13225 |
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Aluminium Chloride |
MT |
-- |
-- |
7638 |
|
Power Plant |
MW |
90.00 |
113.20 |
694.86 |
|
Calcium Chioride Flakes |
MT |
16500 |
16500 |
5686 |
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Phosphoric Acid (85%) |
MT |
26730 |
26730 |
24730 |
GENERAL INFORMATION
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No. of Employees : |
839 |
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Bankers : |
v
State
Bank of India, Vadodara, Gujarat, India v
Central
Bank of India, Vadodara, Gujarat v
HDFC
Bank Limited v
UTI Bank Limited v
Industrial Development v
Bank of India Limited v
UCO Bank v Indian Bank |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Messrs Prakash Chandra Jain & Company Chartered Accountants Solicitors Messrs Amarchand & Mangaldas & Suresh
A. Shroff & Company Mumbai Cost Auditors For F.Y. 2005-2006 Messrs S. B. Parikh & Company Cost Accountants Vadodara For F.Y. 2006-2007 Messrs Diwanji & Associates Cost Accountants Vadodara. |
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Associates/Subsidiaries : |
v
Gujarat
Industries Power Company Limited v
Gujarat
State Fertilisers & Chemicals Limited v
Gujarat
Guardian Limited v
Gujarat
State Petroleum Corporation Limited v
Government
of Gujarat |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1000.000 millions |
|
50,00,000 |
Redeemable cumulative preference shares |
Rs. 100/- each |
Rs. 500.000 millions |
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Total |
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Rs. 1500.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
73436928 |
Equity Shares |
Rs. 10/- each |
Rs. 734.369 Millions |
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Less: |
Amount
paid – up on forfeited shares |
|
Rs. 0.015 Millions |
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Total |
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Rs. 734.384 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
734.384 |
734.377 |
734.377 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6496.350 |
4684.087 |
3367.073 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
7230.734 |
5418.464 |
4101.450 |
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LOAN FUNDS |
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1] Secured Loans |
3718.275 |
5256.314 |
6185.208 |
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2] Unsecured Loans |
1007.758 |
141.787 |
1522.626 |
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TOTAL BORROWING |
4726.033 |
5398.101 |
7707.834 |
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DEFERRED TAX LIABILITIES |
2133.204 |
1846.636 |
809.823 |
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TOTAL |
14089.971 |
12663.201 |
12619.107 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
8716.094 |
9038.992 |
9565.040 |
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Capital work-in-progress |
1917.305 |
367.901 |
51.263 |
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INVESTMENT |
1224.891 |
625.091 |
584.625 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
754.086
|
649.988 |
612.639 |
|
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Sundry Debtors |
1606.127
|
1996.791 |
1467.505 |
|
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Cash & Bank Balances |
259.745
|
295.563 |
834.306 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
1782.715
|
865.732 |
603.905 |
|
Total Current Assets |
4402.673
|
3808.074 |
3518.355 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
|
|
|
Current Liabilities & Provisions |
2367.787
|
1451.265 |
1385.849 |
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Total Current Liabilities |
2367.787
|
1451.265 |
1385.849 |
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Net Current Assets |
2034.886
|
2356.809 |
2132.506 |
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MISCELLANEOUS EXPENSES |
196.795 |
274.408 |
285.673 |
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|
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TOTAL |
14089.971 |
12663.201 |
12619.107 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
11269.834 |
10545.156 |
10745.697 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
2946.700 |
2692.600 |
883.595 |
|
Provision
for Taxation |
967.000 |
1249.800 |
252.069 |
|
Profit/(Loss)
After Tax |
1979.700 |
1442.800 |
631.526 |
|
|
|
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Export
Value |
NA |
NA |
117.936 |
|
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|
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Import
Value |
NA |
NA |
460.928 |
|
|
|
|
|
|
Total
Expenditure |
11267.833 |
10543.155 |
9856.640 |
QUARTERLY
|
PARTICULARS |
|
|
30.06.2006 (1ST Quarter) |
|
Sales Turnover |
|
|
2418.300 |
|
Other Income |
|
|
78.500 |
|
Total Income |
|
|
2496.800 |
|
Total Expenditure |
|
|
1588.700 |
|
Operating Profit |
|
|
908.100 |
|
Interest |
|
|
83.700 |
|
Gross Profit |
|
|
824.400 |
|
Depreciation |
|
|
204.100 |
|
Tax |
|
|
178.800 |
|
Reported PAT |
|
|
425.700 |
200606 Quarter 1 - Expenditure includes
(Increase)/Decrease in stock Rs (23.100) million Consumption of Raw Material Rs
736.000 million Power, Fuel & Other Utilities Rs 294.000 million Other
Manufacturer and Operational Expenditure Rs 297.200 million Staff Cost Rs
170.000 million Other expenditure Rs 114.600 million Tax Includes Provision for
Provision for Taxation Includes Wealth Tax Rs 178.000 million Deferred Tax Rs
15.800 million Fringe Benefit Tax Rs 0.800 million EPS is Basic and Diluted
Status of Investor Complaints for the quarter ended 30.06.2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter 29 Complaints disposed off during the quarter 28 Complaints unresolved
at the end of the quarter 01 (Since Resolved) 1. The Company's operations fall
under single segment namely Chemicals. 2. Other Income includes Rs 34.400
million (Previous period Rs Nil) being VAT Collected under Sales Tax Incentive
scheme of Government of Gujarat and allowed as remission under Gujarat Value
Added Tax Act, 2003. 3. Prior Period Adjustment includes Rs 21.800 million
(Previous period Rs Nil) being CENVAT credit pertaining to earlier year. 4.
Commercial production of Caustic Soda plant expansion of 200 TPD at Dahej has
commenced from 26.06.2006 and of the new Poly Aluminum Chloride Plant at Dahej
from 08.05.2006. 5. The Statutory Auditors have conducted a Limited review of
the above results. 6. The above results have been reviewed by the Audit
Committee of Directors at their meeting held on 14.07.2006 and approved by the
Board of Directors of the Company at their meeting held on 15.07.2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.80 |
1.42 |
2.36 |
|
Long
Term Debt Equity Ratio |
0.61 |
1.25 |
2.16 |
|
Current
Ratio |
0.82 |
1.00 |
1.05 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.80 |
0.79 |
0.66 |
|
Inventory
|
18.84 |
20.25 |
19.19 |
|
Debtors |
7.34 |
7.38 |
7.08 |
|
Interest
Cover Ratio |
8.27 |
5.38 |
2.09 |
|
Operating
Profit Margin (%) |
31.28 |
31.88 |
23.08 |
|
Profit
Before Interest and Tax Margin (%) |
25.35 |
25.87 |
15.81 |
|
Cash
Profit Margin (%) |
20.90 |
17.29 |
13.15 |
|
Adjusted
Net Profit Margin (%) |
14.97 |
11.29 |
5.89 |
|
Return
on Capital Employed (%) |
30.06 |
30.36 |
14.69 |
|
Return on Net Worth (%) |
31.30 |
31.21 |
18.01 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.157.25/- |
|
Low |
Rs.150.50/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The
company was incorporated on 29th March, 1973 at Vadodara in Gujarat
having Company Registration Number 2247.
Subject
was set up in 1973, financed by Gujarat Industrial Investments Corporation
Limited, a wholly owned corporation of the Government of Gujarat, with a
license to produce 37425 MT per year of Caustic Soda, 33000 MT per year of
Liquid Chlorine and 15000 MT per year of hydrochloric acid.
The
company began commercial production in October 1976.
The
company was promoted by the Gujarat Industrial Investment Corporation (GIIC) (a
Government of Gujarat undertaking), the largest manufacturer of Caustic Soda
and Chlorine in the country. It also manufactures other basic Chemicals like
Sodium Cyanide, Chloromethane, Hydrochloric Acid, Hydrogen Gas, Caustic Potash
and Potassium Carbonate.
The
company embarked upon a diversification plan in April 1981 to produce 2000 MTA
of sodium cyanide. The first stage
expansion in October, 1981 raised the capacity to 70425 MTA of caustic soda and
the sodium cyanide plant went on stream in December, 1982.
The
second stage expansion in 1984, increased the caustic soda capacity to 103425
MTA and was followed by another diversification project to manufacture
chloromethanes in 1986.
The
company became first to convert the total capacity of 400 MT / day caustic soda
from mercury cell technology to membrane cell technology and production capacity
increased to 465 MT / day.
In 1994,
the company expanded its capacity from 132000 tpa to 148000 tpa. Considering
the power-intensive nature of the caustic soda industry, the company, along
with Gujarat State Finance Corporation, the Government of Gujarat/Gujarat
Electricity Board and Petrofils Co-operative, promoted a new company – Gujarat
Industries Power Company, which had assured company’s supply up to 26 MW at a
lower cost. In May 1995, the company offered PCDs on a right basis for three
projects – phosphoric acid (technical grade), hydrogen peroxide and caustic
soda prills.
The
company's second plant was set up in 1995 at Dahej.
The
company installed a captive power plant of 90 MW capacity at Dahej. It is also
setting up a 600-tpd grassroots caustic – chlorine plant in Bharuch. In
1995-1996, the company was awarded ISO 9002 by BIS.
In
1996-97, a new company viz. Gujarat Alumina and Bauxite Limited was promoted by
the company in association with Gujarat Mineral Development Corporation Limited
and Raytheon Engineers and Constructors, USA for setting up an Alumina Project
based on Bauxite deposits of Kutch and Saurashtra. In 1998-99, the Caustic Soda
Plant at Dahej was commissioned, the plant was operating at more than 100%
capacity.
Subject
has expanded the installed capacity of Chloromethane, Liquid Chlorine and
Hydrogen Gas (compressed) during the year 2002-2003 by 2640 MT,24000 MT,
1800000 NM3 respectively. With this expansion the total capacity of
Chloromethane, Liquid Chlorine and Hydrogen Gas (compressed) has been increased
to 23760 MT, 90000 MT, 2000000 NM3 respectively.
Dividend:
The Directors are glad to recommend a Dividend @ Rs.2.00 per share on
73436928 Equity Shares of Rs.10/- each fully paid up for the year ended
31.03.2006 and upon the approval at the ensuing Annual General Meeting, it will
be paid to all the equity shareholders, whose names appear in the Register of
Members as on 31.08.2006 and to those whose names appear at the end of the
business hours on that date as beneficial owners, as per particulars to be
furnished by National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL).
Corporate Governance:
The Company has been following the principles and practices of good
Corporate Governance and has ensured due compliance of the requirements
stipulated under Clause - 49 of the Listing Agreement with the Stock Exchanges.
A separate detailed report on Corporate Governance is given in the 33rd
Annual Report 2005-2006.
A Certificate dated 12.5.2006 issued by the Company's Statutory Auditors
in terms of Clause - 49 of the Listing Agreement with Stock Exchanges is
annexed to the said Corporate Governance Report.
Management Discussion And Analysis
Introduction:
Gujarat Alkalies And Chemicals Limited (GACL) is a Company promoted by
Government of Gujarat through Gujarat Industrial Investment Corporation
Limited. GACL is the single largest producer of Caustic Soda in India with
production capacity of 820 TPD and enjoys the economies of scale. The Company
is accredited with IS/ISO 9001:2000, ISO 14001:2004 and IS 18001:2000
Certifications. The quality policy of the Company reflects its emphasis and
commitments. From an initial capacity of 37,425 TPA Caustic Soda, it has grown
to be the largest producer in India, with a capacity of 2,70,000 TPA spread
over two complexes at Vadodara and Dahej. Gujarat has the longest coastal area
and the Company has proximity to the salt pans leading to uninterrupted supply
of the major raw material i.e. salt. GACL commenced operations in 1976 and
subsequently went into the manufacture of other basic chemicals like Sodium
Cyanide, Sodium Ferrocyanide, Chloromethanes, Hydrochloric Acid, Caustic
Potash, Potassium Carbonate, Phosphoric Acid (85%) and Hydrogen Peroxide. The
Company has made its' presence felt across the globe even against stiff
competition by exporting products to USA, Europe, Australia, Africa, Far &
Middle East Countries, China & South Asian Markets.
Financial Performance:
The Company performed very well during the year 2005-2006. The year under
review is one of the best fortunes for the Company. The Company could achieve
the highest ever profit during the year under review.
The profitability of the Company after providing for taxation has
improved from Rs.1442.700 Millions in 2004-2005 to Rs.1979.700 Millions in
2005-2006 an increase of 37.21%. Despite tough competition, the sales volumes
of Caustic Soda, Hydrochloric Acid and Chloromethanes have improved. The sales
realisation of Caustic Soda Group of Products, Chloromethanes, Hydrogen
Peroxide, Caustic Potash Group of Products and Phosphoric Acid have also
improved and stabilized.
For the year ended 31.03.2006, the Company achieved turnover of
Rs.10939.600 Millions, an increase of about 4.54% from Rs.10464.200 Millions in
the previous year. It is hoped that the demand for the Company's products and
the realisation will continue to improve or remain more or less at the same
level in the coming year. The other income, during the year ended 31.03.2006,
had been Rs. 277.800 Millions, as compared with Rs.107.500 Millions for the
previous year.
With concerted efforts the Company has achieved higher operational
efficiency of all the plants and exercised adequate cost control measures. The
Company has continued to reduce its total debts during the year under review by
Rs.672.100 Millions. The efforts to improve the performance of the Company are
continuing.
The raw material expenses increased by 18.06% to Rs. 2616.000 Millions from Rs.
2215.800 Millions during the previous financial year 2004-2005, mainly due to
increase in production and increase in transportation costs of raw materials.
Electricity charges have increased by Rs.186.500 Millions (7.60%). Other
operating expenses which include manufacturing and operating costs (especially
power costs), employee remuneration and benefits, administrative, miscellaneous
and marketing expenses, increased in the F.Y. 2005-2006 by 6.23% to Rs.
3021.100 Millions from Rs. 2843.900 Millions in the F.Y.2004-2005.
The operating profit (earnings before depreciation, interest and taxes)
has increased to Rs. 4125.200 Millions in the F.Y. 2005-06 from Rs.4050.000
Millions in the F.Y. 2004-2005.
Further, the interest expenses and financial charges in F.Y. 2005-2006
could be brought down by 34.14% to Rs. 393.600 Millions from Rs. 597.600
Millions for the F.Y. 2004-2005. The profit after interest but before
depreciation has been Rs.3731.600 Millions as against Rs.3452.400 Millions for
the F.Y.2004-2005, an increase of 8.09%.
Operations And Business Performance:
The Company achieved highest ever production of 3,10,470 MT of Caustic
Soda Lye against the production of 3,05,930 MT in 2004-2005, which shows an
increase of 1.48% over the previous year breaking all previous records.
The production of Caustic Soda Flakes and Prills was also highest ever at
1,45,975 MT compared to 1,31,249 MT during the previous year, which shows an
increase of 11.22%.
The production of Caustic Potash Lye had decreased marginally to 18,858
MT compared to 19,000 MT during the previous year, which shows a decrease of
0.75% due to floods in Gujarat during the month of July, 2005.
The production of Caustic Potash Flakes had been 7,066 MT compared to
6,090 MT during the previous year, which shows an increase of 16.03%.
The production of Potassium Carbonate had been curtailed to 11,046 MT
compared to 13,010 MT i.e. by 15.10% during 2005-2006 because of increase in
Caustic Potash Flakes market demand.
The production of Chloromethanes (CLM) had been highest ever at 26,166 MT
in 2005-2006 compared to 25,844 MT during the previous year.
The production of Hydrogen Peroxide was marginally lower at 13,225 MT
compared to 13,551 MT (100% basis) during the previous year.
The production of Sodium Cyanide was marginally lower at 2,317.5 MT
compared to 2,512.2 MT during the previous year because of low availability of
HCN.
A record production of 24,730 MT of Phosphoric Acid had been achieved in
2005-2006 compared to 23,900 MT during the previous year, which shows an
increase of 3.47%.
The production of Calcium Chloride had been 9,304 MT compared to 7,585 MT
during the previous year which shows an increase of 22.66%. Calcium Chloride
product consists of Calcium Chloride Liquid (35%), Flakes and Powder. The
production of Aluminium Chloride has also increased from 5,247 MT to 7,638 MT,
an increase of about 46%.
The power generation had increased to 722.340 million units in 2005-2006
from 704.660 million units in 2004-2005, which shows an increase of about
2.51%. As compared to last year's PLF of 89%, the PLF in 2005-2006 was
91.62%.
Awards:
The Directors are happy to report that the Company has received following
various prestigious awards during the year:
1. The National Energy Conservation Award - 2005 (First Prize in
Chlor-Alkali Sector) instituted by Ministry of Power, Government of India for
the second consecutive year awarded by Hon'ble President of India, Hon.
Excellency APJ Abdul Kalam.
2. Council for Fair Business Practices (CFBP) - Jamnalal Bajaj Uchit
Vyavhar Puraskar, 2005 for Fair & Ethical Business Practices.
3. Recognition by the Institute of Company Secretaries of India (ICSI) in
the list of top 25 Companies for the National Award for excellence in Corporate
Governance for the year 2005.
4. Indian Merchants' Chamber (IMC) Ramakrishna Bajaj National Quality
Certificate of Merit, 2005 in manufacturing category.
5. Indian Manufacturing Excellence Award (IMEA) - 2005 for excellence in
Housekeeping & Effective Deployment of Quality Management System.
6. First Prize Winner in Housekeeping (Chemical Process Industries
Category) instituted by Baroda Productivity Council.
7. Federation of Gujarat Industries (FGI) Award for Excellence - 2005 in
the area of Environment Preservation & Pollution Control.
8. Greentech Gold and Silver Awards for Safety Excellence for Vadodara
and Dahej unit respectively.
9. Greentech Gold and Silver Awards for Environment Excellence for
Vadodara and Dahej unit respectively.
10. Consolation Prize for the case study on 'Economics of Quality'
awarded by Quality Council of India, Ministry of Commerce & Industry,
Government of India.
11. AMA - Metrochem Outstanding Manager of the Year Award 2005' awarded
to Managing Director, GACL.
12. Certificates of Appreciation & Honour for Safety Performance
(Vadodara) & Certificate of Honour (Dahej) by Gujarat Safety Council &
Factory Inspectorate, Govt. of Gujarat.
13. Certificate of Appreciation in TERI Corporate Environmental Award,
2004-2005 for its efforts towards environmental management and innovative
initiatives amongst corporates with turn over above 5000.000 Millions rupees -
by The Energy & Resources Institute, New Delhi.
14. 'SCOPE Meritorious Award for Good Corporate Governance' for the year
2004-2005 for its sales growth, profitability, shareholders value, following
vision and mission, professional and ethical standards maintained by the Company,
commitment to the welfare and well being of all its stakeholders, proactive
initiatives to consistently improve Corporate Governance.
The
company is in trade terms with :-
·
Ajay
Valve Private Limited
·
Allied
Chemical Corporation
·
Altop
Industries Limited
·
Amravathi
Chemical & Fertilizer Private Limited
·
Apollo
Plastic Industries
·
Arihant
Fabricators
·
Aswani
Engineering Company
·
Bardanwala
Brothers
·
Chandan
Salt Works Private Limited
·
Chem
Mech Rubbers and Engineers
·
Chemical
Process Equipments Private Limited
·
Dakomath
nArmada Minrochem Private Limited
·
Deluxe
Polyfab Private Limited
·
Dolf
Industries
·
Fabwel
Engineering Corporation
·
Fibre
Steel Fabricators
·
Fineweld
Engineers
·
Fluoropolymers
Packings and Seals Private Limited
·
Flurolined
Equipments Private Limited
·
Gandhar
Salt and Chemical Industries
·
Gordan
Industries
·
Gujarat
Dyestuff Industries Private Limited
·
Harlem
Polycontainers Private Limited
·
Heliflex
Hydraulic & Engineering Company
·
Hindustan
Lime Products
·
Hi-Tech
Controls
·
Industrial
Moulders
·
Kailash
Explosives & Company
·
Laxmi
Narayan Salt Works
·
Laxmi
Salt and Chemical Works
·
Leak
Engineering (I) Private Limited
·
Magirsha
Industries
·
Naman
Plastics Processors Limited
·
Packme
Industries
·
Polyplast
Chemi-Plants (I) Private Limited
·
Prem
Chemical Industries
·
Prime
Synthomers
·
Process
Pumps (I) Private Limited
·
PVN
Plastics Industries
·
Ramakrishna
Chemicals Limited
·
Shree
Maliyagiri Plastic Industries
·
Shri
Ram Rubtech Private Limited
·
Sigachi
Chlorochemicals Private Limited
·
Steelfab
Enterprises
·
Tekno
Valves
·
Unicare
Emergency Equipments
·
V.
K. Pump Industries Private Limited
·
Velmake
Seals
·
Venus
Trading Company
·
Vimarzoo
Salt Works
·
Vindi
Vak Pumps Private Limited
·
Yesha
Electricals Private Limited
The
company’s fixes assets of important value include freehold land, leasehold
land, buildings, roads & culvents, plant & machinery, furniture,
fixtures & equipments and vehicles.
GACL Achiieves
Iimpressiive Quarterly Results – Sales Turn Over Of Rs. 2350.700 Millions and
Profiit After Tax Of Rs.575.700 Millions – Regiisteriing an Iincrease Of 59%
Over Correspondiing Periiod..
Vadodara, Friday, the 28.10.2005
Gujarat Alkalies and Chemicals Limited (GACL) has posted very impressive
unaudited (provisional) financial results for the second quarter ended
30.09.2005. The Board of Directors in the meeting held at Vadodara on 28.10.
2005 has approved the financial results for the second quarter of the current
financial year, 2005-2006. Shri P K Taneja, IAS, Managing Director of the
Company announced that the Company has achieved Sales Turn Over of Rs. 2350.700
Millions during the quarter ended 30.09.2005 as compared to Rs. 2147.600
Millions showing an increase of 9% over the corresponding period of previous
year. The profit after tax for the quarter at Rs. 575.700 Millions shows an
impressive increase of 59% over Rs. 361.700 Millions for the second quarter of
previous year. The turn over for the first half of the current financial year
has increased to Rs. 4814.800 Millions from Rs. 3959.500 Millions showing an
improvement of 22% over the same period in the previous year. The profit after
tax for the first half of the current year has increased to Rs. 1207.700
Millions from Rs. 465.800 Millions showing a quantum jump by 159% over the
first half of the previous year.
Managing Director of the company further stated that the Company has
achieved the combined production level of 295,436 MT during the quarter,
showing an improvement of 3 per cent as compared to 287,611 MT for the same
period in the previous year. The capacity utilization of company’s plants at
both the complexes i.e. Baroda and Dahej during the quarter under review have
been maintained at near to 100% or more. The Plant Load Factor(PLF) of the
power plant at Dahej has increased to 92% from 86% in the second quarter of the
previous year. The Managing Director of the company added that the Gross Profit
before interest and depreciation has increased to Rs.1133.900 Millions during
the quarter compared to Rs. 929.900 Millions of the same period of the previous
year showing an increase of 22% and that the Company has generated higher cash
profit at Rs.1014.100 Millions as against Rs.770.000 Millions in same period
during the previous year showing an increase of Rs.244.100 Millions (32%).
The Interest and Financial Charges have markedly reduced by Rs.40.100
Millions (by 25%) to Rs.119.800 Millions in the current quarer as compared to
Rs.159.900 Millions in the second quarter of previous year. This has been made
possible by efficient management of company’s financial resources coupled with
timely market collections. Shri Taneja further informed that the Company could
achieve remarkable Profit After Tax on quarterly basis mainly due to:
Improved sales realization,
Increase in sale of power to GEB,
Increased Plant Load Factor (PLF) of Power Plant to 92% from 86%
Reduction in the interest and financial charges due to efficient fund
management, and repayment of debts of Rs.305.300 Millions, (including
prepayment) Improvement in the operational efficiency
He, further, added that the debt equity ratio at the end of the quarter
has further improved to 0.59: 1 as compared to 1.02: 1 as on 31.03.2005 on
account of repayment Rs. 1547.700 Millions during the half-year ended
30.09.2005. The Earning per share on an annualized basis after Deferred Tax has
jumped to Rs. 32.90 per share as compared to Rs.19.65 per share for the
previous year.
Shri Taneja, informed that other income for the quarter under review
include the benefit of CENVAT credit of Rs. 45.300 Millions pertaining to
earlier years allowed by the Excise Department. The company has also received
Rs. 49.900 Millions (equivalent to US$ 1,139,700) from the Multilateral Fund
towards CTC phase out programme out of total receivable Rs. 410.000 Millions
approx. (equivalent to US$ 9.375 million) under the Montreal Protocol over a
period of six calendar years from 2005 to 2010. Shri Taneja also informed that
the implementation of projects viz. Caustic Soda Expansion Phase I and II at
Dahej, Poly-Aluminium Chloride at Baroda and Dahej, Hydrogen Peroxide at Dahej,
De-bottlenecking at Baroda, are progressing as per the schedule.
As a part of the expansion programme, the Company has undertaken
Feasibility Study of setting up of 160000 MTA EDC Plant, 200/250 MW Power Plant
at Dahej and 20 MW Power Plant at Vadodara. Shri Taneja, further informed that
the company has undertaken the Clean Development Mechanism (CDM) Project under
which the company will enter the carbon trade under the Kyoto Protocol. The
Company has identified and submitted four projects to the Ministry of
Environment & Forest for the approval of Host Country. The Company has
further taken steps for UNFCCC approval under the Kyoto Protocol.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
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.44.93 |
|
UK
Pound |
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.57.34 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|