MIRA
INFORM REPORT
|
Report Date : |
15.11.2008 |
IDENTIFICATION DETAILS
|
Name : |
GUJARAT ALKALIES
AND CHEMICALS LIMITED |
|
|
|
|
Registered Office : |
P. O. Petrochemicals, District Vadodara – 391346, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
29.03.1973 |
|
|
|
|
Com. Reg. No.: |
04-2247 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24110GJ1973PLC002247 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BRDG00596B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACG8896M |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s Shares
are Listed on the Stock Exchanges |
|
|
|
|
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
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 50000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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
|
Registered Office : |
P. O. Petrochemicals, District Vadodara – 391 346, Gujarat, India |
|
Tel. No.: |
91-265-2232681-82/2232981-82 |
|
Fax No.: |
91-265-2232701/2272130/2273208 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
v
P. O. Petrochemicals
– 391 346, Dist. Vadodara, Gujarat, India 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 v
P. O. Dahej,
Taluka Vagra, District Bharuch - 392130, Gujarat, India Tel. No.
91-2641-256315-16-17/ 256235 Fax No. 91-2641-256220 |
|
|
|
|
Overseas
market.: |
Located at: v
Australia v
Chile v
Indonesia v
Mauritius v
South Africa v
Taiwan v
U.K. v
Bangladesh v
China v
Japan v
Nepal v
Singapore v
Tanzania v
Zimbabwe v
Belgium, v
Egypt v
Kenya v
Netherlands v
Spain v
Thailand v
Brazil v
Hong Kong v
Malaysia v
Philippines v
Sri Lanka v UAE |
DIRECTORS
|
Name : |
Mr. P. K. Taneja |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
05.02.1957 |
|
Qualification : |
B. E. (Electronic & Communications), I.A.S. |
|
Experience : |
17 Years |
|
Date of Appointment : |
31.12.2001 |
|
Other
Directorships |
v
Gujarat
State Electricity Corporation Limited v Gujarat Energy Transmission Corporation
Limited v Gujarat Alumina and Bauxite Limited v
Gujarat
Industries Power Company Limited |
|
|
|
|
Name : |
Mr. S. G. Mankad |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Manjula Subramaniam |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Guruprasad Mohapatra |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. M. M. Shrivastava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. C. Murmu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. M. Yadwadkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. P. Singh |
|
Designation : |
Director (Nominee Director of
IDBI Limited.) |
|
|
|
|
Name : |
Mr. Sukh Dev |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H. N. Sinor |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
V. L. Vyas |
|
Designation : |
Company
Secretary |
MAJOR SHAREHOLDERS
(As on
30.09.2008)
|
Category of shareholder |
No of Shares |
Percentage |
|
Shareholding of Promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Central Government/ State Government |
21 |
0.00 |
|
Bodies Corporate |
7332480 |
9.98 |
|
Financial Institutions |
19632466 |
26.73 |
|
Total |
26964967 |
36.71 |
|
|
|
|
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds / Axis |
5869898 |
7.99 |
|
Financial Institutions / Banks |
157978 |
0.22 |
|
Insurance Companies |
9222621 |
12.57 |
|
Foreign Institutional Investors |
5143675 |
7 |
|
Any Other |
2597 |
0.00 |
|
Total |
20396769 |
27.78 |
|
|
|
|
|
Non-Institutions |
|
|
|
Bodies Corporate |
8418523 |
11.46 |
|
Individuals |
|
|
|
i. Individuals shareholders holding nominal share
capital upto Rs. 0.100 million |
13985857 |
19.04 |
|
Ii. Individual shareholders holding nominal
share capital in excess of Rs. 0.100 million |
3353444 |
4.57 |
|
Any other (specify) |
307163 |
0.42 |
|
Co-op Societies |
6905 |
0.02 |
|
Trusts |
2200 |
0.00 |
|
Total |
26074092 |
35.51 |
|
|
|
|
|
GRAND TOTAL |
73436928 |
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. |
||||||||||||||
|
|
|
||||||||||||||
|
Products : |
|
||||||||||||||
|
|
|
||||||||||||||
|
Exports: |
|
||||||||||||||
|
Countries : |
v USA v Europe v Australia v Africa v Far
& Middle East Countries v China
v
South Asian |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
vadodara
complex
|
|
|
|
|
Caustic Soda Lye & Caustic Potash Lye |
MT |
370000 |
313550 |
|
Caustic Soda Flakes / Prills and Caustic Potash Flakes |
MT |
69500 |
168500 |
|
Chlorine Gas |
MT |
327440 |
273585 |
|
Liquid Chlorine |
MT |
-- |
222000 |
|
Hydrochloric Acid (100 %) |
MT |
130350 |
95300 |
|
Hydrogen Gas (Compressed) |
MT |
1037.80 |
31.060 |
|
Cyanide Salt |
MT |
3000 |
3000 |
|
Chloromethanes |
MT |
29700 |
24750 |
|
Sodium Ferrocyanide |
MT |
100 |
100 |
|
Sodium Hypochlorite (100 %) |
MT |
12500 |
4500 |
|
Potassium Carbonate |
MT |
15000 |
13200 |
|
Hydrogen Peroxide (100 %) |
MT |
11000 |
12540 |
|
Aluminium Chloride |
MT |
-- |
-- |
|
Power Plant |
MW |
90.00 |
113.20 |
|
Calcium Chioride Flakes |
MT |
16500 |
16500 |
|
Phosphoric Acid (85%) |
MT |
26730 |
26730 |
GENERAL INFORMATION
|
No. of Employees : |
839 |
||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
v State Bank of India, Vadodara, Gujarat,
India v Central Bank of India, Vadodara, Gujarat v HDFC Bank Limited v
Axis
Bank Limited v
Industrial
Development Bank v
Bank
of India Limited v
UCO
Bank v
Indian
Bank |
||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Note: 1) Term Loan from Financial
Institutions / Banks : The Term Loans from IDBI Limited are secured by first interest
pari passu charge/equitable mortgage and hypothecation charge over all
movable and immovable assets of the Company, both present and future and
second charge created/ to be created in favour of banks on stocks and book
debts for securing working capital facilities. 2)
Working Capital Facilities : The fund based and non-fund based working capital
arrangements with the consortium of State Bank of India, Central Bank of
India, HDFC Bank Limited AXIS Bank Limited UCO Bank, Indian Bank and IDBI
Bank Limited including Export Packing Credit are secured by first charge by
hypothecation of stocks and book debts and second charge over the immovable
assets of the Company. 3)
Lease Finance : The Company had entered into finance lease arrangements
with M/s. SBI Capital Markets Limited (SBICAP) (Lessor) for the leased assets
viz. Waste Heat Recovery System – I, DCS System and Chlorine Tonners for the
total amount of Rs.349.300 Millions. The Company entered into an arrangement for secondary
period of leasing agreement with SBICAP for the period from 01.04.2005 to
31.03.2008 and the outstanding lease finance of SBICAP is Rs.0.050 Million.
|
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Messrs
Prakash Chandra Jain and Company Chartered
Accountants Address:
Vadodara Solicitors Messrs
Amarchand and Mangaldas Suresh
A. Shroff and Company Address:
Mumbai Cost Auditors Messrs
Diwanji and Associates Cost
Accountants Vadodara |
|
|
|
|
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 |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1000.000 millions |
|
5000000 |
Redeemable cumulative preference shares |
Rs. 100/- each |
Rs. 500.000 millions |
|
|
|
|
|
|
|
Total |
|
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 |
|
|
Amount paid – up on forfeited shares |
|
Rs.0.015 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 734.384 Millions |
Note:
Of the above Equity
Shares:
[A] 1500000 Shares have been allotted on part
conversion of 13.5% Convertible Debentures.
[B] 3275008 Shares have been issued as Bonus Shares
by Capitalisation of Share Premium Rs.15.000 Millions and General Reserve
Rs.17.750 Milliones.
[C] 18106509 Shares issued on Right basis.
[D] 8669656 Shares allotted on part conversion of
12% PCD issued on Right basis.
[E] 2947 Equity Shares forfeited in the year
1996-97, out of Shares issued on Right basis.
[F] 8405050 Shares allotted on conversion of 14%
Fully Convertible Debentures.
[G] 27532992 Right Issue equity shares of Rs.10/-
each allotted on 7th April, 2004.
[H] 660 Right Issue equity shares of Rs.10/- each
allotted on 1st October, 2005.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
734.384 |
734.384 |
734.384 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10049.901 |
8150.384 |
6496.350 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10784.285 |
8884.768 |
7230.734 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1649.524 |
2249.797 |
3718.275 |
|
|
2] Unsecured Loans |
1505.172 |
1756.465 |
1007.758 |
|
|
TOTAL BORROWING |
3154.696 |
4006.262 |
4726.033 |
|
|
DEFERRED TAX LIABILITIES |
2392.850 |
2214.088 |
2133.204 |
|
|
|
|
|
|
|
|
TOTAL |
16331.831 |
15105.118 |
14089.971 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
12384.768 |
10299.967 |
8716.094 |
|
|
Capital work-in-progress |
253.253 |
1033.080 |
1917.305 |
|
|
|
|
|
|
|
|
INVESTMENT |
1205.086 |
1223.151 |
1224.891 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1047.223
|
954.936
|
754.086
|
|
|
Sundry Debtors |
1939.132
|
1707.272
|
1606.127
|
|
|
Cash & Bank Balances |
544.756
|
354.518
|
259.745
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2708.159
|
2352.927
|
1782.715
|
|
Total Current Assets |
6239.270
|
5369.653 |
4402.673
|
|
|
Less
: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities & Provisions |
4144.003
|
3113.527
|
2367.787 |
|
|
|
0.000
|
0.000
|
0.000 |
|
Total Current Liabilities |
4144.003
|
3113.527 |
2367.787
|
|
|
Net Current Assets |
2095.267
|
2256.126 |
2034.886
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
393.457 |
292.794 |
196.795 |
|
|
|
|
|
|
|
|
TOTAL |
16331.831 |
15105.118 |
14089.971 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
11336.304 |
10448.351 |
11269.834 |
|
|
Other Income |
24.836 |
405.132 |
0.000 |
|
|
Total
Income |
12033.772 |
10853.483 |
11269.834 |
|
|
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
2755.114 |
2734.940 |
2946.700 |
|
|
Provision for
Taxation |
514.257 |
869.384 |
967.000 |
|
|
Profit/(Loss)
After Tax |
2240.857 |
1865.556 |
1979.700 |
|
|
|
|
|
|
|
|
Export Value |
449.004 |
316.508 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
3143.163 |
2531.128 |
|
|
|
Excise Duty |
1.249 |
(2.013) |
|
|
|
Administrative Expenses |
447.580 |
406.652 |
|
|
|
Raw Material Consumed |
3606.688 |
3258.189 |
|
|
|
Managerial Remuneration |
871.516 |
687.857 |
8323.134 |
|
|
Interest |
253.252 |
377.300 |
|
|
|
Depreciation & Amortization |
989.565 |
873.240 |
|
|
|
Increase/(Decrease) in Finished Goods |
(34.355) |
(13.810) |
|
|
|
Other Expenditure |
0.000 |
0.000 |
|
|
Total Expenditure |
9278.658 |
8118.543 |
8323.134 |
|
QUARTERLY
|
PARTICULARS |
|
30.06.2008 (1st Quarter) |
30.09.2008 (2nd Quarter) |
|
Sales Turnover |
|
3439.700 |
3847.400 |
|
Other Income |
|
75.300 |
147.400 |
|
Total Income |
|
3515.000 |
3994.800 |
|
Total Expenditure |
|
2475.100 |
2542.200 |
|
Operating Profit |
|
1039.900 |
1452.600 |
|
Interest |
|
65.500 |
57.600 |
|
Gross Profit |
|
974.400 |
1395.000 |
|
Depreciation |
|
264.400 |
271.400 |
|
Tax |
|
60.600 |
285.800 |
|
Reported PAT |
|
544.600 |
837.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.36 |
0.54 |
0.80 |
|
Long Term Debt
Equity Ratio |
0.13 |
0.29 |
0.61 |
|
Current Ratio |
0.71 |
0.71 |
0.82 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.77 |
0.83 |
0.80 |
|
Inventory |
16.01 |
17.56 |
18.84 |
|
Debtors |
8.79 |
9.06 |
7.34 |
|
Interest Cover Ratio |
11.64 |
8.09 |
8.27 |
|
Operating Profit
Margin (%) |
24.98 |
26.61 |
31.28 |
|
Profit Before
Interest and Tax Margin (%) |
18.81 |
20.80 |
25.35 |
|
Cash Profit
Margin (%) |
20.16 |
18.25 |
20.90 |
|
Adjusted Net
Profit Margin (%) |
13.98 |
12.43 |
14.97 |
|
Return on Capital
Employed (%) |
23.06 |
25.63 |
30.06 |
|
Return on Net Worth (%) |
22.79 |
23.15 |
31.30 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject promoted by the Gujarat Industrial Investment Corporation
(GIIC)(A Gujarat State PSU) is the largest manufacturer of Caustic Soda and
Chlorine in the country. Company incorporated in May '73 is also into
manufacture of other basic chemicals like sodium cyanide, chloromethane,
hydrochloric acid, hydrogen gas, caustic potash and potassium carbonate. The
company is a multi-product manufacture which manufactures 23 products.
In 1994, considering the power-intensive nature of the caustic soda industry,
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 has assured company of a supply upto
26 MW at a lower cost. In May '95, company offered PCDs on a rights basis for
three projects -- phosphoric acid (technical grade), hydrogen peroxide and
caustic soda prills.
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
1995-96, 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 & 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 is now operating at
more than 100% capacity.
In January 2004 the company has made rights issue to its shareholders in the
ratio of 3:5. During 2004-05 the company has increased the installed capacity
of Cyanide Salt at Vadodara Complex by 1000 MT and with this expansion the
total installed capacity of Cyanide Salt has increased to 3000 MT. Further the
company has installed a new capacity of Calcium Chloride Flakes (72%) at Dahej
Complex with a capacity of 16500 MT.
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 detailed report on Corporate Governance along with Certificate dated 24th
April, 2008 issued by the Practicing Company Secretary in terms of Clause-49 of
the Listing Agreement with Stock Exchanges is given in this 35th Annual Report
2007-08.
The Company is ranked among the top 25 listed Companies in respect of
excellence in Corporate Governance by The Institute of Company Secretaries of India
for last three consecutive years.
MANAGEMENT DISCUSSION AND ANALYSIS
INTRODUCTION:
Subject was established in 1973 and over a period of time, the Company has
emerged as to the largest producer of Caustic Soda in India with present
installed production capacity of 412550 MT of Caustic Soda Lye/Caustic Potash
as on 31st March, 2008 and enjoys the economies of scale. The Company has about
18% market-share in the domestic chlor-alkali industry.
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. During the last three and half decade, the Company
has expanded its operation beyond predominant business of Chlor-Alkali Sector
and diversified into several higher end products.
The Company ventured into the manufacture of other basic chemicals like Sodium
Cyanide, Sodium Ferrocyanide, Chloromethanes, Hydrochloric Acid, , Potassium
Carbonate, Phosphoric Acid (85%) and Hydrogen Peroxide. The Company through its
products is associated with various industries viz. Textiles, Pulp & Paper,
Soaps & Detergents, Alumina, Water Treatment, Petroleum, Fertilizers
Pharmaceuticals, Agrochemicals, Dyes & Dyes Intermediates, etc. 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 and South Asian Markets.
After 1976, when the Company commenced its operations, through diversification,
forward and backward integration has emerged as a multi-product Company
manufacturing twenty six products.
Power being the costly and basic raw material, the Company is aiming towards
achieving self reliance to meet its power requirements to maintain its
sustained cost effective performance in the long run.
AN
OVERVIEW OF INDIAN ECONOMY:
There has been continued impressive growth of the Indian economy in 2007-08 with
strong macroeconomic fundamentals and the GDP growth rate of 9%. Though it is
marginally lower than the GDP growth rate of 9.6% in 2006-07, it is quite
satisfactory in the context of deterioration in the global macro economic
environment. The services sector and the industrial sector growth, particularly
in manufacturing have boosted the growth. The rise in investment and domestic
consumption has continued for last several years. Information technology (IT)
and IT-enabled services and infrastructure development have also played an
important role in such growth.
Though the growth of agriculture at 4.5% during 2007-08 is an improvement over
2.7% in 2006-07, it continues to be a cause of concern.
The inflation rate in 2007-08 has been on a general upward trend and the
average inflation reached 7.4% in March, 2008. The major contributor to the
higher rate of inflation has been food items and petro-products. The rates of
interest on all types of loans have also gone up significantly.
With the improvement in the industrial demand and up-trend in the commodity
cycle during 2007-08, demand for the Company's products has remained fairly
good. The Company has been able to consistently achieve over 100% capacity
utilization of most of its plants.
FINANCIAL PERFORMANCE:
The Company has achieved the highest ever production, sales and profit after
Tax in its history, despite tough competition, in view of the Company's
progressive and forward looking policies on all fronts.
The Sales turnover (including Excise duty) stood at Rs.13223.900 Millions, an
increase of about 9% over Rs.12151.100 Millions of the previous year.
The other income, for the year was Rs.697.500 Millions, as against Rs.405.100
Millions of the previous year. It includes Rs.156.300 Millions being VAT
Collected and allowed as remission, Rs.164.000 Millions compensation for CTC
Phase out under Montreal Protocol and Rs.165.700 Millions received against
monetisation of Certified Emission Reduction under Kyoto Protocol for Clean
Development Mechanism (Carbon Credit).
The interest expenses and financial charges in F.Y. 2007-08 could be brought
down by 32.89% to Rs. 253.200 Millions from Rs. 377.300 Millions of the
F.Y.2006-07. Cash Profit during the year has increased to about Rs. 3735.200 Millions
as against Rs. 3610.700 Millions that of 2006-07. Profit after Tax for the year
has increased by 20.11 % to Rs. 2240.800 Millions from Rs.1865.600 Millions of
the previous year.
The company has been able to achieve higher operational efficiency of all the
plants by exercising adequate cost control measures. The Earnings per Share has
improved by Rs. 5.11 at the end of FY 2007-08 as compared to end of previous
year. Book value of Share has increased by Rs. 24/- per share i.e. from
Rs.117/- as on 31.03.2007 to Rs.141/- as on 31.03.2008.
The Company has further reduced its total debts during the year under review by
Rs.851.600 Millions. This has helped to improve the Debt: Equity ratio to 0.16
: 1 as on 31.03.2008, as compared to 0.26 : 1 as on 31.03.2007. The Interest
Coverage ratio is improved to 15.75 times as on 31.03.2008, as compared to
about 10.57 times as on 31.03.2007. The Company continues to improve its
performance year after year and the efforts to further improve the performance
are continuing.
There has been increase in expenditure on account of increase in the cost of
the Raw Materials, (including transport cost) electricity charges,
manufacturing and operating costs, manpower cost (as a result of mandatory
provision for 'Employee Benefits' under AS-15 (Revised) and increase in number
of employees) administration, general and marketing expenses, Mark to Market'
net losses pursuant to the announcement of AS-30 'Accounting for Derivatives'
issued in March, 2008.
OPERATIONS:
The Directors are pleased to inform that during the year
under review, the Company has achieved highest ever record production of
Caustic
Soda Lye, Caustic Potash Flakes, Chloromethanes, Phosphoric Acid (85%),
Hydrogen Peroxide (100%) and Aluminum Chloride, breaking all past -figures are
given in the 'Quantitative data ten year', attached and forming part of this
report.
The Directors are also happy to inform about the following
landmark achievements during the year:
1. Successful commissioning of new 38 TPD Hydrogen Peroxide Plant at
Dahej in July, 2007;
2. Successful commissioning of Anhydrous Aluminum Chloride Plant at
Dahej in November, 2007;
3. Successful commissioning of additional 100 TPD Caustic
Soda Flaking Plant at Dahej in December, 2007; and
4. Completion of CTC phase out project.
The year, production of Potassium Carbonate was curtailed to 9,925 MT compared
to 11,046 MT in the previous year resulting in to excess supply position in the
domestic market due to higher imports.
The power generation has reduced to about 704 million units in 200708 from 737
million units in 2006-2007, a decrease of over 4% due to reduced availability
of natural gas from GAIL.
RESEARCH
AND DEVELOPMENT:
The Company has a full fledged R & D Centre, which is recognised by the
Department of Science & Technology, Government of India. Their R&D
efforts are directed on the specific areas strategically linked with the need
of the market. The work is being pursued on the development of new products
& processes, import substitutes, process improvement, cost reduction,
cooling water treatment chemicals, formulations, effluent treatment &
effluent control, developmental work on the existing products for improving the
quality & marketability and to facilitate the absorption of new
technologies.
The efforts for standardization of the catalytic process for converting Carbon
Tetrachloride into Chloroform have been successful.
The Pilot plant studies have also been successfully completed to develop substitute
for imported alcohol used in the Phosphoric Acid plant. The studies were also
carried out to develop substitute for other imported raw materials used in
different plants.
The R & D centre is working to develop the laboratory
scale processes for Dicalcium Phosphate - Dentifrice Grade, Sodium Perborate
& Sodium Percarbonate.
The R & D Centre also provides tactical support to Operations and Marketing
by way of carrying out the developmental work on Poly Aluminum Chloride,
Cooling Water treatment including the monitoring of corrosion and
microbiological growth in the cooling water systems of all the plants,
production and supply of specialized formulations for in-house consumption,
specialized analyses of plant samples and studies on the technical aspects of
different plants.
EXPANSION
AND DIVERSIFICATION:
38 TPD Hydrogen Peroxide Plant at Dahej
The 12540 TPA Hydrogen Peroxide Plant at Dahej has been successfully
commissioned in June, 2007 and Commercial Production started in July, 2007. This
unit will add value to the Hydrogen available from the Caustic Soda
Plant.
Anhydrous
Aluminum Chloride Plant at Dahej:
To create a captive consumption of Chlorine at Dahej, the Company has
successfully commissioned 50 TPD Anhydrous Aluminum Chloride Plant and
commercial production started in March, 2008.
100 TPD Caustic Flaking Plants at
Dahej:
The Company has successfully commissioned additional 100 TPD Caustic Soda
Flaking Plant at Dahej and commercial production started in January,
2008.
Wind Energy Farm at Kutchh:
As a step towards their commitment to achieve self sufficiency in energy
requirements, the Company has successfully set up 23.75 MW Wind Energy Farm in
Kutchh, during the year.
DOW-GACL Joint Venture:
On 16th April, 2008, the Company signed a Joint Venture Agreement with DOW
Europe GmbH for setting up a 2,00,000 TPA Chloromethanes Plant at Dahej at an
estimated Cost of Rs.6000.000 Millions with 50-50 Equity partnership . A Joint
Venture Company with Dow-GACL SoIVenture Limited has been incorporated on 15th
July, 2008 in Gujarat. The Company is expected to start its manufacturing
operations by 2011.
OTHER PROJECTS:
During the current Financial Year 2008-09, the Company plans to commission
Sulphate Removal System, additional 100 TPD Flaker Unit, additional 39 MW Wind
Power Project in Kutchh etc. to further improve upon both the top and the
bottom lines of the Company.
The Company has also announced its plans for expansion of Caustic Soda Plant by
50 TPD through Debottlenecking of existing Caustic Soda Plant at Dahej, 90 MW
Captive Power Project, 600 TPD Caustic Soda Project, Hydrazine Project,
Hydrogen Peroxide, Polyols Project.
STRENGTHS, OPPORTUNITIES & THREATS AND RISKS & CONCERNS:
The Company are economies of scale, State of the Art eco-friendly technologies,
economical and uninterrupted power from GIPCL at Vadodara and Captive
co-generation plant at Dahej, Integrated down stream plants, strong network for
Marketing and Distribution, In-house Research and Development facilities,
Proximity to Raw material source and markets etc.
The Company has grown rapidly and sustained its performance. The Company has
adopted its strategy to concentrate both on top and bottom lines. The
contributing factors to company's success are optimizing of operations, better
marketing, close monitoring and control of financial cost, increase in
efficiency of plant, timely and successful completion of expansion
projects/manufacturing of new products etc. The manpower of the Company with
high morale and motivation always endeavours to bring better results. Keeping
in view, the current trends of Indian and global economy, the time ahead may
prop-up newer hurdles, To overcome such hurdles, the Company has planned new projects
involving investments of about Rs.25000.000 Millions over next 3 to 4 years, to
diversify, add new products, enlarge portfolio and expand its existing
capacities. It will also enable to consolidate and maintain their leadership in
Chlor-Alkali and other integrated downstream products. Their continuous efforts
to upgrade the technology has enabled to optimize the cost of production and
increasing revenues. The commitment to deliver quality products to the
customers has ensured that its products are well accepted, both in India and
world over. The customers are assured of prompt delivery of quality products
through its well-established network of dealers and consignment
stockiest.
The Company is operating in a competitive market both in domestic and
international sector. However, the increasing cost of gas and power,
rock-phosphate and Potassium Chloride etc. are the areas of concern. The
Company has commissioned a 23.75 MW Wind Energy Farm and is further putting up
additional 39 MW Wind Energy Farm in Kutchh, Gujarat to augment its power
requirement. Some of their competitors also have locational advantages. In the
international market, the Company competes with manufacturers in China and
Middle East, who have their own typical advantages. Domestically, the Import of
several items is becoming cheaper with reduction in custom duty. However, the
recent weakening of Rupee against US $ has adversely impacted the
imports.
Alkali products have to face competition from imports with reduction in custom
duty. To protect from unfair competition for products like Caustic Soda
Lye/Flakes and Potassium Carbonate, the Indian manufacturers had approached the
Designated Authority to impose Anti-dumping duty against such imports and
Anti-dumping duty has been imposed on imports of these products from various
countries.
The Company also produces Carbon Tetrachloride (CTC) at Vadodara Plant. The
product comes under Ozone Depletion Substance (ODS) Rules (2000) as per the
guidelines of Montreal Protocol framed by Government of India. Under these
Rules, CTC for non-feed stock application is to be phased out by 2010, however,
production of CTC for feed stock application shall continue. The Company has
taken adequate steps to meet the said guidelines.
Key inputs required for power plant and Vadodara Plant for process and steam
generation is NG/RLNG. The Government of India has appointed the Tariff
Commission to fix the price of NG/RLNG. The Company has entered into contracts
for supply of NG/RLNG with M/s. GAIL and GSPC. M/s. GAIL has substantially and
unilaterally raised the price of RLG, which has increased the cost of their
power generation.
All Chemical products generally pass through cyclic phase. While some products
are in short supply, some others do not move satisfactorily. Owing to
availability of 26 products in its basket, the Company continuously endeavours
to leverage products in short supplies against slow moving products.
The Company's products / product groups namely Phosphoric Acid and Potassium
group (Potassium Hydroxide, Potassium Flakes, and Potassium Carbonate- K2C03)
are under threat of rise in raw material prices due to its scarcity in the
global market. The Company has only single channel procurements for the raw
materials for the above finished goods, namely Rock Phosphate from Jordan and
Potassium Chloride from Canada. Efforts are on to search for other suppliers of
these materials of technical suitability for the designed plant at present,
through domestic dealers/ foreign suppliers.
INDIAN CHLOR-ALKALI INDUSTRY SECNARIO AT
A GLANCE:
The Indian Chlor-Alkali industry is over six decades old. There are 34
Chlor-Alkali Units in India. The products from the industry are the basic raw
materials for other industries like Alumina, Paper & Pulp, Soaps &
Detergents, Pharmaceuticals, Dyes, Pesticides and water treatment. After seeing
the marginal growth till mid 70s the industry is on the path of speedy growth,
fuelled with growth across all major consuming segments primarily Alumina, Pulp
& Paper, Textile, Soap & Detergents, Pharma etc. The installed capacity
of Caustic Soda in India has grown to over 29 Lac MTA as of 31st March, 2008
from over 26 Lac MTA in 2006-07 i.e. an increase of about 12% over the previous
year.
However, the actual production of Caustic Soda in the Country during 2007-08
has been 21.60 lac MT only.
The capacity utilization of the industry this year has increased to 82% from
76.2% of last year, with the increase in domestic demand.
The Company continues to be the leader in Caustic - Chlorine with higher
capacity utilization of its Caustic Soda plant at 101 % compared to the
industry's average of 82%.
The Company enjoys the benefit of reliable power supply due to captive
co-generation power plant at Dahej and its strategic participation in
GIPCL.
MARKETING STRATEGY
The Company presently markets twenty six chemicals. Most of the plants of the
Company are integrated in such a way that part of finished product of one plant
is consumed input for the other plant. The Company enjoys advantages of its
integration philosophy to improve its competitive edge.
As a part of forward integration, the Company has commissioned Anhydrous
Aluminum Chloride plant at Dahej, which will help value addition for
Hydrochloric Acid. The Company has also entered into contract for manufacturing
of Chlorinated Paraffin Wax (CPW) for value addition to liquid chlorine.
Gujarat and its adjoining State Maharashtra are predominantly industrial
states, with high concentration of big business units in Chemicals,
Petrochemicals, Plastics, Textiles and Fertilizers. Due to the hazardous nature
of some of the products consumed by these units coupled with their location in
Gujarat, the Company is enjoying logistical advantage of ensuring efficient
supplies and more effective service to customers based in these two states, in
comparison to other manufacturers.
Lower transportation cost due to their proximity to the markets and basic
inputs, consistent and reliable power supply has given a competitive advantage
to over other manufacturers in the industry.
As a part of market development, the emphasis on regular intervention with
customers and develop new market potential for the products. After sales
service is also provided to the consumers which helps us to increase their
customer base and sales volume especially for new products.
AWARDS:
The company has received following various prestigious awards during the
year
1. 'Runners up' trophy for Good House Keeping in Chemical Process Industries
Category and winner of Rotating Trophy for the year 2006-2007 by Baroda
Productivity Council on 26th May, 2007.
2. 3rd National Award for Excellence in Cost Management-2006 for manufacturing
unit in the category of Public sector by Institute of Cost & Works
Accountants of India (ICWAI), by the Hon'ble Minister for Corporate Affairs,
Govt. of India, Shri Prem Chand Gupta, on 2nd July, 2007.
3. National Energy Conservation Award 2007 at National Level
(Chlor-Alkali Sector) 2nd prize (Dahej unit) by the Hon'ble President of India,
Smt. Pratibha Devisingh Patil on 14th December, 2007.
4. Amity Corporate Excellence Award by Amity International Business
School received on 20th February, 2008.
5. ICSI has recognized the Company's Corporate Governance practices and
the Company is ranked amongst the top 25 Companies for the third consecutive
year.
ENERGY SAVING:
One of the pioneers to adapt the energy efficient and eco friendly membrane cell technology and windmill farms to encourage use to alternative sources of energy are gli9mpse of GACL’s inseparable energy conservation endeavors. They believe in embracing innovation technologies to conserve energy.
ENVIRONMENT
PROTECTION:
One of the greenest industrial belts inhabited with over
100000saplings, family of ducks and artificial water body to promote rainwater
harvesting just reflects the thought that for GACL environment protection
begins at home.
NOTE ON ACCOUNTS:
|
Contingent Liabilities |
31.03.2008 (Rs. In
Millions) |
|
|
|
|
The Company has given corporate guarantees
aggregating to Rs.73.209 Millions to Housing Development Finance Corporation
Limited (HDFC) for housing loans extended to employees. Total loans outstanding
under the arrangement, are: |
21.478 |
|
|
|
|
Estimated amount of contracts on Capital
Account remaining to be executed and not provided for are : |
238.915 |
|
|
|
|
Claims from various parties disputed but not acknowledged as debt : |
571.231 |
|
|
|
|
Guarantees given by the Company’s bankers for various purposes are : |
155.191 |
|
|
|
|
Disputed Purchase tax liability (Net of provision made) |
643.701 |
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
FIXED ASSETS:
- Freehold land
- Leasehold land
- Buildings
- Roads & Culverts
- Plant & Machinery
- Furniture
- Fixtures & equipments
- Vehicles
WEBSITE DETAILS:
MANAGING
DIRECTOR
Company is a forward-looking company, set up in the year 1973.
30 years is a long time. Long enough to test the character of any organization.
Be it recession, inflation, increased competition or changing governments, they
have lived it all. And for sure, all the turbulences have made company a
stronger and a progressive company. Their stern resolve to manufacture quality
chemicals and trek customer satisfaction to a new height has yielded
unbelievable results.
From an initial capacity of 37,425 TPA Caustic Soda, they
have grown to be the largest producer in India, with a capacity of 3,58,760
TPA. Spread over 2 complexes at Vadodara and Dahej.
Knowing that the time ahead may prop-up newer hurdles,
company has already started to diversify and expand its existing infrastructure
to consolidate it's supremacy in Chlor-Alkali and other integrated downstream
products.
WORLD
CLASS TECHNOLOGY
Technology moulds generations. The endeavor to continually
upgrade technology has allowed to optimize resources, thus bringing down the
cost of production and increasing revenues. Acquired through the best and
prestigious collaborations means that they meet international specifications
for their products. Besides, The manufacturing plants are eco-friendly, which
ensure that the environment is well looked after.
The location of both the plants 'Vadodara' and 'Dahej' has dual advantage of
proximity to the raw material suppliers and the end users.
While the capacity utilization is about 70% in the Caustic Soda Industry,
GACL's plants are working at almost 100% capacity.... thereby utilizing the
assets to the fullest extent.
Company has adopted to the age of information technology for fast and
uninterruptible information exchange. Both plants of Vadodara and Dahej are
connected by VSAT and lease lines. This provides on-line information at any
given point of time.
SELF-RELIANCE
Various factors that influence the success of any corporation, the
self-sufficiency ranks the foremost. Power, being a major input to the
electrolytic Caustic Soda process, we promoted a joint captive power plant,
Gujarat Industries Power Company Limited to meet our energy requirements for
Vadodara Complex. The complex at Dahej is also integrated with a captive
co-generation plant of capacity of 90 MW.
Cost effective natural gas was substituted as fuel in place of Naphtha for
Captive Power Plant. The plant load factor has increased and surplus power is
supplied to State grid. This has helped achieve economies of operations.
GREEN ALL THE WAY
Nature bestows human race with umpteen benefits. Clean air, Lush green trees,
company’s commitment towards the environment is undying. Safe and unadulterated
nature is high on our list of priorities, they are an organization with Green
Attitude.
A dedicated senior executive heads a Safety and Environment Department to
maintain high standards of safety and a harmonious relationship between
environment and technology.
The company has planted more than 1,00,000 plants and it keeps maintaining the
same. With tree plantation being a regular feature, it plants 1000 sapling
every year.
Rainwater harvesting and collection is a part of routine activity at company.
This water is then utilized for the maintenance of green belts.
The vermiculture concept has been implemented in the premises to convert waste
generated by the canteen, gardens and plants to vermicompost.
Company has been a pioneer in adopting the environment friendly and energy
efficient technologies. It converted to Membrane Cell Technology from Mercury
Cell Technology way back in 1989 and since 1994 all the plants are running on
Mercury free Membrane Cell Technology.
Company has secured dedicated landfill site conforming to
the hazardous Waste Management Act. Being a member of Effluent Channel Project,
it releases it's liquid effluent in this channel and adheres to the necessary
parameters of the Gujarat Pollution Control Board before discharging it into
the channel.
People: The Valued Assets
World-class technology and self-reliance are baseless without brains that work
ardently to produce high quality chemicals. People are their real assets, whom
they nurture and harness to get the very best out of them.
CONVICTION IS:
People make the organization.
A sense of belonging is a must for dedication
and loyalty.
Employees give their best when the company
cares for them.
Ethical and transparent operations have contributed to a very great extent in
bringing a turnaround at company.
Excellent labour relationship helped the company in achieving very high
manpower production turnover per employee per annum. This is also a result of a
thin and lean workforce, which is lead by the professional management.
THE ZEST TO INVENT
The mercurial nature of the chemical industry demands continuous invention and
innovation. They have a well-equipped R & D centre, recognized by the
department of Science and Technology, Government of India, working on new and
safer processes/ technologies, value added products and import substitutes.
They are the proud recipients of national awards for :
v Excellence
in research and development from the department of Science and Technology,
Government of India.
v Pollution
Control and Environment Protection from Chemtech Foundation for developing a
process for manufacturing Sodium Ferrocyanide from the waste stream Sodium
Cyanide process.
v Novel
energy conservation and integration programme in chemical plant from the Indian
Chemical Manufacturers Association.
v Company
is a pround recipient of "National Energy Conservation Award" by
Bureau of Energy Efficiency (BEE), Ministry of Power, Govt. of India for three
consecutive years since 2004.
COMPANY
PROFILE:
Subject was incorporated on 29th March, 1973 in the State of Gujarat by Gujarat
Industrial Investment Corporation Limited (GIIC), a wholly owned company of
Government of Gujarat, as a Core Promoter.
Company has two units located at Vadodara and Dahej , both in the State of
Gujarat. It has integrated manufacturing facilities for Caustic Soda, Chlorine,
Hydrogen Gas, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Phosphoric
Acid, Potassium Hydroxide, Potassium Carbonate, Sodium Cyanide, Sodium
Ferrocyanide. The Dahej unit also has 90 MW Captive Power Plant (CPP) for
regular and economical power supply.
The
Company commenced its operations in 1976 with 37,425 MTPA Caustic Soda Plant
based on the then, state-of-the-art Mercury Cell process at its Plant which is
situated 16 km North of Vadodara near Village Ranoli on the main Railway track
route between Ahmedabad and Mumbai.
Right from the inception, company has been following the strategy of continuous
capacity expansion in core areas. The first stage expansion of the Caustic Soda
Plant raising the capacity to 70,425 MTPA was undertaken in October, 1981
followed by a diversification programme to produce 2000 MTPA of Sodium Cyanide
in December, 1982.
In 1984, the second stage expansion to increase the capacity
of Caustic Soda Plant to 103,425 MTPA was undertaken. Simultaneously, the
Company undertook the diversification project for manufacture of 10,560 MTPA of
Chloromethanes using Chlorine, a co-product of the Company and in 1991, the
capacity of Chloromethanes production was doubled.
As power is the major input for production of Caustic Soda and constitutes
about 65% - 70% of the cost of production, the Company alongwith other
Corporations like M/s. GSFC, Petrofils Co-operative Limited. and Gujarat
Electricity Board promoted a gas based power unit in Vadodara under the name of
Gujarat Industrial Power Company Limited (GIPCL) during the year 1985. As a
promoter of GIPCL, the Company gets low cost power, as the plant is gas based
and is depreciated.
Since production of Caustic Soda is highly power intensive, in order to reduce
power cost and to eliminate mercury pollution, the Company during the year 1989
converted one of its Cell Houses producing Caustic Soda from Mercury Cell
Technology to environment friendly Membrane Cell Technology, thereby
eliminating the use of mercury. The Capacity of Caustic Soda was also increased
to 132000 MTA.
The conversion of second Mercury Cell to Membrane Cell was carried out during
March, 1994, thereby eliminating the total use of mercury from the Complex for
production of Caustic Soda and increasing the capacity of plant along with this
conversion to 170000 MTA including Potassium Hydroxide facility.
As part of this Membrane Cell Conversion Project, a new facility for manufacture
of 16500 MTA of Potassium Hydroxide Lye based on Membrane Cell was also set up.
The Company has further set up facility for converting part of this Caustic
Potash Lye into Potassium Carbonate with a capacity of 13200 MTA.
In order to add further value to its products, the company
had set up manufacturing facility for production of 11000 MTA Hydrogen Peroxide
(100%) at Vadodara Complex during the year 1996 to utilize Hydrogen gas, which
is a co-product from Caustic Soda Process.
In 1995, as a part of diversification programme and to meet the growing demand of its products in the State of Gujarat and nearby areas, the Company had set up a plant for manufacture of Technical Grade Phosphoric Acid with capacity of 26400 MTA (85% Phosphoric Acid) at a new location at Dahej, District Bharuch. The Company also set up Membrane Cell based grass root Caustic-Chlorine Unit with a capacity of 100000 MTA at Dahej. Alongwith this, a captive 90 MW co-generation Power Plant was set up so as to ensure uninterrupted and low cost power for its captive operations.
PRESS
NOTE:
GACL
CROSSES HISTORIC PERFORMANCE ON PROFITS AND SALES
Gandhinagar,
Thursday, the 23rd October, 2008
The Board of Directors of GACL in their meeting held at
Gandhinagar on 23rd October, 2008 have approved the financial results for the
second quarter ended on 30th September, 2008.
Shri Guruprasad Mohapatra, IAS, Managing Director of the
Company stated that the Company as the largest Chlor-Alkali manufacturer in the
Country, achieved highest ever Profits and Sales in its history for the quarter
as well as half year ended on 30th September, 2008. Net Sales has gone up by
30.23% to Rs.3847.400 Millions during the quarter as against Rs.2954.300
Millions in the previous year. The half yearly Net Sales also gone up by 33.92%
to Rs.7287.100 Millions as against Rs.5441.300 Millions in the previous year.
Shri Mohapatra, further stated that the Company has achieved
total production of 3,77,696 MT during the quarter against 3,61,917 MT – an
increase of 4.36 %. During the half year, the total production achieved at
7,31,329 MT against 7,04,242 MT in the corresponding period of previous year –
an increase of 3.85 %
He, further stated that the Profit Before Tax for the second
quarter has increased by 25.26% to Rs.1123.600 Millions as against Rs.897.000
Millions in the previous year. The half yearly Profit Before Tax also increased
by 24.94% to Rs.1833.600 Millions as against Rs.1467.600 Millions in the
previous year. The Profit After Tax for the second quarter increased by 0.79%
to Rs.837.800 Millions as against Rs.831.200 Millions in the previous year. The
half yearly Profit After Tax increased to Rs.1382.400 Millions as against
Rs.1335.900 Millions in the previous year – an increase of 3.48%.
He, further stated that the Company has generated quarterly
Cash Profit of Rs.1389.400 Millions as against Rs.1135.800 Millions - a jump of
22.33%.
He also added that the financial ratios improved
significantly at the end of the second quarter as compared to the year ended on
31st March, 2008 :
i) Earning Per Share - Rs.11.41 from Rs.11.32 (Corresponding
Quarter)
ii) Debt Equity ratio - 0.06 : 1 from 0.16 : 1
iii) Interest Coverage Ratio - 20.59 times from 15.75 times
and
iv) Book value per Share - Rs.160.55 from Rs.141.49
Shri Mohapatra informed that additional 39.75 MW Wind Mills
are likely to get commissioned by end December, 2008 which would further reduce
dependence on grid power and will enable Company to reduce power cost. He
further added that the identified projects to set up as new projects for
Hydrazine and Polyols are in an advanced stage of technology tie-ups. The
capacity enhancements and de-bottlenecking in caustic soda are also
prioritised.
New Joint Venture strategies on new products line like
Phenol, Acetone, Propylene oxide and expansion in Hydrogen Peroxide are likely
to be formalised in due course.
GUJARAT
ALKALIES AND CHEMICALS LIMITED
Dow-GACL Solventure Limited, a Joint Venture Company with
M/s Dow Europe Gmbh, a global chemical leader has been formed and marching
ahead on its schedule for the 2 Lakh M.T. p.a. Chloromethanes project at Dahej.
Shir Mohapatra further emphasized that in endeavors to boost
green technology, new CDM projects continued as its priority and it is likely
that Company shall have further monetization benefits on CER’s by December,
2008.
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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
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. |
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 |
|