MIRA
INFORM REPORT
|
Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BOC INDIA LIMITED |
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Registered Office : |
Oxygen
House, P-43, Taratala Road, Kolkata –
700 088, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
20.01.1958 |
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Com. Reg. No.: |
21-008184 |
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CIN No.: [Company
Identification No.] |
U40200WB1958PTC008184 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALB05091C /
CALB05706B |
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PAN No.: [Permanent
Account No.] |
AAACB2528H |
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Legal Form : |
Public
Limited Liability company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturing
and Marketing of Air Separation Unit Gases, other Cylinder Gases and Air
Separation and Gas Plants, Associated and Cryogenic equipments. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 19000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is an old established company having satisfactory track. Directors are reported as experienced,
respectable and having satisfactory means of their own. Their trade relations
are reported as fair. Profitability
of the company is under severe pressure. Payments
are usually correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
Oxygen House, P-43, Taratala Road, Kolkata – 700 088, West Bengal, India |
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Tel. No.: |
91-33-24014708 /4710-16 / 24015172 |
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Fax No.: |
91-33-24014974/4206 / 24018471 |
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E-Mail : |
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Website : |
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Branch Offices : |
Ahmedabad Near Soni Ki Chawl,
Rakhial Road Asansol LCS Bangalore Bellary Bhiwadi Chennai Greater Noida Howrah LCS Kolkata Delhi Hyderabad Bombay Road, Sanatnagar Jamshedpur 120 Jamshedpur Jamshedpur Rourkela Mumbai Taloja Taloja Taloja T-25 Isp Site Tarapur Plot No. F-7/2, Road
‘C’ Trichy LCS Plot No.30/31/32,SIDCO
Ind. Estate Visakhapatnam 51-1-1 Nakkavanipalem |
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Plant
location : |
Ahmedabad Rakhial Road, Ahmedabad 380 023 Asansol G T Road (West), Gopalpur, Asansol 713 304, Dist. Burdwan Bangalore Plot No.1, Phase-l, Peenya Industrial Estate, Bangalore
560058 Chennai 75 Vaithanathan Street, Tondiarpet, Chennai 600 081, 21E
(NP), SIDCO Industrial Estate, Ambattur, Chennai 600 098 Faridabad 13/1 Mathura Road, Faridabad 121 003 Howrah Village: Pakuria, P.O. Lakhenpur, PS. Domjur, Howrah 711
323 Hyderabad Bombay Road, Sanat Nagar, Hyderabad 500 018 Jamshedpur Tonnage Plant (1290 tpd ), Long Tom Area, (Behind NML),
Burma Mines Jamshedpur 831 007, Tonnage Plant (225 tpd ), Near
"L" Town Gate Opposite Bari Maidan, Sakchi, Jamshedpur 831 001 Jamshedpur (contd.) Mona Road, Burma Mines, Jamshedpur 831 007 Kolkata Plant Manufacturing Works, P-41 Taratala Road, Kolkata 700
088 48/1 Diamond Harbour Road, Kolkata 700 027 Navi Mumbai Special Gases Centre, E-27 MIDC Industrial Area, Dist.
Raigad, Taloja Navi Mumbai 410208 Tonnage Plant T-8 MIDC Industrial Area, Post Bag No. 12, Dist. Raigad,
Taloja Navi Mumbai 410 208 Taloja ISP Plant T-25, MIDC Industrial Area, Dist. Raigad, Taloja, Navi Mumbai
410208 Tarapur Tonnage Plant, Plot No. F-7/2, Road C, MIDC Industrial
Area Tarapur 401 506, Dist. Thane Visakhapatnam 51-1-1 Nakkavanipalem, P.O. P and T Colony, Visakhapatnam
530 013 |
DIRECTORS
|
Name : |
Mr. Jasdish Narain Sapru |
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Designation : |
Chairman |
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Name : |
Mr. Sanjiv Lamba |
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Designation : |
Managing Director |
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Age:
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40
years |
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Qualification:
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B.
Com. (Hons.), ACA |
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Experience:
|
16
years |
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Date
of Appointment: |
15.11.1989 |
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Previous
Employment: |
Lipton
India Limited - Commercial Trainee |
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Name : |
Mr. Susim Mukul Datta |
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Designation : |
Chairman-Audit Committee |
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Name : |
Mr. John Andrew Bevan |
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Designation : |
Alternate -Peter A Hyland |
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Name : |
Mr. Robert Neil Greenfield |
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Designation : |
Director |
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Name : |
Mr. Michael Stewart Hugson |
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Designation : |
Director |
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Name : |
Mr. Jamshed Jiji Irani |
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Designation : |
Director |
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Name : |
Mr. David Neil Lindsay |
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Designation : |
Director-Industrial and Special Products |
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Name : |
Mr. Jyotin Mehta |
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Designation : |
Nominee of ICICI Bank Limited . |
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Name : |
Mr. Srikumar Menon |
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Designation : |
Finance Director |
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Age:
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52
Years |
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Qualification:
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B.
Com. (Hons), ACA |
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Experience:
|
26
Years |
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Date
of Appointment: |
Pidilite
Industries Limited – Vice President |
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Name : |
Mr. E R Raj Narayanan |
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Designation : |
Wholetime Director |
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Name : |
Pillappakkam Bahukutumbi Ramanujam |
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Designation : |
Nominee of QIC |
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Name : |
Mr. Hanuman Mai Bengani |
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Designation : |
Head - Project Engg. Divn |
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Name : |
Mr. Tarit K Bhaumik |
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Designation : |
Special Projects (upto 31 March 2005) |
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Age:
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61
years |
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Qualification:
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B. E.
(Mech) |
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Experience:
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41
years |
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Date
of Appointment: |
16.01.1989 |
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Name : |
Mr. Roy Joseph |
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Designation : |
Head - HR |
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Age:
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41
Years |
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Qualification:
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B.
Com |
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Experience:
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18
years |
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Date
of Appointment: |
04.09.2002 |
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Name : |
Mr.
David William Parr |
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Designation : |
Director
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Name : |
Mr.
Odayalur N Venkataraman |
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Designation : |
Director
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Name : |
Mr.
Homiar Sorabji Vachha |
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Designation : |
Director |
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Name : |
Mr.
Christopher John Clough |
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Designation : |
Director
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Name : |
Mr.
Colin G Isaac |
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Designation : |
Alternate
Director |
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Name : |
Mr.
Peter F Owen |
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Designation : |
Alternate
Director |
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Name : |
Mr. David
Neil Lindsay |
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Designation : |
Additional
Director and Whole Time Director |
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Name : |
Mr.
Sanjay Lamba |
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Designation : |
Additional
Director |
KEY EXECUTIVES
|
Name : |
Mr. Pawan Marda |
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Designation : |
Company
Secretary |
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Name : |
Mr. P
R Ramanujam |
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Designation : |
Nominee
(GIC) |
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Board Committee |
Audit Committee Shareholders'/Investors' Grievance Committee Remuneration Committee |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders (As on 31.03.2008) |
No. of Shares |
Percentage of
Holding |
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Shareholding of
Promoter and Promoter Group |
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Foreign |
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Bodies Corporate |
63098891 |
73.99 |
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Public
Shareholding |
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Institutions |
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Mutual Funds / UTI |
1904589 |
2.23 |
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Financial Institutions / Banks |
35654 |
0.04 |
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Central Government / State Government |
29 |
0.000 |
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Insurance Companies |
2534393 |
2.97 |
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Foreign Institutional Investors |
3442478 |
4.03 |
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Non Institutions |
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Bodies Corporate |
2752479 |
3.23 |
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Individuals – i. Individual shareholders holding nominal share capital
up to Rs. 0.100 Millions |
10139352 |
11.89 |
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ii. Individual shareholders holding nominal share
capital in excess of Rs. 0.100 Millions |
1263082 |
1.48 |
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Any other
Specify |
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Trust |
6014 |
0.01 |
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Clearing members |
107262 |
0.13 |
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Total
|
85284223 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Marketing of Air Separation Unit Gases, other Cylinder Gases and Air
Separation and Gas Plants, Associated and Cryogenic equipments. |
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Products : |
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PRODUCTION
STATUS
|
PARTICULARS |
Unit |
Installed
Capacity |
Actual
Production |
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Air Separation Gases |
1,000 Cu. Mts. |
881250 |
567083 |
|
Other Cylinder Gases |
1,000 Cu.Mts. |
9779 |
987 |
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Air Separation & Gas Plants, Associated &
Cryogenic Equipment |
Nos./ Sets |
94 |
21 |
GENERAL
INFORMATION
|
Customers : |
v
Bhabha
Atomic Research Centre v
Space
Research Centre v
Institute
of Plasma Research v
Tata
Institute of Fundamental Research v
Centre
for Advanced Technology |
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No. of Employees : |
657 |
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Bankers : |
v ABN AMRO Bank
N.V. v Citibank N.A. v Punjab National
Bank v Standard
Chartered Bank v State Bank of
India v
United Bank of India |
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Facilities : |
Notes:- · The company bankers have first charge by way of hypothecation of the stocks of raw materials and component , finished goods, work in progress, stores and spare parts and book debts as security for overdraft facility and working capital borrowings availed by the company. · Term Loan from banks are secured by way mortgage of immovable properties and hypothecation of movable properties of 1290 TPD plant at Jamshedpur, except book debts, subject to prior charge in favour of the company’s banker of the assets. · Unsecured Loans from Banks repayable within 1 years Rs. 0.465 millions (2006 - Rs. 0.759 millions). |
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Banking Relations : |
Good |
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Auditors : |
Price
Waterhouse Chartered
Accountants |
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Associates/Subsidiaries : |
v England - Boc Limited
Edwards High Vacuum International Limited v France – Cryostar - France
Sa v Singapore - Boc Gases Pte Limited v Thailand - Thai Industrial
Gases Public Company Limited v
United States of America - Boc, Inc |
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Holding Company : |
The BOC Group pic. |
CAPITAL STRUCTURE
(As on
31.12.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
86000000 |
Equity Shares |
Rs. 10/- each |
Rs.860.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
49084200 |
Equity Shares |
Rs. 10/- each |
Rs.490.842
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 (9 Months) |
31.03.2007 |
31.03.2006 |
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|
SHAREHOLDERS FUNDS |
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|
|
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|
1] Share Capital |
490.800 |
490.800 |
490.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3246.000 |
2819.700 |
2517.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3736.800 |
3310.500 |
3008.000 |
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
150.000 |
452.300 |
328.300 |
|
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2] Unsecured Loans |
2040.000 |
465.000 |
759.000 |
|
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TOTAL BORROWING |
2190.000 |
917.300 |
1087.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5926.800 |
4227.800 |
4095.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3350.700 |
3017.100 |
2903.000 |
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Capital work-in-progress |
2888.100 |
1268.500 |
206.700 |
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INVESTMENT |
150.000 |
150.000 |
290.100 |
|
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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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Inventories |
394.600
|
281.800 |
389.300 |
|
|
Sundry Debtors |
571.500
|
706.500 |
857.300 |
|
|
Cash & Bank Balances |
11.300
|
13.200 |
624.700 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
907.300
|
921.100 |
818.600 |
|
Total
Current Assets |
1884.700
|
1922.600 |
2689.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1783.300
|
1586.300 |
1684.200 |
|
|
Provisions |
563.400
|
544.100 |
310.200 |
|
Total
Current Liabilities |
2346.700
|
2130.400 |
1994.400 |
|
|
Net Current Assets |
[462.000]
|
[207.800] |
695.500 |
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
|
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TOTAL |
5926.800 |
4227.800 |
4095.300 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 (9 Months) |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
3271.900 |
4965.800 |
5609.300 |
|
|
Other Income |
134.600 |
391.800 |
640.500 |
|
|
Total Income |
3406.500 |
5357.600 |
6249.800 |
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|
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|
|
|
|
Profit/(Loss) Before Tax |
849.300 |
680.600 |
1218.700 |
|
|
Provision for Taxation |
232.700 |
234.600 |
432.400 |
|
|
Profit/(Loss) After Tax |
616.600 |
446.000 |
786.300 |
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Export Value |
36.990 |
79.707 |
33.400 |
|
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Import Value |
1077.240 |
1315.769 |
718.982 |
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Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
293.400 |
554.300 |
587.700 |
|
|
Administrative Expenses |
477.800 |
618.500 |
617.600 |
|
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Raw Material Consumed |
604.300 |
807.600 |
1597.400 |
|
|
Increase/(Decrease) in Finished Goods |
0 |
144.200 |
0 |
|
|
Salaries, Wages, Bonus, etc. |
252.200 |
326.400 |
322.100 |
|
|
Interest |
25.000 |
69.100 |
60.400 |
|
|
Power & Fuel |
361.800 |
1726.400 |
1108.700 |
|
|
Depreciation & Amortization |
241.300 |
344.100 |
248.000 |
|
|
Other Expenditure |
436.000 |
622.800 |
624.600 |
|
Total Expenditure |
2557.200 |
5213.400 |
5031.100 |
|
QUARTERLY RESULTS
|
Year |
31.03.2008 |
30.06.2008 |
|
Type
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
1311.200 |
1361.200 |
|
Other Income |
139.400 |
35.300 |
|
Total Income |
1450.600 |
1396.500 |
|
Total Expenditure |
1099.100 |
1123.900 |
|
Operating Profit |
351.500 |
272.600 |
|
Interest |
-62.800 |
-69.300 |
|
Gross Profit |
414.300 |
341.900 |
|
Depreciation |
84.500 |
85.800 |
|
Tax |
55.800 |
92.400 |
|
Reported PAT |
257.800 |
169.300 |
KEY RATIOS
|
Year |
31.12.2007 (9 Months) |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.44 |
0.32 |
0.35 |
|
Long Term Debt-Equity Ratio |
0.39 |
0.25 |
0.33 |
|
Current Ratio |
0.79 |
1.01 |
0.97 |
|
TURNOVER RATIOS |
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|
Fixed Assets |
0.70 |
0.86 |
1.03 |
|
Inventory |
12.90 |
14.80 |
18.79 |
|
Debtors |
6.83 |
6.35 |
8.63 |
|
Interest Cover Ratio |
10.18 |
7.23 |
13.44 |
|
Operating Profit Margin(%) |
15.15 |
16.99 |
18.89 |
|
Profit Before Interest And Tax Margin(%) |
7.78 |
10.06 |
14.47 |
|
Cash Profit Margin(%) |
12.27 |
12.58 |
12.95 |
|
Adjusted Net Profit Margin(%) |
4.89 |
5.65 |
8.53 |
|
Return On Capital Employed(%) |
6.71 |
12.07 |
22.66 |
|
Return On Net Worth(%) |
6.09 |
8.95 |
17.82 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject is a member of BOC Group, is the second largest
Industrial Gases Company in the world. Subject was promoted by the BOC group, UK,
as a private limited company, in the name of Indian Oxygen and Acetylene
Company, in Jan.'35. It was converted into a public limited company in Jan.'58.
The company's name, changed to IOL in 1989, was again changed to the existing
one with effect from Feb.'95.
Subject is the market leader in industrial / medical gases in India. It has
tonnage plants at Jamshedpur, Navi Mumbai and Tarapur, and smaller plants
spread over the country. It is also a major manufacturer of cryogenic and
non-cryogenic plants and vessels, as well as a dealer in health-care equipment
and accessories of international brands. In Aug.'93, subject came out with a
rights issue at a premium of Rs 20, aggregating Rs 296.7 to part-finance a
tonnage plant for simultaneous production of liquid oxygen, nitrogen and argon,
with an installed capacity of 110 tpd at Taloja, Maharashtra. The estimated
cost, as appraised by ICICI, was Rs 610 the plant went on stream in 1994.
In 1992-93, subject received the ISO 9001 accreditation for its manufacturing
facilities of cryogenic stainless steel and carbon steel pressure vessels. In
1994, it also received the ISO 9002 certification for its Tarapur unit, from
RWTUV, Germany.
A Rights Issue was made vide Letter of Offer dated 11 July
1997 to finance primarily the 1290 tonnes-per-day Jamshedpur project. The plant
at Jamshedpur was commissioned on 1 September 1998.
The company closed down its Asansol Unit in Sep.'98 and Ghatkopar Unit in
Apr.'99 in keeping with the company's policy of improving productivity and
doing away with inefficient operations.
In Feb. 2001, subject entered into a strategic alliance with Bharat Petroleum
Corporation (BPCL) for distribution of liquefied petroleum gas (LPG). The
Company's Contracts Division has successfully designed and commissioned a pilot
Helium recovery Plant at Bakreshwar in West Bengal, to extract Helium from
geo-thermal springs. The division also secured an order for three 600 cubic
metres per hour Pressure Swing Adsorbtion (PSA) Nitrogen plants from a major
customer
The 225 tonnes per day plant at Jamshedpur commenced commercial production on 1
August, 2003. Other major projects undertaken during the year 2003-2004 include
a cryogenic nitrogen generator for a large oil PSU, Tank Vapour Recovery System
for another oil and gas major and a Vacuum Pressure Swing Adsorption plant for
producing oxygen for a leading manufacturer of stainless steel.
During 2004-2005, the Project Engineering Division is at an advanced stage of
installation and commissioning of a 1260 tpd Air Seperation Unit (ASU) for a
steel major at Dolvi and is also executing the two major in-house projects for
setting up the 855 tpd and 65 tpd ASUs at Bellary and Medak respectively.
During the year, two prestigious projects viz 2x55 tpd Vaccum Pressure Swing
Adsorbtion plants for Kochi Refineries and compressed air facilities for
National Aerospace Laboratory were commissioned.
The compressed gases site rationalization programme launched as project (SIGMA)
(Strategic Intervention to Gain Market Advantage) gained momentum during the
year. A new world class compression facility was commissioned at Bangalore in
August 2004. A New liquid compression plant at Taloja Special Gases site has
been commissioned in February, 2005. The capacity of Air Seperation Gases ,
Other Cylinder Gases and Air Seperation and Gas Plants, Associated and
Cryogenic Equipment stood at 881250 000'CUM, 9779 000'CUM and 94 Nos/Sets
respectively.
Financial
Performance
Turnover for the 9 months period ended 31 December 2007 at Rs. 3271.92 million as against Rs.4965.82 million in the previous year 2006-07 recorded a decline of about 12% on an annualised basis. The operating profit during the period after depreciation and interest but before exceptional item was similarly 27% lower on an annualised basis as compared to the previous year. While the gases business achieved a growth of 9% on account of higher sales of liquid argon, liquid nitrogen and new products like refrigerants etc., the decline in total turnover during the period was mainly due to lower Project Engineering billings to the tune of Rs.55.69 million as compared to Rs.569.82 million in the previous year in connection with the sale of plant and machinery and components to Bellary Oxygen Company Private Limited . for the construction of their 855 tpd plant.
Turnover and profits during the period was further impacted as the Company's 1290 tpd plant at Jamshedpur could not be operated for a period of 23 days during the quarter ended 30 June 2007 due to a planned shutdown taken for major overhaul of the plant. Higher maintenance cost of the plant, purchase of liquid products and additional costs incurred to transport them to meet the customers' demand during the period of shutdown also eroded margins. The increase in power tariff in Maharashtra over last year, also impacted the profitability as the entire cost increase could not be passed on to the customers.
Following the shifting of operations of the erstwhile PGP plant at Sanatnagar
in Hyderabad to the site of the Company's 65 tpd plant at Medak district in the
State of Andhra Pradesh, land and buildings at Sanatnagar were disposed of
resulting in an exceptional income of Rs.609.19 million.
The residual interest in
the property retained by the Company has also been disposed of in the first
quarter of 2008.
Total Profit before Tax during the 9 months period jumped to Rs.849.36 million,
which includes profit of Rs.609.19 million from sale of land and buildings in
Hyderabad. Net Profit after tax during the 9 months period was at Rs. 778.38
million.
Industry
Developments
The gases business is capital intensive and requires large investments in manufacturing units, distribution assets and storage networks to service bulk volumes at competitive prices. The industry comprises of large captive users in steel, fertiliser and refinery sectors and a large number of merchant liquid customers primarily in metal, glass, automobile, petrochemicals and pharmaceutical sectors, besides customers for medical gases. Merchant market has continued to show growth on the back of robust growth seen in construction, automobile and healthcare sectors.
Additionally, gases applications in the electronic sector have opened new avenues of growth.
The gases industry typically follows its end use segments. Higher growth in end
use segments such as steel, petrochemicals, glass and chemicals in last year
have created significant incremental demand for gases in these sectors. This
growth is being met mainly by'Build Own Operate' (BOO) type of supply scheme
opportunities arising from the trend of captive users increasingly outsourcing
their gases requirements to the gases specialists, while focusing on their core
competencies.
The gases industry is poised for a quantum jump on the back of robust growth
experienced in various end user segments. The annual production target of 110
million tonnes of steel by 2020 set by the Government in the national steel
policy is likely to be achieved much ahead of the plan as most of the major
steel producers in the country have announced modernisation and expansion of
their existing steel making capacities.
Several global steel majors have also been exploring opportunities for setting up large steel capacities in India. With this exponential growth in steel sector, the demand for gases, in particular, oxygen will continue to witness a substantial increase. Opportunities for growth also arise from the increasing Government focus in streamlining of its policies in new application areas such as electronics and food processing. Besides, the boom in construction and automobile sector in India is also providing a strong fillip to the demand for nitrogen and argon.
The Company continues to be the leading gases company in India and has aggressive growth plans to maintain its leadership position in the market place. However, other global gas players are also trying to increase their market presence and their sphere of activities in the country. Apart from these major global players, the market is also served by several regional and local gas companies, including those operating their own plants. With large-scale capacity additions in the gases industry, competition in both bulk and merchant markets is likely to intensify, which may adversely impact margins.
Business
Segments
The Company had been reporting its primary business segments as "Process Gas Solutions" and "Industrial and Special Products" till 31 March 2007. As informed in the last year's report, arising out of a reorganisation of the Company's operating model resulting from Linde's acquisition of The BOC Group plc, the Company has reclassified its business segments with effect from 1 April 2007 into two broad segments, viz. Gases and Related Products and Project Engineering.
Gases and Related Products
The Gases and Related Products segment comprises of gases in Bulk and Packaged Gases and related products. Gases in Bulk consists of liquid oxygen, nitrogen and argon and the Packaged gases consists of industrial, medical and special gases packaged in cylinders. Business in the market has continued to remain buoyant as a result of high level of economic dynamism in the country.
During the period, the turnover of the gases business achieved a growth of
about 9% over the corresponding period of the previous year.
This growth was achieved on the back of higher sales of liquid argon, liquid nitrogen, medical engineering services and from new products such as refrigerants, fire suppressants, welding and safety products. The Company achieved a quantum jump in the turnover from argon and argon mixtures, thereby maintaining its leadership in the country in this product segment.
The healthcare business grew by about 13% mainly driven by
medical engineering services. The special gases and welding and safety products
business also showed remarkable growth of about 28% and 86% respectively,
though on a small base. The welding and safety products business has good
synergy to their gases business, particularly in fabrication sector and the
initial response from the market is quite encouraging. The growth in the gases
business is considered satisfactory as it was achieved despite a planned
shutdown of the 1290 tpd plant at Jamshedpur taken for carrying out major
overhaul and repairs to the plant, which lasted for 23 days. The performance of
the 1290 tpd plant has since improved despite the lower off take of pipeline
gas supplies by the customer.
All other tonnage plants of the Company at Jamshedpur (225 tpd), Taloja,
Tarapur and that of its joint venture company at Bellary are operating at full
capacity and their performance have been satisfactory.
The project for 1800 tpd plant at Bellary works of JSW Steel which is being
executed by the Company's Project Engineering Division on scope split basis
with Linde Engineering is expected to be commissioned in the third quarter of
this financial year. The Company has also initiated construction of a merchant
ASU in the State of Uttarkhand. These new plants are expected to significantly
step up the turnover of the Company, thereby contributing to improved
profitability, besides helping maintain its market leadership as a truly
national gases company.
The Company is proud to have won the 5 year contract for supply of electronic
gases to Moser Baer, the country's first and single largest "photo-
voltaic" investment. The contract with Moser Baer covers designing,
installation, operation and maintenance of an electronic gases supply system
and supply of speciality gases to them. This is in line with the Group's global
strategy to steadily make inroads into emerging applications and alternate
energy is one of them.
The Company won two new on site supply scheme opportunities (ECOVAR)TM for
supply of gases to GKN Sinter Metals and Electrosteel Castings. The
construction of these plants is progressing as per schedule. The Company is
also in the process of commissioning the 100 tpd plant at the Rourkela site of
Adhunik Metaliks. The Company continues to pursue similar (ECOVAR)TM opportunities
which includes supply of hydrogen from an onsite plant.
The Cryospeed TM service which is a specially designed vehicle to transport
liquid gases to customers sites, that was launched last year has been very
successful and provides a competitive advantage to the Company.
During the period, the Company continued to focus on packaged gases and
products business and commissioned new modern liquid compression plants at
Bhiwadi in Rajasthan and Medak in Andhra Pradesh. The operations of the old
Faridabad site have been shifted to Bhiwadi and the old site at Faridabad has
been closed. The Company also commissioned another state of the art liquid
compression facility at the site of its 65 tpd plant at Medak near Hyderabad.
The operations at the old site at Sanatnagar in Hyderabad have been shifted to
the new site at Medak. The Company is making substantial investments in adding
distribution resources such as Vacuum Insulated Transport Tankers and Cylinders
to overcome constraints and improving distribution efficiencies of the liquid
and packaged products.
Project Engineering Division (PED)
This segment comprises manufacture and sale of cryogenic and non- cryogenic vessels as well as designing, supplying, testing, erecting and commissioning of projects.
Project Engineering Division turned in a robust performance during the 9 months
period with turnover at Rs. 405.29 million for third party projects in addition
to executing in-house projects worth Rs 1545.72 million, which however do not
account for the turnover. As against Rs.1545.72 million during the period, the
Division had executed in house projects of only Rs.190.48 million in the
previous year.
In keeping with its successful track record of executing projects, the Division successfully commissioned during the year, a 220 tpd ASU at Jindal Stainless at Hisar
The Division is currently engaged in the execution of several in-house
projects, prominent amongst them is the 1800 tpd ASU at the steel works of JSW
Steel at Bellany, Karnataka. The construction of the plant is progressing as
per schedule. Besides, the Division has also initiated construction of a 220
tpd merchant ASU in north India in the State of Uttarkhand.
The Division, in collaboration with Linde Engineering was successful in winning
several large orders for third party plant sale including a 700 tpd ASU order
from Rourkela Steel plant, another 2x750 tpd ASU order from IISCO Burnpur and a
large hydrogen PSA plant order from Bongaigaon Refinery. The Division
maintained its leadership in cryogenic nitrogen generators by winning several
orders including those from Bongaigaon Refinery, another repeat nitrogen
generator order from Indian Oil, Haldia and one from Bina Refinery. As on 31
December 2007, the Division has an order book position of Rs. 4521 million,
which is at its all time high.
Plant Manufacturing Works, the fabrication facility of Project Engineering
Division, continues to manufacture cryogenic storage tanks and provides support
to the Gases business.
The Division has successfully collaborated with Linde Engineering in the past
as their technology partner and the merger of subject with Linde AG
further strengthens this association. Post merger, PED with the support from
Linde Engineering has won several prestigious projects in India. This
consortium expects to win several projects on the strength of Linde
Engineering's cutting edge technology complemented by Project Engineering
Division's local capabilities and execution skills to suit the Indian industry.
Third party orders in hand stands at Rs. 4646 million including an order for
Rs. 213.10 million recently received from SAIL for Rourkela Steel Plant.
Finance
Cash generation from operations for the 9 months period ended 31 December
2007 at Rs.549.75 million showed a decline of around 12% on an annualised basis
as compared to the previous year. This was mainly due to collections made from
Bellary Oxygen Company Private Limited in the previous year against sale of the
855 tpd plant to the joint venture company during the previous year.
Capital expenditure of Rs.2201.19 million (Previous Year Rs. 1531.10 million)
during the period was mainly towards 1800 tpd Air Separation Unit at Bellary,
new liquid compression sites at Bhiwadi and Medak and capital advances for
procurement of cylinder and distribution resources.
The interest cost of the Company decreased from Rs. 52.50 million in the
previous year to Rs. 18.84 million during the period, which reflects a decline
of about 52% on an annualised basis over the previous year. This is mainly
owing to capitalisation of interest on borrowings for the ongoing
projects.
In line with the special resolution passed by the shareholders at the Extra
Ordinary General Meeting held on 5 December 2007, the Company made a
preferential issue of 36200000 equity shares of Rs.10 each at an issue price of
Rs.165 per equity share to The BOC Group plc, a wholly owned subsidiary of
Linde AG in compliance with the Securities and Exchange Board of India
(Disclosure and Investor Protection) Guidelines, 2000. The said shares were
allotted on 19 January 2008 after receipt of the subscription amount of Rs.5973
million in cash. As a result of this equity injection, the shareholding of The
BOC Group in the Company has increased from 54.8% to 73.99% of the paid up
share capital. The Company has since repaid most of the high cost borrowings
and the temporary surplus cash of Rs.4210 million has been parked in fixed
deposits of varying tenors with the banks, which will be utilised over next
year in ongoing projects and new investment opportunities being pursued by the
Company.
The Company has transferred a total sum of Rs. 0.06 million of matured deposits
and interest thereon to the Investor Education and Protection Fund pursuant to
Section 205C of the Companies Act, 1956.
Public Announcement/Open Offer by The
BOC Group plc
Consequent upon the acquisition of 36200000 equity shares of Rs.10 each in the Company by way of preferential allotment, The BOC Group plc (Acquirer) along with BOC Holdings, Linde Holdings Netherlands BY and Linde Finance BY as persons acting in concert made a public announcement to the shareholders of the Company on 22 January 2008 in compliance with Regulation 11(1) of the SEBI Takeover Regulations, 1997 as amended to date.
As per the public announcement, The BOC Group pic has along with the persons acting in concert made a cash offer to the shareholders of the Company to acquire up to 20% of its total expanded voting capital at a price of Rs.165 per equity share of Rs. 10 each as per Regulation 11(1) of the SEBI Takeover Regulations, 1997. The Acquirer is awaiting observations on the draft Letter of Offer filed with SEBI in this regard.
Prescribed Particulars
The prescribed particulars required under Section 217(1)(e) and 217(2A) of the Companies Act, 1956, read with the Rules made there under as amended up to date are given by way of Annexure to this Report.
Human Resources
The Company successfully implemented a new matrix organisation structure in line with that of The Linde Group. The Linde Group recently articulated its vision of becoming a leading global gases and engineering group admired for its people who provide innovative solutions that make a difference to the world. The Company is committed to this global vision of the Group and truly believes that its success is based on the skills and competencies of a team of motivated employees. To this end, the Company's senior management team participated in The Linde Group Asia Culture Workshop aimed at creating a shared understanding and alignment with new Linde culture and values amongst the employees in the South and East Asia Region.
As a member of The Linde Group, the Company continued to attract and select
best talent not only from premier engineering and management institutes but
also from the best in industry pool. Training and Development continued to
contribute towards the development of their employees through various internal
and external training initiatives.
Internal changes fuelled by external dynamics stimulated some amount of
employee turnover. To combat this challenge, various focused initiatives
towards introducing HR Best Practices have already been rolled out and work has
been initiated to introduce a robust performance management system, career and
succession planning and nurturing of high potential talents. One of the several
recent HR initiatives includes compensation restructuring to align the same
with those prevailing in comparable companies.
Safety, Health,
Environment and Quality (SHEQ)
Safety has been integral to the business performance of the Company and continues to receive focus throughout the Company. Effective implementation of their SHEQ policy is of key importance to all their employees, partners in business and their customers. Behaving responsibly towards other people and their environment is key to the long term success of their business.
Subject has a dedicated SHEQ department that manages all related activities
within the country and liaises and derives support from the Regional Business
Unit.
Their SHEQ policy is a set of guidelines designed to ensure continuous
improvement in production process and transport safety, occupational health,
environment protection and product quality standards across the Company.
The conduct guidelines set out in the policy align with their core principle: "At The Linde Group, we don't want to harm people or the environment". The systematic SHEQ management approach makes a substantial contribution to limiting risks to all employees, contractors and customers. To increase awareness in SHEQ related areas and help proper implementation of initiatives, the Company is conducting intensive training for its own employees and those of its customers. Their SHEQ policy extends far beyond a call for compliance to regulatory requirements. The Company's senior management team strives to set a strong example by walking the talk and providing strong visible leadership in this area.
Outlook
The Indian economy has grown at a healthy rate of over 8% for the last
three years and is expected to maintain a high GDP growth rate in the near
future. The high level of economic activities in India is expected to impart
buoyancy in the business and industrial scenario in the country. As a result of
this buoyancy in the industrial activity, the gases industry is poised for
sustained growth in the near future. The recent trend of captive users in
steel, petrochemicals and refinery sectors increasingly opting for outsourcing
their gases requirement is resulting in increasing number of tonnage
opportunities in the gases business.
The Government's National Steel Policy 2005 had projected the country's steel
making capacity to touch 110 million tonnes per annum by 2020. The recent
developments however indicate that this projected capacity will be commissioned
well ahead of 2020. The surge in steel demand and sustained upturn in this
industry will continue to benefit the Company as a major player in the gases
industry.
The directors believe that despite fears of a global recession, domestic demand
in the country will provide sufficient fillip and resilience to the growth of
the economy and the core industries sector. The Company is bidding for certain
large and prestigious tonnage opportunities and with the support of The Linde
Group, is well positioned to take advantage of the emerging opportunities in
the industry.
As the Indian economy matures, the demand for liquid nitrogen will continue to
increase in line with similar pattern seen in developed economies of the West.
This augurs well for the gases industry and the Company Is well positioned to
benefit from this development.
Special gases business is also showing impressive growth. With double digit
growth in this segment, this will be a key focus area in the years ahead.
New product lines like hydrogen, C02 etc. also offer a lot of promise.
Significant growth in the hydrogen application processes such as speciality chemicals, edible oils, solar cells, optical fibres etc. is fuelling growth for merchant hydrogen.
The solar cell of Photo Voltaic industry is another sunshine sector and offers
significant potential for the gases industry. The Company is closely pursuing
growth in this sector. With major wins at Moser Baer, the Company has already
established a clear lead over the other players in the gases industry.
Emerging applications in industries such as glass, oil, electronics, fibre
optics and food would also contribute to the growth of the industrial gases
sector. The Company has restructured its hospital care business towards
maintaining its leadership position in the healthcare segment. In summary, the
outlook for the Company looks promising.
Internal Control Systems and their
adequacy
The Company has an adequate system of internal control commensurate with the size and the nature of its business, which ensures that transactions are recorded, authorised and reported correctly apart from safeguarding its assets against loss from wastage, unauthorised use and removal.
The internal control system is supplemented by documented policies, guidelines
and procedures and an extensive program of review carried out by the Company's
Internal Audit function which submits detailed reports periodically to the
management and the Audit Committee.
The Company's statutory auditors have, in their report, confirmed the adequacy
of the internal control procedures.
Corporate Governance
The Company is committed to business integrity, high ethical values and professionalism in all its activities. As an essential part of this commitment, the Board of Directors supports high standards in corporate governance. A separate report on Corporate
Governance along with the certificate of the Auditors, Messrs BSR and Company,
confirming compliance of the conditions of corporate governance, as stipulated
under Clause 49 of the Listing Agreement entered into with the Stock Exchanges
is annexed.
Corporate Social Responsibility
As a member of The Linde Group, the Company focuses on the quality and reliability of products and technologies and sense of responsibility towards other people and the environment. During the period, the Company took several initiatives as a responsible corporate citizen such as organising blood donation camp with active participation from employees, promoting sports for healthy lifestyle and supporting an NGO working for restoring of a secured future for all socio-economically deprived children.
Fixed assets
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Land - Freehold
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Leasehold
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Buildings
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Plant and Machinery
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Motor Vehicles
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Office Equipment and Furniture
WEBSITE DETAILS:-
History and Early Years
The year was 1880 when Arthur and
Leon Brin took out the first of their patents on a process for separating
oxygen, they clearly believed they were on the brink of something big. But not
even they could have imagined they were embarking on a voyage through more than
100 years of modern industrial history - a voyage in which the company of their
creation pioneered developments that have helped to shape the world as they
know it today.
Oxygen's earliest commercial use in limelight may have been confined to the
music hall, but the Brin brothers' dogged determination in those early days
ultimately ensured a vital role for it in all kinds of modern industries and
sciences - from food and medicine to engineering and computer technology.
Fundamental to life itself, oxygen has become indispensable to the way they
live. And since then Arthur and Leon established Brin's Oxygen Company Limited.
or BOC - as it went on to become - oxygen has played a leading role. Today
subject is the 2nd largest industrial gases company in the world and the most
global.
Subject
formerly known as “IOL Limited.” and “Indian Oxygen Limited .” is a subsidiary
of The BOC Group, plc. U.K. The BOC Group is one of the largest producers of
industrial gases in the world and one of the most successful and leading
multinational companies of U.K. It has presence in over 50 countries employing
over 46000 people and has recorded turnover of GBP 4323.2 millions for its
accounting year ended 30 September 2003.
Subject was
set up in 1935 in Kolkata. Through seven decades of
operations, it has established itself as provider of complete solutions in
gases business to the Indian industry. BOCI embodies the best of international
technology and safety standards. With more than 20 production facilities,
including one of Asia's largest air separation units; 40 warehouses and depots;
100 dealers; more than 100 dedicated tankers in the distribution fleet; - BOCI
provides an extensive geographic reach, thus bringing it closer to its
customers in any part of the country. Headquartered in Kolkata, Subject employs
654 people and serves more than a lac customers.
Today
The company has two divisions, the gases division and the project engineering
division. The gases division contributes about 90 per cent of its turnover. The
Gases and related products comprise two main lines of businesses viz. Process
Gas Solutions (PGS) and Industrial
and Special Products (IandSP).
PGS
provides products and solutions in tonnage and merchant markets and pipeline
business. It caters to a wide range of industries in metals, refining, petrochemicals,
fibre optics, food, glass and others. The company’s operations include a
1,290-tpd plant at Jamshedpur that was set up for Tisco (Tata Iron and Steel
Company) In addition; it has commissioned a 225-tpd gaseous oxygen plant for
Tisco in July 2003. It also has 120-tpd plants at Taloja, Tarapur and Dolvi.
I and SP
develops and delivers packaged products and solutions and caters to industries
such as fabrication, medical, scientific research and hospitality etc. BOCI
currently has several ISP (Industrial and Special Products) operation sites
across the country. Significant among them is a compression station at Kona,
West Bengal. The company also recently reopened its Asansol unit. The
commissioning of a modern LCS facility at Asansol is a landmark for Subject and consistent with its
strategy to provide world class product and service offerings to its customers
in the important industrial belt of West Bengal. The new facility uses
cryogenic liquid pumps instead of conventional gas compression facility,
thereby ensuring the highest level of purity across product range. The Subject Asansol Unit will give the
industrial belt of Asansol, Durgapur and Ranigung a better, reliable and
convenient option for customers - providing them with a wide range of product
and services. This unit will further strengthen Subject position
in West Bengal market and consolidate its market leadership in this important
region.
Subject PM Works in
Kolkata was the first in Eastern India to receive an ISO 9001 accreditation in
January 1993. Today many of their production units are certified to ISO
9001-2000, while Jamshedpur 1290 and Taloja tonnage plant have ISO 14000
accreditation.
Subject has reported
significant topline and bottomline growth for the year ended 31st March 2005.
The turnover of the company during this period is Rs. 4243.5 million
(underlying growth of 10% after adjusting for power de-escalation) and net
profit after tax is Rs. 261 million. Increased sales volumes, improved price
realisations, increased operating efficiencies and significant reduction in
financing costs drove this improved financial performance. The profit before
tax for the year is Rs 456 million.
Industrial Gases
Delivering a quality product safely, and on time; first time
and every time; is the hallmark of Subject.
This has helped the company to maintain its position as the
largest Industrial Gases Company in India.
The company has an enviable range of Industrial Gases that includes Atmospheric
Gases and Process Gases. These are manufactured through an economical Cryogenic
(low temperature) process which gives Subject
a unique platform to offer any category of gases in pure form or in
mixtures for a wide variety of industrial applications.
Medical Gases
When it comes to the
administration of medical gases, a second's delay or the slightest
contamination can make the difference; in a cardiac attack; in the operation
theatre; in a respiration crisis-BOC
is the name you can count on.
Subject the largest
supplier of Medical gases in the country has carved a niche by dint of its
impeccable performance for the last six decades.
BOC Medical (division
of BOC India Limited)
has recently launched Oxyline™
-the one of its kind Mobile Medical Oxygen Delivery
Unit to cater to individual patients and smaller medical units. This service
has been introduced in Kolkata, Hyderabad, Chennai and Bangalore. The service
will be extended to rest of the metros in the current year.
Specialty Gases
When Accuracy, Traceability and
Stability are the critical issues, and the slightest contamination can
adversely impact safety or productivity, most manufacturers rely on Subject's specialty gases. These
special gases and mixtures are primarily used for calibrating different
sophisticated analytical instruments across industry segments.
Subject offers over
20,000 special gases and mixtures catering to the needs of industries like
Petrochemicals, Pharmaceuticals, Electronics, Semi-conductor, Paper, Cement,
Power, Refineries, Hospitals and Universities.
Access to global technology through the BOC
Group helps them to ensure that their customers in India can
access the benefits of global technology. In the year 2000, the Group spent
more than £50 million on R and D to add new gases and applications to the
existing repertoire
Safety Practices
Subject follows the IMSS (Integrated Management
Safety Standards.) system, wherein all safety systems and procedures are
defined for the plant operations. They also Practice BOP (Best Operating
Practice) wherein all the best systems from all over the group companies are
implemented to have safe and productive systems.
BOC - The Gases Specialist
Global expertise adapted for the Indian needs - this is the
mantra which BOCI has been using for the last 70 years to satisfy its customers.
They supply more than 20,000 gases and mixtures - that make steel plants more
efficient, help conserve their environment, preserve food, help hospitals to
sustain lives and in general……make their customers more productive.
The company started operations in India in 1935 as the Indian
Oxygen and Acetylene Company. It has since evolved into a subsidiary of the BOC Group, bringing you the best
international technology and safety standards, while catering to the needs of a
wide variety of industries.
More than 20 production facilities, including one of Asia's
largest air separation units; 40 warehouses and depots; 100 dealers ; more than
100 dedicated tankers in the distribution fleet; - all this and more give BOC a
geographic reach which puts them close to their customers in any part of India.
Subject has four focussed
business areas:
Subject wins another major onsite contract from JSW
Steel Limited subject to set up
its biggest plant in Asia to meet demand for expansion at JSW Steel
Information is today's differentiating factor; and information technology provides the cutting edge to organisations to become and remain #1.
Subject has invested almost Rs. 100 million over the last 24 months, in revamping its Information Technology platforms; It was one of the earliest to implement SAP in India in 1998. SAP is a German ERP solution, which has been implemented in more than half of the Fortune 500 companies. The entire project is currently handled by an in-house team of IT experts who provide a powerful combination of business process experience with IT knowledge.
Their production and distribution points are connected through an extensive network of VSATs; all this helps BOC optimise its customer service and response levels.
In the coming days, their customers can look forward to increased web based interaction with BOCI which will help them to reduce their transaction and query costs.
Subject regards protection of environment as an important objective and is committed to minimising any adverse effect of its operations on the environment. It will achieve its goal by:
·
Ensuring compliance with all relevant statutory and
regulatory provisions as well as Group standards for environment protection.
·
Putting into operation a systematic environment
management plan, which will identify the best practicable environment
protection measures for all its processes and activities and compliance with
the plan through regular audits and reviews.
·
Developing and marketing environment friendly products
and services and providing information and assistance to customers, suppliers
and general public towards environment protection measures.
·
Continually improving the environmental performance and
conserving energy and other resources by providing training and awareness to
all employees, and contractors’ employees.
Code of conduct
BOC global Code of Conduct for all employees
Subject a subsidiary of The BOC Group plc is committed to a set of core values- their guiding principles, contained in the BOC's global Code of Conduct, which has been fully adopted by the Company. The Code of Conduct provides a framework of the Group's ethical and legal guidelines, which help the Company as it conducts its business responsibly. The Code encompasses safety, social, environmental and good governance business principles and applies to all the company employees.
Code of Conduct for Non
Executive Directors
In line with the BOC's
global Code of Conduct, the Non Executive Directors of Subject Limited will appropriately comply with the
guiding principles and standards of business conduct underpinned in the BOC's
global Code of Conduct.
PRESS RELEASE:-
BANGALORE, India, June 5, 2006 : – BOC India Limited (BOCI), a subsidiary of The BOC Group Plc. one of the world’s largest industrial gases companies, has entered into a long-term contract to supply gases for an expansion programme underway at JSW Steel Limited (JSW) at Bellary, Karnataka, southern India.
JSW Steel Limited (formerly Jindal Vijayanager Steel Limited)
operates a world-class steel making facility at Bellary and is nearly doubling
its capacity to 7 million tonnes a year. Under the new contract, BOCI will
supply JSW Steel over 3,000 tonnes per day of gaseous oxygen, nitrogen and
argon from a custom-built air separation unit (ASU). To meet this requirement
BOCI will set up one of the largest build-and-operate on-site air separation
plant in the country. The state-of-the-art ASU will meet all of JSW Steel’s
gases requirements and additionally will produce liquid products to meet the
growing demand from customers in southern India. This ASU, which will be one of
BOC’s largest in Asia, is expected to be commissioned in 2008 in time to meet
the requirements of gases arising from the ongoing expansion programme at JSW
Steel.
Speaking on the occasion Dr. B. N. Singh, Joint Managing
Director and CEO, JSW Steel Limited said, “BOC was able to provide the best
technical solution for their gases requirement, this along with their
reputation for quality and reliability was key in their selection of BOC to
support their expansion programme.”
“They are delighted to be selected by JSW Steel for this second
contract to meet all their gases requirements arising from their expansion
programme. They value their relationship with JSW Steel and with the gases
requirement of nearly 4500 MTPD from the expansion alone they will become
BOCI’s largest customer in India,” said Mr ER Raj Narayanan, Managing Director,
BOC India Limited.
Mr. Sanjiv
Lamba, Managing Director, PGS South and South East Asia, The BOC Group Plc.
said, “At BOC they recognise the importance of investment in their business in
India and are delighted to have an opportunity to do this at JSW Steel’s world
class steel plant in Vijaynagar. They are confident that their commitment of
continuous and focused investment in growth markets such as southern India will
help us deliver their growth strategy in India and further strengthen their
position as the leading industrial gases company in India and across Asia.”
This contract follows an earlier agreement signed last year with JSW Steel to
supply its Bellary site with some 1,400 tonnes per day of oxygen and nitrogen.
An ASU is currently under construction by a BOC joint venture, with commercial
production expected to begin later this year. In addition to its major air
separation plants in Jamshedpur, Tarapur and Taloja, BOCI has recently
commissioned its latest merchant ASU in Hyderabad.
In the fiscal year ending 31st March 2006, BOC India has registered its highest ever turnover of
Rs. 5609.300 millions, recording a growth of 32% over the previous year. Net
profit after tax increased by 181% from Rs. 279.700 millions to Rs. 786.300
millions. The year also witnessed several product launches and commissioning of
plants across the country.
About JSW Steel: JSW Steel Limited is part of the O P Jindal
Group and is one of India’s largest steel manufacturers. It is a fully
integrated company having facilities from mining of iron ore to colour coated
steel. It ranks among India's top business houses in turnover, size and scale
of operations. JSW Steel Limited . consists of the most modern, eco-friendly
steel plants with the latest technologies for both upstream and downstream
processes. The company encompasses the Vijayanagar Works in Karnataka and the
Tarapur and Vasind Works in Maharashtra.
About BOC: Serving two million customers in more than 50
countries, The BOC Group is one of the largest and most global of the world’s
leading gases companies. It employs around 30,000 people and had total revenues
of £4.6 billion in 2005.
For more than a century, BOC’s gases and expertise have
contributed to advances in many industries and aspects of everyday life,
including steel-making, refining, chemical processing, environmental
protection, wastewater treatment, welding and cutting, food processing and distribution,
glass production, electronics and health care.
About BOC India Limited:
BOC India Limited (BOCI) is a leading
player in the gases business in India since 1935. Part of The BOC Group Plc. of
UK, BOCI provides a one-stop solution to every sphere of gas and gas related
business. BOCI has excelled through successfully blending local innovation and
adaptation with international expertise from the Group. Be it for food
processing, medical, domestic or industrial use, BOC India provides tailor-made solutions for its
customers. BOCI does this while adhering to the strictest international
standards of production and safety that it has come to be known for.
BOC India registers record growth in
2005-06 Board recommends 30% dividend
Kolkata, 8th May 2006:: BOC India limited, a subsidiary of The BOC Group Plc. recorded
remarkable growth in turnover and profit for the year ended 31st March 2006.
The year also witnessed several product launches and commissioning of plants by
the Company.
BOCI registered its highest ever turnover of Rs. 5609.300
millions, recording a growth of 32% over the previous year. Net profit after
tax increased by 181% from Rs. 279.700 millions to Rs. 786.300 millions.
Increased sales volumes coupled with improved price realisation in
certain product groups had a positive impact on this year’s performance.
Enhanced operating efficiencies, new business wins and strong performance from
Project Engineering division also contributed to the Company’s results.
The Company registered its highest ever profit, before tax and
extraordinary items, of Rs
809.200 millions - growth of 78 % over that of the previous year. This excludes
an extraordinary income of Rs. 474.600 millions from sale of closed factory land in Bangalore. The profit before tax
inclusive of the extraordinary income stands at Rs. 1218.700 millions.
The Board of
Directors at a meeting held on 8th May 2006 have recommended a dividend of 30%
(Rs. 3/- per equity share) for the financial year ended 31st March 2006,
compared to 15% in the last fiscal year.
Commenting on the performance Mr. ER Raj Narayanan, Managing Director, BOC
India Limited said, “They have recorded a very good year of performance
with both Process Gas Solutions and Industrial and Special Products making
significant contributions during the period. At BOCI they have constantly
worked towards improving their service levels. BOCI has established several
world class processes to ensure that their business runs safely, efficiently
and with highest ethical standards.” He further added “In the coming months
they would like to focus their efforts towards consolidating their current
position while expanding into newer markets”
The Lines of Business performance at a glance:
PGS Business: The PGS business recorded a topline growth of
46%, in the current fiscal year, with PED registering a growth of 128%.
The highlight of PGS performance this year has been the
penetration into new geographies and newer applications by the sales and
business development teams, contributing to increase in turnover. Geographical
expansion in Southern market has also started yielding results. The Company
inaugurated its first merchant plant in Hyderabad this fiscal year after a span
of 15 years. This cryogenic plant will produce liquid oxygen, liquid nitrogen
and liquid argon to meet the market demands in the Southern region.
Project Engineering Division maintained its growth momentum from
the previous year and contributed significantly to the PGS bottomline. It also
includes plant sales to Bellary Oxygen Company, the joint venture set up to
supply product to JSW Limited in Bellary.
About The BOC Group: The BOC Group, the world-wide industrial gases, vacuum and abatement technologies and distribution services company, serves two million customers in more than 50 countries. It employs some 30,000 people and had annual sales of over £4.6 billion in 2005. Further information about The BOC Group may be obtained on the Internet at www.boc.com .
ISP Business: The ISP business registered a topline growth of
19 %, in the current fiscal year.
The business recorded another milestone with the commissioning of
the Chennai ISP plant - part of its rationalisation initiatives. Built over a
footprint of 2.2 acres the plant introduces palletised distribution of
cylinders through its palletised delivery vehicle. This new plant has
facilities to fill, analyse and distribute industrial oxygen, medical oxygen,
nitrogen, argon and argo-shield.
The year also witnessed the launch BOC FS125, a fire suppressant
gas that is an ideal replacement for Halon. The use of Halon has been banned
under the Montreal Protocol. It also introduced CARE30 for the refrigerant
industry. Care30 from BOC is the most environmentally friendly gas with Zero
Ozone Depleting Potential. The traditional medical gases business of BOC India Limited also witnessed a
growth in the last fiscal year. During the year BOC Medical witnessed robust
growth in the medical pipeline business with some big wins.
BOC India Safety Initiatives: At BOC India safety is 100% of it commitment,
100% of its time. Living by the motto the company has taken several initiatives
in the current year to further its safety commitments towards its stakeholders.
About BOC India Limited: BOC India
Limited (BOCI) is a leading player in the gases business in India since
1935. Part of The BOC Group Plc.
of UK, BOC India provides a
one-stop solution to every sphere of gas and gas related business. BOC India has excelled through
successfully blending of local innovation and adaptation with international
expertise from the Group. Be it for food processing, medical, domestic or
industrial use, BOC India
provides tailor made solutions for its customers. While providing the best solutions
to its customers, BOC India has
always conformed to the strictest international standards of production and
safety.
About The BOC Group: The BOC Group, the world-wide industrial gases, vacuum and
abatement technologies and distribution services company, serves two million
customers in more than 50 countries. It employs some 30,000 people and had
annual sales of over £4.6 billion in 2005.
BOC India
registers another quarter of good performance
Kolkata, 8th May 2006:: BOC India limited, a subsidiary of The BOC Group Plc. recorded remarkable growth in turnover and profit for the year ended 31st March 2006. The year also witnessed several product launches and commissioning of plants by the Company.
BOCI registered its highest ever turnover of Rs. 5609.300
millions, recording a growth of 32% over the previous year. Net profit after
tax increased by 181% from Rs. 279.700 millions to Rs. 786.300 millions.
Increased sales volumes coupled with improved price realisation in
certain product groups had a positive impact on this year’s performance.
Enhanced operating efficiencies, new business wins and strong performance from
Project Engineering division also contributed to the Company’s results.
The Company registered its highest ever profit, before tax and
extraordinary items, of Rs 809.200 millions - a growth of 78 % over that of the
previous year. This excludes an extraordinary income of Rs. 474.600 millions
from sale of closed factory land in Bangalore. The profit before tax inclusive
of the extraordinary income stands at Rs. 1218.700 millions.
The Board of Directors at a meeting held on 8th May 2006 have recommended a
dividend of 30% (Rs. 3/- per equity share) for the financial year ended 31st
March 2006, compared to 15% in the last fiscal year.
Commenting on the performance Mr. ER Raj Narayanan, Managing
Director, BOC India Limited said,
“They have recorded a very good year of performance with both Process Gas
Solutions and Industrial and Special Products making significant contributions
during the period. At BOCI they have constantly worked towards improving their
service levels. BOCI has established several world class processes to ensure
that their business runs safely, efficiently and with highest ethical
standards.” He further added “In the coming months they would like to focus
their efforts towards consolidating their current position while expanding into
newer markets”
The Lines of Business performance at a glance:
PGS Business: The PGS business recorded a topline growth of
46%, in the current fiscal year, with PED registering a growth of 128%.
The highlight of PGS performance this year has been the
penetration into new geographies and newer applications by the sales and
business development teams, contributing to increase in turnover. Geographical
expansion in Southern market has also started yielding results. The Company
inaugurated its first merchant plant in Hyderabad this fiscal year after a span
of 15 years. This cryogenic plant will produce liquid oxygen, liquid nitrogen
and liquid argon to meet the market demands in the Southern region.
Project Engineering Division maintained its growth momentum from
the previous year and contributed significantly to the PGS bottomline. It also
includes plant sales to Bellary Oxygen Company, the joint venture set up to
supply product to JSW Limited . in Bellary.
ISP Business: The ISP business registered a topline growth of
19 %, in the current fiscal year.
The business recorded another milestone with the commissioning of
the Chennai ISP plant - part of its rationalisation initiatives. Built over a
footprint of 2.2 acres the plant introduces palletised distribution of
cylinders through its palletised delivery vehicle. This new plant has
facilities to fill, analyse and distribute industrial oxygen, medical oxygen,
nitrogen, argon and argo-shield.
The year also witnessed the launch BOC FS125, a fire suppressant
gas that is an ideal replacement for Halon. The use of Halon has been banned
under the Montreal Protocol. It also introduced CARE30 for the refrigerant
industry. Care30 from BOC is the most environmentally friendly gas with Zero
Ozone Depleting Potential. The traditional medical gases business of BOC
India Limited also witnessed a
growth in the last fiscal year. During the year BOC Medical witnessed robust
growth in the medical pipeline business with some big wins.
BOC India
Safety Initiatives: At BOC India safety is 100% of it commitment, 100% of its time.
Living by the motto the company has taken several initiatives in the current
year to further its safety commitments towards its stakeholders.
About BOC India Limited: BOC India Limited (BOCI) is a leading player in
the gases business in India since 1935. Part of The BOC Group Plc. of
UK, BOC India provides a one-stop solution to every sphere of gas and
gas related business. BOC India has excelled through successfully
blending of local innovation and adaptation with international expertise from
the Group. Be it for food processing, medical, domestic or industrial use, BOC
India provides tailor made solutions for its customers. While providing the
best solutions to its customers, BOC India has always conformed to the
strictest international standards of production and safety.
About The BOC Group: The BOC Group, the world-wide industrial
gases, vacuum and abatement technologies and distribution services company,
serves two million customers in more than 50 countries. It employs some 30,000
people and had annual sales of over £4.6 billion in 2005. Further information
about The BOC Group may be obtained on the Internet at www.boc.com
.
BOC
India registers another quarter of good performance
Kolkata, 30th January 2006: BOC India Limited the pioneers and leaders in industrial and medical gases business in the country announced its Q3 results today. The Company’s year to date results with profit before taxes and extraordinary items at Rs. 439.100 millions for the nine months ended 31 December 2005, increased by 34.86 per cent compared to corresponding period of the previous year.
The results were driven by a strong performance
of the Project Engineering business and better margins in the Gases business.
The period also witnessed a substantial lowering of the interest cost to Rs
21.700 millions for the nine months period compared to Rs 34.600 millions in
the same period in the previous year and contributed to the growth in profit.
The board has also approved a provision of Rs. 39.900 millions for bad &
doubtful debts based on an in-depth review of debtors of the Company’s
Industrial & Special Products business.
The Company has continued with its impressive
topline growth with Project Engineering Division making good progress on the
855 tpd plant being put up for Bellary Oxygen company Pvt. Ltd. at Bellary. The
65 tpd plant in Medak in Andhra Pradesh has just commenced trial production and
is expected to give a distinct cost advantage on liquid sourcing for the South
India business. The ISP site rationalization plan is also progressing per
schedule with the Chennai new facility already commissioned and work now
starting at Trichy and Pune sites.
During the period an extraordinary profit of Rs
474.600 millions, from sale of the closed unit at Yeshwanthpur in Bangalore
resulted in the profit before tax almost trebling to Rs 900.500 millions from
that of the corresponding period of the previous year.
The Company’s net Sales at Rs 3631.200 millions
for the nine months grew 34 per cent over same period last year mainly due to
Project Engineering business and growth in ASU gas volumes and prices.
About BOC India Limited: BOC India
Limited (BOCI) is the leader in gases business in India since 1935.
Part of The BOC Group Plc. of UK, BOC India provides
a one-stop solution to every sphere of gas and gas related business. BOC
India has excelled through successfully blending of local innovation and
adaptation with international expertise from the Group. Be it for food
processing, medical, domestic or industrial use, BOC India provides
tailor made solutions for its customers. While providing the best solutions to
its customers, BOCs India has always conformed to the strictest
international standards of production and safety.
About The BOC Group:
Serving two million customers in more than 50 countries, The BOC
Group is one of the largest and most global of the world’s leading gases
companies. It employs around 30,000 people and had annual sales of just over £
4.6 billion in 2004.
For over a century, BOC’s gases and expertise have contributed to
advances in many industries and aspects of everyday life, including
steel-making, refining, chemical processing, environmental protection,
wastewater treatment, welding and cutting, food processing and distribution,
glass production, electronics and health care.
Two significant businesses have grown in parallel with BOC’s industrial
gases activities. One is BOC Edwards, supplying gases, equipment and services
to the global semiconductor industry and vacuum and pressure equipment for many
industrial and scientific applications. The other is Gist - a specialist
logistics company serving a number of major customers including Marks &
Spencer.
CMT REPORT
(Corruption, Money Laundering and 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 BOC India
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 BOC
India is or was the BOC India 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 BOC
India are derived from criminal conduct
or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against BOC India : None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against BOC India : None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against BOC India : None
7] Criminal Records
No
available information exist that suggest that BOC India 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 BOC India is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the BOC India .
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
BOC India 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 BOC India .
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.89 |
|
UK Pound |
1 |
Rs.78.86 |
|
Euro |
1 |
Rs.63.33 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
Yes |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 and 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 and 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 |
|