MIRA
INFORM REPORT
|
Report Date : |
28.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
INDIA GLYCOLS LIMITED |
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Registered
Office : |
A-1, Industrial Area, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
19.11.1983 |
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Com. Reg. No.: |
20-009097 |
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Capital
Investment / Paid-up Capital : |
Rs.278.825 millions |
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|
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CIN No.: [Company Identification
No.] |
L24111UR1983PLC009097 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELI04270A |
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PAN No.: [Permanent Account No.] |
AAACI7246P |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed on Stock
Exchanges. |
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Line of Business
: |
Manufacturing and sale of alcohol based chemicals such as
ethylene glycol, mono-ethylene glycol, ethylene oxide condensates / derivatives,
etc. |
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|
No. of Employees
: |
540 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 15755000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office / Factory: |
A-1, Industrial Area, |
|
Tel. No.: |
91-5947-275313 / 275317-275320/ 269000/ 269500 |
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Fax No.: |
91-5947-275315 |
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Email: |
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Website : |
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Head Office 1 : |
C-124, Okhla Industrial Area, Phase I, |
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Tel. No.: |
91-11-26815772 |
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Fax No.: |
91-11-26810390 / 26819410 |
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E-Mail : |
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Head Office 2 : |
2B, Sector-126, Noida, Gutam Budh Nagar – 201 304, |
|
Tel. No.: |
91-120-3090100/ 3090200 |
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Fax No.: |
91-120-3090111 |
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|
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Corporate Office : |
3A, Shakespeare Sarani, Kolkata – 700 071, West |
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Factory 2: |
E-1, Sector 15, GIDA, |
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Tel. No.: |
91-551-2580352 |
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Fax No.: |
91-551-2580351 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Ms. Jayshree Bartuia |
|
Designation : |
Non-Executive Director |
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Name : |
Mr. Jagmohan N. Kejriwal |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Pradip Kumar Khaitan |
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Designation : |
Non-Independent Non-Executive Director |
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Name : |
Mr. Autar Krishna |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. R.C. Misra |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Ravi Jhunjhunwala |
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Designation : |
Independent Director |
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Name : |
Mr. M.K. Rao |
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Designation : |
Executive Director |
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|
Name : |
Mr. Jitender Balakrishnan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Lalit Kumar Sharma |
|
Designation : |
Company Secretary |
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Investors’ Grievance Committee: |
· Mr. R.C Mishra, Chairman · Mr. Jagmohan N Kejriwal · Mr. Autar Krishna ·
Mr. |
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|
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Audit Committee: |
· Mr. R.C. Mishra, Chairman · Mr. Autar Krishna · Mr. Jagmohan N. Kejriwal |
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|
Name : |
Mr. Rakesh Bhartia |
|
Designation : |
Chief Executive Officer |
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|
Name : |
Mr. Anand Singhal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. R. Pabi |
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Designation : |
President - Marketing |
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Name : |
Mr. I.B. Lal |
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Designation : |
President - Spirits Division |
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Name : |
Dr. Shyamal Purkayastha |
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Designation : |
President - Natural Gums Division |
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Name : |
Mr. Manoj Pahwa |
|
Designation : |
President - Ennature Biopharma |
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Name : |
Mr. J.D. Kumar |
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Designation : |
Head - Technology |
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Name : |
Mr. V.P. Garg |
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Designation : |
Head - Projects and Purchase |
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Name : |
Mr. R.S. Yadav |
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Designation : |
Head - Human Resources |
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Name : |
Dr. GBS Reddy |
|
Designation : |
Head - Operations and R and D, Ennature Biopharma |
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Name : |
Dr. B.K. Mishra |
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Designation : |
Head – R and D |
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Name : |
Mr. Lalit Kumar Sharma |
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Designation : |
Head - Legal and Company Secretary |
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Name : |
Mr. K.K. Lal |
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Designation : |
Head - Engineering |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,521,421 |
12.63 |
|
|
11,489,370 |
41.21 |
|
|
15,010,791 |
53.84 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
15,010,791 |
53.84 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
465,340 |
1.67 |
|
|
4,310 |
0.02 |
|
|
560,565 |
2.01 |
|
|
225,973 |
0.81 |
|
|
1,256,188 |
4.51 |
|
|
|
|
|
|
2,615,011 |
9.38 |
|
|
|
|
|
|
7,203,214 |
25.83 |
|
|
1,200,741 |
4.31 |
|
|
596,555 |
2.14 |
|
|
585,300 |
2.10 |
|
|
11,255 |
0.04 |
|
|
11,615,521 |
41.66 |
|
Total Public shareholding (B) |
12,871,709 |
46.16 |
|
Total (A)+(B) |
27,882,500 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
27,882,500 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and sale of alcohol based chemicals such as
ethylene glycol, mono-ethylene glycol, ethylene oxide condensates /
derivatives, etc. |
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Products : |
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PRODUCTION STATUS As on 31.03.2010 (Qty. in MT)
|
Particulars |
|
|
Installed
Capacity |
Actual
Production |
|
Ethylene glycol |
|
|
86500 |
430777 |
|
Ethylene oxide |
|
|
24000 |
-- |
|
Di-ethylene glycol |
|
|
6100 |
4272 |
|
Heavy glycol |
|
|
400 |
516 |
|
E. O. Derivatives |
|
|
@@26000 |
97803** |
|
Guar Gum Powder and Derivatives |
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|
12000 |
4159 |
|
Ethyl Alcohol (Potable) Qty. in (KBL) |
|
|
18000 |
4524 |
|
Industrial Gases Division Qty in NM3 |
|
|
Nm3/Hr |
NM3 |
|
Oxygen |
|
|
10400 |
55095402## |
|
Nitrogen |
|
|
2828 |
16119619## |
|
Argon |
|
|
232 |
1449028## |
|
CO2 (Qty in MT) |
|
|
160 (MT/Day) |
28688 |
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|
|
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|
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Ethyl Alcohol (Potable) Qty. in (KBL) |
|
|
99000 |
28162 |
|
CO2 (Qty in MT) |
|
|
-- |
1706** |
|
Ennature Bio- Pharma (Qty in Kgs) |
|
|
-- |
5511 |
Notes:
@@ Standard Capacity
** Net of captive consumption.
* As certified by the Management and relied upon by the auditors, being
a technical matter.
# Production as received in bonded tank farm.
@ Under the Industrial Policy Statement dated 24th July, 1991 and the
notifications issued thereunder, no licensing is required for these products.
*** Including CO2 received from Kashipur 354MT (Previous year 967MT) net
of transit loss 6MT (Previous year 5MT)
## Net of Evaporation loss.
GENERAL INFORMATION
|
No. of Employees : |
540 (Approximately) |
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Bankers : |
v
State Bank of v
Union Bank of v Punjab National Bank, Kashipur, Uttranchal v Axis Bank Limited, Kashipur, Uttranchal v HDFC Bank Limited, Kashipur, Uttranchal v IDBI Bank Limited v Axis Bank Limited v The Hongkong and Shanghai Banking Corporation Limited v
States Bank of v Banking Corporation Limited v Exim Bank |
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Facilities : |
Notes : 1)
The Term Loan inter-se, are secured / to be
secured by mortgage of all immovable properties of the company both present and
future and hypothecation of all movable properties of the company (Save and
except book debts) including movable machinery, machinery spares, tools and
accessories, both present and future subject to prior charge created and / or
to be created and / or to be created in favour of the bankers of the bankers
of the company on stocks, book debts and other specified movable properties
for working Capital requirements. 2)
Working Capital Loans form Banks are secured/ to be
secured by way of hypothecation of book debts and stocks including in-transit
and second charge on all immovable
properties of the company. 3)
Rupee Term Loan include loan from banks of Rs.
Nil (Previous year Rs. . 0.936 Million) and from others of Rs. 1.656 Millions
(Previous year Rs. Rs. 0.704 Million) secured by hypothecation of Motor
Vehicles purchased there under. |
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|
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Banking
Relations : |
Good |
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|
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Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
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Associates: |
· Ajay Commercial Company (Private) Limited · J.B. Commercial Company (Private) Limited · Kashipur Holdings Limited ·
Polylink Polymers ( · Hindustan Wires Limited |
|
|
|
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Subsidiaries : |
· IGL Finance Limited · Shakumbari Sugar And Allied Industries Limited · IGLCHEM International Pte Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27882500 |
Equity Shares |
Rs.10/- each |
Rs.278.825 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
278.825 |
278.825 |
278.825 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3660.045 |
3509.025 |
4548.018 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3938.870 |
3787.850 |
4826.843 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10965.662 |
7776.388 |
4983.718 |
|
|
2] Unsecured Loans |
354.249 |
1436.889 |
543.849 |
|
|
TOTAL BORROWING |
11319.911 |
9213.277 |
5527.567 |
|
|
DEFERRED TAX LIABILITIES |
469.264 |
358.224 |
852.913 |
|
|
|
|
|
|
|
|
TOTAL |
15728.045 |
13359.351 |
11207.323 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8021.258 |
7252.631 |
6966.830 |
|
|
Capital work-in-progress |
3225.153 |
3399.284 |
1469.566 |
|
|
|
|
|
|
|
|
INVESTMENT |
411.911 |
130.123 |
129.357 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2957.079
|
2151.919
|
2140.811
|
|
|
Sundry Debtors |
1159.611
|
693.404
|
862.380
|
|
|
Cash & Bank Balances |
441.132
|
382.147
|
147.253
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1685.337
|
1689.851
|
1548.668
|
|
Total
Current Assets |
6243.159
|
4917.321
|
4699.112
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1109.042
|
955.626
|
|
|
|
Other Current Liabilities |
589.476
|
914.987
|
|
|
|
Provisions |
478.225
|
485.524
|
614.556
|
|
Total
Current Liabilities |
2176.743
|
2356.137
|
2057.542
|
|
|
Net Current Assets |
4066.416
|
2561.184
|
2641.570
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
Foreign Currency Monetary Item Translation Difference |
3.307 |
16.129 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15728.045 |
13359.351 |
11207.323 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11092.338 |
9623.601 |
13039.167 |
|
|
|
Other Income |
394.477 |
283.493 |
145.602 |
|
|
|
TOTAL (A) |
11486.815 |
9907.094 |
13184.769 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
10920.435 |
9535.897 |
9589.966 |
|
|
|
Increase/ Decrease in Stock |
[494.524] |
[68.576] |
100.098 |
|
|
|
Exceptional Item |
[162.658] |
474.367 |
0.000 |
|
|
|
TOTAL (B) |
10263.253 |
9941.688 |
9690.064 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1223.562 |
[34.594] |
3494.705 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
321.854 |
770.563 |
457.971 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
901.708 |
[805.157] |
3036.734 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
590.716 |
567.345 |
661.118 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
310.992 |
[1372.502] |
2375.616 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
111.040 |
[453.586] |
590.341 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
199.952 |
[918.916] |
1785.265 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2569.840 |
3521.378 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10.000 |
0.000 |
-- |
|
|
|
Proposed Dividend |
41.824 |
27.883 |
-- |
|
|
|
Corporate Dividend Tax |
7.108 |
4.739 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
2710.860 |
2569.840 |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4010.609 |
2238.458 |
2046.524 |
|
|
TOTAL EARNINGS |
4010.609 |
2238.458 |
2046.524 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2757.882 |
724.069 |
57.018 |
|
|
|
Stores & Spares |
3.250 |
31.653 |
19.308 |
|
|
|
Capital Goods |
297.596 |
505.969 |
49.251 |
|
|
|
Traded Goods |
4.334 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
3063.062 |
1261.691 |
125.577 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.17 |
[32.96] |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
3379.100 |
4110.400 |
4271.900 |
4402.500 |
6313.900 |
|
Total Expenditure |
3046.200 |
3618.300 |
3738.000 |
3758.900 |
5488.300 |
|
PBIDT (Excl OI) |
332.900 |
492.100 |
533.900 |
643.600 |
825.600 |
|
Other Income |
1.900 |
12.400 |
10.600 |
0.700 |
1.800 |
|
Operating Profit |
334.800 |
504.500 |
544.500 |
644.300 |
827.400 |
|
Interest |
290.100 |
206.100 |
254.000 |
224.300 |
267.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
44.700 |
298.400 |
290.500 |
420.000 |
559.600 |
|
Depreciation |
160.300 |
159.400 |
181.000 |
185.500 |
184.500 |
|
Profit Before Tax |
(115.600) |
139.000 |
109.500 |
234.500 |
375.100 |
|
Tax |
(38.700) |
50.900 |
36.000 |
63.200 |
117.400 |
|
Provisions and
contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(76.900) |
88.100 |
73.500 |
171.300 |
257.700 |
|
Extraordinary
Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period
Expenses |
0.0000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(76.900) |
88.100 |
73.500 |
171.300 |
257.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.74
|
(9.33)
|
13.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.80
|
(1.43)
|
18.22 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.18
|
(11.28)
|
20.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
(0.36)
|
0.49 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.43
|
3.05
|
1.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.87
|
2.09
|
2.28 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject is one of the manufactures of Glycols, Ethoxylates and PEGs, Performance Chemicals, Glycol Ether and Acetates, Guar Gum and Potable Alcohol. India Glycols Limited is the First company in the world to produce Ethylene Oxide (EO) / Mono Ethylene Glycol (MEG) from renewable agro route based on molasses, since 1989. The company is the manufacturers of Glycols, Ethoxylates, Performance Chemicals, Glycol Ethers and Acetates, Guar Gum and Potable Alcohol.
The company has more than 1,000 customers in various such as Textile, Agrochemical, Oil and Gas, Personal Care, Pharmaceuticals, Brake Fluids, Detergent, Emulsion Polymerisation and paints etc.
India Glycols (IGL) was promoted by Vam Organics to manufacture 20,000 tpa of
monoethylene glycol (MEG) at Kashipur, UP. It produces diethylene glycol (DEG)
and triethylene glycol (TEG) as by-products and ethylene oxide (EO) as an
intermediary
The company, controlled by Delhi based Bhartia family was incorporated as UP Glycols, a public limited company and subsequently the name was changed to India Glycols with effect from Sept.'86.
The company has its plant located at Kashipur in Uttranchal. The company has
one Subsidiary namely IGL Finance Limited The companies another subsidiary CDL
International Limited is to be amalgamated with the company as per Court
orders.
The company had technical tie-up with Scientific Design
Company, US, for the know-how to convert ethanol into MEG. Further it tied up
with Sanyo Chemical Industries Limited of
The company diversified into the manufacture of ethylene oxide
condensates/derivatives and its new plant for this at a cost of Rs.400.000
millions has commenced commercial production in Feb.'95. The Company set up an
100% Export Oriented Unit for manufacture of Guar Gum Powder and its
derivatives and it has been registered as a 100% EOU.
The company has also successfully commissioned speciality surfactants project
in collaboration with Sanyo Chemical Industries Limited in September
1997.
During 2000-2001, CDS International Limited became a subsidiary of the
company.
During 2001-02 the expansion of EO/MEG was completed and the production for the
expanded capacity has also been commenced.
In February 2005, the company commissioned enhanced capacity of MEG. The
company undertook a scheme to produce RAB (concentrated sugarcane Juice) to
product ethanol to supplement feed stock requirement for expanded capacity of
MEG. The unit will be fully completed and commissioned by December 2005.
The Hon'ble High Court of
Uttaranchal vide their order dated July 15, 2004 and Hon'ble High Court of
Karnataka vide their order dated September 12, 2005 amended on January 30, 2006
have approved the scheme of amalgamation of M/s. CDS International Limited
(100% subsidiary of India Glycols Limited) with India Glycols Limited.
During 2005-2006, the company commenced production at the newly set up facility
to manufacture RAB on 1st February 1, 2006. Production at the new industrial
gases plant commenced in January, 2006 and capacity of Oxygen, Nitrogen, Argon
are installed with 10400 NM3/Hr, 2828 NM3/Hr, 232 NM3/Hr. A new distillery
plant has been set up with an annual production capacity of 66,000 KBL, at
The company is enhancing the existing capacity of Glycol Ether division from
17000 MT to 44000 MT. Glycol Ether Acetate capacity is also increased to 18000
MT. The company is diversifying in to the field of herbal farming and for the
purpose herbal farms have been leased from Uttaranchal State Government. The
company is also setting up Herbal Extraction unit under Foreign Technology
Collaboration. The company is also adding up a Chiller Plant and carrying out
modification to use methane blast in place of nitrogen blast. The company is
setting up a Turbo Generator of 12 MW capacity.
Performance
During the year, performance of the Company has shown significant improvement
consequent to the improvement in the overall economic situation worldwide. The
price of Glycols have started showing on upward trend and have since improved
from a low of US$ 544 per MT to US$ 1005 per MT by last quarter of the year.
However, the prices of feedstock like molasses and alcohol did not come down in
line with international prices of crude oil. During the year, the performance
was adversely affected as domestic prices of their feedstock viz. molasses and
alcohol was high on account of poor availability of sugar cane, therefore, the
Company had to depend upon imported Alcohol. Consequently, Company was forced
to regulate its Glycols production and diversified toward production of high
value Ethylene Oxide Derivatives (EODs), which could provide better margins as
compared to Glycols.
Sales and other income for the year has been Rs.13455.500 Millions
compared to Rs.11412.500 Millions last year and Rs.15386.800 Millions a year
before. Profit before depreciation, exceptional item and tax for the year has
been Rs.739.000 Millions as compared to Loss of Rs.330.800 Millions last year
and Profit of Rs.3036.700 Millions a year before and net profit after tax for
the year has been Rs.200.000 Millions.
Profitability has also improved on account of reduction in interest cost
during the year. The borrowing cost of funds has reduced to Rs.321.900 Millions
as compared to Rs.770.600 Millionslast year. This has happened due to better
financial management, recourse to low cost borrowings in form of Packing Credit
in foreign exchange, Buyers' Credit and favorable exchange rate movement.
During the year, the Company produced 47864 MT of Glycols compared to
66327 MT last year. Ethylene Oxide Derivatives (EODs) production has increased
to 97804 MT compared to 65196 MT last year. Company has commissioned two
Stirred Reactor for enhancing the production capacity of Ethoxylates.
Company has produced 28844 KBL of Alcohol at its distilleries at
Kashipur and
Company has set up a Turbo Generator of 12 MW capacity at Kashipur. This
plant generates power by using high
pressure steam. This has resulted in substantial power saving and
reduced dependence on external power. Company has installed two PET Bottle
manufacturing machines at
Marketing
The Company is the largest manufacturer of Bio-MEG in the world made out
of agriculture reserves i.e. Molasses
and Ethanol. Bio-MEG has an application, apart from other products, in PET bottles used for
packaging of beverage products. Sale of Glycols has been 43677 MT compared to
63159 MT last year. The sale of Ethylene Oxide Derivatives (EODs) has been
97254 MT compared to 63908 MT last year.
Exports
During the year, the Company has achieved total export turnover of
Rs.4106.800 Millions as compared to Rs.2356.200 Millions last year. The Company
expects reasonable growth in the overall export sales in the current year.
Company has been granted `One Star Export House' status by Government of India,
Office of the Jt. Director General of Foreign Trade.
Natural gum
During the year, the Company achieved total sales of Rs.262.400 Millions
of the Natural Gum products out of which the export turnover was Rs.258.400
Millions compared to total sales of Rs. 160.400 Millions last year out of which
the export turnover was Rs.151.400 Millions. Company is diversifying into the
field of Guar Gum derivatives used for Oil Field Industry and Textile Industry.
The Company is modifying its existing Guar Gum Plant to produce value added
derivatives for Oil Field Industry, specialty derivatives for food and paper
industry and Textile Industry.
Ethyl alcohol (potable) and extra natural alohol During the year, there
has been substantial growth in the Ethyl Alcohol (Potable) segment. The Company
registered total sales of Rs.3870.700 Millions compared to Rs. 2684.500
Millions last year. Efforts are being made to further increase the sales of
Ethyl Alcohol (Potable). Company has most modern and largest captive distillery
in
Ennature
bio-pharma division (100% export oriented undertaking)
Company has set up a 100% Export Oriented undertaking 100% EOU) by the name
of Ennature Bio-pharma division.
The Company has taken 47 acres land on lease from Uttarakhand
government, where it is growing a wide variety of medicinal plants etc. It has
also set up a Supercritical Fluid Extraction facility (SCFE) at Dehradun, which
will be cGMP compliant and in the process of being cGMP and HACCP. The unit is
Kosher certified and approved by India Food and Drug Authorities (FDA). SCFE at
Dehradun has started on trial production of the plant and is in process of
stabilizing and developing various Phytopharmaceuticals and Nutraceuticals
products. The unit has received accreditation from the Indian Spices Board and
has been enrolled as members of Pharmexcil and Shellac Export Promotion
Council. This unit will be used for extraction of Dietary Food supplements,
Natural Colors, Health care fruits and vegetables, Herbal Extracts, Fruit
flavors and fragrances and Spice flavors and extracts. Future thrust is to
become supplier of more refined natural active pharmaceutical ingredients (API)
and intermediates to pharmaceutical and natural health product industries. All
these are very high value added products. Since this will be a 100% EOU, this
diversification will provide tax benefit also.
Industrial gases
The Company has also set up an Industrial Gases division producing
Oxygen, Nitrogen and Argon with an overall capacity of 13460 NM3/h. During the
year, Company produced 55095402 NM3 of Oxygen and 16119619 NM3 of Nitrogen.
Both Oxygen and Nitrogen were successfully marketed and also used for own
requirement. Industrial gases division also produced 1449028 NM3 of Argon.
The Industrial Gases division has diversified to produce food and
industrial grade liquid Carbon Di-oxide (CO2) at Kashipur Plant having
capacities of 160 MT/day each, to meet growing domestic market. Company has
produced
30394 MT of Carbon Di-oxide (CO2). During the year, Industrial Gases
segment registered total sales of Rs.233.000 Millions compared to Rs.160.700
Millions last year.
RAB (concentrated
sugarcane juice)
During the year, RAB (concentrated sugarcane juice) unit was completely
operational. Entire production of RAB consumed captively to supplement ethanol
requirement.
Expansion /
modernisation / diversification plans
The Company is actively pursuing growth opportunities and looking at
areas to reduce its cost of production. The Company is evaluating plans to
further expand its Ethoxylates capacity to improve its product mix and also
considering the setting up of a Power Plant to reduce its dependence on external
power. In addition, the Company is actively pursuing expansion opportunities
for its business other than Chemicals.
Finance
During the year, Company has raised Rupee Term Loans of Rs.2450.000
Millions to part finance the project cost of ongoing capital expenditure. The
Company has repaid total loans of Rs.2040.300 Millions, out of which Company
repaid Rupee Term Loan of Rs.1225.200 Millions and Foreign Currency Loans of
US$ 13.29 million and JPY 276.25 million equivalents to Rs.815.100 Millions.
The Company has been regular in meeting its obligations towards payment of
principal/interest to Financial Institutions/Banks/Debentureholders/Fixed
Deposit holders.
Subsidiary
companies
The Company is having controlling stake in Shakumbari Sugar and Allied
Industries Limited (SSAIL), which operates a sugar manufacturing plant in the
state of Uttar Pradesh with a crushing capacity of 5500 tones per day (TCD)
alongwith a modern distillery of 40 KL per day (KLPD) producing high quality
rectified spirit, ethanol and country liquor and an internal bagasse fired
co-generation plant of 11.4 MW catering to the captive power needs of the sugar
and distillery units.
The Company has completed first phase of expansion plan and the capacity
of sugar manufacturing plant has been enhanced from 3200 TCD to 5500 TCD and
co-generation plant capacity has been enhanced from 3 MW to 10.4 MW of power
generation. In the second phase of expansion plan, the capacity of sugar
manufacturing plant will be enhanced from 5500 TCD to 7500 TCD, the
distillery's capacity would be expanded to 85 KLPD from the present 40 KLPD for
making ethanol from molasses/ sugarcane juice and co-generation plant capacity
will be enhanced from 10.4 MW to 25.5 MW of power generation out of which
approximately 15.5 MW power generation will be used to cater the captive power
need of expanded sugar and distillery units, the surplus power of approximately
10 MW will be sold to grid.
The Company has also established a subsidiary in
MANAGEMENT
DISCUSSION AND ANALYSIS:
Products
Subject is one of the manufacturer of Glycols, Ethylene Oxide
Derivatives, Ethyl Alcohol (Potable), Natural Gum and Derivatives and
Industrial Gases. The belief in providing the desired products with the help of
the best technology is reflected in the state-of-the-art integrated manufacturing
facilities.
The manufacturing building blocks are represented :-
The Company has organised its business into chemicals and
other segments.
A.
Chemical segments comprises :-
·
Glycols (MEG, DEG, TEG and Heavy
Glycols)
·
Ethylene Oxide Derivatives (EODs)
B.
Ethyl Alcohol (Potable) and Extra Natural Alcohol
C.
Others includes High Sulphur Alcohol, Hydro Choloric Acid, Natural Gum,
Industrial Gases, Nutraceuticals and Herbal Extraction etc.
Glycols
Sales of Glycols (MEG, DEG, TEG and Heavy Glycols) has been reduced from
63159 MT to 43677 MT and in Sales Value from Rs.3216 million in FY 2008-09 to
Rs. 2323 million in FY 2009-10. Sales volume of Glycols has
been adversely affected mainly due to meltdown in the world economies,
adversely affecting Glycols demand resulting in its surplus supply globally.
However, the prices of feedstock like molasses and alcohol did not come down in
line with international prices of crude oil.
The performance was adversely affected as domestic prices of the feedstock
viz. molasses and alcohol was high on account of poor availability of sugar
cane, therefore, the Company had to depend upon imported Alcohol. Consequently,
Company was forced to regulate its
Glycols production and diversified toward production of high value Ethylene
Oxide Derivatives (EODs), which could provide better margins as compared to
Glycols.
Opportunities and
challenges
There has been substantial increase in polyester manufacturing
capacities in
Despite the recessionary trend in the international markets, there is
high demand of MEG in
In terms of challenges, there is a capacity creation in
Company, in its long term strategy, is shifting from commodity to niche
markets and speciality products and would divert EO molecule for MEG and EO
Derivative/ Speciality products which will give them a much better returns. The
market share for EODs and Speciality products have gone up from 40% to 61% over
the previous year sales. Moreover, the niche markets of BIO MEG in the packaged
water, automobile, personal care and cosmetics are going to give them better
margins.
Ethylene oxide
derivatives (EODs)
The EO Derivatives business has registered higher sales of 97254 MT from
63908 MT during previous year and in Sales Value Rs. 6754 million as compared
to Rs 5165 million in 2008-09. This has happened mainly due to increased
availability of EODs as new capacities have been commissioned during the year.
This segment accounted for 74% of company's total net revenues of Chemical
business and is highest contributor at 50% of the total revenue of the Company.
The Ethylene Oxide Derivatives produced by the company are used by
diverse industries like Textile, Agrochemicals, Detergents, Pharmaceuticals and
Personal Care, Oil Field and Automotive industry, Paint and Coating industry,
etc. The company aims to increase its business by developing new products and
applications especially in areas of Textile Chemicals, Oil field Chemicals,
Paper Chemicals, Home Care and Personal Care applications.
The thrust would be in line with the strategy to maximize EODs business
in view of increasing the usage of EO for
EO Derivatives for improved margins
Ethyl alcohol (potable) and extra natural alcohol In the Ethyl Alcohol
(Potable) and Extra natural Alcohol segment, Company registered total sales of
Rs.3871 million compared to Rs.2685 million last year and Rs. 2462 million a
year before. Efforts are being made to further increase sales in the segment.
Industrial gases
Company produced 55095402 NM3 of Oxygen and 16119619 NM3 of Nitrogen
during the year. Both Oxygen and Nitrogen were successfully marketed and also
used for own requirement of MEG Plant. Industrial gases division also produced
1449028 NM3 of Argon and 30394 MT of Carbon Di-oxide, which were marketed at
remunerative prices.
Under the Industrial Gases division, Company registered total sales of
Rs.233 million compared to Rs.161 million
last year and Rs. 147 million a year before.
Natural gum
During the year, Company produced 4159 MT of Natural Gum and achieved
total sales of Rs.262 million out of which the export turnover was Rs.258
million compared to total sales of Rs. 160 million last year out of which the
export turnover was Rs.151 million.
Financial review
During the year, performance of the Company has shown significant
improvement consequent to the improvement in the overall economic situation
worldwide. The price of Glycols have started showing on upward trend and have
since improved from a low of US$ 544 per MT to US$ 1005 per MT by last quarter
of the year. However, the prices of feedstock like molasses and alcohol did not
come down in line with international prices of crude oil. During the year, the
performance was adversely affected as domestic prices of the feedstock viz.
molasses and alcohol was high on account of poor availability of sugar cane,
therefore, the Company had to depend upon imported Alcohol. Consequently,
Company was forced to regulate its Glycols production and diversified toward
production of high value Ethylene Oxide Derivatives (EODs), which could provide
better margins as compared to Glycols.
Sales and other income for the year has been Rs.13455.500 Millions
compared to Rs.11412.500 Millions last year and Rs.15386.800 Millions a year
before. Profit before depreciation, exceptional item and tax for the year has
been Rs.739.000 Millions as compared to Loss of Rs.330.800 Millions last year
and Profit of Rs.3036.700 Millions a year before and net profit after tax for
the year has been Rs.200.000 Millions.
Profitability has also improved on account of reduction in interest cost
during the year. The borrowing cost of funds has reduced to Rs.321.900 Millions
as compared to Rs.770.600 Millions last year. This has happened due to better
financial management, recourse to low cost borrowings in form of Packing Credit
in foreign exchange, Buyers' Credit and favorable exchange rate movement.
During the year, Company has raised Rupee Term Loans of Rs.2450 million to
part finance the project cost of ongoing capital expenditure. The Company has
repaid total loans of Rs.2040 million, out of which Company repaid Rupee Term
Loan of Rs.1225 million and Foreign Currency Loans of US$ 13.29 million and JPY
276.25 million equivalents to Rs.815 million.
During the year, the gross fixed assets have been increased to Rs.12204
million from Rs.10861 million in 2008-09.
Company has been regular in meeting its obligations towards payment of
principal/interest to Financial Institutions/Banks/Debenture holders/Fixed
Deposit holders.
RESEARCH and
DEVELOPMENT CENTRE (R and D)
Innovation has been the key driver of the business in the Company,
facilitating value addition to the customers via
new products and new processes. Innovation strategy of IGL has always
been architectured in line with the vision and mission of the organization i.e.
to establish the company as a "solution provider". The
state-of-the-art R and D Centre at Kashipur is equipped with most modern and
advanced instruments and a pool of highly experienced and dedicated scientists.
These scientists are continuously engaged in developing next generation
environment friendly products and in turn creating high growth opportunities
for the business. Needless to mention that the ability to respond rapidly and
flexibly has made them preferred partner with most of the important customers.
Apart from new product and application development, RandD center is also
working on the continuous improvement / modification of existing products and
process technologies and on the import substitution as well, in order to
transfer the maximum benefits to the customers so that the solution truly meets
the market need.
The R and D Centre is duly recognized by the Department of Science and
Technology(DST), Government of India allowing them to participate in research
programs of national interest.
At present, the focus of R and D center has been in working with
customized projects for various industrial applications such as;
1. Textile
Processing (Fiber and Fabric processing)
Development of Cost-effective next generation Spin Finishes,
Biodegradable and user friendly Scouring Agents, Enzyme base Products for
desizing and Bioscouring, New ultralow foaming mercerizing agent and
Insitu-Zwitterionic Softener.
2. Crop-Protection
Business
Development of Water Retention Aid for Desert Gardening, Emulsifier for
newly introduced combo pesticide formulation,
Wetting and dispersing agent for powder pesticide formulation, Emulsifier for
suspension concentrate, Emulsifier for "Emulsion in Water (EW)"
formulation and Biodegradable Surfactants for WDG.
3. Oil and Gas
Industry
Development of Low temperature and low doge demulsifier for crude oil,
Drilling fluid additive, Low dosage Biocides, Green Demulsifiers for Crude oil,
Cost effective Scale Inhibitors and Corrosion inhibitors for refinery.
4. Fertilizer and
Cement industry
Development of Anti-caking agent (oil soluble) for DAP / NPK fertilizer,
Strength improver for Cement, Import Substitute of Ceramic Tile Printing and
Nonionic Oil / Water Soluble Defoamer for phosphatic fertilizer.
5. Emulsion
Polymerization and Paint Industry
Development of Specialty surfactant for pigment dispersion,
Biodegradable emulsifier for emulsion polymerization and Defoamer for paint
formulation.
6. Paper Industry
Development of Dry strength resin, Deinking chemicals for recycle paper
(floatation process), Defoamer for paper
machine and Low dosage cost effective cooking aid.
7. Automobile
industry
Development of Lubricant additives and Engine Coolant with Hybrid
Technology.
8. Detergent /
Personal care Industry
Development of Biodegradable nonionic surfactant for house-hold cleaning
and personal care and Surfactant for
acid thickener.
9. Mining /
Development of cost effective binder for ore beneficiation.
10. Low PEG
Ethoxylates
Development of Low PEG content Environment Friendly higher mole
Ethoxylates. The most important product development principle of IGL's R and D
has been to focus on 3 Es i.e. Efficiency; Economic and Environment
friendliness. The R and D not only develops the products as per the need of the
customers but also ensures the smooth
operation of the products at customers' end, further more the life cycle
analysis and biodegradability is ensured.
UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER ENDED 30TH JUNE, 2011
(Rs. in millions)
|
Particulars |
Quarter
Ended |
Year
Ended |
|
|
30.06.2011 (Unaudited) |
30.06.2010 (Unaudited) |
31.03.2011 (Audited) |
|
|
Gross Sales/Income
from Operations |
|
|
|
|
- Domestic |
4304.900 |
2254.200 |
11147.200 |
|
- Export |
2654.100 |
1606.800 |
7046.200 |
|
Total |
6959.000 |
3861.000 |
18193.400 |
|
Less: Excise Duty |
869.900 |
543.200 |
2305.600 |
|
1. Net Sales/Income from Operations |
6089.100 |
3317.800 |
15887.800 |
|
2. Other Operating
Income) (Loss) |
224.800 |
62.500 |
399.300 |
|
3. Total Expenditure |
|
|
|
|
a) (Increase)/
Decrease in Stocks |
584.800 |
290.300 |
(227.400) |
|
b) Consumption of
Raw Materials |
1732.900 |
1616.400 |
8489.500 |
|
c) Purchase of
goods for trading |
1475.800 |
42.900 |
829.300 |
|
d) Employees cost |
166.500 |
139.100 |
650.600 |
|
e) Power &
fuel |
716.300 |
472.100 |
2369.300 |
|
f) Depreciation |
184.500 |
160.300 |
686.200 |
|
g) Others |
812.000 |
596.800 |
2265.600 |
|
Total Expenditure |
5672.800 |
3317.900 |
15063.100 |
|
4. Profit / (Loss)
from Operations before Other Income, Interest and Exceptional Items |
641.100 |
62.400 |
1224.000 |
|
5. Other Income/
(Loss) |
1.800 |
0.700 |
6.500 |
|
6. Profit /
(Loss) from Operations before Interest and Exceptional Items |
642.900 |
63.100 |
1230.500 |
|
7. Interest (Net) |
267.800 |
178.700 |
863.100 |
|
8. Profit/ (Loss) after interest but before Exceptional
Items |
375.100 |
(115.600) |
367.400 |
|
9. Exceptional Items includes unrealized Foreign exchange
gain/ (loss) |
-- |
-- |
-- |
|
10. Profit/ (Loss) before Tax |
375.100 |
(115.600) |
367.400 |
|
11. Tax Expenses (Net) (includes deferred tax provision of
Rs.117.400 millions) |
117.400 |
(38.700) |
111.400 |
|
12.
Profit/ Loss from Ordinary Activities |
257.700 |
(76.900) |
256.000 |
|
13.
Cash Profit/ (Loss) |
559.600 |
44.700 |
1053.600 |
|
14. Paid-up Equity
Share Capital (Face value - Rs. 10)- per share) |
278.800 |
278.800 |
278.800 |
|
15. Reserves
excluding revaluation reserves (as per balance sheet of previous accounting
year) |
-- |
-- |
3867.800 |
|
16. Basic/ Diluted
EPS after exceptional items for the period - not annualised (in Rs.) |
9.24 |
(2.76) |
9.18 |
|
17. Aggregate of
Public Share holding |
|
|
|
|
- Number of Shares |
12871709 |
13353850 |
12948694 |
|
- Percentage of
Share holding |
46.16% |
47.89% |
46.44% |
|
18. Promoters and
promoter group shareholding |
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
- Number of shares |
160000 |
160000 |
160000 |
|
- Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
1.07% |
1.10% |
1.07% |
|
- Percentage of
shares (as a % of the total share capital of the company) |
0.57% |
0.57% |
0.57% |
|
b) Non encumbered
shares |
|
|
|
|
- Number of shares |
14850791 |
14368650 |
14773806 |
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
98.93% |
98.90% |
98.93% |
|
- Percentage of
shares (as a % of the total share capital of the company) |
53.26% |
51.53% |
52.99% |
SEGMENT WISE REVENUE, RESULTS
AND CAPITAL EMPLOYED
(Rs. in millions)
|
Particulars |
Quarter
Ended |
Year
Ended |
|
|
30.06.2011 (Unaudited) |
30.06.2010 (Unaudited) |
31.03.2011 (Audited) |
|
|
Segment Revenue |
|
|
|
|
- Chemicals |
5379.100 |
2857.900 |
13967.800 |
|
- Ethyl Alcohol
(Potable) |
1101.300 |
850.800 |
3420.100 |
|
- Others |
478.600 |
152.300 |
805.500 |
|
Total |
6959.000 |
3861.000 |
18193.400 |
|
|
|
|
|
|
Segment Profit) (Loss) before Interest and
Tax |
|
|
|
|
- Chemicals |
551.900 |
132.300 |
1088.000 |
|
- Ethyl Alcohol
(Potable) |
50.300 |
73.900 |
349.900 |
|
- Others |
86.400 |
3.100 |
(31.400) |
|
Total |
688.600 |
209.300 |
1406.500 |
|
Less: |
|
|
|
|
- Interest (Net) |
267.800 |
178.700 |
863.100 |
|
- Unallocated
corporate expenses net of unallocable income |
45.700 |
146.200 |
176.000 |
|
Profit / (Loss)
before tax |
375.100 |
(115.600) |
367.400 |
|
Capital Employed (Segment assets-segment
liabilities) |
|
|
|
|
- Chemicals |
13818.400 |
11120.800 |
13785.600 |
|
- Ethyl Alcohol
(Potable) |
937.200 |
834.100 |
958.300 |
|
- Others |
1626.800 |
1258.800 |
1457.100 |
|
Total |
16382.400 |
13213.700 |
16201.000 |
Notes:
1. The Plant was
under shut down for 2 weeks during the quarter for Catalyst change and annual
maintenance.
2. Based on technical
evaluation, the Company, during December2010 quarter, changed the amortization
method for catalyst from period based to production based. This has immaterial
impact on the above financial results for the quarter.
3. Remuneration paid
to the Chairman and Managing Director is subject to Shareholders and Central
Government approval.
4. Information on
investors complaints for the quarter - (Nos.): Opening balance-Nil, New-6,
Disposal-6, Closing Balance-Nil.
5. Previous periods figures
have been regrouped wherever considered necessary.
6. The above results
were reviewed by the Audit committee and have been approved by the Board of
Directors in its
meeting held on 16th July, 2011.
7. The Statutory
Auditors have carried out a limited review of the above financial results.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2010 Rs. In Millions |
|
In respect of:- Income Tax Matters |
-- |
|
Central Excise/
State Excise |
74.348 |
|
Customs |
23.335 |
|
Services Tax and
Others |
16.485 |
(ii) Claims
against the Company not acknowledge as debts amounting to Rs.32.031
millions.
(iii) Bills
discounted with Banks Rs.275.709 millions.
(iv) Corporate
Guarantee to banks for loans availed by Shakumbari Sugar and Allied Industries Limited
(a subsidiary company) amounting to Rs.2251.300 millions.
FIXED ASSETS:
v Land
v
v
Buildings
v
Plant and Machinery
v
Furniture and Fixtures
v
Vehicles
v
Specialised Computer Software
WEBSITE DETAILS
BUSINESS DESCRIPTION:
Subject is an India-based company engaged in the manufacture
of glycols, ethylene oxide derivatives, ethyl alcohol (potable), natural gum
and derivatives and industrial gases. The Company operates through three
business segments: chemicals, liquor and others. Chemicals segment is engsged
in the manufacturing and selling of ethylene glycol, di-ethylene glycol, heavy
glycol and ethylene oxide (EO) derivatives. Liquor segment comprises
manufacture and sale of ethyl alcohol (Potable). Others segment includes guar
gum, software development and Ennature Bio-pharma. Its subsidiaries include
Shakumbari Sugar Allied Industries Limited (SSAIL), IGL Chem International PTE.
LIMITED and IGL Finance Limited. For the fiscal year ended 31 March 2010, India
Glycols Limited's revenues increased 17% to RS12.38B. Net income totaled
RS60.1M, vs. a loss of RS1.09B. Revenues reflect an increase in income from
chemicals, Ethyl Alcohol and Other business segments. Net income reflects a
decrease in rent expenses, decrease in rates and taxes expenses, decrease in
traveling and conveyance expenses and decrease in directors fees.
PROFILE:
Subject is a company
that manufactures green technology based bulk, specialty and performance
chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals.
The company was established
as a single mono-ethylene glycol plant in 1983. Since then, IGL has brought
together cutting-edge technology, innovation and an unflagging commitment to quality,
to manufacture a wide range of products that have found global demand.
Subject
state-of-the-art, integrated facilities manufacture chemicals including
glycols, ethoxylates, glycol ethers and acetates, and various performance
chemicals. Its product range spans the chemicals, spirits, herbal and other
phytochemical extracts and guar gum, industrial gases an
These products are
manufactured in compliance with stringent global standards of plant operations,
quality and safety. The company’s facilities have been approved and certified
by international agencies including Det Norske Veritas (DNV). The operations at
all plants are closely monitored through distributed control systems (DCS),
which facilitate a high degree of control over the quality of products.
IGL businesses
Subject flagship
chemicals division started out with a path-breaking green approach to manufacturing
ethylene oxide and derivatives. Using the molasses-ethyl alcohol-ethylene
'green route', the company is the only one of its kind in the world. With the
emphasis now increasingly shifting to green manufacturing, the chemical
division is well poised to meet the industry’s need for environmentally
responsible products and production techniques.
Keeping in mind the
critical dependence on agricultural feedstock, the company has taken up several
initiatives including backward integration into sugar manufacturing to ensure
seamless raw material availability. Other complementary initiatives include
co-opting the cane growing community to ensure cane availability while
providing adequate returns to the farmer.
Apart from
chemicals, Subject has a significant presence in the natural active
pharmaceuticals and nutraceuticals space with Ennature Biopharma; a
well-established natural gum division manufacturing guar gum and a variety of
derivatives; a spirits division that manufactures country and Indian-made
foreign liquor adhering to the highest quality standards; and Shakumbari Sugar
– a well-established player in the Indian sugar industry.
Exports
Subject has traditionally looked to leverage the export potential of its
products. The company has therefore initiated the process of aligning to
emerging global trends and has established facilities and operations that are
in compliance with global good manufacturing practices.
BOARD OF DIRECTORS
U. S. Bhartia
Chairman of the
Board, Managing Director
Shri. U.S. Bhartia is Chairman of the Board, Managing
Director of Subject
Jayshree Bhartia
Non-Executive
Director
Smt. Jayshree Bhartia serves as Non-Executive Director of Subject She holds Bachelor of Arts Degree. She is Director of Kashipur Holdings Limited, IGL Finance Limited She is a member of Share Transfer Committee, Investors Grievance Committee.
Independent Director
Shri. Ravi Jhunjhunwala has been appointed as Independent
Director of India Glycols Limited, on 26th October, 2009. Shri. Jhunjhunwala
Manages Rs.36000.000 millions LNJ Bhilwara Business Group. He is a Commerce
Degree Graduate from
Jagmohan N. Kejriwal
Non-Executive
Independent Director
Shri. Jagmohan N. Kejriwal serves as Non-Executive Independent Director of Subject He holds Master of Arts in Economics degree. He is Member of Audit Committee, Share Transfer Committee, Investors Grievance Committee.
Pradip Kumar Khaitan
Non-Independent
Non-Executive Director
Shri. Pradip Kumar Khaitan serves as Non-Independent Non-Executive Director of Subject He Holds L.L.B. degree. Mr. P.K. Khaitan is a Lawyer, Senior Partner of the legal firm, Khaitan and Co, besides on the Board of several other companies. He is Director of Emaar MGF Land Limited., CESC Limited., OCL India Limited., DaImia Cement (Bharat) Limited, Electrosteel Castings Limited., Gillanders Arbuthnot and Company Limited., Graphite India Limited., Hindustan Motors Limited., South Asian Petrochem Limited., Pilani Investment and Indus Corporation Limited, Woodlands Medical Centre Limited., Lanco Industries Limited., Suzlon Energy Limited., VISA Steel Limited. He is Chairman of Audit Committee and Member-Investors Grievance Committee of Emaar MGF Land Limited He is Member of Investors Grievances Committee of Hindustan Motors Limited He is Member of Audit Committee of Pilani lnv. and lnd. Corporation Limited He is Member of Audit Committee and Investors Grievances Committee of Suzlon Energy Limited He is Member of Selection Committee of VISA Steel Limited
Autar Krishna
Non-Executive
Independent Director
Shri. Autar Krishna serves as Non-Executive Independent Director of India Glycols Limited. He is an Industrialist. He holds Directorships in Sak Industries Limited, Sak Soft Limited, Sak Technologies Limited, Panasonic AVC, Networks India Company Limited, Acuma Holdings Limited, Acuma Solutions Limited, Acuma Software Limited.
R. C. Misra
Non-Executive
Independent Director
Shri. R. C. Misra serves as Non-Executive Independent Director of Subject He is member of Borrowing Committee and Chairman of Investor's Grievance Committee, Audit Committee. He is in Indirect and Direct Taxation, Former Chairman. Central Board of Excise and Customs. He holds Directorships in Vaishali International Management and Resources Limited and Onida Saka Limited
M. K. Rao
Executive Director
Shri. M.K. Rao was appointed as Executive Director of
Subject w.e.f. 1st May, 2008. Shri M.K. Rao is involved in the day to day
management of the Manufacturing Plant at Kashipur and various on-going projects
with regard to conception, planning and execution thereof and has been guiding
the activities all through. Shri M.K. Rao is B.Tech. (Chemical Engineering)
from
MILESTONES
Set up in 1983, India Glycols has come a long way in establishing itself
as a chemicals manufacturer. Here are some of the key milestones the company
has achieved along its journey:
1983
Incorporated on 19th November 1983, as UP Glycols Limited.
1986
Renamed as Subject on 28th August 1986.
1989
Commercial production commenced at MEG plant from 25th April 1989: capacity,
20,000MTPA.
1994
Commissioning of 13,000MTPA EO purification plant.
Commissioning of 20,000MTPA ethoxylate plant.
1995
De-bottlenecking of MEG facility (20,000 to 25,000 MTPA).
1997
Commissioning of 10,000MTPA formulation plant.
1998
De-bottlenecking of MEG facility (25,000 to 30,000 MTPA).
Commissioning of 6,000MTPA sulphation plant.
1999
Commissioning of 85,000 BL PD new continuous process distillery.
De-bottlenecking of MEG facility (30,000 to 33,000 MTPA).
Increase in power generation capacity (6 to 18 MW).
2001
Commissioning of glycol ether plant.
Commissioning of guar gum facility, 12,000MTPA capacity.
2002
Commissioning of bottling plant.
Expansion of MEG plant to 60,000MTPA.
2003
Addition of GE acetate facility.
Commissioning of ENA plant.
2005
Expansion of MEG production to 1 lakh MTPA.
Commissioning of ASU - III.
Commissioning of RAB unit.
2006
Commissioning of
2007
Acquisition of Shakumbhari Sugar.
2008
Commissioning of CO2 plant.
Expansion of MEG plant to 200,000MTPA.
2009
Commissioning of Ennature Biopharma, Dehradun.
Commissioning of DEGEE acetate plant.
Expansion of formulation plant - CABS.
Expansion of ethoxylate plant (stirred reactor).
2010
“The Biomass based Cogeneration Project at
AWARDS:
|
1991 |
|
|
Award |
National Safety Award for meritorious
performance in industrial safety, in achieving longest accident-free period |
|
National Safety Award for outstanding
performance in industrial safety as runner up in achieving lowest average
frequency rate |
|
|
Organisation |
Ministry of Labour, Government of |
|
|
|
|
1992 |
|
|
Award |
Award of Merit for operating
27,55,364 employee hours without occupational injury or illness |
|
Organisation |
National Safety |
|
|
|
|
1997 |
|
|
Award |
Award for Best Project / Entrepreneur in the
biomethanation sector. |
|
Organisation |
Ireda |
|
|
|
|
1998 |
|
|
Award |
Safety Award in recognition
and commendation of services rendered to the cause of safety |
|
Organisation |
British Safety |
|
|
|
|
1999 |
|
|
Award |
Safety Award in recognition
and commendation of services rendered to the cause of safety |
|
Organisation |
British Safety |
|
|
|
|
2000 |
|
|
Award |
Safety Award in recognition and
commendation of services rendered to the cause of safety |
|
Organisation |
British Safety |
|
|
|
|
2001 |
|
|
Award |
Safety Award in recognition
and commendation of services rendered to the cause of safety |
|
Organisation |
British Safety |
|
|
|
|
2002 |
|
|
Award |
Safety Award in recognition
and commendation of services rendered to the cause of safety |
|
National Safety Award for outstanding
performance in industrial safety, in achieving longest accident-free period. |
|
|
Perfect Record Award for operating
7,208,784 employee hours without occupational injury or illness |
|
|
Organisations |
British Safety |
|
Ministry of Labour, Government of |
|
|
National Safety |
|
|
|
|
|
2004 |
|
|
Award |
Best Performing Power Plant |
|
International Safety Award in recognition
of proven track record of maintaining excellent safety standards. |
|
|
Organisations |
Wartsila |
|
British Safety |
|
|
|
|
|
2005 |
|
|
Award |
International Safety Award in recognition
and commendation of services rendered to the cause of safety. |
|
Organisation |
British Safety |
|
|
|
|
2008 |
|
|
Award |
Best Quality ENA Award in recognition
of quality ENA production. |
|
Best Enhanced Performance for enhanced
performance in exports, northern region |
|
|
Organisations |
Ciab |
|
Concor |
PRESS RELEASES:
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.43.95 |
|
|
1 |
Rs.72.12 |
|
Euro |
1 |
Rs.63.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
58 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.