MIRA
INFORM REPORT
|
Report Date : |
08.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
GHCL LIMITED |
|
|
|
|
Registered
Office : |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009,
Gujarat |
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|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
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|
|
|
Date of
Incorporation : |
14.10.1983 |
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|
|
|
Com. Reg. No.: |
04-006513 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1000.193 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24100GJ1983PLC006513 |
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|
|
|
IEC No.: |
0588091529 |
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|
|
PAN No.: [Permanent Account No.] |
AAACG5609C |
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|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed on Stock
Exchange. |
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Line of Business
: |
Manufacturer of Soda Ash and Salt (Industrial and Edible). |
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|
|
|
No. of Employees
: |
3087 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 38000000 |
|
|
|
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Usually Correct |
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|
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having satisfactory track record.
The company is doing well. Trade relations are reported as fair. Business is
active. Payments are reported to be usually correct and as per commitment. The company can be considered normal for business dealings at usual
trade terms and conditions. Note: SEBI has found
that GHCL Limited have been reporting false shareholding details of the
promoters in their quarterly filling with stock exchange in the year 2009. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries, and
a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB (Long Term Bank Facility) |
|
Rating Explanation |
Moderate degree of safety. It carry moderate credit risk. |
|
Date |
21.11.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A3 (Short Term Bank Facility) |
|
Rating Explanation |
Moderate degree of safety. It carry higher credit risk. |
|
Date |
21.11.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad-380009, |
|
Tel. No.: |
91-118-4535335 |
|
Fax No.: |
91-118-4535209 |
|
E-Mail : |
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|
Website : |
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Corporate Office : |
“GHCL House” B-38, Institutional Area, Sector – 1, Noida - 201 301, Uttar Pradesh, India |
|
|
|
|
Work 1 : |
Soda ash Plant, Village Sutrapada, Near Vereval, District Junagadh –
362275, |
|
|
|
|
Work 2 : |
Salt Works and Refinery
|
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Textiles : |
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Energy Division : |
|
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Sanjay Dalmia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Anurag Dalmia |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Neelabh Dalmia |
|
Designation : |
Director |
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|
|
|
Name : |
Dr. B.C. Jain |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K.C. Jani |
|
Designation : |
Nominee (IDBI) |
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|
|
|
Name : |
Mr. R M W Raman |
|
Designation : |
Nominee (Exim Bank) |
|
|
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|
Name : |
Mr. Surendra Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. C. Srivastava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahesh Kheria |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Sanjiv Tyagi |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S.H. Ruparell |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R. S. Jalan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Raman Chopra |
|
Designation : |
Executive Director (Finance) |
KEY EXECUTIVES
|
Name : |
Mr. Bhuwneshwar Mishra |
|
Designation : |
General Manager and Company Secretary |
|
|
|
|
Name : |
Mr. Manoj Kumar Ishwar |
|
Designation : |
Manager (Secretarial) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11943984 |
11.94 |
|
|
152000 |
0.15 |
|
|
152000 |
0.15 |
|
|
12095984 |
12.09 |
|
|
|
|
|
|
5507900 |
5.51 |
|
|
5507900 |
5.51 |
|
Total shareholding of Promoter and Promoter Group (A) |
17603884 |
17.60 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16913 |
0.02 |
|
|
133483 |
0.13 |
|
|
6208120 |
6.21 |
|
|
4952254 |
4.95 |
|
|
11310770 |
11.31 |
|
|
|
|
|
|
32377205 |
32.37 |
|
|
|
|
|
|
22007925 |
22.00 |
|
|
12447808 |
12.45 |
|
|
4271694 |
4.27 |
|
|
52680 |
0.05 |
|
|
3900 |
0.00 |
|
|
189717 |
0.19 |
|
|
2016821 |
2.02 |
|
|
485002 |
0.48 |
|
|
1350816 |
1.35 |
|
|
115915 |
0.12 |
|
|
56843 |
0.06 |
|
|
71104632 |
71.09 |
|
Total Public shareholding (B) |
82415402 |
82.40 |
|
Total (A)+(B) |
100019286 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
100019286 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Soda Ash and Salt (Industrial and Edible). |
|
|
|
PRODUCTION STATUS As on 31.03.2012
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Soda Ash |
MT |
850000 |
711706 |
|
Refined Salt |
MT |
72000 |
42769 |
|
Yarn Spindles |
NOS |
148280 |
12488 |
|
Cloths –Job Work+ Own Production |
MTRS (‘000) |
-- |
38352 |
|
Bicarb – (Production from Soda Ash) |
MT |
-- |
23369 |
|
Bed Sheet Sets – Job Works |
MTRS (‘000) |
-- |
24616 |
|
Sodium Bicarbonate |
MT |
27,000 |
-- |
|
Wind Turbine Generators |
MW PER HOUR |
8 |
-- |
|
Cloth Looms |
NOS |
96 |
-- |
|
Cloth Processing |
MTRS (‘000) |
34000 |
-- |
GENERAL INFORMATION
|
No. of Employees : |
3087 (Approximately) |
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Bankers : |
· State Bank of Travancore · IDBI Bank Limited · Canara Bank · State Bank of Hyderabad · State Bank of Patiala · Export Import Bank of India · State Bank of India · State Bank of Mysore · Andhra Bank · Bank of Maharashtra · Tamilnad Merchantile Bank Limited · State Bank of Bikaner and Jaipur · Union Bank of India · Jammu and Kashmir Bank Limited · Bank of India |
|||||||||||||||||||||||||||||||||||||||
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Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Jayantilal Thakkar and Company Chartered Accountants Rahul Gautam Divan and Associates Chartered Accountants |
|
|
|
|
Subsidiaries : |
· Indian England N V, the Netherlands · Indian Wales NV, the Netherlands · Colwell and Salmon Communications Inc. · Indian Britain B.V. · Indian England N.V. · Indian Wales N.V. · Dan River Properties LLC · Grace Home Fashions LLC · GHCL Rosebys Limited · Rosebys UK Limited · S C GHCL Upsom SA (Under administration since 21st November, 2011) · Rosebys Interiors India Limited · Teliforce Holding India Limited · GHCL Inc.(Dissolved as at 14th May, 2012) · Textile and Design Limited (under Liquidation since 28th September, 2009) · Fabient Textile Limited (Dissolved as at 31st January, 2012) · Rosebys International Limited (Dissolved as at 31st January, 2012) · GHCL International Inc. (Dissolved as at 13th September, 2011) |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs.1750.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100019286 |
Equity Shares |
Rs.10/- each |
Rs.1000.193
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1000.193 |
1000.193 |
1000.193 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8615.520 |
9194.660 |
10848.288 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9615.713 |
10194.853 |
11848.481 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11738.872 |
12244.088 |
11097.717 |
|
|
2] Unsecured Loans |
121.857 |
963.447 |
740.778 |
|
|
3] Unsecured Foreign Currency Convertible Bonds |
0.000 |
0.000 |
1302.390 |
|
|
TOTAL BORROWING |
11860.729 |
13207.535 |
13140.885 |
|
|
DEFERRED TAX LIABILITIES |
1663.431 |
1711.945 |
1341.112 |
|
|
|
|
|
|
|
|
TOTAL |
23139.873 |
25114.333 |
26330.478 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
18724.038 |
19500.242 |
20240.804 |
|
|
Capital work-in-progress |
150.654 |
45.432 |
36.291 |
|
|
|
|
|
|
|
|
INVESTMENT |
287.345 |
250.340 |
591.784 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Other Non Current Assets |
93.863 |
32.758 |
0.000 |
|
|
ADVANCES AGAINST CAPITAL EXPENDITURE |
0.000 |
0.000 |
20.512 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3245.273
|
3831.918
|
3109.648
|
|
|
Sundry Debtors |
1894.925
|
1880.174
|
1517.024
|
|
|
Cash & Bank Balances |
301.126
|
314.412
|
249.748
|
|
|
Other Current Assets |
38.510
|
0.000
|
0.000
|
|
|
Loans & Advances |
3025.153
|
3453.292
|
3189.778
|
|
Total
Current Assets |
8504.987
|
9479.796 |
8066.198
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2298.128
|
2295.978
|
1735.991
|
|
|
Other Current Liabilities |
1967.813
|
1528.527
|
652.612
|
|
|
Provisions |
355.073
|
369.730
|
236.712
|
|
Total
Current Liabilities |
4621.014
|
4194.235 |
2625.315
|
|
|
Net Current Assets |
3883.973
|
5285.561 |
5440.883 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.204 |
|
|
|
|
|
|
|
|
TOTAL |
23139.873 |
25114.333 |
26330.478 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
18967.315 |
14981.715 |
11915.843 |
|
|
|
Income From Services |
0.000 |
0.000 |
223.708 |
|
|
|
Other Income |
96.266 |
132.955 |
115.058 |
|
|
|
TOTAL (A) |
19063.581 |
15114.67 |
12254.609 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material consumed |
7707.482 |
5936.142 |
9222.572 |
|
|
|
Purchase of Stock-in-trade |
920.143 |
185.590 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(243.541) |
(251.466) |
|
|
|
|
Employees benefits expenses |
999.252 |
956.738 |
|
|
|
|
Others expenses |
5835.642 |
4790.412 |
|
|
|
|
TOTAL (B) |
6834.894 |
5747.150 |
9222.572 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3844.603 |
3497.254 |
3032.037 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1849.615 |
1104.348 |
1054.494 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1994.988 |
2392.906 |
1977.543 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
808.486 |
843.955 |
761.118 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1186.502 |
1548.951 |
1216.425 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
11.707 |
385.697 |
(192.030) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1174.795 |
1163.254 |
1408.455 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1457.027 |
2378.607 |
2843.111 |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD
ADJUSTMENTS |
1.889 |
6.429 |
(1.129) |
|
|
|
|
|
|
|
|
|
|
EXCESS PROVISION
FOR TAX FOR EARLIER YEARS |
20.023 |
7.552 |
2.196 |
|
|
|
|
|
|
|
|
|
|
TRANSFERRED
FROM GENERAL RESERVE AS PER SCHEME OF ARRANGEMENT |
0.000 |
0.000 |
1662.224 |
|
|
|
|
|
|
|
|
|
|
RECEIVABLES/
BALANCES WRITTEN OFF AS PER SCHEME OF ARRANGEMENT |
0.000 |
0.000 |
(1662.224) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10000.000 |
116.325 |
140.845 |
|
|
|
Transfer to General Reserve as per Scheme
of Agreement |
0.000 |
1750.000 |
1500.000 |
|
|
|
Proposed Dividend |
200.039 |
200.039 |
200.039 |
|
|
|
Tax on Dividend |
32.451 |
32.451 |
33.224 |
|
|
BALANCE CARRIED
TO THE B/S |
1421.244 |
1457.027 |
2378.525 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of finished goods of FOB basis |
5206.334 |
2545.818 |
2222.685 |
|
|
|
Recovery towards freight etc. on exports |
68.987 |
45.681 |
128.701 |
|
|
|
Export income from services |
0.000 |
12.969 |
34.830 |
|
|
|
Others |
3.047 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
5278.368 |
2604.468 |
2386.216 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Utilities |
820.262 |
832.042 |
1058.672 |
|
|
|
Components and spare parts |
46.081 |
99.304 |
73.186 |
|
|
|
Capital Goods |
72.861 |
86.731 |
90.974 |
|
|
|
Trading Goods |
330.619 |
83.868 |
0.000 |
|
|
TOTAL IMPORTS |
1269.823 |
1101.945 |
1222.832 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
11.96 |
11.77 |
14.09 |
|
|
|
Diluted |
11.96 |
11.20 |
-- |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2012 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
5506.260 |
5460.830 |
|
Total Expenditure |
|
4594.71 |
4682.880 |
|
PBIDT (Excl OI) |
|
911.550 |
777.950 |
|
Other Income |
|
7.870 |
3.250 |
|
Operating Profit |
|
919.420 |
781.200 |
|
Interest |
|
397.420 |
364.890 |
|
PBDT |
|
522.000 |
416.310 |
|
Depreciation |
|
196.840 |
209.680 |
|
Profit Before Tax |
|
325.160 |
206.630 |
|
Tax |
|
32.50 |
42.500 |
|
Profit After Tax |
|
292.660 |
164.130 |
|
Net Profit |
|
292.660 |
164.130 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
6.16
|
7.70 |
11.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.22
|
10.25 |
56.85
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.36
|
5.34 |
4.30
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.15 |
0.10
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.71
|
1.71 |
1.33
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.84
|
2.26 |
3.07
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
PERFORMANCE
HIGHLIGHTS
Soda Ash
The Global Soda Ash demand which was around 46-48 million tons in 2010 is estimated to be slightly more than 50+ million metric tons in 2011 against a capacity of about 57 Million MT.
They are seeing demand growth, despite the fact that the market is currently oversupplied specially from China. The world soda ash demand grew at an average annual rate of slightly more than 3%. China grew more than 7% and Rest of the world registered a growth of 1%. The demand for soda ash is forecast to grow about 3 to 4 percent per year over the next five years and this growth is expected to come from Latin America, India, China and Middle East countries due to higher GDP growth. Consumption of soda ash per person is expected to register healthy rise in the next few years with China leading the rankings with consumption from 10.85 kilograms in 2007 to an expected 12.00 kilograms in 2012.China is the largest Soda Ash player in the world, having a capacity of 27-28 Million MT which is around 50% of the global capacity. As per IHS Chemical report of February 2012 China’s operating rates were around 84% in 2011, reporting a production of 24 million tons and domestic consumption of 22 million tons. There is an extremely sharp increase in input costs for soda ash manufacturers in all regions. Consequently, supported by rising demand and cost pressures prompted soda ash manufacturers to raise the sales prices of soda ash in 2011.
The biggest threat to the global soda ash industry is the global economic outlook, which remains quite delicate. The state of the global economy, combined with the role that China will continue to play in the market, is key to the future health of the soda ash industry. If the economies continue to stagnate, the demand for soda ash could fall, and they could see prices weaken and capacities idled.
The slow industrial growth of the Indian economy was witnessed in Soda Ash also as demand growth was almost flat in 2011-12 (approximately 1-2 %). But despite low GDP growth figure of 6.9 per cent, India remains one of the fastest growing economies of the world as all major countries including the fast growing emerging economies are seeing a significant slowdown. It is expected that on the back of higher GDP growth projected and strong growth in Glass (Construction/Automobiles) and Detergents (FMCG penetration and growth) Soda Ash demand will continue to grow at least 4-5 per cent in the FY 12-13.
Total installed capacity in India was 3.1 Million MT. With an estimated production of about 2.6 Million MT in last financial year (2011-12) the capacity utilization was around 81%. The total size of the Indian soda ash market is about 2.7 Million MT.
Dumped import of Soda Ash from China PR, EU, Kenya, Iran, Pakistan, Turkey, USA and Ukraine has been a major concern for the Soda Ash Industry. Based on an application by the domestic producers of Soda Ash, the Director General of Anti-dumping and Allied Duties (“DGAD”) had recommended the imposition of anti-dumping duty on imports of Soda Ash from the above Countries, which has been upheld by the Hon’ble High Court of Madras vide their order dated April 27, 2012. Now, the Ministry of Finance is expected to issue a notification imposing duty on imports of the Soda Ash from the above countries based on the final finding issued by the DGAD.
At present the Soda Ash plant has a capacity of Rs.0.850 Million MTPA. During the financial year 2011-12 the company has achieved highest production around Rs.0.712 Million MT. This year, the Company has also achieved highest domestic sales i.e. Rs.0.602 Million MT and total sales of Soda Ash is Rs.0.667 Million MT including exports.
Bi-Carbonate (BICARB)
During the year, the Company achieved production of Bi- Carbonate 23369 tons against 22378 tons in the previous year, which is higher by 4.43%. During the year the Company achieved sales of Bi-Carbonate 22939 tons against 22912 tons in the previous year. Sodium Bicarbonate sales expected to improve further with high demand season and lower imports.
Home Textiles
The Indian Textile Industry, 2nd largest in the world, after witnessing growth of around 10% in FY 2009-10 and 2010- 11, shrank during the FY’2011-12 mainly due to weak global economy and extreme volatility in cotton prices. The Confederation of Indian Textile Industry (CITI) in its Q3, 2011- 12 review of textile sector pointed out that “there was highest price volatility in cotton prices in the past 150 years followed by a collapse in April, 2011, which had immediate repercussions in the domestic market. Cotton yarn production was down by 15% and fabric production was down by 19% in the April – October 2011 period over the previous year. Textile Mills faced with high priced cotton inventories could not pass through the prices into yarn and fabrics as the price decline came suddenly in the month of April’2011. This led to a slowdown in production and reduced utilization of capacity”. Additionally, India Government’s ad hoc policies with respect to export of cotton have also affected the sentiments of textiles industry and cotton growers. However, for the past 3-4 months the prices of cotton have stabilized and the outlook for the textile industry now looks positive.
In the Textile Business of the company, the Made-ups (Home Textiles) Business has been growing significantly year on year and has done exceedingly well during the FY’2011-12 both in terms of volume growth and profitability compared to the previous year. However, the Yarn business has underperformed substantially which was largely due to unprecedented volatility in both cotton and yarn prices which affected the spinning industry all over the country as afore mentioned. This has adversely affected the overall profitability of textile business during FY’11-12.
The Revenue of Home-Textiles division was at Rs.5300.000 Millions during the financial year 2011-12 against Rs.2760.000 Millions in 2010- 11, thereby registering a significant growth of 92% over previous year. Due to its sustained marketing efforts, the company has successfully made deep in roads in export market and further secured large replenishment orders from the big Global Retailers in US and Europe like Macys, Bed Bath and Beyond, K-Mart, Springs, Revman and Belk etc. However, as aforesaid FY’2011- 12 was an extremely challenging year for the entire Spinning Industry including yarn division of the company primarily due to extreme volatility in the cotton prices. The yarn industry got a doubly hit i.e. on one side, it was trapped with high cost inventory and on the other side the yarn prices crashed, thereby making most of the spinning units incur huge losses. Apart from the above said causes, frequent changes in the government policies as well as the grim power situation in Tamil Nadu had also affected the operations of yarn manufacturing industry including the company. However, the aggressive power trading by the Company resulted in substantial savings partially offsetting the aforesaid impact. Outlook for Spinning Industry now looks positive because the high cost inventory is out of the pipeline and with stable cotton prices and improved yarn price scenario, the directors expect a profitable period ahead.
REVIEW OF ECONOMY
The Indian economy is estimated to grow by 6.9% in 2011-12, after having grown at the rate of more than 8% in each of the two preceding financial years. This indicates a slowdown mainly due to weakening of industrial growth. Farm sector output growth in 2011-12 has been strong, coming on top of the strong growth in the previous year. The average GDP growth rate that has been reported for the farm sector in the first half of 2011-12 is 3.7%. The estimates for both Kharif and the Rabi season are very favorable, with new output for rice, wheat and food grain. Growth of GDP in the services sector was 9.6% in the first half of 2011-12. The mining and quarrying sector has shown particular weakness this year. This was a combination of weak coal output growth, a sharp decline in natural gas production in the KG-D6 fields and negative growth in crude oil output in the third quarter of the year. Moreover, restrictions imposed by the Courts on iron ore production in some parts of the country have also resulted in lower output. In consequence, the mining and quarrying sector is likely to report negative growth for the year as a whole – for the first time in three decades.
Inflation remains above 9 per cent during April-November 2011, y-o-y headline wholesale price index (WPI) inflation rate moderated to 7.7 per cent in December 2011 and further to 6.6 per cent in January 2012, before rising to 7.0 per cent in February 2012. While moderation in WPI inflation stemmed mainly from primary food articles, fuel and manufactured products groups also contributed. Inflation affects the purchasing power of people
adversely. Especially food price inflation affects the poor and the low income groups harder than the higher income groups. Food inflation has been a worldwide phenomenon since late 2008. Primarily, fuel price and speculative commodity trading have contributed to food price hike in India. In order to tame the rising food price index, the RBI is trying to control money supply in the economy by raising repo rates and reverse repo rates. Till
October 2011, the RBI has already hiked the repo rate by 3.50 percentage points in 13 installments since March 2010. This has jacked up the repo rate @ 8.50 per cent, which resulting into the hike of interest rate by the banks. High bank rate discourages investment and encourages savings, thereby reducing aggregate demand. However, the increase in the interest rate has done little to contain food inflation. On the contrary, costlier loan has hampered the growth rates of Gross Domestic Product and industrial output in the financial year 2011-12. However, the RBI reduced the CRR by 75 basis points from 5.5 per cent to 4.75 per cent effective March 10, 2012 to address the persistent structural liquidity deficit. Recent growth-inflation dynamics have prompted the RBI to indicate that no further tightening is required and that future actions will be towards lowering the rates in 2012-13. Further, to boost business sentiment and help economic growth, for the first time in three years, the RBI cut its
Repo rate and reverse repo rate by 50 bps in its monetary policy review on April 17, 2012, while CRR remains unchanged. After this cut, repo rate slashed down to 8% and reverse repo rate fell to 7%. The Reserve Bank of India's move would certainly bring some cheer for India Inc. It is a really very welcome step because high interest rates were having negative impact on the country's economic growth. The cycle of repo cut has started and they may see more cuts in future.
The pressure on the Balance of Payments (BOP) – both in regard to a larger than expected Current Account Deficit (CAD) and lower than expected net capital inflows – resulted in a very sizeable depreciation in the external value of the Indian rupee. The decline of the rupee vis-ŕ-vis the US dollar was 19 per cent during April–December 2011. However, there was some recovery in January and February 2012, with the rupee recovering about 7.5 per cent. But that recovery was temporary and once again rupee started depreciating against dollar and overall the rupee has depreciated by around 14% against the dollar during financial year 2011-12. The last few months have been about the most volatile period for the external value of the currency. In a medium term sense, the weakening of the Indian currency not only reflects the current situation of demand and supply of foreign exchange, but outlines a scheme for the stabilization and improvement of the external payments situation. A weaker currency can by improving the prospect of exports and also by making the price of Indian assets more attractive to foreign
investors, help to contract the CAD. However, there are several problems that they must guard against. First, a sharp depreciation can impact the liability side of corporate, which can dampen the recovery in the pace of economic growth. Second, capital inflows are a steady activity over time and if the impression gains ground that depreciation is likely to be a recurring theme, investors will tend to factor in this aspect in their valuation and to that extent it will have a negative impact on the perceived value of Indian assets.
They have witnessed a large amount of political and economic turmoil in 2011, from uprisings in the Middle East and North Africa to the tsunami in Japan and the sovereign debt crisis in the euro zone. Resulting volatility in commodity prices, disruptions to supply chains and general uncertainty has impacted businesses across the globe, slowing the recovery in both mature and emerging markets. The negative developments in the euro zone outweighed the small improvements in the US economy. The repeated attempts to sort out the problems of the eurozone in high profile Summits did not result in any lasting solution and to that extent by raising expectations made things worse. Though there is yet no resolution in sight and affected countries have large volumes of debt due for roll over, there is some improvement in the situation. In recent months things have crystallized to a much greater extent. Germany seems to be willing to provide extended support, partly as a result of which the European Central Bank (ECB) has provided large amount of finance through their banking system.
In the United States, the economy has been expanding moderately, notwithstanding some apparent slowing in global growth. Economic recovery of USA is better than projected, because there are clear signs that the economy is on the mend, including some improvement in the unemployment situation. Improvement in some U.S. statistics signals growth may be picking up. A consumer confidence index from the Conference Board rose in November 2011 to the highest since July. Manufacturing expanded recently at the fastest pace in five months, according to the Institute for Supply Management’s factory index. U.S. economic data have outperformed expectations by the most in the recent past. It is likely that the US economy will grow by approx 2.5 per cent in 2012, which may to a large extent neutralize slowdown in Euro zone.
COMPANY PERFORMANCE-
PERFORMANCE HIGHLIGHTS
· Revenue for the financial year ended 31st March 2012 has increased by 26.13% to Rs.19063.600 Millions as against Rs.15114.700 Millions for the previous Financial Year ended 31st March 2011.
· Profit before financial expenses and depreciation for the financial year ended March 31, 2012 has risen by 9.93% to Rs.3844.600 Millions as compared to Rs.3497.300 Millions for the previous Financial Year ended 31st March 2011.
· PAT (Profit After Tax) for the financial year ended March 31, 2012 is higher by 0.99% at Rs.1174.800 Millions against Rs.1163.300 Millions for the previous Financial Year ended 31st March 2011.
Inorganic Chemicals
(Soda Ash) Global Soda Ash Industry
Demand-Supply
Scenario
Demand
Following a sharp global decline after the 2009 recession, developing economies, particularly those in Asia, are driving demand for soda ash. According to the 2012 IHS Chemical World Soda Ash Analysis, despite an oversupply, much of which is from China, world demand for soda ash was estimated to be slightly more than 50+ million metric tons in 2011. The Global Soda Ash demand was around 46-48 million tons in 2010 with a capacity of 57 million tons. They are seeing demand growth, despite the fact that the market is currently oversupplied. However, since much of the overcapacity is in China and high costs are prohibiting any real surge in exports from China, much of the excess capacities in China are, in effect, stranded.
Due to the global cost disparities, relative production costs will be a key issue for the soda ash industry in the future. Demand for Soda Ash remained robust during the year, price pressure from key inputs such as salt and energy weighed heavily. Rising GDPs and urbanization in these regions have led to a higher per capita consumption of products manufactured using soda ash.
Demand for glass and detergents in emerging world markets surged in the last few years. The world soda ash demand grew at an average annual rate of slightly more than 3%. China grew more than 7% and Rest of the world registered a growth of 1%. The demand for soda ash is forecast to grow about 3 to 4 percent per year over the next five years.
Supply
China is the largest Soda Ash player in the world, having a capacity of 27-28 Million MT, which is around 50% of the global capacity. As per IHS Chemical report of February 2012 China’s operating rates were around 84% in 2011, reporting a production of 24 million tons and domestic consumption of 22 million tons.
US capacity is 12.00 Million MT and the five main US natural soda ash producers are - FMC, General Chemical (TCL), OCI Wyoming, Solvay and Searless Valley (Nirma). In 2008, Tata Chemicals acquired the soda ash business of US based General Chemical that has manufacturing facilities in Wyoming, making the former the second largest producer of soda ash in the world. US produced 11 million tones of soda ash and their annual production represents a 95 operating rate, US consumption was 5 million tons and they exported 5.2 Million tons.
The world’s largest deposit of trona is in the Green River Basin of Wyoming in USA having a presence of world’s major companies in the area contributing to the sustained growth of US exports. With abundant reserves, US soda ash players dominate the international trade. US based FMC brought back part of its idle capacity at Granger (Wyoming) in July 2011 and is also exploring the possibility to restart the remainder at Granger. According to IHS report, other producers are also considering additional capacity. US exports appear to be at an
all time high and growing steadily with a major surge to Asia and South America. High manufacturing costs in China have given US producers a big edge as well as a strong boost to margins. Natural soda ash is less energy intensive than the synthetic variety and has lower production costs. As such, more than 50% of the natural soda ash produced in US is exported.
Industry Outlook
The global soda ash industry continued to recover from the world economic problems that began in 2009. Domestic residential and commercial construction and automotive industries increased glass usage, which affected soda ash consumption worldwide. The world estimated 2011 distribution of soda ash by end use as under:
Glass 55%
Detergent and Soap formulations 14%
Chemical 10%
Alumina/Metals and mining 5%
Pulp and Paper 1%
Others (Environmental Protection/ Effluent treatment etc ) 15%
Despite an oversupply, global demand for soda ash is growing. At the same time there is an extremely sharp increase in input costs for soda ash manufacturers in all regions. Consequently, supported by rising demand and cost pressures prompted soda ash manufacturers to raise the sales prices of soda ash in 2011. World’s total soda ash demand which at present is at 50.00 Million MT is expected to grow by at least 3-4 % over the medium term with more than 50% of it is expected to come from Latin America, India, China and Middle East countries due to a higher GDP growth. Consumption of soda ash per person is expected to register healthy rise in the next few years with China leading the rankings with consumption from 10.85 kilograms in 2007 to an expected 12.00 kilograms in 2012. China is likely to add at least 1.00 to 1.5 Mn MT capacities every year on the back of huge infrastructure investments. IHS analysts expect Global market for soda ash is projected to reach 65 million metric tons by 2016.
The biggest threat to the global soda ash industry is the global economic outlook, which remains quite delicate. The state of the global economy, combined with the role that China will continue to play in the market, is key to the future health of the soda ash industry. If the economies continue to stagnate, the demand for soda ash could fall, and they could see prices weaken and capacities idled.
Indian Scenario
The Indian economy is estimated to grow by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years. This indicates a slowdown compared not just to the previous two years but 2003 to 2011 (except 2008-09) mainly due to weakening of industrial growth. The slow industrial growth of the Indian economy was witnessed in Soda Ash also as demand growth is almost flat in 2011-12 (Approx 1 -2%). But despite low growth figure of 6.9 per cent, India remains one of the fastest growing economies of the world as all
major countries including the fast growing emerging economies are seeing a significant slowdown. However, it is expected that on the back of higher GDP growth projected and strong growth in Glass (Construction/Automobiles) and Detergents (FMC Gpenetration and growth) Soda Ash demand will continue to grow at least 4-5 per cent in the FY 12-13.
Dumped import of Soda Ash from China PR, EU, Kenya, Iran, Pakistan, Turkey, USA and Ukraine has been a major concern for the Soda Ash Industry. Based on an application by the domestic producers of Soda Ash, the Director General of Anti-dumping and Allied Duties (“DGAD”) had recommended the imposition of anti-dumping duty on imports of Soda Ash from the above Countries, which has been upheld by the Hon’ble High Court of Madras vide their order dated April 27, 2012. Now, the Ministry of Finance is expected to issue a notification imposing duty on imports of the Soda Ash from the above countries based on the final finding issued by the DGAD.
The Indian Soda Ash market constitutes of two varieties – Light (used in detergent industry) and Dense (used in Glass industry), with a share of 61% and 39% respectively. Total installed capacity in India was 3.1 Million MT. With an estimated production of about 2.6 Million MT in last financial year (2011- 12) the capacity utilization was of only 81%.
The total size of the Indian soda ash market is about 2.7 Million MT and almost all the major industry players are located in the state of Gujarat due to the closeness and ready availability of the main raw materials namely limestone and salt.
Sourcing of these Key raw materials like Lime Stone and Salt are posing a major challenge the industry currently as no fresh Lime Stone mines or Land Bank for Salt Works is being allotted by the Government of Gujarat.
GHCL Soda Ash
Business
GHCL Limited is a leading Indian producer of soda ash is well poised to tap opportunities in the dense soda ash business which contributes about 42% of the total Soda Ash revenue of the company whereas the total soda ash business contributes about 61% of total Indian Stand alone revenue.
In India the company has a significant advantage in maintaining tight control on cost of soda ash due to major captive source on some of the raw materials – Salt, Limestone and Lignite. The other key factor for success is the innovation brought in by the company by replacing the imported Met Coke within house Developed Briquette Coke. GHCL is the only soda ash manufacturing company in India which has the captive mining of fuel (Lignite).
GHCL shares highly successful client relationships and is the preferred supplier to all major soda ash consumers; its clients include Hindustan Unilever Limited, Ghari Group, Fena Group, HNG Group, Gujarat Guardian Limited, Videocon Industries Limited, Gujarat Borosil Limited, Piramal Glass Limited, St Gobain Glass, Gold Plus Glass and Phillips.
Textiles – Outlook
and Growth
The Indian Textiles Industry is one of the leading textile industries in the world and the 2nd largest only after China. The Indian Textiles Industry plays a major role in the economy of the country and contributes about 14% to the country’s Industrial Production and it also contributes around 4% to GDP of the country. Further, India earns about 17% of its total foreign exchange through textile exports. Indian Textiles Industry also plays an important role in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. The Indian Textiles Industry currently generates employment to more than 35 million people and is the second largest provider of employment after agriculture. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison with the textiles industry of other countries.
After witnessing growth of around 10% in FY 2009-10 and 2010- 11, the Indian Textile Industry shrank during the FY’2011-12mainly due to weak global economy and extreme volatility in cotton prices. The Confederation of Indian Textile Industry (CITI) in its Q3, 2011-12 review of textile sector pointed out that “there was highest price volatility in cotton prices in the past 150 years followed by a collapse in April, 2011, which had immediate repercussions in the domestic market. Cotton yarn production was down by 15% and fabric production was down
by 19% in the April – October 2011 period over the previous year. Textile Mills faced with high priced cotton inventories could not pass through the prices into yarn and fabrics as the price decline came suddenly in the month of April’2011. This led to a slowdown in production and reduced utilization of capacity”. Additionally, India Government’s ad hoc policies with respect to export of cotton have also affected the sentiments of textiles industry and cotton growers. However, for the past 3-4 months the prices of cotton have stabilized and with the Government of India providing a number of export promotion policies for the Textile sector in the Union Budget 2012-13 and the Foreign Trade Policy 2009-14, the outlook for the industry looks positive. The Government has now set an export target of US$ 65 billion and creation of 25 million additional jobs has been proposed with a CAGR of 15% during the 12th Five Year Plan (2012-17). As per the Government estimates, India has the potential to increase its textiles and apparel share in the world trade from the current level of 4.5 percent to 8 percent and reach US$ 80 billion by 2020. Inherent strengths and cost competitiveness of Indian textiles industry is catalyzing major retailers and brands of the world such as Wal-Mart, Target Gap, Marks and Spencer and Tesco to set up shops/increasing their Indian presence which augurs well for the sector.
GHCL – Textiles
GHCL Limited is one of the largest integrated textile manufacturers in the country with an installed spinning capacity of 147,000 spindles manufacturing 100% cotton and polyester cotton blended yarns. The company’s state-of-art plant at Vapi, Gujarat, integrates weaving, processing and cut and sew facilities. With an annual capacity of 9 million meters, fabric is woven in plain weaves, plain sateens, sateens stripes, dobbies and jacquards.
Overall in the Textile Business of the Company, the Made-ups (Home Textiles) Business has been growing significantly year on year and has done exceedingly well during the FY 2011-12 both in terms of volume growth and profitability compared to the previous year. However, the Yarn business has underperformed substantially which is largely due to unprecedented volatility in both cotton and yarn prices which affected the spinning industry
including their yarn business. This has adversely affected the overall profitability of textile business.
The Revenue of Home Textiles division was at Rs.5300.000 Millions during the financial year 2011-12 against Rs.2760.000 Millions in 2010- 11, thereby registering a significant growth of 92% over previous year. Due to its sustained marketing efforts, the company has successfully made deep in roads in export market and further secured large replenishment orders from the big Global Retailers in US and Europe like Macys, Bed Bath and Beyond, K-Mart, Springs, Revman and Belk etc. However, as aforesaid FY 2011- 12 was an extremely challenging year for the entire Spinning Industry including their yarn business, which went through one of the toughest challenges not seen in last 2 decades primarily due to extreme volatility in the cotton prices. After a huge increase in cotton prices at the beginning of the season from Rs.0.030 Million per candy to Rs.0.064 Million in December 2010 to March 2011, the prices suddenly crashed in the 1st quarter of 2011-12 from Rs.0.064 Million per candy to Rs.0.033 Million per candy. Industry started covering cotton during season at very high prices as the international prices were also rising and consequently, the Spinning Mills ended up with very high price cotton inventory during first 7-8 months of 2011-12. Another whammy which the industry suffered was a sharp drop in Yarn prices. Drop in Yarn Prices was even sharper in the first half than drop in cotton price. The Yarn industry, therefore, got a double whammy i.e. on one side, it was trapped with high cost
inventory and on the other side the yarn prices crashed, thereby making most of the units incur huge losses. Apart from the above said causes, frequent changes in the government policies as well as the grim power situation in Tamil Nadu had also affected the operations of yarn manufacturing industry including GHCL Limited. However, the aggressive power trading by the Company resulted in substantial savings partially offsetting the aforesaid impact. Outlook for Spinning Industry now looks positive because the high cost inventory is out of the pipeline and with stable cotton prices and improved yarn price scenario, they expect a profitable period ahead.
UNAUDITED FINANCIAL RESULTS (STANDALONE) FOR THE QUARTER ENDED 30
SEPTEMBER, 2012
(Rs. In Millions)
|
Sr. No. |
|
Quarter Ended |
Half Year Ended |
||
|
|
Particulars |
30/09/2012 |
30/06/2012 |
30/09/2012 |
|
|
|
|
Unaudited |
|||
|
1 |
(a) Net
Sales / Income from Operations (Net of excise duty) |
5413.806 |
5501.689 |
10915.495 |
|
|
|
(b) Other
Operating Income |
47.022 |
4.572 |
51.594 |
|
|
|
Total Income from Operations (Net) |
5460.828 |
5506.261 |
10967.089 |
|
|
2 |
Expenses: |
|
|
|
|
|
|
a) Cost of
Material consumed |
2013.467 |
2119.697 |
4133.163 |
|
|
|
b)
Purchase of Stock-in-trade |
227.727 |
221.995 |
449.722 |
|
|
|
c) Changes
in inventories of finished goods, |
|
|
|
|
|
|
work-in-progress and stock-in-trade |
149.319 |
(103.636) |
45.683 |
|
|
|
d)
Employees benefits expenses |
269.883 |
270.943 |
540.826 |
|
|
|
e) Power,
Fuel and Water |
830.946 |
768.014 |
1598.960 |
|
|
|
f )
Depreciation and amortisation expenses |
209.678 |
196.838 |
406.515 |
|
|
|
g) Other
Expenses |
859.900 |
812.068 |
1671.968 |
|
|
|
Total
Expenses |
4560.920 |
4285.919 |
8846.837 |
|
|
3 |
Profit From Operations before Other Income, |
|
|
|
|
|
|
finance cost and Exceptional Items (1-2) |
899.908 |
1220.342 |
2120.252 |
|
|
4 |
Other
Income |
3.245 |
7.868 |
11.113 |
|
|
5 |
Profit from ordinary activities before finance
cost, |
|
|
|
|
|
|
Exchange Impact and Exceptional Items (3+4) |
903.153 |
1228.210 |
2131.365 |
|
|
6 |
Finance
Cost |
|
|
|
|
|
|
(a)
Interest Cost and financial charges |
364.886 |
397.420 |
762.306 |
|
|
|
(b) Add :
Exchange Loss equivalent to Interest Saving on |
|
|
|
|
|
|
forex instruments (refer point no 8 below and note no 2) |
80.264 |
65.254 |
145.518 |
|
|
|
Total
Finance cost (a+b) |
445.150 |
462.674 |
907.824 |
|
|
7 |
Profit from ordinary activities before |
|
|
|
|
|
|
Exchange Impact and Exceptional Items (5-6) |
458.003 |
765.536 |
1223.541 |
|
|
8 |
Exchange
Gain / (Loss) |
|
|
|
|
|
|
(a)
Exchange Gain / (Loss)- Gross |
(331.642) |
(505.635) |
(837.278) |
|
|
|
(b) Less :
Exchange Loss equivalent to Interest Saving on |
|
|
|
|
|
|
forex instruments transferred to finance cost |
|
|
|
|
|
|
(in point no 6(b) above) |
80.264 |
65.254 |
145.518 |
|
|
|
(c) Net
Exchange Gain / (Loss) (a+b) |
(251.378) |
(440.381) |
(691.760) |
|
|
9 |
Profit from ordinary activities after |
|
|
|
|
|
|
Finance cost but before Exceptional Items (7+8) |
206.625 |
325.155 |
531.781 |
|
|
10 |
Exceptional
Items |
- |
- |
- |
|
|
11 |
Profit from ordinary activities before tax (9+10) |
206.625 |
325.155 |
531.781 |
|
|
12 |
Tax
expenses |
42.500 |
32.500 |
75.000 |
|
|
13 |
Net Profit from ordinary activities after tax
(11-12) |
164.125 |
292.655 |
456.781 |
|
|
14 |
Paid Up
Equity Share Capital (face value of Rs.10/- each) |
1000.193 |
1000.193 |
1000.193 |
|
|
15 |
Reserve
excluding Revaluation Reserve |
|
|
|
|
|
16 |
EPS -
Before and after Extraordinary items (of Rs.10/- each) (not annualised) |
|
|
|
|
|
|
(a) Basic
and Diluted |
0.163 |
0.294 |
0.456 |
|
|
A 1 |
PARTICULARS OF SHAREHOLDING Public
Shareholding |
|
|
|
|
|
|
- Number
of Shares |
8,24,15,402 |
8,24,15,402 |
8,24,15,402 |
|
|
|
-
Percentage of Shareholding |
82.40 |
82.40 |
82.40 |
|
|
2 |
Promoters
and promoter group Shareholding a) Pledged
/ Encumbered |
|
|
|
|
|
|
- Number of Shares |
87,25,800 |
87,25,800 |
87,25,800 |
|
|
|
-
Percentage of Shares |
49.57 |
49.57 |
49.57 |
|
|
|
(as a % of the total shareholding of promoter |
|
|
|
|
|
|
and promoter group) |
|
|
|
|
|
|
-
Percentage of Shares |
8.72 |
8.72 |
8.72 |
|
|
|
(as a % of the total share capital of the company) |
|
|
|
|
|
|
b) Non -
encumbered |
|
|
|
|
|
|
- Number of Shares |
88,78,084 |
88,78,084 |
88,78,084 |
|
|
|
-
Percentage of Shares |
50.43 |
50.43 |
50.43 |
|
|
|
(as a % of the total shareholding of promoter |
|
|
|
|
|
|
and promoter group) |
|
|
|
|
|
|
-
Percentage of Shares |
8.88 |
8.88 |
8.88 |
|
|
|
(as a % of the total share capital of the company) |
|
|
|
|
|
|
|||||
|
|
Particulars |
Quarter Ended
30.09.2012 |
|
||
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
|
Pending at
the beginning of the quarter |
NIL |
|
||
|
|
Received
during the quarter |
88 |
|
||
|
|
Disposed
of during the quarter |
68 |
|
||
|
|
Remaining
unresolved at the end of the quarter |
20 |
|
||
QUARTER ENDED ON 30TH
SEPTEMBER 2012 SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE
41 OF THE LISTING AGREEMENT
(Rs. In Millions)
|
Sr. No. |
|
Quarter Ended |
Half Year Ended |
|
|
|
Particulars |
30/09/2012 |
30/06/2012 |
30/09/2012 |
|
|
|
Unaudited |
||
|
1 |
Segment Revenue |
|
|
|
|
1.a |
Inorganic
Chemicals |
2967.741 |
3151.548 |
6119.288 |
|
1.b |
HomeTextiles |
2493.087 |
2354.713 |
4847.801 |
|
1.c |
Others /
Un-allocated |
- |
- |
- |
|
|
Total Revenue |
5460.828 |
5506.261 |
10967.089 |
|
2 |
Segment
Results Operating Profit before Finance cost and Tax but after
Forex Gain / (Loss) |
|
|
|
|
2.a |
Inorganic
Chemicals |
554.896 |
759.407 |
1314.303 |
|
2.b |
Home
Textiles |
126.804 |
64.430 |
191.234 |
|
2.c |
Others /
Un-allocated |
0.013 |
- |
0.013 |
|
|
Total Segment Results |
681.713 |
823.837 |
1505.550 |
|
2.d |
Finance
Cost |
|
|
|
|
|
(a)
Interest Cost and financial charges |
364.886 |
397.420 |
762.306 |
|
|
(b)Exchange
Loss equivalent to |
|
|
|
|
|
Interest
Saving on forex instruments |
80.264 |
65.254 |
145.518 |
|
|
Total
Finance cost (a+b) |
445.150 |
462.674 |
907.824 |
|
2.e |
Un-allocated
Expenditure |
29.938 |
36.008 |
65.945 |
|
|
Profit Before Tax |
206.625 |
325.155 |
531.781 |
|
3 |
Capital Employed |
|
|
|
|
3.a |
Inorganic
Chemicals |
4362.258 |
4583.311 |
4362.258 |
|
3.b |
Home
Textiles |
2957.916 |
3051.089 |
2957.916 |
|
3.c |
Others /
Un-allocated |
1628.385 |
1398.351 |
1628.385 |
|
\ |
Total Capital Employed |
8948.559 |
9032.751 |
8948.559 |
STATEMENT OF ASSETS
AND LIABILITIES UNDER CLAUSE 41 OF THE LISTING AGREEMENT
(Rs. In Millions)
|
|
Particulars |
Standalone |
|
|
|
Hal Year Ended |
|
|
|
30/09/2012 |
|
|
|
Unaudited |
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholders' Funds |
|
|
|
(a) Share Capital |
1000.193 |
|
|
(b) Reserve and Surplus |
9291.631 |
|
|
(c) Money received against share warrants |
- |
|
|
Sub-Total- Shareholders'funds |
10291.824 |
|
2 |
Share application money pending allotment |
|
|
3 |
Minority interest |
- |
|
4 |
Non-Current Liabilities |
|
|
|
(a) Long-term borrowings |
6122.147 |
|
|
(b) Deferred Tax Liabilities (Net) |
1663.431 |
|
|
(c) Other Long term liabilities |
30.229 |
|
|
(d) Long-term Provisions |
10.729 |
|
|
Sub-Total- Non-Current Liabilities |
7826.536 |
|
5 |
Current Liabilities |
|
|
|
(a) Short-term borrowings |
4695.864 |
|
|
(b) Trade payables |
2844.549 |
|
|
(c) Other Liabilities |
1998.739 |
|
|
(d) Short-term Provisions |
193.079 |
|
|
Sub-Total-Current Liabilities |
9732.231 |
|
|
TOTAL-EQUITY AND LIABILITIES |
27850.591 |
|
B |
ASSETS |
|
|
1 |
Non-Current assets |
|
|
|
(a) Fixed Assets |
19125.535 |
|
|
(b) Goodwill on consolidation |
- |
|
|
(c) Non-current Investments |
249.445 |
|
|
(d) Deferred Tax Liability (Net) |
- |
|
|
(e) Long-term loans and advances |
97.097 |
|
|
(f) Other non-current assets |
32.757 |
|
|
Sub-total-Non-Current assets |
19504.834 |
|
2 |
Current assets |
|
|
|
(a) Current Investments |
- |
|
|
(b) Inventories |
3258.936 |
|
|
(c) Trade receivables |
1689.911 |
|
|
(d) Cash and cash equivalents |
235.080 |
|
|
(e) Short-term loans and advances |
3161.830 |
|
|
(f) Other Current assets |
- |
|
|
Sub-total-Current assets |
8345.757 |
|
|
Total |
27850.591 |
Note:
1. The above results were reviewed by the Audit Committee and were approved and taken on record by the Board of Directors in the meeting held on October 29, 2012. Further, in accordance with the requirements of Clause 41 of the Listing Agreement with the Stock Exchange, the Statutory Auditors have carried out Limited Review and the review report has been approved by the Board
2. During the quarter the company has been impacted due to highly volatile forex market and devaluation of Rupee. The total impact of this fluctuation resulted into an exchange loss of Rs. 331.642 Millions for the quarter. The Company had some borrowings in foreign currency instruments which carry lo r interest rate as compared to Indian Rupee borrowing rate, resulting into to lower interest cost of Rs. 80.264 Millions. Therefore, out of total exchange loss of Rs. 331.642 Millions, a sum of Rs. 80.264 Millions has been recognized under finance cost as "Exchange Loss equivalent to Interest Saving on forex instruments transferred to finance cost" and balance Rs. 251.378 Millions has been shown as Foreign Exchange Loss.
3. The Company's ESOS plan is administered by ESOS trust which purchased shares of the company from the market to grant stock options to eligible employees. The market value, as on 30th September 2012, of the shares held by the ESOS trust is lower than the cost of acquisition of these shares by Rs. 552.500 Millions. The fall in value of the underlying equity shares is on account of market volatility.
4. As per the company policy, the provision for Deferred Tax, if any, will be made at the yearend
5. No provision has been made on the outstanding guarantee of Rs. 2114.000 Millions pertaining to Rosebys (UK), which shall be accounted for in subsequent year (s) upon reasonable certainty as the amount of the same cannot be quantified as on date and the same shall be adjusted against Business Development Reserve. The above point nos 4 and 5 are in response to the Auditors' observations in Limited Review Report
6. As per the company policy, the unrealized foreign exchange Gain/Loss on monetary items for the quarter and subsequent quarters shall be accounted for at the year end.
7. The previous year's/corresponding periods' figures have been regrouped/reclassified to be in conformity with the Revised Schedule VI of the Companies Act, 1956.
FIXED ASSETS:
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Wind Turbine Generators
· Furniture and Fixtures
· Office Equipments
· Vehicles
· Leased Mines
· Goodwill
· Software
· Salt Works Reservoirs and Pans
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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.54.98 |
|
|
1 |
Rs.88.11 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.