MIRA INFORM REPORT

 

 

Report Date :

30.05.2014

 

IDENTIFICATION DETAILS

 

Name :

GHCL LIMITED

 

 

Registered Office :

GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

14.10.1983

 

 

Com. Reg. No.:

04-006513

 

 

Capital Investment / Paid-up Capital :

Rs.1000.193 Millions

 

 

CIN No.:

[Company Identification No.]

L24100GJ1983PLC006513

 

 

IEC No.:

0588091529

 

 

PAN No.:

[Permanent Account No.]

AAACG5609C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacture of Inorganic Chemicals and Textiles.

 

 

No. of Employees :

3106 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD  42690000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having a satisfactory track record.

 

Financial position of the company seems to be decent.

 

Trade relations are fair. Business is active. Payment terms are reported to be usually correct.

 

The company can be considered 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.

 

INDIAN ECONOMIC OVERVIEW

 

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

 

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

 

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

 

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

 

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

 

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

 

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

 

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

 

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

 

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BBB (Long Term Bank Facility)

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

October 07, 2013

 

 

Rating Agency Name

CARE

Rating

A3 (Short Term Bank Facility)

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

October 07, 2013

 

 

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.

 

 

INFORMATION DECLINED

 

Management Non Cooperative (91-79-26427519)

 

LOCATIONS

 

Registered Office :

GHCL House, Opposite Punjabi Hall Navrangpura, Ahmedabad - 380009, Gujarat, India

Tel. No.:

91-79-26427818

Fax No.:

91-79-26423623

E-Mail :

secretarial@ghcl.co.in

navdeepk@ghcl.co.in

anandj@ghcl.co.in

asok@ghcl.co.in

mvmk@ghcl.co.in

pokhariyal@ghcl.co.in

exim@ghcl.co.in

shashigupta@ghcl.co.in

sanjeevgupta@ghcl.co.in

Website :

http://www.ghclindia.com

 

 

Corporate/ Head Office :

“GHCL House” B-38, Institutional Area, Sector – 1, Noida - 201 301, Uttar Pradesh, India

Tel. No.:

91-120-2536572/ 2535335 

Fax No.:

91-120-2535209/ 2534153

 

 

Work 1  :

Soda ash Plant, Village Sutrapada, Near Vereval, District Junagadh – 362275, Gujarat, India.

 

 

Work 2  :

Salt Works and Refinery

 

·         Ayyakaramulam, Kadinalvayal – 614707, District Nagapattinam, Tamilnadu, India

·         Nemeli Road, Thiruporur – 603110, Tamilnadu, India

 

 

Textiles :

·         Samayanallur P.O. Madurai – 625402, India.

·         Thaikesar Alai P.O Manaparai – 621312, India.

·         S. No. 191/192, Mahala Falia, Village Bhilad, District Valsad – 396105, Gujarat, India.

 

 

Energy Division :

·         Muppandal, Irukkandurai Village, Sankaneri Post Radhapuram Taluk, Tirunelveli District, Tamilnadu, India

 

·         Chinnaputhur Village, Dharapuram Taluk, Erode District, Tamilnadu, India

 

 

DIRECTORS

 

(AS ON 31.03.2013)

 

Name :

Mr. Sanjay Dalmia

Designation :

Non-Executive Chairman

 

 

Name :

Mr. Anurag Dalmia

Designation :

Non-Executive Director

 

 

Name :

Mr. Neelabh Dalmia

Designation :

Non-Executive Director

 

 

Name :

Dr. B.C. Jain

Designation :

Independent Director

 

 

Name :

Mr. Ajoy Nath Jha

Designation :

Nominee Director (IDBI Bank)

 

 

Name :

Mr. R M V Raman

Designation :

Nominee Director (Exim Bank)

 

 

Name :

Mr. Surendra Singh

Designation :

Independent Director

 

 

Name :

Mr. G C Srivastava

Designation :

Independent Director

 

 

Name :

Mr. Mahesh Kheria

Designation :

Independent Director

 

 

Name :

Mr. Sanjiv Tyagi

Designation :

Independent Director

 

 

Name :

Mr. S H Ruparell

Designation :

Non-Executive Director

 

 

Name :

Mr. R S Jalan

Designation :

Managing Director

 

 

Name :

Mr. Raman Chopra

Designation :

Executive Director (Finance)

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjeev Gupta

Designation :

Assistant General Manager Finance

 

 

Name :

Mr. Bhuwneshwar Mishra

Designation :

General Manager and Company Secretary

 

 

Name :

Mr. Manoj Kumar Ishwar

Designation :

Manager (Secretarial)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 31.04.2014)

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

11933984

11.93

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

152000

0.15

http://www.bseindia.com/include/images/clear.gifTrusts

152000

0.15

http://www.bseindia.com/include/images/clear.gifSub Total

12085984

12.08

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

5507900

5.51

http://www.bseindia.com/include/images/clear.gifSub Total

5507900

5.51

Total shareholding of Promoter and Promoter Group (A)

17593884

17.59

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

16913

0.02

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

70913

0.07

http://www.bseindia.com/include/images/clear.gifInsurance Companies

6208120

6.21

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

7313183

7.31

http://www.bseindia.com/include/images/clear.gifSub Total

13609129

13.61

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

31817704

31.81

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

21429771

21.43

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

12869924

12.87

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

2698874

2.70

http://www.bseindia.com/include/images/clear.gifClearing Members

82512

0.08

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

3900

0.00

http://www.bseindia.com/include/images/clear.gifMarket Maker

168458

0.17

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1911439

1.91

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

472270

0.47

http://www.bseindia.com/include/images/clear.gifTrusts

3352

0.00

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

56943

0.06

http://www.bseindia.com/include/images/clear.gifSub Total

68816273

68.80

Total Public shareholding (B)

82425402

82.41

Total (A)+(B)

100019286

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

100019286

0.00

Total Public shareholding (B)

82425402

82.41

 

 

 

Total (A)+(B)

100019286

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

 

 

 

Total (A)+(B)+(C)

100019286

100.00

 

 

 

 

 

 

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.

Name of the Shareholder

Details of Shares held

Encumbered shares (*)

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

 

 

No. of Shares held

As a % of grand total (A)+(B)+(C)

No

As a percentage

As a % of
grand total
(A)+(B)+(C) of sub-clause (I)(a)

 

1

Gems Commercial Company Limited

28,62,207

2.86

2500000

87.35

2.50

2.86

2

Banjax Limited

27,89,700

2.79

0

0.00

0.00

2.79

3

Hexabond Limited

27,18,200

2.72

0

0.00

0.00

2.72

4

Oval Investment Private Limited

25,88,848

2.59

2500000

96.57

2.50

2.59

5

Lhonak Enternational Private Limited

13,65,599

1.37

1200000

87.87

1.20

1.37

6

Hindustan Commercial Company Limited

7,46,150

0.75

525000

70.36

0.52

0.75

7

Moderale Investment and Commercial Enterprises Limited

5,70,050

0.57

520000

91.22

0.52

0.57

8

International Resources Limited

5,52,671

0.55

500000

90.47

0.50

0.55

9

Carissa Investments Private Limited

4,81,752

0.48

45000

9.34

0.04

0.48

10

GTC Industries Limited

4,16,578

0.42

0

0.00

0.00

0.42

11

Harvatex Engineering and Processing Company Limited

4,03,723

0.40

300000

74.31

0.30

0.40

12

Excellent Commercial Enterprises and Investment Limited

3,62,800

0.36

345800

95.31

0.35

0.36

13

Carefree Investment Company Limited

2,93,450

0.29

280000

95.42

0.28

0.29

14

Anurag Trading Leasing and Investment Company Private Limited

2,84,700

0.28

0

0.00

0.00

0.28

15

Divine Leasing and Finance Limited

2,31,704

0.23

0

0.00

0.00

0.23

16

Dalmia Housing Finance Limited

1,80,707

0.18

0

0.00

0.00

0.18

17

WGF Financial Services Limited

1,71,815

0.17

0

0.00

0.00

0.17

18

Dalmia Finance Limited

1,58,901

0.16

0

0.00

0.00

0.16

19

Ram Krishna Dalmia Foundation

1,52,000

0.15

0

0.00

0.00

0.15

20

Archana Trading and Investment Company Private Limited

1,32,848

0.13

0

0.00

0.00

0.13

21

Bharatpur Investment Limited

38,842

0.04

0

0.00

0.00

0.04

22

Sanjay Trading and Investment Company Private Limited

29,100

0.03

0

0.00

0.00

0.03

23

General Exports And Credits Limited

17,000

0.02

0

0.00

0.00

0.02

24

Pashupatinath Commercial Private Limited

15,000

0.01

0

0.00

0.00

0.01

25

Sovereign Commercial Private Limited

6,000

0.01

0

0.00

0.00

0.01

26

Trishul Commercial Private Limited

5,100

0.01

0

0.00

0.00

0.01

27

Swastik Commercial Private Limited

3,700

0.00

0

0.00

0.00

0.00

28

Alankar Commercial Private Limited

2,600

0.00

0

0.00

0.00

0.00

29

Ricklunsford Trade and Industrial Investment Limited

1,960

0.00

0

0.00

0.00

0.00

30

Chirawa Investment Limited

1,860

0.00

0

0.00

0.00

0.00

31

Lakshmi Vishnu Investment Limited

1,860

0.00

0

0.00

0.00

0.00

32

Mourya Finance Limited

1,860

0.00

0

0.00

0.00

0.00

33

Sikar Investment Company Limited

1,800

0.00

0

0.00

0.00

0.00

34

Antarctica Investment Private Limited

785

0.00

0

0.00

0.00

0.00

35

Comosum Investment Private Limited

701

0.00

0

0.00

0.00

0.00

36

Lovely Investment Private Limited

645

0.00

0

0.00

0.00

0.00

37

Altar Investment Private Limited

318

0.00

0

0.00

0.00

0.00

38

ILAC Investment Private Limited

217

0.00

0

0.00

0.00

0.00

39

Hotex Company Limited

78

0.00

0

0.00

0.00

0.00

40

Dear Investment Private Limited

55

0.00

0

0.00

0.00

0.00

 

Total

1,75,93,884

17.59

8715800

49.54

8.71

17.59

 

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

 

 

 

 

 

1

J P Financial Services Private Limited

4938751

4.94

4.94

2

Ares Diversified

4932182

4.93

4.93

3

Finquest Securities Private Limited

3847524

3.85

3.85

4

Life Insurance Corporation of India

3138105

3.14

3.14

5

Varanasi Commercial Limited

3135000

3.13

3.13

6

Bhanubhai Bhagvandas Patel

2688857

2.69

2.69

7

EOS Multi Strategy Fund Limited

2380501

2.38

2.38

8

United India Insurance Company Limited

2174280

2.17

2.17

9

Rameshbhai Jagjivandas Patel

1870664

1.87

1.87

10

Indianivesh Securities Private Limited

1692434

1.69

1.69

11

Balashri Commercial Limited

1675000

1.67

1.67

12

NSCCL-CC

1322739

1.32

1.32

13

Jayesh H Patel

1017000

1.02

1.02

 

Total

34813037

34.81

34.81

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture of Inorganic Chemicals and Textiles.

 

 

PRODUCTION STATUS (AS ON: 31.03.2013)

 

Particulars

 

Unit

Installed Capacity

Soda Ash

MT

724021

Refined Salt

MT

56353

Yarn

MT

16156

Cloths –Job Work+ Own Production

MTRS (‘000)

38416

Bicarb – (Production from Soda Ash)

MT

23593

Bed Sheet Sets – Job Works

MTRS (‘000)

23692

 

 

GENERAL INFORMATION

 

No. of Employees :

3106 (Approximately)

 

 

Bankers :

·         State Bank of Travancore

·         IDBI Bank Limited

·         State Bank of Hyderabad

·         Canara Bank

·         State Bank of Patiala

·         State Bank of Mysore

·         State Bank of Bikaner and Jaipur

·         Export Import Bank of India

·         State Bank of India

·         Tamilnad Merchantile Bank Limited

·         Bank of Maharashtra

·         Union Bank of India

·         Jammu and Kashmir Bank Limited

·         Bank of India

·         Andhra Bank

 

 

Facilities :

Secured Loan

As on

31.03.2013

As on

31.03.2012

 

(Rs. In Millions)

Long Term Borrowings

 

 

Rupee Term Loans

5907.969

6921.744

 

 

 

Short Term Borrowings

 

 

Working Capital Loans from Banks

4638.632

4817.128

 

 

 

Total

 

10546.601

11738.872

 

NOTES:

 

Rupee Term Loans from Banks / Institutions have been secured against :-

 

a) Loan aggregating to Rs.1398.436 Millions is secured by extension of first charge on pari passu basis, by way of equitable mortgage on immovable properties of the Soda Ash Division situated at Sutrapada, Veraval, Gujarat and extension of hypothecation charge on movable assets, both present and future of the company’s Soda Ash division situated at village – Sutrapada, Veraval in Gujarat with other term lenders of the said project. The remaining tenure of the loans is 3 to 5 years.

 

b) Loan aggregating to Rs.891.953 Millions is secured by exclusive charge on the specific fixed assets created out of the proceeds of the loan for Company’s Soda Ash Division situated at village Sutrapada, Veraval in Gujarat. The remaining tenure of the loans is 6 to 10 years.

 

c) Loan aggregating to Rs.1224.448 Millions is secured by way of first pari passu charge on movable fixed assets of Soda Ash Division situated at village Sutrapada, Veraval in Gujarat. The remaining tenure of the loans is 1 to 4 years.

 

d) Loan aggregating to Rs.561.218 Millions is secured by first charge on pari passu basis by way of equitable mortgage on fixed assets of the Textile Division situated at Vapi, Gujarat and hypothecation of movable assets both present and future of the Company’s Textile Division at Vapi, Gujarat with other term lenders of the said project. The said loan is availed under Technology Upgradation Fund Scheme for Textile. The remaining tenure of the loans is 2 to 3 years.

 

e) Loan aggregating to Rs.302.991 Millions is secured by exclusive charge on the specific fixed assets created out of the proceeds of the loan for Company’s Home Textile Division situated at Vapi in Gujarat. The remaining tenure of the loans is 6 to 10 years.

 

f) Loan aggregating to Rs.280.312 Millions is secured by first charge on pari passu basis by way of equitable mortgage on Factory Land and Building of Textile Division situated at Paravai and Manaparai, Tamil Nadu and hypothecation of specified movable assets, both present and future of the Company’s Textile Division. The said loan is availed under Technology Upgradation Fund Scheme for Textile. The remaining tenure of the loans is 2 to 4 years.

 

g) Loan aggregating to Rs. 342.660 Millions is secured by exclusive charge on the specific fixed assets created out of the proceeds of the loan for Company’s Textile Division situated at Madurai, Tamil Nadu. The remaining tenure of the loans is 6 to 9 years.

 

h) Loan aggregating to Rs.1165.200 Millions is secured by extension of first charge on pari passu basis on Factory Land and Building of Textile Division situated at Paravai and Manaparai, Tamil Nadu with other term lenders of the said project. The remaining tenure of the loans is 3 to 5 years.

 

i) Loan aggregating to Rs.20.691 Millions is secured by an exclusive first charge by way of equitable mortgage on immovable properties pertaining to Wind Mill Division – I situated at Irukkandurai village, Tirunelveli District in the state of Tamil Nadu and hypothecation of all present and future movable assets of Wind Mill Division – I. The said loan is availed under Technology Upgradation Fund Scheme for Textile. The remaining tenure of the loans is 2 years.

 

j) Loan aggregating to Rs.30.260 Millions is secured by an exclusive first charge on all present and future movable assets of Wind Mill Division – II situated at Chinnaputhur, near Poolavadi in the state of Tamil Nadu. The said loan is availed under Technology Upgradation Fund Scheme for Textile. The remaining tenure of the loans is 2 years.

 

k) Loan aggregating to Rs.333.333 Millions is secured by an exclusive charge on immovable property situated at Plot No.B-38, Section-I, New Okhla Industrial Area (Noida), Dist.-Gautam Budh Nagar, Uttar Pradesh. The remaining tenure of the loans is 3 years.

 

l) Loan aggregating to Rs.243.750 Millions is secured by an exclusive charge on immovable property situated at GHCL House, Swastik Society, Navrangpura, Ahmedabad, Gujarat. The remaining tenure of the loans is 4 years.

 

m) Out of all the aforesaid secured Loans appearing in note 2.3 (a) to 2.3 (l) totaling Rs.6795.252 Millions, an amount of Rs.887.283 Millions is due for payment in next 12 months and accordingly reported under note no 2.9 under the head “ Other Current Liabilities” as ‘current maturities of Long Term Debt’.

 

1) Working Capital Loans are secured by way of hypothecation of stock-in-trade and book debts of Soda Ash / Home Textile Division / Edible Salt / Textile Divisions and second charge on fixed assets of Soda Ash Division / Home Textile Division and Textile Division, both present and future.

 

2) Specified movable assets referred to in the above notes include all movable assets of Soda Ash Division, Home Textile Division and Textile Division both present and future but subject to prior charge created and / or that may be created in favour of Company’s Bankers on stock-in-trade for securing borrowing for working capital.

 

 

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

Jayantilal Thakkar and Company

Chartered Accountants

 

Rahul Gautam Divan and Associates

Chartered Accountants

 

 

Subsidiaries and Associate :

·         Indian England N.V.

·         Indian Wales N.V.

·         Dan River Properties LLC

·         Grace Home Fashions LLC

·         GHCL Rosebys Limited

·         Rosebys Interiors India Limited

·         Teliforce Holding India Limited

·         Rosebys UK Limited (under Liquidation since12th November, 2012)

·         Textile and Design Limited (under Liquidation since 25th September, 2009)

·         GHCL Inc. (Dissolved as at 14th May, 2012)

·         Indian Britain B.V. (Liquidated as at 30th November, 2012)

·         S C GHCL Upsom SA (ownership upto 12th November, 2012)

·         Colwell and Salmon Communications Inc. (Liquidated as at 1st April, 2013)

·         Fabient Textile Limited (Dissolved as at 31st January 2012)

·         Rosebys International Limited (Dissolved as at 31st January 2012)

·         DM Solar Farm Private Limited ( w. e. f. 04th June, 2012)

 

 

CAPITAL STRUCTURE

 

(AS ON: 31.03.2013)

 

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

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1000.193

1000.193

1000.193

(b) Reserves & Surplus

9674.534

8615.520

9194.660

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

10674.727

9615.713

10194.853

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

6220.815

7043.601

8735.233

(b) Deferred tax liabilities (Net)

1632.740

1663.431

1711.945

(c) Other long term liabilities

32.997

21.019

19.513

(d) long-term provisions

10.695

7.029

0.000

Total Non-current Liabilities (3)

7897.247

8735.080

10466.691

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

4638.632

4817.128

4472.302

(b) Trade payables

3841.116

2298.128

2295.978

(c) Other current liabilities

1561.988

1946.794

1509.014

(d) Short-term provisions

371.929

348.044

369.730

Total Current Liabilities (4)

10413.665

9410.094

8647.024

 

 

 

 

TOTAL

28985.639

27760.887

29308.568

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

18693.058

18707.731

19292.504

(ii) Intangible Assets

14.505

16.307

207.738

(iii) Capital work-in-progress

315.620

150.654

45.432

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

55.838

249.392

250.340

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

82.301

130.182

100.054

(e) Other Non-current assets

38.225

93.863

32.758

Total Non-Current Assets

19199.547

19348.129

19928.826

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

37.953

0.000

(b) Inventories

3910.711

3245.273

3831.918

(c) Trade receivables

2411.292

1894.925

1880.174

(d) Cash and cash equivalents

286.906

301.126

314.412

(e) Short-term loans and advances

3177.183

2894.971

3353.238

(f) Other current assets

0.000

38.510

0.000

Total Current Assets

9786.092

8412.758

9379.742

 

 

 

 

TOTAL

28985.639

27760.887

29308.568

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

21249.464

18967.315

14981.715

 

 

Other Income

29.849

96.266

132.955

 

 

TOTAL                                     (A)

21279.313

19063.581

15114.670

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material consumed

7909.135

7707.482

5936.142

 

 

Purchase of Stock-in-trade

612.912

920.143

185.590

 

 

Changes in inventories of finished goods, work-in-progress and

stock-in-trade

55.833

(243.541)

(251.466)

 

 

Employees benefits expenses

1110.334

999.252

956.738

 

 

Others expenses

7395.458

5835.642

4790.412

 

 

Exceptional Items

395.832

 

 

 

 

TOTAL                                     (B)

17479.504

6834.894

5747.150

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3799.809

3844.603

3497.254

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1579.618

1849.615

1104.348

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2220.191

1994.988

2392.906

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

819.672

808.486

843.955

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1400.519

1186.502

1548.951

 

 

 

 

 

Less

TAX                                                                  (H)

251.254

11.707

385.697

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1149.265

1174.795

1163.254

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1421.244

1457.027

2378.607

 

 

 

 

 

 

PRIOR PERIOD ADJUSTMENTS

0.392

1.889

6.429

 

 

 

 

 

 

EXCESS PROVISION FOR TAX FOR EARLIER YEARS

(0.108)

20.023

7.552

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

114.927

10000.000

116.325

 

 

Transfer to General Reserve as per Scheme of Agreement

0.000

0.000

1750.000

 

 

Proposed Dividend

200.039

200.039

200.039

 

 

Tax on Dividend

33.996

32.451

32.451

 

BALANCE CARRIED TO THE B/S

2221.831

1421.244

1457.027

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of finished goods of FOB basis

5538.872

5206.334

2545.818

 

 

Recovery towards freight etc. on exports

35.001

68.987

45.681

 

 

Export income from services

0.000

0.000

12.969

 

 

Others

0.700

3.047

0.000

 

TOTAL EARNINGS

5574.573

5278.368

2604.468

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials and Utilities

1939.656

820.262

832.042

 

 

Components and spare parts

40.489

46.081

99.304

 

 

Capital Goods

457.185

72.861

86.731

 

 

Trading Goods

314.823

330.619

83.868

 

TOTAL IMPORTS

2752.153

1269.823

1101.945

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

11.49

11.96

11.77

 

Diluted

11.49

11.96

11.20

 

 

QUARTERLY RESULTS

 

Particulars

30.06.2013

30.09.2013

31.12.2013

 

1st Quarter

2nd Quarter

3rd Quarter

Audited / UnAudited

UnAudited

UnAudited

UnAudited

Net Sales

5075.200

5720.200

5475.700

Total Expenditure

4091.000

4848.800

4475.500

PBIDT (Excl OI)

984.200

871.500

1000.200

Other Income

5.500

15.000

4.600

Operating Profit

989.700

886.500

1004.800

Interest

359.100

362.400

380.600

Exceptional Items

(56.500)

0.000

(41.000)

PBDT

574.100

524.100

583.200

Depreciation

204.300

207.500

205.500

Profit Before Tax

369.800

316.700

377.700

Tax

91.100

91.100

107.800

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

278.700

225.500

269.900

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

278.700

225.500

269.900

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
5.40
6.16

7.70

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
6.59
6.25

10.34

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.19
4.34

5.34

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.13
0.12

0.15

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
1.02
1.23

1.30

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
0.94
0.89

1.08

 

 

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns.)

(INR in Mlns.)

(INR in Mlns.)

Share Capital

1,000.193

1,000.193

1,000.193

Reserves & Surplus

9,194.660

8,615.520

9,674.534

Net worth

10,194.853

9,615.713

10,674.727

 

 

 

 

long-term borrowings

8,735.233

7,043.601

6,220.815

Short term borrowings

4,472.302

4,817.128

4,638.632

Total borrowings

13,207.535

11,860.729

10,859.447

Debt/Equity ratio

1.296

1.233

1.017

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Sales

14,981.715

18,967.315

21,249.464

 

 

26.603

12.032

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(INR)

(INR)

(INR)

Sales

14,981.715

18,967.315

21,249.464

Profit

1,163.254

1,174.795

1,149.265

 

7.76%

6.19%

5.41%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG-TERM DEBT

Rs. In Millions

Particular

31.03.2013

31.03.2012

31.03.2011

 

 

 

 

Current maturities of long-term debt

887.283

796.083

758.800

 

 

 

 

 

 

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

Yes

10]

Designation of contact person

Yes

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

Yes

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

No

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

YES

 

------------------------------------------------------------------------------------------------------------------------------

 

HIGH COURT OF GUJARAT

 

SPECIAL CIVIL APPLICATION No. 9913 of 2012

 

 

Status : PENDING

( Converted from : ST/9771/2012 )

CCIN No : 001021201209913

 

 

Next Listing Date:

17/04/2014

Coram

·                       HONOURABLE MR.JUSTICE R.M.CHHAYA

Not Before :

·                       HONOURABLE MR. JUSTICE B.J.SHETHNA

·                       HONOURABLE MR.JUSTICE K.M.THAKER

·                       HONOURABLE MR.JUSTICE RAJESH H.SHUKLA

S.NO.

Name of the Petitioner

Advocate On Record

1

GORDON JOHN TEXTILES LIMITED

MR HEMANG M SHAH for: Petitioner(s) 1

S.NO.

Name of the Respondant

Advocate On Record

1
2

GHCL LIMITED
RESERVE BANK OF INDIA

M/S TRIVEDI & GUPTA for :Respondent(s) 1
MR AMAR N BHATT for :Respondent(s) 2

 

 

 

Presented On

: 16/07/2012

Registered On

: 18/07/2012

 

 

Bench Category

: SINGLE BENCH

District

: AHMEDABAD

 

 

Case Originated From

: THROUGH ADVOCATE

Listed

: 26 times

 

 

StageName

: NOTICE & ADJOURNED MATTERS

 

 

 

Classification
  • SJ - NON-SERVICE - LOWER COURT - CODE OF CIVIL PROCEDURE, 1908 - OTHER MISCELLANEOUS MATTERS

Act
  • CONSTITUTION OF INDIA

 

Other Forums

 

S.No.

CASEDETAILS

TRIBUNAL REFERRENCE

ORDER PASSED BY

JUDGEMENT DATE

PLACE

1

EP/121/2010

-

-

31/03/2012

AHMEDABAD

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

16/07/2012

CERTIFIED COPY

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s) 1

5

MR HEMANG M SHAH:1

2

16/07/2012

VAKALATNAMA

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s) 1

5

MR HEMANG M SHAH:1

3

16/07/2012

MEMO OF APPEAL/PETITION/SUIT

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s) 1

50

MR HEMANG M SHAH:1

4

27/07/2012

AFFIDAVIT OF DS

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s) 1

0

MR HEMANG M SHAH:1

5

31/07/2012

VAKALATNAMA

MR AMAR N BHATT ADVOCATE
for RESPONDENT(s) 2

5

MR AMAR N BHATT:2

6

03/08/2012

VAKALATNAMA

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s) 1

5

M/S TRIVEDI & GUPTA:1

7

15/08/2012

VAKALATNAMA

MR AMAR N BHATT ADVOCATE
for RESPONDENT(s) 2

4

MR AMAR N BHATT:2

8

15/08/2012

VAKALATNAMA

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s) 1

-

M/S TRIVEDI & GUPTA:1

9

15/08/2012

VAKALATNAMA

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s) 1

-

MR HEMANG M SHAH:1

10

17/08/2012

VAKALATNAMA

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s) 1

5

M/S TRIVEDI & GUPTA:1

11

22/08/2012

AFFIDAVIT

MR HEMANG M SHAH ADVOCATE
for PETITIONER(s) 1

0

MR HEMANG M SHAH:1

12

11/03/2013

AFFIDAVIT IN REPLY

M/S TRIVEDI & GUPTA ADVOCATE
for RESPONDENT(s) 1

0

M/S TRIVEDI & GUPTA:1

13

13/03/2013

AFFIDAVIT

MR AMAR N BHATT ADVOCATE
for RESPONDENT(s) 2

0

MR AMAR N BHATT:2

 

Court Proceedings

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

19/12/2012

17

49

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE M.D. SHAH

2

10/01/2013

17

33

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE M.D. SHAH

3

28/01/2013

17

50

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE M.D. SHAH

4

19/02/2013

17

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE M.D. SHAH

5

13/03/2013

17

41

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE G.B.SHAH

6

09/04/2013

17

49

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE G.B.SHAH

7

29/04/2013

17

52

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE G.B.SHAH

8

19/06/2013

16

53

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE G.B.SHAH

9

17/07/2013

16

59

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE G.B.SHAH

10

08/08/2013

16

67

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE G.B.SHAH

11

13/09/2013

12

34

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

·                       HONOURABLE MR.JUSTICE G.B.SHAH

12

08/10/2013

12

43

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

13

12/11/2013

12

45

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

14

10/12/2013

12

33

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

15

26/12/2013

12

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

16

23/01/2014

15

40

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

·                       HONOURABLE MR.JUSTICE K.M.THAKER

17

24/01/2014

15

81

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE R.M.CHHAYA

18

21/02/2014

15

87

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE R.M.CHHAYA

19

07/03/2014

15

83

NOTICE & ADJOURNED MATTERS

NEXT DATE

·                       HONOURABLE MR.JUSTICE R.M.CHHAYA

20

17/04/2014

15

-

NOTICE & ADJOURNED MATTERS

 

·                       HONOURABLE MR.JUSTICE R.M.CHHAYA

 

------------------------------------------------------------------------------------------------------------------------------

 

CHARGES

 

ENTITY

PERSON

COMPETENT AUTHORITY

REGULATORY CHARGES

REGULATORY ACTION(S) / DATE OF ORDER

FURTHER DEVELOPMENTS

 

GHCL LTD.

 

SEBI

MISLED INVESTORS BY MAKING FALSE REPORTING OF PROMOTERS SHAREHOLDING TO STOCK EXCHANGES VIOLATING SECTION 21 OF SCRA 1956 READ WITH

IMPOSED PENALTY Rs.5.000 Millions 

25-OCT-2013

 

 

GHCL LTD.

 

SEBI

CONCEALED VITAL INFORMATION REGARDING ENCUMBRANCE OF AROUND 48% OF SHARES HELD BY PROMOTERS AND PROMOTER GROUP VIOLATING CLAUSE 35 OF LISTING AGREEMENT

CONCEALED VITAL INFORMATION REGARDING ENCUMBRANCE OF AROUND 48% OF SHARES HELD BY PROMOTERS AND PROMOTER GROUP VIOLATING REGULATIONS 3(D) AND 4(2) (F) OF SEBI PFUTP REGULATIONS, 2003

IMPOSED PENALTY Rs.12.500 Millions 

06-AUG-2013

 

 

------------------------------------------------------------------------------------------------------------------------------

 

UNSECURED LOAN

 

Particular

As on

31.03.2013

As on

31.03.2012

 

(Rs. In Millions)

Long Term Borrowings

 

 

Other Loans from banks

312.846

121.857

 

 

 

Total

 

312.846

121.857

 

 

PERFORMANCE HIGHLIGHTS

 

SODA ASH

 

The Global Soda Ash demand which was around 50 million tons in 2011 is estimated to be slightly more than 51 million metric tons in 2012 against a capacity of about 60 Million MT.

 

They are seeing demand growth, despite the fact that the market is currently oversupplied. The projected growth for this year is 3 to 4% with most of the growth expected to be in China, India, Russia and South America. World operating rates will not improve due to continued over capacity.

 

Due to the global cost disparities, relative production costs will be a key issue for the soda ash industry in the future. Though demand for Soda Ash remained little better during the year, price pressure from key inputs such as salt and energy weighed heavily. Demand for glass and detergents in emerging world markets surged in the last few years.

 

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. Global growth is set to pick up gradually and unevenly across the regions of the world. North America and Asia are on track to lead the way, with many other emerging regions and economies also doing their part.

 

Despite depressed conditions prevailing in the Indian Economy, Soda Ash demand witnessed a robust growth of around 9 to 10% in 2012-13. Market feedback suggests other than Glass; all other consuming segments lead by Detergents recorded handsome growth. Most affected sectors are container glass and flat glass, which are under pressure because of over capacity and slow growth in demand. They are under pressure and continue to struggle with sharp decline in sales and stock pile up and also their financial status is a cause of concern. Despite implementation of Anti-Dumping Duty effective July 2012, imports continue to flow in high volumes. The price differential between domestic and imported product is becoming bigger, landed prices of imported product are much lower than those of domestic despite ADD which is impacting pricing and discounting. Higher import continued to exert pressure on domestic manufacturers.

 

Soda Ash supply in India remains in excess of demand due to the high level of imports that the market is having to absorb. Domestic manufacturers are confident that imports will be reduced in this year. The Finance Ministry, Government of India has imposed a definitive anti-dumping duty on soda ash imports from Russia and Turkey. This anti-dumping duty will be valid for a period of five years from 18th April, 2013. The industry expects this additional trade restrictions (ADD) should bide well for the Indian Soda Ash industry. In addition, there is a view that the current level of exports from China is not sustainable given that the Chinese are exporting below their production cost.

 

The Indian Soda Ash market constitutes of two varieties – Light (used in detergent industry) and Dense (used in Glass industry), with a share of 60% and 40% respectively. Total installed capacity in India was 3.1 Million MT. With an estimated production of about 2.5 Million MT in last financial year (2012- 13) 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.

 

At present the Soda Ash plant has a capacity of 8.50 lacs MTPA. During the financial year 2012-13 the company has achieved highest production around 7.24 lacs MT. This year, the Company has also achieved highest domestic sales i.e. 6.35 lacs MT and total sales of Soda Ash is 6.61 lacs MT including exports.

 

 

BI-CARBONATE (BICARB)

 

During the year, the Company achieved production of Bi- Carbonate 23593 tons against 23369 tons in the previous year. During the year the Company achieved sales of Bi-Carbonate 23433 tons against 22939 tons in the previous year.

 

 

HOME TEXTILE

 

The Indian Textile Industry, 2nd largest in the world, after witnessing growth of around 10% in FY 2009-10 & 2010-11, had shrank during the FY’2011-12 mainly due to weak global economy and extreme volatility in cotton prices. However, FY 2012-13 started on a positive note for the Textile Industry, mainly due to the reason that prices of cotton had stabilized and the Government of India providing a number of export promotion policies for the Textile sector including the continuation of TUFS (Technology Upgradation Fund Scheme). There is some recovery in demand and prices for textiles products in domestic as well as global markets; hence the outlook for the textile industry looks positive.

 

In the Textile Business of the company, the performance of Yarn business has improved significantly as compared to the previous year, which is mainly due to better demand in yarn, increase in yarn prices and stability of cotton prices. The Madeups (Home Textile) Business operations are now fully stabilizedand doing reasonably well mainly due to the market sentiments in US continue to show improving trends. However, forex volatility significantly impacted the performance of the Home Textile division.

 

The Revenue of Home Textile division is at Rs.6170.400 Millions during the financial year 2012-13 against Rs.5431.500 Millions in 2011-12, thereby registering a growth of 14% 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 Bed Bath and Beyond, Macys, K-Mart, Springs, Revman and Belk etc. The Company’s Home Textile division got confirmed annual business of approx US$50 million from an overseas retailer, which is a long term business and will occupy about 40% of capacity and in turn this may help to achieve better capacity utilization in coming years.

 

The Revenue of Yarn division is at Rs.3818.700 Millions during the financial year 2012-13 against Rs.2965.700 Millions in 2011-12, thereby registering a handsome growth of 29% over previous year. The performance of Yarn business improved significantly as compared to the previous year, which is mainly due to better demand in Yarn and increase in yarn prices. Both Domestic and international cotton prices remained stable. But, shortage of skilled labour as well as grim power situation is the main challenges for yarn industry including the Company. However, the aggressive power trading by the Company resulted in substantial savings partially offsetting the aforesaid impact. Overall outlook for Spinning Industry looks steady and with stable cotton prices, timely cotton coverage and improved yarn price scenario, the directors expect a profitable period ahead for the Company.

 

 

AWARDS AND RECOGNITIONS

 

Subject achieved a new milestone as the Home Textile Division, Vapi has received “Texprocil’s Export – Bronze Award 2011-12”.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Review of Economy

 

As per the Advanced Estimates released by the Central Statistical Organisation (CSO), the growth in GDP during 2012- 13 is estimated at 5% as compared to a growth rate of 6.2% in 2011-12. India's economic growth rate this fiscal is estimated to be sharply lower at 5%, lowest in a decade, on account of poor performance of manufacturing, agriculture and services sector. This estimate by CSO is even lower than what has been projected by the government and RBI.

 

Following the slowdown induced by the global financial crisis in 2008-09, the Indian economy responded strongly to fiscal and monetary stimulus and achieved a growth rate of 8.6% and 9.3% respectively in 2009-10 and 2010-11. However, with the economy exhibiting inflationary tendencies, the Reserve Bank of India (RBI) started raising policy rates in March 2010. High rates as well as policy constraints adversely impacted investment, and in the subsequent two years viz. 2011-12 and 2012-13, the growth rate slowed to 6.2% and 5% respectively. Nevertheless, despite this slowdown, the compound annual growth rate (CAGR) for gross domestic product (GDP) at factor cost, over the decade ending 2012-13 is 7.9%.

 

The moderation in growth is primarily attributable to weakness in industry (comprising the mining and quarrying, manufacturing, electricity, gas and water supply, and construction sectors), which registered a growth rate of only 3.5% and 3.1% in 2011-12 and 2012-13 respectively. The rate of growth of the manufacturing sector was even lower at 2.7% and 1.9% for these two years respectively. Growth in agriculture has also been weak in 2012- 13, following lower-than-normal rainfall, especially in the initial phases (months of June and July) of the south-west monsoon. After achieving double-digit growth continuously for five years and narrowly missing double digits in the sixth (between 2005- 06 and 2010-11), the growth rate of the services sector also declined to 8.2% in 2011-12 and 6.6% in 2012-13.

 

Why has the economy slowed down so rapidly despite recovering strongly from the global financial crisis? A number of factors are responsible viz. inflation, investment bottlenecks as well as the tighter monetary policy. Moreover, even as the economy slowed, it was also hit by slowing global economy, weighed down by the crisis in the Euro zone and uncertainties about fiscal policy in the United States of America, and a weak monsoon in its initial phase.

 

The reduction in private investment could be attributed to a number of factors. First is the increase in policy rates (to combat inflation and inflationary expectations). Between March 2010 and October 2011, the RBI raised the repo rate by 375 basis points (bps), thus raising the cost of borrowings in a bid to reduce demand. Another reason for lower private investment could be lower demand for Indian exports from the rest of the world, particularly the advanced countries. A third possible reason for lower corporate investment is policy bottlenecks (such as obtaining environmental permissions, fuel / coal linkages, mining bans and difficulties in land acquisition), which led to a number of large projects becoming stalled, which may in turn have discouraged new investment. Lack of growth and slowdown in investment are feeding into each other, with causation flowing both ways. High interest rates have contributed to the depressed investment climate as well. However, given the stability in the repo rate between April and December 2012 and three successive reductions in the repo rate by 25bps each by RBI in January, March and May 2013, the latest data suggest that interest costs of companies have moderated slightly.

 

Headline WPI inflation remained relatively sticky around 7 to 8 per cent in the current financial year and moderated to a three year low of 7.18% in December 2012. Average headline WPI inflation in 2012 (April-December) moderated to 7.55% from 9.35% in the corresponding period of the previous year. The decline is mainly due to moderation in non-food manufacturing inflation (core as defined by the RBI). Core inflation remains muted and declined to 4.24% in December 2012 from its peak of 8.35% in November 2011. Apart from monetary measures taken by the RBI, softening of international and domestic prices of metals, chemicals, and textiles products also contributed to the moderation of core inflation. Elevated food inflation, however, remains an area of concern with inflation gradually inching upwards to double digits in December 2012.

 

As growth slowed and government revenues did not keep pace with spending, the fiscal deficit threatened to breach the target. With government savings falling, and private savings also shrinking, the CAD also widened. India's current account deficit (CAD), which is the difference between inflow and outflow of foreign funds, widened to a historic high of 6.7% of GDP in December quarter to USD 32 billion, mainly on account of a surge in oil and gold imports, besides weak exports. CAD was at USD 20 billion (4.4% of GDP) in the corresponding quarter of last fiscal. The government has already taken some important policy measures to bridge the fiscal deficit. In addition, one helpful potential development is in sight. The goods and services tax (GST), if approved, would replace a number of state and central taxes, make India more of a national integrated market, and bring more producers into the tax net. By improving efficiency as well as revenues, it can add substantially to growth as well as helping government finances.

 

The government has also taken a number of steps to revive investment and growth. The Cabinet Committee on Investments (CCI) headed by the Prime Minister has been set up to fast-track mega projects of more than Rs. 10000.000 Millions. The Land Acquisition and Rehabilitation and Resettlement (LARR) Bill, could bring greater clarity, reduce uncertainty, and thereby aid investments. Apart from this a scheme for restructuring the debts of state power distribution companies and permitting FDI in a number of areas including multi-brand retail, power exchanges, and civil aviation and also increasing investment in irrigation, storage and cold storage networks. Steps have also been taken on financial sector reform. The Banking Laws (Amendment) Act 2012 strengthens the regulatory powers of the RBI and paves the way for grant of new bank licences by the RBI. Progress on the Delhi-Mumbai Industrial Corridor has the potential of providing a fillip to the investment climate of the country. Policy rate cuts by the RBI and improving business sentiments could also support a revival in investments.

 

 

COMPANY PERFORMANCE- PERFORMANCE HIGHLIGHTS

 

• Revenue for the financial year ended 31st March 2013 has increased by 10% to Rs.21279.300 Millions as against Rs.19063.600 Millions for the previous Financial Year ended 31st March 2012.

 

• Profit before financial expenses and depreciation for the financial year ended March 31, 2013 has risen by 8% to Rs.4195.600 Millions as compared to Rs.3844.600 Millions for the previous Financial Year ended 31st March 2012.

 

• PBT (Profit Before Tax) for the financial year ended March 31, 2013 is higher by 15% at Rs.1400.500 Millions against Rs.1186.500 Millions for the previous Financial Year ended 31st March 2012.

 

 

INORGANIC CHEMICALS (SODA ASH) GLOBAL SODA ASH INDUSTRY

 

Demand-Supply Scenario

 

Demand

 

As economic conditions improved in many parts of the world, overall global demand for soda ash is said to have increased by about 1.5 to 2.00 % in 2012. Following a sharp global decline after the 2009 recession, developing economies, particularly those in Asia and South America, continue to drive demand for soda ash. According to the 2013 February IHS Chemical Global Soda Ash Report, the estimated world soda ash demand grew by 1.8%, or 1 million tons. The total world demand for soda ash was estimated to be slightly more than 51+ million metric tons in

2012 with an estimated capacity of 60 million tons. The Global Soda Ash demand was around 50 million tons in 2011 with a capacity of 57 million tons. They are seeing demand growth, despite the fact that the market is currently oversupplied. The projected growth for this year is 3 to 4% with most of the growth expected to be in China, India, Russia and South America. World operating rates will not improve due to continued over capacity.

 

Due to the global cost disparities, relative production costs will be a key issue for the soda ash industry in the future. Though demand for Soda Ash remained little better during the year, price pressure from key inputs such as salt and energy weighed heavily. Demand for glass and detergents in emerging world markets surged in the last few years.

 

 

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 2012 distribution of soda ash by end use as under;

 

·         Glass 54%

·         Detergent and Soap formulations 15%

·         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. World’s total soda ash demand which at present is at 51.00 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. Global growth is set to pick up gradually and unevenly across the regions of the world. North America and Asia are on track to lead the way, with many other emerging regions and economies also doing their part.

 

Indian Scenario

 

Notwithstanding a disappointing 5.00% growth in GDP in the 2012-13 FY, recent report suggest India’s growth rate will begin to quicken. The Indian economy is estimated to grow by 6.5 per cent in 2013-14. In spite of the slow industrial growth of the Indian economy, Soda Ash demand witnessed a robust growth of 10% in 2012-13. Other than the Container Glass producers who are under pressure because of over capacity and shrinkage of demand due to replacement by PET in some segments, all other consuming segments led by Detergents recorded handsome growth. It is expected that on the back of higher improved GDP growth projected and growth in Glass (Construction/ Automobiles) and Detergents (FMCG penetration and growth) Soda Ash demand will continue to witness a reasonable growth.

 

Soda Ash supply in India remains in excess of demand due to the high level of imports that the market is having to absorb. Domestic manufacturers though are confident that imports will be reduced in this year. The industry expects that additional trade restrictions (ADD) will be put in place this year; namely against Turkey and Russia. In addition, there is a view that the current level of exports from China is not sustainable given that the Chinese are exporting below their production cost.

 

The Indian Soda Ash market constitutes of two varieties – Light (used in detergent industry) and Dense (used in Glass industry), with a share of 60% and 40% respectively. Total installed capacity in India was 3.1 Million MT. With an estimated production of about 2.5 Million MT in last financial year (2012-13) 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 Govt. of Gujarat.

 

GHCL Soda Ash Business

 

GHCL Limited is a leading Indian producer of soda ash is wellpoised to tap opportunities in both the Detergents and the Glass industries. 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. 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 Industry plays a major role in the economy of the country and contributes about 11% to Industrial Production, 14% to the manufacturing sector and around 4% to GDP of the country. Further, it also contributes about 12% of the country’s total export earnings. 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. Besides, another 54.85 million people are engaged in its allied activities. 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’2011-12 mainly due to weak global economy and extreme volatility in cotton prices. However, FY 2012-13 started on a positive note for the Textile Industry, mainly due to the reason that prices of cotton have stabilized and the Government of India providing a number of export promotion policies for the Textile sector. There is some recovery in demand and prices for textiles products in domestic as well as global markets and some indications of a possible improvement in the economy of the West. The IIP data for December 2012 shows better growth in textiles as compared to the earlier months.

 

Overall the outlook of the Indian Textile Industry looks positive, primarily because of the abovementioned reasons that for the past one year the prices of cotton have stabilized and the Government of India providing a number of export promotion policies for the Textile sector. Besides, the Government also announced the continuation of TUFS (Technology Upgradation Fund Scheme) during the 12th Plan. This initiative may help to achieve the objective of improving the competitiveness and overall long term viability of the Indian Textiles Industry so that it may have access to timely and adequate capital at internationally comparable rates of interest in order to upgrade its technology level. The Government had also 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 1,50,280 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 performance of Yarn business has improved significantly as compared to the previous year, which is mainly due to better demand in yarn, increase in yarn prices and stability of cotton prices. Further, the Made-ups (Home Textiles) Business operations are now fully stabilized and doing reasonably well mainly due to the market sentiments in US continue to show improving trends. However, forex volatility significantly impacted the performance. The Home Textile Division, Vapi has received Texprocil’s Export – Bronze Award 2011-12.

 

The Gross Revenue of Home Textiles division is at Rs.6170.500 Millions during the financial year 2012-13 against Rs.5431.500 Millions in 2011-12, thereby registering a growth of 14% 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 Bed Bath and Beyond, Macys, K-Mart, Springs, Revman and Belk etc. The Company got confirmed annual business of approx US$50 million from an overseas retailer, which is a long term business and will occupy about 40% of capacity and in turn this may help to achieve better capacity utilization in coming years. Market sentiment in US looks better and the Company is focusing on US market with large volume programs. With depreciation in Indian Rupee, tremendous interest has been getting generated in US retail to shift some more business to India which further looked promising for Indian home textile industry going forward. However, pricing pressure and volatility in forex still remain huge challenges, which may keep margins under pressure. The division witnessed increase in raw material and gas prices in the recent months. Hence, management is in the process to move on coal based steam boiler to control the gas price impact, which may be completed by October 2013. Also, the Home Textiles division is getting 2% export benefit w.e.f January 1, 2013; which may be advantageous to boost up bottom line of the Company

 

The performance of Yarn business improved significantly as compared to the previous year, which is mainly due to better demand in Yarn and increase in yarn prices. Both Domestic and international cotton prices remained stable. But, shortage of skilled labour as well as grim power situation is the main challenges for yarn industry including GHCL. However, the aggressive power trading by the Company resulted in substantial savings partially offsetting the aforesaid impact. The Gross Revenue of Yarn division is at Rs.3818.700 Millions during the financial year 2012-13 against Rs.2965.700 Millions in 2011-12, thereby registering a handsome growth of 29% over previous year. Overall outlook for Spinning Industry looks steady and with stable cotton prices, timely cotton coverage and improved yarn price scenario, they expect a profitable period ahead for the Company.

 

 

CONTINGENT LIABILITIES:

 

Particular

31.03.2013

 

31.03.2012

 

(Rs, In Millions)

(i) Guarantees issued by banks

160.401

154.878

(ii) Bills discounted with banks (since realized)

548.945

534.095

(iii) Claims against the Company not acknowledged as debts

 

 

- Income Tax & Wealth Tax

7.289

10.271

- Sales Tax / VAT

0.985

0.399

- Excise & Service Tax

513.953

349.844

- Other claims

185.966

108.423

(iv) Corporate guarantee to Bank on behalf of subsidiaries of the Company

(of the above, US $ 40 Million loan is due to be repaid on 27th July 2013)

5256.573

5003.668

 

 

FIXED ASSETS

 

Tangible Assets

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Plant and Machinery

·         Wind Turbine Generators

·         Furniture and Fixtures

·         Office Equipments

·         Vehicles

·         Leased Mines

·         Salt Works Reservoirs and Pans

 

Intangible Assets

·         Goodwill

·         Software

·         Trade Mark

 

 

 

AS PER WEBSITE DETAILS

 

Press Release

 

GHCL TO ABSORB MEENAKSHI MILLS

 

AHMEDABAD: The Sanjay Dalmia-controlled Rs.4120.000 Millions Gujarat Heavy Chemicals Limited (GHCL) will amalgamate its loss-making textile company, Sree Meenakshi Mills Limited (SMML), with itself with retrospective effect from April 01, 2001.

 

While Dalmia has around 40 per cent stake in GHCL, his stake in SMML is over 80 per cent. That means, effectively shareholders of GHCL are paying up for the losses piled up by SMML.

 

But, GHCL officials claim that the amalgamation will benefit GHCL as SMML's accumulated losses can be used by GHCL for tax advantages. GHCL will also get SMML's 'strong' asset base. While GHCL makes soda ash, SMML makes cotton and blended yarn.

 

GHCL has reported sales of Rs.4120.000 Millions and net profit of Rs.454.000 Millions for the 12 months ended March 31, 2002. But, these figures do not include the effect of the amalgamation according to company officials. Consolidated results of the amalgamated entity will be declared in July. Shareholders of SMML would get three shares of GHCL for every 10 shares of SMML, with face value being Rs.10 for both companies.

 

GHCL officials were not willing to reveal how they will adjust the losses of SMML, a Board for Industrial and Financial Reconstruction (BIFR) case for several years. As of March 31, 2001, SMML had negative reserves of Rs.58 Millions on a share capital of Rs.60.000 Millions and total debt of Rs.510.000 Millions. As of FY01 end GHCL had made advances of Rs.510.000 Millions to SMML. Rs.333.300 Millions were paid to financial institutions and banks as one time settlement. Another Rs.134.000 Millions were given for implementing a VRS and revamping equipment and Rs.42.000 Millions for some creditors.

 

 

GHCL - PRESS RELEASE

 

Officials at credit rating agency ICRA said a review of GHCL's financials is underway and the effect of SMML's amalgamation is being studied. In its last review in April 2001, ICRA had downgraded the long-term, medium-term and short-term ratings assigned to various debt instruments of GHCL from LA+, MA- and A1+ to LA-, MA and A1, respectively.

 

ICRA report stated that while the revised long- and medium-term ratings continue to indicate adequate safety, the degree of safety has declined since the earlier rating.

 

GHCL Limited has announced that the Board of Directors of the Company on March 24, 2008 has given in principle approval to restructure Company's business.


As per the approved plan, the erstwhile GHCL would continue to be listed on the Indian stock exchanges housing the business of soda ash. The Home Textile business of sourcing and manufacturing is proposed to be shifted to 100% subsidiary of GHCL Limited. The Retail entity would have the business of India and UK retail ventures. The plan envisages shifting the business of Rosebys UK to the 100% Retail subsidiary in India.


The Company at its Extra Ordinary General Meeting (EGM) held last week has approved the Employees Stock Options Scheme in supercession to earlier scheme approved in 2006. The EGM also approved the grant of Stock Options to employees of subsidiary Companies.


Speaking on the initiative, Mr. Sanjay Dalmia, Chairman GHCL Said, "This restructuring initiative would lead to creation of independently focused organizations with a potential to achieve fast growth in their individual arenas. The restructuring would provide enhanced financial flexibility to the businesses in order to independently raise resources for their future growth requirement and unlock potential valuations for the shareholders.


This initiative would get optimal valuation for the retail venture as an independently and separately listed entity along with increasing its ability to attract and retain high quality talent through implementation of ESOPs." He added further that given the length and breath of its presence in the UK and the brands Company services within its retail outfits (from Well known established UK brands to global brands like Disney etc), the Retail entity should offer a value unlocking proposition for its shareholders.


The Company at present is in the final stages of launching its retail in Indian market through the Rosebys brand. The Company is set to launch its exclusive range of home textiles retail chain stores in the country. Effective launch of the product range is expected to roll out in early next quarter.


GHCL is the First vertically integrated player in the world in the arena of Home Textiles, from Fiber to Fashion with a set up that houses Retail capabilities backed by a Global Sourcing and Design of this scale.


The Home Textiles entity is set to become one of the strongest sourcing Power Houses in the world backed by its global network of vendors along with the sourcing teams. Company's Global Sourcing Organisation would result in significant cost reduction in terms of manpower as well as logistics.


GHCL had acquired three companies in the USA apart from the largest Home Textiles Retail chain of the UK with more than 300 stores across UK operating under the brand name of Rosebys. The US acquisitions included Dan River, HW Baker and Best Textiles primarily catering to B2B segment. With a wide structure available under its umbrella, GHCL has been able to create efficiencies in Global Sourcing with its presence in 3 continents, and 6 sourcing hubs of the world (India, China, Pakistan, Cambodia, Turkey and Mexico). The Company has created strong Global Design Capabilities with centers in USA, EU and India and has over 40 designers worldwide in its fold along with relationships in Lifestyle licensing.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 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.58.84

UK Pound

1

Rs.98.41

Euro

1

Rs.80.03

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

47

 

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

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.