TO THE MEMBERS
Your Directors present their 75th Annual Report and Audited Accounts for the Financial Year ended 31st March, 2014 -
1. Financial Results
|(Rs. in lacs)||(Rs. in lacs)|
|Less : Provisions|
|Profit Before Tax||5219.37||16041.02|
|Tax: Current Period||1107.81||3255.00|
|MAT Credit available for set off / Utilized||(84.59)||371.00|
|Profit After Current||4282.78||12402.35|
|Tax & Tax Adjust- ments|
|Profit after Tax||3787.94||10488.85|
|Add: Balance brought forward||7897.02||2291.81|
|Profit available for Appropriation||11684.96||12780.66|
|Balance carried for- ward||8301.36||7897.02|
Your Directors recommend payment of Dividend at Re.0.36 per equity share of Rs. 2 each.
The sales for the year are Rs.1325.55 crores compared to Rs.1327.80 crores in the previous year. The Gross Profit for the year (before depreciation) is Rs.103.21 crores against Rs.213.32 crores in previous year. The profit before tax amounted to Rs.52.19 crores as against Rs.160.41 crores in the previous year. The profit after provision of current tax is Rs.42.83 crores against Rs.124.02 crores, of last year and profit after deferred tax is Rs.37.88 crores against Rs.104.89 crores of last year, Deferred Tax is only a provision as per accounting guidelines and not an outflow. Lower realization on export of Synthetic Rutile has largely affected decline in profits
The Companys exports are Rs. 223.36 crores as compared to Rs. 417.61crores in the previous year. This reduction in Export Turnover is on account of decrease in realization on Synthetic Rutile.
5. Divisionwise Performance:
a) PVC Division:
The turnover of the division is Rs.533.04 crores as compared to Rs.431.29 crores in the previous year,an increase in turnover by 24%. The increase in turnover is on account of better realization on PVC. The demand for PVC continues to show positive growth. The Government has identified irrigation, power and infrastructure, as thrust areas and increased activity in these sectors are likely to boost demand of PVC Resin.
b) Caustic Soda Division:
The turnover of the division is Rs. 533.04 crores as compared to Rs.697.80 crores in the previous year, a decrease of 24%. The reduction in turnover of the division is mainly on account of decrease in realization on Synthethic Rutile.
c) Soda Ash Division:
The turnover of the division is Rs.177.66 crores as compared to Rs.183.55 crores in the previous year. The decrease in turnover in the division is due to reduction in quantity of the product sold manufactured by the devision.
6. PROJECTS IMPLEMENTED AND UNDER IMPLEMENTATION
6.1 Projects Under Implementation
6.1.1. SYNTHETIC IRON OXIDE PIGMENT AND CALCIUM CHLORIDE PROJECT :-
The work on Synthetic Iron Oxide Pigment (SIOP) project is in advanced stage of completion. Trial runs for Synthetic Iron Oxide Pigment have started and the plant will stabilize soon. Technical and Engineering Services for the plant has been provided by UHDE India Ltd. The facility will enable the company to produce a commercially viable product utilise its waste. Calcium Chloride and Pure Water will be recovered from the effluent of Synthetic Iron Oxide Pigment Plant.
Both Synthetic Iron Oxide Pigment and Calcium Chloride facility have been given 100% EOU status.
Besides employing DCWs in-house developed technology, the company has made an agreement with Rockwood Italia (Group Company of Rockwood Pigments USA) for manufacture of red iron oxide pigment.
An off take agreement has been signed with Rockwood Italia for purchase of 50% iron oxide pigment Balance 50% of the product can be sold at companys option.
6.1.2. PVC Automation-Cum-Balancing Equipment Program
Under PVC Automation-Cum-Balancing Equipment program the company has commissioned VCM Stripping tower and Fluidised Bed Dryer (FBD) at its PVC unit in Sahupuram, Tamilnadu. This will help the company in reducing the cost of the product and increase in PVC production.
6.1.3. Chlorinated Poly Vinyl Chloride (C-PVC)
The Company has signed Technology License agreement with Arkema of France for putting up Chlorinated Poly Vinyl Chloride (C-PVC) Plant at its Sahupuram Facility, in Tamilnadu. The UHDE India, has been appointed to do detailed engineering for the project. The work on this project has started and mechanical erection of the plant is estimated to be completed by fourth quarter of 2014-15.
6.1.4. Producer Gas Plant :-
The company has established Producer Gas Plantatits Sahupuram unit, in Tamilnadu, to produce gas from coal the trail runs of the same have started.
This will help the company to replace high cost Furnace Oil, resulting in lower cost of heating in various manufacturing units of the company at its Sahupuram works.
6.1.5. Reverse Osmosis Plant (RO) :-
To meet ever increasing water requirement of companys Shupuram unit, in Tamilnadu, and to guard against water scarcity in case of scanty rains, the company has established a Reverse Osmosis (R.O), plant to recycle hard / used water back into the process. This project has been commissioned and will help the company meet water requirement of its Sahupuram unit.
6.1.6. CALCIUM CHLORIDE PLANT, DHARAGHANDRA
The Calcium Chloride project is having technical problem. It may not be possible to produce calcium chloride in the plant and the equipments erected for this plant are being used in the soda ash plant.
7. Corporate Governance
The report on Corporate Governance is annexed to this report.
8. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules 1988 is set out in the Annexure forming part of this Report.
9. Particulars of Employees:
Information in accordance with Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is set out in the Annexure forming part of this Report.
10.Environment and Safety Measures
The Company is committed to Industrial Safety and Environment Protection and these are on going processes at the Companys various plants. The Sahupuram Unit has been granted ISO 14001 Certificate for complying with environment protection and safety.
Shri. Bakul Jain, Director, retire by rotation at the forthcoming Annual General Meeting, and being eligible, offer himselves for reappointment.
Shir. Vivek Jain was appointed as an Additional Director and will hold office upto the date of forth coming Annual General Meeting. The company has received notice from Director signifying his intention to propose his appointment as Director retiring by rotation.
Shri. Salil Kapoor was appointed as an Additional Director and will hold office upto the date of forth coming Annual General Meeting The Company has recveived notice from a member signifying his intension to proposr Shri. Salil kapoor as an Independent Director of period of five consecutive years. Resolutions have been incorporated in the notice of the forth comming Annual General Meeting for appointment of Shri. Vivek Jain as a Director retiring by rotation and Shri. Salil Kapoor, as an Independent Director for a period of 5 consecutive years
In terms of Section 149 of the Companies Act, 2013, the present Directors Shri. Sodshal Singh Dev of Dhrangadhra, Ms.Sujata Rangenekar and Shir. D.Ganapathy are proposed to be appointed as Independent Directors for a Consequetive period of 5 years at the forthcoming Annual General Meeting and resolutions for the said purpose are incorporated in the notice of the said Annual General Meeting.
During the year Dr.S.C.Jain, Managing Director since 44 years and also the Chairman of the Board since 30 years, has resigned as Managing Director and Director on 28th February, 2014. During his long tenure he made immense contributions for the growth of the Company and spearheaded many projects which are today the backbone of the Company.
The Board places on record its appreciation for the outstanding contributions made by him over several decades and unanimously appointed him as Chairman Emeritus of the Company and also a permanent invitee for all Board Meetings. Also Shri.Berjis Desai, Shri. F.H.Tapia, Shri.S.K.Jalan and Shri. R.V.Ruia, have resigned from the Board during the year. The Board places on record its appreciation for the valuable services rendered by them during their tenure.
12.Auditors and Auditors Report:
M/s V. Sankar Aiyar & Co., Chartered Accountants - Statutory Auditors of the Company retire at the forthcoming Annual General Meeting and are eligible for reappointment.
In accordance with the directions received from the Department of Company Affairs, the company has appointed M/s. N.D.Birla & Company, Ahmedabad and M/s.R.Nanabhoy & Company, Mumbai for conducting the Cost Audit of the Companys Soda Ash and Caustic Soda Divisions respectively for the financial year 2012-13. Their appointments were approved by the Ministry of Corporate Affairs. They have conducted the cost audit for the financial year 2012-13 of respective divisions and have filed the cost audit report with the central government.
14. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Company has diversified operations with three business segments viz. PVC, Chloro Alkali and Soda Ash. It is thus reasonably protected from the vagaries of individual business cycles of these products.
The Company, one of the countrys five producers of PVC resin, has maintained its market share of nearly 7%. Proposed implementation of Anti-dumping duty on PVC resin imports from China, USA, Mexico, European Union, Indonesia will protect the domestic industry against dumping of PVC resin from these countries. Also automation programme in this unit will help the company in reducing cost and increasing production on this division.
Caustic Soda Division:
The Company continues to be a major player in South India with a market share of approximately 20%. The demand for caustic soda is expected to grow at a steady rate, specially with increased demand from alumina manufacturers. The company has captive use of HCL & Chlorine which helps to maintain Caustic Production at full level.
Soda Ash Division:
The Soda Ash Industry continues to grow at a compounded rate of 4% - 5% per annum and this trend is expected to continue. Antidumping duty imposed on import of Soda Ash from countries like Iran, Pakistan, China, Ukraine, Kenya, European Union and the US by Govt., of India, will protect the industry against dumping of Soda Ash from these countries.
15. Internal Control Systems:
The Company has an adequate internal control procedure commensurate with the nature of its business and size of its operations. Internal Audit is conducted on a regular basis by a reputed firm of Chartered Accountants. The reports of the internal audit along with comments from the management are placed for review before audit committee.
16. Human Resources:
The Company has been following procedure for recruitment of best personnel for all the departments and is making continuous efforts to retain and groom them to meet its present and future requirements. The Company sponsors employees for various seminars on finance, operations, marketing and human resource development to update their skills and develop close coordination with their counterparts in industries. This is basically done to enhance their skills in order to achieve an optimum output from them.
17. Cautionary Note:
Statement in this report describing the companys objectives, projections, estimates, expectations and predictions may be "forward looking statements". Actual results could differ materially from those expressed or implied due to variation in prices of raw materials, demand and realization of finished goods, changes in Government regulations, tax regimes, economic developments and other incidental factors.
18. DIRECTORS RESPONSIBILITY STATEMENT
In terms of Section 217 (2AA) of the Companies Act, 1956, your Directors have:
a) Followed in the preparation of the Annual Accounts, the applicable accounting standards with proper explanation relating to material departures;
b) Selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of your Company at the end of financial year and of the profit of your Company for that period;
c) Taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities and
d) Prepared the Annual Accounts on a going concern basis.
All the properties of the Company are adequately insured.
20. Industrial Relations:
The relations between the employees and the management were cordial and an atmosphere of understanding prevailed throughout the year.
The Board places on record their grateful appreciation for the assistance and co-operation received from the Financial Institutions and the Banks.
On behalf of the Board of Directors
Pramod Kumar Jain
Chairman and Managing Director
Mumbai, 19th May2014
|23-May-15||DCW Q4 net profit at Rs. 17.6 Crore|
|09-Feb-11||DCW Q3 PAT at Rs 30.5mn|
|01-Dec-10||DCW enters into agreement with Arkema|
|03-Nov-10||DCW Q2 net profit at Rs114.8 mn|
|14-Oct-10||DCW inks license pact with Rockwood Italia|
|22-Jun-10||Mr. Vimal Jain, Sr. VP - Finance, DCW Ltd|
Shashi Chand Jain , Chairman Emeritus
Sodhsal Singh Dev , Director
Pramod Kumar Jain , Chairman & Managing Director
Bakul Jain , Managing Director
Company Head Office / Quarters:
No 2 Guest House,
Phone : Gujarat-91-2754-5719967-76 / Gujarat-
Fax : Gujarat-91-2754-5755731 / Gujarat-
Web : http://www.dcwltd.com
Bigshare Services Pvt Ltd
E-2/3 Ansa Indl Est,Saki Vihar Road,Sakinaka Andheri(E),Mumbai - 400072
|Scheme Name||No. of Shares|
|Goldman Sachs CNX 500 Fund (G)||1,760|
|Goldman Sachs CNX 500 Fund (G)||1,838|
|Goldman Sachs CNX 500 Fund (G)||1,838|
|Goldman Sachs CNX 500 Fund (G)||1,893|
|Goldman Sachs CNX 500 Fund (G)||1,893|