Goa Carbon Ltd Management Discussions.

Global Economy

Compounding the damage from the COVID-19 pandemic, the Russian invasion of Ukraine has magnified the slowdown in the global economy, which is entering what could become a protracted period of feeble growth and elevated inflation, according to the World Bank’s latest Global Economic

Prospects report. This raises the risk of stagflation, with potentially harmful consequences for middle- and low-income economies alike.

Global growth is expected to slump from 5.7 percent in 2021 to 2.9 percent in 2022- significantly lower than 4.1 percent that was anticipated in January. It is expected to hover around that pace over 2023-24, as the war in Ukraine disrupts activity, investment, and trade in the near term, pent-up demand fades, and fiscal and m o n e t a r y p o l i c y accomm odation is withdrawn. As a result of the damage from the pandemic and the war, the level of per capita income in developing economies this year will be nearly 5 percent below its pre-pandemic trend.

The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid,as per the World Bank.

Global inflation is expected to moderate next year supported by impact of high interest rates.Central banks around the world have been raising interest rates and taking other measures to curb inflation by tightening financial conditions. Though commodity prices remain uncertain because of the Ukraine war, supply chains should continue to normalize, suggesting that consumer goods inflation could subside later this year and into 2023.

In the interim, inflation will likely remain above targets in many economies, reflecting supply chain frictions, tight labour markets, and successive waves of commodity price shocks.The war in Ukraine has led to a surge in prices across a wide range of energy-related commodities. The war’s effects on energy markets are clouding the global growth outlook. (WB)One notable exception to the generally high inflation data is China, where COVID restrictions have sharply curbed demand and are keeping inflation at bay. (MS)

On the fiscal side, policy space was already eroded in many countries by necessary COVID-related spending. Debt levels have risen significantly, and extraordinary fiscal support was expected to be removed in 2022-23. The war and the impending increase in global interest rates will further reduce fiscal space in many countries, especially oil- and food-importing emerging markets and developing economies.

Indian Economy

Fiscal policy focused on mitigating the hardships and loss of livelihood imposed by the pandemic, even as an impetus to growth was unleashed through reprioritizing fiscal spending. Monetary policy remained accommodative and fostered congenial financial conditions for the recovery to take root while being vigilant that inflation remains within the target going forward. Thus, the experience of 2021-22 has yielded valuable lessons that will illuminate the path of the Indian economy in the year ahead.

The immediate impact of geopolitical aftershocks is on inflation, with close to three-fourth of the consumer price index at risk. The elevation in international prices of crude, metals, and fertilizers has translated into a term of trade shock that has widened trade and current account deficits. High-frequency indicators already point to some loss of momentum in the recovery that has been gaining traction from the second quarter of 2021-22, with 86.8% of the adult population fully vaccinated and 3.5% having received booster doses. Furthermore, steadfast policy support put a floor underneath aggregate demand and economic activity.(RBI AR)

Emerging market and developing economies (EMDEs) are bearing the brunt of global spillovers, despite being bystanders. Capital outflows and sizeable currency depreciations have tightened external funding costs, pushed up debt levels, and put their hesitant and incomplete recoveries in danger.

An important takeaway from the experience of 2021-22 is India’s tryst with inflation. Supply shocks impacted food inflation intermittently, exacerbated by imported price pressures, especially from global edible oil prices. This experience also highlighted the important role of supply-side measures by the government in relieving price pressures in the case of edible oils and pulses, and in softening the pass-through of the sharp increase in global crude oil prices to domestic pump prices of petrol and diesel through timely reductions in excise duties and state-level value-added taxes (VATs). Furthermore, the presence of considerable slack in the economy tempered the pass-through of input cost pressures into firmsRs. selling prices. The resurgence in global commodity prices (prices of energy increased by 102.1 percent; metals and minerals by 28.2 percent; precious metals by 10.3 per cent; and agricultural commodities by 28.0 percent year-on-year in March 2022) renewed supply chain pressures and heightened financial market volatility in Q4:2021-22, shifted the trajectory of inflation sharply to the upside. Overall, headline inflation averaged 5.5 percent in 2021-22 as against 6.2 percent a year ago. Headline inflation breached the upper tolerance band in Q4:2021-22 and rendered the conduct of monetary policy challenging.

The aluminium industry is the largest consumer of calcined petroleum coke. In calendar year 2021, the global production of aluminum grew 4% to around 67.4 million tons while global consumption rebounded sharply by 10% to around 69 million tons due to the base effect. Hence, the global markets were in a deficit of 1.6 million tons in calendar year 2021. On the region wise split, the Chinese production improved by 5% year-on-year to

38.5 million tons. The Chinese consumption was primarily driven by a sharp increase in demand for electric vehicles. This offset the subdued Chinese construction market and lower ICE vehicle production on account of the semiconductor chip shortage. Therefore, the overall Chinese consumption grew by 6% to 40 million tons in the calendar year 2021 resulting in a market deficit of 1.6 million tons.

The rest of the world production grew by 3% year-on-year to around 29 million tons whereas consumption grew by 14% year-on-year to around 29 million tons due to the low base effect, resulting in a balanced market in the calendar year 2021. In Q1 calendar year 2022, the overall world production was flattish while consumption grew marginally leading to a small deficit of 0.1 million tons. Talking about the region-wise split of Q1 calendar year 2022, the Chinese production fell by 1% year-on-year to 9.6 million tons whereas consumption grew by 2% year-on-year to 9.3 million tons leading to a surplus of 0.3 million tons in China. In the rest of the world, there were some disruptions in production due to the rise in gas prices. Despite production cuts, the overall production grew by 2% year-on-year to 7.2 million tons, consumption grew by 3% reaching 7.6 million tons. This resulted in a deficit of 0.4 million tons in the rest of the world’s metal balance. As the global markets remain in deficit, inventory levels continue to decline. Consequently, the global aluminum prices continue to grow at $3280 per ton in Q1 calendar year 2022 from an average of $2762 per ton in Q4 of yhe calendar year 2021. The rally in aluminum prices in Q1 calendar year 2022 was driven by Russia, Ukraine’s geopolitical situation, and depleting global inventory. Global aluminum prices average for the Q4 quarter were at $3100/ ton factoring in the impact of COVID related restrictions in China.

Aluminium continues to chip away steel’s position as the metal of choice for the automotive industry. Due to more stringent regulations and societal pressure to improve fuel economy, automobile manufacturers are increasing their use of lighter materials such as aluminium for the structural shell of vehicles as well as closing panels such as the hood, trunk and doors. Aluminium producers will continue to innovate with new alloys and production processes to meet the automotive industry’s demand.

The domestic demand for aluminum is expected to grow during the FY 2022-23. The demand for aluminum packaging demand continues to rise in line with the rising demand for aluminum mainly from the pharmaceutical sector. Sentiments in the real estate sector were optimistic owing to the robust residential and commercial deals and government infrastructure projects like AIIMS, IITs, airports, railway stations, metro stations, etc.

Industry Overview

The demand for Calcined Petroleum Coke (CPC) is directly correlated with the demand for aluminium and steel. Around 85% of the global CPC is supplied to the Aluminium Industry and the rest caters the requirements of the steel and other allied industries.

While the industry has started working towards sustainable alternatives such as low carbon aluminium/green aluminium and innovating new technologies and alloys to bolster its position as the most sustainable metal in the world, aluminium produced through renewable energy sources is expected to gain much more importance in the coming years

Raw Petroleum Coke (RPC), the raw material for CPC, is a by-product of oil refining. The CPC produced by the Calciners is an essential raw material for making the anodes required for aluminium smelting. Without CPC, aluminum smelters cannot produce this infinitely recyclable, strong, lightweight and versatile metal.

There are no known commercially viable substitutes for CPC in aluminium smelting. Without calcination, larger volumes of RPC would be burned as a highly emitting fuel for power generation. Beyond aluminum, the CPC is an important raw material in the production of titanium dioxide, which is used as the base pigment for paints for construction and automotive applications. Ti02 also is used as a filler in plastics, coatings, cosmetics, toothpaste and sunscreen. Elsewhere, the CPC is used to produce high-strength steel for building bridges, skyscrapers and other infrastructure.

CPC is produced from RPC, a granular black solid that is a by-product of the crude-oil refining process, through a process known as "calcining". This process removes moisture and volatile matter from the GPC at a very high temperature.

CPC is produced in two primary qualities:

(i) anode-grade CPC (a raw material essential to the aluminium smelting process), and

(ii) industrial-grade CPC (for use in the manufacturing of titanium dioxide and other industrial applications).

Anode-grade CPC represents approximately 78%of global CPC production, and industrial-grade CPC represents the remaining 22%. For every tonne of primary aluminium produced, approximately 0.4 tonnes of CPC is required.

Worldwide CPC production for CY 2021 was about 30million tonnes, 77% of which was produced in China and North America, comprising 63% of global demand. China continues to play a dominant role in the CPC industry, and its share of the world’s CPC production is estimated to remain at 55-60% in the near term. Due to a large gap between production and demand in the Middle East, Asian calciners are expected to increase their focus on the region for the surplus capacity. As per recent industry estimates, worldwide demand for CPC aggregated reached 29.9 million tonnes in 2021,and it is expected to grow to 31.8 million tonnes by 2025, representing a CAGR of 1.5%. Worldwide production of CPC aggregated to 30 million tonnes in 2021, and it is expected to grow to 32 million tonnes by 2025, representing a CAGR of 1.6%.

Company Overview

GCL is a manufacturing flagship Company of the Dempo Group. Established in 1967, Goa Carbon is engaged in the processing and manufacture of Calcined Petroleum Coke (CPC). During this manufacturing process, the by-product of oil refining (i.e. Green Petroleum Coke [GPC]) is converted into a high-value carbon-based product (CPC). This process removes moisture and volatile matter from the GPC at a very high temperature. This product is a critical raw material for aluminium, graphite, titanium dioxide, refractory, and several other industries.

The Company has three plants across India, i.e., Goa, Paradeep and Bilaspur and all the plants are ISO 9001 and ISO 14001 certified by Bureau Veritas. One of the leading producers and manufacturers, the Company possesses license capacity to manufacture CPC of 100,000 MT for the Goa Unit, 1,68,000 MT for Paradeep Unit and 40,000 MT for Bilaspur Unit. Facilities close to the Paradeep and Goa port puts Goa Carbon in more strategic and operational advantageous position which facilitates on time deliveries and improved efficiencies.

With the continuing restrictions on the import of GPC by the calciners and the import of CPC by the aluminum smelters which is capped by the HonRs.ble Supreme Court of India at 1.40 million tonnes per annum and 0.50 million tonnes per annum respectively, the additional requirement of both calciners and smelters will have to be met from domestic supplies within India.

The Company, in the domestic market, has been supplying to National Aluminium Co. Ltd., Hindalco Industries, Bharat Aluminium Co. Ltd., Vedanta Aluminium, Kerala Minerals and Metals Ltd., Steel Authority of India Ltd., and a number of steel plants located in the South-Western region and Odisha. The overseas clients to whom the Company had been supplying are Aluminium Pechiney - France, Aluminium of Greece (AOG), sABiC - Saudi Arabia, Dubai Aluminum (DUBAL), Sohar Aluminium Co. - Sultanate of Oman, ALUCAM - Cameroun etc.

Financial and Operational Review

The following operating and financial review are intended to convey the management’s perspective on the operating and financial performance of the Company for the Financial Year 2021-22. This should be read in conjunction with the Financial Statements, the schedules and notes thereto and the other information included elsewhere in the Annual Report. The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013, the guidelines issued by the Securities and Exchange Board of India ("SEBI"), in accordance with Indian Accounting Standards (Ind AS) and the other accounting principles generally accepted in India.

Some of the Key Financial ratios are given below in percentage, except for earning per share:

Particulars As at 31.03.2022 As at 31.03.2021
PAT (Loss)/ Sales 5.01% (0.82%)
Return on Net Worth 40.26% (3.72%)
Earning per share (?) 41.28 (5.26)

The net cash flow of the Company during the year ended 31.03.2022 is as follows:

Particulars As at 31.03.2022 As at 31.03.2021
Cash from operations (3,989.97) (1,506.57)
Cash from/(used in) investing activities (13,999.01) (946.73)
Cash from/(used in) financial activities 19,112.17 (1,770.70)
Net increase/ (decrease) in cash 1,123.19 (682.60)

Details of Key Financial Ratios are given below:

Particulars As at 31.03.2022 As at 31.03.2021
Debtors Turnover Ratio 15.54 8.20
Inventory Turnover Ratio 4.99 2.84
Interest Coverage Ratio 3.52 0.49
Current Ratio 1.26 1.15
Debt Equity Ratio 2.09 2.50
Operating Profit Margin % 7.46 1.35
Net Profit Margin % 5.32 (1.39)

The Company’s operation and its results fluctuate from period to period on account of the delivery schedule of the customers which vary from time to time and the inability of the Company to always increase selling prices in line with cost of imported raw material, the FOB price which varies substantially from time to time; and the exchange fluctuations arising because of the Company’s dependence on import of raw materials.

The year 2021-22 started off very bullish with a sharp rise in the LME index and the increased Aluminum prices reaching to a record high during the Year. The LME prices started off with around US$2200/PMT in AprilRs.21 and displayed high volatility during the year. The upward trend promised robust growth and touched a mark of US$3500 in MarchRs.22. It even went on to touch the all-time high of US$3950 - US$4000/PMT during Jan/FebRs.22.The demand for Steel along with other commodities also saw a big momentum during the year under consideration.

With the increase in the LME prices, there was a commensurate robust demand for RPC and CPC which resulted in surge in the RPC/CPC prices to a record high too. Goa Carbon Ltd, sold a quantity of about 170,000 MT to the Aluminium Smelters and a quantity of about 10,000 MT to the Steel Industry. The Aluminium Smelters achieved a stellar operating performance with the roaring LME prices which did replicate in the performance of the Calciners too. Your Company achieved the highest ever turnover of Rs 760 crores as the CPC prices during the year were on rise.

The CPC prices at the Domestic and International levels rose to a new level. The CPC at the International levels touched the all-time high figures of US$1200/PMT. With the increasing demand from the Aluminum Sector, the CPC was in demand too. The CPC prices for the Calciners from the Domestic Smelters which comprises of Vedanta, Hindalco and Nalco also saw a new record pricing during the year. With the restrictions on imports of CPC, the Domestic smelters have to bank more on the supply of Domestic Calciners to meet their demands.

The Domestic Refinery prices for the RPC have also reported record highs and this made the domestic RPC very costly. The Calciners in the vicinity of the Domestic Refinery were on the buying spree and were very bullish about the pricing and demand.


In January 2022, the World Economic Outlook had projected global recovery to strengthen from the second quarter of this year after a shortlived impact of the Omicron variant. Since then, the outlook has changed largely because of Russia-Ukraine war-causing a tragic humanitarian crisis in Eastern Europe-and the sanctions aimed at pressuring Russia to end hostilities.

This crisis unfolds while the global economy was on a mending path but had not yet fully recovered from the COVID-19 pandemic, with a significant divergence between the economic recoveries of advanced economies and emerging markets and developing ones.

In addition to the war, frequent and wider-ranging lockdowns in China- including in key manufacturing hubs-have also slowed activity there and could cause new bottlenecks in global supply chains. Higher, broader, and more persistent price pressures also led to a tightening of monetary policy in many countries. Overall risks to economic prospects have risen sharply and policy trade-offs have become ever more challenging.

Beyond the immediate humanitarian impacts, the war will severely set back the global recovery, slowing growth and increasing inflation even further. Growth in advanced economies is projected to sharply decelerate from 5.1 percent in 2021 to 2.6 percent in 2022-1.2 percentage points below projections in January. Growth is expected to further moderate to 2.2 percent in 2023, largely reflecting the further unwinding of the fiscal and monetary policy support provided during the pandemic.

Among emerging market and developing economies, growth is also projected to fall from 6.6 percent in 2021 to 3.4 percent in 2022- well below the annual average of 4.8 percent over 2011-2019. The negative spillovers from the war will more than offset any near-term boost to some commodity exporters from higher energy prices.

India is the fastest and most promising growing economy in the world today. With the eyes of global superpowers and business houses on India, the time is ripe to capitalise on all opportunities that can significantly boost India’s economy in a sustainable and holistic manner.

The RBI has projected Fy2023 GDP growth of around 7.2% year-on-year. Global inflation dynamics are the driving part of inflation in India with both headline and core inflationary pressures rising in the last four months. Persistent global supply chain disruptions may keep prices higher for longer with some easing expected in the second half of FY2023. The RBI has projected an inflation rate of 5.7% in FY2023.

There is a need for decisive global and national policy action to avert the worst consequences of the war in Ukraine for the global economy. This will involve global efforts to limit the harm to those affected by the war, to cushion the blow from surging oil and food prices, speed up debt relief, and expand vaccinations in low-income countries. It will also involve vigorous supply responses at the national level while keeping global commodity markets functioning well.

Policymakers, moreover, should refrain from distortionary policies such as price controls, subsidies, and export bans, which could worsen the recent increase in commodity prices. Against the challenging backdrop of higher inflation, weaker growth, tighter financial conditions, and limited fiscal policy space, governments will need to reprioritize spending toward targeted relief for vulnerable populations. Markets look forward, so it is urgent to encourage production and avoid trade restrictions. Changes in fiscal, monetary, climate and debt policy are needed to counter capital misallocation and inequality.

Business Challenges

At Goa Carbon, we ensure to work towards addressing the potential threats and challenges and thereby minimizing the losses. The Company has identified some of the critical business challenges and its mitigation plans that include:

Aluminium Industry

The demand for Calcined Petroleum Coke (CPC) is directly correlated with the demand for Aluminium and steel. Around 85% of the global CPC is supplied to the Aluminium Industry and the rest caters to the requirements of the steel and other allied industries. While the Aluminium industry has started working towards sustainable alternatives such as low carbon aluminium/green aluminium and innovating new technologies and alloys to bolster its position as the most sustainable metal in the world, aluminium produced through renewable energy sources is expected to gain much more importance in the coming years.

Aluminium, the second most used metal in the world after steel, is the fastest growing metal which has grown by nearly 20 times in the last 60 years (compared to 6 to 7 times for other metals). Some of the unique properties like lightweight recyclability, conductivity non-corrosiveness and durability have helped establish it as a metal of choice for various applications across varied segments of the manufacturing sector. Aluminum is also called Rs.the metal of future due to the above properties. Being lighter (three times lighter than steel), it aids in fuel efficiency making it an efficient choice for automotive, defense and aviation. The construction industry relies on a variety of aluminium alloys in the manufacture of products ranging from exterior siding to structural components due to its durability and non-corrosive properties.

There could be variations in the demand and supply of aluminium and steel, which could impact the demand for CPC. Due to the high cost of production in the west, aluminium production is going to shift to the East, and this is expected to boost demand for CPC manufacturing and thus likely to increase the business for the Company.

Foreign Exchange and Interest Rate

A sharper-than-expected tightening of global financing conditions, or a renewed rapid appreciation of the U.S. Dollar against Indian Rupee, could exert further downward pressure on countries like India that have large current account deficits financed by portfolio and bank flows.

Supply of Raw materials

It is essential for our Company to source the appropriate raw material at the right price and at the right time, without which the production and quality of the material could be impacted. Off late, the customers have been very particular about the quality parameters of the CPC due to changes in their product portfolio. This put extra pressure on the procurement side since, at times, refineries do not extend any back-to-back quality assurances for all the parameters as it entirely depends on the type of crude oil or other inputs being used in the refining process. Further, a slight change in the material parameters has a huge impact on the pricing of the RPC.At the same time, the availability of high-quality raw materials continues to be a challenge - especially low sulphur anode-grade RPC for our calcination business.The RPC quality in the Domestic refineries has been deteriorating which has resulted in heavy dependence on the imported RPC. This also gives an age to the import based calciners like us to cater to the specific needs of the aluminium smelters.

The Company has put forward a team of professionals to evaluate the procurement strategies, monitor production planning and inventory control systems, which improves control over raw materials planning. GCL continues working closely with its suppliers and the aluminium smelters as well to find long-term and sustainable solutions to the above-mentioned issues.Since the Company has been in the industry for more than five decades and haslong-term relationships with refineries/suppliers and major smelters, all efforts are being made to procure the quality raw materials from different sources at competitive prices.

Threats & Challenges - CPC

The main, on-going threat for the CPC industry remains the availability of suitable-quality GPC. GPC is a by productof the oil refining process and is not produced to meet the supply needs or quality specifications of CPC or aluminium producers. Changes in the economics of processing sour crudes over the past 15-20 years have resulted in a trend towards refining more sour crudes. While petroleum refineries continue to build refining capacity (and therefore, indirectly increase GPC production), the global supply of traditional anode-grade GPC is expected to grow at a slower pace as refineries are processing more sour crude, which results in the production of lower-quality (fuel-grade) GPC. Thus, global CPC producers have experienced, and may continue to experience, a decline in the availability of high-quality anode-grade GPC. In addition, the global transition to electric vehicles could result in reduced demand for gasoline, thereby impacting the amount of available GPC, regardless of quality. CPC quality directly influences anode quality in the performance of aluminium smelters. To meet the aluminium industry’s demand for consistent quality of anode-grade CPC, GCL works closely with smelters to expand existing quality specifications, allowing the use of more non-traditional anode coke ("NTAC") in blends for the production of anode-grade CPC without compromising on quality.

It is expected that India will continue to lead CPC demand growth in the world (excluding China) as a result of capacity expansions by major aluminium producers in the country over next few years.

Environment & Regulations

Aluminium is the second most used metal in the world after steel, and approximately 0.4 tonnes of CPC is required in the production of every tonne of aluminium produced. Any regulations that impact either import or production of CPC will directly impact the aluminium industry in India. Thus, it is a critical and strategic part of the economic growth of India and occupies a due position in the global economy.

The Environmental Protection Agency (EPA) does not classify RPC as hazardous. EPA has surveyed the potential human health and environmental impacts of RPC through its High Production Volume (HPV) challenge program and found the material to be highly stable and nonreactive at ambient environmental conditions. Most toxicity analysis of coke finds that it has a low potential to cause adverse effects on aquatic or terrestrial environments as well as a low health hazard potential in human, with no observed carcinogenic, reproductive, or developmental effects.

However, Aluminium and Steel production create immense emission and can have an adverse impact on the environment. To curb the extensive production of aluminium and steel, the HonRs.ble Supreme Court of India had banned the import of RPC during July 2018 but eventually lifted it, permitting the import of RPC by the Indian calciners to be within 14 lakh MT/year which is used as feedstock and not as a fuel.

With the restrictions on the import of RPC by calciners and on the import of CPC by aluminium smelters, capped at 1.40 million tonnes per annum and

0.50 million tonnes per annum respectively by the HonRs.ble Supreme Court of India, the additional requirement of both calciners and smelters will have to be met from domestic supplies within India. Further, though the HonRs.ble Supreme Court of India has decided that Flue Gas Desulphurization (FGD) unit is not a pre-requisite to operate a CPC plant, it has directed the Ministry of Environment, Forest and Climate Change (MOEF&CC) to study the calcination plants in India and finalize the standards for emissions for the calciners.

While the March 2020 issuance of the standards was delayed due to the pandemic, the Government through the MOEF&CC is studying the matter and is expected to notify these standards. Your Company is poised to ensure full compliance with the standards that will be notified by the Ministry for the Calcination Industry.

Trade Wars

Escalating trade tensions are another major downside risk to the global outlook. If all tariffs currently under consideration were implemented, they would affect about 5 percent of global trade flows and could dampen growth in the economies involved, leading to negative global spill-overs. While some countries could benefit from trade diversion in the short run, rising trade protectionism would stifle investment and severely disrupt global value chains, contributing to higher prices and lower productivity.

Working Capital Requirements

The Company mainly avails non-fund-based facilities from Indian Banks in the form of Letter of Undertaking (LOU) to avail Buyer’s credit facilities from overseas banks at a lower interest rate. Further, a steep rise in raw material prices puts pressure on existing working capital limits sanctioned by the Company’s banks. Due to the scarcity of imported raw materials, Company procures domestic raw materials by making advance payments and this has compelled the Company to borrow expensive fund-based facilities like overdrafts from its bankers. The Company Instead of procuring the raw material in bulk at competitive prices after considering the ocean freight now is constrained to limit the procurement of raw material by availing overdraft facility at the higher interest rate from Banks. However, efforts have been made to explore the possibilities of newer ways of financing the working capital requirements and the commercial contracts are being negotiated to contain the finance cost impact. In case of urgent financial requirements, the Company avails additional funds from the promoters or other lenders based on the securities backed by the promoters.

Human Resources

Our people form an integral part of our journey towards transformational, responsible and sustainable change. Our people policies are designed to provide an excellent work environment that is safe, conducive, harmonious and support all round development of our employees. Our transition towards a Greener, Stronger and Smarter future is augmented by our efficient and safe operations. This is the result of the convergence of the efforts of hundreds of satisfied workforce, including our contract workmen.

Our HR Management Frame work aligns with our overall business strategy and goals. It is built on pillars like organisation design and productivity, capability building, talent and careers and are driven through our focus on Culture, Communication and Engagement. Our Values, Code of Conduct, Human Rights policies and practices empower employees to raise their voice in case of any discrimination, without any fear of retaliation.

Covid Response

GCL took immediate measures to keep its people safe and protect their health. Learning from the experience gained from of the previous covid waves, we further improvised our blueprint to manage such a crisis.The management designed a comprehensive Business Continuity Plan that was cohesively executed by empowered cross-functional teams.

In view of the ill effects and the health hazards posed by the COVID virus, GCL has strengthened efforts to protect employees across the ranks and to support the community at large directly as well as through the various initiatives undertaken at the Dempo Group level. Your Company facilitated vaccination and its booster doses to its eligible employees. Ex-gratia benefits were provided to support families of deceased employees. The Company as a part of group initiative has donated oxygen concentrators which have been distributed to the major government hospitals in the state of Goa.

Human Resources is the Company’s most valuable asset and Goa Carbon Limited ensures to periodically conduct skill development training programmes for the employees from time to time for a continuous growth in their competencies and to keep them updated on new technical developments resulting in optimum capacity utilization and cost- effectiveness. In order to boost employee morale and motivate them to perform the best, the Company also provides a safe and healthy work environment.

As of 31st March 2022, the Company had 179 permanent employees consisting of 19 managerial personnel and 160 other employees. Apart from this, the Company has 3 industrial trainees and an advisor. These employees provide an excellent combination of experienced workforce and talented technical managers.

Internal Control System

The Company’s internal control is commensurate with the size of its business and the nature of industry it operates in. The Internal Auditor ensures prompt recording of transactions and their adherence to the applicable laws, statutes as well as internal policies and procedures. Internal Audit is conducted regularly and the reports are submitted to the Audit Committee at their quarterly meetings.

Statutory Compliance

The Executive Director submits a quarterly declaration at the Board Meeting regarding compliance with respect to the applicable statutes, enactments and guidelines after obtaining confirmation from all the operating plants and the Head of the Departments. The Company Secretary who is also the Compliance Officer gives a declaration of compliance to the Board with respect to the applicable provisions of Companies Act, 2013 and SEBI Regulations.

Cautionary Statement

Some of the statements given in the above management discussion and analysis about the Company’s projections, objectives, estimates, expectations and predictions may be Rs.forward looking statementsRs. within the meaning of applicable securities laws and regulations. The actual results may differ materially from those expressed or implied statements. Important factors that could make a difference to the company’s operations include inter alia domestic and global economic conditions affecting demand and supply and price conditions in the industry, changes in Government laws, tax regime and other statutory changes, environmental laws and labour relations. The Company undertakes no obligation to periodically revise any such forward looking statement to reflect future events or circumstances.


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