| Dear Members,
The Directors take pleasure in presenting the 43rd Annual Report of
the company for the Financial Year 2013 - 2014 along with the Audited
Financial Statements for the year ending on March 31, 2014.
The Financial Year 2013-14 started with new challenges and
expectations. In the backdrop of the sluggish economy and growth of
Industrial Sector in the country, the Company performed reasonably well
during the year under review. The Company could stand before challenges
by achieving the highest turnover in the history of the company.
Financial Performance
In the Financial Year 2013-14 the company posted turnover of Rs. 107.58
crore as compared to Rs. 90.29 crore in the last financial year, which
is highest ever achieved by the company in its history. Your company
has for the first time achieved turn over more than Rs. 100 Crore. The
sales turnoverjumped by 19.14% over the last financial year. The year
FY 2013-14 has reported Profit before prior period, exceptional and
extraordinary items and tax at Rs. 11.12 crores as compared to Rs.
12.20 Crore in the last financial year. Profit Before Tax (PBT) earned
by the company during the year increased by 146.46% from Rs. 4.67 Crore
to Rs. 11.51 Crore. Similarly, the Profit After Tax (PAT) increased by
132% from Rs. 4.04 crores to Rs. 9.38 Crore.
The financial results for the financial year 2013-14 compared to those
of the previous year are summarized as below:
Financial Results: (Rs. in Lacs)
Particulars As at March 31, As at March 31,
2014 2013
Rs. Rs.
Revenue from Operations 10,758.01 9,029.65
Less: Excise Duty 1,110.59 944.58
Revenue from Operations (NET) 9,647.41 8,085.08
Other Income 637.22 620.71
Total Income 10,284.63 8,705.78
Gross Profit/Loss 1,373.21 1,491.80
Less : Depreciation and amortization 239.95 232.51
Finance Cost 20.74 38.58
Profit/Loss for the year before
prior period adjustment, exceptional
and extraordinary items 1,112.51 1,220.71
Less: (a) Exceptional Item -0.87 762.58
(b) Adjustment of prior period items -37.79 -8.60
Profit Before Tax 1,151.17 466.73
Less:Tax Expenses
(a) Deferred Tax -130.44 8.61
(b) Excess Provision for income
tax written back 0.63 4.92
(c) Current tax 342.63 49.20
Profit /Loss for the year after
Taxation 938.35 404.01
Balance brought forward from
previous year -842.11 -1,130.02
Amount available for appropriations 96.24 -726.02
Appropriations
Proposed Dividend 114.00 91.20
Tax on Dividend 19.37 14.79
Transferred to General Reserve 23.46 10.10
Balance Carried to Balance Sheet -60.60 -842.11
Earnings Per Share (EPS) (in Rs.) 10.29 4.43
Operating Results
The Methanol Plant of the company is about twenty six year old. This
Plant requires frequent maintenance of its equipments to maintain
production. Frequent power cut by the Assam State Power Distribution
Company Limited and routine shut down for maintenance affected optimum
utilization of the Methanol Plant during the Financial Year 2013-14.
The capacity utilisation of the Formalin plant is dependant purely on
market dynamics. Company produces Formalin according to demand of the
market. The Methanol Plant and Formalin Plant capacity utilisation
were 87% and 91% respectively during the FY 2013-14.
The capacity of the Formalin Plant was revamped during the financial
year 2012-13 from enhancement of its production capacity from 100 TPD
to 125 TPD.
The plant operating highlights are given as under:
Plant Production in MT
Annual Capacity FY 13 - 14 FY 12 - 13
Methanol 33,000 28,822 33,547
Formalin 41,250 37,363 34,877
Capacity Utilisation of
Plants:
Methanol 87% 102%
Formalin 91% 85%
Sales & Marketing
The company is marketing its products in North Indian States, West
Bengal and North Eastern States and exporting to Nepal, Bhutan and
Bangladesh. The Company is giving importance to export its products for
earning foreign exchange
The company achieved highest sales turnover during the Financial Year
2013-14. The company sold 8028.124 MT Methanol during the year. The
favourable market price had helped in achieving the sales turmover of
Rs. 107 cr during the year.
The area wise sales quantity of the company's products in the year
2013-14 vis-a-vis in the previous year 2012-13 are as follows:
Area Formalin (In MT)
FY 13 - 14 FY12 - 13
North East Region 8,010.510 6,914.352
North Bengal 8,678.220 5,695.010
South Bengal 6,980.100 8,810.100
Purnea / Adjacent Area 3,924.530 5,069.220
Patna 9,322.050 10,747.900
South Bihar / Others 308.290 255.140
Bhutan 1,046.620 1,244.990
Nepal & Bangladesh 2,233.070 1,955.120
Total 40,503.390 40,691.832
Methanol (In MT)
FY 13 - 14 FY12 - 13
North East Region 992.46 1,024.53
West Bengal 1923.43 2,865.78
North India 3846.62 8,174.93
Export 1265.61 1,582.82
Total 8,028.12 13,648.06
Project & Development Activities
As informed in our earlier reports the company is implementing 500 TPD
Methanol and 200 TPD Acetic Acid project adjacent to the existing
plants at Namrup. During the Financial Year 2013-14, the company
achieved certain significant milestones in implementation. The major
achievements are given as under:
A. Cabinet approval for the project:
The Govt. of Assam accorded the much awaited Cabinet approval for
implementation of the Integrated 500 TPD Methanol-200 TPD Acetic Acid
Project on 14thFebruary, 2014.
B. Technology selection and lepcm contract for methanol plant:
The company selected Holder Topsoe, Denmark as Technology supplier for
setting up the 500 TPD Methanol Plant. Engineers India Limited has been
selected for award of LEPCM Contract for the Methanol Plant in the
Integrated Methanol-Acetic Acid Project.
C. Technology selection for acetic acid plant:
After marathon search for Acetic Acid technology globally, your
director have selected Beijing Zeihua Chemical Engineering Co. Ltd.
China for Lecence Erreetui, procurement of Proprietary items and
supervision of Ereetuin and commissioning of 200TPD Acetic Acid Plant.
D. Financial closure for the project:
With the confirmation received from Oil India Ltd.(49%) and Government
of Assam and its companies (51%) for the project for the equity portion
of the capital amounting Rs. 393 Crore and signing of the agreement
with banks for the entire loan component of the capital amounting Rs.
635 Crore where SBI will work as the lead bank for the consortium of
bank extending the loans, the financial closure for the project has
been achieved.
E. Environmental clearance for the project and consent to establish
from pollution control board, assam Ministry of Environment and Forest,
Govt. of India, has accorded Environmental Clearance for the integrated
projects vide letter no. F. No. J-11011/469/2011-IA II (I) dated 19th
May 2014.
The consent to establish for the project has also been received from
Pollution Control Board, Assam on 02.07.2014.
F. Acquisition of land for the project:
(i) Land for the main project site adjucent to the existing plant has
been ear marked and site grading works are in progress.
(ii) The No Objection Certificate for acquiring and purchase of land
situated within Dilli Tea Estate, required for setting up of raw water
pumping station, has been obtained from Govt. of Assam.
G. Natural gas sale and purchase agreement:
Pursuant to the allocation of 0.5 MMCMD Natural Gas by Oil India
Limited vide letter no. PLN/1-5/8-418 dated18.12.2013, Natural Gas Sale
and Purchase agreement was executed between Oil India Limited and Assam
Petro-Chemicals Limited on 26th December, 2013.
Dividend
Keeping in view the Company's performance and long term growth
strategy, your directors have recommended 12.5% dividend on the paid up
share capital of the company i.e. Rs. 1.25 per equity share for the
year ended on 31st March, 2014. The dividend will be paid subject to
approval of the shareholders in the ensuing Annual General Meeting.
Board of Directors
The board of the Company is constituted as per the requirement of
Clause 49 of the Listing Agreement and the Companies Act. Shri
Rameswar Dhanowar, Shri Utpal Borah and Shri Sanjeev Kr. Choubey were
reappointed in the 42nd Annual General Meeting of the company as per
Section 256 of the Companies Act, 1956. There were no changes in the
composition of the Board of Directors since last Annual General
Meeting.
Pursuant to Section 152 of the Companies Act, 2013 Shri Ram Tirath
Jindal, Shri Paban Kr. Borthakur and Shri Amrendra Nath Das directors
will retire by rotation in the ensuing Annual General Meeting and being
eligible, offer themselves for reappointment as directors at the same
meeting.
As required under Clause 49 of the Listing Agreement, brief profiles of
the directors who are proposed to be reappointment at the ensuing
Annual General Meeting are provided in the Corporate Governance Report.
Statutory Auditors
Pursuant to section 619 (2) of the Companies Act, 1956 the Comptroller
and Auditor General of India appointed M/s L.K. Kejriwal & Co.,
Guwahati as the statutory auditors of the company for the Financial
Year 2013-14. M/s L.K. Kejriwal & Co. will hold the office till the end
of ensuing Annual General Meeting.
The Comptroller and Auditor General of India has not appointed any
Statutory Auditors of the Company for the FY 2014-15 till the date of
this report.
Human Resource and Safety Management
Human resources are the key drivers of sustainable growth and
development of any organisation. Keeping that in mind your Directors
have been focusing on capacity building of employees trough training
and development. During the financial year 2013-14 the company
organised several inhouse training programmes and also sent its
employees for attending workshops and seminars organized by other
organizations. The Company organized some sports and cultural
activities involving employee's spouse and children as a part of its
employee engagement initiatives at Namrup, has helped in developing
sense of belongingness, developing positive work culture, etc. within
the organization.
The manpower strength of the Company as on 31.03.2014 was 363 out of
which 216 were unionised cadre and remaining 147 nos. were in the
Executive Cadre.
During the FY 2013-14, the company integrated Safety, Health and
Environment Management System for improvement in the areas of
prevention of accidents, control of environmental hazards and
protection of health in compliance with applicable Safety, Health and
Environment (SHE) legislation and standards. The company also organized
various in-house and external training programme on Safety, Health and
Environment. The company celebrated World Environment Day, Safety
Awareness Week, National Safety Day, Earth Hour during the year
2013-14.
Industrial Relations
Your company has been continuously maintaining a peaceful and
harmonious relationship between the management and the workers of the
company. All the issues that were raised by the Workers' Union of the
company were resolved in transparent manner through discussion. There
was no incident of industrial unrest during the year 2013-14.
Particulars of Employees under Section 217(2A)
A list of the employees of the company receiving remuneration and
requiring disclosure of particulars under Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 as amended is annexed herewith.
Corporate Social Responsibility
The Company is committed towards promoting education, socio-cultural
and economic development of the locality by providing free drinking
water, education to children upto Class X, Medical & Health checkup
facilities to the resident of neighboring villages.
The Board of Directors of the company has constituted a Corporate
Social Responsibility Committee of the Board as per requirements of the
Companies Act, 2013.
Energy Conservation, Technology Absorption and Foreign Exchange Earning
and Outgo:
The additional information in respect of the energy conservation,
technology absorption and foreign exchange earnings and outgo, as
required by the Companies Act, 1956 as amended by the Companies
(Amendment) Act, 1988 is set out in the statement annexed hereto as
Annexure 'A'.
Particulars as to Subsidiary
Your company is having a subsidiary company viz., M/s Pragjyotish
Fertilizers & Chemicals Ltd. (PFCL). The subsidiary company has not
been carrying out any business during the financial year 2013-14.
Pragjyotish Fertilizers & Chemicals Ltd. is under winding-up process.
The Annual accounts for the Financial Year 2013-14 have not been
finalized by PFCL yet and therefore the same could not be enclosed
herewith. It is therefore the attachments specified in Section 2012 of
the Act could not attached with the Financial Statements of the holding
company. As soon as the accounts of the subsidiary are received, that
will be forwarded to the shareholders of Assam Petro-Chemicals Ltd.
DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF THE
COMPANIES ACT, 1956
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors' Responsibility Statement, it
is hereby confirmed that:
(i) In the preparation of the annual accounts for the financial year
ended 31st March, 2014, all applicable accounting standards had been
followed, along with proper explanations relating to material
departures;
(ii) The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent, so as to give a true and fair view of the state of affairs
of the Company as on 31st March 2014 and of the profit of the Company
for the year ended on that date;
(iii) The Directors had 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
the Company and for preventing and detecting fraud and other
irregularities;
(iv)The Directors had prepared the accounts for the financial year
ended 31st March, 2014 on a 'going concern' basis.
Compliance Certificate
A certificate from a Company Secretary in Whole Time Practice regarding
compliance of conditions of the Corporate Governance as stipulated
under Clause 49 of the Listing Agreement is enclosed to this report.
Acknowledgement
Your Directors place on record their appreciation of the unstinted
support and encouragement extended by the Government of Assam, Assam
Industrial Development Corporation Ltd., banks, the shareholders,
customers and the employees of the company.
Your Directors also place on record their sincere appreciation to Oil
India Limited for uninterrupted supply of Natural Gas as main feedstock
for production of methanol and Assam Gas Company Ltd. for transporting
natural gas to the plant.
For and on behalf of the Board of Directors.
Sd/
Place: Guwahati
Date: 05/09/2014 (Rameswar Dhanowar)
Chairman | 