India Carbon Limited Unlisted Shares

Annual Report Summary

Annual Report 2021-22 of India Carbon Limited Summary:

Notice and General Information:

The 60th Annual General Meeting (AGM) will be held on September 30, 2022, via video conferencing. The notice details the agenda, including: adopting financial statements, declaring dividends, appointing/reappointing directors and auditors, ratifying the cost auditor's remuneration, approving investments/borrowing in the ordinary course of business, and authorizing the Board of Directors to make loans, give guarantees, provide security, and make investments up to Rs. 400 Crores. It also covers approval for related party transactions with M/s New Age Petcoke Private Limited and the sale of shares of C&C Investments Limited, a wholly-owned subsidiary. Details regarding e-voting, joining virtual meetings, and dividend payment are provided. The book closure dates are from September 24, 2022 to September 30, 2022.

Directors' Report:

The directors present the 60th Annual Report for the year ended March 31, 2022.

• Financial Performance: Revenue from operations increased by 132.42% to Rs. 45,612.37 Lacs. Production of Calcined Petroleum Coke (CPC) increased by 20.44% to 79,913 MT, while Electrode Carbon Paste (ECP) production decreased by 15.89% to 3674 MT. Profit after tax increased by 53.70% to Rs. 8134.83 lacs.
• Operations and Future Outlook: Both factories (Guwahati and Budge Budge) operated smoothly, but Guwahati faced shutdowns for refinery upgrades. Budge Budge is expected to perform similarly to last year, relying on imported RPC. Global disruptions from the Russia-Ukraine war and COVID-19 pose risks, with inflationary pressure and weather conditions adding uncertainty.
• Dividend: A dividend of Rs. 5/- per equity share is recommended.
• Directors and Key Personnel: Gordon Kenneth Mcintosh and Tony William Grimes retire by rotation and offer themselves for reappointment. Bhaskar Rakshit ceased to be the company secretary on June 30th, 2022.
• Other Disclosures: The report includes information on employee particulars, number of board meetings, formal annual evaluation, declaration by independent directors, remuneration policy, managerial remuneration, details of subsidiary, statutory auditors, secretarial auditor, internal auditor, internal control systems, risk management, vigil mechanism, code of conduct, extract of annual return, and related matters.
• Corporate Social Responsibility: The company's CSR policy is outlined, and the policy is available on the company's website.
• Financial Data
  • Rs. 1,64,64,654/- in foreign exchange earnings and Rs. 44,97,91,269/- in outgo.
  • Rs 5.00 per equity share dividend recommended which amounts to Rs. 1,32,50,000 total.
  • M/s BSS & Associates recommended to shareholders to be subsequently ratified.
  • None of the employees is in receipt of remuneration exceeding the limit prescribed.
  • Directors affirm that managerial personnel remuneration is in accordance with the remuneration policy.

Financial Statements & Independent Auditor's Report:

The financial statements include the balance sheet, statement of profit and loss, statement of changes in equity, and cash flow statement. The report mentions the appointment of M/s. S. Samanta & Co as statutory auditors, and M/s Mahata Agarwal & Associates as secretarial auditor, as well as BSS & Associates as cost auditors.

• The Independent Auditor's Report issues a qualified opinion due to accumulated losses eroding the net worth, indicating uncertainty about the company's ability to continue as a going concern. Key audit matters include litigations and contingencies. The report also covers compliance with the Companies Act, auditor's responsibilities, and other regulatory requirements. The report also includes annexures providing further details and explanations.

Management Discussion and Analysis:

The report discusses the industry structure and development, opportunities and threats, segment-wise/product-wise performance, and future outlook. The company expresses optimism about growth and profitability. Highlights include the Indian aluminium industry's global position, increased CPC demand, company's operational performance, the impact of external factors, and the company's continued commitment to human resources, cost optimization, and environmental management. The report expresses that the relation of the Company with its Employees and Workers continued to be cordial and peaceful during the Financial Year.

• Indian aluminum industry second largest producer across the world.
• India to grow to a CAGR of 6.7% in the next five years.

Corporate Governance Report:

The report outlines the company's corporate governance practices, including board composition, committees, director induction and training, remuneration policy, and compliance with SEBI regulations. Disclosures related to material related party transactions, accounting treatment, non-compliances, risk management, and vigil mechanism are included. Communication methods and general shareholder information are also detailed. It is confirmed that the Independent Directors are in compliance and meet all conditions.

• Nomination and Remuneration Committee:
  • Chairman - Soumendra Mohan Basu - Independent director.
  • Hemant Kumar Khaitan - Independent Director
  • Manoj Mohanka - Independent director. All of India Carbon Limited's information regarding their financial and operational status, board member details, key policies, and committee positions as of 2021-2022, are outlined in the above summary.