Southern Petrochemical Industries Corporation Limited
Total Page：16
File Type：pdf, Size：1020Kb
SANSCO SERVICES - Annual Reports Library Services - www.sansco.net 30TH ANNUAL REPORT 1999-2000 SIMC SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION LIMITED www.reportjunction.com SANSCO SERVICES - Annual Reports Library Services - www.sansco.net SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION LIMITED BOARD OF DIRECTORS Dr. A.C. Muthiah Chairman Thiru Shaktikanta Das, IAS Director Thiru R. Gopalan, IAS Director Thiru P.V. Rajaraman, IAS Director Thiru N. Alhimoolam, IAS Director Thiru S, Govind Swaminadhan Director Thiru S. Venkitaramanan Director Dr. K.U. Mada Director Thiru Ashwin C. Muthiah Director Dr. K. Govindarajan Director Thiru Babu K. Verghese Director Thiru Jitender Balakrishnan Director Thiru R.V. Gupta Director Thiru V. Jagannathan Director Dr. P.R. Sundaravadivelu Managing Director Thiru A. Santhanakrishnan Whole-time Director & Secretary Thiru M.G. Thirunavukkarasu Finance Director Thiru S. Stalin Director (Agro Inputs) REGISTERED OFFICE PRINCIPAL OFFICE 39 Armenian Street, "SPIC CENTRE" Chennai 600 001. 97 Mount Road, Guindy, Chennai 600 032. Telephone 2350245 Telefax 2352163 AUDITORS Telegram "SOUTHPETRO" Messrs A.F. Ferguson &. Co., E-mail [email protected]. in Chartered Accountants, Website www.spcgroup.com 7th Floor, Guna Office Complex, Annexe Building, 304/305 Anna Salai, FACTORIES Teynampet, Chennai 600 018, Fertiliser SPIC Nagar, Tuticorin Chlor-Alkali Manali, Chennai Pharma Cuddalore Tissue Culture Coimbatore BANKERS Indian Bank Punjab & Sind Bank Allahabad Bank State Bank of Bikaner fit Jaipur Andhra Bank State Bank of India Bank of Baroda State Bank of Patiala Bank of India State Bank of Travancore Canara Bank Syndicate Bank Central Bank of India Union Bank of India Dena Bank Tamilnad Mercantile Bank Limited Indian Overseas Bank The Bank of Rajasthan Limited Oriental Bank of Commerce The Catholic Syrian Bank Limited Punjab National Bank The South Indian Bank Limited © www.reportjunction.com SANSCO SERVICES - Annual Reports Library Services - www.sansco.net Southern Petrochemical Industries Corporation Limited CONTENTS Profile 2 Notice 9 Summarised Accounts 15 Directors' Report 16 Auditors' Report 21 Balance Sheet 30 Profit and Loss Account 31 Schedules 32 Notes on Accounts 42 Cash Flow Statement 52 Particulars of employees covered under section 217 (2A) 54 Subsidiary Companies —Annual Reports 56 OPERATING RESULTS AT A GLANCE (Rupees in crores) 1999-2000 1998-99 1997-98 . 1996-97 1995-96 Gross profit 265.21 263.08 259.40 222.04 210.96 Interest 180.68 159.81 119.24 97.54 93.76 Profit before depreciation 84.53 103.27 140.16 124.50 117.20 Depreciation* 56.16 51.43 56.70 47.28 36.09 Provision for taxation 1.00 4.50 4.60 Profit after tax 28.37 50.84 78.96 72.62 81.11 Transfer to: Contingency Reserve 7.00 - - 35.00 - Debenture Redemption Reserve 14.58 14.58 8.33 Capital Redemption Reserve 1.00 3.00 9.00 - 2.00 General Reserve 5.00 20.00 35.00 30.00 35.00 Networth* ' 653.15 620.99 602.83 587.29 544.39 'Excluding revaluation 0 www.reportjunction.com SANSCO SERVICES - Annual Reports Library Services - www.sansco.net CONSOLIDATING FOR GROWTH To ensure that these agri-inputs reach the farmers at the right time and the right place, SPIC has built up India — An Agricultural Economy a strong dealer network. Currently exceeding 4000, Being a predominantly agrarian economy, achieving these dealers are spread through out the country and self-sufficiency in food production and preserving also act as a source of direct feedback from the the viability of rural employment have been the farmers. This extensive network provides additional major concerns that have shaped the public policies strength to SPIC as a capable distributor of products in India for decades. While the national efforts in which have a large rural market. achieving food security have yielded satisfactory results in the context of a growing population, With the formidable strengths that the SPIC Brand agricultural growth can be sustained only through has already developed and considering the increased and imaginative initiatives. The areas that enormous potential that agri-inputs and agri business need such attention are the agricultural inputs like have in our country, SPIC will continue to commit seeds, fertilisers, pesticides, etc. on one hand and its resources in the field of its core competence- irrigation, electricity, infrastructure and market agri-business. support, etc. on the other. Sharpening the Competitive Edge SPIC — Focus on Agri Business Though the industrial and infrastructure SPIC had already laid out significant plans to development shows a growth trend, 70 percent of become globally competitive. As early as 1992, India's population is even today engaged in SPIC had promoted SPIC PHI Seeds Limited, a joint agricultural and allied activities which account for venture with Pioneer Hi-Bred International Inc., 29 per cent of the country's GDP. With India's USA, a world leader in hybrid seeds. This has made population already having crossed 100 crores, available to the Indian farming community the best concerted efforts must continue to increase the hybrid seeds, for enhanced yields. output of food grains and farm produce for self- sufficiency. Being an agri-major, SPIC contributes SPIC's Urea project under implementation at Jebel handsomely in moving towards this goal. * Ali Free Zone, Dubai - SPIC Fertilizers & Chemicals FZE, will directly help in making Urea available to SPIC's unique strength is that it manufactures and the country at competitive prices. The project is markets not only fertilisers but also other agricultural expected to be commissioned in early 2002. essentials like seeds, plant growth promoters and pesticides. In keeping with the worldwide trends, Enhanced reliability and improved economy are also SPIC has also introduced a range of eco-friendly bio- being achieved with the critical raw material — pesticides and bio-fertilisers, preparing for the needs phosphoric acid, produced by SPIC's prestigious of the future too. Joint Venture at Jordan — Indo-Jordan Chemicals www.reportjunction.com SANSCO SERVICES - Annual Reports Library Services - www.sansco.net Company Limited — and consumed at SPIC's SPIC's Other Strategic Joint Ventures Tuticorin plant. In the near future, SPIC plans to As an enterprising company that aims at planned double the capacity of IJC. growth through dynamic initiatives, SPIC has formed several joint ventures with world leaders. In These efforts insure SPIC against any sudden change keeping with its mission, these strategic tie-ups are in the policies of the government and fluctuations in in areas where SPIC had already invested but are international prices of agri-inputs. These will also be outside its core competency. of even greater advantage in the context of World Trade Organisation (WTO) agreements since, when * Technip India Limited (TPIL): TPIL is a quantity barriers are removed in the next couple of joint venture with Technip of France, among years, SPIC will be in a position to leverage the the best in the business of EPC contracts, to markets with considerable strength. exploit business opportunities globally. Restructuring for Consolidation * Gulf SPIC Contracting & General Trading In order to focus its resources in its core competency Company W.L.L.: Established in Kuwait as field of agri-inputs, SPIC is in the process of a joint venture, Gulf SPIC undertakes value- restructuring its operations through meaningful added maintenance/service contracts. The strategies which will add value to its business and Company has been awarded for the second time a 5-year Maintenance Contract for Kuwait maximise returns to shareholders. National Petroleum Corporation's Mina Unrelated business such as pharmaceuticals, heavy Abdullah Refinery. The company also plans a chemicals and biotechnology with least or no state-of-the-art Workshop in Kuwait for » synergy with mainline business will be either hived refurbishment/overhauling. Recently, a off to world leaders in respective fields or formed prestigious order has been obtained for into strategic alliances/joint ventures. By this SPIC Operation and Maintenance of a Chlor Alkali expects to add value also to those business through plant in Kuwait - incidentally the first case technology inputs, brand development and under the privatisation programme proposed by marketing support, thus enabling those operations to the Kuwait Government. Besides maintenance grow faster on their own merits. contracts, Gulf SPIC will soon be taking up mechanical, electrical, and instrumentation With SPIC planning to concentrate wholly on its contracts. core business and aiming at a good growth rate, SPIC Holdings and Investments Limited (SHIL) - SPIC's * SPIC Jel Engineering Construction Limited investment arm will arrange for the investment (SJCL): A SPIC joint venture with Jurong needs of the proposed regrouping or joint ventures. Engineering Limited of Singapore, for © www.reportjunction.com SANSCO SERVICES - Annual Reports Library Services - www.sansco.net engineering contracts, especially for power National Safety Awards projects, is also a prestigious alliance. * Award of Honour in Safety from the National Safety Council of Tamilnadu Chapter for the * Caltex SPIC India Limited: SPIC's joint year 1998. venture with Caltex Oil Corporation, USA, has already made considerable inroads into the British Safety Council Awards Liquefied Petroleum Gas (LPG) markets and * This global level safety award has been gained impressive market shares with over given to SPIC