dhrangadhra chemical works

YEAR EVENTS 1939 - The Company was incorporated at Dhrangadhra (Gujarat State). The Company manufacture soda ash and other salts. The Company also carries on the business of chemicals, drugs, essences, cordials, acids, alkalies, pharmaceuticals, etc. Soda ash, soda bicarb and calcium chloride are manufactured at Dhrangadhra and caustic soda at Sahupuram. The products are sold under the trade name `Horseshoe'. 1972 - Authorised capital increased. issued in prop. 1:3. 54,180 Bonus Equity shares

1977 - Div. on 12,957-7.8% Pref. shares raised to 11% from 13.8.1976 and made redeemable in 5 equal instalments starting from 13.8.1987. 2,592 Pref. shares redeemed. 1978 - Redeemed 2,592-11% Pref. shares in 1978-79, 2,591-11% Pref. shares in 1979-80 and 2,591-11% Pref. shares in 1980-81. 1980 - Plastic Resins and Chemicals, Ltd. (PRCLTD), an erstwhile subsidiary of the Company was amalgamated with the Company with effect from 30th September, and PRCLTD had come to be known as the PVC division of the Company. tapes was Financial - Pantape Magnetics, Ltd. (PML), manufacturers of magnetic at Nanjangud, Mysore, Karnataka became a sick unit and referred to the Appellate Authority for Industrial & Reconstruction (AAIFR). Company - The ICICI proposed a scheme of amalgamation between the and PML by which one preference share of Rs 25 each of

CDW was to

be issued for every 25 shares held in PML by its shareholders. Accordingly, 21,000 redeemable preference shares of Rs 25 each were being issued to the shareholders PML.

1985 - 56-15% Pref. shares and 91 No. of equity shares issued without payment in cash to the members of PRC, Ltd. on its merger. 1986 - Equity shares sub-divided in Mar. 1987. 4,69,730 rights equity shares of Rs 10 each then issued (Prem. Rs 15 per share; prop. 1:5). Additional 1,17,432 shares allotted to retain oversubscription. Another 23,486 shares (prem. Rs 15 per share) offered to employees. Only 7,550 shares taken up. The balance 15,936 shares allowed to lapse. 1987 - The caustic soda division was affected by severe power cut and fluctuations in voltage in Tamil Nadu. The Company undertook a feasibility study to manufacture VCM through alcohol route. electronic - Necessary approvals were obtained to manufacture components, PVC and plastic based products. - The Company's R&D division at Sahupuram undertook activities such as higher purification of limenite ore and standardising the bleaching parameter to make premium grade synthetic rutile. - The Company issued 14% - secured non-convertible debentures of Rs 250 lakhs to UTI, LIC, GIC and its subsidiaries on private placement basis. - The name of the Company was changed from Dhrangadhra Chemical Works, Ltd. to DCW Ltd. with effect from 8th April. - 29,43,362 bonus equity shares issued in prop. 1:1 and were allotted on 1.11.1988.

1989 - The company privately placed with financial institution and banks 4,15,000-14% debentures of Rs 100/- each. These debentures are redeemable at a premium of 5% from 1994 in various annual instalments.

No. of (DHPL) are

- The Company acquired the entire shareholding of 20,00,000 equity shares of Rs 10/- each in DCW Home Products, Ltd. making a wholly owned subsidiary. The popular products

`Jaag', a detergent and `Marvo', a free flowing salt. 1990 - The second boiler was commissioned. During the year the PVC plant was modernised by installation of additional stainless steel reactors and a modern energy efficient drier. - The Company issued debentures aggregating Rs 3.50 crores on private placement basis with financial institutions. - 35,32,035 bonus equity shares issued in prop. 3:5 in December. 1991 - A new infusion plant was installed and commissioned as a part of modernisation programme undertaken at the caustic soda unit. Modernisation of the Beneficiated limenite unit was undertaken to enhance the unit's capacity from 15,000 TPA to 25,000 TPA. - At the PVC division, a new fluid bed drier was installed and commissioned in addition to the installation of four new stainless steel reactors.

- Approvals were received for the promotion of a new company by the name of DCW Finance, Ltd., for carrying out the business of financing, investments, leasing and other related business. The Company proposed to make it its wholly owned subsidiary. of 16.5% - 53,33,310 No. of equity shares issued in part conversion Debentures. 1992 - During January, the Company offered 22,22,222-16.5% partly convertible debentures of Rs 135 each on Rights basis in the proportion 23 debentures: 100 No. of Equity shares held (all were taken up). Additional 3,33,323 debentures were allotted to retain oversubscription. - Another 1,11,110-16.5% debentures were issued to employees on an

equitable basis (only 35,500 debentures taken up). The unsubscribed portion of 75,6000 debentures were allotted to Stock Holding Corporation of India AIC GIC Mutual Fund. - Rs 90 of the face value of each debenture was to be converted 35 per October. to be allotment issue of a - Balance of Rs 45 of the face value of each debentures was redeemed at par at the end of 7 years from the date of of debentures. Necessary approvals were received for into two equity shares of Rs 10 each at a premium of Rs share. Accordingly shares were allotted on 11th

49,17,360 No. of equity shares of Rs 10 each for cash at

premium of Rs 15 per share on Rights basis in the proportion 1:3. - Another 9,83,500-14% secured redeemable non-convertible debentures with detachable warrants were also to be Rights basis in the proportion 1 NCD: 15 No. of equity held. The debentures are to be redeemed at par in one

issued on shares instalment allotment

of Rs 100 each at the end of 5th year from the date of of NCDs.

75,000

- The Company undertook a project for the manufacture of tonnes per annum of whole wheat flour at MIDC, Taloja, Maharashtra.

1994 - The Company proposed to build a minor port next to Caustic Soda division in Tamilnadu which would be utilised for creating a tank farm on international lines for merchant sales apart from Company's own needs. - Another subsidiary Company DCW Power Corporation Ltd., entered Pradesh Combustion Madhya into a MOU with govt. of Madhya Pradesh and the Madhya Electricity Board for setting up a 120 MW Internal residual oil fixed power generating plant at Mandideep in Pradesh.

allotted

- 92,25,000 shares allotted against GDR. as rights.

49,17,360 shares

1995 - The Company proposed to increase the PVC plant capacity from 60,000 tonnes to 1,00,000 tonnes per annum. - In March, the first generator of 6MW was commissioned. Two more was installed generation of 6MW each were commissioned and one more commissioned in April. Two wind mills of 250 KW was

each at Poolavadi, Tamilnadu. - The Company proposed to set up a commercial plant for manufacturing Yellow Iron Oxide and an Acid Regeneration

plant in

order to utilise the effluents from the upgraded limenite plant as feed-stock. 1996 - The Company undertook to set up facility at its factory in Sahupuram, Tamil Nadu for recovery ferrite grade iron oxide from effluent of the beneficiated limenite plant. - It was also proposed to manufacture soft ferriates depending on the quality of iron oxide. - The Company proposed to concentrate its efforts on its core chemicals & business activity viz., manufacture & sale of heavy petrochemicals, to separate companies in the group. - It was proposed to transfer at book value the company's business Ltd. Products Ltd. centre activity to a new company viz. DCW Estates Pvt. and the company's entire shareholding in DCW Home to another new company viz. Crescent Finstock Pvt. Ltd.

1999 - During the year the performance of the Company was adversely affected due to the continuing global demand recession and generally adverse market conditions. 2000 - The Company issued 57,78,886 No. of equity shares of Rs.10/each for cash at par aggregating Rs.5,77,88,860/- on a Rights basis to the existing equity shareholders of the company in the ratio of 1(one) equity share for every 5 (Five) equity shares held.

- The Company has entered into a strategic alliance with Hindustan Lever for manufacture of detergents/detergent intermediates for HLL at DCW's plant at Dhrangadhra. 2002-DCW Ltd has informed BSE that Shri T S Ravikumar, Director and Secretary of the company has resigned from the service of the company with effect from November 15, 2002 and Shri C V Subramanian has joined the services of the company as Chief Financial Officer with effect from October 21, 2002.

Source : Dion Global Solutions Limited

Management - DCW
Name Shashi Chand Jain Bakul Jain F H Tapia Yuvraj Saheb of Dhrangadhra V H Joshi Name Pramod Kumar Jain Vandana Jain Sushil Kumar Jalan R V Ruia Designation Chairman and Managing director Managing Director Director Director Director Designation Managing Director Executive Director Director Director

Location Details - DCW Location Type Factory/plant Address Salt Works: Sahupuram - 628202 Tamil Nadu - India Phone : Fax : Email : N.A. Internet : N.A. DCW Ltd, Nirmal 3rd Floor Nariman Point Mumbai - 400021 Maharashtra - India Phone : Fax : Email : N.A. Internet : N.A.

Investor Service Centre

Registered Office

Dhrangadhra Dhrangadhra - 363315 Gujarat - India Phone : 23706 Fax : 23245 Email : chital@dcwltd.com Internet : N.A. Caustic Soda Division: Sahupuram - 628202 Tamil Nadu - India Phone : Fax : Email : N.A. Internet : N.A. PVC Division: Sahupuram - 628202 Tamil Nadu - India Phone : Fax : Email : N.A. Internet : N.A. Salt Works Kuda - 0 Gujarat - India Phone : Fax : Email : N.A. Internet : N.A. Nirmal 3rd Floor Mumbai - 400021 Maharashtra - India Phone : 22871914,22871916,22020743 Fax : 22028838 Email : N.A. Internet : N.A. Indra Palace 1st Floor H-Block Connaught Circus New Delhi - 110001 Delhi - India Phone : Fax : Email : N.A. Internet : N.A. Soda Ash Division: Dhrangadhra - 363315 Gujarat - India Phone : Fax : Email : N.A. Internet : N.A. Caustic Soda Division: Arumuganeri P.O. Sahupuram - 628202 Tamil Nadu - India Phone : Fax : Email : N.A. Internet : N.A. PVC Division: Arumuganeri P.O. Sahupuram - 628202 Tamil Nadu - India

Factory/plant

Factory/plant

Factory/plant

Head Office

Branch Office

Factory/plant

Factory/plant

Factory/plant

Phone : Fax : Email : N.A. Internet : N.A. Factory/plant Salt Works Kuda, Arumuganeri P.O. Sahupuram - 628202 Tamil Nadu - India Phone : Fax : Email : N.A. Internet : N.A. Nirmal 3rd Floor Nariman Point Mumbai - 400021 Maharashtra - India Phone : 22871914, 22871916, 22020743 Fax : 22028838 Email : N.A. Internet : N.A. Soda Ash Division: Dhrangadhra Dhrangadhra - 363315 Gujarat - India Phone : Fax : Email : N.A. Internet : N.A.

Head Office

Factory/plant

Bonus History (DCW)

Announcement Date 11-10-1990 11-10-1988 24-08-1972 24-08-1966 Bonus Ratio 3:5 1:1 1:3 1:5 Record Date 07-12-1990 03-10-1988 Ex-Bonus Date -

The Directors present their 71st Annual Report and Audited Accounts for the Financial Year ended 31st March, 2010: 1. Financial Results: 31-3-2010 (Rs. in lacs) 31-3-2009 iRs. in lacs)

Cross Sales Gross Profit Less: Provisions Deprecation Profit Before Tax Lix: Current Previous Period Fringe Benefit Tax MAT Credit available for (set off)/ utilized

109,575.61 14,339.00

101,192.73 6,125.11

4,892.71 9,446.29 1,725.00 (155.00) -

4,123.28 2,001.83 225.00 52.22

638.25 2,208.25

(225.00) 52.22 1,949.61

Profit After Current Tax & Tax Adjustments Deferred Tax Profit after Tax Add: Balance brought forward Profit available for Appropriation Appropriations: General Reserves Proposed Dividend Dividend Distribution Tax Balance carried forward 2. Dividend:

7,238.04

475.00 6,763.04 2,067.46

525.00 1,424.61 3,331.31

8,830.50

4,755.92

4,000.00 706.16 120.01

2,000.00 588.46 100.01

4,004.33

2,067.45

Your Directors recommend share of Rs. 2/- each. 3. Operations:

payment of Dividend at Rs. 0.36 per equity

Sales during the year were Rs. 1095.76 crores as compared to Rs. 1011.93 crores recorded in the previous year, registering an increase of 8%. The Gross Profit for the year (before depreciation) is Rs. 143.39 crores against Rs. 61.25 crores in previous year. The profit before tax amounted to Rs. 94.46 crores as against Rs. 20.02 crores in the previous year. After providing Rs. 22.08 crores for current taxes, the profit before deferred tax is Rs.72.38crores, as against Rs. 19.50 crores. The profit after provision of deferred tax is Rs. 67.63 crores against previous years Rs. 14.25 crores registering an increase of 372%. Deferred Tax is only a provision as per accounting guidelines and is not an outflow. The Company achieved record profits during the financial year on account of improved workings of all Divisions of the company as compared to previous year during which the working of the company suffered due to global slow down. 4. Exports:

The Companys exports were Rs.96.92 crores as compared to Rs. 102.12 crores in the previous year. The 5% decrease in exports was on account of lower export of Beneficated IImenite coupled with lower price realization due to global recession in the user industries. However the prices of the product have since improved and the Company is hopeful of achieving increased exports in the current year. 5. Divisionwise Performance:

a) PVC Division: The turnover of the division was Rs. 456.66 crores as compared to Rs. 490.15 crores, registering a decrease of 7%. This decrease in sales was due to decrease in quantity sold of PVC compared to previous year. The company sold 85311 MT of PVC resin compared to 90656 MT in the previous year. The sales during previous year has been higher due to higher opening carryover stocks which were sold in the previous year. All major user segments are recording good demand and PVC industry 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 was Rs. 438.84 crores as compared to Rs. 305.80 crores in the previous year, registering an increase of 44% in the sales. This increase in turnover was due to better price realisation on Caustic Soda and also due to sale of surplus power generated in the Companys Captive Power Plants at Sahupuram in Tamilnadu. The Company sold 75611 MT of Caustic Soda during the year as compared to 77807 MT in the previous year. c) Soda Ash Division:

The turnover of the division was Rs. 192.87 crores as compared to Rs. 209.38 crores in the previous year registering a decrease of 8%. The decrease in turnover is mainly due to lower realization on Soda Ash and Soda Bicarbonate compared to previous year. The Company sold 80186 MT of Soda Ash, 23 741 MT of Soda Bicarbonate and 29721 MT of Detergent during the year as compared to 65426 MT of Soda Ash, 1 7542 MT of Soda Bicarbonate and 39222 MT of Detergent, in the previous year. 6. PROJECT UNDER IMPLEMENTATION:

6.1 Additional 8.27 MW Turbine In Thermal Power Plant The Company has successfully completed and commissioned its Captive Thermal Co-generation Power Plant for generating 50MW of power and 85 TPH steam during previous year at Sahupuram unit in Tamilnadu. This Thermal Co-Generation Power plant has been established keeping in view of future expansion plans of the Company. The Power and Steam at present generated by this Thermal Co- Generation Power Plant is not totally consumed Captively and excess power is sold to TNEB and Third Parties in the State of Tamil Nadu. The additional Steam generated will however, be consumed only after the company starts its future projects. Keeping this in view and to run the Thermal Co-Generation Power Plant to its full capacity, Company is establishing an Injection Turbine to generate additional Power to the extent of 8.27 MW from the excess Steam available in this Thermal Co-generation Power Plant, which can be sold to third parties. This turbine will be commissioned by end May, 2010 and will help in reducing the cost of energy thus improving the bottom line. 6.2 Solway Towers at Dhrangadhra Unit Solway towers installed at the Soda Ash Unit are still to be commissioned. An assignment has been given to Akzo Noble, Neatherlands, to do basic engineering to utilise the towers to its optimum efficiency and thereby to increase Soda Ash Production. Akzo Noble has already submitted Basic Engineering report and detailed Engineering is under final stages of preparation and the modification necessary for utilizing this towers to its optimum efficiency and the commissioning of the towers is expected to commence soon. 6.3 Calcium Chloride Plant The Calcium Chloride project at Companys Soda Ash unit has also been assessed by Akzo Noble, Netherlands and they have suggested improvements in the unit to make it commercially operational. The company has completed detailed Engineering work as per the Basic Engineering package submitted by Akzo Noble, Netherlands. Orders have already been placed for necessary additional equipments required for carrying out the modifications for this project and it is expected to commence commercial production by fourth quarter of 2010 -11. 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. 11. Directors:

Dr. S. C. Jain, Shri P. K. lain and Shri. R. V. Ruia, Directors, retire by rotation at the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment. 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. Regarding qualification in Auditors Report on interest capitalization, the notes to the accounts referred to in the Auditors Report are self explanatory and do not call for any further clarification. As regards inclusion of power turnover and profit related thereto as part of Caustic Soda segment is due to the fact that the Thermal Co-generation Power Plant from which surplus power has been sold is Captive Power Plant of the Companys Caustic Soda Division. Surplus power is presently available with the Company on account of delay in establishing / commissioning of certain expansion / new projects. As the sale of power is of a temporary nature, it has not been reported as a separate segment. 13. Cost Audit:

In accordance with the directions received from the Ministry of Corporate Affairs, the Cost Audit of the Companys Soda Ash and Caustic Soda Divisions are being conducted for the Financial Year 2009-2010 by Cost Auditors, M/s. N. D. Birla & Co. and M/s. R. Nanabhoy & Co. respectively. Their appointments were approved by the Ministry of Corporate Affairs. The Cost Audit of these Divisions is conducted every year and the Reports are submitted by the Cost Auditors to the Central Government. 15. 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. 16. Insurance:

All the properties of the Company are adequately insured. 17. Industrial Relations:

The relations between the employees and the management were cordial and an atmosphere of understanding prevailed throughout the year. 18. Acknowledgement:

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 Dr. Shashi Chand Jain Chairman and Managing Director Mumbai, 14th May, 2010.

Raw Materials Product Name Vinyl Chloride Monomer Coal

------------------- in Rs. Cr. ------------------Unit Metric Tonnes Metric Tonnes Quantity 86,834 219,194

Mar 2010 Value 304.88 107.75

Ilmenite Others Coke Salt Calcium Carbide Lime Stone Ammonia Lauryl Peroxide Consumption Of Own Manufactred products

Metric Tonnes Not Reported Metric Tonnes Metric Tonnes Metric Tonnes Metric Tonnes Metric Tonnes Metric Tonnes Not Reported

74,527 NA 16,393 346,900 3,653 152,402 1,220 18 NA

37.33 32.89 18.98 16.27 11.64 10.71 1.90 0.66 0.00

Total

543.01

DCW is an industry pioneer with a long track record in its markets and has a successful record in developing downstream and related products. Its competitive position is enhanced by the diversity of its products. DCW has focused on development of value-added and export-oriented products like Upgraded Ilmenite and Pigment grade Yellow Iron Oxide.

Products
DCW IS A DIVERSIFIED manufacturer of basic chemicals, such as: * Caustic Soda * Liquid Chlorine and Chlorine based products such as Trichloroethylene and HCL * Upgraded Ilmenite or Synthetic Rutile * Yellow Iron Oxide * PVC Resin * Soda Ash * Ammonium bi-carbonate * Liquid Bromine and Bromide.

DCW History
THE DCW STORY GOES back to 1925 when the foundation stone of India's first Soda Ash factory at Dhrangadhra -- a small principality in Gujarat in West India -- was laid. The plant was taken over in 1939 and run under the name Dhrangadhra Chemical Works. To wish the venture luck, the company adopted the horse shoe as their corporate logo, which stands till today, and is widely recognised as a symbol of excellence. It is said that every oak begins as an acorn. The process of growth received a major impetus in 1959 with the commissioning of the chlor-alkali plant at Sahupuram in the southern state of Tamilnadu. At that time, the area was completely barren. Today this complex has made its mark on the chemical map of India as well as the world.

Growth at the chlor-alkali complex was rapid as between 1965 and 1970 three plants were erected that turned the co-product chlorine into a money spinner; a liquid chlorine plant in 1965, the country's first tri-chloroethylene plant (left) in 1968 and an integrated PVC resin plant in 1970-making the company one of the first in the nascent petrochemicals field. In the same year, 1970, the company set up a plant to manufacture upgraded ilmenite, the first of its kind in Asia, and even today, one of the few of its kind in the world. In 1986, to reflect the expanded activity spectrum, and its emergence as a multi-product and multi-locational company, the corporate name was changed simply to DCW Ltd.

Experion Case Study X-Track Implementation at Dhrangadhra Chemical Works, Tuticorin, India for Wireless Temperature Monitoring ABOUT THE CLIENT DCW (Dhrangadhra Chemical Works) is a $250million publicly listed company.DCW is engaged in manufacturing basic chemicals such as caustic Soda, synthetic rutile, soda ash among other chemicals. DCW has a dedicated Ilmenite plant at its chemical factory in Tuticorin.

CLIENT CHALLENGE Rotary Digester Ilmenite Plant The duration of Ilmenite manufacturing process is around 16 hours and consists of 12 different stages. The core chemical reaction consists of treatment of Ilmenite ore with acid and superheated steam inside the digester. The digester temperature varies continuously from 400C to 1300C during the above reaction. The reaction time is controlled based on the real time temperature inside the digester and has a critical impact on the quality of the output product. Without a real time temperature monitoring system, the digester temperature and reaction time is estimated by heuristic techniques only. This creates unnecessary plant overheads and hampers the product quality. Another key issue highlighted by DCW Management was the associated safety hazard in the Ilmenite plant. The unchecked digester temperature was placing the safety of the plant operators at a risk. A conventional wired system is not feasible as the digester is continuously rotating. DCW wanted to verify the system effectiveness via a pilot installation in their trial digester. The long term plan is to carry out the system implementation for 30 digesters in the plant. The stated essential requirement was for a cost effective wireless monitoring system meeting all DCW technical and safety requirements. KEY REQUIREMENTS A wireless monitoring solution which: a) works real time b) ensures operator safety c) reduces plant overheads d) Helps plant operators to continuously monitor remotely e) is cost effective f) can be replicated across 30 digesters g) helps improve product quality through accurate temperature control EXPERION SOLUTION Transmitter Receiver DCW evaluated several vendors including leading industry players for a real time wireless monitoring system meeting their key requirements. The company was pleased with the results from Experion X-Track Pro. Hence, DCW chose Experion as the solution provider and partner in this initiative. Experion recommended integrating the monitoring system with Honeywell PLC based SCADA system. This enabled plant operators to continuously monitor the digester temperature from the control room.

X-Track Pro is an X-Track product variant designed and developed for handling diverse requirements of process industries. X-Track is a real time wireless parameter monitoring system designed and developed by Experion for a host of businesses. X-Track offers a wide range of solutions for real time monitoring of critical parameters such as temperature, humidity, pressure, speed and flow. Experion implemented X-Track Pro system at DCWs Ilmenite plant. X-Track Pro battery powered transmitter was installed on the digester surface and connected to a RTD probe for measuring digester temperature. The receiver was installed on a supporting beam in the factory floor. The state of the art Zigbee wireless protocol was used for communication between transmitter and receiver. X-Track Pro receiver was connected to Honeywell PLC inside the control room via an RS-485 serial interface. The digester temperature data was measured and transmitted at a 30 second time interval as specified by DCW. The measured temperature data was displayed in the DCW SCADA system. Both X-Track Pro modules were provided with IP-65 enclosures in view of the hazardous deployment environment. Experion Case Study X-Track Pro System Overview The efficiency of X-Track Pro wireless system has encouraged DCW to explore other possible uses. Based on the success of X-Track Pro in Ilmenite plant, DCW is considering the solution for its Chlor Alkali plant. SCADA Mimic Diagram BUSINESS BENEFITS 1. X-Track Pro benefits DCW by generating a marked improvement in the product quality by providing more accurate control of temperature variations automatically without manual intervention. 2. X-Track Pro facilitates optimization of the manufacturing process, saving valuable time, effort and costs. 3. Monitoring the digester temperature via SCADA system ensures data accuracy for operational planning and scheduling. 4. Enhanced plant operator safety in hazardous working conditions. CORPORATE HEADQUARTERS Experion Technologies (India) Pvt. Ltd. 407, Thejaswini, Technopark Trivandrum - 695 581 Kerala, India Phone: +91-471-3047310, Fax:+91-471-3047314 www.experionglobal.com, email:info@experionglobal.com INDIA AUSTRALIA USA SWITZERLAND - GERMANY NETHERLANDS

Explore DCW connections

Directors Report
The Directors present their 71st Annual Report and Audited Accounts for the Financial Year ended 31st March, 2010: 1. Financial Results: 31-3-2010 (Rs. in lacs) Cross Sales Gross Profit Less: Provisions Deprecation Profit Before Tax Lix: Current Previous Period Fringe Benefit Tax MAT Credit available for (set off)/ utilized 638.25 2,208.25 Profit After Current Tax & Tax Adjustments Deferred Tax Profit after Tax Add: Balance brought forward Profit available 8,830.50 4,755.92 475.00 6,763.04 2,067.46 525.00 1,424.61 3,331.31 7,238.04 (225.00) 52.22 1,949.61 4,892.71 9,446.29 1,725.00 (155.00) 4,123.28 2,001.83 225.00 52.22 109,575.61 14,339.00 31-3-2009 iRs. in lacs) 101,192.73 6,125.11

Year End : Mar '10

for Appropriation Appropriations: General Reserves Proposed Dividend Dividend Distribution Tax Balance carried forward 2. Dividend: payment of Dividend at Rs. 0.36 per equity 4,004.33 2,067.45 4,000.00 706.16 120.01 2,000.00 588.46 100.01

Your Directors recommend share of Rs. 2/- each. 3. Operations:

Sales during the year were Rs. 1095.76 crores as compared to Rs. 1011.93 crores recorded in the previous year, registering an increase of 8%. The Gross Profit for the year (before depreciation) is Rs. 143.39 crores against Rs. 61.25 crores in previous year. The profit before tax amounted to Rs. 94.46 crores as against Rs. 20.02 crores in the previous year. After providing Rs. 22.08 crores for current taxes, the profit before deferred tax is Rs.72.38crores, as against Rs. 19.50 crores. The profit after provision of deferred tax is Rs. 67.63 crores against previous years Rs. 14.25 crores registering an increase of 372%. Deferred Tax is only a provision as per accounting guidelines and is not an outflow. The Company achieved record profits during the financial year on account of improved workings of all Divisions of the company as compared to previous year during which the working of the company suffered due to global slow down. 4. Exports:

The Companys exports were Rs.96.92 crores as compared to Rs. 102.12 crores in the previous year. The 5% decrease in exports was on account of lower export of Beneficated IImenite coupled with lower price realization due to global recession in the user industries. However the prices of the product have since improved and the Company is hopeful of achieving increased exports in the current year. 5. Divisionwise Performance:

a) PVC Division: The turnover of the division was Rs. 456.66 crores as compared to Rs. 490.15 crores, registering a decrease of 7%. This decrease in sales was due to decrease in quantity sold of PVC compared to previous year. The

company sold 85311 MT of PVC resin compared to 90656 MT in the previous year. The sales during previous year has been higher due to higher opening carryover stocks which were sold in the previous year. All major user segments are recording good demand and PVC industry 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 was Rs. 438.84 crores as compared to Rs. 305.80 crores in the previous year, registering an increase of 44% in the sales. This increase in turnover was due to better price realisation on Caustic Soda and also due to sale of surplus power generated in the Companys Captive Power Plants at Sahupuram in Tamilnadu. The Company sold 75611 MT of Caustic Soda during the year as compared to 77807 MT in the previous year. c) Soda Ash Division: The turnover of the division was Rs. 192.87 crores as compared to Rs. 209.38 crores in the previous year registering a decrease of 8%. The decrease in turnover is mainly due to lower realization on Soda Ash and Soda Bicarbonate compared to previous year. The Company sold 80186 MT of Soda Ash, 23 741 MT of Soda Bicarbonate and 29721 MT of Detergent during the year as compared to 65426 MT of Soda Ash, 1 7542 MT of Soda Bicarbonate and 39222 MT of Detergent, in the previous year. 6. PROJECT UNDER IMPLEMENTATION:

6.1 Additional 8.27 MW Turbine In Thermal Power Plant The Company has successfully completed and commissioned its Captive Thermal Co-generation Power Plant for generating 50MW of power and 85 TPH steam during previous year at Sahupuram unit in Tamilnadu. This Thermal Co-Generation Power plant has been established keeping in view of future expansion plans of the Company. The Power and Steam at present generated by this Thermal Co- Generation Power Plant is not totally consumed Captively and excess power is sold to TNEB and Third Parties in the State of Tamil Nadu. The additional Steam generated will however, be consumed only after the company starts its future projects. Keeping this in view and to run the Thermal Co-Generation Power Plant to its full capacity, Company is establishing an Injection Turbine to generate additional Power to the extent of 8.27 MW from the excess Steam available in this Thermal Co-generation Power Plant, which can be sold to third parties. This turbine will be commissioned by end May, 2010 and will help in reducing the cost of energy thus improving the bottom line. 6.2 Solway Towers at Dhrangadhra Unit Solway towers installed at the Soda Ash Unit are still to be commissioned. An assignment has been given to Akzo Noble, Neatherlands, to do basic engineering to utilise the towers to its optimum efficiency and thereby to increase Soda Ash Production. Akzo Noble has already submitted Basic Engineering report and detailed Engineering is under final stages of preparation and the modification necessary for

utilizing this towers to its optimum efficiency and the commissioning of the towers is expected to commence soon. 6.3 Calcium Chloride Plant The Calcium Chloride project at Companys Soda Ash unit has also been assessed by Akzo Noble, Netherlands and they have suggested improvements in the unit to make it commercially operational. The company has completed detailed Engineering work as per the Basic Engineering package submitted by Akzo Noble, Netherlands. Orders have already been placed for necessary additional equipments required for carrying out the modifications for this project and it is expected to commence commercial production by fourth quarter of 2010 -11. 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. 11. Directors:

Dr. S. C. Jain, Shri P. K. lain and Shri. R. V. Ruia, Directors, retire by rotation at the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment. 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. Regarding qualification in Auditors Report on interest capitalization, the notes to the accounts referred to in the Auditors Report are self explanatory and do not call for any further clarification. As regards inclusion of power turnover and profit related thereto as part of Caustic Soda segment is due to the fact that the Thermal Co-generation Power Plant from which surplus power has been sold is Captive Power Plant of the Companys Caustic Soda Division. Surplus power is presently available with the Company

on account of delay in establishing / commissioning of certain expansion / new projects. As the sale of power is of a temporary nature, it has not been reported as a separate segment. 13. Cost Audit:

In accordance with the directions received from the Ministry of Corporate Affairs, the Cost Audit of the Companys Soda Ash and Caustic Soda Divisions are being conducted for the Financial Year 2009-2010 by Cost Auditors, M/s. N. D. Birla & Co. and M/s. R. Nanabhoy & Co. respectively. Their appointments were approved by the Ministry of Corporate Affairs. The Cost Audit of these Divisions is conducted every year and the Reports are submitted by the Cost Auditors to the Central Government. 15. 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. 16. Insurance:

All the properties of the Company are adequately insured. 17. Industrial Relations:

The relations between the employees and the management were cordial and an atmosphere of understanding prevailed throughout the year. 18. Acknowledgement:

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

Dr. Shashi Chand Jain Chairman and Managing Director Mumbai, 14th May, 2010.

Source : Dion Global Solutions Limited