GOA CARBON LIMITED
ANNUAL REPORT 2011-2012
We are in the middle of difficult yet interesting times; the current state
of the economy poses severe challenges to the business houses. Though RBI
has taken steps to curb inflation, it remains sticky and above the
tolerance level while slowing the growth. These trends are occurring when
our economy faces fiscal deficit, current account deficit and a
deteriorating asset quality. The Indian economy continues to remain under
pressure as was seen in the latest Industrial Production numbers, which
unexpectedly contracted to 3.5% in March and the annual rate of inflation
for the month of April rose to 7.23%.
However, we should not get intimidated by the present, as the future
requires steady and watchful progress. Economists believe that the country
could still manage to grow around 7% for the current financial year. The
demand for aluminium is estimated to grow at 6-8% per annum in view of the
low per capita consumption in India. In addition, demand for the metal is
expected to pick up as the scenario improves for user industries, like
power, infrastructure and transportation, which are seen expanding further.
I am pleased to inform you that your company has registered a continuing
growth in terms of net income and profit despite the economy being hit by
several domestic as well as global factors. I remain optimistic on the
future growth prospects of your Company and its long term outlook.
For the year ended March 31, 2012, Goa Carbon recorded a net profit of
Rs.1048.75 lakh and the net income from operations stood at Rs. 34,383.64
lakh. Last year income from operations stood at Rs. 26,775.73 lakh and a
net profit of Rs. 919.12 lakh. The company has registered a 28.41% year-
on-year growth in its net income as compared to previous year on March 31,
The Board of Directors of the Company is pleased to recommend a dividend at
the rate of 40% for the year ended March 31, 2012.
India holds 3 percent share of the world aluminium capacity. Indian
producers maintain to be the lowest cost producers due to their captive
power plants, cheap labor and proximity to supply of raw material. The per
capita consumption of aluminium in India continues to remain low at under
one kg as against thirty Kgs in US and Europe and ten Kgs for China,
holding a tremendous potential for growth in India.
Going ahead, we remain optimistic on the future growth potentials of the
sector and are committed to achieve higher growth levels. We are passionate
towards investing in Goa Carbon`s future and are exploring opportunities of
expanding our activates in India as well as aboard. We look forward to your
continuous support in the future.
Shrinivas V. Dempo