This refers to your list of queries vide your mail dated 23rd May 2017. We would like to address it as under:
1) The promoter holding is 40.09%.
2) Percentage of promoter shareholding currently pledged is 9.91%.
3) Your comment on the freight charges appears to be pertaining to previous FY2015-16. The freight charges may vary regularly depending upon following factors:
(i) Origin to destination.
(ii) Freight incurred on handling of material to and fro job workers.
(iii) Domestic freight and international freight (comprising of sea shipment and air shipment). Hence we cannot directly co-relate the amount of freight charges with volume and/or value of the goods sold.
4) Query regarding consumption of raw-material: we believe that, this question was addressed during our concall. You are requested to refer to the concall transcript.
5) Unit No.5 status: Unit No.5 from Omkar Speciality Chemicals Ltd. has now been transferred to Lasa Supergenerics Ltd post demerger.
Lasa has concrete plans to make human APIs/Veterinary APIs at this plant. Minor modifications in the plant are required to make it suitable for FDA requirements and compliance of regulatory matters. The same is in the progress and the plant is expected to go on stream during Current Financial Year.
In addition to Unit No.5, Lasa has got enough manufacturing capacities at Urdhwa Chemical Company Pvt. Ltd. (which are also merged in Lasa) and Lasa’s own facilities at Mahad. In other words, Lasa will not face any capacity constraints for its growth.
7) Ours is a Company engaged in manufacture of Speciality Chemicals and not Commodity Chemicals. In manufacturing of commodity chemicals such as Refinery products, petrochemicals, salt, soda ash, caustic soda, cement, etc. the plant capacities are dedicated to manufacturing of a single product and there is no variation in terms of a production capacity once the facility is installed. However, in case of speciality chemicals, the facilities are multi-purpose and a number of products can be manufactured in the same capacity on alternate basis. Since the manufacturing process and the number of steps involved in the manufacturing are different for different products, the resultant output from a given capacity also varies according to the product mix manufactured, during a particular period. Hence the volumetric capacity (the aggregate volume of all the reactors combine together) remains the same but the output quantity may vary depending on the product mix.
8) The promoters have sold stake in the recent past for reducing high cost debt. This is currently invested in the company as unsecured interest free loan. The Board will take appropriate view on conversion of this debt into Equity after compliance of all the necessary statutory requirements.
9) Status on Working Capital: This issue was also addressed during the concall. Kindly refer to the transcript.
10) The capacity: As explained during the concall, the Company has already resorted to get some of the products manufactured from dedicated job workers. So currently company does not face any capacity constraints.
Thanks & Best Regards,