www.hocl.gov.

in

8.4 Hindustan Fluorocarbons Ltd.

Hindustan Fluorocarbons Ltd. (HFCL) was incorporated on 14.07.1983 (commencement of business in 1987) with the objective to manufacture various grades of Poly Tetra Fluor Ethylene (PTFE) as import substitute and to save foreign exchange. HFCL is a Schedule-D / listed BIFR / BRPSE referred CPSE in Chemicals & Pharmaceuticals sector under the administrative control of M/o Chemicals and Fertilizers, D/o Chemicals and Petrochemicals. HFCLs Registered and Corporate offices are at Hyderabad, Andhra Pradesh. The company is a subsidiary of Hindustan Organic Chemicals Ltd.(HOCL), which holds 56.6% equity of HFCL. The other joint venture partner is the Government of Andhra Pradesh through Andhra Pradesh Industrial Development Corp. (APIDC).

Human Resource Management

The Company employed 156 regular employees (Executives 75, Non Executive 81) as on 31.03.2010. The retirement age in the Company is 58 year. It is following IDA 1997 pattern of remuneration. Details of employment in last 3 years are given below:
(Nos.) 41 152 193 Particulars I. Executives II. Non-Executives # Total Employees (I+II) 2009-10 75 81 156 2008-09 46 113 159 2007-08

# Detail break-up of Non-Executive employees is at Statement no. 25 of volume-I of PE Survey.

Industrial / Business Operations

HFCL is engaged in production and marketing of Poly Tetra Fluoro Ethylene (PTFE) and CFM-22 through its single operating unit at Medak, Andhra Pradesh. The physical
Main Product PTFE Capacity Utilization Unit MT % 2009-10 86 18% 2008-09 22 4% 2007-08 114 22%

performance of company during last 3 years is shown below:

Strategic Issues

Domestic market for the companys product continued to be sluggish in spite of imposition of anti-dumping duty on material coming from China and Russia. Therefore, the company had to sell more quantity of CFM-22 in a highly competitive market instead of converting it into PTFE. The CDM project got registered on 14.11.2008 by the United Nations Framework Convention on Climate Change (UNFCCC) Executive Board and it was commissioned in January, 2010. This project will provide HFL greater financial and commercial stability and operational flexibility. The company is registered with BIFR. BRPSE recommended for revival as a PSE on 13.6.2008 and the fresh funds required for revival of the company were to be arranged by HOCL from its own resources and / or through banks / financial institutions. HOCL has submitted a rehabilitation plan for HFL to BIFR. The companys shares are listed at stock exchanges of Hyderabad (HSE) and Mumbai (BSE).

Performance Highlights

The operational performance of the company along with performance indicators and selected financial ratios during the period 2007-08 to 2009-10 can be seen on the opposite page. The Company registered an increase of ` 2.96 crore in total income during 2009-10 which went up to ` 26.60 crore in 2009-10 from ` 23.64 crore during 2008-09. The net profit of the company increased to ` 3.06 crore, an increase of ` 2.50 crore over the previous year due to better margins and improved working capital position as a result of enhancement of working capital limit by bank and financial assistance from the holding company viz HOCL.

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Chemicals and Pharmaceuticals

Hindustan Fluorocarbons Ltd.

Balance Sheet Particulars Authorised Capital (1) Sources of Fund (1.1) Shareholders Funds (A) Paid-Up Capital Central Govt Others (B) Share App. Money (C) Reserves & Surplus Total (A) + (B) + (C) (1.2) Loan Funds (A) Secured Loans (B) Unsecured Loans Total (A) + (B) (1.3) Deferred Tax Liability Total (1.1) + (1.2) + (1.3) (2) Application of Funds (2.1) Fixed Assets (A) Gross Block (B) Less Depreciation (C) Net Block (A-B) (D) Capital WIP Total (C) + (D) (2.2) Investment (2.3) Current Assets Loan & Advances (A) Inventories (B) Sundry Debtors (C) Cash & Bank Balances (D) Other Current Assets (E) Loan & Advances Total (A)+ (B)+ (C)+ (D)+ (E) (2.4) Current Liabilities & Provisions (A) Current Liabilities (B) Provisions Total (A+B) (2.5) Net Current Assets (2.3-2.4) (2.6) DRE/PRE (2.7) Deferred Tax Asset (2.8) Profit & Loss Account(Dr) Total (2.1+2.2+2.5+2.6+2.7+2.8) Important Indicators (i) Investment (Equity + Long term loan) (ii) Capital Employed (iii) Networth (iv) Cost of Production (v) Cost of Sales (vi) Value added (at market price) (vii) Total Employees (Other than casuals)(Nos.) (viii) Avg. Monthly emoluments per employee ( in `)

1402, Babukhan Estate Bashirbagh, Hyderabad Andhra Pradesh - 500 001 (` in lakhs) 2009-10 2100 2008-09 2100 2007-08 2100 Profit & Loss Account Particulars (1) Income (A) Sales/Operating Income (B) Excise Duty (C) Net Sales (A-B) 0 1961 0 0 1961 4803 0 4803 0 6764 0 1961 0 0 1961 4489 0 4489 0 6450 0 1961 0 0 1961 214 3053 3267 0 5228 (D) Other Income/Receipts (E) Accretion/Depletion in Stocks (I) Total Income (C+D+E) (2) Expenditure (A) Raw Materials Conspn. (B) Stores & Spares (C) Power & Fuel (D) Manufacturing/ Direct/ Operating Expense (E) Salary & wages (F) Other Expenses (G) Provisions (II) Total Expenditure (A to G) 5381 4968 413 0 413 0 1844 196 8 0 249 2297 915 227 1142 1155 0 0 5196 6764 2009-10 5971 1568 -3235 2278 1528 1402 156 24092 5245 4941 304 58 362 0 1085 9 33 0 184 1311 665 179 844 467 0 0 5621 6450 2008-09 5558 771 -3660 2273 1329 1267 159 23847 5226 4908 318 54 372 0 227 16 2 0 148 393 649 150 799 -406 0 0 5262 5228 2007-08 5014 -88 -3301 1503 1533 331 193 18696 Financial Ratios (i) Sales to Capital Employed (ii) Cost of Sales to Sales (iii) Salary/Wages to Sales (iv) Net Profit to net worth (v) Debt Equity Ratio (vi) Current Ratio (vii) Sundry Debtors to sales (viii) Total Inventory to Sales 2009-10 111.67 87.26 25.76 -9.46 2.45 2.01 40.86 384.39 2008-09 179.12 96.23 32.95 -1.53 2.29 1.55 2.38 286.77 2007-08 -1154.55 150.89 42.62 -121.05 1.67 0.49 5.75 81.55 (3) Profit Before Dep., Int., Taxes & EP (PBDITEP) (I-II) (4) Depreciation (5) DRE/ Prel Exp written off (6) Profit Before Int., Taxes & EP (PBITEP) (3-4-5) (7) Interest (A) On Central gov. Loans (B) On Foreign Loans (C) Others (D) Less Interest Capitalised (E) Charged To P & L Account (A+B+C-D) (8) Profit Before Tax & EP (PBTEP) (6-7E) (9) Tax Provisions (10) Net Profit / Loss Before EP (8-9) (11) Net Extra-Ord. Items (12) Net Profit / Loss (-) (10-11) (13) Dividend Declared (14) Dividend Tax (15) Retained Profit (12-13-14) 0 0 261 0 261 382 0 382 76 306 0 0 306 0 0 173 0 173 91 3 88 32 56 0 0 56 0 0 57 0 57 4005 2 4003 7 3996 0 0 3996 908 34 303 13 451 281 0 1990 670 27 0 643 929 8 297 51 455 294 0 2034 330 32 34 264 492 0 277 20 433 182 0 1404 4104 42 0 4062 1897 146 1751 159 750 2660 1557 176 1381 39 944 2364 1130 114 1016 4522 -30 5508 2009-10 2008-09 (` in lakhs) 2007-08

PUBLIC ENTERPRISES SURVEY 2009-2010

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