GACL to recast repayment schedule

Bharuch-based fertiliser major Gujarat Alkalies and Chemicals Ltd (GACL), as part of a financial reconstruction plan, is rescheduling repayment of installments to meet the company's projected cash flows.

The company had posted a net profit of Rs 53.28 crore this year against a loss of Rs 40.78 crore in the previous year.

"Wrong decisions taken by the company resulted in a high debt-equity ratio. Funds were borrowed at high interest rates and the plants were not operating at their full capacity," said P K Taneja, managing director, GACL.

The company, which is India's largest producer of caustic soda, exceeded all its past records in terms of production this year.

Production increased in caustic soda lye and flakes, caustic potash flakes, sodium cyanide, phosphoric acid with impressive figures.

The company is also set to reduce its debt-equity ratio. GACL has already discharged debts of Rs 201.65 crore including foreign currency loans and debentures.

The company's interest expenditure has reduced to Rs 93 crore (Rs 124 crore).