FAQ

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13. When will the communication for final dividend payout @ 25% for the year 2007-08 and an issue of Bonus Shares at the rate of 2 Shares of every 5 Shares as per the record date? Please clarify.
14. What is the rate of Final Dividend and when will members receive the same ?
15. What is the ratio of Bonus issue and when is the record date of Bonus issue?
16. Record date of Right issue of DVR and the shares will be counted after bonus or pre bonus?
17. What is the cutoff date for postal ballot to the entitled shareholders for DVR issue, i.e. the date that the company will decided which shareholders can get the postal ballot forms and thus participate in the postal ballot?
18. Transfer of all dividends to my bank account?
19. I have still not received the Annual Report for 2007/08?
20. Are Gujarat NRE Minerals Limited (which is listed in ASX) and Gujarat NRE Mineral Resources Limited different companies? I am little bit confused.
21. What is the working/progress of GNMRL?
22. Repeated questions by shareholders on different dates & issues?
23. When Dividend for 2008-09 will be paid?
24. Clarification on bonus issue of B equity shares as per announcement by the Company in Sep'09
25. What is the meaning of ‘B’ shares?
26. What is the Status of DVR Shares or record date of DVR bonus 08-09 and when it will be credited?
27. Let us know about DVR shares announced by the company and is that also to be listed?
28. What is dvr bonus issue and dvr bonus share have any new isin number or not and when i receive bonus shares?
29. Please let me know about GNML AND GNMRL? When GNMRL will be listed?
1.
What is the size of the Gujarat NRE group? How big is Gujarat NRE ?
Ans:

Gujarat NRE Coke is a company with a net worth as on 31.03.2009 of Rs.1,162 crores and a turnover in excess of Rs.1500 crores. The market Capitalisation at BSE as on 30.6.2009 was approx Rs.2,158 crores.

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2.
What is the promoter's holding in the company?
Ans:

The promoters hold 45.56 % of the equity as on 31.03.2009.

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3.
What is the holding of FII, Mutual Funds & Financial Institutions/Banks in the company as on 31.03.2009?
Ans:

Foreign Financial Institutions have long identified the company as a mid-cap with a very bright prospect on the upside and have invested accordingly. As on 31.03.2009, the FII investment in the company is for 8,12,13,820 shares which translates to 17.21% of the equity. Mutual Funds & Financial Institutions/Banks hold 64,71,418 shares comprising 1.37% of the equity.

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4.
What is the holding of individuals in the company as on 31.03.2009?
Ans:

Individuals hold 12,01,49,784 shares as on 31.03.2009 which translates to 25.46% of the equity signifying the confidence enjoyed by the Company from indivudual investor.

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5.
What is LAM Coke?
Ans:

LAM Coke is Low Ash Metallurgical Coke (LAMC), which is charecterised by very high calorific value and low ash content among others. LAMC is produced by burning low ash coking coal in the absence of air. LAMC is a critical component for the manufacture of steel and is used in blast furnaces to aid the process of iron ore smelting into steel.

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6.
Which industry segment does the company belong to?
Ans:
In India typically LAMC is produced by integrated steel plant for their captive consumption. There are a few non captive producers, of which GNCL is the largest producer in the non captive sector in the country and is the only listed entity in the segment. Being one of its kind, it is generally included I the other manufacturing segment. Considering the mines the company owns in Australia and the basket of minerals it is prospecting, the company should be termed as a "Resource Entity" albeit, with the primary focus on LAMC.
 
7.
Where are the company's plants and mines located?
Ans:

Gujarat NRE Coke's operations are spread over :

In India

Coke Batteries :
Khambhalia, Gujarat 0.358 MMTPA
Bhachau, Gujarat 0.324 MMTPA
Dharwad, Karnataka (BNCL) 0.324 MMTPA
Total Capacity
1.006 MMTPA
Under Commissioning
Dharwad, Karnatakat 0.248 MMTPA

Coal Washery :
Khambhalia, Gujarat 0.750 MMTPA
Bhachau, Gujarat 0.750 MMTPA
Total Capacity
1.500 MMTPA

Steel Plant :
Bhachau, Gujarat 0.311 MMTPA
Total Capacity
0.311 MMTPA

Power Project :
Wind Mill 87.5 MW
Total Capacity
87.5 MW
Under Commissioning - Waste Heat
Dharwad, Karnataka 30 MW
Khambhalia, Gujarat 15 MW
Bhachau, Gujarat 15 MW
Total Capacity
60 MW

In Australia (through subsidiaries)

Coal Mines :
Resources of hard Coking Coal (NSW Australia)
560 MMT
NRE No1 Colliery, New South Wales, Australia 300 MMT
NRE Wongawilli Colliery, New South Wales, Australia 260 MMT

 

 

 

 

 

 

 

 

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8.
What is the composition of the Company's Board of Directors?
Ans:

The company is managed by a professional board of directors under the leadership of Mr Arun Kumar Jagatramka, Chairman and Managing Director. The other members of the board are:

Ms Mona Jagatramka, Director
Mr Subodh Kumar Agrawal, Director
Mr Chinubhai R Shah, Director
Dr Basudeb Sen, Director
Dr Mahendra Kumar Loyalka, Director
Mr S Murari, Director
Mr R P Jain, Executive Director

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9.

Is the company's performance linked to the Steel Cycle? If so, how does the company hedge itself?

Ans:
While the company's products are indeed linked to the steel cycle, the major customers are soda ash plants and foundries. Thus, while the company enjoys the fruits of an upswing in the steel cycle, it is naturally hedged against the downside. This unique feature ensures that the performance of the company does not swing to extremes.
10.
With increasing concerns about global warming, is the company's business threatened?
Ans:

Global warming is caused, to a very great extent by the burning of fossil fuels, like petroleum and thermal coal. Thermal coal is low quality and with high ash contents, primarily used in coal fired electricity plants.

On the other hand the company's product LAMC, because of its unique nature, is a cleaner option to the fossil fuels, and in fact actually helps in reduction of carbon emission because of its efficiency as compared to fossil fuels. Hence the global warming concerns is not a business threat.

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11.
Why has the company purchased ships?
Ans:

GNCL has not purchased any ships, what it has done is that it has taken ship on long term time charters. Gujarat NRE is dependent on imported coking coal for manufacturing LAMC, and going forward has to regularly ship raw materials from its own mines in Australia to the production units in India. As such, the move into vessel time charters is aimed at not only to ensure supply stability but also to hedge against the fluctuations in the freight market. Besides, the logistical benefits of in house vessels are obvious.

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12.
What are the future plans of the company?
Ans:

To become a global resources company.

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13.

When will the communication for final dividend payout @ 25% for the year 2007-08 and an issue of Bonus Shares at the rate of 2 Shares of every 5 Shares as per the record date? Please clarify.

Ans:

Please note that the payment of Final Dividend would be made after the same is approved by the members at the AGM convened to be held on 17th Sept,08. Further, please also note that the record date for bonus issue would be decided by the Board only after it is approved by the members at the AGM.

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14.

What is the rate of Final Dividend and when will members receive the same?

Ans:

Final dividend has been recommended at the rate of Rs.2.50 per share and its payment would be made within 30 days of its approval by the members at the AGM convened to be held on 17th September 2008.

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15.
What is the ratio of Bonus Issue and when is the Record Date for Bonus Issue?.
Ans:

Bonus issue has been recommended at the rate of 2 Shares for every 5 shares held. Its record date would be decided by the Board after the members approve this Bonus issue at the AGM convened to be held on 17th September 2008.

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16.
Record date of Right issue of DVR and the shares will be counted after bonus or pre bonus?
Ans:

Please note that presently postal ballot exercise has been undertaken for taking shareholders approval to issuance of DVR shares. This exercise would be over by middle of November. Thereafter, the Board would decide on its issue and fix the record date. Please also note that the proportion of issue of DVR share would be ascertained on post bonus capital.

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17.
What is the cutoff date for postal ballot to the entitled shareholders for DVR issue, i.e. the date that the company will decided which shareholders can get the postal ballot forms and thus participate in the postal ballot?
Ans:

Please note that 19th September, 2008 was taken as cut-off date for deciding the shareholders who would be entitled to receive postal ballot forms and the forms have already been despatched to such shareholders.

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18.
Transfer of all dividends to my bank account?
Ans:

You are requested to have the following details registered with your Depository Participant so that the data gets updated in the records of NSDL and you start receiving dividends directly in your bank account.

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19.
I have still not received the Annual Report for 2007/08?
Ans:

We had already sent the Annual Report for 2007-08 to all our shareholders sometime back. You can also get the Annual Report from our website site or by clicking the following link http://www.gujaratnre.com/annual.html.

We would request you to please have your address updated with your Depository Participant in case there is any recent change in your address.

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20.
Are Gujarat NRE Minerals Limited (which is listed in ASX) and Gujarat NRE Mineral Resources Limited different companies? I am little bit confused.
Ans:

Gujarat NRE Mineral Ltd is an Australian Company listed in Australian Stock Exchange and Gujarat NRE Mineral Resources Ltd is an unlisted Indian Company.

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21.
What is the working/progress of GNMRL?
Ans:

We would request you to kindly visit our website at www.gujaratnre.com and click at Gujarat NRE Mineral Resources Ltd (http://www.gujaratnre.com/GNMRL/index.html)  for the Annual Report & Accounts of the Company for the year 2007-08.

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22.
Repeated questions by shareholders on different dates & issues?
Ans:

Please appreciate that we have more than 1 lac shareholders and can’t respond to multiple emails from a single shareholder.  It would be appreciated if you send us a single email with your consolidated queries, since most of the information is part of public domain available through various notices and announcements made by the company.

23.
When Dividend for 2008-09 will be paid?
Ans:

Dividend for the year 2008-09 has been recommended by the Board at its meeting held on 27th June, 2009. This is subject to the approval of the shareholders at the AGM to be held on 19th September, 2009. The dividend would be paid after 19th September, 2009.

24.
Clarification on bonus issue of B equity shares as per announcement by the Company in Sep'09
Ans:

Board of Directors at its meeting to be held on 19th September, 2009 would consider and decide on the proposal for issue of “B” Equity Shares of Rs.10 each (Shares carrying lower voting rights) to the shareholders of the Company. The record date (i.e. date for identifying the shareholders who would be eligible for such bonus shares) would be fixed only after it is decided by the Board at its meeting to be held on 19th September, 2009.

25.
What is the meaning of ‘B’ shares?
Ans:

Please note that B Equity Shares of the Company are equity Shares with differential voting rights i.e. 100 B Equity Shares of the Company would carry 1 voting right as compared to 1 Equity Share carrying 1 voting right. Apart from this, "B" Equity Shares would be pari-passu in all respect with the existing equity shares of the Company.

26.
What is the Status of DVR Shares or record date of DVR bonus 08-09 and when it will be credited?
Ans:

Please note that the bonus issue of "B" Equity Shares (Equity Shares with Differential Voting rights) of the Company as recommended by the Board at its meeting held on 19.9.2009 and approved by the shareholders through postal ballot as per its results declared on 16th November, 2009 was subject to certain exemptions from Securities & Exchange Board of India to enable the company to list those shares. We are pleased to inform you that the Company has received the requisite exemptions and accordingly, the Board has fixed Friday, 7th May, 2010 as record date for the bonus issue of "B" Equity Shares.

27.
Let us know about DVR shares announced by the company and is that also to be listed?
Ans:

Please note that the bonus issue of 1 "B" Equity Share comprises of issue of equity shares with differential voting rights (lower voting rights to be specific). Apart from differential voting rights (i.e. 100 "B" Equity Shares would carry 1 voting right instead of 1 Equity Share carrying one voting right) all other rights of "B" Equity Shares are similar to the Equity Shares of the Company i.e. they would carry the same dividend rights etc. Presently a record date has been fixed by the Board of Directors on 7th May, 2010 for ascertaining the entitlement rights and after the record date these shares would be allotted and the procedure for its listing would be complied. These shares would be listed at Bombay Stock Exchange and National Stock Exchange and they would carry separate ISIN.

28.
What is dvr bonus issue and dvr bonus share have any new isin number or not and when i receive bonus shares?
Ans:

Please note that DVR shares are shares with differential voting rights. In the case of our Company, we are issuing B Equity Shares which are DVR shares with lower voting rights i.e. 100 B Equity Shares will carry 1 voting right as bonus shares to the equity shareholders of the company. These B Equity shares would carry new ISIN number and would be traded separately at Stock Exchanges. These B Equity Shares of the Company would be listed at Bombay Stock Exchange and National Stock Exchange of India Ltd once all the formalities are complied with.

29.
Please let me know about GNML AND GNMRL? When GNMRL will be listed?
Ans:

Please note that there are two difference companies, one in the name of Gujarat NRE Mineral Resources Ltd which is an Indian Company and one in the name of Gujarat NRE Coking Coal Ltd (earlier known as Gujarat NRE Minerals Ltd) which is an Australian Company. Please also note that the shares of the Australian Company i.e. Gujarat NRE Coking Coal Ltd are listed at Australian Stock Exchange and the Indian company i.e. Gujarat NRE Mineral Resources Ltd is unlisted company. It appears from your mail that you have acquired the shares of Gujarat NRE Mineral Resouces Ltd., the Indian Company.

With regard to your query on IPO of Gujarat NRE Mineral Resources Ltd., please note that we are actively considering listing of GNMRL soon given the all round appreciation in its asset valuations achieved. For regular updates, please visit our website www.gujaratnre.com/GNMRL/Index.html

In case you are holding shares in Gujarat NRE Mineral Resources Ltd., presently there is no lock in on these shares. However, the same shall be subject to the lock in requirements of SEBI Regulations once the Company goes for an IPO and lists its shares.

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