CHAIRMAN'S SPEECH AT THE 37TH ANNUAL GENERAL MEETING HELD ON 20.07.2011
Dear Shareholders,
Indeed it gives me immense pleasure in welcoming you all to the 38th ANNUAL GENERAL MEETING of your Company.
The NOTICE convening the Meeting, the Director’s Report and the Audited Accounts for the Financial Year ended March 31, 2011have been with you for sometime now, and with your kind permission, I shall take them as read.
ECONOMY
During the financial year 2010-2011, India’s GDP growth rate was 8.6% as against 8.0% in the previous year and projected GDP growth rate stands at 8.8%. The overall price level measured by the Wholesale Price Index for the Financial Year 2010-2011started with 11% headline inflation in April 2010 and at the end of March 2011 headline inflation stood at 9.02% lower than 10.36% in March 2010 and current inflation stands at above 9%. India witnessed a highest food inflation of 17.05% during the financial year.
India's Foreign Exchange Reserves had increased by around US$ 26.40 billion during the financial year 2010-11. The Foreign Exchange Reserve currently stands at US$ 315.71 billion when compared to 1st April 2011it was US$ 305.48 billion shows increase of US$ 10.23 billion.
During the year 2010-2011, bullish and bearish sentiment in the Domestic Capital Market which resulted Bombay Stock Exchange (BSE), touching a high of 21,108 points during November 2010 and low of 15,960 points during May 2010 and currently it is trading in between 18600 to 18800 points.
The Rupee had appreciated marginally by 0.18 % since April 2010 to March 2011 and in terms of value wise it’s about Rs.44.73 per US$ at the beginning of the year to about Rs.44.65 per US$ at the end of the year and as on date it is around Rs. 44.70per US$..
REVIEW OF OPERATIONS
The Dry cell battery industry as a whole registered a growth of 0.13% as against decrease of 7.73 % in the previous year. The sale of dry cell batteries in the industry had increased from 2259 million pieces to 2262 million pieces. Your company’s production had increased from 658 million to 668 million pieces and sales quantity decreased by 1.36%.
In terms of value, your company had registered a Turnover of Rs.350 Crores as against Rs.337 Crores in the previous year. The Company’s Profit before tax stood at Rs. 21.68 Crores during the fiscal under review as against Rs. 25.04 Cr in the previous year.
DIVIDEND
The Board recommends a Dividend of 200% for the year 2010-11. You will be happy to note that the Company, as a gesture of goodwill to the shareholders, will be paying the dividend if approved, earlier on 27th July, 2011itself, without waiting for the statutory period of 30 days.
CORPORATE GOVERNANCE
The basic philosophy of corporate governance in the Company is to achieve business excellence and enhance shareholder value, keeping in view the needs and interests of its shareholders. Your company is following a system of corporate governance which ensures transparency, fairness, independence, accountability, integrity and social responsibility and it has adopted all mandatory provisions as mentioned in the Listing Agreement signed with the Stock Exchanges.
FUTURE OUT LOOK
The recent Union Budget for the year 2011-2012 proposed partial withdrawal of stimulus packages by increasing Excise Duty from 4% to 5% on CFL will result increased cash outflow of your Company. The reduction of surcharge by 2.5% for Corporate Income Tax and Dividend Distribution Tax, continuing weighted deduction of 200% for in-house Research and Developmental activity carried out by the Company among other measures in order to boost the domestic industries are positive and welcome measures.
The Dry Battery Industry is witnessing intense competition among the players and overall Industry also in down trend, your company is undertaking various measures like productivity improvements, cost reduction activities, intensifying promotional activities and improving sales in the Rural Markets etc., introduction of new lighting products in the market i.e, Compact Florescent Lamp and Solar Lamp etc., with these measures your Company is hopeful to sustain the performance and thereby retain the market share in coming years.
ACKNOWLEDGEMENT
On behalf of the Board of Directors and on my behalf, I convey my sincere thanks to the Authorised Wholesalers, Stockists, Retailers, Our Foreign Partner, M/s. Panasonic Corporation, Japan, the Bankers, Shareholders and the Employees of the Company. I also thank you, all for being with us today and for your continued support and encouragement.
Batteries
