CHAIRMAN'S SPEECH AT THE 37TH ANNUAL GENERAL MEETING HELD ON 23.07.2010
Dear Shareholders,
Indeed it gives me immense pleasure in welcoming you all to the 37th 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, 2010 have been with you for sometime now, and with your kind permission, I shall take them as read.
ECONOMY
During the financial year 2009-2010, India's GDP growth rate was 7.4% as against 6.7% in the previous year and India's projected GDP growth rate stands at above 8%. The Inflation (currently termed as WPI (wholesale Price Index) based Inflation data) witnessed large volatility in between 1.3 % and 9.9% and at the end of the financial year it was 9.9% and current inflation stands at 10.55%. India witnessed a highest food inflation of 18% during the financial year.
India's Foreign Exchange Reserves had increased by around US$ 23,936 million during the fiscal year 2009-10. The Foreign Exchange Reserve currently stands at US$ 2,78,267 million when compared to 1st April 2010 it was US$ 2,79,096 million shows decrease of US$ 829 million.
During the year 2009-2010, bullish and bearish sentiment in the Domestic Capital Market which resulted Bombay Stock Exchange (BSE), touching a high of 17711 points during March 2010 and low of 9901 points during April 2009 and currently it is trading in between 17800 to 18000 points.
The Rupee had appreciated over 9.77 % since April 2009 and in terms of value wise it rose sharply from about Rs.50.03per US$ at the beginning of the year to about Rs.45.14 per US$ at the end of the year and as on date it is around Rs. 47.10 per US$.
REVIEW OF OPERATIONS
The Dry cell battery industry as a whole registered a growth of 7.73% as against decrease of 5.8 % in the previous year. The sale of dry cell batteries in the industry had increased from 2097 million pieces to 2259 million pieces. Your company's production had increased from 653 million to 657 million pieces and sales quantity increased by 5%.
In terms of value, your company had registered a Turnover of Rs.337 Crores as against Rs.307 Crores in the previous year. When compared to previous year your company is able to achieve the Profit before Tax of Rs. 25.04 Crores for the year under review.
I am indeed very happy to announce that the Company has received "Best Management Award – Tada Factory" presented by the Chief Minister of Andhra Pradesh on the eve of May Day – 2010.
DIVIDEND
The Board recommends a Dividend of 200% for the year 2009-10. 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 30th July, 2010 itself, 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 2010-2011 proposed partial withdrawal of stimulus packages by increasing Excise Duty from 8% to 10%. The reduction of surcharge by 2.5% for Corporate Income Tax and Dividend Distribution Tax, Abolition of Special Additional Duty of 4% on imported products and 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 Union Budget also proposed to introduce New Direct Tax Code and Goods and Service Tax (GST) from 1st April 2011.
The Dry Battery Industry is witnessing intense competition among the players and your company is undertaking various measures like productivity improvements, introduction of new lighting products in the market (EPBR Products), cost reduction activities, intensifying promotional activities and improving sales in the Rural Markets etc., with these measures, your Company is hopeful of achieving good performance and thereby increasing the market share in the current financial year.
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
