CHAIRMAN’S SPEECH AT THE 35TH ANNUAL GENERAL MEETING
HELD ON 18.06.2008
Dear Shareholders,
Indeed it gives me immense pleasure in welcoming you all to the 35th 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, 2008 have been with you for sometime now, and with your kind permission, I shall take them as read.
ECONOMY
During the Year 2007-2008, Indian Economy had shown a progress with GDP registering a rate of 9.02 percent as against 9.6 percent in the previous year. India's Foreign Exchange Reserves has increased by around $109 billion during the just ended fiscal 2007-08 and as on June 6, 2008 the Foreign Exchange Reserve stands at a healthy level of US$ 315.66 billion, shows tremendous Growth in Indian Economy. During the year 2007-2008 the Inflation rate has been increased from 5.70 per cent to 6.68 per cent and current inflation rate stands at 8.75 per cent.
Foreign Investment flows, in part, reflect the bullish sentiment in the Domestic Capital Market through which the Bombay Stock Exchange (BSE), rallied from a low of 12455.37 during April 2007 to an all-time high of 20873.33 during January 2008.
The Rupee had depreciated sharply from about Rs.40.53 per US$ at the beginning of the year to about Rs.42.85 per US$ as on date.
REVIEW OF OPERATIONS
The Dry cell battery industry as a whole declined by 3% as against 8.6% in the previous year. The sale of dry cell batteries in the industry has decreased from 2175 million to 2104 million pieces. Your company’s production had increased from 649 million pieces to 668 million pieces. The sales quantity also increased by 2.8% from 679 million to 698 million pieces. In terms of value, your company had registered a Turnover of Rs.317 Crores as against Rs.339 Crores in the previous year. The Profit Before Tax for the year under review is higher at Rs.24.59 Cores as against Rs.9.29 Crores in the previous year. The Company has been able to maintain the profit at higher levels as compared to the previous year due to favorable material cost, better price realization and product mix.
Your Director’s recommend a Dividend of 200% for the year 2007-08. 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 24th June, 2008 itself, without waiting for the statutory period of 30 days.
Batteries
