With deep respect and fond remembrance to Shri Bhadrashyam Harshad Kothari whose principles and values continue to guide us.
I have great pleasure in welcoming you to the 28th Annual General Meeting of your Company.
The company’s Annual Report and Audited Accounts for the year ended 31st March 2017 have been with you for some time now and with your permission, I shall take them as read. The Company’s performance has been discussed at length in the Directors’ Report & in the Management Discussion and Analysis Report.
I am glad to inform the shareholders that the Board of Directors after careful consideration have declared an Interim dividend at 2.5% and have also recommended a final dividend at 2.5% subject to your approval at this meeting. The aggregate dividend for this year works out to 5% per equity share.
During the financial year 2016-17, your Company has invested around Rs.9 Crores to enhance the raw material supply from Chennai Petroleum Corporation Limited (CPCL) via dedicated pipelines. This investment will help your company to reduce the dependency on other raw material sources thus saving on logistic costs. This will also significantly reduce the hazards of LPG tanker being unloaded inside the plant.
The Board of Directors of your Company has approved for a captive power project of 2 Mega Watts, Co-Generation facility at the Manali Unit with an estimated investment of Rs.21.45 Crores. The project is expected to be completed by the middle of October 2017 and aims to make our factory self-sufficient for steam and power. The project will help to mitigate the inconsistent power availability and also reduce the Utility costs.
Your Company has performed well despite the tough market conditions of the PolyButene market. The domestic market has been turbulent and we have tough competition from our foreign competitors, however the management has been vigilant in its marketing strategies.
I am pleased to report that your company has achieved 5.53 million accident free man hours since inception, thanks to the stringent safety and security measures at the plant as well as the dedicated involvement of all our employees. I am also very glad to inform you that your company continues to maintain more than 70% of the market share in the total Poly Butene demand in India.
During the year, better control was exercised in managing the receivables and the utilization of our working capital limits.
I express my gratitude to all the shareholders for their continued co-operation. I thank the Directors for their support and valuable guidance. I also thank our government, bankers, auditors, employees, our customers, dealers, suppliers and other business associates for their support and cooperation. I look forward to your continued support to take the company towards a promising future.