Indeed it gives me immense pleasure in welcoming you all to the 40th 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, 2013have been with you for sometime now, and with your kind permission, I shall take them as read.
During the financial year 2012-2013, India’s GDP growth rate has slowed to 5% as against 6.5% in the previous year. The overall price level measured by the Wholesale Price Index on yearly basis for the Financial Year 2012-13started with 7.50% headline inflation in April 2012and at the end of March 2013 headline inflation stood at 5.96% and current inflation stands at 6.10%. India witnessed a highest primary food inflation of 11.4% during the financial year under review.
India's Foreign Exchange Reserves had decreased by around US$ 1.75 billion during the financial year 2012-13. The Foreign Exchange Reserve currently stands at US$ 275.35 billion when compared to 1st April 2013 it was US$ 292.65 billion shows decrease of US$ 17.30billion.
The Rupee had depreciated 7.56% during the year under review. During this month rupee went to all time low when it breached Rs. 69 to a dollar ($). It has depreciated more than 26% since April 2013. During the year 2012-2013, bullish and bearish sentiment in the Domestic Capital Market resulted Bombay Stock Exchange (BSE) touching a high of 20,203 points in the month of January 2013 and low of 15,748 points in the month of June 2012and currently it is trading in between 19500 to 20000 points.
REVIEW OF OPERATION
The Dry cell battery industry as a whole registered a growth of 0.31% as against 1% in the previous year. The sale of dry cell batteries in the industry had increased from 2287 million pieces to 2294 million pieces. Your company’s production decreased from 605 million to 577 million pieces and sales quantity also decreased from 670 million to 669 million pieces.
In terms of value, your company had registered a Turnover of Rs.340.82Crores as against Rs.340.67 Crores in the previous year. The Company’s Profit before tax stood at Rs. 6.22 Crs during the fiscal under review as against Rs. 11.72 Crs in the previous year.
FUTURE OUT LOOK
The Union Budget for the year 2013-2014 withdraws stimulus packages by increasing surcharge from 5% to 10% for Corporate Income Tax (Corporate Income over and above Rs. 10Crs) and Dividend Distribution Tax. Continuation of weighted deduction of 200% for in-house Research and Developmental activity carried out by the Company in order to boost the domestic industries is one of the positive and welcome measures announced in the budget.
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 improvement, cost reduction activities, intensifying promotional activities and improving sales in the Rural Markets, introduction of new models in lighting products etc., with these measures your Company is hopeful to sustain the performance and thereby retain the market share in coming years.