On behalf of your Company’s
Board of Directors, I warmly welcome you all to the 18th
Annual General Meeting of your Company.
The Report of the Board of
Directors and the Audited Accounts for the year (15 months
period) ended 31st March, 2006 are with you for
sometime now. With your kind permission, I shall take them
as read.
During the current financial
year your company has achieved highest turnover of Rs. 872
Mio. as against Rs. 697 Mio. attained in the previous year.
However profit before interest and depreciation has declined
due to increased cost of raw material and fuel. The profit
before interest and depreciation for the year is Rs. 66 Mio.
as against Rs. 125 Mio. during the previous year.
During the year, the company
faced tough competition from the local suppliers in domestic
market. The increased cost of raw material and fuels further
squeezed the margins of the company. However, increased
exports that were possible with the help of your parent
organization Degussa AG, contributed positively.
Our economy is growing. Sales
tax, excise and direct taxes are being rationalized.
Inflation is by and large under control. Industrial
production is increasing. Additional capacities are being
added in the tyre industry. It is expected that it will lead
to an increase in the silica demand.
We will continue to follow
the highest quality standards in the world, and focus on
improvement of productivity, cost reduction and
efficiencies. These will continue to be reflected in our
production processes, financial management, energy
conservation, human resource development, and health, safety
and environment practices.
On behalf of the Board of
Directors and on my own behalf, I convey my sincere thanks
to the Bankers, Financial Institutions, Central/ State
Government agencies, our valued Customers, Shareholders and
to the Employees for their continued support and
co-operation.
Your Company is also thankful to
Degussa AG of Germany for providing technical and
application support as well as assistance in tapping new
export markets.
I thank you all for sparing your
valuable time to attend this meeting.
