BSE LiveFeb 20, 16:00
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As the Chairman & Managing Director of your Company, I feel extremely privileged and delighted in interacting withyou on the occasion of 70th Annual General Meeting and presenting Annual Report ofyour Company for the financial year 2017-18.
As )/ou know, India’s economy returned to growth path in financial year 2017-18 as the Gross Domestic Product growth was 6.7% annually with a strong 7.7% growth in the last quarter of the year. With this and the strong growth projected for the current year also, there will be growing opportunities in power generation, distribution and transmission equipment. Though the development in Steel and Power sectors remained sluggish, growth in the Petrochemical & Fertilizer sector hold hope for improving order booking for engineering business in the current year. The Tea division ofyour Company continues to grow from strength to strength through its special emphasis on Quality of its produce and is now recognized as one of the “Top Quality Tea Producer” in the industry.
Your Company has earned total revenue of Rs.389.13 crores as against Rs.468.78 crores in 2016-17, registering a decrease of 17% YOY. Profit before Tax (PBT) during the financial year 2017-18 stood at Rs.23.57 crores as compared to Rs.38.50 crores for the previous financial year. But since the previous year’s PBT was inclusive of one-time land acquisition compensation of Rs.18.40 crores from NHAI and Tea Board subsidy of Rs.2.14 crores, profit from actual business has increased in 2017-18 despite fall in sales of electrical and engineering products, tea crop loss and revenue loss due to Darjeeling Bandh. Profit after Tax (PAT) for the financial year 2017-18 stood at Rs.17.12 crores as compared to Rs.32.60 crores during the previous financial year.
AYCL is a dividend paying Company. I am pleased to inform that the Board of Director’s of your Company has recommended a Final Dividend of Re.0.04 per Equity Share of face value of Rs.2.00 each for the financial year ended 31st March, 2018.
Your Company always strives to attain highest level of Corporate Governance practices. Implementation of Integrity Pact, adoption of code of conduct and a well- defined Internal Control Framework add to the transparency of the Company’s business practices. AYCL is complying with the Government Guidelines and listing regulations on Corporate Governance. However filing up of vacant posts of Director which is one of the requirements of Corporate Governance, is under process at Government level. A report on Corporate Governance compliance has been made part of the Board’s Report. Your Company has been getting “Excellent” rating from Department of Public Enterprises(DPE) for complying with various norms of Corporate Governance. I am sure that the trend will continue.
Being a good corporate citizen, AYCL has always been on the forefront in extending its assistance for upliftment of the less privileged class of the society through development and improvement of the quality of life with our limited resources. AYCL has undertaken a number of CSR initiatives in the area of health, education, sanitation, water supply facilities, providing vocational training to children with disability etc.
I am pleased to inform that in North Indian Batting Order(Ranking), being a prime “Quality’ parameter, all Assam and Dooars Tea gardens of your Company are within Top 29 ranking during the financial year 2017-18 which emphasizes continuous improvement in the batting order/ ranking. All gardens of the group are now having FSSAI License to operate and manufacture tea. With better field practices and major emphasis on Crop & Quality, the Tea Division ofyour Company will continue maintaining its profitability in the near future.
I have no doubt, whatsoever, that we will make a whole-hearted effort to walk that extra mile to ensure that the Company continues to prosper in the years to come.
I would like to take this opportunity to gratefully acknowledge the valuable guidance, support and cooperation received from the Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India, as well as from other Ministries of the Central and State Governments, our valued customers, Company’s bankers, suppliers, staff- workers etc. At the same time, I wish to acknowledge the valuable guidance given by the Board of Directors of the Company without which it would have not been possible to lead the Company in definite direction. I look forward to continued support and commitment from all stakeholders of the Company to reach new heights and enhancing stakeholders’ value.
Chairman & Managing Director