CORAL NEWSPRINTS LIMITED
Ladies & Gentlemen,
It gives me great pleasure in welcoming you all to the 3rd Annual General
Meeting of your Company. The Directors' Report and Audited Accounts for the
year ended 31st March, 1995 have been with you for some time and with your
permission, I take them as read.
1. PERFORMANCE :
Your Company had commenced Commercial Production since 22nd July, 1994 and
during this eight month period, gross revenue of Rs. 542.17 lacs has been
generated, resulting in a gross profit of Rs. 83.63 lacs, and profit after
tax of Rs. 28.89 lacs; leaving a balance of Rs. 12.02 lacs credited to the
Balance Sheet after provision for dividend. This results in Annualised
Earnings per Share of Rs. 2.50 and Annualised Cash Earnings per Share of
Rs. 3.50. Your Directors have recommended a dividend of 10% on pro rata
basis for the above period.
2. CURRENT YEAR
During the current period your company has achieved a turnover of Rs.
584.72 lacs as against the projected turnover of Rs. 578.14 lacs. The
Company is hopeful of achieving 800 lacs to 1000 lacs turn-over during the
rest of the period.
I would like to mention that the public issue of your Company was
oversubscribed 2.17 times and the current market rates of the shares are
quite encouraging, which indicates the confidence of the investors in your
3. GOVERNMENT POLICY
I would like to mention that consequent to the liberalisation and change in
fiscal policy of the country, the Government has come out with a new policy
for the import of paper.
The import duty on paper has been reduced from 65% to 40% and again 40% to
20% resulting in cheaper import of paper. Besides, import of newsprint
paper has been allowed under OGL category, causing influx in the import of
our item. Both these decisions of the Government have resulted in a set
back to the domestic industry, as imported paper is definitely cheaper and
more popular than that produced in the country. However despite this your
Company has done well, for which I must congratulate, everyone connected
with the Company.
4. EXPANSION PROGRAMME
The target of the Company for producing 12,600 TPA will be achieved in the
current year as the expansion programme is in full swing. The Plant
Machinery and Equipment required for expansion have already been installed,
and installation of 1280 KVA D.G. Sets, to meet out the power cuts, is
Here I would like to mention that your company is among the few industries
which have performed well during its teething period.
Before I close I would like to thank you, the shareholders, for your
support. I place on record my deep appreciation to all the employees of the
Company for their dedicated services. I would also like to take this
opportunity to thank our Customers, Suppliers, the Institutions, the Banks
and the Government Agencies for the support we have always received.
Ladies and Gentlemen, please accept my greetings to you, your families and
friends for the forthcoming festive season.
Mr. Chetendra Pratap Singh
Place : New Delhi
Date : 29th September, 1995