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High Energy Batteries (India) Ltd.

BSE: 504176 Sector: Engineering
NSE: N.A. ISIN Code: INE783E01015
BSE LIVE 13:29 | 24 Nov 348.85 8.85
(2.60%)
OPEN

354.90

HIGH

354.90

LOW

326.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 354.90
PREVIOUS CLOSE 340.00
VOLUME 210
52-Week high 415.20
52-Week low 186.00
P/E 17.52
Mkt Cap.(Rs cr) 62
Buy Price 348.00
Buy Qty 20.00
Sell Price 348.85
Sell Qty 10.00
OPEN 354.90
CLOSE 340.00
VOLUME 210
52-Week high 415.20
52-Week low 186.00
P/E 17.52
Mkt Cap.(Rs cr) 62
Buy Price 348.00
Buy Qty 20.00
Sell Price 348.85
Sell Qty 10.00

High Energy Batteries (India) Ltd. (HIGHENERGYBAT) - Chairman Speech

Company chairman speech

HIGH ENERGY BATTERIES (INDIA) LIMITED ANNUAL REPORT 2006-2007 CHAIRMAN'S REPORT Dear Shareholders, I have great pleasure in welcoming you all to this 46th Annual General Meeting of the Company. I greatly appreciate the sustained support extended by all of you to the Company and it will be our earnest endeavour to be worthy of your trust and confidence as in the past. The Annual Report of the Company has been with you for some time and I would like to, with your permission, treat the same as read. At the outset, I would like to share with you my deep grief on the demise of our Director Sri S. Paramanandhan in Nov' 2006. He was a distinguished officer of the Indian Navy and retired as the Director General (Naval Design). He was awarded the prestigious 'Padmashri' in 1971 in recognition of his outstanding contribution to the development of Indian Navy. Sri. S. Paramanandhan joined our Board in 1985 as an Independent Director and continued till his demise. He was the Chairman of the Research & Development Committee of Directors. He rarely missed a board meeting and had offered many noteworthy suggestions for improving the quality of our products; for eliminating wastes and for improving the overall performance. His was an incisive mind and his observations were penetrating. His loss is hard to fill. INDIAN ECONOMY: Before I comment on the highlights of the operations of the company during the year under review, it is customary to take a look at the prevailing economic scenario of the country. Outlook for the Indian Economy is indeed bright and growth prospects are sound as never before. The Indian Economy, Asia's third largest had grown at an average of 8.6% in the past four years touching 9.4% in 2006-07. It is likely to grow by 9% during 07-08, given a benign monsoon. Potential downside risks are; rising crude oil prices, and supply disruption and shortfall in the quantum and spatial distribution of the south-west monsoon. Containing inflation and vitalizing the Farm and Power sectors will be the prime focus areas of the Government to achieve targeted levels of growth. The Budget for 2007-08 provides for an 8% increase in the allocation to the defence sector, to enable this Sector to carry out large-scale modernisation and upgradation. About US $10 billion was spent last year on import of defence equipment. Strategic partnerships between public sector and private sector (Public- Private-Partnership - PPP) are to be encouraged to achieve self reliance in the development and manufacture of armaments. The procurement policy currently pursued by the Government includes an 'Offset' programme for all alien defence procurement calculated to encourage development of domestic manufacturing sector. All these augur well for our company. PERFORMANCE REVIEW: As indicated in my Speech of last year, orders for our products could be received only during the second and third quarter of the year resulting in the company posting a lower turnover and profits for the year under review. The company successfully completed the development of Magnesium Cuprous Chloride Batteries and made initial supplies to the customer, during the year. It is a matter of great joy and pride that this technology has been successfully developed and demonstrated for the first time in India, by your company. Equally praiseworthy was the successful development and manufacture of Fuel Cells against order received from DRDO. These two new product lines should help the company secure additional orders in the coming years. OUTLOOK FOR THE CURRENT YEAR: Your company has started the current financial year with a lean order position. Nevertheless it is hoped that substantial orders will flow during the 2nd and 3rd quarter of the current financial year, enabling the company to post healthy growth in both the Topline and Bottomline. DIVERSIFICATION PROJECT: Since its inception, your company has been engaged mainly in the development and supply of products for defence applications. The outstanding contribution made by your company to the defence sector has been well recognised by the Government of India leading to several national awards. However procurement cycle of Indian defence is undergoing significant changes, lately, resulting in starvation of orders on and off. Your company has been working on a strategy to include in its product range, batteries for the commercial sector and has identified a project for manufacture of Lead-Acid Batteries for which tremendous opportunities exist. Details of this project can be seen in the Annual Report. To part finance this project, the company proposes to come out with a Rights Issue. Related Resolution is coming up for your approval at this meeting. I seek your support and participation in the Issue to enable the company to successfully diversify and insulate itself from the uncertainties associated with receipt of orders from the defence sector. DIRECTORS: During the year, LIC had withdrawn the nomination of Sri D. Krishnan as Director on our Board. Mr. Krishnan played a very active and constructive role during his tenure as Director. I express my gratitude to him. LIC has nominated Smt. D. Vijayalakshmi, Executive Director, in place of Mr. Krishnan. With her years of holding strategic management positions in LIC, I am sure we will be deeply benefited by her counsel and guidance. ACKNOWLEDGEMENT: I wish to express our Board's appreciation of the splendid work done by our Executives and Employees under the inspiring leadership of Sri. S. Sridharan, our Managing Director. I am grateful to my colleagues on the Board for their sagacious guidance and advice. I am beholden to the Financial Institutions, Defence Departments, Defence Public Sector Undertakings, DRDO and our Bankers viz. UCO Bank, Indian Bank and Canara Bank for their solid support. Above all my thanks are due to all of you for your sustained support to the company since inception. I now move for adoption of the Directors' Report, Auditors' Report and the Accounts and before doing so, I shall be glad to answer any queries that you may have. Thank you, Date: 26-07-2007 N. GOPALARATNAM Chairman Source: AGM Notice Dated : 27th August, 2007