Mr. P Madhusudan Chairman
Chairmans Speech at the 98th Annual General Meeting on 21ST September 2016
Ladies & Gentlemen
Very Good Morning!
On behalf of the Board of Directors of the Company it is a great honour and privilegefor me to extend a very warm welcome to all of you at the 98th Annual General Meeting ofYour Company.
The Directors Report and the Audited Statement of the Accounts for the year2015-16 and the Notice to the Shareholders have already been circulated and with yourpermission I take them as read.
1. Operating Performance of Your Company:
As you know this year also there was no mining activity in any of the mines of OMDCowing to reasons of non renewal of mining leases and non-availability of other statutoryclearances. This situation has resulted in loss of opportunity by the Company to enhanceand expand the business from its core activity. The management of your Company has beenputting constant efforts and regularly meeting with State Governments Officials forrenewal of mining leases. The legal issues are also being addressed with utmost care byengaging experienced and senior advocates/legal professionals to settle Legal casesinvolving the Company at the earliest.
As mines remained inoperative your company could not earn any revenue from sales inthis year. By prudent cash planning taking into consideration the Government Guidelinesyour Company has earned an interest income of Rs.68.04 crores during the year on itsSurplus funds parked in term deposits which is included in other income. Your Companyearned profit before tax of Rs. 1891.22 lacs as compared to Rs. 2583.69 lacs in theprevious year. Profit after tax stood atRs. 1063.16 lacs as compared to Rs. 1770.09 lacsduring the previous year.
Companys future plan could not take desired shape mainly because of uncertaintieswith the renewal of mining leases of the company. The company is committed and also gearedup to move forward for its stability growth and better future.
Your company has envisaged for installation of a 2 MTPA Iron ore Beneficiation Plantand a 2 MTPA Pelletisation Plant through Joint Venture on resumption of its miningoperation. For this necessary mining plan has been cleared by IBM.
Your Company is looking for new mining avenues and accordingly drawn up plans toparticipate in auction of iron ore blocks which are to be placed for auction from theState Government of Orisha.
Allocation of Brahmani Coal Block to OMDC
Brahmani Coal Block in Talcher coalfield of Dhenkanal District Odisha having estimatedgeological reserve of 58.90 Million Tonnes and area of 13.26 Sq. Km. allocated to OMDC on07.11.2013 by Ministry of Coal Govt. of India. OMDC has approached MoC for agreementregarding Coal Block. The agreement is likely to be cleared soon.
3) Dividend for the year 2015-16
We have been consistently rewarding our shareholders with dividend. For the year2015-16 your Company has recommended a dividend of Rs. 2.66 per equity share of Rs. 1/-each. The financial out go on this account shall be Rs. 191.94 lacs inclusive of tax ondividend.
4) Corporate Governance
OMDC believes that good Corporate Governance practices ensure ethical and efficientconduct of the affairs of the Company. OMDC aims at not only its own growth but alsomaximization of benefits to the shareholders employees customers government and alsothe general public at large. For this purpose the company is continuously striving toimprove its level of overall efficiency through good corporate governance which envisagestransparency professionalism and accountability in all its operations which are vital toachieve its Vision.
5) Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) has been an integral part of our businessphilosophy and the Company has been following it much before it became a norm for thecorporate sector in India. The Company has been allocating CSR budget as per theguidelines of DPE.
Your Companys CSR activities are focused in areas such as Health EducationEmployment generation Empowerment of women and Drinking Water etc.
On behalf of your Companys Board of Directors I wish to convey earnest thanks tothe valued Share holders for their continuous support and reposing trust on us. Thismotivates us to excel in all our pursuits and constant endeavour to create value for thestakeholders.
I take this opportunity to thank the Government of India Ministry of Steel Ministryof Mines Ministry of Environment and Forest Ministry of Corporate Affairs otherDepartments of Government of India Government of West Bengal and Odisha and all otherAuthorities and Regulatory bodies for their unstinted support and valuable guidance.
I thank you all once again and offer my best wishes for a very joyous festive seasonahead.
|Thank you and Jai Hind. || |
|Dated : 21st September 2016 ||(P. Madhusudan) |
|Place : Kolkata ||Chairman |