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Panasonic Carbon India Company Ltd.

BSE: 508941 Sector: Engineering
NSE: PANCARBON ISIN Code: INE013E01017
BSE LIVE 09:39 | 20 Sep 585.00 3.95
(0.68%)
OPEN

585.00

HIGH

588.00

LOW

580.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 585.00
PREVIOUS CLOSE 581.05
VOLUME 422
52-Week high 610.00
52-Week low 420.00
P/E 20.80
Mkt Cap.(Rs cr) 281
Buy Price 585.00
Buy Qty 69.00
Sell Price 587.00
Sell Qty 100.00
OPEN 585.00
CLOSE 581.05
VOLUME 422
52-Week high 610.00
52-Week low 420.00
P/E 20.80
Mkt Cap.(Rs cr) 281
Buy Price 585.00
Buy Qty 69.00
Sell Price 587.00
Sell Qty 100.00

Panasonic Carbon India Company Ltd. (PANCARBON) - Chairman Speech

Company chairman speech

INDO MATSUSHITA CARBON COMPANY LIMITED ANNUAL REPORT 2003-2004 CHAIRMAN'S REPORT REGISTERED OFFICE: "POTTIPATI PLAZA" 77, NUNGAMBAKKAM HIGH ROAD, CHENNAI-600 034. Speech delivered by Shri P. Obul Reddy, Chairman at the Twentysecond Annual General Meeting of the Members of the Company held on 9th July, 2004. Ladies and Gentleman I take pleasure in welcoming each one of you to this Twentysecond Annual General Meeting of your Company. Company's performance in the year ended 31st March, 2004: The Twentysecond Annual Report which contains the Report of the Board of Directors and the Audited Statements of Account for the year ended 31st March, 2004 had been with you for some time and, with your permission, I shall take them as read. I am sure all of you also would have studied them. However, I would like to refer to some of the highlights in brief for your better understanding and positive reception. The Indian Dry Battery Industry registered a negative growth during the year under review, which had its direct effect on the volume of our domestic sales. By quantity, we could achieve only 88% of last year. However, Shareholders should be happy to note that your Company could penetrate into the International Market with aggressive and personal interaction with Customers and improve its market share by selling 720 Min. Pcs. as against 596 Min. Pcs. in the last year, an increase of about 21%. This higher export sales compensated to a greater extent drop in domestic sale volume. The total sales for the year was 2290 Mn. Pcs., which accounted for 96% as compared with last year. Value wise, since the sale prices were under pressure both in domestic (due to reduction in import duty) as well as International Market (due to severe competition), it had come down. Added to that, while in the domestic market we had to switch over to sale of one less priced grade of Carbon Rods in one variety as preferred by the customers, in the International market, the Indian Rupee steadily strengthened as against US Dollar by more than 5%. All these resulted in lesser sale value (inclusive of excise duty) of Rs.41.24 crores for the year as against Rs.47.62 crores in the last year, a reduction of Rs.6.38 crores. The pressure on sale price and consequent lower sale volume necessitated the Company introducing various restructuring measures including announcement of Voluntary Separation Scheme. The entire compensation of Rs.1.23 crores paid under the above Scheme have been fully charged off to the Personnel Expenses of the current year. However, the benefit of manpower rationalization will result in reduced manpower cost in the following years. In regard to the profitability (before taxation), it amounted to Rs.9.61 crores as against Rs.11.25 crores of last year. Considering the reduction in sale volume of more than Rupees Six crores and the writing off of the Voluntary Separation Scheme Compensation in full, the Shareholders should appreciate that, effectively, the percentage of profit has only improved. This was possible due to substantial cost cutting and cost control activities implemented by the Company on all areas of operation. Dividend: Considering the performance of the Company during the year under review, the Board of Directors are pleased to recommend a Dividend of 60%, same as in the last year, even in spite of reduction in profit, as an investor friendly measure. This dividend, on your approval, will be paid without deduction of tax and that too on 14th July, 2004 itself (i.e.) in the next five days, instead of waiting for the statutory period of thirty days permitted by the provisions of the Companies Act. Interse Transfer of Shares between Collaborators: During the year 12,48,000 Equity Shares representing 26% of the paid up Capital held by Matsushita Battery Industrial Company Limited, Japan (MBI) (Subsidiary Company) has been transferred to Matsushita Electric Industrial Company Limited , Japan (MEI) (Parent Company) after observing guidelines issued by the SEBI, and consequently MEI's shareholding has gone up from 12,00,000 Equity Shares - 25% to 24,48,000 equity shares representing 51% of the paid up capital of the Company. Outlook for the current year: In the first three months of the current year, the Company had sold 647 Min. Pcs. as against 670 Min. Pcs. for the same period in the last year. By value, the total sales, inclusive of excise duty amounted to Rs.11.50 crores as against Rs.12.38 crores for the same period in the last year. Based on the future-trend in the Battery Industry, your Company expects to register a reasonable growth in the current year especially in the domestic market. In regard to International market, due to severe competition among the players in the field, there had been a drop in Export sales. However, by continued production of high quality standard product and timely supply coupled with other all round efforts, your Company expects to increase its sale volume and achieve reasonable profitability. The Company will also be studying the Budget for the year 2004-2005 presented yesterday in depth and take suitable and needed action. Fund management: The Company continues to be a zero debt Company for the last many years and thus there are no interest costs. The Company continues to invest its surplus funds judiciously in Banks in Fixed Deposits as per the risk free policy adopted by the Company and the quantum of deposits are continuously growing. The financial status of the Company continues to be good. Directors: As per the provisions of Articles of Association of the Company, Mr. V.R. Gupte and Mr. Yoshikazu Yokoe retire by rotation at this Annual General Meeting. Being eligible, they offer themselves for re-appointment. The Directors recommend passing of the resolutions pertaining to the appointment of these two Directors placed before you. Acknowledgement: I take this opportunity to thank, the Collaborators, M/s. Matsushita Electric Industrial Co. Ltd., and M/s. Matsushita Battery Industrial Company Ltd., Japan for their continuous support and guidance, our valued Customers for their patronage, Suppliers for their quality supply and the Bankers for their support. I also thank my colleagues on the Board for their advice and assistance. I appreciate the employees' dedicated efforts and their maintaining harmonious relationship. Before I wind up, I, on my behalf as well as on behalf of my colleagues on the Board, thank the Shareholders for their confidence and encouragement and request your continuous support in future also. Source: ANNUAL GENERAL MEETING P. OBUL REDDY Dated : 9th July, 2004 CHAIRMAN