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Punjab Communications Ltd.

BSE: 500346 Sector: Telecom
NSE: PUNJCOMMU ISIN Code: INE609A01010
BSE LIVE 15:10 | 17 Nov 40.25 1.25
(3.21%)
OPEN

40.70

HIGH

40.95

LOW

38.20

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 40.70
PREVIOUS CLOSE 39.00
VOLUME 3722
52-Week high 61.30
52-Week low 34.30
P/E
Mkt Cap.(Rs cr) 48
Buy Price 38.65
Buy Qty 51.00
Sell Price 40.25
Sell Qty 49.00
OPEN 40.70
CLOSE 39.00
VOLUME 3722
52-Week high 61.30
52-Week low 34.30
P/E
Mkt Cap.(Rs cr) 48
Buy Price 38.65
Buy Qty 51.00
Sell Price 40.25
Sell Qty 49.00

Punjab Communications Ltd. (PUNJCOMMU) - Chairman Speech

Company chairman speech

1995 PUNJAB COMMUNICATIONS LIMITED CHAIRMAN'S SPEECH Ladies & Gentlemen, I have immense pleasure in welcoming you to this 14th Annual General Meeting of Punjab Communications Limited. Many of you, consequent to our Public Issue have joined this esteemed Organisation for the first time thereby making it a widely held Company. I extend a special welcome to you all I sincerely thank you for the confidence reposed in the Management. The Directors' Report & the Audited Accounts for the year ending March 31, 1995, have already been circulated to you and, with your permission, I take them as read. Before I take up the agenda for this meeting, I would like to share with you some of my thoughts about your Company, the industry in particular and the General Economic scenario. NATION SURGING AHEAD The opening up of the Indian Economy and the consequent liberalised economic policies of the Govt. have resulted in rapid revamping of the Indian Economy. In an endeavour to globalise the operations, the Indian Economy has not only opened up to the outside world but has also provided me right infrastructure for the healthy competition, to give me best at me most competitive price to me Indian consumers. No doubt this intense competition has made a little dent in the indigenous industry, but this in the longer run would enable the Indian Industry to become more cost consious and competitive. In our endeavour to face the global challenges, we are adapting successfully to this changing environment and in this pursuit we are seeking financially attractive technical know-how from the leaders in the in the telecommunication field by entering into collaboration and joint venture. This process of globalisation would induce all of us here, to work as a team, respect the universal values concerning people competitiveness, uncompromising quality, research & technological advancement. FINANCIAL HIGHLIGHTS The major customers for company's products are Department of Telecommunications, Railways, Defence, State Police Organisations etc. Your Company saw a lot of competition due to a number of multinational entrants in this sector. Despite several odds, the company reported very encouraging financial results for the year 1994-45. The gross income of your company touched its all high of Rs. 12,793 lacs (approx.) thereby registering a growth of 13.80% over the previous year's gross income. The Profits After Tax of Rs. 2016.46 lacs show an incremental trend with a rise of 29.31% over me previous year. This performance would have been still better had there been no reduction in me selling price of your company's products. In view of me encouraging performance by your Company, me BOD of your Company have recommended a dividend of 40% for the year 1994-95. PUBLIC ISSUE In the Year 1994 your Company came out with its maiden public issue of 42,50,000 equity shares of Rs. 10/- each at a premium of Rs. 240/- per share aggregating Rs. 106.25 Crores which was a big hit among the members of the public, oversubscribed by around 35 times. Please accept my since gratitude for reposing so much faith in the management of the Company. All of us here would try our best to live up to your expectations and maintain the blue-chip status of your Company. I admit that the share prices have gone down after the Public Issue, but I assure you that this is due to the subdued market condition prevailing in our country and has nothing to do with the working of the Company. In fact, we as a team are trying our level best to improve the working of the Company for which we have already initiated some drastic steps so that we remain a Company with strong fundamentals. EXPORTS With a view to earning precious foreign exchange, your Company has embaked upon an agressive exports strategy. Hitherto, exports have been an incremental activity of the Marketing Deptt., but keeping in view the strength of your company's products and the liberal attitude of the Govt., exports have been initiated by participating in the international telecom exhibitions/trade fairs in the target countries. This approach is supplemented by advertising extensively in the overseas trade journals. So far, your company has participated in trade fairs held at Indonesia, Thailand, China & now in Uzbekistan generating a promising response. For instance your company is favourably placed in me tender for Transmux worm Rs. 85.00 lacs (approx.) as a result of Indonesian exhibition. We are targeting the Chinese and Uzbek markets for our RAX (Rural Automatic Exchanges) as the Rural Network is not well developed in these countries, & also TMUX. We have also executed an order in Nepal and we expect some more orders to flow-in, in the near future. We are also placed quite favourably in me tender for PCM MUX Equipment in Bangladesh, which we are likely to get. It is our endeavour to participate in the big tenders in other countries in me region. Although this is just a beginning, it is a promising step in the desired direction which would definitely reap good results in the years to come. Your Company has fixed a target to export Rs. 10.00 Crores (approx.) worm of its products in line with its export strategy. RESEARCH & DEVELOPMENT Research & Development plays a key role in the growth of the Company through innovations, competitive technology and introduction of new products. Keeping the above in view our R & D Cell is working on State-of-the-Art products including Digital Loop Carriers, Optimux Products, Versatile Mux HDSL & Digital Pair Gain Products. The Radio Division of PCL has completed indigenous development of 2 GHz HMCs. It has also designed a low cost UHF System using state of the art surface mounted technologies & field programmable gate arrays. Department of Telecommunications has desired that VSATs installed at remote locations shall operate from 48V battery supply due to unreliable AC mains. The power supplies for the VSAT Systems have been developed and integrated. Development work on futuristic projects like 13 GHz 34 Mbit, 18 GHz 8 Mbit etc. has also been planned. NEW PRODUCTS The Company is in the process of expanding its activities by adding new product lines to its existing range. The products being introduced are : Optical Fibre Line Terminating Equipment (OLTE), Very Small Aperture Terminals (VSAT), 140 MBIT Digital Radio Equipment, Digital Rural Communication System (DRC), Versatile Ultra High Frequency Digital Radio Equipment (VUHF), Higher Order Mux (HOM), Frame Relay Technology, Video Synthesizer, Multiband Jig Synthesizer, Cordless Telephone Systems, Satellite Modems, FRP Antennas, Power Plants, Digital Power Gain Systems, DLC Systems, Synchronous Digital Hierarchy Systems etc. Your Company is diversifying into products having ready-made demand. The existing infrastructural facilities and the inherent strengths of your company give them an edge for any competition that may emerge as a result of me opening of telecom industry to the private sector. NEW ALLIANCES/OPERATIONAL AREAS In view of the dynamism in the Telecom Industry & keeping into consideration the burgeoning Indian Telecommunications market, your Company has entered into two prestigious alliances with foreign companies. A Memorandum of Understanding has been signed with Reliance Comm Tec Corporation of United States by your Company for me formation of a Joint Venture to produce a broad range of telecom equipments including rectifiers, converters, DC Power Systems, Main distribution frames, protection connection distribution terminals and other outside plant products and digital transmission equipment and test systems. This project would aim to procure a major share of business from DOT (Govt. of India) and the Private Basic services operators to transport 45 million telephone lines from exchanges to the subscribers premises. With this tie-up your Company will have a technological edge over other competitors as me prevalent technology for these products is not as advanced and tends to affect the call connection rate adversely. Your Company has also entered into a collaboration agreement with ECI Telecom Limited, Israel for the manufacture of its SYNCOM range of SYNCHRONOUS' DIGITAL HIERARCHY (SDH) products in India. The agreement envisages transfer of technology at the component level. SDH is the upcoming technology used with optical fibre and other wide band transmission media for providing a large number of speech channels using equipment that conforms to global standards for the first time. Furthermore, it promises the opportunity to reap enormous benefits in terms of quality, efficiency, flexibility, reliability and manageability. It would not be out of place to mention that ECI Telecom is one of me largest telecom manufacturers in Israel and a pioneer in Add Drop Multiplexers in me SDH range, with a large number of installations in other countries. This prestigious tender, floated by DOT for SDH technology has been recently won by our Company by beating 28 parties, including 15 Multinational Companies boasting of big names like Alcatel, Ericsson, Marconi, Nokia etc. I must share with you some more developments that have taken place at our end. We have won yet another prestigious order for over Rs. 20 Crores from DOT for manufacturing CDOT MAX-L Exchanges. Your Company has also won an International Tender for the Information Systems coverage of the entire WILL's Cricket World Cup to be held next year in three countries namely India, Pakistan & Srilanka. This will launch your company at the global level as this event is expected to be watched by billions of viewers all over the world. Taking advantage of the situation, we are negotiating with some large computer companies in USA to do their manufacturing in India. We have also signed an agreement, in principle, with a foreign Company for the manufacture of another promising product which would enable one telephone line to do me work of two telephones without actually adding a new line. Apart from diversification of existing products as above, your company is in the process of diversifying the markets also. This is being done with a view to tapping alternative markets to build-up a new and vast horizon of customers for our products. We are approaching in a big way, the major customers for our range of products viz. Railways, MTNL, State Electricity Boards, ONGC, VSNL etc. All in all such diversification in the products as well as the markets would take some time to fructify completely but by next year it is expected to bear many fruits. QUALITY PCL is committed to intergrating "Total quality" in all its activities. PCL is, apart from ITI, the first company to have been allowed Approved Inspection Status (AIS) from the DOT for four of its products under which PCL's QA Staff is authorised to clear the equipment on behalf of the DOT QA staff with only sample check being carried out by DOT. In 1994, your Company has also acquired ISO 9002 certification & it is the first State Public Sector Undertaking to do so. It is our endeavour to achieve the highest attainable standards of product quality through motivated workforce who understand our values. Apart from improving the quality we are laying enormous emphasis on reducing the costs. To begin with we have already been able to cut down the procurement cost of indigenous as well as imported material by 10% - 15%, not counting the reduction in import duties. ACKNOWLEDGEMENT I would like to express my sincere thanks and gratitude for the continuous support received by the Company from the Government of Punjab, Punjab State Electronics Development and Production Corporation Limited, IFCI, PSIDC, PFC, SBI, Syndicate Bank and SBOP. I would also like to place on record the Company's acknowledgement for the role played by the Govt. of India, DOE in widening its product mix and giving necessary support and assistance to increase its infrastructure. I am grateful to our esteemed customers who have not only relied on our products but have placed repeat orders to us as a proof of their satisfaction with goods and services already supplied to them. I would also place on record my sincere gratitude to the shareholders of the company, who have reposed their confidence and trust in the Management of the Company. I now move the Directors' Report and me Audited Balance Sheet and Profit & Loss Account for the year 1994-95 to be approved and adopted. (S.K. TUTEJA) CHAIRMAN PLACE : S.A.S. NAGAR DATE : 30.09.1995