DIANA TEA COMPANY LIMITED
A very hearty welcome to you to the Eightyfifth Annual General Meeting of
your Company. The Register of Directors share holding under Section 307 of
the Companies Act, remains open for members. As the requisite quorum is
present, I declare this meeting open. The Reports and Accounts for your
Company have been with you for some time and with your permission, I shall
take them as read.
Tea made by your Company during the the year under review was 20.17 lakh
kgs. as against 20.50 lakh kgs. In the previous year. The crop was
slightly behind when compared to last year. The targeted crop of 21.50
lakh Kgs. could not be achieved because of representation of drought in
North India in the early part of the season.
Despite loss of crop turnover increased from Sale of tea for the year ended
31st March, 1996 to Rs. 938.78 lakh as against Rs. 762.87 lakhs in the
previous year which was increased by 23.06%, due to better unit
realization. Gross profit before depreciation and taxation went up by
76.20% to Rs. 260.58 lakh. Depreciation provision for the year was Rs.
27.50 lakh. Net profit is up by 81.79% for the year amounting to Rs.
220.08 lakhs as against Rs. 121.06 lakh in the previous year. After
transfer of Rs. 10.61 lakh from the previous year the net amount available
for appropriation is Rs. 230.69 lakhs.
Changes effect in the rate of depreciation reflected positively on
profitability and enhanced rate of interest burden have no doubt increased
the cost, but the profitability of the company continued to rise due to
better quality and unit price realisation. Inspite of rapid rise of other
input cost it is expected that there will be further improvement in the
results of your company during 1996-97 since unit realization is up by Rs.
5/6 when compared to last year.
C.T.C. Production upto and July 1996 is ahead by Rs. 18.1 million kgs. and
the Orthodox is ahead by 6.7 million kgs. The ahead in production C.T.C.
and Orthodox is mainly from North India.
Export of tea this year till August are lower by 55% against last year.
This situation has arisen because Russia, the main importer of Indian tea
has not entered into Market as yet. But it is anticipated that Russia will
re-enter into Market in near future and new buyers like USA, Japan, South
Africa etc. are trying to enter in Indian tea market. With the assumption
of exports remaining at par with last year and domestic consumption
increasing in the rapid pace from 3% to 5% per annum when compared to last
year. There is an anticipation of tea shortage by the end of the year
which would further boost up the average realization of tea prices.
We expect to achieve better working results if the market remains unchanged
as the Current levels of price realization is already showing.
Your Directors always believe in prudent rewards to its shareholders. I
am happy to report that the Board of Directors have recommend 20% Dividend
on Equity on prorata basis.
We have received the Public Issue fund during the later part of the year
1995-96 and so the programmed development work could not be done within the
specified period. But the work on programmed development are going on at
the Tea Estates.
I am thankful to the workers, staffs and officers of the Company for their
co-operation. I am thankful to Tea Board, Financial Institutions, Brokers,
Suppliers, Clients, Stock Exchanges and Government Bodies who are always
giving us a helping hand.
I am grateful to my other colleagues on the Board for their guidance and
wise council. My sincere thanks to our valued shareholders for the
confidence they reposed in the management of the Company.