You are here » Home » Companies » Company Overview » Gokul Refoils and Solvent Ltd

Gokul Refoils and Solvent Ltd.

BSE: 532980 Sector: Industrials
NSE: GOKUL ISIN Code: INE020J01029
BSE 00:00 | 25 Jun 15.03 -0.82
(-5.17%)
OPEN

15.90

HIGH

15.90

LOW

14.90

NSE 00:00 | 25 Jun 14.95 -0.80
(-5.08%)
OPEN

16.25

HIGH

16.25

LOW

14.60

OPEN 15.90
PREVIOUS CLOSE 15.85
VOLUME 4890
52-Week high 29.65
52-Week low 12.00
P/E 7.55
Mkt Cap.(Rs cr) 198
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.90
CLOSE 15.85
VOLUME 4890
52-Week high 29.65
52-Week low 12.00
P/E 7.55
Mkt Cap.(Rs cr) 198
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Gokul Refoils and Solvent Ltd. (GOKUL) - Chairman Speech

Company chairman speech

Dear Stakeholders

It gives me immense pleasure to present the 24th Annual Report and the performance ofthe Company.

The year 2016-17 has presented both challenges and opportunities for our Group. Mainchallenge was the inverse duty structure in exporting countries which made import ofrefined oil cheaper and resulted into under utilization of capacity of domesticrefineries. We have been able to remain competitive due to our efficient cost structureand having variety of other domestic oils

During this year the Group has achieved turnover of Rs. 353206.21 Lakhs as compared toRs. 341871.50 Lakhs of the previous year which shows increase of 3.32% as compared to theprevious year. Though the turnover increased the company's group net profit is decreasedto Rs. 615.11 lakhs from Rs. 1115.32 lakhs in previous year due to increase in materialcost unfavorable import duty

structure and market disparity.

The cost of administration and control of Company's Haldia Undertaking had beenincreasing especially due to lower capacity utilization unfavourable import dutystructure for crude oil and other operational difficulties. Hence Your Company had decidedto divest Haldia undertaking and obtained the approval of shareholders by SpecialResolution pursuant to Section 180(1)(a) of the Companies Act 2013 through Postal Ballotfor the the disposal of Haldia Undertaking and relevant agreements has already beenexecuted with the buyer and other post execution formalities are in process.

GDP outlook for 2017-18

The country's economic growth is facing challenges such as subdued manufacturing lowerexports of services and lower capital expenditure. However during FY18 cheap borrowingcosts and fading impact of demonetisation could increase the private consumption andthereby drive economic growth. The implementation of Goods and Services Tax (GST) isexpected to improve tax compliance and governance and might provide an impetus to theinvestments and growth in the country. Due to favourable indicators such as moderatelevels of inflation reduced Current Account Deficit (CAD) fiscal consolidation andtransitory impact of demonetisation the country is currently characterised as a stablemacroeconomic situation the Government expects India's GDP to expand at a growth ratebetween 6.75-7.5 per cent during 2017-18.

The Indian market presents a significant growth for oil players owing to growingpopulation income growth and low current per capita consumption. Your company ispositioned strongly to tap the opportunities. Despite the positive signs we remaincautious and vigilant as we are exposed to volatility in commodity as well as currencyfronts. We are guided by our stake holders the industry and the nation promotinginclusive growth.

As far as the year 2017-18 is concerned we recognize the upcoming challenges this yearand are geared to face them confidently. Our mission is to contantly improvise ourmethodology and systems so as to achieve efficiency in our operations through optimumutlisation of resources. During the year your company has successfully launched new brand"Vivaan" in premium category in refined cottonseed oil in Gujarat.

In the coming years you will see a good measure of strategic changes in Gokul aimed attrasforming the Company in to a more profitable and sustainable global enterprise. We willdeploy our resources in building intelectual capital improving processes and systems andin exploring markets that will further build and strenghten our future. The Group is nowfocusing more on branding activities strengthen distribution network and to start variouspacking sections across India to connect with customers in better manner to cater theincreasing demand after rollout of GST. The Group will launch new brand "Vivaan"in Kachi Ghani Mustard oil to extend its reach in premium segment of oils. Your companyhas also decided to enter in the business of Spices through its subsidiary under brand"Gokul" in Domestic market and under brand "Vivaan" in internationalmarket.

I would like to take this opportunity to thank our dedicated and motivated employeeswho are the greatest asset of the Company and with their passion hard work and commitmenttaken it to this level and also appreciate the guidance from the members of Board fromtime to time. We also thank our stakeholders clients vendors bankers investorsGovernments Government Agencies and partners in growth for reposing their confidence andfaith in the Company. It is your trust and commitment that inspires us to set highstandards of growth and performance and continue to deliver high returns to ourstakeholders. We look forward to continuing on the path of excellence and profitablegrowth into the coming years.

Sincerely

Yours

Balvantsinh Rajput

Chairman