I am pleased to present you the 16th Annual Report of Krishana PhoschemLimited for the Financial Year ended 31st March 2020. The company has been working tomaximize the available potential to enhance the stakeholders' value. Despite manyconstraints during the year we have done reasonably well and reached many new milestones.
Our goal has been to achieve twin objectives of improving livelihood of farmers byproviding quality fertilizer at competitive prices and simultaneously through varioustools of improving efficiencies attain better performance for our shareholders. Asreported last year the company switched over to independent marketing and the currentyear was the full year where we could derive benefits of strengthening our marketing setup created in the group. During the year it was further fine-tuned with good trainingin-depth study of market through frequent interactions with farmers by organizing farmersmeet. We arranged 750 farmers' meets and also 10 dealer's meets during the year to getfeedback of the market to tune our production and quality to synchronize with expectationsof farmers. Our ANNADATA" brand has gained name and reach among users of fertilizerspecifically farmers and the products with this brand name get preference. We have alsobrought many variants of SSP for different types of crops as per feedback and happy toreport record SSP fertilizer variants under our brand name. Now time has come when we areready to enlarge the geographical coverage and bring larger number of farmers with in ourambit. To achieve this our group has increased whole sellers to 700 as at the end ofcurrent year compared to 500 last year. We have strong marketing team of 30 Executiveswith an average experience of over 15 years spread across in the country.
Now I come to specifics and give financial performance and other work done by yourcompany during the financial year ended 31st March 2020. The Turnover for theyear under review has reached Rs. 16294.73 lakhs recording a growth of more than 6.7% overthe last year and Profits before tax have also witnessed good rise and closed the yearwith Rs. 2078.26 lakhs showing an increase of more than 12.75% over the last year.
During 19-20 Krishana Phoschem Ltd. had aimed to build people capabilities. Theintegrated nutrient structure and agronomist teams continued to support the channel andfarmer activation initiatives. As a result the company introduced crop specific productsduring the year.
Safety Health and Environment continued to remain a high priority for Company.Variousmeasures were undertaken during the year focusing on health and building a safety cultureacross the organization. Company's social commitment remains strong and it continued toworking the areas of health and community development.
This was the transformative year for your company as the company got migrated fromNational Stock Exchange SME Platform to Main Board of National Stock Exchange on 21stAugust 2019 which has added lot of liquidity to our shares.
The company is in expansion mode though the plans got delayed due to variety of reasonsincluding delay in acquiring land from MP Govt. finalizing plants its suppliers etc. Asreported last year KPL has plans to set up a DAP and NPK Complex fertilizer plants andactions have already been initiated in this direction. With this view in mind KPL wantsto conserve resources including profit earned so as ultimately increase share holdersvalue. Despite this as done last year your directors have proposed for payment ofdividend @5% which translate to Rs 0.50 per share as a token of appreciation for thepatience and belief exhibited byshareholders.
At the end of the year brought miseries in from of COVID 19 pandemic which is bound toaffect adversely not only Indian Economy but world economy also. The country is expectedto witness its slowest or may be negative GDP growth in 20-21. However we see redefinedopportunities and confident that this challenge will also be met with success.
I would like to congratulate the Krishana Phoschem team for delivering sustainableresults undera challenging business environment. I would like to conclude with thankingour Board members for enlightening the leadership team with appropriate and timelyguidance. I would also like to thank all our stakeholders - customers vendorscreditorsbankers regulatory bodies and above all our valued shareholders for their enduring trustand support.Let us continue to work together for developing long term sustainable farmingsolutions and bringing prosperity to the farmers.
We will think bigger. We will think faster. But most important of all we will ThinkBetter - to stay ahead of competition and of our times.
Last but not least I put on record hard work put in by our strong and dedicated workforce led by the senior leadership team. We have also implemented the principles of GoodCorporate Governance for creation of greater value and stronger perception about theCompany.
With Warm Regards
(Mahendra Kumar Ostwal)