Mr. P Madhusudan Chairman
99th Annual General Meeting on 15th September 2017
Ladies & Gentlemen
Very Good Morning!
On behalf of the Board of Directors of the Company it is a greathonour and privilege for me to extend a very warm welcome to all of you at the 99th AnnualGeneral Meeting of Your Company.
The Directors' Report and the Audited Statement of the Accounts for theyear 2016-17 and the Notice to the Shareholders have already been circulated and with yourpermission I take them as read.
1) Operating Performance of Your Company:
As you know this year also there was no mining activity in any of themines of OMDC owing to reasons of non-renewal of mining leases and non-availability ofother statutory clearances. This situation has resulted in loss of opportunity by theCompany to enhance and expand the business from its core activity. The management of yourCompany has been putting constant efforts and regularly meeting with State GovernmentsOfficials for renewal of mining leases. The legal issues are also being addressed withutmost care by engaging experienced and senior advocates/legal professionals to settlecases of the Company at the earliest.
As mines remained inoperative your company could not earn any revenuefrom sales in this year. By prudent cash planning taking into consideration theGovernment Guidelines your Company has earned an interest income of Rs 60.66/- croresduring the year on its Surplus funds parked in term deposits which is included in otherincome. Your Company earned profit before tax of Rs 12.36 crores as compared to Rs 19.38crores in the previous year. Profit after tax stood at Rs 5.86 crores as compared to Rs10.63 crores during the previous year.
2) Looking Ahead
Company's future plan could not take desired shape mainly because ofuncertainties with the renewal of mining leases of the company. The company is committedand also geared up to move forward for its stability growth and better future.
Your Company is looking for new mining avenues and accordingly drawn upplans to participate in auction of iron ore blocks which are to be placed for auction fromthe State Government of Orissa.
3) Dividend for the year 2016-17
We have been consistently rewarding our shareholders with dividend. Forthe year 2016-17 your Company has recommended a dividend of Rs 1.46 per equity share ofRs 1/ - each. The financial out go on this account shall be Rs 1.05 crores inclusive oftax on dividend.
4) Corporate Governance
OMDC believes that good Corporate Governance practices ensure ethicaland efficient conduct of the affairs of the Company. OMDC aims at not only its own growthbut also maximization of benefits to the shareholders employees customers governmentand also the general public at large. For this purpose the company is continuouslystriving to improve its level of overall efficiency through good corporate governancewhich envisages transparency professionalism and accountability in all its operationswhich are vital to achieve its Vision.
5) Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) has been an integral part of ourbusiness philosophy and the Company has been following it much before it became a norm forthe corporate sector in India. The Company has been allocating CSR budget as per theguidelines of DPE.
Your Company's CSR activities are focused in areas such as HealthEducation Employment generation Empowerment of women and Drinking Water etc.
On behalf of your Company's Board of Directors I wish to conveyearnest thanks to the valued Share holders for their continuous support and reposing truston us. This motivates us to excel in all our pursuits and constant endeavour to createvalue for the stakeholders.
I take this opportunity to thank the Government of India Ministry ofSteel Ministry of Mines Ministry of Environment and Forest Ministry of CorporateAffairs other Departments of Government of India Government of West Bengal and Odishaand all other Authorities and Regulatory bodies for their unstinted support and valuableguidance.
I thank you all once again and offer my best wishes for a very joyousfestive season ahead.
Thank you and Jai Hind.
Dated: 15th September 2017