It gives me great pleasure to communicate with you through this columnand share the working status on various matters and vision of the Company.
The country has witnessed various changes in the industrial and socialsector in the recent past. These changes have an impact not only on Industry but also on ageneral public. The implementation of Goods and Services Tax (GST) w.e.f. 1stJuly 2017 in the year 2017-18 is one of the biggest reform which has rationalized theindirect taxation in India. The implementation of GST had many challenges in terms oftechnology lack of clarity and required up-gradation of the infrastructure of thegovernment and the users.
Your Company also faced lot of difficulty in the initial period forfiling returns and to avail refund of GST on exports. The system is now almost updated andis catering to most of the requirements. This tax structure has a wide impact on thebusiness and way of doing business.
The figures of tax collection from direct and indirect taxes clearlydepict the improvement in the economy and participation of more entities.
Next major steps taken by the Government is on ease of the doingbusiness without much bureaucratic hindrances and to promote "Make in India"concept. The huge investment and rationalization in the infrastructure sector with goodroads and e-way bill system for transportation of goods are going to help lot to theindustry by way of reduced time for movement of material. Simultaneously the digitalIndia project/schemes are going to ease the working of the industry and ultimatelyimproving the economy of the country. No doubt several reforms adopted for improvedagriculture produce and the development of related industry namely food processingchemicals and fertilizers should also improve the economy and the standard of living ofthe people. These steps and reforms have benefitted the country and as per the WorldBank's latest Doing Business Report 2018 India has leapt 30 ranks over its previous rankof 130.
On Company's front it is a matter of great satisfaction for themanagement that the steps and decision taken in the last two years to make the Companyprofitable have yielded results. The
Company divested its non-performing assets and non-profitablebusinesses. The Company has entered into One Time Settlement (OTS) with Central Bank ofIndia for the outstanding dues. The necessary adjustments in the books of account havebeen carried out after the payment of entire OTS amount in the accounts of the financialyear under review. Union Bank of India EXIM Bank and Allahabad Bank have accepted theproposal for prepayment of debts of the Company. The Company is in the process ofcompleting the required formalities in this regard. The management is thankful to theshareholders of the Company for the approval given by way of special resolution onFebruary 2 2018 through Postal Ballot to raise long term funds. The Company is weighingvarious options in this regard and will proceed with the advice of expertsandprofessionals.
As you are aware that your Company is mainly in the business ofmanufacturing Agro Specialty and Other Chemicals and 59% of the turnover consists ofexports. Therefore your Company is directly impacted with any development in industrialpolicy relating to Chemicals infrastructure and steps taken to boost exports.
The Company has transitioned to Indian Accounting Standards (Ind-AS)from 01 April 2017 with the transition date of 01 April 2016. Accordingly the financialstatements for the year under review have been prepared in accordance with the recognitionand measurement principles laid down in Ind-AS in place of erstwhile Indian GenerallyAccepted Accounting Principles (IGAAP). Accordingly figures for the previous year ended31 March 2017 have been restated to make them comparable.
As may be seen from the results Company's Indian Operations haveimproved in both domestic as well as export front. The Agro Chemicals Division remainedthe major contributor in generating revenue and profit in the Company. The working ofother Divisions of the Company have also improved during the year under review. TheCompany has decided to be more focused on manufacturing Agro Chemicals Specialty andother related chemicals which are the strength of the Company. The contract manufacturingbusiness of few products from Multinational Companies are continuing. You will appreciatethat the total income of the Company on Standalone basis has increased by 11% to Rs. 502crore from Rs. 452 crore with a profit before tax ofRs. 17.48 crore against loss of Rs.1.37 crore of last year as restated as per Ind AS.
The Consolidated Income of the Company was Rs. 507 crore against Rs.548 crore of the previous year. The consolidated results of the year under review arewithout the results ofSintesis Quimica S.A.I.C. Argentina which has been sold on 28thSeptember 2017.
Hence keeping in view the recent development action taken and a longterm vision of the Government we foresee a positive outlook with better working resultsfor the Company barring unforeseen circumstances.
I on behalf of the Board of Directors and Executive Management liketo thank the customers suppliers employees and other associates like banks for theirconsistent and resolute support.
I thank all my colleagues on the Board for their unanimous support andimmense encouragement.
I have special words to acknowledge the collective efforts of theentire 'PCCPL Team' working tirelessly to bring turnaround in the Company.
Last but not the least once again thank you all for keeping faith inthe Board and the Management of your Company.
|With best Wishes |
|MukeshD Patel |