MANAGEMENT DISCUSSION & ANALYSIS REPORT
Your Directors present their 47th Annual Report together with the Audited FinancialStatements of the Company for the year ended 31st March 2018.
|Particulars ||31.03.2018 ||31.03.2017 |
|Revenue from Operations ||1994.46 ||1502.43 |
|Add: Other Income ||4.92 ||13.79 |
|Total Income ||1999.38 ||1516.22 |
|Profit before interest depreciation and tax ||115.77 ||67.75 |
|Less: Finance Cost ||40.88 ||10.57 |
|Less: Depreciation & amortisation expenses ||40.11 ||30.83 |
|Add: Exceptional Items ||2.44 ||- |
|Profit Before Tax ||37.22 ||26.35 |
|Less: Tax Expenses ||- ||- |
|Profit After Tax ||37.22 ||26.35 |
|Add : Net Comprehensive Income/(loss) ||0.24 ||2.08 |
|Total Comprehensive Income ||36.98 ||28.43 |
In view of the accumulated losses the Board of Directors are unable to recommenddividend on the Preference Share Capital and Equity Share Capital of the Company.
STATE OF COMPANY'S AFFAIRS Production
During the year under review the plants were in operation between 1st April '17 to11th January 18 and from 11th February 18 onwards. The shutdown of plants for31 days during January and February 18 was for Annual Turnaround Maintenanceundertaking repairs of essential equipments and maintenance activities to improve thereliability and energy efficiency levels for sustained production. Your Company produced100% neem coated Urea and achieved 658892 MTs during 2017-18 compared to 562670 MTs inthe previous year. During the year sale of Manufactured Urea was 662074 MTs and sale ofImported Urea was 79189 MTs.
Your Company has achieved the energy efficiency levels of 6.834 GCal/MT of Urea asagainst 6.664 GCal/MT. The plants were operated using mainly imported Naphtha and FurnaceOil.
Handling of Imported Urea:
Government of India allotted SPIC two coastal ports namely Karaikal and Tuticorin forhandling Imported Urea in the previous year. Your Company has handled 50800 MTs ofImported Urea during the financial year 2017-18.
Working Capital :
During the year under review Rupee denominated (unsecured) Masala Bonds as per RBIGuidelines were subscribed for an aggregate value of ' 128.66 crores carrying 9% interestp.a. by one of the Related Parties. This was pursuant to a Program Agreement dated 10November 2016. This facility helped achieve the targeted production.
Progress in conversion of ammonia plant from naphtha to gas:
Good progress has been made by Indian Oil Corporation authorized to lay the NaturalGas Pipeline from Ennore to Tuticorin in terms of engineering procurement and necessaryapprovals for laying the first stage of the gas pipeline from Ramnad to Tuticorin. YourCompany continues to be in the state of readiness to complete the process as and when gasconnectivity is established.
With the New Urea Policy 2015 revised target energy norm was set to become 6.5 Gcal/MTfrom 1st April 2018. To adhere to the policy various energy saving measures are beingdesigned engineered and implemented with Natural Gas and dual feedstock option.
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri NarendraModi in late March 2018 has accorded the following approval to the proposal of Departmentof Fertilizers:
a) The Target Energy Norms under New Urea Policy- 2015(NUP-2015) for 11 urea units tobe implemented w.e.f. 1st April 2018.
b) The extension of present energy norms with token penalties under the New UreaPolicy-2015 for a further period of two years for 14 urea manufacturing units which failedto achieve the Target Energy Norms.
c) Three Naphtha based urea units of which your Company is one are also allowed theexisting energy norms for another two years/till gas pipeline connectivity.
d) The target energy norms as per NUP-2015 will be continued for 5 years w.e.f. 1stApril 2020.
The extension of present energy norms for further period of 2 years will ensure easyavailability of urea to farmers throughout the country. It will also help to maximize theindigenous urea production and will lessen the import of urea.
Handling of Imported Naphtha Shipments
SPIC has signed a Hospitality Agreement with IOC for a period of two years for usingtheir Tank farm facility at Tuticorin Port premises for handling a part of SPIC's ImportedNaphtha shipments. This has facilitated SPIC for faster discharge of cargo and therebyminimizing the ship demurrage to a large extent.
SPIC PROJECTS STATUS AMMONIA PLANT DCS UPGRADATION:
Conversion of Ammonia plant Centum XL DCS to latest state of art technology Centum VPDCS and August PLC system to Pro safe PLC system has been completed. New DCS will alsoaccommodate NG usage as and when gas is made available.
AMMONIA PLANT ENERGY REDUCTION PROJECT
Detailed engineering is being carried by M/s. TECHNIMONT. Procurement is being carriedout for the project activities.
Erection of NG lines to reformer boiler & dual burner for auxiliary boiler northhas been completed.
LNG FACILITY: Supply of 200 MTPD LNG TO SPIC Plant.
Land Soil Testing has been completed and civil construction is being started.
UREA PLANT REACTOR
Replacement of Urea reactor with new reactor with improved material of construction andhigh efficiency trays is in progress. The new reactor ordered on M/s. STaMi CARBON isexpected to arrive at site by November 2018.
There are no deposits covered under Chapter V of the Companies Act 2013 (the Act)during the year 2017-18 the details of which are required to be furnished.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Company are prepared in accordance withInd AS and forms part of the Annual Report.
FINANCIAL STATEMENTS OF SUBSIDIARIES JOINT VENTURES AND ASSOCIATE COMPANIES
Pursuant to Section 129(3) of the Act read with Rule 5 of the Companies (Accounts)Rules 2014 the statement containing salient features of the financial statements of theCompany's subsidiaries associates and joint ventures (in Form AOC-1) is attached to theFinancial Statements. During the year under review M/s Greenam Energy Private Limitedbecame an Associate Company.
Tamilnadu Petroproducts Limited (TPL)
During the year under review revenue from operations was '1081.83 crores compared to'1007.58 crores in 201617. The Net profit for the year was '46.71 crores against '9.30crores in the previous year. Though TPL is facing stiff competition from imports varioussteps have been taken to improve the performance which have started showing results. Thesignificant improvement in profitability was on account of the improved productivity andrealizations from both LAB and Heavy Chemicals Division.
Tuticorin Alkali Chemicals And Fertilizers Limited (TFL)
The turn over continued to be low for the financial year 201718 at '138 crores due tolow CO2 internal generation from the newly installed CO2 recoveryunit and non availability of CO2 gas from SPIC. The problems for the low CO2recovery from the flue gas were identified and are being attended continuously and it isexpected that the production will be improved to the required level by end of the Q1 of2018-19.
The loss for the year hence is high at '45 crores. The water shortage has been broughtunder control by recovering water from the sea water pumped to the salt fields of thecompany which also improved the salt production. The Draft Rehabilitation Scheme earliersubmitted to BIFR is currently under the consideration of National Company Law Tribunal.As per their direction the issue has been referred to SEBI for exemptions for theconversion of the assistance received from the promoters into equity capital and an EGMwas held in this regard on 10th April 2018.
Greenam Energy Private Limited (GREENAM)
Greenam Energy Private Limited (Greenam) which is setting up a Floating Solar PowerProject of capacity 24.7 MW DC in the water reservoirs of the Company at Tuticorin hasbeen sanctioned a term loan '88 crores by M/s Indian Renewable Energy Development AgencyLimited (IREDA) for the Project. Infusion of Promoters' contribution is one of theconditions precedent for disbursement of loan by IREDA. An agreement will be entered intoby the Company with Greenam permitting them to use the Company's reservoir for theProject and for usage of certain portion of land for installing inverters transformersand Power evacuation systems. The Project activities are progressing and the commissioningis expected by May 2019.
SAFETY HEALTH AND ENVIRONMENT
Adequate care and attention have been bestowed on matters relating to safety healthand environment in the plant. Your Company is certified with the latest version of QMS -ISO 9001:2015 and EMS - ISO 14001:2015 Standards and has received two safety awards fromthe Government of Tamilnadu.
Your Company continues to conduct health camps as an ongoing activity to createawareness on critical health related matters viz. eye camps and cancer / diabetesawareness. Similarly Green Belt development is also a continuing activity with treeplanting given top most importance. Your company has installed online continuous emissionmonitoring for Urea Prilling tower and complied with the guidelines of CPCB.
HUMAN RESOURCE AND INDUSTRIAL RELATIONS
Your Company continues to provide a conducive work environment and opportunities fordevelopment of its employees. Industrial Relations in the Company have been cordial duringthe year under review. The number of employees as on 31st March 2018 is 647. In addition90 candidates were selected during the year in Campus Hiring program.
EXTRACT OF ANNUAL RETURN
Form MGT-9 as on 31st March 2018 as required under Section 92 of the Act is given inAnnexure I to this Report.
Mr. M S Shanmugam IAS TIDCO Nominee ceased to be a Director under Section 167 (1)(b) of the Companies Act 2013 with effect from 30th November 2017. Mr. T K Arun TIDCONominee resigned from the Board with effect from 16th November 2017 consequent to hisattaining superannuation.
At the Board Meeting held on 7th February 2018 with a view to broad base the Board itwas decided to induct professionals with expertise in the field of Fertilizers and havingvast experience in various disciplines of Corporate Management / Governance. Mr. T K Arunwas inducted as Non Executive / Non Independent Director and Mr. S Radhakrishnan wasinducted as an Independent Director of the Company based on the recommendation of theNomination and Remuneration Committee. The appointment of Mr. S Radhakrishnan is for aperiod of 5 years from 7th February 2018. Approval of the shareholders is being sought atthis Annual General Meeting for the appointment of Mr. T K Arun as Director liable toretire by rotation and Mr. S Radhakrishnan as Independent Director. The Board of Directorshad appointed Mr. S Visakan IAS Nominee of TIDCO as Additional Director of the Companyeffective 13 June 2018.
Mr. S R Ramakrishnan as Director shall retire by rotation at the ensuing AnnualGeneral Meeting and being eligible offers himself for re-election.
All the Independent Directors of the Company on the date of this Report have dulysubmitted the disclosures to the Board stating that they have fulfilled the requirementsset out in Section 149 (6) of the Act and the Listing Regulations so as to qualifythemselves to act as Independent Directors.
TRANSFER OF SHARES IN RESPECT OF UNCLAIMED DIVIDENDTOINVESTOREDUCATIONANDPROTECTIONFUND (IEPF) AUTHORITY
Section 124 (6) of the Companies Act 2013 read with The Investor Education andProtection fund (Awareness and Protection of Investor) Rules 2001 the Company after givingdue notice in writing to the shareholders whose shares remained unclaimed weretransferred to IEPF Authority. 166454 equity shares in respect of 1008 shareholders weretransferred and Corporate action taken in this regard has been informed through CDSL.
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS
Independent Directors are familiar with their roles responsibilities in the Companynature of the industry business model etc. through familiarisation programmes Documents/ Brochures Reports and Internal Policies of your Company provided to them. Presentationsare made at the Board / Committee Meetings on Company's Performance business strategyrisks involved and global business environment. Details of means of familiarization of thebusiness to Independent Directors are disclosed on the Company's website under thefollowing web link: http://spic.in/wp-content/uploads/policies/Familiarisation-Program-for-Independent Directors.pdf
KEY MANAGERIAL PERSONNEL
Mr. S R Ramakrishnan was re appointed as Whole-time Director for a period of 3 yearswith effect from 30th July 2017 and approval of shareholders was obtained forreappointment at the 46th Annual General Meeting held on 26th July 2017.
PARTICULARS OF REMUNERATION OF DIRECTORS KMP AND EMPLOYEES
The information required under section 197(12) of the Act read with the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 for the year ended 31stMarch 2018 and forming part of this Report is given in Annexure III to this Report.
In line with the policy on rotation of Auditors introduced in the Companies Act 2013(Act) the Shareholders at the 46th AgM held on 26th July 2017 approved the appointment ofMZSK & Associates (presently known as M/s. MSKA & Associates) CharteredAccountants Chennai as Statutory Auditors of the Company for a period of 5 years from201718 and to hold office until the conclusion of 51st AGM of the Company subject toratification at every AGM on such remuneration as may be decided by the Board ofDirectors. The Act has been amended effective 7th May 2018 deleting the provision relatingto ratification of appointment by shareholders at every subsequent AGMs. Hence seekingratification of shareholders would not arise.
Mr. P R Tantri Cost Accountant (M. No. 2403) was appointed as the Cost Auditor of theCompany for 2017-18 to carry out the audit of your Company's Cost Accounts and Records offertilizer business. The Cost Audit Report for the year ended 31st March 2017 was filedwithin the time stipulated under the Act. The Board of Directors at their meeting held on17th May 2018 on the recommendation of the Audit Committee have re-appointed Mr. P RTantri Cost Accountant as Cost Auditor for 2018-19 at a remuneration of '100000/- plusreimbursement of actual out-of-pocket expenses . As required under Section 148 of the Actand Rule 14 of the Companies (Audit & Auditors) Rules 2014 ratification by Membersis sought for the payment of remuneration to the Cost Auditor.
SECRETARIAL AUDIT REPORT
In terms of Section 204 of the Act and the Rules made thereunder your Company hasappointed Ms. B Chandra Practicing Company Secretary Chennai as Secretarial Auditor. TheSecretarial Audit Report as furnished is given as Annexure IV to this Report. There are noqualifications reservations or adverse remarks made by the Secretarial Auditor in theReport.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions contained in Section 134 (3) of the Act your Directors tothe best of their knowledge and belief and according to information and explanationsobtained from the management confirm that:
(a) in the preparation of the annual financial statements for the year ended March312018 the applicable IND AS had been followed along with proper explanation relating tomaterial departures;
(b) they have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company as at March 312018 and of the profit of theCompany for the year ended on that date;
(c) they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) they have laid down proper internal financial controls to be followed by theCompany and such controls are adequate and operating effectively;
(f) Proper systems have been devised to ensure compliance with the provisions of allapplicable laws and that such systems are adequate and operating effectively.
PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS
No loans or guarantees were given by the Company under Section 186 of the Act duringthe year under review. Your Company invested in 186000 equity shares of ' 10/- each ofOPG Power Generation Pvt Ltd @ ' 11.50 /- per share in order to qualify as captive userunder Group Captive Scheme of the Electricity Rules 2005. Further 2 equity shares of '10/- each at par were invested in M/s. Greenam Energy Private Limited which is setting upa 24.7 MW DC solar project at an estimated cost of ' 136 Crores.
RELATED PARTY TRANSACTIONS
The transactions entered into during the financial year with Related Parties as definedunder the Act were in the ordinary course of business and at arm's length basis. Detailsof contracts / arrangements with related parties as required under Section 188 (1) and 134(h) of the Act have been disclosed in Form AOC-2 and is attached as Annexure VI. Asrequired under Regulation 23 of SEBI (Listing Obligations & Disclosure Requirements)Regulations 2015 approval of the Members is being sought at this Annual General Meetingfor the transactions with Related Parties considered material in nature.
MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY
There were no material changes or commitments affecting the financial position of yourCompany that has occurred between the end of the financial year i.e. 31st March 2018 andthe date of this Report.
ENERGY CONSERVATION TECHNOLOGYABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Conservation of Energy
Your Company has an Energy Audit group which identifies potential areas forimprovement scans the environment for innovative and reliable solutions and considersproposal for implementation. Efforts are continuously being taken to reduce energyconsumption in the plants.
Some of the activities implemented during the year:
As energy conservation activity Primary Reformer and High Temperature Shift Ibed catalyst were completely renewed with new catalyst in Ammonia plant.
To avoid energy loss through the heat exchangers several exchangers re-tubed /replaced.
Boiler (North) Burners was replaced with Dual fired burners as part of NGconversion.
To reduce the energy loss and improve the performance Cold Air heater tubes inBoiler (North) & (South) were renewed. Additional Steam Generation Unit Air Preheatertubes were renewed.
Performance of all pumps and compressors were studied with our energy Auditgroup. Various energy saving technologies like provision of VFD speed reduction impellertrimming and smoothening the fluid passage with special coatings were implemented.
Steam system audit were carried out periodically and the faulty traps and leakshas been addressed immediately.
Technology Absorption - Nil Foreign Exchange Earnings and Outgo:
The foreign exchange earned in terms of actual inflows and the foreign exchange outgoin terms of actual outflows during the year:
|Particulars ||2017-18 ||2016-17 |
|Foreign Exchange earnings ||16.14 ||153.84 |
|Foreign Exchange expenditure ||138551.44 ||114864.79 |
INTERNAL FINANCIAL CONTROL & RISK MANAGEMENT SYSTEM
Your Company has adequate internal financial control systems to monitor businessprocesses financial reporting and compliance with applicable regulations. The systemswere reviewed by Internal Auditors and reported to the Audit Committee of the Board foridentification of deficiencies and necessary time bound actions were taken to improveefficiency at all levels. The Committee also reviews the internal auditors' report keyissues significant processes and accounting policies.
Risk Management is an integral part of the business process. The Company has a RiskManagement Committee and a Policy on Risk Management to identify and draw mitigation plansto manage risk. The Audit Committee of the Board reviews the risk management reportperiodically.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant and material orders passed by the regulators or courts ortribunals impacting the going concern status and Company's operations in future.
Corporate Governance Report 2017-18 along with the Certificate of the StatutoryAuditors M/s. MSKA & Associates Chartered Accountants confirming compliance toconditions of Corporate Governance as stipulated in the Listing Regulations forms part ofthis Report.
PERFORMANCE EVALUATION OF THE BOARD COMMITTEES AND DIRECTORS
Your Company has a structured framework for evaluation of the Individual DirectorsChairperson Board as a whole and its Committees. The Independent Directors at theirMeeting held on 7th February 2018 evaluated the performance of Non-Independent DirectorsBoard as a whole Chairperson and assessed the quality quantity and timeliness of flow ofinformation between the Company Management and the Board that is necessary for the Boardto effectively and reasonably perform their duties. The Board of Directors at theirMeeting held on 17th May 2018 evaluated the performance of all Directors and the Board asa whole and its Committees through circulation of questionnaires to assess theperformance on select parameters relating to roles responsibilities and obligations ofthe Board and functioning of the Committees. The evaluation criteria was based on theparticipation contribution and guidance offered and understanding of the areas which arerelevant to the Directors in their capacity as Members of the Board/ Committees.
NUMBER OF MEETINGS OF THE BOARD
During the year under review four Board Meetings were held on 18th May 2017 7thSeptember 2017 4th December 2017 and 7th February 2018 the details of which are providedin the Corporate Governance Report.
The details of the composition and meetings of the Audit Committee held are provided inthe Corporate Governance Report.
POLICY ON MATERIAL SUBSIDIARY
The Board had approved the Policy on Material Subsidiary as per the Listing Regulationsand is available on the Company's website under the web link: http://spic.in/wp-content/uploads/ policies/Determining-Material-Subsidiary- Policy.pdf.
NOMINATION AND REMUNERATION POLICY
Your Company has a Nomination and Remuneration Policy as required under Section 178(3)of the Act and the Listing Regulations. The details of the Policy are given in Annexure IIto this Report.
POLICY ON RELATED PARTY TRANSACTIONS
The Policy on Related Party Transaction as required under the Listing Regulations isavailable on the Company's website under the weblink:http://spic.in/wp-content/uploads/policies/ Policy-on-Related-Parties.pdf.
POLICY ON INSIDER TRADING
Your Company has a Code of Conduct for Prevention of Insider Trading with a view toregulate trading in securities by the Directors and designated employees of the Company inline with SEBI (Prohibition of Insider Trading) Regulations 2015.
POLICY ON SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION ANDREDRESSAL) ACT 2013. (POSH)
The Company has zero tolerance for sexual harassment at workplace. A policy is in placeand an Internal Complaints Committee has been constituted which is monitoring theprevention prohibition and redressal of sexual harassment at workplace in line with theprovisions of POSH and the Rules made there under. There were no complaints reported underthe POSH during the year under review.
Pursuant to the provisions of Section 177 of the Act and the Listing RegulationsWhistle Blower Policy for Directors and employees to report genuine concerns or grievanceshas been put in place and a Vigil Mechanism established the details of which areavailable on the website of the Company under weblink: http://spic.in/wp-content / uploads/ policies/Whistle- Blower-Policy-and-Vigil-Mechanism.pdf.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company has a CSR Policy in line with the provisions of the Act. As a responsiblecorporate citizen your Company in its endeavour to contribute for the sustaineddevelopment and growth of the Society has taken several initiatives. Your Company is notrequired to spend towards CSR activities in view of absence of profits computed underSection 198 of the Act. However the details of CSR initiatives undertaken voluntarily byyour Company are given in Annexure V to this Report.
MANAGEMENT DISCUSSION AND ANALYSIS
The year 2017-18 witnessed normal to excess monsoon all over the country which resultedin good crop coverage. The rainfall received in June-July was around 65-80% only and thedistribution of rainfall was not uniform which has resulted in crop failures in some areasin Karnataka Andhra Pradesh and Tamil Nadu.
During the fiscal year 2017-18 the indigenous production imports and sale of Ureawas marginally higher than that of the previous year. India produced a total of 24.024million ton of Urea which is 0.7% lesser than the production recorded during the previousyear. The import of Urea under Government of India account during the year stood at 5.975million ton which is 9% higher than the last year. The total supplies to the market stoodat 30.08 million ton which is more or less equal to the previous year. The sale of ureaduring the year recorded 30.311 million ton which is 2.4 % higher than that of theprevious year. (Source: Ministry of Chemicals and Fertilizers Government of India).
The capacity utilization of Urea has declined marginally from 103% to 102% during theyear under review. As a result the stocks available in the market had decreased to 1.026million tonnes which is 23.25% lesser than that of the previous year.
Comparison of All India Urea Production Import Supplies and Sales with previous year.
As per Government of India directives we have started packing Indigenous Neem CoatedUrea in 45 kg bags with effect from 16th March 2018.
DBT In Fertilizers:
The objective of Direct Benefit Transfer (DBT) by Govt. of India is an initiative toavoid diversion of subsidized fertilizers to non-agricultural purposes and also toidentify the end user which will enable smooth transfer of concession/benefits directly toconsumer as in cooking gas concessions.
The GOI has successfully completed the implementation of Pan-India rollout of Phase-1of DBT in Fertilizers on 1st March 2018. In Southern States their roll out happened from1st January 2018.
SPIC being LFS for Tamilnadu and Pondicherry States has successfully deployed 11524devices across the State along with 11 Fertilizer companies and State AgricultureDepartment officials.
Based on this all Fertilizer Companies will get the concession for subsidizedFertilizers when sold and recorded through the POS Devices. As a result the receipt ofconcession will happen as and when the sale of Fertilizer happen to the consumer. SinceFertilizer business being seasonal and closely associated with monsoon showers sale offertilizers and receipt of concession will not be uniform over the months which willnecessitate enhanced requirement of funds as working capital to sustain the operations.
Challenges in the new situation
Aadhar identification is the basis of sale process through Point of Sales (PoS). Inmost of the rural locations this process fails or delays due to network and power issues.Any sale which happens without involving POS devices will not be recorded to permit theconcession of a particular company. In this situation all fertilizer companies areemploying additional manpower at District and Taluk levels to monitor the physical stockand PoS device stock to ensure 100% sale happening through PoS Device.
We are also in the process of identifying resources to be deployed in rural locationsto follow up the stock positions and sales at the retail centers to ensure the generationof subsidy bills in time.
Tissue Culture Business:
The turnover for the financial year 2017-18 was '817 Lacs. The unit recorded thehighest number i.e. 36.59 lakh banana Plant sales during 2017-18 after an achievement of29.74 plants in 2005-06.
For the first time explored export opportunities and exported 42500 nos. hardenedGerbera plants to Nepal. Trial shipments of Ex-Agar Gerbera plants to Netherlands andDubai are on the cards.
New Business Development:
SPIC ABC has signed MOU with ICAR-CPCRI Kasargod Kerala for technology transfer andstarted production of the following business:
Tissue Culture Arecanut Production - Production of Arecanut plants throughTissue Culture Technology.
Vermi Compost Production from fallen coconut leaves.
Production of Vermi Compost from waste coir pith.
As mentioned in the last year's report the completion of gas pipeline infrastructureby IOC and steady supply of gas are important requirements for stable operation of yourCompany. The working capital pressures will continue to be a challenge till the GST refundfrom both the Center and the State is streamlined and the DBT scheme gets fully stabilizedin the market place.
Your Company is grateful for the co-operation and continued support extended by theDepartment of Fertilizers Ministry of Chemicals and Fertilizers Ministry of Petroleumand Natural Gas Ministry of Agriculture Ministry of Shipping Ministry of CorporateAffairs and other Departments of the Central Government the Government of TamilnaduGovernments of other States Tamilnadu Industrial Development Corporation LimitedTamilnadu Generation and Distribution Corporation Ltd Financial Institutions and Banks.The Directors appreciate the dedicated and sincere services rendered by all the employeesof your Company.
|For and on behalf of the Board of Directors |
| ||ASHWIN C MUTHIAH |
|Place : Chennai ||(DIN:00255679) |
|Date : 14 June 2018 ||Chairman |