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Varun Shipping Company Ltd.

BSE: 500465 Sector: Infrastructure
NSE: VARUNSHIP ISIN Code: INE702A01013
BSE 00:00 | 04 Mar Varun Shipping Company Ltd
NSE 05:30 | 01 Jan Varun Shipping Company Ltd
OPEN 4.55
PREVIOUS CLOSE 4.53
VOLUME 149436
52-Week high 4.74
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 68
Buy Price 4.53
Buy Qty 2179.00
Sell Price 4.64
Sell Qty 1500.00
OPEN 4.55
CLOSE 4.53
VOLUME 149436
52-Week high 4.74
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 68
Buy Price 4.53
Buy Qty 2179.00
Sell Price 4.64
Sell Qty 1500.00

Varun Shipping Company Ltd. (VARUNSHIP) - Chairman Speech

Company chairman speech

VARUN SHIPPING COMPANY LIMITED ANNUAL REPORT 2008-2009 CHAIRMAN'S REPORT Dear Shareholders, I take this opportunity to welcome you all on the occasion of this 38th Annual General Meeting of your Company. As you must have already observed from the Annual Report for the financial year ended 31st March, 2009, the Company's freight and charter hire income for the year ended 31st March, 2009 was Rs.9,146.59 million as compared to Rs.8,508.07 million for the previous financial year and the net profit after tax was Rs.1,228.05 million as compared to Rs.813.97 million excluding foreign exchange gain for the previous year. Your Company was able to achieve these results despite global financial crisis and the corresponding global economic meltdown since September, 2008. EPS (Basic) for the financial year ended 31st March, 2009 was Rs.8.19 compared to Rs.5.43 excluding foreign exchange gain for the previous financial year. The Board of Directors has in addition to the declaration and payment of three interim dividends aggregating to 35 per cent i.e. Rs.3.50 per equity share, recommended a final dividend of 15 per cent i.e. Rs.1.50 per equity share, making it a total dividend of 50 per cent i.e. Rs.5.00 per equity share for the financial year ended 31st March, 2009. Your Company has earned profits for the past 25 years and has an impressive track record of paying uninterrupted dividends to its shareholders over the same period. Your Company continues to maintain its focus on the hydrocarbon sector and has consolidated its position in this sector. Towards this end, your Company acquired two more newly built large and sophisticated Anchor Handling Towing Supply (AHTS) vessels, namely Subhadra and Suchandra (sister vessels) in January, 2009 and April, 2009 respectively. These vessels are built in Norway and will cater to the deep water offshore sector in Indian and international deepsea oil fields. The acquisition of these two vessels has further strengthened your Company's leadership in ownership of large AHTS vessels in Asia. With the sale of its 1984 built single hull product tanker in December, 2008, your Company has completely phased out all its single hull tankers, much before the mandatory date of phase out declared by International Maritime Organisation. Further, the Company also phased out its 1975 built and 1976 built LPG carriers namely Maharshi Vyas and Maharshi Vasishth in May, 2008 and June, 2009 respectively. The Company also sold two of its shallow water AHTS vessels namely Neel Kamal and Neel Akash in March, 2009 and has taken them back on bare boat charter cum demise basis. The Company currently owns/operates a well diversified fleet of 20 vessels comprising 10 LPG carriers, 3 double hull modern aframax crude oil tankers and 7 AHTS vessels. The diversified fleet serves as a hedge against downturn in any single sector. Your Company's fleet of LPG vessels is the largest in India in terms of both fleet size and cargo carrying capacity. Your Company transported approximately 72 per cent of all LPG cargoes imported into the country by public sector undertakings marketing LPG in India during the year ended 31st March, 2009. Your Company and its subsidiary are also actively involved in LPG transportation in Indonesian market. Your Company's three modern double hull Aframax crude oil tankers which are placed in the Sigma Tanker Pool continue to trade globally. Your Company owns five large, modern and powerful AHTS vessels with the highest bollard pull under Indian flag. It appears that the fiscal year 2009-10 will be a challenging year for shipping due to continuing global economic meltdown and sharp drop in the production, movement and price of crude oil and petroleum products. However, at the same time it is expected that the price of vessels is also likely to come down. Accordingly, your Company will evaluate and take advantage of emerging opportunities which may become available while making further acquisition of vessels. In October, 2008, your Company received the 'The Marine and Offshore Services Award' at the Seatrade Middle East and Indian Subcontinent Awards, 2008 ceremony held in Dubai. It is a matter of great pride that in February 2009, your Company received the 'Overall Best Managed Company in India - Small Cap' award in the Corporate Governance Poll, 2008 conducted by ASIAMONEY. I would like to take this opportunity on behalf of all the shareholders of the Company to congratulate Mr.Yudhishthir D. Khatau, Vice Chairman & Managing Director of your Company on his receiving the 'Entrepreneur of the Year' award at the Seatrade India Shipping Summit 2008 awards ceremony held in September, 2008 at Mumbai and 'Seatrade Young Person in Shipping 2009' award at the 21st Seatrade Awards Ceremony held in May, 2009 at London. I would also like to congratulate Mr Yudhishthir D. Khatau for being appointed President Designate of The Baltic and International Maritime Council (BIMCO) in June, 2009. In December, 2008, Mr.Dilip D. Khatau resigned as Chairman of the Company. The Board of Directors has placed on record its appreciation for the valuable leadership and guidance given by Mr.Dilip D. Khatau during his long tenure as Chairman of the Company. Mrs.Rina D. Khatau also resigned as Director of the Company in December, 2008. The Board has also placed on record its appreciation for the guidance and co-operation provided by Mrs.Rina D. Khatau during her tenure as Director of the Company. Since 1st December, 2008 the promoter of the Company is Yudhishthir D. Khatau Group which is controlled by Mr Yudhishthir D. Khatau. As Chairman & Managing Director with effect from 2nd December, 2008, I look forward to your continued trust and support for the growth and prosperity of the Company. I would like to take this opportunity on behalf of the shareholders of the Company to congratulate Mr Yudhishthir D. Khatau on his appointment as Vice Chairman & Managing Director with effect from 2nd December, 2008. I am confident that the Company will scale new heights with his professional and dynamic approach in steering the Company. On 27th January, 2009 Mr.Khurshed M. Thanawalla who is currently the Managing Director of Oerlikon Textile India Private Limited was appointed as a Director of the Company. I wish to place on record my sincere appreciation for the continued support and co-operation of all the government agencies, oil companies, banks and financial institutions. I also express my sincere gratitude to all our officers and staff, both on shore and at sea for their sustained dedication and hard work. On behalf of the Board of Directors and the management, I thank all the shareholders for their continued trust and confidence reposed in the Company and its management and look forward to the same in future also. Thank you. Arun Mehta Chairman & Managing Director Dated: 28th July, 2009 Place: Mumbai. Source: Website Dated : 28th September, 2009
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