12 Document 27thAGMChairmansSpeech | Profit (Accounting) | Board Of Directors

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AARTI INDUSTRIES LIMITED 27th ANNUAL GENERAL MEETING CHAIRMAN SPEECH Dear Shareholders, I welcome you all to the 27th Annual General Meeting of your Company. The Annual Report for the year 2009-2010 has already been with you and, with your permission, I take the same as read. 1. FINANCIAL RESULTS During the year 2009-2010, the Company had made Total Sales Income of Rs. 1337 Crores as against Rs. 1535 Crores previous year. Sales have been lower due to reduction in the average input cost in Finan
  AARTI INDUSTRIES LIMITED   27 th ANNUAL GENERAL MEETING   CHAIRMAN SPEECH   Dear Shareholders,I welcome you all to the 27 th Annual General Meeting of your Company. TheAnnual Report for the year 2009-2010 has already been with you and, withyour permission, I take the same as read. 1. FINANCIAL RESULTS During the year 2009-2010, the Company had made Total Sales Income ofRs. 1337 Crores as against Rs. 1535 Crores previous year. Sales have beenlower due to reduction in the average input cost in Financial Year 2009-2010.Operating Profit before Interest, Depreciation and Tax has been over Rs.200Crores for the second consecutive year i.e. Rs. 204 Crores as compared toRs. 242 Crores for the previous year. Likewise the Profit before Tax has beenover Rs. 100 Crores i.e. Rs. 107.47 Crores as compared to Rs. 114.02 Croresfor the previous year. The Company posted Profit after Tax of Rs. 70.11Crores as against Rs. 84.47 Crores for the previous year.Similarly, the Company’s consolidated Gross Income was at Rs. 1349.59Crores as compared to Rs. 1550.02 Crores for the year 2008-09. TheConsolidated Profit After Tax & Deferred Tax was at Rs. 68.49 Crores asagainst Rs. 87.07 Crores for the previous year. Consolidated EPS for the year2009-10 was at Rs. 10.73 ps. as against Rs. 12.84 ps. for the year 2008-09.Further the share of profit from associates increased from Rs. 13.09 Crores toRs. 13.97 Crores in FY 2009-10.Your Company has been given Award for Direct Export of Self ManufacturedDye Intermediates during the year 2008-09 at the Annual General Meeting ofthe Gujarat Dyestuffs Manufacturers Association.The Company had, first time in India, five years back, pioneered andcommissioned an eco-friendly Buss Loop Hydrogenation Technology with theassistance from a Swiss Technology Provider. Over the years the Swisstechnology provider has upgraded the said technology from batch processingto continuous processing. The Company had taken-up this exercise to adoptthis upgraded technology in the first quarter of current fiscal. During the monthof June 2010, the Company has completed this process of up-gradation of itsHydrogenation Technology and has commissioned its upgraded facility. Theupgraded technology would progressively increase the production capabilityfrom around 700 tpm to around 1500 tpm over next 12 to 15 months for theexisting range of products and would also facilitate introduction of several newspecialty chemicals. Thiswill contribute to the growth of top and bottom linesof the Company in coming years.Company’s Net Sales Income for Q1 of 2010-11 was Rs.359 crs as againstRs. 274 crs in corresponding quarter previous year. Likewise, Earning beforeInterest, Depreciation and Tax for Q1 was Rs. 54 crs as against Rs. 56 crs in  corresponding quarter previous year. Profit After Tax for Q1 was Rs. 20.0 crsas against Rs. 23 crs in corresponding quarter previous year.Q1 operating profits have been impacted mainly due to the aforesaidexpansion/up-gradation activity.During the year under review, Your Company has successfully commissionedand commercialized indigenously developed facilities for manufacturing NitroToluenes and its various derivatives developed at our own In-house R&Dcentre. This has added a new stream of Basic & Speciality Productsexpanding Company’s products range. Further, more products are underdevelopment and will be commecialized in due course. While some of theproducts would serve as import substitutes, some have a good potential inInternational markets. Your Company would be pioneer to manufacture someof these products in India.With the merger of erstwhile Surfactant Specialities Ltd. into Aarti IndustriesLtd. last year, your Company has added a stream of Surfactants, PersonalCare and Oral care products sourced by the major FMCG Companies in India.To increase its capacities and range of products to cater to the growingdemand of the FMCG sector, your Company has commissioned new unit atPithampur, Madhya Pradesh for manufacturing these products by investingappx. Rs.10 crore . The unit has certain strategic and logistical benefits whichwould help strengthen Company’s share in the domestic markets.Company has placed an order for the 2 MW power plants for captiveconsumption and is targeting to commission the same in the last quarter ofthe current year. The new power plant will contribute 15-20% of Company’sannual power requirements and will entail 10% savings in power costs. 2. DIVERSIFICATION Your Company is planning to diversify into property and containers &packaging related businesses by investing part of its cash flows with a view toexploit available opportunities and maximize shareholders wealth. Yourapprovals for the same are being sought at the Extra Ordinary GeneralMeeting being held immediately after this meeting. 3. ACKNOWLEDGEMENT Finally, I sincerely thank all our stakeholders including customers, suppliersand bankers for their continued support. I sincerely thank all our IndependentDirectors for their constructive and active support to continuously improveperformance and efficiencies and strive for better corporate governance. Lastbut not the least, on behalf of all the shareholders and the Board of Directors,I convey our sincere appreciation to our employees at all levels for theirdedicated efforts which has helped the Company to sustain its profitability andgrowth year after year.Thank you.PLACE: VAPI .DATE: 16 TH SEPTEMBER, 2010. CHAIRMAN-------------------------------------------------------------------------------------------------------Note: This does not purport to be part of the proceedings of the AnnualGeneral Meeting. -------------------------------------------------------------------------------------------------------
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