Dear Share holders,
On behalf of the Board of Directors of Assam Petro-Chemicals Ltd. and on my personal behalf, I welcome you all to this 44th Annual General Meeting of the Company for the Financial Year 2014-15. The Notice of the Annual General Meeting, Directors’ Report and Audited Financial Statements for the financial year ending on 31st March, 2015 have been circulated amongst you and with your kind permission, I consider them as read.
Financial and Operational Performance:
During the year 2014-15, the turnover of the company was Rs. 92.63 Crore as compared to Rs. 107.58 Crore in the previous Financial Year. The turnover of the company declined by 13.90% from that of previous Financial Year due to decline of price of Methanol in the international market which has direct impact in the domestic market of Methanol and Formaldehyde. The company incurred loss of Rs. 6.48 Crore during the year 2014-15 against the profit of Rs. 9.38 Crore earned in the previous year. The loss incurred mainly because of increase of prices of domestic Natural Gas by the Central Government from 4.2 USD to 5.61USD with effective from 1st November, 2014 and low realization of product prices. The annual cost of Natural Gas was increased by 37% over the cost of the previous year. I sincerely believe that there will be market turnaround and the product prices will be increased in the 3rd and 4th quarter of the financial year 2015-16 and also the Natural Gas price will comedown.
The existing Methanol plant of the company has completed twenty seven years against its normal life of 15 years. This Plant requires frequent maintenance of its equipments for production. Routine shut down for maintenance and frequent power cut by Assam State Power Distribution Company Limited affected optimum utilization of the Methanol Plant during the Financial Year 2014-15. The Methanol and Formalin Plants of the company were operated at 97.48% and 94.78% installed capacity during the financial year.
The members of the company are aware that the company is presently implementing the integrated 500 TPD Methanol-200 TPD Acetic Acid Project at an estimated project cost of Rs. 1,028 Crore. The project capital will be arranged through by issue of fresh equity shares and loan from the commercial banks. The company obtained almost all the necessary clearances from various statutory and administrative authorities for setting up the project and some other allied activities.
The company awarded LEPCM contract for Methanol to Engineers India Limited and License, Engineering, Supply of proprietary items and supervision of Erection, Commissioning and Guarantee Test run of Acetic Acid project to Beijing Zehua Chemical Engineering Co. Ltd., China with overall project completion period of 39 months. Site grading and construction boundary wall at the project site at Namrup is in progress. The basic engineering works are also in progress for both the Methanol and Acetic Acid Plants.
Delisting of Equity Shares:
I express my hearty thanks to you all for passing the special resolution as per Regulation 8(1)(b) of the SEBI(Delisting of Equity Shares) Regulations, 2009 on 23rd April, 2015. Pursuant to your approval the company has submitted an application for in-principle approval on 3rd September, 2015 and matter is now under consideration of BSE Ltd. On receipt of in-principle approval for BSE, Assam Industrial Development Corporation Ltd. (AIDC) will provide you an exit opportunity through an offer to buy your shares at a price determined by Reverse Book Building Process. I appeal you all to participate in the Reverse Book Building Process.
Meanwhile, the company obtained ISIN for the shares of the company bearing no. INE277D01010. I appeal to all of you to dematerialize your shares of the company for convenience of holding of shares and transact the same. The trading of shares of the company is also expected to resume shortly.
Present Market Scenario:
You must be aware that the international economic situation has become very volatile for quite sometimes and Iran Nuclear Deal between Islamic Republic of Iran and five permanent members of United Nation Security Council alongwith Germany, devaluation of Chinese currency and Euro zone crisis has fueled on the same. Because of this volatility, there has been sluggish international demand for Crude oil and Petrochemicals for last few months. This has been making a huge impact on the price of Methanol in domestic market.
The company complied with the Corporate Governance requirements during the year 2014-15 but due to amendment of the Clause 49, the company couldn’t comply with all the provisions. The Company has complied with all the pending compliances of the listing agreement and the BSE is expected to revoke the suspension of trading of shares shortly.
I along with my fellow colleagues in the Board convey our sincere appreciation to all the members of APL family for their sincerity and devotion exhibited towards the organization for smooth running of the company.
The Board of your company gratefully acknowledge the continuous support received from the Government of Assam, the holding company Assam Industrial Development Corporation Ltd., Central Government’s various Ministries and Departments for successful running the company during the FY 2014-15.
The Directors of the Board also express sincere thanks towards each and every shareholders of the company for reposing confidence and support to the company’s Board and the management.
At last not the least I convey my sincere thanks and appreciations to each and every members of the Board of Directors of the company for their valuable contributions, support, guidance and co-operation throughout the year.
As I conclude, I sincerely thank each and every one of you, our stake holders for the confidence and trust reposed upon us. We remain committed to sustain and continuously improve our performance and live upto your expectations.
Place: 4th Floor,Orion Place,