more and more countries, especially in sub-Saharan Africa are coming forward to use DDT as alternative mechanisms have not delivered the desired results. However, the fact remains that developed nations are not sparing any tool to tarnish this "weapon of mass survival" and initiate a phase out plan though no viable, cost effective alternatives are in sight.
In line with the above, your company, with the support of the Government, has initiated a study on Development of Chemical Alternatives to DDT and has awarded the work to Institute of Chemical Technology (ICT)(formerly UDCT). Mumbai. Our team of scientists are working in close association with ICT and the project is expected to take three years to reach a logical conclusion.
During the year, your company was associated with the National Implementation Programme of Stockholm Convention, which was carried out to the utmost satisfaction of UNIDO and it is a matter of great pride that UNIDO is considering us to undertake other projects as well.
Your company bagged orders of DDT from Eriteria, Zimbabwe, South Africa, Mozambique and Gambia in 2010-11 and is aiming to increase the number of countries in the year 2011-12. It is satisfying to report that even UNDP procured DDT during 2010-11 to supply to Malaria infested Zimbabwe.
With respect to crop protection sector, we are extremely euphoric that the nation is putting more and more thrust on improving the food production. The world at large and India in particular are short of food. Our GDP growth has been to the tune of 8-9% for last few years, which means our trillion dollar GDP will double every eight years resulting in increased food consumption. The increasing population also is likely to put pressure on food requirements and there is no option for the nation but to give more thrust on food production which can happen only by concentrating on quality inputs of seeds, fertilizers, pesticides, etc.
The year 2010-11 saw HIL surpassing all previous records with respect to turnover and it also saw us achieving highest production in respect of certain products like Endosulfan, Monocrotophos, etc. .
Your company achieved a turnover of Rs.271.04 crores compared to Rs.243.88 crores during previous year. The company posted a PBT of Rs.3.33 crores. The accumulated losses came down to Rs.5.91 crores and the net worth of the company increased to Rs.85.13 crores.
Though the event happened after closure of the financial year 2010-11, I feel it prudent to report that the production of Endosulfan, which was our highest selling crop protection product, has been temporarily suspended by the Hon'ble Supreme Court of India. The Industry Association is actively pursuing the case, but the fact remains that the production is suspended from May,2011 onwards which is likely to have an impact on the turnover, as Endosulfan constituted about Rs.47 crores out of our gross turnover of Rs.271.04 crores and also used to contribute to the profitability. The Management is trying its best to overcome by giving a renewed thrust on other products.
The performance of the company, as per self-evaluation, entitles for a MOU rating of 'Very Good'.
It is also a great pride for us that HIL was awarded the Turnaroud Trophy by BRPSE.
During the financial year, the company commissioned a new crop protection product 'Acephate' at our Rasayani Unit by retrofitting the Malathion plant. Other diversification projects reported last year are also at various stages of implementation.
The philosophy of your company in relation to Corporate Governance is to fully conform to laws, regulations, guidelines and to promote ethical conduct throughout the organization with the primary objective of enhancing shareholders value. The company is committed to conforming to the highest standards of Corporate Governance in the country. Report on Corporate Governance has been brought separately in the Directors Report.
The industrial relations in the company remained cordial during the year. Cost cutting measures, reduction and rationalization of manpower efforts are continuing. Your company successfully signed the Wage Settlement for 10 years (2007-2017) with the Employees' Unions of various Units and this has been implemented. The revision of scales of pay of officers is pending approval of the Govt.
Your company continued its efforts in corporate social responsibility initiatives to provide education to the under-privileged, drinking water, infrastructure development, etc.
I also take this opportunity to express my sincere thanks and gratitude to my colleagues on the Board of Directors for their valuable guidance and advice in the management of the company.
I am also thankful for the whole-hearted support received from Ministry of Chemicals & Fertilizers, Ministry of Health & Family Welfare, Cost Accounts Branch, Ministry of Finance, Company's Bankers, Auditors and all the shareholders and look forward for their continued support. My sincere thanks to the employees of HIL at all levels. I would like to place on record that but for their contribution and dedication, the results achieved would not have been possible. I would urge them to work harder with more determination and spirit to overcome the setback caused by the suspension of Endosulfan production to further improve the performance of the company. |
