ANNUAL REPORT 2000-2001
VINYL CHEMICALS (INDIA) LTD.
CHAIRMAN'S SPEECH
Ladies and Gentlemen,
I welcome you all to the FIFTEENTH Annual General Meeting of our Company.
The Directors Report and Audited Accounts for the year ended 31st March,
2001 have been with you for sometime and with your permission, I shall take
them as read.
PERFORMANCE FOR THE YEAR 2000 2001
You will have noted from the Annual Report that -
a. The plant remained closed for 61 days including 11 days for change over
of catalyst and for annual maintenance shutdown and for 35 days due to non
availability of Ethylene, an essential raw material.
b. The production and sales (excluding traded goods) of Vinyl Acetate
Monomer (VAM) in volume were at 13,517 MT and 13,625 MT respectively as
against 11,209 MT and 11,467 MT in the previous year.
c. Compared to the previous year, the selling price of VAM remained firm
during most part of the year.
d. The price of Ethylene, an important raw material fluctuated in the range
of Rs.3 1.50 per kg. to Rs.4 1.50 per kg.
e. There was no benefit of exemption from Sales Tax and Purchase Tax during
the year as the same has ended in February, 2000.
f. Trading turnover decreased to Rs.1207 lac as against Rs.3965 lac in the
previous year.
g. The net profit for the year was Rs.565 lac after providing for
depreciation of Rs.253 lac and taxation of Rs. 162 lac against net loss of
Rs. 198 lac in the previous year.
DIVIDEND
Directors have recommended dividend at the rate of 10% for the year.
PROSPECTS FOR THE CURRENT :AR 2001 - 2002
During the quarter April - June, 2001 the plant remained closed for 3 days
including 49 days for non availability of Ethylene an important raw
material. In the corresponding quarter in the year 2000 - 2001, the plant
remained closed for only 19 days which was on account of annual shutdown,
change over of catalyst and non availability of Ethylene. Uncertainty
regarding assured supply of Ethylene is a matter of great concern. The
management is exploring various options to find a suitable solution for
this issue.
The production and sales of manufactured VAM during this quarter are 1602
and 1543 tons as compared to 2886 and 2709 tons during the corresponding
period of 2000.
The sale of traded goods during this quarter has been Rs.902 lac as
compared to Rs.852 lac during the corresponding period of 2000.
Since April, 2001 the price of VAM in the international market has fallen
and it appears that the price will remain weak for atleast few months. On
the other hand, the supply of Ethylene has remained erratic and its price
has been fluctuating between Rs.33.10 per kg. to Rs.36.10 per kg.
The cumulative effect of all these factors is the Net Loss for the quarter
of Rs.86 lac as compared to Net profit of Rs.48 lac for the corresponding
period of 2000.
If Ethylene supply remain satisfactory during the rest part of the year,
company expects reasonable performance for the year.
DEBOTTLENECKING / EXPANSION:
The company has taken steps to implement debottlenecking / expansion
proposal to increase the capacity of the plant to 24,500 tpa and for
setting up Oxygen / Nitrogen plants.
In conclusion, I express my sincere thanks to:
a. Our Shareholders for their trust in the Company
b. Our valued customers and suppliers
I also express my gratitude to each one of my colleagues on the Board for
their valuable advice and support
I sincerely thank all the employees of our Company and the group Companies
for their co-operation, dedication and devoted work.
Lastly, I sincerely thank you all for being present here.
Thanking you again,
B. K. PAREKH
CHAIRMAN
Date: 3rd August, 2001
This does not purport to be a record of the proceeding of the Annual
General Meeting.
VINYL CHEMICALS (INDIA) LTD.
Regd. Office: 7 floor, Regent Chamber,
Jamnalal Bajaj Marg, 208, Nariman Point
Mumbai 400 021