Hindustan Copper Limited
“Tamra Bhawan”, 1 Ashutosh Chowdhury
Kolkata – 700 019
Chairman’s speech at the 38th Annual General Meeting
gives me great pleasure to welcome all of you to the 39th
Annual General Meeting of your Company, Hindustan Copper Limited.
Annual Report for the year ended 31st March, 2006 along with
the Directors’ Report and Audited Annual Accounts of the Company have
been provided to you, and I request your kind permission to take them as
I would like to present briefly the salient features of the Company’s
performance during 2005-06.
2005-06, the Company produced 22,984 tonnes of metal-in-concentrates,
36,087 tonnes of cathode and 34,749 tonnes of wirerod. While production of
cathode and wirerod improved appreciably during the year and was higher by
49% and 27% respectively over the previous year, performance in the mining
segment (i.e. ore and metal-in-concentrates) was adversely affected
because we carry a heavy burden of many years’ backlog in mine
development work. We are, therefore, channelising funds into mine
development work on a priority basis.
the year, the Company sold 38,631 tonnes of refined copper as against
26,043 tonnes in 2004-05 achieving sales growth of 48%. In financial
terms, the sales turnover during the year was Rs. 1053.76 crore which is
88% higher than the previous year.
exported 1,402 tonnes of wirerod for the first time in 2005-06.
performance during the year has shown significant improvement registering
a net profit of Rs.100.22 crore as against Rs.52.06 crore in the previous
year. This rise in bottomline was achieved through improved production
process, reduction in interest costs, savings in manufacturing overheads
and other cost cutting measures. Besides, the surge in LME price of copper
helped in improved sales realisation and better working results. Cash
profit during 2005-06 was Rs. 123.33 crore as compared to Rs. 84.80 crore
in 2004-05. Net worth of the Company as on 31st March, 2006 was
Rs. 225.61 crore. I am glad to inform that HCL has been able to maintain
the upward trend in profitability during the current financial year too
registering cumulative net profit of Rs. 83.78 crore upto the month of
to losses incurred in the past and erosion of net worth in excess of 50%,
the Company comes under the purview of the Board for Reconstruction of
Public Sector Enterprises (BRPSE). A restructuring package has been
prepared and submitted to the Ministry of Mines for presentation before
BRPSE. In this package we seek reliefs and concessions from the Government
to help us strengthen the Company.
increasing competition, our task is rendered more daunting. Business
operations have to match international standards if we are to sustain the
upward trend of performance.
strategic issues concerning operations, finances, systems and processes,
human resources, sales and marketing which need close attention and
improvement have been identified. These are being addressed under a
programme code named ‘Operation Manthan’. We are fully confident that
this programme will transform HCL into a vibrant and self-sustaining
has been identified as our competitive edge. So maximum thrust has been
given to mine development and long term planning. This includes
feasibility studies for transition of open cast mine to underground mine
at Malanjkhand, mining of Banwas deposit at Khetri, and reopening of
closed mines at Ghatsila.
have been taken for preparation of information technology (IT) roadmap,
energy conservation, hedging and diversification into value-added niche
growth in India during 2005-06 has been over 7% and is likely to touch
double digit figures in the near future. Govt. of India’s increasing
thrust on infrastructure development has pushed up the demand for
commodities in general and copper in particular. Areas of growth are power
generation and transmission, consumer electronics, and industrial
machinery and equipment. This offers excellent opportunities for growth.
The future outlook for HCL is, therefore, definitely promising.
achieved net profits in the last two consecutive years, HCL is now aiming
to emerge as a self-sustaining and profit making organisation.
|HCL’s thrust for the year 2006-07 would be|
To increase mining output
through extensive mine planning and infrastructure development
To increase operational efficiency of process plants through technology
To improve capacity utilisation and reliability of plants and equipment
To take steps for global recognition of product quality through LME
To reduce interest costs through repayment and restructuring of loans and
reduction in interest rates
To dispose off non-performing assets and scrap to generate additional
» To introduce a Company policy on Energy to institutionalize energy saving measures
rationalize manpower, bring about change in work culture and mobilize
external resources for achieving optimum results.
Shareholders / Investors’ Grievance Committee
per corporate governance requirement, a Shareholders / Investors’
Grievance Committee has been constituted by the Board to look into the
redressal of complaints, if any, pertaining to transfer of shares,
non-receipt of Balance Sheet and issue of duplicate shares etc. received
On behalf of the Board, I would like to thank you, our esteemed shareholders, for your continuing confidence and support. I take this opportunity to thank the Ministry of Mines for their unstinted support to the Company. I also acknowledge the support extended by the State Governments and all other authorities and agencies. I thank all the employees of HCL for their commitment and devotion. I thank the trade unions for their constructive cooperation to the management that has helped us to maintain cordial industrial relations.
the Statutory Auditors’ Report has already been circulated to all the
shareholders, I request that the same may be taken as read. Additionally,
I am glad to inform you that the CAG after having reviewed the Company’s
accounts for the year ending 31st March, 2006 have given a
I request the Company Secretary to take up the resolutions as listed in
the notice. One of the members present may please propose the resolution
and another member second it.
I thank all of you once again and offer my best wishes to you for the ensuing festival season.
Hindustan Copper Limited