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Goodricke Group Limited CHAIRMAN’S ADDRESS: P J FIELD
AT THE ANNUAL GENERAL MEETING OF GOODRICKE GROUP LIMITED ON 27TH JULY, 2017
Shareholders, Friends & Colleagues, Representatives of the Media, Ladies & Gentlemen,
I have great pleasure in welcoming you to the 41st Annual General Meeting of the members of Goodricke Group Limited.
DIRECTORS
Mr. Atul Asthana, was appointed as an additional Director on the Board w.e.f. 1st June, 2017.
The notice of the AGM contains a resolution on the appointment of Mr. Atul Asthana as a Director to be designated as Whole time Director & Chief operating officer of the company.
The present term of appointment of Mr. A.N Singh, Managing Director & CEO is going to expire on 31st December 2017 and as such, he was re-appointed during the course of the year for another period of three months w.e.f 1st January, 2018.
The notice of the AGM contains a resolution on the re-appointment of Mr. A.N Singh, as Managing Director & CEO.
REVIEW OF OPERATION-HIGHLIGHTS
The Director’s Report gives an overview of the operations during the year ended 31st March,2017. The annexure to the Director’s Report under ‘Management Discussion and Analysis Report ‘gives a detailed coverage of the company’s operations as well as that of the Industry as a whole. May I highlight the salient features:-
- The company has voluntarily adopted the Indian Accounting Standard ‘’IndAs” for the accounting period beginning 1st April 2016 as per the notification of the Ministry of Corporate Affairs, Government of India.
- The total manufactured crop was satisfactory for the year as a result of substantial early rainfall along with improved irrigation facilities extended in the gardens.
- All India exports witnessed a slight decline of 2.27% over previous year. However, your company’s export segment has witnessed useful growth in terms of quantity & value.
- The company teas continue to receive a premium due to quality in all tea growing regions.
- The company has opened a state of Art Packing unit in Punjab to cater to the needs of the customers in the Northern Region.
- The Branded tea business had an excellent performance during the yaer in spite of stiff competition in the package tea market. High end tea bags have been introduced to the luxury hotels and other premium outlets in the country to target discerning consumers who seek quality teas.
- The company has established a few tea lounges under the flagship “Goodricke Tea Pot “across several states of the country.
- Your Instant tea plant has undertaken various cost saving initiatives to reduce costs further in order to remain competitive in the very limited market. Successful installation and implementation of a solar water heating system helped the company to reduce dependence on conventional energy.
- Your company has been regularly undertaking capital expenditure in plantations, irrigation, machinery and utilities for its long term sustainability and viability.
- Your company continues its CSR activities in its tea tea gardens and at the Goodricke School for Special Education in Siliguri as it has done for the past several years. A bus with special facilities for challenged children has been provided by the company, to Goodricke School for Special Education for smooth conveyance of the children.
- The Company continues to lay a great deal of emphasis on environmental and social sustainability for the long term survival of the Industry. A school named as Banarhat Hindi High School was converted to a green interpretation centre to spread the awareness among school children on environmental issues.
- Your company was felicitated by the North American Tea Association for its continued endeavour in sustainable social and environmental development.
- The Directors have recommended a dividend of 45% i.e at Rupees 4.50 paise per share for the year 2016-2017.
- As compared to peer group, Goodricke shares have performed very well and share prices have generally moved in line with Sensex.
- You may have read the “Report on corporate Governance” as contained in the annexure to the Director’s Report. This relates to the Listing Agreement. I am happy to report that a number of significant requirements therein such as Audit Committee, Risk Management, Remuneration Committee and others were put in place in your Company well before the same were made mandatory by the Indian regulatory authorities. The Audit Committee, Stakeholders ‘Relationship Committee and the Nomination and Remuneration Committee of the Board continue to play an important role towards effective Corporate Governance of the company.
- As you are aware, your company is a major constituent of Camellia Plc., which is based in the U.K and listed on the London Stock Exchange.
- Camelia Plc. Is the second largest tea producer in the world with plantations in Kenya, Malawi and Bangladesh as well as India. It also has substantial interests in other agricultural and horticulture crops and engineering.
CONCLUSION
I wish to put on record the dedication of all the company personnel both at the tea gardens and at other establishments. Your company is one of the largest employers in Eastern India and employs over 23,744 direct employees. To ensure the wellbeing of employees and their families policies have been laid down on Health and safety, Waste Management and Environment & Social issues.
It gives me great pleasure to address you all and I am pleased to say the company is financially sound and the debt/equity and interest cover remain healthy.
The current year has commenced with adequate rainfall in all the regions and crop production is expected to be promising barring situations which are beyond the company’s control.
I am pleased to acknowledge the support given during the year by all stakeholders particularly investors, business associates and the local administration.
