Chairman’s Statement

Dear Shareholders,

On behalf of the Board of Directors and on my personal behalf, I extend a warm and cordial welcome to each one of you to the 124th Annual General Meeting of your Company. The Directors’ Report and Audited Financial Statements of the Company for the year ended March 31, 2014 along with the Auditors’ Report thereon, have been with you for quite some time and with your permission, I take them as read.


The global economic environment continued to remain challenging in fiscal 2013-14. The year under review witnessed divergent growth globally, led by strengthening of the US economy, uneven and subdued growth in the Euro area and Japan, coupled with a slowdown in Developing & Emerging markets.
The Indian economy has not remained untouched by the global economic slowdown and witnessed deceleration in GDP growth rates. Over the past few years, India’s economic growth has moderated and the economy has witnessed macro headwinds, inflationary pressures and adverse currency fluctuations, all of which have led to moderation in demand.

The macro-economic slowdown impacted most of the sectors of the Indian economy. Fiscal 2013-14 has been a tough year for Indian industry. On the one hand, food inflation remained high during the year and on the other, there were uncertainties about job prospects and the state of the economy. Towards the middle of fiscal 2013-14, there was a sharp depreciation in the Indian Rupee (INR) and it touched record lows, primarily as an outcome of widening current account and fiscal deficits. Towards the end of the year, certain focused measures by the Government and Reserve Bank of India, helped to bring in some positive trends as the rupee stabilised. With all these factors, the Indian economy got saddled with unmitigated Current Account Deficit, high inflation, slow growth and falling rupee value.

With the formation of a stable and reform-oriented government after the Lok Sabha elections, there is a positive sentiment in the markets for a kick start of the reforms process and decisive policy action. Looking ahead, the outlook for the Indian economy appears positive.


Your company has recently completed 125 years since inception. It is more than a century of entrepreneurship, sustainability and creating shareholder value. DCM’s journey of 125 years is an acknowledgement of the untiring efforts of successive generations of employees who have dedicatedly served your Company. We believe it is an ongoing journey, full of challenges and opportunities with the focus on keeping multiple businesses growing with the same entrepreneurial spirit while managing operational discipline and sharing core competencies across the board.

The financial year ending on March 2014 was another successful year, despite a challenging environment. Your Company has recorded a Net Profit after Tax of Rs. 36.20 Crores against Net Profit after Tax of Rs. 29.01 Crores earned last year. However, the performance of DCM Engineering Ltd, one of the subsidiaries of the Company continued to be severely affected due to market slowdown, a volatile input cost environment and heightened competitive intensity.

The Board of Directors of your Company has recommended a final dividend of 15% @ Rs. 1.50 per equity share of Rs. 10 each for your approval for the financial year 2013-14 in addition to the interim dividend of 15% @ Rs 1.50 per equity share of Rs.10 each which was paid in December, 2013.

The Board of Directors has recommended the induction of Dr. Meenakshi Nayar to the Board as an Independent Director. In view of her vast expertise and knowledge in management of social enterprises and human resources, it will be in the interest of the Company to appoint her as an Independent Director. Sh. Naresh Kumar Jain, director of the Company passed away on December 8, 2013. He was 78 years old and had worked as Managing Director of the Company for more than one decade. Your Board placed on record its deep condolences on his sad demise.