Blue Star Limited (500067) Earnings Call Transcript & Summary

Ladies and gentlemen, I, Shailesh Haribhakti, the Chairman of Board of Blue Star Limited, have great pleasure in welcoming you to the 72nd Annual General Meeting of Blue Star Limited. I request all the directors on the video conference to introduce themselves. Vir?

Good afternoon. I'm Vir Advani, Vice Chairman and Managing Director of Blue Star Limited. I'm also the Chairman of the Risk Committee Meeting -- Risk Management Committee. I'm attending this 72nd Annual General Meeting of Blue Star Limited from my office at Band Box House, Worli, Mumbai.

Welcome. Mr. B. Thiagarajan?

Good afternoon, ladies and gentlemen. I am B. Thiagarajan, Managing Director of Blue Star Limited. I am attending this 72nd annual general meeting of Blue Star Limited from our office at Band Box House, Worli, Mumbai.

Thank you. Welcome. Mr. Anil Harish?

Good afternoon. I'm Anil Harish, Director of Blue Star Limited and Chairman of the [indiscernible] Committee.

Thank you. Welcome, Anil. Mr. Sam Balsara?

Good afternoon, everyone. I'm Sam Balsara, attending the 72nd Blue Star Annual General Meeting from my residence.

Thank you, Sam, and welcome. Rumjhum Chatterjee, please?

Rumjhum Chatterjee, from my residence in Gurgaon, Haryana.

Thank you. Welcome, Rumjhum. Mr. Arvind Singhal?

[indiscernible] Director of Blue Star Limited, I am attending the 72nd annual general meeting of Blue Star Limited from my office in Gurgaon.

Welcome Arvind. Mr. Dinesh Vaswani?

Good afternoon. I'm Dinesh Vaswani. I'm attending the 72nd annual general meeting of Blue Star Limited from my residence in Mumbai. Thank you.

Thank you, and welcome, Dinesh. Sunaina Murthy?

Good afternoon, afternoon. I'm Sunaina Murthy, member of the Board of Blue Star Limited. I'm attending the general meeting from Mumbai.

Thank you. Welcome, Sunaina. Rajiv Lulla?

Good afternoon, everyone. My name is Rajiv Lulla. I'm a nonindependent nonexecutive Director of Blue Star Limited. I'm attending the 72nd annual general meeting from my residence in Mumbai. Thank you.

Thank you very much. Apart from all your directors, we also have Neeraj Basur, our Group Chief Financial Officer; and Mr. Vijay Devadiga, Company Secretary. The representatives of our statutory auditors and secretary auditors are also present at this meeting. As a requisite quorum in terms of section 103 of the company's Act 2013 is present, I call this meeting to order. The company has not received any letter, along with board resolution from corporate shareholders appointing authorized representatives under Section 113 of the company's act 2013 in respect of equity shares of the company. The statutory registers and other documents have been made available electronically for inspection by the members during the AGM. Members seeking to inspect such documents can send their requests to secretarial desk at bluestarindia.com. As the AGM is being held through video conference, the facility for appointment of proxies by the members was not applicable. And hence, the proxy register is not available for inspection. As the notice has already circulated to all members, may I take the notice convening this meeting as read. The reports of the statutory auditors and sectoral auditors do not contain any adverse qualifications, observations or comments on the functioning of your company and therefore, are not being read. I now request Mr. Vijay Devadiga, Company Secretary, to provide general instructions to the members regarding participation in this meeting. Vijay?

Thank you, sir. Good afternoon, everyone. Members may note that this AGM is being held through video conference in accordance with the company's act 2013 and circulars issued by Ministry of Corporate Affairs and SEBI. Facility of joining this meeting through video conference or other audiovisual means is being made available to the members on a first come first served basis. All members who have joined this meeting are by default, kept on mute mode, by the host to avoid any disturbance arising from the background noise and ensure smooth conduct of the meeting. The company has received requests from a few members to register themselves as speakers at the meeting. Once question and answers session starts, Chairman will announce the names of the shareholders, one by one, who have registered themselves as speaker shareholders. The speaker shareholder will thereafter be unmuted by the host. To start speaking, shareholders are requested to click the video button. If the shareholder is not able to join on video for any reason, the shareholder can speak through audio mode. If there is a connectivity problem at any speaker's end, we would ask the next speaker to join and the said earlier speaker shareholder who could not speak due to the connectivity problem, will be called again to speak. In the interest of time we would like to request the shareholders to kindly limit their speech to 3 minutes. Members are requested to refer to the instructions provided in the notice for seamless participation through video conference. In case members face any difficulty, they may please reach out on the helpline numbers mentioned in the notice of the AGM.

Thank you very much, Vijay. Now let me appraise you shareholders of the performance of your company during fiscal year 2020. Let me begin by welcoming all of you to the 72nd annual general meeting of your company, Blue Star Limited. I would very much like to meet and address every one of you in person. But as you know, we are holding this meeting over a virtual platform due to the prevailing unprecedented circumstances. I would like to thank you for sparing the time to join us today from wherever you are and for your continued faith in Blue Star and its management. I hope you and your family members are remaining healthy and staying safe. While the full version of the speech will be made available online, please allow me to read out a few excerpts for your benefit. As you know, I took charge as Chairman of the company in April 2019. And fiscal year 2020 started off as a promising year on all fronts as we set forth on the next phase of our journey towards the Blue Star Centennial after celebrating our platinum Jubilee. We were on track in terms of revenue growth, profitability and various excellence programs until January 2020, when the country began witnessing early signs of the COVID pandemic. In a manner of speaking, FY '20 ended abruptly. And at the same time, it became clear that the summer season as well as the rest of FY '21 would be challenging as a period. As I speak, the inflection rate continues -- the infection rate continues to rise in several parts of the country, but we are learning to live and work in these changed circumstances. The advent of a few life-saving medicines provides welcome relief, and there is hope that a vaccine will be available before the end of this calendar year. I must salute the spirit of government authorities, health care workers, frontline, police and the public in fighting this pandemic. I must acknowledge the understanding and support of our numerous customers on whose trust we continue to evolve and grow. To remind you, the credo of your company is, I'm Blue Star. I take pride in delivering a world-class customer experience. And that is what each Blue Star-ite strives to do. I would also like to convey my appreciation to the employees of Blue Star as well as its dealers, business associates and vendors and their families for their notable efforts in pursuing business continuity and their ongoing and relentless efforts towards restoring normalcy. With courage and conviction and diligence and determination, they continue to contribute, placing the company's interests above their own. Their commitment and sacrifices will definitely be recorded in the history of your glorious company. Quarter 1 fiscal '21 financial results were discussed -- the unaudited results were discussed this morning. While the consolidated revenue de-grew by 60%. The operating profit collapsed and de-grew by 99%. Much of the crucial summer season sales were washed out with retail outlets shut, and the lockdown and nonessential e-commerce sales not allowed. Most project sites were not available for execution. Things began opening up slowly, albeit, with restrictions, only in the month of June. Understandably, therefore, the financial performance of Q1 FY '21 is impacted. Your company delivered positive EBITDA and managed cash flows well. We had raised capital of about INR 350 crore through private placement of nonconvertible debentures with a tenure of 3 years of financing working capital and for repayment of existing short-term borrowings. And thus, we are adequately capitalized. The order inflow during the quarter was INR 573 crores and the carried forward order book is valued at INR 2,919 crore. As of now, close to 75% of our dealer outlets are operational, and 50% of our project sites are active. With the good monsoon season being witnessed, I expect economic activity to improve progressively from now on. As I had stated in my letter to the shareholders, the second half of FY '21 should witness revival of growth in demand. Resilient, reimagined, trusted and built to last are expressions that define your company. Your company has been a successful enterprise in both the B2B and the B2B segment -- B2C segments, offering world-class products and solutions. It serves large corporates, medium-sized commercial establishments, MSMEs and residential customers. Apart from big cities, our presence is strong in Tier 3, 4 and 5 towns, too. We are a reputed player in the Middle East, SAARC and Far East. From window air conditioners to large chillers, deep freezers to large cold rooms, digital payment gateway and structure to sophisticated MRIs, air conditioning and ventilation projects to electrical and plumbing contracts. We have such a wide range of products and solutions. These are the strengths that make us resilient. Apart from adjusting to the new normal and coping with intermittent lockdowns, our focus continues to be on maintaining market leadership in our chosen areas of business by widening our product range and deepening our penetration in conventional as well as e-commerce channels to accelerate revenue generation. Prudent capital allocation, efficient cash management and a tight cost structure shall be our top priorities. With legendary cricketer, Virat Kohli, as our brand ambassador, we shall continue to invest in our brand, making it relevant to a wider audience. Our presence in digital and social media continues to grow. We are working on a few initiatives to seize emerging opportunities for new products and services in the areas of cooling and purification. These include: air conditioning products and solutions with virus deactivation filters and UV technology; augmentation of fresh air through ventilation; vaccine and pharma related cold chain solutions; air conditioning duct cleaning solutions; alkaline water purifiers; touch free feature in products such as water coolers; a new range of affordable health care products such as MRIs and CD scanners. It is important for us to preserve our identity and leadership as a trusted and differentiated player in both B2B and B2C segments and to pursue profitable growth with distinctly different and appropriate strategies that the respective businesses call for. [ foreign language ] as a concept has been the spirit of Blue Star right from its inception, and the company has been making a wide array of products in India for India and for the world for over 75 years. Some of you have visited our state of the art manufacturing facility in Dadra last year. We will continue to invest in R&D and manufacturing as we undertake many more indigenization programs. I continue to look at Blue Star with great optimism and as a company with a great deal of resilience. The road ahead is full of challenges, but it is equally exciting and promising. I wish to place on record my deep sense of gratitude to my colleagues on the Board for their amazing and very fruitful counsel and support. I'm thankful to Chairman emeriti, Mr. Ashok Advani; and Mr. Suneel Advani for their insights and advice for which I'm deeply grateful. I thank you once again for your continued faith in Blue Star and in it's management. I wish you and your family members all the best. Thank you. The company had provided remote e-voting facility to shareholders to cast their votes electronically in respect of all businesses mentioned in the notice. The remote e-voting facility commenced on August 3, 2020, 9:00 a.m., Indian Standard Time, and ended on August 5, 2020, at 5:00 p.m. Indian Standard Time. Members present in this AGM through VC, through OAVM and who have not cast their vote on the resolutions through remote e-voting, shall be eligible to vote through e-voting system during the AGM. Members may please go to the voting page on the NSDL e-voting website and cast their vote. While at the same time, they can watch the proceedings of the AGM. Please note that there will be no voting by show of hands at this AGM. Mr. Bharat Upadhyay, Partner, M/s N.L. Bhatia & Associates, practicing Company Secretary, has been appointed as scrutinizer to scrutinize the votes cast at the meeting and through remote e-voting process in a fair and transparent manner. Before transacting the agenda contained in the notice, let me briefly inform you about the items of business, which form part of the notice. Items one, 2 and 3 relate to: one, to receive, consider and adopt the audited financial statement of the company for the financial year ended March 31, 2020, along with the reports of the Board of Directors and auditors thereon; and b, the audited consolidated financial statement of the company, the financial year ended on March 31, 2020, together with the report of the auditors thereon; 2, to confirm the interim dividend of INR 10 per equity share of INR 2 each of the company and consider the same as final dividend for the financial year ended on March 31, 2020. To appoint a Director in place of Mr. Rajiv Lulla, [ DIN: 06384402 ], who retires by rotation and being eligible, offers himself for reappointment. These items form part of the ordinary business to be transacted at the AGM. In addition to these, following agenda items in the notice, which forms part of the special business also will be transacted at this AGM: one, ratification of the remuneration of M/s Narasimha Murthy & Company Hyderabad, Cost Accountants for financial year ended March 31, 2020; reappointment of Mr. Vir S. Advani, as Vice Chairman and Managing Director of the company; reappointment of Mr. B. Thiagarajan as Managing Director of the company. In respect of items covered under special business above, necessary information has been provided in the explanatory statement forming part of the notice to the AGM. Approval of members is therefore sought for the above agenda items. I now invite the shareholders to offer comments and seek clarification on the resolutions contained in the notice. In order to afford an opportunity to as many of you as possible, I request you to be brief and avoid repeating the questions and comments made by earlier speakers. Shareholders are requested to mention their name and their Folio ID or client ID before asking their questions. I will now call upon the 12 registered speakers whose list I have and will follow the process Vijay has already outlined earlier. And I will seek to answer all your questions at the end after all questions have been asked. So may I first call upon [ Sevananda Gathani ] to speak.

I'm there sir. Just a minute on the. Good evening, sir. Chairman, sir, nice meeting you. I believe you are one of the best [indiscernible] Nice meeting you Chairman, sir. I'm [indiscernible]. company, [foreign language].. If you have any problems, call back on these numbers. Thank you, Mr. [indiscernible]. I am a very old shareholder.[indiscernible] And someone missed it and you called it 2 or 3 times. [indiscernible] The secretarial department did a good job, sir. [indiscernible] Mr. Vijay Devadiga, he called up -- his assistant called up. And the called us several times. And they said Gathani you are this, this, this. If you have any problem, call back on this number. Thank you Mr. Devadiga. I'm a very old shareholder, sir, but fortunately due to -- or unfortunately due to COVID I'm unable to meet the management. [foreign language] Vir S. Advani [indiscernible] And I want to propose the resolution of Mr. Vir S. Advani. I don't know the rest but in writing, it must be in the minute, sir. I'm very happy with a lot of things in the company, sir, Virat Kohli, [foreign language]. Our consolidated revenue is too good sir [indiscernible] INR 5360.19 crore against INR 5234.84 crores. 2.4% jump. I'm very happy with this. Net profit for the year versus [indiscernible] compared to INR 190 crore in the previous year. EBIT is [indiscernible] I might be, but I'm very happy sir. And this -- our company received a significant order from Mumbai Metro Rail corporates for AC and tunnel ventilation system valued at INR 253 crore. It is a wow moment for the company, and I'm a very happy person with this. With a healthy carryforward order book of INR 2,039 crores as on March 31, I'm very happy sir. The company spent INR 68 crores towards research and development projects, also very good, sir. Company spent INR 3.49 crore towards CSR activities. I'm from Calcutta, sir [indiscernible]. I request you too do something for Calcutta also sir. Your Blue Star AC, et cetera, will sell like hot cakes. So do share some of the profit there sir. Company has a positive closing cash flow of INR 286.15 crores as compared to INR 83 crore is a very, very healthy sign sir. I don't want to know, but I do [indiscernible] because of SBA asking a and it defaulted sir. The company defaulted, all the employees are now on the road sir, many are on the road. Company declared a healthy dividend of INR 10 per equity [indiscernible]. It comes to this [indiscernible] a full value of rupees [indiscernible]. Now the thing I want to be -- although I want such tradition to be given, sir, the AC market is now not very good sir because of some researchers on the web, AC may spray the virus among the poor persons who are taking the air out of it. So how are you going to deal with that sir? My first question. Foreign exchange outgo is INR 1,160 crore, while earning is INR 181 crore. It is -- it doesn't go well with the government, sir. How can we improve that, sir? And there are some [ 427.32 ] pending statutory dispute, which I know is a long term thing, sir. It is given in the current report, you can easily understand, sir. So how are we? I support all the resolutions, sir. And Mr. Haribhakti sir, I've got a request sir. I want your autograph on a photo and a visiting card. My name, address and Folio number is with the company secretary sir. I'm a senior person, sir. [Foreign Language]. Yes. Go to the second speaker sir.

Thank you very much. And very nice to know that you're attending from Kolkata. This is the kind of thing that happens when we have this kind of virtual AGM. The next speaker, I would like to call upon is [ Behrouz F. Forbehe ]. Behrouz is not online yet. All right, I'll call him later. May I speak to [ Kormayan Kordehe ]. She is also not there. Okay. Then I will call upon -- Mr. [indiscernible] is available. Okay. Please.

We are missing our physical AGMs. You remember, Mr. Shailesh Haribhakti, I've known you since your father was in charge. Now sir, I want to ask just a few questions, regarding our Blue Star. So we don't count as essential services or essential commodities, right? So what has been the effect of our losses on our company? One. Sir, and are our plants running to full capacity. So please let us know. Are our plants running to full capacity now which started slowly and gradually, right? These are the things I would like to know. We really missed [indiscernible] based on the month of May, we will have such good of products. Yes. I'm shifting the phone to the third speaker, Mr. Behrouz.

Okay. Thank you. Thank you.

So our respected Chairman, Mr. Shailesh Haribhakti, and other distinguished directors. My name is Behrouz [indiscernible]. Sir we are very well. We are happy that Ashok Advani and Suneel Advani, the 2 brothers have taken our company to such a big height. And now Suneel Advani's son, is now managing the show. So the younger generation have come into the picture. We are very proud of him. And we are also very glad that Vijay Devadiga as well as [indiscernible], they always ring up and all your Secretary team are very much dedicated and very sincere, and they always ring us up and try to find out whether we got the link or not. So we are very well helped by them, and we really wish the company all the best, sir, we don't have any questions because you have already given INR 10 interim dividend before March and there was no deduction of tax. And actually, there is no final dividend, but we hope that our company will do -- perform very well and give our regards to Mr. Ashok Advani and his younger brother Suneel Advani because they have taken our company to such a great height, so we wish you all the best. Jai Hind, Jai Bharat.

Jaya, Thank you. I now call upon Mr. Rajendra Prasad D. Joshi.

Yes, It's really great to see you determine our [indiscernible] income sir. You have very advanced experience and [indiscernible] that will help our company to take on new heights so, I cannot stop myself from appreciating the useful services rendered by our company secretary, Vijay Devadiga and his team, including Ritesh Bhatt. Sir, Vijay Devadiga, is always [indiscernible] also very sincere, hardworking and cordial by nature, always ready to help us, sir. Ritesh will call me well on time for having the AGM, and they have done a splendid job making this virtual meeting a success. Sir, Vijay Devadiga and Ritesh both which should be awarded by upgrading or incremental raise, this is my request to the management, sir? Sir we still have to [indiscernible]. Our company is growing by having the strong brand and name in the market and after-sale services also. We are truly impressed by the company's strategic expansion and initiating some initiatives over the years, delivering the world-class customer experience. Sir as far as [indiscernible] is concerned, it is excellent. This was further increased during the year, company's total income grew by 12.7%. Operating profit grew by 30.8%, and net profit grew by 32%. Operating margin also has gone up by 3.6%. My commentary is [indiscernible] toward this excellent performance. Sir I appreciate the most, company policy, made in India, made toward results. So it is a great service to the nation and also something about of our refined instamanager in the boardroom. So I applaud conditions, one company should come out at the right issue at a discount to market price, we lower the servers on the A [indiscernible]. Second solution is shareholders should be given a discount on the products of the company and also in the upper sale services. Sir, I already submitted my credentials to the company secretary which I will not repeat here. It has been my pleasure sir. I assess my big [indiscernible] secretary, Vijay Devadiga and Ritesh for their promotions for all the time. And I strongly suggest [indiscernible] Thank you very much.

Thank you very much, Rajendra. Hari Ramji are you here? Mr. [ Hari Ram Chowdhury ]?

He has requested to keep him in the last.

Okay. Mr. Jitesh Lakhani.

Am I audible?

Yes, you are, Jitesh. Go ahead.

Okay. Good afternoon to Chairman and Board of Directors and fellow shareholders. My name is Jitesh Lakhani. Today, it's a very pleasure to attend a Blue Star Limited 72 annual General Meeting as video conferencing, which is a really great experience. Okay. COVID-19 pandemic lockdown, I understand business is very tough. Still, the company is doing better. And -- okay. Another thing I would like to say, I'm happy with the dividend INR 10 per share and hoping for a better dividend in future as well. And me and my family support all the resolutions and wish a better business for -- in benefiting to overall society. And I would like to know some strategic plans of the company in terms of any expansion and diversification. And others, I support all the resolutions. Thank you. Just one more thing I would like to know, is there -- like I'm planning to buy AC. So is there any special discount to buy AC or cooler to the shareholders? If there is any, you can send us an email.

Sure. Thank you very much, Jitesh. Very nice of you. May I now call upon H.S. Patel. Vijay, can you please request...

Not online, sir. H.S. Patel is not online at this moment. Okay. So shall I move her to the bottom then? Okay, done. Now may I call upon Mr. Anil?

Am I audible?

Yes, Anil.

Do you recognize me?

Of course, I do. You are a regular shareholder. Always.

Good morning to all the Chairman, Managing Director, Mr. [indiscernible]. Mr. Vir Advani; and other Board members. Thank you for giving me -- allowing me to speak. Sir, I had already hello. Am I visible?

Yes, yes, go ahead Anil.

I have already forward some questions.

Yes. I've got them.

You must have received that. And I expect your views on those questions. But I would like to say a few words on the working and some of the solutions, so which you may please take positively, sir. First of all, I would like to thank our CS team, especially Vijay, Ritesh and all the other members are extending very good investor services and I'm very much thankful to them for assisting us in every aspect of our problems. Thank you, sirs. Secondly, they represented an annual report very well, and I appreciate that. Sir, our revenue has gone up marginally by 2.4% consolidated. And even though our revenue is INR 5,360 crores. Still, we are having a shortfall of INR 400 crores. Then expectations due to COVID pandemic and so on. Sir, even our net profit has gone down since last year, last year, it was INR 190 crores. This year, INR 143 crores. I'm very much happy. Still we are doing very well as far as financials are concerned, but I would like to especially thank Vir and his team for bringing down our net borrowing. Our debt has gone down to 0.2%. So hats off to Vir and his team. Sir, this was possible because of our stringent working capital management. Sir, now my question starts. How are we are evaluating to the [ foreign language ] of our Prime Minister, PM Narendra Modi. Can you explain me that? Sir, are we running at full capacity? Are all the plants running at full capacity? And how our employees and customers are safe? I would like to know that. Sure. And what are our policies as far as the safe employees and customers from COVID-19. Sir, I have already forwarded to 1 question regarding Virat Kohli. Please answer me. My next question is the impact of COVID-19 till 2021 onwards? How we are future ready? I would like to know. And our exports in 18 countries globally, any impact of COVID-19. Also my next question follows. In regard to the INR 253 crore order we have received from Mumbai Metropolitan division for metro projects. Sir, any other projects we are likely to get? Or are we bidding for that? I would like to know. And sir, last 2 questions. We have recently done an issue of entities for INR 300 crores. And we have successfully received INR 450 crores. It was a huge response. But sir, my question here, is why you can't do it for shareholders? So that we can also participate and we can earn a good -- what you call, interest better than bank. So this is my humble suggestion. If you can do it in future that will be fine. And my last question regarding the digital model, which just now we have introduced. Sir how well responsive? I would like to know. And I'm ending here with supporting all the resolutions, and I hope that coming years will be much better, and we all can meet physically at the venue. Not by video because they are not comfortable at all. We are not comfortable at all. So I'd like to request you, kindly, wait next time if everything goes right, we can meet physically. Thank you.

Definitely. Thank you so much, Anil Bai, and wish you all the best. May I now call upon Smitaji. Smita Shah, please?

[Foreign Language]

Thank you very much.

Sir, H. S. Mrs. Patel has joined now.

Sure, so we will request her speak, yes. How are you?

Good evening. Our respected Mr. Haribhakti, Shailesh Bhakti. A very distinguished and very eminent person who is always with smiles, and always having a welcome type of attitude in him. He's never been quite stick in his life and very, very helpful person. I wish him good luck, Mr. Shailesh Haribhakti. We are very happy to see you as the Chairman of this distinguished company, Blue Star. Mr. Vir Advani, our Managing Director and Vice Chairman; Mr. Thyagarajan, the Managing Director, ladies of the Board. My favorite, Mr. Sam Balsara. I'm -- nice to have you on the Board as a Farsi Director, and Mr. Anil Haresh. A very good afternoon to all of you, and this is H.S. Patel. Here, I'm very thankful to Mr. Neeraj Basur, the CFO of the company; and special and good luck to Mr. Devadiga, Mr. Vijay Devadiga who has been very, very helpful. The whole team, Shanti, Yadav, and the whole secretarial team has been very helpful in helping me, in supporting me for this audio/video conferencing. I wish them good luck, the secretarial team, Mr. Vijay Devadiga and his whole team. Thank you, CFO, for the financial figures that you have given out. And thank you, CES, for the layout of the annual report. Now I come to the -- Blue Star is a company, which specializes in world-class refrigeration and AC production. It is India's second largest manufacturer and marketer of AC and refrigerated coolants. I congratulate the whole company first, for the cooling solutions that the company has come out with for the vaccines, which has been very helpful in this COVID times. Thank you very much the management team and the employees for this product. Sir, can the promoters increase their stake in Blue Star? The stock is 52 -- almost nearly 52-week low. If the promoters increase their stake, it will be better. The indebtedness of the company has also risen. It has increased from 364 to 499. Any steps to decrease the debt of the company? Sir, all your products have been very long lasting and very productive, very good products Blue Star gives to the Indian public. I have only 1 request. That -- why does your product not come to the masses level? Right down to the masses level. Can we not come out with EMI or -- which is at least from 6 months to 12 months?

Yes. Go ahead. Any other question?

Because this has -- the base period is extended from 6 months to 12 months, it would be much better. Many people will come out with it and buy this product, not only AC, even the coolants. This has 2 benefits: We can sell products very easily and quickly; and it will be very much ease to the pockets of the buyer. And EMI should be all year round. It should not be that only for the festive seasons. It should be -- it should not be like that. And can we go in for the online/offline sales channel? I would -- I'm positive on all your resolutions, and I have voted positively on all your resolutions. I wish the company all the very best, especially the employees who have worked hard for the result, naturally, the results still will be much, much better. And the company, I think if we are -- we should go in for this audio/video conferencing, year-by-year, SEBI and MCA have done this very good system of video conferencing, wherein people from all over India can participate in this conferencing. I wish the company all the very best. Thank you.

Thank you, Ms. Patel. May I call upon Mr. Bimal Kumar Agarwal, our last speaker. And after that, Mr. Hari Ram [indiscernible].

So we do not have Bimal Kumar Agarwal online as of now.

Okay. Then it will be Mr. Hari Ramji. Mr. Hari Ramji, are you here?

So sorry, Mr. Hari Ram is no longer here.

Good. So then all the questions have been asked. I will take this opportunity to answer them one by one. Mr. Gathani had asked a question about the contingent liabilities, particularly the direct and indirect tax matters. These are contested on interpretation grounds, as you can imagine, primary areas, which we are contesting are revenue versus capital receipts, a liability of certain expense deductions from the income, timing of the income recognition and computation of tax and accrual in sort of cash basis. As you would have noticed, Mr. Gathani, we are very assiduously pursuing every aspect of our tax litigation. And you'll be happy to know that we are we are in very good position so far as our tax assessments are concerned. On the virus products, you would have heard from my speech that we have a whole slew of products, which will permit you to live a safe and COVID free kind of air conditioned environment. Let me also mention that air conditioning is no longer viewed as a luxury. It is now becoming almost crucial to have air conditioning, particularly where the temperatures are soaring and therefore, your company has a very good opportunity to make sure that we innovate around this need. You had asked about what new product innovations. I have mentioned them in my speech, which will be available online, so you can refer to it. And I can assure you that the whole board is engaged very strongly in making sure that we come out with innovative products. Behrouz and [indiscernible asked me the questions on dividend and what is the capacity. Dividend, of course, we have been true to our policy. And therefore, we declared the INR 10 dividend despite the situation that we faced in the last quarter. So I'm sure the shareholders -- most of you have expressed satisfaction about the fact that we declared that INR 10 dividend. In terms of capacity, there are varying degrees of capacity utilization that the company's plants have experienced, but we are operating at as high a level of capacity as the demand necessitates. And so we are -- as somebody else asked the question, our working capital management has been particularly of a high order, I think Anil Bai asked about it. And we are very conscious about the safety of our people. We are very conscious about indigenization program, which speaks to the [Foreign Language] program. And our attempt is to make sure that our e-commerce trust keeps going up. I'll answer a few of the questions that Anil Bai had mentioned about Virat Kohli. Our budget is INR 6 crore over a 15-month period towards product promotion. The -- there's no royalty payment being made. In FY '20, the benefits to the company have been by way of better visibility, increased market share and the launch of AC with Air Purifier. He has extended his contract from November '20 to April '21. There were no benefits accruing to the company through combo offer with Anushka Sharma, and we are saying that only because a specific question was asked. Product exports were INR 52 crores in the first quarter, registering a fall of 9% over Q1 of FY '20. Digital, our e-commerce trust has been very successful. By now, we have touched 12% e-commerce, and our aspiration is to increase that. I'd like to bring to your pointed attention that we are now focused on 2 broad segments, the B2B segment and the B2C segment. And that restructuring, we believe, will be of tremendous impact as we go forward into this particular year and the years to come. We expect to gain some momentum in digital sales model, leveraged by artificial intelligence, big data analytics and augmented reality technologies. So we are very much in tune with the latest modern technologies that are available for us to deploy. And you can rest assured that your Board is fully engaged in all of these issues. Mr. Joshi asked several very interesting questions. And let me mention that we are watching the macro developments very closely. Our dependence on imports will reduce as part of our risk management framework. We are looking at backward integration and indigenization, again, part of our [ foreign language ] commitment. And we have started in-house manufacturing of IDUs needed for our split cases and have plans to indigenize sourcing of key components over the next 2 to 3 years. So we are hitting all the questions, I must say that the type of questions that were asked today by all the shareholders have been so wonderful, so deep, so penetrating. On our strategy for dividend, I've already talked about, on bonus and rights issues, which have been mentioned by several shareholders, we will consider them and come back to you as and when we have completed our own assessment of the financial strategy in Board. I believe I have covered every question that was asked and I would -- if there are any further questions that you have after going through our website and my speech, a lot of your questions were answered by my speech as well. And so I would point shareholders in the direction of our website to make sure that whatever you wish to know about the company, we want to run a very transparent process, and we welcome all the questions that you have asked. So thank you very much for being so committed and so involved and so engaged with your company. I trust that as all the questions have been answered, and we have taken due note of all your comments, the e-voting facility will remain open for the next 30 minutes. Members who have not yet cast their vote are requested to do so. As all businesses as per our agenda have been transacted, I therefore declare this meeting as closed, subject to completion of voting by the shareholders present through VC or OAVM, the scrutinizer shall present a consolidated report on remote e-voting and voting at the AGM within 48 hours of the conclusion of this meeting. The results of voting shall be submitted to the stock exchanges, and will be placed on the website of the company by your very favorite company Secretary, Mr. Vijay Devadiga, and I'm particularly happy to note that almost every shareholder praised the efforts of our secretarial department. Vijay and Ritesh, you both deserve full commendation and congratulations. I thank all shareholders for attending the meeting. Be safe, be healthy and take care of yourselves. Thank you very much.