Speaking at its 30th annual general meeting (AGM) here on Wednesday the company chairman-cum-managing director Ramanathan said that many reason like high sales tax, competition in the market and open general licence (OGL) policy of the government, have forced the company to reduce the realisation price, which resulted decline in the net profit ratio during the last financial year.

Ramanathan said, "The company have already submitted the proposals to the Gujarat government to reduce the sales tax on purchase of naptha from Indian Oil Corporation (IOC), which is presently over 20 per cent. Secondly, we have also made a presentation rpt presentation to the government to get concession to backward area projects of gandhar and nagothane of Gujarat and Maharashtra respectively which comes under the interior -- backward category-I''.

Hefurther said as per government policy the projects which were located in the backward area I are entitled to get concession on purchase of raw material. The former chairman of Hindustan Lever and State Bank of India (SBI) SM Dutta and B Basu respectively were appointed as functional directors of the company.

The meeting which began with heated discussion between the chairman and shareholders following the by-passing the issue of disinvestment and decline in the profit ratio.

Later replying to shareholders query, Ramanathan said disinvestment issue is purely of central government issue since they have bulk of shares which is around Rs 1,400 crore and they wants to sell 25 per cent of this and the decision was taken at the Union cabinet meeting.