It is my great pleasure to present our annual Report for the financial year ended 31stMarch 2016.
There is a growth in revenue of 12.51% over previous year mainly due to increase inoffshore business by 11.21% and restaurant business by 31.65%.
The offshore business has registered a profit of 17.35% in the year compared to 4.57%last year.
However the FY 2015-2016 also continued to be under stress as far as the Oil & GasSector with the global oil prices remaining subdued and under pressure. The Companyprovides offshore catering & House-keeping services to the Companys engaged inOil Exploration Sector. The year 2015-16 was a year of significant upheavals for the oilexploration industry. This decline in crude oil prices was the sharpest since 2009 and hassteeply impacted the capital expenditure spending by oil exploration companies and inturn depressed rig charter rates and industry utilization towards the end of the yearunder review.
Accordingly the offshore sector saw no new notable Catering & Housekeepingcontracts and no major projects were declared nor undertaken both in Indian and ForeignWaters. Despite the above constraints we were able to get new clients in Rajasthan and fewsupply contracts in Mumbai and were also able to succeed in winning a tender for Catering& Housekeeping Contract on 3 rigs of the Oil & Natural Gas Company India (ONGC).The contract is for a 3 year duration and is totally valued at INR 20.67 Crores. Thisadded to the turnover and profit.
Domestically the Governments policy supported by harsh strictures by the Reserve Bankof India saw the Banking Sector Lending slowing down completely. This has resulted littleor no progress in the Manufacturing Sector. Continuous drought in Maharashtra has playedhavoc in the Whole Sale price Index of the Food Sector.
Existing Clients like Great Ship Ltd; Great Offshore Limited; and other Foreign clientshave been demanding discounts and reduced services to control costs and expenditure. Thishas further pressured the total turnover outlook for the next year.
Going ahead there is a possibility that lower oil prices may sustain for the next fewyears. However the Company is optimistic of managing industry downtrends on account ofthe robustness of its business model. The Company believes that it is attractivelypositioned to address the slowdown on the back of its operational effectiveness andincipient ability to rein in costs.
Your company decided to broad base itself and foray into the Onshore retail cateringmarket. Accordingly continued with the services at the Willingdon Catholic Gymkhana (WCG)and the Catholic Gymkhana (CGS) in Mumbai. Sales in both these gymkhanas dippedtremendously due to internal differences between committee members and a section of themembers. In WCG there were several raids from the Municipality Health Fire and Excisedepartments for irregularities resulting in the closure of two outlets for service andsevere restriction on the bar sale areas. In CGS similar fights and differences lead toclosure of a banquet hall and severe restrictions placed on guest members entries. Duringthis entire period not only was overall sales effected but there was no increase in menusale prices despite inflation.
Your company further expanded into the restaurant space again with a view to enterthe cash sale business and broad base its revenue base. The Fun Dining brand"MeSoHappi" (MSH) was curated and very well received by the food criticsbloggers and media. The first outlet was established on the high street area of LinkingRoad Khar at a considerable high rental for establishing the brand. Food sales wasencouraging even without a Bar Licence. Weekly licence has not shown any significantgrowth prospects for Bar Sales.
A Quick Service Restaurant format (QSR) was also established in the upmarket oppositesea face promenade of Carter Road Bandra.
A third outlet for MSH alongside a new Fine Dine Sea Food Speciality restaurant"The Captains Table" (TCT) was curated at BandraKurla Complex (BKC)Bandra. This outlet has a Licence to operate a full fledged bar.
Your company successfully listed in the SME platform of the Bombay Stock Exchange witha modest Offer for Sale of Rupees One Crore and Eighty six Lacs and twenty thousand. Thestock was oversubscribed by two times for a premium of Rupees Four per share. In a fewweeks time the market pushed the price to a high of Rupees Forty Four per share. Yourscrip was the proud recipient of the Bombay Stock Exchange award for exceptionalperformance of a new entrant in the SME sector.
Your Company has taken on long lease an independent Ground plus two-storey structurewith open land and it is planning to establish a warehouse cum food processing unit inTaloja in New Mumbai.
As a part of our growth plans the Company is exploring various possibilities to expandinto the Catering Housekeeping Facilities Management and Restaurant space includingOffshore and Remote sites in the Middle-east . Accordingly Your company has establishedan 100% subsidiary "CBCS International Ltd." In the Jebel Ali Free Zone Area(JAFZA) of the UAE. CBCS International has entered into a Joint Venture with a localcatering company "Mohammed Al Neyadi Catering Services" with a 49% shareholdingin the JV. The name of the company is proposed to be changed to "Arambhan Al NeyadiCatering Services"
All above growth plans into diversified segments and geography of the food sectoritself is planned to achieve stability and alternate lines of revenue. However a closewatch will be maintained for profitability stability and growth.
Continuous improvement in Human Resource development efficiency in processes andcontrols will be at the centre stage of activity lead by a dedicated and experiencedmanagement.