It's a pleasure to connect with you to reflect on the performance of CEBBCO in the lastyear and share our thoughts on CEBBCO's journey to grow in the future.
Clearly 2014-15 has been a subdued year for the company. On one hand commercialvehicle industry has not fully recovered from the preceding years of slow down and on theother hand our wagon manufacturing business has also not taken off as expected due toextremely competitive price pressures. Further new power plants have also been coming upat slower pace than expected affecting our sales of fabricated steel structures (HeavyFabrication) to Power projects.
The company has also suffered severe working capital challenges impacting our sales inthe year 2014-15.
Overall macro-economic performance of the Indian Economy and infrastructure growth willcontinue to play an important role in creation of opportunities for the Company and theCompany hopes to leverage these.
The expected improvements in the market sentiments and infrastructure growth are likelyto drive to the growth in volumes in the coming years.
In the Commercial Vehicle Fully Built Vehicle industry (FBV) the company isplanning to consolidate its position by regaining market shares and becoming a leadingplayer among authorized FBV manufacturers.
The Company's wagon manufacturing capability continues to be unutilized as the currentlevel of prices do not support viable business proposition. We are looking at otheropportunities in terms of wagon refurbishment and components/parts supply to Railways.
The Company's Heavy Fabrication business (manufacture of steel structures for powerplants) is also expected to grow in view of expected increased spending on powergeneration projects.
During the year the Company recorded gross sales of Rs 15238.40 lacs which is 18%lower compared to the previous financial year. Loss before tax and exceptional items stoodat Rs 6030.08 lacs compared to loss before tax of Rs 6773.11 Lacs in the previousfinancial year. The loss after exceptional items and tax for the year stood at Rs 10254.61lac against the previous years loss of Rs 7043.08 lacs. The loss for the year includes anexceptional item representing provision for impairment in the value of the fixed assets ofRs 6300 lac. This is a non-cash provision and has been done in accordance with theAccounting Standard AS-29.
In view of challenges faced we have been rationalizing costs and optimising productionacross our various plants. The Company will continue its efforts to improve coststructure improve working capital management and strengthen its balance sheet. We arepositive about the future with Government and policymakers in India serious aboutrevitalising the growth process.
The company is also planning to augments funds for working capital.
The Company continues to maintain its thrust on improving its share of business fromits customers and on exploring new products / applications / variants of current productsfor growth.
On the background of extremely challenging conditions over the past couple of years wehave indeed strengthened our resolve to grow the company from its current levels. Thecompany continues to enjoy support from its major customers viz. Tata Motors VECommercial Vehicles (VECV) Ashok Leyland and Man trucks in FBV segment and engineeringgiants like L&T Power and BHEL in heavy engineering.
I would like to convey my appreciation to the entire CEBBCO team for theirdetermination and efforts in this journey of the company.
The continuing support and co-operation of our loyal family circle of customersdealers suppliers financial institutions partners have been valuable to Your Company'swell-being and the same is much appreciated. I thank all of them for continued patronage.