LETTER TO SHAREHOLDERS
Nothing definesa Company as distinctly as its employees and shareholders, and theelement of a Company that best encapsulates a societys values and beliefs are itsshareholders. As promised last year the company has been looking towards new fronts todevelop and spread its wings into new forte. There has been increased production from theClean Room, the modern generation bags with higher cleanliness and hygiene.
Being with your company for the past twenty years I would first like to place mysincerest regards with those who have traveled this journey along with the Company, andhave sailed along during the troughs and highs. As a human passes through various cyclesof aging, so does a Company, the past few years though have not been very fruitful but thecompany has done its best to fight the turbulent situations. The environment with the everchanging interest conditions, the highs and further highs of inflation and with the entireeconomy hit by the financial crisis, the environment can be termed as turbulent. The otherfactors such as the power shortage suffocating the Companies especially in Tamil Nadualong with the labour shortage has impinged on the Companys bottom line. The ReserveBank of India raised its repo rate for the tenth time since March 2010 and said it willpersist with its battle against inflation,even as growth slows in Asiasthird-largest economy.
We at Jumbo Bag know that slow growth persists in India nevertheless the Company istrying and making sure that it leaves no stone unturned. It is believed that the strongestof flames and hardest of hits makes the best of swords. We at Jumbo Bag, by Jumbo Bag I amreferring to the management and to the employees who are the two strong pillars of theCompany, believe that tumultuous environmental conditions and difficult internalconditions shall, when faced, lead to ultimately making the Company the best of its kind.
To make itself better with every step, there are collective preparations to face therisks, and your Company has equipped itself such that all the risks that are inherent inthe industry could be diversified. It has been a difficult decision for the Board ofDirectors of your Company to make regarding declaring no dividends, however thefinancialsof the Company with an increased top line owing to the fluctuating cost ofmaterials has the managements hands tied. The Companys order positions are good.Your Company has private power purchase plans in place to curb the non availability ofpower. These factors would certainly lead to a better performance from the Company in thecoming years. Having its feet firmly fixed for a year now as the Del-Credere Associate cumConsignment stockist for Tamil Nadu, Pondicherry and Kerala for Indian Oil CorporationLimited the Company expects good returns from this endeavor too.
Finally I would like to request all the Shareholders to avail the opportunity and toattend the Annual General Meeting of your Company.