I have great pleasure in extending you all a warm welcome to the 37th Annual GeneralMeeting of your company.
The Annual Report for the year ended 31st March 2016 has been in your hands for sometime. With your permission I shall take them as read.
This year the Revenues were Rs. 233 Crores as against Rs. 242 crores in last year butwe have made a profit after tax this year. The reduction in the price of Raw Materials wasone of the main reasons of reduction in Sales value along with deferment of some customerschedules.
In the year in progress the regulatory measures declared by govt. in regard to olddiesel vehicles will result in revival of the auto and auto ancillary industry. This yearthere have been a number of new customers and new products and wherever we have firmorders we are investing in machine lines which would be resulting in value addition tothe top line as well as bottom line would improve. Also we got business which would ensureof utilization of Forging capacity.
In the last year we have not been able to control some of the expenses particularlythe manpower and freight. Recently we have made structural changes in the organization tocurtail manpower cost within Industry limits and have introduced some control measures toreduce spending on inward and outward freight charges. In current year we confident ofgetting fruits of the make in India campaign of our government and expect to get more andmore business in the periods to come.
As usual we have been very careful about the compliances and also have been prompt insettling financial commitments. Your company has consistently retained CRISIL rating A forlast many years.
The Board has recommended a dividend of Rs.2 per share which is a 20% dividend.
I introduce you to the new members on the Board of your Company who are highlyexperienced in their respective fields. Mr. Abhijit Sen who has worked as Head of Financefor CEAT Tyres and Citibank and currently an Advisor to a renowned International firm ofChartered Accountants. Mr. Vishwas Chitrao has worked as CEO for Tata Motors in India andhas headed their operations in UK and USA and is having long working experience with theTATA Group. Their joining the Board would be a great asset for your company.
I am very happy to inform you that a number of Shareholders visited our plant andshowed interest in understanding the operations and gave valuable suggestions. I inviteyou to take similar participation in future. As usual our employees and all stakeholderscustomers suppliers bankers financial institutions and consultants and our InternalAuditors Cost Auditors and Statutory Auditors have extended a lot of support in workingof the company.
I thank you all for your time for this General Meeting. It is very encouraging for us.
With best wishes
Rohini G. Kalyani
(Chairperson & Managing Director)