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Lakshmi Energy & Foods Ltd.

BSE: 519570 Sector: Agri and agri inputs
NSE: LAKSHMIEFL ISIN Code: INE992B01026
BSE 15:40 | 16 Jan 31.45 -1.10
(-3.38%)
OPEN

32.05

HIGH

32.90

LOW

31.10

NSE 15:31 | 16 Jan 31.25 -1.35
(-4.14%)
OPEN

32.75

HIGH

33.00

LOW

31.00

OPEN 32.05
PREVIOUS CLOSE 32.55
VOLUME 74268
52-Week high 77.00
52-Week low 27.20
P/E 3.30
Mkt Cap.(Rs cr) 232
Buy Price 31.70
Buy Qty 2.00
Sell Price 0.00
Sell Qty 0.00
OPEN 32.05
CLOSE 32.55
VOLUME 74268
52-Week high 77.00
52-Week low 27.20
P/E 3.30
Mkt Cap.(Rs cr) 232
Buy Price 31.70
Buy Qty 2.00
Sell Price 0.00
Sell Qty 0.00

Lakshmi Energy & Foods Ltd. (LAKSHMIEFL) - Chairman Speech

Company chairman speech

Dear Shareholders

I am pleased to share with you that your Company is enjoying leadership position in themarket in the matter of providing hygienic and healthy food including the best aromaticrice to the domestic and international consumers for the last more than 25 years.Company’s plants are equipped with the latest automatic machinery imported fromJapan Germany Denmark and USA which set the highest standards for the most modern foodgrain processing plants in India and state of art biomass based power plant producing‘green energy’. Despite the recessionary conditions prevailing world wide yourCompany has registered a sales of Rs. 10214.39 million for the financial year 2016-17. YOYgrowth comes to 11.67%. There are wide fluctuations in the prices of rice in general andbasmati rice in particular. This has affected bottom line of the industry and your companyis not an exception yet we have been able to reduce the losses

FY 2016-17 EBIDTA was positive by Rs.1284.55 million as against negative EBIDTA ofRs.489.64 million last year. The management has taken various steps for increasingprofitability of the company losses after taxes significantly year ended 31st March 2017as against losses of Rs.931.61 million during last year. The Management is takingeffective steps to curtail the expenses and increasing the efficiency on all fronts.

Despite our best efforts certain external factors continued to give challenges to theindustry but we are balancing the factors of agri-business with our power generatingbusiness. It has been observed that basmati rice is losing its sheen due to less demandboth in domestic and international market and keeping this in view the management issimultaneously shifting its focus on non-basmati segment which has very good demand andalso generates good price realisation as well as by-products. The restructuring schemeapproved by the bankers of the Company could not be taken forward on account of variousreasons beyond the control of company. Despite repeated requests by the Company bankersdid not release WC as per approved restructuring scheme due to which the Company could notmake the desired procurement which has greatly affected the production and profitabilityof the Company during the year. Realising this banker’s i.e. joint lender’sforum (JLF) have agreed to consider the accounts of Company under S4A scheme of ReserveBank of India. In view of the decision of Joint Lenders Forum (JLF) the company is in theprocess of implementation of S4A (Scheme for Sustainable Structuring of Stressed Assets)as per RBI guidelines with reference date 21 June 2017 and thus able to reduce the and toRs. 11.12 million for this scheme is likely the to be completed in December 2017.Decision of lenders to consider the accounts of the company under S4A scheme of RBI is apositive move towards sustained long term growth for the company as it will result in thereduction of substantial cost of debt servicing which will have positive impact on all thestakeholders such as shareholders farmers commission agents Government bankers etc.

Presently we are putting more focus on the production side of the business and wewould be able to recoup the situation. Your company has recorded sale of Rs.1278.96million during first quarter of FY 2017-18. Biomass based Power Plant of the company isadding to the bottom line.

The overall atmosphere is positive and I am confident that this will be so in futurealso. I place on record my sincere thanks to our board of directors for their outstandingsupport. I would also like to thank the stakeholders and shareholders as well as employeesof the company who are working tirelessly to achieve the objectives of the company. Iwould also like to express my gratitude towards our customers dealers suppliers bankersand other associates for their continued support.

Best regards

Balbir Singh Uppal

Chairman and Managing Director