It is my pleasure to extend a very warm welcome to all of you to your Companys36thAnnual General Meeting.
I have great pleasure in sharing with you the highlights of another year of good growthand performance. During the year under review total income of the Company was Rs.23106.04Lacs as against Rs.22392.26 Lacs in the previous year reflecting Y-O-Y growth of3.19%. However due to adverse market conditions the EBDITA of the Company has beenreduced by 43.05% during the current reporting period i.e. Rs. 1707.78 lacs as comparewith EBDITA of last reporting period i.e. Rs 2998.86 lacs.
SEGMENTS PAPER DIVISION
We are pleased to inform to our stakeholders that to meet out the challenges ofrecession in our existing final product "Paperboard" the Company hasdiversified in to manufacture of "Newsprints" and started manufacturingNewsprints w. e. f. 01st July 2010.
Presently the Company is manufacturing the following Products:
a) Paper Board
b) Newsprints Benefits of Manufacturing Paper Board
1. Demand has been increased by reason of increase in the volume of packaged materialby consumers.
2. As the plasting bags are hazardous for environment hence demand of Paper Board hasalso been increased.
3. Almost manufacturing are based on orders/ demands hence the risk of spoilage areless.
4. Less expenditure on stock/ inventory management.
Benefits of Manufacturing Newsprints
1. Demand for Newsprints paper is increased.
2. The realization of payment is better with less risk of bad debts.
3. Final Product is exempt from Excise Duty.
The Hotel Division started its operation w. e. f. 15-02-2009 under the Brand"Country Inn & Suites" and having "FIVE STAR" category with 216Rooms. Due to increased room inventory and heavy competition in
Delhi NCR; the Average Room Revenue has steeply decreased and resulting low EBITDAmargin in Hotel Division. But with stable government more tourist flow the outlook forfuture hotel business seems positive.
The Company is taking necessary steps to perform better in coming years.
We would like to express that the hotel consists four restaurants- Tatva 3Bs 64/6 andKebab Factory. Each of them specialises in vegetarian cuisines across the country andabroad. The Coffee shop in the lobby with an exquisite collection of cakes and pastries isa centre of attraction for every age group. 3Bs the pool side restaurant is very muchpopular spot amongst the young crowd. Another restaurants- Tatva and 64/6 provides perfectlunch and dining experiences.
I would like to express my gratitude to our bankers for acknowledge the difficult phaseof economy and extended full support. Our bankers showed their faith in companysmanagement corporate governance and policies adopted by the company. I would like toexpress my gratitude to our Board of Directors for their unstinting support and guidance.I am also grateful to our entire stakeholder - our customers suppliers and employeeswho have reposed their trust in us and given us their constant support. With all theircontinued contributions I see the Company far ahead.
With best wishes
Salek Chand Jain