Chairman And Managing Director
: Dear Shareholders
The FY 2013-14 was better than the FY 2012-13 for the global market. The sign ofrecovery is clearly visible. The IMF projected for the better development in the FY 2014& 2015 for USA Europe and China. The sign of turnaround from the slow down faced bythe last few years visible with the growth in the FY 2013-14. As per the projection by IMFthe economic growth in FY 2014 and 2015 will be better than the preceding years. Theyprojected that the economic growth in 3% in FY 13 3.6% in FY 14 and 3.9% in FY 15. Theinstability in the financial market particularly in southern part of the Europe has beenstabilized to the some extent. The slowdown in the economy of developed countries has alsoshown the recovery. We can expect better financial performance in the coming years thoughwe should also prepare for the unseen event which may bring back the instability likepreceding years.
Indian economy seems to be very positive in the following years and the slow downperiod has been facing for last few years has over. The economic growth of the companyhit by several factors in the preceding years firstly slow down in the global marketfinancial instability in the southern European countries and lately devaluation of theIndian currency in the last year. The last few months has shown the great recovery in thedomestic economy. The fiscal deficit managed to keep at 2.5% of GDP far less thanpredicted. The action taken by the RBI and finance minister has shown great results. Theyalso managed to keep inflation within the manageable limit. The budget passed by the newGovt. increase the hope for better growth in the upcoming years. The GDP for the FY2014-15 predicted at 5.5%.
These developments in the domestic market had negative effect on your company. Thecompany has been suffering through the cash crunch and the bank policies stringent inproviding financial assistance added further difficulties for operating the business ofthe company.
The company faced difficulty to operate for full season of the solvent extractionplants and paper plants. The management started the operation of solvent extraction plantsdue to shortage of fund and the unavailability of the quality soya bean in the domestichas to close down the solvent plant in middle of the season. The paper plants wereoperating at the best possible capacity in absence of sufficient funds but these plantsalso could not perform at its 100 per cent capacity and hence could achieve the productionwhich below the predicted by the management at the beginning of the year.
The Cement plant of the company also affected due to certain factors like prolongedmonsoon season non-availability of quality coal in the open market at reasonable costhigher freight charges delay in the bigger infrastructure project addition of newproduction capacity. The introduction of new financial and marketing policy helped thecompany to survive in the tough time. The management is hoping better performance in thefollowing years with the improvement of the economic growth in the domestic market. Thecompany continued to attract the finest talent of the industry. We have always believedthat our biggest assets are our people.
In the previous letter to the shareholders I informed that the company is facingfinancial stress and the company has been referred to BIFR for revival of the company. Thecompany achieved the turnover of Rs 24680 lacs (financial year consist of nine months)even in this adverse financial situation. The company earned negative profit of Rs 22831lacs.
The prediction of the experts is that the economic growth in the financial year 2014-15will be higher and the GDP will be around 5.5%. The management of your company stillconfident and its top priority is to speedy restoration of companys business healthand laying down the strong foundation for future growth. The management assures that theywill not hesitate to take any harsh decision to reorganize and to attain the prior gloryof the company.
Before I conclude my remarks I would like to once again thank you with the bottom ofmy heart for having been associated with us and partnering us in our corporate journey. Iconcede unreservedly that you have all along been the main architects of our fabuloussuccesses and do sincerely hope that the coming days would witness further deepening ofour symbiotic relations.
Chairman & Managing Director