It gives me immense pleasure to present before you the 11th Annual Report ofR J Bio-tech Limited. Financial year 2015-16 was marked by a further slowdown in theAgriculture sector due to below normal monsoon and unseasonal rains. The Company navigatedthese challenges well and reported a good growth in its profit as compared to the previousyear. The turnover of the Company increased marginally by around 13% but the Company wasable to increase its profit after tax sizeably by around 55%. This was a result of focuson reduction of sales promotion expenses.
Because of the global ecological imbalance our Country has witnessed uneven rainfallsince last few years. This has a direct impact on agriculture sector specifically seedindustry. In such an unfavourable situation we need products which are not completelydependent on rainfall. In consideration of this fact the Company had launch two newcotton hybrids last year which have the potential to perform well even in unfavourableclimatic conditions. These products have been well accepted by the farmer community andgaining popularity amongst the farmers. In the financial y ear 2015-16 the production ofthese products was limited as we were waiting for the feedback from the farmers for theseproducts. After having a positive feedback from the farmers the production for theseproducts have increased widely in the financial year 2016-17 which will add up to theturnover of the Company in the financial year 2017-18.
Considering the need of an hour the research and development team of the Company is inprocess of developing more such products which shall perform well in unfavourable climaticconditions. We shall soon launch some new products.
The Company being listed on the SME platform of Bombay Stock Exchange is required tosubmit the financial result to the exchange on half yearly basis. In order to providebetter transparency and reliability to the Stakeholders the Company had decided tovoluntarily submit the financial statements to the Exchange on quarterly basis instead ofhalf yearly basis. Due to the seasonal nature of business of the Company the quarterlyfinancial show a lot of variation as compared to other quarters which might have anegative impact on the share price of the Company. To avoid this the Board of Directorsof the Company have decided to submit the financial statements to the exchange on halfyearly basis from the financial year 2016-17.
The Company continues to operate in 10 states with more than 1500 dealers. The Companyhad periodic programmes in the year to educate the farmers about the biotechnology andorganic farming.
I would like to take this opportunity to thank our dedicated employees who are thegreatest asset of the Company and who have with their hard work and commitment taken it tothis level. We also thank our stakeholders for reposing their confidence and faith in theCompany. It is your trust and commitment that inspires us to set high standards of growthand performance. We look forward to continuing on the path of excellence and profitablegrowth into the coming years.
Chairman cum Director
R J Bio-tech Limited