Dear Fellow shareholders
I have pleasure in welcoming you to the Eighteenth Annual General Meeting of yourCompany.
The global economic activities had remained very subdued on account of various factorsresulting in weak investor sentiments towards emerging markets. This had the impact on FDIinflows especially to infrastructure sector. Both the Government of India and RBI havebeen engaged actively in restoring macroeconomic stability to the economy. Their effortsare on to turn India into a manufacturing hub by initiating various programmes such asMake in India Skill India; and increasing investments in infrastructure digitizationeducation and health. Various steps towards ease of business and recent enactment of GST(Goods and Services Tax) are expected to be a game changers for India Inc. At the sametime relentless focus on cleaning up the Banking System through various measures such SDRS4A have significant implication for bank lending in particular and businesses in general.The reluctance of banks to lend to stressed assets including well deserving ones is quitepalpable. Working Capital funding has virtually disappeared forcing many operations todepend on expensive private funding. The manufacturing sector- the Achilles heel of theeconomy has failed to show an uptick.
There had been no major investment in infrastructure sector during the year underreview. This led to sluggishness in the realty sector. Investor activism and judgementsfavouring consumers by Courts have dampened further the spirit of Realty sector. Sinceyour company is dependent on this sector the performance of your company was affected andhad a nominal decline over previous year.
Two major regulatory requirements - IFRS / Ind AS (Indian Accounting Standards) andIFCFR (Internal Financial Controls Over Financial Reporting) have become applicable toyour company's accounting procedures and policies. Keeping their impact in mind yourBoard of Directors had made many forward looking decisions and have provided for doubtfulassets including receivables during the year under review affecting the pre-taxprofitability for the year.
Turning to the positives I am pleased to inform you that the five year tenure of theNon-Compete agreement entered into with Saint Gobain Glass (India) Limited at the time ofsale of the company's float glass plant has come to an end as of May this year enablingyour company to have relook into what the glass industry offers to Sejal. This may affordopportunities to your company to expand its product range diversify its customer baseleading to improved performance in coming years.
I'm optimistic about the future of glass and glass processing industries and envisagesignificant business potential in the ensuing years. Needless to mention that challengesabound on the road to greater prosperity
On this positive note I thank all the stakeholders of Sejal Glass Ltd for yourcontinued support and solicit your encouragement and appreciation going forward.
|Amrut S. Gada |
|Chairman & Managing Director |