SKS LOGISTICS LIMITED
ANNUAL REPORT 2010-2011
On behalf of the Board of Directors and on my personal behalf, I welcome
you all to the 21M Annual General Meeting of your company.
The Annual Statement of Accounts together with the Directors' Report giving
details of your Company's performance during the current year (2010-2011)
have already been circulated. I have no doubt that from these statements,
you would have noted that, despite a continuing down-turn in the shipping
market world over and other factors already affecting the operations of
shipping companies in India, your Company has maintained its predominant
position amongst the Indian shipping companies and has achieved a good
profit (PAT) of Rs.3.27 crores. Your Company's Gross Profit of Rs 14.21
crores during this year is 3129r higher than the Gross Profit of Rs 3.45
crores in the previous year. Your Board of Directors have thus decided to
recommend a dividend @ 5% and I sincerely hope that you would approve the
same to secure best possible returns on your investment in this Company.
The Fiscal 2011 continued to be a challenging year for shipping industry as
a whole. The Shipping trade in India has been doing good of late, as
freight rates have gone up since the global financial crisis of 2008. This
is happening at a time when India's foreign trade continues to soar. This
can be seen from the fact the exports in April 2011 jumped to $23.84
billion (as compared to $17.74 billion in April 2010) registering a growth
of 34.42%. Similarly imports were also up by 14.13 per cent to $32.83
billion ($28.77 billion in April 2010). Similarly LPG markets have also
started improving on the back of improvement in global economy. There are
good growth prospects for LPG and coal demand in India in future. In my
view there is thus good prospect for the industry and the majors in the
industry will expand aggressively in future.
In Indian coasts, there are numerous power plants that are being set up
which require import of coal for which the type of vessels owned by your
company are regularly deployed. You will be happy to know that your company
is setting up massive logistics infrastructure which will cater to the
needs of bulk importers of coal, fertilizers etc. The company will provide
one stop all logistics support to such bulk importers right from chartering
of the ships to handling and clearance of such bulk cargo in the ports and
delivering the same to power plants or the factories located anywhere in
India by rail or roads. This will greatly lead to increase in the revenues.
The year ahead however also going to a challenging one. Though the
fundamental drivers of India's medium growth prospects remain intact,
certain global developments are likely to impact Indian economy in major
way. The Global economic and financial conditions will remain adverse for
some time now in the aftermath of natural disaster in Japan and the
lowering of credit rating of the United States recently.
Your company is in the process of setting up floating dry dock. I had
mentioned about this in my message last year. We have covered this in
detail in the Board of Directors Report under the heading 'Future
Projects'. You will also be happy to know about the KRIBHCO project which
is also covered extensively under the same heading.
Lastly on behalf of the Board of Directors and on my on behalf, I place on
record our sincere thanks to our customers, shareholders, bankers and other
stakeholders for their unstinting support.
I would also like to thank all the employees of the company for their
commitment and consistent efforts that helped us overcome several
challenges and look forward to their continued contribution as the company
grows from the strength within.
Chairman & Managing Director.