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Shri Lakshmi Cotsyn Ltd.

BSE: 526049 Sector: Industrials
NSE: SHLAKSHMI ISIN Code: INE851B01016
BSE LIVE 13:33 | 28 Mar Stock Is Not Traded.
NSE 15:31 | 10 Jul Stock Is Not Traded.
OPEN 1.81
PREVIOUS CLOSE 1.90
VOLUME 32116
52-Week high 1.82
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.81
Sell Qty 934.00
OPEN 1.81
CLOSE 1.90
VOLUME 32116
52-Week high 1.82
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.81
Sell Qty 934.00

Shri Lakshmi Cotsyn Ltd. (SHLAKSHMI) - Chairman Speech

Company chairman speech

Dear Shareholders

The year 2015-16 was yet another year of prolonged crisis. Our earnings have beensuppressed. But more than that we earned an unbroken faith of our stakeholders. We haveensured ethical and transparent measures in communicating about our challenges and relatedmeasures. The crisis has further allowed us to gain invaluable experience and made usstretch our limits. Our ability to survive the severest of adversities would have remainedunexplored if the conditions had been more conducive. We are now more accustomed to theimportance of sustainable growth and condent about our revival.

Reasons for stress

Last few years have seen a severe stress on the business operations owing to thefactors that were beyond our control. Although we were on course with our plannedexpansions the unforeseen events kept on following one after another.

The implementation of the proposed brownLeld expansion of terry towel plant from 3000TPA to 15000 TPA in 2008 had been delayed by a year owing to the then nancial turmoil. Asa result the entire project had to be treated as greenled expansion and shifted toAbhaypur at an internal expenses of Rs 50 crores

Mid-way cancellation of approved term loan of Rs 74.50 crores for Yarn Dyed shirtingproject in 2011-12 stalled the project commissioning

Partial commissioning of denim and wider width fabric project at Malwan and TechnicalTextile at Rewari Bujurg owing to delay in disbursement of funds from the banks led toadditional cost of implementing

Non-Receipt of TUF subsidy and working capital as agreed by the bankers under theCapital Debt Restructuring (CDR) Scheme led to incomplete commissioning of TechnicalTextile Project Yarn Dyed Shirting Project and Spinning Project

Liquidity problems further led to substantial cancellation of Institutional orders fromCRPF BSF MOD ITBF Assam Ries OEF and other Defence establishments; the non-timelydelivery of goods led to huge losses on account of cancellation of orders forfeiture ofBank Guarantees and liquidated damages@ 10 % of the Order value

Before CDR package the Company was getting working capital disbursement in piece-meal.Resultantly the funds could not be utilised on time for generating revenue.

Revival on the cards

Our current market capitalisation does not reec t true value of our business. Resizingdebts to suitable levels will provide adequate security cover for incomplete expansionsand substantially enhance for equity. A nominal capital ino w can add new machinery to thecurrent infrastructure of the Company to enhance productivity leading to higher growth. Itwill also activate our unutilised manufacturing and technical textile capacities whichwill provide huge upside to the Company. As such we are exploring to raise short-termdebt of Rs 250 crores to fund the capex and working capital requirements. We are alsoexploring options of right-sizing our bank debts to a sustainable level through ARC and/orOTS route.

Looking forward with optimism

The same pioneering spirit powers us today to evolve adapt and take bold decisions inchallenging times and ensure our success once the liquidity crisis improves. We areprogressive in outlook independent in spirit and collaborative in approach. Leveragingon the strength of our most valuable asset our people we are rising up to the challengesbefore us. Collectively we strive to stay focussed and achieve real and sustainablerebound.

I would like to thank our customers suppliers and all the stakeholders for theirdedication and support even during the tough times. We are committed towards improving ourcurrent operational crisis so as to build a stronger and sustainable future for ourCompany and our associates.

Warm Regards