The business landscape has seen rapid changes in recent years. Winning in today's worldrequires new business models agile ways of working and a fresh strategy design andtechnology vision. We believe that growth opportunities are vast for those who make asuccessful transition to the New business models and align harmoniously with the New waysof working.
It gives me immense pleasure to present you the 17th Annual Report of your Companyalongwith the financial and operating performance for the Financial Year 2016-17. TheCompany remained committed to its purpose of making sustainable living commonplace acrossthe value chain.
Global economic activity is picking up slowly with long-awaited cyclical recovery ininvestment manufacturing and trade. A rebound in confidence and more upbeat economicsentiment suggest that perceptions of risks have diminished in recent months.
With many pro-business initiatives of Government such as implementation of GST alongwith the expected improvement in regional demand of conveyor belt your company is poisedfor growth during forthcoming years. All necessary measures are being taken towardsachieving the targeted goals during the current year.
During the FY 2016-17 the performance of your company has been impacted with eventsunfolding in the economic environment prevailing in the Indian Conveyor Belt Industry.Despite adverse situations your company has achieved Turnover of Rs.6514.40 Lakhsresulting in increase in Company's Total Revenue by 13.33% whereas owing to shrinkingmargins the Net Profit of the company has declined to Rs.84.83 Lakhs (decrease in profitsby 62.93%).
At this point we are not unduly concerned with the pressure on our margins due toproblems currently faced by various business segments - coal cement etc. While we expectthis to continue for the next one or two quarters we continue to remain optimistic ofhigher margins in FY18.
More importantly the management believes that the demand for Conveyor Belts will growat a faster pace in near future as day-by-day demand for conveyor belts in Industries suchas Coal & Lignite Iron Ore & Mining Cement Power Steel Fertilizers Sugaretc is increasing.
Somi has always been a responsible Corporate committed to fulfilling its Legalobligations. Your company has been taking initiatives towards strengthening its commitmenttowards principles of sound corporate governance. It has met this objective bystrengthening transparency and disclosure norms; putting in place an effective frameworkof checks and balances for efficient functioning; having a Whistle Blower Policy SexualHarrasment Policy and a Risk Management policy; RTl and numerous other steps.
1 would like to take this opportunity to thank all the Board Members each and everyemployee whose hard work and commitment has taken us to this level as well as those whowork with us across the value chain for their unstinting support and hard work in theservice of our Company. I would also like to thank you our shareholders for yourcontinued trust in the business. It is your trust and commitment that inspires us to sethigh standards of growth and performance and continue to deliver high returns to ourstakeholders. We took forward to continuing on the path of excellence and profitablegrowth into the coming years
i also express my gratitude to all the Members of our Board and to our valuablecustomers whose trust and confidence in Somi Conveyor Beltings Limited both inspires andencourages us to overcome challenges and scale greater heights of performance andexcellence year after year.
Many thanks and kind regards
0 P BHANSALI
Chairman and Managing Director