As eminent members of SRS you would know that our energy comes from an endless desireto impress our customers. We work zealously to inspire customers with a long term visionto deliver outstanding performances. As a fact it is our customer-centric way which isthe defining element of our culture.
Our company has been built on a strong underlying business approach guided by ourvalues and vision that have allowed us to develop a strong customer base and helped usestablish SRS as a leading brand. Steered by our strong sense of commitment we continueto implement our strategies backed by an inspiring team that delivers strong performances- despite a highly volatile and challenging business environment.
2015-16 was a challenging year for SRS; we tried to optimize the resources but were notable to and thus due to strike in the last month of FY 2015-16 could not serve the Bankinterest and got D-Rating.
The Indian economy has traversed during the course which it has stepped up to itsgrowth trajectory over successive decades. Notwithstanding the slowdown in the economyOur Company is not an exception and got badly affected by the economy slowdown.
Considering all our segments: JewelleryCinema Retail and Food & Beverages weenjoy a robust foundation that has supported growth across almost all our lines ofbusinesses. We have demonstrated our capabilities across productscustomer segments andmarkets and intend to continue to leverage this solid platform to achieve our aspirationsand deliver value to our stakeholders and customers.
With each passing year our SRS Parivar grows bigger. However in F.Y. 15-16 the PATstood at Rs. 15.98 Crore declined by 58.85% as compared to last year's 38.81 Crore. EPSreduced from 1.39 to 0.57.
However despite being low in figures if we look closely at our individual capacitieswe have achieved several milestones in each business sector. With the cinema exhibitionbusiness segment we had added 2 multiplexes one in Muktsar Punjab and another inKashipur Uttrakhand. Currently we are prominently present in major regions includingHaryana Uttar Pradesh Punjab Himachal Pradesh Rajasthan Uttrakhand Bihar and newaddition in Jharkhand. For cinema segment 2015-16 was our year where we had producedinternationally competitive theatres established SRS as a leading cinema exhibitor in thecountry. We are now present across 22 properties 17 cities and 8 states with 62 screens.Our customer centric approach has helped us achieve our goals and targets efficiently andwe have positioned ourselves as popular choice among movie lovers.
Contributing to around 90% of company revenues our gold and jewellery division faced afew challenges this year. Following the jewellers strike that initiated against 1% levy inexcise duty in Budget of Financial Year 2016-17 which continued from 2ndMarch 2016 to 27th April 2016 has deeply impacted the jewellery businessresulting in severe loss of revenues cash crunch and liquidity issues.
Due to strike in the last quarter the revenues of the company have decreased to thetune of 52% during the last quarter ended 31st March 2016 as compared to thequarter ended December 2015 and the company suffered huge losses during the last quarterin comparison to profits earned in other three quarters.
The Company was unable to serve the interest for the quarter ended 31stMarch 2016 and thus our account slipped to NPA (Non-Performing Assets) Category.Consequently credit rating agencies revised the rating to "D" and thus ourshare price plummeted to a low. As the Company was not able to make timely payments to itsDepositors on time we have filed a petition before National Company Law Tribunal (NCLT)for extension of time for repayments.
On a positive note our keen understanding of the market combined with strategicalplanning we have taken measures to revive our growth and streamline all processes toovercome all shortcomings. Through the following measures we strive to initiate therevival of our organization:
Closure of non-profitable outlets of jewellery
Closure of loss making Food and Beverages units
Reduction in salaries of KMP's
Reduction in day to day expenses
Improved turnover through the businesses of the company
Improved business conditions in the market
Recovery from Debtors
At the retail forefront we delivered another year of significant growth. We haveintroduced 7 new stores establishing a multi-level presence with stores in significantlocations such as Lucknow Delhi NCR Kurukshetra and more. With a continued focus on themiddle and upper middle consumer segment we have established a multi-city presence in ashort span of time. Today we have a total count of 28 stores.
To build a stronger foundation for the future we also started some strategicallycritical initiatives that I believe if continued have the potential to change the DNA ofthe organization for the better in the medium to long term timeframe. And I have no doubtthat as the spirit of excellence penetrates to all parts of the company it will lift theproductivity and the pride of our employees. We all want to be part of an organizationthat needs and expects our very best.
We are a morally bound community striving to give back to the society what it hasgiven us in immeasurable terms. As a conscientious corporate organization we believe increating goodness around us. Celebrating 25 years of Corporate presence of SRS Group aunique CSR initiative has been undertaken and we donated an automatic sewerage cleaningmachine to Faridabad Municipal Corporation. This remarkable initiative was highlyappreciated and has set a benchmark for other business groups as well. Additionally SRSSocial Welfare Association organized a Self-defense course for over 150 girls inFaridabad empowering women to be more independent in life. We also organized a blooddonation camp in Faridabad which witnessed many volunteers who came forward andcontributed towards the community. Through this drive we successfully managed to raiseawareness on the importance of donating blood and saving lives. We have donated winteruniforms and schoolbooks to 610 students of Government Senior Secondary School ofFerozepur Kalan village in Faridabad. These all initiatives were undertanken during the1st three quarters.
Every organization experiences ebbs and tides. The growth of SRS has been a collectiveeffort and we work with a positive attitude to recover its growth journey. I would like tothank our associates partners and vendors for their unwavering support and trust in SRS.On this podium it is quite essential to owe our gratitude to our esteemed clients for thetrust and acceptance and of course to our employees who have been the vertebral column ofthe leading periphery performance. As we step into a new phase of vitality and revival wecontinue to rely on this support and confidence.
The seed planted nearly thirty years ago has germinated and grown into such a huge treeof life bearing good fruit enjoyed by both employees and clients alike. There are timeswhen institutions go through challenges. Despite this we have forged ahead to be where weare now to become an instrument in transforming the lives of many. We have always promotedthe thought "Sab Rahen Sath" as we strongly believe that sustainablesuccess comes from staying together as a team and realizing extraordinary victories.
Currently I can say that SRS touches the lives of at least a 20 million peopledirectly and indirectly. We provide services to about 1500 clients and offer employment toover 2000 people not forgetting their families whose lives are also touched by theemployment we offer. We are indeed transforming lives and want the support of all thestakeholders
Dr. Anil Jlndal