SURYO FOODS & INDUSTRIES LIMITED
On behalf of the Board of Directors of the Company, I welcome you all to
the Seventh Annual General Meeting.
The Audited Balance Sheet and Profit & Loss Account for the year ended 31st
March, 1996 together with Directors' Report have been with you and with
your permission I will take them as read.
POST LIBERALISATION SCENARIO
The year past has not been an entirely easy for the Indian Industry. An
unprecedented liquidity crisis, made worse by a lacklustre capital market,
volatile exchange and interest rates necessitating repeated interventions
by the Reserve Bank of India, political uncertainties concerning the
Government policy towards Foreign Direct Investments and growing
infrastructural constraints were some of the features that had pulled back
the growth of the industry. On the upside, however, has been the
determination of Indian Industry to ride these out without waiting for
administrative sops from the Government. It is this inner confidence of the
industry in itself that perhaps has been the single largest contribution of
The Indian economy today reflects fundamental strength with sustained
export growth, substantial reduction in the current account deficit as a
proportion of GDP, and spectacular growth in foreign direct investment
since 1991-92. But the year 1995 - 96 also witnessed slower monetary growth
accompanied by a deceleration in growth of bank credit for the commercial
sector, largely due to a huge increase in net RBI credit to the Central
Government. This situation has led to banks lending at interest rates in
the range of 17% to 20%, despite a drop in inflation below 5%. Such high
real interest rates could hamper the growth of production. The recent
reduction in the CRR by one percentage point announced by the RBI has eased
the situation a little bit. The pace of reforms in banking and capital
markets has been maintained with the auto nomous regulators, RBI and SEBI,
ushering in significant policy changes. In spite of strong export growth at
21% in dollar terms in 1395-96, the balance of payment came under some
pressure due to consistent import growth, high debt service commitments and
decline of inflows from external sources. However, due to the RBI's
unrelenting efforts, the foreign exchange market stabilised at around Rs.
35.60 per Dollar in September, 1996.
In retrospect, the events of recent times have sown the seeds for
transforming the Indian economy into a globally competitive strong economy.
YOUR COMPANY'S PERFORMANCE
I am delighted to report that the results achieved in our last financial
year reveal a marked improvement. Turnover at Rs.1947.50 lacs was higher by
123.9% over the previous year. The profit after tax at Rs.164.07 lacs
recorded an increase of 101%. With our hatchery and farming sectors being
fully complete and operational, we should witness even faster growth in the
The Board of Directors has placed before you a recommendation for the
payment of 10% dividend this year, for your approval.
No vision or business strategy can be fulfilled without a strong, capable
organisation and the support of personnel focused on the tasks before them.
In today's business environment, especially in marine sea-foods, it is
imperative that any organisation which serves international interests,
should have both a global presence and internationally recognised quality
standards. The future of Indian aquaculture depends on, the improvements in
quality standards and farm management practices as well as market
diversification. Your company was conscious from the beginning of its
responsibilities in maintaining strict measures in production control and
quality standards and conforming well within the eco-envo parameters. You
may be aware that your company is presently exporting under the brand name
"SURYA" an established premium brand of the promoting company M/S SURYO
UDYOG LIMITED that has been included for its consistance supply of quality
products by USA FOODS & DRUGS ADMINISTRATION, known all over the world to
be extremely conscious of rigid health norms under its "A" list - a fact we
are proud of.
I am very grateful to the members of our Board for their valuable support
and advice which has enabled us to achieve the results.
I would like to thank IDBI, State Bank of India, MPEDA, Government
authorities, Suppliers, Foreign Buyers and other Business Associates for
their continuous cooperation.
I take this opportunity also to express my sincere thanks and appreciation
of the contribution made by employees at all levels.
Last but not the least, I am grateful to all the shareholders for reposing
their confidence and unstinting support and providing strength to us to
make the company a success.
I would like to end with firm assurance that this long, exciting journey
will take us from strength to strength. Hard work and dedication will be
required at all levels, but the rewards of perseverance will surely be
SRI AMARENDRA DASH
DATED : 27TH SEPTEMBER, 1996.