We wish to place before you the performance of your Company in the year gone by andshare thoughts on Companys strategy for growth in the coming years.
During the year the Company recorded sales (Net of Excise Duty/GST) of Rs. 21655Lakhs as compared to Rs. 9717 lakhs for FY 2017-18 which is about 122% higher. Theprofit for the year was Rs 8867 lakhs as compared to loss of Rs. 3691 lakhs the previousfinancial year.
During the previous year the company continued its operations with severeworking capital constraints. On the other hand automobile industry in general saw demandpick up which forced us to fall in line to meet higher volumes and restore customerconfidence. Because of companys good reputation and customer confidence we wereextended moral & financial support by our major OEMs which helped us to tide overfinancial constraints to a large extent.
Our industry is highly dependent on medium and heavy duty commercial vehicle(M&HCV) industry. Automobile industry progressed well with the new emission norms andsaw good volume growth till the month of October 18 of the financial year. PostNovember there was downward trend in commercial vehicle market which affected our businessin last quarter and hence the growth in this last quarter was not in line with the firstthree quarters.
In Railways vertical we were able to get the company re-registered and got qualifiedfor G-105 registration. With this we were able to participate in Indian Railways tenderand received an order for 500 wagons amounting to Rs. 15000 lakhs. Besides this inRailway business we were able to get further order from a private lease company for 55 carcarrier wagons. This segment gives us a big opportunity for growth during the currentfinancial year and with the working capital constraints removed we are confident ofachieving higher growth.
As you are aware the Company had been facing liquidity crisis. With an intention tofind a resolution for the stressed asset Axis Bank ran a competitive bidding process toidentify an investor for implementation of the resolution plan involving change inownership of the Company in accordance with the provisions of the circular dated February12 2018 issued by the Reserve Bank of India on resolution of stressed assets. JupiterWagons Limited submitted an offer to acquire a majority shareholding of the Companysubject to certain terms and conditions. The Lenders gave their approval for implementingthe resolution plan involving change in ownership of the Company in accordance with theStressed Asset Circular.
Agreement was executed on December 1 2018 between the Company the Lenders and theInvestors to effect change in ownership and control of the Company and restructure theExisting Debt in accordance with the provisions of the Stressed Assets Circular and otherapplicable laws pursuant to the Resolution Plan
With successful implementation of this the company is now carrying forward Rs. 2387lacs debt which is required to be paid in 7 years. Besides this we have substantialamount for capital expenditure which needs to be incurred for the pending projects.Further fresh working capital has been provided by the lenders to run our businesssmoothly.
As an ongoing exercise management continues to focus on cost reduction and optimizationof resources and is working on proper restructuring of organization to be lean andeffective to achieve set objectives of the company. Severe pressure on cost remains achallenge for the company.
We thank our lenders customers and suppliers for their continued support and mostimportantly we appreciate the efforts taken by employees in this critical phase.
Finally we thank you for your continued trust confidence and support.
|Thank you || |
|Yours sincerely || |
|On behalf of Board of Directors || |
|P.Y. Gurav ||Abhishekjaiswal |
|Director ||Whole Time Director & C.E.O. |
|(DIN:020043171 ||(DIN:07936627) |