Letter to Shareholders
On behalf of the Board I'm delighted to report another year for Galaxy Bearings as wecontinue our focused efforts towards pursuing our long term objectives. Our strengths inthe areas of metallurgy part design and global foot-print and skilled talent base remainthe focal points around which we continue to invest. While giving you a glimpse of ournear-term strategies despite the year 2019-20 being marred by uncertainties andvolatilities we continued working closely with our customers - helping them mitigate allthe ambiguities. We navigated through the challenging situation with our prompt anddecisive actions while constantly delivering value for all our stakeholders.
The global economy demand slackened with a reduction in growth in major economies withfinancial disruptions and uncertainty in trade tensions between the US and China. Growthin most Emerging Market and Developing Economies (EMDE) regions which contributes toaround 59% of total global GDP has drastically underperformed reflecting downgrades toalmost half of Emerging Markets and Developing Economies. The Indian economy is forecasteda receding rate with at a 7-year-low GDP growth rate which precludes India'svulnerability to an extended economic slowdown. Adding to the weakened manufacturing anddomestic and international demand; COVID-19 has created a breakdown in global supplychains at a time of organizations worldwide relying on the philosophies of globalization.An already fragile economy and uncertainty of production cycles Automobile sales in Indiaacross categories declined 19.08% in February as economic slowdown continued to hitdemand. Your company has been closely monitoring the status of the pandemic outbreak andits potential unforeseen adverse impact. Anticipating the further time-scape of thecurrent restrictions implemented by the Government of India.
Our top priority is the safety and well-being of our employees who are vital tosupport our customers and the communities we operate in. Considering the potential risksof safety we have implemented a number of preventative and precautionary actions withimmediate effect to ensure employee well-being and continued service of our customers. Ourhearts go out to anyone who's been impacted by the virus either directly or indirectly.Our thoughts are especially with those who are sick to whom we extend our heartfeltwishes for a full recovery. And we're truly inspired by the selfless healthcare workersaround the world who are on the front lines working tirelessly to care for people in need.We wish the world comes out safely from this notified disaster soon. We are grateful toour clients for their trust to our employees for their steadfast efforts and to ourstockholders for believing in our strategy and its potential for creation of value.
I thank all the stakeholders for placing their trust and confidence and look forward toyour continued support.
Stay Safe & Stay Healthy.
|Bharatkumar Ghodasara |
|Whole-Time Director |
|Galaxy Bearing Limited |