Global economy :
The global economy recorded a healthy growth of 3.6% in 2018. During the second half ofthe year however the global economy lost some momentum mainly on account of theincreased trade frictions between the US and China and the tightening of financialconditions. International Monetary Fund (IMF) expects growth to decelerate to 3.3% in 2019and its projections suggest that all three major engines of the global economy viz. USChina and Euro area are likely to decelerate in 2019. On the positive side however IMFexpects world economic output to recover and grow at 3.6% in 2020. Of late there havebeen a few growth-supportive factors such as the announcement of economic stimulus inChina and halt to the process of monetary policy tightening in developed countries. Butthe business sentiment has become somewhat clouded with challenges arising from theapparent setback to the US-China trade talks the spread of trade frictions to technologysectors and the increased intermingling of economic policies. These challenges signal thatglobal commodity prices could be under pressure.
Indian economy :
Indian Economy Indian economy exhibited mixed record in the just concluded fiscal. GDPgrowth slowed from 7.2% in FY18 to 6.8% in FY19. Sub-par rainfall in 2018 tight financialconditions faced by the non-banking financial sector and moderation of external demandwere the key challenges faced by the economy. Consumption growth declined during thesecond half of the year but there were some signs of revival in the investment cycle asthe rate of gross fixed capital formation improved from 31.4% of GDP in FY18 to 32.3% inFY19. Macroeconomic stability indicators broadly maintained their health. Low inflationhas created the space for monetary policy easing which will also help support growthrevival. The fiscal de cit target for FY19 was adhered to despite a shortfall in taxrevenues. While the current account de cit was high at 2.6% of GDP during the first threequarters of FY19 the softness in international oil prices portends its narrowing in thecoming quarters. Following the resounding political mandate for the ruling Governmentexpectations of further economic reforms and impetus to large infrastructure investmentshave been reinforced. These are reflected in strong inflows in the capital market takingequity indices to record levels in the weeks following the general elections. India'smedium-term growth prospects continue to be robust. Signi cant reforms undertaken in therecent years such as GST and insolvency code would raise India's growth potential in thecoming years amplifying theeffect of the long-term structural cornerstones of the Indiangrowth story such as demography and urbanization.
Performance of your Company :
The year ended March 2019 was a good year for your company. The Company during the yearrecorded a turnover of Rs. 10242.22 Lacs in 2018-19 as against Rs. 8386.89 Lacs in 2017-18with a net profit after tax at Rs. 664.97 lacs as against Rs. 507.99 Lacs. We remain condent that your company will also perform well during the current year too.
New Developments :
New developments as well as modifications in existing models have been made to suitChinese and Russian market where ITL Machines were exhibited in prestigious Internationalmachine Tool Shows. Similarly new low cost automation have been added to the machineswith Robotics for Indian and Overseas Customers. Development in Pipe and TubeManufacturing machine division will result entry in the Exports market too. New"Industry 4.0" standard will be necessary in future Machine Tools hencenecessary developmental activities have been started.
The domestic demand for Company's products is expected to remain better. Apart fromDesigning and Manufacturing activities Company's Trading divisions are also expected toperform well.
We remain committed to improve the Shareholders value towards this end we arecontinuously looking for the opportunities and are upgrading the infrastructure be ttingto the same.
To Our Teams :
The support of our Shareholders Business Associates Valued Customers Banks andFinancial Institutions has always been a source of strength to us and we thank all of themwholeheartedly for remaining the integral part of our growth story. I also wish to thankall the employees for their devoted the orts in bringing up the company to the presentlevel.
DIN - 00256515