Global economy :
It has been several months since the pandemic engulfed the world andyet there is a lot of uncertainty with respect to the extent of the economic contractiondue to this crisis and the subsequent pace of recovery. This year will see an economiccontraction but this 2020 recession is turning out very different from the pastrecessions. It has been too sudden - almost off the cliff; its spread has been allencompassing - affecting almost every economy and sector and the plunge in economicactivitylevels and employment has been unprecedented. On the positive side this recessionis likely to be one of the shortest assuming no second wave of the pandemic recurs.Around $9-trillion stimulus from different governments globally will help to support thisrecovery along with the monetary actions by Central banks. These policies will also helpto restrict the second-order effects like defaults and bankruptcies. Some scars of thecrisis will remain in the form of subdued consumer and business confidence. TheInternational Monetary Fund (IMF) and other agencies are predicting that it could takeabout 5-6 quarters for global GDP to inch back to pre-crisis levels and the globaleconomic trajectory thereafter will be below the Pre-COVID trajectory for the next fewyears. As the world emerges from the current crisis the next few years are likely to bemarked by lack of buoyancy in growth subdued commodity prices and inflation a cautioustrend in project investments heightened risks of deglobalization and politicaluncertainty; and increased dependence of financial systems on ultra loose monetary policyconditions. We will also have to watch out for potential Post-COVID changes in consumerbehavior (such as more virtual engagements) and of operating models of organizations (suchas work-from home norms diversification of supply chain risks more use of e-commerce).
Indian economy :
COVID-19 struck India at a time when the underlying economic conditionswere subdued on account of heightened global uncertainty and stress in the domesticfinancial system. Against this backdrop a stringent national lockdown to slow the spreadof the pandemic started in the last week of FY20 and remained active to varying degrees indifferent geographies through most of the Q1 of FY21. It is estimated that about 80% ofIndia's GDP originates from districts which were classified under the red and orangezones during the lockdown where economic activity remained severely constrained.Correspondingly India's GDP is likely to contract in FY21 which would be the firstsuch instance in over four decades. The contraction is estimated to be particularly severeduring Q1. Responding to this challenge both the Reserve Bank of India (RBI) andGovernment of India announced several policy measures to provide relief to the affectedsections of the economy to reduce the possibility of business failures and to support theprocess of recovery. Government has initiated some remarkable reforms in agriculturemining and public sector enterprises. Such pragmatic policies - along with the ambitiousNational Infrastructure Pipeline program that the Government had announced in December2019 - will support India's medium-term growth rebound. In the interim however theIndian economy - like the global economy - will need to navigate through some difficultquarters. Performance ofyour Company :
The year ended March 2020 was a good year for your company. The Companyduring the year recorded a turnoverof Rs. 8023.74 Lacs in 2019-20 as against Rs. 10242.22Lacs in 2018-19 with a net profit after tax at Rs.414.13 lacs as against Rs.671.48 Lacs.We remain confident that your company will also perform well during the current year too.New Developments :
New development includes NC Metal Cutting Bandsaw Machines as well aslarge capacity Carbide Circular Sawing Machines are at final stage of trials. We hope toget good market in domestic and export market. Pipe and Tube division has developed stateof the art very economical and highly reliable "On Line Burr Free Fly Cutoff'for conventional tube/pipe mills. Import substitute development of custom built machinesis progressing well and hope to do more in this segment. Stainless Steel Pipe/TubeManufacturing equipment market is expected to grow rapidly accordingly 4 new models arebeing developed for domestic market.
The domestic demand for company's products is expected to remainbetter. Apart from Designing and Manufacturing activities Company's Tradingdivisions are also expected to perform well.
We remain committed to improve the Shareholders value towards this endwe are continuously looking for the opportunities and are upgrading the infrastructurebefitting to the same.
To Our Teams :
The support of our Shareholders Business Associates Valued CustomersBanks and Financial Institutions has always been a source of strength to us and we thankall of them wholeheartedly for remaining the integral part of our growth story. I alsowish to thank all the employees for their devoted efforts in bringing up the company tothe present level.
DIN - 00256515