Financial year 2021 was a year which defied normalcy. It was awatershed moment in the history of our nation and of your company as well. The Covid-19pandemic upended the world and caused unprecedented disruption in more ways than one couldhave imagined. The pandemic that started to disrupt the economic activity as early asMarch -20 peaked during the fiscal including a few months of almost complete standstillin the economy. And yet this year will define for many years to come the strength ofour collective will.
First half of the fiscal was a wash out because of extended lockdownsfirst nationally and then regional. The business started to pickup with reduced number ofcovid cases and the onset of festival and wedding season in Q3. Indian economy which wasfirmly on the path of recovery in the second half of FY 2021 was hit by a ratherunexpected virulent second wave of Covid-19. It has caused a severe strain on health carefacilities in many parts of the country leading to localized lockdown and fall inmobility levels seen a year ago. The double-digit GDP growth expectations for India in FY2022 have been pared back. As a silver lining disruptions to production and supply chainshave been less severe during the second wave than during the first wave.
Your company and group have been no exceptions to this phenomenon.Although the pandemic has affected all the business adversely but our company and groupwere hit by the same at the wrong time in as much as the fact that when the time to startearning from the project had arrived the first wave of the pandemic hit the world. Thesupply chains were disrupted. But for the support of the bankers under the ELCGS schemeit would have been a nightmare of time. We wish to place on record our gratitude towardsour bankers to have supported us in these unprecedented times. As the business wasrecovering itself to normalcy the second wave hit unexpectedly bringing the productionactivity again back to a grinding halt. The overall business performance has reduced byhalf for FY 2021 as compared to FY 2020 and your company has reported a loss for the firsttime in its history since inception. Your company being in textile processing falls in theCentre line of the value chain in the textile industry. The revival of our business isdirectly linked to uptick in the textile sector. With the gradual opening up of regionallevel lockdowns and mobility the production levels have started showing an upward graphand we are hopeful that by the end of the second quarter of FY 2022 the business levelswould reach the desired optimum levels.
I wish to thank my colleagues on the Board and team for respondingpositively to an unprecedented challenge and most of all I thank our shareholders for theconfidence and faith reposed by them in the Board and the Management team which has in myview geared up to take on more challenges. I can say with confidence the Company willimprove its performance further in the coming years. This is however only possible throughtireless efforts dedication and commitment of our team who have helped us reach where weare now and look forward to their continued commitment in the journey forward.
|With best wishes |
|Jignesh Shah |
|Chairman & Executive Director (DIN: 00256315) |