It is my privilege to present the Annual Report 2016-17 of your company. Year bygonecontinued to be subdued especially for Engineering and Capital Goods Industry. Investmentsin Private sector is still sluggish however in Public sector investments are improving.
The results of the year 2016-17 showed marginal rise in Revenues as compared to theprevious year. Income for the year is Rs.8336 Lakhs as against Rs.8207 Lakhs in theprevious year. More importantly the year ended up in small profit of Rs. 17 Lakhs (beforeexceptional Items) as against Loss of Rs.195 lakhs in the previous year. The Board ofDirectors has recommended a dividend of (10%) Re. 1/- per share.
The FY 2016-2017 opened with optimism but domestic investments did not pick up asexpected. But with high hopes of expected growth in coming years your company continuedinvesting in shop capacity and human resources.
As of now Indian economy seems to be poised for growth which will be consumption ledas well as investment led. Infrastructure plan of the Government of India should lead tooverall pick up in the economy. GST apart from adding in growth percentage will see risein investments. There could be some short terms hiccups as GST gets rolled out but incoming years supply-chain investments including ware-housing and material movement willopen up new vistas for Material Handling business.
In Engineered Products Division where we serve segments like DefenseEducation R&D Labs and Private Segments like Auto Engineering FMCG etc newinvestments are happening more selectively. We continue to focus on Technical servicesbusiness and in years to come your company's focus will be sharper. We do believe growthin investments in segments like space and defense modernization plans and productdevelopments in private sector will give good boost in coming year. We are selectivelyadding business partners here to widen our product basket in the sectors we operate.
The Material Handling market continues to be served by domestic as well asimports. Toughened competition - global & local -continues to put price pressure andmarket share. We have continued to invest in Sales personnel on shop floor for Qualityand capacity which alongwith support through SAP/ CRM/Training helped the Division topost 20% revenue growth which was instrumental in improving bottom line. One of the futuretrends will be customers outsourcing their material handling needs and your company plansto be significant corporate player in this space as well.
Subsequent to the end of Financial Year 2016-17 the Company has acquired 60% (6000equity shares of Rs. 10/- each) of MHE Rentals Private Limited (MHE Rentals). As a resultMHE Rentals has become a subsidiary Company. MHE Rentals is engaged in material handlingrental business.
Proposed Right Issue
The Board of Directors of the Company at their meeting held on 13th February 2017have approved raising funds upto Rs. 10 crores by way of issue of Equity shares on rightbasis. The Committee of Directors has been appointed to determine the terms and conditionsof Right Issue including the Rights entitlement ratio the issue price issue size timingof the issue and other matters in consultation with Lead Managers to the Right Issue. Theletter of offer will be issued after obtaining necessary approvals of the concernedauthorities.
Human Resources and Talent Management continues to be focus areas through Training- Technical and soft training identifying high potential team members and providing themwith an appropriate growth path.
I would like to thank all our employees customers vendors business associatesMembers of our Board Shareholders and all the people associated with the company fortheir support and faith in Josts.
| ||With Best Wishes |
| ||Jai Prakash Agarwal |
|Mumbai 15th May 2017. ||Chairman |