It is my great privilege and honor in welcoming you all in this the 48th Annual GeneralMeeting of Lakshmi Precision Screws Limited.
The year 2016-17 has been slow by global downturn; the world economy is facingconsiderable uncertainties after major economic and political development and pressure onprotectionism at Global level. However we had performed competitively to registermoderate growth and have overcome challenges in the way to success. We expect that due toimplementation of AMP 2016-26 our country will be among the worlds top threeauto-producers by 2026. Indian Automotive industry is expected to contribute in excess of12% of Indias GDP and will create 65 million additional Job by the year 2026 anddefinitely we expect that your own Company will also grow in the same pace in spite offacing of temporarily hurdle on account of liquidity problem as your company establishedname in the market and has enough strength in terms of product range capacity and highstandards for quality to face the competition and financial crunches.
The Government of India has taken various steps and reforms to boost investment invarious Sectors in order to transform India into global manufacturing hub like Make inIndia Starts up India & Stand up India Indirect Tax reforms since Independence bypassing Goods and Service Tax Law (GST) and firmly decided for its implementation witheffect from July 01 which will make India as a market where one country one tax conceptbecome true which is expected to decrease inflation and make goods for common mancheaper and attract FDI boost Auto Sector Industry as well as generate new employmentboth in manufacturing and Service sector.
The latest budget the growth rate of India was 6.1 percent year-on-year slowingsharply from a 7 percent expansion in the previous period in the year 2016 and well belowmarket expectations of 7.1 percent. It was the lowest growth rate since the last quarterof 2014 due to a slowdown in consumer spending and a drop in investment following thedemonetization program of the Government of India for curbing black money. IndiasCAD has also come down to around 0.3 percent of GDP in first half of 2016-17 as against 1percent of GDP in previous year 2015-16.
Auto industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billionduring the period April 2000 to September 2016 according to data released by Departmentof Industrial Policy and Promotion (DIPP).
India is currently the sixth largest producer in the world with an average annualproduction of 24 million vehicles of which 3.64 million are exported and as per AMP2016-26 it will be among the worlds top three auto-producers by 2026. IndianAutomotive industry is expected to contribute in excess of 12% of Indias GDP andwill create 65 million Additional Job by the year 2026.
India has implemented Bharat Stage IV (BS IV) emission norms with effect fromApril 01 2017. AMP-2026 set the target that BS-V emission norms may be adopted by Indiain year 2019 for new models and BS-Vi to be adopted by 2023 for four wheeler vehicles
Although LPS has achieved many milestones and secured valuable works during the year2016-17 we have to work together closely as a cohesive family to take over corporation tolofty heights. We have to convert the various targets into reality.
There is a sense of pride in what we have achieved but we should not take rest at thispoint.
Despite all odds and financial crunches your company has managed to register aTurnover of Rs. 258.69 crores as against 309.91 crores of the previous year which showsnegative growth by 17% as compared to the Turnover of Financial year 2015-16 and net lossof Rs. 40.97 crores in current year 2016-17 as compared to net loss of Rs. 9.56 crores inthe previous year 2015-16. The Board of Directors has not recommended any dividend for theyear 2016-17 as the Company suffered the loss.
The faith bestowed by the shareholders in the management in the strength of the Companyand I assure you that your Company is committed to overcome the all odds and will registerthe sustainable growth of 29% in financial year 2017-18.
For achieving sustainable growth we shall redouble our efforts on one hand we arefocusing on a strategy to strengthen the existing lines of our business activities whileon the other simultaneously looking for diversification of opportunities in new areas ofbusiness keeping in view the suitability with our business model so that your Companycan draw benefit out of its considerable goodwill built over last forty plus years andtake the company to new heights. I would like to thank our precious customers businesspartners suppliers professional advisors and bankers for their continuous support andconfidence reposed in the Company.
I would like express my heartfelt gratitude for support and contribution extended theboard Members Committees of Board and shareholders of the Company for their valuableguidance and support in growth of the Company and wish your support and contributionlikewise in near future.
I would also like to conclude by the commending the hard work and sincere efforts putin by all the employees of the Company who stand with Company in this tough time andbecause of their invaluable and collective efforts the Company will achieve new heightsand glory.
We welcome always your invaluable suggestion and guidance for ensuring growth of thecompany at next level. With best regards
LALIT KUMAR JAIN