MASCON GLOBAL LIMITED
ANNUAL REPORT 2009-2010
Dear Fellow shareholders,
The year 2009-2010 will mark as one of the toughest years in our history.
The year started with initiation of liquidation process of our private
equity investor who also lent against some of the acquisitions and provided
During the year we were forced to repay considerable sums of money to them
as also suffer from them bringing down working capital limits from $20 mm
to $5mm. We also believe that one or more of the private equity investors
liquidated stake(s) held in the company thereby depressing the value of the
This placed considerable pressure on the company's finances leading to
backlog to most stakeholders. We have managed to clear most dues but are
left with the aftermath of this serious dislocation.
MGL has always been a company with outstanding management team and fostered
fantastic team spirit. The above events seriously dislocated the band of
confidence that accompanies great teams.
We have continued to deliver without interruptions to our clients and this
is a great achievement and symbolizes MGL spirit. The company is solvent in
spite of the tough events of 2008-10.
While I am personally confident of stabilizing the company in 2010-11, the
challenges are enormous and daunting. The team that we have is among the
best in the industry and with its support, I am confident that we will do
all that is necessary to rebuild the Company in a manner that forever
insulates us from the set of events that overtook us in 2009-10.
The US economy, our prime market is getting back on track though
outsourcing has become a difficult issue and the business models have to
change. I am confident that the Company will overcome this hurdle and
continue its growth path.
I thank all our stakeholders including our employees, clients, banks and
the shareholders for their forbearance during this difficult time.
Sandy K. Chandra
Chairman and CEO, MGL