My dear fellow Shareholders
Today the topic of discussion the world over is Impact of Covid 19 and as we are allaware there has been lockdown and unlocking going on in various parts of India and theworld as a whole. The economies of all countries have gone for a toss businesses aredown losses are piling up unemployment is staring in the eyes. Light at the end oftunnel is that research for vaccines are on and its is expected soon however today themantra is stay home stay safe and inline with this our Company has devised a work fromhome policy to enable the operations of the company to continue.The US-China trade war isaccelerating and tensions between India China post the border skirmish have risen andthere is a ban on Chinese products momentum in the country. The government of India andthe various states are trying their best to get the situation under control. With theunlock phases now businesses are slowly opening up but it will take time to recover to itsfull potential. There are several challenges viz labour movement unemploymentuncertainty of the spread of virus etc however we are all confident that things willimprove and with the new policies and stimulus package announced will herald a new era ofgrowth for the Indian economy.
The year under review has not been good for the Company as there have been varioussetbacks one was that there was no movement in the NSEL matter where the monies of thecompany are blocked however the company is hopeful that the Representative suit filed byus in the Hon'ble High Court of Bombay will culminate in the company receiving its dues atthe earliest.
The merger of the two subsidiaries M/s Modern India Property Developers and M/s ModernIndia Free Trade Warehousing Pvt Ltd has been completed with the receipt of the NCLT orderin July 2019. The construction activity at its South Mumbai location has commenced but dueto the pandemic and the migration of labour and lockdown activity in the last quarter cameto a standstill and we expect the same to recommence soon. The Company is also in theprocess of taking clearances for its Boisar project.
The renewable energy sector is also hit as with the lockdown the consumption of powerby the industries malls etc the main energy guzzlers came to a standstill so the powerwhich once used to fetch a price of Rs 5+ could not be sold in open market and hence theearning of the company were hit.
Your company's subsidiary M/s Verifacts Services Pvt Ltd has achieved a turnover of `20.19 croresas against 18.86 croresin the corresponding previous year upmarginally.Several new initiatives are in the pipeline and is expected to yield good results in thecoming years. Verifacts is undertaking many new steps to retain its competitive advantagethat it enjoys.
Your overseas subsidiary M/s Modern International (Asia) Ltd (MIAL) has registered aturnover of US $ 15875949for the year 2019-20 as against US$ 13755023 for theyear 2018-19.MIAL has set out aggressive growth plans and they are exploring opportunitiesin other emerging markets in Asia and in furtherance they have also opened a wholly ownedsubsidiary in Vietnam.
The company on a consolidated basis has achieved turnover of `193.21 croresasagainst`206.06 crores in the year 2018-19. Unfortunately the company has sustained a lossof `19.30 crores after tax in the past financial year; however we are optimistic thatthese losses will be contained and the Company will see a turnaround once the projectcommences. Due to the losses the Directors have not recommended a dividend for the year2019-2020.
As always we shall continue to strive to improve our performance.
|Best Wishes |
|Vijay Kumar Jatia |
|Chairman & Managing Director |