My dear fellow Shareholders
This past year has been very challenging whilst markets are on an upward trajectoryfear is looming large on business houses with regards to reforms process. The move of thegovernment with regards to demonetization and the overall readiness of the GST regime areweighing in large on corporate houses. It is heartening to learn that our country's trystwith GST is finally seeing the light of day. Volatility in global markets seem to bestabilizing although it may be wise to tread a cautious path as the business environmentis heading towards a sustainable high growth era.
The NSEL debacle continues as the prolonged hearings of the merger writ continues. Thecompany's valuable resources being stuck have caused a major impact on the financials ofthe company. We are hopeful that the initiatives taken by the company will bear someresult and the investors shall get their money back at the earliest.
The government has recently notified the Real Estate Regulatory Act (RERA) and hassubjected all existing and new real estate developments to its provision. The company istaking adequate measures to ensure that it is in full compliance of the law. The companyis on track to complete the redevelopment of its South Mumbai properties and is in theprocess of taking clearances for its Boisar project.
The company has deferred the commissioning of its 2 MW Solar Power plant at SataraMaharashtra due to flip flop of policy by the government in the renewable energy sector.
Your company's subsidiary M/s Verifacts Services Pvt Ltd has achieved a turnover of Rs2144.11 lakhs as against Rs 1853.41 lakhs in the corresponding previous year a growth of15.68%. We hope to continue the growth trajectory that we are on. We have initiated manynew measures and are moving swiftly towards digitization and automation of operations toensure that we continue to have a competitive edge.
Your overseas subsidiary M/s Modern International (Asia) Ltd has posted robust growthin revenues and posting sales by registering a turnover of US $ 24.27 million for the year2016-17 as against US$ 10.82 million for the year 2015-16 a growth of 120%. We have takenvarious new steps to make sure that we continue on the path of growth and are certain ofmaintaining this momentum.
The company on a standalone basis has achieved turnover of Rs 5694.29 lakhs as againstRs 8053.36 lakhs in the year 2015-16. Unfortunately the company has sustained a loss of Rs435.25 lakhs after tax in the past financial year; however we are optimistic that theselosses will be contained and the Company will see a turnaround once the projectcommences.The Directors are pleased to recommend a dividend of 15% for the year.
As always we shall continue to strive to improve our performance.
Vijay Kumar Jatia
Chairman and Managing Director