LETTER TO THE SHAREHOLDERS
Your company believes in being an anomaly. This year has been one of great economictests however; your company through robust strategic thought and action has adapted tothe slowdown in economic domestic and global growth resiliently.
The global economy demand slackened with a reduction in growth in major economies withfinancial disruptions and uncertainty in trade tensions between the US and China.
Growth in most Emerging Market and Developing Economies (EMDE) regions whichcontributes to around 59% of total global GDP has drastically underperformed reflectingdowngrades to almost half of Emerging Markets and Developing Economies. Furthermore theglobal growth decelerated to an estimated 2.4 percent in 2019 from 3.6% in 2018.
The Indian economy is forecasted a receding rate with at a 7-year-low GDP growth ratewhich precludes India's vulnerability to an extended economic slowdown. Adding to theweakened manufacturing and domestic and international demand; COVID-19 has created abreakdown in global supply chains at a time of organizations worldwide relying on thephilosophies of globalization. An already fragile economy and uncertainty of productioncycles Automobile sales in India across categories declined 19.08% in February as economicslowdown continued to hit demand.
Analysts predict further deceleration of Indian economy due to the economic spill overeffects of COVID-19. In India the growth and economic rebound is depend on the durationof lockdowns and the government policies to ensure a recovery. India to achieve a targetgoal five trillion dollar economy requires a 10-11% growth rate. The correlation to ourgrowth rate and progressive and incremental reforms by are government is supreme.
In an uncertain and challenging global environment last financial year your company ispleased to report a turnover of Rs. 4168.92 Lakhs for financial year ended March 31 2020as against Rs. 5609.46 Lakhs in the previous year.
Your company is focused on customer growth metrics and has successfully added new OEMsand Distributors which contributed in the overall revenue. The current status of yourcompany's new order book in the pipeline from both domestic and exports customers isvibrant and healthy. Your company's focus is to build a strong global brand committed toour vision mission and core values.
NRB Industrials bearing's vision is to be the leader in Friction Management in everymarket we serve for the betterment of our customers employeesand shareholders. Ourmission is to continuously create consistent value for our customers and supply chainpartners that will maximize shareholder value and long-term earnings growth. Internally wecontinuous aim to grow with a strong culture and progressive thoughts. This has allowedyour company to attract and retain talented and passionate professionals who furtherenhance our brand by providing dynamic thought and executable strategic value. With oursturdy and positively increasing order book coupled with your company's knowledgeable andexperience team your company has significant potential for further improvement inperformance.
Your company has been closely monitoring the status of the pandemic outbreak and itspotential unforeseen adverse impact. Anticipating the further time-scape of the currentrestrictions implemented by the Government of India across all States & UnionTerritories to curb the outbreak of virus in the coming days all our critical businessfunctions and support facilities have geared up to adapt to this novel working environmentto create a robust dynamic structure for business continuity with contingency plans intoaction.
Our top priority is the safety and well-being of our employees who are vital tosupport our customers and the communities we operate in. Considering the potential risksof safety we have implemented a number of preventative and precautionary actions withimmediate effect to ensure employee well-being and continued service of our customers.
Our hearts go out to anyone who's been impacted by the virus either directly orindirectly. Our thoughts are especially with those who are sick to whom we extend ourheartfelt wishes for a full recovery. And we're truly inspired by the selfless healthcareworkers around the world who are on the front lines working tirelessly to care for peoplein need. We wish the world comes out safely from this notified disaster soon.
We are grateful to our clients for their trust to our employees for their steadfastefforts and to our stockholders for believing in our strategy and its potential forcreation of value. At NRB Industrial Bearings we aim to be an anomaly and strive to meetto realize our growth potential in 2020-21 and beyond.
Stay Safe & Stay Healthy
Devesh Singh Sahney
Chairman and Managing Director
(DIN : 00003956).