SURANA STRIPS LIMITED
Ladies & Gentlemen
On behalf of the Board of Directors and, on my own behalf, I extend to you
all a warm and cordial welcome to this 14th Annual General Meeting of the
Company. The Director's Report and the Audited accounts for the year ended
31st March 1994 together with the Auditor's Report have been with you for
sometime, and with your permission, I take them as read.
The past year has been a year of remarkable changes as far as the Indian
economy is concerned. These changes have resulted in the interplay of an
entirely new set of market forces, that have redefined quality,
competetiveness and customer preferences. These in turn have set exciting new
challenges for your Company. Responding to these challenges requires
development of a new focus for its activities, a restructuring of the
Organisation and retraining of its personnel. In fact it requires a whole
new corporate culture.
THE INDUSTRY VIZ A VIZ THE COMPANY
As far as the Steel Industry is concerned, the first half of the year was a
period of recession. The annual budget too did not offer any benefits to the
Steel Industry. It is a matter of pride for us that despite an unfavourable
environment, the company has achieved a Sales turnover of Rs.2,794 lacs
registering an increase of 38.73% over that of the previous year. The profit
after tax of Rs.108.53 lacs as compared to Rs.74.60 lacs of the previous year
also shows an increase of 45.5%.
Friends, a year ago, you invested your trust in us and today its only natural
that you reap its fruits. Though the compahy has gone public only in 1993,
its a matter of pride that we have been able to recommend a dividend of 15%
in the very first year to all the shareholders without going through the
normal gestation period.The total outflow on account of Dividend amounts to
Rs.51.40 lacs as against Rs.23.94 lacs during the previous year.
CURRENT YEAR'S PERFORMANCE
The current year's performance has been very encouraging. For the Six month's
ending 30th September 1994 the company will acheive a turnover of Rs.l9
crores as against Rs.14 crores during the same period last year. With power
cuts removed and with the resulting improvement in production, the company's
projected turnover is Rs.52 crores as aginst Rs.28 crores acheived during the
last year showing an annualised growth of 86%.
Our Corporate philosophy is embedded in one word 'GROWTH'. At Surana Udyog we
have endeavoured to motivate our Staff at all levels to achieve this
objective. People love challenges and perform best when they believe in their
organisation and its mission.
Your Directors see a bright future ahead for your company with the
consumption of Iron and Steel Products poised to double in the next five
years. The Expansion programme undertaken by the company for increasing the
rolling capacity for the manufacture of C.R. Steel Strips from 20,000 to
50,000 Mts has been completed and well accepted by the Market. The Company's
diversification into high value added items like 'E.D.D. Quality' is expected
to result in substantial increase in profits. On the Export front, the
company is already exploring the possibilities of Exports to Bangladesh and
things are at an advanced stage. Friends, we have a dream and we need your
good wishes and support to realise it.
I take this opportunity to thank my Colleagues on the Board for their
valuable guidance and to thank the Government Authorities, the Financial
Institutions, our Bankers, our esteemed Customers and the Shareholders for
their Cooperation and support. I also wish to thank all the Staff and
personnel for their dedication and hard work.
I conclude with the following lines
"HAVE DREAMS, BECAUSE IF DREAMS DIE, LIFE IS A BROKEN WINGED BIRD THAT CANNOT
G. MANGILAL SURANA
CHAIRMAN AND MANAGING DIRECTOR