Heartiest greetings to you I would like to share with you performanceof your company during financial year 2017-2018. I think it was the year of decisionmaking for transformation of the company and the year which has laid foundation ofsustainable and profitable growth.
Your company had been facing challenges and difficulties for last 2-3years which is described to you with total clarity and transparency time to time. With thesame clarity and conviction we are confident and certain about the path to overcome thechallenges. The main priority was to reverse the trend of worsening financial position ofthe company. We have succeeded in recouping the faith from market which was lost due todishonest marketing staff in the past.
During the period the company has decided to focus in the states ofMaharashtra Andhra Pradesh Telangana Karnataka and Madhya Pradesh. We havere-established our goodwill in many potential pockets of these states. We had stopped ourBranches in Uttar Pradesh & Bihar where our recovery was poor. Supplying our productsto these states are limited to only against advance payments & the dealers are payingus advance due to demand for our products. This is a good sign for your company.
This season in Maharashtra our Paddy Cotton & Maize were sold inthe potential markets like Vidharbha & Marathwada & Konkan region with goodrealization. This will give us added advantage for the next year sale with very goodrealization.
As informed to you earlier the decision of discarding old inventoryowing to its deteriorating shelf life and making provision for doubtful debts havecollectively contributed in the huge losses of Rs.15.01 Cr in FY 2016-17 and Rs.20.76 Crin FY 2017-18. Due to above decisions the company's networth had eroded but it wasessential for the future of company. Placing the old inventory (with below averagegermination) in the market would have cost your company's brand image and goodwill earnedover the years. Your company never compromises on quality & is best known for itspremium quality seeds.
The promoters have so far provided an amount of Rs.6.55 Cr asinterest-free unsecured loan and it's moving on the right path. Such efforts of promoterscan turn around the company which is witnessed in the history of business.
For the FY 2018-19 as informed in my update dated 28/05/2018 inKharif 2018 as expected the monsoons arrived timely which boosted our sales and as perour expectation we could achieve a turnover of above Rs.12 Cr with major contribution ofMaharashtra. However soon the monsoons started playing hide and seek and the market gotaffected. The material started returning and the net sale we arrived at is Rs.9 Cr forKharif-18. Now we are concentrating on Rabi-2018. The initial reports of our cotton Maize& paddy in Maharashtra are encouraging & we will focus on showing the performanceof the crops to the farmers to generate next year sale.
I would like to further inform you that for transforming anddeveloping your company a Strategic Plan is framed for year 2018-2022 consistingfollowing elements:
Implementation of strategic framework to convert Research andDevelopment department achievements into profit.
Strategic targets for growth performance and cash generation.
Your company is following this roadmap to make this challengingtransformation happen positively for which your continued patronage and utmost faith ismostly needed.
Once again I would like to recall that your company is amongst thevery few seed companies in India having its own R&D with a team of highly qualifiedbreeders led by renowned Scientists. We are carrying out continuous research work for cropimprovement and development which makes the company sustainable for a very long time.Profit earning alone cannot be the benchmark for the company's performance evaluation.There are other factors also which has to be considered while evaluating performance ofthe company.
I would like to sincerely thank each one of you for your support andco-operation without which your company would not have been able to pass through thedifficulties.
Raghavendra Joshi Chairman