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Remsons Industries Ltd.

BSE: 530919 Sector: Auto
NSE: REMSONSIND ISIN Code: INE474C01015
BSE 00:00 | 21 May 80.25 -5.75
(-6.69%)
OPEN

86.00

HIGH

86.00

LOW

80.20

NSE 00:00 | 21 May 82.40 -1.85
(-2.20%)
OPEN

84.00

HIGH

84.65

LOW

78.05

OPEN 86.00
PREVIOUS CLOSE 86.00
VOLUME 3224
52-Week high 150.00
52-Week low 71.70
P/E 8.39
Mkt Cap.(Rs cr) 46
Buy Price 80.25
Buy Qty 63.00
Sell Price 87.00
Sell Qty 150.00
OPEN 86.00
CLOSE 86.00
VOLUME 3224
52-Week high 150.00
52-Week low 71.70
P/E 8.39
Mkt Cap.(Rs cr) 46
Buy Price 80.25
Buy Qty 63.00
Sell Price 87.00
Sell Qty 150.00

Remsons Industries Ltd. (REMSONSIND) - Chairman Speech

Company chairman speech

REMSONS INDUSTRIES LIMITED ANNUAL REPORT 2007-2008 CHAIRMAN'S REPORT Dear Members, Ladies & Gentlemen, I welcome you all to this 36th Annual General Meeting of your Company. Indian Economy: India's current economy is passing through a very difficult period. Gross Domestic Product (GDP) for 2008-09 is expected to remain below 8%. Government is finding it difficult to check the high rate of inflation. Crude Prices are still very high. The barometer of capital market BSE SENSEX, which one time crossed 20000 has now come down to 13,000. With Foreign Institutional Investors (FII) continuously withdrawing their funds from Capital Market, the Country's Foreign Exchange Reserves have witnessed a steep decline. Though, Indian companies are doing reasonably well, the financial crisis at US will have an adverse impact on the Indian Economy. Industry outlook and Company's performance: The Directors' Report and Audited Accounts for the year ended 31st March 2008 are in your hands for quite some time and with your permission I propose to take them as read. The Automobile industry has become very much competitive and the Companies are frequently launching their new products and upgrading technologies in order to increase or maintain their market share. Performance of the Auto component industry is also badly affected owing to the steep rise in the steel and other raw material price coupled with the difficulty in passing over this burden to their customers. Your Company is also not an exception to this, though its performance was better than last year. While, Sales and other income (Net) were marginally higher at Rs.5,696 lacs as against Rs. 5380 lacs in the previous year, the Net loss was reduced to Rs. 116 lacs only as compared to Rs. 411 lacs in the previous year. Dividend: In view of loss, Board of Directors has not recommended dividend. Restructuring Plans: Company's restructuring plans have started yielding results. By centralizing operations mainly at Gurgaon and Daman, the Company has been able to control the administrative cost. Closure of loss making units followed by the disposal of the fixed assets shall have a positive impact on working capital with reduction in interest outgo. Current year's working: As you all are aware, the Company has reported a net profit of Rs. 13.29 lacs for the quarter ended June 30, 2008, as against a net loss of Rs.30.77 lacs for the corresponding quarter of the last year. I expect the Company to perform reasonably better in the current year. Exhorts: The Company is doing well in the Global Market too. With sufficient export orders in hand, the Company expects to maintain its export sales at Rs. 12 Crores in current year. Moreover, any depreciation in the value of rupee in terms of Euro shall have a positive impact on its export realizations. Joint Venture: Orscheln Remsons Technologies Private Limited, the Joint Venture Company with M/s Orscheln Products L.L.C. has commenced its trial production and the commercial production is expected to start from next month. The Company has hired technical and skilled staff and appointments at senior levels are also being made. Acknowledgements: Before I conclude, I must mention here that `Remsons' started its operation way back in 1959 as a small Partnership firm and in all these 50 years of span, it has never compromised with qualities of its products. The confidence poised in its products by the major automobile companies is a matter of great satisfaction and I assure all of you that very soon `Remsons' shall come back to its glorious and golden days. I am thankful to the State Bank of India for providing timely financial assistance to the Company. I welcome `Orscheln' Management, who opted to join hands with us. My sincere gratitude to my employees at all levels and to all the shareholders for the confidence poised on the management. I am also thankful to my colleagues on the Board for their valuable guidance at all times. V. HARLALKA Chairman