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S & S Power Switchgear Ltd.

BSE: 517273 Sector: Engineering
NSE: S&SPOWER ISIN Code: INE902B01017
BSE 00:00 | 31 Jul 15.85 0
(0.00%)
OPEN

15.85

HIGH

15.85

LOW

15.85

NSE 00:00 | 05 Aug 13.90 0.65
(4.91%)
OPEN

13.90

HIGH

13.90

LOW

13.90

OPEN 15.85
PREVIOUS CLOSE 15.85
VOLUME 200
52-Week high 36.85
52-Week low 12.50
P/E
Mkt Cap.(Rs cr) 10
Buy Price 14.45
Buy Qty 90.00
Sell Price 15.85
Sell Qty 800.00
OPEN 15.85
CLOSE 15.85
VOLUME 200
52-Week high 36.85
52-Week low 12.50
P/E
Mkt Cap.(Rs cr) 10
Buy Price 14.45
Buy Qty 90.00
Sell Price 15.85
Sell Qty 800.00

S & S Power Switchgear Ltd. (S&SPOWER) - Chairman Speech

Company chairman speech

Fellow shareholders

The year 2018-19 has been amongst the most difficult that I have experienced in the 30 years that I have been associated with S&S. Since our business has an almost equal presence in India and the UK so I will address the two situations separately.

In India for some reason that it is not obvious to me at least there is an acute shortage of both capital and confidence. Stung by the NPA problem and now compounded with the NBFC crisis all companies specially MSME's are being viewed with great caution. In the past even after the Global financial crisis of 2008 banks were supportive of companies needing growth capital but now it seems that they will not lend to anyone except those who don't need money! As a result the entire supply chain has been crippled dramatically creating a shortage of confidence and liquidity.

Amidst this our Indian business has done reasonably well by growing 10% in sales but have been hit in our margins. Sales have grown because we have been able to diversify our markets and now are selling to many countries in Africa besides our traditional markets in the SAARC and ASEAN regions. This will hold us in good stead in the future. Margins were however affected because of undue pressure on selling prices faced in some key markets and increase in commodity prices.

In the UK where Acrastyle is based the problem is unique. BREXIT has created a huge uncertainty in the minds of the entire eco system-customers suppliers contractors regulators causing a self-inflicted wound on an otherwise thriving economy and business. Pension schemes have also become a huge albatross around the necks of most businesses in the UK where the Govt has piled on higher and higher regulatory costs. This is counterproductive and is making the UK economy less competitive.

Because of the two factors Acrastyle has had a terrible year despite not losing any major order or losing market share. Our sales were down by 30% and an operating profit of almost 450K GBP turned into a loss of 400K GBP. Over and above we had to make an extra provision of 250K GBP for pension deficit because of Interest rates being reduced and the regulator changing some rules. This is our biggest challenge and we are working hard to find a resolution.

However amidst all this difficulty our company has grown stronger- we have developed more markets more products and invested in a new IT system. This is because we have confidence in our ability to emerge stronger. Our fundamentals continue to be to do business profitably fairly and with good customers to keep working capital tight develop our people and systems and work within our means. Our values of Integrity Humility and Initiative will continue to be the way we run our lives and our businesses and deal with society.

I am personally grateful to all our colleagues in India and England for their sincerity and to our Directors for their guidance.

Thank you and God bless

Ashish Sushil Jalan

Chairman