Managing Director's Statement
It is my privilege to present to you the 17th Annual Report of SAAG RR Infra Ltd("the Company", "SAAGRR").
The Company's focus has been to ensure timely execution of projects and to achieveturnaround by restructuring its business and finance.
Your Company successfully progressed by completing construction of the 29 storiedresidential building for Hiranandani Realtors (P) Ltd and has earned accolades in theindustry. During the year the Company has also completed construction of residentialapartment for ETA Star Techcity (P) Ltd. In a highly competitive market it has secured Rs20 Crore order from M/s Cordon Bleu Properties and Infrastructure (P) Ltd for constructionof residential blocks in Coimbatore.
The Company's turnover increased to Rs 15.3 Crores during the financial year April1,2011 to March 31,2012 as against Rs 13 Crores in the previous year. Due to financecharges and higher provisions made the Company incurred a net loss of Rs 25.31 Croresduring the financial year 2011-12 as compared to Rs.8.72 Crores in the previous year.
As a step towards turnaround of its operations, the Company is exiting the workoverrigs segment and plans to focus its attention on the infrastructure business.
The Company is looking to argument long term funds through private placement ofsecurities and utilise the funds for restructuring of its existing borrowings and forworking capital. This would alleviate Company slowly into growth track.
Status of International projects
Earlier in December 2010, SAAG RR's subsidiary OGS Asiapac Ltd had secured an EPCCcontract worth USD78 million from Mrails Tram (Melaka) Sdn. Bhd. and is awaiting clearancepursuant to a public hearing. SAAG RR in December 2010 had received a letter of award fromGarisan Etika Bangladesh Pvt. Ltd. wherein SAAG RR was selected as the nominatedsubcontractor for civil, preliminaries and mobilization work for the 2x36 MW combinedCycle Power Plant at Adamjee Export Processing Zone, Bangladesh. This project ispositioning to achieve full financial closure and the project is expected to be completedby end of 2014.
Your Company has extensive experience in the construction field. The Company islooking to concentrate and focus on its core competence area -infrastructure.
Prospects for world economy in 2012 are seen to be challenging due to the Euro zonecrisis and uncertainties in global economic growth. However, Government of India is keenin development of infrastructure in India with the estimated investment of $1 trillionduring 2012-17 and it is expected that nearly half of this investment would be channelizedinto construction projects. This has opened up several opportunities for industries ininfrastructure and construction sector. The Company is looking to bid aggressivelyand enhance its cashflows in the years to come.
Changes in subsidiaries
The Company as on,31st March, 2012 had three subsidiaries viz, SAAG Energy Limited,Workover Rigs (India) Limited (formerly known as QEDi Proteus Energy Limited) and OGSAsiapac Ltd. However, Workover Rigs (India) Limited ceased to be a subsidiary of theCompany with effect from June 5, 2012.
On behalf of SAAG RR Team, I would like to place on record our heartfelt appreciationto all our stakeholders for their support and confidence in SAAG RR. I also thank ourBankers, suppliers, clients and other financial institutions for their continuous andextended support. Finally, I appreciate and value the contributions made by all ouremployees and their families and thank them for their support during these difficulttimes.
With Warm wishes