The year under review was challenging in various respects comprising aslowdown in the global and Indian economy as well as the impact of a pandemic whose impactbecame perceptible starting from the last quarter of FY 20. Due to short-term visibilityand macroeconomic uncertainties a further assessment for the current year is not possibleat the moment. The pandemic will be affecting production create supply chain and marketdisruption and will result in financial impact on almost all organizations. The scenariois too uncertain to predict the demand. The Company will endeavour to sustain the currentchallenging phase in a prudent balanced and agile manner and emerge stronger from thecrisis to normalise operations with agility and resume on the growth and expansiontrajectory i n times to come.
As per the Reserve Bank of India COVI D-19 the accompanying lockdownsand the expected contraction in global output in 2020 weigh heavily on the growth outlook.The actual outturn would depend upon the speed with which the outbreak is contained andeconomic activity returns to normalcy. Significant monetary and liquidity measures takenby the Reserve Bank and fiscal measures by the Government would mitigate the adverseimpact on domestic demand and help spur economic activity once normalcy is restored.
Global economies are opening up gradually. India too needs to get backto its full capacity at the earliest to be the successful economy that it aims to be. Thepandemic presents a unique opportunity for India and its industries to increase influencein the global supply chain. The government's favourable policies to boost rural economyand small /medium scale industries are also likely to act as long-term growth catalystsfor the sector.
We believe polyester will be the fibre of the future ' which encouragedus to foray in to this business with confidence. The company has focused on evolving newproducts development unlocking the hidden potential of existing products for newapplications and the company will be able to navigate through the current crisis becauseof its fundamentals committed teams and a diversified portfolio of synthetic yarns.
We acknowledge the fact that the operating scenario continues to bechallenging owing to the COVI D-19 pandemic further impacting consumer confidence andpurchasing power. However our approach is to stay close to our customers understandtheir challenges The Company has also accelerated its cost optimisation drive across thevalue chain to further improve its operational efficiency. The execution excellenceinitiatives pursued to optimise efficiencies reduce cost and eliminate wastage has beenadopted across functions and processes. The worst will bringthe best out of us.
Sumeet has always been driven by determined corporate governance whichhas enabled us to accomplish our goals and create value for our stakeholders. I take thisopportunity to thank for continued trust and confidence in the Company by ourStakeholders Bankers and thanks to our esteemed Board of Directors for their constantguidance and support. I am also grateful to our customers for reposing faith in ourcapability to serve them and employees for their relentless efforts and our community forits support and understanding.
Shan karlal Somani