I am happy to present the Annual Report for the year 2014-15.
The year 2014-15 continued to be another challenging year. The current
economic situation, domestic and international, is weak and these are
not the times when we can continue with business as usual. This environment
is clearly reflected in the muted development of core sectors of Indian economy
and especially in manufacturing sector. Insuch times, the country needs a
push from its central government to infuse investments and rekindle growth.
Already, the stock markets have displayed positive expectations.
Prime Minister''s Make-in-lndia campaign is arrived to facilitate
investments, foster innovation and build best-in-class manufacturing
infrastructure. The initiative also brings to light the challenges
faced by Indian manufacturing sectore specially since it has been
stagnant. It is well anticipated that several infrastructure projects
which are under hold at the moment, will get government clearance. This
will immensely help your company. I believe the economic turn-around is
underway but the recovery will be gradual.
With the above economic conditions, your Company''s business was also
adversely affected. We have acknowledged the need to think differently
in these trying times. To address this we have tried to penetrate
markets and new areas of growth. We are re-structuring our efforts to
make sure that we explore all growth possibilities in this area. As a
part of our measures to professionalize the management and to broad
base the Board of directors, we appointed Vinayak N Bapat and
AnandHunnur as Managing Director and Director - Sales respectively.
Recently we appointed Ashok Misra and Janaki Kirloskar as Directors of
your company. The Company will be immensely benefited by their
expertise in the respective fields.
While in this difficult market, we are adopting all possible measures
to mitigate the losses, at a time when there are pressures on cost in
terms of lower demand, slower project execution and clearances,
increase in interest burden, lower turnover. Your Company is taking
continuous steps to overcome these challenges by improving efficiency,
productivity, and execution capability and enhancing skills of human
resources by a continuous process of learning & development but at the
same time also see its impact in short term.
Recognizing the need to strengthen operations of this company, we
decided to put stop on fresh investments in LDW. As you are aware, last
September, LDW had applied for insolvency.
Going by the prudent and conservative accounting policies, your company
has made enough provision to recognize impairment in value of its
investment in LDW. It was an extraordinary situation needing
extraordinary solutions too. To address the situation which arose out
of this, we undertook financial and operational re-organization of your
company. I am happy to mention that with a crucial support of the banks
we are already through with our financial reorganization. During the last
year, the promoters too had infused fresh capital in the company. I
acknowledge your support in approving all the needed and relevant
resolutions from time to time. We are continuing with our efforts to
further strengthen balance sheet and resource base of your company.
In these difficult times, the Company has looked inwards and is trying
to emerge even stronger to even further strengthen its competitive
positioning in the next few years. It is beginning of a long path. It
is a difficult task, yet I am seeing changes and can expect better days
Few of the strategies that company is adopting for operational
reorganization are as below:
1. To improve market share for its products.
2. Realigning supply chain and procurement.
3. Product designs optimization and reduction in material cost through
several initiatives such as optimizing procurement, reverse engineering
and value engineering, product and performance benchmarking.
4. Eliminate avoidable costs.
5. Use of capital sparingly & efficiently.
I express my sincere thanks to shareholder, lenders, bankers, financial
institutions, vendors, customers and all other stake holders. I express
my sincere thanks to the employees of Company for their active
involvement and support during the hard times.
Vijay R Kirloskar