On behalf of the Board of Directors and on my personal behalf, I
welcome you all to the 21M Annual General Meeting of your company.
The Annual Statement of Accounts together with the Directors'' Report
giving details of your Company''s performance during the current year
(2010-2011) have already been circulated. I have no doubt that from
these statements, you would have noted that, despite a continuing
down-turn in the shipping market world over and other factors already
affecting the operations of shipping companies in India, your Company
has maintained its predominant position amongst the Indian shipping
companies and has achieved a good profit (PAT) of Rs.3.27 crores. Your
Company''s Gross Profit of Rs 14.21 crores during this year is 3129r
higher than the Gross Profit of Rs 3.45 crores in the previous year.
Your Board of Directors have thus decided to recommend a dividend @ 5%
and I sincerely hope that you would approve the same to secure best
possible returns on your investment in this Company.
The Fiscal 2011 continued to be a challenging year for shipping
industry as a whole. The Shipping trade in India has been doing good of
late, as freight rates have gone up since the global financial crisis
of 2008. This is happening at a time when India''s foreign trade
continues to soar. This can be seen from the fact the exports in April
2011 jumped to .84 billion (as compared to .74 billion in April
2010) registering a growth of 34.42%. Similarly imports were also up by
14.13 percent to .83 billion (.77 billion in April 2010).
Similarly LPG markets have also started improving on the back of
improvement in global economy. There are good growth prospects for LPG
and coal demand in India in future. In my view there is thus good
prospect for the industry and the majors in the industry will expand
aggressively in future.
In Indian coasts, there are numerous power plants that are being set up
which require import of coal for which the type of vessels owned by
your company are regularly deployed. You will be happy to know that
your company is setting up massive logistics infrastructure which will
cater to the needs of bulk importers of coal, fertilizers etc. The
company will provide one stop all logistics support to such bulk
importers right from chartering of the ships to handling and clearance
of such bulk cargo in the ports and delivering the same to power plants
or the factories located anywhere in India by rail or roads. This will
greatly lead to increase in the revenues.
The year ahead however also going to a challenging one. Though the
fundamental drivers of India''s medium growth prospects remain intact,
certain global developments are likely to impact Indian economy in
major way. The Global economic and financial conditions will remain
adverse for some time now in the aftermath of natural disaster in Japan
and the lowering of credit rating of the United States recently.
Your company is in the process of setting up floating dry dock. I had
mentioned about this in my message last year. We have covered this in
detail in the Board of Directors Report under the heading Future
Projects. You will also be happy to know about the KRIBHCO project
which is also covered extensively under the same heading.
Lastly on behalf of the Board of Directors and on my on behalf, I place
on record our sincere thanks to our customers, shareholders, bankers
and other stakeholders for their unstinting support.
I would also like to thank all the employees of the company for their
commitment and consistent efforts that helped us overcome several
challenges and look forward to their continued contribution as the
company grows from the strength within.
S. K. Shahi
Chairman & Managing Director