Dear fellow Shareholders,
I cordially invite you all to the 23rd Annual General Meeting of your
Company. While we witnessed difficulties in Indian and global markets
and the challenge of domestic inflation driven by global factors, we
appreciate the concern shown, the continued trust, confidence and
support of you all which enabled our steady performance. Your company
always believed in increasing its preparedness to face future
challenges and enhance its competitive position in the industry by
exploring new opportunities.
After successfully venturing in to the Non-Conventional energy segment
in 2006-07 by commissioning of the Wind Power Project with an installed
capacity of 9 MW at Kapatgudda, Karnataka State, your Company is
gearing to take yet another step by venturing into solar photovoltaic
(SPV) Industry. Your Company has formed a Joint Venture Company - M/s.
Surana Ventures Limited through which it is planning to manufacture SPV
modules, SPV Cells and wafers. M/s. Surana Ventures Limited has already
commenced the preliminary work for setting up its SPV module project,
at Fab City SEZ, Hyderabad. Your Company also intends to increase the
Wind Power Generation capacity to 20MW in the coming years.
During the year under review, your Company has recorded a decline of
11.11 % in the income mainly attributable to decline in the
contribution to revenues from the Real Estate and Infrastructure
segment of the Company from 29% to 10% only. The Indian Real estate
sector is witnessing a rough patch mainly due to IT/ITES slow down, sky
rocketing interest rates, and high rate of inflation. Though the short
term scenario of the industry is not so encouraging but, we believe
that long term industry outlook remains attractive, on account of
increasing urbanization, growing nuclear families and the increasing
number of Indian middle class. Fundamentally, strong GDP growth,
increasing tourism traffic and increase inper capita income coupled
with lower interest rates shall improve the outlook of the sector in
the medium to long term.
Your Board of Directors are pleased to recommend a dividend @ 30%for
the financial year 2007-08 on the equity share capital of the Company.
As we move into another financial year, we are confident that, through
our well planned long term, forward thinking strategies and the
strength of our core competencies & various initiatives, your Company
will achieve improved business performance over the years to come.
We continue to remain focused on maintaining strong relationships with
all our customers, suppliers, government bodies and all stakeholders. I
would like to take this opportunity to extend my deep gratitude to them
for their cooperation, continued support and trust. On behalf of the
Board of Directors, I would like to thank all the employees for their
continued commitment to the Company and the passion to face the
challenges in the Indian Economy.