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RSWM Ltd.

BSE: 500350 | NSE: RSWM |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE611A01016 | SECTOR: Textiles - Spinning - Synthetic Blended

BSE Live

Jul 10, 13:22
74.90 -3.90 (-4.95%)
Volume
AVERAGE VOLUME
5-Day
2,231
10-Day
11,259
30-Day
7,637
1,015
  • Prev. Close

    78.80

  • Open Price

    77.00

  • Bid Price (Qty.)

    74.90 (23)

  • Offer Price (Qty.)

    75.00 (6)

NSE Live

Jul 10, 13:22
74.85 -3.00 (-3.85%)
Volume
AVERAGE VOLUME
5-Day
18,396
10-Day
20,279
30-Day
30,073
9,721
  • Prev. Close

    77.85

  • Open Price

    78.45

  • Bid Price (Qty.)

    74.85 (141)

  • Offer Price (Qty.)

    75.00 (36)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Chairman's Speech

Dear Shareholder, The Financial Year of 2008-09 has been an exceptionally challenging one across the global economy. What started off as turmoil in the financial sector of the advanced economies has snowballed into the deepest and most widespread financial and economic crisis of the last 60 years. With all the advanced economies in a synchronised recession, global GDP is projected to contract for the first time since the World War II, anywhere between 0.5 - 1 percent (As per March 2009 forecast of the International Monetary Fund. The World Trade Organisation has forecast that global trade volume will contract by 9 per cent in 2009. The Governments and Central Banks around the world have responded to the crisis through both conventional and unconventional fiscal and monetary measures. Initiatives to stanch the bleeding include public capital injections, an array of liquidity facilities, monetary easing and fiscal stimulus packages. At the same time, there is continued debate on the adequacy of the fiscal stimulus packages across countries, and their effectiveness in arresting the downturn, reversing job losses and reviving consumer confidence. At the recent meeting in early April 2009, the G20 leaders collectively committed to take decisive, coordinated and comprehensive actions to revive growth, restore stability of the financial system, restart the impaired credit markets and rebuild confidence in financial markets and institutions. The acute degree of stress in mature markets and its concentration in the banking system has impacted the capital flows to emerging economies. The flight to safety of the capital and return of home bias has had major impact on the worlds major currencies. Since September 2008, the US Dollar, Euro and Yen have all strengthened in real effective terms. The Chinese Yuan and currencies pegged to the USD (includin those in the Middle East) have also appreciated. Like all emerging economies, India too has been impacted by the crisis. The extent of impact has caused dismay, mainly on two grounds: first, because our financial sector remains healthy, has had no direct exposure to tainted assets and its off-balance sheet activities have been limited; and second, because Indias merchandise exports, at less than 15 percent of GDP, are relatively modest. Despite the adverse impact, there are several comforting factors that have helped to India weatherthe crisis. 1. Our financial markets, (Banks particularly), have continued to function normally. 2. Indias comfortable foreign exchange reserves provide confidence in ourability to manage our balance of payments notwithstanding lower export demand and dampened capital flows 3. Headline inflation, as measured by the wholesale price index, has declined sharply. Consumer price inflation too has begun to moderate. 4. Because of mandated agricultural lending and social safety-net programmes, rural demand continues to be robust. The growth rate of Indian economy has slowed down to 6.7 percent for 2008-09 against 9 percent in 2007-08. India is back in the trillion-dollar economy club, thanks to the GDP growth and the recent rise in the value of rupee against that of dollar. This may be an indication that the economic slowdown may be less harsh in the coming months ard there may be a beginning of upturn. The Rs.3,00,000 crore stimulus package, the loan waiver of Rs.70,000 crore for the farmers, a raise in the salaries of government officials, and the development work on National Rural Employment Scheme have helped the cause of the GDP growth. An increase in the growth of consumption by the government has also contributed to the growth rate. The FY 2008-09 has been a year of dampened sentiments and demand, which has dented corporate margins while the uncertainty surrounding the crisis has affected business confidence. Risinc economic slack has contained wage increases and eroded profit margins. Investment demand has also decelerated. The demand for working capital finance during January-March 2009 from external sources has dropped due to slowdown in business, decline in commodity prices and drawdown of inventories, even as the availability of finance eased. The effects of the worldwide recession, dampened sentiments and demand, had major impact on the Indian Textile Industry. The textile exports from India were drastically reduced, which affected your Company as well, as exports had been \ accounting for around 50 percent of the revenues in the past few years. Inspite of that your Company was able to sell its production in the I Domestic markets but at far lower realisation. j Consequently, your Companys financial; performance suffered during the year. The details are given in the chapter on Management Discussion and Analysis, including what RSWMs Management proposed to do to lift its performance in 2009-10. Going forward, we hope that bold policy implementation that are able to convince markets of decisive handling of the financial strains can revive confidence and spending commitments. Still even with strong efforts by policymakers, financial market will take time to stabilize. Financial strains in the mature markets are projected to remain heavy until well into 2010. Emerging and developing countries are expected to face curtailed access to external financing in 2009 and 2010. Fiscal deficits are expected to widen sharply in both advanced and emerging economies, as governments are assumed to implement fiscal stimulus plans in G20 countries amounting to 2 percent of GDP in 2009 and 1.5 percent in 2010. In this era of exceptional uncertainty, there is a need to pool in all the resources at disposal and at the same time conserve resources at hand. I am sure the Management will rise to the occasion and deliver. With best wishes. Ravi Jhunjhunwala Chairman