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Shri Lakshmi Cotsyn Chairman's Speech > Engineering - Heavy > Chairman's Speech from Shri Lakshmi Cotsyn - BSE: 526049, NSE: SHLAKSHMI

Shri Lakshmi Cotsyn

BSE: 526049|NSE: SHLAKSHMI|ISIN: INE851B01016|SECTOR: Textiles - Processing
Shri Lakshmi Cotsyn is not traded in the last 30 days
Shri Lakshmi Cotsyn is not traded in the last 30 days
Jun 13
Chairman's Speech (Shri Lakshmi Cotsyn) Year : Mar '15
Dear Shareholders,
 As you all are aware about the adversities your Company has faced over
 the past three years owing to unfavourable circumstance, we have not
 given up. We have survived in bad times through our strong zeal which
 kept us going despite the external adversities. Our determination,
 focus and positive mindset and more importantly our self belief has
 played a big role in developing a sense of optimism.
 So when we say its just a matter of time before something happens, we
 mean that we are sure that the turnaround is going to happen very soon.
 We are rejuvenated and ready to bounce back in a bigger and better way.
 There had been multiple reasons for this prolonged bad phase that the
 Company has been facing. The non availability of TUF subsidy put a
 grinding halt to our ambitious Rs 1,400 crore expansion plan.
 Furthermore, banks delayed its disbursement in 2010 and 2012, combined
 with high cost of Mezzanine debt in 2011 and volatile fluctuations on
 cotton and yarn prices put immense pressure on our working capital and
 day to day operations. Substantial orders from defence & paramilitary
 forces were cancelled due to shortage of working capital, causing huge
 losses. Resultantly, the company underwent financial stress and was
 obligated to file reference to the Board for Industrial and Financial
 Reconstruction in terms of the provisions of section 15(1) of Sick
 Industrial Companies (Special Provisions) Act 1985 vide registration
 number 45/2014. All the necessary steps have been ensured to meet the
 necessary compliances.
 We have secured capacities and production plan to reap the benefits of
 the good time.
 However, our go-getter mindset did not let us sit quietly. We took
 every measure to keep the momentum going.
 Job work: Procuring yarn in such a stringent working capital scenario
 did not go well with the Company. Hence, we undertook jobwork for world
 renowned suppliers of denims, sheeting & terry towels to utilise our
 imported machinery, state of art infrastructure and superior quality
 product.  This has enabled the company to reduce its cash losses &
 increase its capacity utilisation
 Infusion of funds through PE investors: We are in continuous
 discussions with few private equity investors who believe in our
 efficiency and potential to grow. We also appointed NITRA (Northern
 India Textile Research Association) for TEV study. It can be worked
 out, what debt company can sustain and pay.
 Our revival agenda will further involve strengthening technical textile
 product marketing, improving procurement strategies and enhancing our
 focus on defence supplies which has unlimited growth opportunities.
 We believe in our strengths, our technological innovations and
 one-of-its-kind product offerings that give us a great business
 potential. We have capacities to meet customer aspirations and
 confidence to pull out and emerge strongly.
 We are once again grateful to all our bankers, shareholders, customers,
 suppliers and the employees who have been with us like pillars even
 during the challenging times. This has given us a great push to bounce
 back when the scenario improves.
 Warm Regards
 Dr. M.P. Agarwal
Source : Dion Global Solutions Limited
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