- Mr.Saket Agrawal
Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand being derived from the other sectors like automobiles, consumer durables and infrastructure, its fortune is dependant on the growth of these user industries. The global steel industry is facing challenges amidst large exports of finished steel by China, weak demand conditions and volatile currency movements.
And for Indian players like your Company therefore, the challenges were three fold- scarcity of key raw material, moderate domestic demand and proliferation of unrestrained "dumping" of steel. Hence your Company is too impacted by such market conditions and its earning has been gradually depleted over last few quarters. Due to adverse market conditions - poor demand coupled with scarcity of raw materials, which has impacted the Company's business consequent to which the Company's turnover tumbled to a level of Rs. 1210.65 Crs which represents a decline of 7.48% as compared to last year resulting to a net loss of Rs. 102.57 Crs. in the F.Y 2014-15. Due to such conditions the Company with the consent of the lenders has opted for debt restructuring as Corrective Action Plan (CAP). Consequently the Company has approached the Corporate Debt Restructuring Empowered Group (CDR EG) for restructuring its credit facilities in March, 2015 which was provisionally approved by CDR Cell on March 23, 2015. Hence the Company has restructured its credit facilities.
The Management understands the tough conditions the Company is going through and hopes that with the inflow of funds as approved by the CDR EG to improve the present conditions of the company in near future. We shall be focusing in stabilising our operations and to improve our efficiency at all the levels. We expect the steel demand in India to pick up gradually.
The current economic environment in combination with growth ambitions carries with it an evolving set of risks. Your company, recognises that these risk need to be managed to protect its customers, employees, shareholders and other stakeholders & to achieve its business objective and enable sustainable growth. An integrated system of risk management and internal controls framework has been deployed taking into account various factors such as size and nature of the inherent risk and the regulatory environment.
Your company, realizes its responsibility towards the society in which it operates and contributes towards the Society and environment. Company has been involved in various social works such as providing clean drinking water in the areas in and around the plant location, renovation of schools, building of concrete roads, providing medical help to the poor, etc. I must acknowledge the immense contribution of the employees, shareholders, all stakeholders for their continuous trust and support to the Company.
Today, we are confident of achieving our planned objective on time, with our vibrant and dynamic Human Resources. The Management is looking forward towards a great year ahead for your company.Best Wishes.