Dear members,
Overview
I am pleased to present you the annual report of your company for FY
2023-24.
I take this opportunity to share the performance highlights during the
year and future outlook for the Company.
During the year under review, your company's operating revenue
increased to Rs.10,685.91 lakhs marking a significant growth of 51.21% compared to the
previous year's Rs.7,066.63 lakhs.
Your company's net profit for Financial Year 2023-24 was
Rs.1,708.77 lakhs, reflecting a significant growth of over 69% compared to Rs.1, 013.60
lakhs earned in the Financial Year 2022-23.
The Company has paid first interim Dividend each of Rs. 0.50 per share
of face value of 10 each for the Financial Year 2023-24, totaling to Rs.97.37 Lakh.
Further, the Board of Directors of the Company has recommended a further final dividend of
Rs.0.50 per share of 10 each for approval of shareholders, with a cash outflow of Rs.
97.37 Lakh. On approval by the shareholders, the total cash outflow for payment of
Dividend for the Financial Year 2023-24 would be Rs.194.74 Lakh.
Your Company is committed to its social responsibility. In this
endeavor, the Company has undertaken various CSR programmes and projects, towards
integrating our social and business goals in a sustainable manner in line with schedule
VII of the Companies Act, 2013. An amount of Rs. 17.00 Lakh has spent under CSR in the
Financial Year 2023-24 against the CSR budget/ obligation of Rs.16.52 Lakh.
Indian Defence Sector, which was so far contributing as strategic
sector, is gradually developing as an economic sector, which is capable to contribute to
the economic growth of the country. Under the Atmanir-bhar Bharat initiative, Government
is facilitating the development of the Indian industry to reduce the defence import as
well as dependence on the foreign OEMs. Various initiatives of the GoI in recent days have
given thrust on the indigenization and indigenous procurement of defence equipment. Over
next 5 -10 years such reforms will equally help Defence PSUs and private industry to put a
firm step towards achieving a self-sustaining Defence industry in the country.
In addition to technological advancements, CFF is committed to
sustainable manufacturing practices, ensuring that our production processes align with
global environmental standards.
The future holds exciting prospects as CFF continues to explore new
avenues for growth through partnerships, innovation, and the unwavering pursuit of
excellence in defense manufacturing. Our focus remains on contributing to a self-reliant
India, capable of meeting its defense needs independently.
As we grow from this point onwards, the revenue lumpiness that was
visible in the past could yield to a gradual smoothening. The order inflow also has been
uniform throughout the Year. We have an order book of Rs. 600+ Crore, enhancing value for
all the stakeholders associated with our Company.
In the coming days, we will be pursuing a fund-raising initiative to
support a significant new project we've secured for the development of an advanced sonar
system. This project represents a critical milestone for our company, requiring the
establishment of new production capabilities and a specialized set of skills to meet its
unique demands. The funds raised will be instrumental in ensuring we have the necessary
resources to deliver on this high-stakes project, positioning our company at the forefront
of technological innovation in the industry.
Your Company will continue to pursue global standards, and I am
confident that the Company will achieve many milestones. We hope to attain all round
success with the continued support and guidance of all our stakeholders. I take this
opportunity to extend my sincere gratitude to the Department of Defence Production,
Defence Acquisition Council, our valuable customers, our partners, shareholders, Board
members, employees, suppliers, banks, regulatory bodies, governments and all stakeholders
for supporting the company in its progress
Yours Sincerely
Regards,
Gautam Makkar
Chairman