Dear Shareholders,
It gives me great pleasure in welcoming you on the eve of a momentous landmark of 60
glorious years in the history of your Company. This undoubtedly is a moment of immense
pride for all of us who have been part of this inspiring journey. But even more so, a
sense of fulfillmentthat comes from the creation of an exemplary Indian private sector
enterprise. It is indeed a matter of great satisfaction that together we have built a
national asset that will continue to create growing value for all our shared tomorrows.
Amidst global backdrop, this was the year when India was globally acknowledged as the
world’s fastest growing large economy with 7.6% GDP growth rate on the back of
controlled inflation, rise in domestic demand, increase in investments, decline in oil
prices and reforms among others, therefore, offering a plethora of new opportunities to
the world. The sharp decline in commodity prices has impacted the economy of many
commodity producing countries. However, the medium to long-term economic outlook in India
continues to look promising and it is encouraging to see the Government’s drive to
continue to liberalise the economy and focus on social sector spending in building both
hard and soft infrastructure. These are critical initiatives to make the nation’s
economy more productive and resilient in the future.
The governance landscape in the economy continues to evolve and align more closely with
the global framework to facilitate the integration of the Indian corporate entities within
the global network. The introduction of the new accounting standards – Indian
Accounting Standards (AS), is a step in this direction. Your Company is geared up to the
requirement of these new standards. The current Indirect Tax regime in India provides for
a complex tax environment due to multiplicity of taxes, elaborate compliance obligations
and tax cascading. To simplify the structure of Indirect Taxation, the Government has
proposed implementation of Goods and Services Tax ("GST") which, if passed, will
stand for one singular tax to be imposed on all goods and services in the country and will
replace all forms of Indirect Taxes.
I am pleased to report that we ended the year with the positive note, when the global
and Country’s economy remained adversely affected; your Company continued to maintain
its growth strides.
Your Company clocked Total Revenue of Rs. 1035.01 Crores and earned Net Profit ofRs.
21.58 Crores during the nine months period ended 31st March, 2016. We continue
our practice to consistently reward our shareholders and accordingly, the Board of
Directors of the Company have proposed a dividend of Rs. 0.75 per share which is subject
to your approval at the forthcoming AGM. This reporting period of your Company comprised
of 9 months as your Company has changed its financial year from "1st July
to 30th June" to "1st April to 31st
March", in order to align with the requirements of the Companies Act, 2013.
The outlook for the global economy is mostly positive with growth picking up in the US,
India and Southeast Asia, while several emerging markets are experiencing a deceleration
in growth. However, the structural shift in the transitioning Chinese economy could cap
this momentum. Countries and businesses are becoming increasingly interdependent through
trade, investment and financial systems across the world. The risks and opportunities in
the steel business are getting larger in scale and impact, with their sources becoming
more diverse and global.
A robust and thriving Power sector is central to India’s sustained economic
growth. India’s power sector has evolved substantially over the last few decades and
is now witnessing unprecedented interest and investments across the value chain. With the
global economic growth and industrialization, power consumption is escalating rapidly,
creating demand for more power and compelling industry players to manage their power
portfolio efficiently.
Your Company has three business segments namely (i) Steel Structures & Engineering;
(ii) Power Projects; and (iii) Environmental Control Systems and each of our businesses
segments had a strong role to play in delivering these robust results. During the period
under review, the revenue generated by Steel Structures & Engineering, Power Projects
and Environmental Control Systems represents 72.40%, 25.67% and 1.93% respectively of the
Total Revenue recorded by the Company.
Your Company’s wind tower division grew to its all-time high by more than 250% as
compared to the previous year. During the period, we ramped up our production from 3
towers per month to 8 towers per month. I would also like to take this opportunity to
inform that your Company’s Haridwar Plant has obtained a Certification of the Plant
for ISO:14001 & OHSAS:18001 and Membership of National Safety Council (NSC) &
Quality Circle Forum of India.
Your Company aspires to establish itself as a global player executing turnkey projects
by various funding agencies, for infrastructure development at various countries for,
inter-alia, Construction of Railway Bridges for Bangladesh Railways, Rural Electrification
with Ministry of Electric & Energy for Myanmar, Rehabilitation & Reinforcement of
Transmission Substations at Nigeria, Supply & Erection of Workshop Equipments with
Tandaho Sugar Corporation at Ethiopia etc.
As a responsible corporate citizen we at Fedders Lloyd, continued our voluntary efforts
towards serving its community by undertaking various Corporate Social Responsibility (CSR)
initiatives through Pandit Kanhaiya Lal Punj Trust (PKLP), philanthropic arm of your
Company. We are committed for being a responsible and active corporate citizen,
consistently working to improve its business while contributing to the betterment of our
local communities, the environment and society overall. At
Fedders Lloyd, we always follow highest standards of internal controls and governance
and are committed to continuously enhance these standards by imbibing the global best
practices to stay aligned to the evolving business environment. During the period, your
Company continued to focus in the areas of education, women empowerment and disability
areas and provide a range of interventions that helped in building internal capacities.
Having established ourselves as strong players in all the areas of our presence, we are
now firmly on track towards expanding and growing our business as we surge towards future.
We remain encouraged by the long term macroeconomic fundamentals supporting our business
and we are optimistic about enhancing our profitability and maximizing returns to our
stakeholders.
Overall, your Company is equipped to shift to a higher growth trajectory.
I would like to conclude by thanking and expressing my deep gratitude I have for the
unstinted support extended by my colleagues on the Board, staff and all our dedicated and
motivated employees of Fedders Lloyd who are the greatest assets of the Company and who
have with their passion, hard work and commitment taken it to this level. I would also
like to thank our stakeholders and partners in growth for reposing their confidence and
faith in the Company and for their contribution which has helped the Company to achieve
its position of strength in the industry. I look forward to your continued support in our
quest to beat our own benchmarks and set the stage for a bright future of your Company.
Thanking You, With Warm Regards,
Brij Raj Punj
Chairman & Managing Director