ANNUAL REPORT 2000-2001
JYOTI STRICTURES LTD.
CHAIRMAN'S SPEECH AT THE 26TH ANNUAL GENERAL MEETING ON 21ST SEPTEMBER,
2001
Ladies and Gentlemen.
It gives me great pleasure to welcome you all to this 26th Annual General
Meeting of your Company.
At the outset I would like to thank all investors for supporting the
Company by subscribing to the successfully concluded Rights Issue. As a
result of the Rights issue, the paid-up equity capital has gone up from
Rs.4.91 Crores to Rs.8.69 Crores and Security Premium Account has gone up
from Rs.2.95 Crores to Rs. 12.9 Crores. The Board has recommended dividend
( 25% on the expanded Capital base after Rights Issue.
As stated in the Letter of Offer, the Company had estimated total income of
Rs.260. 67 Crores and profit after tax of Rs.9. 60 Crores for the financial
year 2000-2001. While the Company surpassed its sales forecast by achieving
total income of Rs. 265.10 Crores, theprofit after tax was lower at Rs.
8.00 Crores because of pressure on margins resulting from highly
competitive market situation. Overall performance for the year ended 31st
March, 2001 can be considered satisfactory in view of slow down in the
economy and delay in power sector reforms.
On the Company's operations front, it gives me pleasure to inform you about
some of the achievements of the Company .
a) Company has obtained ISO - 14001 Certificate for its compliance on
environment protection;
b) Company's Export Turnover (including Deemed Exports)went up by 40% to
over Rs.200 Crores. Exports constituted 76% of the Company's Sales.
c) Company has been a Net Forex earner,
d) Company has been producing consistently more than 40,000 MT of
Transmission Line Towers parts for the second year in a row;
e) Company has introduced performance linked HRD) practices and has also
initiated effective Cost Control measures.
The Company's order booking for the current year, is satisfactory. Barring
unforeseen circumstances, the Company expects satisfactory performance and
higher capacity utilisation in the current year. The share of sub-station
division in the turnover is expected to go up. The Company's thrust on
Exports continues. Currently, the Company is executing turnkey export
contracts in Oman and Ethiopia and executing export orders from Chile,
Senegal, Canada and Brazil. The Company's international competitiveness and
competence is well recognised.
The outlook for your Company and the transmission line industry in general
appears to be quite optimistic. Subject to recent developments in US and
global economy, the Company expects increased business opportunities in
domestic and export markets.
In spite of discouraging market situation in the ancillary industries such
as refractories, the subsidiary, JSL Refractories Ltd. has continued its
growth by showing a rise in Turnover from 4.45 Crores to Rs.5.81 Crores.
The Management of JSL Refractories Ltd., with Mr. J.R. Panda as Managing
Director is continuously monitoring the performance of this unit and is
drawing suitable plans to make the Company profitable.
During the year, Mr. S.A. Krishnan resigned from the Board but has
consented to remain as an advisor to the Company for some time. I, on
behalf of the the Board, would like to 121ace on record our appreciation of
the services rendered by Mr. Krishnan during his tenure as Director of the
Company.
In the end, I would like to thank you all as also the employees, customers,
bankers and financial institutions for their continued support and
understanding.
Thank you,
S. D. KULKARNI
CHAIRMAN
Valecha Chambers, 5th Floor, New Link Road,
Andheri (West), Oshiwara, Mumbai - 400 053.
Tel : (91-22) 691-5000
Fax : (91-22 691-5014
E-mail : contact@.jyotistructures.com