PHIL CORPORATION LIMITED
ANNUAL REPORT 2007-2008
CHAIRMAN'S REPORT
Whilst we have not fully completed the restructuring of the company with
final solutions to all our outstanding issues and liabilities, I am pleased
to report that we can now commence looking at new options and opportunities
in terms of the future of our Company.
Our main asset is the Country Club food factory and during the current year
we will start developing this project. At the current time we are looking
at enhancing the product line, doing some test marketing and considering
the options for the future. We are also open to finding partners and
working with major retailers to develop the business further.
For the most part, the previous year was spent in completing the
restructuring activities, sale of certain surplus assets and handling the
administrative and pending legal matters. The BIFR has discharged us on the
ground that we have a positive net worth. This is one way of looking at it
- but our contention has been that after merging the loss making
subsidiary, the consolidated balance sheet would show a negative net worth.
We will proceed with merging the subsidiary company with Phil Corporation
so that we have a cleaner structure on which to build upon.
We are fortunate that India is a growing market for snack foods and
particularly with the rapid development of the modern retail environment,
we have a product line and facility that could be the basis of a new
business. We imagine that it would take a couple of years to see some
results as we will still need to spend some resources on completing our
restructuring and then carefully invest for the new business.
I would like to thank our shareholders for their understanding through the
difficult restructuring phase which resulted in the closure of our
traditional photographic business. We can now look ahead to a phase of
developing new business.
A.Y. Fazalbhoy
Chairman