Dear Shareholders,
Our vision is based on hard work, open communication, a strong emphasis on team work
and a high level of responsibility. This visionary culture allows and emphasis our team
not only to adopt the present day challenges but also individual responsibilities to the
society and our nation at large.
We believe in the creation of long-term value for both society and stakeholders, that
makes it unique. We apply this philosophy in a manner that touches all our stakeholders
across the value chain: consumers, communities around our factories, employees,
associates, vendors and investors. With a young and strong leadership team, we endeavor to
leverage talent, innovation and speed-to-market to realize our global aspirations and
harness the opportunity of a young and growing India.
However, we have been facing difficult operating environment due to liquidity crunch as
the credit facilities envisaged and sanctioned under CDR package were not released by the
lenders to the Company, which resulted in sub-optimum utilization of manufacturing
facilities. Due to non-disbursement of funds the Company could not complete one of its
spinning projects where substantial amount was already incurred. All this has led to
adverse financial performance and erosion in net worth of the Company. The company also
has been facing cash flow mismatch and is not able to serve debt obligations.
The Corporate Insolvency Resolution Process (CIRP) under "Insolvency and
Bankruptcy Code, 2016" (IBC) has been initiated for the Company after the petition
filed by State Bank of India in its capacity as financial creditor was admitted by the
Hon'ble National Company Law Tribunal, Chandigarh Bench (NCLT). However, the Corporate
Insolvency Resolution Process (CIRP) has been kept in abeyance vide order dt. 22nd June,
2018 of Hon'ble High Court of Punjab & Haryana.
I would like to extend my gratitude to all our stake holders including shareholders,
customers, lenders and our loyal, hardworking and committed employees for their continued
support and faith in the Company.
With best wishes,
Ram Saran Saluja
Chairman