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CMD's DESK |
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| Shri. C.S.Ajmera |
| (Founder
& C.M.D) |
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Dear fellow Shree Precoated Shareowners
India is shinning. Today the country is one of the six fastest growing economies of the world and it is ranked fourth in terms of Purchasing Power Parity (PPP). The business and regulatory environment is evolving and moving towards constant improvement. A high talented and skilled human resources base forms its backbone.
The Indian economy has transformed into a vibrant, rapidly growing consumer market. Gross Domestic Product (GDP) growth has been pegged at 6.50 – 7 % with an upward bias. The forecast on GDP growth for 2004 – 05 has been made on the assumptions of a sustained growth in the industrial sector, normal monsoon and good performance of exports.
The year 2003 – 04 was an eventful year for our country and for Shree Precoated Steels Limited (SPSL). The year witnessed rise in foreign exchange reserves of over US$ 118.6 billion (May 7, 2004 – RBI Press Release May 18, 2004) never witnessed before. It was a year when Shree Precoated Steels Limited also recorded the highest turnover in its history for Rs. 521.33 Crores.
In the next ten years, India is expected to evolve as a major manufacturing economy on the one hand and pride itself of a vibrant services sector on the other. The Indian Government is planning to double per capital income over this time frame.
An upswing in exports to China & other developing Countries and an improvement in domestic demand on account of the government’s push to infrastructure have changed the fate of the steel industry for the fiscal year 2003 - 04.
There have been concerns over the steel sector in the past few days. The reason is the possible slowdown in the Chinese consumption of the grey metal. This slow down is a deliberate attempt by the Chinese government to fight the anticipated global glut in steel once consumption hits a plateau. This has caused pressure on global steel prices and HR coils prices, which were in the range of $520 per ton in the beginning of April 2004, have dropped back by $ 30 – 40 per Ton (Source www.Indiainfoline.com May 03, 2004).
The recovery of steel sector witnessed in 2002 – 03 was carried forward in 2003 – 04. Now it has been forecast by analyst that the Indian Steel Sector will continue to witness growth for the next few years backed by domestic drivers such as infrastructure and automobile demand along with rising global trend.
Over the year, the sharp 70 per cent rise in steel prices has improved the bottom line of steel companies. Most companies are hopeful that this good run will continue in the future.
In fact, now there is a consensus that the world steel industry may shift to Asia with China, Korea and Japan playing a major role. This shift envisages a catalytic role for the Indian Steel Industry.
The year 2003-04 was important and eventful in the history of SPSL as it brought us to the threshold of takeoff stage. This was made possible due to the able leadership provided by Senior Management and good teamwork, conscious efforts and dedication of all employees. Many milestone records were achieved in the year 2003-2004.
I am happy to report that your Company has placed itself on a solid foundation to exploit opportunities both in the domestic and international markets. For the first time in the history of the Company, the Sales Turnover for the financial year 2003 – 04 was Rs. 521.33 Crores as against Rs. 291.37 Crores for the previous year. Hence the Sales Turnover for the year showed a substantial growth of 79% over the previous year. The Profit before Tax was Rs. 32.58 Crores as against Rs. 22.28 Crores during the corresponding period of the last year.
Big boost in Export performance of SPSL’s products, wherein we are the largest exporter of Colour Coated Strips from India. The exports during the year have been Rs. 308.21 Crores (approx. 60% of the total turnover for the year). This shows a substantial export growth of approx. 130 % over exports of Rs. 135.17 Crores last year.
The year’s performance, inspite of the numerous unexpected adverse factors on the way, clearly demonstrates the strength of your Company and its Management commitment to give its best in terms of quality and performance to the customers, investors and its employees.
I am glad to inform you that your Company had been accredited with ISO 14001 : 1996 by Det Norske Veritas (DNV – The Netherlands) for confirming to the Environmental Management System Standards.
I am grateful to all the shareholders for their continued confidence in the management.
I am also thankful to Central Government, State Government, RBI and BIFR and further to all the Financial Institutions and Consortium Bank Members for their continuous support to strengthen your Company’s operations.
I also extend my sincere thanks to the Members of the Company’s Board for their involvement and guidance from time to time.
I wish to express my deep appreciation to all sections of the Employees for their whole hearted efforts, co-operation and outstanding contribution to the growth of the Company during the year.
Finally, I would like to assure our shareholders and stakeholders that the Company would continue to perform well and we are committed to our vision of being the most admired Steel Company in India. I wish to express my compliments and appreciation to all my colleagues who have been instrumental in achieving this. I further wish to state that this process shall be ongoing and your Company is committed to adopting the best of the world quality practices in the years to come.
With best wishes,
C. S. AJMERA
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