The operations of the company involve Manufacturing, Sales, Installation, Commissioningand After Sales Service of machines used in processing food grains and cereals.
A. Industry Overview:
The industry, which is fragmented in nature and spread across the entire countrywitnessed a significant slowdown and postponement of projects during 2008-09. The slowdownwas more severe especially in the last two quarters as the banking industry introducedstringent methods and processes for providing finance to the customers. The availabilityof Paddy also was hampered during this Financial Year resulting in a cautious approach bythe rice millers and investors.
B. Company Performance:
During the year the company has achieved a turnover of Rs. 1726.47 Lacs (Previous Year1717.70 Lacs) and operating profit of Rs. 359.69 Lacs (Previous Year 497.08 Lacs).
C. Opportunities and Threats:
During the Financial Year 2008-09, the Company has undertaken various initiatives inorder to address multiple food grains markets and customers across India and some globalmarkets. Your Company introduced higher capacity vibro cleaners and shellers in additionto the launching of color sorter. During this Financial Year the company exported toBangladesh and Africa after a gap of almost 15 years.
During this Financial Year there was alarming increase in the influx of Chinesemachines in some parts of the country. Given the current economic situation there istendency with customers to opt for low cost, low technology Chinese equipment which offerbetter return on investment in the short term.
In addition to the global economic slowdown, this year the industry witnesseddisturbing process changes by our competitors. This was a first time that major globalmanufacturers resorted to giving heavy discounts and long credit terms to the customers inorder to get business. Your company has decided to have firm credit policies.
The Company's customers are demanding better finishing machines like Whiteners andSilky from major manufacturers. This would be an area of development in the near future.
The global scenario and Indian economy continue to give mixed signals to variouscomponents of the market and this may affect demand for machines as well as initiatives ofnew projects. The current fiscal will be a crucial year wherein the investors and millerswill look at return on investment more critically than ever while selecting a manufacturerfor the products and complete plants.
In the Financial Year 2009-10, the Company will focus on aggressive marketing in Indiato specific customers segments who value quality and long term business benefits. We willalso work towards developing more African countries as a base for future growth. We alsoexpect to increase presence Nepal. Bangaladesh and Sri Lanka.
Statements in this Report, particularly those which relate to Management Discussion andAnalysis, describing the Company's objectives, projections, estimates and expectations mayconstitute "forward looking statements" within the meaning of applicable lawsand regulations. Actual results might differ materially from those either expressed orimplied.
F. Internal control system:
Renowned auditing firm continues to conduct the Internal Audit of the business unit ofthe Company. The internal audit program is designed to ensure extensive review of thebusiness operations of the Company and is not restricted only to a review of finance andaccounting functions. The internal auditors also check, validate and report on theinternal controls in place in the areas covered during the audit.
G. Human Resources and Industrial Relations:
1. The Company adopted a clear policy of recruiting qualified, young and competentmanagers in various departments in order to enthuse energy and excitement which willdirectly influence creativity, innovation and dynamism in work place,
2. The organization structure is redesigned in line with the roles and responsibilitiesat each level. The salary, performance, incentive structure is also in line with theabove, thus creates healthy and positive work culture amongst the employees.
3. The company enjoys cordial industrial relationships with its workers and theirrepresentatives. Thus evolving a 'Family' atmosphere in the factory.
4. No. of employees as on 31 March 2009 is 143 (Previous Year 147).
The Company has promoted and incorporated a wholly owned subsidiary in the name of G GDandekar Investments Pte. Ltd., an Investment Company to enable smooth long terminvestment in overseas projects, which has its registered office in Singapore.
Mr. Nihal Kulkarni (Vice-Chairman), Ms. Aditi Chirmule and Ms. Catherine Dorothy Hanamare the directors of the company. The first Financial Year of the subsidiary Company isfrom 22 August 2008 to 31 March 2009. The accounts of the subsidiary Company have beenduly attached in this Annual Report and have been Consolidated appropriately.