Castex Technologies Ltd Management Discussions.


On the surface, global economic growth appears robust. The world economy is projected to expand at a steady pace of 3 per cent in 2019 and 2020. Growth rates in many developed economies have risen near to what is widely considered their potential, while unemployment rates have fallen towards historical lows. Among the developing economies, the East and South Asia regions remain on a strong growth trajectory, while many commodity-exporting countries are continuing a gradual recovery. However, a closer look below this surface reveals significant shortcomings in the foundations and quality of global economic growth

In 2018, global economic growth remained steady at 3.1 per cent when calculated at market exchange rates, or 3.7 per cent when adjusted for purchasing power parities (figure I.1). A fiscally induced acceleration in the United States of America offset slower growth in some other large economies, including Argentina, Canada, China, Japan, Islamic Republic of Iran, Turkey and the European Union (EU) (figure I.2). Despite these slowdowns, economic growth accelerated in more than half of the worlds economies in both 2017 and 2018. There are growing signs that global growth may have reached a peak. Estimates of global industrial production and merchandise trade growth have been tapering since the beginning of 2018, especially in trade-intensive capital and intermediate goods sectors, signalling weaker investment prospects. The annualized expansion of global industrial production slowed to 3.0 per cent in the first 9 months of 2018, compared to 3.5 per cent growth in 2017. World merchandise trade growth averaged 3.7 per cent in the 9 months to September, compared to 4.7 per cent growth in 2017. At the same time, several developed economies are facing capacity constraints, which may constrain growth in the short term.

After strong growth in 2017 and early 2018, global economic activity slowed notably in the second half of last year, reflecting a confluence of factors affecting major economies. Chinas growth declined following a combination of needed regulatory tightening to rein in shadow banking and an increase in trade tensions with the United States. The euro area economy lost more momentum than expected as consumer and business confidence weakened and car production in Germany was disrupted by the introduction of new emission standards; investment dropped in Italy as sovereign spreads widened; and external demand, especially from emerging Asia, softened. Elsewhere, natural disasters hurt activity in Japan. Trade tensions increasingly took a toll on business confidence and, so, financial market sentiment worsened, with financial conditions tightening for vulnerable emerging markets in the spring of 2018 and then in advanced economies later in the year, weighing on global demand. Conditions have eased in 2019 as the US Federal Reserve signaled a more accommodative monetary policy stance and markets became more optimistic about a US–China trade deal, but they remain slightly more restrictive than in the fall.

World Economic Growth Projection

Sources: IMF , UN/DESA .


India continues to remain the fastest growing major economy in the world in 2018-19, despite a slight moderation in its GDP growth from 7.2 per cent in 2017-18 to 6.8 per cent in 2018-19 according to the Central Statistics Organisation (CSO).

Though the World Bank report said, "Growth in India is projected to accelerate to 7.5 percent in FY 2019-20" it is quite apparent that the Indian economy is slipping into a recession. The real GDP growth has gone down from a peak of 8.2% in 2016-17 to 6.8% in 2018-19, with the fourth quarter of 2018-19 dipping to 5.8%. The first quarter of 2019-20 is expected to dip further to 5.6%.

This moderation in growth momentum is mainly on account of lower growth in ‘Agriculture & allied, ‘Trade, hotel, transport, storage, communication and services related to broadcasting and ‘Public administration & defence sectors.

The foreign exchange reserves in nominal terms (including the valuation effects) decreased by US$ 11.6 billion end-March 2019 over end-March 2018.

Decline in investment rate and fixed investment rate since 2011-12, seems to have bottomed out with some early signs of recovery since 2017-18. Fixed investment growth picked up from 8.3 per cent in 2016-17 to 9.3 per cent in 2017-18 and further to 10.0 per cent in 2018-19

Service sector is the most dynamic sector in the economy and has remained the key driver of economic growth along with being a major contributor to GVA and export basket of the Indian Economy. Growth in the industry accelerated during 2018-19 on the strength of improving manufacturing and construction activity. Manufacturing accounted for 16.4 per cent in total GVA in 2018-19, marginally higher than that of ‘Agriculture & allied sector.

Foreign direct investment (FDI) in India declined for the first time in the last six years in 2018-19, falling by 1 % to $44.37 billion as overseas fund inflows subsided in telecom, pharma and other sectors, official data showed.

Net Foreign Direct Investment (FDI) inflows grew by 14.2 per cent in 2018-19. Among the top sectors attracting FDI equity inflows, services, automobiles and chemicals were the major categories

According to Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflows in India in 2018-19 stood at US$ 44.37 billion, indicating that governments effort to improve ease of doing business and relaxation in FDI norms is yielding results.

Currently, India is the fastest-growing trillion-dollar economy in the world and is expected to reach US$ 6 trillion by Fiscal 2027 and achieve upper-middle income status on the back of digitization, globalization, favourable demographics, and reforms. India is expected to be third largest consumer economy as its consumption is expected to triple to US$4 trillion by 2025. The World Bank expects, Indias GDP growth to accelerate moderately to 7.5% in Fiscal 2020, driven by continued investment, improved export performance, and resilient consumption. India is likely to become the worlds second largest economy by 2030, next only to China.

The Union Budget for 2019-20 was announced by Ms Nirmala Sitharaman, Minister for Finance and Corporate Affairs, Government of India, in Parliament on July 05, 2019. India is all set to become US$ 3 trillion economy by the end of FY20. The budget focusses on reducing red tape, making best use of technology, building social infrastructure, digital India, pollution free India, make in India, job creation in Micro, Small and Medium Enterprises (MSMEs) and investing heavily in infrastructure.

Total expenditure for 2019-20 is budgeted at Rs 2,786,349 crore (US$ 417.95 billion), an increase of 14.09 per cent from 2018-19 (budget estimates).

Vision for the Next Decade

• The become a US$ 3 trillion economy by the end of 2019

• Make in India with emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices

• Building physical and social infrastructure

• Digital India reaching every sector of the economy

• India plans electricity, clean cooking facilities for all Indian families by 2022.

• To ensure ‘Har Ghar Jal by 2024

• 125,000 km of road to be upgraded over next 5 years at a cost of Rs 80,250 crore (US$ 12.03 billion)

• Aims to achieve housing for all by 2022

• Blue Economy

• Healthy society – Ayushman Bharat, well-nourished women & children. Safety of citizens

• Team India with Jan Bhagidari. Minimum Government Maximum Governance.

• 19.5 million household to be built in rural areas.


The global automotive industry is expected to begin a challenging phase in 2019, with OEMs especially facing multiple obstacles all over the world. China faced its first even decline in vehicles sales in over 20 years, the USA market grew marginally, the shockwaves of Brexit and USMCA deal are expected create across global markets and the new US-China trade war. This is expected to play out till 2020 at least with global markets expected to rebound by around 2023.

The automotive industry has evolved significantly over the past decade. Digital technology, change in customer sentiment and economic health have played a vital role in this evolution. OEMs and other key industry players are taking note of this evolution and investing heavily in non-commercial business practices of manufacturing vehicles.

Overall global demand remains healthy. Despite headwinds, the global automotive market has an overall strong outlook:

Chinese demand is expected to soften in 2019, with light-vehicle registrations down 1%-3% as comparisons ease in the second half of the year.

In Japan, demand is expected to increase 1%-3%. This is due to expected purchases ahead of a consumption tax increase (from 8% to 10%), set to take effect in October 2019.

The Indian government passed monetary and tax reform actions in 2017-18 that spurred light-vehicle demand up to a full-year increase of 8.3%. However, we expect tighter credit policy to dampen light-vehicle demand growth to 6%-8% in 2019.

The Brazil light-vehicle market saw a 13.7% increase in 2018 due to labor reform and favorable monetary policy. In 2019, though, political turmoil and unpopular pension reform could be significant risks to growth.

Russian light-vehicle demand is expected to increase 6%-8% in 2019, in the face of economic sanctions imposed by the international community and moderating oil prices.

These circumstances suggest that demand in the worlds major markets is likely to soften moderately but remain relatively healthy, as long as they arent subjected to a no-deal Brexit and trade-conflict escalation.


The automobile industry in India is worlds fourth largest, with the country currently being the worlds 4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in 2018. Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share in the domestic automobile sales in 2018-19. Overall, Domestic automobiles sales increased at 6.71 per cent CAGR between FY13-18 with 26.27 million vehicles being sold in 2018-19. Indian automobile industry has received Foreign Direct Investment (FDI) worth US$ 21.38 billion between April 2000 and March 2019.

Domestic automobile production increased at 6.96 per cent CAGR between 2013-2019 with 30.92 million vehicles manufactured in the country in 2018-19.

In 2018-19, commercial vehicles recorded the fastest pace of growth in domestic sales at 17.55 per cent year-on-year, followed by three-wheelers at 10.27 per cent year-on-year.

The passenger vehicle sales in India crossed the 3.37 million units in 2018-19, and is further expected increase to 10 million units by 2019-20.

The government aims to develop India as a global manufacturing as well as a research and development (R&D) hub. It has set up National Automotive Testing and R&D Infrastructure Project (NATRiP) centres as well as a National Automotive Board to act as facilitator between the government and the industry. Under (NATRIP), five testing and research centres have been established in the country since 2015.

The Indian government has also set up an ambitious target of having only electric vehicles being sold in the country. Indian auto industry is expected to see 8-12 per cent increase in its hiring during 2018-19. The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The first phase of the scheme has been extended to March 2019 while In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22. Number of vehicles supported under FAME scheme has increased to 192,451 units in March 2018 from 5,197 units in June 2015.

Automobile exports grew 14.50 per cent in 2018-19. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026. Domestic two-wheeler industry is expected to grow at 8-10 per cent during 2018-19. Also, Luxury car market in India is expected to grow at a 25 per cent CAGR till 2020. The Government of India expects automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023.



The automotive component industry that contributes 2.3 per cent to Indias GDP, 25 per cent to its manufacturing GDP and provides employment to 50 lakh people, stood at Rs.3.95 lakh crore (USD 57 billion) for the period April 2018 to March 2019, registering a growth of 14.5 per cent over the previous year. Auto Component exports grew by 17.1 per cent in FY 2018-19 to Rs.106,048 crore (USD 15.16 billion)".

Automotive Component Manufacturers Association of India (ACMA) observed that the first-half of the fiscal 2018-19 witnessed a robust double digit growth, however the second-half saw a significant slump in vehicles sales. There is a 15 to 20% cut in vehicle production leading to slowdown in component industry. Urgent government intervention is necessary to kick-start a long-term growth cycle for the Auto and Auto Components Industry.

Market Size

The auto-components industry accounted for 2.3 per cent of Indias Gross Domestic Product (GDP) in 2017-18. During the same period, 1.5 million people directly and 1.5 million people indirectly were employed in the auto-components industry. The auto components sector has been observing robust growth with a turnover of US$ 51.2 billion in FY18 and turnover is anticipated to reach US$ 200 billion by FY26. Indias exports of auto components could account for as much as 26 per cent of the market by 2021. Auto-component production in 2018-19 is expected to increase 12-14 per cent in FY19, on the back of robust growth in domestic and export markets. Production of Two Wheelers, Passenger Vehicles, Commercial Vehicles and Three Wheelers reached 24.50 million, 4.03 million, 1.11 million, and 1.27 million in 2018-19. According to Department for Promotion of Industry and Internal Trade, FDI inflow in automotive* sector from April 2000 to December 2019 stood at US$ 21.38 billion.

Favourable government policies such as Auto Policy 2002, Automotive Mission Plan 2016-2026, National Automotive Testing and R&D Infrastructure Projects (NATRiPs), have helped the Indian auto components industry achieve considerable growth. The government has also launched the FAME-II Scheme from April 2019.

India is emerging as global hub for auto component sourcing. A cost-effective manufacturing base keeps costs lower by 10-25 per cent relative to operations in Europe and Latin America. Relative to competitors, India is geographically closer to key automotive markets like the Middle East and Europe.

Industry Performance Review 2018-19:

Exports: Exports of auto components grew by 17.1 per cent to Rs 106.048 crore (USD 15.16 billion) from Rs 90,571 crore (USD 13.4 billion) in 2017-18. Europe accounted for 33 per cent of exports followed by North America and Asia, with 29 per cent and 26 per cent respectively.

Imports: Imports of auto components increased by 14.4 per cent to Rs.1,23,688 crore (USD 17.6 billion) in 2018-19 from Rs.106,672 crore (USD 15.9 billion) in 2017-18. Asia accounted for 61 per cent of imports followed by Europe and North America, with 29 per cent and 8 per cent respectively.

Aftermarket: With increasing vehicle base in the country, the aftermarket in 2018-19 grew by 9.6 per cent to Rs 67,491 crore (USD 10.1 billion) from Rs.61,601 (USD 9.2 billion) in the previous fiscal.

Indian Automotive Components Supply to OEMs by End Market

The Government of Indias Automotive Mission Plan (AMP) 2006–2016 has come a long way in ensuring growth for the sector. Indian Automobile industry is expected to achieve a turnover of $300 billion by the year 2026 and will grow at a rate of CAGR 15 per cent from its current revenue of $74 billion.

Government has drafted Automotive Mission Plan (AMP) 2016-26 which will help the automobile industry to grow and will benefit Indian economy in the following ways:-

• Contribution of auto industry in the countrys GDP will rise to 13 per cent, currently which is less than 10 per cent

• More than 100 million jobs will be created in the economy

• Companies will invest around US $80 billion as a part of their capital expenditure.

• End of life Policy will be implemented for old vehicles


A. Strengths B. Weaknesses
Geographical spread of operations in India allows proximity to a large and diversified customer base. Automotive operations are directly dependent on general economic conditions across key global markets.
Largest Iron casting player in the country with capability to produce five grades of iron castings
Signs of melting demand for Automotives in America, South Africa, Eastern Europe etc.
One of the best metallurgical laboratory in India with key machines such as spectrometer, microscope with image analyser, storohlinappartus/ ferro excel lab & precision sand testing equipment.
Prices and availability of raw materials like steel, non- ferrous alloys, precious metals, petroleum products are dependent on various environmental factors and any unforseen or sudden spike in the cost of these items could impact profitability.
Proximity to all major OEMs coupled with consistent track record of deliveries manifested by their increased levels of localisation in India. The liquidity continues to remain under stress coupled with availability of fresh working capital funds being a major challenge has led to low capacity utilisations thereby impacting profitability.
State of art, in-house tool design and 3D modelling/ simulation software with key machines such as CNC, VMC etc. High cost of production.
One of the few Indian companies in India having high pressure automatic moulding lines in both horizontal and vertical technologies.
Trusted partner and strategic Tier I supplier to leading OEMs. It has well establishedstrategic relationships most OEMs across the country and abroad.
Well positioned to cater to growing demand of automobile industry in India coupled with a large Scale of operations allowingeconomies of scale.
Dedicated R&D team focused on development & acquisition of new technologies relevant for future product portfolio.
Skilled, experienced and diversified workforce with proven credentials.
C. Threats D. Opportunities
Political instability, wars, terrorism, multinational conflicts, natural disasters, fuel shortages and their prices all present business risk. Strong economic growth in India and other growth markets like China, Southeast Asia and North Africa - resultant demand for Automobiles.
Due to global integration of automobile supply chains the industry has become highly competitive with OEMs continously scanning the market for lower prices and better terms. Indian Governments focus on improving ease of doing business with its "Make in India" initiative to transform India into a global manufacturing hub.
Iron Scrap being one of the main Raw Material is sourced from scrap dealers which operate in an unorganised sector giving rise to uncertainties. GOIs emphasis on substitution of imported goods sectors such as railways and defence are expected to turn towards Indian Conpanies for procurement.
Changing technologies have led to shortening of life cycles of new vehicles. Diversification towards forward integration.
Imposition of additional taxes and levies designed to limit use of automobiles could adversly affect demand.
Presence of large number of players in the automobile industry has resulted in extensive competition thus enhancing scope for eating into share of business of other players. The 7th Pay Commission may act as a multiplier of demand for the Automotive sector.
General law and order problems. Strategicalliances and partnering could be a smart strategy resulting in specialised capabilities differential offerings.


Over the last decade, the automotive components industry has registered a CAGR of 6.83 per cent and has reached to US$ 51.20 billion in 2017-18 while exports have grown at a CAGR of 11.42 per cent to US$ 13.5 billion. Auto components production in 2018-19 has increased to US$ 57 billion, showing an increase of 12-14% due to robust growth in domestic and export market. Indian tyre industry expects a 7-9 per cent growth over FY19-23. The capital expenditure by the domestic automotive component manufacture is expected at around Rs 24,000 crore (US$ 33.26 billion) over the FY19 and FY20. Domestic auto component industry is expected to grow at 15 per cent in FY19.

According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-components industry is well positioned to benefit from the globalisation of the sector as exports potential could be increased by up to four times to US$ 40 billion by 2020. The Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports ranging between US$ 80-100 billion by 2026.

According to IBEF India is expected to become the 4th largest automobiles producer globally by 2020 after China, US & Japan. The auto components industry is also expected to become the 3rd largest in the world by 2025. Domestic automobile production increased with 30.92 million vehicles manufactured in the country in FY19.

The Industry is expected to follow OEMs in adoption of electric vehicle technologies. The global move towards electric vehicles is generating new opportunities for automotive suppliers. The mass conversion to electric vehicles aims to generate US$ 300 billion domestic market for EV Batteries in India by 2030.

As per the Union Budget 2019-20, government moved GST council to lower the GST rate on electric vehicles from 12 per cent to 5 per cent. Also to make electric vehicle affordable to consumers, our government will provide additional income tax deduction of Rs 1.5 lakh (US$ 2,115) on the interest paid on loans taken to purchase electric vehicles FAME-II (Faster Adoption & Manufacturing of Electric Hybrid Vehicles Scheme) has been notified to be implemented for 3 years from April 2019 with a total outlay of 10,000 Crores. The FAME – India Scheme formulated by Department of Heavy Industry led to a continuous increase in registered OEMs and vehicle models. Also, the scheme enhanced the sales of electric vehicles and about 261,507 electric/hybrid vehicles were supported under the scheme up to December 6, 2018. In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

Under National Automotive Testing and R&D Infrastructure Project (NATRiP) various facilities including passive safety labs comprising of crash core facility and crash instrumentations including dummies were established at ICAT-Manesar & ARAI-Pune To give a fresh thrust to e-mobility in public transport, Department of Heavy Industry announced the launch of public & shared mobility based on electric powertrain.

Road Ahead:-

The rapidly globalizing world is opening up newer avenues for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-component manufacturers, who would need to adapt to the change via systematic research and development.

CTL - Way Forward:-

CTL aim to be equipped for adapting to the changing scenario of the industry. We strive to enhance our core business by aligning with the changing demands of our customers, most of them being market leaders in the respective industry segments. We continue to adapt and structure our business in a way so as to be able to capitalise on growth opportunities from other future growth areas, with an aim at diversifying our end use segment and customer base. We cater to commercial vehicles, construction and off-road machinery; agricultural and farm machines as well as oilfield equipment and services sectors.

CTL plans to invest in low cost automation for better efficiency, consistency and output in manual processes and copuled with value addition to casting products by performing painting, pre-machining, full machining and assembly, as per customer requirements shall improve revenues an profitability. The Company shall endeavour to add and move towards high end, critical and high value and special alloy products i.e., turbine and bearing housings, case differentials, cylinder blocks and heads.

7. Castex Capabilities and Achievements

Indias largest Iron Casting player, CTL has witnessed the steady change in technology especially in the ferrous casting process and kept pace with ever increasing demand for better quality iron castings by OEMs with latest equipment and technology. CTLs key technological capabilities are:

Highly automated casting operations with automatic pouring system and semi-automatic core shooter.

• Capability to produce 5 grades of iron castings.

• State of art, in-house tool design and 3D modelling/ simulation software with key machines such as CNC, VMC etc.

• High pressure automatic moulding lines in both horizontal and vertical technologies. It is one of the few Indian companies to have these latest machines

• Semi-automated core shop and fettling shop.

• Medium frequency Induction furnaces from leading equipment manufacturers such as Inductotherm and ABB

• One of the best metallurgical laboratory in India with key machines such as spectrometer, microscope with image analyser, storohlinappartus/ ferro excel lab & precision sand testing equipment

• One of the best design and die shop alongwith automated moulding and casing lines.

• Thin walled capability for cylinder blocks and heads.

• One of the largest and best flywheel casting facilities in India.

• Turbo Charger Housing. Capability to mould on high speed vertical casting lines yielding better yield and weight reduction benefits.

• Transmission and differential housings are ductile iron parts which need special casting facilities present with us.


The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.

Some significant features of the internal control of systems are:

• The Audit Committee of the Board of Directors, regularly reviews the audit plans, significant audit findings, adequacy of internal controls, compliance with accounting standards as well as reasons for changes in accounting policies and practices, if any;

• Documentation of major business processes and testing thereof including financial closing, computer controls and entity level controls, as part of compliance programme;

• State-of-the-art Enterprise Resource Planning, supplier relations management and customer relations management connect the Companys different locations, dealers and vendors for efficient and seamless information exchange. The Company also maintains a comprehensive information security policy and undertakes continuous upgrades to its IT systems;

• Detailed business plans for each segment, investment strategies, year-on-year reviews, annual financial and operating plans and monthly monitoring are part of the established practices for all operating and service functions;

• A well-established, independent, multi-disciplinary Internal Audit team operates in line with governance best practices. It reviews and reports to management and the Audit Committee about compliance with internal controls and the efficiency and effectiveness of operations as well as the key process risks. The scope and authority of the Internal Audit division is derived from the Audit Charter, duly approved by the Audit Committee; and Anti-fraud programmes including whistle blower mechanisms are operative across the Company.

The Board/Resolution Professional takes responsibility for the overall process of risk management throughout the organization. Through an Enterprise Risk Management programme, the Companys business units and corporate functions address opportunities and the attendant risks through an institutionalized approach aligned to the Companys objectives. This is also facilitated by internal audit. The Business risk is managed through cross functional involvement and communication across businesses. The results of the risk assessment and residual risks are presented to the senior management. The Audit Committee reviews business risk areas covering operational, financial, strategic and regulatory risks.


CTLs performance in the last fiscal year is a reflection of the challenges faced by the automotive industry in India and certain other regions internationally. In the financial year ending 31st March, 2019, the consolidated revenues of the Company were at Rs. 4606.9 million.

The Consolidated EBITDA, before exceptional items, for the financial year ended 31st March, 2019 stood at (Rs. 1340.61 Million) at a margin of 2.91% percent. The management, during this period, remained focused on cost optimization and value enhancement.

The consolidated loss after tax for the FY19 before minority interest and associate income was Rs. 74,74.67 Million.


CTL monitors its financial position regularly and optimises its cash resources through a robust cash management system. However, despite this the Company is experiencing a stress on the cash flows with the result that during the financial year 2018-19, your Company has been unable to meet all its debt obligations. The Company has had various rounds of discussions with the lenders and is currently engaged in formulating a scheme for debt restructuring which will be submitted to the lenders forum. In this regard the Company is co-ordinating with the lead lenders for successful implementation of the proposed debt restructuring scheme.

It is envisaged, that your Company, post successful implementation of the proposed debt restructuring scheme, will emerge as a much stronger Company with an improved capital structure and poised for growth. The Company would like to thank its lenders for their continuous support.


As of March 31, the Company had consolidated debt of Rs. 74901.762 million comprising Rs. 0 million of long term debt and Rs. 74901.762 million of short term borrowings. Cash and equivalents stood at Rs. 55.96 million, translating into net debt of Rs. 74845.796 million.


Human Resource is the most vital factor to achieve the goals of any organization. Your companys human resource policy provides an environment that motivates its employees to realise their full potential. Your Company respects each employee, motivates them and try to offer opportunities based on their skill sets and in this process builds mutually benefiting relations between the Company and its employees.

Your company has put in place a policy that not only increases productivity but also increases job satisfaction of its employees. Your company has placed a recruitment system in the organisation wherein a right candidate with right skills is recruited for a position. Your company has established systems, which aims to provide training to employees at every level of the organization that leads to quality work output in their assigned work in turn helping in improving the bottom-line of your company.


The Whole Time Director makes a declaration to the Board of Directors every quarter regarding compliance with provisions of various statutes as applicable. The Company Secretary ensures compliance with the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and compliance with the guidelines on insider trading for prevention of the same.


The statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations, may be forward looking statements within the meaning of applicable laws and regulations and the actual results, performance might differ materially from those expressed or implied herein. The Company is not under any obligation to publicly amend, modify or revise any such forward looking statements on the basis of any subsequent developments, information or events.