ANNUAL REPORT 2011-2012
Dear Share owners,
It is with great joy that I welcome you to the Company`s 12th Annual
General Meeting, and significantly, the first AGM after our successful IPO
last year. The IPO was an important milestone and the next step in the
ladder is to take the Company to a higher level of growth and operational
scale. It will also be fair to say that by virtue of being a listed Company
on the Bombay Stock Exchange and the National Stock Exchange, the stature
of your Company has also increased in the business and financial community.
At the same time, this has showered more responsibilities on us, which we
are sure to take care with the support of ourteam.
A wonderful benefit of this opportunity was the addition of a number of new
share owners into the SRS family, and I along with the Board and all the
existing share owners warmly welcome them and look forward to a bright
future together with everyone`s strong support and participation.
The Company did quite well in FY 2011-12, reporting a rise in its revenues
and profits as can be seen from the Annual Report. In keeping with the
performance, the Board of Directors of the Company has recommended a
dividend of Re.1 per Share.
Looking at the overall picture and business environment, I feel we have
made good progress in FY2011-12, inspite of the fact that your Company`s
Board and management had intensively invested its time and resources to
roll out the Company`s IPO successfully. Now, we should be able to post
even better results next year as we are all set to strongly focus on taking
our business to higher levels of operational excellence and growth. This
gives me the confidence to say that with God`s blessings, team`s hard work
and your support, we shall be able to report stellar results for the next
Last year, while the Company progressed well, the same cannot be said for
the business environment of the country. India, after a few years of rapid
growth, was tripped from its well-poised strides by sudden weak sentiments.
This resulted in important policy-decisions being held back, and added with
stubborn inflation, high interest rates, weakening rupees and fiscal
deficit, eventually brought down the growth rate.
In this backdrop, the business performance of your Company becomes all the
more commendable. This clearly was the result of adroit management and
sound business strategy. During this period, your Company took a focused
look at its existing operations and aptly redeployed resources to ensure
that all our business segments stood on a strong foundation, with ample of
growth potential to maximize share owners wealth. The Company went in for
robust expansion and added a new multiplex at Ludhiana taking the overall
tally to 33 screens across 12 properties in 7 cities. The Jewelry business
gathered strength by launching two new premium stores at Ghaziabad (NCR
Delhi) and Faridabad (NCR Delhi) and wholesale outlet in Mumbai
(Maharashtra). The Retail operations saw more stores opening up at premium
locations in NCR Delhi at Gurgaon, Faridabad and Noida. In retail, we
experimented with the franchisee model and launched the Company`s first
franchised store at Sonepat, Haryana. Leveraging our expertise in the
hospitality sector, we also took over the managerial control of SRS
Lakshya, a 4 star hotel property in the holy city of Haridwar with 78
premium category rooms. In addition to our expanding reach, brand building
got special attention with the Company investing significantly in such
efforts to enhance its visibility, appeal and loyalty.
So, what next? In backdrop of the recent success, we are taking care to
stay away from complacency by taking growth for granted. Today, with the
weakening Rupees, high crude prices, crisis in the overall European Union,
policy and growth breakdown, high inflation, steep interest rates etc. are
making their effect felt at the ground level. Growth therefore will not
come easily; it will instead have to be all the more hard-earned now
against firm consumerand competitive forces.
To proceed, the Board believes that the Company will need to follow a very
sharp business strategy that is in line with the Company`s higher scale,
status and ambitions. There are three pillars to this - one is to nurture
the brand SRS to make it even more trusted, preferred and vibrant. Second
is to focus strongly on our consumers and deliver a fabulous experience on
a sustained basis across each of our business vertical. The third is to
look at expansion with a very careful eye to reach out to areas that offer
a good catchment, have optimal overheads and are not in a demand over
supply scenario. This is the clear endeavor of your Company`s management,
and is bound to yield fruitful results.
You are the share owner of a Company that is well-diversified and is
fortunate to have enormous inherent strength. With your support, I am
confident of leveraging opportunities and overcoming challenges to report
exciting success in the coming times as well. Thank you once again for your
unstinted support to the Company and your unwavering belief in the Board
and the Management.
Dr. Anil Jindal