AADI INDUSTRIES LIMITED
ANNUAL REPORT 2008-2009
CHAIRMAN`S REPORT
Ladies and Gentlemen,
It gives me immense pleasure to welcome you all to the 15th Annual General
Meeting of the Company. Financial Year 2008-09 has been the first full year
of operations of the Company since its takenover by the present management
in November 2007. The year has been full of challenges, difficulties and
accomplishments, promising better operational performance and profit-
earnings during the years to come.
Global Economic Scenario:
The global economy is struggling to wriggle out of the recessionary forces
as evident today. No part of the world is left unaffected by this turmoil,
including our national economy which too had to face the tremors resulting
from the sub-prime saga. But as rightly said, dawn follows dusk.
Considering the latest trends of various parameters, we as a nation are
well on the road to economic revival and apparently, have overcome the
after effects of the global economic turmoil. The overall business
confidence rate is gradually picking up, providing enough symptoms of
sustained economic stability and growth being achieved sooner than was
expected.
Plastic Industry Scenario:
The global demand for plastics since 1990 has grown at an average of 5.5
percent annually. The global consumption reached about 200 million tons
during 2008, with per capita consumption levels of 30 kilograms. This
sector is expected to grow at about 5 percent annually up to 2015, with the
highest growth rates in Asia. Rapid urbanization and growth in retail
business in populous countries like India will result in high growth
performance for the plastic sector.
Company Performance:
Your Company was exposed to the usual problems related to infancy, the
financial year just gone by being its first full year of operations. In
spite of nagging difficulties related to liquidity shortage, delay in
arrangement for requisite government and local authority approvals, delay
in sanction of power supply etc., the Company successfully completed the
setting up and commissioning of its unit at Silvassa for manufacturing of
Tarpaulins and Plastic Bags with an initial capacity of 24000 MT of
Tarpaulins/Wagon Cover and 6000 MT of Shopping/Carry Bags per annum. The
Company achieved a Turnover of Rs. 10.12 Croreand earned Profit of Rs.17.13
Lacs.
Based on the unaudited Financial Results for the quarter ended June 30,
2009, the Company has achieved Turnover of Rs. 7.06 Crores and Net Profit
of Rs. 22.37 Lacs. Based on these indications, we are reasonably optimistic
of recording much better performance during the current year.
We look forward to your continued support and trust in the new Board of
Directors and in turn, we pledge our continued focus, integrity, highest
level of corporate governance practices and unrelenting efforts to put the
Company on the growth trajectory and achieve sustained better operational
results and returns.
Thank you
Rushabh Shah
Chairman |