JIK INDUSTRIES LIMITED ANNUAL REPORT 2009-2010 CHAIRMAN'S REPORT As you are aware, in 2004, two major accidents in quick succession rendered the Company in a difficult situation. Both the units, namely the chemical unit which was gutted in a major fire and had to be shut down and the crystal glassware unit whose furnaces and machinery were damaged due to wall collapse, were affected almost simultaneously. Since the Company's networth became negative, the money changing activities had to be discontinued as per RBI guidelines. It was a continuous barrage of punches that the Company was taking from fate. But nothing develops character like handling loss. What was, is no more. Suddenly in limbo, we were lost between the past we knew and the future we didn't. Without a road map, in a strange situation, it was easy to get overwhelmed. We instead took it as a challenge not to give up but take the situation head-on, harnessing our reserves and fighting for the larger interest of our stakeholders. Suddenly we were left with only two options: either roll with the punches or get knocked out. It reminds me of Canadian boxer George Chuvalo who, in 1966 fought Muhammad Ali in what became a marathon 15-round bout. Though Ali was awarded the victory, Chuvalo later claimed that he had really won the fight. How so? 'Guess who went to the hospital after the fight with bruised kidneys,' he remarked. 'And guess who went dancing with his wife!' 'Resilience' is an oft misused word. So are words like team spirit, pressure handling, war footing etc. Most of these words find their place in some management journal written by people, few of whom may have had the field experience. But I come back to `resilience'; technical definition: the property of a material that enables it to resume its original shape after being bent, stretched or compressed; and in common parlance resilience means-the ability to recover from misfortune. I believe that meaning captures our journey in more ways than one. This word encapsulates and fleshes out all of the above management jargon. It also captures our Company's stride back upwards. The unfortunate mishaps that affected the Company have been well documented, and so have our restructuring efforts. So I won't delve on those aspects. But there is one particular aspect which can't be documented but should be - the human aspect. This aspect is best experienced, and worst understood by reading a piece of paper. But without that human aspect, without those individuals who demonstrated grit, loyalty and a 'neck-on-the-line-at-a-blink-of-an-eye' attitude, our Company would have never reached where we are today. The reality is that 'resilience' doesn't happen automatically. For a company to recover even a little, it takes nightmarish efforts. Performing in the most trying times with our backs to the wall, it's more like hell and back. There are a lot of companies that survived a crisis and came back stronger and have been written about. Everybody documents a legal battle won, a new product line introduced, internal restructuring plans implemented etc. but where do these successes come from, who gives birth to these ideas and who walks on fire to implement them. That's the real story- the story of those people on the frontline who have put in continuous, constant and untiring efforts. Unexpected/additional contingencies/events which unfolded during the journey were faced and addressed head-on by a handful of untiring, selfless and resilient people. These are people who bounce back after a crisis. They refuse to be beaten, like George Chuvalo or like the kid who falls off his bike and climbs on again and again. At the end of it all it's the hope and anticipation of great things to come that drives them all. Today, with buoyant sales and higher acceptability of our crystal, glass and allied products, zero secured loans on the books, positive net worth and a strong turnaround (it ceases to be a sick Company), this hope and anticipation is turning into a reality. Today these people stand vindicated. Today I thank each of them: All the employees - they are more family than employees now-I disagree with whoever said that blood is thicker. All the lawyers and consultants who believed in us and fought the battle on the frontline with us shoulder to shoulder- I disagree with whoever said that lawyers are sharks. All the stakeholders, especially those who have been with us through thick and thin. I disagree with whoever said that they are only fair weather friends. All the government institutes, banks, forums, departments etc. who have supported us-my belief in Government of India has never been greater-I disagree with whoever said Corporate India is despite the Government. But above all I thank God, I believe it is his mercy and his blessings that miraculously pulled us out of the darkest abyss and allowed us to see this bright day. Rajendra G. Parikh Chairman & Managing Director