LETTER TO SHAREHOLDERS
Nothing definesa Company as distinctly as its employees and shareholders, and the
element of a Company that best encapsulates a society’s values and beliefs are its
shareholders. As promised last year the company has been looking towards new fronts to
develop and spread its wings into new forte. There has been increased production from the
Clean Room, the modern generation bags with higher cleanliness and hygiene.
Being with your company for the past twenty years I would first like to place my
sincerest regards with those who have traveled this journey along with the Company, and
have sailed along during the troughs and highs. As a human passes through various cycles
of aging, so does a Company, the past few years though have not been very fruitful but the
company has done its best to fight the turbulent situations. The environment with the ever
changing interest conditions, the highs and further highs of inflation and with the entire
economy hit by the financial crisis, the environment can be termed as turbulent. The other
factors such as the power shortage suffocating the Companies especially in Tamil Nadu
along with the labour shortage has impinged on the Company’s bottom line. The Reserve
Bank of India raised its repo rate for the tenth time since March 2010 and said it will
persist with its battle against inflation,even as growth slows in Asia’s
third-largest economy.
We at Jumbo Bag know that slow growth persists in India nevertheless the Company is
trying and making sure that it leaves no stone unturned. It is believed that the strongest
of flames and hardest of hits makes the best of swords. We at Jumbo Bag, by Jumbo Bag I am
referring to the management and to the employees who are the two strong pillars of the
Company, believe that tumultuous environmental conditions and difficult internal
conditions shall, when faced, lead to ultimately making the Company the best of its kind.
To make itself better with every step, there are collective preparations to face the
risks, and your Company has equipped itself such that all the risks that are inherent in
the industry could be diversified. It has been a difficult decision for the Board of
Directors of your Company to make regarding declaring no dividends, however the
financialsof the Company with an increased top line owing to the fluctuating cost of
materials has the managements hands tied. The Company’s order positions are good.
Your Company has private power purchase plans in place to curb the non availability of
power. These factors would certainly lead to a better performance from the Company in the
coming years. Having its feet firmly fixed for a year now as the Del-Credere Associate cum
Consignment stockist for Tamil Nadu, Pondicherry and Kerala for Indian Oil Corporation
Limited the Company expects good returns from this endeavor too.
Finally I would like to request all the Shareholders to avail the opportunity and to
attend the Annual General Meeting of your Company.
Yours truly,
G.P.N.Gupta
Managing Director