Dear Shareholders,
The global environment around the world continues to go through
significant shifts. Post pandemic, which resulted in supply chain shocks, there was an
economic slowdown especially in developed markets. While initial signs of stability began
to emerge, the military con icts have further intensi ed this year and continue to impact
the global supply chains. After two years of recessionary fears, persistently high in
ation, and unprecedented monetary tightening, the global macro-outlook looks relatively
better now with improving growth and monetary easing in sight.
India having overcome many hurdles, adopted measures to generate
reasonable demand for goods and services. This has helped in achieving growth in core
sector resulting in all time high GST collection. India is now the fastest growing major
economy in the world.
As we strive for a better future, we continue to set new paradigms
every day. In a challenging business environment agility, adoptability and innovation are
the key to staying successful. Keeping this in our mind as the 'Mool Mantra', we were able
to clock Income of INR 135.75 Crores and PBT of INR 9.72 Crore on standalone basis during
FY 2023-24, registering a modest growth of around 6 % in top line. Our performance would
have been far better, had required clearances in one of the contract were received in
time. The redeeming feature is that the said contract is now running smoothly and we hope
to make up the de cit in current FY .
This year has been very special for us as we were awarded a contract
for CBM production by a renowned company of India. Besides, we also added few new clients
which have further strengthened our order book and worked as catalyst in boosting our
morale. We expect to win few more contracts / work orders in the tenders we have
participated recently. With such kind of order book and order in ow, we are con dent of
achieving growth of 15-20% (CAGR) over the next three years.
As you are well aware we have won a coal block by participating in the
forward auction process initiated by Ministry of Coal, Government of India during FY
2021-22. It's a partially explored block and after completing DGPS survey, we have applied
for grant of PL cum ML by Government of Jharkhand. Once the PL is in place, the
preparation of GR and mining plan and other related mine development activities shall be
initiated for early start the coal production. With geological reserves of 84 Million Tons
and good connectivity from rail as well as road coupled with the ready market availability
in surrounding areas , we strongly believe that this will prove to be a corner stone for
your company in the times ahead.
Our copper mining service operations in Oman are continuing. Since
country has sizable mineral reserves of copper, gold, silver, chromite, lead, manganese,
and zinc etc., we see lot many similar opportunities in future.
South West Pinnacle Exploration Ltd. (SWPE) has a distinction of being
a complete natural resources exploration company. SWPE thru a JV is also executing a
mining services contract in Oman and after acquiring a coal block, it has now become a
complete exploration cum mining company.
The present day policies of our Government are very conducive for
exploration and drilling industry. The mining industry contribution in our GDP is quite
low at present. The Government is giving lot of thrust to enhance mining sector share in
GDP and to achieve this target, many coal and non-coal mineral blocks are being offered
through forward auction to private players, thus throwing open a lot of opportunities for
us.
To enhance the oil production, Ministry of Petroleum and Natural Gas ,
GOI has recently oated a program called as 'Mission Anveshan' for carrying out 2D seismic
survey in various states to discover new oil bearing blocks under supervision of ONGC and
Oil India . It has allowed 100% FDI in natural gas, petroleum products, and re neries.
Besides, over 500 mineral blocks, partially or minimally explored under current leases,
are now up for grab through competitive bidding. The target now is to complete this
exercise by 2025-26.
Your company has always believed in keeping the 'Customer First' policy
besides empowering the employees and encouraging them for sharing new ideas and models.
This policy has always paid us rich dividend. We also strongly believe in bringing the
underprivileged section of our society to the mainstream. With this moto, we keep
supporting development projects for the communities living in and around our site
locations across.
Maintaining the past trend, the board of directors have recommended a
dividend of 5% to the non-promoter shareholders subject to approval by shareholders at the
AGM. Interim dividend of 5% was also paid to non-promoter shareholders during the year.
I would take this opportunity to thank our shareholders, customers,
bankers, suppliers, employees and all other stakeholders for their overwhelming trust,
support and con dence in the company.
Jai Hind ! Best Regards,
Vikas Jain
Chairman & Managing Director