“Our response to the crisis was a testament to our inherent strength and the
resilience of our people. We acted swiftly and responsibly to protect the interests of all
our stakeholders. This resilience has been developed and embedded over the years, was
thoroughly tested by Dear Shareholders, the unforeseen events of 2020-21.”
FY21 was a completely unprecedented year, as it began with tremendous challenges before
us due to pandemic resulted in nationwide lockdowns and factories were shut, demand had
collapsed and bringing economies to standstill for a major part of the year. However,
towards the second half of the year under review, the scenario improved significantly.
Manufacturing plants started opening up in a phased manner and consumer sentiment improved
which helped create new opportunities across the value chain and we worked ever longer and
harder to see how we can position ourselves in the market at higher pitch. The Company
will endeavour to sustain the current challenging phase in a prudent, balanced and agile
manner and emerge stronger from the crisis to normalise operations with agility and resume
on the growth and expansion trajectory in times to come.
The Indian GDP, after a steep fall of 24.4% and 7.3% in Q1 and Q2 of FY 2020-21
respectively, has shown recovery with 0.4% growth in Q3. Based on this recovery trend, the
GDP for 2021 is estimated to be contracting by 8% which is a clear outcome of the efforts
undertaken in minimising the impact of Covid-19 on the economy. But the second wave of the
Covid-19 pandemic has struck India with unforeseen fury and it will compound the misery of
repeated economic disruptions and slowdowns over the past few years. The extent of
economic loss will primarily depend on how fast the chain of infections can be broken and
how India manages to contain this with mass vaccination efforts.
Government of India provided much needed stimulus to economy through Atmanirbhar
package promptly addressing concerns of various sectors and facilitating flow of credit to
the economy. The Reserve Bank of India (RBI) continued with the accommodative monetary
stance by bringing key repo rate and reverse repo rate to 4% and 3.35% respectively to
provide monetary stimulus and trigger economic growth back to the earlier trajectory.
In spite of the economic turbulence and lockdowns, Our Company has delivered its mixed
performance so far. The company is falling under the status of NPA category with Banks due
to liquidity shortage. In the current year the company is gradually coming out from
financial setbacks and resubmitted its Debt Restructuring Plan to the Consortium Bankers
and expected to be finalised by them shortly.
We believe polyester will be the ‘fibre of the future' which encouraged us to
foray in to this business with confidence. The company has focused on evolving new
products development, unlocking the hidden potential of existing products for new
applications and the company will be able to navigate through the current crisis because
of its fundamentals, committed teams and a diversified portfolio of synthetic yarns.
We acknowledge the fact that the operating scenario continues to be challenging owing
to the COVID-19 pandemic further impacting consumer confidence and purchasing power.
However, our approach is to stay close to our customers, understand their challenges. The
Company has also accelerated its cost optimisation drive across the value chain to further
improve its operational efficiency.
Before I conclude, I wish to thank all my fellow Board members, management team,
employees, customers, suppliers, Bankers, regulatory authorities and our shareholders for
their unflinching guidance and continued support throughout the year.
Shankarlal Somani
Chairman