Message from the Chairman

Dear Shareholders,

Greetings to all of you. I hope this message finds you and your loved ones healthy and safe.
The year 2021 was a rebound year for the global economy after the havoc the COVID-19 pandemic played on it during 2020. Notwithstanding the second and third waves seen in some of the major world economies, the economic activity across the globe expanded by 6.1% over 2020 due to therepressed demand, government initiatives to mitigate the economic impact of the pandemic, and increasing vaccination rates. However, the supply chain bottlenecks due to the pandemic-related disruptions and the Russian-Ukrainian war have cast a cloud on the economic recovery. Inflation has become a major cause of concern across the world and most central banks are responding by increasing policy rates and/ or sucking out excess liquidity from the market. These are likely to have a significant impact on the global GDP growth in 2022 and 2023.
Indian economy tracked the global economy during the FY2021-22 period when it once again became the fastest growing major economy in the world with a YOY GDP increase of 8.9%. With the pandemic related restrictions being gradually removed, the reform measures and stimulus support given by the central and state governments, and the growth in consumer demand, the macro environment was supportive of growth across the sectors. The Manufacturing sector recovered from a 0.6% decline in FY2020-21 to a 10.5% leap during FY2021-22. The domestic market was not the only one bubbling with optimism, as the country’s overall and merchandise exports touched record highs during the financial year. However, the global factors such as geopolitical tensions, inflation, and tight monetary policies have affected the near-term prospects of Indian economic growth too. The growth projections of FY2022-23 for India have been revised downward by most agencies and with a negative bias due to continuing downside risks. The estimates for FY2022-23 growth range from 7% to 8%.
Due to the lack of banking facilities, the Company was unable to bid for any new jobs during the year. The Company has only executed the current projects, delayed/disrupted due to covid, which has impacted the revenues and financials of the Company. On standalone basis, the Company has registered total revenue of Rs. 1024.28 Lakhs in FY 2021-22 as compare to the total revenue of the Company of Rs. 1509.69 Lakhs in FY 2020-21.

In terms of the execution, some of the major projects that the Company successfully worked on during FY 2021-22 include:

PORTFOLIO EXPANSION
Due to the bottlenecks in reference to the Banking facilities for bidding new projects your Company could not diversify itself into water distribution segment and other EPC projects.The Company during the year has entered into trading activities along with the existing EPC projects in order to sustain the revenues of the Company. Going forward the Company will explore possibilities in the trading business and shall complete the existing EPC projects and utilised the retention funds in growing the trading business of the Company and also tracking EPC projects with the help of JV partners.

Simultaneously, the Company is focused to effectively complete the current projects under execution within time.


BUSINESS OUTLOOK
The outlook for the economy seems favourable with revival in consumer sentiment, strong policy support and special focus for infrastructure in rural areas; digitisation across the agriculture value chain; heavy construction machinery for mega infrastructure projects – are all expected to pump-prime the economy, along with agriculture and construction sectors.
We will constantly strive for timely execution of jobs with best engineering capabilities available and we are focusing more on the trading business along with the EPC projects which can be manageable with the available banking facilities.

CLOSING REMARK
I would like to spread out my sincerest gratitude to our employees, customers, partners, business associates and our stakeholders for their undying faith and support. Each one has been a part of our exciting and enriching journey. We continue to seek value creation for our stakeholders and persevere in building a sustainable business. Here is hoping for a brighter and stronger future together.

With best regards,

Surinder Paul Kanwar
Chairman and Managing Director