Interest and Financing cost decreased by 10.13% compared to previous year. Capital Expenditure made during the year Rs. 2825 lacs as compared to Rs. 1656 Lacs in the previous year.
As a business, we viewed 2017-18 as a year of improvement. We have growth of 4.92% in the turnover and 38.86% in the profitability as compared to previous financial year. We have enough capacity to cater to the need of the growing automobile market.
I see lot of potential for the products of the company both in India and abroad. We are putting all efforts to consolidate our position in the market. The cutting edge technology adoption in manufacturing and packing will improve quality of products and save costs. We are making our plant fully automated to save cost and improve upon production and productivity. We have hired best talents available in the industry both in production and marketing and expect reasonable growth in the production, sales which in turn will improve upon top line and bottom-line.
We are optimistic of turnaround of the global economy vis a vis Indian economy and growth and development of the automobile industry, machinery manufacturers and agriculture which will bring positive impact in our turnover and profitability. The global scenario is changing day by day with cut throat competition and constrained margin is hampering product marketability. The products are marketable if it is innovative and falling in special category. The product research and development and quality control will only save us in grave situation and we are hopeful that our products will improve over the period of time and pass through the testing phase through which industry is passing.
With the rate of interest still high compared to the global standards, there is a further scope to reduce the interest rate and the growth of the corporate sector will depend much upon the availability of credit at the right time and right price. Though it is expected that softening commodity prices and stimulus packages would have a positive impact on the industrial production in the months ahead, the economic recovery on a sustainable basis requires a revival of the global economy. The order position is good and company expected reasonable growth in turnover and profitability. With the expectation of an improvement in the market conditions for rubber and automobile products during the year, the Company will endeavor to perform better than last year. Government of India’s Make in India program is expected to give a significant boost to the Indigenous Manufacturers.
Company pays more than Rs. 7 crore to promoters as remuneration.