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STEELCAST
LIMITED
REGD. OFFICE: Ruvapari Road, Bhavnagar, Gujarat,
India 364 005
Phone no.: (+91) (278) 251 9062, Fax nos.: (+91)
(278) 242 0589/2519831
E-mail: info@steelcast.net Website:
www.steelcast.net
May 17, 2006
Dear Shareholder,
I am pleased to share with you some further developments
in your Company since my last letter dated November
8, 2005. Compared to the year 2004-05, 2005-06
showed significantly improved financial results,
as reflected in the statement below. The trend
of improvement will hopefully continue in the
current Financial Year also.
The capital expenditure of Rs. 650 lacs made
in F.Y. 2005-06 will be fully effective from 1st
June 2006, and we are now at near 100% capacity
utilization. In this year we are making a further
investment of approximately Rs. 617 lacs in the
areas of R&D, capacity expansion, Energy Conservation/Pollution
Control and additional facilities in our Machine
Shop, thus increasing value addition.
In my letter of March 17, 2005 we had projected
6500 tons output in 2006-07. I am happy to inform
you that we have already produced 6329 Tons in
2005-06. Likewise, based on the present indications,
we expect to do significantly better in the current
year.
Our Vision 2010 document is now ready. The Vision
2010 consists of:
- To be a reputed Global source of reliable,
ready to use, high integrity castings, especially
structural
steel castings.
- To offer customer delight and employee growth,
together with fairness towards all stakeholders.
- These to be achieved through being a participative,
continuously learning organization with focus
on
innovation and creativity.
Some key aspects of projected achievements are
(percentages are over the Base Year 2003-04):
- Sales of Rs. 175 crores
- Output of 12000 tons
- 35% of output to be supplied in machined
condition, thus improving value addition.
- Improvement in productivity by 175%
- Total investment of Rs. 54 crores
- Increase in value addition per employee by
more than 400%
- Totally debt free
The work for obtaining certifications under
ISO:14001 and OHSAS 18001 pertaining to pollution
control is in progress and we expect to receive
these certifications by end June 2006.
I would like to place on record my sincere appreciation
of the contribution of our employees at various
levels and also thank all the stakeholders for
supporting us, without which your Company could
not have achieved the level of results reflected
above.
Finally, I convey my personal gratitude for the
confidence that you have reposed in your Company’s
Board of Directors and hope that you will continue
to extend your wholehearted support to us in our
quest for further accelerated progress of your
company.
I look forward to being in touch with you and
sharing my perceptions in future also, periodically.
With regards,
Yours sincerely,
Thanking you,
Yours sincerely,
Chetan M. Tamboli
MANAGING DIRECTOR
PS Our financial results for the year 2005-06
is uploaded under "Quarterly
Results" in this website. Please
visit that page.
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