Amal Ltd 2019-20

Amal Ltd | Annual Report 2019-2020 Letter to the shareholders Fellow Shareholders, We are delighted to share with you the 2019-20 Annual Report of our Company. As we had shared with you in the last Annual Report, our priority was to stop loss which our Company was incurring from 2003-04 until 2015-16, except in 2013-14, when it had made a small profit before tax of ₹ 1 cr – without significantly infusing new capital. Since then, the Company has consistently improved its performance; it achieved a small milestone of profit before tax of ₹ 13 cr in 2019-20, which was the highest in last five fiscals. Our Company brought down its carried forward loss from ₹ 56 cr to ₹ 9 cr over the last 12 fiscals. Our Company invested ₹ 5 cr during the last two fiscals to strengthen the manufacturing operations. We are continuing to work on more initiatives to improve efficiency and utilisation. Our second big priority is to seek growth. We are evaluating a few projects which have synergy with the current operations, keeping in focus, amongst others, market attractiveness and ability to compete. It will be our endeavour that our Company delivers a decent return on investment and we will keep you updated as we move ahead decisively with such an investment. COVID-19 has caused unprecedented slowdown of economic activities across the world. We have assessed its impact on the operations of our Company. Based on our understanding of the economic activities, particularly related to our product portfolio (and their end uses) and our assumptions, the impact on our Company will be short-term. We have considered various scenarios and carried out sensitivity analysis and will take appropriate measures to face the downturn and accordingly evolve the way forward. We value the commitment and determination of our team members who are tirelessly involved in strengthening our Company and thus creating value for all the stakeholders. We are grateful to the Non-executive Directors for their involvement, analysis and guidance. As always, we appreciate your faith, patience and support; we know you have waited very long for dividend and that our Company has a long way to go. As we turn another page of our lives, we want to assure you of our total commitment to the tasks on hand, so that we may go as far as our dreams and toil take us. Sincerely, (Rajeev Kumar) (Sunil Siddharth Lalbhai) Managing Director Chairman office building at Ankleshwar, Gujarat www.amal.co.in/COVID-19/Resumption_of_operations_inthe_midst_of_covid_19.mp4