The company’s outlook seems grimmer than ever. The loss carried from previous years is many times bigger than its annual revenue (which is rapidly declining every year) and the company is barely able to sustain its daily operations.
Since our last report, despite a strong customer base led by
our long term relationships with key OEMs in the Optical
Media space as also healthy growth prospects within the
Solid State Media and Solid State Lighting segments,
your company had to face severe headwinds caused
principally on account of severe liquidity constraints
resulting in lack of working capital to fund operations in
order to meet the on-going business opportunities. The
company made every effort within its means to augment
its liquidity, whether in terms of securing additional
customer advances, enhanced vendor financing, sale of
noncore assets as also a continuing dialogue with lender
banks towards restructuring and resolution of the existing
debt. However, despite our perseverance, the efforts did
not yield the desired results and the resultant shortfall in
liquidity has led to a progressive decline in our operations.
During this period, every effort was made to rationalize
costs, and while healthy progress was made towards
optimizing the cost structure, this was not adequate to
compensate the shortfall in overall margins, resulting in
higher levels of stress and financial strain.
We continue to work on garnering support from all our
stakeholders including banks and financial institutions,
customers, vendors and other business associates to
help us through these difficult times and I remain fully
committed to help us traverse this path. We have done it
in the past and I see no reason why this cannot be done
in the future. However, it must be said that there is still
some way to go to achieve the requisite consensus as also
to impart the much needed liquidity to be able to tread
the potential revival path.
MOSERBAER_AR_2017-FULL.pdf (916.4 KB)