PremierLtd. Chairman Speech

Dear Shareholders,



The year under review has been extremely challenging and difficult for

your Company. Sales revenue was down by 13.65% from Rs. 205 Cr. in the

previous year to 177 Cr. in the current year. This is mainly on account

of extremely adverse conditions prevailing in the sectors your Company

operates in, such as automotive, auto component, wind energy and

infrastructure. This has adversely affected profits for the year

resulting in an overall Net loss of Rs. 45.83 Cr.



The CNC Machine division struggled for orders due to virtually no fresh

capital expenditure spending by both, private sector companies as well

as Government organizations / PSUs. The wind energy sector had crashed

for the past 2 years, due to removal of certain incentives by the UPA

Government. Although this was restored, it has taken time for wind

turbine companies, who are our customers to revive, thereby affecting

sales. Similarly infrastructure projects in power, metro rail etc.

where we supply equipment remained very sluggish during the year.



Besides, reduction in revenue, the Company had to make higher

provisioning for depreciation and amortization, rising by nearly 24.15%

from Rs. 32.75 Cr. to Rs. 40.66 Cr., due to the new provisions in the

Companies Act 2013. The Company also faced a high interest burden that

it is working on to bring down through real-estate sales and reduction

of receivables and inventory.



The current year is expected to show improvement in terms of sales

growth as there are now signs of revival in the wind energy sector and

increased Government buying for CNC Machines. Our Management team is

working hard to increase production despite cash flow stringency and

return to profitability.



Your Company is entering into long term supplier relationships with the

Hyundai group and the Alstom group for various Metro rail projects in

India and overseas. This should start adding significant sales revenue

in the next few years. We have also started exporting wind mill parts

to Europe and expect to do about Rs. 20 Cr. of exports during the

current year. I expect the current year to be one of consolidation and

stabilization for your Company.



I would like to thank all the Company stake holders for their support

during this challenging period for the Company and offer my heartfelt

condolences to our late President, Mr. M. D. Adhikari''s family on his

sad demise in March this year.



With regards,



Maitreya V. Doshi



Chairman & Managing Director



Date : 30th April 2015

Place : Mumbai