On behalf of the Board of Directors and on my own behalf I feel proud to present the11th Annual Report for the FY 2015-16.
The Indian Governments empowering initiatives like "Digital India" and"Make in India" are designed to propel our nation to become a world-classcountry and your Company will keep evolving to meet the growing consumer needs acrosssegments while cementing its dominance over the LMI customer. The Launch of " HousingFor- all by 2022" scheme in 2015 gave birth to a new evolution in HousingFinance Sector resulting in the much needed boost to real estate and housing financeindustry.
Your Companys core offering comprises housing loans SME loans mortgage loans.Majorly Companys loan portfolio comprises housing loans given for purchase of homesextension & improvements and self-construction.
For the last 8 years we have helped several Indians belonging to Lower and Middleincome segment to mobilize funds to buy or build their own homes. In the process we havebuilt strong relationships with our customers and have amassed deep customer insights. Wehave built the systems for delivering best-in-class customer experience and expertise forassessing credit worthiness financial protection needs and alternate savings options.
At ASHFL we listen to our customers aspirations help assess their capabilities;and devise solutions to meet their needs. This enhances their trust in our brand; and wecontinue to strengthen the trust our customers place in us.
High quality mortgage backed secured lending has been the bedrock of our business. Wecontinue to diligently focus on maintaining tight underwriting standards asset qualityprofitability in our business and effective leverage of technology. All of this hasensured that the Company maintains its healthy growth trajectory and continues to build ascalable and sustainable business.
It gives me immense pleasure to report that your Company registered a strongperformance in FY 2015-16. Your Companys continuous vision of empowering the lowerand middle income segment and focusing on being a trusted partner to customers has helpedit stand in good stead.
During the year your Company grew consistently witnessing a steady increase inrevenue and profits. Your Company not only offers housing loans but also mortgage loansand builder loan for construction of residential flats indicating that yourCompanys relationships go beyond just financing a house.
Our Companys main aim is to maximize its shareholders wealth which isclearly reflected in the financial statements as EPS of your company increased from 1.52to 1.95 during the year under review.
During the year ended March 31st 2016 the Companys total revenue increased from201.83 Lacs to Rs. 272.35 Lacs Profit before tax increased from Rs. 97.99 Lacs to Rs.168.93 Lacs and Profit After Tax increased from Rs. 66.69 Lacs to Rs. 115.52 Lacs. The NetOwned Fund (NOF) of the Company as on March 31st 2016 stood at Rs.1653.78 Lacs.
We are looking at the Housing Scenario at a stage when the national economy is on theroad to revival industrial growth rate which was at a low of 1.5 percent is now a littleover 5 percent. The potential for housing in this country is by NHB estimates around 20million houses which is huge. This means that a lot of investments can be expected in thecoming years. There is also talk of foreign direct investment coming in which will add tothe capabilities of the financial sector in meeting the requirements of housing. As far asavailability of finance to the retail customers is concerned there has been a tremendousimprovement in the last few years. The other significant factor that has kicked up a lotof activity in the recent past in the housing sector is todays steadily fallinginterest rates of loans. The customer who is purchasing a house today has not only theoptions of competitively low rate of interest but also choice of different types of loansstarting from the house-purchase or house-building loans to house-improvement loans etc.
Your Company remains committed to deliver economic empowerment to the least supportedcitizens of our country whilst delivering value to all stakeholders. Your Company is wellpoised to leverage an innovation and technology-led business model that empowers peopledelivers profits and protects the integrity of financial services in our country.
Corporate Governance :
Your Company complies with the Corporate Governance guidelines for listed companiesenunciated as per SEBI (LODR) Guidlines 2015.
The Board of Directors places on record its deepest appreciation of the valuableservices and dedicated efforts rendered by the employees of Akme Star Housing FinanceLimted and other stakeholders in achieving the high performance objectives during theyear 2015-16.
I look forward to the continued support of all our stakeholders in taking your Companyforward on the journey of sustainable and profitable growth.
With best wishes
Mohan Lal Nagda
Chairman & Managing Director