I am happy to share with you the financial and operating performance of AnjaniSynthetics Limited (ASL) for the financial year 2017. The year was eventful with externalheadwinds that impacted business performance. In the second half of the year theGovernment's demonetization initiative adversely impacted the cash-based Indian economy.The Indian fabric industry was affected as 80% of end users have traditionally beenalmost entirely cash operated.
Despite these macro uncertainties ASL registered a topline growth in FY17. The Companyintroduced new superior products and enhanced its distribution network to drive growth involumes. We have also expanded our overseas presence in key markets and our initiativesare already yielding positive results. However profitability was lower due tointensifying competition pressure from raw material prices and our continued commitmentto investing in several aspects of the business with an eye to future growth.
During the year we have made some key strategic initiatives to expand customerengagement. Having invested in brand building people and growing our footprint we remainconfident of emerging as a leading player in the fabric sector. The long-term growth storyis intact with macro factors such as improving infrastructure increasing economicactivity. With the implementation of GST and due to lasting effects of demonetization weexpect that organized players like us will gain more traction.
Over the years ASL has gained prominence as a premier fabric provider with a broadrange of products that deliver excellent performance in diverse weather. We will continueto build and expand presence in the ensuing fiscal year by expanding our production systemand by offering comprehensive products to customers. In conclusion we are enthused aboutfuture opportunities and believe that our focused initiatives will help us to deliverenhanced business performance over the long term. I would like to thank all our colleaguesfor their high level of commitment that we believe will take the Company to greaterheights in times to come. I would also like to express my deepest gratitude to all mycolleagues on the board for their significant contribution towards providing direction toASL s performance.
I am deeply thankful to our customers business associates suppliers bankers andlegal authorities for their loyalty and trust in us. Lastly my sincere appreciation toall our shareholders for continued support in our journey to create long-term value.
VASUDEV S. AGARWAL