"At Arfin we help bring simplicity to our customers. They recognize us as a truestandard bearer of Aluminium Products having great standard best in quality because werespect their requirements as well as the environment."
We are pleased to share with you the Annual Report of your Company for the financialyear 2016-17. During the year your Company has delivered strong performance achievedGross Sales of Rs. 40626 Lacs Profit After Tax of Rs. 1301.77 Lacs with EBIDTA marginsof 8.12% of Net Sales. The Basic Earnings Per Equity Share has been increased to Rs.40.08. Your Company has sold 24100 metric tons of goods during the year. We plannedbetter delivered better and worked harder to achieve the desired results. During theyear the Company's bottom line has almost doubled in compare to previous year.
The stark performance by the Company during financial year was the result of anextensive hard work and focused approach to the business. We continuously strengthened ourmanufacturing processes optimized costs reduced waste and minimized environmentalhazards. We have created robust portfolio of products to supply across the Steel SectorAutomobile Sector and Power Sector. We have created a product basket targeting multiplesectors protecting ourselves from an excessive dependence on any one segment. We widenedour product portfolio to be protected from a fundamental risk of being supplying inlimited products and sectors.
We strengthened our supply chain to meet the timely delivery of goods to maintainoptimum level of inventories.
"It is often said that great Companies aim for quality and commitment to theircustomers. Our extensive portfolio of Aluminium Products places the Company in the leagueof leading Aluminium Products manufacturing Companies that have strong emotionalconnection with their customers."
The result of all these initiatives was that we have reported significant profitablegrowth during the year under report.
During the year the Company has raised equity funds of Rs. 1807.50 Lacs throughpreferential issue of convertible warrants to promoters and public shareholders which hasresulted in strengthening of the Balance Sheet. The Company has also initiatedamalgamation of Group Company Mahendra Aluminium Company Limited with Arfin IndiaLimited. It will strengthen the Arfin on account of consolidation of business activitygreater efficiency in the overall business and integration of business operations as wellas synergy benefits through combined operations of both the entities. Since the productsof both the Companies are similar in nature the contemplated amalgamation will lead toeconomies of scale which in turn will promote cost efficiency by means of reduction inadministrative overheads reduction in multiplicity of legal and regulatory compliancesand help run the business more effectively and economically resulting in betterutilization of resources.
The core business portfolio has performed very well with all the key segments postingsteady growth led by Alloy Cored WireAluminium Deox and Aluminium Wire Rod businesses.Alloy and Cored Wire businesses have outperformed through robust increase in sales andvolume in compare to previous year. Sales from Cored Wire business is almost double andAlloy business sales has increased to more than 5 times in compare to previous year.
"Your Company has been awarded under "India SME 100 Awards" amongst41832 nominations for the category."
During the year the Company has commenced commercial production and sales from MasterAlloys and Ferro Alloys plants. Second plant of Cored Wire got operational during theyear.
The year was marked by two major domestic policy developments the passage of Goods andServices Tax (GST) and the action to demonetize the two highest denomination notes. TheGST will create a common Indian Market Improve Tax Compliances & Governance and boostthe investment & growth. Demonetization has had short term costs but holds thepotential for long term benefits. Follow up actions to minimize the costs and maximize thebenefits include fast demand driven re-monetization further tax reforms and reducing taxrates. These actions would allow growth to return to trend in 2017-18.
Despite the challenges we have achieved good results. This has been largely due toideal cost Management focus on efficiency improvement productivity and customercentricity. We have done well both in terms of revenue and earnings. The topline andEBIDTA achieved has been the highest ever.
I would like to assure you that all our employees are working extremely hard with greatdedication high energy and strong commitment for your Company. I sincerely thank themall. I would also like to thank all our stakeholders for reposing their faith in us andthanks to our regulators for their constant support and guidance.
I also express my thanks to all fellow Directors for their invaluable contributionthrough their guidance and encouragement which have been momentous for the success of theCompany. Finally I thank each and every shareholder large and small for your supportand trust.
I must end with optimism that your Company continues to do things better and doing sointends to enhance value for all its stakeholders in a sustainable way.
Mahendra R. Shah