It is with great pleasure that I present to you the 47th Annual Report ofyour Company Aries Agro Limited.
During the year under review 2016-17 the monsoons recorded All India average of 97% ofthe LPA (Long Period Average). The Kharif rainfall was as per expectation. However thewinter rains especially in South India were extremely deficient. The second half was alsoaffected by demonetization which restricted sales and collections for almost three monthsbefore conditions improved towards the end of the fourth quarter. Stress on the ruraleconomy post demonetization required the Company to provide extra schemes to ensurecontinued funds inflow during the second half of the Financial Year 2016-17 registered agood Kharif with 25.70 % growth in H1 and a subdued Rabi with growth of 11.37 % inrevenue. Strong cost control measures were put in place and hence profitability (PAT)increased by 85.15 % compared to the previous year.
The credit for increase in revenue is also attributed to the success of theCompany'sfirstever flash sale conducted on 20th April 2016 which resulted in an order bookbeing created in the beginning of the Financial Year. 75.83% of the order book wasconverted during the Financial year. Orders received during the Flash Sale boosted betterworking capital management.
The Company introduced five new products namely Mobomin Crackguard Boon-o-MilkTracemin and K-phonic
The total capacity utilization currently stands at 58% of the total installed capacityof 84600 MT p.a. in India. During the year we took a decision to close the operations inone of our international manufacturing facilities at UAE namely Golden Harvest Middle EastFZC and sell the machinery which was eight years old and purchase identical set of newmachinery in India for installation at Hyderabad and Chhatral manufacturing units. Thiswas required in the context of changed import duty structures which has made manufacturingin India most viable and cheaper.
International clients are located in Bangladesh Ghana Kenya Nepal Vietnam andTaiwan. Distributors in Nepal and Vietnam have invested in branding and promotion of ourrange of products in their respective countries. Exports constituted 12.50 % of our grouprevenue during the Financial Year 2016-17
Aries was selected for being amongst the top 100 SMEs in India and was conferred theSkoch Order of Merit 2017 We were also awarded the National Record by Limca Book ofRecords for the largest Flash Sale of specialty plant nutrition products conducted duringApril 2016 at Bombay Stock Exchange International Convention Center Mumbai.
Aries was awarded the highest independent honour in India the Skoch Gold Award 2017for our consistent work serving Indian farmers.
For Twelve consecutive years Aries Quality Management System was audited and certifiedas NS-EN ISO 9001:2008 with zero non-compliance report showing complete adherence tointernational quality standards.
Aries continues its tradition of carrying out a range of activities that spreadknowledge and adoption of farming best practices in the markets that Aries functions in.
The company undertook activities focused specifically on supporting school aged girlsacross India and supported education various rural schools. We also supplied Braille Kitsand Hearing Aid Machines for the differently abled.
The Company's Call Centre based in Vijayawada continued to provide answers to farmers'queries. During the year under review over 5000 number of farmers called the call centerat Vijayawada with queries on integrated nutrient management pest management soil healthand post harvest management. During the year under review almost 6000 knowledgedissemination activities including farmers meeting were undertaken impacting over 70000number of farmers. These sessions were conducted by team of 71 extension officials spreadacross 20 states.
Aries organized various state level farmer conferences in 20 States. The unique featureof these events have been that they had participation on a common intellectual platformfrom top government officials opinion leaders academia research scholars scientistsagribusiness students and farmers from across the states.
The Company also organized soil testing camps in 3 major consuming states using MobileSoil Testing Kits.
2017 monsoons are expected to be 98% of normal and the Company is hopeful that it willachieve good growth in revenues and profitability. A series of dealers meetings andbooking bazaars were conducted during April 2017 and orders with payment instrumentstotaling to Rs. 305.88 Crores are in hand with bookings made by 1250 number of dealers.Other major focus areas for the year ahead include Increase penetration in Acquaculture anon monsoon dependant sector increase in exports in Asian Region after receiving ExportLicense and launch of slow release granules for some existing soil applied productsThrough its products and passion Aries continually demonstrates that it is a responsiblecorporate citizen working hard to retain the delicate balance of nature and thedevelopment of communities where it works and grows.
Dr. Rahul Mirchandani
Chairman & Managing Director