The legendary Winston Churchill had once commented 'To improve is to change; To beperfect is to change often.' The world needs people who have the ability to change. In thecontext of organizations too the prudent blend of knowledge and transformative success isthe key for any business to grow in a sustainable way. In FY2015 ARIHANT will enter its22nd year of operations. From a business perspective we have learnt to focus on creatingmore sustainable business strategies with the inherent experience of dealing with crestsand troughs of economic cycles.
The year 2014 was another year that our business had to face different problems andobstacles from economic social and political environments.
During the Financial Year 2014 the Indian economy grew by a paltry 4.9%. In fact forthe last 8 quarters beginning with Q1 FY2013 India has now grown by less than 5%.Naturally this has affected real estate businesses. However Your Company was able toachieve 10% growth in revenue over this period.
During the year Your Company has entered into a one time settlement scheme with theHUDCO and made a full and final settlement for the long pending claim filed against theCompany by HUDCO before the Debt Recovery Tribunal (DRT). Your Company has successfullysettled a claim pending against it since 2004. However this has significantly broughtdown the profits of the Company for the year under review.
During the year under review your Company has completed and handed over our projects"ARIHANT PANACHE" comprising of 114000 sq.ft. situated at Arumbakkam Chennai"Arihant Jashn" comprising of 36381 sq.ft. situated at Egmore Chennai and"VILLA VIVIANA - Phase 1" comprising of 305382 sq.ft. situated at GST RoadChennai during the year. A major highlight among these was the Company's project"ARIHANT PANACHE" which stands as a landmark of Arumbakkam and gained strongacceptance in the city of Chennai among the customers.
During the year our associate Company M/s. Escapade Real Estate Private Limited hasentered into a Development Agreement on revenue sharing basis with M/s. Ashiana HousingLimited a Delhi based Real Estate Company for development of 'Senior Living Project' aswell as 'Regular Group Housing Project' on 20 acres (approx.) of land with saleable areaof 9.70 Lakhs sq.ft. at Sengundaram Village Maraimalai Nagar Off GST road Chennai.
Going forward there are only better things to look ahead to. Consumer confidence isincreasing. For the first time in 30 years we have a stable government with a clearmajority and mandate to provide good governance. The union budget presented on the 10th ofJuly seems to bear this out with measures being announced to bring in more FDI boostinfrastructure and create more jobs which certainly bodes well for the overall economicclimate. With specific reference to our industry the decision to introduce Real EstateInvestment Trusts and allow FDI in urban construction projects is a welcome one.
Residential real estate for one has been growing steadily in most markets in India.Between 2008 and 2012 despite the downturn in the markets due to the 2008 financialcrisis real estate in India remained stable with 11 out of 15 Residex cities givingpositive returns in that time frame. As for market direction in 2015 it is forecastedthat the trend will be better than in 2014. This is due to clearer governmental policy andthe stimulation of budget approval. All these represent good opportunity for the realestate business.
Today India stands on the threshold of a new era a new form of governance and valuesthat inspire a 'country-first' approach. There is also a deep hope that an understandingof the country's economic levers will soon restore the economic momentum. Given thedynamic business environment in our country over the years ARIHANT has been exposed toseveral micro and macro challenges. Regardless of this we continued to build our businessand achieve milestones rooted in ethics transparency and the highest standards ofcorporate governance with financial prudence and 'aggression with caution' being ourphilosophy.
Today we truly believe that we are prepared for an active tomorrow as the aid by thetailwinds of a national governance framework resonates with our broader business model andkeeps us committed to enhance long-term value for our stakeholders.
I would like to take this opportunity to express my sincere gratitude to our bankersfinancial institutions Chennai Metropolitan Development Authority and Corporation ofChennai and related departments of Govt. of Tamil Nadu for having supported us on all ourefforts and endeavors and all those who work for or are associated with Arihant. We lookforward to your continued support in the years ahead and wish you the very best.
Chairman and Managing Director