WELCOME TO THE 25 ANNUAL GENERAL MEETING OF ASHIANA ISPAT LIMITED
I am happy to present the Annual Report of Ashiana Ispat Limited for the Financial Year2016-17. Given the backdrop of slow market growth volatile input cost environment andheightened competitive intensity the operating environment for your Company during theyear continued to be challenging. In a year when almost all sectors barring fewcontinued to feel the ripples of the slowdown Ashiana Ispat Limited improved its EBIDTAby 35.26%. I am pleased to inform that Ashiana has recorded revenues of Rs. 22878.93 lacs.PBT showed a improvment to Rs. 444.36 lacs from Rs. 87.54 lacs while Net Profit hasjumped by 378.92% from Rs.64.76 lacs in 2015-16 to Rs.310.15 lacs in 2016-17.
Your company is pinning hopes on the plans chalked out by the Government to bring arevival in the economy. Our endeavour lies in further scaling up our emerging business andestablishing ourselves as an impactful player in structural steel in the entire NCRregion.
As the environment mends and newer paradigms emerge it will be our effort to stayahead of the curve. By 2050 about 843 million people are expected to reside in the urbanareas accounting for about 50 per cent of the overall population.
The Smart City Mission (SCM) of the Centre is part of the overall game plan toaccommodate the massive urbanisation that is expected in the future by modernising theexisting mid-sized cities.
Infrastructure is another big opportunity involving diverse activities road and flyoverbuilding development of city centre bridges schools hospitals offices retail etc.and so on. It also means bringing in even greater efficiency and productivity so that thefinancial parameters can move to higher levels. Steel demand has outpaced supply over thelast five years.
Recently there were two important landmark economic policy developments that took placein India: a constitutional amendment making way for the goods and services tax (GST) andwithdrawal of legal tender of high value currency notes ('' 500 and ''1000) which intendsto curb black money and running of a parallel economy. With a slow start in 2016 theeconomic momentum recovered towards the middle of the year. While this growth momentum wastemporarily impacted with demonetization the India economy appears to be recovering fastand will continue as one of the fastest growing nations. We remain committed to our visionof bringing sustainable solutions in every sphere including societal commitments. Ouroperational excellence program has started yielding results. Our processes have beenstrengthened. Our teams are empowered to deliver on the commitments. What is required isscaling up combined with profitable returns for our stakeholders.
With a proven track record of fast-tracking innovation to market a fully empoweredteam and experienced leadership at different levels not to mention a strong balancesheet your Company looks forward to re-shaping its future. It is the way for us to renewourselves and at the same time explore into the new horizons.
There are a few challenges that we still need to address like your Company is operatingin an industry that faces price volatility in raw materials. We are addressing all ofthese challenges simultaneously and are sure in the very near future; these challengeswill all be behind us.
Steel sector is the backbone of the Indian economy. Government is also providingcertain measures to provide thrust to Indian Steel sector. Historically steel has beenone of the fastest growing commodities and this trend is likely to continue therebyauguring well for overall progress of the Industry.
Your Company has significant strengths and being "ASHIANA" in itself is abigger strength because the names like trust and quality are associated with the Company.Ashiana always put emphasis on becoming a customer centric delivery-focus organization. Itconsistently put focus on innovative techniques and implementing best industry practices.The Company is an integral part of Indian society and has state-of-the-art manufacturingfacilities efficient supply chain strong brand and capable employees who are committedto provide value with high quality and integrity.
Our employees are the mainstay of the organization. We at Ashiana always put focus onenhancing the skiils innovation creativity and overall improvement in the caliber of theemployees at all levels. Ashiana is working towards creating a simpler and diverseorganization that will help it to innovate better and move faster. We focus on creating awork culture where employees feel empowered and are engaged to the best of theircapabilities. At Ashiana people work on Jain system of business ethics thereby bringout a harmonious blend of religious values with the modern style of management to headtowards a transparent and content organization.
On behalf of the Board of Directors and the Management I would like to place on recordyour Company's sincere appreciation of the continuing patronage and support of allstakeholders without which it will be impossible for the Company to scale new heights andachieve new levels. I would also like to extend my heartfelt gratitude to the employees ofthe Company for their timeless commitment for enhancing the well-being of the Company. Itis the unmatched support of the shareholders and bankers that has helped Ashiana climbingthe stairs of success.