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Ashika Credit Capital Ltd.

BSE: 590122 Sector: Financials
NSE: N.A. ISIN Code: INE094B01013
BSE LIVE 12:13 | 06 Mar 28.70 0.55
(1.95%)
OPEN

28.00

HIGH

28.70

LOW

28.00

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 28.00
PREVIOUS CLOSE 28.15
VOLUME 6156
52-Week high 32.50
52-Week low 25.00
P/E 8.44
Mkt Cap.(Rs cr) 20.06
Buy Price 28.70
Buy Qty 3900.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.00
CLOSE 28.15
VOLUME 6156
52-Week high 32.50
52-Week low 25.00
P/E 8.44
Mkt Cap.(Rs cr) 20.06
Buy Price 28.70
Buy Qty 3900.00
Sell Price 0.00
Sell Qty 0.00

Ashika Credit Capital Ltd. (ASHIKACREDIT) - Chairman Speech

Company chairman speech

Dear Shareholders

The FY 2015-16 once again saw a decline in global growth following fall in globalcommodity prices declining trade flows increased volatility in exchange rates andcapital flow. Slackening demand from China amid lower growth prospects as the countrytransitions from an export led one to consumption driven has pressured on prices of keycommodities. Large emerging economies notably the Russia and Brazil exhibited mutedeconomic performances being commodity exporters. Majority of developing and emergingeconomies lowed to its weakest pace since the global financial crisis of 2008-2009 whilemodest recovery continued in advanced economies.

However Indian economy grew at a five-year high growth rate of 7.6% in FY 2015-16 onimproved performance in manufacturing and farm sectors. According to the CentralStatistics Office (CSO) the GDP growth is estimated at 7.3% in October-December quarterof this fiscal. The GDP growth estimates for April-June and July-September quarters havebeen revised upwards to 7.6% and 7.7% from earlier calculation of 7% and 7.4%respectively. The real Gross Value Addition (GVA) is projected at 7.3% in this fiscalagainst 7.1% in 2014-15.

For the NBFC sector it was another difficult year adhering to tight provisioning normsfrom RBI however demand was seen improving particularly in the latter part of FY2015-16. NBFCs have steadily grown in number and have enhanced their market share givinga strong competition to banks and financial institutions. As of September 30 2015 therewere 11781 Non-Banking Financial Companies (NBFCs) registered with the Reserve Bank ofwhich 212 deposit accepting and 11569 were non-deposit accepting. According to CRISILNBFCs help fill the gaps in availability of financial services with respect to products aswell as customer and geographical segments.

ACCL faced a challenging year. There was nearly 31% decline in our topline incomparison to 2014-15 and owing to our prudent provisioning of non-performing assets tothe tune of Rs. 6.12 crores and a provision for diminution in value of investmentamounting to Rs 2.94 crores (approx) there was impact on the profitability. ACCL reporteda loss of Rs. 8.11 crores (Profit Before Tax) during the year against a profit before taxof Rs. 1.08 crore interest before tax in 2014-15. If the exceptional item of provisioningin the current year is removed ACCL reported PBT would be 0.95 crore. In this FinancialYear also ACCL did not borrow external funds owing to high interest rate and theoperations were funded out of our internal accruals. The average lending rate remained atin range of 16% to 21% ensuring that net interest margins remained significantly high.

Looking ahead in FY 2016-17 we will capitalize on the improving demand and look toimprove the performance of the Company. The Company has all the capabilities and strengthsto navigate through the challenges presented by global and Indian economy. The Companywill continue to be a responsible corporate citizen wherever it operates and is committedto delivering long-term value creation for all its stakeholders.

The Board joins me in expressing our deep appreciation to all the shareholdersemployees the management team and all our partners for their support co-operation andunderstanding. The Management is conscious of your increasing expectations and is gearingto fulfill the same. We remain committed to creating long term value for our stakeholders.

Regards
PAWAN JAIN
Chairman & Managing Director CEO