It gives me immense pleasure to write to you at the dose of First Finandal Year whichwas a landmark year for Bigbloc Construction Limited. Let me begin this letter with abird's eye view of the Indian economy then move on to what is happening in infrastructureand the construction industry and end with a brief discussion on your Company.
According to the latest estimates of GDP and Gross Value Added (GVA) released by theGovernment of India's Central Statistical Organisation the Indian economy is certainlygetting back to a higher growth path. For 2015-16 real (or Inflation adjusted) GDP hasgrown by 7.6% up from 7.2% in 2014-15. That makes India the fastest growing largecountry In the world with a growth that not only exceeds any developed nation but alsomajor emerging economies such as China.
Regarding the infrastructure sector with special focus on the country's constructionindustry the situation is quite grim. The Government of India has clearly recognized thisand launched several reform measures to boost sectors like roads railways powerdistribution rural and urban development. The Union Budget 2016-17 has allocated * 2.21lakh crore for the infrastructure sector. Also the general budget 2016-17 earmarked anamount of Rs. 3205 cr. for the development of 100 smart cities across the country by2020 while nearly Rs. 4091 crores for Atal Mission for Rejuvenation and UrbanTransformation (AMRUT).
Your Company is marketing its products in the region of Mumbai Navi Mumbai ThanePune Nashlk Valsad and Vapl regions. Recently the Navi Mumbai International Airport(NMIA) project received its final approval. This will lead to development of hugeinfrastructure In the area ranging from Ghodbunder to Lonavala. Thus demand for AAC blocksIs expected to rise in this region in near future.
Moreover GST bill has recently been passed and it is expected to be implemented from1st April 2017. As per model GST law it seems GST will prove to be beneficial for yourcompany as the taxes on Companies products shall remain unchanged if not reduced but thetaxes would be implemented on products like Red Bricks which are a direct substitute andwhich is currently non-taxable item. Thus this would result in higher demand for theCompany's products.
Looking at all the above factors I am quite sure that the Company's future is verybright. We look forward to continuing along our successful path together with you.
Let me now move to the performance of your Company. I am pleased to inform you thatyour Company has successfully completed its First Financial Year i.e. 2015-16 with Netprofit after Tax of Rs. 70.17 Lakhs.
The Board of Directors of the Company has proposed a final dividend of Rs. 0.20/- perequity share of face value of Rs. 10 each in its First year itself.
The Hon'ble high court of Gujarat has vide its order dated 22nd February 2016sanctioned the Scheme of Arrangement and Demerger between Mohit Industries Limited andBigbloc Construction Limited and their respective Shareholders and Creditors under Section391 to 394 of the Companies Act 1956. With effect from appointed date i.e. 01st April2015 all the assets and liabilities of AAC Block Division of the Mohit Industries Limitedbecomes assets & liabilities of Bigbloc Construction Limited ("BCL").
Also your Company is in process of getting its shares listed on BSE and NSE.
I would like to thank all our consumer employees. Suppliers who are directly orindirectly associated with the company for their support and commitment which helped usto reach where we are now.
I would like to thank our shareholders for their trust and encouragement and assure toserve strong Profitable and Sustainable Growth.
With Warms regards
Mr. Narayan Sitaram Saboo
Bigbloc Consruction Limited