AKRUTI CITY LIMITED
ANNUAL REPORT 2007-2008
It is gives me great pleasure in presenting the Twentieth Annual Report
for the year 2007-2008 in which your Company recorded commendable
performance both in terms of revenue and profits. The salient features are.
* Total income of Rs. 47378.83 lacs against Rs. 18652.65 lacs in the
* Operating Profit of Rs. 39703.91 lacs against Rs.11104.72 lacs in the
* Net profit of Rs. 29514.33 lacs against Rs. 7547.78 lacs in the previous
Against a backdrop of the economic slowdown, shareholders globally are
worried about the return on their investments. They are growing more
concerned about issues like governance and transparency. It is during such
tough times when companies with a culture of accountability and
transparency are valued. We at Akruti have always focused on processes and
systems to ensure accountability, transparency and quality. The financial
year 2007-2008 has been a landmark year in this respect. Your Company has
successfully set up new processes and systems in various departments across
the company to create a more efficient, productive and responsible
While the country's economy is on a strong growth path, inflation is
threatening to slow down the overall growth rate. A tighter monetary policy
and higher interest rates present a challenge to India Inc., including the
realty sector, to complete projects within stipulated costs and time.
Your Company has, in the short term, focused more on execution of projects
rather than building land bank. All the projects of your Company are on
schedule and steps have been initiated for completion well ahead of
schedule. The coming few months will see your Company strengthen its
presence in Gujarat and Karnataka. We have also received clearance
certificates for most projects, and your Company's growth prospects are
The medium term picture looks stable. In the medium term we expect land to
be available at realistic prices which would enable the Company to build a
larger, reasonably priced land bank.
To ensure that Akruti stays on its growth path, we are investing in
intellectual and human capital and constantly upgrading our systems and
processes. Simultaneously, we are also identifying and foraying into a
newer geographies and growth areas to give stable and consistent returns on
To sum it up, I would say that 2007-2008 has been an important year which
has seen Akruti embark upon several new ventures, enter into new
territories and acquire new customers.
The current fiscal year is full of challenges - runaway inflation s
spiralling global crude prices, higher interest rates, liquidity crunch and
falling demand. Let us take the challenge and work together to take the
Company to newer heights. Our efforts to conduct our business as cost
effectively as possible will continue, and I look forward to another year
of good performance.
I take this opportunity to express my gratitude to various stakeholders
for their wholehearted co-operation and ' look forward to your continued
support and patronage in the future.
Hemant M. Shah