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Aarvi Encon Ltd.

BSE: 535014 Sector: Others
NSE: AARVI ISIN Code: INE754X01016
BSE 05:30 | 01 Jan Aarvi Encon Ltd
NSE 09:34 | 14 May 52.00 0.15
(0.29%)
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Aarvi Encon Ltd. (AARVI) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me immense pleasure to present you the 32nd Annual Report on the performanceof your company for the FY 2019 -20.

You will be glad to know that your company performed well for the FY 2019-20 and it hassuccessfully migrated trading of its equity shares of the Company from NSE Emerge Platformto the Main Board of NSE Ltd on June 24 2020.

Your Company's standalone turnover is Rs.191.83 Crores in FY 2019-2020 which showssustainability and stable growth as compared to previous year. Net Profit of the Companystands at Rs. 3.78 Crores in FY 2019-20 compared to Rs. 5.83 Crores in FY 2018-19 whichshows decline in profits as some of the projects turns out to be less profitable due tounhealthy competition in the market Increase in Fixed Cost i.e Deputees Salaries etc.

On Consolidated basis The Company has achieved turnover of Rs. 218.64 Cr. and Netprofit of Rs. 7.17 Cr. during the FY. 2019 - 20.

The Company has been rated as SME-1 by CRISIL for ‘Highest Credit Worthiness' for13th year at a stretch.

The ratings continue to reflect an established market position in supply of technicalmanpower. CRISIL believes AARVI will continue to benefit from an established marketposition and improved financial flexibility.

There have been slow down dues to COVID-19 and people working from home. There havebeen delay in implementation of few projects and hence delay in fresh mobilization of newmanpower on these projects. As a country may benefit from company leaving China as primemanufacturing base and moving to India we are keeping close watch on these companies.

After successful implementation of UAE branch Aarvi is evaluating branch offices inOman Qatar and Indonesia.

You will be glad to know that AARVI ENCON FZE based in UAE is doing good work alongwith ‘Bon Accord' company in Abu Dhabi. Now it has became a material subsidiary ofthe Company which has contributed more than 10% revenue in consolidated income of ParentCompany. The turnover of the subsidiary Company is Rs. 26.83 Crores and net profit of 3.41Crores approx. These figures are growing very fast and we expect good result in FY 2020-21provided the external factors remain in favor of the Company.

We are happy to announce that your Company did a very large offshore jobs for TurkishPetroleum Company in last quarter of FY 2019-20.

Due to ongoing Covid-19 Pandemic across the globe there is no significant impact onthe operations of the Company. The Company has allowed its employees to work from home andthereby it has been able to maintain the operations smoothly in these tough times. TheCompany is following government directives regarding the health and safety measures ofemployees and has encouraged all employees to practice work from home till the situationgets stabilized or improve.

This Covid Pandemic and lockdown situation may cause delay in income accrual in nearfuture. We believe the sales and profitability of FY 2020-21 is likely to be impacted. TheCompany is closely monitoring the situation and will take the action accordingly.

Your Company has spent Rs. 13.45 Lakhs towards CSR activities across the country byproviding various medical support to the needy people supported many educationalinstitutes. In FY 2019-20 the Company through its CSR partnership with Saifee Hospitalcould help many patients in need for their immediate treatments especially in accidentcases. The Company looks forward to take various initiatives across livelihood educationwater sanitation and health to create measurable impact for communities around our areasof operations.

The Board has proposed dividend of 10% i.e. Rs. 1 per equity share subject to theapproval of the members of the Company at the ensuing 32nd Annual GeneralMeeting (Third AGM Post - IPO of the Company).

At this moment I would like to express my gratitude to all stake holders for theircontinuing faith in the company.

Thanking you once again and assure you of better results in future.

Your Sincerely
Sd/-
VIRENDRA D. SANGHAVI
Managing Director

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