It gives me great pleasure and immense pride to present you the 14thAnnual Report on the performance of your Company for the year 2018-19. It has been 1 yearof sad demises of Mr. Mohan Lal Nagda Ex Chairman & Managing Director of our Company.1 year of journey without his guidance was very challenging. His brilliance passion andenergy were truly missed and it cannot be fulfilled.
I would like to thank all stakeholders for the steadfast support andunwavering confidence reposed in the Company through thick and thin. It is this consistentfaith and support that has enabled your Company to suitably strategize and adapteffectively to the truly historic and groundbreaking policy changes that the country hasexperienced in the past 12 months.
I shall confine myself to very briefly mentioning the salient operatingresults of the Company during the year 2018-19 that Net profit stood at Rs. 431.73 Lacsan increase of 49.13 per cent. EPS for FY'19 was Rs. 3.57 as compared to Rs. 2.43 forFY'18.
These figures broadly indicate that your Company has been able tonavigate through the difficult challenges of the recent past relatively more effectivelythan many of our peers in the housing industry. This has largely been due to the strongfundamentals of your Company and the foresight of your Management in putting into place abusiness strategy based on its core competencies.
Your Company raised fresh term Loan of Rs. 2.5 Crores through Term LoanFrom Mahindra & Mahindra Financial Services Limited Rs. 3 Crores through term loanAvanse Financial Services Limited Rs. 6 Crores through term loan from Hinduja HousingFinance for meeting the working capital requirements. Presently Company is in line up withmore proposals with banks and Financial Institutions for meeting the working capitalrequirement of the company in FY 2019-20.
The Outstanding Bank Borrowing as on 31.03.2019 stood at Rs 4196.88.Lacs
As you are well aware the Government of India under the dynamicleadership of the Prime Minister Shri Narendra Modiji has ushered in a series ofstructural reforms aimed at propelling the nation forward towards a path of rapid economicgrowth and development. These visionary initiatives have significantly altered thebusiness paradigm in all sectors of the economy.
Now that the Government has taken bold and decisive steps to
initiate game changing reforms I am glad to report that your Companyis well positioned to navigate through the critical period of adjustments and coursecorrections that lie ahead. This is largely due to the patience and cooperation of allstakeholders who have fully supported the Management's blueprint for structural changeswithin the Company and roadmap for reorienting ASHFL core product portfolio in tune withthe anticipated changed business environment.
As the youth mass of the India are now more enthusiastic and energeticdemand for housing loan has been increased due to improved living standard. We at ASHFLassure to contribute in the economy by performing at our best to meet with the risingdemand of the home loan and other approved loan services.
Corporate Governance is step towards growth
Governance is the comprehensive process by which we intend to manageour Company. Good governance will be the insurance against sectoral volatility that makesall earnings growth sustainable.
Good governance comes primarily from an association with the rightpeople - starting from the promoters Board of Directors professional managers capitalproviders quality of customers and community engagement.
I am pleased to report that the promoters & Directors of Akme StarHousing Finance Limited come with a multi-user experience of having worked in India'sbanking and nonbanking finance spaces across market cycles companies and geographies.
At ASHFL we believe an ethical framework represents the most criticalinfrastructure. This influences something more relevant than the cost at which we mayfinance home ownership.
'Discipline' is that operative word that ensuressuccess in a mortgage sector.
Service the loan on time and in full stay engaged with the customerduring the loan life cycle borrow cost-effectively and generally live with a liquidBalance Sheet translating into a superior credit rating. Success then in our business isnot just about doing the right things comprehensively and consistently but also about notplaying to the gallery by addressing fleeting opportunities for the moment that enhanceour quarterly numbers but affect our long term viability. Long-term success in thisbusiness is derived from exercising only select options deepen competence in selectareas refuse to be tempted by
strategic distractions and stay true to a long-term discipline. Indoing so we have made a conscious decision in favor of growing conservatively butconsistently as opposed to growing rapidly but erratically.
Building an institution of respect
The focus of our Company intent is to be deeply trusted. We believethat trust represents the lifeblood of our business. The more we are trusted the strongerthe employee traction the more capital lenders will provide resources and the longer ourinvestors will stay with invested across our journey. ASHFL has been pursuing a businessobjective that is not as much about emerging as the largest or fastest growing Indianhousing finance company as much as about the prospect of growing sustainably.
I would also like to place on record my appreciation for the
sincerity hard work and dedication of the entire Akme Star HousingFinance Limited team for contributing to our Founder's vision Late Dr. Mohan Lal Nagda andbuilding ASHFL into a successful and meaningful entity.
On behalf of my fellow-directors and the entire ASHFL corporate familyI renew our pledge to remain committed towards building a New India.
|With best wishes |
|Ashish Jain |
|Chairman & Managing Director |