We are adding value by creating infrastructure along with a strong activity orientationwhich is amenable for overall development of the child.
The year gone by was an eventful one with the industry witnessing the aftermath of farreaching reforms like RERA and GST over the last 2-3 years. We believe that these reformswill have a sustainable positive impact on the industry in the long run. While GST willenable making India as one of the fastest growing economies RERA will make the sectormore transparent and safeguard the interest of all the stakeholders. With changes likeRERA customer expectations are also evolving. The industry is entering a new era ofconsolidation and we see a great opportunity for the organised developers leading the way.
Along with continuous focus by government on the real estate sector trends likeincreasing urbanisation budgetary push for affordable housing and an increasingmiddle-class population will continue to drive growth in the industry.
With the sector showing gradual cyclical upturn we also witnessed improvement in ourbooking to 10.79 lakhs sq. ft. in FY19 vs 6.93 lakhs sq. ft in FY18. The growth wassecular as we saw improvement across all our markets vis a vis previous year barringLavasa (Pune).
In terms of the execution we recorded an EAC (Equivalent Area Constructed) of 7.68lakhs sq. ft. (AHL: 5.31 lakhs sq. ft. and Partnerships: 2.37 lakhs square feet). Ourconstruction has been generally in line with our commitment. We have been selective inlaunch of new phases and kept our phase size smaller to keep the construction in line withslowdown in our sales. This helps us to keep build unsold inventory in check and preserveprecious cash.
Operational Cash Flows turned positive and improved vis a vis last year due to bettercollections resulting from higher booking. (Positive at Rs.6.41 Crores in FY19 versusNegative of RS.20.21 Crores in FY18).
Another significant development during the year was the initiatives we took for growthof our Human Capital like 23 days orientation programme for new joinees in salescreation of Job Score Cards Performance Management (Talent Review and ManagementConversations) etc.
In addition to further strengthening Senior Living our key thrust has been to build onthe Kid Centric Homes concept. Through our expertise in design and maintenance we areadding value by creating infrastructure along with a strong activity orientation which isamenable for overall development of the child. 3 of our projects are Kids Centric i.e.Ashiana Umang Jaipur Ashiana Town Bhiwadi and Ashiana Anmol Gurgaon.
We commenced deliveries in Ashiana Tarang (Phase-1) and Ashiana Surbhi (Phase-5) inBhiwadi Ashiana Dwarka (Phase-2) in Jodhpur Gulmohar Gardens (Phase-7) Vrinda Gardens(Phase- 3A) in Jaipur. We launched Umang Phase-4 Jaipur and Shubham Phase-3 Chennai. Ourfocus markets will be Jaipur Bhiwadi Pune Chennai and Gurgaon.
After a subdued year in terms of launches we have several new project launches in theforthcoming year in Jaipur Jamshedpur and Kolkata. Besides we also have launches of newphases of existing projects.
As you are aware our company and International Finance Corporation (IFC) a part ofWorld Bank Group have entered into an agreement to co-invest in upcoming affordable andmiddle income residential projects including senior living projects. The agreementenvisages a total investment of Rs.50 crores on a project to project basis by IFCrepresenting 40% of the capital required by a project. The remaining 60% of the capitalrequired i.e. INR 225 crores will be contributed by us. IFC will primarily invest innonconvertible debentures for identified projects with returns linked to the specificproject. The first tranche of funding i.e. Rs.8.74 Crs has already been received forAshiana Daksh a Comfort Homes project in Jaipur which will be launched in FY20.
An important area of motivation and pride for us is our focus on Corporate SocialResponsibility (CSR). We constituted the 'Ashiana Foundation' a trust to undertake allour CSR activities which include infrastructure upgradation of schools educationcomputer based learning skill development training and environmental sustainability. I ampleased to share that we have been honoured with "Bhamashah Award" by the Govt.of Rajasthan for the 6th consecutive year. The Govt. has also conferred the title"Shiksha Bhushan" for Ashiana's contribution to basic education in the State ofRajasthan.
I am deeply grateful to the team at Ashiana for their tremendous efforts and sharingthe vision of the organisation.
Along with my entire Leadership Team I would like to thank our Board Members valuedcustomers shareholders business associates suppliers and all other stakeholders for thetrust and confidence they have shown in us over the years. We continue to nurture theserelationships and collaborate to add value to business and society.
With the passage of one more year we continue to march ahead with same set of corevalues that have been our guiding force over past decades along with our continuous focuson execution ethics and long term vision of creating more and more happy families.
With best wishes