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Ashiana Ispat Ltd.

BSE: 513401 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE587D01012
BSE 00:00 | 21 Jan 25.15 -0.50
(-1.95%)
OPEN

24.90

HIGH

26.65

LOW

24.40

NSE 05:30 | 01 Jan Ashiana Ispat Ltd
OPEN 24.90
PREVIOUS CLOSE 25.65
VOLUME 9458
52-Week high 27.80
52-Week low 9.75
P/E 14.13
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 24.90
CLOSE 25.65
VOLUME 9458
52-Week high 27.80
52-Week low 9.75
P/E 14.13
Mkt Cap.(Rs cr) 20
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashiana Ispat Ltd. (ASHIANAISPAT) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me a great pleasure to welcome you all to the 28th AnnualGeneral Meeting of your Company. Our vision is based on hard work open communication astrong emphasis on team work and a high level of responsibility. We believe in thecreation of long-term value for both society and stakeholders that makes it unique.

However we have been facing difficult operating environment due toenvironmental issue raised in the third and fourth quarter of the financial year causingfrequent interruption in production. The situation goes worst when construction activityin the entire NCR region is banned during this period. Your company has decided to use PNGin substitute of coal fuel. PNG (Piped Natural Gas) is used as alternate fuelwhich is considered as environmentally friendly fuel. This will reduce the chances ofclosure of plant during the peak pollution season. But ban in the construction activitiesin the entire NCR belt during this period is the major challenge before the Iron and Steelindustries operating in the NCR. As we all are aware that population of 1.3 billion staysindoors to fight the Covid-19 virus India is facing very difficult situation and worryabout the economy as the entire industrial activity has been jeopardized. The lockdown hasbrought the entire domestic manufacturing supply chain to a grinding halt."Ramifications of a massive lockdown are manifold. It is assumed that steel demand inIndia would contract 14-17% this fiscal. Extended vulnerability on the other hand willincrease the demand contraction to 22-25%. On a quarterly basis steel demand would be awashout in the first quarter of this fiscal given the pan-India lockdown that would hurtconstruction. Since this situation is exceptional and changing dynamically the Company isnot able to gauge with certainty the future impact on its operations. However theCompany is confident about adapting to the changing business environment and respondsuitably to fulfil the needs of its customers. All this has led to adverse financialperformance of the Company. It is expected that the concerned Government agencies willfind the necessary suitable measures to restrict the pollution within prescribed limitwithout imposing ban on construction activities. Let me confess that the year under reviewhas been little bit difficult one for the company. During the year under review theCompany has made net loss of Rs.11.72 Cr./- (Previous Year's Net Profit of Rs. 4.27Crores ) from business. The Company has earned total income Rs 309.80 Crores (Previousyear's income was 441.13 Crores) and the Total expense is Rs. 321.59 Crores (Previousyear's expense is Rs. 435.36 Crores).

Keeping in view of the bright future prospect of the trade as declaredby the Government of India in their National Steel Policy (NSP) 2017 production capacityof our plant has been increased substantially by incurring capital expenditure of Rs.20.00Crores (approx.). We are fully equipped with latest technology and enhanced productioncapacity. Once the market sentiment get better demand of the steel will increasedsubstantially and our financial performance will be improved accordingly.

We strongly believe in Jainism which teaches for hard workself-discipline patience education and intelligence honesty integrity and also a senseof community loyalty. These inherent quality of Jainism principle of living helps inrecovering from any disastrous. Upgraded plant with latest technology puts us in a strongposition in the coming years among potential players with greater confidence ingenerating a financial return.

In this ongoing journey I want to thank my fellow Board members fortheir unconditional support. I would also like to thank our employees our biggeststrength who continue to be part of this journey with great vigour and dedication. At theend I want to extend my gratitude to our customers financial institutions and allstakeholders for their continued support and trust placed in us.

Thank you
Naresh Chand
Chairman
DIN-00004500

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