When I sit down to write this letter I reflect on the year that's passed and it oftenfeels like a distant memory. By nature I focus on what lies ahead. But right now it'snot so easy to draw that distinction between years. More than 15 months after COVID-19became a global health crisis we are still confronting its impacts daily and have yet toreturn to normalcy. For billions of people around the world the pandemic has brought onhardships physically emotionally mentally and financially. I truly believe we will comeout of this situation till then I request you all to be very cautious and take care ofyour health and strictly follow the guidelines issued by State and Central Governments forCovid and get vaccinated.
Tough economic times and tougher resolve
FY 2020-21 has not been less challenging and disrupting and rather it was a mirror ofthe FY 2019-20 particularly for the financial sector. Liquidity crunch volatile consumersentiment uncertain times and slow economic take-off created headwinds. India'snon-banking financial companies grew at a slower pace in second and third quarters offinancial year 2020-21 on an annualised basis due to COVID-19-led disruptions as well asmuted demand but continued to disburse credit.
During these tough times we kept our way forward with a clear vision and resolve: "ToughTimes don't last but Tough People do" and we should continue to strengthen ourcore encourage innovation invest in our people and identify potential growth avenues.These significant steps will help drive sustainable growth. The financial servicesindustry has a lot of potential in India and our Company is well poised to exploit thispotential.
Demand contraction and liquidity squeeze affected the industry during the early part ofthe pandemic especially between April-June 2020. India had one of the longest lockdownsthan anywhere else in the world. But the regulators intervened at the right time withmeasures to support the industry to tackle the pandemic. The LTRO moratorium NPAforbearance and timely intervention from RBI with multiple tranches of liquidity; alongwith a pent-up demand led to a V-shaped recovery for the domestic economy and these allhelped the industry to get over the liquidity squeeze.
Despite the prevailing challenges we have displayed commendable tenacity in the faceof adversity. For the year FY 2020-21 our disbursement stood at ` 4893.28 Lacs which wasalmost flat in comparison to the previous year. The total income stood at ` 684.01 Lacsand profit for the year stood at ` 163.49 Lacs as compared to Loss in previous year.During the current financial year ` 570.05 Lacs was written-off whose provisions were madeduring the previous financial year. At Ashika we are overcoming expected and unexpectedchallenges by implementing stable strategies and embracing agility and hope to rewardshareholders in the coming years.
Sound Corporate Governance
For Ashika good governance has always been the hallmark of the traits that ourmanagement possess. The Compliance and Legal team continues their good work ensuring thecompany's adherence to best-in-class regulatory framework and strict corporate governancepractices. The Risk Management team always focuses on a comprehensive and integrated riskmanagement framework that includes risk-based pricing structured reporting and controlmeasures.
India has always believed in"Vasudhaiva Kutumbakam" (the world is one bigfamily). Central Govt. of India has envisaged a vision of "Shared Future in aFractured World" and have initiated a slew of economic and social measures that wouldmake India the world's third-largest a five trillion economy by 2024-25 and a ten trilliondollar economy by 2034. Although Covid-19 pandemic has caused a temporary de-growth.However in the long term the growth story is intact and very robust. India's economicgrowth story is well supported by the three pillars First - an active and robust debtmarket ecosystem; Second - a healthy capital market system enabled by high savings toGDP%; Third - a steady vaccination drive conducted by various state governments across thelength and breadth of the country. Around 132 million people - mostly from the vulnerablesegment of the population - have been inoculated in a span of three months which wouldresult in economy getting back to the pre-covid levels as soon as the businesses rebounds.
Looking ahead the NBFC industry will see definite stress in the short term. Howeverwe remain confident of the return to normalcy in disbursement growth and gradual reductionof stress on the assets by the second half of the FY 2021-22. As a financial engine thatservices the liquidity requirements of SMEs the economic recovery requires the NBFCindustry to stay healthy. We continue to be prudent and ensure that we are adequatelyprepared to ride the wave when the economic activities return to normalcy. Looking aheadin long run your Company sees enormous opportunities for growth.
With immense proud I express my sincere thanks to my team members who during this toughtime had met their commitment and dedication and worked diligently to serve our esteemedcustomers and other stakeholders. We got massive support from all our well-wishers Boardmembers and clients who had bestowed their trust on us and are looking forward for everybodies continued support in this Journey.
With warm regards