You are here » Home » Companies » Company Overview » Ashika Credit Capital Ltd

Ashika Credit Capital Ltd.

BSE: 590122 Sector: Financials
NSE: N.A. ISIN Code: INE094B01013
BSE 00:00 | 22 Sep 21.00 -2.00
(-8.70%)
OPEN

22.85

HIGH

22.90

LOW

19.15

NSE 05:30 | 01 Jan Ashika Credit Capital Ltd
OPEN 22.85
PREVIOUS CLOSE 23.00
VOLUME 13603
52-Week high 45.05
52-Week low 13.85
P/E
Mkt Cap.(Rs cr) 25
Buy Price 19.60
Buy Qty 99.00
Sell Price 21.80
Sell Qty 770.00
OPEN 22.85
CLOSE 23.00
VOLUME 13603
52-Week high 45.05
52-Week low 13.85
P/E
Mkt Cap.(Rs cr) 25
Buy Price 19.60
Buy Qty 99.00
Sell Price 21.80
Sell Qty 770.00

Ashika Credit Capital Ltd. (ASHIKACREDIT) - Chairman Speech

Company chairman speech

At Ashika we took immediate measures to ensure safety and well-being of our employeesand implemented the 'work from home' policy.

The first nine months of FY 2019-20 saw a volatile uncertain ambiguous and complexbusiness environment. There was a slowdown in investments consumption pattern as well asglobal trade. The Government periodically announced measures to combat the slowdown andencourage consumption. NBFC segment had its own set of challenges with respect toliquidity and funding. Just when things started normalising COVID-19 put a complete haltto the economic activities across India. Government announced a series of lockdowns tocontain the spread. The economy was impacted by this pandemic with a complete slowdownacross the industrial and services sectors. The NBFC segment was not spared either. Withregular business activities coming to a halt it became difficult for the borrowers tomeet their EMI commitments. As a relief measure RBI granted moratorium for three monthson payments of all EMIs falling due between March 1 2020 and May 31 2020. It was furtherextended by three months as the situation in May 2020 did not show encouraging signs ofimprovement.

At Ashika we took immediate measures to ensure safety and well-being of our employeesand implemented the 'work from home' policy. They were provided with adequateinfrastructure and requirements to ensure minimalistic disruption to the otherwise smoothoperating business.

On an operational front I am happy to state that we did not face any liquiditychallenges owing to our prudent and resilient business model. Our strategies were alignedto the market situations and we continued to focus on building a good quality lendingportfolio with an equal attention to recoveries and lower NPAs. The pandemic however didhave an impact on our performance as we had to record higher provisioning of NPAs as apart of conservative approach and to comply by regular RBI directives. We also had tooblige to the moratorium requests of our clients. As a result the Company reported a lossof Rs 253.93 lacs for the FY 2019-20. Our loan book size also reduced during the yearleading to lower interest income of Rs 691.16 lacs. On a positive side we became a zerodebt company as we paid off all our outstanding loans thus bringing down our financecost to Rs 46.20 lacs in 2019-20 as against Rs 743.01 lacs in 2018-19.

Some of the numbers reflect external forces beyond our control. We are completelyuncertain about the future of this pandemic and we strongly hope for quicker developmentof vaccine to combat this. We will however always run Ashika with the notion that we mustbe prepared to be resilient and durable through any and every kind of environment we face.These challenges have pushed us to set new benchmarks and standards not only forourselves but also for the industry. Through all these efforts we are committed toprepare your company for the future and deliver sustainable value for our variousstakeholders including yourselves.

People are the Company's key assets and the focus in FY 2019- 20 continued to bedevelopment enhancing capabilities and employee engagement aimed towards drivingperformance excellence in changing and challenging times. The Company's people agendafocuses on building distinctive capabilities which allows it to deliver in the short termand develop new capabilities for the future.

While the past two years have been quite difficult for the economy and the NBFC segmentin particular the long term future looks bright. I am optimistic that once the COVID-19crisis dies down we will be in a position to capitalise on all the opportunities that wehave worked on over the past year. Given the underlying potential of the NBFC segment andits ability to reach out to the underserved sections of the society we are hopeful ofcontinuing our good work in the long term. We believe that once this pandemic storm easesIndia could actually lead the global recovery as it is likely to be less impacted andalso benefit from business shifts from other countries. The Government's focus on makingour nation 'self-dependent' and the related measures undertaken under the 'AatmanirbharBharat Abhiyan' package augurs very well for the long-term prospects of our country.

Your Company will continue to work towards creating enduring value for its stakeholdersand customers by converting challenges into opportunities. We continue to rely on yourwhole-hearted support as we pledge to drive your company to a bigger tomorrow ofperformance and success.

Pawan Jain
Chairman

.