At the outset, I welcome you all to the 35th Annual General Meeting of the Company.
For Indian economy, recovery was interrupted this year due to intensification of debtcrises in Euro Zone, political turmoil in Middle East, North American economicinstabilities and rise in crude oil.
The economy is currently experiencing a slowdown in growth due to unstable Worldeconomy. India's GDP grew at 6.5% in the fiscal 2011-12 after growing at 8.4% in the year2010-11. The economy still continues to experience high inflation and interest ratescoupled with turbulence in financial and commodity markets.
Slowdown in comparison to preceding two years is primarily due to down fall inindustrial growth. Our Country, however, remains front runner in economic growth in anycrosscountry comparison. The service sector along with the agricultural sector, placedIndia in the top fastest growing economies of the world despite the aforementioned crises.
Notwithstanding the slowdown in economy, your Company continues to maintain its growthmomentum. Company's performance during the year 2011-12, in terms of operational andfinancial parameters has shown a marked improvement over the previous year. Company'sGross turnover has grown by 8% to Rs. 12,290.27 Lacs and Net profit by 41% to Rs. 345.74Lacs.
It gives me immense pleasure to share with you that the Company's name has appeared intop 10 India's fastest growing mid-sized companies in Inc. India 5002011, in spite of afierce competition in the segments in which your Company is engaged, during the FinancialYear 2011-12.
I would like to inform you that the Company has successfully completed some of itsprojects including premium quality residential flats and a Hotel at Dwarka, New Delhi,which has commenced its operation recently. Besides this the Company has in hand someinfrastructure projects including laying of concrete roads in Faridabad (Haryana). TheCompany is focusing on opportunities in Delhi and NCR and hill stations especially inDehradun and Mussoorie where the Company is having its own land.
Looking ahead to 2012-13, global macro-economic challenges persist. The world iswitnessing slower GDP growth. Rating agency CRISIL slashed India's growth forecast to 5.5percent for the fiscal year ending March, 2013 one of the lowest estimates on the street,just two months after pruning its projection to 6.5 per cent from 7 per cent. Poor monsoonrainfall in India alongside a weakening euro zone outlook contributed to the latest cut inthe growth projection. The revised growth forecast assumes that the stretched fiscalsituation will limit the ability of the government to give a generous stimulus to theeconomy. However, the long term fundamentals of the Indian economy remain strong and weare optimistic that the sectors in which your Company is engaged namely - infrastructure,hospitality, construction and real estate will have reasonable growth.
As you are aware that the Shares of the Company are at present listed on Delhi StockExchange Limited which is not in operation since long. To protect the interests of theShareholders of the Company and to provide liquidity to the investment made in theCompany's share, an application has been made under 'Direct Listing Norms' of Bombay StockExchange, which is under consideration and we expect the outcome in the near future.
The mission of the Company is to be rated as one of the best managed company in thefield of Infrastructure, Hospitality, Real Estate and Construction to be achieved throughvision, innovation, dedicated efforts, efficiency, quality and timely execution.
In all its actions, our Company is committed to Corporate and Social Responsibility. Westrive to ensure that all economic, environmental and social factors are given dueattention and importance. This approach, driven by our core values - caring for people,commitment to excellence and business integrity & transparency has enabled us to bemore responsible to serve the Nation and the Society.
I express my sincere thanks to all the stakeholders of the Company for their continualfaith and trust in the Company. I greatly appreciate the Company's Management team whoseunabated dedication and contribution has been invaluable to the Company. I also thank theemployees of the Company, customers, banks, business associates, the Government and otherauthorities for their continued cooperation and valuable support from time to time.
With best wishes,
Chairman & Managing Director