At the outset I would like to thank you all the stakeholders for the unflinchingsupport for the growth of the company during the financial year 2017-18 and Wonderfulcontributions from our employees dealers and all the stakeholders in our value chain. Ithank you all by the name of sincerity professionalism and patron-ship. This is anexceptional year of reckoning in the history of Company. This year has seen lots oftumultuous in Steel and Mining industry around the globe. Scan Steels Limited belongs todifferent league of steel making house and we are proud of our business Modus -Vivendi torun the show with financial leverage. We come over challenges with grit and elan. Ourorganizational capital in term of People other tangible and intangible assets hasbuttressed our growth. The aftermath affect of GST and demonetization has created tremoreverywhere and we particularly were under serious operational hammering which induces usto change our financial as well as operational model to sync with growth and compliances.
We do not have backward integration probably we never intended for looking into tothe complexities of Mining Rs. We Preferred to focus and ameliorate our core competence tomake its a sustainable business model. Over the year we have focused on strategicsourcing and make sure to have our raw materials security strong .The world and Indiatoday is now going thru the business order of M&A.
Since the recession in 2008 most of the big Steel makers of India are not able wake upfrom the financial doldrums. Steel Industries is now seeing inorganic growth thru stressedasset acquisition by big Players. Never applied financial gimmicks like CDR and SDR arebeing promulgated by banks. Big Steel companies are into ICU and some are in ventilatorswaiting haplessly for their self-demolition.
NCLAT monster has spread its tentacles to dissolute the stressed assets and giving waynew lease of life. India has seen worst banking embezzlement in the financial historywhich became the anathema of growth driver. The NPA become a talk in the street though thepercentage is less than the USA.
India is going thru Challenging fund situation as there are huge irregularities ofadvances. Banks are bleeding with denudation of assets and squeezed funding created astymie for industrial growth. It's becoming a Herculean task to get fund for business. RBIrecent PCA policy tightened the noose around bank operation as a result cost of fundinghas eroded. Tough time is ahead for all manufacturers. The ray of hope is CAGR of Steeldemand/production is around 10 Percentage. India is poised next to China by 2030 with avision of 300 Million ton production it will have 300 % jump in 12 years the scope forall small and medium scale production units will have enough scope to grab the share andgrow faster. The present consolidation of Steel industries thru acquisition will create abridge which will be a scope for us to grow Scan Steels Limited as a company will happy toannounce that we are the number one accepted TMT Producer as local company in Odisha. Webecome a house lore in all rural as well urban area. At last I thank our management teamwho have been with us since last 20 years and have their unstinted support with lots ofsacrifice. Let's have resolution together to make Scan Steels Limited as great company ofvalues & services. I request all of my employees to work with professional dispositionaligning the business strategy with tailor made approach to maintain our growthtrajectory.
I appreciate for the support and co-operation received from all ShareholdersRegulatory & Government Authorities Suppliers Customers and Bankers. The Company hasalways looked upon them as partners in its progress. It will be the Company's endeavor tobuild and nurture strong links with trade based on mutuality respect and co-operationwith each other. On behalf of the Company I wish all of the employees for their committedservices and responsibilities towards
|Place: Bhubaneswar ||With kind regards |
|Date: 30th May 2018 ||Rajesh Gadodia |
| ||Chairman |
| ||(DIN: 00574465) |