It gives me an immense pleasure to share with you the Annual Report of your Company forthe Financial Year 201617. Although the global outlook appears to pick up slowly thedomestic economic indicators are distinctly positive. With many structural reformsunderway the economy is likely to make steady recovery. The slated investment ininfrastructure agriculture and rural hinterland will drive consumption and investmentdemand. The Indian economy is at a transformative stage and growth momentum on most countsis expected to accelerate. On the domestic front the progress on key structural reformsincluding the Insolvency and Bankruptcy Code Goods and Services Tax (GST) Policy clarityin key infrastructure sectors higher public investments amongst other initiatives willprovide further economic stability and growth impetus.
About Your Company's Position
This has been an exciting year for Gallantt Ispat and we have delivered a goodoperational and strong financial performance. We continued to focus on cost optimisationand productivity enhancement. We at Gallantt Ispat spent considerable time expanding theplant capacity of various units. Expansion programme is in its full swing and it isexpected that expansion will be complete within the scheduled time. I am pleased to informyou that after completion of expansion the production capacities of the
Company would be more than double the present capacity. We have completed a significantportion of its capital expenditure on expansion programme that has equipped us to ramp upproduction and reap benefits of the capex spent. Increasing our existing capacities willboost our cash flows in the years to come. Our primary focus is on delivering value of thehighest standard to our stakeholders. We are constantly motivated on improving our qualityof production in each of our business through a culture of best practice benchmarking. Wehave established market place in the state of U.P. Bihar Delhi and Jharkhand andproducts of the Company are widely acknowledged in the market. Being a customer-centricorganization we are involved in providing utmost quality products to customers thatsatisfy their entire requirements. Further Steel demand outlook is also improving withthe Government's affordable housing program and likely start of an investment cycle byFY19.
Our Strong Balance Sheet
Our operations are fundamentally strong and generate superior profit margin. Ourconsistent focus on deleveraging the balance sheet is visible in the reduction of grossdebt.
Our motto and our strength
Our ultimate goal is to create value for our stakeholders in order to deliversustainable profitable growth and provide our shareholders with a superior return ontheir investment whilst providing each of our employees with a safe workplace where he orshe is recognised developed and properly rewarded.
Our team is the backbone of our organization without their experience expertise andcommitment we would not have scaled this height that we have in such a short span. Withoutdoubt our people play a key role in Gallantt's march towards continued excellence.
C. P. AGRAWAL