I am pleased to share with you the performance of your Company and present the AnnualReport for the financial year 2016-2017. It was yet a difficult year for the globaleconomy as it was characterized by low growth and geographical uncertainties. However theIndian Market showed signs of recovery in the later half of the year but faced a temporaryslowdown due to demonetization. Under the leadership of our finance Minister Mr. ArunJaitley and our Prime Minister Mr. Narendra Modi Indias Economy is growing at arapid rate due to the persistent efforts from our leaders. Concepts like Ease of Doingbusiness and One Nation One Tax i.e Goods and Service Tax and laws like the new bankruptcylaw have put the icing on the cake in building the image of our country. India hasstrengthened its position in regard to Foreign Direct Investments including the startupswhich are very much prevalent and common nowadays in our country thus building a hugedemand for credit and credit expansion. There has been a significant opportunity forcredit expansion to micro small and medium enterprises (MSME) which has been a core areaof business for our company. As per the records and data available the NBFC creditadvancement have grown upto 16 percent in the year 2016-2017 and is expected to grow over20 percent in the future years to come as compared to growth rate of 8 percent in case oftraditional banking credit.
NBFC sector has gained a lot of importance in the last years as they have become thebiggest receivers of the funds in our financial system. The growth in NBFC is not only dueto strong financial performance reported by the market players but also the due to rise innumber of such players over the years. In the year 2016-2017 NBFC Loans have expanded 16to 17 percent as compared to 8 percent through normal banking channels. In addition tothis a growth rate of 0.2 percent was also recorded in the aggregate balance sheet of theNBFC sector in spite of the Demonetization effect which hampered the growth of our economyto an extent. Moreover NBFCs have been included in the SARFAESI Act which will helpthem in speedy recovery of Loans.
As we move into the future We will broaden our product offerings geographically byextending our areas of operations. Our primary focus will be on growth and expansion. Westill have to find different ways for expansion in order to cope-up with the industrystandards. However we are adamant to improve our performance in the years to come byimproving our leverage. Lastly I am very thankful to my effective and knowledgeable fortheir constant suggestions and positive criticism which has enabled us to work harder andturn up to the expectations of our stakeholders including the community in which weoperate including the society at large. I would like to thank our shareholders for theirimmense support as we drive towards making your Company in to a leading financialorganization in India. As India continues to take its place as perhaps the most fastestgrowing economy in the world we are also determined to grow in tandem with the countryfor the benefit of all the stakeholders of Neil Industries Limited.
With warm regards Yours sincerely
(Arvind Kumar Mittal)