It is with great pleasure to inform you that our Company Salem Erode InvestmentsLimited which was acquired by M/s ICL Fincorp Limited (Holding Company) on 17thof February 2020 is catching up with the wind slowly and gradually. We as a team havedecided to put all our efforts for the bringing up of Company. We are happy that we got anopportunity to be part of the growth of Company that has seen generations of business andis a seasoned vintage Company in itself. The Company was incorporated in the year 1931 andit's been a long running 90 years of business till date. In such auspicious occasion wepromise our esteemed customers that this is just the beginning and the future is brighterthan ever. Our Company has slowly and steadily started setting base. Currently it is fourbranches in South India but gradually there will be more and more branches set across thewhole of India.
Our company also aims to explore various areas of business and not be restrained tojust one segment. It is true that day to day affairs of the business of the Company werehugely affected due to ongoing Covid-19 crisis. But still we assure you that we willstrive for the best and nothing can stop us from achieving our goal towards the growth ofthe Company.
The main object of our Company is to serve people who are in need of funds and helpthem with an effortless and easy transaction. We are at the happiest stage when we becomepart of realizing your big dreams. Our Company aspires to become a market leader in thebusiness of gold loan debentures insurance etc. in a very affordable and accessiblemanner to the masses at large.
The Company along with its Holding Company i.e. M/s ICL Fincorp Limited have set atarget to touch 1000 branches across the rural part of India and we aim to do the same inthe immediate future.
Very soon the Company will set up its branches in the state of Odisha and slowly andgradually will concentrate on the economically profitable and viable states like NewDelhi Maharashtra Madhya Pradesh Gujarat West Bengal Puducherry and Goa.
As I say about exploring new growth opportunities I will have to mention the mostchallenging phase of each and every person's life across the globe. We are reeling fromthe damage of massive second wave of Covid-19 with the infection rates that was never seenor heard before. This second wave has impacted the current year as well. And there is nocertainty that it will meet its end any time sooner. Countries are struggling to save itscitizens from this massive hit and the economies are struggling to keep its pace. Indianeconomy is no exception to it. Even before the outbreak of Covid-19 Indian economy wasstruggling in the financial and real estate business. With each day passing the newforecasts are showing a gloomier picture than the previous one.
India's medium-term GDP growth outlook may be negatively affected by renewedasset-quality challenges in banks and liquidity issues in NBFCs. The financial sector wasalready facing weak business and consumer confidence for some years before the crisis andthis was aggravated by certain high-profile defaults in the NBFC sector arising fromlapses in governance. The Company witnessed a steady progress during the FY 2020-21 withcontinued execution of its strategic objectives of sustainable growth and improvingefficiencies. Even though the external environment turned increasingly volatile weremained resilient on the back of strong fundamentals and steadfast leadership. The Indianeconomy continued to face headwinds in the first half of the year due to subdued privateconsumption and liquidity crisis which got severe in the second half and the unprecedentedCovid-2019 outbreak. This resulted in complete halt to the economic activities withsignificant impact on the incomes and livelihood of people.
However during such difficult times also I must say that our team worked withcomplete dedication and unbeatable commitment which led to an uninterrupted customerservice. Against this backdrop your Company exhibited a steady performance by deliveringfinancial services to its masses which thereby led to a profit post tax of Rs.13719450/- (Rupees One Crore Thirty Seven Lakhs Nineteen Thousand Four Hundred andFifty Rupees only) in SEIL. Our employees had clear direction to show compassion andflexibility to the customers. Our Government and Reserve Bank of India (RBI) also played amajor role in initiating a set of measures and supplyside reforms to lend flexibilityresilience and stimulate the economy. The Union Budget provided a significant increase inthe outlay for capital expenditure infrastructure and healthcare making the targeted11% GDP growth in FY22 quite achievable.
The decisive Budget reforms are expected to provide the economy with imperative growthmomentum. The unexpected but incredibly rapid and ruinous second wave of COVID-19 hasagain posed challenges for the economic growth this year. Time and again Indian peoplepolicy makers and economy have showed resilience and tremendous ability to bounce back.
The management was actively involved in the CSR activities during COVID-19 times likedistributing ambulances to municipality hospitals etc. We strongly believe in creating asustainable future. Our efforts are consciously directed towards this goal through ourEnvironmental Social and Governance (ESG) initiatives. We will continue to focus more onsustainable growth for the Company. Even though the external environment turnedincreasingly volatile we remained resilient on the back of strong fundamentals andsteadfast leadership.
The Company was acquired at a time when the whole world faced this major crisis ofCOVID- 19. It was very difficult for us in the beginning because all the documents were inKolkata and there was a difficulty in the communication of day to day transactions but astime passes and as it becomes routine we have bounced back and are in the position toplan the future growth of the company.
I would like to thank each and everyone who remained part of our business for theireffortless support without which we would not have met the light of this day. I also wantto thank our esteemed shareholders for their magnanimous support. I assure to be committedtowards creating value for all our stakeholders and adhering to the highest standards ofcorporate governance.
I request everyone to stay safe vaccinate yourself and everyone else in your familywear mask maintain social distance avoid going in crowds and attending socialgatherings. I can assure you that this phase of life will also pass and will be a historybut a little patience is all that you need to have in this current scenario.
I end up my letter by summing up:
"There will always be rocks in the road ahead of us. They will be stumbling blocksor stepping stones; it all depends on how you use them."