The year 2017-18 showed an economy recover after several years for companies engaged inIron & Steel manufacturing. The Indian economy came out from bad times. The governmentis increasing penalties and amending the law at a very fast speed. The results of currentyear are quite encouraging.
As I said last year I repeat it as that there is no significant change. A lot of hopewas pinned on the new Government at the Centre to bring about much needed policyinitiatives and systemic changes which alone would have brought the required equilibriumfollowed by growth trajectory. Regrettably these have not so far been eased out with therequired speed and the problems continue festering.
One good step the government has taken is the introduction of Goods & Service Taxin place of multiple taxes and the abolition of Vat barriers which will give speed tomovement of goods and result in lower transport cost. Our domestic costs are higher ascompared to foreign countries like China. One hopes many of the teething problems onimplementation of GST will be resolved by the government soon.
During the year under review some of the operational achievements. Sales turnover atRs. 237.32cr is lower by 7.11% as compared to Rs. 255.51cr in the previous year.
The material cost during the current year is Rs.152.85cr is lower by 5.00% as comparedto Rs.160.90cr of previous year.
Manufacturing expenses during the current year is Rs.35.85cr and is higher by 6.76% ascompared to Rs.33.58cr of previous year.
Employees Remuneration & benefits during the current year is Rs.3.60cr as comparedto Rs.3.37cr of previous year and there is increase of 6.93%.
Administrative & Other Expenses during the current year are at Rs.3.83cr and arehigher by 18.95% as compared to Rs.3.23cr in the previous year.
Depreciation during the current year was Rs.5.39cr and is lower by 6.09% as compared toRs.5.74cr of previous year.
Coming to the profit for the current year the members will be pleased that the companyhas earned after tax at Rs.4.50cr as compared to Rs.1.77cr of previous year and is higherat 154.23% an all time record.
I sincerely place on record my thanks to our strategic employees bankers and allstakeholders for their support and the faith reposed in us during these tough times and weassure all that we will work towards our goal with renewed and dedicated commitment.
RAVI VASWANI CHAIRMAN
OUR COMPETITIVE STRENGTHS
|Management Expertise |
Promoters are in trading & steel manufacturing business for last more than two decades. They have track records of profits. They have over the years gained experience in setting up and operating integrated steel plants. The promoters established competitive position of the Company in the local markets. The Company enjoys an established customer base and a supplier network in Uttaranchal Chhattisgarh Maharashtra and Madhya Pradesh. In addition to our Promoters Company has a professionally managed team with technical experts in their respective fields.
|Business Strategy |
The key components of our strategy to drive profitable growth and to maximize value are to continuously enhance customer satisfaction attract & retain qualified employees maintain stringent standards of environmental safety and corporate responsibility.
Keeping in view the above your Company continues to follow certain proved strategies to take its market share and keep improving .below:
Sales and Marketing
We constantly keep reviewing our position and make all efforts to consolidate our position in
|Mr. Ravi is the Managing Director of our Vaswani company. He is a Commerce Graduate by qualification and is a founder of Vaswani Group. He has an experience of steel business for more than 3 decades. As he entered the industry at an early age he got a good grass root experience. He has achieved extensive knowledge in trading and marketing of sponge iron steel billets/ingots and responsible for the day to day operations of our company |
Mr. is the Whole Time Director of Yashwant our company. He is an under Vaswani graduate (Commerce) by qualification. He entered the family business with his father Mr. Ravi Vaswani in his proprietorship firm named M/s Kwality Foundry Industries. Further being involved with the Sponge Iron plant from the conception stage and onwards he has gained hands-on experience in the day-to-day operation of the same.
|Chhattisgarh and penetrate in Northern Western and Eastern parts of the country. In parallel we also strive to build credible long term relations full of mutual understanding. |
Continued focus on consistently meeting quality standards
Zero error is our motto. This has resulted in creating a reputation with our suppliers. We follow this policy consistently and supply quantity without compromising on the quality and delivery schedules.
Mix of Organic and Inorganic Models of Growth Over the past few years we are following a combination of organic and inorganic models to help us grow. We may go for strategic acquisitions in leveraging complementary skills to capture market opportunities as well to accelerate growth.
Training and Motivating Our Work Force Your Company will continue the policy of training of the work force with adequate product knowledge market knowledge and above all the application of knowledge. We shall always focus on narrowing the hierarchy for free and transparent two-way communication between management and employees for better exchange of ideas views and opinions for maintaining good competitive work atmosphere at all levels.
|Cordial Relationship between management and labour |
Your Company continues to enjoy cordial relations with our employees and there has been no union of employees. Further there have been no strikes lock-out or any labour protest in our Company since its incorporation.
|Our Vision |
Our vision is to make VIL a trusted brand name by creating a distinct status for ourselves in the Integrated Steel business driving growth through both organic & inorganic initiatives. We believe in meeting expectations of all stake holders members; employees; suppliers; customers and others associated with us.
|Expected High Operating Efficiency The Company's steel plant is fully integrated. The sponge iron manufactured by us is used as raw material to manufacture Mild Steel Billets/Ingots. ||Business Model |
Key Activities: Mild Steel Billets/ Ingots manufacturer
Thus the finished product of one unit acts as a
Key Resources: Sponge Iron Captive raw material for the other unit. The currentpower Power Plant capacity is meeting the power requirements and
as well as the surplus is being sold to the private
Customers Relationship: Product power companies as well as State Electricityexcellence on time delivery and customer Board. Due to integration our company as aservices whole has been able to reduce its cost of production. Your company cansustain/absorb
Channels: Government authorities Semiadverse market situation during cyclicalgovernment authorities recession. The steel industry is highly powerintensive and captivepower generation plant
Cost structure: Based on Government which has low cost per unit is leading toRules and Regulations significant cost saving and adding to profitability.
Captive Power Plant
Steel industry is power intensive industry. Power plays an important factor.Considering the power requirements of our existing manufacturing facilities your Companyhas increased the generation capacity from 7.5 MW to 12 MW from Waste Heat Recovery Boilerto meet the present requirement of power as well as to sell off the surplus throughprivate power companies and State Electricity Board. Captive power plant gives us thestable and uninterrupted power supply which is very crucial in manufacturing of ourproducts. Uninterrupted power supply helps to avoid any delays in manufacturing processthereby ensuring complete utilization of our capacities.