BSE:513401 | 58888:asispat | IND:Steel - Rolling | ISIN code:INE587D01012 | SECT:Metals - Ferrous
It is my pleasure to present the 21st Annual Report of the Company. We would like to share that the economic outlook for the world economies including India remained in grim in the last year. In such downtrend market we continue to be sanguine about emerging stronger from the situation like we have in the past and are confident of creating sustainable value for our shareholders in the coming year.
For more than twenty years of our presence in the iron and Steel industry we have fostered long term, deep- seated relationships based on trust, integrity, mutual respect and value creation for customers.
The macroeconomic and industrial scenario in the country during the year under review has been extremely challenging. Financial year 2012-13 was a year of great contrast and has been a challenging year with unprecedented uncertainty. The Indian Economy has moved a slower growth phase reflecting the impact of continued monetary tightening. The year has witnessed a rising inflation, depreciating currency, rising cost of inputs coupled with purchasers resistance to price increase that has impacted the company''s overall profitability margins. Company''s Performance
Performance of the year ended March, 2013 was adversely impacted due to higher cost of inputs like Ingots, Billets, coal and sponge iron. Ashiana has recorded gross revenue of Rs. 30194.51 Lacs. The profit after tax of the Company declined to Rs. 14.50 Lacs due to higher rates of Interest.
An environment of reducing GDP growth, high interest rates and persistent inflation has put considerable pressure on your Company''s performance with sales and profits not growing during this period.
It is a matter of satisfaction that your Company continues to grow its production volumes despite rising input costs, a validation of strong demand for its products.
Compared to the global average, per capita consumption of steel is around 150 Kgs, whereas in India per capita consumption of steel is merely at 39 Kgs. Even in comparison with the Asian Standard we have a long way to go in the consumption of steel.
The biggest opportunity before Indian Steel Sector is that there is an enormous scope for increasing consumption of steel in almost all sectors in India. We have rich mineral resources having abundance of iron ore, coal and many other raw materials required for iron and steel making. The Indian sector remains fairly unexposed. There is a need to take forceful steps to penetrate the rural remote area.
Your Company is very firm in deploying its investments in the areas where it has expertise. We are focused on moving up the value and growth curve by manufacturing value-goods and by building our product capabilities.
Your Company recognizes the fact that manpower is its biggest strength and their proper nurturing is necessary for the success of the organization. As the Company is growing, more and more emphasis is given to the recruitment process and your Company has been successful in attracting the best professional talent.
If the employee finds his work challenging, efforts worthwhile, and rewards commensurate, he is likely to give his best for mutual benefit and prosperity. Ashiana prides itself in having a tradition of cordial employee relations in co-ordination with industrial harmony. The set-up in Ashiana ensures a congenial environment built upon a strong foundation of motivation and mutual trust.
Before I conclude, I would like to express my sincere appreciation to our shareholders for the support and confidence reposed in us. We look forward for their continued association with the company. I assure that our co-operation will help us to scale new heights and eventually serving the society in a better way. I thank you all for giving us an opportunity to help Ashiana grow as a successful organization.
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