The year 2017-18 showed an economy recover after several years for companies engaged in
Iron & Steel manufacturing. The Indian economy came out from bad times. The government
is increasing penalties and amending the law at a very fast speed. The results of current
year are quite encouraging.
As I said last year, I repeat it as that there is no significant change. A lot of hope
was pinned on the new Government at the Centre to bring about much needed policy
initiatives and systemic changes which alone would have brought the required equilibrium
followed by growth trajectory. Regrettably, these have not so far been eased out with the
required speed and the problems continue festering.
One good step the government has taken is the introduction of Goods & Service Tax
in place of multiple taxes and the abolition of Vat barriers which will give speed to
movement of goods and result in lower transport cost. Our domestic costs are higher as
compared to foreign countries like China. One hopes many of the teething problems on
implementation of GST will be resolved by the government soon.
During the year under review some of the operational achievements. Sales turnover at
Rs. 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 compared
to Rs.160.90cr of previous year.
Manufacturing expenses during the current year is Rs.35.85cr and is higher by 6.76% as
compared to Rs.33.58cr of previous year.
Employees Remuneration & benefits during the current year is Rs.3.60cr as compared
to 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 are
higher 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 to
Rs.5.74cr of previous year.
Coming to the profit for the current year, the members will be pleased that the company
has earned after tax at Rs.4.50cr as compared to Rs.1.77cr of previous year and is higher
at 154.23%, an all time record.
I sincerely place on record my thanks to our strategic employees, bankers and all
stakeholders for their support and the faith reposed in us during these tough times and we
assure 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 current
power 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 Electricity
excellence, on time delivery and customer Board. Due to integration, our company as a
services whole has been able to reduce its cost of production. Your company can
sustain/absorb
• Channels: Government authorities, Semiadverse market situation during cyclical
government authorities recession. The steel industry is highly powerintensive and captive
power generation plant,
• Cost structure: Based on Government which has low cost per unit, is leading to
Rules 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 Company
has increased the generation capacity from 7.5 MW to 12 MW from Waste Heat Recovery Boiler
to meet the present requirement of power as well as to sell off the surplus through
private power companies and State Electricity Board. Captive power plant gives us the
stable and uninterrupted power supply which is very crucial in manufacturing of our
products. Uninterrupted power supply helps to avoid any delays in manufacturing process
thereby ensuring complete utilization of our capacities.