In a challenging global business environment and in a difficult year
for the Indian real sector, predictability is passes. As a result,
businesses are finding it increasing difficult to assess and mitigate
risks, realize their true potential and create value for stakeholders.
The year has been a challenging one for the Indian economy. High
inflation, elevated interest rates and a lack of economic reform have
led to weak economic sentiment and the lowest GDP growth in last nine
years. The real estate sector has been especially impacted by these
The prevailing macro-economic scenario looks grim. China and fellow
Asian emerging economics face slower economic growth in FY 2012-13 on
weak external demand. According to IMF India is forecasted to expand
6.9% in 2012 and 7.3% in 2013, growing slighting below the revised
forecasts of January as result of weak demand and higher interest
rates. The primary reasons for the economic slowdown including rising
inflation, coupled with banks getting stricter on housing loans and
high interest rates.
Against the backdrop of such a volatile environment. Your Company
naturally had its own set of challenges. The double whammy of plunging
sales and rising costs took their toll on the profitability of real
estate majors. Also, banks turned cautious towards rescheduling debt or
issuing fresh loans to real estate companies. Upward spiraling cost of
construction materials has put great pressure on project execution, in
turn leading to project delays. This year truly tested our stability
and agility. Prices of steel, cement and labour have risen
substantially since 2009.
Over the coming year, we intend to launch new projects as and when we
perceive a latent demand. Anand Group also keeps raising the bar of
corporate governance and the Company''s keen desire to embrace these
norms in addition to the local norms shows its commitment to good
practices with a view to create and sustain stakeholder confidence.
I would like to thank you the Board of Directors, Bankers, Employees
and Shareholders for their unstinted support, reposing their confidence
in the Company and the confidence reposed on us.
Ramesh L. Shah