The legendary Winston Churchill had once commented, ''To improve is to
change; To be perfect is to change often.'' The world needs people who
have the ability to change. In the context of organizations too, the
prudent blend of knowledge and transformative success is the key for
any business to grow in a sustainable way. In FY2015, ARIHANT will
enter its 22nd year of operations. From a business perspective, we have
learnt to focus on creating more sustainable business strategies with
the inherent experience of dealing with crests and troughs of economic
The year 2014 was another year that our business had to face different
problems and obstacles from economic, social, and political
During the Financial Year 2014, the Indian economy grew by a paltry
4.9%. In fact, for the last 8 quarters beginning with Q1, FY2013, India
has now grown by less than 5%. Naturally, this has affected real
estate businesses. However, Your Company was able to achieve 10% growth
in revenue over this period.
During the year, Your Company has entered into a one time settlement
scheme with the HUDCO and made a full and final settlement for the long
pending claim filed against the Company by HUDCO before the Debt
Recovery Tribunal (DRT). Your Company has successfully settled a claim
pending against it since 2004. However, this has significantly brought
down the profits of the Company for the year under review.
During the year under review, your Company has completed and handed
over our projects ARIHANT PANACHE comprising of 1,14,000 sq.ft.
situated at Arumbakkam, Chennai, Arihant Jashn comprising of 36,381
sq.ft. situated at Egmore, Chennai and VILLA VIVIANA - Phase 1
comprising of 3,05,382 sq.ft. situated at GST Road, Chennai during the
year. A major highlight among these was the Company''s project ARIHANT
PANACHE, which stands as a landmark of Arumbakkam and gained strong
acceptance in the city of Chennai among the customers.
During the year our associate Company M/s. Escapade Real Estate Private
Limited has entered into a Development Agreement, on revenue sharing
basis with M/s. Ashiana Housing Limited, a Delhi based Real Estate
Company for development of ''Senior Living Project'' as well as ''Regular
Group Housing Project'', on 20 acres (approx.) of land with saleable
area of 9.70 Lakhs sq.ft. at Sengundaram Village, Maraimalai Nagar, Off
GST road, Chennai.
Going forward there are only better things to look ahead to. Consumer
confidence is increasing. For the first time in 30 years, we have a
stable government with a clear majority and mandate to provide good
governance. The union budget presented on the 10th of July seems to
bear this out with measures being announced to bring in more FDI, boost
infrastructure and create more jobs, which certainly bodes well for the
overall economic climate. With specific reference to our industry, the
decision to introduce Real Estate Investment Trusts and allow FDI in
urban construction projects is a welcome one.
Residential real estate, for one, has been growing steadily in most
markets in India. Between 2008 and 2012, despite the downturn in the
markets due to the 2008 financial crisis, real estate in India remained
stable, with 11 out of 15 Residex cities giving positive returns in
that time frame. As for market direction in 2015, it is forecasted that
the trend will be better than in 2014. This is due to clearer
governmental policy and the stimulation of budget approval. All these
represent good opportunity for the real estate business.
Today, India stands on the threshold of a new era, a new form of
governance and values that inspire a ''country-first'' approach. There is
also a deep hope that an understanding of the country''s economic levers
will soon restore the economic momentum. Given the dynamic business
environment in our country over the years, ARIHANT has been exposed to
several micro and macro challenges. Regardless of this, we continued to
build our business and achieve milestones rooted in ethics,
transparency and the highest standards of corporate governance, with
financial prudence and ''aggression with caution'' being our philosophy.
Today, we truly believe that we are prepared for an active tomorrow as
the aid by the tailwinds of a national governance framework resonates
with our broader business model and keeps us committed to enhance
long-term value for our stakeholders.
I would like to take this opportunity to express my sincere gratitude
to our bankers, financial institutions, Chennai Metropolitan
Development Authority and Corporation of Chennai and related
departments of Govt. of Tamil Nadu for having supported us on all our
efforts and endeavors and all those who work for or are associated with
Arihant. We look forward to your continued support in the years ahead
and wish you the very best.
Chairman and Managing Director