Message from the Chairman

Dear Shareholders,

The year 2015-16 has been the second year of revived business sentiments. It started on a positive note with a stable rupee and decline in inflation on account of sharp moderation in global commodity prices. Negative WPI inflation encouraged the Reserve Bank of India to reduce the REPO rate by 75 bps. However, banks are still reluctant to pass on the entire rate cut benefit to customers due to higher delinquencies. We hope thatin the near future banks will reduce the interest rates, which will reduce the debt burden of infrastructure companies.

During the year 2015-16, the Central Government has initiated various policy measures to revive economic growth. The Prime Minister's Office (PMO) has taken over the Project Monitoring Group (PMG) to oversee the progress of the sanctioned projects and take corrective action for stalled projects. In the calender year 2015, the PMG has resolved more than 149 projects involving an investment close to Rs. 5,00,000 crores. The Central Government has also announced various projects like "Power to all: by 2019", "175 GW of clean energy: by 2022", "100 Smart Cities", "Make in India", "Sagar Mala: to modernize India's Port" and "Delhi – Mumbai Industrial Corridor". We believe that these projects will not only improve the infrastructure of the country, but will also bring substantial business opportunities for the EPC players like your Company.

During the year, the execution of various projects under implementation peaked to a higher level as compared to last year, leading to a healthy growth. In order to diversify our client base and generate a new stream of revenue we have started to explore global opportunities and have bid for various projects overseas. This would open new vistas of growth. Your Company is also exploring opportunities in the water distribution business. This segment holds great potential going forward with the government's initiatives such as '100 smart cities' which would emphasize on modern infrastructure facilities for water recycling, conservation and waste watertreatment.

In 2015-16, the standalone total income of your Company stood at Rs. 129.11 crores compared to the previous year of Rs. 81.40 crores, a year on year growth of 58.61%. The Profit after tax stood at Rs. 5.11 crores as against Rs. 4.24 crores of the previous fiscal year.

The consolidated income of your Company grew by 52.23% and reached Rs. 151.42 crores in 2015-16, compared to Rs. 99.47 crores of the previous year. PAT grew by 78.40% and reached to Rs. 3.80 crores against the previous year figure of Rs. 2.13 crores.

I would also like to take this opportunity to thank all our stakeholders for believing in us and partnering us through the challenging journey. I would like to specially thank our employees, our biggest strength that have worked with great dedication in achieving our vision and would like to acknowledge their steadfastness against all odds.

Surinder P. Kanwar
Chairman & Managing Director




Raunaq EPC International Ltd. (Formerly Known as Raunaq International Ltd.)
20 km Mathura Road,
P.O. Box- 353, P.O. Amar Nagar
Phone: +91-129-4288888
Fax: +91-129-4288823