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Management Message
Year 2006 was the year of challenge for survival in an instable market for PARSIAN, as it was for most similar companies. Dramatic increase in global price of raw materials and metals led to a huge jump in the production expense required for our projects.
Moreover, due to an increasing demand for electrical projects throughout the world, the manufacturing and delivery times have been increased. Financial crisis for our clients and corresponding delay in receipt of due funds from them was also an important factor, worsening the situation.
Ministry of Energy, as our major client, initiated taking policies regarding fixing electricity cost and eliminating all corresponding subsidies. The most important outcome of such crisis was a long delay in fulfilling all commitments from our major client.
Rise and development of political crisis in Middle East including Syria and Iran-being our major markets- increased the risk of investment and other related risks that eventually caused damage in banking relation.
All above-mentioned facts led PARSIAN to consider every probable risk so as to minimize the total risk in signing all new contracts. It resulted in 15% decrease from the expected and planned sum of signed contracts from statistically points of view using regression analyses.
Increase in the number of competitors who started their activities in the electricity market in the last two years, and their participation in the relevant tenders, forced PARSIAN to minimize financial margins in all the projects.
PARSIAN adopted policies in order to resolve the afore-mentioned problems which are as following:
- Minimizing realization period of the projects to achieve maximum satisfaction of the clients and to compensate the delay caused by the cited factors.
- Establishing two companies in PARSIAN holding to manufacture GIS substations, Transformers and Electrical Panels. "Pars Sanat Parand" Company, owned by PARSIAN, was the most important step in this way that focused mostly on assembly of electrical panels. Establishing GIS plant is in progress through signing new contracts for GIS substations. Regarding transformer manufacturing factory, considering changes in partners, modifications in establishment and process diagrams are in progress.
- Throughout the year 2006, the project management and project control systems have been improved and upgraded systematically in order to guarantee optimum control on Cost, Time and Performance of the projects. Preparing detailed weekly reports, establishing risk management team and regular meetings with project managers were among the solutions that PARSIAN adopted to override the challenging crisis.
- PARSIAN, as a dynamic and self-adjusting organization, continued upgrading all existing systems as well as creating new ones as follows:
- Cash Flow Diagrams and Budget Planning System
- Automated Procurement System
- Automated Warehousing System
- Automation of Internal Correspondences
Thanks to all my colleagues, in all divisions of PARSIAN, we passed through the crisis and are following the route ensuring implementation of all our plans and scheduled goals confidently.
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