CHEMOX SECURITIES LIMITED
Its a great pleasure to welcome you at this tenth Annual General Meeting of
As you all are aware, the financial services industry has been passing
through a very critical stage because of continuous depressed capital
market conditions. The liquidity crunch faced by the economy, particularly
in the second half of the last fiscal year was severe and unprecedented.
This has coupled with reduction in ceiling on bank lending to all types of
NBFCs and moderation of lending by financial institutions (FIs). Hence the
credit availability to NBFCs from these sources has become scarce driving
them to access funds from other sources, often at non-competitive rates.
Even though there are signs of easing of liquidity, sentiments towards
NBFCs do not seem to have changed for the better.
As NBFCs have to mobilise public deposits in a highly competitive
environment, it is absolutely necessary to provide some flexibility at
least to offer a yield matching with the tenure of deposit. The Reserve
Bank of India has just announced major relaxations by freeing the ceiling
on interest rates and the quantum of deposits that can be accepted by
registered NBFCs which meet the prudential norms and credit rating
requirements. While this will help the NBFCs to achieve the above purpose
and also a better maturity match, it will be their responsibility to ensure
an orderly and healthy development of the sector as a whole.
In this type of adverse and competitive environment, only those NBFCs can
survive who have got very efficient and cost effective working. You would
be happy to note that despite this adverse conditions, your company could
perform reasonably well and have earned a profit of Rs. 500.71 lacs for the
year ended 31st March, 1996. The company has received registration as
Category - I Merchant Banker from Securities and Exchange Board of India
(SEBI) and the activities of Merchant Banking have already been started.
In addition to this, your company has been very active in syndication of
various corporate services and could earn substantial income out of that
and the company has also entered into Stock Broking services.
I am sure, with your tacit support and confidence reposed in the
management, your company would be able to perform well and make a place for
itself in the industry and would be a force to reckon with.
On behalf of the Board of Directors and on my own behalf, I take this
opportunity to thank our depositors, customers, bankers, financial
institutions and all the shareholders for the co-operation and assistance
extended to your Company and look forward to their continued support. I
also place on record my appreciation of the good work done by all members