On behalf of myself and the members of the Board of Directors (BOD) I am pleased tointroduce to you Thirty Fifth annual report for the year ended March 2017.
Over 35 years back when we first started this company we had articulated a long-termstrategy a vision to become most trusted brand for our clients and associates. It was acrucial time in the history of our industry and a turning point was witnessed in the wayfinancial companies operated in India. As a traditional research company we adapted toour near-term challenges and started a new path to best suit our global business needs. Aswe went global we started getting recognized as a trusted brand for research relating tosmall-cap and mid-cap companies. Our continuous efforts to meet our client's expectationshelped us achieve this growth. I would like to thank our BOD and other key managementpersonnel for accomplishing sizeable achievements during company's tenure despite thechallenges and problems faced by the capital markets worldwide.
In the fiscal year 2017 despite challenging business environment due to uncertaintyover major structural changes in the Indian economy we continued to strengthen ourbusiness segments. This was supported by our long-term strategies focused towards smalland medium sized companies listed in India. Moderate growth across the globe is beingfaced due to broader slowdown in the Chinese economy low commodity prices and fragileeconomic growth in advanced economies. However the macroeconomic story of India over thelong-term remains strong due to the implementation of robust economic reforms undertakenby the government of India. Notably implementation of the "GST Bill" in July2017 is expected to increase Indian government's overall tax collections. This will leadto greater participation of retail investors in the capital markets which would in turnhelp us grow our business.
By the end of the fiscal year 2017 our total revenues stood at Rs. 2.07 crore. Anextra-ordinary growth was witnessed in our sale of research products segment which grewfrom Rs. 18010 in FY 2016 to Rs. 620418 in FY 2017. Another segment which progressedwell during FY 2017 was our content sale segment. A substantial growth of 50% waswitnessed in this segment. The majority of our revenue comes from sale of shares segment.Uncertainty over major structural changes in the Indian economy resulted in weak revenuesfrom our sale of shares segment. However these changes would have long-term positiveeffects on the capital markets especially on small and medium sized companies which inturn would be beneficial to our business. During FY 2017 despite challenging marketscenario our company reported a net profit of Rs. 11.31 lakh. Our strategies to surviveeven the most challenging market conditions has helped us to achieve this profit. Wecontinue to focus on research offerings related to small and mid-size companies andcontent sale. These segments are likely to remain our core growth drivers. On the globalfront we are considered one of the most trusted brands for small and mid-cap research andcontent. This has enabled us to enter into a content sharing agreement with ThomsonReuters Capital IQ - a division of Dow Jones TheMarkets.com LLC-USA Bloomberg EMIS andmany other alliances in the Indian markets.
People are the biggest assets of our company and it is essential to highlight that itis only because of the determination and dedication of our people that we are able toserve our clients and make long-term value to our shareholders. We believe their sustainedefforts should help our company gain further acceptance in the market and present newopportunities with further momentum in the market activity.
Lastly we have made relentless efforts to improve the corporate governance system ofour company. Improvement in the company's corporate governance will not only help us toenhance internal controls but will also assist us in promoting a greater level oftransparency and disclosures. This would support us in improving overall shareholderrelations and protect the rights of the shareholders. We have attached the report oncorporate governance for FY 2017 reflecting corporate governance standards followed by ourcompany.
Finally on behalf of the Board of Directors and myself I would like to express mysincere gratitude to our shareholders for immense support. I am also thankful to our Boardof Directors for their guidance. With your deep support I believe that our company iswell positioned to maximize shareholder returns over the long-term.
|Kishor P. Ostwal |
|Chairman & Managing Director |
|DIN: 00460257 |