(Chairman cum Whole Time Director cum CFO)
I am elated to present before you the 23rd Annual Report of your Company the Companyhas had a long and momentous journey. The financial year 2016-17 has been yet anotheroutstanding year and lam proud of the progress the company has made. It is the continuedsupport and unwavering trust of all the stakeholders in the Company that has enabled us todeliver sustained performance and growth over the years.
The continued commitment and passion oj employees helped your Company exhibit strongleadership against the sphere of immense volatility in financial markets and the worldeconomy due to Demonetization and US President elections. Your Company too was not keptapart from these happenings and has faced margin pressures. It has been a challenging yearfor the Capital Market.
The total turnover of Mutual Fund Industry for Financial Year 2015-16 was Rs. 13.5 lacscrore and in Financial Year 2016-17 was Rs. 18.2 lacs crore with the growth of 1.348 timesand your company recorded an excellent growth of 14.10 times in Mutual FundDistributorship Business in Financial Year 2016-17. AUM under Mutual Fund DistributorshipBusiness of your company has increased from 2.12 crores in Financial Year 2015-16 to Rs.29.90crores in Financial Year 2016-17. Total no. of folios under company's Mutual FundDistributorship Business was 500 in Financial Year 2015-16 and in Financial Year 2016-17it increased by 1576 and reached to total2076folios.
In absence of alternative investment opportunities investors are focusing more onMutual Fund through S1P(Systematic Investment Plan) and/or STP(Systematic Transfer Plan)mode and SIP mode of investment has give handsome returns to the investors rangingfrom 18%to 30% in equity funds.
The improvement in India's economic fundamentals is expected to accelerate due to thecombined impact of strong government reforms and RBI's rigorous focus on keeping inflationunder check. The steps taken by the Government and unique initiatives such as 'Make inIndia' 'Digital India' 'Housing for All' and 'Skill India' have given the economy amajor boost
India has emerged as thefastest growing major economy in the world as per the CentralStatistics Organisation (CSO) and International Monetary Fund (IMF).also Corporateearnings in India are expected to grow by over 20 per cent in FY 2017-18 supported bynormalization of projits while GDP is expected to grow by 7.5 percent during the sameperiod according to Bloomberg consensus.
Indian economy grew at the rate of 7 percent in 2016-17 and the Wold Bank anticipatedthat it will further accelerate to 7.6 per cent in 2017-18 and 7.8 per cent in 2018-19.Demonetisation is expected to have a positive impact on the Indian economy which willhelp foster a clean and digitised economy in the long run according to Ms KristalinaGeorgieva Chief Executive Officer The World Bank.
The implementation of a unified GST is viewed as one of the most far-reaching indirecttax reforms as it is likely to create a common Indian market improve tax compliance andgovernance. Financial services in India have come out of a volatile cycle and withgovernment initiatives to devise various fiscal reforms the future opportunity scenariolooks quite attractive. Hence these are truly exciting times for all of us and as anorganization we must folly leverage^ the opportunity to the maximum.
The Economy is currently at a stage where a slight pickup in demand can lead to asignificant improvement in growth. The opportunity is out there in the open one justneeds to focus and choose the right path for success. As an organization we have setambitious yet realistic plans for each of our businesses.
At Indo Thai our corporate credo has been to Trade with Confidence' and hence wedeliver utmost satisfaction to our clients consistently. With over two decades ofexpertise and experience we have emerged as a front-runner in the financial servicesspace. We have come this far solely based on our core values serving as a moral compass inall our dealings. Our team's experience and expertise diversified product offeringsdisciplined approach to capital and robust risk governance have enabled us to win thetrust of distinguished investors customers and a wide fraternity of stakeholders.
Our strength emanates from the trust of people that we have earned over the years byproviding customized solutions to our clients. Today we are known for our diversifiedproduct portfolio and prominent position in all our service areas. The recognition we haveearned through several accolades is a manifestation to our excellence. We are ready withoptimism to leverage future opportunities. Flexibility and reinvention while staying trueto our ethos by helping every investor meet their financial dreams by offering them theright advice and solutions will set our foundation of growth for the forthcomingfinancial year and beyond. We are all set to launch a new software named WINSTOCK havingthe right blend of technology and human touch to offer clients not just a calculation buta solution customized to their needs. Looking back at Financial Year 2016-17 I am happyto share that all our businesses have demonstrated steady growth and several newinitiatives have been taken by the company. The company has incorporated an IFSC Companynamed Indo Thai Globe Fin (IFSC) Limited set up in GIFT CITY SEZ. Stock exchangesoperating in the GIFT IFSC will be permitted to offer trading in securities in foreigncurrency by NRIs and Foreign Entities and also provides longer trading days than whatstock exchanges are currently permitted to do in India. Thus the wholly owned subsidiaryacting as financial intermediary in International Financial Market is expected to increasegroup turnover and profits by tapping growth potential in the market. The company hasregistered one of its wholly owned subsidiary Indo Thai Realties Limited as an agentunder the Real Estate (Regulation and Development) Act 2016 to augment business in realestate sector. Your company deals in several segments that includes Equity SegmentF&O Segment Currency Segment Mutual Funds Segment and Depository Segment. During theyear Company has achieved turnover of Rs. 4381.05 crores in Equities Broking Segment ofRs. 7418.30 crores in F&O Segment and Rs. 77.23 crores in Currency Segment. The NetWorth of your company is increased to Rs. 44.95 crores as compared to Rs. 43.15 crores inthe Financial Year 2016-17 and the Net Profit After Tax was Rs. 3.003 crores.
The company believes that the support of shareholders have played indispensable role inimproved performance of the company therefore in lieu of the continued patronage ofshareholders the company has recommended a final Dividend @10% i.e. Re. 1/- per EquityShare for the Financial Year 2016-17. Your Company believes in serving its own peoplefirst by providing the right workplace facilities and atmosphere for every staff memberswith highly subsidized and quality canteen facilities; employee health provisions alongwith well-equipped gym facility and proper dress code for all the Employees. To connectwith the employees on a personal level the company initiates outings on regular basis.
With your continued support we will think bigger. Indeed not just bigger but bettercreating ever greater value for all our stakeholders. Don't hide engage. Take arisk get outside your comfort zone and challenge yourself to try something new with thisbelief the company will continue its journey towards advancement. I would like to end byexpressing my gratitude to all our clients employees investors bankers and shareholders for the trust they have reposed in us. I would especially like to thank our Boardmembers for their guidance throughout our journey. We look forward to your continuedsupport in our journey to create long term value for all our stakeholders.
| ||With Warm Regards |
| ||Parasmal Doshi |
|Date: August 03 2017 || |
| ||(Chairman cum Whole Time Director cum CFO) |
|Place: Indore || |