SUBASH DALAL FINANCIAL CONSULTANTS LTD.
My Dear Shareholders, Ladies and Gentlemen,
It gives me immense pleasure to welcome you all at this 4th ANNUAL GENERAL
MEETING of your Company. Since the Company's Audited statement of Accounts
for the Financial year from 1st April'93 to 31st March'94 alongwith the
Directors' Report have already been circulated to you in advance, with your
permission, I shall take them as read.
LIBERALISED ECONOMIC SCENARIO
The Indian economy has withnessed the swing of fortunes which is complete and
dramatic that has brought a plethora of Financial activities. Theres has been
a pronounced increase in the Foreign Investment inflows and a greater degree
of efficiency and competitiveness in the economy. Industrial, Corporate and
Service Sector scenes wore a different look. The Balance of Payment's
situation is well under control and Foreign Exchange REserves are at a high
level and still rising. Full convertibility of the Rupee, reduction in
Corporate Tax, restructuring of Taxes and Duties, etc. have started showing
encouraging results. Economic reforms, although perceived to have slowed
down, have brought much needed changes including attitudinal changes. Whole-
hearted efforts on the part of the Government towards making India an
integral part of the global Economy implies vast inhherent potential which
can be tapped both by Industry as well as the Services Sector. Political
stability and international recognition of growing Indian Economy hold out
The current good monsoon for the 7th year in succession, likely announcements
of very encouraging working results of Corporate Sector, openness on the part
of lthe Government, Privatisation of Tele-Communications and Power Sectors
and likelihood of further reforms buy way of Budgetary and Fiscal
announcements by the Government for the year 1995-96, show the directions for
further stimulation of the Indian Economy.
The Company is formulating a corporate strategy to take advantage of the
changed Economic Scenario to ensure its fast growth and commendable
profitability. In everything we strive to do, we have in mind giving returns
on your investment and ensuring Socio-Economic upliftment. It is expected
that there would be a perceptible increase in Agricultural and Induatrial
production during the current year leading to and overall growth rate of
around 5% which give promising future for your Company's Financing Operations.
The Board of Directors have recommended payment of dividend @ 15% on the
Paid-up Equity Share Capital as on 31st March,1994. During the year, the
Company earned Total Income of Rs.1,29,25,388 as against the total Income
of Rs.53,55,650 in the previous year, Gross Profit of Rs.53,30,979 as against
the Gross Profit of Rs.23,69,165 and Net Profit after Tax Provision of
Rs.36,14,015 as against the Net Profit of Rs.12,78,250. An operational efficiency is on the rise as evidenced by 141% rise in total income, 126%
rise in Gross Profit and 182% rise in Net Profits.
The Company enjoys the advantage of being one of the Western India's pioneer
Financial Organisations. The working of the Company is very encouraging for
the current period during which it has already crossed the earnings of the
entire previous year. To augment the existing activities of lmanaging Public
Issues as a leading Category I Merchant Banker recognised by the Securities
and Exchange Borad of India (SEBI) so as to make the Company an Integrated
Financial Services Super-Market, the Company has already diversified into
Fund based Financial Services such as Lease Finance of Industrial Equipment,
Plant & machinery and Vehicles; Hire Purchase of Consumer appliances
manufactured by leading Companies, Bill Discounting etc. The Company has
targeted and is confident to achieve substantially highly turnover during the
current year ending on 31st March, 1995 and expects to achieve Earnings per
Share (EPS) of Rs. 5 to 6, barring unforeseen curcumstances.
It would be the Company's endeavour to continuously monitor lthe environment
to identify issues which would have a significant bearing on its operations
and innovate constantly to lsurge ahead. Keeping in mind the single largest
concern as of today i.e. the growing competition, your Company would aim to
create tomorrow's advantage faster by identifying, cultivating and exploring
core competencies that make consistent growth feasible.
Public Issue proceeds is helping the Company to achieve various projections
made by it in the prospectus published for the Public Issue of Equity Shares.
The Company is in the process of tying up Bank Finance for undertaking
increased Lease/Hire Purchase and other Business activities. The Company
expects the sanction of various Banking facilities during the current year.
The Company is also taking steps for inviting and acceptance of Fixed
Deposits under its attractive schemes.
The Company has issued 60,00,000 Equity Shares of Rs.10/- each for cash at
par aggregating Rs.600/- lacs in January, 1994 which was oversubscribed by
more than to times indicating the overwhelming response of the investors. The
Directors of the Company convey their sincere thanks to you and to the
investors for reposing confidence in the management of the Company.
Your Company was incorporated as SUBASH DALAL FINANCIAL CONSULTANTS LTD. It
is now thought proper to change this name of the Company to SDFC FINANCE
LTD., subject to such approvals as may be required; in view of the
On behalf of the Board of Directors and on may own behalf, I take this
opportunity to thak our Customers, Bankers, Brokers, Underwriter, Merchant
Bankers and Financial Institutions for their support and assistance. I look
forward to their continued support. I also place on record my appreciation of
the hard work done by all members of the staff, both in the field and in the
Last but not the least, thanks are due to you as the shareholders as without
your reposing the confidence and trust in the Company, the dream of making
your Company Financial Super market may not be converted into reality.
Place : Baroda SUBASH B. DALAL
Dated : 26th September, 1994 Chairman