LETTER FROM CHAIRMANS DESK
It gives me great pleasure to welcome you all to the 9th Annual GeneralMeeting of Onelife Capital Advisors Limited. The notice related to this Annual GeneralMeeting Directors Report Audited Annual Accounts for the FY 2015-16 ConsolidatedAnnual Audited Accounts and Cash Flow Statement are already with you. With your kindpermission I shall take it as read.
FY2015-16 has been a significant year for your company. It is the fiscal when yourcompany has ventured to provide a business identity and growth option which may yieldpositive gains in the years to come.
India- Economic Performance FY2015-16:
Indian economy (GDP) grew at 7.6% for FY16 which is one of the highest growth ratesamongst G-20 nations. It is important to note that despite global growth challenges fromdeveloped economies like USA Europe and China the Indian economy has been able tosustain high growth rates and is now benefiting from a strong currency with low crude andcommodity prices. We feel there is now a mood of optimism emerging in the Indian economy.For Q4 FY2015-16 Indian economy grew at 7.9% to become one of the fastest growing economyin the world. Exports growth has been an area of concern with Y-O-Y negative growth ratesbut the trade balance has been partially alleviated by the reduced trade deficit andcurrent account deficits.
Services sector contributes almost 53% of the Indian GDP grew at a robust 10.2% duringFY2016. Macroeconomic reforms expected in the tax regime like GST coupled with the newpolicy and investment initiatives of the present government should augur a positive growthenvironment for the nation. Hence we as management of this company firmly believe thatIndia is perfectly augured to benefit from both global and local opportunities.
India- Economic Outlook for FY2016-17
Indias consumption will continue to grow in FY2017. Good monsoons should helpease the inflationary pressures in the economy. India will continue to benefit from lowcrude prices and stable interest rates. Resolution of Non-Performing Assets in the bankingsystem should further add growth momentum to the Indian economy. Despite global challengesexpected due to Brexit negative interest rates in Japan and USA indicating of a potentialrise in interest rates FY2016-17. This highlights the tremendous confidence of the globaleconomy on Indias expected performance.
Indian economy which is estimated at US$2 trillion today is expected to grow to US$20trillion in next 20 years making India one of the largest and best performing economiesin the world. Average age of the Indian population is at 35 years indicating itstremendous income generating potential and the ability to provide a positive growthmomentum to the global economies.
Company Developments 2015-16:
Your company has positioned itself to benefit from all the above opportunities bybuilding a strategic business and investment portfolio that can help reflect and profitfrom these developments. Your company has further focused to provide a platform forgenerating value added business by focusing on investments and opportunities which areinvestment accretive. Execution and management are the two key elements on which yourcompany wishes to reach this strategic goal.
In FY2015-16 your company through M/s Purple India Holding Limited a 100% subsidiaryof Onelife Capital Advisors Limited has entered into a shareholding agreement subject toall regulatory approvals to acquire Destimoney group of companies. Destimoney is amongstIndias leading full service equity brokerage and third party financial servicescompany with its own NBFC. Your company has ventured to acquire and thereafter to buildupon the existing business networks infrastructure and clientele of Destimoney. Thisacquisition should help your company to catapult itself to become amongst one of theIndias leading financial services business. Your company expects this acquisitionshould offer the ability to use its management strengths effectively to generate positivevalue to shareholders. This venture should be a good strategic fit to your companybusiness.
Your company also acquired 100% shareholding in Eyelid Infrastructure Private Limitedwith the intention to develop and use the underlying assets in the company for businesspurposes.
During FY2015-16 your company revenue was Rs. 209.50 lakh with a net profit of Rs0.38 lakh. The income was primarily by earned interest on the fixed deposits of thecompany.
Considering that your company is in an investment mode the management has decided notto declare any dividend for the year.
Company Outlook for FY2016-17
Your company is working to secure the necessary regulatory permissions by addressingthe ground challenges and possibilities. Your company is also looking at parallel businessopportunities to rebuild on the business options as they may arise. Your company expectsto conclude on this transaction by end of FY2017 and has built on future plans tointegrate and manage this new business. We are looking forward to make a quick turnaroundand growth for this new venture once all initial approvals and hurdles are cleared.
Our Sincere Appreciation and Acknowledgements
Your Directors and I the Chairman would like to take this opportunity to put acrossour personal gratitude for the support demonstrated by our shareholders for the companyinitiatives conducted by us. We will remain committed to try and build a formidablebusiness for the shareholders. The board will continue to provide the role of the mentorfor this company and help it navigate in these interesting times.
I would again like to thank our shareholders Banks Employees and other stakeholdersof our business whose support and guidance has enabled our enterprise reach thesebusiness targets and have been an inspiration to us.