AJCON GLOBAL SERVICES LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT Dear Shareholders, It is my privilege to present you the Silver Jubilee Annual Report of Ajcon Global Services Ltd. We have come a long way during these 25 years overcoming several hurdles and sailing through the ups & downs of the vagaries of financial markets. Financial Year 2012 was a challenging year for the economy on account of global factors like Euro Debt crisis and high oil prices. Domestically, high inflation and high interest rates posed a challenge to growth. The stress on the economy was evident by Bank's Net Non Performing Assets (NPA) numbers. At the aggregate level, NPAs of banks rose by 53.5 per cent during the quarter ended March 2012, from about Rs.39,200 crore at the end of March 2011 to slightly over Rs. 60,100 crore at the end of March 2012. Domestically, GDP numbers were disappointing. For FY12, GDP growth dropped to 6.5 per cent versus a robust 8.4 percent in FY11. Q4 FY12 GDP was expected at around 6.1 percent on a quarter-on-quarter (QoQ) basis, and on a year-on-year (YoY) basis, at 7.8 percent. However, on actual basis, the numbers were bad. Reported GDP growth in Q4FY12 was 5.3 percent, as against 7.8 percent in Q4FY11. This is first time GDP has fallen to 5.3 percent level since 2003, hitting a nine year low. According to the figures released by the government, the FY12 revenue gap stood at Rs. 3.847 lakh crore versus Rs. 3.949 lakh crore in the previous year. The FY12 fiscal deficit was at 5.8 per cent of the GDP as against the budget aim of 5.9 per cent. While inflation has moderated to some extent, risks to inflation cannot be ruled out and continues to be high. Large government borrowings may crowd out credit private sector. Wider Current account deficit, higher international crude prices along with fiscal slippages may affect growth. We believe concerns over Greece are taking a toll on the global sentiments. A situation of mild recession in the Euro zone can be sensed about what is happening in the debt affected economies. While things are improving in US which are evident from the recent employment data, China has emerged as a new concern. However, your Company emerged as a true winner fighting against all odds. The Company remained insulated from global events and domestic factors owing to diversified revenue stream. The brokerage business of the company did witness a slowdown but this was offset by a higher contribution from the consultancy division. In addition, the company acquired the Category I - Merchant Banking license from Securities Exchange Board of India (SEBI), which the company had in 1997, after which it had not renewed its license. With this fresh license acquired, the company has signed a few mandates and good activities would be witnessed under this division. The topline of the Company increased to Rs. 859.72 lacs and the Net Profit after Tax stood at Rs. 101.09 lacs, which were better than previous year. Your Company has made a mark both in broking and advisory business. 'Ajcon' has become a brand to reckon with in the Financial Markets. At the end, I would like to take this opportunity to thank all of you for your support. As our business evolves, sustainable & profitable growth will remain a fundamental target and we will pursue it aggressively while remaining true to our values. Thanks, ASHOK AJMERA CHAIRMAN