On behalf of myself and the members of the Board of Directors (BOD) I am pleased tointroduce to you Thirty Sixth annual report for the year ended March 2018.
When we first incorporated this company we had envisioned a long-term strategy and avision to become the most trusted brand for ourclients and associates in the country. As atraditional research organization we have experienced the growth which the Indianfinancial industry has progressed through. As the industry advanced we too climbed theladder of success by adapting to our near-term challenges which were well-matched withour increasingly global business needs. Growing recognition worldwide acknowledged us as aunique Indian brand for research relating to small-capand mid-cap companies. Furthermoreit is our dedicated team's efforts to meet client deadlines which have supported us toachieve this growth. I want to thank our BOD and other key management personnel foraccomplishing sizeable achievements during the company's tenure despite the challengesand problems faced by the capital markets worldwide.
During the fiscal year 2018 we continued to strengthen our business segments despiteuncertainty arising due to structural changes in the Indian economy. Our long-termstrategies which are focused towards small and midcap companies have prima rily supportedus to sustain our near-term business goals. As moderate growth is being witnessed acrossthe globe mostly due to changing commodity prices and weak economic growth in advancedeconomies the Indian economy too was affected during the first half of FY 2018. Howeverthe macroeconomic story of India over the long-term remains strong due to theimplementation of robust economic reforms undertaken by the government of India. Notablyimplementation of the "GST Bill" in July 2018 is expected to increase Indiangovernment's overall tax collections. This will lead to greater participation of retailinvestors in the capital markets which would in turn help us grow our business.
By the end of the fiscal year 2018 our total revenues stood at Rs. 4.40 crore. Anextraordinary growth was witnessed in our sale of shares segment which grew from Rs. 1.63crore in FY 2017 to Rs. 4.00 crore in FY 2018. Most of our revenue comesfrom the sale ofshares segment. Substantial domestic and foreign inflows optimism surrounding improvementin the economy and moderate growth in ea rnings of corporates were the main factors behindthe rally. Furthermore significant structural changes in the Indian economy would havelong-term positive effects on the capital markets especially in small and medium-sizedcompanies which in turn would be beneficial to our business. During FY 2018 despite achallenging market scenario our company reported a net profit of Rs. 9.49 lakh. Ourlong-term strategies to survive even the most challenging market circumstances has helpedus to achieve this profit. We continue to focus on research offerings related to small andmid-size companies and content sale. These segments are likely to remain our core growthdrivers. On the global front we are considered one of the most trusted brands for smalland mid-cap research and content. This has enabled us to enter into a content sharingagreement with Thomson Reuters Capital IQ - a division of Dow Jones TheMarkets.comLLC-USA Bloomberg EMIS and many other alliances in the Indian markets.
Significant efforts have been made by us to improve the corporate governance system ofour company. Enhancement in the company's corporate governance will not only help us toaugment our internal controls but will also support us in endorsing a higher level oftransparency and disclosures. These efforts would assist us in improving overallshareholder relations and protect the rights of the shareholders. We have attached thereport on corporate governance for FY 2018 reflecting corporate governance standardsfollowed by our company. Finally on behalf of the Board of Directors and myself I wouldlike to express my sincere gratitude to our shareholders for immense support. I am alsothankful to our Board of Directors for their guidance. With your deep help I believe thatour company is well positioned to maximize shareholder returns overthe long-term.
Kishor P. Ostwal
Chairman & Managing Director