At the outset please accept my warm greetings and I welcome you all to the 23rdAnnual General Meeting of your Company India Finsec Limited. In the face ofchallenges to domestic growth across countries the Company has demonstrated strongresillence which was possible due to aspiration will and persistent efforts by itsemployees. We feel immense pleasure in presenting before you the performance of yourCompany for the financial year 2016-17.
The global and local macroeconomic environment saw noteworthy changes such asdemonetization and President Trump's election that have a strong effect on global economicactivity. Demonetisation coincided with the US Presidential election results announced onNovember 8 2016 that impacted the equity market and most of the large listed NBFCs alsoregistered a significant decline between November 8 2016 and December 30 2016 mainly dueto cash intensive nature of their businesses and delayed repayments. The growth of creditextended by banks to NBFCs also appeared to have been impacted due to demonetization. Bankcredit growth to NBFCs decelerated from 5.1 per cent on y-o-y basis in October 2016 to 1.3per cent in November 2016 which further declined by 0.6 per cent in January 2017. In thisbackdrop we have taken our mandate to maintain your company's profitability level. Duringthe year 2016-17 your company recorded consolidated revenue of Rs. 91346463 as comparedto previous year's consolidated revenue of Rs. 76312931 which resulted in a consolidatedprofit of Rs. 17264388 as compared to previous year's consolidated profit of Rs.6021427 in the financial year 2015-16.
Overall demonetisation has had some negative macroeconomic impact which however hasbeen transient as remonetisation has moved at an accelerated pace in last twelve weeks.More importantly demonetisation is expected to have a positive impact over the medium tolongterm. In particular there is expected to be greater formalisation of the economy withincreased use of digital payments. The reduced use of cash will also lead to greaterintermediation by the formal financial sector of the economy which should inter aliahelp improve monetary transmission. However the situation for most NBFCs began to improvefrom late December 2016. Jan Dhan accounts increased by 23.3 million post demonetisationwhile deposits under Jan Dhan accounts increased by 187 billion (41 per cent).
Your company has taken various measures to strengthen its human resources processeswith a focus on building a talent pool of employees. The Company has been consistent incomplying with all the statutory and regulatory matters in the prescribed manner. IndiaFinsec Limited has taken various steps towards business growth which includes investmentin a housing finance company i.e. IFL Housing Finance Limited (wholly- owned subsidiary ofIndia Finsec Limited') which will help the company in also expanding itsbusiness activities in the line of housing finance. Moreover its associate company IFLEnterprises Limited' has come up with the public issue of 1626000 shares of Rs. 10each at a price of Rs. 20 each (including premium of Rs. 10 each) which wasover-subscribed. Further the associate company currently operating in various businesssegments such as textile trading direct selling agency and corporate advisory.
Overall all our businesses are doing well and remain on track in achieving the longterm business goals and aspirations.
I also express my thanks to all our Directors for their invaluable contribution throughtheir guidance and encouragement which have been critical for the success of the Company.Finally I thank each and every shareholder large and small for your support and trust.I assure you that each one of us is committed to build a company that is high on corporategovernance is of great value for society and is a company that you will be proud of.
Chairman & Managing Director.