I welcome you all to the 55th Annual General Meeting of yourCompany Mangal Credit and Fincorp Limited. Last year witnessed interestingdevelopments across the global economy. After a long spell of stagnation and de-growthgreen shoots of economic upswing are appearing for the world economy. According to theInternational Monetary Fund global economic activity led by emerging markets anddeveloping economies should pick up pace in FY 2017 and FY 2018. Asian economies led byIndia are picking up speed as policy and consumption led tailwinds have given businesses apositive fillip. Indeed India with a 7.1% growth rate in FY 2016-17 along withChina's growth rate of 6.7% for 2016 and promising to continue the trend into FY2017-18 will remain the epicenter of action. In India a fundamental premise of optimismstemmed from its strong socio-economic reforms that were peppered with events that willreset our country's economic direction in a transformational manner. The Indianeconomy finished on satisfied note even after challenging world economy in the fiscal year2016-2017.
In the face of challenges to domestic growth across countries doubtson the very concept of globalization have surfaced. This has led to demand for reversingprogress towards a barrier free world trade. The new world however has come a long wayunder globalisation and collaboration and have redefined the modern economy. Technologyhas dropped the barriers irreversibly and disruption through innovation is the norm whichis rewriting the very rules of conducting business. Businesses which leverage innovationto deliver the best solution in the ever-changing global arena will triumph. In thisbackdrop relentless pursuit of sustainable and inclusive growth and redistribution ofwealth are of critical importance if the destination of a global village that the worldembarked under globalisation is to be met. We at MCFL will remain committed to promotinginclusiveness and sustainability in our business and play a positive role as a corporatecitizen.
DEMONETISATION TO DIGITISATION
We have great pleasure to present before you the performance of yourCompany for the financial year 2016-17. The geographical expansion undertaken by theCompany will help in improving in the coming years also.
During the year 2016-17 your Company reported consolidated revenue of` 7921.56 lacs as compared to the previous year's consolidated revenue of ` 14341.52lacs. This resulted in a consolidated Profit of` 401.89 lacs vis--vis a consolidatedProfit of` 140.80 Lac in FY 2015-16.
India is powering ahead as the worlds' fastest growing majoreconomy and looking forward to minimize NPAs (Non-performing Assets) of banking sectorsand NBFCs to improve the financial conditions of the Companies/Banks. the World BankEconomic Survey has pegged India's GDP growth at 7.6% in 2017-18 and 7.8% in 2018-19.Owing to a shift in consumer behaviour and expenditure pattern India is expected to bethe third largest consumer economy in the world by
2025 as its consumption is expected to triple to US$ 4 trillion by2025.
Your Company continues to view its markets marketing and investmentplans through the broad lens of addressing the needs of new India that is emerging beyondthe existing sectors.
A Strong performance of any organization is always enabled by theaspiration will and effortsof its employees Mangal Credit and Fincorp Limited and itsemployees are committed to building a bigger bolder and smarter company which never losessight of its customers. I am Happy to share that the initiatives during the year reviewdemonstrated this bigger bolder and smarter thinking which is based on strong customerinsight.
Fiscal year 2016-17 was also challenging but the company hassuccessfully maintained its profit after tax 269.87 Lacs as compared to 109.72 Lacs in theprevious year.
As a responsible company Mangal group has substantially increased itscommunity initiatives with various projects by involving its employees as well. TheCompany has also managed to declare a dividend of 0.25 (twenty five paisa) per equityshare 2.5% of`10/- each for the year ended March 2017.
The parliament took a decisive step towards a possible roll out ofGoods and Services Tax (GST) on July 1 2017 by passing the four related legislations onGST. The state governments will have to pass the GST law in their respective stateassemblies. GST will be a single levy to replace multiple central and state taxes to makethe country a seamless national market and is expected to boost indias growth rate.
According to RBI GVA growth is projected to strengthen to 7.4% in2017-18. Inflation is expected to average 4.5% in the first half and 5 % in the secondhalf of the FY 2017-18.
Mangal Group of Company looking forward to adopt innovative businessmodel especially in the area of entertainment and infrastructure development through itssubsidiaries or through its associate Companies. Your Company also laid down thefoundation for a robust ecommerce plan to drive the sales of its products and solutions.
I began with a reference to our resilience. Recent challenges havehelped us evolve into a more risk-focused and resilient organization and with the recentexperiences in mind we will continue to operate with caution and prudence.
I am indebted to all our stakeholders-the distinguished shareholdersemployees our lending banks and financial institutions our foreign and domesticinvestors the regulatory bodies and the government-for their support and guidance.
MANGAL has put its best efforts towards expansion of businessactivities from the funds raised through preferential issue and also planning to utilizethe maximum resources available with the
Company to improve financial ratios of the Company.
Powered by the contributions and good wishes of all its stakeholdersMANGAL is well positioned to achieve its true potential in the years to come.
I also express my thanks to all our Directors for their invaluablecontribution through their guidance and encouragement which have been critical for thesuccess of the Company. Finally I thank each and every shareholder large and small foryour support and trust. I assure you that each one of us is committed to build a companythat is high on corporate governance is of great value for society and is a Company thatyou will be proud of.
|With Best Wishes |
|Meghraj Jain |
|Chairman & Managing Director |
|Place: Mumbai |
|Date: 30th May 2017 |