My dear fellow Shareholders
The year under review has been very challenging. Markets have zoomed to 36000 with theprojected GDP expected to be in the range of 7.4% - 7.8% in this financial year. Thedownturn in the economy due to the impact of demonetization and implementation of GST hasbegun to settle down and the economy is now on a growth trajectory. However thevolatility in global markets does not seem to be stabilizing with crude oil prices on anupward swing and the global trade scenario especially with China and USA's escalatingtrade war sanction on Iranian oil and anticipated USA's war with North Korea breathingfire the impact on the Indian Economy could be severe.
The NSEL debacle continues the Government of India has ordered the merger of NSEL with63 Moons (erstwhile Financial Technologies Limited) however stay has been granted by theHon'ble Supreme Court on an appeal filed by 63 Moons hearing for which is expected on 29thAugust 2018. The company's valuable resources being stuck have caused a major impact onthe financials of the company. We are hopeful that the initiatives taken by the companywill bear some favourable result and the investors would get their money back at theearliest.
Real Estate Regulatory Act (RERA) has been implemented and is making a big impact onthe real estate sector. Our Company has entered into an agreement for sale with K RahejaCorp Pvt Ltd for developing Modern Centre which has now been demolished and constructionactivity is expected to begin shortly once all requisite approvals are in place. TheCompany is also in the process of taking clearances for its Boisar project.
The company has deferred the commissioning of its 2 MW Solar Power plant at SataraMaharashtra due to flip flop of policy by the government in the renewable energy sector.
Your company's subsidiary M/s Verifacts Services Pvt Ltd has achieved a turnover of Rs.18.45 crores as against Rs.21.44 crores in the corresponding previous year down by 13.93% due to the impact of the new H 1B visa rules implemented by the US and general reductionin recruitment across sectors due to demonitisation and implementation of GST. We hope toimprove our growth during the current year. We have initiated many new measures like B2Bonline chat facility executed agreements with various agencies viz NSDL for PANverification e-KYC Database Management and the Company is also in process of executingagreements with UIDAI and has also tied up with Transunion CIBIL to ensure that wecontinue to have a competitive edge.
Your overseas subsidiary M/s Modern International (Asia) Ltd has registered a turnoverof US $ 6.75 million for the year 2017-18 as against US$ 24.27 million for the year2016-17 a significant drop due to downturn in the Chinese Economy. We are taking variousnew steps to make sure that we continue on the path of growth and are certain of improvingour performance.
The company on a standalone basis has achieved turnover of Rs.90.16 crores as againstRs. 66.37 crores in the year 2016-17. Unfortunately the company has sustained a loss ofRs.4.70 crores after tax in the past financial year; however we are optimistic that theselosses will be contained and the Company will see a turnaround once the projectcommences.The Directors are pleased to recommend a dividend of 15 % for the year.
As always we shall continue to strive to improve our performance.
Vijay Kumar Jatia
Chairman & Managing Director