The fiscal year 2019-20 started with speculation of global economic slowdowndisruptive trade wars and ended with the pandemic COVID-19. The outbreak of novel Coronavirus had affected the market sentiments of majorly all the sectors and industries acrossthe globe to a great extent. Nevertheless your company has shown itself to be veryvalorous purpose-driven resilient and adaptable staying relevant to its clients throughmultiple economic cycles and doing well for all its stakeholders. Indeed your Companyhas been relentlessly pursuing its core values for inching ahead towards its Vision.
The Indian equity market which made sizable gains till mid-January 2020 recorded asharp decline in the remaining part of H2:2019-20 tracking the deterioration in globalequity market sentiment due to COVID-19. The BSE Sensex touched the 40000 level duringQ3:2019-20 but it came under intense pressure during Q4: 2019-20. Overall the Sensexdeclined by 23.8 per cent during H2:2019-20. The BSE Sensex reclaimed the 40000 level onOctober 30 2019 taking positive cues from global markets amidst fresh optimism over theUS-China trade negotiations and agreement on Brexit deal between the UK and the EuropeanUnion (EU). The uptrend continued in November 19 and December 19 on the back of growthboosting measures by the Government of India support to the Insolvency and BankruptcyCode amendment and approval for a partial credit guarantee scheme for public sector banksto purchase pooled assets from NBFCs. Markets became flaccid however following theescalation of geo-political tensions between the US and Iran a subdued domestic GDPgrowth outlook along with downward revision of India's growth forecast for the financialyear 2019-20 the Sensex closed at 29468 at the year-end that is fall of around 30% frompeak.
The steps taken by the Government of India and RBI are highly respected as they havebeen continuously pushing measures to strengthen the economy. The announcement of "20 lakh crore" stimulus package by the present Government has augmented the potentialof various industries and sectors to combat the slowdown caused by Covid-19; thus makingthem self-reliant.
We may congratulate and appreciate the fact that during the FY 2019-20 your Companyhas won
"Business Excellence Award - Skoch Corporate Excellence Awards 2019 PremierDepository Participant in Gold Category - CDSL Awards 2019 Fastest Growing MFI North inBest Star MF Online - BSE Star MF Awards 2019" and many more.
The overall financial performance of your Company has been consistent enough during theFY 2019-20. During the year we believed in the growth potential of all our businesssegments and achieved a consolidated Total Income of 78413.45 lakhs (PY 75947.07 lakhs)and PAT of 2386.17 lakhs (PY 7478.25 lakhs).
I feel elated to inform you that despite the impediments faced by the Company duringthe pandemic your Company has achieved consolidated PAT of 2451.00 lakhs (PY Rs. 928.10lakhs) in the first quarter of the current fiscal year. This great achievement waspossible only with the inexorable efforts of all the employees and senior management ofthe Company.
THE PANDEMIC COVID-19
I shall take this opportunity to congratulate the present Government of India whichprofoundly administered the outbreak of unprecedented COVID-19 pandemic. Whilst the entireCountry was under lockdown for containment of COVID-19 your Company being falling underthe category of "Essential Services" as notified by the Government andSecurities
Exchange Board of India has been continuing the business operations with minimalpermitted staff and remaining employees were encouraged to work from home. It shall bepertinent to say that we were able to witness the resilience & adaptability of ourbusiness model and our capabilities in true sense.
The market evidenced record participation during the most unpredictable period withinvestors rebalancing their portfolios making opportune trades during volatile times orfinding a good entry point with prices at a multi-year low. Large scale work from homeclient engagements exclusively through electronic channels and large volumes of onlinesales proved the vital role of digitalization in sustainable business growth and costsavings.
DIRECT LISTING OF EQUITY SHARES IN BSE & NSE
Your Company's equity shares are currently listed in The Calcutta Stock ExchangeLimited. The Company has been contemplating over the listing of its equity shares on thetwo nationwide exchanges of the Country viz. NSE and BSE under the direct listingmechanism. With affirmative expectations the management has duly approved for filing anapplication with both the exchanges and the same is in process. Undoubtedly listing ofthe shares with NSE & BSE will enable the company to widen its shareholders base andenhance visibility transparency and credibility. Moreover it will stimulate liquidity bygiving all shareholders the opportunity to realize the value of their investments.
SMC believes that a company's performance must be measured by its triple bottom linecontribution to building economic social and environmental capital towards enhancingsocietal sustainability. In view of its own conviction SMC Group has spent an amount of187.45 Lakhs in the FY 2019-20 (PY 140.8 Lakhs) on corporate social responsibilityactivities. As a responsible corporate citizen and part of its CSR objectives SMC Grouphas contributed 51 lakhs towards the Prime Minister's Citizen Assistance and Relief inEmergency Situations Fund to combat the deadly and pandemic COVID-19.
COVID-19 the accompanying lockdowns and the expected contraction in global output inthe calendar year 2020 weigh heavily on the growth outlook. The actual outturn woulddepend upon the speed with which the outbreak is contained and economic activity returnsto normalcy. Significant monetary and liquidity measures taken by the Reserve Bank andfiscal measures by the government would mitigate the adverse impact on domestic demand andhelp spur economic activity once normalcy is restored.
The recent pandemic has changed the business narrative and its time that our priorityremains valuing life and securing business to support our community. SMC amidst theglobal crisis is committed to safety & well being of all our employees partners andstakeholders. We are aligned to government advisories and will ensure taking all theprecautions and preventions at our offices.
Our robust infrastructure processes and most importantly our people have ensuredthat we continue to deliver the commitments with minimal disruptions caused by the globalCOVID-19 pandemic. We have been proactive to respond to these challenges and were early toswitch to work from home without impacting customer deliverables. Our robust ITinfrastructure and business continuity processes have allowed us to respond to thesituation quickly as it continues to evolve and we are expecting a better growth prospectin time to come.
Lastly I wish to express my deepest gratitude to our stakeholders vendors bankersgovernment exchanges regulators partners clients communities and states that weoperate in for their guidance advice and support. I am also grateful to our exuberantemployees and committed senior management for showing their relentless efforts during thephase of this pandemic COVID-19. With their continuous support your company embarks on thenext phase of growth journey creating ever greater value for all our stakeholders.