Welcome to the 28th Annual General Meeting of your Company. I thank you for yoursustained trust encouragement and support.
Since we last met India has moved ahead and looked at
The as a role model on several aspects. The transformative changes are oriented forcreating infrastructure and removal of obstacles to growth and development. Capacitybuilding in roads railways ports rural electrification are some of the areas beingemphasized like never before. Outcome of Government initiatives for "Make inIndia" and "Ease of Doing Business" and "Digital India" are allpervasive.
All these positive developments have thrown up fresh challenges such as massivemigration of rural population to cities urban infrastructure constrains etc.
In the year gone by we continued to be amazed by the incredible depth resilience anddetermination showed by the Indian economy. Like the global economy it was another yearof volatility uncertainty complexity and ambiguity of general conditions and situationsimpacted by events like Brexit and election results across the globe as well as domesticones like Demonetisation and other reforms. Despite all constraints the economy stillgrew at a healthy 7.1% one of the fastest across the world and well above peers ofcomparable size.
In FY18 while the global economic environment will continue to be challenging Indiawill be a bright spot with strong sustained GDP growth. The reforms undertaken over thecourse of the years will have a far-reaching and long-lasting impact. Initiatives likeDemonetisation and the proposed rollout of GST are likely to transform the Indian economiclandscape. While we may witness short-term volatility the longterm trend continues to beupward. These changes would help make India a single market thereby
spurring productivity investment opportunities competitiveness job creation andincomes.
The recently introduced Insolvency and Bankruptcy Code 2016 (IBC) has provided a timebound frame-work for resolution of loan defaults under supervision of the National CompanyLaw Tribunal. RBI has come forward to decide the cases (corporate defaulters) to be takenup by the Banks for resolution under IBC. Success of the scheme would largely depend oncapacity of the Insolvency Professionals engaged to organize and monitor the prescribedprocess from initiation and carrying out the process as well as to run the organizationtill it is disposed off/settled. The platform is susceptible to misuse by disgruntledemployees of the borrower and small time creditors.
The process indeed would unblock flow of lenders' resources to eligible borrowers andbring back Banks burdened with NPAs to health. Your Company is also to gain with freshflow of funds to borrowers and utilising the company's skill set for larger cases arisingout of restructuring management buyouts and settlements.
Now SEBI has required listed companies to disclose any default in payment of interestand principal due to the banks and financial institutions to Credit Rating Agencies withinone working day and outstanding amount in default as on the last day of the Quarter within7 days from the Quarter end to the Stock Exchanges (w.e.f. October 1 2017). Therequirement would bring in more discipline in loan repayments and supplement RBI's war onNPAs.
Governance has been a weak area holding back growth of the economy and transfer ofbenefits to targeted section of the population. Digitization of the benefit deliveryprocess and identification of the beneficiary through Aadhar have ushered in a paradigmshift in efficiency and service delivery process. Transparency governance and inclusivegrowth should take India to next level of development.
Key area of focus
Investment Banking continues to be the focus area for the Company as a one-stopsolution for major value added corporate services. The services covered include merchantbanking loan syndication financial restructuring resolution of stressed assets mergeramalgamation placements of securities. Income therefrom rose by 25% to ' 871 lacs in FY17 compared to ' 695 lacs during FY 16. Your Company's better performance was due tocontinued focus on improving operational parameters and customer centricity. YourCompany's shares have done much better in last one year due to better results and improvedworking environment.
The Company despite challenges arising out of Demonitisation and GST implementation has
posted revenues of ' 1487 lacs during FY17 (' 1094 Lacs for FY 16 - 36% increase).Profit before Tax increased to ' 441 lacs against '153 lacs in the previous year whereasPAT increased to ' 297 lacs compared with ' 96 lacs for FY16. EPS stood at ' 3.71 in FY17compared to ' 1.20 in FY16.
With positive developments all around your Company is sure of availing theopportunities to consolidate and move forward.
R. L. Gaggar