1995
MID EAST PORTFOLIO MANAGEMENT LTD.
CHAIRMAN'S STATEMENT
I have great pleasure in extending you all a warm welcome to the 4th Annual
General Meeting of your company. The Director's report and the audited
accounts of the Company for the year ended 31st March, 1995 have been with
you for some time and with your permission I consider them as read.
Economic Scenario
The liberalisation of the economy undertaken by the Government has now
started yielding results. With Foreign Exchange Reserves touching an all
time high level coupled with various other measures initiated by the
government. India has started figuring prominently in financial map of the
world.
The finance ministry has delegated more powers to the Securities & Exchange
Board of India (SEBI) for control as well as growth of the capital market.
SEBI has allowed free pricing of premium in public issue and also
authorised lead managers for vetting the rights issue. As regards Non-
Banking Finance Companies. Reserve Bank of India has asked for restricting
credit to them and also exercise greater administrative controls.
Performance
During the period under review your company has recorded encouraging
results. The gross income has jumped from Rs.16.01 lacs to Rs. 229.03 lacs.
The profit after tax has risen from Rs.0.19 lacs to Rs. 103.24 lacs showing
an allround growth in the activities of the company. Encouraged by these
results the Directors had declared an interim dividend of 10% and has
further recommended final dividend of 5% making the total dividend 15%.
As usual the company continues to be a market leader in mobilising NRI
funds and mobilised around Rs.80.45 crores during the year 1994-95. This
forms the core areas of the income of the Company. There are around 750
Power of Attorneys issued by various NRI clients in favour of your
Directors Mr. Kishor A. Shah and Mrs. Jyoti K. Shah indicating clients
undisputed faith in the company. the Company intend to grow further in this
area and have targeted to reach 1000 power of attorneys for the current
year. The schemes NRI NIDHI and NRI NIIS introduced last year have been
doing well.
Your Company has introduced two new schemes for clients i.e. PRIME ADVISOR
and PRIME INVEST. The schemes have received good response and company
already has around 130 clients in Prime Advisor and 35 clients in Prime
Invest Company intends to reach a target of 300 clients in Prime advisor
and 100 in Prime Invest and expect to collect an amount of Rs.600 lacs
under these schemes.
I am glad to inform you that your company has been accredited with Category
I Merchant Bankers status by SEBI. This will enable the company to enter in
issue management area and offer to its clients all financial services under one roof. During the year the company intends to take 8-10 issue management
mandates and firmly establish its hold in the financial market as a
Merchant Banker.
The Company also intend to enter into the highly skilled areas of Bought
out deals, Joint ventures. The Company is also negotiates with a Reputed
Overseas Institutional Investor for promoting an Offshore Mutual Fund.
For increasing its network the Company has already set up 100 franchises in
Bombay itself and intends to increase the same to 150 during the year.
Company wants to spread its wings out of Bombay and is opening its Jaipur
branch very shortly to be followed with Ahmedabad, Bangalore and Pune. The
Company also intends to take a giant step in the international market by
opening of full-fledged office in Dubai and enter the international market
for various international financial activities.
Company has also applied to RBI for Non-Banking financial Company status
and on receipt of the same would go to promote a fixed deposit scheme after
getting rating from a reputed rating agency.
I would like to bring to the notice of the members that our sister concern
i.e. Montage Securities Ltd. has received membership of NSE (Capital Market
Segment) and has been doing exceedingly well in the Stock broking
activities. A new Company is also floated for obtaining OTC membership to
operate OTC markets.
The Company has also adversified into Power Projects and has purchased a
land at Coimbatore for the same. The wind Mills to be situated on that land
is likely to be commissioned in the 1st quarter of 1996. This will not only
give tax shelter but will also generate regular consistent income for the
Company.
In view of all these activities. I am of the opinion that the performance
of the current year till surpass the results of the year ended 31st March,
1995.
Acknowledgement
Before I conclude, I sincerely acknowledge and thank our Bankers i.e.
Syndicate bank and Central Bank for the help and guidance provided by them.
I am fully confident that with their continuous support and co-ordination.
We shall be able to gear up for greater heights of achievements. My thanks
also go to all my colleagues on the Board who have rendered valuable advice
and guidance. I also express my profound thanks and appreciation for the
contribution made by our executive and staff members at all levels.
Finally, I also extend my gratitudes to you, all our share holders-our
family members whose confidence in Mid East has been a continued source of
inspiration and strength at all times.
Thanking you
KISHOR A. SHAH
Chairman & Managing Directorrrrr