Dear Shareholders,
On behalf of the Board of Directors, it gives me immense pleasure to share with you the
progress your company has made over the last twelve months and my thoughts on the future
that lies ahead of us. The year 2017-18 has presented several opportunities as well as
challenges that we have tackled to achieve the highest ever Profit After Tax (PAT) in the
history of your company. We remain committed to our vision to become the most preferred
investment company in India. While the pillars for our next leg of growth are in place, we
remain focussed on meeting the challenges that come up to achieve our goal.
The Indian Economy has rebounded well from the short-term disruptions of demonetization
in 2016 and introduction of Goods and Services Tax (GST) in July 2017 to post a blistering
7.7% GDP growth in the last quarter of fiscal 2018. The rising position of India amongst
the Emerging Markets as well as the global economy makes it a secular growth story and
your company is well positioned to benefit from the long-term value creation this growth
brings. However, the journey is not expected to be devoid of any uncertainties, with
volatility in foreign fund flows, fluctuating political climate and the increasing trade
deficit being the key risks to this growth engine.
With earnings improvement in the backdrop, the year was also witness to a strong up
move in capital and equity markets on the back of rising liquidity driven by record mutual
fund inflows. The Nifty touched its all time high of 11,172 on 29th January
2018 but closed the year at 10,113 with 9.5% return. During the Annual Budget 2018-19, the
Honourable Finance Minister removed the tax exemption on long term capital gains and
introduced 10% income tax. Despite the introduction of long term capital gains tax, we
believe that equity remains the best bet to defeat inflation by giving superior tax
adjusted returns.
When we look towards growth, we shall do so while upholding our core values and our
accountability to the many stakeholders we serve. The Board of Directors continue to work
towards shareholders' wealth maximization and took several steps in that direction during
the year such as augmenting the growth capital of the company via preferential allotment,
issue of bonus shares and a healthier dividend pay-out ratio. We promise to continue all
endeavours while ensuring that the long-term interests of the shareholders are given the
utmost priority.
I take this opportunity to thank all shareholders for their unwavering commitment and
belief in the company and its management.
Suresh Gaggar
Chairman