Dear Shareholders,

I welcome you all to the 19th Annual General Meeting of your Company, Emkay Global Financial Services Limited.

The Annual Report, including the Audited Accounts of the Company has been with you, and with your consent, I shall take it as read.

During the year 2012-13, your Company reported consolidated revenue of Rs. 9992.15 lac as compared to the previous year’s consolidated revenue of Rs. 11409.30 lac. This resulted in a consolidated loss of Rs. 1477.90 lac vis-à-vis a consolidated profit of Rs. 106.81 lac in FY 2011-12.

In the first quarter of the current fiscal, your Company has reported consolidated revenue of Rs. 2244.44 lac against Rs. 2479.18 lac in Q1 FY12-13. This has resulted in a consolidated loss of Rs. 170.18 lac, against a consolidated loss of Rs. 213.76 lac in the corresponding quarter of last fiscal.

Economic & Industrial Overview:

In Financial Year 2012-13 global growth was tepid and persistent fiscal and financial risks challenged domestic growth prospects. Amidst a continuing weak global backdrop, the Indian economy faced major headwinds. Post the stimulus led growth seen in FY10 and FY11, moderation in growth momentum was seen in FY12 which further got accentuated in the year gone by. India’s growth is currently expected at sub-5%, vis-à-vis the 9% trend growth seen pre-crisis.

FY13 GDP (5%YoY growth) witnessed deceleration in investments as well as the consumption sentiment. Substantial slowdown in the industries and services segments pulled down the overall GDP growth. Persistent food inflation and high fuel inflation tracking several price hikes remained major concerns. Despite inflation remaining beyond RBI’s comfort level, lower growth led to the RBI easing repo rates by around 100bps to 7.5% in FY13. The year witnessed actions to address the elevated twin deficits. While these attracted capital flows and funded the current account, the Rupee remained under pressure. The policy juggled between spurring growth and curbing the CAD and price pressures.

The Sensex posted a modest 8% return during the financial year. Even though there was an inflow of $25.8 billion of FII capital during the year, stock indices hit a roadblock at the upper levels on continuous selling by domestic investors. The fourth quarter of FY13 was marked by FIIs investing a net of Rs. 54751 crore in Indian markets. FII ownership of the Indian stock market (top 500 companies) hit an all time high of 21.2%, climbing sharply (128 basis points) in the March quarter.

The business environment continues to remain challenging with a volatile currency, reducing FII interest, rising interest rates and poor industrial growth. SEBI’s cap on Mutual Fund commission rates has substantially impacted income from domestic institutional broking. RBI limits on currency open interest have impacted revenue from the currency segment. The ongoing controversy in the NSEL segment may impact revenues and investor confidence. To summarize, the coming twelve months are expected to be testing.


Let me also update you on the business conducted by our wholly owned subsidiaries in FY13:

  • Emkay Commotrade Limited, which focuses on the commodity business, witnessed a decrease in its gross revenue from Rs. 15.29 crore to Rs. 12.94 crore and registered a loss of Rs. 387.27 lac vis-à-vis a loss of Rs. 95.17 lac in the previous year.
  • Emkay Fincap Limited which is a NBFC company in the group, registered a Loss after Tax of Rs. 188.80 lac compared to a PAT of Rs. 238 lac in the previous year.
  • Emkay Insurance Brokers Ltd. which is a Direct Broking company registered with IRDA in the group, registered a Loss after Tax of Rs. 126 lac compared to a PAT of Rs. 5 lac in the previous year.
  • Emkay Investment Managers Limited which focuses on the Portfolio Management Services in the Group, registered a Profit after Tax of Rs. 12 lac vis-à-vis Rs. 34.12 lac in the previous year.

Human Resources:

Your Company firmly believes that human resource is the capital on which our business is built and it is an asset that enables us to reap rich dividends. Your Company is determined to make work an enjoyable experience for employees by providing a right balance between fun and work. To promote employee bonding and a sense of belonging and pride in working for the organization, Emkay organized multi-faceted events including Yoga Workshops, Nutritionist Counseling Camp, Blood Donation Camp, Stress Management workshop, Independence Day, Women’s Day and Holi Celebrations. To enable and augment easy learning, a tie-up with Librarywala was initiated, which received tremendous response from the employees.

The year was also packed with training programs and refresher courses aimed at skill and ability development of employees. Programs were customized across departments, right from the back office operations teams to the top management.

In order to have a fully integrated Human Resource Management System which covers all HR processes and operations and at the same time includes compensation related data, Emkay migrated to a new platform - 'Oriana' HRMS during the year.

Corporate Governance:

Your Company is a loyal adherent to the principles of Corporate Governance and considers it as an ethical requisite than a regulatory issue and believes that the best results are achieved with the highest standards of Corporate Governance. Accordingly, theCcompany has set very high standards of Corporate Governance.


I would like to take this opportunity to thank the Members of the Board for their valuable guidance, support and prudent counsel. My colleagues on the Board and I place on record our appreciation for the continued support and guidance received from the Government of India, the SEBI, the Stock Exchanges as also other regulatory authorities and banks.

We also place on record our appreciation for the unwavering trust and support of our shareholders, customers and our employees.

Thank You