Dear Shareholders,

I welcome you all to the 17th 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.

Let me begin on a high note by sharing with you that during the FY 2011-12 we have been rated by 'Asiamoney Brokers Poll' for the second consecutive year, amongst the top three brokerage houses in India for small cap research. Also, our Agri-input & Chemicals analyst was awarded third rank in the Agri Sector for year 2012 by 'Institutional Investors Awards' and Consumer Analyst as the second best FMCG sector analyst by 'The Wall Street Journal's Asia's Best Analysts Award'.

Economic & Industrial Overview:

This year, your Company reported a consolidated profit of Rs. 1.07 crore and a standalone loss of Rs. 77 lac. Our income for the year 2011-12 stood at Rs. 9024.55 lac compared to the previous year's income of Rs. 11476.46 lac.

Domestic equity markets continued to be tepid delivering poor to negative returns. Domestic policy inaction, high interest rates, stubborn inflation compounded by global uncertainties has resulted in pathetic domestic interest in equity markets as can be seen in stagnant Equity AUMs with domestic MFs, marginal growth of 5% in new demat accounts and dwindling volumes on the stock exchanges. Here again though overall equity market volumes increased by 5% in FY11-12, the high yielding Cash and Futures volumes declined and the low yielding options volumes increased with the result that the overall broking commission pool declined by 20%. This has resulted in blended yields declining and the same has been happening for the last 3 years. Commodity exchange volumes have shown a robust trend and have risen by 49% for the current year. Precious metals account for 56% of the overall volumes with energy and base metals contributing 16% each. Exchange volumes are expected to rise exponentially once regulatory approval for option trading is received.

Currency trading has been a relatively newer entrant in the Indian Financial Services space. Over the last 3 years products like USD-INR, GBP-INR, EUR-INR, JPY-INR and options on USD-INR have been introduced. This segment has picked up but still has a long way to go. Under penetration of equities, commodities amongst Indian Investors augurs well for the long term health of the broking Industry. However the sluggish growth of the last few years, subdued outlook for the immediate future and excess capacity in the industry has resulted in weak financial performances by almost all brokerage houses. All have attempted to enhance their revenues by other non broking products like investment banking, wealth management, capital market funding, debt syndication etc but still have not been able to successfully arrest the decline in revenues. This consolidation phase in the broking industry will last longer than expected.

Subsidiaries:

Let me also update you on the business conducted by our wholly owned subsidiaries in FY 2011-12:

• Emkay Commotrade Limited, which focuses on the commodity business, witnessed a 64% increase in its gross revenue from Rs. 9.36 crore to Rs. 15.29 crore and registered a loss of Rs. 95.17 lac vis-à-vis a profit of Rs. 160.31 lac in the previous year.

• Emkay Fincap Limited which is a NBFC company in the group, registered a Profit after Tax of Rs. 238 lac compared to a PAT of Rs. 193.31 lac in the previous year.

• Emkay Insurance Brokers Ltd. made a remarkable come back with a Profit after Tax of Rs. 5.25 lac vis-à-vis a loss of Rs. 44.14 lac in the previous year.

• Emkay Investment Managers Limited which had taken over the PMS segment of the Company, registered a Profit after Tax of Rs. 34.12 lac as compared to Rs. 45.35 lac in the previous year.

Human Resources:

Your Company aims to become a preferred employer in the industry and employs the best of people adhering to its motto “Your Success is our Success”. We strongly believe that motivated and qualified employees are a key to the success of a business. We partner our people in realizing their personal goals and in giving wings to the dreams of their lives. We ensures a healthy, stable and professional working environment, where all employees are afforded opportunities to enhance their skills and move up a sound career path by providing them the tools needed to reach their full potential, hone their skills and develop new ones through training programs and continuous mentoring.

We have a well drawn recruitment policy and a performance-based compensation policy including 'Employee Stock Option Plans', which enable the employees to develop a sense of ownership towards the organization. During the year we have granted 2,92,000 options under various schemes under ESOP. The employee strength of the company as on 31st March, 2012 was 550.

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, the Company has set very high standards of Corporate Governance.

Acknowledgements:

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.