Dear Shareholders,

I welcome you all to the 20th 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 2013-14, your Company reported consolidated revenue of Rs. 8609.38 lac as compared to the previous year's consolidated revenue of Rs. 9992.14 lac. This resulted in a consolidated loss of Rs. 394.77 lac vis--vis a consolidated loss of Rs. 1477.90 lac in FY 2012-13.

In the first quarter of the current fiscal, your Company has reported consolidated revenue of Rs. 2811.99 lac against Rs.2148.70 lac in Q1 FY13-14. This has resulted in a consolidated profit of Rs. 377.25 lac, against a consolidated loss of Rs. 170.18 lac in the corresponding quarter of last fiscal.

Economic & Industrial Overview:

The Financial Year 2013-14 continued to mark challenging times for the Indian economy, with the overall macroeconomic context being dominated by slow growth, contraction in industrial production, high and persistent inflation, significant INR depreciation, high structural current account deficit, vulnerable external balances and poor fiscal management. The advent of the reversal of quantitative easing globally, specifically the Fed tapering, led to substantial pressure on the emerging economies' macro equations, including those for India.

While the improving global sentiment remained an imperative determinant of domestic prospects, India's growth continued to remain a drag with full year FY14 GDP at 4.7% following the muted 4.5% growth noted in FY13.

At the industry level too, the going remained tough despite the pick-up in trading volumes in the latter half of the year. The rupee volatility, current account deficit, fiscal deficit, persistent inflation along with perceived delays in policy formulation together contributed to erosion in investor confidence in the Indian capital market for a major part of the year. However, perception of improvement in major macro-economic indicators buttressed expectations of the economy bottoming out and led to an improvement in the global risk perception of India in the later part of the last fiscal. In anticipation of a stable national government post elections in May 2014, the Q4FY14 FII inflows of USD 9.4 billion infused optimism in an otherwise lackluster year for the Indian capital markets. Not only did the benchmark indices scale newer highs in March 2014 and continued their upward march in April 2014, even broader based mid-cap indices displayed a significant uptick in Q4FY14.

The Indian macro factors seem favourable for the coming years, with improving domestic economy, peak of the rate hike cycle, falling inflation, crude and commodity prices and improving US economy. Global liquidity will continue to flow to high-growth potential Indian capital market given its most attractive historical return. GDP growth seems to have bottomed out and is likely to recover to the mean rate of 7-8% in next two-three years. The twin deficits have been contained and the next investment boom seems to be on its way.


Let me also update you on the business conducted by our wholly owned subsidiaries in FY14:

  • Emkay Commotrade Limited, which focuses on the commodity business, witnessed a decrease in its gross revenue from Rs. 12.94 crore to Rs. 8.13crore and registered a loss of Rs. 153.85 lac vis--vis a loss of Rs. 387.27 lac in the previous year.
  • Emkay Fincap Limited which is a NBFC company in the group, registered a PAT of Rs. 240.44 lac compared to a Loss after tax of Rs. 188.80 lac in the previous year.
  • Emkay Insurance Brokers Ltd. which is a Direct Broking company registered with IRDA in the group, registered a Profit after Tax of Rs. 9.44 lac compared to a loss after tax of Rs. 126 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.30.33 lac vis--vis Rs. 11.98 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 Emkay Master-Chef, Tree Plantation Drive, Independence Day Celebrations, Photography workshop, Baking Sesssion, among others.

More than 50 training workshops across the various verticals, covering more than 600 man-days of training of employees across all locations were organized. Programs were customized for various departments depending upon their requirement. For the Institutional, Private Wealth Management, Insurance and Commodities team, training workshops on Leadership and Powerful Impact, Advanced Derivative Trading, NISM, Time Management and training on Bloomberg, Options and Technical Analysis were organised. To hone the skills of the back office operations team, training on Advanced Excel and Process Improvement were held.

At the same time, your Company got many HR processes streamlined, one day induction programs introduced, Individual feedback and counseling taken up, and improvement of competency mapping processes initiated.

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.


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