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Letter from the CEO
It was another year that was characterized by an environment not conducive to the capital market. Challenges of global economic turmoil, inflation, high interest rates all contributed to the volatility and softness in the market. It was also instrumental in keeping the retail investor at bay. A further shift towards the derivatives segment put additional pressures on the Company's margins.
The current outlook looks a mixed bag. Inflationary pressures seem to have eased a bit, which would have shown some reduction in the interest rates. However, the current announcement of the Federal Reserve to scale down its stimulus program has created a turmoil in the financial markets. The rupee has weakened significantly against the US dollar and markets also reacted on cue. Gold prices moved south which created an appetite for investment, but at the cost of capital market investment.
One of the significant events in the future is the General Elections, and historically these have had a significant impact on the Capital Market in India. The markets will wait with baited breath on the outcome of these elections, which will determine the policy initiatives that may spur a revival in the Capital Markets.
Your Company too will wait and watch for these developments to pan out. To combat the pressures on margins your Company has aggressively ventured into the Retail Non Discretionary Wealth Management segment, by leveraging on it's existing network of clients. This coupled with a judicial control on costs has enabled your Company to post handsome profits in the fiscal year 2012–13 as opposed to a loss in the previous year. Continuing it's maxim of rewarding shareholders, your Company has declared 3 interim dividends of Rs. 1/– each on a face value of Rs. 2/– each for the fiscal year 2012–13.
I take this opportunity to thank all the shareholders and employees for reposing their faith in the Company in these times of uncertainty.