It is my privilege to present you the Silver Jubilee Annual Report of
Ajcon Global Services Ltd. We have come a long way during these 25
years overcoming several hurdles and sailing through the ups & downs of
the vagaries of financial markets. Financial Year 2012 was a
challenging year for the economy on account of global factors like Euro
Debt crisis and high oil prices. Domestically, high inflation and high
interest rates posed a challenge to growth. The stress on the economy
was evident by Bank''s Net Non Performing Assets (NPA) numbers. At the
aggregate level, NPAs of banks rose by 53.5 per cent during the quarter
ended March 2012, from about Rs 39,200 crore at the end of March 2011 to
slightly over Rs 60,100 crore at the end of March 2012.
Domestically, GDP numbers were disappointing. For FY12, GDP growth
dropped to 6.5 per cent versus a robust 8.4 percent in FY11. Q4 FY12
GDP was expected at around 6.1 percent on a quarter-on-quarter (QoQ)
basis, and on a year-on-year (YoY) basis, at 7.8 percent. However, on
actual basis, the numbers were bad. Reported GDP growth in Q4FY12 was
5.3 percent, as against 7.8 percent in Q4FY11. This is first time GDP
has fallen to 5.3 percent level since 2003, hitting a nine year low.
According to the figures released by the government, the FY12 revenue
gap stood at Rs 3.847 lakh crore versus Rs 3.949 lakh crore in the
previous year. The FY12 fiscal deficit was at 5.8 per cent of the GDP
as against the budget aim of 5.9 per cent.
While inflation has moderated to some extent, risks to inflation cannot
be ruled out and continues to be high. Large government borrowings may
crowd out credit private sector. Wider Current account deficit, higher
international crude prices along with fiscal slippages may affect
growth. We believe concerns over Greece are taking a toll on the global
sentiments. A situation of mild recession in the Euro zone can be
sensed about what is happening in the debt affected economies. While
things are improving in US which are evident from the recent employment
data, China has emerged as a new concern.
However, your Company emerged as a true winner fighting against all
odds. The Company remained insulated from global events and domestic
factors owing to diversified revenue stream. The brokerage business of
the company did witness a slowdown but this was offset by a higher
contribution from the consultancy division. In addition, the company
acquired the Category I - Merchant Banking license from Securities
Exchange Board of India (SEBI), which the company had in 1997, after
which it had not renewed its license. With this fresh license
acquired, the company has signed a few mandates and good activities
would be witnessed under this division.
The topline of the Company increased to Rs 859.72 lacs and the Net
Profit after Tax stood at Rs 101.09 lacs, which were better than
previous year. Your Company has made a mark both in broking and
advisory business. Ajcon has become a brand to reckon with in the
At the end, I would like to take this opportunity to thank all of you
for your support. As our business evolves, sustainable & profitable
growth will remain a fundamental target and we will pursue it
aggressively while remaining true to our values.