GEOJIT PEOPLE YOU PROSPER WITH 21.08.2017 To, To, The Manager, The Manager, Listing Department, listing Department, National Stock Exchange of India Ltd, The BSE limited, Exchange Plaza,C-1, Block-G, Phiroze Jeejeebhoy Towers Bandra-Kurla Complex, Dalal Street, Bandra (E), Mumbai - 400 051, Mumbai - 400 001, Ph: No:022-26598100 Ph No: 022-22721233 Scrip Code: GEOJITFSL - EQ Scrip Code: 532285 DearSir/Madam, Sub: Annual Report for the year 2017-18 Please find enclosed herewith the Annual Report of the Company for the year 2017-18 as required under Regulation 34 of SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015. Further, a copy of the 24th Annual Report of the Company for the financial year 2017-18 is also available on our website at 'www.geojit.com/investors'. This is for your information and record. Thanking you, Yours faithfully, For Geojit Financial Services Ltd .. Liju K Johnson Company Secretary .. L d ,................... known as Geojit BNP Paribas Financial Setviœs Ltd), Regìstered Offìce: 34/659-P, Cìv11.~ne Road, P~~~ttom'. Geojit FlllélllCialServt<:eS t ,....,,.,.,,..,, . .ìt. F investor que,íes: QJStomercare@geoíilcom. For g,..,.ances: Kod,H;82024, Kerala. India. Phone: '"91 484·290~-:w: eo::tec:'°dentity Ni.611ber. L67120Kl.1994PLC008403, SEBI Regn _Nos. gñe'llances@9eoiiteom. For compi"=~ INA200002817 Portfolio Manager INP000003203, Stock Broker lNZ000104737 Depository Research Entity INH200000345. I ' r-~ìte)No: CA0226. · Partlapant IN·OP.325-2017, ARN RegnNos."()()98,IROACorporate Agent(....,.,.....,, · What’s in this Report A transparent, 02 digitally-driven and client-centric organisation Key Performance Indica- 06 Company tors Overview Chairman’s Message 08 MD’s Message 12 Sustainable Business Model 14 Digital Leadership 16 Customer Service Strat- egy 18 A Responsible Company 20 Management and Lead- 21 ership Corporate Information 22 Management Discussion and Analysis 23 Directors’ Report 31 Statutory Re- ports Standalone Financial Statements 67 View our Annual Report and Accounts and Consolidated Financial other information about Geojit Financial 104 Statements Services Limited on www.geojit.com Financial Statements Cautionary Statement Regarding Forward-Looking Statement Statements in this Annual Report describing the Company’s objectives, projections, estimates and expectations may be ‘forward- looking statements’ within the meaning of applicable laws and regulations. Actual results might differ materially from those in such forward-looking statements. Important developments that could affect the Company’s operations include a downtrend in the infrastructure sector, significant changes in political and economic environment in India or key financial markets abroad, tax laws, litigation, exchange rate fluctuations, interest and other costs. Our strong performance in FY 2017-18 manifests the growing success of our business strategy. We encouraged investments in annuity-based products, which are proven, stable and less vulnerable to market vagaries to de-risk our clients. We empowered clients with more research, digital technologies and financial planning tools. And these, we did, with one common goal: protect and grow investors wealth. The result: 41% Growth in total MF AUM 89,750+ 158 basis points Customers added Growth in PAT margin 1.9x 92% Growth in SIP book Growth in financial products income This profitable growth with addition of new customers and shift towards annuity-based income, having better margins, reinforces our conviction of being on the right path. With positive macro developments, evolving customer preference towards MF/SIP products and our recent re-entry into the commodities business, our prospects for a better future are stronger than ever. F&O – Futures & Options, SIP – Systematic Investment Plan, MF – Mutual Fund, AUM – Asset under Management A transparent, digitally-driven and client-centric organization Geojit Financial Services Limited (Geojit) is a leading investment services company with strong presence in India and Middle East. We have a track-record of consistently protecting and We offer a wide range of value-added products building investors wealth and undertaking pioneering and services in equities, derivatives, mutual funds, initiatives to redefine investing culture. online financial planning, portfolio management and investment advisory. 934,000 Customers ` 38,620 Crore `2,167 Crore Assets under Custody & Management Market Capitalization 2,836 326,000 Employees Total SIP count ` 165 Crore 512 SIP and STP book Offices *All numbers are pertaining to 31st March, 2018 2 Geojit Financial Services Limited Annual Report 2017-18 Corporate Overview Corporate Our global presence India: 19 States and 2 Union Territories Andhra Pradesh, Goa, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, New Delhi, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand, Jharkhand, Telangana and West Bengal, ReportsStatutory Financial Statements Puducherry and Chandigarh. Middle East: 5 countries Saudi Arabia (Riyadh, Dammam), United Arab Emirates (Dubai, Abu Dhabi, Al Ain, Sharjah), Oman (Muscat), Kuwait, Bahrain. Map not to Scale Strategic partnerships Marquee stakeholders We have entered into strategic B2B partnerships đ BNP Paribas S.A. with Federal Bank, Oriental Bank of Commerce, đ Mr. C. J. George, Founder and Managing Director South Indian Bank, Corporation Bank, Shamrao đ Kerala State Industrial Development Corporation Vithal Cooperative Bank, Andhra Bank and Catholic Limited (KSIDC) Syrian Bank. This allows us to open integrated 3-in-1 accounts for clients. đ Mr. Rakesh Jhunjhunwala 3 Our reputation We have the distinction of various firsts as a stock broking company: Internet trading in 2000 Domestic retail operations in a foreign country in 2001 Integrated internet trading system for Commodity trading in rubber cash and derivative segments in 2002 futures in 2003 Cardamom futures in 2004 Exclusive branches for women in 2005 (first in the world) Trading through mobile phones in 2010 Geojit has never reported operational loss since inception 4 Geojit Financial Services Limited Annual Report 2017-18 Corporate Overview Corporate Awards and accolades Statutory ReportsStatutory Financial Statements Mr. Satish Menon, Executive-Director receiving the Mr. A. P. Kurian, Chairman and Non-Executive Stock Broking Company of the Year award at the Independent Director receiving the Lifetime Dhanam Banking, Finance and Investment Summit and Achievement Award at the Dhanam Banking, Finance Award Nite 2018 and Investment Summit and Award Nite 2018 Won NSDL awards for fifth time in a row across UTI Mutual Fund in association with CNBC-TV18 three categories at the 32nd DP Conference and held its ninth edition of Financial Advisor Awards NSDL Star Performer Awards-2017. Awards won for 2017-18 recently in Mumbai and Barjeel Geojit won excellent performance in the South Region included: the Best Performing National Advisor Award from o Top Performer New Accounts Opened UTI CNBC-TV18 for the 8th consecutive year. (Non-Bank Category) – 1st Position o Top Performer in Active Accounts (Top DPs) o Leader in Go Green Initiative – 2nd Position 5 Key Performance Indicators Growth in key performance indicators in FY 2017-18 vs FY 2016-17 Revenue EBITDA 20% 25% Asset under PAT Management 31% 41% Product-wise operational revenues Software Other income ` 13.62 Crore ` 17.28 Crore 4.1% 5.2% Financial product income ` 43.45 Crore 13% Equity and equity-related ` 259.84 Crore 77.8% 6 Geojit Financial Services Limited Annual Report 2017-18 Corporate Overview Corporate Revenues (` lakhs) Profit after Tax (` lakhs) 7,736 7,324 36,795 5,602 32,638 3,761 30,576 27,196 Statutory ReportsStatutory Financial Statements 2014-15 2015-16 2016-17 2017-18 2014-15 2015-16 2016-17 2017-18 Net Worth (` lakhs) Return on Equity 17% 14% 55,739 51,202 11% 8% 49,005 46,834 2014-15 2015-16 2016-17 2017-18 2014-15 2015-16 2016-17 2017-18 Asset under Holding and Management Earnings Per Share (`) (` lakhs) 3.37 3.09 2.38 1.61 3,862,000 3,237,561 2,337,664 2,229,250 2014-15 2015-16 2016-17 2017-18 2014-15 2015-16 2016-17 2017-18 7 Chairman’s Message Dear Shareholders, It is my honor and privilege to present before you the 24th annual report of the Company. Making the markets available to more and more Indians, is the driving force of Geojit. Our aim is not just about giving people access to the markets. It’s about helping them to understand the markets better, and enabling them to make confident decisions that add greater value to their financial matters. It is this focus on customer-centricity that has helped us deliver spectacular results, making 2017 an exceptional year for the Company, its shareholders and clients. Almost a decade since the financial crisis which sparked global economic decline, 2017 saw the global growth come back with a bang. Global stock markets roared ahead, with the MSCI index of stock markets in 47 countries up by 22%. Progress of Brexit talks, Trump tax cuts, fears of war in North Korea, upheaval in Europe and bitcoin bubble failed to dampen the spirits. 2017 was also a spectacular year for emerging markets, and India was a huge beneficiary of this trend. Indian markets have rallied to be one of the top performing ones in the world. India’s benchmark S&P BSE Sensex earned 35% return in dollar terms in 2017, its best since 2009. The reasons were mainly - easy availability of money globally, burgeoning domestic flows, improving economic fundamentals, the Government’s strong resolve and momentum in implementing structural Indian markets have rallied to be one of the reforms, signs of a reversal in corporate earnings and top performing ones in the world. consumer-driven credit growth. The year 2017 will also be remembered for the implementation of GST, Insolvency and Bankruptcy Code, and announcement of bank recapitalization. Mutual Fund Assets under Management nearly It also witnessed significant steps being taken doubled in three years’ time to over ` 21 lakh towards the resolution of problems associated with crores as on March 2018.