Capital Trade Links Ltd Management Discussions.

Overview of Indian Economy

India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10-15 years. Backed by its strong democracy and partnerships, Indias GDP increased to 6.5 per cent in 2017-18 and is expected to achieve similar growth rate in the coming years.

Market size

Indias gross domestic product (GDP) grew by 6.3 per cent in July-September 2017 quarter. Corporate earnings in India are expected to grow by over 20 per cent in the FY 2017-18 supported by normalisation of profits, especially in sectors like automobiles and banks.

The tax collection figures between April-June 2017 quarter show an increase in the net indirect taxes by 30.8 per cent and an increase in the net direct taxes by 24.79 per cent year-on-year, indicating a steady trend of healthy growth. The total number of e-filed income tax returns rose 21 per cent year-on-year to 42.1 million in 2016-17 (till 28.02.17), whereas the number of e-returns processed during the same period stood at 43 million.

India has retained its position as the third largest startup base in the world with over 4,750 technology startups, with about 1,400 new start-ups being founded in 2016.

Indias labour force is expected to touch 160-170 million by 2020, based on the rate of population growth, increased labour force participation, and higher education enrolment are common among other factors.

Indias foreign exchange reserves were US$ 404.92 billion in the week up to December 22, 2017.

Recent Developments

With the improvement in the economic scenario, there have been various investments in various sectors of the economy. The M&A activity in India increased 53.3 per cent to US$ 77.6 billion in 2017 while private equity (PE) deals reached US$ 24.4 billion. Some of the important recent developments in Indian economy are as follows:

Indian companies raised Rs 1.6 trillion (US$ 24.96 billion) through the primary market in 2017.

Moodys upgraded Indias sovereign rating afler 14 years to Baa2 with a stable economic outlook. India received net investments of US$ 17.412 million from FIIs between April-October 2017.

The top 100 companies in India are leading in the world in terms of disclosing their spending on Corporate Social Responsibility (CSR). The bank re-capitalisation plan by Government of India is expected to push credit growth in the country to 15 per cent.

India has improved its ranking in the World Banks Doing Business Report by 30 spots over its 2017 ranking and is ranked 100 among 190 countries in the 2018 edition of the report. Indias ranking in the world has improved to 126 in terms of its per capita GDP, based on purchasing power parity (PPP) as it increased to US$ 7,170 in 2017.

The Government of India has saved US$ 10 billion in subsidies through direct benefit transfers with the use of technology, Aadhaar and bank accounts.

India is expected to have 100,000 startups by 2025, which will create employment for 3.25 million people and US$ 500 billion in value. The total projected expenditure of Union Budget 2018-19 is Rs 23.4 lakh crore (US$ 371.81 billion), 9 per cent higher than the previous years budget, as laid out in the Medium Term Expenditure Framework


India received the highest ever inflow of equity in the form of foreign direct investments (FDI) worth US$ 43.4 billion in 2016-17 and has become one of the most open global economies by ushering in liberalisation measures.

The World Bank has stated that private investments in India are expected to grow by 8.8 per cent in the FY 2018-19 to overtake private consumption growth of 7.4 per cent and thereby drive the growth of Indias gross domestic product (GDP) in FY 2018-19.

The NITI Aayog has predicted that rapid adoption of green mobility solutions like public transport, electric vehicles and car-pooling could likely help India save around Rs 3.9 trillion (US$ 60 billion) in 2030.

The Union Cabinet, Government of India, approved the Central Goods and Services Tax (CGST),Integrated GST (IGST), Union Territory GST (UTGST), and Compensation Bill.

Indian merchandise exports in dollar terms registered a growth of 30.55 per cent year-on-year in November 2017 at US$26.19 billion.

Government Initiatives

Indias unemployment rate has declined to 4.8 per cent in February 2017 compared to 9.5 per cent in August 2016, as a result of the governments increased focus towards rural jobs and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. Mr. Narendra Modi, Prime Minister of India, has launched the Make in India initiative with an aim to boost the manufacturing sector of Indian economy, to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. The Government of India, under the Make in India initiative, is trying to boost the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 per cent. Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy.

Some of the recent initiatives and developments undertaken by the government are listed below:

The Government of India has decided to invest Rs 2.11 trillion (US$ 32.9 billion) to recapitalise public sector banks over the next two The mid-term review of Indias Foreign Trade Policy (FTP) 2015-20 has been released by Ministry of Commerce & Industry, Government of India, under which annual incentives for labour intensive MSME sectors have been increased by 2 per cent.

The fiscal deficit of the Government of India, which was 4.5 per cent of the gross domestic product (GDP) in 2013-14, has steadily reduced to 3.5 per cent in 2016-17 and is expected to further decrease to 3.2 per cent of the GDP in 2017-18.

Indias revenue receipts are estimated to touch Rs 28-30 trillion (US$ 436- 467 billion) by 2019, owing to Government of Indias measures to strengthen infrastructure and reforms like demonetisation and Goods and Services Tax (GST).

Road Ahead

Indias gross domestic product (GDP) is expected to reach US$ 6 trillion by FY27 and achieve upper-middle income status on the back of digitisation, globalisation, favourable demographics, and reforms.

India is expected to be the third largest consumer economy as its consumption may triple to US$ 4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern and is estimated to surpass USA to become the second largest economy in terms of purchasing power parity (PPP) by the year 2040.

Industry overview

NBFCs continued to grow their share in the financial services industry. Data published by the RBI in its Financial Stability Reports dated 30 June 2017 and 21 December 2017 show that the NBFCs have outperformed scheduled commercial banks (SCBs) on growth in advances, asset quality and profitability. This growth momentum of NBFCs should result in their share in the financial services sector increasing in the near future


CAPITAL TRADE LINKS LIMITED is one of the growing NBFCs in the country and offers a wide range of financial services to many sectors. The company started its working in year 1984 and got listed at Delhi Stock Exchange Limited in 1985. Further, the company is a non deposit accepting Non Banking Financial Company registered with Reserve Bank of India and obtained certificate of registration no. B-14.02516 dated 19.11.2001.

The Company is principally engaged in the business of advancing loans and financing. The Company offers credit facilities to individuals and business clients in low, medium and high range. The Company offers business loans, loans against property and fulfills working capital requirement, among others, of its individual, partnership firms, entrepreneurs, body corporate/business clients and other legal entities. The Company offers various products and services, which include venture capital, equity financing, personal loan and secured loan. The Company also provides advisory services to its investees. The Company generates funds from market financial resources. But to grow the business, the Company proposes to raise credit facility from the bank.

The money is advanced for both personal and commercial purpose. Instead of borrowing funds from bank, we generate funds from market financial resources. The company has established its own standards and norms for evaluating different needs of its clients and always provides suitable payment option considering no harm to its customers.

The Company has proper procedures from identification of borrower, due diligence, verification & assessment of borrowers income to ensure timely repayment.

The Borrower has to give Guarantee along with PDCs. The Agent also stands as guarantor and the commission to agent is paid after recovery of loan fully.

Outlook and opportunities

The NBFC sector, being a catalyst of the economic development in the country, has lately been receiving its due importance backed by positive policies and initiatives by the government and the RBI. Besides, strengthening economy, favourable economic policies, improving ease of doing business in India, low interest rates and inflation, rising infrastructure spending, forecasts of good monsoon leading to rising rural demand are all expected to boost business activity and credit demand. The credit and geographic limitations of the banks would make the role of NBFCs even more important in the coming years.

The various demand drivers for the NBFC sector include:

The e-commerce industry provides enough scope for the SMEs to enhance their business. In 2015, nearly 43% of SMEs participated in online sales. The rapidly growing e-commerce, expected to grow six times from the current level to USD 130-140 bn by 2020, is likely to enhance participation from SMEs leading to rise in their credit requirement

Large scale housing and urbanization projects by the government 100 smart cities to be built over 5 years at an investment of USD 7-8 bn, 20 million houses to be constructed under ‘Housing for All by 2022 and developing 500 cities under the AMRUT development scheme

Massive expected investments of USD 600 bn over the next five years towards infrastructure development

Digital India initiative to enable investments worth USD 68 billion and create 1.8 million jobs. Over 1 million MSMEs are expected to resort to digital platform over the next five years

Low credit penetration of 25% in the SME sector leading to financing gap of USD 40 billion. Moreover, over 40% of the financing to SMEs is currently done through informal sources or self-finance leading to a huge latent demand from these sectors The rising frauds and increasing level of non-performing assets have resulted in banks declining its risk appetite and put a check in its credit activities

Digital trend to provide disruptive opportunities for innovation and partnerships

Demand from geographic areas and customer segments that traditional banks do not cater to Threats The policies and regulations of the Company are separable to changes. The State and legislation laws may regulate from time to time the lending and deposit policies of the Banks and NBFCs e.g. Andhra Pradesh Microfinance Institution Laws 2011

Natural calamities like flood, drought, earthquake The business and the credit risk of the proposed bank can be affected by local conditions, natural calamities and others.

Credit Risk Management

CTL has established detailed procedures and policies for underwriting across various product categories, based on the credit profile of the customer. The Company underwrites loans on the basis of assessed cash flow capabilities of customers as well as LTV norms and Credit scoring. While it does lay emphasis on regular credit bureau inputs and detailed credit analysis processes, it considers various other factors too.

Changes in policies towards NBFC:

There is a growing trend towards more stringent yet structurally beneficial regulation in the NBFC sector. Anticipating such regulations and implementing good governance norms before they are mandated has been a constant practice at CTL. Accordingly, the Company stands to benefit by policy notifications.


As there are no subsidiaries of the Company, investment made in subsidiaries is NIL.


Your Companys belief in trust, transparency and teamwork improved employee productivity at all levels. The Companys continues to lay emphasis on people and relations with the employees and continued to be cordial. It is your Companys belief that people are at the heart of corporate purpose and constitute the primary source of sustainable competitive advantage.


The Companys internal control systems are commensurate with the nature of its business and the size and complexities of its operations. These systems are designed to ensure that all assets of the Company are safeguarded and protected against any loss and that all transactions are properly authorized, recorded and reported. The well-defined delegation of power with authority limits for approving revenue as well as expenditure is internal control management technique. The Company has further strengthened its internal audit function for effective controls. The Audit Committee of the Board of Directors reviews the adequate control systems and audit reports submitted by the internal auditors.


Statement in this Management Discussion and analysis describing the Companys objective, projects, estimates and expectations may be forward looking statement within the meaning of applicable laws and regulations. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. Several factors could make a significant difference to the Companys operations. These include economic conditions, Government regulations and Tax Laws, Political situation, natural calamities etc. over which the Company does not have any direct control.



Our Audit Committee was constituted to have proper checks and balances on the various financial activities of the Company and to guide as well as assist the Board in various matters of the utmost importance. The Committee has its Charter for functioning. The primary objective of the Committee is to monitor and provide effective supervision of the Managements financial reporting process, to ensure accurate and timely disclosures, with the highest levels of transparency, integrity and quality of financial reporting.

The Committee met Four times during the Financial Year 20117-18 on 29th May, 2017, 12th August, 2017, 14th November 2017 and 14th February 2018. As on the date of this report, the Committee is comprised of:

S. No. Names Designation
1 Mr. Amar Nath Non- Executive & Independent Chairman
2 Mr. Neeraj Garg Non -Executive Member
3 Mr. Neeraj Kumar Bajaj Non -Executive & Independent- Member


The primary objective of the Committee is to recommend suggestions to the Board of Directors pertaining to the Remuneration Policy for Directors, KMP and all other employees of the Company.

During the Financial Year 2017-18, the Committee met on 29th May, 2017 and 14th February, 2018. As on the date of this report, the Committee is comprised of:

S. No. Names Designation
1 Mr. Amar Nath Non- Executive & Independent Chairman
2 Mr. Neeraj Garg Non -Executive Member
3 Mr. Neeraj Kumar Bajaj Non -Executive & Independent- Member


Our Stakeholder Relationship Committee has its Charter for its functioning. The Committee members, personally looking forward the issues if any, related to the stakeholders. The primary objective of the Committee is to consider and resolve the grievances of Security Holders of the Company.

During the Financial Year 2017-18, the Committee met once on 25th July, 2017. As on the date of this report, the Committee is comprised of:

S. No. Names Designation
1 Mr. Amar Nath Non- Executive & Independent Chairman
2 Mr. Neeraj Garg Non -Executive Member
3 Mr. Neeraj Kumar Bajaj Non -Executive & Independent- Member


The Risk Management Committee is formed for the purpose of looking into the various risks affecting the smooth functioning of the Company. There are various factors including internal as well as external which may affect the stability of the Company. The Committee has adopted a Charter for its functioning. The primary objective of the Committee is to consider and resolve the grievances of Security Holders of the Company.

During the Financial Year 2017-18, the Committee met once on 29th May, 2017. As on the date of this report, the Committee is comprised of:

S. No. Names Designation
1 Mr. Amar Nath Non- Executive & Independent Chairman
2 Mr. Neeraj Garg Non -Executive Member
3 Mr. Neeraj Kumar Bajaj Non -Executive & Independent- Member

Independent Directors meeting

In compliance with Schedule IV to the Companies Act, 2013 and regulation 25 (3) of the SEBI Listing Regulations, 2015, the independent directors held their separate meeting on 14th February, 2018.

Without the attendance of non-independent directors and members of management, inter alia, they discuss the following:

i. Review the performance of non-independent directors and the board as a whole;

ii. Review the performance of the chairperson of the Company, taking into account the views of executive directors and non-executive directors;

iii. Assess the quality, quantity and timeliness of flow of information between the Company Management and the board that is necessary for the Board to effectively and reasonably perform their duties; and

iv. Review the responsibility of independent directors with regards to internal financial controls.


The Board has adopted various policies in the preceding years as per applicable Regulations. The list of policies are as under:-

? Interest Gradation and Risk Policy ? Whistle Blower Policy

? Code of Conduct for prevention of Insider Trading


The Company has not entered any transactions with the Directors and /or their relatives during the year under review that may have conflict with the interest of the Company at large.


The Company has laid down procedures to inform the Board of Directors about the Risk Management and its minimization procedures. The Audit Committee and Board of Directors review these procedures periodically.


The requirements of the Listing Agreements with the Stock Exchanges as well as regulations and guidelines of SEBI are being followed. During the year, the Board periodically reviewed legal compliance reports with respect to the various laws applicable to the Company, as prepared and placed before it by the Management.


The quarterly/half yearly results/annual results and official news releases of the Company are published in accordance with the listing Regulations in newspaper Pioneer (English) and Pioneer (Hindi). Quarterly and annual financial statements, along with shareholding pattern are also posted on the website under the caption Investors Relations on home page.


CIN of the Company, allotted by the Ministry of Corporate Affairs, Government of India is:



The Company is an NBFC Company and is having the NBFC registration certificate from the Reserve Bank of India, and is complying with the formalities, which are required to be completed in this respect.


The financial statements are prepared in compliance with the requirement of the Companies Act and the Accounting Standards prescribed by the Institute of Chartered Accountants of India and generally accepted accounting principles in India.


For any assistance in respect of status of dematerialization of shares, transfer, transmission, issue of duplicate share certificates, change of address, non- receipt of Annual Reports etc. investors are requested to write to:

MAS Services Limited (Unit: Capital Trade Links Limited)

T-34 2nd Floor,

Okhla Industrial Area, Phase-II New Delhi-110020 Tel nos. 011-26387281/26387282 Fax No. 011-26387384 Email:


Information pursuant to the Companies (Accounts) Rules, 2014.

i. Conservation of Energy

The operations of your Company do not consume high levels of energy. Adequate measures have been taken to conserve by using energy, efficient computers and equipment.

ii. Technology Absorption

1. Specific areas in which R & D carried out are as follows:

a. review of the existing courses and evaluation of feasibility of the new courses to be launched and estimating the costing thereof.

b. Providing technical support on existing products.

2. Benefits derived as a result of the above R & D

As a result the organization is being able to implement current courses.

3. Expenditure on R & D : NIL

iii. Foreign Exchange Earnings & Outgo Technology Absorption

1. Earnings in Foreign Exchange during the year NIL
2. Foreign Exchange outgo during the year NIL


By Order and on behalf of the board
Place: Delhi Vinay Kumar Chawla
Dated: 30.05.2018 Whole Time Director