Comfort Commotrade Ltd Management Discussions.


According to the International Monetary Fund (IMF), the Indian economy is one of the fastest growing major economies and is projected to grow at 7.3% in 2019 against 7.1% in 2018, whereas the projected global growth rate is 3.3% in 2019. The higher projection of IMF is in line with Indias estimated GDP growth of 6.8% in 2018-19 according to the Economic Survey 2018-19. The proximate factors responsible for the moderation in the growth rate from 7.2 % achieved in the preceding financial year are mainly declining growth of private consumption, tepid increase in fixed investment and muted exports. Monetary policy has attempted to provide a fillip to the growth impulse through rate cuts and easing of bank liquidity.

While the growth outlook for many developed and emerging economies continues to weaken amid unresolved trade tensions and elevated geo-economic and geo-political uncertainties, resilience of the Indian economy is evident from the growth number. Major multilateral agencies such as the World Bank, IMF and United Nations Development Programme (UNDP) remain optimistic about the vibrancy of the Indian economy.


Global financial markets are the barometers of the performance of the respective economies that is being served by them. 2018 was a challenging year for most asset classes in global financial markets. Global stocks fell by about 7% in 2018, volatility in asset prices increased. Stocks had been a major beneficiary of the regime of low interest rates and loose monetary policy environment pursued by central banks since the global financial crisis. Low interest rates also drove down the yield on other asset classes such as bonds. As interest rates started to rise and central banks began to tighten monetary policy, investor interest in stock began to decline towards the last quarter of year resulting in surrendering the gains in prices during the first three quarters of the year.


Global commodity markets witnessed sound, albeit differential, growth during 2018, despite the significant head winds from a strong dollar. Aggregate measures of commodity price movements, such as the Bloomberg Commodity Index (BCOM), displayed low volatility of 10% to 11% during 2017 and 2018. This was reflected in the traded volumes of commodity derivatives. According to data released by the Futures Industry Association (FIA), global commodity derivatives volume grew by 0.6% to 4.30 billion contracts in 2018, although the growth in different segments were different, reflective of the volatility trends. While agricultural commodity derivatives recorded the highest growth rate of 14%, volume in non-precious metals derivatives declined by 12% during 2018, whereas the volumes in energy and precious metals derivatives increased by 3% and 4% respectively.

The international prices of commodities remained volatile during the year. During 2018, prices of most energy, metal and mineral, and agricultural commodities declined in the last quarter of the year, only to rebound in the first quarter of 2019. By March 2019, more than half of all commodities (energy commodities being a major exception) had recouped their losses and returned to September 2018 levels. The weakness of energy, as well as, metal and mineral prices in late 2018, mainly reflected concerns about global growth, especially in China amid trade tensions. According to Futures Industry Association (FIA), global trading in derivatives showed significant regional dispersion. Trading activity in Asia-Pacific, which had the largest market share of 37% rose by 27% to 11.2 billion contracts (in all segments) during 2018. India, which constituted 45% of the Asia-Pacific derivatives market, grew by 54%, as against the global growth rate of 20%


The economy of India is a developing mixed economy. It is the worlds seventh-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). The country ranks 139th in per capita GDP (nominal) and 119th in per capita GDP (PPP) as of 2018. After the 1991 economic liberalization, India achieved 6-7% average GDP growth annually. Since 2014, Indias economy has been the worlds fastest growing major economy, surpassing China. The long-term growth perspective of the Indian economy is positive due to its young population, English proficiency, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India topped the World Banks growth outlook for the first time in fiscal year 2015–16, during which the economy grew 7.6%. Despite previous reforms, economic growth is still significantly slowed by bureaucracy, poor infrastructure, and inflexible labor laws (especially the inability to lay off workers in a business slowdown).

India has one of the fastest growing service sectors in the world with an annual growth rate above 9% since 2001, which contributed to 57% of GDP in 2012–13. India has become a major exporter of IT services, Business Process Outsourcing(BPO) services, and software services with $177 billion revenue in FY 2019. The IT industry continues to be the largest private-sector employer in India. India is the second-largest start-up hub in the world with over 3,100 technology start-ups in 2018–19. The Indian automobile industry is one of the largest in the world with an annual production of 21.48 million vehicles (mostly two and three-wheelers) in 2013–14. India had $600 billion worth of retail market in 2015 and one of worlds fastest growing e-commerce markets.


The Indian commodity derivatives exchanges are playing an important role in helping market participants manage risk exposure on account of price volatility, in addition to contributing towards modernizing and improving the efficiency of the countrys commodity sector. During FY 2019, total value of commodity futures traded by all national commodity exchanges in India was Rs.71.97 lakh crore against Rs.60.09 lakh crore in FY 2018. The growth of 20% can be attributed to a number of factors, including the expansion of the market driven by a slew of regulatory developments. As noted in the SEBI Annual Report (2018-19), the number of Commodity Options contracts traded in 2018-19 was 1.49 million lots, contributing to a notional turnover of Rs.1,81,119 crore. In volume terms too, Indias commodity derivatives market expanded by about 20% in 2018-19 over 2017-18. The total volume of commodity futures traded by all national commodity exchanges exceeded 246.45 million lots. Such a healthy growth in the Indian market contrasts with the virtual stagnation (growth of 0.6%) in the global commodity derivatives trading volumes. Wide variations, however, were seen in the growth rates in different segments in India: trading in energy futures contracts expanded by 27% while that in agricultural commodities shrunk by 21%.


The Company was originally incorporated in Mumbai as "Comfort Commotrade Private Limited" on November 5, 2007 under the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Maharashtra, Mumbai. Our Company was subsequently converted into Public Limited Company and consequently the name was changed to "Comfort Commotrade Limited" vide Fresh Certificate of Incorporation dated May 21, 2012 issued by the Registrar of Companies, Maharashtra, Mumbai. Further the Equity Shares of the Company were initially listed on SME Platform of BSE Limited. However, post migration, the Equity Shares are now listed on BSE Main Board vide BSE notice dated April 26, 2016. The Company is currently engaged in the business of Commodity Broking and is a Member of MCX and NCDEX. It offers trading in many commodities such as bullion (gold, silver), energy (crude oil, natural gas) metals, food grains (rice, maize), spices, oil and oil seeds and others.

Subsidiary Companies

The Company has one Wholly Owned Subsidiary Companies viz. Anjali Trade Link FEZ in U.A.E. incorporated on January 28, 2014 and Shyam Trade Link PTE. Ltd. in Singapore was closed down closed w.e.f. November 05, 2018.



Experienced Promoters and Management Team

Cordial relationships with Customers


Limited geographical coverage

Dependent upon growth in Commodity Broking Industry

Dependence upon the existing customers for the business


Establishment of market in neighboring states

Potential to increase the business in the existing facility


Industry is prone to change in Government policies

There are no entry barriers in our industry which puts us to the threat of competition from new entrants


As on March 31, 2019, the Company had a total head count of 17 employees. The Directors wish to place on record their appreciation and acknowledgment of the efforts and dedication and contributions made by employees at all levels during the year under review. The Company continues to focus on attracting new talent & help them to acquire new skills, explore new roles and realize their potential.


At Standalone Level, The Revenue from operation stood at Rs. 59,59,42,932 compared with Rs. 90,55,60,190 in the Previous Year. The Net Profit for the year stood at Rs. 8,02,347 against Rs. 21,91,609 reported in the Previous Year.

At Consolidated Level, the Revenue from operations for Financial Year 2018 was Rs. 59,92,14,587 compared with Rs. 92,04,51,287 in the Previous Year. The Net Loss for the year 2019 stood at (9,51,141) against the profit of Rs. 1,48,74,714 in the Previous Year.


The Board has put in place various internal controls to be followed by your Company to ensure that the internal control mechanisms are adequate and are effective. The Board has automated most of the key areas of operations and processes, to minimize human intervention. The design, implementation and maintenance of adequate internal financial controls are such that they operate effectively and ensure accuracy and completeness of the accounting records.

The operational processes are adequately documented with comprehensive and well defined Standard Operating Procedures. This includes the financial controls in the form of maker and checker being with separate individuals. The Board, with a view to ensure transparency, has also formulated various policies and has put in place appropriate internal controls for the procurement of services, materials, fixed assets, monitoring income streams, investments and financial accounting.

Internal control measures includes adherence to systemic controls, information security controls, as well as, role based/ need based access controls. Further, the existing systems and controls are periodically reviewed for change management in the situations of introduction of new processes / change in processes, change in the systems, change in personnel handling the activities and other related activities.

The Audit Committee of the Company reviews and recommends the unaudited quarterly financial statements and the annual audited financial statements of your Company to the Board for approval. Your Company has appointed a firm of chartered accountants to conduct independent financial and operational internal audit in accordance with the scope as defined by the Audit Committee. The reports from the Internal Auditors are reviewed by the Audit Committee on periodic basis and the Internal Auditor have been advised to issue flash reports, if required. Further, all related party transactions are placed before the Audit Committee and are approved / ratified by it after deliberations.


The statements made in this Report describing the Companys objectives, projections, estimates, expectations are the forward looking statements within the meaning of applicable securities laws and regulations and are subject to certain risks and uncertainties like regulatory changes, local, political and economic developments and other factors.