Rajkot Investment Trust Ltd Management Discussions.


Rajkot Investment Trust Limited was incorporated as a public limited company under the Companies Act, 1956, on June 29, 1982. Company is also categorized as Non-Banking Financial Company (NBFC)-Loan Company and was registered with the Reserve Bank of India (RBI) on 05/08/1999 with certificate Registration 01.00308.

The Company is managed by qualified professionals having experience in the Finance sector. The Qualifications and Experiences of the people on board are key factors for the growth achieved by the company in recent period. The Management is strictly applying its internal control through optimization of funding costs, identification of potential business areas, cost efficiencies, strict credit monitoring and raising the level of customer service.


To be the most trusted and preferred Investment and financing company, excelling in customer service delivery through committed and empowered employees.


To be a dynamic and responsive organization catalyzing economic development by identifying and financing commercially viable industries, providing valued advisory & consultancy services, promoting entrepreneurship through effective mentoring, skill development and capacity building of the small and medium enterprises.


The Company is a Registered as Non-Banking Finance Company (NBFC) with Reserve Bank of India and presently carrying out the business activities relating to investment and loan Company under the prescribed guidelines of RBI.


Global Economy:

• World growth strengthened in 2017 to 3.8%, with a notable rebound in global trade. It was driven by an investment recovery in advanced economies, continued strong growth in emerging Asia, a notable upswing in emerging Europe, and signs of recovery in several commodity exporters. At 3.8%, global growth in 2017 was the fastest since 2011. The US economy grew at 2.3%, accelerating from 1.5% in the preceding year. Labour market conditions improved further with the unemployment rate falling to a low of 4.1%. Industrial production also registered a robust growth driven largely by mining activity. These developments in conjunction with rising consumer confidence and higher disposable incomes due to tax rationalsation are expected to support growth. However, the impact of the tax justification on the fiscal balance and the ramifications of a potential trade war remain major risks to the outlook.

• Economic activity also continued to expand in major Emerging Market Economies (EMEs). Chinas economy grew by 6.9% in 2017, above both the official target of 6.5% and 6.7% recorded in 2016. Notwithstanding financial risks, a government-led economic restructuring is underway, transitioning China from an export driven path to a more balanced one that is driven by domestic demand. In Brazil, economic activity is gaining momentum, driven by higher commodity prices and improved fiscal outlook. The Russian economy has continued to recover, benefiting from easing of monetary policy, higher oil prices and strong household consumption.

Indian Economy:

• According to Central Statistics Office (CSO), the Indian economy posted a growth rate of 7.7% during Q4 – January – March 2018, enabling the country to retain its position as the fastest growing major economy. This was on account of robust performance by manufacturing and service sectors as well as good farm output. India has positioned itself as the most dynamic emerging economy among the largest countries and is expected to remain the fastest growing on the back of robust private consumption and noteworthy domestic reforms gradually being implemented by the Government.

• The revised fiscal deficit was put at 3.5% of GDP in 2016-17, higher than 3.2% budgeted last year. The fiscal deficit has been projected at 3.3% of GDP for the year 2018-19, higher than the fiscal consolidation target of 3%.


• Indias diversified financial sector is undergoing rapid expansion. The sector comprises of commercial banks, non-banking financial companies, co-operatives, pension funds, insurance companies, mutual funds and other financial entities. A fast-growing economy, rising income levels, higher financial savings, greater propensity to spend and improving life expectancy rates are some of the encouraging factors that are likely to boost growth in the sector in the coming years. Over the past few years, the Reserve Bank of India (the RBI) has been steadily implementing technology to deepen and broaden financial services in India. Innovative steps like introduction of small finance banks and specialized payment banks have been implemented.

• The Financial Services Sector contributes significantly to the Indian growth story and is poised for rapid growth in future.

• Extensive use of technology is stirring the financial services sector with the rise of digital payment options (UPI, wallets, and payment banks) and block chain technology.

• Determined government efforts to improve digitized financial services experience have enabled enhanced sector penetration, especially in rural India.

• Financial inclusion agenda of the government is being realized through Aadhaar-based biometric authentication methods for electronic payments, P2P lending and crowd funding.

• Implementation of the Insolvency and Bankruptcy Code (IBC) is changing the landscape for restructuring of stressed assets.

• The re-capitalisation of PSU banks should improve the credit growth in the lending activity


• Simplifying digitalization – Business is becoming more about the user experience. Automated user interfaces can go a long way in aiding this transformation, and implementing digitalization is key to making it happen. The upcoming year will be about the simplification of processes and digitalization.

• Banking regulations – 2018 will be a turning point in financial regulation. Alongside General Data Protection Regulation (GDPR) and Markets in Financial Instruments Directive (MiFID II), the requirements for central clearing and the second Payments Services Directive (PSD2) will bring out significant changes to the banking environment, with the visionaries emerging as the winners.

• FinTech collaboration - One of the largest technology revolutions in banking in recent years has been the use of advanced data analytics techniques to nail rogue trading activities within banks. In 2018, banks will have to decide whether to service clients in-house or through a third party, to stay competitive.


• Additional measures to be introduced to strengthen the environment for growth and successful operation of Alternative Investment Funds (AIFs) in India.

• SEBI to consider mandating corporate to meet one-fourth of their financing needs from the bond market.

• Government to reform stamps duty regime on financial securities transactions in consultation with States and amend the Indian Stamp Act.

• A unified authority to be established for regulating all financial services in International Financial Services Centres (IFSC).

• Separate policy to be formulated for hybrid instruments for attracting foreign investments, especially start-ups and venture capital firms.

• Bank recapitalisation programme to pave way for public sector banks to lend additional credit of INR 5 lakh crores.

• A new proposal to allow strong Regional Rural Banks to raise capital from the market to enable them to increase their credit to rural economy is under consideration.

• Measures for effectively addressing NPAs and stressed assets of MSMEs to be announced shortly.

• Refinancing policy and eligibility criteria set by MUDRA to be reviewed for better refinancing of NBFCs.


• Non-Banking Financial Companies (NBFC) are an integral part of the Indian Financial system, augmenting competition and diversification in the financial sector and complementing the banking system. The Indian NBFC sector has been providing credit to customers in the underserved and unbanked areas. Their channelling the savings and investments of customers and the subsequent capital formation is necessary for Indias economic growth and development. Their ability to innovate products in conformity with the needs of their clients is well established.


• Strengths

• Distinguished financial services provider, with local talent catering to local customers.

• Vast distribution network especially in rural areas and small towns, diversified product range and robust collection systems.

• Simplified and prompt loan request appraisal and disbursements.

• Product innovation and superior delivery.

• Ability to meet the expectations of a diverse group of investors and excellent credit ratings.

• Innovative resource mobilization techniques and prudent fund management practices.

• Weakness

• Regulatory restrictions - continuously evolving Government regulations may impact operations.

• Uncertain economic and political environment.

• Opportunities

• Demographic changes and under penetration.

• Large untapped rural and urban markets.

• Growth in Commercial Vehicles, Passenger Vehicles and Tractors market.

• Use of digital solutions for business/ collections.

• Threats

• High cost of funds.

• Rising NPAs.

• Restrictions on deposit taking NBFCs.

• Competition from other NBFCs and banks.


• Your Company believes that people perform to the best of their capability in organisations to which they feel truly associated. Your Company focuses on widening organisational capabilities and improving organisational effectiveness by having a competent and engaged workforce. Our people are our partners in progress and employee empowerment has been critical in driving our organisations growth to the next level.


• The Company has put in place an adequate internal control system to safeguard all its assets and ensure operational excellence. The system also meticulously records all transaction details and ensures regulatory compliance. The Company also has a team of internal auditors to conduct internal audit which ensure that all transactions are correctly authorised and reported. The reports are reviewed by the Audit Committee of the Board. Wherever necessary, internal control systems are strengthened, and corrective actions initiated.


• Certain statements in the Management Discussion and Analysis describing the Companys objectives, predictions may be "forward-looking statements" 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. These risks and uncertainties include the effect of economic and political conditions in India, volatility in interest rates, new regulations and Government policies that may impact the Companys business as well as its ability to implement the strategy. The Company does not undertake to update these statements.

Registered Office

By order of Board of Directors

203, Haridarshan Arcade,

For, Rajkot Investment Trust Limited

150ft Ring Road, Near Balaji Hall, sd/- sd/-
Rajkot – 360 004, Gujarat Manish Sharma Rupesh Jain
Date: 14/08/2018 Director Chairman cum Managing Director
Place: Indore (DIN: 02921783) (DIN: 06836912)