Times Guaranty Ltd Management Discussions.


Times Guaranty Limited ("TGL") is registered with the Reserve Bank of India ("RBI") as a Non-Deposit Accepting, Non-Banking Financial Company and is engaged in the business of providing financial services.

Industry Overview

FY2018 began in an uncertain environment with the economy coming to terms with the impact of demonetisation of Rs. 500/- and Rs. 1,000/- bank notes that came into effect on 8th November, 2016. As per the second advance estimates of national income for FY2018 released by the Central Statistics Office (CSO) on 28th February, 2018 real GDP growth for FY2018 at 6.6%, which is 0.5% less than the 7.1% growth witnessed in FY2017.

NBFCs continued to grow their share in the financial services industry. Data published by the RBI in its Financial Stability Reports dated 30th June, 2017 and 21st 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.

State of Company Affairs and Outlook

During the year under review, your Company has earned a profit of Rs. 48.11 Lacs as against Profit of Rs. 405.75 Lacs for the previous year.

The main source of income during the year was out of profit on the sale of investments. Your Company intends to aggressively pursue the bright prospects and enormous opportunities towards the objects of the Company. Your Company is examining various options of commencing new activities. Your Company continuously reviews the internal control systems and thereby ensures adequate and appropriate checks and balances in transaction risk management.

Internal Control Systems and their Adequacy

The Company has in place adequate internal financial controls with reference to Financial Statements. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.

Risk Management System

The Company has processes in place to identify, assess and monitor various business, financial and operational risks. Major risks identified by the functions are systematically addressed through mitigating actions on a continuous basis. These are also discussed at the meeting of the Audit Committee of the Company. The Companys internal control systems and the audit processes are commensurate with the nature of business, the size and complexity of its operations.

Risks and Concerns

Any adverse change in the business or negative policy of Government will affect the NBFC sector adversely.


The success of NBFCs can be clearly attributed to their better product lines, lower cost, wider and effective reach, strong risk management capabilities to check and control bad debts, and better understanding of their customer segments.


Growth of the Companys asset book, quality of assets and ability to continue the business depends significantly on the economy. Unfavourable events in the Indian economy can affect consumer sentiment and in turn impact consumer decision to purchase financial products. Competition from a broad range of financial services providers, unstable political environment and changes in Government policy / regulatory framework could impact the Companys operations.

Human Resource

Human Resource is the most vital factor of any organization. Your Company has well experienced personnel. The employees work in line with the organizational goal.