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Capri Global Capital Ltd.

BSE: 531595 Sector: Financials
NSE: CGCL ISIN Code: INE180C01026
BSE LIVE 15:27 | 08 Dec 59.00 1.80
(3.15%)
OPEN

56.60

HIGH

59.90

LOW

56.60

NSE LIVE 15:31 | 08 Dec 58.70 1.55
(2.71%)
OPEN

57.50

HIGH

59.40

LOW

56.00

OPEN 56.60
PREVIOUS CLOSE 57.20
VOLUME 1320
52-Week high 81.40
52-Week low 22.22
P/E 30.41
Mkt Cap.(Rs cr) 1033.38
Buy Price 58.05
Buy Qty 100.00
Sell Price 59.00
Sell Qty 90.00
OPEN 56.60
CLOSE 57.20
VOLUME 1320
52-Week high 81.40
52-Week low 22.22
P/E 30.41
Mkt Cap.(Rs cr) 1033.38
Buy Price 58.05
Buy Qty 100.00
Sell Price 59.00
Sell Qty 90.00

Capri Global Capital Ltd. (CGCL) - Chairman Speech

Company chairman speech

Dear Shareholders

Seven years after the Global Financial Crisis of 2008-9 the world still remainsunsettled as it moves through a sustained period of economic turbulence and uncertainty.It is in this context that we have to evaluate India’s strong performance in 2015-16and an even stronger outlook going forward. Favourable macroeconomic parameters multiplegovernment initiatives and softer oil prices have helped propel India to be theworld’s fastest growing major economy.

The financial services sector is a good indicator of the progress that India is making.Financial inclusion instruments direct benefit transfers and government- sponsoredfunding schemes for MSMEs are all leading to greater economic participation from a largenumber of people in the entrepreneurial landscape. And I believe this is where theopportunity for NBFCs in India will be found. These unique financial organizations suchas Capri Global are expected to be major participants in the retail finance industrygiven our collective ability to be more flexible than traditional lenders and reach deeperinto consumer and other markets. From a policy perspective new RBI guidelines on NBFCsregarding capital requirements provisioning norms and enhanced disclosure requirementsare all expected to benefit the sector over the long run setting the stage for strongerwell-governed NBFCs to compete fairly in the marketplace.

The performance of Capri Global must be seen from this vantage point. We have certainlyreported an encouraging performance in FY2015-16 yet there is always room forimprovement. The MSME & Retail finance arm overtook Wholesale real estate lending andnow comprises a substantial portion of our loan book. This was the result of a consciouseffort and accurate reading of market trends by the Company’s management. We havestrategically downsized the exposure to the residential real estate sector given thecurrent challenges but will continue to be receptive to superior opportunities as andwhen they present themselves.

Importantly the strategic shift towards MSME lending will ensure that we are aparticipant in the entrepreneurial resurgence of India for It is the entrepreneur thatdrives growth in economies across the world. To achieve this we will continue to focuspersonnel and other resources towards this effort making sure that our associates havethe requisite credit marketing operations and administrative skills to be successful. Inaddition we seek to ensure that our organization’s diversity reflects the markets weare serving. A diverse organization is necessarily a stronger one. We will further sharpenour focus on technology investing in processes and systems that will make scaling-uprelatively risk-neutral. In short although a medium-sized organisation we ourselvesmust maintain a nimbleness and entrepreneurial spirit. This thinking must apply to alllevels in the organisation starting from the Board to the Executive Management andexpanding to the field force.

I am pleased to report that the strategic alliance between Capri Investment Group(CIG) USA and the Company which brought about my chairmanship has begun delivering onits objectives. During FY2015-16 we took a major step forward to strengthen thisstrategic alliance by receiving RBI approval to establish an asset gathering off-shorewholly-owned subsidiary. Recent statutory changes may allow us to base the AssetManagement Company (AMC) in India with favourable tax and regulatory implications for ourthird-party investors. From the start we have aimed to infuse best practices robustgovernance and combine the research efforts of CIG and the Company. The pendingestablishment of the AMC with the goal of collectively raising capital from third-partyinvestors - an area in which CIG specializes - will allow us to realize the spirit ofjoint venture upon which our alliance was formed.

As we move into the future our primary focus will be on growth and expansion. We willbroaden our product offerings geographically by extending our areas of operations. And atthe same time we will foray into new business lines such as affordable housing financeand third-party asset management. But we also expect to expand our balance sheet byfurther developing our banking relationships and prudently increasing their capitalexposure to us.

While MSME and residential real estate lending represent the bedrock of our ongoingbusiness our recent initiatives in affordable housing finance and AMC will help usfurther strengthen and diversify our portfolio and in the process make our incomestreams more resilient. Certainly the broader real estate market is currently facingchallenges but it may be the perfect time to counter-cyclically pursue selecthigh-return opportunities in the sector. All of these types of opportunities properlyexecuted should enable the Company to profitably and responsibly provide attractivereturns over the long term for our shareholders.

Lastly at Capri Global we are working to create value not just for our shareholdersbut also for the communities in which we operate and the society at large. We areconscious of our responsibility as a corporate citizen and seek to play our part in makinglives better. Our social responsibility initiatives are driven through the CapriFoundation which runs various programmes in our operating areas. Beyond this our lendingactivity itself provides opportunities for the society’s underserved and marginalizedsections.

I would like to thank our shareholders for their immense support as we steadily andconsistently develop your Company into one of the leading financial organizations inIndia. As India continues to take its place as perhaps the most dynamic economy in theworld we will endeavour to grow in tandem with this great country for the benefit of allthe varied and important stakeholders of Capri Global.

Yours truly

Quintin E. Primo III

Non-executive Chairman

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