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CSL Finance Ltd.

BSE: 530067 Sector: Financials
NSE: N.A. ISIN Code: INE718F01018
BSE LIVE 15:40 | 15 Dec 677.35 -11.60
(-1.68%)
OPEN

694.70

HIGH

710.00

LOW

670.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 694.70
PREVIOUS CLOSE 688.95
VOLUME 1819
52-Week high 785.00
52-Week low 150.00
P/E 27.92
Mkt Cap.(Rs cr) 400
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 694.70
CLOSE 688.95
VOLUME 1819
52-Week high 785.00
52-Week low 150.00
P/E 27.92
Mkt Cap.(Rs cr) 400
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

CSL Finance Ltd. (CSLFINANCE) - Chairman Speech

Company chairman speech

Dear Shareholders

The year FY 2016-17 was a mixed year for financial sector. The banking sector remainedchallenging due to rising NPAs and lower investment by private sector. FurtherDemonetisation increased problems in the financial sector. Demonetisation slowed downgrowth of economy as most of the businesses were impacted due to liquidity crunch.However NBFC sector remained on a growth path the loan & advances from sector grew by16.4% YoY. Clearly with the challenges with the NPAs in the PSU banks NBFCs have capturedmarket share from banks in many product lines.

We feel that NBFCs will continue to grow in the near future while the public sectorbanks are unable to meet credit demand and struggling with their rising NPAs. NBFCs havecreated their specialized niches and have also built a deeper reach into the suburban andrural India which is expected to be the growth driver for sector in years to come. Anotherhealthy trend is that inspite of rising NPAs Net NPAs of NBFC sector declined from 2.7%to 2.3%.

Another key trend that is playing out is shifting of savings from physical assets likegold and real estate to financial assets. This could be a mega trend which has thepotential to change the entire face of financial services in India in the long term.Another disrupting force is the increased use of technology by various players in thefinancial services space with disruptive business models. Mobile Wallets increasing useof fintech platforms Online Credit Scoring Payment Gateways and Digital Currencies willincreasingly gain acceptance and change consumer habits. Aadhar is another disruptiveforce that will make a huge impact in Indian financial Services.

Your management team sees a big opportunity emerging out of all these trends and hasdecided to scale up its existing operations and pursue new avenues of growth. As a companywe are embarking on a new journey to scale up our operations.

FY 2016-17 was a transformational year for our company. We have decided to discontinueour non-core activities and from Q2FY2016-17 onwards our operations are focused on lendingoperations only. We propose to grow in our core area of lending and are also venturinginto smaller ticket SME loans by building our retail presence. We opened new retailbranches in Ambala Panipat and Yamunanagar and also started retail operations out of ourexisting office in Delhi. We are aiming to build our retail SME product line by providingloans in the Rs 2-25 lakh ticket size to small traders and businesses in Tier 2 & Tier3 cities as well as in NCR region. Over the next couple of years we aim to build ourpresence in Northern India using a hub and spoke model.

During the year we got a rating of BBB from Care Ratings. Its a good start andhighlights the strength of our balance sheet. We successfully raised Rs50Cr from SBI forour working capital needs and further aim to leverage our balance sheet to scale up ourbusiness.

As on 31st March 2017 our total loan book is Rs.135.45 Cr. This is a 28.23%growth over last year. A large part of our current loan book is of short term duration andserves as mezzanine loans to meet the short term requirements of smaller companies andreal estate developers. Our company has strong due diligence process regular clientmeetings and detailed monitoring Which has helped build a excellent track record withminimal NPAs. Due to all our efforts towards due diligence and tight control we managed togrow our loan book with excellent portfolio quality.

During the year we earned Profit after Tax of Rs 16.42 Cr versus Rs 13.05 Cr inFY2015-16 a growth of 16% YoY. As we start on our new journey we have announced ourmaiden dividend of Re.1 per share.

We think that there are ample growth opportunities in the country for a NBFC and we areaiming to expand our reach and balance sheet. We have hired a new team for our SMEoperations with rich experience in lending which will focus of building the retail SMEproduct line and we will remain focused on building upon our existing strengths. We remainoptimistic about the future prospects for the company and thank all our shareholders fortheir continued support.

Sd/-

Rohit Gupta Managing Director