7NR Retail Ltd Management Discussions.

1. COMPANY OVERVIEW:

Your Company is engaged in wholeselling and Retailing of the readymade garments. The Company is offering the finest quality product matching with the latest style and fashion. We have been taking care regarding the choice, quality and customer satisfaction. Your Company strives to focus on maintaining and reinforcing the image of its existing exclusive brand outlets under the brand name of "Gini & Jony".

2. INDUSTRY OVERVIEW:

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the countrys Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the worlds fifth-largest global destination in the retail space. Indian Retail Industry has immense potential as India has the second largest population with affluent middle class, rapid urbanisation and solid growth of internet. The overall retail market in India is expected to grow at 12% growth rate per annum, driven by growing urbanization, rising income, younger demographics and rising aspirations of the middle class. Modern trade is going to expand as twice as fast at 20% per annum an traditional trade is expected to grow at 10% (Source: IBEF).

The online retail is growing at rapid pace. Online retail in India is expected to be at par with the physical stores in the upcoming few years, driven by robust investment and rapid increase in the number of internet users. (It grew 23% to US$ 17.8 bn in 2017 (Source: IBEF)

3. Opportunities and Strength

Brand Leadership,

Unparalleled reach to the largest consumer groups Value for money, Image Diversified geographical presence, Strong customer connect, Focus on superior customer experience, Enhanced quality of production., Improved efficiency of working capital management,

Improvement in cost structure would add to operating margins of the Company.

4. Risk and Threats

Changing consumer preference, Discount Rates and Offers High fixed cost structure,

Intensifying competition with more branded apparels,

Changes in fashion trends and slowdown in consumption pattern of the consumers, may adversely affect the turnover of the Company.

5. OUTLOOK

The outlook for the Indian textile industry continues to be positive. The factors which contribute to the India advantage are expected to continue over the medium term. This is expected to help India enhance its market share further in the other key geographies.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has in place internal control systems and procedures commensurate with the size and nature of its operations. Internal control processes which consist of adopting appropriate management systems and implementing them are followed. These are aimed at giving the Audit Committee a reasonable assurance on the reliability of financial reporting and statutory & regulatory compliances, effectiveness and efficiency of your Companys operations. The Internal Control Systems are reviewed periodically and revised to keep in tune with the changing business environment.

7. SEGMENT REVIEW

The Company operates in single segment.

8. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company recorded total revenue of Rs. 1025.26 Lakh during the year under review as against Rs. 11.42.45 Lakh. The profit after tax for the year ended 31st March, 2018 is Rs.8.20 Lakh as against Rs. 37.53 Lakh.

9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company firmly believes that motivated and empowered employees are the cornerstone of competitive advantage. The Companys employee value proposition is based on a strong focus on employee development, providing a satisfying work environment, performance appraisal and counselling and appropriate empowerment. The Company continues to maintain and enjoy a cordial relationship with its employees, providing positive environment to improve efficiency with regular investments in upgrading the knowledge and skills of the employees.

10. FORWARD LOOKING STATEMENTS:

Outlook for future are estimates based on certain assumptions and expectations of future events, eco-political and other developments across the country, the Company cannot guarantee that these are accurate or will be realized. The Companys actual results, performance or achievements could thus differ from those projected in any forward looking statements. The Company assumes no responsibility to publicly amend or revive any such statements on the basis of subsequent developments, information or events.

Disclosure of Accounting Treatment:

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

11. CAUTIONARY STATEMENT

The statements in the "Management Discussion and Analysis Report" section describes the Companys objectives, projections, estimates, expectations and predictions, which may be "forward looking statements" within the meaning of the applicable laws and regulations. The annual results can differ materially from those expressed or implied, depending upon the economic and climatic conditions, Government policies and other incidental factors.