B Nanji Enterprises Ltd Management Discussions.

1. ECONOMIC & BUSINESS ENVIRONMENT

Indias GDP is expected to grow by 7.1% in 2016-17 compared to 7.93% in 2015-16. This will make India the fastest growing economy ahead of China. The devaluation of the yuan, continuing slide in commodity prices and dollar outflows from emerging markets had cast a doubt on whether India would be able to sustain its retrospective GDP growth average.

The 2017 Union Budget introduced decisive measures to catalyse the countrys rural economy and business sentiment. Strong private consumption should continue to fuel robust growth, going forward. However, a delay in the implementation of reforms may limit progress. The Finance Ministry is optimistic of 7%+ GDP growth based on the anticipations of a robust monsoon in 2017.

2. BUSINESS SEGMENT

(a) Industry structure and development

The Indian real estate sector is one of the most globally recognized sectors. In the country it is the second largest employer after agriculture and is slated to grow at 30% over the next decade. It comprises four sub-sectors - housing, retail, hospitality and commercial. The growth of this sector is well-complemented by the growth of the corporate environment and demand for office space as well as urban and semi-urban accommodations. As a result of general economic slow-down in the past few years, the off-take in all the real estate sectors has been slow.

(b) Opportunities and threats

Residential demand is the mainstay of the Indian real estate sector. The major demand drivers in the residential market include increasing disposable income levels, increase in the number of nuclear families/households, tax-savings on home mortgage products as well as real estate being considered a "necessary" investment. As a result, the residential segment witnessed higher growth in the past few years and despite the global economic slow-down, residential market in the country will largely be buoyant. Your Company is primarily focussing on development of townships in the Western region by offering reasonably priced plots to cater to middle class segment.

(c) Risks and concerns

Global economic uncertainties have affected Indias economy, including the real estate market. The real estate developers are reeling under high debt and FDI inflows have also slowed down. Amidst these macro-economic conditions, Indian real estate industry across the prime cities of India will have mixed sentiments in time to come. Your Company is most resilient to these factors as it is focussing on providing reasonably priced plots/flats and is avoiding expensive land acquisitions.

(d) Outlook

The Indian real estate industry is expected to be the worlds third largest by FY 2020. The real estate contributes about 6.30% to Indias gross domestic product (GDP). The market size of the sector is expected to increase at the compounded annual growth rate (CAGR) of 11.20% upto FY 2020. Emergence of nuclear families and growing urbanization has given rise to several townships that are developed to take care of the elderly persons. A number of senior citizen housing projects are being planned. This segment is expected to grow significantly in future. Growth in the number of tourists has resulted in demands for service apartments.

3. COMPANYS FINANCIAL PERFORMANCE & ANALYSIS

During the year under review, the Company has reported total income of 3142.24 lacs against the total income of 3023.12 lacs during the previous year. Hence, the Company has achieved higher total income in the financial year under review compared to previous financial year. The Company has earned Net Profit of 14.47 Lacs during the year under review as against Net Profit of 44.31 Lacs during the previous year.

4. Internal Control System

Your company continues to place considerable emphasis and effort on the internal control systems. There is well established internal control system with clearly laid down powers and responsibilities, wherever necessary, that can be exercised by various levels of the Management in the Company.

5. Human Resources

Human resources management is an important function in the Company in view of the large set up of the organization and diverse line and staff functions. The goal is to create an inclusive working environment that attracts and retains the best people, enhances their flexibility, capability and motivation and encourages them to be involved in the growth of the Company. Systematic and purposeful training to its workforce is undertaken resulting in improving their motivation to work thus benefiting both employees as well as the Company. The Company continued to enjoy healthy industrial relations during the year.

6. Cautionary Statement

Statement in the Management Discussions and Analysis Report describing the Company objectives, projections, estimates, expectations or predictions may be "forward looking statement" within the meaning of applicable security laws and regulation. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company operations include economic conditions affecting demands and supply and price conditions in domestic in which the Company operates. Changes in Government regulations, tax regimes economic developments within India and other incidental factors.