B T Syndicate Ltd Management Discussions.

The Company is in the business of Trending in Luggage, Travel Accessories, Textile & Stationery . The key issues of the Management Discussion and Analysis are given below.

(a) Industry structure and developments

Over the last two decades, rising internet and mobile phone penetration has changed the way we communicate and do business. E-commerce is relatively a novel concept. While in countries such as the US and China, e-commerce has taken significant strides to achieve sales of over 150 billion USD in revenue, the industry in India is, still at its infancy. However over the past few years, the sector has grown by almost 35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 2013.

The e-commerce market has changed the way business is transacted, whether in retail or business-to-business, locally or globally. Prior to the Internet, success in retail was said to hinge on location. Now, the Internet is a global marketplace, affording even the smallest retailer. One of the largest segments of e-commerce is the online retail sector, which is dominated by the sale of consumer electronics, apparel and accessories. Consumers have become more sophisticated and online retail has become more competitive.

(b) Strength

Ecommerce vendors benefit from a structural advantage like - Operational costs is lower than a brick and mortar store; Accessibility - the website is always open to the customers, thus they are more likely to make a purchase and also help in establishing more competitive prices to attract even more shoppers; Multiple Channels - instead of adding a second sales channel to your brick-and-mortar operation, online retailing may be able to add several.

Also the company is looking at entering various verticals across the e-commerce sector to improve the companys top line and bottom-line.

(c) Comment on Current years performance

Receipts : The Receipt has been satisfactory for the year of its operations.
Operating Expenses : The operating Expenses are well under control.
Operating Profits : The Operating Profits are up to industry mark.
Indirect Expenses The Indirect Expenses are under control.
Depreciation : Reasonable amount of Depreciation is provided.
Profit before tax : Profit before tax is also an improving trend.
Taxation : Taxation is provided as per Income Tax Act.
Debtor/Sales : Debtors are reasonable.
Creditors / Purchase : The Company has an established credit.

(d) Threats:

Changes in legal and regulatory frameworks or new laws from card associations may be a problem especially for the higher risked industries. Few other threats to e-commerce or online retail business are:

• E-commerce transactions are much more likely to result in fraud than face-to-face ones.

• Hackers can steal sensitive account information and can also get a hold of credit card data.

• Customer disputes and chargebacks are usually the top risk concern for e-commerce merchants. Some of the most common ones are: The merchandise is never received, the service is not provided as expected, the cardholder is billed twice for the same transaction, the transaction amount is incorrect etc.

Advertising trademark infringement.

The Company is mainly exposed to market risk (including liquidity risk), interest risk and credit risk.

(e) Competition

industry players often offer similar products and services, leading to an aggressive fight for customers and market share. In this sector there are low barriers to entry whereas they continue to grow at a rapid rate. With more and more corporations focused on improving their IT capabilities and bolstering their presence on the Internet, this sector continues to achieve record revenue and profits over the next several years.

(f) Segment wise performance

The business of the Company falls under a single segment only.

(g) Internal control system

Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance satisfactory.

(h) Developments in human resources and industrial relations

Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particular of Employees) Rules, 1975 is not required to be given as no employee falls under it. The Company continued to have cordial relations with all the employees.

By Order of the Board
PLACE: Kolkata
DIN NO:- 00741604