Decorous Investment And Trading Co Ltd Management Discussions.

Your Directors Present Companys Management Discussion and Analysis Report for the year ended on 31.03.2018

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the company and overall strategy of the company and its outlook for the future and this outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.

FORWARD LOOKING STATEMENT

Statement in this Report, particularly those which relate to Management Discussion and Analysis, describing the companys future plans, objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results may vary materially from those either expressed or implied.

GEMS , JEWELLERY & BULLION INDUSTRY STRUCTURE AND DEVELOPMENTS

India has substantial reserves of gold, diamond, ruby and other gemstones. The gems and jewellery sector has been playing a very important role in the Indian economy and contributes about 6-7% to the countrys gross domestic product (GDP), apart from large scale employment generations and foreign exchange earnings (FEE). Sensing its immense potential, the Government of India has declared the sector as a thrust area for export promotion. The primary segments of the sector in India are gold jewellery and diamonds & gems. India is the worlds largest consumer of gold, accounting for over 20 per cent of the global gold consumption. The country is also the worlds largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies. India exports 95% of the worlds diamonds, as per statistics from the Gems and Jewellery Export promotion Council (GJEPC). The industry is projected to generate up to US$ 35 billion of revenue.

OPPORTUNITIES:

> The country is slowly starting to move towards branded jewellery and consumers are progressively accommodating modern retail formats.

> Gold jewellery exports from India increased on year to year basis.

> India has the high skilled low cost Labour.

> The Indian cut diamonds and designed jewellery are in demand in the international market.

THREATS:

> Gold import is subject to high custom duty which fluctuates & can affect the business severely.

> Gold prices are also not stable that poses threat to the profit margin consequently.

> Tough competition from other players may compel Company to offer competitive price & ultimately affect our profit margin.

> Money Market tightness and financial crunch.

> Alternative to Diamonds such as American Zerconia and CVD

> Consumer avoiding Gold Jewellery as investment option.

> Consumer preference towards branded & imported Designer Jewellery & Watches.

> Working Women does not prefer wearing any type of jewellery.

RISK & CONCERN:

Aggressive competitions by new players, who wish to enter the category, pose a risk of the Company losing its market share. The Company will focus on contemporary designs, better value proposition in the product basket through continuous innovation and on cost management to mitigate the risks.

CHANGES HAPPENING DURING THE FINANCIAL YEAR

During the Financial Year, Company has closed the business of Gems & Jewellery due to competition & commercial & other reasons and preferred/resolved to start the business activities relating to real estate, commission, agents, trading / purchase & sale of bullion & commodities, etc.

REAL ESTATE & SERVICE SECTOR & OTHER BUSINESS (ES), CONSULTANCY, COMMISSION ETC. INDUSTRY STRUCTURE & DEVELOPMENTS

The Indian real estate sector has come a long way and is today one of the fastest growing markets in the world. It

comprises many sub-sectors - housing, retail, hospitality, farms, residential, and commercial. While housing contributes to 5-6% of Indias gross domestic product (GDP), the remaining sub-sectors are also increasing at a fast pace. The total realty market in the country is expected to touch US$ 180 billion by 2020.

Real estate in India is being recognized as an infrastructure service that is driving the economic growth engine of the country. Growing infrastructure requirement in diverse sectors such as tourism, education, healthcare, etc., are offering several investment opportunities for both domestic as well as foreign investors. The role of the Government of India has been instrumental in the development of the sector including FDI in Real Estate. With the government trying to introduce developer and buyer friendly policies and law enforcement against delay in delivery & breach of commitments, the outlook for real estate sector does look promising.

OPPORTUNITIES

> Real estate contributes about 5% to Indias GDP. The market size of this sector is expected to increase at a compound annual growth rate (CAGR) of 11.2 per cent during FY 2008-2020.

> The Indian construction and real estate sector continues to be a favoured destination for global investors. Several large global investors, including a number of sovereign funds, have taken the first move by partnering with successful local investors and developers for investing in the Indian real estate market.

> The residential asset class looks to have great potential for growth with housing requirements growing across cities.

> Demand for space from sectors such as education and healthcare has opened up ample opportunities in the real estate sector .The country still needs to add 3 million hospital beds to meet the global average of three for every 1,000 people.

> Government of India focus on affordable homes for all by 2022, the creation of 100 Smart Cities and infrastructure development across India, the real estate industry has much to look forward.

THREATS

> High inflation rate may increase the cost and companys profit margins may suffer.

> High interest rate may also prove to be adverse.

> Real estate industry is capital intensive sector which require high capital and in present scenario, it is challenge in front of management to arrange for the funds requirement.

> Tough competition from the other existing players in the industry also poses a threat.

OUTLOOK

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has a proper and adequate system of internal controls & audit commensurate with its size to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly. Proper controls and checks are exercised by the company by following the procedures prescribed in the various manuals. Audit Committee of the Board reviews Internal Control Systems on periodical basis.

CHANGES HAPPENING DURING THE FINANCIAL YEAR

During the Financial Year, Company has closed the business of Gems & Jewellery due to competition & commercial & other reasons and preferred/resolved to start the business activities relating to real estate, commission, agents, brokers, consultancy, trading / purchase & sale of bullion & commodities, etc.

DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Your company recognizes the value of human resource, therefore, the Human Resource Policies are being framed in such fashion that they not only aim at achieving the organizational goals but also recognize, appreciate and develop the individual interest of the employees. Human Resource Development Policies of the company are being so framed that it is in the best interest of the organization as well as employees of the company.

BY ORDER OF THE BOARD OF DIRECTORS DECOROUS INVESTMENT & TRADING CO. LTD.

Place : New Delhi

Dated: 10.08.2017 Raj Kumar Gupta - DIN: 00074532

WTD & CFO

B-15, Panchsheel Garden,

Naveen Shahadara Delhi- 110032