Dhanleela Investments & Trading Company Ltd Management Discussions

MANAGEMENT DISCUSSION & ANALYSIS

Your Director are pleased to present the Management Discussion and Analysis Reports for the year ended March 31, 2017 as under:

? INDIAN ECONOMY & OVERVIEW:

India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF). The Government of India has forecasted that the Indian economy will grow by 7.1 per cent in FY 2016-17. As per the Economic Survey 2016-17, the Indian economy should grow between 6.75 and 7.5 per cent in FY 2017-18. The improvement in Indias economic fundamentals has accelerated in the year 2015 with the combined impact of strong government reforms, Reserve Bank of Indias (RBI) inflation focus supported by benign global commodity prices.

? INDUSTRY STRUCTURE:

The future looks bright for the Indian textile and apparel industry. There are positive drivers which indicate future growth opportunities. There is plenty of cotton with a good potential for higher yield. There is the chance to produce yarn instead of exporting cotton. There is growing export as well as domestic market demand. The Government supports modernization of the industry with a particular focus on closing the gaps in the textile value chain.

? BUSINESS OPERATIONS:

The Company is engaged in the business of Trading of Textiles and Shares. The operational performance of the Company during the year was satisfactory looking to the weak market scenario, high input cost, lack of demand by consumers due to high inflation rate, steep competition in profit margin. We identify trends and focus on fundamental quality growth companies for investments. We believe this approach to investing is paramount to long term wealth creation.

? OUT LOOK

The Company has high hope regarding boom in textile and trading industry which will help your Company to flourish and yield good returns to investors and shareholders. Keeping the same in view the Company is planning to expand the present line of business.

? CORPORATE SUSTAINABILITYAND SOCIAL RESPONSIBILITY

The Company constantly strives to meet and exceed expectations in terms of the quality of its business and services. The Company commits itself to ethical and sustainable operation and development of all business activities according to responsible care and its own code of conduct. Corporate Social Responsibility is an integral part of the Companys philosophy and participates in activities in the area of education and health.

? OPPORTUNITIES:

The future looks bright for the Indian textile industry. There are positive drivers which indicate future growth opportunities. There is growing export as well as domestic market demand. The Government supports modernization of the industry with a particular focus on closing the gaps in the textile value chain.

? THREATS:

Continuation of recessive trends for an extended period will cast its long shadow on textiles industry. Old Machinery in textile industry led to low productivity and inferior quality. Cheap imports from emerging / developing countries like China, Vietnam, Sri Lanka and Indonesia. Labour productivity in India is extremely low as compared to some of the advanced countries.

? INTERNAL CONTROL SYSTEM:

Your Company has an effective system of accounting and administrative controls supported by an internal audit system with proper and adequate system of internal check and controls to ensure safety and proper recording of all assets of the Company and their proper and authorised utilization.

? HUMAN RESOURCES:

Organizations that invest in human capital invest in the future. The Company at present doesnt have any employee except the executive Directors putting their efforts for the Company but with the increased operations, Company is looking forward for more and more investment in Human Resources in the coming years.

? CAUTIONARY STATEMENT

The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and other incidental factors.