Innoventive Venture Ltd Management Discussions

Indian Economy

The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). India was the 19th-largest merchandise and the 6th largest services exporter in the world in 2013; it imported a total of $616.7 billion worth of merchandise and services in 2013, as the 12th-largest merchandise and 7th largest services importer. Indias economic growth slowed to 4.7% for the 2013 14 fiscal year, in contrast to higher economic growth rates in 2000s.

Structure of the Company and the Business

Innoventive Venture Limited (IVL) is a Core Investment Company holding more than 90% of its assets in investments in shares of Group Companies. IVL has fresh new approach to both traditional and emerging markets. The Company has created a diversified investment portfolio which presents the optimal balance between the return on investment and future growth.

Risks and Concerns

IVLs income will mainly come from the dividends that may be receivable on investments held by it / may be held in future or from profits earned on sale of such investments. Any adverse impact on the industries of which securities are held by Innoventive Venture, also have a bearing on the performance of Innoventive Venture. Any slowdown in the growth of Indian economy or future volatility in global financial market, could also adversely affect the businesses in which IVL has invested

Internal Control Systems and Their Adequacy

The Company has well established internal control system commensurate with its size and nature of business which provides for efficient use and safeguarding of resources, accurate recording of transactions and custody of assets, compliance with prevalent statues, adherence to applicable accounting standards and policies which include controls for facilitating the above.

Cautionary Statement

Statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in the industry - global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations etc.

Disclosures by Management to the Board

All disclosures relating to financial and commercial transactions where Directors may have a potential interest are provided to the Board and the interested Directors do not participate in the discussions nor do they vote on such matters.