Invicta Meditek Ltd Management Discussions.

a) GLOBAL & INDIAN ECONOMIC OVERVIEW:

Global growth is estimated at 3.5% in 2019 and 3.6% in 2020 on account of a sustained weakening in advanced economies. The growth is constrained by sluggish investment and risks including rising trade barriers, renewed financial stress and sharper than expected slowdowns in several major economies. India emerged as the sixth-largest and retained its position as the fastest-growing trillion-dollar economy. The Indian GDP has grown by 6.9% in Financial Year 2019. The decline in GDP growth is on account of multiple factors like, fallout of NBFCs, low credit growth, tight liquidity conditions, dismal growth in wages and flat exports owing to a global slowdown. Indian manufacturing continued its downtrend growing at 3.1%. However, GDP growth rate is expected to bottom out in the coming quarters. India is expected to grow at 7.3% in FY2019-20, benefiting from ongoing structural reforms.

b) INDUSRTY OVERVIEW:

The business of the Company is influenced by the performance of the construction and building product sectors. The growth in construction sector was notable in first half of 2018 before easing in the latter part of the year. The Indian construction industry is fragmented and comprises a number of unorganized players. The nations construction sector is being catalysed by growth in the real estate and urban development sectors on the back of growing industrialization and commercialization on the one hand and increased homebuilding on the other. The real estate sector contributed 7% to the countrys GDP and its share is expected to double by 2040. The government rationalization of GST rates from 8% to 1% in the affordable housing criteria is seen as an immediate move towards getting the real estate sector the much-needed acceleration.

c) OUTLOOK:

The global construction and infrastructure industry is being influenced by automation, digitisation and use of advanced materials. The global construction industry is expected to expand by 3.6% till 2022. The residential segment growth rate is expected to increase to 18.3% by 2022 on account of the incremental demand coming in from the affordable housing segment.

d) STRENGTH, THREATS, RISKS, AND CONCERNS:

Robust demand from commercial and private sector housing, Increased governmental investment in national infrastructure are key strengths for the Companys growth. With increased trend of investing with tier 1 and 2 developers, there could be downward pressure on other small time developers. Rupee being weak in comparison to USD, labour cost, inflation has also been major concern for the growth of Company.

e) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place, adequate internal control systems and procedures commensurate with the size and nature of our business. These procedures are designed to ensure that

i) An effective and adequate internal control environment is maintained across the Company.

ii) All assets and resources are acquired economically, used efficiently and are adequately protected.

iii) All internal policies and statutory guidelines are complied with.