magnum ltd Management discussions

I. Economy

Indian economy is likely to clock 8.1% per cent growth in the current financial year, spurred by strong consumer spending amid lower inflation, infrastructural projects and governments reforming measures - Stated in UN Report.

"It was absolutely clear that the economy is in recovery mode" so said by Finance Minister Mr. Arun Jaitley in his speech on 30^th May 2015 after data showed that the economy grew at 7.3 per cent in 2016-17.

The Reserve Bank of India (RBI) cut policy rates by 25 bps in January 2015 followed by another 25 bps in March 2015, and has also eased liquidity with a reduction in Statutory Liquidity Ratio (SLR) in three tranches of 50 bps in June 2014, August 2014 and February 2015.

It remains to be seen whether the slew of initiatives announced by the Central Government like Make in India programme, coal and telecom auctions, increased FDI limits in certain sectors, a financial inclusion effort through its Pradhan Mantri Jan Dhan Yojana and Indias improved rating outlook gives a fillip to the performance of the leasing and financial sector in the coming year.

Over view of Companys Business during the year

During the year company has not carried out any revenue generating activities due to unavoidable business conditions.

II. Risks and concerns:

- Presence of number of traders in the market creates a healthy competition in the market.

- Certain macro risks such as economic slowdown, cyclical conditions and uncertainty in demand may impact the performance of Company.

III. Internal Control System

The Company has an adequate system of Internal Controls aimed at achieving efficiency in operations, optimum utilization of resources and compliance with all applicable laws and regulations. The observations and recommendations following such audit, for improvement of the business operations and their implementation are reviewed by the Audit Committee.

IV. CAUTIONARY STATEMENT:

Certain statements in Management Discussion and Analysis Report describing the Companys analysis and interpretations are forward looking and may vary from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent development or events.