Microse India Ltd Management Discussions.

Indian Economy:

During FY 2018-19, Indias GDP has grown to 6.8%, however consider the long term impact of the policies and International trend it is one of the fastest growing major economies in the world. The investment cycle in India is showing positive growth and consumption expenditure is improving. This growth is likely to be sustainable on the back of the Governments focus on industrial activities, infrastructure development and ease of doing business.

Industry Structure and Developments:

The Government of India has taken significant initiatives to strengthen the economic credentials of the country and make it one of the strongest economies in the world. The country continues to urbanise at a strong pace driven by a combination of uptrending consumption, robust job creation and growing financial penetration.

Opportunities and Threats:

The Government of India has set up Invest India which is the official Investment Promotion and Facilitation Agency of the Government of India, which is managed in partnership with DIPP, state governments, and the Federation of Indian Chambers of Commerce & Industry (FICCI). Invest India maintains a web portal with links to current investment policies as well as resources for doing business in India.

The primary reason for growth in the investment industry can be attributed to increasing trade reforms in Government Policy, increased Government spending on investment sector and rise in domestic consumption. The change in the political and social conditions, the monetary and interest rate policies of India and other countries have also helped in maintaining the momentum in the investment activities of the Company. The management is focus on overall growth of the Company.

Constant fluctuations due to interest rate fluctuations, downstream in business cycle, economic recession and other economic factors which are beyond the control has placed some threat on the Company policies in investment decisions. Frequent updates in regulatory market and law are constant challenge for smooth operations of the Company. Further, opportunities bring itself competition. The different levels of competition have led to the price cutting as well.

Segment-wise or product-wise performance:

As compared to the previous reporting period, there is no income generated during the current financial year.

Tire Company, with superior methodologies and improved process and systems, will focus on positioning the revenues and lead towards high growth path in future.

The Company is only operating in one segment.

Outlook, Risks and Concerns:

Some economists are of the view that the Indian Economy on the whole is doing fine, but there are risks like slowing FDI, deteriorating asset quality of banks, and rising risks of bad loans which can have effect on the growth of the economy.

There are several opportunities for the sector and the outlook for the coming months will continue to remain positive.

Internal control systems and their adequacy:

Your Company ensures that appropriate risk management limits, control mechanisms and mitigation strategies are in place through its efficient and effective Internal Control System and the same completely corresponds to its size, scale and complexity of operations. The Company strives to put several checks and balances in place to ensure that confidentiality is maintained. Effective procedures and mechanisms are rolled out by a full-fledge Internal Audit System to ensure that the interest of the Company is safeguarded at all times. In addition to this, the Risk Assessment policy of the organization is reviewed on a quarterly basis by the Audit Committee / Board of Directors of your Company.

Discussion on financial performance with respect to operational performance:

Total profit earned during the year under review is INR. (6,41,812) as against a profit of INR. 5,40,697 in the previous year. After giving effect of the tax liability of INR. 37, the net profit of the Company is INR. (6,41,849) as against the profit of TNR. 5,16,693 in the previous year.

Cautionary Statement:

Your Company endeavours to perform and attempt to deliver the best at all times. However, the statements made in this report describing the Companys objectives, expectations or predictions shall be read in conjunction with the government policies as issued and amended from time to time, the micro as well as macroeconomic scenario prevailing at that

time, global developments and such other incidental factors that may extend beyond the control of the Company and Management. Keeping this in view, the actual results may materially vary from those expressed in the statement.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

The Company is committed in ensuring that the work environment at all its locations is conducive to fair, safe and harmonious relations between employees. Company strongly believes in maintaining the dignity of all its employees, irrespective of their gender or seniority. Discrimination and harassment of any type are strictly prohibited.