Shyamal Holdings & Trading Ltd Management Discussions

A) INDUSTRY STRUCTURE AND DEVELOPMENTS :

India continues to be one of the worlds fastest growing economies, despite operating in a volatile globalenvironment. The GDP for F.Y. 2016-17 touched 7.1%.

The year was marked by major events namely demonetization of specified bank notes, conclusion of legislative assembly elections in five states, passage of Goods and Services Tax (GST) Bill by the Parliament. On November 8, 2016, the government announced the demonetization of Rs.500 and Rs.1,000 denomination notes, thereby rendering 86% of the cash in circulation as invalid. The decline in cash in circulation had led to increase in bank deposits with a resultant decline in interest rates on deposits, loans and government securities as well as a decline in real-estate prices, increase in savings, digitalization, income disclosure with a resultant increase in collections by tax and other local authorities.

B) OPPORTUNITIES AND THREATS

Indias financial service sector plays a critical role in driving the countrys economic growth by providing a wide spectrum of financial and allied services to a large consumer cross-section. In India, the market for financial services sector is still largely untapped. Digital technology, which has transformed the way business is conducted across the world, is projected to be one of the major drivers for the growth of this sector in India as well. The present government is also supportive of business growth and for this purpose amended many Acts and introduced new laws like The Insolvency and Bankruptcy Code, 2016, amendments in Companies Act, 2013, Income Tax Act, 1961, making effective Goods and Service Tax for doing the business easily in India and thereby attract foreign investment, relaxing Foreign direct investment (FDI Norms) in many sectors and other steps to grow the economy. These steps by the government creates optimistic business environment. Further, the governments policy measures to boost the economy, corporate earnings and global liquidity are likely to remain the key market drivers.

C) OUTLOOK

GDP growth is expected to surpass the 7% mark in 2018, after being temporarily impacted by the governments demonetization initiative in the initial months of 2017. Demonetization is likely to leave a positive impact on the economy through greater tax compliance, increased digitalization and investments in capital formation. The projected fiscal deficit for 2017- 18 is 3.2% of the GDP. The state governments will have to pass the GST law in their respective state assemblies. GST will be a single levy to replace multiple central and state taxes to make the country a seamless national market and is expected to boost Indias growth rate.

D) RISK AND CONCERNS

The capital market industry is mainly dependent on economic growth of country and capital market is also further affected by number of issues arising out of International policies of foreign government as well as any change in international business environment. The Company encounters market risk, credit risk and operational risks in its daily business operations.

E) INTERNAL CONTROL AND ADEQUACY

The Company has proper and adequate control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and that the transactions are authorized, recorded and reported correctly.

F) FINANCIAL PERFORMANCE

Financial performance of the company has been indicated in the Directors report.

G) CAUTIONARY STATEMENT

Certain statement in the Management Discussion and Analysis describing Companys objectives and expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied depending upon global and Indian demand-supply conditions, changes in Government regulations, tax regimes, economic developments within India & overseas and other incidental factors.