Siddha Ventures Ltd Management Discussions.

I) Industry structure and developments.

The Indian economy has shown unprecedented growth in the last few decades post liberalisation. A robust capital market supplemented by technological advancement and a strengthened legal framework has played a major role in driving the growth thus far.

With the global economy still in and out of turbulent times the Indian capital markets never fail to disappoint and often emerge as one of the most stable and sustainable of all emerging markets and are often crowned as a safe investment destination.

II) Opportunities and Threats.

Stock market provides an opportunity to money lender and money seeker to Invest and use money for their plan. It provides an opportunity to the investor to be the owner of the company and contribute in the business decision of the company. Stock market is a kind of indicator of the economic growth of the country where it provides an opportunity to gain according to the inflation of the country or more than that. There are many competitors of stock market such as post office savings public provident fund company fixed deposits fixed deposits with bank etc. which provides fixed and assured returns.

III) Segment-wise performance.

The primary segment of the Company mainly consists of investments & trading in quoted and unquoted equities broking or sub-broking. The Company operates only in India which is the only reportable geographical segment. There being no secondary reportable segments no segmental information has been provided.

IV) Outlook.

Stock market ended financial year (FY) 2018-19 on a stellar note thanks to a sharp rally in March after weak global cues and IL&FS crisis during the second half of the fiscal dented the investor sentiment in a big way. The S&P BSE Sensex rallied 17 per cent in FY19 while the broader Nifty 50 index of the National Stock Exchange (NSE) gained 15 per cent. Out of this 7.23 per cent gain in Sensex and 6.99 per cent in Nifty came in March alone.

Going forward equities are likely to maintain their upward trajectory and touch new highs; however intermittent volatility due to general elections occasional profit booking global developments such as Brexit central banks policy decisions and oil prices cannot be ruled out.

V) Risks and Concerns.

Industry is always facing the risk of adverse effects on business on account of external factors. The capability of execution and completion of mandates remains a challenge on account of various factors. Many mid-market participants to cope up with fast growing and changing landscape in the financial market.

The business of the Company may be affected by factors affecting capital markets such as price and volume volatility Interest rates currency exchange rates foreign investment government policy changes political and economic developments and economic performance abroad.

VI) Recession

It looks like India is heading for a Recession. But here we are Recession in India is a certainty. The second quarter will have negative GDP growth. Future does not look good for India. Globally things dont look rosy as well. Chances of a global recession cannot be ruled out. The uniqueness with India however is last time the recession occurred in the country was in the late eighties when some of you were not even born or were in diapers. India had untethered growth from last 30 odd years unlike United States which has experienced 5 recessions in the last 30 years. The last recession in USA was the most severe. It happened in 2008 2009 and snowballed into a global financial crisis.

Since the current generation in India has not seen a recession they have no clue of what how when where to do to tackle this economic depression.

You have to be extremely succinct precarious pragmatic and hardcore to weather a recession because you are stuck between a rock and a hard place. Opportunities leads sales growth etc. all dwindle during a recession. The worst part is the uncertainty that is created in the markets plays on your mind too. People lose their jobs companies go belly up and small business suffer due to lack of traction. Liquidity in the market is nonexistent and so banks stop giving Loans giving rise to multiple defaults. This has a domino effect on industries markets and different sectors. In economic terms this is what we term as economic depression. There are various mitigating factors that cans be adopted like fiscal stimulus or monetary stimulus that the government can try to bail people out of this but unfortunately India does not have enough reserves foreign or domestic to accomplish this.

At the end of last year. India was still the worlds fastest growing major economy. It has since surrendered that title back to China and its slump only appears to be getting worse.

Gross domestic product growth fell to a five-year low of 5.8% in the first quarter of 2019 and economists surveyed by Reuters predict data due Friday will show another drop in the second quarter. Indias automotive industry has already shed hundreds of thousands of jobs and consumer goods companies like Unilever (UL) are reportedly slashing prices because of slowing demand.

"It is definitely a slowdown" and the situation is “grave."

The government has scrambled to boost the economy. Last week India unveiled tax breaks for startups cheaper home and car loans and an injection of 700 billion rupees ($9.8 billion) into state-run banks among other measures.

A few days later it followed with an announcement that rules on foreign investment would be eased opening up Indias huge coal industry. It also said it would relax local sourcing regulations that have blocked companies like Apple (AAPL) and other global retailers from opening stores.

But those short term solutions may not do enough to address deeper concerns about Indias economic health.

"These are what I would call slightly quicker fixes for boosting growth" Without other changes they risk a spike in inflation if demand outpaces supply.

One of Indias most urgent needs is to reform its labor market.Changes in labor rules that would make it easier to hire and fire workers — touted since Prime Minister Narendra Modi was first elected in 2014 have not happened.

Meanwhile unemployment is at its highest level in decades.

"Possibly the government is looking for quick fixes and [foreign investment] seems like a very quick fix but its not going to solve the long-term problem.

Hang in there the turbulence and uncertainty has just started. Tighten your belts build your personal reserves and weather this storm. My experience from the last 5 recessions has taught me to be resilient and ruthless during these tough times. Hope it will work-for everyone as well.

VII) Internal Control System.

The Company being in existence as broking- sub broking trading and investment company since past twenty-five years. The Company has developed well internal control systems to conduct its business within the framework of Regulations. The present structure & systems are adequate and commensurate to the size of operations of your company.

VIII) Discussion on financial performance with respect to operational performance.

The operation basic business activities of the company are investment and trading in quoted and unquoted equities broking. The Company has not done any broking activity during the year and its main income come from sale of shares (unquoted) and dividend. Company has one subsidiary private limited company named “Siddha Midcity Private Limited (CIN-U70102WB2015PTC205646). The main object of the subsidiary Company is investment in real estates and other related business.

IX) Material developments in Human Resources/Industrial Relations front including number of people employed.

The employee strength of the company and its subsidiary is two. The company has already put in adequate processes facilities infrastructure and environment enabling the employees to function in an appropriate manner. There are no significant developments in this regard during last financial year except resignation of Mr Kama) Bhatra as C.F.O. of the company and appointment of Ms. Varsha Banthia as C.F.O of Company.

DISCLOSURE OF ACCOUNTING TREATMENT

Your company follows Accounting Standards as prescribed by Institute of Chartered Accountants of India (ICA) for preparation of financial statements; there is no other such different treatment followed for the same.

Date: 24th May 2019 For and on behalf of the Board
Place: Kolkata Laxmipat Sethia
Managing Director