SVC Resources Ltd Management Discussions.

The Company is into the business of trading and consultancy. The key issues of the Management Discussion and Analysis are given hereunder:

a) Industry Structure and Developments

The Mining industry in India is a major economic activity which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to thousands of individuals.

India has long been recognized as a nation well endowed in natural mineral resources. India is ranked 4th amongst the mineral producer countries on the basis of volume of production It is an extremely important sector and contributes significantly to our Gross Domestic Product.

b) Opportunities & Threats

The strength of a company is known from sound advices. It also depends on the Government policies of taxation. Introduction of GST may give a big boost to the market.

The Indian mining industry however is passing through a critical phase, especially in the last few years, witnessing negative growth. As mining is interlinked with industrial development, availability of raw material is of prime importance and as such, the pro-active role of union and state governments is called for to ensure an era of mineral development.

There are a number of unresolved policy issues, which deserve serious consideration by the union and state governments.

c) Outlook

SVC Resources Limited remains confident of the long term growth prospects & opportunities ahead of it in its business.

d) Segment wise or product wise performance

The Company is into single reportable segment only.

e) Risks and Concerns

Risk evaluation and management of risk is an ongoing process in the company.

f) Internal control system and adequacy

The system of internal control has been established to provide reasonable assurance of safeguarding assets, maintenance of proper accounting records in compliance with applicable Laws and Regulations to ensure reliability of financial statements and reports. The Statutory Auditors and the Audit Committee reviews all financial statements and ensure adequacy of internal control systems.

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

During the year under review, the Companys net profit after tax for the Financial Year ended March 31, 2019 stood at Rs. 6.96 lakhs as against net profit after tax of Rs. 48.18 lakhs in the previous year.

h) Details of significant changes in key financial ratios, along with detailed explanations therefor:

(i) Debtors Turnover Ratio:3.08 times

(ii) Inventory Turnover Ratio:Nil (No Stock)

(iii) Interest Coverage Ratio:Nil (no Interest)

(iv) Current Ratio: 10.65:1

(v) Debt Equity Ratio: -1.05:1

(vi) Operating Profit Margin (%): 35.06%

(vii) Net Profit Margin (%): 25.61%

i) Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof

RoNW (FY 2017-18): 7.59% RoNW (FY 2018-19): 11.82%

Return on Net Worth has increased during the financial year under review as compared to the previous financial year due to increase in turnover.

Cautionary Statement

Statements in the Management discussion and analysis describing the companys objectives, projections, estimates and expectations may be "forward looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and prices conditions in the domestic and overseas markets in which the company operates/ going to operate, changes in government regulations, tax laws and other statutes and other incidental factors.

For and on behalf of the Board
For SVC Resources Limited
Place: Mumbai
Date: August 14, 2019