T. Spiritual World Ltd Management Discussions.

Pursuant to Listing Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 aligned with Companies Act, 2013, the Management Discussion & Analysis Report for the year under review is given below;

Background

The Management Discussion and Analysis Report sets out the developments in the business, the Companys performance since the last Report and the future outlook. This Report is part of the Directors Report and the Audited Financial Statements, forming part of the Annual Report. However, certain statements made in this Report relating to the projections, outlook, expectations, estimates, etc, may constitute "forward looking statements" within the meaning of applicable laws and regulations and may differ from actual. Several factors could make a significant difference to the Companys operations, including climatic conditions, economic conditions affecting demand and supply, government regulations, revision in government policies, taxation and natural calamities over which the Company does not have any control.

India in Global Market

India is presently known as one of the most important players in the global economic landscape. Its trade policies, government reforms and inherent economic strengths have attributed to its standing as one of the most sought after destinations for foreign investments in the world. Also, technological and infrastructural developments being carried out throughout the country augur well for the trade and economic sector in the years to come.

Market Scenario

Indias total outward shipments were $303.5 billion in 2017-18. The all-time high is $314.4 billion posted in 2013-14. March exports are expected to be above $30 billion, buoyed by strong performances by engineering and pharmaceuticals sectors. Services exports are likely to cross $200 billion in FY19, taking overall exports to over $500 billion.

Commerce and industry minister Suresh Prabhu is confident of Indias exports touching new heights this year. "This happened because we had our sectoral strategy, an institutional mechanism a product-geography matrix,"

As per official data, Indias overall exports (merchandise and services) in April-February 2018-19 were estimated to be $483.98 billion, exhibiting a growth of 8.73% over the year-ago period.

Exports have been hit by the muted growth of traditional exports such as gems and jewellery, farm and engineering as well as liquidity crunch stemming from the goods and services tax, and global factors.

The healthy growth in exports comes at a time when the World Trade Organization has cut global trade forecast to 2.6% in 2019 from 3% in 2018.

"World trade will continue to face strong headwinds in 2019 and 2020 after growing more slowly than expected in 2018 due to rising trade tensions and increased economic uncertainty," WTO said. The multilateral trade watchdog attributed slow trade growth in 2018 to new tariffs and retaliatory measures affecting widely-traded goods, weaker global growth, volatility in financial markets and tighter monetary conditions in developed countries, among others."

Market Environment

T. Spiritual World Limited is engaged in the business of trading in commodities and its allied products and dealing in other concern activities with an excellent track record of growth in the Indian domestic market. The Company adherence to strong business ethics and transparent corporate policies, with a stable

political environment, this is probably the most conducive period for a steady pace of implementation of policy reforms.

Review of Operation

The Company operates mainly in Indian Market. The management of T. Spiritual World Limited presents the analysis of performance of the Company for the Financial Year 2018-19 and its outlook for the future. This outlook is based on assessment of the current business environment. It may vary due to future economic and other developments. The Company has managed to maintain a growth trajectory in its financial performance in the current year. During the year under review, the Company achieved the total revenue of Rs. 14,07,305/-.

Business Segment

The Company is into the business of Trading in Commodities and its allied product. The Company operates mainly in Indian Market.

Opportunities and Threats Opportunities

a) Favorable Government regulations

b) Favorable macro-economies and micro-economies conditions

c) Niche for growth

Threats

a) Imports from China and other cost effective labour countries

b) Competition in the Indian market from large traders

c) Geographically located in East India and presently not covering pan India

d) Increase cost of operations

e) Increase in cost of logistics

Risk and Concerns

Uncertainties in business offer opportunities and downside risks. Consequently, the Company recognizes the importance of well-structured system to identify and manage the different elements of risk.

Pressure on margins, high manpower and infrastructure cost, availability of substitutes , higher overheads, are some factors which could impact adversely especially as we strive to tap into the competitive markets.

Basis of preparation and presentation of our Financial Statements

The Financial Statements have been prepared and presented under the historical cost convention, unless otherwise specifically stated, on the accrual basis of accounting and comply with the applicable accounting standards referred to in the Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

Internal Financial Control and their Adequacy

The Company has in place well-defined internal control mechanisms and comprehensive internal audit programs with the activities of the entire organization under its ambit.

Human Resources

Human Resources Development envisages the growth of the individual in tandem with the organization. It also aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance.

Your Directors want to place on record their appreciation for the contribution made by employees at all levels, who through their steadfastness, solidarity and with their co-operation and support have made it possible for the Company to achieve its current status

The Company, on its par, would endeavor to tap individual talents and through various initiatives, ingrain in our human resources, a sense of job satisfaction that would, with time, percolates down the line. It is also the endeavor of the Company to create in its employees a sense of belonging, and an environment that promotes openness, creativity and innovation.

Material Developments in Human Resources

Our professionals and employees are our most important assets. We believe that the quality and level of service that they deliver is a huge contributing factor in growth and development of the Company. Further, for better management certain alterations were made in the top management and other hierarchies in the Company.

Discussion of Financial Performance

Directors of your Company are very hopeful to build up the performance of the company and post better results in the forthcoming financial year and to add value to the shareholders. The Company is hopeful of improving its turnover and bottom line and hopeful of posting better revenue ahead. Financial Highlights with respect to Operational Performance is as under:

(Amount in ?!

Particulars 2018-19 2017-18
Profit Before Tax (1,46,00,391) (45,966,813)
Profit after Tax (1,48,35,866) (45,515,321)
Earning Per Share (0.74) (2.28)

Details of Significant Changes: -

Particular F.Y. 18-19 F.Y. 17-18 Reason
1 Debtor Turnover Ratio (Months) - 50.37 Due to NIL revenue from Operations.
2 Inventory Turnover Ratio - - Not Applicable
3 Interest Coverage Ratio - - Not Applicable
4 Current Ratio 134.68 36.46 Due to provisions in previous year which were paid in current year. Almost 77% provisions were in excess as compared to the current year.
5 Debt Equity Ratio - - Not Applicable
6 Operating Profit Margin % 0.00% 83% Due to NIL revenue from Operations. Calculation excludes exceptional items, taxes and finance cost
7 Net Profit Margin % 0.00% 110% Due to NIL revenue from Operations. Calculation excludes exceptional items
8 Return on Networth -22.60 2.33 Due to reduction in Losses in current year w.r.t. exceptional items as compared to previous year.

Cautionary Statement

Statements made in the Management Discussion and Analysis Report describing the Companies objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed in the statement important factors that influence the Companys operations, include global and domestic supply and demand conditions. We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward looking statements that speak only of their dates.