Thomas Scott India Ltd Management Discussions.

The Indian economy began the financial year on a healthy note with more than 8% GDP growth in the first quarter. However, the growth rate hit a speed breaker and started a steady decline by first falling to 7.1% in Q2, then 6.6% in Q3 and finally touched a low of 5.8%

in Q4. Disruption has become a consistent feature of the Indian economy in recent years with some hiccup or other issues cropping up on a regular basis. First it was demonetization, then came the GST transition and now its the NBFC liquidity crisis. The sudden and shocking default by a few NBFCs has sent ripples across the financial system and it remains to be seen how and when this will stabilize. The unfortunate victim in this crisis is consumption as evidenced from falling sales of automobiles. Add to this, global factors like trade wars, Brexit, potential war mongering and we have a perfect recipe for an extremely dynamic and uncertain environment to operate in. Having said this, the resilience of the Indian economy is truly remarkable as we still remain amongst the fastest growing major economy in the world with GDP growth of 6.8% in FY2019. With a stable government, we all look forward to a phase where policy initiatives start bearing fruit and all major setbacks now become a thing of the past.

Industry:

A lot of macro data can be given about the size and growth potential

of the domestic apparel industry that paints a rosy picture in the long term, but many times these statistics fail to convey the immediate ground reality. E.g. statistically the domestic apparel industry has been growing at a rate of 13.8% CAGR from FY2010 to FY2018 and has been estimated at 5,408 billion. But its difficult to relate to this growth and size when most companies have experienced slowdown over the past few years. The reality is that it is difficult to measure the Industry size due to large presence of unorganized producers where the data is not adequately recorded and estimates are formed based on final consumption patterns. While the overall apparel market has shown good growth, branded apparel has to face some unique market conditions as various markets in the country evolve. The metro and urban markets have obviously been the first to move towards "branded" apparel with higher incomes, changing lifestyles and fashion awareness. But these markets are today over crowded with brands and all fighting to get the consumers attention and wallet-share. Add to this high real estate prices and operating costs and the prospect of achieving profitable growth in these mar kets becomes a real challenge.

FINANCIAL OVERVIEW Sales

During the year under review, the Company achieved revenue of Rs. 2161.77 Lacs as against Rs. 2045.61 Lacs in previous year.

Earnings Before Interest, Depreciation & Tax (EBIDT)

During the financial year, the EBIDT was Rs. -177.05 Lacs as against EBIDT of Rs. -101.74 Lacs for the corresponding previous financial year.

Net Profit after Tax

During the financial year, Company has incurred a Net Loss after tax of Rs. 121.67 Lacs as against Net Loss after tax of Rs. 74.40 Lacs for the corresponding previous financial year.

OUTLOOK

Lately during the Financial Year 2018-19, your company has started a small workshop at Solapur on a pilot basis for manufacturing Garments. Your directors are of the view that if it is found to be

promising, Company would invest its time and resources more and make the workshop into proper manufacturing facility to extract best output and increase profitability of the company.

Your Company plans to continue the retail expansion program more

aggressively. Investment in brand building activities and sharpening brand imagery will also continue in addition to expanding the distribution reach and penetration in selected markets and product categories. The Company has already put in place a network of high quality vendors and a robust sourcing and quality structure and process, to ensure consistent and timely delivery of products as per the high quality and specifications requirements.

OPPORTUNITIES

1. Immense growth Potential for Domestic and International Market.

2. Market is gradually shifting towards Branded Readymade Garment.

3. Favorable FDI Policy encouraging investment in Indian retail.

4. Large and diversified segment that provide wide array of

products

5. Emerging Retail industry and Malls provide huge opportunities for the apparel, Handicraft and other segments of industry.

6. Development of supply chain improving efficiency THREATS

1. Competition from other developing countries, especially China.

2. To make balance between price and quality

3. Presence of many unorganised players

4. International labor and Environmental Laws

5. Continuous quality improvement is need of the hour as there are different demand patterns all over the world.

ENVIRONMENT & SAFETY/NATURE & SECURITY

Your Company is highly committed to environment friendly processes and operations. Therefore, it undertakes its operations in such a manner that it does not affect the Environment in one hand and also maintains the required Environmental balance in the other hand. The Company actively pursues safety and health measures continuously Your Company has always ensured the Environmental Safety, complied with the various Environmental Laws from time to time and further commits to follow the same in future.

HUMAN RESOURCE- THE BIGGEST COMPETITIVE EDGE

The total numbers of employees of the Company as on March 31, 2019 were104.

Your Company believes that its Employees are the backbone of the

Company and the reason behind the position of your company are its Employees. The Company is in a continuous process of evaluating, training, motivating and rewarding its employees for their unstinted performance and contributions to the Company so that the Company also receives the same in future also. The focus of all aspects of Human Resource Development is on developing a superior workforce so that the organization and individual employee can accomplish their work goals of service to customers. CAUTIONARY STATEMENT

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectation of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand-supply conditions, finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts.

The Company assumes no responsibility in respect of the forward looking statements herein, which may undergo changes in future on the basis of subsequent developments, information or events.

DECLARATION UNDER SCHEDULE V OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015:

As per the requirements of Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,1, Brijgopal Bang, Managing Director, hereby declare that all the Board Members and Senior Management Personnel of the Company have affirmed compliance with the Companys Code of Business Conduct and Ethics for the Financial Year 2018-19.

Sd/-
Brijgopal Bang
Managing Director
(DIN: 00112203)
Place: Mumbai
Date: 30 th May, 2019