Warner Multimedia Ltd Management Discussions.

MACRO ECONOMIC ENVIRONMENT

Projecting a growth rate of 7.5 percent for 2015-16, the World Bank suggested that India should step up economic reforms and encourage domestic companies to become "globally competitive".

"GDP growth (at market prices) is expected to accelerate to 7.5 percent in 2015-16 reaching 8 percent in 2017-18. Acceleration in growth is conditional on the rate of investment picking up to 11 percent during FY16 to FY18. Recognising the governments efforts, the Update said it has embarked on an "energetic progress" in several policy areas and the pace of these efforts would need to be maintained or even stepped up to unleash the productivity and scale enhancement needed for the Indian firms to become "globally competitive".

The World Bank said the Indian economy has been on the upturn in the past three quarters -- growth accelerated, inflation declined, the current account deficit narrowed and external buffers replenished.

REVIEW OF OpERATIONS & SEGMENTAL pERFORMANCE

Gross Sales/Revenue for the year was stood at 22.21 lakh in comparison to last financial years revenue of 8.12 lakh. In term of Net Profit/(Loss), the Company has suffered net loss of (14.83) lakh in comparison to last years loss of (15.08) lakh.

BUSINESS SEGMENT

Virtually there were no business activities during the year under review apart from few transactions which have been carried out in Shares & Securities, thus there is no reportable Segment as required under AS17 issued by the Institute of Chartered Accountants of India.

OppORTUNITIES

After a dip from almost 8% in FY16 to an estimated 6.7% in FY17, the Reserve Bank of India (RBI) projects real gross domestic product (GDP) growth to pick up to 7.4% in FY18, similar to the market consensus of about 7.5%. I, however, believe that real GDP growth is likely to remain unchanged at 6.8% in FY18 (estimate for FY17 is also 6.8%), with downside risks.

Lower government spending and wider—though not concerning—current account deficit (CAD) could entirely offset the expected pick-up in private spending. Possible disruption due to implementation of goods and services tax (GST) could temporarily have an impact on tax revenue, further curtailing government spending, and thus, GDP growth.

THREATS & CONCERNS

Against the backdrop of robust macro-economic stability, the year was marked by two major domestic policy developments, the passage of the Constitutional amendment, paving the way for implementing the transformational Goods and Services Tax (GST), and the action to demonetise the two highest denomination notes. The GST will create a common Indian market, improve tax compliance and governance, and boost investment and growth; it is also a bold new experiment in the governance of Indias cooperative federalism. Demonetisation has had short-term costs but holds the potential for long term benefits. Follow-up actions to minimize the costs and maximise the benefits include: fast, demand-driven, remonetisation; further tax reforms, including bringing land and real estate into the GST, reducing tax rates and stamp duties; and acting to allay anxieties about over-zealous tax administration. These actions would allow growth to return to trend in 2017-18, following a temporary decline in 2016-17. Looking further ahead, societal shifts in ideas and narratives will be needed to overcome three long-standing meta-challenges: inefficient redistribution, ambivalence about the private sector and property rights, and improving but still-challenged state capacity. In the aftermath of demonetisation, and at a time of gathering gloom about globalisation, articulating and embracing those ideational shifts will be critical to ensuring that Indias sweet spot is enduring not evanescent.

HUMAN RESOURCES

The Company recognizes that its success is deeply embedded in the success of its human capital. During 2016-2017, the Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce. The employee engagement initiatives included placing greater emphasis on learning and development, launching leadership development programme, introducing internal communication, providing opportunities to staff to seek inspirational roles through internal job postings, streamlining the Performance Management System, making the compensation structure more competitive and streamlining the performance-link rewards and incentives.

CORpORATE SUSTAINABILITY AND SOCIAL RESpONSIBILITY

The provision of the Section 135 and Schedule VII of the Companies Act, 2013 as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 effective from April 1, 2014 relating to CSR Initiatives are not applicable to the Company.

COMpLIANCE

The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company is continued to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis.

The Company has complied with all requirements of regulatory authorities. No penalties/strictures were imposed on the Company by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last three years.

Kolkata, May 30, 2017 By order of the Board
For Warner Multimedia Limited
Registered Office : Jagdish prasad purohit
P-27, Princep Street, 3rd Floor (DIN : 00083125)
Kolkata-700 072. Chairman & Managing Director