Zodiac Ventures Ltd Management Discussions.

i) Economic Overview, Opportunities and Threats:

After strong growth in 2017 and early 2018, global economic activity slowed notably in the second half of last year, due to a confluence of factors affecting major economies. According to The World Economic Outlook (WEO) update, global growth is estimated to be at 36 percent in 2018 but signs of a slowdown in the second half of 2018 have led to downward revisions for several economies. The global economy is projected to grow at 3.3 percent in 2019 and 3.6 percent in 2020. This growth pattern reflects a persistent decline in the growth rate of advanced economies together with a temporary decline in the growth rate for emerging market and developing economies in 2019 due to the impact of trade actions on China and other Asian economies.

ii) Segment-wise analysis:

Revenue of the Company is generated from providing Architectural and Consultancy Services in Real Estate Sector.

iii) Outlook:

According to a report by CREDAI and JLL India, the Indian real estate sector is projected to reach a market size of $180 billion by 2020, a sharp rise from $126 billion in 2015. The housing sectors contribution to the Indian GDP is expected to almost double to more than 11% by 2020 up from an estimated 5-6% today. Fragmentation is high at a national as well as city level. Demonetization with RERA has triggered consolidation. Developers with a scalable business model are better placed to grow market share in a regulatory environment that demands greater accountability and transparency from developers.

iv) Opportunities and challenges

While the management of your Company is confident of creating and exploiting the opportunities it is faced with unfavorable changes in the government policies and the regulatory environment can adversely impact the performance of the sector. There are substantial procedural delays with regards to land acquisition, land use, project launches and construction approvals. Retrospective policy changes and regulatory bottlenecks may impact profitability and affect the attractiveness of the sector and companies operating within the sector.

v) Internal Control Systems

The Company has an adequate Internal Control System commensurate with size and nature of its business to safeguard all assets and to ensure their efficient productivity. The Company has continued to keep focus on processes and controls. The Company has a suitable internal control system for the business processes, operations, financial reporting, compliance with applicable laws and regulations. Wherever deemed necessary, internal control systems are also reassessed and corrective action is taken, if required.

vi) Financial performance

In spite of a repressed economic development, your Company performed reasonably well.

vii) Material Developments in Human Resources/Industrial Relations

The affordable housing segment is expected to continue to drive the real estate sector in 2018 with several developers and institutional funds eyeing opportunities in this space. The end user demand in this segment along with the governments thrust through incentives such as granting infrastructure status is ensuring a rising appetite for such projects across the country.

viii) Cautionary Statement

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations, may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.