MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OUTLOOK

India is the world's largest democracy in terms of population with Gross Domestic Production (GDP) of US$ 4,060 billion in 2010 in purchasing power parity (PPP) terms. This makes India the fifth largest economy in the world after the European Union, the United States of America, China and Japan in PPP terms, (Source: CIA World Fact book). India is also amongst the fastest growing economies globally and its real GDP has grown at an average compounded rate of 8.4% per annum during the last five years up to FY 2011. (Source- Central Statistics Office, Government of India). India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year on-year in real terms. Merchandise exports, which account for about 15% of GDP, returned to br-financial crisis levels. An industrial expansion and high food prices, resulting from the combined effects of the weak 2009 monsoon and inefficiencies in the government's food distribution system, fueled inflation which peaked at about 11% in the first half of 2010, but has gradually decreased to single digits following a series of central bank interest rate hikes. In 2010 New Delhi reduced subsidies for fuel and fertilizers, sold a small percentage of its shares in some state-owned enterprises and auctioned off rights to radio bandwidth for 3G telecommunications in part to lower the government's deficit. The Indian Government seeks to hold its budget deficit to 5.5% of GDP in FY 2010-11, down from 6.8% in the brvious fiscal year. India's long term challenges include widesbrad poverty, inadequate physical and social infrastructure, limited nonagricultural employment opportunities, insufficient access to quality basic and higher education, and accommodating rural-to-urban migration. (<https://www.cia.gov/library/publications/the-world-factbook/geos/in.html>)

The Indian Textiles Industry has an overwhelming brsence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a vital role through its contribution to industrial output, employment generation, and the export earnings of the country. The sector contributes about 14 per cent to industrial production, four per cent to the gross domestic product (GDP), and 17 per cent to the country's export earnings. India's textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scope for the other ancillary sectors. Indian textile industry currently generates employment for more than 35 million people. The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to eight per cent and reach USS 80 billion by 2020.

India is primarily an agrarian country with 60 per cent of its population being dependent directly or indirectly on agriculture. The Indian agriculture sector has made considerable progress in the last few decades with its large resources of land, water and sunshine. India produces all major crops to meet the requirement of food, fodder, fibre, fuel and inputs for its agricultural industry. India is brsently the world's largest producer of pulses and the second largest producer of rice and wheat in the world. The country is also the second largest producer of sugar, after Brazil. Agriculture is expected to grow at 4.6 per cent in 2014. Agriculture production of food grains this year is expected to break the 2011-12 record of 259 million tonnes (MT). More importantly, agricultural profitability has increased over the last decade with record increases in MSPs (minimum support prices for agricultural produce) for all covered crops. MSP increase in the past 10 years, between 2004-05 to 2014-15, vary from about 125 per cent for foodgrains such as wheat and paddy to over 200 per cent for pulses like moong dal. India is also set to record the highest ever food grain production. The Government of India revised its estimate, stating that the country would collectively produce 264.28 MT of food grain as compared to 257.13 MT last year. Spice exports from India are expected to reach USS 3 billion by 2016-17, on the back of creative marketing strategies, innovative packaging, strength in quality and a strong distribution network. The Indian spices market is pegged at Rs 40,000 crore (USS 6.61 billion) annually, of which the branded segment accounts for 15 per cent. Basmati exports to countries such as South Africa, Egypt, Azerbaijan, Tanzania, Poland and Ukraine, among others, have more than tripled in the past three years. Overall exports as well as imports trade of important agricultural commodities is in increasing trend.

BUSINESS & FINANCIAL OVERVIEW

Your Company was originally incorporated in 1982 as Maharashtra Industrial Leasing & Investments Ltd. Your Company is involved in Investments, Trading & Distribution of Textile and Agro commodity products. During the year under review, the sales of your Company were Rs. 272.66 lakhs for the year ended 31st March, 2015 as compared to Rs. 186.08 for the brvious 9 months period ended 31st March, 2014.

The net worth of your company at the year end stands at Rs. 1,478 Lacs.

HUMAN RESOURCE

Your Company recognises the importance and contribution of its employees for its growth and development and constantly endeavors to train nurture and groom its people. Your Company puts emphasis on attracting and retaining the right talent and treats people as its assets. The faith of the management in the staff and their performance has enabled your Company to build up capabilities to expand our business.

INTERNAL CONTROL SYSTEMS & ADEQUACY

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordance's with management's authorization and properly recorded and accounting records are adequate for brparation of financial statements and other financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems. The management has put in place internal systems for review and monitoring of non-performing assets of the company and to indicate corrective action for effecting recoveries.

CAUTIONARY STATEMENT

Statement in the Management Discussion & Analysis, describing the company's objectives, projections and estimates are forward looking statement and progressive within the meaning of applicable laws & regulations. Actual result may vary from those exbrssed or implied. Important developments that could affect the company's operations are significant changes in political and economic environment in India, tax laws, regulations, exchange rate fluctuation, dependence on certain businesses, availability of goods, material & labour and other factors.