MANAGEMENT DISCUSSION AND ANALYSIS

General Scenario

According to the World Bank, global GDP actually grew at 2,6 pet cent in 2014 after growing at 2.5 percent in 2013. While die World Bank's earlier projection for 2014 was 3.2 per cent, the growth momentum failed to pick up in several developed and developing nations during the second half of 2014, The World Bank expects die global growdi rate for 2015 to be 3.0 percent. The estimates by International Monetary Fund (IMF) are slightly more optimistic than that of World Bank. IMF expects global economy to grow by 3.5 per cent in 2015 and by 3.8 per cent in 2016.

In a bid to make India's GDP data more accurate, relevant and globally comparable, a new series of GDP data has been released where the new base year is 2011-12 instead of 2004-05 used earlier. Previously, India's GDP implied GDP at factor cost, but from now onwards die calculation will be on the basis of globally accepted GDP at market prices. India's revised GDP growth rate now stands revised upwards ai 5.1 per cent (from 4,7 per cent) for FY13 and 6.9 per cent (from 5.0 per cent) for FY14, This year's Economic Survey suggests that GDP growth for FY15 is likely to be 7,4 per cent. In FY16, the growth rate is likely to go up further to anything between 8.1 - 8.5 per cent making India world's fastest growing large economics. IMF also expects India to overtake China in terms of growth rate in 2016. The Government of India has been successful in containing inflation and the low oil prices are unlikely to put any upward brssure on inflation. RBI has initiated the cutting of policy rate which is expected to stimulate investment. However, the central government believes in setting in motion the investment cycle by itself by channelizing invcsnnents in infrastructure projects. The government is working towards restarting the stalled projects and at the same time is trying to ensure that any new borrowing is only for capital expenditure. The government is also focusing on reducing leakages in subsidies and social expenditures.  government has initiated a number of measures towards casing the business climate and expects private investment to pick up soon. Controlled inflation, a stable currency, the economy's resilience, coupled with Indian government's ability to adhere to fiscal targets and a willingness to implement economic reforms, have resulted in increased investor attention. In FY15, till January 2015, India has been able to attract foreign direct investment (FDI) to the tune of USD 26 billion. Also, India has received tecord investments to the tune of USD 43.5 billion from foreign institutional investors (FIIs) till mid-March 2015. Of this, USD 26.3 billion has been invested in debt, while equities absorbed USD 17.2 billion.

Government has to work towards creation of an enabling environment whereby both domestic and foreign funds can be mobilized 42 into infrastructure. Keeping in mind die constraints of (he banking system, special efforts are to be made in attracting foreign capital.

Segment wise or Product wise performance

At brsent die Company is carrying out its operations in only one segment namely, Finance & Investment.

Opportunities & Threats

At this juncture India is fortunately at a 'sweet spot' due to a number of domestic and international factors. The government realizes how crucial it is now to improve die ease of doing business in India in order to take advantage of the situation. To diis end, a number of steps have been taken through die Union Budget 2015-16. Basic corporate tax rate is being reduced from 30 per cent to 25 per cent over the next 4 years. The General Anti Avoidance Rules (GAAR) stand deferred by another two years which will address some of the concerns of the foreign investors. Afocused effort is being made to cut down rcd-tapism by creating an expert committee which is to draft a legislation where need for multiple prior permissions will be replaced by a br-existing regulatory mechanism is a huge plus for all businesses. Sorting up of a Task Force to develop a sector neutral financial redressed agency has also been proposed which will address grievance against all financial service providers. A new combrhensive Bankruptcy Code will be put in place by FY 16 that will meet global standards.

Outlook. Risks & Concerns

The Company is exposed to specific risks that are particular to its businesses and the environment within which it operates, including capital market volatility, economic cycle, and credit risk. The Company manages these risks by maintaining a conservative financial profile and by following prudent business and risk management policies.

Internal Control Systems

The Company has set in place adequate systems and procedures to effectively run and manage its operations.