MANAGEMENT DISCUSSION AND ANALYSIS

Economic Overview with specific reference to Retail Industry:

India has always been regarded as a country of retailers. Its 550 billion US dollars market is still dominated by traditional retail with a share of 90% & modern retail's share at 9%. The highly disruptive online retail is less than 1% but growing at a very fast pace. By 2020 the Indian retail market will reach a size of 1150 billion US dollars, with online contributing almost 45 billion US dollars.

Overview of the Sector & Business:

The Saree market is huge, unorganized and growing at an incredible rate. The 5000 year old apparel has seen rise and fall of regimes and has dominated the apparel market not even in toughest of economic downturns (recession) but has also been growing strongly ever since. As per leading researches Saree market size in India is Rs. 73000 crore and the Indian women wear industry will grow at a CAGR of around 13% during 2014-2016.Clothing and fashion retailing is the second largest contributor to the Indian retail market with a share of 8%. In the organized retail market, clothing and fashion retailing is the largest and the most penetrated segment.

Strengths:

• Experienced management team which we believe provides us with the requisite skills and execution capabilities to achieve the Company's growth aspirations.

• Improved efficiency of working capital management.

• Strong retailers and customer connectivity

Opportunities:

Your Company focus on "Traditional and Modern Fashion" and catering to varied apparel and non-apparel needs of consumers in a retail environment. SSK Lifestyles is constantly focusing on latest trends in fashion and clothing styles. SSK Lifestyles operates as an importers and exporters, whole-saler and retail dealers of women's, men's and children's clothing and wearing apparel and readymade, hosiery goods, garments of every kind. Your Company's aim is to build up knowledge, capital and human resources to wholesale and retail trading of Sarees, Kurthis and other apparels facilitating constant revival of products in innovative ways that will enable guaranteed success for us.

Threats:

Economic slowdowns have a direct impact on consumption. Retail, being the end service provider of consumption in the supply / value chain, is bound to face difficulties in an environment of economic slowdown.

With India continuing to be an attractive retail market, the Company expects many new entrants into the sector, thus increasing competition. However, excellent customer service levels, competitive product offerings & capability of its management team to execute the business operations & expansion are the few factors amongst many which would certainly help the Company to retain its market share.

Development, Expansion & Future Outlook:

Your Company will continue to invest wherever it seems an opportunity to get healthy sustainable results. Our performance largely depends on the Retail market. Your Company is concentrating at streamlining its current business activities which will allow for greater operational efficiency in future. Providing quality products at a great value has always been our Endeavour. Your Company will take this endeavour a notch upwards by enhancing its business activities. Our clients include stockists, wholesalers, semi-wholesalers, retailers and end-users of retail products. Having said so, we would like to explore the market in the near-term.

Future plans and Outlook:

• Leveraging resources to deliver innovative and successful product portfolio

• To bring in efficiency through consistent and continuous improvement process throughout all the levels in the

Organization.

• Todevelop a Customer Centric approach

• Todevelop a Strong Marketing Network

Internal Control Systems and their Adequacy:

The Company has a proper and adequate internal control system to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorised, recorded and reported correctly. The internal control is exercised through documented policies, guidelines and procedures. It is supplemented by an extensive program of internal audits conducted by in house trained personnel. The audit observations and corrective action taken thereon are periodically reviewed by the audit committee to ensure effectiveness of the internal control system. The internal control is designed to ensure that the financial and other records are reliable for brparing financial statements and other data, and for maintaining accountability of persons.

Discussion on Financial Performance:

During the fiscal year 2014-15 your Company recorded total income of Rs.81.10 Lakhs and net loss of Rs. 44.48 Lakhs as compared to the total income of Rs. 39.43 Lakhs and a net loss of Rs. 33.21 Lakhs for the brvious financial year.

Human Resources/Industrial Relations:

The Company's HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Industrial relations are cordial and satisfactory.

Cautionary Statement:

Statements made herein describing the Company's expectations or brdictions are "forward-looking statements". The actual results may differ from those expected or brdicted. Prime factors that may make a difference to the Company's performance include market conditions, input costs, govt. regulations, economic development within/outside country etc.

By Order of the Board

SD/- K Ratnakara Rao

Chairman of the meeting

Hyderabad, 31st August, 2015