MANAGEMENT DISCUSSION AND ANALYSIS

Your Company is one of the leading real estate Company in Pune. In the short span of its Real Estate development activities, the Company has earned a reputation for quality construction of high-end projects.

i. Industry Structure, Developments and Outlook

The scenario in India is encouraging in view of government’s policies which will promote employment and growth of real estate sector. The Government is undertaking various steps to energies this sector and provide it with the much needed push to accelerate growth.

ii. Opportunities and Threats

The outlook for real estate sector for short term remains uncertain. High interest rates continue to impact the business of real estate. Banks/Financial Institutions have become cautious towards issuing fresh loans or rescheduling debt to real estate companies. Thus, liquidity is a major factor for determining overall project execution.

In view of government’s policies the long-term factors are likely to work in favour of the real estate developers.

iii. Segment Wise Performance

Your Company has only single segment i.e. Construction and Real Estate Development. Revenue and expenses have been identified on the basis of accounting standard and guidance note issued by Institute of Charted Accountant of India for this sector.

iv. Risks and Concerns:

The Company can be exposed to various risks if not identified and addressed in time. Your Company has taken steps for identification and assessment of risks and measures to mitigate them.

v. Internal Control Systems and their Adequacy

The Company has a well defined organization structure, documented policy guidelines, brdefined authority levels, and an extensive system of internal controls system. An independent internal audit firm appointed by the Company conducts audits to ensure adequacy of internal control systems, adherence to management policies and compliance with the laws and regulations.

vi. Financial Performance

During the year under review Company’s operational income is Rs. 1,111.90 lacs (brvious year Rs. 3,846.48 lacs)and other income is Rs.5.28 lacs (brvious year Rs.5.59 lacs). Company has incurred loss of Rs. 693.75 lacs. In the brvious year the Company has reported a profit of Rs. 235.05 lacs.

vii. Material development in Human Resources

Your Company firmly believes that success of a company comes from good Human Resources. Employees are considered an important asset and key to its success. The employee relations continued to be satisfactory.