MANAGEMENT DISCUSSION AND ANALYSIS REPORT Industry Structure, Developments, Opportunities and Threats: The real estate sector continues to grow at a scorching pace. With the entering of new global property developers into Indian market during the past few years, India offers a good opportunity in the real estate sector. Future of real estate sector is very bright as the economy is at a fast pace of growth and lot of investment in this sector is needed. Moreover, with the increase in income level of people and standard of living the demand of housing as well as industrial/ commercial sector has increase manifold giving rise in prices. Due to Increase in competition from other players in the market the margins of the company may be under brssure. Financial Performance of the Company Revenue of the Company is generated from only one segment namely Development of Real Estate. Income of the company has been at Rs.1381.20 lacs. The company has earned profit of Rs.174.21 lacs. Outlook The real estate sector in India has provided ample opportunity with the liberalization of the economy. With the increased demand of commercial and residential property, the company is confident that the ever-expanding market for real estate shall provide a good business opportunity to the Company to gain its share in the market. Risk and Concerns The Indian Real estate market is still largely unorganized and dominated by a large number of small players. The operations of your company are subject to general business risks and competition in the industry, which can affect the growth of the company. Internal control and their adequacy The company has adequate internal control systems and procedures commensurate with the size and nature of business. The Company has proper system of disposal of assets of the company. Significant financial, managerial and operating information is accurate, reliable and is provided timely. All internal policies and statutory guidelines are complied with. Material development in Human Resources and Industrial Relation front, including no. of people employed. Industrial relations remained cordial and harmonious during the year under review and there was no working day loss due to any adverse activities. The company has not employed any new person during the year under review. Cautionary statement Statement in the management discussion and analysis describing the company's objectives, estimates, projections and expectation may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially due to economic conditions effecting demand, supply, prices, change in government policies, tax laws and other incidental factors. By Order of the Board For Ritesh Properties and Industries Limited sd/- (Sanjeev Arora) Chairman-Cum-Managing Director DIN: 00077748 Place: New Delhi Date : 30.05.2016 Hampton Court Business Park, NH 95, LDH-CHD Road, Ludhiana-141123 |