MANAGEMENT DISCUSSION AND ANALYSIS The Company is engaged in a single segment, namely, real estate development. 1. INDUSTRY STRUCTURE AND DEVELOPMENTS India's real estate market is currently the fourth-largest sector in the country in terms of foreign direct investment (FDI) inflows. FDI in the sector is estimated to grow to US$ 25 billion in 10 years. The Government of India has allocated US$ 1.3 billion for Rural Housing Fund. The entry of major private players in the education sector has created vast opportunities for the real estate sector. Emergence of nuclear families and growing urbanization has given rise to several townships that are developed to take care of the elderly. In addition to being the second major contributor to the GDP, the Real Estate sector is also amongst the fastest growing sectors. Ahmedabad real estate market is healthier; an affordability of housing against many other expensive metro cities is a key reason to support this claim as well. 2. OPPRTUNITIES & OUTLOOK Keeping in mind the factors like rising income level of people, people of all age group interested in Real Estate as an investment, brdicted growth in the manufacturing and the service sectors, affordable housing taking pace etc, we believe that the year of 2015 will bring back the lost confidence and have a positive impact on the business environment of Real Estate. 3. RISKS, CONCERNS & THREATS The key challenges that the Indian real estate industry is facing today are: • lack of clear land titles, • absence of title insurance, • absence of industry status, • lack of adequate sources of finance, • shortage of labour, • rising manpower and material costs, • approvals and procedural difficulties 4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company maintains appropriate systems of internal control, including monitoring procedures, to ensure that all assets are safeguarded against loss from unauthorized use or disposition. Company policies, guidelines and procedures provide for adequate checks and balances and are meant to ensure that all transactions are authorized, recorded and reported correctly. The internal audit department together with a firm of Chartered Accountants reviews the effectiveness and efficiency of these systems and procedures to ensure that all assets are protected against loss and that the financial and operational information is accurate and complete in all respects. The Audit Committee approves and reviews audit plans for the year based on internal risk assessment. Audits are conducted on an ongoing basis and significant deviations are brought to the notice of the Audit Committee of the Board following which corrective action is recommended for implementation. All these measures facilitate timely detection of any irregularities and early remedial steps with no monetary loss. 5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Net revenue from operations for the year ended March, 2015 was Rs. 17.81 lacsrebrsenting decline of 72.41% over the brvious year. Profit before Tax for the year was 53.77 lacs rebrsenting an increase of 33.61% over the brvious year. 6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED There is no material development in human resources and industrial relations are cordial. The Company has employed 18 (Eighteen) people. 7. CAUTIONARY NOTE The statements forming part of the Directors' Report may contain certain forward looking remarks within the meaning of applicable securities laws and regulations. Many factors could cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements that may be exbrssed or implied by such forward looking statements. For and on behalf of Board Shri Vijay C Shah Chairman & Managing Director DIN: 0038062 Place: Ahmedabad Date: 29/07/2015 |