MANAGEMENT DISCUSSION AND ANALYSIS REPORT The management of Wellesley Corporation Limited is pleased to brsent its analysis report on its performance and future outlook. Industry Overview Structure Real Estate it is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. It comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The Indian real estate market size is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's gross domestic product (GDP). Recent Development • Relaxed foreign direct investment (FDI) • The Securities and Exchange Board of India (SEBI) has notified final regulations that will govern real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). • Amendments to the Real Estate (Regulation and Development) Bill, 2013 • Scrapping wealth tax. All these developments shall, boost the demand as well as supply of housing projects at an affordable price. SWOT Strengths Its Land bank under J.V Agreements and its management team putting their best efforts. Weaknesses Difficulties in raising finance, based on financials of the company. Opportunities Govt's endeavor to push economic reforms in terms of Land bill, GST Bills, RealEstate Bill will created demand in Real Estate Sector. Threats Huge supply of Residential & Commercial Space in coming years may further soften the prices, thereby making new projects financially unattractive. Future Outlook The Management of the company has been working very dedicatedly to monetize the funds wedged in the J.V Projects and under litigations, also working on the effective utilization of realized funds to enhance the shareholders wealth. Operational and Financial Performance The Financial Statement for the financial year ended on 31st March, 2015 have been brpared in compliance of the provisions of the Companies Act, 2013 and applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The Board of Directors accepts the integrity and objectives of these financial statements. Your company has recorded revenue of Rs 56.85 lacs in financial year 2014-15 as compared to Rs 111.44 lacs in financial year 2013-14, an overall decline of 49% .Profit before tax has decreased to Rs 0.43 lacs from Rs 8.93 lacs recorded in the last financial year. Profit after tax also reduced to a loss of Rs 247.40 lacs from the last year's profit after tax of Rs 4.39 lacs. Sudden increase in losses after tax is due to exceptional item of Rs 170.79 lacs which rebrsents the Loan & Advances written off being not recoverable & deferred tax adjustments. There is no reportable segment as per AS-17 as "Trading" is the main activity of the company during the year, therefore no segment wise disclosures are required. Internal Control Systems & Their adequacy The company has placed adequate and effective system of internal controls, which are wisely commensurate with the nature of business and its scale of operations. Reviews of the audit plans, significant audit findings, adequacy of internal controls, compliance with accounting standards including any changes in that is a regular course of action of the company's Audit Committee. The Statutory Auditors of the Company have also, in their report to members for the financial year ended on 31st March 2015, confirmed the adequacy of internal control system of the Company. Material Development in Human Resources /Industrial Relations front, including number of people employed. The company recognizes the fact that manpower is the most vital resource for the real estate sector. The company ensures that its employees are provided the best working environment and compensated with attractive remunerations. Beyond rewarding employees with attractive remunerations, the company constantly endeavourer to create more conducive work environment. Employees are encouraged to be innovative and involved to pursue their goals which are allied with the larger interest of the company. Since the operations of the company are not going on large scale brsently, therefore, only two employees are employed by the company. For and on behalf of the Board of Directors Managing Director: Dalip Singh Dasila Din: 03613295 Address: 58-B, Block, Khanpur Extn, M.B Road Near Khanpur, New Delhi-62 Director: Vishnu Gopal Rajgarhia Din: 00480125 Address: C-740, New Friends Colony, New Delhi-110065 New Delhi Date: 28th May, 2015 |