Management Discussion and Analysis
The Indian Economy
The fiscal year 2009-10 started on a bleak note with the ongoing Global EconomicCrisis. Several timely measures taken by the Government of India as well as the ReserveBank of India brought the Economy o t the Growth Path in the latter part of the year.India's GDP growth for 2009-10 is estimated at 7.2 per cent up from 6.7 per cent recordedin 2008-09. Indian industry recovered substantially in the later half of 2009-10. The IIPfigures available for the entire fiscal shows industrial production registered growth of10.4 per cent as against 2.8 per cent during the same period of 2008-09.
Overview of Real Estate Sector in India
India Real Estate is the second largest industry next only to agriculture in terms ofthe contribution it makes t o the gross domestic product (GDP) and the employmentgeneration. Moreover, its share of contribution o t the country's GDP is expected toincrease only in the years to come. To be more precise, the next five years will see arise of six per cent from its present share of five per cent contributed towards the GDP.
The Real Estate sector in India grew at a rapid clip till 2007-08. The Global FinancialCrisis brought an end to the fast growth of the real estate sector in India. The realestate prices declined by as much as 30% from their peak in 2007. During Q1 FY2010,consumer confidence started building up backed by steep discounts and formation of stablegovernment at centre. The bubble burst in the booming real estate market that Indiaexperienced before the start of the economic slowdown has corrected the wrongly inflatedprices of residential and commercial properties, thus increasing more opportunities forreal estate sale, buy, lease and rental.
Our Company is a real estate developer focused on conceptualizing, designing, creatingand management of Shopping Malls-cum-Mul'tiplexes. The Shopping Malls-cum-Multiplexessegment of the real estate sector was hit the hardest by the recent melt down. Foot fallsat the malls declined sharply. Mall owners had to agree with lower rents as retailersrenegotiated rent agreements so as to remain in business. As more and more malls arecoming up rents are increasingly coming under pressure as supply is increasing thandemand.
Our income for the FY 2:009-10 was Rs.181.11 lacs as compared to Rs.243.54 lacs of theprevious year. The Company registered a loss of Rs.87.67 lacs as compared to aprofit of Rs.101.60 lacs. Due to adverse market conditions new projects have been kept onhold.
RAP Media is committed to redefining retail shopping experience and developinglifestyle shopping centers where footfalls automatically turn into conversions. We focuson creating Malls-cum-Multiplexes ni the non metro 'cities of India with a view to providenew growth opportunities to businessman and catering to quality conscious consumers acrossIndia.
Statement in the Management Discussion and Analysis describing the Company'sobjectives, estimates, expectations or projections may be 'forward looking statement'within the meaning of applicable laws and regulations. Actual results could differmaterially from those expressed or implied. Important factor that could make a differenceto the Company's operations include Government Regulations, Patent Laws, Tax Regimes,Economic Developments, Litigations and other Allied Factors.
| ||For and on behalf of the Board of Directors |
| ||RUPINDER SINGH ARORA |
|Mumbai, Dated: 20th May, 2010. ||Chairman & Managing Director |
|Registered Office: || |
|Arora House, 16, Golf Link, || |
|Union Park, Khar (West), || |
|Mumbai-400 052. || |