COMPANYS OVERVIEW:
Bhagyanagar Properties Limited (‘the Company) is engaged in
the real estate business, incorporated on 25th April, 2006. During the year
2016-17, a Scheme of arrangement was entered by the Company with M/s. Bhagyanagar India
Limited which was sanctioned by the Honble High Court of Andhra
Pradesh & Telangana on 21.11.2016 and became effective
23.01.2017. Pursuant to which the "Real Estate Undertaking"
of Bhagyanagar India Limited merged with the Company. The shares of the Company were
listed on Stock Exchanges w.e.f. 20.07.2017. The Company is planning to develop the land
situated at the prime IT Centres of the City, in view of the rapid growth of e-commerce
with a focus on customer satisfaction and evolving itself into countrys one of the
most promising mid cap companies.
A) REAL ESTATE - INDUSTRY ANALYSIS:
Real Estate: Real estate sector is one of the most globally
recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and
commercial. The growth of this sector is well complemented by the growth in the corporate
environment and the demand for office space as well as urban and semi-accommodations.
Despite pandemic exigencies, the real sector has continued to show resilience and steady
growth in 2022. Indias real estate sector is witnessing a healthy increase in demand
in 2022 and this momentum is expected to hold for the rest of the year. From commercial
spaces to the residential market, the overall market outlook is a bright one for the real
estate industry.
Government reforms such as RERA, GST, REIT, etc., have made the sector
safer by bringing greater transparency in the industry. Additionally, flagship schemes of
the Government such as ‘Housing for all have seen major traction in the market,
with affordable housing being given the infrastructure status. The government continues to
prioritize the affordable housing segment and parallelly looking at ways to strengthen the
existing financing systems to provide liquidity to stuck real estate project.
Warehousing: The Countrys warehousing sector gained
prominence in the last 5-6 years as the ecosystem for efficient supply chain had been
triggered the implementation of GST in 2017. In the same year, the central
governments grant of ‘Infrastructure Status to the logistics sector
including warehousing, had also proven to be a catalyst. Since then, this segment has
undergone a rapid change towards institutionalization.
The warehousing sector has seen a sharp increase in demand due to
advancement in e-commerce. Due to Covid-induced setbacks, the warehousing sector is
expected to witness a sustained growth, fuelled by e-commerce companies and catering to
the customers directly by closing the last-mile delivery gap. This has resulted in a
substantial rise in demand for warehousing in commercial areas, residential landscapes
apart from making inroads into tier II and III cities. Given the priority accorded to
safety and hygiene norms, the demand for grade-A warehousing would continue to catch-up.
Hyderabad is being looked upon as a warehousing hub as the government has been developing
infrastructure in the western and northern corridors of the city. Also, the city is
strategically positioned in the south-central zone, which is one of the reasons behind the
increased demand. E-commerce and consumer durables companies have pushed up the
warehousing demand in H2 2021 in Hyderabad. Incidentally, the warehousing sector had 66
percent demand from e-commerce, followed by consumer durables, which had 17 percent
demand.
B) BUSINESS OUTLOOK:
The Company is fortunate to have most of its land situated at prime IT
centres of the city where e-commerce companies thrive most of its business for better
support and competitive edge. Moreover, there is a constant rise in the demand of large
warehouses and office space in the areas where the company is having sizeable land bank to
give on lease. The Company had set up a warehouse at Gachibowli, Hyderabad with around
1,50,000 Sq.ft. Presently the Company is having tenants like Amazon, Flipkart, ITC, Kia
Motors, Hyundai, Skoda, Steelcase, Spinny Cars, Zepto etc. Further your Company has setup
co-working space around 30,000 Sq.ft with high standard facilities for IT. The Company has
entered into Lease Agreement with various parties for commercial lease of some part of
open land.
The Government of Telangana vide G.O.Ms. No.69, dated 12th
April, 2022 has revoked a 26-year-old Government Order (GO-111) that prevented big
constructions and industries in the 10 km radius of two Nizam-era water reservoirs, Osman
Sagar and Himayat by Sagar, and its catchment on the citys outskirts. By lifting of
GO-111, Govt of Telangana has unlocked as much as 1.32 lakh acres across 84 villages
adjoining Hyderabad for development and strengthen the real estate market.
With this, the Company will have immense benefit and potential growth
for construction and development of its prominent land located in the heart of IT hub,
Gachibowli.
C) RISKS AND CONCERNS:
Your company is exposed to various risks i.e., strategic, financial,
legal, regulatory and political which impact its performance and business. To monitor and
address such risks, the Company has developed and implemented the Risk Management Policy.
The Audit Committee has an additional oversight in the area of financial risks and
controls. Major risks identified by businesses and functions are systematically addressed
through extenuating actions on a continuous basis. The Board of Directors is also apprised
of the risks faced by the Company, and of the adequate and timely risk management measures
taken to mitigate them.
D) INTERNAL CONTROL SYSTEM AND ITS ADEQUACY:
The Company has implemented an internal control framework to ensure all
assets are safeguarded and protected against loss from unauthorized use or disposition,
and transactions are authorized, recorded and reported correctly. The framework includes
internal controls over financial reporting, which ensures the integrity of financial
statements of the company and reduces the possibility of frauds. The company has clearly
defined roles and responsibilities for all managerial positions and all operating
parameters are monitored and controlled. These systems are augmented by written policies,
an organizational structure providing division of responsibilities, careful selection and
training of qualified personnel, and a program of internal audits.
E) FINANCIAL PERFORMANCE & OPERATIONAL
PERFORMANCE: i) FINANCIAL PERFORMANCE: Capital Structure:
The Equity Share Capital of the Company is 6,39,90,000 (Rupees Six
Crore Thirty Nine Lakhs Ninety Thousand only) comprising of 3,19,95,000 (Three Crore
Nineteen Lakhs Ninety Five Thousand) Equity Shares of 2 (Rupees Two only) each fully paid.
Other Equity:
The Other Equity of the Company as on 31st March, 2022 stands at
10747.32 lakhs as compared to 10760.84 lakhs in the previous year.
Property, Plant and Equipment:
During the year, there are no additions to the Property, Plant and
Equipment of the Company. The total net block of assets as on 31st March, 2022 is 4053.50
lakhs.
Trade Receivables:
Trade receivables as on 31st March, 2022 is 30.52 lakhs. These debtors
are considered good and realizable.
Cash and Bank Balances:
Cash and Bank balances as on 31st March, 2022 is 18.73 lakhs as against
82.02 lakhs in the previous year.
Loans (Non-current):
Long Term Loans and Advances as on 31st March, 2022 is 7523.15 lakhs as
against 7426.81 lakhs in the previous year.
Other Current Assets:
Other Current Assets as on 31st March, 2022 is 12.28 lakhs as against
56.92 lakhs in the previous year.
Financial Liabilities:
Financial Liabilities as on 31st March, 2022 is
Nil.
Other Current Liabilities:
Current Liabilities as on 31st March, 2022 is 848.33 as against 865.11
in the previous year. ii) OPERATIONAL RESULTS: Turnover:
During the year 2021-22, the turnover of the Company was 8.01 lakhs as
compared to
201.78 lakhs in the previous year.
The Income from other sources as on 31st March, 2022 was 139.01 lakhs
compared to 130.00 lakhs in the previous year.
Depreciation:
The Company has provided a sum of 12.30 towards depreciation for the
year ended on 31.03.2022.
Net Profit:
The Net Profit of the Company for the year after tax is (13.53) as
against 137.29 lakhs in the previous year.
Earnings Per Share:
The Earnings Per Share of the Company as on
31st March, 2022 is Nil per share for Face Value of 2 as against 0.43
per share for Face Value of 2 in the previous year.
F) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:
| Ratios |
2022 |
2021 |
Change (%) |
| Debtors Turnover (No. of days) |
0.26 |
1.50 |
(83) |
| Inventory Turnover |
- |
- |
- |
| Interest Coverage Ratio |
0.08 |
1.75 |
(95.69) |
| Current Ratio |
0.36 |
0.52 |
(30.76) |
| Debt Equity Ratio |
- |
- |
- |
| Operating Profit Margin |
- |
- |
- |
| Net Profit Margin |
(1.69) |
2.23 |
(175.81) |
| Return on Net Worth |
(0.0011) |
0.01 |
(108.03) |
Note:
Debtors Turnover Ratio (No. of days): Change in trade receivables
turnover ratio, net capital turnover ratio is due to decrease in sales for the current
period
Inventory Turnover Ratio: As there is no inventories, hence
inventory turnover ratio has not been calculated.
Interest Coverage Ratio: Change in debt-service ratio is due to
decrease in finance costs on account repayment of loans.
Current Ratio: Change in current ratio is due to decrease in
investments and trade receivables (on account of decrease in sales).
Debt-Equity Ratio: As there is no outstanding debt, trade payables.
Hence Debt-Equity ratio has not been calculated
Net Profit Margin: Change in Net Profit ratio is due to decrease in
operating profits during the year.
Return on Net Worth: Change in return on net worth is due to
decrease in sale during the year.
G) HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS:
Your Companys industrial relations continued to be harmonious
during the year under review. The Company believes that the Companys growth and
future success depend largely on the skills of the Companys workforce, including
executives and officers, as well as the designers and engineers and the attraction of
critical skills. The Companys success also depends, on its continued ability to
attract and retain experienced and qualified employees. The organization maintains
harmonious relations at all levels within the company and employees are well motivated
round the year to meet the goals set for them.
H) CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis describing the
Companys objective, projections, estimates and expectations may constitute
‘forward looking statements within the meaning of applicable laws and
regulations. Actual results might differ materially from those either expressed or implied
in the statement depending on the circumstances.
| For and on behalf of the Board of Directors |
| NARENDER SURANA |
DEVENDRA SURANA |
| DIRECTOR |
WHOLE-TIME DIRECTOR |
| DIN-00075086 |
DIN-00077296 |
| Place: Secunderabad |
|
| Date: 23.07.2022 |
|
+91-9892691696
