The Management of the Company is pleased to present this report
covering the activities of the Company during the year ended on 31st March
2022.
MANAGEMENT DISCUSSION AND ANALYSIS
Global economy:
The global economy will continue to face unprecedented volatility and
disruption in the next few years. A perfect storm has been created by multiple
unanticipated factors such as resurgence of the pandemic in some places, severe lockdowns
in China and Russias war in Ukraine. This has led to global disruption in supply chains
food and energy crisis, inflationary pressures and slow down in overall growth.
In its July 22 update the World Economy ,the IMF has taken an
extraordinarily "gloomy" view. It has revised world growth for current year 2022
down by 0.4% points over its April outlook to 3.2 %,with growth in the US and China being
revised downwards by 1.4% points(2.3%) and 1.1% (3.3%) respectively.
The triggers at work in the top two economies are a decline in consumer
spending and a possible rise in debt default, coinciding with rising inflation and
interest rate in the US and COVID induced shut downs in China.
According to the IMF, inflation could remain"stubbornly high)
leading to tighter financial conditions and lower growth."The risk of recession is
particularly prominent in 2023, when household savings accumulated during the pandemic
will have declined" it says. It also cites the 1980s experience to observe, with
valid reasons, that the exact amount of policy tightening required to lower inflation
without inducing recession is difficult to ascertain:
RBI is among other forecasters to differ from this grim view ,and for
some pretty good reasons.
The RBI has pointed to positive global trends such as decline in
commodity and shipping prices since June22 amidst an uptick in world trade volumes since
March 2022.
Global PMIs have climbed since March22. Domestically, high frequency
indicators such as tractor sales have shown an uptick since February 2022, with the RBI
being hopeful that the rural demand will lift all boats.
The revival of the South -West monsoon, alongwith a moderation of
inflation and "an ebullient supply side response" is expected to make India an
outliner. Meanwhile, The Economist cites"an NBER(National Bureau of Economic
Research ) assessment that the US household debt may not spiral out of control, owning
to savings arising out of pandemic handouts. Morgan Staley makes a distinction between
credit-driven boom -and -bust a events such as Great Financial Crisis, and a
liquidity-led-one (COVID and after) leading to inflation and eventually a
downturn-pointing out that the second is less worse.
Presently the US housing and auto industries remain strong, labour
market conditions are tight and corporate balance sheets are sound. Indeed the US -China
trade deficit so far this year mirrors 2019 levels.
Finally, the outcome could be less grim than a short-term view
suggests. The world has been hit by the twin shocks of COVID and the Ukraine war: a
readjustment of supply and demand in both labour and consumer markets will take time. This
disruption of supply chains has meant that pent-up consumer demand could not be met, while
the labour market, well placed in the wake of COVID welfare payouts, is bidding up the
wages. The latter may run out. What is less known is the state of affairs in China. The
Ukraine shock has hit Europe in particular through energy supplies, but the rest,
including India ,may move on. The growing share of emerging markets in global GDP is
noteworthy. It is also of great import that just 16% of the debt of emerging market
economies is in foreign currency. The reality appears to lie between what dooms dayers and
optimists have to says.
In response to disruptions from the global pandemic, many central banks
in emerging market and developing economies employed asset purchase programs for the first
time in their history. These programs were successful in lowering bond yields without
triggering currency depreciations have sparked debate over the valuations in the current
environment. The raising inflation and the path of increase in the rate of interest have
provoked turmoil in the market as well as vigorous debate over the valuations. As it is
believed that the FEDs tightening will push the economy into a recession damaging both
business fundamentals and investors sentiment.
Silver Lining-Indian economy:
The silver lining here is that India is poised to be fastest growing
economy(the IMF pegs growth at 7.4 percent 2022,6.1 percent in the year 2023 and 6.9% in
24.looks better placed to weather these head winds ,the Reserve bank of Indias July
Bulletin has observed.
The IMF expects India to be the fastest growing major economy during
all three years, the much talked -about"V"shape recovery. Indias potential
growth was dropping sharply in the pre COVID period. It grew at an average of 7.7% over 14
years between 2002-04 and 2016-17,as all three growth engines, namely exports, investment
and consumption were firing.
But growth started to decline as the export and investment engines
started sputtering. The third engine, private consumption, also started falling over the
last three years with the COVID pandemic. Thus based on average long trends and averages,
Indias current up turn in growth is not "Vshaped.
In 2021-22 gross FDI inflows into India increased for the ninth
consecutive year to $83.6 billion, an all time high. The bulk of this FDI is concentrated
in a few sectors such as computer software and hardware and financial services which show
cased the resilience of Indias IT sector during the pandemic.
Foreign investments in the commercial real estate sector were at US$
10.3 billion from 2017-21. As of February 2022, Developers expect demand for office spaces
in SEZs to shoot up after the replacement of the existing SEZs Act.
As per ICRA estimates, Indian firms are expected to raise Rs. 3.5
trillion (US$ 48 billion) through infrastructure and real estate investment trusts in
2022, as compared with raised funds worth US$ 29 billion to date.
India will continue to be a key destination for multinational because
of its large economy, strong growth and huge consumer base. Global investors are quite
vocal about Indias rising position in World economy and being the best investment
destination due to its policy changes and structural reforms. Its business landscape is
far more open and accessible for global companies .While India is enroute to becoming a $5
trillion economy, FDIs growth would add up to achieve with faster phase.
The Indian housing market may see some impact on sales, given the
moderate increase in EMI from higher mortgage rates and negligible defaults. The low base
of Indian housing market may also mitigate the impact of possible slowdown in housing
demand, as the market has seen some recovery over the past year with aggregate sales in
five major markets (Bengaluru, Chennai, MMR,NCR and Pune) increasing 23percent over FY
2020-22.However,volumes are just about at the decade -ago-previous -peak. The Indian
housing market was quiet weak over FY2012- 19.with volume CAGR(-)4percent.Asa result, new
launches, have been weak and inventories manageable( Source: Kotak Securities Report)
Constraints:
High global oil prices have once again put the Indian economy under
pressure. It is likely that India will end the fiscal 2023 with a deficit balance of
payments around $ 60bn.
The real problem we face is what happens six months or nine months down
the road. It is entirely possible that if the Fed keeps raising interest rates, it can
spark a recession in the USA by squeezing activity. At the same time, the rise in interest
rates by the Fed can spark an enormous flow of dollars out of all emerging markets. We
would be hit by something different, not only a fall in demand but also a huge exodus of
dollars out of emerging markets. This will create other problems where the exchange rate
will go down, our imported inflation will go up and we would feel a bigger need to raise
interest rates. If we get another deep recession, which is a possibility but not a
certainty, there would be a lot of trouble for us.
Right now already we are suffering from imported inflation because the
rupee has depreciated against the dollar and gone from 74 to 80. You will have a huge
panicky exit if it goes from 80 to 90; that itself causes so much additional inflation in
India. Suppose China ends all the lockdowns, there is peace in Ukraine and everything
returns to normal, can the world suddenly look nice and sunny? It is a possibility
although not probable. On the other hand, two more things can happen — Russian
sanctions and the war can deepen, there can be further cuts and this time the West may
actually really cut off oil consumption from Russia. In that scenario, Goldman Sachs
suggesting that oil price might go to $280-$300 a barrel. On the other hand, Citibank says
that if there is a deep recession and demand disappears the price of oil may fall all the
way to $65 and perhaps further to even to $45. We must hope for the best and prepare for
the worst.
Sector Review
Indias real estate sector is expected to touch a US$ 1 trillion market
size by 2030, accounting for 18-20% of Indias GDP.
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-urban accommodations. The construction
industry ranks third among the 14 major sectors in terms of direct, indirect and induced
effects in all sectors of the economy.
In India, the real estate sector is the second-highest employment
generator, after the agriculture sector. It is also expected that this sector will incur
more non-resident Indian (NRI) investment, both in the short term and the long term.
Government Initiatives
Government of India along with the governments of respective States has
taken several initiatives to encourage development in the sector. The Smart City Project,
with a plan to build 100 smart cities, is a prime opportunity for real estate companies.
Below are some of the other major Government initiatives:
• In October 2021, the RBI announced to keep benchmark interest
rate unchanged at 4%, giving a major boost to the real estate sector in the country. The
low home loan interest rates regime is expected to drive the housing demand and increase
sales by 35-40% in the festive season in 2021.
• Under Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh
(US$ 2069.89) on interest on housing loan, and tax holiday for affordable housing projects
have been extended until the end of fiscal 2021-22.
• The Atmanirbhar Bharat 3.0 package announced by Finance Minister
Mrs. Nirmala Sitharaman in November 2020 included income tax relief measures for real
estate developers and homebuyers for primary purchase/sale of residential units of value
(up to Rs. 2 crore (US$ 271,450.60) from November 12, 2020 to June 30, 2021).
• In order to revive around 1,600 stalled housing projects across
top cities in the country, the Union Cabinet has approved the setting up of Rs. 25,000
crore (US$ 3.58 billion) alternative investment fund (AIF).
• Government has created an Affordable Housing Fund (AHF) in the
National Housing Bank (NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion)
using priority sector lending short fall of banks/financial institutions for micro
financing of the HFCs.
• As of January 31,2021, India formally approved 425 SEZs, of
which 265 were already operational. Most special economic zones (SEZs) are in the IT/ BPM
sector.
Investment /Developments
Indian real estate sector has witnessed high growth in the recent times
with rise in demand for office as well as residential spaces. According to Colliers India,
a property consultant, institutional investments in the Indian real estate sector are
expected to increase by 4% to reach Rs. 36,500 crore (US$ 5 billion) in coming years,
driven by rising interest of investors towards capturing attractive valuations amid the
pandemic. According to a recent report by Colliers India, private equity investments in
Indian real estate reached US$ 2.9 billion in the first half of 2021, which was a >2x
increase from the first half in 2020.
Exports from SEZs reached Rs. 7.96 lakh crore (US$ 113.0 billion) in
FY20 and grew ~13.6% from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19.
In July 2021, the Securities and Exchange Board of India lowered the
minimum application value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28)
to Rs. 10,000-15,000 (US$ 137.06 - US$ 205.59) to make the market more accessible to small
and retail investors.
According to the data released by Department for Promotion of Industry
and Internal Trade Policy (DPIIT), construction is the third-largest sector in terms of
FDI inflow. Construction is the third-largest sector in terms of FDI inflow. FDI in the
sector (including construction development & activities) stood at US$ 52.48 billion
between April 2000 to December 2021.
Road Ahead
The Securities and Exchange Board of India (SEBI) has given its
approval for the Real Estate Investment Trust (REIT) platform, which will allow all kind
of investors to invest in the Indian real estate market. It would create an opportunity
worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market in the coming years.
Responding to an increasingly well-informed consumer base and bearing in mind the aspect
of globalisation, Indian real estate developers have shifted gears and accepted fresh
challenges. The most marked change has been the shift from family- owned businesses to
that of professionally managed ones. Real estate developers, in meeting the growing need
for managing multiple projects across cities, are also investing in centralised processes
to source material and organise manpower and hiring qualified professionals in areas like
project management, architecture and engineering.
The residential sector is expected to grow significantly, with the
central government aiming to build 20 million affordable houses in urban areas across the
country by 2022, under the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union
Ministry of Housing and Urban Affairs. Expected growth in the number of housing units in
urban areas will increase the demand for commercial and retail office space.
The current shortage of housing in urban areas is estimated to be 10
million units. An additional 25 million units of affordable housing are required by 2030
to meet the growth in the countrys urban population.
The growing flow of FDI in Indian real estate is encouraging increased
transparency. Developers, in order to attract funding, have revamped their accounting and
management systems to meet due diligence standards. Indian real estate is expected to
attract a substantial amount of FDI in the next two years with US$ 8 billion capital
infusion by FY22.
References: Media Reports, Press releases, Knight Frank India, VCEdge,
JLL Research, CREDAI-JL, Union Budget 2021-22
THE GROUP
We are a 52 year old, Mumbai based real estate development company that
has completed over 100 projects in the city. We are currently building several townships
in the fastest growing neighborhoods, affordable housing projects, ultra-luxury
skyscrapers, small offices and large business centers. Our projects are spread across the
Mumbai Metropolitan Region (MMR). Weve been on a Marathon run since 1969. We are proud to
have provided homes for more than 10,000 families, retail space for 400 retailers and
offices for 350 businesses.
Our story
| 1922: |
Our origins date back to 1922 when our patriatrch Zaverbhai
Shah played a key role in creating the masterplan for 550 acres of the suburb of Mulund -
his role in the planning has resulted in Mulund being one of the best planned suburbs
today |
| 1969: |
R.Z. Shah founded Marathon in 1969. He started the company as
a social enterprise and most of his initial undertakings were on a not-for-profit basis.
He has been deeply involved with the community and has served as the President of the
Rotary Club (Mulund), Jain Sangh and SMPR High School. |
| 1970-1990: |
We played a key role in shaping the Mulund skyline through
the next few decades. |
| 1972: |
Poonam, built in 1972, was the first building with an
elevator in Mulund. |
| 1990: |
Marathon Antariksh was the first high rise in Mulund. |
| 1990-2010: |
We witnessed exponential growth starting from the 90s by
venturing into new locations like Lower Parel and Panvel and new categories like townships
and affordable housing. |
|
A) We were one of the first to identify the potential of
milland at Lower Parel. We built the award winning Nextgen mixed use campus on mill land. |
|
B) We were amongst the first to adopt the revolutionary MIVAN
Construction technology for Marathon Era. |
|
C) Marathon Heights at Worli was the first residential
building in the city with a helipad. |
|
D) We ventured into affordable housing with the award winning
Marathon Nagari Township at Badlapur. |
|
E) Recognising the potential of Panvel we launched our first
premium township project Marathon Nexzone which also was the first project in Mumbai to
offer e-registration of property. |
|
F) Our flagship commercial project, Marathon Futurex at Lower
Parel opened. Futurex is a landmark in the city and houses some of the finest
international and national brands. |
| 2010-Present: |
Our footprint continues to expand rapidly across the city and
we now have projects in all categories. |
| 2012: |
Launched Monte South at Byculla, a joint venture with Adani
Realty - one of the most luxurious projects in South Mumbai. |
| 2017: |
We ventured into the education space with the revolutionary
NEXT School at Mulund W. NEXT is Indias 1st Big Picture Learning school. |
| 2018: |
We Launched NeoHomes a new generation of urban homes at
Bhandup W, that offers the average Mumbaikar the chance to own a home in the city. |
| 2020 |
We launched Phase 2 of our Panvel Township. |
OPPORTUNITIES:
The recent announcement by the World Bank arm, viz The International
Finance Corpn, the worlds largest finance development institution has tied up with HDFC to
promote green housing through lending for affordable and low income housing will encourage
and boost the thrust on the Affordable housing sector. As this being one of the vital
components of economic growth.
As India awaits policy reforms to pick up speed, your Company firmly
believes that the demand for Real Estate in a country like India should remain strong in
the medium to long term. Your Companys well accepted brand, contemporary architecture,
well designed projects in strategic locations, strong balance sheet and stable financial
performance even in testing times makes it a preferred choice for customers and
shareholders.
The improved focus on affordability of residential properties to
attract buyers and the planned capital to fuel growth would improve the productivity.
Reforms in the labour legislative and administrative architecture can
have a significant positive impact on growth of enterprises and the welfare of the workers
in the country. The Ministry of labour and Employment had successfully undertaken the task
of simplifying,rationalizing and amalgamating the existing 29 labour laws into four
codes: the Code on Wages-2019 ,the code on Industrial Relations-2020, the code on
Occupational safety, Health and working conditions,2020 and the code on Social
Security,2020.Implementation of the labour codes and rules has the potential to accelerate
Indias journey to lead the worlds strongest economies.
Getting permission for construction of building in general has been a
very lengthy and cumbersome process. It normally used to take months together to get the
building plan sanctioned. India has improved considerably on this dampening aspect of ease
of doing business. From as poor as 184th ranking in 2014,the ranking had gone
high at 27th rank in 2019 when the last ranking was made by the World bank.
Several steps have been taken in India over the years to reduce procedures and time
involved in obtaining construction permission.
Some of the initiatives are:
(i) On line Building Permission System (OBPS) which is on line Single
window for obtaining all building permission has been introduced in Mumbai and Delhi
Regions.
(ii) The BMC has introduced the fast track approval system for issuing
building permits with features such as common Application Form (CAF) provision using
Digital Signature and on line scrutiny of building plans.
(iii) The time line for issuing building permission has been reduced
from 128 days to 98 days as per the reports of Doing Business 2018 and 2020 reports.
(iv) Total no. of procedures is reduced to 19 in Mumbai.
(v) Cost of obtaining construction permission has been reduced from 23%
to 5.4 of economys per capita income.
Also, the pandemic imparted to the sector, is embracing the digital
mediums. In fact, if not for those, it would have been nearly impossible for the sector to
see any sales, whatsoever. "The year saw a growing thrust towards digitisation and
technology adoption, chronicling a new era in the industry. There has been a significant
rise in digital launches, virtual property events, online listing and viewing, data
analytics, cloud- based services and much more.
CHALLENGES:
We are now in a weird Phase of COVID Pandemic. In the early part of the
Year, the 3rd Wave caused some disruptions for both the manufacturing and
service Industries .Commodity prices, global inflation and interest rates are rising.
Availability of working capital finance for Project specific funding is
a daunting task .To fund the projects the Company uses its cash flow and intermittent
borrowing support from the lenders would subordinate the completion process. However, the
Govt initiatives to support the sector mandating the financial support will go a long way
in timely completion and delivery of inventories. Further, the following factors pose
challenges to the Company.
• Challenges with Regulatory environment
• Increased cost of manpower and critical inputs
• Delays in project approvals
COMPANY STRENGTHS:
Your Company continues to capitalize on the market opportunities by
leveraging its key strengths. These include..
1. Brand Reputation: With more than 5 decades in business, the
Brand"Marathon enjoys higher recall and influences the buying decision of the
customer.
2. Execution: Possesses a successful track record of quality
execution of projects with contemporary architecture.
3. Significant leveraging opportunity: Conservative approach
towards debt practices coupled with enough cash balance which provides a significant
leveraging opportunity for further expansions.
4. Inhouse design: Operates, mainly with inhouse highly skilled
design team capable of modeling state of the art design for its Projects. The Company has
also a model of appointing some of renowned architects / contractors that allows
scalability and emphasizes contemporary design and quality construction - a key factor of
success.
5. Transparency: Follows a strong culture of corporate governance
and ensures transparency and high levels of business ethics.
6. Digitalization : Company has already forayed into the new age
customer experiences. As it will be a buyers market for now and empowering the customers
to enable decision making will be the best interest of the real estate stake holders.
Tools that stimulates the product digitally, enables online decision making facilities
easy transactions hand -in- hand curated and secure sampling at the physical site.
HUMAN RESOURCES:
Employee Engagement and Talent:
It is the people that make an Organisation. With human resources
department being the custodian of all people related processes, it becomes the critical
success factor in organisational success. The HR works with an objective of aligning the
aspirational needs of the people with the organizational objectives of sustained growth,
market leadership and cost competitiveness. Its sole aim is to build "Marathon
Group" as an exemplary organisation that inspires excellence every day.
Our employees are customer-centric as well as future ready and are able
to compete in a fast- changing world characterized by digitalization and increased
competition. Our employees are empowered to act like entrepreneurs and business owners
while retaining the joie-de-vivre and ethos of the organization. Cardinal values, the
culture and ethos of an organization are everything.
We consider people as our biggest assets and we have put concerted
efforts in talent management practices and in learning and training initiatives to ensure
that we consistently develop an inspiring, strong and credible leadership. We ensure that
young talent is nurtured and mentored on a regular basis, that rewards and recognition are
commensurate with their performance and that employees have an opportunity to develop and
grow. We have an organizational structure that is agile and focused on delivering business
results. With regular communication and sustained efforts, we ensure that we align our
employees with Marathon Group overall objectives.
We strongly believe in fostering a culture of trust and mutual respect
in all our employees and ensuring that they understand and follow our values and
principles. We have been able to operate efficiently because of the culture of
professionalism, creativity, integrity and continuous improvement in all areas and
efficient utilization of our resources for sustainable and profitable growth.
Training and Development
Training and developing employees is a must for any organization to be
successful. This can be done through ensuring that the employees skills, abilities and
knowledge are constantly updated both to meet world standards and also to satisfy
discerning and demanding customers needs. Training also helps employees move up in their
career path.
This training as it helps it to plan succession roles, address the
challenges of changing technologies and opens up the possibilities of widening the scope
of the work that it does. At Marathon, the organisational training and development plan
includes in-house and external workshops/ seminars as per need. However, the continuing
pandemic has resulted in slowing down the physical training programmes.
Safety Measures:
The Company is always committed to health and welfare of the employees.
Vaccination drive was conducted for the employees across the sites and
maximum available workforce made use of the same.
Sales volume:
The volume of bookings depends on the ability to design projects that
will meet customer preferences, getting various approvals in time, general market factors,
project launch and customer trust in entering into sale agreements well in advance of
receiving possession of the projects. Your Company sells its projects in phases from the
time it launches the project, based on the type and scale of the project and depending on
market conditions.
Execution:
Execution depends on several factors which include labour availability,
raw material prices, receipt of approvals and regulatory clearances, access to utilities
such as electricity and water, weather conditions and the absence of contingencies such as
litigation. Your Company manages the adversities with cautious approach, meticulous
planning and by engaging established and reputed contractors. As your Company imports
various materials, at times execution is also dependent upon timely shipment and clearance
of the material.
Rental realizations:
The rental realizations on the space leased depends upon the project
location, design, tenant mix, prevailing economic conditions and competition. As far as
the office space rentals are concerned, the same depends on demand and supply, general
economic conditions, business confidence and competition. The Rental realizations, which
has got affected ,is returning to normalcy, where as some of the customers reneged their
payments to the future dates.
Land / Development rights, costs and availability:
The cost of land forms a substantial part of the project cost,
particularly in Mumbai. It includes amounts paid for freehold rights, leasehold rights,
fungible FSI, construction cost of area given to landlords in consideration for
development rights, registration and stamp duty. Your Company acquires land / land
development rights from private parties. It ensures that the consideration paid for the
land is as per the prevailing market conditions, reasonable and market timed. Your Company
also enters into MOUs and makes advances for the land / land development rights prior to
entering into definitive agreements. The ensuing negotiations may result in either a
transaction for the acquisition of the land / land development rights/revenue sharing or
the Company getting a refund of the moneys advanced.
Financing costs:
The acquisition of land and development rights needs substantial
capital outflow. Inadequate funding resources and high interest costs may impact regular
business and operations. Your Company has always tried to build sufficient reserves
resulting out of operating cash flows to take advantage of any land acquisition or
development opportunity. Availability of right type of land for development (including
Slum Redevelopment) is a major issue. Apart from the increase in land prices, inputs costs
have also been increasing. Higher interest cost would dent margins and may have a direct
effect on the customers cash flow as well. Increase in end product prices coupled with
tight liquidity may impact demand. The Company has a Risk Management Policy, which is
being periodically reviewed.
a. Internal control systems and their adequacy
The internal control is supplemented by an internal audit and is
reviewed by the management. Documented policies and guidelines and procedures are in
place. The internal auditor covers all activities of the Company. The internal control
system is designed to ensure that every aspect of the Companys activity is properly
monitored. Despite the satisfactory functioning of the control systems the Company is
reviewing the same and may even go for external consultants to critically examine the
existing systems and suggest changes if any to make them more contemporary in case the
need arise.
b. Operational Performance:
| Particulars |
Consolidated (Rs. in lacs) |
Standalone (Rs. in lacs) |
|
2021-22 |
2020-21 |
2021-22 |
2020-21 |
| Revenue from Operations |
30609 |
20555 |
15822 |
5439 |
| Other Income |
3813 |
1760 |
2615 |
1870 |
| Total Revenue |
34422 |
22315 |
18437 |
7309 |
| Expenses |
30921 |
19104 |
14624 |
4344 |
| Profit before share of profit of JV |
3501 |
3211 |
3813 |
2965 |
| Share of Profit/(loss)of JV |
1531 |
(724) |
(721) |
437 |
| Profit before Tax |
5032 |
2487 |
3092 |
3402 |
| Tax expenses |
1143 |
894 |
927 |
561 |
| Other Comprehensive Income |
(20) |
41.35 |
(10) |
21 |
| Total lncome for the Year |
3869 |
1634 |
2155 |
2863 |
| EPS (in Rs) |
8.36 |
3.30 |
4.71 |
6.17 |
Material developments in Human Resources/Industrial Relations front,
including the no. of people employed:
The Company has harmonious relations with employees and there is close
interaction between the management and employees to facilitate smooth functioning of your
Company. The Company facilitates consistent improvement in performance, productivity and
effectiveness by setting targets through an interactive process. Human resources are being
recognized as one of the critical areas to the success of our organization. They are
subject to constant training to augment their skills to effectively carry out their
assignment.
The present strength of Human Resources on the roll of the Company is
67 in numbers.
Details of significant key financial ratios:
| Significant Changes in Key Financial Ratios : |
Formula |
|
| (i) Debt Service Coverage Ratio: |
EBIT/Interest Exps + Principal Repayments |
0.68 |
| (ii) Inventory T/over (times) |
Cost of goods sold/ Avg Inventory |
0.28 |
| (iii) Current Ratio: |
Current Assets/ Current Liabilities |
3.32 |
| (iv) Debt equity Ratio: |
Debt/ Equity |
1.05 |
| (v) Operating ProfitMargin (%): |
Operating profit/ Operating Revenue |
0.51 |
| (vi) Net profit Ratio: |
Net Profit/Total Income |
0.12 |
Disclosure of Accounting Treatment:
In preparation of these financial statements, the Company has followed
the prescribed Accounting Standards and no different treatment had been followed.
OUTLOOK
As we enter FY 2022, the momentum of historic sales could slow a bit
but will remain strong to narrate a positive story. Unlike the past year, the real estate
sector is now picking up with home buyers willing to make the move. With most workers
displaced during the lockdown now back, construction activity has resumed and work is
moving at a faster pace to fulfill commitments.
In Mumbai, there are a lot of properties which were unsold but ready to
move in, with no GST to be paid because occupation certificates were already issued. This
has also helped home buyers look at real estate proactively and as an investment.
The demand for residential property has in fact also been guided by the
concept of hybrid model of working followed by the corporate.
Focus on Mumbai and beyond
We shall continue to explore development opportunities in and around
Mumbai and explore hubs in the nearby regions on a case-bycase basis.
Cautionary Statement:
Statements in this report on Management Discussion and Analysis
describing the Companys objectives, projection, estimates, expectations or predictions
may be forward looking statements within the meaning of applicable laws or regulations.
These statements are based on certain assumptions and reasonable expectation of future
events. Actual results could however differ materially from those expressed or implied.
Important factors that could make a difference to the Companys operations include
material availability and prices, cyclical demand and pricing in the Companys principal
markets, changes in government regulations, tax regimes, economic developments within
India and other incidental factors. The Company assumes no responsibility in respect of
the forward-looking statements herein, which may undergo changes in future on the basis of
subsequent development.
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