meglon infra real india ltd Management discussions

Management Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 read with other regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is presented hereunder which forms part of the Annual Report.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The real estate sector has been witnessing a paradigm shift during the recent years through steady transformations to become a structured sector from an unorganized sector. It has a huge multiplier effect on the economy and therefore, is a big driver of economic growth.

The year 2019-20 has been transformative and disruptive for the Real Estate sector. This year, the sector has witnessed major policy changes in the form of The Real Estate.

2. OPPORTUNITIES AND THREATS:

The future seems to be fruitful for the Real Estate Sector but at the same time there are some factors which may prove to be a threat for the industry. Some of the major issues are enumerated below:

• In case of Realty Sector, GST is not the only tax payable by the customer but there are several other duties and charges that may vary from State to State such as Stamp Duty and Registration Charges which eventually adds up to the cost to be borne by the customer, since stamp duty has not been subsumed within GST.

• Due to the concept of decentralized registration under GST, every Real Estate Developer has to obtain registration in every state where the construction projects have been undertaken. It will be an arduous and a tedious task for the companies to execute with the compliance requirements such as returns, maintenance of separate records, etc. for each state.

• Due to Covid Pandemic (Covid-19) it will reduced the purchasing power in the hands of people ultimately there will be reduction in the sales and profit too in the hands of the Company. Due to less profit and resources there will be a less investment by the Company.

3. OUTLOOK:

During the financial year 2019-2020 the management of the Company was unable to generate more revenues from business and operations. During the year under review, Income from principal business activity was Rs. (75,000)/- against Rs. (3,97,867)/- in the previous year. The Company has suffered a net loss of Rs. (75,000)/- in the current financial year and net loss of Rs. (3,97,867)/- in the previous financial year.

4. RISK AND CONCERNS:

The management of the Company anticipates the major risks pertaining to the industry in which it operates such as economic, regulatory, taxation and environmental risks and also the investment outlook towards Indian Real estate sector. Real estate sector in India has traditionally been an unorganized sector of the economy. Some of the risks that may arise in normal course of its business and impact its potential for future developments inter-alia include liquidity risk, counter-party risk, commodity risk, credit risk, Inflation risk and market risk etc.

Accordingly, your Company has established a framework and process to monitor the exposures to implement appropriate measures in timely and effective manner. However, your Company has taken necessary steps to tackle these risks appropriately.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place adequate internal control systems and procedures commensurate with the size and nature of business. These procedures are designed to ensure that:

• Effective & Adequate internal control environment is maintained across the Company.

• All assets and resources are acquired economically, used efficiently and are adequately protected.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

The Companys has not generated any revenue from operations for the financial year ended March 31, 2020.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

During year 2019-20, there was no employee or worker on payroll of the Company.

8. FINANCIAL RATIOS ARE AS FOLLOWS:

Particulars	31ST March, 2020 Ratio	31ST March 2019 Ratio	Details of significant changes(i.e. change of 25% or more compared to previous year, 2019) and reason thereof
Debtors Turnover Ratio			NA as there is no turnover generated from business operations in year 2018-19 and 2019-20
Inventory Turnover Ratio			NA as there is no turnover generated from business operations in year 2018-19 and
			2019-20
Interest Coverage Ratio			NA as there is no loan or borrowings in year 2018-19 and 2019-20
Current Ratio	0.46	0.52	Decrease in ratio due to increase in current liabilities of the Company in year 2019-20.
Debt Equity Ratio	0.04	0.03	Increase in ratio due to increase in other liabilities of the Company in year 2019-20 which falls under current liabilities.
Operating Margin			NA as there is no turnover generated from business operations in year 2018-19 and 2019-20
Net Profit Margin			NA as there is no turnover generated from business operations in year 2018-19 and 2019-20
Return on Net Worth			NA as there is no turnover generated from business operations in year 2018-19 and 2019-20

By Order of the Board of Directors Meglon Infra-Real (India) Limited

SD/-

Inderjit K Sharma Director and Chairman DIN: 07937704

22 Prathibha Row House, Honey Park Road Adajan, Surat, Gujarat 395009, India

Date: 29/08/2020 Place: Gujarat