regaliaa realty ltd Management discussions

This discussion covers the financial results for the Financial Year April 2018 March 2019 taking into account the likely economic growth in both Global & Indian Economy. GLOBAL & INDIAN ECONOMY

The Global economy has been going through challenging times due to political conflicts, cross border terrorism and uncertain economic situation.

Due to tightening of money flow by RBI to control inflation, and large NPAs with Banks, availability of funds at reasonable cost became impossible and thus impacted Realty Industry.

The growth in Realty Industry during the year was static with over supply in the market and the general recessionary environment andslow down in economy.

FUTURE PROSPECTS :

The country is facing a difficult economic situation due to escalating interest rate and inflation. The prospects for the present year does not look bright for the Realty Industry.

OPPORTUNITIES :

Though the Company has resolved all outstanding issues relating to the lenders and also the land owner during 2016-17, Phase II of "The Ferns" project could not be taken up due to adverse market conditions and lack of working capital.

THREATS :

The interest rate on Housing Loan is on the higher side and there are no sign of substantial reduction. The competition is also increasing almost every month in the city of Chennai with several new Builders coming in from various parts of the country with established brand names.

There has been a substantial increase in the cost of labour, fluctuating cost of important construction materials and non availability of migrant labourers has affected the prospects of the Industry.

RISK MANAGEMENT:

The Company has in place a risk management policy which lays down a vigorous and active process for identification and mitigation for risks. The Policy has been adopted by the Board of Directors of the Company and the Audit Committee reviews the risk management on the mitigation plan from time to time.