ansal properties & infrastructure ltd share price Management discussions


The series of severe and reinforcing shocks viz. the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency have deeply shaken the global economy in the Financial year 2022-23. According to the Organization for Economic Co-operation and Development (OECDs) Economic Outlook, the global economy has begun to improve on a weak note and projected a moderation of global GDP growth from 3.3% in 2022 to 2.7% in 2023 and followed by a pick-up to 2.9% in 2024.However, growth in global economy is highly dependent on the monetary tightening in future, the course and consequences of the war in Ukraine, and the possibility of further supply-chain disruptions.

International Monetary Funds (IMF) also lowered its growth forecast for 2022 and 2023. In January 2023, the World Economic Outlook projects that Growth momentum has been significantly weakened for the developed economies than the developing economies. Global economic activity is experiencing a sharp slowdown than expected.The pandemic and war-led disruption has resulted in global supply chain challenges, and multi-decade high inflation has become the most prominent concern globally.


India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. The Indias growth continues to be resilient despite the global challenges in the Financial year 2022-23. This is evident from the strong investment activity supported by the governments capex push and buoyant private consumption, particularly among higher income earners.

The Indian economy has achieved GDP growth of 7.2% in F.Y 2022-23. Inflation was remained high around 6.7% in the Financial year 2022-23 but the current-account deficit narrowed on the back of strong growth in service exports and easing global commodity prices.With Indias GDP reached at US$3.75 trillion in 2023, it has become the fifth-largest economy in the world.

With an improvement in the economic scenario and the Indian economy recovering from the Covid-19 pandemic, several investments and developments have been made across various sectors of the economy. The private equity - venture capital (PE-VC) sector recorded investments worth US$ 5.3 billion in March, 2023.


Indian economy will take 15 years to make up for the losses incurred due to the pandemic as per the Reserve Bank of Indias Report on Currency and Finance (RCF) for the Financial year 2021-22. The economic fallout from Russias invasion of Ukraine is another massive setback to the global economy including India. One of the major impacts of war on India was a slowdown in the pace of economic growth, at a time when its economy was gradually looking to rise above the pandemic distress.

Inflation, which had already been rising as a result of supply-demand imbalances and policy support during the pandemic, is likely to remain higher for longer period. Financial conditions have also been tightened significantly, putting pressure on a wide range of emerging market and developing economies through higher borrowing costs and the risk of capital outflows.

Faced with an unprecedented pandemic, loss of scores of human lives captured this worst-case scenario.


Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, accounting for approx. 18-20% of Indias GDP. The real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025.The sales in the luxury residential market scaled by 151% year-over-year (y-o-y) in the quarter from January-March, 2023. Emergence of nuclear families, rapid urbanization and rising household income are likely to remain the key drivers for growth in all spheres of real estate. COVID-19 has severely hit residential real estate business and the sector has come to a standstill. However, with each passing year, there has been a hint of a positivity in the real estate market. The year 2022 witnessed that the real estate market grew despite all previous apprehensions and this growth is likely to continue in the years to come. The attitude of customers towards residential properties has seen a substantial shift and with this mindset it will continue to benefit the real estate sector.

Private market investor, Blackstone, which has significantly invested in the Indian real estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion), is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030. Private equity investment inflows into the real estate sector in India stood at US$ 4.2 billion in 2023.

In India, the real estate sector 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.


The residential real estate market size in India is expected to grow, from US$ 182.14 billion in 2023 to US$ 550.83 billion, at a Compound Annual Growth Rate (CAGR) of 24.77% during the forecast period 2023-2028. According to data from Liases Foras, residential sales in the top eight cities in India, including Mumbai, Bengaluru, Chennai, Hyderabad, Delhi NCR, Pune, Ahmedabad, and Kolkata, increased by 18% in Financial year 2022-23, reaching 392 million square feet. This growth was driven by consistent and healthy demand, as well as renewed interest of the homebuyers following the pandemic. Also, there is a significant increase in demand for luxury and big housing spaces due to the need for better lifestyles.

There is a significant number of new and improved product launches in real estate sector to meet market demand. New launches in Financial year 2022-23 have been increased by approx. 60% as compared to the Financial year 2021-22, thus reaching the level of 551 million square feet.

As per property consultant Knight Franks reports, the residential demand in the country is nine years high in terms of annual sales in year 2022. The housing sales were 41% higher y-o-y in terms of units sold in year 2022 as against to year 2021.

At present, your Companys projects are under various stages of implementation across residential, commercial, retail and others. It focuses on mixed use development, particularly in residential projects.


Rapid urbanisation and population growth have stressed the existing infrastructure. As a result, township living has gained importance in the post-Covid-19 world. Indians have been living in close-knit communities since time immemorial. Integrated townships are simply a more specialized, ultramodern and sophisticated real estate model of the same.

Integrated Townships are mammoth real estate projects that have both residential and commercial complexes, and all associated infrastructure like roads, schools, colleges, hospitals, shopping centers, water treatment plants, drainage and sewage facilities, places of worship etc. that come together to form a miniature urban ecosystem.

With urban areas getting increasingly overcrowded and falling frighteningly short on space for further residential and commercial development, integrated townships have been singled out as the ideal solution. Integrated townships are large and roomy and lay emphasis on creating the ultimate living ecosystem for their residents.

Your Company is into development of Townships and it along with its subsidiaries, and associates developing and promoting fully Hi- Tech, integrated and other townships.



While the global commercial real estate market has been struggling in recent years, India has defied this trend, showing steady growth. Today, India is the worlds fifth-largest economy, paving the way to become the third-largest by 2029.

The Commercial Real Estate Market size in India is estimated to grow, from US$ 67.08 billion to US$ 223.25 billion, at a Compound Annual Growth Rate (CAGR) of 27.19% during the forecast period 2023-2028.

Indias commercial sector is well-diversified, with both institutional and domestic players. Moreover, growth from Global Capability Centres (GCCs) in financial services, manufacturing/engineering, and technology will continue to support demand.

Rise in demand for commercial property is one of the factors for countrys economic growth. The demand for office space in the India is driven by reasons such as flexibility, comfort, and convenience.

Commercial office sector continues to remain sluggish with demand not yet reaching the pre-pandemic levels.

With regard to commercial real estate, developers are heading towards newer models of development like co-working office spaces, mixed use development containing retail & office areas to integrated-residential and workspace building projects.


Retail and hospitality are also growing in the commercial real estate market, providing the much-needed infrastructure for Indias growing needs. Indias commercial real estate sector is projected to be accelerated by large-scale investments by institutional investors in the coming years.The retail real estate sector in the country has been dramatically boosted by government initiatives, such as Make in India, and other reforms in the realty sector, such as the introduction of the Real Estate Regulatory Authority (RERA) and GST etc.

Your Companys retail business model includes both the leasing and sale of retail developments. It has developed many modern shopping malls and other retail spaces under the "Ansal Plaza" brand name such as Ansal Plaza in Palam Vihar, Greater Noida, Jalandhar, Ludhiana, Jodhpur, Ajmer, Gurugram, Sonepat. These retail spaces are characterized by better design, quality infrastructure as well as have leisure and entertainment amenities such as multiplexes, food courts and restaurants etc.

The Company through its subsidiaries/associates has forayed into the hospitality segment. Presently, the Group has operational clubs in Jaipur & Lucknow.


The real estate industry of India has undergone significant changes in recent years, driven by factors such as the growth of the Indian economy, urbanization, rising income and increased demand for housing and commercial spaces. The surge in commercial activities alongside a rise in the job market and income levels will naturally translate into increased housing demand.

India will return to pre-pandemic working conditions as various initiative of government will continue to create a very favourable environment for the real estate markets prosperity in the coming years.

Post-pandemic preferences among homebuyers have ushered in a new wave of demand for more spacious homes across India. As per industry reports, the first half of the Financial year 2022-23 register the highest sales in the last 10 years in the seven prime residential markets in the Country. Keeping in view of the current trend, the real estate market will continue its robust growth in the year 2023-24 also.

The Indian real estate sector offers various opportunities for investors, developers, and homebuyers. Here are some key opportunities in the Indian real estate sector:

1. Commercial Real Estate: The commercial real estate segment, including office spaces, shopping malls, and warehouses, offers significant growth opportunities in the Indian real estate sector. With the growth of e-commerce, there is an increasing demand for warehouses and logistics parks.

2. REITs: Since 80% of the underlying assets in Real Estate Investment Trusts (REITs) are required to be operational as well as income-generating, these have emerged as one of the most viable investment options as compared to conventional property purchases. It has proven to be a workable way of diversifying an investment portfolio in a low-risk manner. Even though the pandemic has put them under the pressure of rental cash flows, a positive long-term scenario remains intact.

3. Technology-Enabled Real Estate Services: Digital marketing has emerged as an important tool for real estate developers for their sales and customer outreach. Post-pandemic, the marketing activities are not just limited to tap new customers or brand recognition, but establishing a personal touch through digital means. With tech-enabled tools to close real estate purchases online, developers have been able to record healthy sales even during the lockdown. The developers can leverage digital collaboration tools to interact with potential customers, showcase project brochures, facilitate virtual site tours, and focus on NRIs to propel sales. Emerging tools such as virtual reality, augmented reality,

AI - powered chatbots are being extensively used to establish personalized services with prospective customers. Going ahead, it will be imperative for developers to adapt to a tech-enabled future and the proportion of real estate business generated online is expected to only rise further.

4. Favorable environment for investment: Robust economic recovery of India following the challenges posed by the COVID-19 pandemic and rising demand in the real estate sector have indeed created a favorable environment for global investment opportunities. Over the past few years, India has implemented several structural reforms and initiatives aimed at boosting economic growth, attracting foreign direct investment (FDI) for revitalizing the real estate sector. Initiatives like the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing for all, have fueled demand in the residential real estate segment. Foreign investors are increasingly recognizing the potential of Indias real estate market. The commercial real estate sector, in particular, has seen significant interest from global investors.

5. Government Initiatives under Budget 2023:The Budget 2023 has focused on economic boosters to revive the growth of the real estate sector in India. The budget has announced Rs. 5.54 lakh crore allocation for the infrastructure sector and various tax relief measures, which are expected to support economic growth and create more business opportunities. Therefore, better roads, airports, and railways will improve connectivity and attract investment in the Indian real estate sector. Budget 2023 has also emphasized urban planning in Tier 2 and Tier 3 cities, boosting real estate development in these areas, which will lead to better infrastructure, attracting more investments in the real estate sector. The government has increased the allocation for the PMAY-U scheme by almost 66% to Rs 79,000 crores in the Union Budget 2023. Several measures have been announced to promote the implementation of affordable housing schemes in India. Efforts has been made by government to ensure the completion of the PMAY houses.Also, there was a profound focus on urban capacity building, digitization of land records, and the proposed Special Economic Zone (SEZ) law.


The real estate sector was one of the most effected sectors during Covid-19 and as now it pacing up, growth is expected

in future but a few challenges as well. The real estate sector is constantly evolving with changing trends, regulations, and

technologies etc. but it has its own set of challenges. The key challenges that the Indian real estate industry is facing today

are, inter alia, as follows:-

1. Difficult process of land acquisition: Land purchase for a new project/s in India is quite cumbersome and time consuming job. As large part of the land is occupied by the government / arranged by the government. Therefore, the same is not accessible or available easily to the builders. Through land regulations, land readjustment and land pooling policies, the Government should spare large shares of underutilized and vacant land parcels, which will give relief to the financially aggrieved developers and resulting in improvement in the real estate sector.

2. Financing: The process of construction is lengthy and new small - scale developer need funding at various stages for project implementation. Access to financing is another major challenge for real estate developers in India. Banks are often hesitant to lend to the industry due to high levels of default risk, and interest rates can be prohibitively high. Many realtors fail to deliver their project on time due to funding insufficiency as well.

3. Single Window Clearance: The major obstacle a real estate developer faces are the matter of obtaining various

approvals and that usually takes 18 to 36 months. Single Window Clearance is the biggest challenge faced by the

real estate developers. So, implementing this method will not only bring down the project delivery deadline delay but also the cost of the project implementation. By going online, it will boost the transparency and curb the scope of undue gratification.

4. Rising Interest Rates: With the current upward trend in interest rates for home loans, the cost of borrowing for real estate purchases is likely to increase, making it difficult for some home buyers to afford homes. The steady increase in home prices is making it challenging for many home buyers to purchase a home. In 2023, home prices are expected to continue to rise, which may make it difficult for first-time homebuyers to enter the market.

5. Rising Input Cost: Real estate is a capital and labour intensive industry, thus a rise in the cost of labour creates issues

in the development of the project. Key material like cement and steel have seen a hike in recent past due to shortage

of materials and a surge in fuel prices. Furthermore, unfair practice of certain sections of distributors and some linked industry by unfairly raising the price of supplies creates issues in the project completion.

Other Challenges are as follows:-

• The prices of land and real estate in India have increased exponentially during last decade and caused overpricing of commercial and residential properties. Not too ago, the real estate has been the most favorable destination for investments in India and far ahead than equity or gold. Notably, real estate agents or brokers buy or sell property frequently with their own investments and cause of surging prices in properties which do not reflect genuine public demand.

• Your Company is dependent on its competent directors and senior management team and in the event of loss of key members or failure to attract skilled personnel may adversely affect the business.

• The pandemic led to a halt in the construction of several ongoing projects due to dependency on labour. The non-availability of accomplished and trained labour force and increased cost of manpower and growth in auxiliary infrastructure facilities are the viable challenges.

Overall, these challenges have contributed to a slowdown in the Indian real estate industry in recent years, although there are signs that the market is beginning to recover.


Indias real estate market seems to be looking upwards. The year 2023 may turn out to be a good year for real estate like year 2022. Besides affordable and mid-priced housing, luxury real estate also has a role in the quick turnaround of residential real estate. Post-Covid, the luxury residential market has seen a strong pick up. Expected growth in the number of housing units in urban areas will increase the demand for commercial and retail office space.

Residential real estate was the first to show smart recovery, elevating the sentiments of the entire sector. Commercial real estate is also showing encouraging signs of recovery and growth. As most companies start calling their staff back to work, the demand for office space has also been growing steadily. Looking at the current trends facing the real estate market in India, the future of the industry looks prosperous and is certain to do better in the ongoing decade. Other dynamics will continue to influence the different touchpoints of the real estate industry, like; buyer behavior, prices, interest rates, demand-supply dynamics, cost of raw materials, and demographic shift etc. A good sign is that amidst property appreciation, investors are back in the real estate market.

Responding to an increasingly well-informed consumer base and bearing in mind the aspect of globalization, real estate developers in India have been shifting 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 centralized processes to source material and organize manpower and hiring qualified professionals in areas like project management, architecture and engineering etc.


The Companys strategy for growth is based on continuing to scale and strengthen its core business. However, the initiation of Corporate Insolvency Resolution Process has affected the construction of Companys Projects. The key elements of your Companys business strategy are as follows:

??? Your Company is focusing on completing the construction work of all the Projects in the Nation Capital Region (NCR) as well as in other states of Northern India.

??? Accelerating its cash flows by monetizing its assets from finished stock sales, to consider sale /exit from non-core assets /slow moving investments, if fetching better value and to reduce the debt.

??? Your Company is focusing to repay the debt of the banks and financial institutions to reduce the interest burden. PERFORMANCE

You are already aware that, your Company has presence in North Indian States i.e. Uttar Pradesh, Haryana, Rajasthan and Punjab.

Your Company along with its subsidiary/associate companies etc. have range of real estate business verticals such as Hi

-Tech and Integrated Townships, Group Housings, Malls/ Shopping Complexes, and Clubs etc. Some of the projects in the process of various stages of development are as follows:-

• Projects in the State of Uttar Pradesh • Projects in the State of Haryana
Housing/Townships Housing/Townships
Sushant Golf City (Hi-Tech City)-Lucknow, Sushant City - Meerut.


Sushant City- Kundli, Sunshine County- Kundli, Havanna Heights- Kundli, Europa Residency- Kundli, Sushant City- Panipat, Sushant City- Kurukshetra, Sushant City- Yamuna Nagar, Green Escape- Sonepat.
Shopping Square Sector D, Shopping Square Sector A -Lucknow, Local Shopping Complex - Ghaziabad, Commercial
Local Shopping Complex - Meerut. Galaxy Court- Panipat, Roman Court- Kundli.
• Projects in the State of Punjab • Projects in the State of Rajasthan
Housing/Townships Housing/Townships
Golf Links-I, Golf Links-II, Mohali Sushant City -Ajmer, Sushant City-I Jaipur Sushant
Commercial/Retail/ Industrial Park / Other City-II Jaipur, Anand Lok - Jaipur, Anand Lok Extn. Jaipur, Sushant City -Jodhpur, Sushant Lok -Jodhpur,
Ansal Plaza -Ludhiana. Anand Lok -Jodhpur, Sushant City -Bikaner, Sushant City -Bhilwara.
Ansal Courtyard- Ajmer, Sushant plaza- Ajmer, Sushant Haat- Ajmer, Sushant Plaza (Orchid & Tulip)-Jaipur, Sushant Haat- Jodhpur
Retail/ Industrial Park / Other
Ansal Royal Plaza, Jodhpur


Your Companys long -term strategy to focus on smaller cities, or better known as Tier 2 cities, over the years, continues even now. In the past this strategy has proved to be beneficial considering both the Companys performance and priority in overall development. As already said, your Company is developing many Hi- Tech and Integrated Townships. Despite the current situation, all efforts are being made to ensure the construction of undelivered residential and commercial projects.

Your Company is looking forward to new opportunities. It continues to emphasis and building upon its well-acknowledged brand image of "Ansal Plaza" and "Sushant City". It had successfully launched in the past various Townships and commercial Projects under the Brand Name of Sushant City and Ansal Plaza, respectively.

The said Projects and the following Townships are expected to yield high visibility, status, and effectiveness to your Company:-

??? SUSHANT GOLF CITY - one of Asias largest Hi-Tech Townships- Lucknow

The development of your Companys premiere Hi-Tech Residential Township, Sushant Golf City in Lucknow, Uttar Pradesh sprawling across 6465 acres of land, continues subject to the impact of COVID 19 as well as Ukraine War. It is well known that this ultra- modern township offers wide range of residential/commercial properties with world class facilities. Located along the Amar Shaheed Path on one side & NH-56, Lucknow-Varanasi Highway on the other, located within a noticeably short drive from Lucknow International Airport; Sushant Golf City has already become a preferred destination to live in Lucknow. It has eco-friendly environment with various other world class amenities and gives rise to opportunities for employment, trade, and commerce. It has about 400 acres of land dedicated only to greenery with a world class 18- hole Golf Course designed by Dr. Martin Hawtree, U.K and hence this mega township makes life on the greens a reality. This golf course is now a preferred destination for PGA Tours. The Golf Habitat villas

are state-of-the-art designer villas and have features which not only match with the international class but also redefine luxury in the true sense of the word. Overall, it is a perfect abode for modern living full of amenities.

Notably, possession has already been offered in the past for more than 3500 units in various categories of plots, built- ups and group housings and more than 1200 families have started residing in the township.

Your Company through its group/associates has already launched its established brand "The Palms Golf Club & Resorts" at Lucknow. Some reputed institutions and business centers have also started operating, for example, G D Goenka Public School, S J International School, Jaipuria School, and Kunskapkollon School-A Swedish School in the Township. The retail giant, Walmart, bulk market- place is also operational in the township.

"Medanta, The Medicity" has started construction of its 800-900 bedded, multi-super specialty hospital in your Companys Complex which itself will not only upgrade the stature of Sushant Golf City but will provide quality health care to the other residents of Lucknow city.

Iskcons Spiritual Centre at your Companys complex at Lucknow has become a famous spot attracting devotees from far-flung areas.

Sushant Golf City has been acknowledged by the people in Lucknow and in the State of Uttar Pradesh as "New Lucknow" as it gives quality housing, employment, and opportunities to make profitable investments in the Real Estate sector.

Lulu, an international brand with 136 malls worldwide, is operational with a total built-up space of 2 million sq. ft., with 11 screens (multiplex) along with Lulu hypermarket and amusement park inside the mall at Sushant Golf City, Lucknow

Helipad services were introduced to the township in the year 2016.

I.T hub in the close vicinity of Sushant Golf City, Lucknow, is being developed as a Joint Venture between U.P. Govt. and HCL, Indias fourth largest Information Technology services company, which is spread over 1600 acres which is integrated with Sushant Golf City. An Oncology Hospital has already started its OPD. The well- known brand "Amul" has a factory, which has begun production.

Due to nine ambitious projects initiated under the Hi-Tech Township policy within the State of Uttar Pradesh, your Company has become the unquestioned leader and today the Companys Sushant Golf City at Lucknow is known as one of the best and largest townships being developed by any real estate company.

??? ESENCIA- Green Township of Tomorrow in GURUGRAM

Your Company is to achieve one more "first" with the ESENCIA a Township Project. The aim is to build and sustain a "self-reliant community". Every aspect of the township is designed to conserve natural resources and has minimal adverse impact on the environment. The emphasis is on protection, use and recycling of natural resources.

ESENCIA offers well-designed homes with the best amenities. Strategically located at Sector 67/67A, Golf Course Extension Road, Gurugram, ESENCIA is spread over an area of approx. 142 acres. The township has been registered as the pilot project for rating under GRIHA* (Green Rating for Integrated Habitat Assessment), in India. ADARSH (Association for Development and Research of Sustainable Habitats), an independent, registered society, constituted by the MNRE (Ministry of New and Renewable Energy) and TERI (The Energy & Resources Institute), is helping your Company in this endeavour.

??? Green Escape

Your Company is developing Green Escape project on an area admeasuring 30 acres and strategically located at 8-lane Kundli-Manesar-Palwal expressway at Sonepat (Haryana). It is being created with a vision of an awe-inspiring city-within city that will delight residents with its cosmopolitan, free-spirited atmosphere and unique, invigorating lifestyle. It offers an opportunity to escape from the humdrum and fierce harshness of the urban concrete jungle into the soft, flowing natural lushness of nature. This Project has world class facilities. It is in close vicinity of Indias largest Educational City- Rajeev Gandhi Education City.

??? Golf Link I and II - Integrated Townships in Mohali

Your Company is developing two integrated townships in Mohali, Punjab. First Township is Golf Links I, spread in 240 acres and situated in Sector 114, Mohali, where- in the Company has handed over possession of plots, independent floors, commercial plots and built-up commercials. Army Welfare Housing Organization (AWHO) which had purchased FSI from the Company and built group housing consisting of 1000 high rise units out of which 500 approx. families are already taken possession and staying in it.

The second township is Golf Links II, spread over 106 acres and situated in Sector 116 where the development work is complete, and the Company is in the process of handing over possession of residential plots, and, it also expects to hand over possession of independent floors in due course.

??? Other Integrated Townships

Your Companys other integrated townships are Sushant City, Ajmer, Sushant City, Jaipur, Sushant City, Jodhpur, Sushant City, Meerut and others. The facilities in these townships include health centres, shopping complexes, schools, parks, community centres, and underground parking systems etc.


Your Company is aware that the first step in earning rewards in business is to mitigate the risk involved in business decisions. The Management of risk and opportunities is its inherent responsibility. Throughout its long existence, the Company has taken effective steps to manage its business risks. Many of the risks include economic, regulatory, taxation and environmental risks as well as sectoral investment outlook and uncertainties or emerging risks, which are difficult to quantify or control. Risks emanating from the COVID-19 pandemic, Ukraine War and other global calamity etc. have also emerged which could affect the business of the Company. Nonetheless, it is essential that these are identified so that the Company can have options to deal with them.

Enterprise Risk Management Framework has been successfully implemented within the Organization of your Company with an overall goal to measure the progress in risk mitigation through quantifiable means.


Internal controls and systems serve multiple needs in any organisation. Well- designed Internal control systems lay down the framework for day-to-day operations, provide guidelines for employees and, most importantly, provide a certain level of security against a variety of risks such as fraud and misappropriation.

The primary responsibility for the development and maintenance of internal control rests with an organizations Management. Internal control evaluation involves everything management does to control the organization in the effort to achieve its objectives.

Your Companys internal controls are commensurate with the nature, size and complexities of operations. These internal control systems ensure compliance with all applicable laws and regulations and facilitate optimum utilisation of available resources and protect the interests of all stakeholders.

Your Company has an efficacious Audit Committee consisting of Independent Directors, the details of which have been given in the Corporate Governance Report. Independent Chartered Accountant firm has been appointed as Internal Auditors and effectiveness of internal control mechanism is reviewed by Internal Auditors at regular intervals. The Audit Committee reviews audit reports submitted by the Internal Auditors from time to time.

Suggestions for improvement are considered by the Audit Committee, and its decisions are followed by the Management through the implementation of corrective actions and improvements in business processes. The Committee also meets, from time to time, the Companys Statutory Auditors to ascertain, inter-alia, their views on the adequacy of internal control systems in the Company and also keeps the Board of Directors informed of its significant observations on a regular basis.

Operating Results of the Company


The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013, Regulations

issued by Securities and Exchange Board of India (SEBI) and Indian Accounting Standards. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions and reasonably present your Companys state of affairs, profits and cash flows for the year.

^ Net loss

Net loss for the Financial year 2022-23, on standalone basis is Rs. (38,141.70) lakhs as against loss of Rs. (976.62) lakhs in the previous Financial year 2021-22. This represents (57.64%) and (1.48%) of the total income for the Financial year 2022-23 and 2021-22, respectively.

^ Earning Per Share (EPS)

Basic Earnings per Share {EPS}, on a Standalone basis, of your Company has decreased by Rs.23.59 during the Financial year 2022-23 to Rs. (24.26) per share from Rs. (0.67) per share in the previous Financial year 2021-22. The outstanding shares used in computing the basic EPS is 15,74,04,876 for the year ended on the 31st March, 2023.

^ Financial Performance {Standalone} (1st April, 2022 to 31st March, 2023)

Share Capital:

At present, there is only one class of Equity shares of Rs. 5/- each. The Authorized Share Capital of the Company is Rs 15000 lakhs divided into 2400 lakhs Equity shares of Rs. 5/- each and 30 lakhs Preference shares of Rs. 100/- each.

The Issued, Subscribed and Paid up Equity share Capital of your Company, as on the 31st March, 2023 stood at Rs. 7870.24 lakhs (i.e. 15,74,04,876 Equity shares of Rs. 5/- each, fully paid up).

Reserve & Surplus (R&S):

The total balance of R&S stood at Rs.(27,957.07) lakhs as on the 31st March, 2023 as compared to Rs. 10,184.63 lakhs as on the 31st March, 2022.


During the Financial year 2022-23, the Company has put its efforts not to increase the debt to meet the fund requirements for its expansion plans. Therefore, the loan has been decreased by Rs. 3,242.84 lakhs i.e. from Rs. 37,298.38 lakhs in the previous Financial year 2021-22, to Rs. 34,055.54 lakhs in 2022-23.

Current Assets:

^ Inventories:

During the Financial year 2022-23, Inventory level has decreased by Rs. 45,229.85 lakhs i.e. from Rs. 3,24,793.82 lakhs in 2021-22 to Rs. 2,79,563.97 lakhs in 2022-23.

^ Debtors:

Sundry Debtors stood at Rs. 28,307.90 lakhs as on the 31st March, 2023 as compared to Rs. 18,732.85 lakhs as on the 31st March, 2022. Accordingly, there is increase of Rs. 9,575.05 lakhs. These debts are considered good and realizable.

^ Loans & Advances:

During the Financial year 2022-23, the loans and advances have been decreased by Rs. 12,941.55 lakhs i.e. from Rs. 1,39,302.86 lakhs as on 31st March, 2022 to Rs.1,26,361.31 lakhs as on the 31st March, 2023.

^ Current Liabilities:

Current Liabilities for the Financial year 2022-23 stood at Rs. 5,09,685.69 lakhs as compared to Rs. 5,23,968.63 lakhs in the previous Financial year 2021-22.

^ Net Current Assets:

During the Financial year 2022-23, the net current assets of the Company have been increased by Rs. 18,202.33 lakhs i.e. from Rs. (84,963.99) lakhs as on the 31st March, 2022 to Rs. (1,03,166.32) lakhs as on the 31st March, 2023.

^ Finance Cost:

Interest & other finance cost amount paid by the Company on finances, has been decreased from Rs. 5,868.47 lakhs as at 31st March, 2022 to Rs. 1,437.77 lakhs as at 31st March, 2023.

^ Staff Expenses:

During the Financial year 2022-23, the staff cost of the Company stood at Rs. 1,381.75 lakhs as compared to Rs. 1,203.54 lakhs in the Financial year 2021-22.

^ Depreciation & amortization:

The Company has provided an amount of Rs.98.24 lakhs for depreciation & amortization for the Financial year 2022-23 as compared to Rs. 110.72 lakhs in the Financial year 2021-22.

Details of significant changes in key financial ratios and reasons there of:



Name of Ratio Formula 31s* March 2023 31st March 2022 In term of


/ %





% of change Reasons of change in ratios
1 Debtors Turnover Ratio Sales / Average account receivable 2.69 3.46 Times (0.77) (22)% Due to increase in debtors
2 Inventory Turnover Ratio Cost of Goods sold / Average Inventory 0.15 0.14 Times 0.01 8% No major variance
3 Interest coverage ratio Earnings before interest & tax / Finance Cost (1.49) 0.17 Times (166) (976)% Due to increase in loss.
4 Current ratio Current Assets / Current Liability 0.80 0.84 Times (0.04) (5)% No major variance
5 Debt Equity ratio Total Debt / Total Equity (2.27) 2.54 Times (4.81) (189)% Due to increase in loss
6 Operating Profit Margin Operating Earnings / Total Revenue 19% 27% % -8% (28.02)% Due to decrease in operating profit
7 Net Profit Margin Net Income / Total Revenue (57.71)% (1.59)% % 3530% Due to increase in loss
8 Return on net worth Net Income /



(199)% (6)% % 193% 3326% Due to increase in loss


The main objective of Human Resources is to meet the organizational needs of a company it represents, and the needs of the people hired by a company. In short, it is the hub of an organization serving as a liaison between all concerned. As the cultural up-keeper of an organization it manages the following roles: -

> The process of recruiting and keeping suitable candidates for the organization.

> Identifying and meeting the training needs of existing staff.

> Ensuring employee welfare and employee relations are positive.

> Ensure the working environment is safe for employees.

> Raising awareness of current workplace legislation.

During the Financial year 2022-23, your Company has focused on consolidation, improvement, and reorganisation to meet the existing challenges. While there was an emphasis on the cost side, talent acquisition initiatives were also carried out to fill up specific positions arising out of the business orientation. Initiatives undertaken earlier to improve the human resources effectiveness, continued.

The changes in the Board of Directors of your Company and key managerial personnel are detailed in the Directors Report.

Generally, the Human Resource function in the organization is considered successful since cordial relations are continued to be maintained in respect of the internal as well as external environment for smooth running of the Organization, and, it is also playing a significant role in achieving competitive advantage and excellence in value creation through engaging and involving the organizational workforce.

The strength of the organization, at present, stands about 217 employees on the rolls of the Company and about 347 employees at the group level. They are working in a well-balanced and genial atmosphere.

* Cautionary Statement

Statements in this Report on Managements Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be termed as forward-looking statements within the meaning of applicable laws and regulations. Actual results /outcomes may differ substantially or materially from those expressed or implied. Significant developments that could affect your Companys operations include, apart from any force majeure situation, significant changes in Indias political and economic environment, tax laws, litigation, labor relations, interest, and other costs.


115, Ansal Bhawan,

16, Kasturba Gandhi Marg, New Delhi-110001

For and on behalf of the Board For Ansal Properties and Infrastructure Limited

Date: 05th April, 2024 Place: New Delhi


(Pranav Ansal)

Chairman and Whole Time Director (DIN: 00017804)