Autumn Builders Ltd Management Discussions

Autumn Builders Limited was established under the Companies Act, 1956, on February 25, 2009, having its registered office in the state of West Bengal.

The Company is prominently engaged in the development, sale and lease of commercial, residential, retail and industrial properties, undertakes residential and commercial construction projects. Additionally, the Company also undertakes land development and infrastructure projects. The Company mainly operates in Eastern Indian region and particularly in West Bengal. Our Company is prominently engaged real estate and infrastructure sector. We have started as a construction company undertaking residential and commercial projects. Gradually, the Company has expanded in the infrastructure sector and started executing earthworks including cutting, lifting, transportation, dozing etc.

Presently, our Company is mainly engaged in development, sale and lease of commercial, residential, retail and industrial properties, undertaking residential and commercial construction projects and earthworks including cutting, lifting, transportation and dozing etc. The Company also acts as labour contractor and a sub-contractor in road construction projects. Our Company mainly operates in eastern Indian region and particularly in West Bengal. Recently, the Company has entered into the following development projects:

1. Demolition and Enabling Work for carrying out waterproofing work at podium of Grand Hyatt,

Mumbai.

2. Construction, Earthwork, Lining, Structuring at Package V at Radhanpur for Gannon Dunkerly & Co. Ltd.

The Company is also engaged in trading and distribution of sarees and other commodities in the textile market. Additionally, the Company has also ventured into embroidery on sarees, cotton and silk cloths. Our Company supplies entire range of sarees and other dress materials and apparels and we use creativity, market intelligence and industry experience to select apparels to suit the dynamic needs of young generations. The Company predominantly caters to Kolkata and nearby markets. A dedicated team keeps a close eye on the consumers preference and change in the fashion and taste of the consumers in textile industry. Defining fashion and making it a fusion of the traditional attires with a modern look has been our mission. We are playing an important role in the industry by giving a new dimension to fashion and help it escalate.

Sourcing the material

The main raw materials in infrastructure and real estate sector such as those of construction are sand, cement, iron rod and paints. A wide range of

materials are available for the construction and earthwork in West Bengal. Our Company has always maintained a healthy relation with the material suppliers. The selection of materials and suppliers to be used in a particular building or structure are done by our Company based on the original cost, maintenance, ease of cleaning, durability and transportation cost. Labour is another important factor in real estate sector.

Eastern Indian is also characterized by easy and cheap availability of labour.

Also for the business related to wholesale of textiles, fabrics, yarn, household linen, articles of clothing etc. and based on the changing trends in fashion industry, we explore the various options for sourcing the products. Our Company has always maintained a healthy relation with the vendors. The selection of products and vendors is done by our Company based on the quality of products, current fashion trends, cost of the products, and capacity, credibility, quality awareness and experience of vendors. Our Company also has a dedicated marketing team, which constantly stays in touch with retailers of sarees and other fabric products. The marketing team showcases samples, collects purchase orders and build delivery schedule.

Competition

We operate basically in two broad categorized industries which severally faces intense competition from established as well as unorganized players. Our competition depends on several factors which include quality, price and most importantly timeline for completion in one industry business and our ability to meet the changing trends in fashion industry. Completion of projects in time bound manner and management competencies provide us an edge over our competitors. Similarly defining fashion and making it a fusion of the traditional attires with the modern look provides us edge over our competitors

Working Capital

Our business requires a substantial amount of working capital.

For instance in many cases of the Infrastructure and real estate sector, the working capital is required to finance the purchase of materials before payment is received from customers, in addition to that our working capital comprises of receivables from our debtors. Our working capital requirements may increase if, in certain contracts, payment terms do not provide for advance payments to us or if payment schedules are less favorable for us.

Similarly in the textile market a significant amount of working capital is required to finance the purchase of products and fabric for embroidery unit. In addition to that, our working capital comprises of receivables from our debtors. Our working capital requirements increases just before the festive season get started in order to store more varieties products/clothing. Our working capital requirements may increase if, in certain contracts, payment terms do not provide for advance payments to us or if payment schedules are less favorable to us.

Industry

Infrastructure and real estate sector in India has been most dynamic sectors of the economy, becoming driving force for economic growth in the country and has been witnessing changing trends with every passing day. Presently, the real estate market is flooded with low cost, or with luxury housing projects. More and more builders and developers are hooked on to affordable housing segment realizing its vast potential in the economy. With property prices stagnation spreading in all directions, real estate in India is undergoing realignment. However, the growth also depends on the policies adopted by the government to facilitate investments mainly in the economic and industrial sector

The other industry in which the company is engaged the Indian textiles industry, is currently estimated at around US$ 108 billion, is expected to reach US$ 223 billion by 2022. The industry is the second largest employer after agriculture, providing employment to over 45 million people directly and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to Indias gross domestic product (GDP), and 14 per cent to overall Index of Industrial Production (IIP).

The Indian textile industry has the potential to reach US$ 500 billion in size according to a study by Wazir Advisors and PCI Xylenes &

Polyester. The growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports are implied to increase to US$ 185 billion from approximately US$ 41 billion currently.

Internal Control System and their Adequacy

The Company has a proper and adequate system of internal control commensurate with its size and business operation to ensure timely and accurate financial reporting in accordance with applicable accounting standards and compliance with all applicable regulatory laws and Company policies.

Human Resources

The Company imparts training to all the employees based on individual needs. It also encourages the employees to attend external seminars. The Company has both skilled and unskilled workers. The Company takes requisite steps to impart training to the unskilled workers based on their individual needs to enhance their performance.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include significant changes in political and economic environment in India, exchange rate fluctuations, tax laws, litigation, labour relations and interest costs.

CHIEF EXECUTIVE OFFICER (CEO) CERTIFICATION

We, have reviewed the financial statements and the cash flow statement of the Company for the financial year ended on 31st March, 2023 and to the best of our knowledge and belief, we certify that -

1. The Statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; that the Statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

2. There are no fraudulent or illegal transactions.

3. For the purposes of financial reporting, we accept the responsibility for establishing and maintaining the internal controls which are monitored by the Companys Internal Audit Team and have evaluated based on feedbacks received from the Companys Internal Audit Team, the effectiveness of the internal control systems of the Company pertaining to financial reporting and have reported to the Auditors and the Audit Committee, the deficiencies, if any, in the operation and design of such internal controls.

4. We have indicated to the Auditors and the Audit Committee:

(i) significant changes, if any in the internal control over financial reporting during the year;

(ii) significant changes, if any in accounting policies made during the year and the same have been disclosed in the notes to the financial statements; and

(iii) Instance of significant fraud, if any of which we have become aware and the involvement therein, if any of the management or an employee having a significant role in the Companys internal control system over financial reporting.