Crane Infrastructure Ltd Management Discussions

Industry Overview & Future Outlook

The real estate sector is one of the most recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30% over the next decade. 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 of 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 global warehousing and storage industry has witnessed significant growth during the last five years. The Indian warehousing industry is set to grow at a CAGR of 8%-10% and modern warehousing at 25%- 30% over the next 5 years due to various factors including the anticipated increase in global demand, growth in organized retail and increasing manufacturing activities, presence of extremely affordable and desirable e-commerce options and growth in international trade. The Government of India along with the governments of the respective states have taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for the real estate companies.

Business Overview: The Board of

Directors of the Company, during the year, have explored all the possibilities to develop its properties. Although there is acute shortage of quality warehousing facilities, due to prevailing subdued market conditions and increasing input costs, the Company has been adopting a conscious approach. Many of the projects are at different stages of planning as well as getting requisite statutory approvals, which will help to move forward, when the conditions improve. In the medium term, the Company also plans for development of transport infrastructure projects, such as Logistics Parks, Warehouses, truck terminals, FTWZs etc in a phased manner. The revenue stream for these projects will primarily be lease based, on long term basis. In case of developing Logistics Parks & Warehouses, your Company shall be looking for strategic partners/investors

having long term perspective with reasonable return expectation once the requisite permissions etc. are in place. Many of these projects are presently at various levels of planning as well as of getting requisite statutory approvals. Management will keep you informed on the development plans, from time to time

Companys performance

During the Year under review revenue from operations for the financial year 2024-25 was 137.12 and for the previous financial year 2023-24 was Rs.353.11 lakhs and it was decreased by (61.16 % ) over the previous.. Profit Before tax (PBT) for the financial year 2024-25 was Rs.85.04 Lakhs and for the previous financial year 2023-24 was 187.13, it was decreased by (54.55 %) over last year. Profit After tax (PAT) for the financial year 2024-25 was Rs.66.36 Lakhs and for the previous financial year 2023-24 was 144.97.it was decreased by (54.22%) over the last year. In the previous financial year due to sale of the land inventory, the revenue and profit of the company increased significantly.

Details of Significant changes (i.e change of 25% or more as compared to immediately previous financial year) in the following key financial ratios along with explanations:

Current ratio: Current Assets divided by Current liabilities.

It was 2.55 times in the financial year 2024-25 and it was 1.30 times in the previous financial year 2023-24.

Reasons for change more than 25%:

The reason for the same was increase in current assets and decrease in current liabilities during the financial year 202425.

Return on Equity ratio: Net profit after tax divided by Equity.

The ratio for the f.y 2024-25 was 13.56% and for the f.y 2023-24 was 27.66%.The percentage change compared to previous year was (50.97%).

Reasons for change more than 25%:

It was mainly due to decrease in gross receipts and profit.

Trade Receivables turnover ratio (in Times):

Credit sales divided by closing trade receivables.

The ratio for the f.y 2024-25 was 168.87 and for the f.y 2023-24 was 434.80.The percentage change compared to previous year was (61.16%).

Reasons for change more than 25%:

It was mainly due to decrease in Gross receipts.

Net Capital turnover ratio (in Times):

Turnover divided by working capital.

The ratio for the f.y 2024-25 was 2.55 and for the f.y 2023-24 was 9.13 .The percentage change compared to previous year was (72.10%).

Reasons for change more than 25%:

It was mainly due to decrease in Gross receipts

Net Profit Ratio: Net Profit after tax divided by Sales.

The ratio for the f.y 2024-25 was 48.39% and for the f.y 2023-24 was 113.16% .The percentage change compared to previous year was (50.97%).

Reasons for change more than 25%:

It was mainly due to decrease in gross receipts and profit.

Return on Capital Employed: Net profit before tax divided by capital employed, where as capital employed is Total assets - Total Liabilities.

The ratio for the f.y 2024-25 was 13.56% and for the f.y 2023-24 was 27.66.The percentage change compared to previous year was (50.97%).

Reasons for change more than 25%:

It was mainly due to decrease in gross receipts and profit

Details of non Significant changes (ie change is not more than 25% as compared to immediately previous financial year) in the following key financial ratios:

Debt Equity Ratio: Total outside liabilities shareholders funds

Not applicable since there is no debt/outside liabilities to the company.

Debt Service Coverage Ratio: Earnings available for debt services divided by Total Interest and principal repayments.: Since there is no debts (from Banks or financial institutions) and interest charge to the company which is repayable, the ratio is not given.

Inventory Turnover Ratio: Cost of goods Sold divided by closing Inventory. Since there is no movement of stocks, the ratio is not given.

Trade Payable Turnover Ratio: Credit purchases divided by closing trade payables.

Since there are not trade payables, the ratio is not given.

Return on Investment: Since there are no investments made by the company, the ratio is not provided.

Threats, Risks & Concerns This sector faces various degrees of uncertainty, both at the macro and micro levels. The Company being in the same sector is not an exception. Right from the time of acquisition of land for construction, to the time of sale of finished properties, the Company faces various regulatory requirements. Some of these requirements such as land acquisition, permitted land use, approval from multiple government authorities, development of land and construction thereon, stringent environmental and safety standards etc. increases cost as well as affects timeliness of a project.

Material Developments In Human Resources/Industrial Relations The

timely availability of skilled and technical personnel is one of the key challenges. The Company maintains healthy and motivating work environment through various measures.

There were no material developments in human resources /Industrial relations during the financial year 2024-25.

As of 31^stMarch 2025, your Company had no permanent employees on its rolls except the company secretary and compliance officer.

Internal Control System and Its Adequacy the Company has an adequate internal control systems, commensurate with size and nature of its business. The system is supported by documented policies, guidelines and procedures to monitor business and operational performance which are aimed at ensuring business integrity and promoting operational efficiency. Internal controls are supplemented by an extensive programme of internal audit, review by management with reference to the documented policies, guidelines and procedures. These controls are designed to ensure that financial and other records are reliable for preparing financial information and other reports and for maintaining regular accountability of the Companys assets and operations.

Cautionary Statement Certain Statements found in the Management Discussion and Analysis Report may constitute "Forward Looking Statements" within the meaning of applicable securities laws and regulations. These forward looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance and achievements expressed or implied by these statements.

M/s K.SrinivasaRao& Naga Raju Associates., Company Secretaries, Vijayawada have certified none of the Directors on the Board of the Company as stated for the Financial Year ending on 31^st March, 2025 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Annexure: III

Whistle Blower Policy

1. Spirit and Scope of the Policy

(a) This policy aims to:

Provide avenues for Employees and Directors to raise concerns and receive feedback on

• Any action taken

• Provide avenue for Employees and Directors to report breach of Companys policies

• Reassure Employees and Directors that they will be protected from reprisals or

• Victimization for Whistle Blowing in good faith.

(b) There are existing procedures in place to enable employees to lodge a grievance relating to their own employment. This Whistle Blowing Policy is intended to cover concerns that fall outside the scope of other procedures. That concern may be about an act or omission that:

• Is unlawful or in breach of any law;

• Is against the Companys Polices;

• Falls below established standards or practices; or

• Amounts to improper conduct, unethical

behaviour or suspected fraud

2. Safeguards

(a) Harassment or Victimization the Company recognizes that the decision to report a concern can be a difficult one to make, not least because of the fear of reprisal from those responsible for the malpractice or from superiors. The Company will not tolerate harassment or victimization and will take action to protect an individual when they raise a concern in good faith. In case, a Whistle Blower is already the subject of any disciplinary action those procedures will not be halted as a result of their Whistle Blowing.

(b) Confidentiality: The Company will do its best to protect an individuals identity when s/he raises a concern and does not want their name to be disclosed. It must be appreciated that a statement from the Whistle Blower may be required as part of the evidence in the investigation process.

(c) Anonymous Allegations: This Policy encourages individuals to put their names to allegations. However, individuals may raise concerns anonymously. Concerns expressed anonymously will be evaluated by the Company for investigation. In exercising this discretion, the factors to be taken into account would include:

> The seriousness of the issue raised;

> The credibility of the concern; and

> The likelihood of confirming the allegation from attributable sources.

(d) Untrue Allegations If the Whistle Blower makes an allegation in good faith, which is not confirmed by the investigation, no action will be taken against the Whistle Blower. If a complaint is malicious or vexatious, disciplinary action will be taken.

3. Raising a Concern

(a) Operational concerns shall be raised with Line Manager or Skip Line Manager. Whistle blowing mechanism should be used for potentially serious or sensitive issues.

(b) The first step should be to approach the relevant Business Head. In case the Business Head or Senior Management is the subject of complaint, the employees can directly reach out to Executive Director. If the Business Head finds the Whistle Blower complaint to be substantiated, she/he will consult with the Executive Director on referring it to the appropriate body formed by the Company for such purposes. Employees of the HR/ Legal Directors Services should raise their concerns with the Executive Director.

(c) Employees may send in written communications to company secretary - Corporate Policies and Compliances, C/o Legal Department and secretarial department at HO.

(d) The background and history of the concern, giving names, dates and places where possible, should be set out and the reason why the individual is particularly concerned about the situation. Those who do not feel able to put their concern in writing can telephone or meet the appropriate officer (immediate superior or Executive Director).

(e) The complainant is not expected to prove the truth of allegation, but should be able to demonstrate that there are sufficient grounds for concern. Employees must raise concerns immediately. This will support investigation process and enable faster implementation of corrective actions, if any.

(f) Advice and guidance on how matters of concern may be pursued can be obtained from the company secretary.

(g) In case of any serious concerns, the Whistle Blower may also directly approach the Chairperson of the Audit Committee.

4. How the Complaint Will Be Dealt With

(a) The concerns raised may be dealt in following ways:

> Form the subject of an independent inquiry;

> Be investigated internally;

> Be referred to the external Auditor; or

> Be referred to the police; if required.

(b) Upon receipt of a concern, an initial enquiry will be made to decide whether an investigation is appropriate and, if so, what form it should take. Some concerns may also be resolved by an agreed action without the need for investigation. (c) After the concern has been evaluated, the Company will write to the complainant: acknowledging that the concern has been received;

> Indicating how it is proposed to be dealt with;

> Informing whether further investigations will take place, and if not, why not.

(d) The amount of contact between the body considering the issues and the complainant will depend on the nature of the matters raised, the potential difficulties involved and the clarity of the information provided. If necessary, further information will be sought from the complainant.

(e) The Company will take steps to protect the Whistle Blower from victimization and minimize any difficulties which a person reporting under Whistle Blowing may experience as a result of raising a concern.

(f) The Company accepts and would take such steps as may be required to assure the Whistle Blower that the matter has been appropriately addressed.

5. Reporting

The concerns raised under Whistle Blowing shall be reported periodically to Audit Committee or other committee formed for this purpose of the Company.

1. The Compliance Officer

The Company Secretary acting as the Compliance Officer of the Company shall also act as the Compliance Officer under the Whistle Blowing Policy.

2. Address for reporting and communication:

Write to the Compliance Officer - Corporate Policies and Compliances,

Crane Infrastructure Limited, Main Road, Sampath Nagar, Guntur. Ap.

DECLARATION REGARDING

COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH THE COMPANYS CODE OF CONDUCT

This is to confirm that the company has adopted code of conduct for its employees including the managing director. In addition the company has adopted its code of conduct for its non executive directors. I confirm that the company in respect of the financial year ended march 31, 2025 received declaration regarding the adherence to the code of conduct from its senior management of the company and the members of the board of directors of the company.

Date: 29-05-2025
Place: Guntur
Kothuri Praveen	CHVSS Kishore Kumar
Executive Directo	, CFO & Director
DIN : 07143744	DIN : 01823606