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 2023-24 was 353.11 and for the previous financial year 202223 it was Rs.102.94 lakhs and it was increased by 243 % over the previous financial year due to sale of the land inventory. Profit Before tax (PBT) for the financial year 2023-24 was Rs.187.13 Lakhs and for the previous financial year 2022-23 it was 52.46, it was increased by 256.7 % over last year Profit After tax (PAT) for the financial year 202324 was Rs.144.97 Lakhs and it was 39.20 for the previous financial year 2022-23,it was increased by 269.82 % over the last year.

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

The ratio for the f.y 2023-24 was 0.06 and for the f.y 2022-23 was 0.18.The percentage change compared to previous year was (65.85%). Reasons for change more than 25%:

This ratio has been Decreased from 0.18 in March, 2023 to 0.06 in March, 2024 mainly due to decrease in profit , The reason for the same as follows: Negative changes in "Changes in inventories of finished goods, Stock-in-trade and Work-in-Progress "and low gross revenue which resulted the high gross and net profit The reason for decrease in net profit during the F.Y 2023-24 was due to the positive changes in "Changes in inventories of finished goods, Stock-in-trade and Work-in-Progress". It was happened due to the sale of land in the previous F.Y2022-23.

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

The ratio for the f.y 2023-24 was 0.11 and for the f.y 2022-23 was 0.34.The percentage change compared to previous year was (67.12%).

Reasons for change more than 25%:

This ratio has been Decreased from 0.34 in March, 2023 to 0.11 in March, 2024.The reason for the same as follows: Negative changes in "Changes in inventories of finished goods, Stock-in-trade and Work-in-Progress "and low gross revenue which resulted the high gross and net profit The reason for decrease in net profit during the F.Y 2023-24 was due to the positive changes in "Changes in inventories of finished goods, Stock- in-trade and Work-in-Progress". It was happened due to the sale of land in the previous FY.2022- 23.

Trade Receivables turnover ratio:

Credit sales divided by closing trade receivables.

The ratio for the f.y 2023-24 was 434.8 and for the f.y 2022-23 was 126.83.The percentage change compared to previous year was 242.82.

Reasons for change more than 25%:

This ratio has been increased from 126.83 in March, 2023 to 434.80 in March, 2024 mainly due to increase in gross revenue and decrease in trade receivables..

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

The ratio for the f.y 2023-24 was 0.41 and for the f.y 2022-23 was 1.41 .The percentage change compared to previous year was (70.85%).

Reasons for change more than 25%:

This ratio has been decreased from 1.41 in March, 2023 to 0.41 in March, 2024 mainly due to decrease in gross revenue and corresponding decrease in net 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:

Current ratio:Current Assets divided by Current liabilities.

It was 1.30 times in the financial year 2023-24 and it was 1.51 times in the previous financial year 2022-23.

Debt Equity Ratio:Total Debt divided by Total Equity

The ratio for the f.y 2023-24 was 0.065 and for the f.y 2022-23 was 0.07.The percentage change compared to previous year was -11.09%

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 2023-24.

As of 31^stMarch 2024, 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 withreference 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, 2024 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.