Epsom Properties Ltd Management Discussions

EPSOM PROPERTIES LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS 1. Operations: The total income for the financial year ending on 31/03/2012 stands Rs.10.27 lakhs as against Rs.6.14 lakhs for the financial year ending on 31/03/2011 thereby recording an increase of 67.26% over the previous financial year; that the total expenditure has declined from Rs. 20.11 lakhs for the financial year ending on 31/03/2011 to Rs. 15.29 lakhs for the financial year ending on 31/03/2012 thereby registering a decrease of 23.97% over the previous financial year and that the net loss of the Company has come down to Rs. 5.03 lakhs for the financial year ending on 31/03/2012 from Rs. 13.97 lakhs in the previous financial year ending on 31/03/2011 thereby registering a decrease of 63.99% over the previous financial year. 2. Outlook: The Outlook for the Company looks bright. 3. Deployment of proceeds of preferential issue:- The Company has kept the funds received from the promoters through preferential issue in fixed deposit with the IDBI Bank Limited and would be deployed solely for long term and short tam working capital requirements. 4. Opportunities, challenges, risks and concerns: The Company is in the process of strengthening the risk management framework and taking cost control and cost reduction measures to mitigate any adverse impact on the operations. Hardening of interest rates, fixed competition, fluctuating foreign currency are challenges thrown open to the industry. Nevertheless, the Directors are confident of converting the challenges into opportunities with the experience gained over a period of time. Unfavourable factors such as economic slow down, inflationary pressure and spiraling of input cost and other external factors can affect the productivity of the Company.