We submit herewith our Management Discussion & Analysis Report on the Companys
Business for the year ended 31st March, 2023. We have attempted to include on all
specified matters to the extent relevant or within limits that in our opinion are imposed
by the Companys competitive position.
ECONOMY OVERVIEW INDIAN ECONOMY
India outperformed and repositioned itself amongst the worlds fastest growing
economies, even as most developed countries faced slowing growth amidst high inflation in
FY 202223. The Reserve Bank of India (RBI) has also increased the repo rate by 250 basis
points to 6.50% in FY 2022-23 to curb inflation and boost economic growth. The accelerated
pace of economic reforms has led to the sustainable growth of the Indian economy and
strengthened its position in the world.
INDUSTRY OVERVIEW
INDIAN REAL ESTATE SECTOR
The real estate sector in India is one of the most globally recognized sectors and the
second-highest employment generator, after the agriculture sector. 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 accommodation.
The real estate sector in India has assumed growing importance with the liberalization
of the economy. The consequent increase in business opportunities and migration of the
labour force has, in turn, increased the demand for commercial and housing space,
especially rental housing.
The real estate sector is one of the most globally recognized sectors. It 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 accommodation. The construction industry ranks third
among the 14 major sectors in terms of direct, indirect and induced effects in all sectors
of the economy.
In India, the real estate sector is the second-highest employment generator, after the
agriculture sector. It is also expected that this sector will incur more non-resident
Indian (NRI) investment, both in the short term and the long term
The sector is expected to continue its journey of long-term growth with continuous rise
in GDP per capita, higher disposable incomes, growing urbanisation, and most of all, a
larger focus on India to emerge as the next big economy.
NCR (NATIONAL CAPITAL REGION) RESIDENTIAL REAL ESTATE
In 2022, the National Capital Region (NCR)s primary residential market was on a
substantial upward trajectory as strong homebuying demand accentuated by the pandemic
continued throughout the year. Despite the cumulative repo rate hike of 225 basis points
in the year, the total sales reached a nine-year high at 58,460 units, a 67% growth over
2021. Buoyed by a sustained demand scenario and limited availability of ready to move in
inventory, developers have been scaling up new launches since the beginning of 2022. In
2022, 62,233 units were launched, taking the launch total to a seven-year high. Due to the
limited launch of new residential projects in 2021 because of the pandemic, this
translates into a 207% YoY growth over 2021.
NCR COMMERCIAL REAL ESTATE
The National Capital Region (NCR) office market witnessed a 10-year high in office
spaces leased during 2022. The office transaction volume surpassed all previous records of
pre-Covid years, reporting a strong upsurge in market volume at 0.8 mn sq m (8.9 mn sq
ft), a 39% YoY growth over 2021. Office spaces transacted in NCR made it one of the
best-performing office markets in terms of office leasing across the top eight cities in
2022 as the return to office transition continued. There has been a significant increase
in office space occupancies in 2022 as occupiers expanded footprints across business
districts of NCR. In H2 2022, nearly 0.4 mn sq m (4.8 mn sq ft) office space was leased in
NCR, marking a 20% YoY growth.
STATE OF AFFAIRS OF THE COMPANY
Grovy India Ltd is a Real Estate & Infrastructure Development and Consultancy
Company established the year 1985. Grovy has completed more than 80 projects, satisfied
over 500 Customers and has footprint in 4 Northern States of India.
The Company is equipped with teams of skilled and experienced engineers, architects,
planners and designers, 40 years of experienced and young graduates from top universities.
We have established ourself as creators of Boutique Properties which are truly one of
its kind
Strong domain expertise and understanding of the NCR market, long-term relations with
local supply chains, robust execution capabilities and innovative offerings underpin the
operations of the Company and have made it a preferred player.
FUTURE OUTLOOK
2022 was a turnaround year for the real estate industry for segments such as
residential and retail, recovering from the COVID-19 lows and recording strong
year-on-year growth. A growing economy, return to pre-pandemic working conditions, and
various government initiatives will create a favourable environment for the real estate
markets prosperity As a move forward and with the help of information technology, your
Company is planning to explore new market. Our outlook is very positive and we expect to
continue doing well in near future.
OPERATION REVIEW
Your Company is engaged in to the Business of development of property and trading of
shares and commodities. During the year under review, your Company has shown commendable
performance and managed to generate a net profit of Rs. 90.52 Lakhs. Your Directors are
confident of improved performance by the Company in financial year 202324
Except, as disclosed elsewhere in the Report, there have been no material changes and
commitments, which can affect the financial position of the Company between the end of the
Financial Year and the date of this Report.
BUSINESS SEGMENTS:
Your Company is engaged into the Businesses listed as under: a) Construction Business:
Residential Segment:
Your company, Grovy India Limited has completed their projects and sustains credi
bility among its customers by providing possession on time and quality of work to all of
them.
| Project Location |
Constructed Area |
Project Status |
Project Type |
| South Delhi |
10,000 Sq. Ft. |
Completed |
Residential Project |
| Noida |
15, ,000 Sq. Ft. |
Completed |
Residential Project |
| South Delhi |
10,000 Sq. Ft. |
On-going |
Residential Project |
| South Delhi |
15,000 Sq. Ft. |
On-going |
Residential Project |
| South Delhi |
20,000 Sq. Ft. |
On-going |
Residential Project |
| South Delhi |
15,000 Sq. Ft. |
Project in pipeline |
Residential Project |
| South Delhi |
15,000 Sq. Ft. |
Project in pipeline |
Residential Project |
| South Delhi |
20,000 Sq. Ft. |
On-going |
Residential Project |
| South Delhi |
10,000 Sq. Ft. |
Completed |
Residential Project |
| South Delhi |
10,000 Sq. Ft. |
On-going |
Residential Project |
b) Shares Trading:
Your Company is also engaged in trading of Shares, commodities, Currencies, and other
financial instruments. This segment is also very important in the view of present
situation of the Indian Capital Market.
During the year under review, the Company had a revenue of Rs.. 1.13 (In Lakhs) from
the shares trading business. Management believes that Company has the potential to compete
with its peer competitors in the same business and may be emerged as big name in the
coming years.
Key Financial ratios
Pursuant to Schedule V (B) to the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
| S. No. |
Ratio |
2022-23 |
2021-22 |
| 1. |
Current ratio |
2.51 |
2.83 |
| 2. |
Debt Equity ratio |
0.58 |
0.57 |
| 3. |
Debt Service Coverage Ratio |
4.78 |
16.16 |
| 4. |
Return on equity |
6.18 % |
9.64% |
| 5. |
Inventory Turnover ratio |
1.10 |
1.56 |
| 6. |
Trade Receivable turnover ratio |
NA |
272.22 |
| 7. |
Net capital turnover ratio |
1.30 |
2.03 |
| 8. |
Net profit ratio |
4.33% |
4.99% |
| 9. |
Return on Capital Employed |
5.39% |
6.23% |
| 10. |
Return on investment |
5.60% |
6.52% |
ENVIRONMENT & SAFETY
We are conscious of the need of the environmentally clean and safe operations. Our
policy requires all operations to be conducted in way so as to ensure safety of all
concerned, compliance of statutory and industrial requirement for environment protection
and conservation of natural resources.
HUMAN RESOURES AND INDUSTRIAL RELATION
Employees are the backbone of the Company and crucial for the organisations continued
success. The Company strives to foster a conducive environment to attract and retain the
best talent and ensure employee welfare with its robust HR policies and practices.
To boost employee capabilities, the Company conducts numerous skill development and
learning programmes. The Company draws on a wide range of information, qualifications,
skills, professional experience, culture, geography, and industry understanding.
The Company gives utmost importance to health and safety management and conducts mock
trainings and drills on a regular basis to ensure preparedness.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has a robust internal control framework commensurate with the size and
complexity of its business operations. Well-documented policies, guidelines, and
procedures are put in place for monitoring business and operational performance, ensuring
safeguarding of assets and compliance with laws and regulations, and proper reporting of
financial transactions. Periodic audits are conducted by the independent internal audit
firm to ensure the adequacy and effectiveness of internal control systems. The Companys
robust MIS system assists in rigorous monitoring of data to confirm that all major
expenses are within the budgeted limits.
RISK AND CONCERNS
The Company believes that an effective, consistent and sustainable risk management
framework is an essential part of the work culture. Risk management must be fully
integrated into the organisations governance policies. It is vital to identify, assess
and act to minimise various risks. Some of the key risks identified include: Uncertainty
about demand conditions given sluggish global economic recovery and its likely contagion
effects, regulatory issues regarding environment clearance and land acquisitions as well
as sector specific issues like high cost of capital have stagnated the growth in the
economy of our country.
CAUTIONARY STATEMENT
The Management Discussion and Analysis contains statements for describing the Companys
objectives, projections, estimates, expectation or predictions. These statements are
forward-looking in nature and are within the meaning of applicable securities laws and
regulations. The Company has undertaken various assessments and analysis to make
assumptions on future expectations on business development. However, various risks and
unknown factors could cause differences in the actual developments from our expectations.
Important factors that could make a difference to the Companys operations include
macro-economic developments in the country and improvement in the state of capital
markets, changes in the Governmental regulations, taxes, laws and other statutes and other
incidental factors. The Company undertakes no obligation to publicly revise any
forward-looking statements to reflect future/likely events or circumstances.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
Date: 25.08.2023 Place: New Delhi
SD/-
(Prakash Chand Jalan) Director DIN: 00475545
SD/-
(Nishit Jalan) Whole-Time Director & CEO DIN: 002964239
+91-9892691696
