Hemang Resources Ltd Management Discussions

COAL INDUSTRY

Coal sector plays a crucial role in a country like India where energy security is a critical pillar for sustained economic growth and prosperity. The energy security of the country and its prosperity are integrally linked to efficient and effective use of its most abundant, affordable and dependent fuel, coal.

Today India is the 2nd largest producer of coal in the world. The All-India Coal Production during 2024-25 stood at 1047.69 MT with a positive growth of 4.99%. In Indias energy sector, coal remains the predominant source of primary commercial energy. As of 2024, India has substantial coal reserves, estimated at approximately 389.42 billion tonnes by the Geological Survey of India (GSI). Of these reserves, about 95% consists of non-coking coal, which is primarily used for power generation and industrial applications. Coking coal, which is used in steel production, constitutes a smaller portion of the total reserves.

In Indias energy sector, coal continues to play a crucial role, accounting for approximately 5560% of the primary commercial energy supply. India has a balanced energy basket and coal sector is an important contributor in fulfilling nations energy needs. The sector is not only committed to meet coal demand in the country but also sensitive towards building a sustainable ecosystem. Coal is a critical input for power, fertilizer, iron & steel and cement sector. Indias coal imports dropped by 7.9 per cent to 243.62 million tones (MT) in FY 2025 against 264.53 MT in the year-ago period, driven by softness in seaborne prices and likelihood of increase in power demand during summer.

Details of import of coal and products i.e. coke during the last four years including the current year is as under:

Coal	2021-22	2022-23	2023-24	2024-25
Coking Coal	57.16	56.05	58.81	57.58
Non-Coking Coal	151.77	181.62	205.72	186.05
Total Coal Import	208.93	237.67	264.53	243.63
Coke	2.48	3.63	3.96	4.88

https:/ / coal.gov.in/en/major-statistics/ production-and-supplies REAL ESTATE INDUSTRY

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. The real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021. By 2025, it will contribute 13% to the countrys GDP. The emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial, and retail. Rapid urbanisation in the country is pushing the growth of real estate.

The Indian real estate market is projected to experience a substantial increase, potentially reaching a value of US$ 5-7 trillion by the year 2047, with the possibility of surpassing US$ 10 trillion.

Construction is one of the largest sectors in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at Rs. 3,94,340 crore (US$ 45.75 billion) from April 2000- March 2025

In the first quarter of CY25 (January-March), Indias residential real estate market experienced a notable slowdown, with total housing sales across the top seven cities declining by 28% year- on-year to approximately 93,280 units, down from over 1.30 lakh units in Q1 2024

In FY23, Indias residential property market witnessed with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore (US$ 42 billion), marking a robust 48% YoY increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold.

Housing sales across the top seven Indian cities saw a slight dip of 4% in 2024, with around 4.59 lakh units sold compared to 4.76 lakh in 2023, as per ANAROCK data.

Housing demand surged 77% from FY19 to FY25 with 5.44 lakh homes registered across major cities, showing strong buyer interest despite rising prices.

Indian real estate developers operating in the countrys major urban centres are poised to achieve a significant feat in 2023, with the completion of approximately 5,58,000 homes.

In 2023, luxury home sales in India priced at Rs. 4 crore (US$ 481,927) and above surged by 75%, doubling their share of total housing sales.

In FY24-25, India recorded Foreign Tourist Arrivals (FTAs) of 9.66 million (Provisional) which account for Foreign Exchange Earnings (FEEs) of Rs. 2,77,842 crores (US$ 32.23 Billion) with a growth of 19.8%.

Indias office sector had a record-breaking 2024, clocking 89 million sq. ft. of gross leasing across the top 8 cities ? the highest ever. This marks a 19% jump over 2023, surpassing the previous peak by 14 million sq. ft.

For the first time, gross leasing in Indias top 7 markets surpassed the 60 million sq ft mark, reaching an impressive total of 62.98 million sq ft, marking a substantial 26.4% increase compared to the previous year. Notably, the December quarter emerged as the busiest quarter on record, with gross leasing hitting 20.94 million sq ft.

Private equity investment in Indian real estate hit US$ 742million (Rs. 64 billion) in the first quarter of 2025, a strong 35% jump compared to the same period last year, according to Savills India.

Indian real estate attracted Rs. 35,300 crore (US$ 4.15 billion) in private equity (PE) investments in 2024, marking a 32% annual increase, according to Knight Frank Indias Trends in Private Equity Investment in India 2024 report.

The Indian real estate sector witnessed strong Private Equity investments in Indias real estate sector, stood at US$ 3 billion in the first half of 2024.

CBRE anticipated 14% increase in gross leasing transactions for office spaces across nine major cities in calendar year 2024, with a projected total of 70 million square feet. This growth is attributed to increased demand from both global and domestic corporate entities.

The Smart Cities Mission presents a major opportunity for real estate developers by targeting the development of 100 smart cities in India, stimulating the growth of commercial centers in their vicinity. Demand for industrial and logistics space hit a record in 2023, totaling 38.8 million square feet across 8 cities.

Foreign investments in the commercial real estate sector were at US$ 10.3 billion between 20172021. As of February 2022, Developers expected demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.

Blackstone agreed to acquire a 40% stake in Kolte-Patil Developers for $134 million, involving both preferential shares and a secondary stake purchase.

Brookfield India REIT acquired a 50% stake in four Bharti properties, including Wordmark Aerocity. In return, Bharti got an 8.5% stake in the REIT, while Brookfield secured first rights to buy the rest after April 2026

Godrej Properties recorded all-time high sales of ?29,444 crore in FY25, selling 15,302 homes up 31% in value and 29% in volume year-on-year.

Private market investor, Blackstone, which has significantly invested in the Indian real estate sector worth Rs. 3.8 lakh crore (US$ 50 billion) is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.

Global Real Estate Market Experts JLLs 2024 Real Estate Transparency Index shows that India has moved into the transparent zone for the first time, ranking 31st out of 89 countries.

According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025.

Foreign investors pump around US$ 3.1 billion yearly into Indian real estate, with a 37% YoY increase in foreign inflows in the first half of 2024.

Technology companies held the highest share in leasing activity at 22% during first quarter of 2024.Engineering and manufacturing (E&M) companies accounted for 13%, and banking, financial services and insurance account for 12%. Flexible space operators increase by 48%, showcasing their notable contributions.

In 2023, Indias residential sector saw record sales and new property launches, overcoming concerns about monetary tightenings impact on housing loans. Major banks disbursed about Rs. 2.7 lakh crore (US$ 32.45 billion) in credit by January 2024, an annual increase of around 37%.

In the FY25, approximately Rs. 2.2 lakh crore (US$ 25.52 billion) was gathered from stamp duty, land revenue, and registration fees

HFCs reported a 12-14% year-on-year growth in assets under management (AUM) for both FY24 and FY25, indicating sustained demand in the housing loan segment.

In the FY23, approximately US$ 24.1 billion was gathered from stamp duty, land revenue, and registration fees

Home sales across top 8 cities in India surged 68% YoY to reach ~308,940 units in 2022, signifying a healthy recovery in the sector.

According to the Economic Times Housing Finance Summit, about 3 houses are built per 1,000 people per year compared with the required construction rate of 5 houses per 1,000 population. The current shortage of housing in urban areas was estimated to be ~10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the countrys urban population.

The Government of India has been supportive towards the real estate sector. In August 2015, the Union Cabinet approved 100 Smart City Projects in India. The Government has also raised FDI (Foreign Direct Investment) limits for townships and settlements development projects to 100%. Real estate projects within Special Economic Zones (SEZ) are also permitted for 100%

FDI. Construction is one of the largest sectors in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at Rs. 3,83,229 crore (US$ 44.46 billion) from April 2000-September 2024.

In FY24 export from SEZs reached US$ 163.69 billion. Exports from SEZs reached US$ 157.2 billion in FY23 and grew ~28% from US$ 133 billion in FY22.In the first-half of 2021, India registered investments worth US$ 2.4 billion into real estate assets, a growth of 52% YoY.

Share of the top listed developers in the Indian residential market is expected to increase to 29% in FY24, from 25% in FY21, driven by a strong pipeline for residential project launch.

In the Union Budget 2024-25, under PM Awas Yojana Urban 2.0, housing needs for 1 crore urban poor and middle-class families will be met with a Rs. 10 lakh crore (US$ 120.16 billion) investment, including Rs. 2.2 lakh crore (US$ 26.44 billion) in central assistance over the next 5 years.

https://www.ibef.org/industry/indian-real-estate-industry-analysis-presentation Government Initiatives

Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies. Below are some of the other major Government initiatives:

• The Union Budget 2025-26 allocated Rs. 1 lakh crore (US$ 11.66 billion) to the Urban Challenge Fund, aiming to transform cities into growth hubs through redevelopment and infrastructure projects.

• Government launches Rs. 15,000 crore (US$ 1.75 billion) funds to revive stalled affordable and mid-income housing projects in Swamih Fund II.

• In the Union Budget 2024-25, under PM Awas Yojana Urban 2.0, housing needs for one crore urban poor and middle-class families will be met with a Rs. 10 lakh crore (US$ 120.16 billion) investment, including Rs. 2.2 lakh crore (US$ 26.44 billion) in central assistance over the next 5 years.

• In the 2024-25 Interim Budget, Union Minister of Finance, Ms. Nirmala Sitharaman announced a boost for Indias affordable housing sector by adding two crores more houses to the flagship scheme PMAY-U.

• In the Union Budget 2023-24, the Finance Ministry announced a commitment of Rs. 79,000 crore (US$ 9.64 billion) for PM Awas Yojana, which represents a 66% increase compared to last year.

• In October 2021, the RBI announced to keep benchmark interest rate unchanged at 4%, giving a major boost to the real estate sector in the country. The low home loan interest rates regime was expected to drive the housing demand and increase sales by 35-40% in the festive season in 2021.

• Under the Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2,069.89) on interest on housing loan, and tax holiday for affordable housing projects have been extended until the end of fiscal 2021-22.

• The Atmanirbhar Bharat 3.0 package announced by Finance Minister Ms. Nirmala Sitharaman in November 2020 included income tax relief measures for real estate developers and homebuyers for primary purchase/ sale of residential units of value up to Rs. 2 crore (US$ 271,450.60) from November 12, 2020, to June 30, 2021).

• In order to revive around 1,600 stalled housing projects across top cities in the country, the Union Cabinet approved the setting up of Rs. 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF).

• Government created an Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/financial institutions for micro financing of the HFCs.

• As of December 31, 2022, India had formally approved 425 SEZs, and as of January 2023, 270 SEZs are operational. Most special economic zones (SEZs) are in the IT / BPM sector.

https://www.ibef.org/industry/real-estate-india OPPORTUNITIES & THREATS:

The Companys business comprises of two segments viz. Coal Trading and Infrastructure and the opportunities and threats on the companys business are summaries below.

Opportunities & Threats in Coal Trading Sector:

Opportunities	Threats
• Increase in demand due to rapid growth in Power Sector	• Pressure of international body like UN to comply Paris Agreement & COP26 at Glasgow on climate change to curb use of fossil fuel.
• Government of India has taken many initiatives to increase domestic coal supplies, these includes:
	• Impact of commercial mining
• allowing captive miners to sell upto 50% of coal in the open market	• Possibility of availability of low cost imported coal may significantly affect future of indigenous production.
• Introducing commercial coal mining for private companies	• Increase in proportion of renewables in the energy mix and demand stagnation in future.
	• Resistance to part with land, creating problems in possession of land and rehabilitation.
• planned investment of more than INR 50,000 crore on coal evacuation infrastructure
	• Rapid appreciation in land cost.
	• Decrease in coal demand and Increase in proportion of renewables in the energy mix.
• auctioning of abandoned mines of CIL on revenue share mechanism and
	• Energy storage solutions.
	• Non availability of proper infrastructure for transportation of coal.
• Introducing national coal index for coal trading.
https:/ / www.pwc.in/research- and-insights-hub/coal.html
• Coal to remain the key primary energy source in India.
• Large scale rural electrification and power for all under UDAY scheme.
• Enhanced demand of power due to increased use of electric vehicles.
• Strong economic growth in India and resultant demand for energy, particularly coal as an energy source.
• Being a cheaper source of energy compared to alternate sources available in India, demand to continue to remain strong.
• Opportunity to adopt coal to liquid and coal to gas technology.

Opportunities & Threats in Real estate Sector:

Opportunities	Threats
• Government initiatives for implementing and amendments of Statutory regulations like RERA, GST	• Economic Recession
	• Competition with other Assets
	• Rapid increase in cost of material and labours post COVID
• Relaxation of FDI funding in Real Estate Sectors
	• Non availability of appropriate labour
• Relaxation in taxation and regulator aspects in real estate	• Rapid appreciation in land cost.
• Implementation of Pradhan Mantry Aawas Yojana	•
• Reduction in interest rate on Home loans

COAL INDUSTRY

India is the worlds second-largest coal consumer, behind China. The United States ranks third in terms of coal consumption with the share of coal in Indias electricity mix continuing to rise. In 2024, Indias coal consumption was estimated at approximately 800 million tonnes (or 536 million tonnes of coal equivalent (Mtce)), which is around 5-10 percent less than the United States. Thermal coal accounts for about 85 percent, or 680 million tonnes, of Indias coal consumption. Metallurgical coal constitutes around 85 million tonnes, and lignite makes up approximately 50 million tonnes of the total consumption.

Indias coal import rose 5.3% to 52.29 million tonnes in the first two months of the ongoing fiscal as against the year-ago period. The countrys coal import was 49.62 MT in April and May in FY24, according to data compiled by mjunction services ltd -- a B2B e-commerce platform from a joint venture between Tata Steel and SAIL.

However, coal import in May dropped marginally to 26.19 MT, from 26.57 MT a year earlier.

"Coal imports... were down 1.43% as against 26.57 MT imported in May 2023," it said. According to mjunction MD and CEO Vinaya Varma, the demand for imports is likely to remain subdued in the coming weeks due to the onset of monsoon while the production growth should stay healthy in the domestic market. Also, coking coal prices are expected to move up in the seaborne market due to supply tightness and this may impact buyers interest in the country.

Of the total imports in May, non-coking coal imports stood at 17.53 MT, against 18.10 MT imported in May last year. Coking coal import volume was 5.03 MT, against 5.10 TMT imported in May 2023. Coal India accounts for over 80% of domestic coal output. After taking charge as coal and mines minister, G Kishan Reddy had said India should increase domestic production of the fossil fuel and reduce coal imports.

Reddy had said that 10 years ago there was coal shortage in the country which resulted in electricity shortage. But in the last 10 years there has been sufficient power availability, he said.

Domestic Coal Production Rises 23% In Five Years

The thrust is on increasing domestic production. During 2023-24, in India domestic coal production increased to 997.26 Million Tonnes (MT) registering thereby a growth of 11.65% over last financial year (2022-23). In the current financial year till July 2024, coal production was 321.41 MT registering 9.6% growth compared to the same period of last financial year. However, as per the existing import policy, coal is kept under the Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual agreement on payment

of applicable duty. Government has initiated several measures to ramp up domestic coal production and to substitute coal imports.

Government has decided in 2022 that the coal to meet the full PPA requirement of all the existing linkage holders of Power Sector shall be made available by the coal companies. The decision of the Government of meeting the full PPA requirement of the linkage holders of the Power Sector shall reduce the dependence on the imports.

• Government has approved creation of a new sub-sector under the NRS linkage auctions with the nomenclature of Steel using Coking coal through Washery Developer and Operator (WDO) route. Creation of the new sub-sector with the assurance for longterm coal linkage to the Steel Sector from the identified mines for the entire term of the contract period shall increase the availability of washed coking coal in the country and enhanced domestic coking coal consumption by the Steel Industry in the country, thereby reducing the coking coal imports.

An Inter - Ministerial Committee (IMC) has been constituted in the Ministry of Coal on 29.05.2020 for the purpose of coal import substitution. The Representatives from Ministry of Power, Ministry of Railways, Ministry of Shipping, Ministry of Commerce, Ministry of Steel, Ministry of Mines, Ministry of Micro, Small & Medium Enterprises (MSME), Department for Promotion of Industry & Internal Trade (DPIIT), Central Electricity Authority (CEA), Coal Companies and Ports are members of this IMC. Eleven meetings of the IMC have been held so far. On the directions of the IMC, an Import Data System has been developed by Ministry of Coal to enable the Ministry to track the imports of coal. Efforts are taken to ensure more domestic supplies of coal.

The following steps have been taken by the Government to boost the production of coal:

i. Regular reviews by Ministry of Coal to expedite the development of coal blocks.

ii. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 [MMDR Act] for enabling captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government on payment of such additional amount.

iii. Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines.

iv. Project Monitoring Unit for hand-holding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines.

v. Auction of commercial mining on revenue sharing basis launched in 2020. Under commercial mining scheme, rebate of 50 % on final offer has been allowed for the quantity of coal produced earlier than scheduled date of production. Also, incentives on coal gasification or liquefaction (rebate of 50 % on final offer) have been granted.

Terms and conditions of commercial coal mining are very liberal with no restriction on utilization of coal, allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against monthly payment, liberal efficiency parameters to encourage flexibility to operationalize the coal mines, transparent bidding process, 100% Foreign Direct Investment (FDI) through automatic route and revenue sharing model based on the National Coal Index

REAL ESTATE INDUSTRY

In India, the real estate industry is one of the highest employment generators after the agriculture sector. This can be attributed to the escalating demand for residential properties due to rapid urbanization and inflating disposable incomes of individuals. Moreover, the increasing need for contemporary office spaces and the emerging trend of urban and semiurban lodging are acting as other significant growth-inducing factors. Furthermore, the expanding e-commerce sector in the country is catalyzing the demand for warehousing facilities, which is providing a positive thrust to the market. Besides this, with the growing use of telecommunication services and the implementation of 5G and data localization norms, there is a rise in the need for data storage facilities. This, in turn, is positively influencing the demand for resilient data center infrastructure and consequently bolstering the market growth. Apart from this, various initiatives undertaken by the Government of India, such as investments in smart city projects and tax exemption for interest on housing loans, are anticipated to create lucrative business opportunities for industry investors in the country.

Indias real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%.

The Securities and Exchange Board of India (SEBI) has also given its approval recently for the Real Estate Investment Trust (REIT) platform, which will allow all kinds of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion (USD 19.65 billion) in the Indian market in the coming years.

The growing flow of FDI in Indian real estate is encouraging increased transparency. Developers, in order to attract funding, have revamped their accounting and management systems to meet due diligence standards. According to the reports, by 2025, Indian real estate is expected to increase by 15-18 million per square foot for data centres. Metro cities, including Bengaluru, Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun, are expected to witness the most favoured property investment destination for NRIs.

The Company has a proper and adequate Internal Control System to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and those transactions are authorized, recorded and reported correctly.

The Company, in consultation with its Statutory Auditors and Internal Auditor, periodically reviews and ensures the adequacy of Internal Control Procedures for the orderly conduct of business and also includes a review to ensure overall adherence to Management Policies and applicable Laws & Regulations. The Companys internal audit team carries out extensive audits throughout the year, across all functional areas.

Our Philosophy is "Human Resource" is the most important factor for achieving efficiency, productivity and quality. Human Relationship Management assumes great importance in the Company and human resources are the great asset.

During the year under review, the Company continued its emphasis on Human Resource Development as one of the critical area of its operation. Realizing that the human capital being the Companys greatest asset, the up gradation of skills, personality and attitude of its employees is always looked after. Measures are also being implemented for enhancing the motivation and commitment of the work force and building up a unique positive work culture. Employer - Employee relation throughout the year were cordial.

The Company organizes periodical trainings to encourage and develop vital human resource. All the efforts are aimed to ensure develop and nurture the entrepreneurial attitude and skill among the employees. The Company places on record its appreciation for the valuable contributions made by employees at all levels.

The Financial Statements for the year ended March 31, 2025 have been prepared in compliance with the requirement of Companies Act 2013 and Ind AS.

During Financial Year 2024-25, the Company recorded;

o Total income of Rs. 976.59 Lakhs, of which income from operations is Rs. 880.18 Lakhs and other income of Rs. 96.41 Lakhs.

o Earnings before interest, Depreciation, tax and Amortization was Rs. 86.75 Lakhs.

o Depreciation was Rs. 0.73 Lakhs and interest and Profit before tax (PBT) was Rs. 86.03 Lakhs.

o Profit after tax (PAT) was Rs. (108.62) Lakhs and Earning per Share (EPS) of Rs. (0.82).

Factor affecting the reduction in turnover are non-availability of working capital facility. However company is trying to close issues with banks to get the business revive in coming years.

Companys business comprises two segments viz. Coal Trading Division and Infrastructure division. During the Financial Year 2024-25, the turnover from coal trading division is Rs. 127.33 Lakhs and from Infrastructure division is Rs. 752.85 Lakhs as compared to previous year turnover from coal trading division is Rs. 3056.75 Lakhs and Infrastructure division is Rs. 655.50 Lakhs.

As on March 31, 2025 Coal Trading Division is having Segment Assets of Rs. 2435.89 Lakhs and Infrastructure division is having Segment Assets of Rs. 160.55 Lakhs.

Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations which have been prepared in compliance with the requirements of the Companies Act, 2013, the Accounting Standards issued by the Institute of Chartered Accountants of India, the Listing Agreements and all other applicable rules and regulations. The actual performance may vary depending on the market fluctuations, changes in Government policies, rules and regulations change in economic conditions nationally as well as internationally.