Hemisphere Properties India Ltd Management Discussions

ECONOMY & INDUSTRY OUTLOOK

i. Global Economy

The global real estate sector in 2024 was shaped by macroeconomic headwinds, rising interest rates, and geopolitical uncertainties, yet it remained resilient with an estimated market size of around USD 4 7 trillion. The residential segment continued to dominate demand, while commercial real estate, logistics, and alternative assets such as data centres gained traction due to urbanization, e-commerce growth, and digital transformation. Regionally, Asia-Pacific, particularly India and China, emerged as high-growth markets, whereas the US and Europe grappled with housing shortages and weaker office demand. Investor interest was driven toward luxury housing, mixed-use developments, and sustainable green buildings, with ESG compliance and smart technologies becoming key differentiators. However, regulators highlighted risks in the USD 12 trillion commercial property market, citing rising debt levels and distress in office and retail segments. Despite these challenges, global capital flows showed signs of recovery, especially in housing, logistics, and luxury real estate, reflecting a cautious but steady growth trajectory for the sector.

The global economy grew by 3.3% in 2024 (IMF, World Economic Outlook), showing resilience despite uneven momentum across regions. Inflation moderated to 5.8%, enabling initial policy rate cuts in major economies, while labour markets remained tight with unemployment near historic lows. Wage growth and easing price pressures supported real incomes, though private consumption stayed subdued amid weak sentiment. Rising geopolitical tensions in Eastern Europe and the Middle East disrupted trade and investment flows, weighing on business confidence and long-term investment prospects.

ii. Indian Economy

India continues to stand out as a bright spot of economic growth amid global headwinds. According to the National Statistics Office, the economy recorded a robust 6.5% real GDP growth in FY 2024 25, reflecting its underlying resilience. Looking ahead, the IMF projects Indias growth at 6.2% in 2025 and 6.3% in 2026, reinforcing its position as one of the fastest-growing major economies. The Reserve Bank of India has also noted an improvement in inflation expectations, which supported a reduction in benchmark interest rates.

The sectors growth reflects not only strong demand for housing and office spaces but also its extensive linkages with more than 200 allied industries, including cement, steel, logistics, finance, and consumer goods. Sustained momentum across residential, commercial, and industrial segments, coupled with the expansion of Indias corporate sector and a services-driven economy, continues to reinforce the long-term prospects of real estate.

As India progresses towards inclusive and sustainable urban development, the real estate sector will remain a vital enabler shaping cities, generating employment, and building the physical and social infrastructure essential for a rapidly evolving population.

iii. Real Estate Trend in India

Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from

US$ 200 billion in 2021 and contribute 13% to the countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

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. 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.

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 CY2024.

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.

Indian real estate developers operating in the countrys major urban centers are poised to achieve a significant feat in 2023, with the completion of approximately 558,000 homes.

In previous years, demand for residential properties surged in the top 8 Indian cities, driven by mid-income, premium, and luxury segments despite challenges like high mortgage rates and property prices. Indias physical retail landscape is poised for a substantial boost, with nearly 41 million sq. ft of retail developments set to be operational between 2024 and 2028 across the top 7 cities, encompassing projects in various stages from construction to planning.

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.

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. 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.

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

Advantages in India

Robust Sales Growth:

Opportunity: he real estate sector shows promise with a projected 9.2% CAGR from 2023 to 2028. 2024 is expected to drive growth with urbanization, rental market expansion, and property price appreciation. 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.

Rising Housing Prices: Strong demand and steady interest rates have led to a 7% YoY increase in housing prices in Indias top eight cities.

Policy Support: The governments focus on affordable housing and infrastructure development has acted as a catalyst for growth.

a) Residential Segment

Indias residential real estate sector continued its strong performance in 2024. According to Anarock, housing sales across the top seven cities stood at approximately 4.59 lakh units, while the overall sales value rose by 16% year-on-year to ~ 5.68 lakh crore. This reflects sustained demand momentum and a clear shift in consumer preference towards premium and luxury housing. Inventory overhang across these cities improved significantly, declining to 14 months as of year 2024, compared to 30 months in year 2019, highlighting a healthier market balance.

b) Office Segment

The Indian office real estate market witnessed record activity in 2024. Gross leasing across nine major cities grew by 14%, reaching about 70 million sq. ft., driven by demand from both global and domestic corporations. Within leasing activity, technology companies led with a 22% share, followed by engineering & manufacturing (13%) and banking, financial services and insurance (12%), while flexible space operators registered a sharp 48% growth, underscoring their rising relevance.

Overall office absorption during CY 2024 touched an all-time high of ~7.34 million sq. m. (79 million sq. ft.), largely propelled by Global Capability Centres (GCCs), BFSI, and flexible space operators. Bengaluru accounted for the largest share of leasing, followed by Delhi-NCR, Mumbai, and Hyderabad, which together contributed more than 70% of total volumes. New supply during the year was estimated at ~4.86 million sq. m. (52.3 million sq. ft.). Demand continued to be underpinned by Indias skilled workforce, cost competitiveness, and occupiers growing preference for high-quality, sustainable, and wellness-oriented workplaces.

c) Retail Segment

Indias retail real estate sector witnessed steady growth in 2024, supported by rising urban consumption, expansion of organized retail, and strong demand from both domestic and international brands. Major cities observed a surge in mall leasing activity, with fashion, food & beverages, and entertainment players accounting for a significant share of demand. According to CBRE, retail leasing across key cities touched new highs, driven by premium malls and high-street formats. Vacancy levels continued to decline, while rental values in prime retail corridors registered healthy appreciation. The growth was further fuelled by omnichannel strategies of retailers and robust consumer sentiment during festive periods.

d) Logistics & Industrial Segment

The logistics and industrial real estate segment maintained its strong growth trajectory, supported by the expansion of e-commerce, 3PL (third-party logistics) players, and manufacturing activities under the Governments Make in India initiative. According to industry estimates, leasing activity in the warehousing sector across major hubs such as Delhi-NCR, Mumbai, Bengaluru, and Pune remained buoyant, with Grade-A supply witnessing healthy absorption. Demand was particularly strong from e-commerce, retail, FMCG, and manufacturing occupiers, leading to sustained rental growth in key markets. The segment also saw rising interest in multi-storey warehouses and tech-enabled facilities, reflecting occupiers focus on efficiency, automation, and proximity to consumption centres.

e. Commercial market Segment

Commercial Real Estate Segment (2024 25)

Indias commercial real estate market demonstrated strong resilience in FY 2024 25, supported by sustained occupier demand, robust office absorption, and healthy investment inflows. Gross leasing activity across major cities crossed 70 million sq. ft., marking one of the highest volumes in recent years. The growth was primarily driven by Global Capability Centres (GCCs), technology firms, banking, financial services and insurance (BFSI), and flexible space operators, which together accounted for a significant share of leasing activity.

Bengaluru, Delhi-NCR, Mumbai, and Hyderabad continued to dominate, collectively contributing over 70% of total office space demand. New supply additions remained steady at ~52 million sq. ft., aligning with demand and ensuring stable vacancy levels. Occupiers increasingly preferred Grade-A, sustainable, and wellness-focused workplaces, reflecting the shift towards ESG-compliant and employee-centric infrastructure.

On the investment side, the commercial segment remained a key focus for institutional and foreign investors, with strong interest in office parks, IT campuses, and co-working platforms.

Indias competitive cost structures, skilled talent pool, and growing service-sector base are expected to underpin demand, making commercial real estate a cornerstone of the countrys growth story in the medium to long term.

Urban Reforms in 2024 25

The Government of India advanced a broad set of urban reforms during FY 2024 25, aimed at promoting sustainable, inclusive, and resilient city development. Flagship programmes such as Smart Cities Mission, AMRUT 2.0, Swachh Bharat Mission Urban 2.0, and PM Awas Yojana (Urban) remained central to improving housing, sanitation, water supply, and digital governance across urban India.

A strong thrust was placed on affordable housing, with continued support under PMAY (Urban), which targeted faster approvals, interest-linked subsidies, and partnerships with state governments and private developers to accelerate supply. Incentives for green and energy-efficient housing were introduced to align with Indias climate commitments.

In the area of urban infrastructure financing, multiple reforms were introduced to expand funding sources:

- Sovereign Green Bonds were deployed to channel funds into environmentally sustainable urban projects, including renewable energy, clean mobility, and waste management.

- Municipal Bonds gained momentum, with several Urban Local Bodies tapping capital markets to finance water, sanitation, and mobility projects.

- Real Estate Investment Trusts (REITs) continued to attract institutional and foreign capital into commercial real estate, while the framework is being expanded to support urban infrastructure assets. - Public Private Partnerships (PPPs) were actively encouraged to drive investments in metro rail, affordable rental housing, and integrated townships.

Additionally, reforms emphasized digital governance through GIS-based planning, real-time service delivery, and e-mobility platforms, improving both transparency and efficiency.

Collectively, these initiatives reinforced the governments vision of building resilient, climate-friendly, and investment-ready cities to support Indias rapid pace of urbanization.

OUTLOOK AND STRATEGY

In 2002, the Government of India conducted a disinvestment exercise in respect of 25% of its shareholding in the equity share capital of VSNL (currently known as Tata Communications Limited), wherein in terms of the bid for the disinvestment required a separate value to be ascribed to lands to be retained with VSNL and to exclude the value of certain Land parcels, held by VSNL. Panatone was the successful bidder in the disinvestment process and subsequently, entered into the VSNL SPA and the VSNL SHA. In terms of the disinvestment bid, the VSNL SHA and VSNL SPA, the Land parcels identified were required to be hived off or demerged into a separate entity.

As a result, Hemisphere Properties India Limited was incorporated in 2005 as a real estate company. During FY 2012-13, Government of India acquired 51.12% equity stake in HPIL after the decision of the Cabinet. Earlier, the Company was in administration of Department of Telecommunications and further after the Cabinet decision dated April 06^th, 2018 the administration of HPIL was transferred from Department of Telecommunication to Ministry of Housing & Urban Affairs. The Mumbai Bench of National Company Law Tribunal and Ministry of Corporate Affairs approved Scheme of Arrangement & Reconstruction between Tata Communications Limited & Hemisphere Properties India Limited on 12.07.2018 and 05.08.2018 respectively.

The Land located in 4 major cities i.e. Delhi, Pune, Chennai and Kolkata were transferred under the Scheme. The Promoter of the company i.e. President of India holds 51.12% shares.

In terms of the Scheme of Arrangement, following transferred:

1. All rights, title and interest in the Land parcels were transferred to our Company;

2. All assets and liabilities pertaining to the Land parcels were transferred to our Company at their book value;

3. All debts, liabilities, taxes, duties and obligations pertaining to the Land parcels were transferred to our Company, except for any property taxes arising prior to the effective date, which would continue to be the liability of TCL;

The main objects of our Company are as follows:

i. To construct, acquire, hold, manage, develop, administer, protect, reserve and to deal in any other manner with properties, including sale and purchase thereof, whether such properties are in the nature of land or building (semi-constructed or fully constructed) or partially land and partially buildings, any where in India and if permitted by applicable legislations, outside India as well.

ii. To collect and settle revenue, rental, lease charges and such other charges as may be payable by any entity against legitimate use of such properties by persons, companies, agencies and administrations for the services provided and to utilise the same for furtherance of activities of the Company.

iii. To carry out business of developing, holding, owing, leading or licensing real estate, consultancy in real estate and property of all kinds and for this purpose acquiring by purchase or through lease, license, barter, exchange, hire purchase or otherwise, land or other immovable property of any description or tenure or interest in immovable property.

iv. To carry out the business of building construction and development of commercial building, industrial shed, offices, houses, buildings, apartment, structures, hotels or other allied works of every description on any land acquired howsoever by the company, whether on ownership basis or as a lessee or licensee and to deal with such construction or developed or built premises by letting out, hiring or selling the same by way of outright sale, lease, license, usufructuary mortgage or other disposal of whole or part of such construction or development or built premises.

BUSINESS DEVELOPMENT

The Company has taken over the possession of land parcel and appointed CPWD for land maintenance &security for preventing any kind of encroachments. The Company has registered its name for Pune, Chattarpur & registration charges are paid for Chennai & Kolkata. The applications are pending before the Competent Authorities.

HPIL has conducted the due diligence for all the land parcel in year 2021-22 and its was decided to move forward with Chattarpur land parcel. The Company has also appointed transaction advisors (JLL, a Real Estate Consulting Firm) for Pune and Kolkata land parcel. The feasibility studies of both land parcel are conducted and for Pune demarcation for entire Pune land of 524 acres was conducted. The Company has applied for change of land use of a part of 524 acres of approx.. 88 acres falling under Bhopkhel village from Public Semi Public (PSP) to Residential and the same was approved by the Competent Authority of Pune. Further the land was separately demarcated through government agencies. With the consultation of JLL, a layout was finalised and filed with the Authorities and approval of same is awaited. Also application for change in land use was filed with the Competent Authority and same is pending due to approval of DDA MPD 2041.

To maximize value, HPIL appointed Jones Lang LaSalle (JLL) as Transaction Advisor. During the year, a Stakeholders Meet was held, which attracted enthusiastic participation from real estate developers, education providers, and corporate investors. This reinforced the strong demand for the parcel across multiple sectors.

A landmark achievement was the change of land use of land parcel falls under Bopkhel village from PSP to Residential. A tentative layout plan has been approved under the Unified Development Control and Promotion Regulations (UDCPR 2020), and a Request for Proposal for e-auction of land at Bopkhel has been floated, with a reserve price of approximately 576.12 crore. The auction is scheduled for August 2025. The same is available on https://hpil.enivida.com. The auction is scheduled for August 2025.

For the remaining land, the Company is actively exploring an Integrated Township Development approach, which could include residential, commercial, and institutional facilities. This strategy aligns with Maharashtras urban planning objectives and is expected to unlock substantial value in the medium to long term. The Company has also leasing the some portion of land and building in Pune.

The Company received in-principle approval from Ministry of Finance for 751.00 crores towards payment of stamp duty to give effect transfer of Title in the name of our Company and meet the need of other working capital requirements in due course of business. The Company till date has received 230 crore in form of equity and loan as on date of report, the remaining money shall be received in tranches or in lumpsum as per the decision of Ministry of Finance.

The Company during financial year 2024-25 generated revenue from rental income of 90.64 lakh from Pune land parcel.

SEGMENT-WISE PERFORMANCE

The Company does not have any other segment.

Development Opportunities Housing Demand

Indias housing market continues to offer significant development opportunities, underpinned by rapid urbanization, rising household incomes, favorable demographics, and a growing preference for home ownership. The Governments sustained push through PM Awas Yojana (Urban) and various state-level affordable housing schemes has further expanded the potential for both affordable and mid-income segments.

At the same time, there is a notable shift towards premium and luxury housing, driven by rising aspirations, increasing HNI/ULTRA-HNI wealth, and demand for larger, amenity-rich homes in metropolitan areas. The work-from-home culture, hybrid work models, and lifestyle-driven choices have boosted demand for spacious residences and integrated townships.

With housing sales in top cities touching record levels in 2024, developers are well-positioned to capitalize on sustained end-user demand, supportive government policies, and access to diversified financing models, making the residential real estate sector a key driver of long-term growth.

Affordable housing

Affordable housing remains one of the largest growth opportunities in Indias real estate sector, driven by the twin forces of rapid urbanization and the Governments commitment to "Housing for All." The PM Awas Yojana (Urban) has been a key enabler, providing subsidies and incentives for both buyers and developers, thereby expanding access to home ownership for low- and middle-income groups.

The demand base is further supported by migration to urban centres, rising disposable incomes, and a growing young workforce aspiring to own homes. At the same time, state governments are increasingly partnering with private developers under public private partnership (PPP) models to fast-track affordable housing projects.

With innovations in construction technology, green building practices, and modular designs, the segment is evolving to deliver quality housing at scale while remaining cost-efficient. Backed by strong demand fundamentals and policy support, affordable housing is set to remain a cornerstone of Indias residential real estate growth in the coming years.

Other Opportunities

1. Commercial Real Estate

Indias commercial real estate segment continues to attract strong demand, especially from

Global Capability Centres (GCCs), IT/ITeS, BFSI, and flexible workspace operators. With gross leasing volumes crossing record highs, cities such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai remain key hubs. Rising occupier preference for Grade-A, ESG-compliant, and wellness-oriented office spaces presents a long-term growth opportunity for developers.

2. Retail Real Estate

The retail sector is benefiting from growing consumer spending, rising urban middle-class demand, and expansion of both domestic and international brands. Premium malls, high-street retail, and mixed-use developments are increasingly sought after, while omnichannel retail strategies are driving new formats. This creates scope for developers to capture demand in both metropolitan and Tier-II cities.

3. Logistics & Industrial Real Estate

The e-commerce boom, 3PL expansion, and government initiatives like Make in India and PLI schemes are driving demand for modern warehouses and industrial parks. Developers have the opportunity to cater to requirements for Grade-A, tech-enabled, and sustainable facilities, including multi-storey warehousing near consumption centres. This segment is emerging as one of the fastest-growing in Indian real estate.

4. Emerging Asset Classes

Newer formats such as student housing, senior living, co-living, and data centres are gaining traction, driven by shifting demographics, technology adoption, and lifestyle changes. Investors are increasingly exploring these alternative asset classes for higher returns and diversification.

RISKS AND CONCERNS

The Company operates in a dynamic environment and is exposed to multiple risks that can potentially affect its business, financial performance, and long-term growth prospects. These risks primarily relate to economic, regulatory, financial, and operational challenges, along with uncertainties inherent to the real estate sector. Key risks are outlined below:

1. Regulatory and Policy Risks

The real estate sector in India is highly regulated, with multiple clearances required at central, state, and local levels. Delays in land acquisition, land-use conversion, project approvals, and construction permits are common. Retrospective policy changes or sudden shifts in regulations can adversely affect profitability, project timelines, and overall sector attractiveness.

2. Funding and Liquidity Risks

Access to capital remains uneven across the sector. Established developers with low leverage continue to attract funding, while weaker players face challenges in raising capital. Rising interest rates, inflationary pressures, and tighter monetary policies may increase borrowing costs, affecting both developers margins and housing demand.

3. Statutory Approvals and Title Risks

Pursuant to the Demerger Scheme, various land parcels were transferred to the Company. However, in revenue records and registries, several parcels continue to reflect the name of erstwhile VSNL or its successor, TCL. While the Scheme directs the transfer of titles to the Company, additional compliances are required to perfect ownership. The absence of title insurance in India further compounds the risk of disputed or faulty titles, potential encumbrances, and lengthy litigations that may impact valuation, development, and transferability of land.

4. Land-Use Approval Risks

Development of land parcels requires land-use change approvals from local authorities, which vary across states and jurisdictions. Delays in obtaining such approvals may result in rescheduling of project timelines and could affect the pace of project execution.

5. Litigation and Encroachment Risks

Certain land parcels are subject to disputes relating to ownership, title, or third-party claims. Any adverse outcome could lead to loss of land, financial compensation liabilities, or delays in development. Further, the risk of encroachment on land parcels can result in additional costs and prolonged legal processes to clear titles, thereby impacting project feasibility.

6. Financial and Market Risks

The Companys performance is closely tied to macroeconomic trends, monetary policy, and overall demand for real estate. Inflationary pressures, rising input costs, and higher interest rates can weaken affordability and reduce sales. Additionally, increased supply of alternative or lower-cost land parcels in certain markets may exert pressure on land valuations and development potential.

7. Concentration Risk Pune Land Parcel

The Companys largest landholding of ~524 acres is located in the Pune Metropolitan Region

(PMR). Consequently, the business is significantly dependent on real estate demand and market conditions in this region. Any adverse economic, regulatory, or demand-related developments in PMR could materially affect business performance and valuations.

8. Partnering and Collaboration Risks

The Companys ability to identify credible partners or customers for land development is critical. Risks include inadequate due diligence, unreliable financial capacity of partners, or disagreements on commercial terms. Failure of joint venture or joint development partners to meet obligations could delay or derail projects, placing additional financial and operational burden on the Company.

9. Land Valuation and Development Right Risks

The availability of cheaper or alternate land in competing markets may impact the pricing and marketability of the Companys land parcels. Restrictions on land use, such as agricultural zoning, may further delay or limit development potential unless requisite approvals are secured.

10. Joint Development Risks

Where land development is undertaken through joint ventures, joint development, or management agreements, the Company may have limited control over execution timelines, costs, and compliance. Any failure by partners to perform could adversely affect the project and the Companys financial results.

CONCLUSION

The Company recognises these risks and has implemented a robust risk management framework to identify, monitor, and mitigate them. While certain risks are inherent to the real estate sector, the Company remains committed to safeguarding stakeholder interests through prudent financial management, strong governance practices, and a proactive approach to compliance and litigation management.

HUMAN RESOURCE DEVELOPMENT

The Company recognises that its people are its most valuable asset and a critical driver of long-term growth. As on date, the Company has a lean team comprising five employees, supported by a few specialised consultants engaged to handle specific assignments. This structure has allowed the Company to remain agile, cost-efficient, and focused during its formative stage of operations.

At the same time, the Board and Management are conscious of the growing scale and complexity of the Companys business. With the planned development of our land bank and increasing operational requirements, the need for a more robust and skilled workforce has become imperative. Accordingly, the Company is in the process of strengthening its human resource base by onboarding professionals with diverse expertise in project development, finance, compliance, legal, and operations.

Looking ahead, the Company plans to expand its human resource strength in a phased manner to meet its operational and strategic goals. Building a competent and motivated team will not only enable smooth execution of our projects but also help us establish a strong foundation for sustained growth.

The Company remains committed to fostering a work culture built on professionalism, integrity, inclusiveness, and innovation. By doing so, we believe our people will continue to be a cornerstone of our success and a key differentiator in a competitive industry.

DISCLOSURE OF ACCOUNTING TREATMENT

The financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. Our Company has not taken any treatment which is different from the applicable Ind AS. The fact has been disclosed in Standalone Financial statements

FINANCIAL PERFORMANCE

Internal Control Systems and Their Adequacy

HPIL has in place adequate internal financial controls with reference to financial reporting in compliance with the provisions of Section 134(5) (e) of the Companies Act, 2013 and such internal financial controls over financial controls were operating effectively. Internal Financial Controls over

The following table sets forth certain information with respect to our results of operations as per our Financial Statements for the periods indicated:

( in Lakhs)

Particulars	FY 2024-25		FY 2023-24		FY 2022-23
	Amount	% of Total Revenue	Amount	% of Total Revenue	Amount	% of Total Revenue
REVENUE
Revenue from operations	90.64	11.57	52.28	6.56	200.20	23.47
Other income	692.12	88.42	744.50	93.37	652.64	76.53
Total Revenue	782.76	100	796.78	100	852.84	100
EXPENDITURE
Employee benefits expenses	46.33	5.91	42.09	5.28	34.48	4.04
Finance cost	609.41	77.85	644.04	80.83	668.50	78.39
Depreciation, amortization expenses and	1,055.24	134.81	1,337.65	167.88	950.87	111.49
Other expenses
Total Expenses	1710.98	218.58	2023.78	254	1653.85	193.92
Profit before exceptional and extraordinary items and tax	(928.23)	-	(1,227)	-	(801.01)	-
Exceptional items	-	-	-	-	-
Tax Expenses	-	-	-	-	-
Current tax	-	-	-	-	-
Deferred tax	(176.38)	-	(245.15)	-	(153.70)
Total Tax expenses	(176.38)	-	(245.15)	-	(153.70)
Profit for the Period	(751.85)	-	(981.85)	-	(647.31)

Key Financial Ratios

The details of Financial Performance with respect to Operational Performance has been explained in the Directors Report Information pursuance to schedule-V of SEBI (LODR) Regulations 2015 - (i) There is no significant changes (change of 25% or more as compared to the immediately previous financial year) in key financial ratios viz. Debtors Turnover Ratio , Inventory Turnover Ratio), Interest Coverage Ratio, Current Ratio (Debt-Equity Ratio, Operating profit margin and Net profit margin during the year 2024-25 as compared to the previous year 2023-24.

i. The Key ratios are as under:

Particulars	Financial Ratios		Remark
	FY 2024-25	FY 2023-24
Debtors Turnover	19.35	5.02	Due to increase in turnover in comparison to previous year
Inventory Turnover	-	-	-
Interest Coverage Ratio	(0.5)	(0.9)	Decrease in losses leads to change in ratio
Current Ratio	0.0831:1	0.0055:1	Current ration changes Due to decrease in current liability
Debt Equity Ratio	0.13:1	2:1	The debt equity ratio is declining due to discharge of liabilities of the Company..
Operating Profit Margin(%)			-
Net Profit Margin (%)	(829.48)	(1878.15)	Net profit ratio changes due to decrease in loss.

CAUTIONARY STATEMENT

The above Management Discussion and Analysis contains certain forward-looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to several risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over-runs on contracts, Government policies and actions with respect to investments, fiscal deficits, regulations etc. In accordance with the Regulations on Corporate Governance as approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness, though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update on any forward-looking statements made from time to time on behalf of the Company.