India Radiators Ltd Management Discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENT

After a protracted period of economic stagnation the real estate sector has witnessed an appreciable upswing despite rising costs and a series of hikes in repo rates. The sector has seen robust growth in the commercial office and residential segments and the momentum is expected to be sustained in the year ahead.

The automotive industry in India is witnessing a boom due to various factors like increasing disposable income, rising population, urbanization, growing number of middle-class citizens and is expected to grow at a healthy rate in the next five years. The Indian automotive industry continues to evolve at a rapid pace, with the influx of technology playing a critical role in its growth and transformation.

b) OPPORTUNITIES AND THREATS

With a surge in demand, the commercial real estate market is poised to see double digit growth in the office and residential segments The growth momentum is likely to continue in the year ahead with increasing absorption, diminishing vacancy in office space and improved rental rates.

The series of rate hikes by RBI has pushed up the home loan rates thereby impacting demand and customer sentiments. The demand supply dynamics is expected to be resilient in the year ahead with the likely softening of interest rates. However, a continued tight money policy of RBI could dampen the demand for residential and office space.

c) SEGMENT WISE REPORTING

The Company operated in two segments -Automobile parts and renting of properties. However the focus will be on the segment of leasing of properties in future.

d) FUTURE OUTLOOK AND STATE OF AFFAIRS

The Company has applied to the Archaeological Survey of India (ASI) to remove the restrictions in fresh constructions for restarting its operations at Puzhal factory. The Company is also looking at other options. In the meanwhile the company has rented out a portion of its land.

e) RISKS & CONCERNS

The Archaeological Survey of India (ASI) ban on new construction is continuing at Puzhal and only repair work to the existing building is permitted. The Company has requested for removal of restrictions with the ASI authorities.

f) INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Company has adequate internal control system commensurate with its size and operations.

g) SIGNIFICANT CHANGES IN FINANCIAL RATIOS

The significant changes in the financial ratios of the Company are as follows:

Note: * In the previous year, Rs 927.20 lakhs was recognised as notional income on FV of preference shares.

h) RETURN OF NET WORTH - The net worth of the Company is negative.

Note: * In the previous year, Rs 927.20 lakhs was recognised as notional income on FV of preference shares .