Kamanwala Housing Construction Ltd Management Discussions

Financial year 2024-25 continued to be a cautious year for real estate industry, where developers looked to consolidate and exhaust existing inventory before launching new projects while buyers and investors continued to wait to see if there is further price correction or consolidation in the market. The real estate industry continued to have high inventory levels in key markets despite a sharp drop in new launches due to implementation of RERA.

Your Company is trying to identify viable housing and commercial projects with minimal risk.

The Government of India along with the state governments is expected to take initiatives to encourage the development in the real estate sector. The Smart City Project, where there is a plan to build 100 smart cities, is expected to be a prime opportunity for the real estate companies. Affordable housing sector could open new opportunities.

Budget 2025 may push for the Real Estate sector, by creating a dedicated fund for affordable housing. This will help more developers embrace this segment of real estate and create much needed traction on the ground. Given the housing demand of the country, the real demand lies in the mid segment (which is now being described as affordable housing). While the governments will keep on pushing reforms, it is critical that more developers get into this segment and with RERA getting stabilized; consumers will get attracted to the lower interest rates, along with tax benefits attached to it.

Few of the policy changes introduced by the government, such as demonetization, RERA, and REITs in 2016, followed by GST and FDI in 2017, have made huge impacts on Indian real estate sector. Apart from this, there are various other reforms anticipated by the experts in Indian economy, which may come into force in the coming time. However, the new legislation and trends that have come up in the real estate market have the power to reshape the Indian real estate sector for a long term. Under the Smart Cities program, a total of 100 cities will see the program positively impacting the lives of nearly 9.95 cr dwellers with high-quality core infrastructure and a more sustainable quality of life.

Risks and opportunities are an inherent feature of any business. The Companys Directors bear this in mind while taking all decisions. The Company has developed a set of processes and systems to asses and minimizes risks without losing opportunities. Changes in regulatory norms in India shall affect the operation of Company. If the price of energy sources increases, our operating expenses could increase significantly.

The Company has adequate internal control systems in place, and also has reasonable assurance on authorizing, recording and reporting transactions of its operations. The Companys internal control environment provides assurance on efficient conduct of operations, security of assets, prevention and detection of frauds/ errors, accuracy and completeness of accounting records and the timely preparation of reliable financial information. Based on its evaluation (as provided under Section 177 of the Companies Act, 2013 and Clause 18 of SEBI (Listing Regulations), the Audit Committee has concluded that, as of 31^st March 2025, the Internal Financial Controls were adequate and operating effectively.

The financial statements have been prepared in accordance with the requirement of the Companies Act 2013, and applicable accounting standards issued by the Institute of Chartered Accountants of India. On standalone basis, the Company has earned total revenue of 1,141.10/- Lakhs on account of Sale of Copper Futcom as against total revenue of Rs. 279.87/- Lakhs during previous financial year. Company has also earned Rs. 5,284.75/- Lakhs on account of Long-Term Capital Gain on Sale of Investment, as a result of which the company has incurred a Net Profit of Rs. 4,997.76/- lakhs as against net Loss of Rs. 230.61 Lakhs for the previous year ended 31^st March, 2024.

Your Company firmly believes that its human resources are the key enablers for the growth of the Company. People-employees, customers, partners, investors etc. form the bedrock for the success of any organization. As at year end the company had 1 employee on payroll.

(i) Debtors Turnover (ii) Inventory Turnover (iii) Interest Coverage Ratio (iv) Current Ratio (v) Debt Equity Ratio (vi) Operating Profit Margin (%) (vii) Net Profit Margin (%) or sector-specific equivalent ratios, as applicable