krishna ventures ltd share price Management discussions

Industry Structure and Development

The Indian real estate and construction industry is the second largest employer in the nation after agriculture. Its contributions to infrastructure influence significantly the growth and development of other sectors such as information technology, retail, hospitality, healthcare and manufacturing. More generally, its growth acts as a multiplier and generates economic growth in the long term. The demand for quality housing and commercial real estate is likely to be sustained for a number of reasons such as the growth of the organized retail market following the liberalization of foreign direct investment in the multi-brand segment which has attracted mega players like Walmart, Bharti and Reliance Industries Limited.

In particular, the growth of the Indian real estate industry is likely to accelerate on account of the likely resurgence in the private housing sector on account of new government initiatives, an increase in the number of Public Private Partnerships to accelerate the rate of economic growth, the development of logistics and supply chain initiatives on account of an overhaul of distribution networks in the organized retail sector, an increase in the number of renewable energy projects leading to a sustained demand for infrastructure growth and growth of the hospitality sector and the domestic and international tourism industry.

The growth of the Indian real estate sector is not entirely free from constraints which take a number of forms. Some of them include the rising cost of land, price volatility, delay in government approvals, inadequate availability of capital, stricter lending requirements, regulatory risks, underdeveloped infrastructure and non-availability of skilled manpower. More generally, the Indian real estate sector, despite its contributions to the Indian economy, has not been accorded industry status and does not have sufficient representation in the planning of infrastructure and other auxiliary facilities.

Opportunities and Threats:

Opportunities:

- Continuous private sector housing boom will create more construction opportunities.

- Public sector projects through Public Private Partnerships will bring further opportunities.

- Developing supply chain through involvement in large projects is likely to enhance the chances in construction.

- Renewable energy projects will offer opportunities to develop skills and capacity in new markets.

- More flexible training delivery techniques are now available.

- Financial supports like loan and insurance and growth in income of people is support of construction and real estate industry.

- Government initiatives such as implementation of RERA, GST, Housing for AH by 2022, liberalising regulations in FDI, REITs

Threats:

- Infrastructure safety is a challenging task in construction industry.

- Inefficient accessibility in planning and concerning the infrastructure.

- Reduced business investments.

- Reduced off-takes

- Increased land cost.

- Delay in approvals.

- Lack of availability of funds both at buyers and developers levels.

- Under - developed infrastructure and skilled manpower.

Segment - wise or product - wise performance:

Your company operates in one segment only viz. builder, developer and consultancy. Currently the management is in the process of identifying suitable properties in Mumbai and nearby places for construction and development.

Risks and Concerns:

1. Environmental liabilities.

2. Infrastructure.

3. Stricter lending requirements and credit crunch.

4. Ever - changing nature of the industry.

5. The real estate investment market is still in its infant stage.

6. Regulatory risks.

7. Property market risks.

8. Pricing uncertainties.

9. Economy and market fluctuations.

Company Performance and Outlook

Krishna Ventures Limited is currently engaged in construction and the provision of consultancy services in the Indian real estate sector. Towards these ends, it has identified key properties in Mumbai and adjoining areas to develop projects in the housing and commercial space. By 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. 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.. Your company will continue to adapt to evolving market realities while maintaining its proactive stance in project completion and revenue growth.

Krishna Ventures Limited is starting new business of the business of Manufactures, assemblers, dealers, merchant, importers and agents for the purchase, sale and hiring of all kinds of air conditioners, air conditioning and Refrigeration, machinery, Refrigerants, Liquids and Gases, ice Cream Freezers, Quick Freezing cabinets and like deodorisers, Refrigerated trucks, Vans, Wagons Etc, Heaters, Heating appliances, Coolers, Diffusers, compressors, Condensers, Fans of all types, pumps, Motors, Thermostats, Sprayers, Cold Storages or ice cream plants, appliances, tools, machinery apparatuses, devises, instruments, chemicals and all types of machinery, equipments, appliances and instruments of all kinds, sizes, types and their parts accessories of all descriptions The Indian electronics manufacturing industry is projected to reach US$ 520 billion by 2025. The demand for electronic products is expected to rise to US$ 400 billion by 2025 from US$ 33 billion in FY20. Electronics market has witnessed a growth in demand with market size increasing from US$ 145 billion in FY16 to US$ 215 billion in FY19—the market witnessed a growth of 14% CAGR from 2016-19. Electronics system market is expected to witness 2.3x demand of its current size (FY19) to reach US$ 160 billion by FY25.

Internal Control Systems and their adequacy

The company has developed an Internal Control System and procedures to ensure efficient conduct of business and security of its assets. The auditors review the effectiveness and adequacy of the internal control system by reviewing, analysing and testing controls and make recommendations to the management to improve controls wherever necessary.

Operational Performance

EBIDTA: The Company incurred loss of Rs. 15.73 Lakh in the financial year 2021- 22 as compare to the previous financial year 2020-21 in which the loss was Rs. 16.10 Lakh.

PAT: Net Loss of the Company in the financial year 2021-22 is Rs. 15.73 Lakh as compare to the previous financial year 2020-21 in which the Net loss was Rs. 16.10 Lakh.

Material developments in Management

Mr. Neeraj Gupta, Mr. Gaurav Jindal, Ms. Mansi Goyal, Ms. Arti Gupta, Freshplate Agro Foods Private Limited and Ashva Energy Private Limited (collectively referred to as the "Acquirers") had made an open offer for acquisition of upto 27,40,000 (Twenty Seven Lakh Forty Thousand) Fully Paid Up Equity Shares ("Equity Shares/Shares") representing 25.37% of the Paid Up Equity Share Capital of your Company on February 25, 2022 which successfully closed on March 11, 2022. This offer was triggered by a Share Purchase Agreement, dated Saturday, December 18, 2021 entered into between the Acquirers and Mr. Vijay Shrigopal Khetan , M/s Kernel Tech Networks Private Limited, Mr. Anuj Vijay Khetan, Mrs. Anushree Devesh Gupta, Mrs. Meena Khetan, Vijay Khetan HUF and Devesh Gupta Family Trust (collectively referred to as the "Outgoing Promoters") for acquisition of 80,60,000 (Eighty Lakh Sixty Thousand) Equity Shares, constituting 74.63% of the Fully Paid Up Equity Share Capital of your Company.

Pursuant to successful completion of the Offer Mr. Neeraj Gupta was appointed as the Managing Director of your Company and Mr. Gaurav Jindal was appointed as Whole Time Director of your Company.

Material developments in Human Resources / Industrial Relations front, including number of people employed

Your company is currently engaged in the development of a performance system that incorporates system-of-care principles and scope for continuous professional development.

By the order of the Board of Directors of
KRISHNA VENTURES LIMITED
( NEERAJ GUPTA)
Managing Director
DIN: 07176093	(GAURAV JINDAL)
Place: Noida	Whole Time Director
Date: September 05, 2022	DIN: 07698026