Ladam Affordable Housing Ltd Management Discussions.

forming part of Directors Report for the year

ended 31st March 2020.

Industry Structure and Development

The Company is in real estate business. The primary focus of the Company in real estate is on affordable housing for masses. The Companys focus is to construct more than 5000 affordable homes by utilizing its existing land. The approvals will take longer than expected time due to the COVID-19 pandamic and consequent Lock down and this will delay the launch of the project.

Opportunities & threats

India maintained its growth momentum on the foundation of relatively strong fundamentals of the economy. With the enforcement of RERA, we believe there is opportunity for more impactful business development. The Company does not foresee any big threat, but future is not predictable due to various reasons such as changes in government policies, funding problem which may impact profitability & effect the attractiveness of the sector & companies operating within the sector however the Company has strong intellectual manpower to averse the risk & threat.


The real estate Industry was already reeling under a cyclical downturn before COVID-19 and the impact of COVID-19 has been severe on the Industry. We are looking to develop an Affordable Housing Project and the impact of COVID-19 in the short to medium term will mean lowered purchasing power in the hands of the people leading to lower demand. In the longer term, 9 to 12 months hence, we see a revival in the demand as now people are more likely to invest in owned homes instead of looking to rent homes. So also, the recent cuts in interest rates will translate into lower cost of borrowing for home buyers making the home purchase option more attractive.

Accounting Treatment

There is no change in Accounting Treatment in preparation of Financial Statements as compared to last financial year.

Risk and Concerns

The Company considers good corporate governance as a pre-requisite for meeting the needs and aspiration of its shareholders. The main risk to the Company which may arise is mainly due to Government policies and decisions, Market Fluctuations in prices of shares & securities, Exchange rate fluctuations, Investment decisions, increased completion from local and global players operating in India, etc.

Segment wise Performance

The Company is presently a real estate company operating in one segment. Therefore, performance of the Company has to be seen in overall manner.

Internal control System and their Adequacy

The Company has developed adequate internal control system commensurate to its size and business. The Company has appointed the Internal Auditors, an outside independent agency to conduct the internal audit to ensure adequacy of internal control system,

compliance of rules and regulations of the country and adherence to the management policies.

Financial Performance with respect to Operational Performance

The Company has registered a turnover of Rs. 5.82 Lacs and incurred Loss before depreciation and tax of Rs. (18.74) Lacs. The depreciation provided during the year was Rs. Nil and the Net Loss for the year after depreciation and tax was Rs. (18.74) Lacs. The above turnover is out of both operational and non-operational activities. Income generated through business operations are Rs. Nil out of Rs. 5.82 lacs during the year. The profitability will be likely to be affected due to COVID- 19 in the short to medium term to the extent of the operating expenses, awaiting the approvals to commence the project.

Human Resources

The company has no workers as the project is yet to start. Most of the employees of the Company belongs to Mumbai; and they are unable to travel to the office at present. To the extent possible, they are doing work from home.

Financial Ratios

As Compared to previous year there were no significant changes of more than 25%. The Debtors turnover ratio stood at 0.91times. There were no Inventory sold out during the year. The Current Ratio stood at 1.05 times. There was approximately 4% decline in the Net worth as compared with previous year figure.

Disclosure by the Senior Management Personnel i.e. one level below the board including all HODs

None of the senior Management Personnel has financial and commercial transaction with the Company, where they have personal interest that would have a potential conflict with the interest of the Company at large.

Cautionary statement

The statements in this management discussion and analysis describing the outlook may be "forward looking statement" within the meaning of applicable laws and regulations. Actual result might differ substantially or materially from those expected due to the developments that could affect the companys operations. The factors like significant change in political and economic environment, tax laws, litigation, technology, fluctuations in material cost etc. may deviate the outlook and result.

Ladam Affordable Housing Limited
Sumesh Aggarwal
Registered Office: 00325063
Ladam House, C-33,
Opp. ITI, Wagle Industrial Estate,
Thane (W) - 400 604.
Date: July 31, 2020
Place: Thane