Rajsanket Realty Ltd Management Discussions.

ECONOMIC OVERVIEW

Indian economy showed early signs of growth post various initiatives and reform measures undertaken by the Central Government. The Company believes that public and private investment spending to drive the capex growth will be critical to Indias growth outlook. The Government has taken measures to boost spending by increasing the capex allocation towards infrastructure projects by reforms in the budget. The Government is also taking various initiatives to unlock stuck investments in the core and infrastructure projects, revive investments from the private sector by reforming policy environment, improving the ease of doing business and accelerating the project related approvals.

INDUSTRY STRUCTURE AND DEVELOPMENT

The real estate sector continued to face a challenging environment due to lackluster demand scenario, various policy hurdles, delay in approval cycle, continued high borrowing costs both for industry and the consumer. Further with the implementation of Real Estate (Regulation and Development) Act, 2016 it will improve the overall industry in long term and will also be beneficial for all stakeholders of this industry.

The RBI has started to soften the interest rates but the impact at ground level is still awaited. Further downtrend in the interest rate cycle remains crucial for revival of the sector.

The overall mood in the leasing market is also expected to remain cautious. While few large scale transactions for consolidation and relocation of offices might be reported, majority of the demand is expected to be for small and medium size office space. Supply level will continue to exert pressure on rental movement and market recovery in most micro market. Introduction of REIT is likely to have a positive impact on the retail market segment.

Opportunities and Threats

Opportunities

The Company firmly believes that as soon as policy reforms pick up the speed in the Country, the demand for Real Estate should turn up/remain strong in the medium to long term. Your Company s well - accepted brand, contemporary architecture, well-designed projects in strategic locations, strong balance sheet, and stable financial performance even in testing times make it a preferred choice for Customers and Shareholders.

Challenges

It is obvious that along with available opportunities the business has also to face challenges/threats at times. The Management of your Company finds the following business challenges to have their impact in the years to come:

• Increased cost of finance

• Unanticipated delays in project approvals

• Availability of accomplished and trained labour force

• Increased cost of manpower

• Rising cost of construction

• Over-regulated environment

SEGMENT WISE PERFORMANCE

The company operates in only single segment. Hence segment wise performance is not applicable.

RISKS AND CONCERNS

In any business, risk and prospects are inseparable. As a responsible management, the companys principal endeavor is to maximize returns. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns. The Company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts.

INTERNAL CONTROL SYSTEMS

The Company has an adequate internal audit and control system. The Internal audits are conducted by firms of Chartered Accountants. All operational activities are subject to internal audits at frequent intervals. The existing audit and inspection procedures are reviewed periodically to enhance their effectiveness, usefulness and timeliness.

Your Company has an effective system of accounting and administrative controls supported by an internal audit system with proper and adequate system of internal check and controls to ensure safety and proper recording of all assets of the Company and their proper and authorised utilization.

HUMAN RESOURCES

Our people are our most important asset and we value their talent, integrity and dedication. We offer a highly entrepreneurial culture with a team based approach that we believe encourages growth and motivates our employees. The Company plans with prudent knowledge management leading to enhanced skills and capabilities and market ability to promote real estate business in the current time. The Company shall evaluate performance management system, which reinforces its work ethics and results in profitability to enhance the shareholders value.

FINANCIAL PERFORMANCE

During the year under review, Your Company has registered total income of Rs.1,16,93,77,559/- (Previous year Rs. 12,97,86,618/- ) and incurred net losses after tax of Rs.4,84,96,360/- against (Previous year net profit of Rs. 49,61,670/-.

CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, expectations or predictions are "forward-looking statements" within the meaning of applicable securities laws and regulations. These statements are subject to certain risks and uncertainties. The actual results may be different from those expressed or implied since the companys operations are affected by the many external and internal factors, which are beyond the control of the management.