Rap Media Ltd Management Discussions

This Management Discussion and Analysis report provides the analysis of financials and business of previous year future budget, expectation, planning of the company and may contain “forward looking statements” within the meaning of applicable laws and regulations and actual results may differ.

Industry overview

The Company deals in Real Estate Development and leasing. The Overall real estate business has been going through ups and downs. While the housing market has been growing steadily post Covid, the leasing market and malls development space has been affected, especially in tier 2 cities. The industry uptick is likely to happen in bigger cities or housing market in mid and lower income segments.

Review of financial and operating performance

During the financial year ending March 2025, the Company could not achieve any revenue. The company had developed certain mall properties in Meerut, Uttar Pradesh but post covid events has led to stoppage of income of the Company. In view of the mandatory and essential costs to be incurred by the Company, the Company has posted losses during the year FY 2025-26.

1. Paid up share capital:

The Company paid-up capital stood at Rs. 5.88 crores as on 31st March 2025 consisting of 58,81,000 equity shares of Rs. 10 each.

2. Reserves and Surplus

Reserves and Surplus stood at Rs. 4.93 crores as compared to last year Reserves and Surplus Rs. 2.17 crores.

3. Secured Loan:

The Company has not taken any secured loan. However, the Promoter Director of the Company has advanced unsecured loan to the Company.

4. Turnover: There was no turnover of the Company during the year under review.

5. Profits /Loss: Since there is no income during the year under review, and due to essential expenses the Loss stood at Rs. 69.32 lakhs as compared to Rs. 79.03 lakhs of previous year, which includes depreciation of Rs. 30.81 lakhs for FY 2024-25 and Rs. 25.05 lakhs for FY 2024-25 respectively.

BUSINESS ANAYSIS

The Company deals in Real Estate Development and leasing. The Company did not achieve any turnover during the year. The Company has been working on the existing properties revival and/ or disposal as may be best suitable. After the closure of financial year, the Company has sold off its property at Agra for Rs. 62.12 Crores (Rs. Sixty Two crores and Twelve lakhs approx.)

Opportunities and risks

Opportunities

The Company is exploring putting to use the properties owned by the Company, however, there are several challenges faced due to various regulatory and practical commercial aspects. Subject to availability of funds, the Company will look explore investment/ development of properties. The Company invested in a LLP which holds certain land, capable of being developed over a period of next few years.

Risks

The malls business, in which the Company operates have become a failure in many tier 2 cities, due to cultural aspects as well as location and developmental aspects. The same poses risk to the Company about putting to use its properties.

Outlook: The Management has no control over the market forces and all are aware of the challenging times faced by Real Estate players. The Company has been facing challenges, since the proposed development of the properties owned in B Town have been held up. The Malls in these cities have become a failure due to various reasons. However, the Company is having “Zero Outside Debt” and has been able to weather all the storms. The Management will look to monetize the assets in best possible manner.

Internal Controls and its adequacy: The Company has been reviewing its internal control systems and processes continuously and company has a strong internal controls for continuously monitoring all operations.

The Company had 4 employees on its rolls as on 31st March 2025. There were no significant changes in the key financial ratios. The Return on Net Worth for the FY 2024-25 was negative at (6.41) percent as compared to (9.82) percent for the FY 2023-24.