Ravinder Heights Ltd Management Discussions

1. ECONOMIC OVERVIEW

A) Global Economy

- The Global Economy in Financial Year 2025-2026 demonstrated resilience amid a challenging macroeconomic environment characterized by geopolitical tensions, evolving trade policies, supply chain disruptions, and uneven regional growth. While inflationary pressures moderated across several economies and financial conditions improved gradually, uncertainty remained elevated due to geopolitical conflicts and policy shifts. Nevertheless, sustained

0 consumer demand, technological investments, and economic diversification initiatives across key regions continued to support global economic activity.

The Global growth is projected at 3.3% for 2026 and 3.2% for 2027, facing a slowdown driven by geopolitical instability, particularly in the Middle East, and high energy prices. While inflation is expected to gradually decline, persistent risks include conflict escalation, fragmented trade, and high debt servicing costs, with India and emerging economies providing relative growth resilience.

Technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offset trade policy shifts. Global inflation is expected to fall, but US inflation will return to target more gradually.

- Key downside risks are re-evaluation of technology expectations and escalation of geopolitical tensions. Policymakers should restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms.

B) Indian Economy

Indias economic outlook for 2026 remains strong, with projections positioning it as the worlds fastest-growing major economy, driven by robust domestic demand, infrastructure investment, and financial sector stability. GDP growth for Financial Year 2025 - 26 is estimated between 7.4% - 7.8%, with a projected moderation to 6.4% - 7.2% for FY 2026 - 27, backed by strong rural and urban consumption.

The Gross Domestic Product (GDP) growth was underpinned by robust performance in services, manufacturing recovery, and sustained public capital expenditure. Government initiatives focusing on infrastructure development, urbanization, and digital transformation continued to create a conducive environment for long-term economic expansion. Additionally, policy measures such as Production-Linked Incentive (PLI) schemes and ease-of doing-business reforms further strengthened investor confidence. Inflation, while moderating compared to previous highs, remained a key area of focus, with monetary authorities maintaining a calibrated stance to balance growth and price stability. The banking sector stayed well-capitalized, ensuring adequate liquidity and credit flow to productive sectors, including real estate.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The real estate sector is one of the most globally recognized sectors in contributing to nation building. In India, the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The real estate sector is the second-highest employment generator, after the agriculture sector. It comprises four sub-sectors - residential, retail, hospitality and commercial. The growth of this sector is complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation.

With strong government push, the real estate sector has witnessed transformational changes including investor-friendly FDI policies, enhanced transparency, stricter regulatory measures, the Real Estate Regulation and Development Act (RERA) 2016, Real Estate Investment Trust (REIT) Regulations, 2014, the Benami Transactions (Prohibition) Amendment Act, 2016 the Goods and Services Tax (GST), Smart Cities Mission, Housing for All, Deen Dayal Jan Awas Yogana (DDJAY) and AMRUT (Atal Mission for Rejuvenation and Urban Transformation). These reforms have resulted in increased traction from both 4 domestic and global investors. While major metropolitan areas such as Delhi NCR, Mumbai, Pune, Bengaluru and Chennai dominate the real estate construction sector, Tier-II and III cities contribute to fast-paced growth, aided by the governments push for affordable housing and infrastructure development.

Overall, Financial Year 2025-26 presents promising opportunities for growth in Indias real estate sector, underpinned by government initiatives, infrastructure development, and technological advancements aimed at fostering sustainable and inclusive development.

RAVINDE

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE heights

The Company operates in one segment only i.e. Real Estate Sector. The highlights of the Companys performance on standalone and consolidated basis during the Financial Year 2025-2026 are as under:

In Financial Year 2025-2026 your Company had Revenue from Operations of Rs. 141.12 Lakhs remain same as compared to previous year while Losses before Tax has increased to Rs. 72.94 lakhs from Rs. 71.68 Lakhs as compared to the - previous year on standalone basis and on Consolidated basis your Company had revenue from operations of Rs. 7,516.22 Lakhs from Rs. 57.30 Lakhs as compared to the previous year while having Profit before Tax Rs. 6,630.67 Lakhs as compared to Loss of Rs. 332.59 Lakhs in the previous year. The Management continues to focus on strengthening the Companys operations and remains optimistic about achieving even better results in the future.

4. # OPPORTUNITIES AND THREATS

The real estate sector in India faces promising opportunities amidst significant challenges in the upcoming fiscal years. Government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and extensive infrastructure projects are 0 expected to drive substantial demand for residential and commercial properties. Urbanization trends and a burgeoning young population further bolster the need for housing solutions, particularly affordable ones. Technological advancements, including virtual reality and block chain applications, promise to streamline transactions and improve operational efficiencies. However, the sector also contends with regulatory complexities, economic uncertainties impacting investor sentiment, and potential fluctuations in interest rates that could affect affordability and project feasibility. Stringent environmental regulations and the risk of market saturation in specific segments or regions add further layers of challenge, necessitating strategic resilience and adaptive approaches from stakeholders in the real estate industry.

5. OUTLOOK ON RISK AND CONCERN

- The Company is exposed to multiple risks such as economic, regulatory, taxation and environmental as well as sectoral , investment outlook. Some risks that may arise in the normal course of business and could impact their ability to address future developments, comprise credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. The Companys strategy of focusing on key products and geographical segments is exposed to economic and market conditions.

The Company continues to implement robust risk management policies that cater for risks and requisite mitigation plans.

The Company faces a spectrum of risks across economic, regulatory, taxation, and environmental domains, alongside sector-specific investment challenges. In our operations, key risks include credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk, and market risk, each potentially impacting our ability to navigate future developments effectively. Our strategic focus on specific products and geographical segments exposes us to economic £ and market fluctuations, which could affect demand and profitability. To address these risks, we maintain robust risk management policies that define risk tolerance levels and outline mitigation strategies. These measures are designed to enhance our resilience against unforeseen challenges, ensuring proactive management of potential impacts on our business operations and financial performance.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a robust and well-embedded system of internal financial controls which ensures that all assets are ^ safeguarded and protected against loss from unauthorized use or disposition and all transactions are authorised, recorded and reported correctly. An extensive risk-based program of internal audit and management review provides assurance on the effectiveness of internal financial controls, which are continuously monitored through management reviews, self-assessment, functional experts as well as by Statutory/ Internal Auditors during their audits.

The internal audit plan is also aligned with the business objectives of the Company, which is reviewed and approved by the Audit Committee. Further, the Audit Committee monitors the adequacy and effectiveness of the Companys internal control framework.

The Companys internal control system is commensurate with the nature, size and complexities of the operations.

The details of the financial performance on standalone basis of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements appearing separately, highlights of which are provided below:

(Rs. in Lakhs)

Particulars	F.Y. 2025-2026	F.Y. 2024-2025 /
Total Income	150.57	149.51
Profit/(Loss) Before Tax	(72.94)	(71.68)
Profit/(Loss) After Tax	(59.22)	(38.29)

The financial performance of the Company has been further explained in the Boards Report of the Company for the Financial Year 2025-26 appearing separately. The financial statements have been prepared in accordance with the requirement of the Act and applicable accounting standards issued by the Institute of Chartered Accountant of India.

Pursuant to the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, significant changes (change of 25% or more from FY 2024-25 to FY 2025-26) in the key financial ratios is applicable to the Company.

The Analysis of standalone financial statements for FY 2025-26 is provided below:

Ratio	FY 2026	FY 2025	Definition	Variance%	Explanation
Current Ratio	9.76:1	9.24:1	Current Assets /Current Liabilities	6%
Operating Profit Margin (%)	6.77%	11.33%	EBITDA/ Revenue from Operations	-40%	Due to increase in expenses
Net Profit Margin (%)	-39.33%	-25.61%	Profit After Tax/Total Revenue	54%	Due to increase in Loss
Return on Net Worth (%)	-0.16%	-0.11%	Net Income (PAT)/ Average Shareholders Equity	55%	Due to increase in loss

7. BUSINESS/FINANCIAL PERFORMANCE

8. HUMAN RESOURCE/INDUSTRIAL RELATIONS

The Company understands the importance of investing in the growth and development of its employees. It believes that it is crucial, not only for their personal success, but also for the overall success of the organization. Hence, the Company has crafted a comprehensive employees growth and development strategy that aims to empower the workforce, cultivate a culture of continuous learning and stimulate innovation and excellence throughout the organization. The unwavering commitment is to create a positive work environment that nurtures and supports the professional development of all employees, while striving to achieve the business goals.

The Company has invested in the HRMS (Time labs) to enhance staff experience in various HR matters and to digitalize process.

The key features of the new (Timelabs) system are as follows:

- Entire employee lifecycle will be managed on one unified platform with a single view of all modules.

o - Smart phone friendly and easy to operate on the mobile.

- Attendance & Leave Management.

- Employee Self-Service (ESS): caters to employee documents (address proof, employment proof etc.), data changes etc.

- View of HR Policy applicability for individual staff.

During the Financial Year 2025-26, the company has Seven (7) employees.

9. KEY FINANCIAL RATIOS -

10. CAUTIONARY STATEMENT

The above Management Discussion and Analysis contains certain forward-looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and - uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc.

# In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders + and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time on behalf of the Company.