Ravinder Heights Ltd Management Discussions

1. ECONOMIC OVERVIEW

The global economy witnessed a blend of opportunities and challenges. It persisted with challenges and uncertainties arising on account of inflation dynamics, rising geo-political tensions leading to supply-chain disruptions and pace of post pandemic recovery. However, economists believe that several growth opportunities lie ahead, which are well supported by resilient performance by Central Banks in controlling inflation, major emerging markets showing consistent and strong growth outlook along with soaring capital markets across the globe.

"The global macroeconomic landscape continues to face challenges, shaped by geopolitical developments like trade disputes and tighter financial conditions. In its revised outlook, the International Monetary Fund (IMF) projects global growth at 2.8% in 2025 and 3% in 2026. The IMF now expects global headline inflation to decrease more gradually than previously projected, estimating it will reach 4.3% in 2025 and 3.6% in 2026.

The Indian economy continues to strengthen despite the global headwinds. As per the First Advance Estimates (FAE) released by the National Statistical Office (NSO), real Gross Domestic Product (GDP) reported a 6.5% GDP growth rate in FY 2024-25, underpinned by strong investment activity.

For FY 2025-26, growth, while still healthy, may see a moderation to 6.8%-7% as per various estimates due to high interest rates and lower fiscal impulse would temper demand and the net tax impact would normalize. Also, the uneven economic growth of some trading partners and escalation of geopolitical uncertainties can drag down exports.

The World Bank expects India to grow by 6.3% in FY 2025-26 after an estimated growth of 6.5% in the previous financial year.

Although the short-term outlook appears challenging due to rising interest rates, external supply shocks, and geopolitical tensions, we believe the government is taking appropriate measures to ensure a sustainable growth trajectory for the country. The union budget presented this

Year strongly supports the long-term growth of Indias real estate sector through its focus on urban infrastructure and the digital economy. The governments significantly expanded capital expenditure target for the year is expected to generate job opportunities and stimulate higher economic activity.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

The real estate industry 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), real estate investment trust (REIT) guidelines, the benami transactions (prohibition) amended act, the Goods and Services Tax (GST), Smart Cities Mission, Housing for All, and AMRUT (Atal Mission for Rejuvenation and Urban Transformation). These reforms have resulted in increased traction from both domestic and global investors. While major metropolitan areas such as Delhi NCR, Mumbai, Pune, Bengaluru and Chennai dominate the real estate construction, tier-II and III cities contribute to fast-paced growth, aided by the government s push for affordable housing and infrastructure development. Overall, FY 2024-25 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.

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company operates in one segment only i.e. Real

Estate Sector. The highlights of the Company s performance on standalone and consolidated basis during the Financial Year 2024-25 are as under:

In FY 2024-25 your Company having revenue from operations of Rs. 141.12/- Lakhs, while Losses before tax has been increased to Rs. 71.68/- lakhs from Rs. 49.75/- Lakhs as compared to the previous year. On the Consolidated basis your Company having revenue from operations of Rs. 57.30/- Lakhs while having losses before tax Rs. 332.59/- Lakhs as compared to loss of Rs. 210.99/-Lakhs in the previous year. The Management looks to the future with optimism and hopes to do better in times to come.

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 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 Company s 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. This 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 programed of internal audit and management reviews, provides assurance on the effectiveness of internal financial controls, which are continuously monitored through management reviews, self-assessment, functional experts as well as by the Statutory/ Internal Auditors during their audits.

The internal audit plan is also aligned to 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 Company s internal control framework.

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

7. BUSINESS/FINANCIAL PERFORMANCE

The details of the financial performance of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements appearing separately. Highlights are provided below:

The financial performance of the Company has been further explained in the Board s Report of the Company for the Financial Year 2024-25 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.

8. HUMAN RESOURCE/INDUSTRIAL RELATIONS

The Company understands the importance of investing in the growth and development of its employees. It believes that this 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 also Launch of HRMS (Time labs) to enhance staff experience in Various HR matters and to digitize process.

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

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

??Smart phone friendly and easy to operate all functions 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.

As on March 31, 2025 the group has 5 employees.

9. KEY FINANCIAL RATIOS

In compliance with the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, significant changes (change of 25% or more from F.Y 2023-24 to F.Y 2024-25) in the key financial ratios applicable to the Company.

Analysis of consolidated financial statements for F.Y 2024-25 is provided below: