Roselabs Finance Ltd Management Discussions

Cautionary Statement

Statements in this report on Management Discussion and Analysis may be forward looking statements within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax regimes, economic developments within India and other incidental factors. The Company assumes no responsibility in respect of the forward-looking statements herein, which may undergo changes in future on the basis of subsequent development.

The Indian economy is projected to grow by 6.5% in FY26, which is close to the 6.4% growth seen in FY25 as well as the decadal average, but lower than the 8.2% growth that the economy clocked in FY24. The retail inflation 5.4% in FY24 to 4.9% in FY25. At the same time, the banking sector remains robust with declining asset impairments, well capitalized balance sheets and strong operational performance.

Despite the challenges, Indias strong macroeconomic fundamentals and improvements in external sector indicators have helped it navigate global uncertainties. RBI expects the economy to grow around 6.5% in FY26. The union budget for FY26 has prudently balanced fiscal consolidation with growth objectives. Its emphasis on capital expenditure is complemented by measures aimed at boosting household incomes and consumption. Key indicators like higher tractor sales, rising farm incomes, increased fuel consumption, growth in air passenger traffic suggests recovery in economic momentum.

To accelerate Indias growth, the Government must prioritize a return to significant capital expenditure and increase funding for crucial infrastructure projects, while actively driving states to improve their utilization of allocated resources. The Government must continue to invest in addressing skill gaps, particularly in industry-relevant professional skills to ensure a future-ready workforce and a robust pipeline of talent.

Despite all the external and internal roadblocks in CY25, including inflation, general elections and geopolitical tensions,

India continues to be one of the fastest growing major economies in the world. The Indian real estate sector has shown robust growth since the pandemic. While initial recovery saw a surge in housing sales, commercial leasing has also gained significant traction over the past year. Hospitality sector continues to do exceedingly well with average daily rates at an all-time high. As India moves from being a low-income to a middle-income country, household incomes and spending will continue to rise giving a long runway for growth in the real estate sector. Real estate will continue being a driver of growth and employment and will continue to take larger share of the countrys GDP, as is the case in other more developed and advanced economies.

A large and growing population, strong economy, high single digit wage growth and urbanization trends are expected to drive demand for housing in the years to come. There is a visible shift in customer preferences towards more branded developers, recognizing the importance of execution capability. Reforms over the last decade along with learnings from the past, for both developers as well as home buyers continue to foster a more rational and stable real estate market. As wages grow, home buyers will continue to become more discerning in their choices and will want better quality developments. Overall, the residential market across the top Indian cities is entering a phase of greater maturity, characterized by more measured growth, increased competition among branded developers, and a focus on timely execution, quality of construction and affordability for the home buyer.

Because housing has been in a secular uptrend over the last 4 years, there are concerns of this being the peak of the cycle and demand softening going forward. Notwithstanding this, the reality remains Indias dire need for quality housing and low home ownership capability levels. As wages continue to grow and home ownership capability emerges in more households, housing demand will keep unfolding. It is our belief that we are only in the early stages of a multi decade housing upcycle.

Structural demand drivers and industrydynamicswillcontinuetogeneratesignificanthousing demand in the foreseeable future. Housing remains a necessity and coupled with the availability of quality supply at affordable price points, we anticipate that this demand will translate into robust pre-sales in the years ahead.

Indias growth trajectory remains robust, supported by ongoing policy reforms, a focus on manufacturing, supply chain diversification away from China, and a strong service positive consumer sentiment and the inherent security associated with homeownership are expected to sustain strong housing demand. Furthermore, anticipated interest rate reductions and government-led tax rebates will provide additional impetus to the affordable and mid-income housing segments.

The Company does not have any project and has no plan to take up any real estate project in near future.

The real estate sector is heavily dependent on manpower. There is a need for development of technologically less labour-intensive alternative methods of construction. Further, the increase in land prices, inputs costs are risks to the industry.

Higher interest cost would dent margins and may have a direct effect on the customers cash flow as well. Increase in end product prices coupled with tight liquidity may impact demand. The various taxes and levies would add to the costs and this is likely to squeeze margins as end product prices may not go up correspondingly. The company has a Risk Management Policy, which is being periodically reviewed.

The Company does not have any project and has no plan to take up any real estate project in near future.

The internal control commensurate with the activities is supplemented by continuous review by the management. The internal control system is designed to ensure that every aspect of the companys activity is properly monitored.

The details of financial performance and operation performance are given in the Directors Report.

The Company does not have any employee. The KMPs are deputed by the holding company.

In preparation of these financial statements, the Company has followed the prescribed Indian Accounting Standards and no different treatment had been followed.