shradha infraprojects ltd Management discussions

= COMPANY OVERVIEW :

SHRADHA INFRAPROJECTS LIMITED ("SHRADHA") is an organisation that o ers building and engineering services that are environmentally friendly. SHRADHA nished numerous projects and erected stunning iconic buildings. Every infrastructure project lays the groundwork for us to dream bigger and build a more contemporary structure, which enables us to establish a favourable position in the building sector. The following are some of the Shradha-created initiatives in Nagpur, Maharashtra, that have become notable accomplishments:

4 Shradha House

4 Victoria House

4 Mangalam Shradha

= OVERVIEW :

= Introduction:

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for o ce space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced e ects in all sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

= Market Size:

By 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing signi cantly, providing the much-needed infrastructure for Indias growing needs.

Indias real estate sector saw over 1,700 acres of land deals in top eight cities in the rst nine months of FY22. Foreign investments in the commercial real estate sector were at US$ 10.3 billion from 2017-2021. As of February 2022, Developers expect demand for o ce spaces in SEZs to shoot up after the replacement of the existing SEZs act.

As per ICRA estimates, Indian rms are expected to raise >Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth US$ 29 billion to date.

The o ce market in the top eight cities recorded transactions of 22.2 msf from July 2020 to December 2020, whereas new completions were recorded at 17.2 msf in the same period. In terms of share of sectoral occupiers, Information Technology (IT/ITeS) sector dominated with a 41% share in the second half of 2020, followed by BSFI and Manufacturing sectors with 16% each, while Other Services and Co-working sectors recorded 17% and 10%, respectively.

Around 40 million square feet were delivered in India in 2021. It is expected that the country will have a 40% market share in the next 2-3 years. India is expected to deliver 46 million square feet in 2022.

According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025.

In 2020, the manufacturing sector accounted for 24% of o ce space leasing at 5.7 million square feet. SMEs and electronic component manufacturers leased the most between Pune, Chennai and Delhi NCR, followed by auto sector leasing in Chennai, Ahmedabad and Pune. The 3PL, e-commerce and retail segments accounted for 34%, 26% and 9% of o ce space leases, respectively. Of the total PE investments in real estate in Q4 FY21, the o ce segment attracted 71% share, followed by retail at 15% and residential and warehousing with 7% each.

In 2022, o ce absorption in the top seven cities stood at 38.25 million Sq. ft.

In the third quarter of 2021 (between July 2021-September 2021), new housing supply stood at ~65,211 units, increased by 228% YoY across the top eight cities compared with ~19,865 units launched in the third quarter of 2020.

In 2021-22, the commercial space is expected to record increasing investments. For instance, in October 2021, Chintels Group announced to invest Rs. 400 crore (US$ 53.47 million) to build a new commercial project in Gurugram, covering a 9.28 lakh square feet area.

According to the Economic Times Housing Finance Summit, about three houses are built per 1,000 people per year compared with the required construction rate of ve houses per 1,000 population. The current shortage of housing in urban areas is estimated to be ~10 million units. An additional 25 million units of a ordable housing are required by 2030 to meet the growth in the countrys urban population.

= Global Economy

The baseline forecast is for growth to fall from 3.4% in 2022 to 2.8% in 2023, before settling at 3.0% in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7% in 2022 to 1.3% in 2023. With further Financial sector stress, global growth declines to about 2.5% in 2023 with advanced economy growth falling below 1.0%.

Global headline in ation in the baseline is set to fall from 8.7% in 2022 to 7.0% in 2023 on the back of lower commodity prices but underlying (core) in ation is likely to decline more slowly. In ations return to target is unlikely before 2025 in most cases.

= Indian Economy

Indias growth continues to be resilient despite some signs of moderation in growth, although signi cant challenges remain in the global environment, India was one of the fastest growing economies in the world.

The overall growth remains robust and is estimated to be 6.9% for the full year with real GDP growing 7.7% year on year during the rst three quarters of FY 2022-23. There were some signs of moderation in the second half of FY

2022-23. Growth was underpinned by strong investment activity bolstered by the governments capex push and buoyant private consumption, particularly among higher income earners. In ation remained high, averaging around 6.7% in FY 2022-23 but the current account de cit narrowed in Q3 on the back of strong growth in service exports and easing global commodity prices.

The World Bank has revised its FY 2023-24 GDP forecast to 6.3% from 6.6% (December 2022). Growth is expected to be constrained by slower consumption growth and challenging external conditions. Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic related scal support measures.

Although headline in ation is elevated, it is projected to decline to an average of 5.2% in FY 2023-24, amid easing global commodity prices and some moderation in domestic demand. The Reserve Bank of India has withdrawn accommodative measures to rein in in ation by hiking the policy interest rate. Indias Financial sector also remains strong, buoyed by improvements in asset quality and robust private sector credit growth.

The central government is likely to meet its scal de cit target of 5.9% of GDP in FY 2023-24 and combined with consolidation in state government de cits, the general government de cit is also projected to decline. As a result, the debt to GDP ratio is projected to stabilize. On the external front, the current account de cit is projected to narrow to 2.1% of GDP from an estimated 3.0% in FY 2022-23 on the back of robust service exports and a narrowing merchandise trade de cit.

Spillovers from recent developments in Financial markets in the US and Europe pose a risk to short-term investment ows to emerging markets, including India.

= Indian Infrastructure Sector:

Indian economy is driven through multiple economic sectors and infrastructure is one of the major sector contributions to continuous growth. The infrastructure sector in India is poised to grow at a CAGR of 8.2% by 2027. The launch of a quadrilateral economic forum by India, the US, Israel & the UAE in November 2021 has further added to the in ux of infrastructure growth perspectives. Alternatively, the introduction to the "Infrastructure for Resilient Island States" program in November 2021 has shown a signi cant opportunity to improve the lives of vulnerable nations across the globe by enabling Indian infrastructure growth to ourish in tri-folds.

In order to meet Indias aim of reaching a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as Make in India and the production-linked incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80% of the countrys infrastructure spending has gone toward funding for transportation, electricity, and water& irrigation.

In India, about 42% of the projects in the NIP are under implementation, which means construction work is already going on. Another 19% is under the development stage, while a signi cant 31% is still in the conceptual stage. During the scals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.

Infrastructural Projects in India

Major/Key infrastructural projects undertaken in India are

4 Gati Shakti and Industrial Corridors

4 Bharatmala Pariyojana

4 Delhi Mumbai Industrial Corridor

Gati Shakti and Industrial Corridors:

The main objective of the Gati Shakti and Industrial Projects corridor implemented in India in 2019 is to ensure integrated planning and implementation of basic infrastructure projects over the next four years, with a focus on expediting on-groundwork, cost reduction, and employment generation. The National Infrastructure Pipeline of US$ 1,327 billion (Rs 110 lakh crores) launched in the year 2019 under the Gati Shakti scheme will be included.

Bharatmala Pariyojana

Bharatmala Pariyojana is a new umbrella program for the highways sector that focuses on optimizing the e ciency of freight and passenger movement across the country by bridging critical infrastructure gaps through e ective interventions like the development of Economic Corridors, Inter Corridors, and Feeder Routes, National Corridor E ciency Improvement, Border and International connectivity roads, Coastal and Port connectivity roads, and Green- eld expressways. Under the rst phase of the ambitious Bharatmala Project of the Ministry of Road Transport and Highways, 34,800 km of national highways will be constructed at a cost of US$ 64 billion (Rs 5,35,000 crores).

Delhi-Mumbai Industrial Corridor

The Delhi-Mumbai Industrial Corridor (DMIC) is the rst industrial corridor development project announced by the Government of India. The Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC), the implementing agency of this development project, was incorporated in the year 2008.

The total sanctioned amount for this program is about US$ 2.4 billion (Rs 20,084 crores). 11 industrial corridor projects have been taken up under the programme, and a total of 30 projects will be developed under the program in four phases by 2024-25. The National Industrial Corridor Development and Implementation Trust (NICDIT) is functioning under the administrative control of the Department for Promotion of Industry and Internal Trade (DPIIT) for coordinated & integrated development of all the Industrial Corridors that are at various stages of development and implementation.

= FDI in Infrastructure in India

Foreign Direct Investment (FDI) in the construction development (townships, housing, built-up infrastructure, and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.17 billion and

US$ 26.30 billion, respectively, from April 2000 Dec 2021, according to the Department for Promotion of Industry and Internal Trade (DPIIT). Infrastructure-related operations made about 13% of the US$ 81.72 billion total FDI in ows in the Financial year (FY) 2021. Indias infrastructure is anticipated to expand at a compound annual growth rate (CAGR) of almost 7% during the forecast period (2019-2028).

Highway construction would be done, with 2,500 km of access control highways, 9,000 km of economic corridors, 2,000 km of coastline and land port roads, and 2,000 km of strategic highways. The FASTag system promotes greater highway commercialization, allowing the National Highways Authority of India (NHAI) to raise more funds. Before 2024, it was projected to monetize at least 12 lots of roadway bundles totalling more than 6,000 km. The government has set aside US$ 236 billion (Rs. 1,963,943 crores) in the budget for road infrastructure.

The government-sponsored National Investment and Infrastructure Fund (NIIF) received a funding commitment of US$ 100 million from the multilateral Asian Development Bank (ADB) in 2020. Between the Financial years (FY) 2000 and (FY) 2019, in ows in the verticals of townships, construction development projects, and housing were estimated at US$ 25.5 billion. The "Smart Cities Mission" and "Housing for All" programmes have bene ted from these initiatives. Saudi Arabia seeks to spend up to US$ 100 billion in India in energy, petrochemicals, re nery, infrastructure, agriculture, minerals, and mining.

Infrastructure Growth Highlights

= Surety Bond Insurance

The road, transport, and highways ministry launched the countrys rst-ever surety bond insurance product, a move that would reduce the dependence of infra developers on bank guarantees.

Surety Bond Insurance acts as a security arrangement for infrastructure projects and insulates the contractor as well as the principal. The product caters to the requirements of a diversi ed group of contractors, many of whom are operating in todays increasingly volatile environment. The Surety Bond Insurance is a risk transfer tool for the principal and shields the principal from the losses that may arise in case the contractor fails to perform their contractual obligation.

= Research Development

According to the Ministry of Road Transport & Highways, National Institute of Technology, Silchar, (NIT Silchar) and National Highways Infrastructure Development Corporation Limited (NHIDCL), have signed an MoU to boost cooperation in the eld of highway engineering and other infrastructure works.

"National Highways & Infrastructure Development Corporation Ltd (NHIDCL), a CPSE under the Ministry of Road Transport & Highways has signed MoU with NIT, Silchar on 26th October 2022 for seeking and promoting innovative technologies to nd pragmatic solutions to the challenges posed in the construction of highways facing extreme climatic conditions".

= Road & Transport System

National highways account for 2% of the total road network and carry over 40% of total tra c. Highway construction in India increased at 17.00% CAGR between FY16-FY21. Despite the pandemic and lockdown, India has constructed 13,298 km of highways in FY21. In FY21, 13,298 km of the highway was constructed across India.

The market for roads and highways is projected to exhibit a CAGR of 36.16% during 2016-2025. Almost 40% (824) of the 1,824 PPP projects awarded in India until December 2019 were related to roads.

The highways sector in India has been at the forefront of performance and innovation. The government has successfully rolled out over 60 projects worth over US$ 10 billion based on the Hybrid Annuity Model (HAM). HAM has balanced risk appropriately between private and public partners and boosted PPP activity in the sector.

= Road to Future

The roadmap to Indias infrastructure is exciting and the new decade seems to be promising. More and more green and clean initiatives are happening across government bodies in major countries, especially, the Indian government has given the much-needed push to the infrastructure sector in the recent 2021 budget. India is looking at a US$ 5 trillion economy dream.

As per the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development and construction sector stood at US$ 26.17 billion and US$ 26.30 billion, respectively, between the period of April 2000 and December 2021. The logistics sector in India is rising at a CAGR of 10.5% annually which shows that both in terms of investments and revenue the infra game is going strong.

India is now at a juncture where a huge investment in R&D for energy-e cient and green fuel is much-needed. Thus, boosting the overall infrastructure.

= Investments/Developments

Indian real estate sector has witnessed high growth in the recent times with rise in demand for o ce as well as residential spaces. The Private Equity Investments in Indias real estate sector, stood at US$ 3.4 billion in 2022.

The Securities and Exchange Board of India lowered the minimum application value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 - US$ 205.59) to make the market more accessible to small and retail investors.

FDI in the sector (including construction development & activities) stood at US$ 55.5 billion from April 2000-December 2022.

Some of the major investments and developments in this sector are as follows:

4 Between January-July 2022, private equity investment in ows into the real estate sector in India stood at US$ 3.27 billion.

4 Home sales across top eight cities in India surged 68% YoY to reach ~308,940 units in 2022, signifying a healthy recovery in the sector.

4 Retail real estate segment attracted institutional investments of US$ 492 million in 2022.

4 In the third quarter of 2021, the Institutional real estate investment in India increased by 7% YoY. Investment registered in the rst nine months of 2022 stood at US$ 2,977 million, as against US$ 1,534 million in the same period last year.

4 In November 2021, Ascendas India bought Aurum Ventures 16-storey commercial tower in Navi Mumbai for Rs. 353 crore (US$ 47 million), making it the largest deal of a standalone commercial tower by a global institutional investor during the past few years.

4 REA India-owned online real estate company Housing.com tied up with online legal assistance start-ups LegalKart, Lawrato, Vidhikarya and Vakil to o er legal advice and assistance to homebuyers.

4 Top three cities Mumbai (~39%), NCR-Delhi (~19%) and Bengaluru (~19%) attracted ~77% of the total investments recorded in the third quarter.

4 Indias exible space stock is likely to expand by 10-15% YoY, from the current 36 million sq. ft., in the next three years, according to a report by CBRE.

4 To establish an investment platform for the Indian retail-led mixed-use assets, in June 2021, GIC announced to acquire a minority stake in Phoenix Mills portfolio (worth US$ 733 million).

4 In May 2021, Blackstone Real Estate acquired Embassy Industrial Parks for Rs. 5,250 crore (US$ 716.49 million) to expand its presence in the country.

4 To expand into the Indian real estate market, SRAM & MRAM Group collaborated with Area CAS Developers and Infrastructure Private Limited (Area Group), and Gupta Builders and Promoters Private Limited (GBP Group) of India. It plans to invest US$ 100 million in the real estate sector.

4 Private market investor, Blackstone, which has signi cantly invested in the Indian real estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion) is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030.

= GOVERNMENT INITIATIVES

Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies. Below are some of the other major Government initiatives:

4 In the Union Budget 2023-24, the Finance Ministry has announced a commitment of Rs. 79,000 crore (US$ 9.64 billion) for PM Awas Yojana, which represents a 66% increase compared to the last year.

4 In October 2021, the RBI announced to keep benchmark interest rate unchanged at 4%, giving a major boost to the real estate sector in the country. The low home loan interest rates regime is expected to drive the housing demand and increase sales by 35-40% in the festive season in 2021.

4 Under Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2069.89) on interest on housing loan, and tax holiday for a ordable housing projects have been extended until the end of scal 2021-22.

4 The Atmanirbhar Bharat 3.0 package announced by Finance Minister Mrs. Nirmala Sitharaman in November 2020 included income tax relief measures for real estate developers and homebuyers for primary purchase/sale of residential units of value (up to Rs. 2 crore (US$ 271,450.60) from November 12, 2020 to June 30, 2021).

4 In order to revive around 1,600 stalled housing projects across top cities in the country, the Union Cabinet has approved the setting up of Rs. 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF).

4 Government has created an A ordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/ Financial institutions for micro nancing of the HFCs.

4 As of December 31, 2022, India formally approved 425 SEZs, and as of January, 2023, 270 SEZs are operational. Most special economic zones (SEZs) are in the IT/ BPM sector.

= Road Ahead

The Real Estate Investment Trust (REIT) platform, which will allow all types of investors to invest in the Indian real estate market, has been approved by the Securities and Exchange Board of India (SEBI). In the ensuing years, it would produce a market opportunity in India worth Rs. 1.25 trillion (US$ 19.65 billion). Indian real estate developers have changed tactics and embraced new challenges in response to a consumer base that is becoming more aware and keeping in mind the impact of globalisation.

The transition from family-owned to professionally managed rms has been the most obvious change. Real estate developers are hiring quali ed experts in elds like project management, architecture, and engineering in order to ful l the increased need for managing many projects across cities. They are also investing in centralised processes to source materials and organise labour.

With the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing and metropolitan A airs, the central government intends to build 20 million a ordable houses in metropolitan areas across the country by 2022, the residential sector is likely to increase dramatically. The need for commercial and retail o ce space will rise as more homes are expected to be built in urban areas.

An estimated 10 million housing units are currently needed in urban areas. By 2030, the country would need an additional 25 million a ordable dwelling units to accommodate the increase in the urban population.

The amount of FDI in Indian real estate is increasing, which promotes greater openness. Developers have updated their accounting and management systems to meet due diligence criteria in order to seek investment. Indian real estate is anticipated to draw a sizable amount of FDI over the next two years, with a capital in ux of $8 billion by FY22.

= COMPANYS VISION

Throughout the past three decades, the Company has expanded in number and joined growing infrastructure segments. After achieving success in the select areas of businesses, the company today has a much more focused approach and is picking projects which suit its credentials, improve its credibility and enrich the society in general. Shradha has secured orders in all these segments for infrastructure development which helped the company grow faster. Shradha is now looking forward to major prospects for new contracts in selected markets. Manufacturing Systems are observed to see growth with some steady feedback from other industrial and infrastructure sectors.

Shradha has adopted a policy to carefully choose new projects based on proper risk assessment. Revenue and Order Book are expected to grow at steady pace. Having achieved a strong market share, the focus is now on improving Operational Excellence, Digitalization of key business processes, improving the Engineering methods by adoption of new techniques in general, Execution capabilities and leadership teams.

On the occasion of completing 26 years in business, we take this opportunity to thank every individual and stakeholder who has contributed to this success story.

= OPPORTUNITIES AND CHALLENGES

Opportunities

As India awaits policy reforms to pick up speed, your Company rmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Companys 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. Your Company is ideally placed to further strengthen its development potential by acquiring new land parcels.

Challenges

While the management of your Company is con dent of creating and exploiting the opportunities, it also nds the following challenges:

4 Unforeseen delays in project sanctions;

4 Readiness of accomplished and trained labour force;

4 Concerns due to ongoing pandemic situation;

4 Increased cost of labor manpower;

4 Rising cost of construction lead by increase in commodity prices;

4 Growth in auxiliary infrastructure facilities; and

4 Over regulated environment.

Company Strengths

Your Company continues to capitalize on the market opportunities by leveraging its key strengths.

These include:

1. Brand Reputation: Enjoys higher recall and in uences the buying decision of the customer. Strong customer connects further results in higher premium realizations.

2. Execution: Possesses a successful track record of quality execution of projects with contemporary architecture.

3. Strong cash ows: Has built a business model that ensures continuous cash ows from their investment and development properties ensuring a steady cash ow even during the adverse business cycles.

4. Signi cant leveraging opportunity: Follows conservative debt practice coupled with enough cash balance which provides a signi cant leveraging opportunity for further expansions.

5. Outsourcing: Operates an outsourcing model of appointing globally renowned architects/contractors that allows scalability and emphasizes contemporary design and quality construction a key factor of success.

6. Transparency: Follows a strong culture of corporate governance and ensures transparency and high levels of business ethics.

7. Highly quali ed execution team: Employs experienced, capable and highly quali ed design and project management teams who oversee and execute all aspects of project development.

KEY DEVELOPMENTS IN FY 2022-23

4 During the year FY 2022-23, your Company secured order from M/s Chakradhar Contractors & Engineers Pvt. Ltd., for Re sectioning of the disturbed dam pro le of Ravishankar Sagar Dam Gangrel .Chhattisgarh, India.

4 M/s Digvijay Shradha Infrastructure Private Limited [Fellow Subsidiary of Shradha Infraprojects Limited] entered into Sub Contract agreement with M/s Digvijay Construction Private Limited for Construction of Four- Lane "Western Side Spur of Rampur Rudrapur Section Connecting NH-24 to NH-87 by passing Rampur Town" (Design Km 00+000) to (Design Km 13 + 700) on EPC Mode in the State of Uttar Pradesh for a consideration of Rs. 221.46 Crores, being awarded from National Highway Authority of India.

4 During the year FY 2022-23M/s Active Infrastructures Private Limited (unlisted material subsidiary Company )has entered into various sell agreements with the parties for sale of property owned by the Company situated at "Riaan Towers", at Dr. Rangilal Marg, Mangalwari Bazar Road, Sadar, Nagpur

4 launched the new Residential Group Housing Scheme in the name of Abhiman Niwas which is a 7 Towers (i.e. 4 no. towers 1BHK and 3 no. Towers - 2 BHK) scheme in the prime location situated at Isasani, Hingna, Nagpur.

Present view of the ongoing project

Name of Project - Re sectioning of the disturbed dam pro le as per design section, Resetting of disturbed u/s _ rip-rap/pitching, Repair of road, parapet walls at dam top, Tur ng on the d/s face of dam, construction of road da m top to gallery & gauge well, Fencing of D/S of Dam., Construction of boundary pillar at M.W.L. at submergence of Ravishankar Sagar Dam Gangrel. Location - 4 Dhamtari District Chattisgarh, India Estimated Cost - 4 Rs. 5.33/- Crores

4 FINANCIAL PERFORMANCE :

Abridged Profitand Loss Statement

(Amount in Rs. Lakhs except EPS)

Description	Standalone	Standalone	Consolidated	Consolidated
	2022-23	2021-22	2022-23	2021-22
Revenue from Operations	102.39	70.06	9042.22	180.14
Other Income	930.70	252.91	708.31	287.49
Total Income	1033.09	322.97	9750.53	467.63
Purchase of Stock- in- trade	43.17	66.74	7671.41	163.51
Employee Bene ts Expense	82.53	82.70	84.50	87.00
Financial Expenses	2.05	1.54	4.21	2.36
Depreciation & Amortization Expenses	8.29	14.13	12.40	14.17
Other Expenses	51.18	24.47	63.01	30.84
Total Expenses	187.23	189.57	7835.54	297.87
Profit/ (Loss) before Exceptional Items and Tax	845.86	133.40	1915.00	169.75
Exceptional Items
ProfitBefore Tax	845.86	133.40	1915.00	169.75
Tax Expenses	154.32	15.51	488.70	22.50
ProfitAfter Tax	691.54	117.89	1426.38	147.25
Other Comprehensive Income	0.65		0.65
Tax expenses
Net Amount
Total Comprehensive Income	692.19	117.89	1427.03	147.25
Less- Share of Non-Controlling Interest			6.90	0.02
Profitfor the year for the owners of the
Company			1420.13	147.23
Earnings per share (Basic)	3.42	0.58	7.01	0.73
Earnings per share (Diluted)	3.42	0.58	7.01	0.73

= On Standalone basis

(a) Income Analysis : The Companys total revenues for the current year ended 31st March, 2023 stood at Rs. 1033.09 Lak/- (b) Expense Analysis : Depreciation and Finance cost Depreciation during 2022-23 amounted to Rs. 8.29/- Lakhs. Finance cost increased to Rs. 2.05/- Lakhs in 2022-23 as compared to Rs. 1.54/- Lakhs in 2021-22.

(c) ProfitAnalysis : PBT during 2022-23 was Rs. 845.86/- & Profitafter tax for 2022-23 was Rs. 691.54./-. (d) Net Worth : The Net worth of the Company is Rs. 5918.50/- Lakhs.

= On Consolidated basis

(a) Income Analysis : The Companys total revenues for the current year ended 31st March, 2023 stood at Rs. 9750.53/- (b) Expense Analysis : Depreciation and Finance cost Depreciation during 2022-23 amounted to Rs. 12.40/- Lakhs Finance cost increased to Rs. 4.21/- in 2022-23 as compared to Rs. 2.36/- in 2021-22.

(c) ProfitAnalysis : PBT during 2022-23 was Rs. 1915.00/- & Profitafter tax for 2022-23 was Rs. 1426.38/-. (d) Net Worth : The Net worth of the Company is Rs. 7366.30/-.

= KEY RATIO INDICATOR

Sr. Ratio No	Current Period	Previous Period	% Variance	Reason for Variance
(a) Current Ratio (Current Assets / Current Liabilities)	4.71	12.87	-63.39%	Substantial increase in current liabilities due to availment of bank OD
(b) Debt-Equity Ratio (Total Debt / Total Equity)	0.08	0.00	100.00%	Bank Overdraft facility availed in current year
(c) Debt Service Coverage Ratio (EBITDA & Non Cash Items / Total Installment)	341.59	0.00	100.00%	Bank Overdraft facility availed in current year
(d) Return on Equity Ratio (Net ProfitAfter Tax / Average Shareholders Equity)	3.05%	0.55%	2.50%	-
(e) Inventory turnover ratio (Net Sales / Average inventory)	0.02	0.03	-36.41%	Increase in inventory compared to previous year
(f) Trade Receivables turnover ratio (Net sales/Average accounts receivable)	0.47	0.44	7.31%	-
(g) Trade payables turnover ratio (Net Credit Purchases/ Average accounts payable)	0.54	2.62	-79.35%	Increase in trade payables compared to previous year
(h) Net capital turnover ratio (Net Sales / Working Capital)	0.04	0.03	23.12%	-
(i) Net Profitratio (ProfitAfter Tax / Net Sales)	675.38%	168.28%	507.10%	Increase in net Profitdue to sale of immovable property & dividend income as compared to previous year
(j) Return on Capital employed (EBIT / (Total net worth - Intangible Assets +Total debt - Deferred Tax Asset)	13.24%	2.50%	10.74%	-
(k) Return on investment (Gain on Investment/Total Investment)	14.06%	0.00%	14.06%	-

= INTERNAL CONTROL SYSTEM

The Company has a su cient system of internal controls to support managements evaluation of the e ectiveness of the Financial and operational controls and to provide assurance on adherence to the Companys established systems and procedures. Internal Controls and paperwork are in place for all actions in accordance with the requirements of the Companies Act, 2013, which was passed in 2013. Internal auditors and statutory auditors have independently examined internal Financial controls (IFC) at the entity and operational levels and have both expressed satisfaction with the e cacy of the controls. To guarantee that transactions are properly authorised, accurately recorded, and that assets are protected, controls are periodically reviewed. The Audit Committee periodically examines the conclusions and suggestions made by the Auditors and makes any necessary corrections.

The Company has also concentrated on modernising the IT infrastructure, including the hardware and software components. To make sure that the controls are operating e ectively in all of the companys major functional areas, the company is now examining the process documentation.

= RISKS AND CONCERNS:

To manage risks with the ultimate goal of maximising stakeholders value, the company has an integrated and organised enterprise risk management process. At Shradha, the risk management process typically entails risk identi cation, assessment, prevention, prioritisation, and monitoring. With the aid of this technique, the Company is better able to take informed decisions about the creation of opportunities, e ectively manage risks to acceptable levels, and enhance con dence in the accomplishment of its desired goals and objectives.

= Risk Management Framework

The Company has a de ned Risk Management policy applicable to all businesses of the Company. This aids in locating, evaluating, and minimising risk that might a ect the Companys productivity and attainment of its corporate goals. The various business and functional chiefs across the organisation keep a close eye on the risks. The Company is subject to a number of risk factors because of the nature of the industry it operates in. These risk factors can be broadly categorised as political, competitive, operational, and Financial concerns. From the pre-bid phase through project execution and project conclusion, risk management procedures are followed at all times.

Future projects incorporate the key project takeaways after an analysis of the key project learnings. The Company regularly holds knowledge-sharing workshops to reinforce the fundamentals of risk management, as well as its requirements and advantages. Independent directors and senior management make up the companys risk management committee. The Risk Management Committee evaluates each major risk that has been identi ed as well as any new threats on a quarterly basis and determines the status of any plans or mitigation measures.

= HUMAN RESOURCE (HR)

SHRADHA always believes in Human Resources are an important asset of our organization. In this current rapidly changing Economic, Socio-Political business world of VUCA (Volatile, Uncertain, Complex and Ambiguous) environment, sustainability of the companies for decades is a rare instance. The Company draws its strength from a highly skilled and engaged workforce whose collective commitment has helped the organization to scale new heights by celebrating 24 years of successful execution of projects. HR function is fully specialized to respond to varied Human Resource needs of Companys business verticals to enable each Division to maintain the human strategic advantage.

= HEALTH AND SAFETY:

SHRADHA has always held the view that our companys human resources are a valuable asset. Sustainability of the rms for decades is an uncommon occurrence in todays fast evolving economic, sociopolitical, and business climate of VUCA (Volatile, Uncertain, Complex, and Ambiguous) environment. The Companys highly experienced and dedicated personnel, whose combined dedication has enabled the organisation to reach new heights by celebrating 24 years of project success, is its greatest asset. Each Division is able to preserve the human strategic advantage thanks to the HR functions complete specialisation in responding to the various human resource needs of the Companys business verticals.

= HEALTH AND SAFETY:

SHRADHA is dedicated to the workers health and safety at all times. All employees are given a tidy, sanitary, and welcoming workplace by your company. Your company has increased its e orts to guarantee the health and safety of its employees during the epidemic. All buildings and sites undergo routine cleaning, social distance standards are observed, sanitizers are installed in various places, visitor entryways are kept to a minimum, and masks are required. Weekly mailers are distributed to employees to inform them of the safety precautions to be taken during pandemic times..

= OUTLOOK

The historical sales momentum may slow down a little as we move into 2022 2023, but it will still be strong enough to tell a happy tale. Contrary to the previous year, the infrastructure and real estate sectors are presently expanding thanks to motivated home purchasers. Construction activity has restarted and work is progressing more quickly to meet obligations now that the majority of the workers who were forced to leave during the lockdown have returned.

There are many homes in India that are unsold but are ready for occupants, and there is no GST to be paid because occupation certi cates have already been given. Additionally, this has encouraged homebuyers to approach real estate as a proactive investment.

There are many homes in India that are unsold but are ready for occupants, and there is no GST to be paid because occupation certi cates have already been given. Additionally, this has encouraged homebuyers to approach real estate as a proactive investment.

= CAUTIONARY STATEMENT

The forward-looking statements in this management discussion and analysis re ect the current beliefs of your company on upcoming developments and Financial performance. Numerous factors could cause the actual outcomes to signi cantly deviate from those projected in the forward-looking statements.

The Company disclaims all liability and obligation to publicly update or revise any forward-looking statements to re ect new information, future developments, or other factors. Actual results could signi cantly vary from those projected in the statement. The regulatory authoritys determination of tari and other charges and levies, changes to government rules and tax laws, local economic trends, as well as other elements on a worldwide scale, are important variables that could have an impact on the companys operations.

The Companys Financial statements are prepared using the historical cost convention, on the accrual basis of accounting, and in compliance with Section 133 of the Companies Act, 2013 (the "Act") and the Indian Accounting Standards. In order for the Financial statements to accurately and fairly depict the situation and Profitfor the year, the management of SHRADHA INFRAPROJECTS LIMITED ("SHRADHA") has employed estimates and judgements relevant to the Financial accounts on a cautious and reasonable basis.

On behalf of the Board

For SHRADHA INFRAPROJECTS LIMITED

SD/-	SD/-
Nitesh Sanklecha	Shreyas Raisoni
Managing Director & CFO	Whole Time Director
(DIN: 03532145)	(DIN: 06537653)

th

Date: 28 June, 2023

Place: Nagpur