Shradha Infraprojects Ltd Management Discussions.

The Company undertakes no obligation to publicly update or revise any of the opinions or forward- looking statements expressed in this report, consequent to any new information, future events or otherwise. Hereby, we at Shradha Infraprojects (Nagpur) Limited ("SINL") present our report for the financial year 2017-18.

The discussion following herein describes the Company, the industry and developments, the current business environment and the ability of the Company to avail opportunities, exhibit strength, handling of threats/weaknesses, financial performance, internal controls and other related issues.

ABOUT US

Founded in 1997, SINL has implemented and successfully executed many projects and created beautiful landmark edifices in and around Nagpur. The strength of Shradha Infra lies on a workforce who are strong, professionally equipped and technology driven intellectual minds ready to create great infrastructure of impeccable quality. SINLs foundation moves on the growth chart keeping in view various factors, such as patterns of key emerging markets in advanced economies, rising policy, geopolitical uncertainties, additional growth disappointments, and many more.

INDIAN ECONOMIC SCENARIO & OUTLOOK

Shradha Infraprojects (Nagpur) Limited (SINL), is a pioneer name in Central India delivering Eco-Friendly Engineering designs & construction services. We have a responsibility towards the society, so our projects are designed by taking extreme precaution keeping in mind the safety of the people. All our projects are synonym to the rich values and culture, along-with showcasing our legacy of innovation in delivering landmark projects. Every infrastructure project forms a foundation for us to dream bigger and create a more modern structure which helps us to make a positive presence in the construction industry.

YOUR COMPANYS MAJOR

STRENGTHS include:-

The Companies strength lies in its domain expertise, successful performance track record, sector leadership, ability to cover entire spectrum of services for providing end to end comprehensive Technical and Project Management services for infrastructure development.Your company now has strong order book. It is strategically exploiting the emerging opportunities. It has experienced sector experts with proven management track record. Your company has in place all operating systems, processes, documentations, software and hardwares sufficient for projects completion within tight scheduled time and matching the highest standards of quality.

OPPORTUNITIES include:-

Focus on infrastructure development provides enormous opportunities to the Company to expand its services in allied fields. The Company can leverage its technical capability and enhance shareholders value. Vast growth opportunities emerges for build-up of diverse portfolio of profitable contracts.

THREATS include:-

Competition of new entrants in business, scarcity of talent pool due to large demand, impediments for implementation of projects, availability of long term affordable finance have an impact on development of sector. These threats are offset by long term reforms in Policy, Plans and Regulatory regime to a large extent which are now taken by the Government and showing results.

RISKS & ITS MITIGATION

The Management of Company has identified risks in two categories i.e. (1) Internal and Business Risk and (2) External Risk.

Internal and Business Risks:-

These are the risks that arise out of processes which are managed internally.

(1) The successful completion of projects undertaken partially depends on the performance of our joint-venture partners and/or sub-contractors. Therefore, before entering into any such agreement, we thoroughly analyse their credentials and maintain track records of association with us. Irrespective of the partners and/or contractors status of association (old as well as new), we always insist on having a performance guarantee and quality assurance from our collaborators.

(2) The estimates of increase of raw materials for BOT projects are made at the time of bidding, since there is no provision for cost escalation. Hereby, our considerable experience in the infrastructural sector enables us to keep the associated risks to a minimum.

(3) With respect to risk of shortage in supply of raw materials, we ensure continuous supply of raw-materials by entering into long term arrangement with our suppliers before every single project.

(5) Non-maintenance or break-down of equipment cause a major hindrance in complete execution of projects. Therefore, our team of technical experts regularly overhaul and repair the machines, thereby minimising the chances of any break-downs. We also set up mechanical divisions at each project site, wherein the regular maintenance and interim repairs are undertaken.

(4) Any negligence in employees health, safety and regulatory measures can affect our performance. We, therefore, take the required precautionary measures for the same.

(5) Over the years, we have built a healthy relationship with our lenders which consolidate the difficulty in the process of obtaining debt for our business needs.

External Risks:-

Risks that arise out of changes in the external environment are classified under this head. These are mostly outside our control: for example, changes in interest and exchange rates, increase in material cost, and various others. Our efforts has always been in taking proactive measures to mitigate these by creating sufficient barriers in the pricing, making suitable provisions in books, and providing insurance cover upon entering derivative transaction for hedging our obligation in foreign currencies.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACIES

An internal control for business processes across departments is required to not only ensure efficient operations but to also comply with internal policies, applicable laws and regulations, protection of resources and assets as well as accurate reporting of the financial transactions. Aiding the effectively of this system of internal control is extensive internal audits, regular reviews by the management team and standard policies and guidelines to ensure the reliability of financial and all other records.

A Management Information System covers major operating parameters and is monitored regularly by the Board of Directors. Any material change in the business outlook is considered seriously by the Management. Material deviations from planning and budgeting are reviewed on a quarterly basis by the Board for corrective actions.

FINANCIAL OVERVIEW - STANDALONE

(a) Income Analysis

The Companys total revenues for the current year stood at Rs. 7,91,86,000 as against Rs. 37,26,39,500 in the previous year.

(b) Expense Analysis

Depreciation, Interest and Finance cost Depreciation during 2017-18 amounted to Rs. 1448809 as against Rs. 1622855 recorded in 2016-17. Finance cost increased from Rs. 33,276 in 2016-17 to Rs. 78,294 in 2017-18.

(c) Profit Analysis

EBT during 2017-18 stood at Rs. 4,30,13,686 as against Rs. 5,16,40,779 during 2016-17. Profit after tax for 2017-18 stood at Rs. 3,45,91,580 as compared to Rs. 4,49,55,138 during 2016-17.

(d) Net Worth

The company saw a rise in the Net worth from Rs. 33,94,67,502 in 2016-17 to Rs. 51,72,47,897 in 2017-18.

On consolidated basis,

The Companys total revenues stood at Rs. 106,712,626/- for the year ended 31st March, 2018 as compared to Rs. 390,601,500/- in the previous year, Other income is Rs. 28,341,369/- as against Rs. 34,849,950/- in the previous financial year ended 31st March, 2018. The Profit after tax (PAT) for the financial year ended 31st March 2018 is Rs. 38,294,318/- as against Profit of Rs. 45,642,713/- in the previous financial year ended 31st March 2017.

DEVELOPMENT OF HUMAN RESOURCE

Shradha Infraprojects (Nagpur) Limited (SINL), construct routes that connect the nation, but what constructs your Company is its people. Maximising their performance in service of SINLs strategic objectives, our employees have been our core strength to deepen the roots. Therefore, as recognition of their perseverance and endeavour, SINL bears the responsibility of their welfare providing them with many social amenities including Medical Expense, Provident Fund, Gratuity, and Leave Travel Allowance. A dedicated Human Resource team at SINL, at periodic intervals, continues to scout competitive talent and brace them in cohesion with the vision and mission of the Company. The potential of each employee is advanced and skills are honed due to the provision of right opportunities to grow. This includes regular in-house and external training along for knowledge and skill development. A value driven work environment with satisfaction and appreciation as well as professionalism has led us build an excellent team.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis reflects the perception on major issues that could influence the Companys operations substantial downside risks are as on date and the opinions expressed herewith are subjected to change without prior notice. The Company undertakes no obligation to publicly update or revise any of the opinions or forward- looking statements expressed in this report, consequent to any new information, future events or otherwise.

On behalf of the Board

For SHRADHA INFRAPROJECTS (NAGPUR) PRIVATE LIMITED

SUNIL RAISONI MRAGNA GUPTA
MANAGING DIRECTOR DIRECTOR
DIN: 00162965 DIN: 07587619
Address: 75, North Ambazari Road, Address: Flat No. 303, Venketesh Apartment, Salasar Vihar,
Shivaji Nagar, Nagpur 440010, Maharashtra, India New Deshpande Layout, Bhandewadi, Nagpur 440035,
Maharashtra, India
Place : Nagpur
Date : 3rd September, 2018