Supreme Holdings & Hospitality Ltd Management Discussions

A. Industry Structure and Development:

At the beginning of the _iscal year, global economic conditions remained challenging, shaped by persistent in_lationary pressures and heightened geopolitical tensions. Although in lation rates began to ease, they remained above target in several major economies, raising concerns about potential policy rate adjustments that could restrain global growth. The ongoing Israel-Palestine con lict, compounded by the prolonged Russia-Ukraine war, continued to weigh on global trade recovery and supply chains, creating a complex and volatile operating environment.

Despite these headwinds, central banks including the Reserve Bank of India largely held interest rates steady throughout the year, signaling a more cautious and calibrated approach after a period of aggressive monetary tightening in the previous _iscal year. This pause allowed markets and businesses to gradually adapt to the elevated interest rate regime.

Geopolitical uncertainties remain pronounced. Escalating tensions in the Middle East and continued instability in Eastern Europe pose risks to global in lation and growth. Additionally, 2024 is a pivotal year politically, with elections taking place across several major economies, including the United States. While India concluded its general elections with a renewed mandate for continuity, the outcomes in other key nations have the potential to signi icantly reshape global policy directions and economic dynamics.

According to the International Monetary Fund (IMF), the global economy grew by 3.1% in calendar year 2023, surpassing earlier expectations of 2.8%. The IMF forecasts a steady global GDP growth rate of 3.2% for both 2024 and 2025, indicating cautious optimism amid a still uncertain global environment.

B. Companys Performance:

The revenue from real estate activity is recognised in accordance with the "Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable)" issued by the Institute of Chartered Accountants of India (ICAI), and accordingly the income from operations during the _inancial year 2024-25 has been reported at Rs 66,22,92,751/- as compared to Rs. 71,70,97,977/- in the previous year. The total Income for the year 2024-25 was at Rs. 69,39,77,642 /- as compared to Rs. 76,82,15,804/- in the previous year.

During the _inancial year under review, the cost of sales and other operational expenses were at Rs. 48,57,88,261/- as against Rs. 57,36,29,156/- in the previous year. The employees cost during the inancial year 2024-25 was at Rs. 2,07,46,450/- as compared to Rs. 2,73,93,078/- in the previous year. The Finance cost for the year 2024-25 was at Rs. 97,030/- as against Rs. 5,63,549/- in the previous year. The Depreciation and amortization expenses and other expenses were at Rs. 36,99,980/- as compared to Rs. 36,63,955/- in the previous year.

The Pro it for the year 2024-25 before taxation was at Rs. 13,70,29,859/- as against Rs. 11,21,56,726/- in the previous year. After providing for taxation, including deferred tax, the Company has reported Pro it of Rs. 10,39,88,750/- during the _inancial year 2024-25 as against Rs. 7,50,43,619/- in the previous year.

C. Segment wise Performance:

As Company had only one reportable segment during the _inancial year, disclosure under Ind-AS 108 on segment reporting is not applicable to the Company.

D. Outlook for the Company:

The companys ambitions to expand its presence in the real estate industry are signifiicant. It is actively seeking opportunities in the Panvel region, with the goal of developing large-scale townships in the future. Simultaneously, the company is exploring strategic joint ventures in the dynamic Pune market to support its growth trajectory.

Meanwhile, the Mumbai Metropolitan Region (MMR) is undergoing a major infrastructure transformation. Projects such as the new international airport, an upgraded road network including the coastal road, and expanding metro connectivity are set to signi icantly enhance the regions accessibility. These developments are poised to reinforce MMRs status as a key economic hub, attracting both investment and talent. As a result, the housing market in MMR is expected to see substantial growth, opening new avenues for development. In line with these trends, the company is also actively exploring options that promote sustainable growth and ensure a promising, steady future. By focusing on long-term value creation and resilience, it aims to maintain stability in an otherwise vibrant and fast-evolving real estate market.

E. Opportunities, Threats, Risk and Concerns:

The demand for homes has signi icantly increased as a result of a number of factors, including economic growth, rising income levels, and the belief that housing prices are stabilizing. Potential buyers who had been hesitant to enter the market are now doing so as _irst-time homeowners or as experienced homeowners seeking for greater areas, which is a clear indication of this trend. The trend toward remote and hybrid work patterns is also having an impact on peoples desire for larger living spaces.

Here are some of the key risks faced by the Company:

Unforeseen Risk:

Unforeseen risks such as global economic uncertainties, including geopolitical tensions and supply chain disruptions, can impact real estate markets. Economic slowdowns or recessions can lead to decreased demand and lower property values. Despite such hurdles, our robust business model remains _irm towards enhancing business sustainability.

Contractual Risk:

Real estate contracts frequently include contingencies like deliverables, inspection etc. Under these circumstances, many contracts entitle the contractors to a time extension. Right contractual provisions should be incorporated in case of unforeseeable risks to prevent business losses.

Manpower Risk:

Its critical to recruit and retain quali ied workers in light of the growing competition. Experienced employees may be poached as a result of new competitors in the industry taking an aggressive stance

Human Resource Management Risk:

Employee-Centric Approach: The companys employees are its greatest asset and help it achieve its greater business goals. Their tenacity and commitment to the business are much valued and acknowledged. The company wants to improve talent development and create a more positive work environment. Our goal is to support our sta members professional development. Consumer-Centric Approach: Leading the charge in advancing consumer interests is the Real Estate (Regulation and Development) Act (RERA). It emphasizes on handling customer complaints and making sure that concerns are promptly resolved, fostering a climate that is open and accountable to homebuyers.

F. Internal Control Systems and their Adequacy:

The Company has adequate internal control system running throughout the organisation. Internal processes of the Company commensurate with our nature of business. The Company has appointed Internal Auditor who audits the adequacy and effectiveness of the internal control system as laid down by the management and suggests improvements as required. The Audit Committee periodically reviews the audit plans, internal audit reports and adequacy of internal controls.

G. Discussion on _inancial performance with respect to operational performance:

During the year under review, the Company recorded revenue of 66,22,92,751, compared to 71,70,97,977 in FY

2023 24. The decline in revenue refilects the natural variation in the project lifecycle, with fewer projects reaching the revenue recognition stage during the year.

Despite a decline in revenue, the Company achieved improved pro itability during the _inancial year 2024 25. Pro_it before tax stood at 13,70,29,859, compared to 11,21,56,726 in the previous year. After accounting for taxation, including deferred tax, the Company reported a net pro_it of 10,39,88,750 for FY 2024 25, as against 7,50,43,619 in FY 2023 24. This improvement refilects effective cost management and operational ef iciency across the business.

H. Material developments in Human Resources/ Industrial Relations front including number of employees:

Industrial relations with employees remained cordial during the year. Your Company recognizes that its committed and talented workforce is the key factor in driving sustainable performance and growth. As one of the most critical assets of the Company, its people are responsible for its competitive advantage. Your Company is committed to recruiting and retaining the most relevant and best industry talent. The total number of permanent employees working as on 31 March, 2025 was 19.

I. Comparative analysis of Financial ratios and signi icant Changes therein as on 31 March, 2025.

Details of any change in Return on Net Worth as compared to the immediately previous _inancial year along with a detailed explanation thereof:

Due to increase in net pro it, the Return on Net worth of the Company has increased to 1.84% for _inancial year 2024-25 as compared to 1.38% for _inancial year 2023-24.

For and on behalf of the Board
	Sd/-
	Vidip Jatia
Place: Pune	Chairman & Managing Director
Date: 21 August, 2025	(DIN 06720329)