SVS Ventures Ltd Management Discussions

REPORT ECONOMIC OVERVIEW:

Global Economy

• Global Growth and Inflation: Global GDP growth is projected to be modest, with forecasts around 3.1% for 2025, slightly down from 3.2% in 2024. The U.S. is expected to grow at 2.0%, the Eurozone at 1.1%, and China at 4.6%. Inflation is expected to moderate globally (4.4% in 2025 from 5.9% in 2024), but regional variations persist, with U.S. inflation potentially rising due to tariff policies (2.3% in 2025). Europe and Asia may see lower inflation, supporting monetary easing.

• Interest Rates: Central banks are adjusting policies. The U.S. Federal Reserve is expected to maintain rates around 3.875% by year-end 2025, with limited cuts due to inflation concerns. The European Central Bank (ECB) and Bank of England are likely to continue gradual rate reductions (ECB to 2.0%, BoE to 3.75%), creating a more favorable borrowing environment in Europe.

• Geopolitical and Trade Risks: U.S. tariff policies, including a temporary truce with China, introduce uncertainty. Tariffs could raise construction costs and impact occupier demand, particularly in trade- dependent economies like South Korea and China. Geopolitical tensions, such as those in South Korea and Europe, may dampen investor confidence.

(Source: https://www.aberdeeninvestments.com/en-is/institutional/insights-and-research/global-real-estate-market-outlook-q1-2025)

Summary of our Industry

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 office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects 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 a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13% to the countrys GDP by 2025. Increasing share of real estate in the GDP would be supported by increasing industrial activity, improving income level and urbanisation. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

The Government launched 10 key policies for the real estate sector:

• Real Estate Regulatory Act (RERA)

• Benami Transactions Act

• Boost to affordable housing construction

• Interest subsidy to home buyers

• Change in arbitration norms

• Service tax exemption

• Dividend Distribution Tax(DDT)exemption

• Goods and Services Tax(GST)

• De-monetisation

• PR for foreign investors

BUSINESS OPERATIONS:

Our Company was originally incorporated as Hetarth Software Solutions Private Limited on December 21, 2015 under the Companies Act, 2013 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently the name of the company was changed from Hetarth Software Solutions Private Limited to EPL Life Science Private Limited under the Companies Act, 2013 pursuant to a special resolution passed by our shareholders at the EGM held on December 02, 2021 and had obtained fresh certificate of incorporation dated December 07, 2021 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently the name of the company was changed from EPL Life Science Private Limited to SVS Ventures Private Limited under the Companies Act, 2013 pursuant to a special resolution passed by our shareholders at the EGM held on March 02, 2022 and had obtained fresh certificate of incorporation dated March 14, 2022 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Thereafter, Our Company was converted in to a public company pursuant to a special resolution passed by our shareholders at the EGM held on May 10, 2022 and consequently name was changed to SVS Ventures Limited vide fresh certificate of incorporation dated June 03, 2022 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli.

Our Company and the Erstwhile Proprietary Firm- M/s Vijay & Co. have been into the business of real estate since 2015 and 2014 years, respectively. Our Company and the Erstwhile Proprietary Firm are into the business of construction and real estate development, focused primarily on construction and development of residential and commercial projects, in and around Ahmedabad, Gujarat.

In this dynamic and extremely competitive business environment, Mr. Shashikant Vedprakash Sharma through his business acumen, strategically became the Director-Promoter of SVS Ventures Limited in 2021 and in April 2022, our company entered into a business takeover agreement dated April 26, 2022 with the Erstwhile Proprietary Firm- M/s Vijay & Co. of Mr. Shashikant Vedprakash Sharma. Since 2021, Mr. Shashikant Vedprakash Sharma has continued to hold his position in our Company as Promoter Director.

With this business takeover, our Company intends to develop versatile projects by focusing on innovative architecture, strong project execution and quality construction. These projects currently cater to and will continue catering to the middle income and high-income group. Currently, our business focuses on residential villas and apartment development projects. Our residential villas and apartments portfolio consists of various types of accommodation of varying sizes. Our residential buildings and villas are designed with a variety of amenities such as security systems, sports and recreational facilities, play areas and electricity back-up.

Presently, Our Company is promoted by Mr. Shashikant Vedprakash Sharma, who has over 10 years of experience respectively in the real estate sector. Our Company aims to grow in size from his rich experience, expert in-sight of the industry and expand its operations. Our Company is currently focusing on opportunities to build a brand in real estate sector.

SWOT ANALYSIS:

Strength

SVS Ventures, Is the fastest growing consulting company in Gujarat, We at SVS Ventures are very passionate about consulting in the Construction & Real estate. In the Past decade, the company has successfully launched residential & Commercial projects.

Best Market Analysis

Using the best market analysis technique, We are consulting small to large scale businesses to provide the maximum return.

More Than 1000 Clients Trusted

From the Last decade, we are serving in a variety of sectors and creating brand value with more than 1000 Trusted Clients.

Weakness

• Our business is heavily dependent on the performance of, and the prevailing conditions affecting, the real estate market in Ahmedabad and in India generally.

- The real estate market in Ahmedabad and in India generally may be affected by various factors outside our control, including, among others:

- prevailing local economic, income and demographic conditions;

- availability of consumer financing (interest rates and eligibility criteria for loans);

- availability of and demand for properties comparable to those we develop;

- changes in governmental policies relating to zoning and land use;

- changes in applicable regulatory schemes; and

- the cyclical nature of demand for and supply of real estate.

These factors may result in fluctuations in real estate prices and the availability of land, which may negatively affect the demand for and the value of our projects, and may result in delays to or the cancellation of our projects, the cancellation of sales bookings or the termination of lease agreements. During times of crisis, market sentiment may be adversely affected, buyers may become cautious, rentals of office space may face downward pressure and sales or collections could be adversely affected which may have a material adverse effect on our financial condition and results of operations.

• Our operations are subject to high working capital requirements. Our inability to maintain an optimal level of working capital required for our business may impact our operations adversely.

The results of operations of our business are dependent on our ability to effectively manage our inventory and trade receivables. To effectively manage our trade receivables, we must be able to accurately evaluate the credit worthiness of our customers and ensure that suitable terms and conditions are given to them in order to ensure our continued relationship with them. However, if our management fails to accurately evaluate the terms and conditions with our customers, it may lead to write-offs bad debts and/ or delay in recoveries which could lead to a liquidity crunch, thereby adversely affecting our business and results of operations. A liquidity crunch may also result in increased working capital borrowings and, consequently, higher finance cost which will adversely impact our profitability.

Our inability to maintain sufficient cash flow, credit facility and other sourcing of funding, in a timely manner, or at all, to meet the requirement of working capital or pay out debts, could adversely affect our financial condition and result of our operations. In the event we are not able to recover our dues from our trade receivables or sell our inventory, we may not be able to maintain our Sales level and thus adversely affecting our financial health.

Opportunities

• Digital and Energy Infrastructure: Data centers and energy infrastructure are high-yield opportunities driven by AI and energy transition. Investors need technical expertise and significant capital to navigate risks.

• Sustainability: Demand for LEED-certified buildings is rising, with 82% of consumers prioritizing sustainability. These properties command 21.4% higher rents.

• PropTech and Innovation: AI-powered platforms, smart building technologies, and metaverse real estate are transforming the industry, with over 24,000 patents filed globally.

• Tourism and Short-Term Rentals: A recovering tourism sector is boosting hospitality and short-term rental investments, particularly in Europe and Asia.

(Source: https://www.pwc.com/ax/en/industries/financial-services/real-estate/emeraina- trends-real-estate/etre-alobal-outlook.html)

Threats

The business is subjected to various risks and uncertainties and the Companys results of operations and financial conditions are affected by numerous factors including the following:

• General economic and demographic conditions;

• Regulation affecting the real estate industry;

• Fluctuations in foreign and Indian currency;

• Significant developments in Indias economic and fiscal policies;

• Our ability to meet our capital expenditure requirements;

• Fluctuations in market prices in the real estate sector and for the land that is being developed by our company;

• The demand and supply of land shall be affected by the nature and location of our projects, and other factors such as our brand and reputation and the design of the projects;

• Availability of consumer financing (interest rates and eligibility criteria for loans);

• Competition from other real estate developers operating in the markets in India in which it operates. Some of these firms have greater resources and/or a more widely recognised brand than we have, which may give them a competitive advantage. Our ability to grow revenues will depend on demand for our products and services in preference to those of its competitors;

• Changes in governmental policies relating to zoning and land use;

• Any increase in prices resulting from higher construction costs could adversely affect our profit margins, demand for our projects and the relative affordability of our projects as compared to our competitors products;

• Fluctuations and/ or increase in the cost of land and development rights, our cost of construction/development comprises primarily the cost of raw materials (in particular cement and steel), contractors, architects and other consultants, construction materials and finishings amongst others could affect our revenues;

• Our ability to raise additional finance and working capital or borrowings as per the requirement. In case of failure, there shall be adverse impact on our results of operations, planned capital expenditures and cash flows. Our profits will also be impacted by interest rate variation.

• Any delay in the recovery of outstanding receivables, may affect our results of operation, as we may then have to resort to increased borrowings for our working capital requirements, which may further exert pressure on outgo towards interest thereby reducing our profits.

• Our ability to obtain the necessary licenses in timely manner.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place proper system of internal control which is commensurate with size and nature of business. The Company has an Audit Committee headed by the Independent Director, inter-alia, to oversee companys reporting process, disclosure of information.

FINANCIAL POSITION AND RESULTS OF OPERATIONS:

The Company has robust growth and improvement in top line and bottom line on Standalone basis in the Current and previous financial years which is explained below:

(Rs. in lakh)

PARTICULARS	STANDALONE - FINANCIAL STATEMENTS-YEAR ENDED MARCH 31, 2025	STANDALONE - FINANCIAL STATEMENTS-YEAR ENDED MARCH 31, 2024
Revenue from Operations	Nil	143.23
Other Income	8.81	6.00
Total Revenue	8.81	149.23
Profit / (Loss) before exceptional and extra-ordinary Items and tax	9.81	11.65
Add/(Less): Extra-Ordinary Item	Nil	NIL
Profit / (Loss) after Extra Ordinary Items and before tax	9.81	11.65
Tax Expense:
A) Current Income Tax	2.25	3.33
B) Deferred Tax (Assets)/Liabilities	Nil	NIL
Profit / (Loss) After Tax	7.56	8.32

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company considers employees as its vital and most valuable assets. Your Company considers manpower as its assets and understands that people have been driving force for growth and expansion of the Company. As on March 31, 2025, there were 9 permanent employees employed by the Company. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

KEY FINANCIAL RATIOS:

SN	Ratio	As at March 31, 2025	As at March 31, 2024	% Change	Reason for variation
1	Current Ratio	71.19	16.01	344.52%	Due to higher payments of liability
2	Debt-Equity Ratio	0.00	0.00	-70.59%	Due to liabilities paid off
3	Debt Service Coverage Ratio	NA	NA	NA	-
4	Return on Equity Ratio	0.04	0.04	-9.08%	-
5	Inventory turnover ratio	-0.106	0.273	-138.95%	Due to Change in Purchase & Inventories
6	Trade Receivables turnover ratio	-	0.474	-100.00%	Due to Decrease in Revenue
7	Trade payables turnover ratio	0.029	1.244	-97.69%	Due to Change in Purchase & Trade Payables
8	Net capital turnover ratio	-	0.06	-100.00%	Due to Decrease in Revenue
9	Net profit ratio	-	0.06	-100.00%	Due to Decrease in Revenue

CAUTIONARY STATEMENT:

The content in this Management Discussion and Analysis may contain Forward Looking Statements including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward- looking statements to reflect future/ likely events or circumstances.

For and on behalf of Board of Directors
SVS VENTURES LIMITED
Sd/-	Sd/-
Shashikant Sharma	Sunny Sharma
Managing Director	Non-Executive Director
(DIN:06628349)	(DIN: 09480894)