Vipul Ltd Management Discussions.


The Indian economy continued to exhibit steady growth and remained among the fastest growing emerging economies, with a focus on the continued implementation of structural and financial sector reforms and efforts to reduce public debt. The benefits of recent structural reforms like demonetization, GST and ongoing bank recapitalization would enhance economic stability.

Global economic activity lost pace in FY19, reflecting a further slowdown in global trade and manufacturing activity. Turning to the domestic economy, GDP growth for 2018-19 has been estimated at 6.8%. Gross fixed capital formation growth has declined sharply to 3.6%, after having been previously in the double- digits. Private consumption growth has remained moderate. However, the overall slowdown in growth was cushioned by a large increase in the governments final consumption expenditure.

Reserve Bank of India has estimated GDP growth for 2019-20 at 7% - in the range of 6.4-6.7% in the first half of the fiscal and 7.2-7.5% in the second half of the fiscal.

The Indian real estate sector is expected to contribute 13 percent to the countrys gross domestic product (GDP) by 2025, according to the ‘Indian Real Estate and Construction: Consolidating for growth report by National Real Estate Development Council (NAREDCO) and Asia Pacific Real Estate Association (APREA). Apart from its contribution to Indias GDP, the growth of this sector holds significance employer, after agriculture and manufacturing, in the country and presently employs over 50 million people. Even though the overall business sentiment in 2018 turned positive owing to the current governments focus on affordable housing, regulatory reforms, and infrastructure status to warehousing, there are challenges that continue to exist.

Out of the four corner stones -- housing, commercial spaces, hospitality and retail -- housing sector has been on a roller coaster ride for nearly a decade now. Various reasons such as huge land acquisition costs, lack of clear title, high lending interest rate, liquidity crisis, absence of a matured market, fly-by-night developers, red-tapism, etc. are seen to be the major contributing factors. While one cannot expect a sea change within a short span of time, however, there is a lot to expect from the 2nd term of a stable government in the Centre. New reforms can be expected from this government in the upcoming budget to give a fresh lease of life to the Indian reality ecosystem.


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 per cent of the countrys GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Commercial office stock in India is expected to cross 600 million square feet by 2018 end while office space leasing in the top eight cities is expected to cross 100 million square feet during 2018-20. Coworking space across top seven cities has increased sharply in 2018 (up to September), reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2017.

Between 2009-18, Indian real estate sector attracted institutional investments worth US$ 30 billion. Private Equity and Venture Capital investments in the sector reached US$ 4.47 billion in 2018 and US$ 546 million in Jan-Feb 2019.

The Indian real estate sector witnessed a slew of structural transformations led by Real Estate (Regulation and Development) Act, 2016 (RERA), Demonetization and GST. In the near-term, these measures generated sectoral tailwinds, which are expected to increase transparency and confidence in the sector.


Promoters and senior management continues to put efforts to focus on Project Planning and Execution for delivering present-day design and quality construction.

The Project management team comprises of experienced, highly qualified experts with vast experience in their functional areas. The team drives the organization through their contribution. The organizational framework has been designed to manage the design, engineering, procurement and execution of concurrent, multi-site projects keeping a focus on delivery of developments of International standards.


The growth opportunity in the Real Estate Sector is far from over. It will continue to play out over the medium term. Large number of unorganized players have exited the market leaving more opportunities for the serious players

Further, the opening up of FDI in the real estate sector has certainly revived the overall development troposphere.

This has played a significant role, especially, in the development of commercial assets. The FDI inflow to the sector in the calendar year 2017-18 stood at $1.2 billion.

THREAT: Even as the demand in the Real Estate Sector is increasing gradually, the squeezed financial scenario and NBFC issue has let to major liquidity challenges and increased borrowing costs.

Huge inventory pile up and delayed projects have affected the confidence of residential enduse customers as well as the investor community.


Vipuls risk management approach focuses on mitigating the adverse impact of external risks on its business objectives. The framework comprises a combination of centrally issued policies and divisionally-evolved procedures that are regularly reviewed for their alignment with sectoral dynamics and evolving trends.

The Company has a Risk Management Committee which is entrusted with the responsibility of establishing polices to monitor and evaluate the risk management systems of the Company.

The Company aims at continuous improvement of the processes which inter-alia include, reporting methodology of of third party thelegalmatters, efficient lawyers, standardization of key documents and strengthening internal guidelines and processes on documentation, legal matters and their reporting.


The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested and verified by Statutory as well as Internal Auditors.

The internal control is supplemented by extensive programme of internal audits, review by Audit Committee and Board of the Company. The system has been designed to ensure that financial and other records are reliable for preparing financial information and for maintaining accountability of assets. All financial and audit control systems are also reviewed by the Audit Committee of the Board of Directors of the Company. observations, if any and follow up actions thereon are reported to the Audit Committee.Significant

Further to maintain its objectives and independence, the Internal Auditors reports to the Chairman of the Audit Committee.


You Company continues to focus its business strategy on its core markets; reduce debt and improve the quality of debt; rationalize costs and capital expenditure.

Your Company continues to focus on delivering and completing projects in a timely manner with complete focus on quality.

Here are some key facts for FY 2019 as compared to FY 2018:

(Rs in Lakhs)
Particular Financial Year Ended 31.03.2019 Financial Year Ended 31.03.2018
Revenue from operations 21,566.97 26,916.34
Other Income 489.54 723.40
Total Income 22,056.51 27,639.74
Total Expenses 21,904.26 27,075.42
Profit /(Loss) before Tax 152.25 564.32
Less: Tax Expense:
(i) Current Year 141.86 682.67
(ii) Deferred tax (132.65) (386.55)
Profit / (Loss)of the year 143.04 250.20
Other Comprehensive Income
A. (i) Items that will not be reclassified to profit or loss (41.75) 15.87
(ii) Income tax relating to items that will not be reclassified to profit or loss (14.59) (5.49)
B. (i) Items that will be reclassified to profit or loss - -
(ii) lncome tax relating to items that will be reclassified to profit or loss - -
Total Comprehensive Income 115.88 271.56


Vipul firmly believes that its intellectual capital plays a fundamental role in sustaining profitable business growth.

In keeping with this conviction, the Company continues to invest in dedicated programs for its people to nurture skill and build capabilities that will help them in addressing current and future business needs. The focus of human resource function is not only to improve employee productivity, skill sets and knowledge but also to improve employee empowerment and welfare. All the process and policies of Human Resources function are tuned to support the overall business needs, people strategy and organization goals.

The above ensures that a pool of ably skilled workforce is available to the company to choose from. Before becoming a member of Vipul family, he or she goes through a stringent evaluation process that resonates well with Vipuls work culture.

As on March 31, 2019, the total strength of your Companys employees stood at 162.


The significant key financial ratio of the Company, which are more than 25% as compared to the previous year are as given below

SI. No. Particulars FY 2018-19 FY 2017-18 Change (%) Explanations
1. Debtors Turnover 0.66 1.10 (39.63) Due to decline in
2. Inventory Turnover 0.29 0.45 (35.96) Sales


Statements in this report on Management Discussions and Analysis describing the Companys objectives, estimates and expectations may be forward looking statements based on certain assumptions and expectations of future events. Actual results might differ substantially or materially from those expressed or implied. The Company assumes no responsibility nor is under any obligation to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events. This report should be read in conjunction with the financial statements included herein and the notes thereto.

For & on behalf of the Board of Vipul Limited
sd/- sd/-
Punit Beriwala Vikram Vasheshar Kochhar
Managing Director Director
Place: Gurugram 00231682 03098195
Date: August 12, 2019