Raghava Estates & Properties Ltd Management Discussions

Over view:

The financial statements have been prepared in compliance with the requirements of the provisions of the Companies Act, 2013 and Generally Accepted Accounting Principles (GAAP) in India. The estimates and judgments relating to the financial statements have been on a prudent and reasonable basis, in order that the statements reflect, in a true and fair manner, the state of affairs and profits for the year. This report may also contain certain statements that the company believes are or may be considered to be ‘Forward Looking Statements which are subject to certain risks and uncertainties.

Construction Industry

India by population stood in second place in the World. India has a vast land and natural resources but they are not utilizing proportionately. Each and every common man wanted primary needs such as food, shelter & clothes. The Indian Real Estate sector after being on a high for almost three years is witnessing a slight correction throughout the country. Growth over these last three years was characterized by strong economic fundamentals, increasing purchase capacity of the investors, leading to rise in demand which in turn, led to increase in supply by developers who wanted to capitalize on the opportunity.

The company feels that the fundaments will remain positive in 2016 and prices may moderate in the markets, however, the property market may witness a slowdown with some moderate correction which will vary from region to region. The demand-supply gap is anticipated to be much closer this year. The company expects that developers will be reluctant to reduce prices and may indulge in adding sweeteners to their deals rather than engaging in direct reduction in prices. The companys main aspect is to provide shelter within the affordable price and quality construction.

Company Infrastructure:

Your company operates from its Registered Office at Vijayawada. The companys site offices are at (1) Poranki, Penamaluru Mandal, Krishna district about 6 KM from the registered office at Vijayawada and (2) Edupugallu Village, Krishna district about 9 Kms from the Registered Office at Vijayawada.

Internal Control Systems:

The Company has an effective internal control system in place and this is continually reviewed for effectiveness and is amplified by written policies and guidelines. The companys overall system of internal control is adequate given the size and nature of operations and effective implementation of internal control procedures.

The internal control system of the company is subject matter of Audit Committees periodical review and suggestions and recommendations, if any, made by the committee will be carried out.

OPPORTUNITIES AND THREATS

With the tax exemptions offered by the Government and ample services of the private and public financial institutions, Geographical area of city limits are expanding vastly by mobilization of the people from one place to another for getting employment, which results the more opportunities for the company.

In rare occasions, uncertainty of land and material costs, chronic deviations in getting of land acquisition permits from the competent authorities.

Risks and concerns:

The Companys Current and Fixed assets are adequately insured against various risks. The Company constantly strives to adequately protect itself from various business risks and concerns and takes appropriate measures to address the same.

Discussion on financial performance with respect to the Operational Performance:

During the year under review the company has achieved a turnover of Rs.1301.50 Lakhs as against Rs.1097.37 Lakhs in the previous year.

During the year the company earned Loss of Rs.138.49 lakhs as against a profit of Rs.2.06 lakhs in the previous year.

Inventories:

Major items of inventories as on March 31,2017 are as under in Rs.

Segment wise performance

The segment wise performance is not applicable as the company has only one segment Cautionary Statement

Statements in Management Discussion and Analysis describing the Company objectives, projections, estimates and expectation may be "forward looking" within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied in the statement.

Material developments in Human resources / Industrial Relation front, including number people employed

The focus is on capability development, performance management and employee engagement. This is expected to improve cost competitiveness through greater levels of employee participation, commitment and involvement.

The Company recognizes the importance and contribution of its employees to the growth and development of the Company. The Company continued to maintain cordial relations with employees and staff.