Rander Corporation Ltd Management Discussions

MACROECONOMIC OVERVIEW

After recovering from the COVID-19 pandemic by a successful vaccination drive on a world-wide scale, short lived Omicron wave and the Russia Ukraine war crisis, the resilience of global economy stood out by maneuvering the challenges in the financial year 2022-23. Although, the global economy is gradually recovering from the series of disruptions, according to the International Monetary Fund (IMF), the forecast of global growth is to fall from 3.4% in 2022 to 2.8% in 2023 and settling to 3.0% in 2024. Global inflation remained uncomfortably high at 8.7% in 2022, as against 4.7% a year ago with inflation overshooting the target in an overwhelming majority of countries. However, amidst the disruptions and the tightening of monetary policy, certain economies are expected to exhibit resilience. India’s economy registered a strong growth of 7.2% in 2022-23, the highest among major economies in the world, amidst a global turmoil following the war in Ukraine. As per IMF, India will alone contribute 15% of the global growth in 2023 driven by its demographic dividend, pent-up demand growth, digital infrastructure and commitment to fiscal consolidation.

The National Statistical Office ("NSO") has placed real GDP in the year 2022-23 is estimated to attain a level of Rs. 160.06 lakh crore, as against the First Revised Estimates of GDP for the year 2021-22 of Rs. 149.26 lakh crore. The growth in real GDP during 2022-23 is estimated at 7.2% as compared to 9.1% in 2021-22.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Company is engaged in Financing and Infrastructure Development business. In a year marked by volatility in global financial markets, the investors confidence has seriously impacted. In spite of such market conditions, the Company has achieved satisfactory growth during the year 2022-23. The Company now looks to expand its NBFC business where there is huge potential.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

OUTLOOK

In light of steady increase in population & development of outside Mumbai area, the Company is Cautiously Optimistic. About increase in demand for residential and commercial places and therefore Plans to venture in New Business Segments and therefore would strive to meet its Performance Targets And Increase Shareholders value. The Company is on an accelerated growth path. With a solid foundation and sound business strategy, the Company has embarked on the second phase of growth. It will continue to focus on timely completion of its projects which will further strengthen its cash flows.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an effective internal control environment which ensures that operations are managed efficiently and effectively, assets are safe guarded, regulatory requirements are complied with and transactions are recorded after appropriate authorizations. The Company’s strong and independent Internal Audit function performs regular audits. The internal controls are constantly upgraded based on internal audit recommendations. Every quarter, the significant audit findings, the corrective steps recommended and their implementation status are presented to the Audit Committee.

OPPORTUNITIES, RISKS, CONCERNS AND THREATS

In view of the legalized operation of the Company and limited alternatives to which the Company’s resources can be put to use, opportunities and threats cannot be quantified and enlisted in details. Since the Industry deals with the basic necessity of the people, the Company does not expect/foresee exceptional rise/fall in demand for residential and commercial places. Shortly, risk and concerns, if any, cannot be predicted with certainty. However, any adverse change in government policy and global economic changes can affect the performance of the Company.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATION FRONT

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. The Company makes efforts that employees are abreast of technological and technical developments. Industrial relations at all the units and locations are cordial. All employees, from a new joiner to a tenured one, are provided tailored learning opportunities as per their role, level, and specific focus area. Employees are equally treated and provided opportunities irrespective of gender, marital status, religion, race/caste, colour, age, ancestry, nationality, language, ethnic origin, socio-economic status, physical appearance, disability, sexual orientation, gender and expression.

FORWARD LOOKING AND CAUTIONARY STATEMENT

Statements in this report pertaining to the Company’s objectives, projections, estimates, exceptions and predictions are forward-looking statements subject to the applicable laws and regulations. These statements may be subject to certain risks and uncertainties. Important factors that could make a difference to the Company’s operations include changes in

Government regulations and tax regime, economic developments within India and abroad, financial markets, etc. The Company assumes no responsibility in respect of forward-looking statements that may be revised or modified in future on the basis of subsequent developments, information or events.

The financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014. The management of the Company has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect a true and fair manner, the state of affairs and profit / loss for the year. The narrative on our financial condition and result of operations should be read together with the notes to the financial statements included in the annual report.

Key Financial Ratios