Ravinder Heights Ltd Management Discussions

1. Industry Structure and developments:

India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

A number of sectors in India - real estate, steel, cement, home building products and consumer durables, among others - reported unprecedented growth. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

The growth in GDP during 2021-22 is estimated at 8.9 percent as compared to a contraction of 6.6 percent in 2020-21 as per NSO (The National Statistical Office). Prices in the year 2021-22 is estimated to attain a level of 147.72 lakh Crores, as against the First Revised Estimate of GDP for the year 2020-21 of 135.58 lakh Crores, released on 31.01.2022.

As per IMFs latest World Economic Outlook projections, Indias real GDP projected to grow at 9 percent in 2021-22 and 2022- 23 and at 7.1 percent in 2023-2024, which would make India the fastest growing major economy in the world for all 3 years.

Indias foreign exchange reserves declined by 28.05 billion in second half of FY22 and stood at $540.72 billion as of March 12, 2022, according to data from RBI. Indias GDP which contracted in the past years has recovered in 2021-22. This recovery - one of the most decisive among major economies - validated Indias long-term consumption potential.

Indian real estate sector has witnessed high growth in the recent times with rise in demand for office as well as residential spaces. Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies.

The residential sector is expected to grow significantly, with the central government aiming to build 20 million affordable houses in urban areas across the country by 2022, under the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Flousing and Urban Affairs. Expected growth in the number of housing units in urban areas will increase the demand for commercial and retail office space.

2. Opportunities and Threats

(a) Opportunities

Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2025, it will contribute 13 per cent to countrys GDP. Emergence of nuclear families, rapid urbanization and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial, and retail. Rapid urbanization in the country is pushing the growth of real estate. Indian real estate developers have shifted gears and accepted fresh challenges.

(b) Threats

Indian real estate sector accounts for 13 per cent of the countrys Gross Domestic Product and is one of the biggest and globally recognized sectors. The Indian real estate sector is still dependent on old building techniques and hence they are over-dependent on extensive human labour for construction activities. Whereas, high-quality building materials such as concrete and iron slabs are used in new construction techniques. India is touted to be the most populous country by the year 2050. More than 50 per cent of people are urban centers and Tier 1 cities. To accommodate the population, India would require more new cities and urban centers on a mass scale in order to provide the required resources to the inhabitants.

3. Segment-wise or product-wise performance

The Company operates in one segment only i.e. Real Estate. The highlights of the Companys performance (Standalone) during the Financial Year 2021-22 are as under:

Revenue from operations was Rs. 141.16 Lakhs. Loss before tax has been decreased from Rs. 70.32 lakhs to Rs. 28.43 Lakhs. The Management looks the future with optimism and hopes to do better in times to come.

4. Outlook

The Indian economy is projected to grow by more than 6% in Financial Year 2023 as per various institutional estimates, making it one of the fastest-growing economies. Indias growth journey could be the result of a culmination of favourable tailwinds like consistent agricultural performance, flattening of the COVID-19 infection curve, increase in government spending, reforms and an efficient roll-out of the vaccine, among others.

5. Risks and concerns.

Through land regulations, land readjustment and land pooling policies, the Government should spare large shares of underutilized and vacant land parcels. By this, it will give some relief to the financially aggrieved developers and help the situation of the real estate sector improve. This calls for an urgent change or revision in the Land Acquisition Resettlement and Rehabilitation Act of 2013. There are a lot of impending projects in the Indian real estate market starting from public sector projects to private sector housing colonies. There is a delay happening in the completion of these projects and the reason for this is that the project does not get enough funding or there is a lack of technology to complete these projects on time. Another big challenge in the Indian real estate sector is the protracted approval process because project approvals in India take about days to years because there is no option of a single-window clearance and it often results in time and cost escalations.

6. Internal control systems and their adequacy

The Company has a proper and adequate system of internal financial controls, commensurate with its size and business operation. It ensures timely and accurate financial reporting in accordance with applicable accounting standards, safeguarding of assets against unauthorized use or disposition and compliance with all applicable regulatory laws and Company policies.

Internal Auditors of the Company review the internal financial control systems on a regular basis for its effectiveness, and necessary changes and suggestions are duly incorporated into the system. Internal audit reports are also reviewed by the Audit Committee of the Board.

7. Discussion on financial performance with respect to operational performance

The details of the financial performance of the Company are reflected in the Balance Sheet, Statement of Profit & Loss and other Financial Statements appearing separately. Highlights are provided below:

Particulars	2021 - 22	2020 - 21
Total Income	143.53	111.69
Profit Before Tax	(28.43)	(70.32)

The financial performance of the Company has been further explained in the Boards Report of the Company for the Financial Year 2021-22 appearing separately. The financial statements have been prepared in accordance with the requirement of the Act and applicable accounting standards issued by the Institute of Chartered Accountant of India.

8. Human Resources/ Industrial Relations

The timely availability of skilled and technical personnel is one of the key challenges. The Company maintains healthy and motivating work environment through various measures. This has helped the Company to recruit and retain skilled work force which would result in timely completion of the projects. The Company has cordial relation with the employees. The staff has the depth of experience and skills to handle companys activities. Skilled team of workers and other professionals ensure superior quality standards during every stage of work. As on March 31, 2022, there were 4 employees on the roll of the company.

9. Details of Ratios

Significant changes vis-a vis immediately preceding financial year were reported in the following ratios:

S. No. Particulars	2021-22	2020-21	Change in %	Reasons of Variance
i. Current Ratio	1.46:1	0.87:1	68%	Due to decrease in current liabilities
ii. Operating Profit (%)	-19.83	-63.68	-69%	Due to increase in Tax expense
iii. Return on Net Worth (%)	-0.045	-0.035	28%	Due to increase in Loss

10. Cautionary Statement

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation etc.

In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company.