Skyline Millars Ltd Management Discussions

Management Discussion and Analysis

Ghatkopar Project: The operations at Skyline Millars Ltd (SML) continue to be severely impacted as we have not yet received the necessary clearances for the stalled project at Ghatkopar. The matter is with the Honble Supreme Court and its order is awaited.

Our project at Ghatkopar is key to the future of SML. We still continue to remain hopeful that a favourable decision shall come in the near future.

Karjat Project: SML has completed three (3) wings of the Project. We have started the construction of the "F" Wing.

Wada: SML has decided to divest its land at Wada. The Company is in an advanced stage of finalising the sale has of the Wada property.

Operations at Skyline Millars Ltd.

The revenue from Sales and Other Income for the year under question was Rs. 268.64 lacs against Rs. 46.35 lacs in the previous year. The Loss from ongoing operations was Rs. (19.45) lacs as against a Loss of Rs.(95.01) lacs in the previous year.

SML has sold approximately 3606.14 sqm of office space at Ghatkopar. There is a potential to construct further 3233.84 sq m, subject to approvals as noted above.

The Company is focusing construction further wings and sell of property at Karjat. Also, all efforts are being made for sale of land at Wada and regulatory approvals for the pending project at Ghatkopar.

Outlook opportunity and threats

With the revival of the realty market, the future prospects for real estate industry remain positive. There is growing buyer interest across all segments of the market. SML is awaiting approvals for the Ghatkopar project which shall bring significantly enhanced revenue and profits.

However, buyer sentiment has been impacted due to higher interest rates. Another area of concern is the speed of approvals by the regulatory authorities. As we have mentioned before that the real estate industry remains the highest employment generator in the country. Self owned house property is the biggest dream of a family and all actions must be geared to facilitate the developers to meet this aspiration. The same is also for commercial properties. We expect that in the coming years there will be greater focus on speedy clearances of proposals.

Risks and concerns

The Company has built in procedures and practices to effectively handle and mitigate the adverse effect of business risks. A Risk Management Policy is in place and procedures are laid down to handle risks while carrying out the business and operations of the Company to the best advantage of all stakeholders, so as to ensure continuity of business and improve shareholder value. However, it is practically not possible to thwart all the risks and the Company has to absorb the impact of some of the risks in either the form of additional cost or losses for the same.

Internal Control Systems and their Adequacy

SML has in place proper and adequate system of internal controls. All assets of the Company are adequately safe guarded and protected against loss or unauthorized use or disposal. It is ensured that all commercial transactions are duly authorized, recorded and reported correctly. The internal control systems are robust and are supplemented by extensive internal audits and periodic review by the management. The system is designed to adequately ensure that financial and other records are reliable for presenting financial information and other data including maintenance of fixed assets. The audit committee reviews observations and recommendations contained in the Internal Audit Reports during its periodic meetings wherein the internal auditors also participate during the discussion.

Discussion on Financial Performance including segment-wise business performance

The financial performance including segment-wise business performance of the Company has been detailed in the Directors Report and the Financial statement for the year ended 31st March, 2025.

Material Development in Human Resources /Industrial relations

The organizational structure at SML is continuously evolving so as to effectively meet the business challenges. There is ever a constant effort to follow good human resource practices. The Company strives to create a working environment which is motivating and challenging to all employees so that they can realize their full potential. Individuals are encouraged to think differently and innovate with new ideas while meeting the goals of the Company. The Company strongly believes that the quality and motivation and dedication of its employees is its strongest assets.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

i. Current Ratio- Due to Decrease in Current Liability, Current Ratio of SML has moved from 16.44 to 43.25.

Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof.

Due to Sale of Flats at F wing and Sale of Delhi office, there is significant change in Return on Net Worth from (0.25%) to (0.06%).

Disclosure of Accounting Treatment

The Company has followed the prescribed Accounting Standard in preparation of Financial Statement.

Cautionary Statement

This discussion and analysis contain forward looking statements that reflects our current views with respect to future events and financial performance. Our actual results may differ materially from those anticipated in the forward looking statements on account of many uncontrollable factors.

For and on behalf of the Board of Directors

Skyline Millars Limited

Ashok Pillai

Chairman

DIN: 00167849

Date: 08th May, 2025

Place: Mumbai