SVS Ventures Ltd Management Discussions

ECONOMIC OVERVIEW:

Summary of our Industry

Real estate sector is one of the most globally recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

Market Size

By 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. 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% to the countrys GDP by 2025. Increasing share of real estate in the GDP would be supported by increasing industrial activity, improving income level and urbanisation. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

As per ICRA estimates, Indian firms are expected to raise >Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth US$ 29 billion to date.

The office market in top eight cities recorded transactions of 22.2 msf from July 2020 to December 2020, whereas new completions were recorded at 17.2 msf in the same period. In terms of share of sectoral occupiers, Information Technology (IT/ITeS) sector dominated with a 41% share in second half of 2020, followed by BSFI and Manufacturing sectors with 16% each, while Other Services and Co-working sectors recorded 17% and 10%, respectively.

The Government launched 10 key policies for the real estate sector:

• Real Estate Regulatory Act(RERA)

• Benami Transactions Act

• Boost to affordable housing construction

• Interest subsidy to home buyers

• Change in arbitration norms

• Service tax exemption

• Dividend Distribution Tax(DDT)exemption

• Goods and Services Tax(GST)

• De-monetisation

• PR for foreign investors

Investments/ Developments

Indian real estate sector has witnessed high growth in the recent times with rise in demand for office as well as residential spaces. According to Colliers India, a property consultant, institutional investments in the Indian real estate sector are expected to increase by 4% to reach Rs. 36,500 crore (US$ 5 billion) in 2021, driven by rising interest of investors towards capturing attractive valuations amid the pandemic. According to a recent report by Colliers India, private equity investments in Indian real estate reached US$ 2.9 billion in the first half of 2021, which was a >2x increase from the first half in 2020.

Exports from SEZs reached Rs. 7.96 lakh crore (US$ 113.0 billion) in FY20 and grew ~13.6% from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19. In July 2021, the Securities and Exchange Board of India lowered the minimum application value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 - US$ 205.59) to make the market more accessible to small and retail investors.

According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction is the third-largest sector in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at US$ 50.8 billion between April 2000 and March 2021.

Government policies are helping the real estate sector prosper

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. Below are some of the other major Government initiatives:

• Under Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2069.89) on interest on housing loan, and tax holiday for affordable housing projects have been extended until the end of fiscal 2021-22.

• The Atmanirbhar Bharat 3.0 package announced by Finance Minister Mrs. Nirmala Sitharaman in November 2020 included income tax relief measures for real estate developers and homebuyers for primary purchase/sale of residential units of value (up to Rs. 2 crore (US$ 271,450.60) from November 12, 2020 to June 30, 2021).

• In October 2020, the Ministry of Housing and Urban Affairs (MoHUA) launched an affordable rental housing complex portal.

• On October 27, 2020, the government announced the application of Real Estate (Regulation & Development) Act, 2016 in the union territory of Jammu & Kashmir. This has paved the way for any Indian citizen to buy non-agricultural land and property, as opposed to the eligibility of only local residents earlier.

• In order to revive around 1,600 stalled housing projects across top cities in the country, the Union Cabinet has approved the setting up of Rs. 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF).

• Government has created an Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/financial institutions for micro financing of the HFCs.

• As of January 31, 2021, India formally approved 425 SEZs, of which 265 were already operational. Most special economic zones (SEZs) are in the IT / BPM sector.

BUSINESS OPERATIONS:

Our Company was originally incorporated as Hetarth Software Solutions Private Limited on December 21, 2015 under the Companies Act, 2013 vide certificate of incorporation issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently the name of the company was changed from "Hetarth Software Solutions Private Limited" to "EPL Life Science Private Limited" under the Companies Act, 2013 pursuant to a special resolution passed by our shareholders at the EGM held on December 02, 2021 and had obtained fresh certificate of incorporation dated December 07, 2021 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently the name of the company was changed from "EPL Life Science Private Limited" to "SVS Ventures Private Limited" under the Companies Act, 2013 pursuant to a special resolution passed by our shareholders at the EGM held on March 02, 2022 and had obtained fresh certificate of incorporation dated March 14, 2022 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Thereafter, Our Company was converted in to a public company pursuant to a special resolution passed by our shareholders at the EGM held on May 10, 2022 and consequently name was changed to "SVS Ventures Limited" vide fresh certificate of incorporation dated June 03, 2022 issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli.

Our Company and the Erstwhile Proprietary Firm- M/s Vijay & Co. have been into the business of real estate since 2015 and 2014 years, respectively. Our Company and the Erstwhile Proprietary Firm are into the business of construction and real estate development, focused primarily on construction and development of residential and commercial projects, in and around Ahmedabad, Gujarat.

In this dynamic and extremely competitive business environment, Mr. Shashikant Vedprakash Sharma through his business acumen, strategically became the Director-Promoter of SVS Ventures Limited in 2021 and in April 2022, our company entered into a business takeover agreement dated April 26, 2022 with the Erstwhile Proprietary Firm- M/s Vijay & Co. of Mr. Shashikant Vedprakash Sharma. Since 2021, Mr. Shashikant Vedprakash Sharma has continued to hold his position in our Company as Promoter Director.

With this business takeover, our Company intends to develop versatile projects by focusing on innovative architecture, strong project execution and quality construction. These projects currently cater to and will continue catering to the middle income and high income group. Currently, our business focuses on residential villas and apartment development projects. Our residential villas and apartments portfolio consists of various types of accommodation of varying sizes. Our residential buildings and villas are designed with a variety of amenities such as security systems, sports and recreational facilities, play areas and electricity back-up.

Presently, Our Company is promoted by Mr. Shashikant Vedprakash Sharma, who has over 10 years of experience respectively in the real estate sector. Our Company aims to grow in size from his rich experience, expert in-sight of the industry and expand its operations. Our Company is currently focusing on opportunities to build a brand in real estate sector.

SWOT ANALYSIS:

Strength

SVS Ventures, Is the fastest growing consulting company in Gujarat, We at SVS Ventures are very passionate about consulting in the Construction & Real-Estate.In the Past decade, the company has successfully launched residential & Commercial projects.

Best Market Analysis

Using the best market analysis technique, We are consulting small to large scale businesses to provide the maximum return.

More Than 1000 Clients Trusted

From the Last decade, we are serving in a variety of sectors and creating br^&d value wUh more than 1000 Trusted Clients.

Weakness *

• Our business is heavily dependent on the performance of, and theprev ailing conditions affecting, the real estate market in Ahmedabad and in India generally.

- The real estate market in Ahmedabad and in India generally may be affected by various factors outside our control, including, among others:

- prevailing local economic, income and demographic conditions;

- availability of consumer financing (interest rates and eligibility criteria for loans);

- availability of and demand for properties comparable to those we develop;

- changes in governmental policies relating to zoning and land use;

- changes in applicable regulatory schemes; and

- the cyclical nature of demand for and supply of real estate.

These factors may result in fluctuations in real estate prices and the availability of land, which may negatively affect the demand for and the value of our projects, and may result in delays to or the cancellation of our projects, the cancellation of sales bookings or the termination of lease agreements. During times of crisis, market sentiment may be adversely affected, buyers may become cautious, rentals of office space may face downward pressure and sales or collections could be adversely affected which may have a material adverse effect on our financial condition and results of operations.

• Our operations are subject to high working capital requirements. Our inability to maintain an optimal level of working capital required for our business may impact our operations adversely.

The results of operations of our business are dependent on our ability to effectively manage our inventory and trade receivables. To effectively manage our trade receivables, we must be able to accurately evaluate the credit worthiness of our customers and ensure that suitable terms and conditions are given to them in order to ensure our continued relationship with them. However, if our management fails to accurately evaluate the terms and conditions with our customers, it may lead to write-offs bad debts and/ or delay in recoveries which could lead to a liquidity crunch, thereby adversely affecting our business and results of operations. A liquidity crunch may also result in increased working capital borrowings and, consequently, higher finance cost which will adversely impact our profitability.

Our inability to maintain sufficient cash flow, credit facility and other sourcing of funding, in a timely manner, or at all, to meet the requirement of working capital or pay out debts, could adversely affect our financial condition and result of our operations. In the event we are not able to recover our dues from our trade receivables or sell our inventory, we may not be able to maintain our Sales level and thus adversely affecting our financial health.

Opportunity

The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which will allow all kind of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market in the coming years. Responding to an increasingly well-informed consumer base and bearing in mind the aspect of globalisation, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralised processes to source material and organise manpower and hiring qualified professionals in areas like project management, architecture and engineering.

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 Housing and Urban Affairs. Expected growth in the number of housing units in urban areas will increase the demand for commercial and retail office space.

The current shortage of housing in urban areas is estimated to be ~10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the countrys urban population.

The growing flow of FDI in Indian real estate is encouraging increased transparency. Developers, in order to attract funding, have revamped their accounting and management systems to meet due diligence standards. Indian real estate is expected to attract a substantial amount of FDI in the next two years with US$ 8 billion capital infusion by FY22.

Source: https://www.ibef.org/download/1661494149 Real-Estate-July-2022.pdf Threats

The business is subjected to various risks and uncertainties and the Companys results of operations and financial conditions are affected by numerous factors including the following:

• General economic and demographic conditions;

• Regulation affecting the real estate industry;

• Fluctuations in foreign and Indian currency;

• Significant developments in Indias economic and fiscal policies;

• Our ability to meet our capital expenditure requirements;

• Fluctuations in market prices in the real estate sector and for the land that is being developed by our company;

• The demand and supply of land shall be affected by the nature and location of our projects, and other factors such as our brand and reputation and the design of the projects;

• Availability of consumer financing (interest rates and eligibility criteria for loans);

• Competition from other real estate developers operating in the markets in India in which it operates. Some of these firms have greater resources and/or a more widely recognised brand than we have, which may give them a competitive advantage. Our ability to grow revenues will depend on demand for our products and services in preference to those of its competitors;

• Changes in governmental policies relating to zoning and land use;

• Any increase in prices resulting from higher construction costs could adversely affect our profit margins, demand for our projects and the relative affordability of our projects as compared to our competitors products;

• Fluctuations and/ or increase in the cost of land and development rights, our cost of construction/development comprises primarily the cost of raw materials (in particular cement and steel), contractors, architects and other consultants, construction materials and finishings amongst others could affect our revenues;

• Our ability to raise additional finance and working capital or borrowings as per the requirement. In case of failure, there shall be adverse impact on our results of operations, planned capital expenditures and cash flows. Our profits will also be impacted by interest rate variation.

• Any delay in the recovery of outstanding receivables, may affect our results of operation, as we may then have to resort to increased borrowings for our working capital requirements, which may further exert pressure on outgo towards interest thereby reducing our profits.

• Our ability to obtain the necessary licenses in timely manner.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has in place proper system of internal control which is commensurate with size and nature of business. The Company has an Audit Committee headed by the Independent Director, inter-alia, to oversee companys reporting process, disclosure of information.

FINANCIAL POSITION AND RESULTS OF OPERATIONS:

The Company has robust growth and improvement in top line and bottom line on Standalone basis in the Current and previous financial years which is explained below:

(Rs. in Lakhs)

PARTICULARS	STANDALONE - FINANCIAL STATEMENTS- YEAR ENDED MARCH 31, 2023	STANDALONE - FINANCIAL STATEMENTS- YEAR ENDED MARCH 31, 2022
Revenue from Operations	663.02	16.52
Other Income	1.04	Nil
Total Revenue	664.06	16.52
Profit / (Loss) before exceptional and extraordinary Items and tax	93.32	15.99
Add/(Less): Extra-Ordinary Item	Nil	Nil
Profit / (Loss) after Extra Ordinary Items and before tax	93.32	15.99
Tax Expense:
A) Current Income Tax	23.5	4.16
B) Deferred T ax (Assets) / Liabilities	Nil	Nil
Profit / (Loss) After Tax	69.82	11.83

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company considers employees as its vital and most valuable assets. Your Company considers manpower as its assets and understands that people have been driving force for growth and expansion of the Company. As on March 31, 2023, there were 6 permanent employees employed by the Company. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

KEY FINANCIAL RATIOS:

SN Ratio	As at March 31, 2023	As at March 31, 2022
1 Debtors Turnover (Trade Receivable Ratio) (In times)	0.64	1.10
2 Inventory Turnover ratio (In times)	0.51	-
3 Interest Coverage Ratio	NA	NA
4 Current ratio (In times)	6.73	4.15
5 Debt- Equity ratio (In times)	0.01	2.70
6 Return on Equity Ratio (%)	2.11	303.33
7 Net Profit Ratio (%)	10.53	71.61
8 Return on Capital employed (%)	3	84

CAUTIONARY STATEMENT:

The content in this Management Discussion and Analysis may contain "Forward Looking Statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward- looking statements to reflect future / likely events or circumstances.

Date: September 05, 2023	For and on behalf of Board of Directors SVS VENTURES LIMITED
Place: Ahmedabad
Registered office: Block A, Office No. 1009,	Sd/-	Sd/-
	Shashikant Sharma	Sunny Sharma
Mondeal Hights, Nr.	Managing Director	Non-Executive Director
Panchratna Party plot, S.G.	(DIN: 06628349)	(DIN: 09480894)
Highway Ahmedabad - 380051