MANAGEMENT DISCUSSION AND ANALYSIS (MDA) REPORT

1. ECONOMIC SCENARIO:

The Indian economy has emerged as one of the largest economies with a promising economic outlook on the back of controlled inflation, rise in domestic demand, increase in investments, decline in oil prices and reforms among others.

The macroeconomic situation in India has improved significantly during the current year. Also, acceleration in services and manufacturing growth in the face of subdued global demand conditions point to the strengthening of domestic demand. The outlook is for economic strengthening through higher infrastructure spending, increased fiscal devolution to states, and continued reform to financial and monetary policy. The government underscored its intention to move steadily to tackle politically difficult structural issues that have stalled investment and limited economic performance in recent years. A more robust economic performance than was earlier indicated emerges from revised data based on an updated base year , wider coverage of goods and services, and the inclusion of tax data to estimate economic activity. Real growth in India was brviously estimated as a change in volume, but the new series estimates value added at each stage.

The government's initial estimates for FY2015 show that economic growth accelerated to 7.4%. Agriculture growth slipped to 1.1% in FY2015 largely because the monsoon was erratic, particularly affecting the summer crop. The production of food grains contracted by 3.2% from FY2014.

After growing by 4.5% in FY2014, industry accelerated to 5.9% in FY2015, helped by a 6.8% expansion in manufacturing. These estimates may be a tad optimistic, however, as they assume manufacturing growth to have exceeded 10% in the final quarter of FY2015. Monthly industrial production estimates indicate a more modest upturn. The production of capital goods expanded after three (3) years in the red. However, consumer durables continued to decline. Improved coal production helped double the growth of electricity generation over the brvious year's rate. The outlook for fiscal 2016 and beyond will be shaped by a mix of global developments, a continuing rub of the green and, most importantly, domestic policy especially, how quickly and effectively bottlenecks are resolved, pending reforms are pushed through, and investment cycle gets kick-started. The government has initiated a number of small steps to debottleneck the economy. These steps have provided a mild boost to the economy during 2014-15 and will also support growth in the next fiscal.

2. THE INDUSTRY SCENARIO:

2.1 Urban Infrastructure:

A key driver of the economy, Infrastructure is highly responsible for propelling India's overall development. The industry enjoys intense focus from the Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country.

Foreign direct investment (FDI) received in construction development sector from April 2000 to January 2015 stood at US$ 24,028 million, according to the Department of Industrial Policy and Promotion (DIPP).

FDI inflows in earth moving equipment

Cumulative FDI inflow (since April 2000) into earth-moving equipment increased at a CAGR of 12.2 per cent to reach US$ 209.3 million in March 2014.

2 Real Estate Sector:

The Indian real estate sector is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. It comprises four sub sectors -housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations.

The Indian real estate market size is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's gross domestic product (GDP). Also, in the period FY08-20, the market size of this sector is expected to increase at a compound annual growth rate (CAGR) of 11.2 per cent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.

Market size of real estate in India

The market size of real estate in India is expected to increase at a CAGR of 11.2 per cent during FY2008 - 2020.

Under the Sardar Patel Urban Housing Mission, 30 million houses will be built by 2022, mostly for the economically weaker sections and low-income groups, through public-private-partnership (PPP), interest subsidy and increased flow of resources to housing sector.

The Government of India has allocated US$ 1.3 billion for Rural Housing Fund in the Union Budget 2014-15. It has also allocated US$ 0.7 billion for National Housing Bank (NHB) to increase the flow of cheaper credit for affordable housing for urban poor. The Government of India has relaxed the norms to allow foreign direct investment (FDI) in the construction development sector. This move should boost affordable housing projects and smart cities across the country. The Securities and Exchange Board of India (SEBI) has notified final regulations that will govern real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This move will enable easier access to funds for developers and create a new investment avenue for institutions and high net worth individuals, and eventually ordinary investors.

FDI in construction development sector as a per cent of India's total FDI

Total FDI in the construction development sector during April 2000-April 2014 stood at around US$ 23.38 billion.Responding to an increasingly well-informed consumer and keeping in mind the globalisation of the Indian business outlook, real estate developers have also shifted gears and accepted fresh challenges. The most marked change has been the shift from family owned businesses to professionally managed ones.

Real estate developers, in meeting the growing need for managing multiple projects across cities, are investing in centralised processes to source material and organise manpower and hiring qualified professionals in areas like project management, architecture and engineering. The growing flow of FDI into 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.

Continuous migration to urban areas from rural areas, rising income and decrease in household size on account of growing trend of nuclear families has increased the demand for houses in the urban areas. Supply of the affordable housing, though, remains limited in the urban areas. While there is a shortage of housing in rural as well as urban areas, this shortage is expected to comparatively increase in urban areas over the next five years. Around 20 kms away from the Ahmedabad airport, India's first International Financial Tech City is being built. On the other hand, a new smart city at Dholera is being built which is twice the size of Ahmedabad.

3. NILA IN RETROSPECT AND IN PROSPECT

3.1 Two phases lived by the Company

(a) Pre-amalgamation phase:

The Company commenced its business operations from 1990 and it has been doing well and profitably managed. However the wings cannot be sbrad in full and the Company was not able to work at its full potential. The Company executed several housing projects successfully and developed land bank at cheaper rate during the unsupportive real estate market condition. The Company gained momentum in the year 2006-07 when the flagship company of the Group Sambhaav Media Ltd was awarded construction of decorative AMTS bus stands in the city of Ahmedabad. NILA entered into urban infrastructure project through the development of unique bus stands of AMTS on behalf of Sambhaav Media Ltd. In the year 2007-08 the Company launched its ambitious residential project

"Asmaakam" The project received overwhelming response even during the period of financial crisis due to global meltdown in the year 2008-09. However still the Company was striving for strong foundation to operate on large scale and this has originated the idea of consolidation through merger and amalgamation.

(b) Post-amalgamation phase: Turnaround and consolidation:

The timely decision by the Company for the amalgamation of Pearl Stockholdings Pvt. Ltd, a financially sound company with resources and huge reserve base turned around the Company in terms of improvement in the financial performance of the Company. The successful amalgamation executed during 2009­10 by the Company had brpared a strong platform for the Company to grow.

3.2 Growth Phase being implemented and Growth Plans being charted

After successful consolidation of resources, the Company is concentrating on growth and creating value for its stakeholders. The management has a vision to make the Company one of the leading players in the sector. To achieve this, the Company hasstarted to work on large scale residential and infrastructure projects and developing its core competency. The management is optimistic towards the growth of the economy in general and construction sector in particular.

4. STRATEGIC FOCUS OF NILA

4.1 Pricing Policy - Value For Money:

The Company has executed outstanding quality real estate projects ranging from affordable housing to luxurious, high-end residential projects at prime locations of Ahmedabad. It has lead to high value apbrciation for the buyers of houses. The Company is committed to deliver value to its customers through

its real estate projects. Within civic/urban infrastructure space, your Company is favourably placed with its main principals/ employers due to its timely, quality execution capabilities. It may be mentioned that your Company keeps getting repeat/multiple orders due to its overall project execution skills.

4.2 Diversified Product Mix - Unique Business Model:

The company has developed a unique business model of construction and development of infrastructure and real estate projects and leasing. Your Company has successfully leveraged the construction expertise to grow into other associated business like construction contracts from reputed corporate and government authorities. Your Company holds commercial properties in the prime location of Ahmedabad, which has been leased-out to certain reputed corporates on long-term basis.

An integrated well balanced business model of construction and development of government and private projects and contracts provides hedging.

This diversified model of business has shown great strength and resilience in the past years of challenging business environment.

Leasing ensures steady cash flow income while construction contracts of Government assure timely and confirmed recovery of dues. Your Company has developed in-house expertise in the entire gamut of construction and execution - including design, planning & estimation, project brparation, project execution, interior designing, integration of project management.

4.3 Financial Resources:

The foremost source of finance of your Company has traditionally been internal accruals and borrowings from financial institutions. Your Company has made financial arrangement with banks and financial institutions for its various long-terms and working capital requirements. During the year the Company has successfully raised funds through private placement of securities. The detail thereof is given in the Board's Report.

4.4 Project Selection and Execution:

Your Company's combrhensive evaluation of opportunities in infrastructure projects includes the following parameters:

4.5 • Principal: Constitution, financial strength, bureaucratic structure, involvement of any bilateral/multilateral agency, track record on other projects, contract management strength, appropriateness of design for local market, etc.

• Pre-development: Financing flexibility to fund the early design work, community/political participation/opposition, government stability over the life of the project, environmental problems, site selection and regulatory approval delays, land acquisition, etc.

• Finance: Commercial viability of the project, capacity of the

lender to evaluate and speed in providing the credit lines, repayment mechanism, credit availability on viable terms, etc.  

• Construction: Viability of the design/technology, availability of labour and raw-material, outlook of raw-material cost, contractor failure, developer's access to funds on a timely basis for construction, etc.

• Market: Local economic conditions, demand-supply outlook, interest/inflation rate scenario, etc.

Real estate projects are a complex and continually evolving process business. To effectively develop, finance, or supervise a project, your Company has developed fundamental understanding of the process and its many facets. To be successful, your Company must manage not only its own performance, but also the collaboration of numerous professionals rebrsenting multiple disciplines. Throughout this process, your Company has to identify and mitigate inherent risks that can threaten the viability of the project. It is broadly evaluated in three parts: 1) brliminary considerations, market analysis, financial analysis, and strategic marketing;

2) site selection and due diligence, land acquisition, deal structure, entitlements, permitting, etc.; and 3) planning and design, construction management, operations and property management.

Hence, with sufficient due-diligence the project is selected and execution is carried-out accordingly by your Company. Your Company's Quality Management System is ISO 9001 : 2008 accredited by Certification International (UK) Ltd that include Project Management, Site Development and Construction activities for Infrastructure, and Real estate projects.

Project Management and Monitoring:

Your Company has adopted an integrated system for planning, scheduling, monitoring and control of the approved project under implementation. To coordinate and synchronise all the support function of Project Management it relies on an Integrated Project Management Control System which integrates its project management, contract management and control function addressing all stages of project implementation from concept to commissioning.

All projects have project monitoring centres which facilitate monitoring of key project milestones and also act as a Decision Support System for the management. It is used as integrated web based collaborative system to facilitate consolidation of project related issues and its timely resolution. Various features for information delivery of ERP facilitate project tracking, issues resolution and management interventions on a regular basis. Integrated ERP platform for monitoring and controlling of critical project activities sbrad across various functions - projects, contracts, finance and execution. This will help in decision support through timely identification of critical input and provide a holistic approach towards project implementation and major project milestones.

4.6 Joint Ventures:

In order to share risk and cost, experience and expertise your Company develops projects in association with other renowned corporates and has formed associates and joint ventures. This provides a larger scale to your Company to work on specific operations. In such a scenario, the construction work is invariably carried-out by your Company.

5. GOVERNANCE AND WORK CULTURE:

Your Company's Corporate Governance philosophy is based on conscience, openness, fairness, professionalism and accountability. These qualities are ingrained in its value system and are reflected in its policies, procedures and systems. Your Company not only believes in adopting the best corporate governance system but also in proactive inclusion of public interest in its corporate priorities.

The Company has its mission, vision, goals and core values. The Company is being governed in accordance with the policies, code of conducts, charters and various committees are formed in accordance with the law to ensure governance. The management believes in team work and a corporate environment which is self motivating. The Company has successfully developed a work force of people over a period of time. The top management is acting as the governing force in creating and maintaining the corporate work culture.

6. BUSINESS OVERVIEW:

6.1 Infrastructure Projects:

Your company has completed the construction work of 60 Bungalows assigned by Applewoods Estate Pvt Ltd (the Sandesh Group company) for their residential township project at S.P. Ring Road, Ahmedabad.

Your company has, during the year, completed the construction work assigned by Adani Infrastructure and Developers Pvt Ltd for Phase-I comprising of 430 flats having a total construction area of 344,363 sq. ft. of their mini township viz. "Pratham" at

Tragad, while, work of Phase-II comprising of 370 flats having a total construction area of 326,782 sq. ft. is being carried out as per schedule.

Your company is constructing 13 Bus Shelters on BRTS Route in Ahmedabad for Ahmedabad Municipal Corporation (AMC).

The BRTS Corridor starts from 1. Shah-e-Alam to Astodia (3 Nos.), 2. Sarangpur to Soni-ni-chali & Kalupur to Naroda Patia (5

Nos.), and 3. Delhi Darwaja to Kalupur Railway Station (5 Heritage Bus Shelters). The construction work is being carried out.

During the year under review your Company, under the Affordable Housing Scheme, initiated construction of 608 Low Income Group (LIG - Package-6) Multi-storeyed Residential Flats + 40 Shops + 8 offices including internal infrastructure and development work within the plot at various locations in Ahmedabad for AMC having a total construction area (Carpet) of 28,714.44 sq. mt. The construction work is being carried out.

During the year under review, your Company carried on construction of multi-storied parking facility for vehicles at Navrangpura in Ahmedabad for AMC. There are parking facility for 390 four wheelers, 719 two wheelers, etc. having total construction area of 30,444 sq. mt. The construction work is being carried out.

During the year under review, your Company has been handed over the possession of the site at Jodhpur, under the Affordable Housing Policy, by Rajasthan Government for construction of 1,072 units comprising of Economically Weaker Section (EWS- 554 units), Low Income Groups (LIG-368 units) & Middle Income Group (MIG-A-160 units) having a total construction area of 472,800 sq. ft.

During the year under review, your Company has been allotted two (2) tenders from Vadodara Urban Development Authority (VUDA) for construction of affordable housing i.e. 200 EWS Residential Flats + 80 LIG-1 & 100 LIG-2 Residential Flats + 9 Shops including internal infrastructure & development work within the plot at Vemali having an approximate total construction area (Carpet) of 13,602 sq. mt. and 320 EWS Residential Flats + 60 LIG-1 Residential Flats + 60 LIG-2 Residential Flats + 12 Shops including internal infrastructure & development work at Sewasi having approximate total construction area (Carpet) of 14,088 sq. mt. The construction work is being carried out.

6.2 Real Estate Projects and Trading:

Your Company has handed over the possession to 106 (out of total 121) buyers of "ATUULYAM" project at Makarba, Ahmedabad comprising of two (2) towers of 3-BHK (80 - super built-up area of 1,755 sq. ft. each) flats and three (3) towers of 2-BHK (120 - super built-up area of 1,305 sq. ft. each) flats. Your Company keeps working on various projects simultaneously and such projects could be at various stages of development/regulatory approvals. During the financial year 2014-15, your Company sold projects at Makarba, Vasna, Chacharwadi, Ranip, etc. as it got beneficial offers - such revenue is classified/acknowledged as trading activity.
Leasing Activities:

Your Company holds 88,000 sq ft of commercial properties at the prime location in Ahmedabad, which has been leased-out to certain reputed corporates on long-term basis.

7. OPPORTUNITIES:

The state of Gujarat has become a corporate hub with the entry of national and multinational companies which has led to rising employment. Your Company foresee ample opportunities in infrastructural development. The rapid urbanisation is likely to boost metaphorical growth in years to come. All these would ultimately generate a demand of homes for all segments of people. Further, the various government tenders envisaging development of infrastructure shall also offer opportunity to the developers to grow in years to come. The envisaged opportunities are discussed below:

• Affordable Housing:

Right to adequate housing is a basic human right as shelter is a basic human need. Provision of adequate housing is emerging as a major thrust area for Government and the government accords a very high priority to this task. With all round increase in the cost of land, building materials, labour and infrastructure, affordable housing has become a distant dream for the economically weaker, low income groups, and middle income groups. Hence, the role and intervention of the

Government has become all the more important. Sustainable human development cannot be achieved without adequate & affordable housing. Affordable shelter for the masses or creation of productive and responsive housing for all is not a simple technological issue or a mere problem of finance. It is a complex amalgam of a host of factors, which need to be tackled at all levels and in a synchronised manner. Due to rapid pace of urbanisation, increasing rural to urban migration and the gap between demand and supply, there is a growing requirement for shelter and related infrastructure in urban areas of the country. Several policies [e.g. National Urban Housing and Habitat Policy (NUHHP), Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Basic Services for the Urban Poor (BSUP), Integrated Housing and Slum Development Programme (IHSDP), Affordable Housing in Partnership (AHIP), Interest Subsidy Scheme for Housing the Urban Poor (ISHUP), Rajiv Awas Yojana, ECB for affordable housing, etc.] adopted by the Government offer a considerable opportunity

• Civic Urban Infrastructure:

Your Company has, over a period of time, developed a niche for itself by executing unique and pioneering projects e.g. BRTS bus-shelters, Multi-level parking facility, etc. Through execution of such projects, your Company has built proprietary knowledge and it places your Company favourably with employers of such projects. The Company expects that number of large sized urban infrastructure projects in Gujarat will start taking shape on the basis of the Rs. 25 trillion investments committed during the latest Vibrant Gujarat - 2015. In the backdrop of the announcement of Gujarat International Finance Tec-City (GIFT), Metro-link Exbrss for Gandhinagar and Ahmedabad (MEGA), Dholera SIR, Mega cities, Million plus cities, etc., your Company is favourably poised to replicate such experience in additional geographies/ employers. Apart from this, there are also other opportunities that your Company can participate into, such as:

- Transportation infrastructure for better mobility through public transport, improved walkability, parking

- Sewerage, drainage and water supply

- Solid waste management

- Social infrastructures such as parks, playgrounds and  leisure spaces

- Preservation of heritage brcincts

Private white-label construction:

Your Company has worked on a few assignments to develop/construct on behalf of the reputed private corporate engaged in real-estate development. Due to its execution capabilities, your Company has not only completed the projects satisfactorily but has also got repeat/multiple orders from such renowned corporate. Your Company has successfully utilized the opportunity and established itself as a brferred contractor. Apart from this, your Company is also brferred by the corporate developers as itself being a public listed entity wherein governance and compliance are strictly ensured. Your Company believes that in the backdrop of industrialization, social factors, employment opportunities, modernisation, rural urban transformation, sbrad of education, etc. coupled with improving macroeconomic indicators, India's rise in technology, comparatively reasonable cost of living, expected falling interest rate scenario, permission of FDI in real-estate sector, there are ample opportunities that would be available to your Company wherein it could participate.

Industrial infrastructure:

In the backdrop of the government's policy initiatives e.g. "Make in India", "Digital India", "Skill India", India Brand Equity Foundation Trust, signing of FTA/PTA, etc.; the country is soon expected to be back on the growth trajectory with GDP growth estimate of 7.4%. Your Company is favourably located being in the most vibrant state of India i.e. Gujarat to participate in developing/ constructing the industrial infrastructure. The Company is favourably placed to take the advantage of the expected spur in construction/development of new industrial facilities e.g. industrial park, warehouse/logistics park, etc.

Real estate:

Developing real estate projects faces significant challenges due to several economic, regulatory and urban issues. Your Company has successfully completed 25 years of operations and, over a period of time, has built a propitious land-bank. During its routine course the Company plans projects on such land and get various approvals for the said projects. A sketchy study of the multitude of statutory approvals is depicted below:

Whilst the lack of availability of urban land, rising threshold costs of construction and regulatory issues are supply-side constraints, lack of access to home finance is a serious demand-side constraint, which impacts the ability of low-income groups to buy housing in the organised sector. Whilst some of these are gradually being mitigated, concerted efforts are required by multiple institutions to facilitate mass development in this sector. It may be mentioned that your Company, being an established player in developing, constructing, building, marketing and selling the real estate projects, has developed cordial relationships with various stakeholders in the system. Your Company has sufficient domain knowledge and can launch relevant real-estate projects at an apt time.

8. RISK AND CHALLENGES:

Expanded business activities have invited number of risks and challenges also for the Company. It is recognised that risks are not only inherent to any business but are also dynamic in nature. Further, the Company is susceptible to certain risks arising out of various activities undertaken in the normal course of business.

There are many constraints affecting the smooth functioning of the industry in which your Company operates. The company is operating in a business which is cyclic in nature and in which, the price is mainly driven by the demand and supply factors. It is not largely based on the cost of the product. Timely supply of raw material like cement, steel, bricks are essential for timely completion of the projects. Shortage of labour and raw material may delay the execution of projects of the Company. The infrastructure projects are capital intensive in nature. The

Company's business requires long-term commitment of capital to meet the financial requirement of long-term projects. Further, timely availability of skilled and technical personnel is also one of the key challenges. Real Estate and Infrastructure projects are mainly dependent on the economic scenarios and any adverse events affecting the whole economy may deteriorate the industry as well. Further, the approval process and time for projects are generally uncertain which may delay the execution and thereby affect financials.

Your Company has in place an effective risk management mechanism to identify potential risk and its timely mitigation.

9. INTERNAL CONTROL SYSTEM:

The Company is well structured and the policy guidelines are well documented with brdefined authority and responsibility. NILA has put in place combrhensive systems and procedural guidelines concerning all areas of business like budgeting, execution, material management, quality, safety, procurement, asset management, finance, accounts & audit, human resources etc., which are adequate and necessary considering the size and level of operations of the Company. The management has been making constant efforts to review and upgrade existing systems and processes to gear up and meet the changing needs of the business. The Company carries out internal audit through anexternal audit firm of Chartered Accountants who have extensive experience in such assignments. The Company has developed and implemented computer based "Enterprise Resource Planning" within the organisation to ensure timely MIS, reporting and control system.

FINANCIAL DISCUSSION AND ANALYSIS

The profitability and financial position of the Company has been improved considerably during the last several years. The summarised analysis of financial statements viz. Profit and Loss Account, Balance Sheet and Cash Flow are furnished further.

The revenue of the Company comprises income from construction and development of infrastructure, real estate project, trading and lease rental, while other income mainly comprises of interest earned on investments such as term deposits with banks, and on loans given. The total revenue for financial year 2014-15 is Rs. 13,171.85 lac as against Rs. 10,014.92 lac in the brvious year registering an increase of 31.53%. The percent break-up of the revenue is depicted below:

Infrastructure Projects

Your Company undertakes infrastructure projects for government / semi-government agencies/departments as well as private corporates engaged in real-estate development and sales. Infrastructure projects are carried-out pursuant to work order / Agreement issued by/entered into with the client

Real Estate Projects

Your Company has been active in developing, constructing, building, marketing and selling the real estate projects. The real estate market in Ahmedabad has been stagnant owing to the availability of a lot of unsold inventory, high home loan rates, low apbrciation in capital values of residential units and the erratic stock market. Hence, the realty market is stagnant as the liquidity from the stock market has slowed down. Of late, the global economic recessionary scenario has also cast a gloomy spell on the sector. Collectively, these factors have resulted in a moderation in capital as well as rental values. However, over the next five (5) years we see a 9%-10% YoY apbrciation in capital values due to the inherent demand for residential units and the infrastructure developments in the city.

Income from real estate projects for the financial year 2014-15 constituted 8.88% of the total revenue i.e. Rs. 1,169.37 lac from the sale of net 24 flats of Atuulyam (46 flats sold during the financial year 2014-15, less 22 flats were cancelled from the cumulative bookings). This is mainly owing to the brvailing slowdown in the real estate industry as explained in detail above. The income from real estate projects was Rs. 5,080.62 lac for the financial year 2013-14.

Trading (Land and Land Rights)

It may be mentioned that trading is not an active focus-area for your Company to generate revenue. However, it is an incidental activity that is vital for your Company's business. Accordingly, trading keeps on contributing to the overall revenue. Over a period of time, your Company has built a propitious land-bank. During its routine course the company plans projects on such land and get various approvals for the said projects. At times, when your Company gets a beneficial offer, it weighs the sale-or-hold decision on various parameters e.g. rate/pace of development of vicinity, potential growth of the surrounding area, etc. Accordingly, the said proposed project, though not being a focus-area of your Company to generate revenue, keeps on contributing to the revenue.

Income from trading for the financial year 2014-15 was Rs.3,019.45 lac which constituted 22.92% of the total revenue. The income from trading was Rs. 1,686.30 lac for the financial year 2013-14.

In order to generate regular sustainable income, your Company has acquired and put-to-use the prime commercial office space of 88,000 sq ft that it owns in an upmarket locality of Ahmedabad. This space is leased to reputed corporates on long-term basis. Income from lease rental for the financial year 2014-15 was Rs. 182.47 lac which constituted 1.39% of the total revenue. The income from lease rental has reduced by 15.62% over the brvious year's income of Rs. 216.25  lac mainly owning to unilaterally curtailing the lease period by the lessee for a couple of offices. However, the Company has successfully leased out a couple of offices afresh and has initiated steps to have the remaining vacated brmises occupied at the earliest.

CAUTIONARY STATEMENT:

Statement in various parts in this Annual Report, the Directors' Report and Management Discussion & Analysis describing the company's analysis, objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicable security laws and regulations. Actual results may differ materially from those exbrssed or implied. Shareholders and readers are cautioned that in the case of data and information external to the company, no rebrsentation is made on its accuracy and combrhensiveness though the same are based on sources believed to be reliable. Utmost care has been taken to ensure that the opinion exbrssed by the management herein contains its perception based on the material impact on the company's operations but it is not exhaustive.