At Poddar Housing we are attractively placed to capitalise on thestructural shift within the real estate sector

Dear shareholders

Overview

I am pleased to present the performance of the Company during the yearunder review.

Your Company reported a turnover of H57.59 Crore and a profit after taxof H2.82 Crore. The fact that the Company even reported a surplus is creditable.

The performance of your Company during the year under review takes meback to the time when we were focusing on creating an enduring business model for ourCompany. The over-riding priority at Poddar Housing was a need to stay relevant liquidand profitable across market cycles. This meant that we would need to be among the lastplayers standing during a sectorial downtrend and among the first to recover following asectorial rebound.

I am pleased to communicate that this business model was validatedduring the last financial year. Your Company survived FY2020-21 without Balance Sheetimpairment; the Company reported a profit on its books from asset divestment; your Companyemerged leaner number and stronger. We believe that by surviving this challenging periodwe have created a foundation for profitable and sustainable growth.

I am pleased to communicate that the Company moved its Badlapur projectfrom the affordable segment to the Unified Development Control Promotion Regulation 2020announced by the Maharashtra government. Under the new regulation the project is entitledto additional FSI with trickle-down impact on revenues and profitability.

During the year under review the Company completed bridge work for theBadlapur project in the face of disruptions; it completed excavation for the A1 A2 A3and A4 towers of our Riveria project in Maharal. The PCC work is in progress for A1 and A3of Riveria; PCC footing and foundation work for A3 and A4 of this projected wascompleted; stub column work is in progress.

The Company recognises revenue when or as the entity satisfies aperformance obligation by transferring a promised goods or service (asset) to a customer.

An asset is transferred when or as the customer obtains control of thatasset.

For each performance obligation the Company determined at theinception of the contract whether it satisfies the performance obligation over time orsatisfies the performance obligation at a point in time.

As per the accounting framework and based on the management assessmentthe Company recognised revenues for its projects - Poddar Riviera (Kalyan) and PoddarWondercity (Badlapur) in a phased manner as per the Project Completion Method and withrespect to ongoing projects - Poddar Spraha Diamond (Chembur) and Poddar SamruddhiEvergreens (Badlapur) as per the Percentage Completion Method.

Reimagining

If there is one reason why we survived this unprecedented year it isbecause we moved with speed to reimagine our Company.

For years there had been a premium on 'How fast can we grow?' Duringthe year under review there was a refocus on 'How quickly can we resize and shrink?'

For years there had been a premium on maximising collections arisingout of sales. During the year under review there was a reprioritisation on 'Howeffectively can we retain and regain customers?' as well as 'How can we enhance our costefficiency?'

For years the focus had been on 'Can we add knowledge experience andcompetence to catalyse corporate growth?' During the year we shifted gears with theobjective of 'Can we multi-task and enhance people productivity?'

For years we had built assets and properties with the objective ofcreating a growth pipeline. During the last financial year we focused on prudent andtimely liquidation that could generate attractive cash flows.

For years we had broadened our operating portfolio comprising largeand small projects that represented geographic de-risking. During the year under reviewwe exited projects that would have consumed a large financial commitment and outlay andmanagerial bandwidth; we focused on a moderate number of manageable properties.

Increasingly relevant

At Poddar Housing we believe that this reimagining of the Company'sscale and scope has been timely.

As things stand today we face an attractive future. We believe thatthe sharp increase in home purchases from the second half of the last financial year isnot just a sign of pent-up demand releasing itself but a decisive pan-India structuralshift - for some good reasons.

One the 'real' cost of a home has declined in the last decade. Pricesof real estate either remained flat or declined even as incomes increased; mortgagefinance costs are at their lowest in years putting the cost of home ownership possibly attheir most attractive level in decades. The cost of a home in India has declined from 5xof annual income for the salaried to 3x of income accelerating the switch from renting toownership.

Two a home in India has graduated from just four walls into a securedmonetisable asset following the introduction of the watershed RERA a few years ago by theIndian government. The result is that the sector is now governed better by codes ofconduct and buyer protection than ever before enhancing sectorial responsibility.

Three the pandemic has brought the modern Indian home in a sharperfocus because of the disproportionately higher time being spent within homes during thelockdown and the need for better supporting amenities.

Four Mumbai is gradually transforming from a prohibitively expensivereal estate destination to relative affordability. This is happening on account of asustained growth coming out of Pune a location with spatial growth possibilities beingbetter than they are in a linear and congested Mumbai. The result is that Mumbai hasfallen off the list of 50 Most Expensive Cities in the World for the first time in yearsenhancing real estate affordability.

Five there has been an extensive shakeout within the Indian realestate sector. In a micro-market like Badlapur where we own land bank and ongoingprojects the number of players has declined substantially.

Six there has been an improvement in the supporting infrastructure inBadlapur and Maharal that is enhancing its appeal as a residential destination.

Poddar Housing attractively placed

At Poddar Housing we are attractively placed to capitalise on thestructural shift within the real estate sector.

The Company strengthened the pace of its projects under developmentwhich enhanced customer confidence. In the Company's Badlapur project the retaining walland bridge work was completed during the last financial year. In the Company's ProjectRiviera the excavation work was completed for A1 and A2 while the PCC work was inprogress. In the A3 and A4 segments the excavation work was completed the PCC / footing/ foundation was completed while the stub column work was in progress. The result is thatthe Company continued to focus on timely project progress and completion strengtheningits respect as a builder committed to timely delivery.

We ended the year under review with a considerably lower coststructure moderate gearing resized projects quantum cash flow-neutrality attractiveprojects pipeline revenue inflow and higher people productivity.

I am optimistic that the complement of these initiatives will translateinto higher liquidity and profitability that enhance the sustainability of our businessand increase value in the hands of those who own shares in our Company.