National Standard (India) Limited (the "Company") is a Mumbai-based real estate development entity operating as a subsidiary of **Macrotech Developers Limited** (widely known as **Lodha**). The Company is currently in a transitional phase, moving away from independent operations toward full integration with its parent entity. Its current business activities are limited to the liquidation of legacy inventory and the management of financial assets. --- ### **Corporate Structure and the Path to Consolidation** The Company is undergoing a fundamental structural transformation aimed at simplifying the group corporate structure and consolidating real estate assets under the flagship brand. * **Parentage:** The Company is a subsidiary of **Macrotech Developers Limited (MDL)**. The ultimate holding company is **Sambhavnath Infrabuild and Farms Private Limited**. * **Strategic Merger:** A Board-approved **Scheme of Merger by Absorption** is currently underway to merge the Company into **Macrotech Developers Limited**. * **Board Approval:** Initially approved **July 30, 2024**, with modifications on **August 11, 2025**. * **Regulatory Milestone:** Received approval from **BSE Limited** on **December 30, 2025**. * **Current Status:** The Company is in the process of filing the merger application with the **Hon. National Company Law Tribunal (NCLT), Mumbai Bench**. * **Share Exchange Ratio:** Upon the merger becoming effective, shareholders will receive **92 equity shares** of **MDL** (₹ 10 each) for every **1,000 equity shares** held in the Company (₹ 10 each). * **Listing Status:** To streamline regulatory compliance, the Company voluntarily **delisted** from the **Calcutta Stock Exchange (CSE)** effective **February 1, 2025**. It remains listed on the **BSE Limited**. --- ### **Operational Status and Project Lifecycle** The Company’s operational model has shifted from active development to inventory monetization. * **Project Pipeline:** There are currently **no ongoing construction projects**. The Company completed its last real estate project in **2018** and has explicitly stated it does **not envisage undertaking new projects** in the near future. * **Revenue Generation:** Current operational revenue is derived exclusively from the **sale of remaining inventory** from the project completed in **2018**. * **Asset Profile:** The Company maintains records for **Property, Plant and Equipment** but reports **no intangible assets** and **no immovable properties** as of the latest audit cycles. * **Human Capital:** The Company operates with **zero direct employees**. All Key Managerial Personnel (KMP) and administrative support are provided on **deputation** from the holding company, **Macrotech Developers Limited**. --- ### **Financial Performance and Revenue Composition** The Company’s financials reflect a "harvest" phase, where income is generated from legacy assets and financial lending rather than new business volume. **Financial Summary (FY 2022 - FY 2025)** *(All figures in **₹ Lakhs**)* | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **2,232.97** | **2,137.32** | **1,734.50** | **2,546.36** | | **Other Income** | **1,813.40** | **1,651.94** | **1,057.59** | **1,938.61** | | **Total Income** | **4,046.37** | **3,789.26** | **2,792.09** | **4,484.97** | | **Total Expenditure** | **2,219.34** | **1,794.53** | **1,590.32** | **1,093.47** | | **Profit After Tax (PAT)** | **1,319.92** | **1,473.86** | **824.77** | **2,460.82** | **Key Financial Observations:** * **Income Diversification:** **Other Income** (primarily interest and financial gains) is a critical component of the bottom line, representing **44.8%** of the **Total Income** in **FY 2024-25**. * **Profitability Trends:** After a sharp decline in **FY 2022-23**, PAT recovered to **₹14.74 crore** in **FY 2023-24** before settling at **₹13.2 crore** in the most recent fiscal year. * **Capital Allocation:** The Board has consistently opted **not to recommend dividends**, choosing to retain earnings within the business as it moves toward the merger. --- ### **Treasury and Related Party Operations** In the absence of active construction, the Company utilizes its capital to support the broader group ecosystem. * **Inter-Corporate Deposits:** The Company extends **unsecured loans** to related parties for general business purposes. * **Interest Terms:** These loans carry an interest rate of up to **7% p.a.** and are structured to be repayable within **12 months** or on demand, ensuring high liquidity. * **Debt Profile:** The Company maintains a **zero-debt** status regarding external interest-bearing loans, significantly de-risking the balance sheet against interest rate fluctuations. --- ### **Risk Management and Mitigation Framework** The Company operates under a **three-pillar Risk Management policy** focusing on Business Risk, Operational Controls, and Policy Compliance. | Risk Type | Mitigation Strategy | | :--- | :--- | | **Credit Risk** | Rated as **Low**. The Company retains **legal ownership** of sold units until all installments are recovered from homebuyers. | | **Liquidity Risk** | Managed by maintaining high levels of **cash and cash equivalents**; all current liabilities are coverable within a **one-year** window. | | **Market Risk** | **Zero currency risk** (no exports/foreign exposure) and **zero interest rate risk** (no external debt). | | **Regulatory Risk** | Currently contesting a **Local Body Tax (LBT)** demand of **₹37.79 Lakhs** (plus penalty) with the **Thane Municipal Corporation**. | --- ### **Sustainability and Legacy Standards** Despite the cessation of active building works, the Company continues to report on the resource-efficiency standards implemented during its active phase: * **Energy Efficiency:** Historical implementation of **variable frequency drives** for elevators and AC units, and electrical designs that limit voltage drops to less than **5%**. * **Water & Material Management:** Use of **waste water treatment plants** for non-potable needs (irrigation/cooling) and the integration of **fly ash and GGBS** in concrete to reduce cement consumption. * **Technology Absorption:** No new technology was absorbed in the current period as no new projects were initiated. --- ### **Sector Outlook and Strategic Rationale** While National Standard (India) Limited is not pursuing independent growth, its management remains optimistic about the broader Indian real estate environment, which informs the parent company's decision to absorb the entity. * **Housing Upcycle:** Management identifies a **multi-decade housing upcycle** in India, supported by structural demand, wage growth, and favorable government policies. * **Macro Challenges:** The sector faces headwinds from **rising land prices**, **input cost inflation**, and **manpower shortages**. These challenges reinforce the strategic rationale for the merger, as a larger consolidated entity (MDL) can better leverage economies of scale and advanced, less labor-intensive construction technologies. * **Economic Context:** Despite a strong **8.2% GDP growth in FY24**, management remains cautious regarding **geopolitical flux** and its impact on currency and commodity prices, which could indirectly affect the real estate market.