Adhbhut Infrastructure Ltd Management Discussions

1. GLOBAL ECONOMY

In FY 2024–25, the global economy continued to face significant headwinds, shaped by persistent inflationary pressures, escalating geopolitical tensions, and ongoing disruptions across global trade and supply chains. While some stability was provided by the sustained efforts of central banks to control inflation and the resilient performance of key emerging markets, the broader economic outlook has softened. Heightened policy uncertainty and slowing demand in advanced economies have further contributed to a more cautious global growth environment. According to the latest World Economic Outlook released by the International Monetary Fund (IMF), global economic growth has been revised downward to 2.8% for 2025 and 3.0% for 2026, a decrease from the earlier projection of 3.3% for both years. The IMF has also downgraded growth forecasts for most advanced economies, citing slowing investment, tighter financial conditions, and weak consumer demand.India, while also facing a marginal downgrade—from 6.5% to 6.2% in 2025—continues to lead as the fastest-growing large economy globally, supported by domestic demand, infrastructure investment, and favorable demographic dynamics. Medium-term risks to the baseline are tilted to the downside, while the near-term outlook is characterized by divergent risks. Upside risks could lift already-robust growth in the United States in the short run, whereas risks in other countries are on the downside amid elevated policy uncertainty. Policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy, with implications for fiscal sustainability and financial stability. Managing these risks requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation.

India remains the fastest-growing major economy, with projected GDP growth in the 6–6.5% range through FY/ 2025–26 and beyond. The 6.2% forecast for 2025–26 reflects global headwinds such as trade tensions and uncertain external demand. Nonetheless, strong domestic consumption, structural support a resilient growth trajectory. Furthermore, Indias economic policy framework remains relatively insulated from external volatility due to a well-diversified economic structure, improving logistics and digital infrastructure, and growing emphasis on self-reliance ("Atmanirbhar Bharat"). These factors collectively help offset the impact of global trade tensions and monetary tightening in advanced economies.

World Economic Outlook Update, January 2025: Global Growth: Divergent and Uncertain

India remains the fastest-growing large economy and IMF projections show that it could overtake Japans this year to become the fourth largest in the world, at about USD 4.2 trillion. While risks persist—such as oil price volatility, monsoon variability, and global financial market instability—Indias medium-term growth prospects remain resilient, underpinned by a favorable demographic dividend and sustained public and private investment. Indias economy is likely to grow by 6.7 per cent in the current fiscal year that started in April and can realistically achieve 7-8 per cent expansion over the next decade and a half, having moved past a string of global crises in the recent years.

The Indian economy had grown at 6.5 per cent in 2024-25 (April 2024 to March 2025), down from 9.2 per cent in the previous year. However, there has been an uptick fueled by construction and manufacturing growth since the March quarter when the GDP growth at 7.4 per cent was faster than expected. This spending to spur consumption.

While the Asian Development Bank pins FY26 growth at 6.7 per cent, the World Bank forecasts 6.3 per cent It is said that despite a series of global shocks in recent years, from the COVID-19 pandemic to geopolitical disruptions, Indias economy remains resilient and positioned for robust growth.

It is believed that GDP will grow at 6.7 per cent for FY26, the strong performance rooted in services, rising mid-market investment, and improving agricultural productivity. While factors like trade can have an impact, but it would be limited to a short-term horizons, till such time deals are concluded.

The economy can rev up to 7-8 per cent over the next 10-15 years, Indias predominantly service-driven economy remains largely unaffected by global trade challenges. While India is home to more than 50 per cent of the worlds global capability centres (or GCCs), close to 67 per cent of the Fortune 2000 companies do not have operations in India yet.

It is believed that Indias Global Capability Centres are no longer peripheral support arms, but at the front and centre of global enterprise innovation, positioning the market as ‘front office of the World. India currently hosts nearly 1,800 GCCs, a number that can scale to 3,400-5,000 centres over the next few years, with the right policy environment, ecosystem support, and co-ordinated action. "Just step back and look at it, Indias or every country has gone through some serious crisis in the last 5-6 years.

From COVID to trade to wars to all kinds of things. But India still remains at 6.5-6.6 growth. So, that is a clear indicator that India still has a lot of space to grow. The per capita income is at less than USD 2,800 but as it approaches USD 4,000, the consumption actually doubles, not merely rising by a third, signaling a disproportionately higher expansion. Meanwhile, sectors like manufacturing, semiconductors are slowly gaining traction, and agriculture productivity is looking up following good monsoon.

Indias STEM-skilled workforce is beyond tier-2 cities and the talent is "astonishing". We still have more STEM skills than anybody else in the world. And what we see is not just the tier one cities, tier two cities...We now see tier three cities. Some of the talent coming in is astonishing...in that sense, weathering all these crisis, COVID crisis...So my views is we probably can still grow at 7-8 per cent over the next 10-15 years, adding this would be contingent on measures including boosting ease of doing business. The growth next year could be similar. "By FY30, We think we can actually push it up.

https://upstox.com/news/business-news/economy/india-s-economy-likely-to-grow-at-6-7-in-fy-26-long-term-prospects-at-7-8-deloitte-south-/article178498/

2. INDIAN REAL ESTATE MARKET ANALYSIS

The Indian real estate market is projected to experience robust growth driven by factors like rapid urbanization, increasing disposable incomes, and rising demand for residential and commercial properties. The real estate industry in India is Segmented by property type, including residential, commercial, industrial, and land, the market is further divided into sales and rental operations, operating through both online and offline modes to cater to diverse consumer preferences and enhance accessibility. Regional segmentation illustrates varied growth dynamics across different areas, emphasizing localized market conditions and opportunities. Key government initiatives, such as investments in smart city projects and tax exemptions, alongside environmental and regulatory concerns, shape sustainable practices within the sector. The burgeoning population fuels the demand for infrastructure, significantly impacting the real estate market size in India and driving the trend towards smart, sustainable projects. The competitive landscape remains dynamic, with continuous innovation aimed at meeting evolving market needs. The real estate sector includes various phases of property dealings, including developing, selling, buying, leasing, and management processes in the commercial sector, residential sector, etc.

The 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. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

As the Indian real estate sector enters FY2025 - 26, a new wave of disruptions and directional shifts is reshaping the landscape. Rapid expansion of the middle class, evolving consumer aspirations, and strong economic fundamentals are driving this transformation, further accelerated by technology adoption, changing urbanization patterns, ESG imperatives and regulatory reforms. This evolving landscape is reshaping investor strategies and end-user preferences. Investors are pivoting towards future-ready, high-quality assets across diversified geographies, while end users are demanding smarter, more sustainable, and lifestyle driven spaces. This shift is redefining real estate value creation for the next growth cycle.

In 2025-26, the future of real estate will be designed by technology, sustainability and a rising India. Trends that are defining the industrys current landscape and future trajectory.

- Rise of low-density housing: The Indian real estate market is shifting towards low-density formats like villas, townhouses, and plotted developments. Homebuyers increasingly seek sustainable living options that offer isolation and harmony with nature, distancing themselves from urban noise and pollution. Developers are responding to this trend with open space-focused projects, while HNIs and ultra-HNIs are also showing a strong preference for premium, low-density projects.

- Technology integration: Technological integration is transforming the Indian real estate sector through AI and blockchain. It is also streamlining processes such as property transactions, legal verifications, and market analysis. Smart home features integrated with IoT are now standard, boosting energy efficiency and convenience. Digital tools are revolutionising how properties are bought, sold, experienced, and managed, enhancing transparency and user engagement.

- Increased preference for homeownership: Homeownership gained traction, supported by government incentives and hybrid work trends. The demand for larger homes in suburban and Tier 2 cities rose sharply. Changing demographics, a growing middle class and younger population entering the workforce have further fuelled demand. Emotional factors, such as the desire for asset creation and intergenerational wealth factors, further reinforced the cultural and economic shift towards owning homes.

- Opportunities in REIT space: The REIT market in India now represents over 9% of the total office stock across the top eight cities, underpinned by substantial institutional investment. Key drivers of the REIT growth include rapid urbanisation, expanding infrastructure, supportive regulatory frameworks, and investor-friendly policies such as lower minimum investment thresholds and the introduction of fractional ownership through SM REITs. Rising awareness among retail investors and new avenues for participation are further strengthening liquidity and expanding the potential of this emerging segment.

- Emergence of rental housing and co-living: Flexible living models are gaining ground, especially among younger professionals and migrant populations in urban centers. Co-living spaces and organised rental housing are expanding, driven by affordability pressures, lifestyle flexibility, and supportive policy frameworks like the Model Tenancy Act.

- ESG and green real estate mainstreaming: Sustainability imperatives are now central to real estate development. Institutional investors increasingly prefer ESG-compliant projects, while end users prioritise wellness, energy efficiency, and green certifications. Developers are embedding sustainable design and smart infrastructure as integral parts of new project offerings.

India Real Estate Report FY 2025-26: Trends, Insights & Forecasts

4. OUTLOOK AND STRATEGY l The Company has followed all legal and Regulatory Compliances requirement and has implemented all statutory requirements. l Your Company believes that demand conditions in the real estate sector are exhibiting early signs of improvement, and signs of declining interest rates as well as renewed activity in the lending and public capital markets are expected to ease funding pressures. As your Company continues to build on its core business of real estate development and leasing, your Company believes that it is well placed to achieve its targets of reducing its overall indebtedness, executing its real estate development and leasing operations and taking advantage of a potential revival in economic growth and its resultant positive effects on the real estate sector. Expansions are required to be made in developing Shopping Complexes. l The Company remains focused on growing the rental portfolio by capturing the organic growth potential along with new products across, both office and retail segments. The Company expects to maintain its growth trajectory and achieve double-digit growth in its portfolio through organic growth, coupled with new developments. The positive outlook towards the retail business has led to a development of new retail destinations and the Company expects to double its retail presence over the next few years l Foreign institutional Investors have also shown confidence in the countrys construction and are showing up investments in India. This is a positive sign and will open new areas of growth and development. l The Company has followed all legal and Regulatory Compliances requirement and has implemented all statutory requirements. l Your company are closely monitoring the continued consolidation among mid-sized developers and asset platforms, as it presents both competitive challenges and strategic opportunities for our growth.

5. GOVERNMENT INITIATIVES

Nirmala Sitharaman, the finance minister, delivered the Indian Union Budget 2025-26 on 1^st Feb 2025. The budget placed a lot of emphasis on many industries, particularly real estate, which has a big influence on the Indian economy. The infrastructure sector continues to be crucial to Indias economic development, playing a pivotal role in driving GDP growth, thereby, fostering regional development and enabling job creation. Recognised as a key catalyst for national progress, the sector has witnessed sustained focus from the Government of India via heightened policy support, higher public expenditure and active facilitation of private sector participation. In the Union Budget for financial year 2025-26, the government allocated 11.21 lakh crore towards capital expenditure, marking a continued commitment following the previous years allocation of 11.11 lakh crore. This strategic investment is aimed at enhancing Indias physical infrastructure across segments such as power, roads, bridges, urban infrastructure and water resources The following are some significant real estate-related announcements:

The key highlights in respect of real estate sector are: l Increase in Annual limit for TDS on Rent l Allocation of Rs. 1lakh crore for Urban Challenge Fund l National Framework for Global Capabilities Centers (GCC) l Support for State Infrastructure Development l Tax relief for Residential Property Investor l Special Window for affordable and Mid-Income Housing Fund-2.0 l Zero Tax on Income of Upto Rs.12 lakh l Revised Capital Gains tax framework for units of REITs l TDS on transfer of immovable property l Rental income from letting out of residential house property to be taxed under ‘Income from House Property.

Tax Reforms and Relief for Buyers and Developers¹: l Income Tax Changes: The budget increased the income tax exemption limit to12 lakh for the new tax regime, which will boost disposable income, especially for the middle class. This could lead to increased demand for residential properties as more people may afford to buy homes or invest in real estate.

l TDS (Tax Deducted at Source) Threshold: The TDS limit on rental income was raised from 2.4 lakh to 6 lakh. This simplifies tax processes for landlords and tenants and can encourage more rental transactions.

The change will be particularly beneficial for residential landlords with smaller properties, making the rental market more active. l Amend Affordable Housing Standards: The government has continued its focus on affordable housing with tax breaks and incentives for developers in this segment. This is expected to stimulate the construction of homes in the lower-income category and align with the Pradhan Mantri Awas Yojana (PMAY) objectives.

First-time homebuyers can also benefit from interest rate subsidies and tax benefits. The existing definitions of affordable housing, determined by dimensions, cost, and purchaser income, need immediate re-evaluation. The size requirement of 60 sq. m. for carpet space is justifiable; nevertheless, the price limit of INR 45 lakh is impractical in high-cost urban centres such as Mumbai. The cap ought to be raised to a minimum of INR 85 lakh in Mumbai and INR 60-65 lakh in other metropolitan cities to align with local market conditions. These amendments would allow a greater number l Reinstate the Credit-Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana (PMAY).

This scheme for EWS/LIG households, which lapsed in 2022, ought to be revived to encourage first-time purchasers of budget homes. It would also encompass loans for new construction or the addition of critical amenities such as kitchens and bathrooms to existing residences. Under PMAY (Rural), subsidies may facilitate the transformation of ‘kaccha dwellings into ‘pucca residences, contingent upon meeting.

- Infrastructure Investments: l Urban Infrastructure Fund: Rs.1 lakh crore Urban Challenge Fund aims to enhance urban infrastructure, including public transport systems, roads, and utilities. This infrastructure boost will make certain urban areas more attractive for both residential and commercial investments. Cities with improved infrastructure tend to see a rise in property demand, which benefits developers and investors. l Smart City Projects: The focus on smart cities under the budget will create better urban spaces with advanced technologies for living and working. This will drive demand for modern homes and commercial spaces, particularly in emerging cities or urban hubs.

- Focus on Sustainability and Green Building: The budget emphasizes eco-friendly construction and sustainable housing, with developers encouraged to adopt green building practices. Tax incentives for using renewable energy and water-saving technologies will make green buildings more attractive to investors and homebuyers. As sustainability becomes a greater priority, there could be an uptick in demand for environmentally conscious properties.

- Increased Focus on Tier-2 and Tier-3 Cities: The budgets emphasis on smart city projects and infrastructure development will likely drive growth in smaller cities (Tier-2 and Tier-3). As these cities become more connected and develop better infrastructure, demand for residential and commercial properties in these regions will rise. This could help ease the pressure on over-saturated metro markets, offering more affordable housing options and opportunities for developers.

- Commercial Real Estate Growth: The governments plans for urbanization and infrastructure upgrades are likely to benefit commercial real estate. Office spaces, especially those designed to be flexible and tech-friendly, could see increased demand from companies and startups. Developers may focus on building business parks, office buildings, and co-working spaces in cities that are experiencing infrastructure upgrades.

Additionally, with improved public infrastructure, logistics and warehousing will likely expand, benefiting the commercial segment further.

Lastly, The Union Budget 2025 has a mix of measures that are likely to stimulate demand, boost infrastructure development, and attract investment in the Indian real estate sector. The focus on affordable housing, tax relief for both buyers and developers, sustainability in construction, and improved urban infrastructure is expected to drive growth in both residential and commercial markets. As the sector continues to benefit from these policies, real estate is poised to remain a critical asset class in Indias economic growth story. One of the biggest game changing policy implementation was the introduction of the Real Estate (Regulation and Development) Act (RERA)) which has put a semblance of order in the real estate sector by boosting investor confidence and streamlining the builder response by framing their responsibilities and duties.

Moreover, foreign investors who are watching the Indian real estate market have also witnessed how the Indian housing trends are changing in favour of urban dwellings. The resurgent middle class has also led to a boom in the demand for urban housing. In addition, this is not just limited to the metros. It has spread to tier two and tier three towns as well. The returns and margins are so good in Indian real estate that many global institutional investors are now eying the Indian real estate market like never before. The governments move to allow 100% FDI in construction, and development projects has also boosted the investors confidence in the sector.

*1 https://rerafiling.com/rera-article-detail.php/894/key-highlights-of-budget-2025-and-their-effect-on-indian-real-estate-sector

6. OPPORTUNITIES AND CHALLENGES

? Opportunities

The real estate sector is one of the best sector to invest in 2024 in India is experiencing a phase of transformation and consolidation, driven by regulatory changes and government reforms such as the Real Estate Regulatory Authority (RERA) and the Affordable Housing Program. These initiatives are designed to increase transparency, improve regulatory oversight, and provide affordable housing to the masses. The sector is expected to benefit from Indias growing urban population and increasing demand for commercial real estate, particularly from the BPO and IT industries. Despite facing challenges like financing issues and project delays, the long-term prospects for the real estate market in India remain strong, supported by governmental efforts to improve the sectors framework.The Indian real estate sector has witnessed substantial growth and investment in recent years.

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Company has well accepted brand, contemporary architecture, well-designed projects in strategic locations, strong balance sheet and stable financial performance even in testing times make it a preferred choice for Customers and shareholders. Your company is ideally placed to further strengthen its development potential by acquiring new land parcels.

Leading real estate experts remain cautiously optimistic about Indias property sector in 2025. While broad-based growth of 6% to 6.5% in home prices is expected, the momentum is increasingly driven by premium buyers and infrastructure-led segments. Middle-class affordability is improving modestly—hundreds of thousands may benefit from interest rate shifts and incentives—but affordable-housing supply remains tight. Commercial real estate continues to attract institutional capital, and smaller cities are emerging as growth engines. That said, potential oversupply in certain zones and weakening luxury demand remain key risks. Here are some of the key investments and developments:-

a) Rental Housing & Co-living Models: Co-living and co-working spaces are gaining popularity in India, especially in urban areas. Developers who focus on this segment can cater to the growing demand for flexible and affordable living and working spaces.

b) Affordable Housing: The affordable housing segment is a significant opportunity in the Indian real estate sector. The governments focus on providing "Housing for All" by 2022 has created a huge demand for affordable housing. Developers who focus on this segment can benefit from government incentives and tax breaks.

c) Real Estate Investment Trusts (REITs): REITs have been introduced in India to provide investors with an opportunity to invest in the Indian real estate market. Developers can benefit from REITs by monetizing their assets and attracting long-term investors.

d) Technology-Enabled Real Estate Services: Technology is playing an increasing role in the Indian real estate sector, with the development of online property portals, virtual property tours, and digital marketing. Developers who adopt technology can improve their marketing efforts and attract a wider audience.

e) Commercial & Office Real Estate in Select Metros: Indias office real estate sector in 2025 offers high-growth, institutional-grade opportunities—especially through REITs, green certified Grade/ A buildings, and flexible workspace formats—in cities dominating GCC demand and corporate expansion.

f) Data Centers, Warehousing, and Industrial Parks: Indias industrial and logistics real estate landscape in 2025 is rich with opportunity—driven by strong demand in warehousing (especially Grade-A), accelerated growth in Tier-2/3 cities, expanding industrial parks, and emerging data-centre infrastructure in strategic regions like Chennai. Investors and developers tapping into these trends can expect resilient, long-term value

g) Green & ESG-Compliant Buildings: Green and ESG-compliant buildings in India are not just a niche trend—theyre now a strategic cornerstone across real estate in 2025. For investors, developers, and occupiers, they offer compelling advantages: premium rental income, brand value, lower operating costs, ESG risk management, and access to incentive frameworks and emerging financing.

h) Vacation & Retirement Homes in Scenic Locations: The vacation and retirement home segment in scenic Indian locales presents a powerful blend of lifestyle appeal and financial potential. With steady rental yields, appreciation driven by tourism, strong NRI/HNI interest, and growing developer sophistication, this sector is firmly established as a strategic, long term investment avenue in 2025

Luxury Housing for NRIs and HNIs: Luxury housing in Indias key metros is booming in 2025—driven by affluent Indian buyers, especially NRIs and HNIs—who are gravitating toward premium offerings with technology-enabled, lifestyle-centric, and branded amenities in elite neighborhoods. Demand remains robust despite broader market cooling, positioning luxury real estate as a favored refuge for capital and lifestyle stability

Overall, the Indian real estate sector offers significant opportunities for developers, investors, and home-buyers. Developers who focus on affordable housing, commercial real estate, co-living and co-working spaces, and adopt technology can benefit from the growing demand in these segments. Investors can benefit from the potential returns from the Indian real estate market through REITs.

? Challenges a) Regulatory Environment: Indias real estate industry has historically been characterized by a lack of transparency and weak regulations. This has led to fraudulent practices such as delayed project completion, misappropriation of funds, and conflicts between developers and buyers.

b) Land Acquisition: Land acquisition is a major challenge for real estate development in India. The process is complicated, time-consuming, and often leads to disputes between developers, landowners, and government authorities.

c) Financing: Access to financing is another major challenge for real estate developers in India. Banks are often hesitant to lend to the industry due to high levels of default risk, and interest rates can be prohibitively high.

d) Construction Delays: Delays in project completion are a common problem in the Indian real estate industry. This can be due to a variety of factors, including delays in obtaining approvals, shortage of skilled labour, and supply chain disruptions.

e) High Inventory Levels: Oversupply of properties in some markets has led to a build up of inventory, which has resulted in lower prices and lower demand.

f) Lack of Professionalism: The Indian real estate industry is often criticized for a lack of professionalism, with developers often failing to deliver on promises and providing poor customer service.

g) Lack of Infrastructure: Lack of infrastructure, including roads, water, and electricity, is a major challenge for real estate developers in many parts of India. This can make it difficult to attract buyers and tenants.

h) Signs of Over Supply & Bubble Risks in Cities: Indias real estate market in 2025 is exhibiting signs of oversupply and potential bubble risks, particularly in major cities like Bengaluru, Delhi NCR, and Mumbai. Developers have aggressively launched new projects, but demand is not keeping pace.

i) Luxury Segment Pressure: The luxury housing market in India remains buoyed by wealthy segment demand, but rising unsold inventory and a shift toward cautious investor sentiment signal growing pressure in the segment. Oversupply amid cooling demand could temper near term returns and slow sales velocity despite earlier market exuberance.

j) Macroeconomic & Inflationary Constraints: Inflation and macroeconomic forces—including high construction costs, undervalued supply, and still-elevated borrowing rates—are weighing on real estate affordability and demand. While growth remains steady, these headwinds require structural reforms beyond monetary easing.

The Company addresses these risks through a well structured framework which identifies desired controls and assigns ownership to monitor and mitigate the risks.

7. STRENGTHS

Your Company continues to capitalize on the market opportunities by leveraging its key strengths. These include:

a) Brand Reputation: Enjoys higher recall and influences the buying decision of the customer. Strong customer connects further results in higher premium realizations.

b) Execution: Possesses a successful track record of quality execution of projects with contemporary architecture.

c) Strong cash flows: Has built a business model that ensures continuous cash flows from their investment and development properties ensuring a steady cash flow even during the adverse business cycles.

d) Significant leveraging opportunity: Follows conservative debt practice coupled with enough cash balance which provides a significant leveraging opportunity for further expansions.

e) Outsourcing: Operates an outsourcing model of appointing globally renowned architects/contractors that allows scalability and emphasizes contemporary design and quality construction – a key factor of success.

f) Transparency: Follows a strong culture of corporate governance and ensures transparency and a high level of business ethics.

8. THREATS/RISK

- Political uncertainty

From the cold war period, maximum developing countries are feeling the threat of global polarization. Although, the threats are not visible but there is an undercurrent of uncertainty looming around real estate. The change of leadership affects heavily on the taxation system which has direct link to real estate sector. When the throne gets shifted to another leader, the economic environment gets influenced. Sometime, the new leadership may halt the taxation reforms inducted by his previous leader. Tread war between countries are also another bigger threat to the real estate companies.

- Interest rate

When interest rates rise, it has firm impact on residential real estate markets. This rise will reduce the demand of new home among the customers and in this way; the real estate industry goes dry. The prices of the homes get elevated and in this way, they wont affordable as before. The growth of interest rate will reduce the demand of homes among potential customers.

- Economy and housing affordability

When the economy goes down, the affordability of the home goes up. In this way, the budget of the home get increased which has a direct negative impact on the customer purchase power. Once, the affordability of the homes gets reduced; customers will feel the heat and they will halt their plan to purchase new homes.

- Change of demography

Change of demography also impacts negatively on the real estate market. When the demands of homes get increased for certain demographic division, the prices get automatically elevated. On the other hand, if the demands get decreased, the prices get decreased too.

- Loss of middle class society

At the present time, in developing countries, there is a huge drop of middle class society. Needless to mention, this class is known as the potential consumer of real estate market.

- Troubled Technology

Presently, there is a huge adoption of technology in the reality sector. These are including robotic, AI, driver less cars, high speed and sophisticated communication systems are reducing the demand of mega structure homes and increasing the living of capsule homes.

- Natural Disaster

Housing is always a matter of several thousands of dollars. Once the home gets destroyed with natural disaster, the owner may not able to build another one. This is the main reason for which, the demand of homes get decreased specially in disaster prone areas.

- Energy and water crisis

Energy is the backbone of life. While going to choose a perfect home, owners first check whether that area sufficient supply of energy and water or not. If there is any shortage of water or energy, the plan for purchasing home get turned down.

- Infrastructure

All most all the home owners prefer to purchase their homes in highly developed areas. Cities are the first choice for purchasing homes. However, if there is poor infrastructure, people wont agree to purchase the homes in those areas.

- Immigration

Immigration issue is always looming as a biggest threat to the home buyers. There are several countries like USA those have laws to oust foreigners. If a foreigner is not sure about his future, why they will invest on housing? This is the main reason for which, real estate sector face threat from these kinds of laws.

9. SEGMENT WISE PERFORMANCE

The Company deals in only one segment i.e. Real Estate. Therefore, it is not required to give segment wise performance.

10. FINANCIAL OVERVIEW

The Revenue from Operations is 82.62 Lakhs for the financial year 2024-25.

Profit/Loss before Tax: The Loss before Tax for 2024-25 is 95.17 Lakhs as compared to Profit before Tax of Rs. 107.21 Lakhs in 2023-24.

Profits/Loss after Tax: The Loss after Tax for 2024-25 is 64.31 Lakhs as compared to Profit after Tax of Rs. 87.27 Lakhs in 2023-24.

11. INTERNAL CONTROL SYSTEMS

The company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly; applicable status, the code of conduct and corporate policies are duly complied with.

The Company has an internal audit department which conducts audit in various functional areas as per audit programme approved by the Audit Committee of Directors. The internal audit department reports its findings and observations to the audit committee, which meets at regular intervals to review the audit issues and to follow up implementation of corrective actions.

The internal control system at the Company is tailored to fit the unique characteristics and scale of its operations, efficiently addressing all business and departmental functions. The framework includes a compliance management team responsible for upholding established policies, norms, procedures, and applicable regulations. It incorporates a system of checks and balances to ensure that corrective actions are taken promptly in case of discrepancies from defined standards. Regular examinations of the internal control systems are conducted to assess their effectiveness and adaptability, with necessary adjustments made to meet evolving company needs. Additionally, the Company continuously reviews and aligns its systems, procedures, and controls with industry standards.

The committee also seeks the views of statutory auditors on the adequacy of the internal control system in the company. The audit committee has majority of independent directors to maintain the objectivity.

12. HUMAN RESOURCES DEVELOPMENT

Employees are the key to achieve the Companys objectives and strategies. The Company provides to the employees a fair equitable work environment and support from their peers with a view to develop their capabilities leaving them with the freedom to act and to take responsibilities for the tasks assigned. The Company strongly believes that its team of capable and committed manpower, which is its core strength, is the key factor behind its achievements, success and future growth.

We are continuously working to create and nurture an organization that is highly motivated, result oriented and adaptable to the changing business environment. The industrial relations remained cordial during the year.

13. KEY RATIOS

Key financial ratios are given below:

Parameter	F.Y.2024-25	F.Y.2023-24	Change	Explanation
Debtor Turnover	25%	102.55%	77.6%	During the current year companys revenue has decreased as compared to the previous year which has resulted the change in the ratio.
Inventory Turnover	Not Applicable	Not Applicable	Not Applicable	Not Applicable
Current Ratio	482.16%	355.61%	(126.5)%	Increase in Trade receivables and decrease in current liabilities has resulted in significant change of ratio
Return on Equity ratio	10.0%	(13.29)%	(23.3)%	During the current year companys revenue has decreased as compared to the previous yearwhich has resulted the change in the ratio.
Net Profit Margin %	(77.8)%	34.12%	112%	During the current year companys revenue has decreased as compared to the previous yearwhich has resulted the change in the ratio.

14. STATUTORY COMPLIANCES

The Managing Director makes a declaration to the Board of Directors every quarter regarding compliance with provisions of various statutes as applicable. The Company Secretary ensures compliance with the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and compliance with the guidelines on insider trading for prevention of the same.

15. CAUTION STATEMENT

The above Management Discussion and Analysis contains certain forward-looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to several risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over-runs on contracts, Government policies and actions with respect to investments, fiscal deficits, regulations etc. In accordance with the Regulations on Corporate Governance as approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness, though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update on any Forward-looking statements made from time to time on behalf of the Company.