D S Kulkarni Developers Ltd Management Discussions

Economic Overview:

In an era marked by escalating global trade tensions and persistent geopolitical uncertainties, the Indian economy has demonstrated remarkable resilience and robust growth. Despite global economic headwinds, Indias growth remains stable at 6.5%, supported by strong domestic demand. Inflation is under control, though core inflation remains sticky, necessitating careful monetary management. Trade challenges persist due to weak global demand, but a narrowing trade deficit offers some relief. While foreign investor outflows pose risks, robust domestic investment provides resilience. The RBIs proactive policies have played a crucial role in stabilizing liquidity and inflation expectations. Overall, Indias economy is well-positioned for growth, but uncertainties in global markets, financial volatility and trade disruptions remain key risks. Sustained policy support and domestic resilience will be essential in maintaining economic momentum. The RBI and the IMF have projected that Indias consumer price inflation will progressively align towards the inflation target in FY 2025-26. In December 2024, RBIs Monetary Policy Committee report revised its inflation projection from 4.5% to 4.8% in FY 2024-25. Assuming a normal monsoon and no further external or policy shocks, the RBI expects headline inflation to be 4.2% in FY 2025-

26. IMF has projected an inflation rate of 4.4% in FY 2024-25 and 4.1% in FY 2025- 26 for

India.

In brief, there are many upsides to domestic investment, output growth and disinflation in FY 2025-26. There are equally strong, prominently extraneous, downsides too.

Real Estate Sector Overview and Outlook:

It may be noted that the Central Government passed the Real Estate Regulation and Development Act, 2016 which got notified on 26th March, 2016.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. The real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021. The emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail. Rapid urbanisation in the country is pushing the growth of real estate.

Opportunities:

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India will remain strong in the medium to long term. Your Companys 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.

Challenges:

While the management of your Company is confident of creating and exploiting the opportunities, it also finds the following challenges:

?€? Unanticipated delays in project approvals;

?€? Availability of accomplished and trained labour force;

?€? Increased cost of manpower;

?€? Rising cost of construction lead by increase in commodity prices;

?€? Growth in auxiliary infrastructure facilities; and

?€? Over regulated environment.

Outlook and Future Strategy:

The recent passage of the IBC (Insolvency & Bankruptcy Code) has been a major change in the environment for the company. The Management of the Company is expecting positive outlook for the Company. Looking ahead, your Company remains cautiously optimistic. The company will:

?‚? Launch new phases in existing projects and initiate development on recently acquired land parcels.

?‚? Continue strengthening its balance sheet and improve return on equity.

?‚? Focus on affordable and mid-income housing, which continues to show resilient demand.

?‚? Explore joint ventures and asset-light models to expand operations with reduced capital outlay.

Financial Performance Overview:

1. Key financial ratio analysis:

Ratio	Calculation	2025	2024	Reasons for Change
Debtors Turnover	Net Sales/ Average Debtors	2.20	0.00	The increase in ratio is on account of increase in revenue from operations
Inventory Turnover	Sales/ Inventory/Avg. Inventory	0.09	0.00	The increase in ratio is on account of increase in revenue from operations
Interest Coverage Ratio	EBIT/ Interest Expense	0.00	-1.31	Increase is due to reduction in interest expenses and increase in profit

Current Ratio	Current Assets/ Current Liabilities	3.09	2.74	Increase is due to increse in Current Assets
Debt Equity Ratio	Total Debt/ Total Shareholders Equity	-0.001	-2.76	The increase in ratio is majorly on account of repyament of debts
Operating Profit Margin (%)	EBITDA/ Total Revenue	0.07	-1.34	The increase in ratio is on account of increase in total income
Net Profit Margin (%)	Profit After Tax/ Total Revenue	0.07	-0.31	The increase in ratio is on account of increase in total income

2. Balance sheet analysis

A comparative table showing synopsis of FY 2024-25 versus FY 2023-24 of Balance Sheet is provided below:

(Amount in Lakhs)

Balance Sheet	As on 31.03.2025	As on 31.03.2024	Increase/ (Decrease)
Assets
Non-current assets	3,595.80	4,071.01	(475.21)
Current assets	91,950.96	90,648.20	1,302.76
Total	95,546.76	94,719.20	827.56
Equity and Liabilities
Equity	(12,842.67)	(14,154.36)	(1,311.69)
Non-current liabilities	78,668.65	75,735.14	2,933.51
Current liabilities	29,720.78	33,138.41	(3,417.63)
Total	95,546.76	94,719.20	827.56

3. Profit and loss analysis:

A comparative table showing synopsis of FY 2024-25 versus FY 2023-24 of statement of Profit and Loss is provided below:

(Amount in Lakhs)

Profit and Loss	As on 31.03.2025	As on 31.03.2024	Increase/ (Decrease)

Revenue from operations	7,550	0	7,550
Other Income	10.12	2,823.91	(2,813.79)
Total Revenue	7,560.12	2,823.91	4,736.21
Expenses
Depreciation and amortisation expense	0.00	9.28	(9.28)
Interest and finance charges	0.00	0.00	0.00
Profit before exceptional items	560.20	(888.32)	(328.12)
Profit before tax	560.20	(888.32)	(328.12)
Other Comprehensive income of the year	1,165.23	0.00	1,165.23
Profit after tax	1,725.43	(888.32)	837.11
Basic and diluted EPS	0.56	(0.09)	0.47

4. Cash flow analysis:

A comparative table of FY 2024-25 versus FY 2023-24 of Cash Flow is provided below:

Cash Flow	As on 31.03.2025	As on 31.03.2024
Opening cash and cash equivalents	560.20	(888.32)
Net cash inflow/(outflow) from operating activities	(10,016.92)	32,010.88
Net cash inflow/(outflow) from investing activities	301.00	(46.39)
Net cash inflow from financing activities	9,690.56	(31,825.43)
Closing cash and cash equivalents	175.16	200.52

Internal Control System:

The Company has a robust internal financial control system, commensurate with the size, scale and complexity of its operations. This system encompasses adequate controls, procedures and policies designed to ensure the orderly and efficient conduct of business, adherence to established policies, the safeguarding of company assets and the establishment of a reasonable framework for the prevention and detection of fraud and errors, as well as the accuracy and completeness of accounting records. Appropriate framework is in place to

ensure effective internal controls over financial reporting, thereby enhancing the integrity of the Companys financial statements.

The design of key processes and various policies is subject to periodic review to ensure the ongoing adequacy of controls. The Company has an Internal Audit function.

Human Resources:

The company does not have any direct employees on its payroll. Instead, your Company operates through engaging external consultants, contractors, and third-party service providers to meet its operational and strategic requirements.

This approach allows the company to remain flexible, cost-efficient, and scalable, particularly suitable for the cyclical and project-based nature of the real estate sector.

Cautionary Statement

This management discussion and analysis contain forward looking statements that reflects your Companys current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forward looking statements as a result of many factors

For D S Kulkarni Developers Limited

Bhushan Vilaskumar Palresha Sumit Ramesh Diwane

Managing Director Director

DIN: 01258918 DIN: 10076052

Date : 14 th August, 2025 Place: Pune