G G Dandekar Properties Ltd Management Discussions

1. This section includes discussion on the following matters within the limits set by the Companys Competitive position:

(A) OVERVIEW

G. G. Dandekar Properties Limited [Formerly known as G. G. Dandekar Machine Works Limited] (The Company) is engaged in real estate -leasing of property business.

The Company during the year under review continued to have the same number of properties owned by it. The commercial property in Pune is generating steady lease rental income in form of license fees for the company.

During the year under review, the property of the Company, factory shed and a part of office building situated at Butibori MIDC area, Taluka Hingna, District Nagpur has started generating income in form of the license fees with effect from August

2024.

Considering the developments in the economic and commercial environment, the Company has diversified into real estate and leasing of property business by making modification in the object clause of Memorandum of the Company. The change in the object clause in the financial year 2021-22 and the change in name of the Company in the financial year 2023-24 helped the company in securing moderate to lucrative business opportunities. The change will help in generating steady returns over the long term, which shall ensure consistent value creation for the members of the company. The Company foresees appreciation in the value of land and real estate based on the rise in demand for real estate spaces, which may positively impact the financial performance of the Company.

Associate Company:

The company has an associate company which was formed as joint venture company with subject experts who brought in with them rich industry experience in non-rice segment.

With an initial investment of Rs. 0.49 lakhs and a follow investment of Rs. 380.01 lakhs, NDPL for the year gone by has clocked Rs. 3,217.73 lakhs in turnover and Rs. 71.39 lakhs in profits. The investment has been a fruitful one by most objective measures.

The lock-in period of 5 years applicable to equity shares in the share capital of the associate company has been completed as the Shareholders Agreement.

The Company during the year under review, continues to operate in only one vertical commercial real estate - leasing of property

(B) GLOBAL ECONOMY

Global growth is projected at 3.3 percent both in 2025 and 2026, below the historical (2000-19) average of 3.7 percent.

The global economy is holding steady, although the degree of grip varies widely across countries.

Global economy remains remarkably resilient, with growth holding steady as inflation returns to target," the IMF said while predicting the global real GDP growth at 3.2% for 2024 and 2025, the same rate as in 2023. Global real gross domestic product (GDP) growth is estimated at 3.2% in CY 2023, and projected to grow at the same rate in CY 2024 and CY 2025.

The IMF report attributed the slow pace of growth to several factors such as high borrowing costs, withdrawal of fiscal support, long-term effects of the COVID-19 pandemic, Russias invasion of Ukraine, weak growth in productivity and increasing geoeconomic fragmentation. Global inflation moderated from its peak in the middle of CY 2022 while economic activity continued to grow, thus averting a possible global recession.

IMF expects global headline inflation to fall further from the annual average of 6.8% in 2023 to 5.9% in 2024 and to 4.5% in

2025, with advanced economies returning to their inflation targets sooner than emerging markets and developing economies. Risks to the global outlook for 2024 seem broadly balanced. These risks arise from price spikes stemming from geopolitical tensions and regional conflicts such as those in Gaza, attacks in the Red Sea, and continued war in Ukraine, a slowerthan expected decline in core inflation and interest rates remaining higherthan expected.

On the upside are factors such as a short-term fiscal boost as many countries go to elections in 2024, faster monetary policy easing, and increase in productivity from technologies such as artificial intelligence.

Growth in India also slowed more than expected, led by a sharper-than-expected deceleration in industrial activity.

Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.

Global disinflation continues, but there are signs that progress is stalling in some countries and that elevated inflation is persistent in a few cases. The global median of sequential core inflation has been just slightly above 2 percent for the past few months.

Where inflation is proving more sticky, central banks are moving more cautiously in the easing cycle while keeping a close eye on activity and labor market indicators as well as exchange rate movements. A few central banks are raising rates, marking a point of divergence in monetary policy.

(Source: IMF World Outlook).

(C) INDIAN ECONOMY

Indias GDP growth for FY2024-25 is expected to be between 6.5-7.0%, despite a slower-than-expected Q2 growth of 5.4%. The economy is projected to recover quickly, supported by anticipated interest rate cuts and lower inflation. Inflation is expected to moderate with the CPI forecasted to be 4.8% by March 2025.

The International Monetary Fund (IMF) has raised Indias growth forecast for 2024-25 to 6.8% from 6.5% on the back of strong domestic demand and a rising working-age population.

The Reserve Bank of India, the countrys central bank, estimates the economy to grow at 7% in the current financial year that started on April 1.

The IMF estimates Asias third largest economys gross domestic product to grow at 6.5% in the next financial year, it said in the World Economic Outlook released on 16 April 2024.

The agency also revised upwards the growth figure for 2023-24 to 7.8% from 6.7% it had forecast in January. Indias own official estimates had pegged growth at 7.6%.

Growth surprised on the upside in the second half of 2023 as robust domestic demand fueled activity, especially in emerging Asian economies. Malaysia, the Philippines, Vietnam, and most notably India, recorded sizable positive growth surprises. Growth for the region reached 5 percent in 2023, much stronger than a growth of 3.9 percent in 2022, and this represents a 0.4 percentage points higher than what we had projected in the October 2023 Regional Economic Outlook, and the momentum carries over into 2024. We now project the region to grow by 4.5 percent in 2024 and upward revision of 0.3 percentage points relative to October. With this, Asia would contribute about 60 percent of global growth. The region is projected to grow by 4.3 percent in 2025.

The driver of growth- for India, we expect investment to contribute disproportionately to growth, much of it public, especially in India. In emerging Asia, outside China and India, robust private consumption will remain the main growth engine, (source: IMF website)

Prudent macroeconomic policies have supported Indias economic resilience, with growth expected to recover from a recent softening and inflation expected to converge to target. Risks to the outlook include deepening geoeconomic fragmentation and a slower pace of domestic demand recovery.

(D) INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian commercial real estate sector continued its robust recovery in FY 2024-25, driven by strong demand for quality office and retail spaces across major metropolitan cities. According to industry reports, the top seven cities—Mumbai, Delhi NCR, Bengaluru, Kolkata, Chennai, Pune, and Hyderabad—witnessed significant new supply and leasing activity, with retail space leasing volumes surpassing previous years levels. Domestic retailers dominated leasing, underscoring the sectors resilience and growth potential.

The Indian real estate market is growing at a rapid pace. It is expected to increase to US$ 1 trillion in 2030 from US$ 200 million in 2021, making it the third largest globally. The real estate sector contributed around 7% to Indias GDP in FY2018- 19, and its share is expected to advance to about 13% in 2025. The sector has robust forward and backward linkages with core sectors of the economy, namely, steel, cement, and other building materials, which directly/indirectly impacts 270 industries.

The commercial real estate market in India is well organized and highly competitive. Rising economy, digitalization, growth in the IT/ ITeS sector and varied government reforms (industrial corridors, FDI policy, RERA, REITs) have resulted in higher demand for the commercial real estate space. Global investment poured in as the government relaxed FDI norms, promoting the development of malls and other organized retail spaces. At the same time, the digital economy and e- commerce attributed to a demand for coworking office spaces, smart warehousing, and logistics hubs.

(E) OPPORTUNITIES AND THREATS

The demand for commercial real estate has increased as a result of the booming economy and the returning workers to offices, as was previously said however with another issue that is becoming more significant is the rise of flexible leasing models like co-working spaces / managed offices.

Innovative office space ideas, business-friendly efforts and top-notch amenities for tenants are further factors driving the increase in demand.

Due to the removal of limits connected to the pandemic, vacancies in Grade A offices are now returned to being stable compared to the previous two years. JLL predicts that due to rising demand, the Grade A office market would reach 1.2 billion square feet by 2030.

Commercial real estate leases are typically long-term, and every three years, the rental rate increases by 15%, making it profitable for developers. This has fueled the creation of a number of new office space projects that are currently under construction and will be open soon.

Threat related real estate industry include following amongst others:

Threat related real estate industry include following amongst others:

1. Political uncertainty - the change in leadership affects heavily the taxation system which has link to the real estate sector. When the political scenario changes leadership economic environment gets influenced. A war between the countries may affect the real estate industry.

2. Interest rates- when interest rates rise, it has firm impact on real estate markets. This rise will reduce the demand amongst the customers.

3. Economy and affordability - when the economy goes down, the affordability of the potential customer also goes down which in turn affects the growth of real estate industry

4. Regulatory changes and compliance requirements.

4.5. Natural disaster-When natural disaster occurs; it affects the real estate industry adversely

(F) SEGMENT-WISE PERFORMANCE OR PRODUCT-WISE PERFORMANCE

During the year under review, your company continues to operate in 1 segment only which is real estate leasing of property.

In the year 2022-23, the Company has purchased pre-leased commercial property in Pune which is a rapidly developing city and counted among the best urban infrastructure in India. It is ranked second in the Ease of Living Index 2020 by the Ministry of Housing and Urban Affairs in India. It was ranked highest among all Indian cities by Mercers 21 st Annual Quality of Living Rankings in 2019 and ranked seventh in terms of per capita income. The citys real estate sector growth is driven by IT, education, automobile, and manufacturing sectors. Indias Smart Cities Mission has driven the growth of Punes urban infrastructure. Investments valued at more than Rs. 650 Bn are expected to be infused over eight years for establishing metro rail links, a new airport terminal, and a ring road.

During the year under review, the property of the Company, factory shed and a part of office building situated at Butibori Ml DC area, Taluka Hingna, District Nagpur has started generating income in form of the license fees with effect from August 2024.

(G) OUTLOOK

The outlook for the commercial real estate sector remains positive, with sustained demand for quality office and retail spaces. The company is well-positioned to capitalize on emerging opportunities, supported by its strong brand, diversified portfolio, and focus on innovation and sustainability. Expansion plans are on track, and the company remains committed to delivering value to all stakeholders.

Commercial Real Estate in India:

Indias commercial real estate market has been steadily growing, and the rise of small and medium real estate land developers and a segment of institutional capital has acted as a catalyst for the sector. Additionally, the development of robust office infrastructure has increased the countrys economic activity, creating opportunities for real estate-focused startups.

Pune is a rapidly growing city in Maharashtra with a thriving economy and a strong presence in the IT, manufacturing, and automobile industries. It is home to many large corporations, including Amazon, Bajaj.TATA, and Infosys, making it an ideal location for commercial real estate investments.

The demand for commercial property in Pune for sale is rising. With upcoming properties offering a range of options for investors. From commercial shops for sale in Pune to large office spaces, there are plenty of opportunities to tap into. Real estate Pune developers also focus on building robust office infrastructure to meet the growing demand from occupiers. Indias population is expected to be 1.52 Bn by 2036 with a 70% increase in the urban areas. Indias urban population is expected to grow from 35% in 2022 to 39% by 2036, driving the growth of the real estate sector. India has more than 50% of the population below the age of 25 and more than 65% of the population below the age of 35. This demographic advantage is expected to translate into increased real estate demand.

The Government of India allowed FDI up to 100% in the Indian real estate sector, which is expected to attract increasing investments.

The pandemic-infused trends coupled with low-interest rates, affordability, and other favorable factors harnessed the positive sentiments in these markets resulting in growing property sales

(H) RISKAND CONCERNS

The Company continues to operate in Real-estate- leasing of property since the FY 2022-23. Though this business in the evolving stage, following risks are identified:

• Geopolitical risk and global economic headwinds- The Companys focus on a few areas could affect growth

• Funding risk-The Company is regular in repayment of the loan availed.

• The Company has availed loan of Rs. 4.7 crore to acquire property in FY 22-23- in the month of August 2023. Outstanding amount of borrowing as on 31 March 2025 stands at INR 409.81 Lakhs. The Company has a strong debt-equity ratio. Volatility in interest rates and financing costs.

• Competition risk - The Companys expertise in project planning and execution, along with the expertise of its directors, makes it an ideal choice. We are looking at a development offering that includes commercial spaces in real estate segment.

• Regulatory uncertainties and compliance challenges

Your Board is conscious of these risks and will take adequate measures to mitigate the risks before considering any further investments in development of projects.

(I) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control systems to ensure operational efficiency, accuracy and promptness in financial reporting and compliance of various laws and regulations.

The internal control system is supported by the internal audit process. An Internal Auditor has been appointed for this purpose. The Audit Committee of the Board reviews the Internal Audit Report and the adequacy and effectiveness of internal controls periodically.

(J) COMPANYS FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Standalone:

During the financial year under review, your company has achieved turnover of Rs. 360.27 Lakhs (previous year Rs. 296.02 Lakhs). The Loss before exceptional items and tax for the period is Rs. 146.24 Lakhs (as against loss of Rs. 85.72 Lakhs during the previous year). The net loss for the period is Rs. 21.20 Lakhs (as against net loss Rs. 439.46 Lakhs during the previous year).

Consolidated (Includes PAT of Associate Company proportionate to Company share):

During the financial year under review, your company has achieved turnover of Rs. 360.27 Lakhs (previous year Rs. 296.02 Lakhs). The loss before exceptional items and tax for the period is Rs. 153.90 Lakhs (as against loss of Rs. 115.56 Lakhs during previous year). The net Profit for the period is Rs. 6.11 Lakhs (as against net loss Rs. 441.23 Lakhs during previous year).

(K) MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FORMAT, INCLUDING NUMBER OF PEOPLE EMPLOYED

During the year under review, there was no material development in human resources. The Company seeks to recruit and retain quality industry professionals and provide them with a performance-oriented environment.

During the financial year, total workforce of the Company remained at 3, as on 31st March 2025, the number of employees was 3.

(L) ENVIRONMENT

The Company takes due care in the selection and usage of appropriate material and methods in order to avoid violation of norms formulated to safeguard the environment.

(M) CAUTIONARY STATEMENT

Statements in this Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.

(N) LISTING FEES

The annual listing fees for the year under review have been paid to BSE Limited, where your Companys shares are listed.

(O) SUBSIDIARY COMPANIESAND CONSOLIDATED FINANCIAL STATEMENTS

As on 31st March 2025, the Company has consolidated the accounts by taking into consideration the financials of Navasasyam Dandekar Private Limited, an associate company of the Company.

There are no companies that have become or ceased to be subsidiaries, joint ventures, or associate companies of the Company during the year.

A statement containing the salient features of the financial statements of subsidiary/joint venture/associate companies is provided in Form AOC-1, attached as Annexure IV to this report.

The Board presents Audited Standalone & Consolidated Financial Statements as prepared in compliance with the Indian Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Details of significant changes, i.e., change of 25% or more, as compared to the immediately previous Financial Year in key financial ratio, along with detailed explanation therefore:

Sr. no. Particulars	Ratio as on 31 March 2025	Ratio as on 31 March 2024	Variance	Explanations, if any
1. Debtors Turnover*	-	202.21	NA	Average trade receivables for the current year are NIL.
2. Creditors Turnover*	20.38	8.70	134.25%	Increase in expense during the year & reduction in average trade payable for the year has resulted in improvement in the ratio.
3. Inventory Turnover*	0.00	0.00	NA	Manufacturing activities discontinued in FY 2022-23, No inventory and goods purchases during the year
4. Interest Coverage Ratio (times)	2.48	3.64	(31.87)%	Decrease in EBITDA due to increase in Expenses has resulted in decrease in debt service coverage
5. Current Ratio* (times)	8.78	4.99	75.95%	Decrease in current liabilities as on March 31,2025 at a higher proportion than decrease in current assets as compare to the balances as on March 31,2024, has resulted in increased in current ratio
6. Debt Equity Ratio*	0.09	0.09	0.00	-
7. Return on Capital employed (%)	(1.95)%	(1.32)%	47.43%	Decrease in EBIT during the year as compared to previous year has resulted in decrease in return on capital employed.
8. Return on investment (%)	2.11%	13.84%	(84.75)%	Reduction in return and average investment for the year as compare to previous year has resulted in decrease in Return on investment.
9. Return on Equity Ratio (%)	(0.45)%	(8.95)%	(94.97)%	Reduction in loss after tax for the current year as compare to previous year, has resulted in improvement in return on equity ratio.
10. Net Profit Ratio* (%)	(5.89)%	(144.25)%	(95.92)%	Reduction in loss after tax for the current year & increase in net credit sales for the current year as compare to previous year has resulted in improvement in net profit ratio.

Note:

Last year figures are re-grouped/updated as necessary.

* Calculated in accordance with the Guidance Note issued by ICAI on Ind AS and Schedule III of the Companies Act 2013. Previous year numbers are restated accordingly.

There are no sector specific equivalent ratios for disclosure by the Company.

RETURN ON NET WORTH:

Details of change in Return on Net Worth as compared to the immediately previous Financial Year are as follows:

Sr. no.	Particulars	Ratio as on 31 March 2025	Ratio as on 31 March 2024	% of change	Explanations
1.	Net Worth	(0.45)	(9.36)	95.19	Reduction in loss after tax for the current year as compared to previous year, has resulted in improvement.

ANNUALRETURN:

As required under Section 92(3) read with section 134(3)(a) of the Companies Act 2013 read with rule 12 of the Companies (Management and Administration) Rules, 2014 including amendments thereunder, the Annual Return filed with the Ministry of Corporate Affairs (MCA) for the Financial Year 2023-2024 is available on the web-link (Annual Return Form MGT-7-FY-ended- 31-Mar-2024) and the Annual Return for Financial Year 2024-2025 will be made available on the website of the Company - www.ggdandekar.com once it is filed with the MCA.