GCCL Infrastructure & Projects Ltd Management Discussions.

1. Industry structure and developments

Duringthe year, GST and Real Estate Regulation (and Development) Act (RERA) reduced the pace of growth in the sector. However, these regulatory changes are expected to contribute positively towards increased transparency and sustained growth in the coming years. RERA, which was introduced to protect the interest of homebuyers and boost investments in the real estate sector, has now been implemented in 27 states. The year saw the Indian consumer hesitant towards making purchase decisions, which led to subdued sales and muted property prices throughout the markets. Under RERA, developers were not permitted to raise initial capital from sales due to registration-related compliances. RERA also triggered consolidation amongst developers due to the stringent compliance norms, which will result in only a few established players dominating the market going forward.

In the pre RERA era, developers would use the funds from the pre-sale of units for the early stages of development of projects. With the implementation of RERA in May 2017, pre-sales or the sale of units can be undertaken only after securing all the required approvals; this shift in scenario increased the developers dependency on external funding.

A renewed focus of the Government on the middle-income population, which had, in the past, stayed away from real estate with its burgeoning prices in urban areas, has given birth to a new growth avenue in the form of Affordable Housing. Most of the developers have either already forayed into the Affordable Housing segment or have started looking at opportunities in the sector.

2. Outlook

Rising interest rates and the economy are the top two current issues to watch in real estate. Developers will look to consolidate and exhaust existing inventory before launching new projects while buyers and investors will continue to wait to see if there is further price correction or consolidation in the market.

The Company will continue to explore the market as a whole and even aims at business expansion and exploration of unhidden areas of work.

The affordable housingwith interest subsidy of 4%, will boost buying and selling of a home.

3. Risk Management

Your Company has laid down procedures to inform the Board members about the risk assessment and risk minimization procedures. The Company is exposed to price risks.

There are almost 50 approvals or more need to be taken for starting a real estate project and further these approvals are required form different govt departments or authorities. This is one of the major causes of delays and high amount of corruption in real estate sector. Consequently corruption and delay cause inconvenience to customers only.

4. Internal Control Systems and their adequacy

Your Company believes in formulating adequate and effective internal control system and implementing the same to ensure the protection against misuse or loss of assets and interest of the Company are safeguarded and reliability of the accounting data and accuracy are ensure with proper checks and balances. The Audit Committee meets periodically reviews the effectiveness and suggests improvement for strengthening them. The culture of self governance and internal control sustained through varied set of activities including well defined policies and self certification on adherence to the policies and procedure.

5. Discussion on Financial Performance with respect to Operational Performance Revenue from operations Rs. 223.75 /- lakhs over the previous year. The Company has incurred a Profit of Rs. 16.17/-lakhs.

6. Cautionary Note

Statement in this report describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Although we believe our expectations are based on reasonable assumptions, these forward-looking statements may be influenced by numerous risks and uncertainties which include changes in government regulation, tax regimes and other incidental factors that could cause actual outcomesand resultsto be materiallydifferentfromthoseexpressed orimplied.