Gothi Plascon (India) Ltd Management Discussions

We the Board of Directors, present its analysis covering performance of the Company for the year 2024 - 2025 and the business outlook for the future. The business outlook performance is based on the current business environment and do not include any economic variation.

i. Industry structure and developments

Indias real estate market in 2024-25 was characterized by strong sales growth, surge in new project launches, and robust price growth across both residential and office segments, supported by strong economic fundamentals, shifting consumer preferences, and the agility demonstrated by developers in responding to evolving market demands.

Indias real estate market continued to demonstrate resilience and growth, solidifying its position as a key pillar of the economy. Amidst global uncertainties, the sectors adaptability has enabled it to achieve new milestones, with both office and residential markets demonstrating robust performance.

The commercial real estate market is linked to the economic development of the nation. With the Indian economy being one of the fastest growing large economies in the world, we expect demand for commercial real estate to remain buoyant.

During the year property market started rising after 10 years of stagnancy and the effect of Covid. The market trends will further be determined by various domestic and international factors like global market movements, global government actions /policies ,visible improvement in corporate earnings of domestic firms, etc.

We face certain risks and challenges of both internal and external relevance. These have the potential to adversely impact our business, performance and financial conditions.

ii. Opportunities and Threats

While the industry outlook remains optimistic, several challenges persist. Regulatory delays, policy uncertainties, and inflationary trends in construction materials continue to exert pressure on project costs and timelines. Prolonged approval processes and evolving compliance requirements can further impact operational efficiency. Interest rate fluctuations and tighter monetary policies ,global market movements, global government actions /policies ,visible improvement in corporate earnings of domestic firms, etc. also have the potential to affect the demand and supply of commercial spaces, thereby posing risks to sustained sectoral momentum.

Indian real estate sector is one of the biggest and globally recognized sectors with attached threats of Regulatory hurdles ,monetary tightening and funding issues shortage of Labour and Technology which is faced by the industry in general

iii. Segment -wise or product -wise performance

During the financial year ended March 31, 2025 the Company operated only in one segment of business viz, real estate and other related services.

iv. Outlook

As economic activities regain theres a concurrent rise in demand for office spaces. The supportive measures introduced by the Central Government in the budget are expected to provide an additional boost to the sectors growth

The company is confident that with the economic and sector specific reforms introduced by the government in the recent past, the outlook for long-term demand for the real estate sector in India is stable and positive. The emergence of Tier-1I and Tier-1II cities, urbanization, large scale employment opportunities in Tier-II cities and larger numbers of nuclear families will contribute to a substantial increase in demand for real estate and corporate space in the future. As such company is having good understanding with existent clients. Hence the board do not forsee big impact on its earnings.

v. Risks And Concerns

Our risk assessment focuses on short-term risks and emerging risks in the risk areas such as strategic, operational, financial, legal and compliance.

Our business and profitability are dependent on the performance of the commercial real estate market in India as well as the general economic, demographic and political conditions. Fluctuations in the general economic, market and other conditions may affect the commercial real estate market in India and in turn, our ability to lease office parks to tenants on favorable terms. The commercial real estate market in India may particularly be dependent on market prices for developable land and the demand for leasing of finished offices, both of which will continue to have a significant impact on our business, results of operations and financial condition.

There are multiple type of risks such as Global Economic Slowdown Risk, Inflation Risk, Interest Rate Risk ,financial risk, competitive risks, borrowing risks, legal risks, environmental risks, liquidity risks, , political risks ,economic risks , etc . The board is able to form strategy for operational , financial and legal risk on short term basis .However, it is not possible for the Company to adequately respond to all the risks which are external that it may face and there can be no complete assurance provided in as far as external risks like change in law , competition , labour , political risks ,economic risks ,etc.

vi. Internal control systems and their adequacy

The Company has a proper and adequate system of internal controls commensurate with the size of the Company and the nature of its business to ensure that all the assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions are authorized, recorded and reported correctly and adequately. The system has been designed to ensure that financial and other records are reliable for preparing financial information and for maintaining accountability of assets.

A report issued by the Statutory Auditors, M/s. N.Singhal & Co, Chartered Accountants on the Internal Financial Controls forms a part of the Annual Report.

vii. Discussion on financial performance with respect to operational performance

The company had a profit of profit of Rs.162.90 lacs as compared to the previous year of Rs. 153.38 lacs. Your Directors are hopeful that the Companys performance subject to various other prevailing market/ industrial/ economic / legal conditions as may be applicable to the company.

viii. Material developments in Human Resources / Industrial Relations front, including number of people employed. : The company maintained its commitment to employee well-being by strengthening health and safety protocols. We ensured compliance with all statutory requirements and implemented proactive measures for a safe and supportive work environment. There is no material development in human resources and industrial relations remained cordial.

The total employees as at the year end were 24 and the employer-employee relations have been cordial throughout the year. ix. details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including:

Particulars	2024-2025	2023-2024	Variation in %	Reason for variance
Debtors Turnover	0	19.19 days		-
Inventory Turnover	2418.22 days	1249.70 days	94	Closing stock is decreasing , no purchase in business
Debt Service Coverage Ratio	10.30	12.54	-18	Due to increase in Interest on debt paid. Therefore the variance
Current Ratio	6.55	11.06	-41	Due to decrease in advnace receivable in cash or kind
Debt Equity Ratio	0.20	0.01	1432	Due to increase in Bank Debts due to Decrease in sale rate
Operating Profit Margin (%)	50.69	30.85	19.84
Net Profit Margin (%)	37.32	35.05	6	-

X. details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof: The return on net worth for the financial year is 17.81 % as compared to 17.22 % in the previous year as a result of increase in profit as compared to previous year.

2. Accounting Treatment in preparation of Financial Statements

The Company has prepared the Financial Statements in accordance with the Indian Accounting Standards (Ind AS) to comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the relevant provisions of the Act, as applicable.