Gujarat Credit Corporation Ltd Management Discussions.

Management Discussion and Analysis is given in a separate section forming part of the Directors Report in this Annual Report.

1. Industry Structure & Development

As per estimates released by the Central Statistics Organisation (CSO), Indias gross domestic product (GDP) is growing by 7% in FY 2018-19, tad lower than 7.2% witnessed in FY 2017-18. Economic growth witnessed in the second half of the fiscal year, led a slowdown in agriculture, weaker consumer spending and investments, and a marked slowdown in the manufacturing sector. Growth can perk up by macro-economic policies on both fiscal and monetary fronts.

The year 2018 witnessed a fair revival in the residential market, primarily buoyed by new launches and sales in the affordable housing sector, which is projected to continue to drive market growth in 2019. The key growth driver is the transparency brought about by policy implementation, augmenting buyer sentiments and bringing back investors. The main focus continued to be on ensuring affordable housing, balancing the impact of the Goods & Services Tax (GST) and improving sales, while also witnessing the fallout of the liquidity crisis of NBFCs

2. Opportunities

Demand in commercial Real Estate has been high with rental yield going up in certain markets. Affordable and mid-income segments are likely to have better sales against the luxury category. The budget 19-20 announced an additional deduction of Rs. 1.5 Lakhs on repayment of home Loans against certain conditions, In other words, total deduction of Rs. 3.5 Lakhs in taxable income is provided to buy property upto Rs. 45 lakhs for self-occupying.

3. Threats

The sector is grappling with liquidity deficit in the aftermath of IL & FS payment default, high Cost of Capital, and string of stalled projects.

4. Risks & Concerns

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.

Unfavourable changes in government policies and the regulatory environment can adversely impact the performance of the sector. There are substantial procedural delays with regards to land acquisition, land use, project launches and construction approvals. Retrospective policy changes and regulatory bottlenecks may impact profitability and affect the attractiveness of the sector and companies operating within the sector.

Real estate is a capital and labour-intensive industry, thus a rise in cost of labour coupled with shortage creates issues in development of the project. Furthermore, unfair practices of certain sections of distributors and the cement industry by raising the price creates issues in project completion.

5. Internal Control Systems and their Adequacy

The Companys policies and procedures take into account the design, implementation and maintenance of adequate internal financial controls, keeping in view the size and nature of the business. The system ensures adherence to accounting standards, compliance to various statutes, company policies and procedures and effective usage of resources and safeguarding of assets. 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.

6. Discussion on Financial Performance

Net revenue is Rs 62.49 Lakhs over the previous year. The Company has earned Profit of Rs. 30.19 Lakhs in 2018-19.

7. Significant Developments in Human Resources

There is no material development in human resources and industrial relations are cordial.

8. 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 outcomes and results to be materially different from those expressed or implied.

Date: 07/08/2019 On behalf of the Board
Place: Ahmedabad Amam Shah, Director
[DIN: 01617245]