Gyan Developers & Builders Ltd Management Discussions

A. INDUSTRY STRUCTURE & DEVELOPMENT:

The economy is gradually recovering from multiple challenges that has weathered over the past couple of fiscals. The real estate market is expected to shift towards a more stable and sustainable pace in 2025, reflecting broader economic trends and a market landscape. With the rapid industrialization, the future of the real estate industry in India in 2025 looks very promising. This shift towards stability is expected to create a more balanced market, benefiting buyers and investors and the real estate sector is set to see some of the significant gains in this recovery.

Recent government initiatives, and updates to the Real Estate Regulatory Authority (RERA) and various housing schemes, have positively impacted the real estate market.

B. OPPORTUNITIES:

Infrastructure upgrades continue to shape the real estate industry in Chennai illustrating growth in the market. Government of India along with the governments of respective States have taken several initiatives to encourage development in the sector. The reformed government policies and reduced interest rates are an encouragement to the real estate industry.

The Smart City Project is a prime opportunity for real estate companies. The city is experiencing significant infrastructure enhancements, such as the Chennai Metro Phase II development, expansion of industrial corridors and various road development projects. These projects are expected to boost property values in well-connected areas, making them more appealing to homebuyers and investors. Improved connectivity will facilitate easier commutes, increasing the desirability of residential and commercial properties in these regions.

C. SEGMENT-WISE ANALYSIS:

Your Company is dealing in only one segment i.e., buying and selling of vacant land.

D. OUTLOOK:

The real estate market in Chennai is gaining momentum and is well-positioned for sustained growth, backed by robust infrastructure expansion. The real estate market has shown a steady, stable and sustainable progress in 2025, reflecting broader economic trends and a maturing market landscape. Chennai has shown a strong performance over the past year, driven by strong demand and strategic investments from major developers increasing the market credibility in the industry. The favourable economic upswing and growth is driving demand.

E. THREATS, RISKS, AND CONCERNS:

Some of the biggest challenges faced by the sector are the high dependency on workforce, inflation and economic uncertainty, regulatory and policy changes, environmental risks, increased competition, geopolitical issues and market volatility.

Environmental and infrastructural challenges and shortage of workforce in the construction sector could affect project timelines and cost and this can be risky as it may cause delays in delivering the project on time, further leading to legal complications. Other challenges include increased price of construction materials, lack of resources, unavailability of land, as well as the complex procedure to acquire land.

The Company is mainly dealing in sale of vacant plots, in the outskirts of Chennai and its suburbs. Till such time the metro rail project, other infrastructure and road development projects are fully established, the demand for vacant plots may not be robust.

With banks setting stringent norms for real estate lending, it is difficult for developers to finance their projects. Yet another concern is liquidity, if the asset is not being sold within the set timeframe, it will result in loss for the developer.

F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company has in place, adequate internal control systems and procedures commensurate with the size and nature of our business. These procedures are designed to ensure that:

An effective and adequate internal control environment is maintained across the Company. All assets and resources are acquired economically, used efficiently and are adequately protected.

Significant financial, managerial and operating information is accurate, reliable and is provided timely, and All internal policies and statutory guidelines are complied with.

G. KEY FINANCIAL RATIOS:

The particulars of key financial ratios are mentioned in the notes forming part of the financial statements.

H. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company is continuously endeavoring to align the employees objectives with the business objectives of the organization through its policies, process and other development initiatives to achieve its organizational goals. Industrial relations have been cordial.