Gyan Developers & Builders Ltd Management Discussions.
a. INDUSTRY STRUCTURE & DEVELOPMENT:
The real estate sector is one of the most globally recognized sectors. Real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.
Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 per cent of the countrys GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.
The Government of India along with the governments of the respective states has taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for the real estate companies.
c. SEGMENT-WISE ANALYSIS
Your Company is dealing in only one segment i.e., buying and selling of vacant land.
In comparison to markets such as Mumbai and New Delhi, Chennai is still touted as one of the emerging market and is far off from being saturated. The future scope is believed to be tremendous.The Tamil Nadu government has said that it would give impetus to the software-as-a-service (SaaS) sector to make the state a global SaaS destination. The state government is expecting an increased investment from the IT and IT-enabled services (ITeS) sectors in the Global Investors Meet (GIM) 2019.This has naturally led to higher demand for real estate from professionals and businessmen throughout the city along with those migrating here for professional pursuits.Southern Chennai suburbs are expected to see huge demand for real estate in the near future courtesy the above mentioned measures taken by the Government
e. THREATS, RISKS, AND CONCERNS
In some of the areas such as GST and OMR corridor there has been a rise in unsold units. With increased trend of investing with tier 1 and 2 developers, there could be downward pressure on other small time developers. Rupee being weak in comparison to USD, labour cost, inflation has also been major concern for the growth of Company.
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. 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 organisation through its HR policies, process and other development initiatives to achieve its organizational goals. Industrial relations have been cordial.
By order of the Board for GYAN DEVELOPERS & BUILDERS LIMITED
|T. Ashok Raj||Sunita Mahendar Raj|
|Place : Chennai||Managing Director.||Director & CFO|
|Date : 31-07-2019||(DIN: 00575471)||(DIN: 01751554)|