KCD Industries India Ltd Management Discussions

(Pursuant to Regulation 34(2)(e) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015)

COMPANY OVERVIEW:

At KCD we have sustained success through the strength and expertise of our people, providing innovative construction solutions to complex infrastructure projects across PAN India. Our greatest competitive advantage is the expertise and passion of our people. We are motivated to achieve the elements needed to provide project success and build structures and roadways that will leave a lasting impression for our clients, our society, and our communities. Your Companys diverse portfolio includes Industrial, Infrastructure, Commercial, Residential, Land Development Projects & Government services. Our vision is to be the most trusted partner for our customers by consistently delivering excellence - bringing together the knowledge, expertise, and skills of our people.

INDUSTRY OVERVIEW:

The real estate sector is one of the most globally recognized sectors. It comprises of four subsectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. Real estate in India, a pivotal driver of the countrys economy, has witnessed remarkable evolution and growth in recent years.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It was also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term.

Overall, the national real estate market is poised for a period of consolidation. Stable Prices and Strategic Shift in demand will set the stage for sustainable growth in 2024-25 and beyond.

FINANCIAL PERFORMANCE:

(Amt. in Lakhs)

Particulars	Standalone
	As on 31st March 2025	As on 31st March 2024
Total Income	356.74	2164.45
Total Expenses	325.82	1812.38
Profit(loss) before tax		352.07
(-) Tax Expenses	9.79	96.47
Profit/(loss) for the year	21.13	255.60
EPS	0.08	2.556

ACCOUNTING METHOD:

The above figures are extracted from the Annual Audited Financial Statements prepared in accordance with the Indian Accounting Standards (“Ind AS”) as notified under Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Accounts) Rules, 2014 and other relevant provisions of the Act and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

OUTLOOK:

Going forward, the country is likely to remain the worlds fastest-growing major economy, driven by growing demand, moderate inflation, stable interest rate regime and robust foreign exchange reserves. The Governments investments in both physical and digital infrastructure, coupled with measures to increase manufacturing have strengthened the supply side. Together, these developments are likely to provide an impetus to the countrys economic activity. The Company maintains a strong focus on gaining significant opportunities and aiding prospective clients in shaping their Infrastructure future.

HUMAN RESOURCE DEVELOPMENT:

The Company places a high priority on developing a discrimination free environment that increases diversity and inclusion among its employees. The Company recognizes and respects the varied characteristics, experiences, needs, and aspirations within its workforce. In line with its commitment to deliver superior performance through its dedicated, capable, and agile workforce in all spheres of business, the company has focused on Collaboration at work, capability enhancement systems, and new ways of Learning & Development and Work-Life Balance to ensure higher productivity.

The Companys primary focus is to provide a professional work culture that fosters innovation, ensures high performance, and empowers employees to grow and develop individually. The Company strives to become a leader in all the businesses it operates in and places a strong emphasis on enhancing employee capabilities through training.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

A well-established, independent, multi-disciplinary Internal Audit team operates in line with governance best practices. It reviews and reports to management and the Audit Committee about compliance with internal controls and the efficiency and effectiveness of operations as well as the key process risks. The Company has in place adequate internal financial controls with reference to Financial Statements and such controls were operating effectively as at 31^st March 2025. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations. During the year, such controls were tested and no reportable weaknesses in the design or operations were observed.

RISK AND CONCERNS:

The Company is dedicated to identifying and managing the risks it is exposed to, both internal and external, and has put in place mechanisms to handle the same proactively and competently. The Company also recognizes that these risks could adversely affect its ability to create value for all stakeholders and has taken steps to mitigate the same. Some of the major risks involved mentioned hereunder:

i. Industry Cyclicality

The real estate market is inherently a cyclical market and is affected by macroeconomic conditions, changes in applicable governmental schemes, changes in supply and demand for projects, availability of consumer financing and illiquidity. Your Company has attempted to hedge against the inherent risks through a business model comprising owned projects, joint ventures, residential platforms, and development management through a pan-India presence.

ii. Statutory Approvals

The real estate sector in India is heavily regulated by the central, state and local governments. Real estate developers are required to comply with a number of laws and regulations, including policies and procedures established and implemented by local authorities in relation to land acquisition, transfer of property, registration and

iii. Construction Risk

• Design Risk

• Environmental Risk

• Procurement Risk

• Sub-Contractors Risk

• Technology Risk.

• Design Risk

• Disputes between labors

• Changing sequences in construction activity

• Non availability of resources

• Change in quantities of work

• In Time work permissions for executing work Safety of workers

• Stoppage of work due to medical outbreak

• Delay in Land acquisitions and hand over

• Legal battles for disputes

iv. Environmental Risk:

• Impact of weather condition on completion of project

• Pollution by construction waste

• Procedure to facilitate construction waste clean-up or disposal.

v. Financial Risk:

• Delay from clients to release funds

• Unprecedented delay in executing of project

• Interest service costs.

• Change in Legislation leading to considerable financial outflow.

• Delay in procurement of funds for taking up the project

OPPURTUNITIES & THREATS

KCD is an Integrated Real Estate and Infrastructure company with inherent strengths of experienced management team with broad geographic and operational base. It has an execution expertise over diversified array of projects and being considered as one stop shop for end to end project execution.

a. Growing Competition of Indian industry due to focus on efficient and quality.

b. Vast export marked to explore.

c. Growing recognition of “Made in India” brand in global market

d. Major growth through outscoring opportunities

e. Support from the Government and better financial support from players of the Financial Eco System.

f. Awareness among the society at large for a better sustainable growth of the economy and pressure from world institutions to enable the economy move towards clean and green energy.

CAUTIONARY NOTE

Statements in this Directors Report and Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operations include raw material availability and its prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, Tax regimes, economic developments within India and the countries in which the Company conducts business and other ancillary factors.