Narendra Properties Ltd Management Discussions

A. Industry Structure and Developments

Your Company is a real estate property development company undertaking construction, promotion and development projects of residential and commercial multi-storied apartment complexes. The operations of the Company are presently confined to localities in and around Chennai and its suburbs.

B. Segment-wise Performance

The activities of your Company fall under single segment namely Construction of Buildings (Residential & Commercial).

C. Financial Performance with Respect to Operational Performance

Your Company reported a total income of Rs. 902.266 lakhs during the year ended 31^st March 2025 as against Rs. 1,949.027 lakhs during the previous year. The Profit after tax was Rs. 92.345 lakhs for the year ended 31.3.2025 as against Profit after tax of Rs. 224.646 lakhs achieved during the previous year.

The value of contract work-in-progress of projects at cost which are at various stages of progress as on 31^st March 2025 is Rs. 1,415.126 lakhs as against Rs. 1,725.548 lakhs during the previous year and the same is disclosed as inventories in the Balance sheet as on 31^st March 2025.

D. Outlook

Your Company will be concentrating in the execution of the existing projects on hand. Launch of further projects depends upon the demand in the present market.

E. Risks & Concerns

The primary concern is fluctuating market conditions that affect the demand in the luxury market segment.

F. Internal Control Systems

Your company has a proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from un-authorised use or disposition.

G. Human resources and industrial relations

Your company has well qualified and experienced technical, financial and administrative staff to cater to its business requirements. The relations with the employees of the company remained cordial throughout the year.

H. Significant changes in Key Financial Ratios

The Key Financial Ratios applicable to the operations of the Company and changes thereon along with the explanation is furnished in Note 30 annexed to Balance sheet as on 31-03-2025.

Disclosure of Accounting Treatment

The Company has not made any alternative treatment which is in variance with the Indian Accounting Standard. The treatment of various financial items vis-?-vis the prescribed accounting standard is disclosed Note 1 to 3 annexed to Financial Statements which is self-explanatory.