Nimbus Projects Ltd Management Discussions

Indias real estate market is projected to reach $46.76 trillion by the end of 2025 and $1 trillion by 2030, with exponential growth expected through 2047. The demand for residential, commercial, and industrial spaces continues to rise, driven by urban expansion, population growth, and increasing incomes. While Indias market is expanding rapidly, the United States leads globally, with a projected real estate market value of $136.6 trillion in 2025.

The demand for residential, commercial, and industrial spaces will drive further growth in the real estate market. Rising population, urban growth, and rising incomes have fuelled this growth, boosting new projects and property deals.

Individuals with high net worth seek premium properties offering exclusive, state-of-the-art amenities. This has given rise to a luxury segment catering to the demand for high-quality assets representing the individuals lifestyle. Commercial real estate also sees a boom as the IT industry, startups, and MNCs seek modern office spaces, driving demand in this sector.

The urban population in India is expected to rise by 416 million by 2050. This urban growth drives high demand for housing, commercial spaces, and infrastructure. Due to increased urban migration for improved jobs and increased quality of life, nuclear households are on the rise.

Additionally, urban areas require substantial additional residences, large-scale business establishments, and updated public utilities to accommodate the growing population. The increase in need is changing the real estate sector in India, causing developers and investors to prioritize creative, eco-friendly, and cost-effective options.

Government efforts to improve infrastructure have a notable effect on the growth of the real estate sector. Initiatives such as expanding metro rail systems, upgrading road infrastructure, and developing smart cities increase connectivity and accessibility, making regions more appealing for real estate investmen

Global investors are drawn by the relaxation of foreign direct investment (FDI) norms and attractive returns. These investments bring in capital and expertise, boosting the development of high-quality projects and further fueling market growth.

The desire for comprehensive lifestyle projects is rising as buyers seek self-sustaining communities that incorporate housing, business, and leisure facilities within one complex. These neighborhoods are popular because they offer a convenient and well-rounded living experience.

Real estate remains a favored investmentoption due to itspotential for stable returns and capital appreciation. Investors viewit asa safeasset class that can hedge againstinflation and economic uncertainties, sustaining interestand investment in the sector.

Improved infrastructure, strategic locations, and government incentives drive new real estate hotspots. These hotspots offer attractive investment opportunities, further fueling the real estate markets growth.

Low interest rates simplify financing for homebuyers, driving demand for properties. Favorable government policies, such as tax incentives and property management regulations, actively shape the market. Additionally, technological advancements like virtual property tours and smart home technology enhance the markets effectiveness, transparency, and appeal.

As discussed above, government policies and reforms directly influence real estate growth and can reshape the sector. With that in mind,lets explore theregulatory changes and policiesthat helped revive and grow Indias real estate sector.

Policy Reforms and Regulatory Environment

Because of significant policy reforms and regulatory changes, Indias real estate market has recovered and multiplied post-pandemic. These measures have been fundamental in shaping the sector and promoting transparency, efficiency, and growth.

A. Real Estate (Regulation and Development) Act (RERA):

The Indian government launched RERA in March 2016 to enhance transparency and accountability in the real estate sector. It guarantees the protection of homebuyers interests by ensuring timely delivery and project quality and offering a rapid resolution for disputes. Below are some of the critical measures implemented in 2024-25:

These measures seek to enhance transparency, accountability, and buyer protection.

B. Amendment to theBenami T ransactions Act

The 2016 amendment made the Benami Transactions (Prohibition) Act more effective in combating black money and corruption. This law targets deceitful property purchases made under fictitious names. The amendment has enhanced enforcement, resulting in a cleaner and more transparent real estate market.

Some of the most recent changes include:

C. Goods and Services Tax (GST)

Launched on July 1, 2017, GST simplified the tax structure for homebuyers by replacing multiple taxes with a single tax. This reform made homebuying more straightforward and reduced the overall tax burden on buyers, thus increasing affordability and boosting the real estate market. The key updates for 2024 include:

MARKET Outlook

Asof 2024- 25,the Indianreal estate sectoroffers significant investment prospects despitea recovering economy and changing market conditions. Key trends and indicators indicate strong growth prospects:

There is still a high demand for affordable housing, particularly in large cities. Middle-income housing is experiencing notable expansion due to increased urbanization and higher incomes. The high-end housing category is becoming more popular as urban residents see their incomes grow and aim for improved quality of living.

Despite the global trend towards remote work, Indias office market remains resilient. The demand for office space in major cities remains strong due to the IT/BPM sector and global capability centers, which keep the commercial sector robust.

The warehousing and logistics industries are rapidly growing because of the increase in domestic consumption and the growth of organized retail. The enhanced supply chain resilience post-COVID has further emphasized the need for modern warehouse solutions.

Challenges in the Real estate market in India

The real estate industry significantly influences Indias economic development by contributing to job creation and the national GDP. However, it faces several challenges that affect its progress and stability. We will explore the major challenges in real estate growth in India and briefly discuss strategies to overcome them, ensuring long-term success in this dynamic market.

Due to economic instability and market fluctuations, real estate growth faces several obstacles. Quick shifts in financial circumstances candiminish property needs, halt propertyprices, and boost competition. Real estate agents must create flexible plans, such as diversifying portfolios and concentrating on constantly sought-after properties like rental units, to reduce these effects and navigate unpredictable times.

Another significant obstacle is maneuvering through the intricate legal terrain of real estate in India. Diverse regulations in different areas, along with complex zoning laws, property rights issues, and environmental rules, create a challenging process. Hiring legal professionals, carrying out extensive due diligence, and being transparent with customers are key actions needed to guarantee adherence to regulations and establish confidence in the industry.

Homebuyers and developers face a challenge with the potential for increasing interest rates. Rising interest rates can slow the real estate market, making obtaining loans and buying properties more difficult. To address this issue, it is essential to explore creative financial solutions and instruments to sustain market activity and affordability.

Political uncertainty and policy changes can significantly impact the real estate market. Industry professionals must stay alert to shifts in the political landscape and adapt their strategies accordingly. Building resilient business models and maintaining open communication with stakeholders is crucial to navigating periods of political instability.

Affordability is a persistent issue, especially in urban areas where property prices often outpace income growth. This widening gap makes housing less accessible to many people. To address this challenge, real estate professionals must explore alternative financing options, promote affordable housing initiatives, and implement creative urban planning strategies.

Rapid urbanization in India often outpaces infrastructure development, leading to congestion and inadequate city facilities. Real estate professionals must work closely with local authorities to navigate these challenges and ensure the creation of sustainable and well-connected urban spaces that can meet the needs of a growing population.

Awareness of real estate growth challenges helps you anticipate changes, adapt to market conditions, and develop risk mitigation strategies.

a) Standalone Results of Operation: During the financial year under review, your Companys standalone revenue from operations is Rs. 151.12 Lakh as compared to revenue of Rs. 586.98 Lakh in the last year. The standalone loss of your Company is Rs. 1274.92 Lakh as compared to the profit of Rs. 513.96 Lakh in the last year.

b) Consolidated Results of Operation: During the financial year under review, your Company has consolidated its Financial Statement w.r.t. to Subsidiaries viz N.N. Financial Services Private Limited, Pelican Realty Ventures Private Limited, its partnerships firms (IITL-Nimbus, The Express Park View & IITL-Nimbus, The Palm Village and IITL-Nimbus, The Hyde Park, Noida) and Associate Companies viz. Capital Infraprojects Private Limited, Brothers Trading Private Limited, Nimbus (India) Limited and World Resorts Limited.

Due to change in accounting policies, IITL-Nimbus, The Express Park View and IITL-Nimbus, The Palm Village, the Joint partnership firms of the Company wherein the Company holds 95% of partners capital contribution, the financial statements of these firms have been consolidated like subsidiaries.

The Companyhas recorded a consolidated revenue fromoperations of Rs. 17829.71 Lakhin the current financial year as compared to revenue of Rs. 717.75 Lakh in the last year. The consolidated profit of your Company is Rs. 6367.50 Lakh in the current financial year compared to the profit of Rs. 9312.14 Lakh in last financial year.

The individual performance of these subsidiaries, firms and associate companies has been discussed under the relevant head of this report.

RATIO:

Note: Explanation for variance in the ratio exceeding 25% have been mentioned in the Note no. 45 of Financial Statements.

BUSINESS OVERVIEW OF THE COMPANY

The Company is engaged in construction of residential flats through Special Purpose Vehicles (SPVs) and these SPVs have been allotted plots of land on long term lease, under Builders Residential Scheme (BRS) of the New Okhla Industrial Development Authority (NOIDA), Greater Noida Industrial Development Authority (GNIDA) and Yamuna Expressway Authority (YEA). The total lease hold area allotted to the Company along with SPVs is around 2,65,000 sq. meters and the projects are under various stages of construction.

NEW PROJECT UNDERTAKEN BY THE COMPANY

M/s Sunworld Residency Private Limited (‘SRPL) have been allotted a piece of land over Plot No GH-01/C, Sector-168, Noida Distt. Gautambudh Nagar, Uttar Pradesh covering an area of 40,221.26 sq. mtrs of land by Noida Authority. Lease Deed of the said land was registered on 01/09/2010 at the office of Sub Registrar Noida. SRPL commenced the development & construction of the project on the said plot under the name & style of "Sunworld Arista" in accordance with the sanction plans approved by the Authority. However, due to several business challenges, including unfavorable market conditions & financial constraints SRPL was unable to continue with the development of phase-2 of the project having RERA Regn No. UPRERAPRJ11625 consisting of Towers 5,7,8,9 & club of the project. Area under Development is 10957 Sq. Mtrs. The development of project had been stalled & suspended since from a long time and SRPL was exploring potential means to revive the stalled project. Nimbus Projects Limited agreed to acquire the project in respect to the development & sales rights over the undeveloped portion of the project consisting of Towers 5,7,8,9 and club having RERA Reg. no. UPRERAPRJ11625. On 04.10.2024, Joint Development Agreement withSRPL was executed in the terms of legacy stalled scheme policy dated July 2023, formulated by the Amitabh Kant Committee & sanctioned by the Govt. of Uttar Pradesh. The Agreement was registered before the Sub Regsitrar-1, Gautam buddha Nagar NOIDA Authority in its 215th Board Meeting held on 26/10/2024 recognized the Company to complete the stalled project of SRPL at plot no. GH01/C, Sector-168, Noida. Further Noida Authority vide letter no. NOIDA/MU.VA.NA/2024/III-268/270 dated 11/11/2024 has extended the validity of approved map & layout up to 23/01/2030. Pursuant to Authority approval, Company jointly with Sunworld Residency Private Limited filed an application before Real Estate Regulatory authority, Lucknow for adding the name of the company as promoter in the project and to extend the end date of the project up to 23.01.2030. RERA vide Letter dated 19.07.2025 recognized Nimbus Projects Limited as a Co-Promoter in the Project "Sunworld Arista (Ph-2, T-5,7,8,9) Club. Further RERA vide Letter dated 22.07.2025 extended the end date of the project upto 23.01.2030 & directed that Nimbus Projects Limited shall act as a Lead Promoter in the project and shall be responsible to Develop the Project.

PROJECTS DEVELOPED BY THE COMPANY

a) EXPRESS PARK VIEW- I

The Company is pleased to deliver its very first project namely "Express Park View" situated at Plot 10B, Sector CHI V, Greater Noida. Flats are being delivered to the allottees and the process of execution of Sub-Lease Deed in favour of the allottees is in progress and till March 31, 2025 the Company has executed 304 Sub-Lease Deeds in favour of the respectiveallottees. This Project consists of 332 flats in totality, which is completely sold out as on 31.03.2025.

b) THE HYDE PARK

In partnership with IITL Projects Limited, the Company has jointly developed the project "The Hyde Park". IITL Projects Limited has made an exit from the partnership on 16.01.2024. Nimbus Propmart Private Limited has been admitted as a newpartner in the partnership firm "M/s. IITL-Nimbus, The Hyde Park, Noida w.e.f 16.01.2024 sharing 50:50 profit/loss in the firm. The Hyde Park, Noida, offers a prime location with convenient access to a metro station, an expressway, shopping complexes, an educational hub, and a hospital. It is surrounded by a large cluster of upscale housing projects on one side and green areas on the other. Spanning across an area of approximately 60,348.53 square meters in Sector 78, Noida, this project comprises a total of 2,092 flats. The construction of the entire project is finished, and the completion certificate has been obtained for the 23 residential towers and a commercial complex. The possession of flats and commercial shops is currently underway, with 2,091 flats & 58 shops already sold out and out of which 2091 flat owners and 58 shop owners havetakenphysical possession. As of March 31, 2025 the firm has executed 2,054 Sub-Lease Deeds in favor of the allottees.

Additionally, the maintenance of common areas and facilities has been entrusted to the Resident Welfare Association, established in accordance with the provisions of the Societies Registration Act, 1860.

c) THE GOLDEN PALMS

The Golden Palms, located in Noida, boosts several major highlights including its proximity to the IT corridor, malls, and a golf course. Living at Golden Palms offers a luxurious lifestyle with a wide range of amenities, surrounded by 80% greenery adorned with various palms, flowers, hedges, and ground cover. The project occupies a leasehold area of approximately 39,999.76 square meters and is situated at Plot No - GH - 01/E, Sector 168, Noida. It comprises approximately 1,403 flats & 52 commercial shops of various sizes, including studio apartments.

The construction of the entire project is completed, and the necessary completion certificate has been obtained for the 13 residential towers, which also include a commercial area. The possession of flats and commercial shops is currently in full swing. As of March 2025, the Company has sold 1,393 flats and 49 shops and out of which 1393 flat owners and 48 shop owners have takenphysical possession oftheir flats &shops. Furthermore,as of March31, 2025, theCompany hasexecuted 1,291 sub-lease deeds in favour of the allottees.

Additionally, the maintenance of common areas and facilities has been entrusted to the Resident Welfare Association, established in accordance with the provisions of the Societies Registration Act, 1860.

d) THEEXPRESS PARK VIEW II

In partnership with IITL Projects Limited, the Company has jointly been developing the project "The Express Park View-II". IITL Projects Limited has made an exit from the partnership on 06.10.2023. Nimbus Propmart Private Limited has been admitted as a new partner in the partnership firm "M/s. IITL-Nimbus, The Express Park View w.e.f 06.10.2023 sharing profit/ loss of the firm in the ratio of their capital contribution in the firm. In this project, a total of 10 towers (High Rise) have been constructed by the firm, and Completion Certificate for all the ten towers has been duly received from Competent Authority. The project comprises of total no. of 1320 flats out of which 1266 flats has been sold out till March, 2025 and 1258 allottees have taken possession of flats till March 31, 2025. As on 31st March 2025 firm has executed 1211 Sub-Lease Deed in favour of the allottees.

The commercial area in the project in the name of "The Park Street" consists of 39 Commercial Shops which are 100% sold out till March 31, 2024. The commercial area is separately registered as independent project under Real Estate (Regulation & Development) Act, 2016. The registration no. of the project is UPRERAPRG180127. The firm has obtained the completion certificate for the same from the competent authority.

The firm has, on March 31, 2021, had launched the Low Rise Apartments in the Project. It is separately registered as independent project under Real Estate (Regulation & Development) Act, 2016. The Registration No. of the project is UPRERAPRG555694. The extended date of Completion of the Project is January 23, 2025. Firm has applied for completion certificate. The projects consist of 16 Low rise Towers (G+4) having 310 Low rise apartments. Firm has already booked 243 flats in the project till March 31, 2025.

e) NIMBUS THE PALM VILLAGE

In collaboration with IITL Projects Limited, the Company has jointly been developing the project "Nimbus the Palm village". IITL Projects Limited has made an exit from the partnership on 16.10.2023. Nimbus Propmart Private Limited has been admitted as a new partner in the partnership firm "M/s. IITL-Nimbus, The Palm Village w.e.f 16.10.2023 sharing profit/loss of the firm in the ratio of their capital contribution in the firm at any time.

The layout plans of the project has been approved by the competent authority (YEIDA). Other necessary permissions have been obtained from the concerned departments. The firm has also obtained the RERA Registration No. from UP-RERA vide Registration No. UPRERAPRJ558356/04/2024 dated 17.04.2024. The booking of flats/shop in the project is open for sale in market.

NimbusThe PalmVillage islocated at Yamunaexpressway which offers a primelocation near to upcoming Noida international airport, well connected to the Delhi-Mumbai Expressway. The project is located opposite to International cricket stadium & F1 & Moto GP Track.

The project offers 474 Nos of 3 BHK flats, majority with an approx. size of 1128 sq. fts carpet area in 48 elegant independent floors, constructed within a low rise G+4 structure and 702 Nos of One BHK Flats, majority with an approx. size of 248 sq. fts carpet area in 2 majestic High Rise Towers of 13 floors each. Project also offers 44 shops of various sizes. Firm has booked 810 flats in the project till March 31, 2025.

PROJECTS DEVELOPED BY SUBSIDIARY COMPANY, i.e. PELICAN REALTY VENTURES PRIVATE LIMITED

Pursuant to scheme of arrangement, M/s. Pelican Realty Venture Private Limited, a company incorporated under The Companies Act, 1956 having its registered office at 1, Signature Apartment,Amirtha Garden, Chinna kottakuppam Vanur Taluk, Vanur, Villupuram, Vanur, Tamil Nadu, India, 605104 has now become the subsidiary of Nimbus Projects Limited. Pelican Realty Ventures Private Limited is engaged in the business of real estate activity and is developing a Residential Township Project in Puducherry as "Pelican Belfort Extension( Sri Garuda Avenue)".

The project "Pelican Belfort Extension (Sri Garuda Avenue)" is situated near Mahatma Gandhi Medical College & Research Institute, a well known institution in Puducherry. The layout is located in between three Highways on three sides and adjacent to Bahour (lake), a tourist spot making the township in demand. The project is approved by the Puducherry Planning Authority & is registered with Puducherry Real Estate Regulatory Authority. Under the project the company is selling residential & other plots of varying sizes. The Total Project area approved by authority is 98,120.94 Sq. mts of Land. Total No. of plots in the project are 394 aggregating to 68,826.41 sq. mts of Land. Road area of 21786.43Sqm and OSR area of 7508.10 sq. mts has been gifted to Bahour Commune Panchayat. During the financial Year 2024-25 the company has sold 36 plots aggregating to 62737 Sqft of plot area. The Development of the Layout which includes STP Lines, Electricity Poles & lines and Road work are in Process. The layout is in good demand and the Company look forward to complete sale of all plots in the near future.

SWOT ANALYSIS

In todays fast-evolving real estate market, conducting a thorough SWOT analysis—identifying the Strengths, Weaknesses, Opportunities, and Threats related to your business—is more critical than ever. This comprehensive approach aids real estate professionals in navigating the complexities of the market, empowering them to make informed decisions, capitalize on emerging trends, and mitigate potential risks.

STRENGTHS

Your strength in real estate isnt just about having an extensive portfolio; its about understanding what gives you a competitive edge. It could be your local market knowledge, a robust network of contractors, or an intelligent eye for potential renovations. The key is to harness these strengths and use them to your advantage.

To pinpoint your strengths, self-reflection, and market comparison are essential. Consider the qualities that have led to previous successes and assess the feedback from clients, partners, and industry peers.

Here arepotential strengths:

WEAKNESSES

Vulnerabilities in the real estate endeavors need not be Achilles heel if we can address them before they impede progress. Identifying your weaknesses is the first step in fortifying your position, whether its a limited online presence or a lack of diversification in your investments. An honest appraisal of recent setbacks and an evaluation of your competitors can reveal areas in need of improvement. Here are potential weaknesses:

OPPORTUNITIES

The real estate landscape is fertile with opportunities for those with an adept eye. From emerging markets to advancements in real estate potential growth avenues are abundant. Staying informed about market trends, regulatory changes, and technological advancements can help you spot opportunities early.

Here are potential opportunities:

THREATS

In the jungle of real estate, threats come in many forms—economic downturns, regulatory changes, or fierce market competition. Recognizing these threats is vital in formulating a defense that preserves your investments. Regular scenario planning, market analysis, and continuous competitor surveillance can help identify potential threats.

Here are the threats

OUR VISION

Our vision revolves around our motto "ENDLESS EFFORTS. TO MAKE LIFE BETTER."

WE STRIVE TO:

OUR MISSION:

OUR GROWTH DRIVERS:

HUMAN RESOURCES

The Company has a dynamic team of highly qualified professionals and proficient employees and as on March 31, 2025, the Company has 8 (Eight) employees on its payroll.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Company has adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements. The Internal Auditors of the company checks and verifies the internal control and monitors them in accordance with policy adopted by the company. The Company continues to ensure proper and adequate systems and procedures commensurate with its size and nature of its business.

CAUTIONARY STATEMENT