Purohit Construction Ltd Management Discussions

ANNEXURE 3

A. INTRODUCTION:

Purohit Construction Limited, established in 1991, is one of Gujarats leading construction companies, with over three decades of expertise in civil construction and infrastructure development. Leveraging its engineering experience, skilled manpower, and robust project execution capabilities, the Company successfully undertakes projects both independently and through strategic subcontracting partnerships.

B. ECONOMIC OVERVIEW:

The global economy is expected to maintain stable growth in 2025, driven by easing inflationary pressures, improved consumer sentiment, and renewed investor confidence. Developed economies, including the US, have largely recovered from pandemic-era employment challenges, with rising disposable incomes expected to further stimulate growth.

Emerging economies, led by infrastructure and manufacturing investments, are also on a stable growth trajectory. According to the IMF World Economic Outlook (April 2025), global GDP is projected to grow at 2.8% in CY25, with developing economies like India expected to register growth of 6.2%.

(Source - IMF World Economic Outlook, April, 2025)

C. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian real estate sector, the nations second-largest employment generator, is projected to reach USD 1 trillion by 2030. The sector has demonstrated resilience in 2025, supported by strong demand across residential and commercial segments. Festive season demand and positive consumer sentiment have contributed to a robust recovery, despite macroeconomic headwinds.

D. STRENGTHS & OPPORTUNITIES:

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term.

Your Company continues to capitalize on the market opportunities by leveraging its key strengths like Brand Reputation, Transparency, outsourcing, significant leveraging opportunity.

The infrastructure and construction market in India are particularly affected in an atmosphere of lack of complete inertia in new project development and execution. Issues like environment clearances and financial difficulties for large developers have led to very little new opportunities in terms of infrastructure related development.

E THREATS & CHALLENGES:

While we are well prepared to capture the opportunities, few challenges in the near to medium term may have an impact on performance:

• Wars,

• Unanticipated delays in project approvals;

• Availability of accomplished and trained labour force

• Concerns due to ongoing pandemic situation;

• Increased cost of manpower;

• Rising cost of construction lead by increase in commodity prices;

• Over regulated environment.

F. RISKS AND CONCERNS

Operating in a highly regulated and dynamic industry, the Company has implemented a robust risk management framework to mitigate financial, operational, strategic, and regulatory risks

G DISCUSSION ON FINANCIAL PERFORMANCE:

(Rs. in Lakhs)

Particulars	For the year ended 31s1 March,2025	For the year ended 31st March,2024
Total Income (incl. Other Income)	12.03	0.05
Financial Expenses	0.00	0.04
Depreciation	0.70	0.70
Profit/ (Loss) Before Taxation	-26.61	-43.98
Exceptional Item	-	-
Less: Provision for Income Tax	-	-
Less: Provision for Deferred Tax	-1.39	2.25
Profit After Taxation	-25.21	-46.24
Less: Prior Period adjustment	-	-
Less : Other Comprehensive Income	-0.32	-0.28
Total Comprehensive Income	-25.53	-46.52
Surplus Brought Forward	(240.56)	(194.04)
Net Balance carried to Balance Sheet	(266.09)	(240.56)

The total income of the Company has been increased from Rs. 0.05 Lakh in previous year to Rs. 12.03 Lakh in current year. Consequently, the Loss before tax of the Company has been decrease from Rs. 43.98 Lakhs to Rs. 26.61 Lakhs and Loss after Tax from Rs. (46.24) Lakhs to Rs. (25.21) Lakhs in the current financial year.

H. INTERNAL CONTROL SYSTEM & THEIR ADEQUACY:

The Company maintains comprehensive internal controls to safeguard assets, ensure accurate financial reporting, and prevent unauthorized use. Internal audits are conducted by an independent firm of Chartered Accountants, with periodic reviews by management and oversight by the Audit Committee. The Vigil Mechanism (Whistle Blower Policy) allows stakeholders to report unethical practices confidentially.

I. KEY FINANCIAL RATIO ANALYSIS:

A comparative table showing synopsis of FY 2023-24 versus FY 2022-23 of Key Financial Ratio is provided below:

Sr. No.	Type of Financial Ratios	FY 2024-25	FY 2023-24	Explanation,
1	Debtor Turnover Ratio (In Days)	11.50	N.A.	As no sales reported during previous financial year.
2	Inventory Turnover Ratio (Month)	N.A.	N.A.	No Inventory at year end for current year as well as previous financial year.
3	Interest Coverage Ratio	N.A.	N.A.	No Interest paid during the current year as well as previous financial year
4	Current Ratio	6.07	11.66	Due to decrease in Debtors and increase in borrowings
5	Debt Equity Ratio	0.09	0.03	There was no loan taken last year
6	Operating Profit Margin (%)	-2.22	NA	Operating profit Margin declines as the operating expenses are higher than sales generated during the year.
7	Net Profit Margin (%)	-2.13	NA	There were no sales in previous financial year. Also, during the current financial year, ratio decline due to operating expenses is higher that revenue generated.

J. HUMAN RESOURCES DEVELOPMENT:

The Company fosters a professional, respectful, and collaborative work environment. Recognizing that human resources are its most valuable asset, the Company ensures optimal resource allocation, skill enhancement, and efficient project execution. Special emphasis is placed on employee engagement, training, and retention to maintain productivity and ensure timely project completion.

K. CAUTIONARY STATEMENT:

This report contains forward-looking statements subject to risks and uncertainties, including but not limited to economic fluctuations, competitive pressures, regulatory changes, skilled manpower availability, and cost overruns. Actual results may differ materially from those expressed herein.

	FOR AND ON BEHALF OF THE BOARD
	FOR PUROHIT CONSTRUCTION LIMITED
	Narendra Purohit
Date : 14/08/2025	Chairman & Managing Director
Place : Ahmedabad	(DIN: 00755195)