Yogi Ltd Management Discussions

INDIAN INDUSTRY STRUCTURE AND DEVELOPMENT:

The Indian economy continues to demonstrate resilience, emerging as one of the fastest-growing major economies in the world despite global headwinds. Supported by government reforms, strong domestic demand, increasing digital adoption, and infrastructure development, India has positioned itself as a preferred investment destination. The industry landscape is evolving rapidly with rising consumption patterns, technological advancements, and a growing emphasis on sustainability and innovation. Sectors such as manufacturing, services, renewable energy, and technology-enabled solutions are witnessing accelerated growth, driven by policy support under initiatives like "Make in India," "Digital India," and "Atmanirbhar Bharat."

Despite challenges arising from inflationary pressures, supply chain disruptions, and global uncertainties, the Indian industry remains robust, offeringsignificant adaptive strategies.

Against this backdrop, your Company recorded a remarkable turnaround during the year under review, posting a net profit of Rs. 145.98 lakhs as compared to a loss of Rs. 38.11 reflects the effectiveness of the Companys strategic initiatives, operational discipline, and prudent financial management. By focusing on sustainable growth, cost optimization, and value-driven decision-making, the Company has not only strengthened its position in a challenging business environment but also laid a solid foundation for future expansion and long-term stakeholder value creation.

The Government of India remains steadfast in its commitment to fostering the healthy growth of the capital market, recognizing it as a key driver of economic development. Policy reforms and proactive measures by regulatory bodies continue to enhance transparency, strengthen governance standards, and restore investor confidence. This evolving ecosystem presents significant opportunities for businesses with strong fundamentals to expand, innovate, and deliver sustainable value.

At the same time, the business environment is not without challenges. Your Company remains vigilant to potential threats arising from intensifying competition, dynamic industry trends, cost fluctuations, and evolving regulatory frameworks. By adopting a proactive approach, leveraging operational efficiencies, and aligning strategies with market realities, the Company continues to safeguard its competitive position while preparing itself to capture emerging opportunities in the sector.

The business operations of the Company are primarily classified into two segments: Real Estate and Trading in Machinery.

The Real Estate segment continues to be the core focus of the Companys activities. Supported by favorable government policies, increasing urbanization, and rising demand for residential as well as commercial spaces, the sector offers significant opportunities for sustainable growth. The Company has been strategically investing in quality projects with a focus on timely execution, customer satisfaction, and value creation. By aligning its operations with evolving market trends and regulatory requirements, the Company has been able to strengthen its market presence while mitigating risks associated with cyclical fluctuations.

The Trading in Machinery segment complements the core business by diversifying revenue streams and reducing over-dependence on a single line of activity. This segment enables the Company to tap into opportunities in allied markets, ensures steady cash flows, and contributes to overall business stability. It not only supports the Companys risk management framework but also enhances its ability to withstand industry-specific challenges in the real estate domain.

Together, these two segments create a balanced and resilient business model, positioning the Company for sustainable growth while delivering value to all stakeholders.

Yogi Limited has successfully navigated past challenges and continues to focus on its core business in the real estate sector. The Company is engaged in activities such as:

1. Real estate development, contracting, and building

2. Town planning and infrastructure development

3. Acquisition and development of immovable and movable properties of all types

4. Renting, leasing, or other arrangements involving properties and assets including equipment, construction machinery, buildings, plots, vehicles, plants, ships, aircraft, vessels, computers, and other assets The Company remains committed to strengthening its presence in the real estate sector. With strategic planning and operational efficiency, there are strong grounds to believe that in FY 2025.

The external business environment continues to present uncertainties and challenges arising from global economic volatility, domestic market fluctuations, and evolving regulatory frameworks. As a financial and management services-oriented company operating within the real estate sector, Yogi Limited is exposed to multiple risks that require continuous monitoring and proactive management. Key risks include:

1. Volatile Capital Markets Fluctuations in equity and debt markets can impact investor sentiment, project funding, and overall business confidence.

2. Interest Rate Fluctuations Variations in borrowing costs directly affect project viability, customer affordability, and profitability.

3. Changes in Government Policies Regulatory amendments relating to real estate, taxation, and capital markets may influence business operations and compliance requirements.

4. Liquidity Risks Delays in collections, restricted access to credit, or mismatched cash flows can affect Companys operational flexibility.

5. Competitive Pressures Intense competition from established and emerging players in the real estate and allied segments could impact market share and margins.

The Company adopts a robust risk management framework that emphasizes early identification, continuous monitoring, and timely mitigation of risks. Strategic measures include prudent financial planning, diversification of business operations, maintaining strong relationships with financial institutions, and ensuring regulatory compliance. By adopting a proactive and resilient approach, the Company seeks to minimize potential adverse impacts while safeguarding the interests of its stakeholders and strengthening long-term sustainability.

The Company has in place a well-structured and robust internal control framework designed to ensure orderly and efficient conduct of its business operations, safeguarding of assets, adherence to statutory and regulatory compliances, and reliability of financial reporting.

Internal audits are carried out at regular intervals by an independent professional firm of Chartered Accountants. The scope of these audits covers all critical areas of operations and processes. Audit findings and recommendations are reported directly to the management, enabling timely corrective action and continuous improvement in systems and procedures.

The Audit Committee of the Board reviews the adequacy and effectiveness of the internal control environment, audit findings,and the status of implementation of recommendations on a periodic basis. This oversight mechanism ensures that risks are appropriately identified and mitigated, and that the internal control system remains aligned with the scale and complexity of the Companys operations.

The Board is of the opinion that the Companys internal control framework is adequate, commensurate with its business size and nature of operations, and provides a reasonable assurance regarding the achievement of its objectives relating to operational efficiency, compliance, and reliability of financial and management reporting.

The Company firmly believes that its people are its most valuable asset and that a motivated, workforce is central to achieving sustainable growth. Accordingly, the Company continues to prioritize initiatives for training, upskilling, and professional developmentaimedatbuilding qualifiedand competent poolof professionals capable of handling diverse and complex projects with efficiency and innovation During the year under review, focused efforts were made to enhance employee capabilities through structured training programs, mentoring, and exposure to new technologies and best practices. Emphasis was laid on cultivating a culture of performance, accountability, and continuous learning, while also fostering teamwork and cross-functional collaboration.

The Company also strives to maintain a supportive and inclusive work environment that encourages growth-oriented attitudes and prepares employees to take on emerging business challenges. Employee engagement and welfare initiatives were undertaken to strengthen motivation and retention, thereby aligning individual aspirations with organizational goals.

Industrial relations during the year remained cordial, with mutual trust and cooperation between management and employees, contributing to a productive and harmonious workplace environment.