MANAGEMENT ANALYSIS AND REVIEW REPORT A. INDUSTRY STRUCTURE & DEVELOPMENT: Real estate sector plays an important role in the Indian economy, contributing around 67% to the GDP of India and it is also one of the highest employment generating sectors. Before the global financial crisis, the domestic real estate sector was booming. After witnessing fluctuating business cycles in the last decade, the real estate sector witnessed a slowdown in FY15 due to moderate end user demand, rising inventory and high finance costs. B. 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's land banks, stable financial performance even in testing times, make it a brferred choice for customers and shareholders. Our Company tends to benefit largely from social infrastructure facilities motivating the people to move out of the city and also the low-cost land deals help to generate better margins. Moreover, with the concept of make in India and house for everyone your company foresee more demand and growth for real estate. C. SEGMENT-WISE ANALYSIS : Your Company is dealing in only one segment i.e., buying and selling of vacant land. D. OUTLOOK: India has huge potential to attract large foreign investments into real estate. With real estate reaching a point of saturation in developed countries and the demand and prices falling, global real estate players are looking at emerging economies such as India for tapping opportunities in real estate. Indian real estate will stay attractive due to its strong economic fundamentals and demographic factors. Financial year 2016 would be governed by the implementation of REIT Regulations, the proposed New Real Estate Bill. We expect financial year 2016 to be the start of growth year for the Indian economy as a whole in view of various measures being taken by the new government to boost manufacturing and infrastructure development in the country. E. THREATS, RISKS, AND CONCERNS : The company's business is significantly depends on the economic condition, government policies. The real estate sector in India is regulated by the central, state and local governments and is required to comply with numerous laws and regulations, including policies and procedures established and implemented by local authorities in relation to land acquisition, transfer of property, registration and use of land. Rising fuel prices, labour cost, inflation have also been major concern for the growth of Company. F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY Your Company has in place, adequate internal control systems and procedures commensurate with the size and nature of our business. These procedures are designed to ensure that: ? An effective and adequate internal control environment is maintained across the Company. ? All assets and resources are acquired economically, used efficiently and are adequately protected. ? Significant financial, managerial and operating information is accurate, reliable and is provided timely, and ? All internal policies and statutory guidelines are complied with. G. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED The Company is continuously endeavoring to align the employee's objectives with the business objectives of the organisation through its HR policies, process and other development initiatives to achieve its organizational goals. Industrial relations have been cordial. By order of the Board for GYAN DEVELOPERS & BUILDERS LIMITED T. Ashok Raj Managing Director. (DIN: 00575471) M. Sunita Director & CFO (DIN: 01751554) Place : Chennai Date : 30-07-2015 |