Dear Shareholders,
As you all are aware that at present, challenging period for the real estate sector in
India particularly for the residential property is still exists with little sign of
improvement. This extended phase of slowdown is a cause for concern not only for the
Investors but for the whole economy. In my view, joint efforts of both the Industry and
the Government are required to revive the sector. Due to increased Non-performing Assets
(“NPAs”) especially in the Real Estate Sector, flow of fund into the sector has
come to a standstill resulting into delay in delivery of projects. The Government must
facilitate flow of funds to the sector and further streamline approval and sanction
processes. The India's GDP during 2016-17 was estimated at 7.1 per cent as compared to the
7.6 per cent in 2015-16. RBI has also been gradually reducing the interest rates. Due to
demonetisation Growth in Gross Value Added (GVA) in the fourth quarter FY17 was 5.6%
versus 8.7% in the corresponding quarter in the previous fiscal, GVA for construction
sector for the FY 2017 was at 1.7% versus the 5% recorded in FY16, while for real estate
sector GVA for the entire FY17 stood at 5.7% as compared to 10.8% registered in FY16.
FY 2016-17 was an eventful year for transformational journey of the real estate sector
in India, witnessing demonetisation of high value currency notes, enactment of landmark
legislation viz. Real Estate (Regulation and Development) Act, 2016 [RERA], better
incentives for affordable housing e.g. Pradhan Mantri Awas Yojana (PMAY), Credit-Linked
Subsidy Scheme (CLSS) and reforms like Goods and Services Tax [GST] regime. While the
above reforms introduced during the year under review are significant, the Government
should take into account the necessity to ease the transition, especially in a competitive
market economy, by acting as an enabler and facilitator even while exercising strict
regulatory control.
During the year under review, your Company's primary focus was on scaling up
construction activity at the project sites and thereby speeding up the delivery of
finished product. Accordingly, all its actions were directed towards this objective. These
actions resulted in an increase in delivery volume during the year to 5.18 million sqft as
against 3.99 million sqft during the previous year. Despite the adverse conditions handing
over in 56 projects across regions is in progress. Company is continuously engaging with
all the concerned parties viz., customer groups, banks, local authorities, contractors
etc. to put in place mechanisms to ensure unhindered progress of projects and reassure
them of its commitment to delivery. Primarily Non-residential part has generated cash for
the Company, as the Company has sold 2.24 mn sq ft commercial space out of total 2.75 mn
sq ft total area during FY 2017.
Your Company takes pride in being a responsible corporate citizen and continuously
contributes to various activities involving labour welfare, safety, environmental
protection, education etc. I sincerely thank all stakeholders for continuing to repose
their faith and trust in the Company.
Regards,
Ramesh chandra
Chairman