GCR Group-3

COMPANY PROFILE OF GOBLE TRADE CENTER

AGLOBAL /COUNTRY STUDY REPORT ON

GLOBE TRADE CENTER S.A AS A MAJOR COMPANY IN CONSTRUCYION AND ENGINEERING INDUSTRY OF POLAND: BUSINESS OPPORTUNITY FOR INDIA

SUBMITTED TO GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABADINPARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

INGUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABADSUBMITTED BY:Rahul Kashyap 127990592013Kerawala Jenifer 127990592014Faiyaz kolia 127990592015Nikita Lad 127990592017Suresh Mahato 127990592018Hiren Mistry 127990592019

FACULTY GUIDE:Mr. Vishal J. Mali

COMPANY PROFILE OF GLOBE TRADE CENTERActivity of the Group:GTC is a leading real estate developer in CEE & SEE & currently operates in Poland Romania, Hungary, Croatia, Serbia, Bulgaria, Slovakia, the Czech Republic, Russia & Ukraine. GTC is established in 1994 & have been present in the real estate market form early 20 years.

GTCs portfolio comprises:Completed office buildings & office parks as glowing seeing that retail & entertainment centers (commercial real estate) Residential projectsNew plots of land (land bank).

Since its establishment GTC developed approximately9,30,000 sq m of net space & around 2,76,000 sq m of housing space. GTC are sold about 2,60,000 sq m of net area in completed commercial property to worldwide intuitional investors & approximately 2,18,000 sq m of residential liberty.

GTCs shares had been listed on the WSE & included in the WIG20 index since 20 September 2004. GTCs shares were moreover included in the international MSCI index the Dow Jones STOXX Eastern Europe 300 average the GPR250 index which comprises the 250 biggest & most liquid real estate companies in the world & the FTSE EPRA/NAREIT Emerging Index.

ContinueBusiness Strategy:GTCs mission is to provide quality space at competitive prices to meet pleased demand in the CEE & SEE markets. GTC continues to focus on Poland as it was characterized by macroeconomic strength continued GDP development & continuous investor & lodger demand.

GTC aims to make best use of shareholder value by pursuing sustainable organic growth of its business while constantly adapting to change in the markets in which it operates. GTC intend to achieve this by implement the following elements of its business strategy:Supervise & optimize its portfolio.

Organize of certain non-core & maturing properties in order to reduce the GTCs financial leverage & obtain funds for new investments.

Develop high quality new projects with a focus on Poland.

Manage & optimize its portfolio of sustainable income-generating office & retail properties

GTC intends to maintain to actively manage its income-generating profitable property portfolio in order to maximize operating performance & efficiency, diversify tenant risk, & enhance rental income. GTC focuses on high quality, environmentally friendly office & retail properties.

GTC add value to its portfolio through its asset management activities. Such activities include securing the best possible tenant mix.

In the case of retail properties attracting anchor tenant & engaging in marketing activities to achieve high step & stable income. Optimizing property operating costs by using energy efficient technology finding the best effectiveness & service providers in terms of price/quality.

Seeking to optimize space design to maximize residence ratesDispose of certain non-core & growing properties in order to reduce GTCs financial leverage or obtain funds for new investmentsIn the course of its operations GTC incessantly reviews its portfolio to recognize properties for disposal. Such properties could be likely to reduce GTCs financial leverage or to obtain funds that might be used for new investments.

Develop high quality new projects with a focus on PolandGTC intends to go on developing high quality commercial projects in areas where there was strong demand for such properties. GTC plans to focus its short to medium-term operations primarily on Poland the regions strongest economy. In addition GTC was well-positioned to benefit from the future growth potential of the SEE markets due to its existing land bank.

Corporate social responsibilityGTC take pleasure in its firm loyalty to corporate social responsibility (CSR). Serving the long-term interests of all stakeholders, socially & environmentally have become an integral part of GTCs approach. These translate into internal & external guidelines on environmental issues, social responsibility, & corporate governance. GTC complies with OECD guidelines such as cooperation with local communities, creation of new jobs, & development & achievement of best practice in corporate governance. Ecological approachDue to its concern for the long-term welfare of the environment in good health awareness of the expectations of tenants, financial institutions & its own shareholders. GTC places gradually greater stress on the sustainable & pro-ecological nature of its properties. GTC fully embraces the concept of green construction & keeps up with the latest trends in that area.GTCs projects were created in renowned architectural studios in Poland & other countries in the region in cooperation with worldwide architectural firms. The designs were consulted with most important expert in inexperienced building & fully reflect national & international standards for energy savings, efficiency & Implementation of ecological solutions. GTCs office buildings & retail centers were designed built & managed to limit the use of natural resources (chiefly water & electricity), reduce the amount of waste generate & achieve proper recycle.

Seeking the greatest durability of development projects: Collaboration with distinguished polish & international architects Discussion of projects with global experts on green construction Strong emphasis on reducing consumption of natural resources

Strength

strong brand imageLarge real estate company in Poland and outside also.Gtc have a strong portfolioLarge market shareExperience of over many decades in polish retail sector with an expertise in the field.Maintain large customer relationshipGood in reducing consumption of natural resources.

SWOT analysisWeakness

Gtc business is too much dependent on the raw material supplier.Being real estate company they have to face stiff environmental laws.Frequent changes in technologies of real estate equipment's.Availability of labors.Complexities associated with understanding the foreign regulations & policies.Housing Recovery Keeps Stumbling!

Opportunity

Starting new development in polish different area.Possibility of getting associated with renowned polish & international architects.Have large chunk of raw land under the ownership:future to develop a Greenland and green park. To advance cover geographic area in Poland and across the Poland.Real estate has to a fast growing concept all over the world so that easily cover their opportunity.

Threats

Global change and uncertainty.Political gridlock.CompetitorsEconomy instabilityHousing Recovery Keeps Stumbling!

The real estate sector in India is witnessing rapid growth in the residential, commercial and industrial segments. Real estate development, once restricted to bigger cities, have exposed marked progress in smaller cities and towns due to availability of banks loans, higher income and improved standard of living.

The real estate sector of India is projected to post annual revenues of US$ 180 billion by 2020 against US$ 66.8 billion in 2010-11, a compound yearly growth rate (CAGR) of 11.6 per cent. Real estate industry overview of india

According to data published by the Central Statistical Office, over 104 thousand units have been delivered in the first three quarters of 2012 (up by 20% compared to the same period of 2011), out of which 49 thousand (47%) were constructed by developers, and 49 thousand (47%) by individuals.

GTC was a leading real estate developer in CEE and SEE and currently operates in Poland.GTC intend to go on developing high quality commercial projects in areas where there was strong demand for such properties. Real estate industry overview of poland

2012 - Corius office building put into charge at Okcie Business Park Warsaw. - Opening of Galleria Burgas GTCs second shopping centre in Bulgaria. - Completion of Platinum Business park V Warsaw. - The Company located 100 million novel shares, raising EUR 100 million. - Sale of Platinum Business Park project, comprise in total of all the Platinum Buildings .

So in showing the condition of Indian scenario of real estate industry which is showing the rapid growth and highly favorable huge opportunity for any cross boarder company in Indian real estate sector because showing recent finding of India's office space stock is estimated to rise by 40 per cent to 642.2 million sq ft by 2017 so it is indicate huge opportunity for GTC to come up in india and developed his business in india.

BUSINESS OPPORTUNITIES Indias real estate growth rate is 15%.Factors:EconomyPolicyInfrastructureOffice real estateRetail real estateResidential Real EstateIndustrial Real EstateEducation & Health CareInvestment Sentiments

Import duty & taxes when importing into Poland

The dutyrates applied to imports into a poland typically range between 0%(for e.g. Books) & 17%(for e.g. wellington boots).

VAT Rates: The standard VAT rate for importing items intoPolandis 23%.

Other taxes & customs fees: Excise duty is payable on for example tobacco & alcohol. Additional customs fees can be charged to cover the expense of performing any required examinations, verification & or testing of the imported goods.

Legal requirement for exporting:

The export of goods to other countries is regulated by the import regulations of those countries.State support for export: There is a system offinancial instrumentsto support exports in Poland, which covers:Export credit insurance: The insurance of export credits & contracts covers damage caused by events defined as trade risks, political events & force majeure (including riots, revolutions, earthquakes, eruption of volcanoes, floods, etc.).

DLF OVERVIEWDLF have over 60 years of track record of constant development, customer satisfaction and improvement.

DLF's primary businesses are development of residential, profitable and retail properties.

The company is a unique business model with income arises from development and rentals

From developing 22 major colonies in Delhi DLF have position now present crossways 15 states-24 cities in India.

Logo Our Ethos

Business Development: The development business of DLF includes Homes and Commercial Complexes .The home business caters to 3 segments of the residential market - Super Luxury, Luxury and Premium.

Business Annuity: DLF is become a preferred name with many IT & ITES majors and leading Indian and International corporate giant including GE, IBM, Microsoft, Canon, Citibank, Hewitt, WNS, Bank of America, Cognizant, Infosys, CSC and Symantec, among others.DLF Vision: To contribute considerably to building the new India and become the worlds most valuable real estate company.DLF Mission: To build world-class real-estate concepts across six business lines with the highest standards of professionalism, moral principles, excellence and client check.DLF Values: Continuous efforts to enhance customer value and quality Principled and qualified service Agreement and respect for all community, environmental and legal requirements.

Strength1. Largest real estate company in India.

2. Its exposure across businesses, segments and geographies reduces the impact of economic cycles.3. Experience of over many decades in Indian retail sector with an expertise in the field.4. Strong management teamWeakness1.Affected due to lack of regulations and effective policies2.Majorly present only in India and limited global exposureSWOT AnalysisOpportunities 1.Reduction in interest rates2.Tax incentives for housing investments3.Shortage of houses in urban areasThreats1.Increasing interest rates2.Economic downturn3.Volatility in financial marketsCompetitionCompetitors1.Oberoi Realty2.Godrej Properties Limited3.DB Realty Limited

DLF COMPANIES AREA COVERS IN INDIA

1) Approval in Principle by the Head of a Government Entity: For JV Agreements regardless of cost the Head of the Government Entity concerned have the authority to approve the proposed JV Agreement in principle subject to the compliance to the situation listed here under: A.). justification. B) Clear explanation C) All other components of the JV Agreement 2) For JV activity that will require National government undertakings, Subsidies or guarantees,

Process for Entering into JV Agreements in India:

Clearance/approval of the Department of Finance (DOF) and/or The Department of Budget and Management (DBM)a. Competitive Selection : i.) It promotes Accountability and efficiency. ii) It include the parameters as approved by the Head of the Government Entity.b. Negotiated Agreements : i.) When a Government Entity receives an unsolicited proposal. ii.) When there is failure of competition when no proposals are received. iii.) When there is failure of competition.

Deviations and Amendments to the JV Agreement. The concerned Government Entity shall not proceed with the award and signing of the contract if there are material deviations from the parameters.That tend to increase the financial exposure, liabilities, and risks of government or any other factors that would cause disadvantage to government Material deviations and amendments shall be subjected to the approval requirements under Sections 7.1 and 7.2 hereof. The Head of the Government Entity concerned shall be responsible for compliance with this policy.Reporting Requirement. : During the course of implementation of the JV Agreement, the concerned Government Entity shall submit an annual report on the status of its implementation during a current year to the Department of Finance, for monitoring purposes. The annual report shall be submitted within the first quarter of the succeeding year. The report shall use current standards in the production of corporate annual reports and shall include the audited financial statements of the JV.

Amendments: These Guidelines possibly will be amended and/or modified from time to time by NEDA through its Director-General in consultation with the GPPB and the OGCC. Separability. If any provision of these Guidelines is held or declared void or unenforceable by final judgment of a court of competent jurisdiction the other provisions unaffected thereby shall remain in full force and effect.

MethodologyThe index is based on the study of laws & regulations, with the input & verification by more than 9,600 government officials, lawyers, business consultant, accountants & other professionals in 185 economies who routinely advise on or administer legal & regulatory requirements.To doing business in Poland country Indian entrepreneur should follow following procedure:Forms of conducting business activity in Poland Introduction Available types of business activity include: TO CREATE APPROPRIATE BUSINESS STRATEGY FOR SELECTED INDIAN COMPANY FOR BUSINESS WITH GOBLE TRADE CENTER IN POLAND COUNTRY. 35commercial companies comprising,branch offices of a foreign company, representative offices of a foreign company,Individual business activity (also as part of a civil partnership).

2. Freedom of business activity Restrictions as to the subjectThis principle does not offer absolute freedom of business activity. Crucial in this respect are restrictions as to the subject & the object.from the Member States of the European Union. from countries that are not participants to the Agreement on the European Economic Area, pursuant to agreements entered into by those states with the European Community & its Member States

Restrictions as to the objectThe requirement of obtaining a concession concerns activities that involve: manufacturing & trading in explosives, manufacturing, processing, storing, transmitting, distributing & trading in fuels & energy; protecting people & property, air transportation

Permits, licenses, authorizations Another manifestation of the restriction of economic freedom as to the object is the requirement for the entrepreneur to obtain a permit, license or authorization. Regulated activitiesIn order to obtain an entry in the register of regulated activity, an entrepreneur must submit a statement on meeting the requirements for conducting such activity.

3. Most common types of business activity in PolandThe most common types of business activity are commercial companies, in particular, the limited liability company & the general partnership. Further down the list are the joint-stock company, the limited partnership & the limited joint-stock partnership. The smallest group is limited liability partnerships, Commercial companiesA commercial company is a form of for-profit cooperation between at least two persons, save for the limited liability company & the joint-stock company, which may be established by a single entity, provided that the founder itself is not a one-person limited liability company. Branch office of a foreign companyA foreign company may conduct business through a branch office in Poland to the extent such activity is conducted in its country of origin.

Representative officeHaving a representative office in Poland enables a foreign entrepreneur to conduct business solely with respect to advertising & promoting its activities.4. Criteria for selecting the form of conducting business activity Investors country of originThe investors country of origin is crucial in determining its ability to conduct business activity in Poland. As stated in detail in above point, persons from outside the European Union, the Polish Contract Act, may select from among types of business activity limited to the following entities: (i) limited partnerships, (ii) limited joint-stock partnerships, (iii) limited liability companies & (iv) joint-stock companies. Type of activityIn principle, business activity may be conducted in any form permitted by the applicable laws.

Scale of activityA general rule is to select partnerships (except for limited joint-stock partnerships) for business activity on a smaller scale, & use corporations & the limited joint-stock partnership for larger-scale business ventures. An investors liability for the obligations of the entity through which it conduct businessIn a general partnership, all of its partners have unlimited liability for the partnerships obligations. In a limited partnership & limited joint-stock partnership, this rule applies in full to the general partners. The scope of liability may be optimized through appropriate design of the structure of the limited partnership or limited joint-stock partnership

The requirement of personal involvement in the running of affairsThe requirement of personal involvement may be limited to a minimum for an investor involved as a limited partner of a limited partnership or a shareholder of a limited joint-stock partnership. By law, a limited partner is not authorized or required to run the partnerships affairs unless the articles of association state otherwise. On the other h&, a shareholder of a limited joint-stock partnership is involved in its affairs solely by participating in the adoption of resolutions by the general meeting. Options for obtaining capitalThe most popular forms of obtaining capital for business activity include financing investments with bank loans & issuing shares or bonds.

Taxation of incomeAn important difference between conducting business as a partnership & a corporation is the method of taxation. In a partnership, only its partners are subject to taxation, rather than the partnership itself. Therefore, only the income earned by a partner is taxable. The income of a corporation is taxed twice - first, at the level of the company as a payer of corporate income tax, & second, at the level of a shareholder receiving dividend. Cost & formalities involved in conducting business activityIn corporations & in limited joint-stock partnerships, the partners must contribute the share capital (in a limited liability company - PLN 5,000, in a joint-stock company - PLN 100,000, & in a limited joint stock partnership - PLN 50,000). WORLD BANK RANKING OF DIFFERENT COUNTRIES IN TERMS OF DIFFERENT PARAMETERS:

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