asia pack ltd Management discussions

Annexure-1 to the Boards Report

Global Economy:

It has been a near-normal year after two years of pandemic induced challenges but the global economy continues to face headwinds of rising inflation and tapered growth. The global real estate market grow from $3694.7 billion in 2022 to $ 3976 Billion in 2023 at a Compound annual growth rate of 7.6%. The real estate market growth will be aided by stable economic growth forecasted in many developed and developing countries. The International Monetary fund (IMF) predict that global real GDP growth will be 3.6% from 2021-2023 recovering commodity prices after a significate decline in the historic period is further expected to aid the market growth. Developed economies are also registered stable growth and real estate sector of many developing countries across the world has been continuing growing.

Outlook

Indias real estate market is expected to exhibit a growth rate (CAGR) of 9.2% during 2023-2028. Therefore, FY23- 24 will see a strong foundation as there will be more buyers, and home loan rates will be lower. Multiple rating agencies have calculated that the Indian economy is estimated to grow by 8-9%, which will ultimately drive the growth in the real estate market. This growth can be attributed to increasing business activity, improved job markets, and higher income levels, all of which will inevitably lead to a rise in real estate demand.

Indian Economy:

Indias economic growth continues to be resilient despite some sign of moderation in growth, although significant challenges remain in the global environment, India was one of the fastest growing economies in the world. The overall growth remains robust and is estimated to be 6.9% for the full year with real GDP growing 7.7% year on year during the first three quarters of FY 2022-23. There were some signs of moderation in the second half of FY 2022-23. Growth was underpinned by strong investment activity bolstered by the governments capex push and buoyant private consumption, particularly among higher income earners. Inflation remained high, averaging around 6.7% in FY 2022-23 but the current account deficit narrowed in Q3 on the back of strong growth in service exports and easing global commodity prices.

The World Bank has revised its FY 2023-24 GDP forecast to 6.3% from 6.6% (December 2022). Growth is expected to be constrained by slower consumption growth and challenging external conditions. Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic related fiscal support measures.

Covid was considered as one of the major reason to growth in real estate Market in India, As demand in residential houses was tremendously boost up and many big projects of real estate was performed by the major leaders of the Industry and other small real estate Developers and in the same way Government Revenue from real estate sectors was also increase and with increase of the real estate sector in India there has been increased in the Scope of laborious work which creates higher demand of paid labour, apparently more employment opportunities in real estate sector were seen at each level many of the professionals like engineers and others have been engaged in major real estate projects and with increase in the real estate segment in India there has been recording tremendous growth in allied Service sector of real estate.

Finance sector of India has been simultaneously growing with the growth of the real estate sector in India a major projects required huge funds to manage the operations and retail consumers also needed fund to purchase any residential, commercial and other properties which creates a large scope of finance sector in India. From the investment prospective real estate is now considering as one of most likely sector among the Indian investors as well as global Investors.

Industry structure and developments:

Real estate sector is one of the most globally recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations.

India is one of the worlds fastest-growing major economies, and the real estate industry contributes to overall economic growth as well as being the countrys second-largest employer and third-largest recipient of FDI. By 2024, the real estate industry is anticipated to reach Rs 65,000 crore, and by 2025, it is anticipated that this sector would account for 13% of the nations GDP. The real estate industry is unmistakably on a growth trajectory and is already charging towards its next adventure. The real estate industry has been transforming over the past several months with cutting-edge initiatives in the residential, commercial, and retail sectors.

People from tier-2 and tier-3 cities and towns are aiming to adopt totally sustainable multi-storeyed structures, fully protected gated communities, well-designed commercial complexes, and malls. A competent workforce has moved to satellite towns as a result of the hybrid method of work, which has increased demand for Grade A commercial space in these locations as well.

In the context of the residential real estate market, India had astounding progress in 2023, setting new sales records year on year, further demonstrating the industrys prominence as one of Indias fastest growing industries.

Opportunities:

1. Implement the new technologies in an effective way.

2. Weakening of the competition.

3. Strategic real estate visibility.

4. An effective use of the new ways of communication.

5. International real estate strategy.

Threats:

1. Take on high levels of risk.

2. Changes of the real estate positioning environment.

3. Changes in the real estate market.

4. Changes of the potential buyers preferences.

5. Eventual legal modifications.

The applicability of this model will depend on the particular necessities of every real estate, but it can also be used for:

1. Exploring possible solutions to different problems.

2. Detecting which are the weaknesses of the real estate.

3. Increasing the individual and collective level of productivity.

4. Taking more accurate decisions.

5. Modifying strategies.

6. Discovering new opportunities of this business.

7. Strengthening individual and collective abilities.

8. Managing the real estates resources in a better way.

9. Speeding up the internal and external managing processes.

10. Getting to the potential clients in a more effective way.

Segment-wise or product-wise performance:

The Board has clearly mentioned the performance of product-wise service in Point VI of Note 21: Additional and other information of the Financial Statement.

Outlook:

The real estate industry did very well in 2023. The growth was in every segments such as residential and retail, with all segments recovering from COVID lows and recording strong year-on-year growth. While growth in India has slowed for multinational corporations, domestic demand has remained steady. According to a report, Indias real estate market is expected to exhibit a growth rate (CAGR) of 9.2% during 2023-2028. Therefore, FY23-24 will see a strong foundation as there will be more buyers, and home loan rates will be lower. Multiple rating agencies have calculated that the Indian economy is estimated to grow by 8-9%, which will ultimately drive the growth in the real estate market. This growth can be attributed to increasing business activity, improved job markets, and higher income levels, all of which will inevitably lead to a rise in real estate demand.

Internal Control Systems and their adequacy:

Your Companys internal control system is commensurate with the nature business, size and complexity of its operations and is aligned with the requirement of the Companies Act, 2013. The management assessed the effectiveness of the Companys internal control over financial reporting requirements and the Statutory Auditors of the Company have issued an attestation report as required under section 143 of the Companies Act, 2013. We periodically review our risk management systems covering various business processes to increase our profitability, efficiency and operational excellence.

Ratios:

The details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations is mentioned in Note No. 23. Details of Ratio as per Schedule III.

For and on behalf of Board of Directors

For Asia Pack Limited

	Name: Prakash Chandra Purohit	Name: Pushpendra Jain
	Designation: Director	Designation: Director & CFO
	DIN :01383197	DIN :03228950
	Address: Village-Uper Ki Oden, Teh-	Address: 8-9, Pragati Nagar,
Date: 14th August, 2023	Nathdwara, Rajsamand, Rajasthan,	Shobhagpura, Udaipur, Rajasthan,
Place: Nathdwara	India , PIN-313301	India, PIN-313011