Asia Pack Ltd Management Discussions

Global Economy:

The global outlook is becoming increasingly challenging. Substantial increases in barriers to trade, tighter financial conditions, weaker business and consumer confidence and heightened policy uncertainty will all have marked adverse effects on growth prospects if they persist. Higher trade costs, especially in countries raising tariffs, will also push up inflation, although their impact will be offset partially by weaker commodity prices. According to the OECD, global GDP growth is projected to slow from 3.3% in 2024 to 2.9% in 2025. The International Monetary Fund (IMF) has also revised its global growth forecast downward to 2.8% for 2025, with a projected recovery to 3.0% in 2026. The United States, the worlds largest economy, is now projected to grow by only 1.8% in 2025, significantly lower than last years expectations. This slowdown is attributed to persistent policy uncertainty, tighter monetary conditions, and ongoing trade tensions. Growth in emerging markets and developing economies is also expected to moderate, with a forecasted rate of 3.7% in 2025. While this remains above the global average, it represents a deceleration from recent years. Global economies are experiencing rapid aging due to declining fertility rates and increasing life expectancy, particularly in advanced economies. This demographic shift poses long-term challenges for labor force participation, productivity, healthcare systems, and fiscal sustainability.

Indian Economy:

Indias economic performance has remained robust despite global challenges and geopolitical concerns. This can be attributed to strong domestic demand, rural demand pickup, robust investment and sustained manufacturing momentum. Despite the global challenges, India stands out with its strong economic performance, highlighting broad based growth across sectors and asserting its pivotal role in supporting the global growth trajectory. Key factors contributing to Indias economic resilience include strong domestic demand and consumption, growing public and private investment, growth in the manufacturing and services sectors and government initiatives to boost economic growth.

While Indias growth forecast has been slightly revised down from 6.5% to 6.2% for 2025, it remains the fastest-growing major economy among its global counterparts. The IMF projects Indias nominal gross domestic product (GDP) to reach USD 4.187 trillion in 2025, surpassing Japans estimated USD 4.186 trillion. Chinas Gross Domestic Product (GDP) growth forecast for 2025 has been downgraded to 4.0% from 4.6%, making Indias growth trajectory stand out. The key driver of Indias growth is majorly private consumption, particularly in rural areas, which is expected to remain strong, even amid global economic uncertainty, Indias private consumption has nearly doubled to Rs. 1.83 lakh crore in 2024, growing at a 7.2% Compound Annual Growth Rate (CAGR), surpassing the US, China, and Germany. The country is on track to become the worlds third-largest consumer market by 2026, with the middle class expanding rapidly. By 2030, the number of individuals earning over Rs. 8.73 lakh annually is expected to nearly triple. Indias per capita income is projected to exceed Rs. 3.49 lakh by 2030, driving consumption growth. Indian Government Initiatives like the Pradhan Mantri Jan Dhan Yojana for financial inclusion, and Make in India along with Production-Linked Incentive schemes to boost manufacturing have strengthened Indias economic dynamism.

Apart of the above, major other factors which directly affects Indian Economy during the F.Y. 2024 are Technological innovation by growing adoption of digital technologies, including Artificial Intelligence and renewable energy solutions, supports higher productivity and resilience in economic activities and External demand and trade diversification through integration into global value chains and trade agreements which provides growth opportunities and buffers against global volatility. In recent we have seen that Indias share in global services exports has doubled from 1.9% in 2005 to 4.3% in 2023 which shows that Indian Economy towards world trade is continuously growing.

Overall, Indias outlook remains positive. The countrys ability to leverage these factors ensures it will continue to play a pivotal role in shaping the global economic landscape.

Industry structure and developments:

The Indian Real Estate sector witnessed a strong growth in the past couple of years and is poised for an assuring growth in the future. The outlook is driven by a confluence of multiple factors including increasing urbanization, shifting demographics, aspirational lifestyle and supportive economic growth in the country. Real estate sector is one of the most globally recognized sectors. It comprises of four sub sectors - housing, retail, hospitality, and commercial. A number of factors are adding further impetus to the growth of the industry. The growth can be attributed to a growing residential demand, expected growth in sustainable workplaces, rising consumption and needs of a growing population with higher income levels. The Indian real estate market has undergone a remarkable transformation in recent years, evolving into one of the most dynamic sectors of the economy. This shift has been fuelled by sustained economic growth, rapid urbanization, infrastructure development, and a rising demand for both residential and commercial spaces.

Real estate sector of India is also affect other Sectors like The banking and financial sector is well-positioned to cater to the growing financing needs of investment demand. Credit disbursal by scheduled commercial banks (SCBs) to industrial micro, small and medium enterprises (MSMEs) and services continues to grow in double digits despite a higher base. Similarly, personal loans for housing have surged, corresponding to the increase in housing demand. However, credit offtake by large industries seems to be growing at a lower albeit stable pace. In Recent years In India Apart from private corporations, households have also been at the forefront of the capital formation process. The growth in housing sales in cities has been particularly impressive, indicating that urban households are diversifying the deployment of their savings.

The Indian real estate sector is a key player in the nations economic development. With promising projections in market size, GDP contribution and employment generation, the sector stands as a beacon of growth and opportunity. The sector today contributes significantly to employment generation and economic output, accounting for nearly 7% of Indias GDP. With projections placing its market size at $1 trillion by 2030, real estate stands as a foundational pillar of Indias long-term development strategy. Nurturing this growth requires a balanced approach, addressing challenges while embracing innovation, ultimately shaping a real estate landscape that is not just expansive but also sustainable.

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. With strong macroeconomic fundamentals, policy support, and an evolved consumer landscape, the Indian real estate sector has reached a steady stabilization phase. As the market matures and developers adapt to emerging trends, the sector will continue to shape Indias urban and economic development.

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 will remain strong in the medium to long term.

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.

6. Increased cost of manpower.

7. Rising cost of construction lead by increase in commodity prices

Segment–wise or product-wise performance:

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. 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 sector continues to evolve amidst changing economic conditions, regulatory reforms, and shifting demand patterns. The Company with its strategically located portfolio of wholly owned rental properties, is well positioned to leverage the positive momentum in the real estate sector. The Company remains optimistic about its growth prospects given the robust demand for quality rental spaces across commercial and residential segments. With a strong operational foundation and a commitment to excellence, Company is confident of sustaining its growth trajectory. The Company aims to create long-term value for its stakeholders by delivering consistent rental yields, enhancing asset quality, and exploring strategic expansion opportunities in the real estate sector.

Risks and concerns:

While the residential real estate sector remains on firm footing, signs of moderation are beginning to emerge as the market gradually transitions from a high-growth phase to a more balanced growth trajectory. This presents an important moment for developers to recalibrate strategies and focus on long-term fundamentals. Navigating evolving regulations, managing project approvals efficiently, and maintaining cost discipline will be key to ensuring timely execution. In a supply-rich environment, getting the location and pricing right will be critical to capturing demand and ensuring sustained absorption. Developers have an opportunity to stand out by aligning closely with buyer preferences and delivering differentiated, high-quality offerings.

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.

Discussion on financial performance with respect to operational performance:

The Companys financial performance is directly linked to the operational efficiency and utilization of its owned rental assets. During the year under review, all rental income was derived from properties wholly owned by the Company, which include commercial and/or residential spaces leased to various tenants.

The Company reported total rental income of Rs. 20,11,625/- for the current financial year, as compared to Rs. Rs. 6,57,500/- in the previous year, reflecting increase of 205.00%. The performance was primarily driven by: High occupancy levels across owned properties; Annual rent escalations; Timely renewals and minimal vacancy periods across major assets; improved asset utilization and increased demand in key locations. As all rental income arises from Company-owned properties, there is strong visibility and predictability in cash flows.

The EBITDA for the year 2024-25 is Rs. 42, 74,131/- as against Rs. 54,49,595/- in previous financial year. Total income during the year has been increased as compare to previous year, however expenses incurred by the Company has simultaneously increased which lower the profit during the year, Although Company is expecting better Profit in upcoming years through exploring new opportunities in the market.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

We believe and understand the importance of investing in the growth and development of employees which is crucial not only for their personal success, but also for the overall success of the organization. Hence, the Company is empowering the employees vide providing them suitable work culture and many other benefits such as annual appraisals. Number of people employed during the reporting financial year is 4, However Company is expecting towards creating more employment opportunities in upcoming years.

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
	Sd/-	Sd/-
	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, 2025	Nathdwara, Rajsamand, Rajasthan,	Shobhagpura, Udaipur, Rajasthan,
Place: Nathdwara	India , PIN-313301	India, PIN-313011