Popular Estate Management Ltd Management Discussions

BUSINESS HIGHLIGHTS:

Turnover:

Popular Estate Management Limited has no turnover in financial year 2024-25 against no turnover in the previous year 2023-24.

Employee Benefit Expenses:

Employees emoluments (other than managerial remuneration) are Rs. 11.76 lakhs during the year as against Rs. 12.16 Lakhs during the previous year.

Administrative and Other Expenses:

Major components of administrative and other expenses includes printing and stationary, electricity charges, audit fees, advertisement expenses, postage and stamps, listing and ROC filing fees, insurance premium etc. Administrative and other expenses for the year amounted to Rs. 53.56 Lakhs as against Rs. 37.60 Lakhs during the previous year.

Interest and Finance Charges:

Interest and finance charges / bank charges during the year amounted to nil.

Depreciation:

Depreciation charge for the current year came to Rs. 16.77 Lakhs as against Rs. 18.26 Lakhs of the previous year.

Provision for Tax:

The Company has made loss so there is no provision for tax. As there is no dividend payable this year, the company has not provided any amount for dividend distribution tax.

Profit/Loss after Tax:

The Company has made loss in the current year of Rs. 35.50 Lakhs as against loss of Rs. 68.04 Lakh during the previous year.

Earnings per Share:

Basic and diluted earnings per share for the current year worked out to Rs. (0.25) as against Rs.(0.49) during the previous year.

Financial Condition:

Non-Current Liabilities:

The companys Non-Current Liabilities includes Long Term borrowings Rs. 796.89 Lakhs as against Long Term Borrowings of Rs. 797.88 Lakhs in the previous year.

Current Liabilities:

The companys Current Liabilities includes Trade payables and other financial Liabilities amounting to Rs. 9.49 Lakhs as at 31st March 2025 against Rs. 46.62 Lakhs of the previous year.

Fixed Assets:

Net block of the fixed assets at the end of the year is Rs. 5.95 Lakhs as against Rs. 77.32 Lakhs in the previous year.

Non Current Investments:

Non-current investments of the company are Rs. 82.87 Lakh as at 31st March 2025 against Rs.82.87 Lakh of the previous year.

Current Assets:

During the year, the company has current assets of Rs. 4897.33 Lakhs as against Rs. 4898.11 Lakhs of the previous year.

SEGMENT WISE PERFORMANCE:

The company is operating in only one segment i.e. Infrastructure / Construction. Though, the infrastructure/construction/real estate sector is very bearish since last many years, our company has performed well as compared to the previous year.

FUTURE OUTLOOK:

The company is looking for expansion of business in Infrastructure / Constructio by providing various different products and being different in market one should add uniqueness in product to survive in market. This will reduce the dependency on one product and its overseas market. The group will make optimum utilization of its existing infrastructure facilities which are already designed for many prospects.

AN INDUSTRY OVERVIEW:

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021. By 2025, it will contribute 13% to countrys GDP. Emergence of nuclear families, rapid urbanization and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial, and retail.

Rapid urbanization in the country is pushing the growth of real estate. More than 70-75% of Indias GDP will be contributed by urban areas by 2030.

Around 40 million square feet were delivered in India in 2021. It is expected that the country will have a 40% market share in the next 2-3 years.

Indias real estate sector saw over 1,700 acres of land deals in the top 7 cities in 1 year. Foreign investments in the commercial real estate sector were at US$ 10.3 billion between the years 2017 to 2021. As of February 2022, Developers expect demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.

According to the Economic Times Housing Finance Summit, about 3 houses are built per 1,000 people per year compared with the required construction rate of 5 houses per 1,000 population. The current shortage of housing in urban areas is estimated to be ~10 million units.

An additional 25 million units of affordable housing are required by 2030 to meet the growth in the countrys urban population.

The Government of India has been supportive towards the real estate sector. The Government has also raised FDI (Foreign Direct Investment) limits for townships and settlements development projects to 100%. Real estate projects within Special Economic Zones (SEZ) are also permitted for 100% FDI. Construction is the third-largest sector in terms of FDI inflow. Indian real estate is expected to attract a substantial amount of FDI in the next two years with US$ 8 billion capital infusion by F.Y. 2022. As of June 30, 2021, India formally approved 427 SEZs.

Government of Indias Housing for All initiative is expected to bring US$ 1.3 trillion investments in the housing sector by 2025. As of December 2019, under Pradhan Mantri Awas Yojana (Urban) [PMAY (U)], 1.12 crores houses were sanctioned in urban areas, with a potential to create 1.20 crores jobs. The scheme is expected to push affordable housing and construction in the country and give a boost to the real estate sector.

The low home loan interest rates regime is expected to drive the housing demand and increase ales by 35-40% in the festive season in 2023.

The Ministry of Housing and Urban Affairs has recommended all the states to consider reducing stamp duty of property transactions in a bid to push real estate activity, generate more revenue and aid economic growth.

Strength:

• Management depth and ability to manage client / customer relationships

• Enhanced presence in the market

OPPORTUNITIES AND THREATS:

The infrastructure industry is subject to tough competition amongst various segments within and outside the country. The threat of competition is comparatively less in the area in which your company is operating. The increase in demand from business sector will provide opportunity to your company to increase more market share. Moreover, Indian infrastructure industry witnessing changes in business dynamics.

RISKS AND CONCERNS:

Your company is mainly focusing on real estate and infrastructure. Apart from the risk on account of interest rate and regulatory changes, business of the company are exposed to certain operating business risks, which is mitigated by regular monitoring and corrective actions. The company has taken necessary measures to safe guard its assets and interest etc. The risk of changes in the governmental policies is also there.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company implemented suitable controls to ensure its operational, compliance and reporting objectives. The Company has adequate policies and procedures in place for its current size as well as the future growing needs. These policies and procedures play a pivotal role in the deployment of the internal controls. They are regularly reviewed to ensure both relevance and comprehensiveness and compliance is ingrained into the management review process.

Adequacy of controls of the key processes is also being reviewed by the Internal Audit team. Suggestions to further strengthen the process are shared with the process owners and changes are suitably made. Significant findings, along with management response and status of action plans are also periodically shared with and reviewed by the Audit Committee. It ensures adequate internal financial control exist in design and operation.

Mr. Alpesh Shah is the internal auditor of the Company for the F.Y. 2024-25 who conducts Internal audit and submit reports to the Audit Committee. The Internal Audit is processed to design to review the adequacy of internal control checks in the system and covers all significant areas of the Companys operations. The Audit Committee reviews the effectiveness of the Companys internal control system.

HUMAN RESOURCE MANAGEMENT:

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioural skills to insure achievement of its short- and long-term objectives.

ANALYTICAL RATIOS:

Particulars	FY 2025	FY2024	% Variance	Reason for variance (In case of change Exceeding 25%)
Return on Equity (%)	(0.01)	(0.02)	-47.37%	Mainly due to Increase in net loss.
Net capital turnover ratio (times)	0.00	0.00
Return on capital employed (%)	(0.00442)	(0.01163)	-62.04%	Increase in EBIT of Rs. 31,03,347 due to reduction in depreciation and expenses during f. y. 2024-25.
Current Ratio(times)	516.02	105.06	391.16%	Proportion of decrease in Current Assets is very less as compared to proportion of decrease in Current Liabilities. Base of Current Liabilities is very small and hence impacted current ratio.
Debt service coverage ratio (times)	0.00	84.61		There is decrease in Finance cost plus Instalments
Debt equity ratio (times)	0.19	0.19
Inventory turnover ratio (times)	0.00	0.00
Trader receivable turnover ratio (times)	0.00	0.00
Trade payable turnover ratio (times)	0.00	0.00
Net profit ratio (%)	0.00	0.00
Return on investment (%)	0.00	0.00

Cautionary Statement:

Statement made in the Management Discussion and Analysis Report describing the companys objectives, projections, estimates, expectations may be "Forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the markets in which the company operates changes in the government regulations, tax laws & other statutes and other incidental factors.

For and on behalf of the Board,	Sd/-	Sd/-
POPULAR ESTATE MANAGEMENT LIMITED	Vikram Patel	Het Patel
Registered Office: 81,8thFloor, Awing, New York Tower, Opp. Muktidham Derasar, Thaltej, S. G. Highway, Ahmedabad, Gujarat, India, 380054	Director, Manager, CFO	Director
Date: 04.09.2025	DIN:00166707	DIN:06986909
Place: Ahmedabad