Prerna Infrabuild Ltd Management Discussions

Management Discussion and Analysis is given in a separate section forming part of the Director’s Report in this Annual Report.

1. INDUSTRY STRUCTURE & DEVELOPMENT

As per the advance estimates for 2023-24, the growth in real GDP during 2023-24 is estimated at 8.2 per cent as compared to 7.00 per cent in 2022-23. FurtherEconomic growth witnessed led a slowdown in agriculture, weaker consumer spending and investments, and a marked slowdown in the manufacturing sector.

2. OPPORTUNITIES

Housing Demand

The pandemic has nudged a lot of fence-sitters to convert into first-time home buyers and existing ones to upgrade to larger homes by re-establishing the security that homeownership offers, resulting in rising housing demand across segments. An expected economic recovery along with the belief of housing prices bottoming out amongst consumers and rising income levels are some of the factors Which will drive the housing demand going ahead. Hybrid working models will also continue to drive demand for larger homes. Employers are expected to continue to offer flexibility to their employees in order to attract and retain talent.

3. THREATS

The sector is grappling with liquidity deficit in the aftermath of Pandemic (Covid-19), high Cost ofRegulatory Hurdles, Monetary Tightening and Funding Issues and Shortage of Labour and Technology

4. RISKS & CONCERNS

Your Company has laid down procedures to inform the Board members about the risk assessment and risk minimization procedures. The Company is exposed to price risks.

Unfavourable changes in government policies and the regulatory environment can adversely impact the performance of the sector. There are substantial procedural delays with regards to land acquisition, land use, project launches and construction approvals. Retrospective policy changes and regulatory bottlenecks may impact profitability and affect the attractiveness of the sector and companies operating within the sector.

Real estate is a capital and labour-intensive industry, thus a rise in cost of labour coupled with shortage due to Covid-19 creates issues in development of the project. Furthermore, unfair practices of certain sections of distributors and the cement industry by raising the price creates issues in project completion.

5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company’s policies and procedures take into account the design, implementation and maintenance of adequate internal financial controls, keeping in view the size and nature of the business. The system ensures adherence to accounting standards, compliance to various statutes, company policies and procedures and effective usage of resources and safeguarding of assets.

The culture of self-governance and internal control sustained through varied set of activities including well defined policies and self-certification on adherence to the policies and procedure.

6. DISCUSSION ON FINANCIAL PERFORMANCE

Net revenue is 2382.36 Lakhs over the previous year. The Company has earned Profit of Rs. 521.21 Lakhs in 2023-24.

7. SIGNIFICANT DEVELOPMENTS IN HUMAN RESOURCES

There is no material development in human resources and industrial relations are cordial.

8. CAUTIONARY NOTE

Statement in this report describing the Company’s objectives, projections, estimates and expectations may be forward looking statements’ within the meaning of applicable laws and regulations. Although we believe our expectations are based on reasonable assumptions, these forward-looking statements may be influenced by numerous risks and uncertainties which include changes in government regulation, tax regimes and other incidental factors that could cause actual outcomes and results to be materially different from those expressed or implied.