prime property development corporation ltd share price Management discussions

"Annexure E"

During the first half of F.Y.2023, the global economy encountered various difficulties, including fluctuating prices of essential goods and resources, elevated inflation, and disruptions in supply chains resulting from the Russia-Ukraine conflict. However, the economy demonstrated resilience in the second half as it began to recover from the impacts of the pandemic and geopolitical tensions. Central banks implemented synchronized rate hikes and stricter monetary policies to effectively address these challenges, combat inflation and stabilize the markets.

Indian Economy:

The Indian economy remained relatively robust amid global economic headwinds.

Despite a challenging external environment, Indias economy has remained buoyant given strong macroeconomic fundamentals. There was a firm recovery in domestic economic activity, substantiated by movements in railway freight and port traffic, domestic air traffic, steel consumption, cement product, bank credits and GST collections. As urban demand recovers, rural demand is also witnessing gradual improvement. That said, the adverse impact of geopolitical situations, elevated commodity prices, and slowdown in the world economy continues to weigh on the countrys economic outlook. RBIs move to hike the overall repo rate might slightly affect the industry for a very short term, but this move will tame inflation ultimately benefiting the sector. The effect of the hike is expected to be offset by the improving pent-up demand and positive buyer sentiment.

Real Estate Scenario in India:

Real estate market in India is booming at an exponential rate. After the slowdown for two consecutive years caused by the global Covid-19 outbreak, the sector is making a phenomenal comeback - registering unprecedented growth. Currently, real estate is one of Indias most prominent industries in terms of generating revenue and employment opportunities. Industry experts view 2023-24 as a boom year for Indias property market.

The affordable property prices, recovering housing demand, positive buyer sentiment, reopening of offices and Government thrust towards the housing segment are aiding a solid recovery of the real estate sector. Adequate supply, sufficient liquidity and lower interest rates have helped improve the demand for home buying. The resolute need for owning a home along with a growing certainty of possible price rises has improved the housing sales velocity. Many home buyers who were waiting for the pandemic to recede are now investing in the real estate sector. As home buyers continue to prefer bigger homes, better amenities, and ideal locations with affordable pricing, the sales momentum is expected to improve further. From commercial spaces to the residential market, the overall market is expected to flourish in the years to come. The surge in economic activities coupled with an improvement in the job market and rising income levels will certainly lead to increased demand for housing.

Additionally, the luxury housing market is poised to touch new heights in the coming year. The real estate sector is going to continue on its journey of long term growth as we see a continuous rise in GDP per capita, larger disposable incomes, growing urbanization and most of all a larger focus of the world on us as the next big economy. Sustained infrastructure investments, increased connectivity, and better job opportunities will be fuelling real estate even in the smaller cities and towns in India.

As the pandemic recedes and companies resume operations from offices, the recovery of commercial real estate is encouraging. There has been a considerable shift in working habits and how office spaces are used. Businesses are looking for hybrid working spaces to fit with the increasingly flexible working culture. Several initiatives have been undertaken by the Government of India with the hope of stimulating real estate purchases. The announcements made in the Union Budget 2023-2024 with a special focus on infrastructure, stressed asset resolution, disinvestments, monetization of assets, affordable housing and tax holiday extensions will contribute towards creating a thriving atmosphere in the real estate sector.

Business Analysis, Performance & Outlook:-

The area of operation of your Company is mainly the Western suburbs of Mumbai. Identifying and developing stand-alone buildings in the luxurious and semi-luxurious segment is the specialization of the Company.

The Mumbai real estate market has been one of Indias most vibrant and dynamic, with numerous factors driving its growth over the years. With the ongoing economic recovery and rising demand for residential and commercial properties, trends in Mumbai real estate are expected to continue their growth trajectory in 2023

Buoyed by major infrastructure developments and resurging demand for homes, the countrys residential real estate market is set for another year of healthy growth. And that would come on the back of a significant boost from the Mumbai market.

Company has since embarked upon a project for high- end real estate, after receiving approval from Authorities to commence construction. Combined with partial recovery from the pandemic & improved economic activity & demand for luxurious real estate, the management of the Company expects to have improved financial results for the Company in the future years.

Opportunities, Risks & Concerns:-

Risks are part of almost every industry and real estate is no exception. Post - January 2022, the global macro factors have led to further cost escalations, especially in commodities such as cement and steel, leading to a significant increase in costs for upcoming projects. Also, given the imminent rise in the interest rate and no respite in global inflation, the quantum of increase remains uncertain.

It is believed that the demand for Real Estate shall be strong in medium to Long Term. While the government regulation initiatives like Housing for all and the Smart Cities concept shall create opportunities and improve the demand for Real Estate. Your Company did not invest in real estate in the earlier scenario and the surplus cash provides an opportunity to acquire acceptable projects, when available.

Also the Increased cost of manpower, rising cost of construction and over regulated environment is a concern for your Company. However the management of the Company shall timely capitalize on the market opportunities considering the strengths it possesses.

Segment Performance:

Your Company operates in a single business segment, namely property development; hence, no further disclosure is required under Accounting Standard 108 on segment reporting.

Internal Control Systems & their adequacy:

The Company has a regular system of internal check & control, costing, budgeting, forecasting, monitoring projections & efforts are regularly put in to further strengthen the system.

Material Development in Human Resources:

The Company uses the services of a fairly good team of Engineers, Architects, Contractors, Suppliers and Legal Advisors. The people employed by the Company and other agencies working for the project, are technically qualified/ competent and help in successful and timely execution of projects. The Company has a qualified Company Secretary and Compliance Officer to deal with secretarial work and service to shareholders.

Accounting Treatment:

The Company has duly complied with the prescribed Accounting Standards and have not followed any alternative method.

Disclaimer:

Statements in this Management Discussion and Analysis describing the Companys objectives, projections and expectations may be "forward looking statement" within the meaning of applicable laws and regulations. Actual result might differ materially from those either expressed or implied. Important factors that materially affect the future performance of the Company include the State of the Indian economy, changes in government regulations, tax laws, input availability and prices, and the state of financial markets and other factors such as litigation over which the Company does not have direct control.

Registered Office:	By order of the Board of Directors
501, Soni House, Plot No.34, Gulmohar Road No.1, JVPD Scheme, Vile Parle (W), Mumbai-400049	Prime Property Development Corporation Limited
	Sd/-
	Padamshi L. Soni
Date: 12.08.2023	Chairman
Place: Mumbai	DIN: 00006463