prime urban development india ltd Management discussions

Indian Economy Introduction

Indias real estate market is one of the fast-growing in the world. While it has witnessed growth in recent years, the unforeseen problems posed by the pandemic during the periods 2020-22 brought about radical change in the sector, and ushered several challenges.

International Monetary Fund (IMF) raises growth forecast for India, which is set to be fastest growing major economy in 2023. The IMF now expects India to grow 6.1% in 2023 and 6.3% in 2024. Hence the growth in the Realty sector is also expected in line with the overall growth.

Opportunities and Threats:

Opportunities for the sector are very wide especially in the residential sector and commercial complexes. Further to this infrastructure development area is giving a good scope for the business.

Threats are mainly due to sudden hike in prices of raw materials like Cement, Steel. But Industry specific, the shortage of skilled labour is a challenge due to dislocation of labours which is slowly being addressed.

Project Wise Details

At Prime Urban we are currently engaged with the following projects:

• Prime Crest Residential Apartment Project at Coimbatore- Prime Crest project was taken up through our Partnership Firm, Messrs Prime Urban Developers for construction of apartments. The Project was completed and all the apartments were handed over to the prospective customers during the financial year 2022-23.

• Land Project at Kotagiri- A land development project is taken up at hill station, Kotagiri, near Ooty through our Partnership Firm, M/s. Prathan City Developers LLP in which land to be sold in piece and parcels to prospective buyers. The market intake is choosy and having good prospects for the said project.

Overall outlook:

Overall outlook for real estate continues to be progressive. With an expanding economy, increasing commercial operations and rising income are expected for this sector in the coming time.

Risk and concerns:

Even though Covid-19 Pandemic had kept the realty section business at the back seat, the business is slowly picking up with the various efforts of Government. Skilled labours are returning to work and the business is fitting into the present economic growth.

Internal Control Systems and adequacy:

The Company is having adequate internal control systems and it is in line with the volume and line of business. The financials are undergoing internal audits conducted by designated external Auditors of Professional Firm.

Key financial ratios

For various key financial ratios, kindly refer schedule no. 21.11 of additional information to the financial statements.

Disclaimers:

Certain statements in the “Management Discussion and Analysis” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including but not limited to those relating to general business plans and strategy of the Company, its future outlook and growth prospects, future developments in its businesses, its competitive and regulatory environment and managements current views and assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, finished goods prices, stock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, competitors actions, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. Company assumes no responsibility to publicly amend, modify or revise any statement, on basis of any subsequent development, information or events, or otherwise. The “Managements Discussion and Analysis” does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Companys securities.