prozone intu properties ltd share price Management discussions

According to the World Economic Outlook Update by IMF, released in July 2023, global growth will decline from an estimated 3.5 percent in 2022 to 3.0 percent in 2023 and 2024.

Economic Overview:

Global Economy:

The global economic landscape underwent a significant shift during the reporting period, marked by several notable trends and developments. Notably, the outlook for the worldwide economy turned positive early in the year, with various indicators suggesting improvements. Infiationary pressures experienced a decline, particularly concerning global energy prices, which were retraced to levels last observed before the Ukraine invasion.

Furthermore, the impact of base effects resulting from the energy price surge following the invasion is diminishing. This reduction is anticipated to exert additional downward pressure on inflation in the upcoming months. Similar trends were observed across other commodity categories, and global food prices also exhibited a decrease.

While inflationary pressures waned on a global scale, select economies continued to grapple with elevated domestic inflation, particularly in those with tighter labour markets. However, even within these economies, inflation reached its zenith around the latter half of the preceding year. As we move forward, headline inflation is anticipated to maintain its downward trajectory this year, potentially aligning with central banks inflation targets by 2024.

According to the World Economic Outlook Update by IMF released in July 2023, projects global growth will decline from an estimated 3.5 percent in 2022 to 3.0 percent in 2023 and 2024. While the

2023 forecast is slightly higher than the prediction offered in the April 2023 World Economic Outlook (WEO), the growth remains subdued relative to historical benchmarks.

Elevated central bank policy rates aimed at tackling inflation continue to exert a dampening effect on economic activity. Forecasts indicate that global headline inflation is set to reduce from 8.7 percent in 2022 to 6.8 percent in 2023 and further to 5.2 percent in 2024. Underlying (core) inflation is expected to decrease at a more gradual pace. Forecasts for inflation in 2024 have been revised upward, underscoring the complexity of managing inflation expectations.

A primary focus for most economies is achieving sustained disinflation while ensuring financial stability. In this context, central banks are advised to emphasise restoring price stability and enhancing financial supervision and risk monitoring.

Key risks to global growth include the enduring influence of inflation driven by tight labour markets and exchange rate depreciation, possibly resulting in unanchored inflation expectations. Financial markets could undergo unforeseen repricing, leading to increased expectations of rising interest rates and decreased asset prices. This could tighten financial conditions, placing stress on both susceptible banks and nonbank institutions. Challenges might emerge in Chinas recovery due to real estate contraction, subdued consumption, and inadvertent fiscal tightening. Additionally, emerging market economies might experience heightened debt distress due to sustained high borrowing costs. Geoeconomic fragmentation could be exacerbated by geopolitical tensions, potentially resulting in trade restrictions, capital, and technology movement limitations, and hindered multilateral cooperation. This could subsequently impact commodity prices and the provision of global public goods.

Indian Economy:

In August 2023, the global rating agency Fitch downgraded the US Sovereign Rating from AAA to AA+, citing expected fiscal deterioration. In a period when most developed countries are facing the dual challenge of inflation and slowdown, India is standing firm on almost every front. S&P Globals report titled ‘Look Forward: Indias Moment has expressed confidence in Indias economy, projecting an average annual growth rate of 6.7% from the fiscal year 2023-24 to FY31. It also mentions that Indias GDP will nearly double to a $6.37 trillion economy by FY31. Morgan Stanley has also upgraded Indias rating to ‘Overweight, believing the country is poised for sustained economic growth with a substantial capex and profit outlook.

A key driver here is a significant shift in Indias income pyramid. India is projected to change from a poor-dominant country to a middle-class dominant one in the next decade. This change will bring many millions of people out of poverty in India. It will lead to a rapid rise in consumption and spending. A recently published report of Shiprocket, an e-commerce enablement platform, expects consumer spending to touch $4 trillion by 2030. It also predicts that consumer spending in the economy will rise at a CAGR of 10 per cent due to the domestic consumer expenditure and consumption market.

SBI Researchs recent study envisions an impressive trajectory for Indias per capita income, poised to multiply sevenfold by FY47, ascending from the current Rs2 Lakh to Rs14.9 Lakh. The study illuminates the growing middle class while also projecting a substantial surge in income taxpayers, expected to surge from 70 million to 482 million within the same timeframe.

Indian Real Estate Sector:

In the wake of formidable challenges stemming from the Covid-19 Pandemic, Indias real estate sector has de_ed adversity and surged forward, witnessing a remarkable surge in demand. The swift ascent of Indias burgeoning middle class, accompanied by an increasing a_ordability index, has given rise to a substantial cohort with the financial capability to engage in property acquisition. This phenomenon has ignited a notable uptick in housing demand, notably within the affordable and moderate price brackets, contributing to the sectors resurgence.

Undoubtedly, Indias real estate landscape is symbolic of dynamism and rapid evolution, positioning itself among the most vibrant and transformative markets on a global scale. According to a recent comprehensive industry assessment, Indias trajectory is set to encompass a staggering $1 trillion in real estate transactions by 2030, propelling the sector to a significant 13 percent contribution to the gross domestic product (GDP) by 2025. This meteoric rise in Indias real estate realm finds its roots in several pivotal factors.

Key reasons behind the rise of the real estate sector in India:

1. I nfrastructure Boost and Real Estate Demand: The governments investment in infrastructure development has enhanced urban living and spurred demand for real estate as people seek homes in well-connected areas.

2. F oreign Investment Attraction: India is emerging as an appealing destination for foreign real estate investors due to its robust economic growth, rising incomes, and favourable investment climate.

3. G overnment Backing: Government incentives such as tax reductions and subsidies for homebuyers have catalysed the real estate market, creating a more favourable investment environment.

4. I ntegrated Lifestyle Trend: Homebuyers are increasingly drawn to integrated living spaces, encompassing amenities like offices, parks, schools, hospitals, and malls. This preference for a self-contained, secure lifestyle is driving the growth of township living.

5. P ositive Surge in Township Living: The demand for integrated townships is rising, aligning with the need for social, civic, and recreational amenities. Township Livings multi-layer security systems provide residents with a serene and secure living environment, contributing to its growing popularity in 2023 and beyond.

Indian Retail Sector:

In recent years, India has experienced a surge in captivating international corporations, solidifying its position as the fifth-largest global hub for retail endeavours. This upward trajectory is underpinned by a confluence of dynamics, encompassing the ascent of disposable incomes, the immersion of Generation Z in global brands, and an improved business environment conducive to growth.

Recognising the sectors pivotal role in holistic economic progress, the central government has extended comprehensive support. This includes bestowing full foreign direct investment (FDI) clearance of 100 percent via the automatic channel for the online retailing of products and services. Additionally, a noteworthy announcement pertains to integrating retail and wholesale trades within the ambit of Micro, Small, and Medium Enterprises (MSMEs). This reclassification can unlock access to priority sector loans for these trades. The governments strategic focus on orchestrating a digital transformation has yielded highly advantageous outcomes. This revolutionary move has not only been a boon for the retail industry but also for numerous other sectors that are harnessing the benefits of this forward-looking innovation. is The Indian retail landscape is poised to achieve remarkable milestones, with projections from the Boston Consulting Group (BCG) indicating a substantial value of US$ 2 trillion by 2032. This sectors significance resonates throughout the economy, contributing over 10% to the gross domestic product (GDP) and sustaining around eight% of the nations employment.

In India, organised retails current share remains relatively modest (~18.5% in FY 2022), contrasting with more mature markets like the US, the UK, and Germany, where organised retail has deeply penetrated. However, the online sector has witnessed exponential growth in emerging markets like China. Within India, both the online and organised brick-and-mortar channels are poised for notable expansion. Anticipated 29% and 19% CAGR growth rates between FY 2022 and FY 2025 for the online and organised retail channels underscore the sectors dynamic trajectory.

The allure of Indias substantial middle class and relatively untapped retail landscape is a compelling magnet for global retail giants venturing into novel markets. This strategic entry is poised to accelerate the growth trajectory of the Indian retail industry. As the purchasing power of urban Indian consumers continues to rise, product categories such as apparel, cosmetics, footwear, watches, beverages, food, and even jewellery are transforming into preferred choices for both business and leisure among the urban demographic.

Although organised and online retail penetration appears to be established in the Top 8 cities, Tier 1 and Tier 2 cities offer promising opportunities to expand and advance organised brick-and-mortar retail, featuring penetration rates of 22.1% and 4.5%, respectively. As these urban centres experience economic growth and observe an elevation in consumer aspirations, a favourable atmosphere emerges for organised retail entities to take advantage of the untapped market potential.

Indian Residential Housing Sector:

Indias real estate sector is now primarily propelled by the housing market. In the top seven cities, sales of approximately 3.79 lakh units were recorded, marking a robust 36% growth from the previous year, as detailed in an extensive report. Within these urban centres, growth spans from 24% to an impressive 77% in the total value of housing sales during the year. Notably, Pune achieved an outstanding 77% increase in both sales volume and value. Other major cities, including Bengaluru, Mumbai Metropolitan Region (MMR), and National Capital Region (NCR), saw growth rates of 49%, 46%, and 42%, respectively.

The fiscal year 2023 witnessed a significant milestone, setting a record for the highest sales volume across these top cities, with around 3.79 lakh units sold—an exceptional 36% increase over the previous year. Residential real estate transactions also surged, amounting to Rs3.47 lakh crore—a substantial 48% jump compared to FY22. The housing markets prominence in driving Indias real estate sector is evident. Particularly, the Mumbai Metropolitan Region (MMR) plays a key role, contributing significantly to both sales value and volume. Approximately 30% of the total units sold during the fiscal year were in MMR, with this sold stock valued at Rs1.67 lakh crore, representing 48% of the overall sales value share.

Key Drivers for Residential Housing Sector:

1. Urbanisation Boost: Indias urbanisation is forecasted to reach 50% by 2050, accommodating 600 million urban dwellers by 2030. Escalating urban lifestyles and increased household incomes fuel the demand. While Tier I cities are set to expand further, growth in Tier II and Tier III cities is also evident.

2. R eal Estate Resurgence: A robust real estate recovery is underway amid the pandemics impact. Government initiatives propel growth, targeting $1 trillion by 2030 from $200 billion in 2021, comprising 13% of GDP by 2025. Retail, hospitality, and commercial real estate meet Indias infrastructure needs.

3. Housing for All Drive: Post-pandemic, government subsidies bolster affordable housing demand, aligning with the "Housing for All" mission. PMAY (U) achieves 75.3 lakh dwellings, aided by Rs8.19 lakh crore investment, including Rs2.02 lakh crore from the central government.

4. G reen Building Momentum: Green practices revolutionise affordable housing, offering energy-e_cient solutions with reduced operational costs. Rising eco-awareness and economic benefits elevate the demand for sustainable structures, promising long-term energy and cost efficiencies.

Company Overview:

Prozone Realty Limited is committed to crafting superior-grade, prominent shopping centres, residential complexes, and multifaceted mixed-use projects across India. Anchored by the profound expertise of its leadership and subject matter specialists, the Company thrives on its extensive experience. It holds a strong presence within Indias vibrant Tier II and Tier III cities, undergoing vigorous urbanisation, while simultaneously exploring avenues for expansion into the Tier 1 cities, thus positioning itself to wield influence across diverse urban landscapes.

Fully Paid-Up Land Bank:

Prozone Realty boasts a wholly paid-up land portfolio spanning 139 acres, backed by a maximum sale Floor Space Index (FSI) of approximately 15.32 million square feet (MSFT). These strategically situated land parcels grace sought-after regions, including pivotal and rapidly evolving Tier-II cities such as Aurangabad, Nagpur, Indore, Coimbatore, and the Tier-I city of Mumbai. Within this substantial 15.32 MSFT land portfolio, 2.1 MSFT have already undergone development, while innovative ventures are currently in the planning and implementation phases. A vast portion of 13.23 MSFT remains available for monetisation. Notably, proactive development has commenced in Nagpur, Coimbatore, and Indore. With the added advantage of being entirely debt-free, Prozone Realty is distinctly positioned to execute, evolve, and oversee these exemplary mixed-use edi_ces, underlining its prowess in the domain.

Strong Association with brands:

Prozones robust partnerships with renowned national and international brands continue to drive the development of future retail centres. The Prozone Mall in Aurangabad boasts around 14 anchor tenants and over 100+ stores, signed & operational. Meanwhile, the Coimbatore location has 16 anchor tenants and more than 100 stores in similar stages of development.

Prominent names like H&M, M&S, Smart Bazaar, Shoppers Stop, Croma, Globus, Pantaloon, Zudio, Reliance Trends, Reliance Digital, Inox Multiplex, Max, Mr DIY, and Lifestyle are among the anchor retailers at the Aurangabad Mall. During the past months, more than 11 new brands have initiated operations or signed Letters of Intent (LOI), encompassing an expansive 41,000 square feet of Gross Leasable Area (GLA). Additionally, discussions are underway for an additional 25,000 square feet of GLA at the Aurangabad mall, involving the potential inclusion of over five new brands.

The Prozone Mall in Coimbatore has garnered a solid following, featuring anchor brands such as H&M, M&S, Lifestyles, Spar, Reliance Trends, Reliance Digital, Westside, Pantaloons, Reliance Fashion Factory, Hamleys, Max, Unlimited, Croma, Zudio, Fun Unlimited, and Inox Multiplex. In recent months, 7 new brands spread over 11,000 sq ft of GLA have commenced operations or signed LOI. Further over 8 new brands are under discussion for additional 43,000 sq ft of GLA at Coimbatore Mall including 30,000 sq ft of build to suit expansion.

Our Business Model:

Business Strategy for Malls:

Prozone is actively extending its footprint across Tier 1 cities through strategic collaborations with reputable partners. At the core of the Companys business strategy lies the pursuit of significant land acquisitions in strategically chosen locations within thriving urban corridors while concentrating on developing mixed-use projects. The Anchor Asset, a notable Retail Centre with regional prominence, is a focal point of the plan, encompassing roughly one-third of the land parcel and functioning predominantly as a "Build and Long-Term Lease Asset."

The remaining two-thirds of this comprehensive land bank are ingeniously allocated to creating diverse mixed-use projects, including residential enclaves and commercial complexes. A "Build & Sell" approach guides the development of these residential and commercial properties, ensuring the consistent generation of free cash flows for your Company. Simultaneously, this perspective simpli_es the execution of the "Build & Lease" concept for the Retail component, resulting in Debt-Free Annuity Assets and a steady stream of free cash flows to fuel future projects.

Business Strategy for Residential Projects:

The Companys approach to Residential projects is characterised by meticulous groundwork involving the development of essential site infrastructure and facilities and diligently acquiring all necessary approvals before project initiation. This conscientious preparation stands as a unique selling proposition for our Residential endeavours. This prudent approach not only nurtures a strong brand reputation but also ampli_es the overall sales momentum of the project, resulting in enhanced cash flows.

The effectiveness of our strategy is underscored by the positive reception received from the launches of our residential projects in Nagpur and Coimbatore. The Nagpur Residential project is currently in the process of unit handovers, with 100+ units handed over to date. Despite challenging circumstances, the Coimbatore project, initiated in FY2020, garnered commendable customer feedback. In Coimbatore, two residential towers are under construction, with around 175 units already booked. Meanwhile, the Indore Residential Phase 1 has been completely sold, and the second phase is currently in the pipeline.

As we move forward, Prozone remains dedicated to implementing cost-e_ective strategies to amplify project promotion. The Company is also exploring integrating technology into its business operations, accompanied by establishing a dedicated CRM team to manage customer relations adeptly. These initiatives seamlessly align with our overarching vision to elevate the customer experience and steer the success of our projects.

Project Portfolio Summary SPV




Phase 1 of Prozone Trade centre (PTC) office space project delivered.

Retail: Leasing stands at 77%, working towards further increasing occupancy.

Key Brands: H&M, M&S, Smart Bazaar, Shoppers Stop, Croma, Globus, Pantaloon, Zudio, Reliance Trends, Reliance Digital, Max, Mr DIY, Lifestyle, Inox Multiplex amongst others.


Both footfall and retailer sales from Aurangabad have surpassed pre covid levels and have shown encouraging YoY growth.

Ownership - 34.71%

Residential Project Phase1 - 4 towers of 14 floors comprising 336 apartments completed. Units - 272 sold for a sales value of Rs1,713 Mn.

The retail design has been finalised, and project approval are in process

Development Status: Part OC obtained for units up to 11 floors.


Ownership - 61.50%

Phase 1 of Plotted development of 74 plots sold & delivered.

The second phase of the project is in the pipeline.


Ownership - 60.00%

Phase 1 of 360 luxury units launched - 175 units booked.

Leasing Status: Leasing stands at 91%, working towards further increasing occupancy

Development Status: Construction of Initial Infrastructure completed, Residential Tower construction in progress.

Key Brands: H&M, M&S, Lifestyles, Spar, Reliance Trends, Reliance Digital, Westside, Hamleys, Max, Unlimited, Croma, Zudio, Fun Unlimited & Inox Multiplex, amongst others


Both footfall and retailer sales from Coimbatore have surpassed pre covid levels and have shown encouraging YoY growth.

Ownership - 61.50%

Phase 1 Launch 460 units – 432 units booked. Phase 2 Launch 550 units – 129 units booked. Planning & approvals in process for balance phases to consume sale FSI.

Development Status: Possessing full ownership of the vacated land parcels, the rehabilitation of buildings 1 and 2 has been finalized, while constructions are in progress for buildings 3 and 4.


Risks and Concerns:

Economic Risk:

The emergence of the pandemic and subsequent lockdown orchestrated a sweeping halt in economic activities across the nation, ushering in a temporary pause. In the aftermath, the gears of economic resurgence were set in motion. Yet, the landscape has been complicated by global supply chain disruptions, a precipitous energy crisis, and a surge in living costs. These complex challenges have arrested the recovery and cast shadows on a potential global economic recession. While Indias economy exhibits a resilient demeanour, it remains susceptible to the prevailing global headwinds due to its heightened engagement on the international stage.

This attribute of Indias economic trajectory holds the potential to exert an influence on the Companys performance. The trajectory of the Companys operations is intrinsically intertwined with economic growth, which acts as a catalyst for amplifying disposable incomes and, in turn, shaping consumption behaviours. The marketing of residential properties is also likely to encounter obstacles due to plausible project delivery delays and constrained financial resources. Nonetheless, Indias promising demographic trends, the substantial pool of adept labour, augmented integration with the global economic ecosystem, and the in_ux of domestic and foreign investments collectively afirm that the Indian economy remains poised to sustain its upward trajectory in the years ahead.

Business Risk:

Operating within thriving urban hubs, the Company strategically positions itself where retail consumption _ourishes, propelled by the notable in_ux of the working populace migrating from smaller towns and rural landscapes. A deceleration in urbanisation could subsequently lead to a commensurate moderation in the absorption rates of real estate infrastructure within the developmental pipeline. However, the Companys adept management has adeptly mitigated this potential risk through a meticulous, well-structured approach to development, thereby diminishing its impact to an exceptional degree.

Policy Risks:

The real estate arena, encompassing Malls and Housing Projects, is profoundly susceptible to the influence of government policy changes. These segments are intricately linked to policies concerning interest rates, tax regulations, government schemes, and subsidies. The direct and indirect effects of these decisions substantially impact profitability and operations. For Malls, policy shifts influence consumer spending and retail dynamics. Interest rate changes affect borrowing and purchasing power, while tax adjustments impact disposable income. Alterations in government schemes reshape the appeal of malls for retailers and shoppers, directly influencing their operational environment.

Similarly, Housing Projects face policy-driven challenges. Interest rate fluctuations impact housing a_ordability and demand, while tax rate changes affect buying decisions. Government initiatives to boost affordable housing reshape the market dynamics for housing projects. Companies in these sectors proactively respond to policy risks.

By staying informed and agile, they adjust strategies swiftly to align with evolving policy paradigms. Open communication with government bodies helps anticipate and manage policy changes effectively.

Brand Risk:

Preserving the sanctity of the Prozone Realty brand is paramount, as any event casting a shadow over its image can diminish the brand value and exert an unfavourable impact on the Companys operations. To ensure the integrity of the brand remains untainted, the Company maintains an unwavering commitment to upholding its brand attributes in all interactions with customers and trade partners. A meticulous focus on customer preferences is paired with comprehensive in-house research endeavours, enabling the Company to sustain a strong brand presence within the customer base. The Company effectively cultivates a lasting association between the brand and its customers through these concerted efforts.

Recognising the significance of brand risk, the Company has developed a robust mitigation strategy. By proactively addressing potential challenges, the Company aims to safeguard the brands reputation and maintain its stature as a reputable and trustworthy entity in the market.

Internal Control System:

Prozone maintains robust internal control protocols tailored to the scale and essence of its operations. Our comprehensive internal audit regimen supplements these controls, subjecting our internal control framework to consistent evaluations conducted by management. Stringently documented policies and guidelines further fortify this system, ensuring the integrity of records used to compile financial statements and related data. The Companys commitment to aligning with best-in-class accounting practices is evident through its ongoing enhancement of these systems. Prozone has established independent audit mechanisms to oversee the entirety of our operations. The Audit Committee of the Board plays a pivotal role in routinely assessing the outcomes and recommendations derived from internal audits, reinforcing the Companys dedication to maintaining transparency, accountability, and optimal governance standards.

Financial Performance:

The Company recorded Revenues of 1732 million and EBITDA of 1130 million during the year under review. FY2023s EBITDA was up by 86% compared to FY2022. The increase is due to the starting of revenue recognition taking place from the Indore project. The Company has maintained a healthy balance sheet, with low leverage and a Gross Debt/Equity ratio of 0.82 on a consolidated basis.


Current Period Previous Period Numerator Denominator


(a) C urrent Ratio 1.75 1.9 Current Asset Current Liability
(b) D ebt-Equity Ratio 0.82 0.98 Total Debt Equity

(c) D ebt Service Coverage Ratio

2.84 1.21 Earnings before interest, depreciation, and tax Interest+ Principal Repayment

Increase in debt service coverage ratio is due to increase in EBIDTA in the current year as compared to previous year.

(d) R eturn on Equity

4.60% -0.19% Net profit Equity share capital

Increase in ROE due to increase in Net profit after tax in the current year as compared to previous year.

(e) I nventory Turnover

0.38 0.21 Revenue from operation Average Inventory

Increase in inventory turnover ratio is due to increase in revenue in the current year as compared to previous year.

(f ) T rade Receivables turnover ratio

8.13 3.62 Revenue from operation Average trade receivable

Increase in Trade receivable turnover ratio is due to increase in revenue in the current year as compared to previous year.

(g) T rade Payables turnover ratio

3.04 1.68 Purchase Average trade payable

Increase in trade payables turnover ratio is due to Increase in purchase during the current year as compared to Previous year.

(h) Net Capital Turnover ratio


3.72% Revenue from operation Equity

Increase in net capital turnover ratio is due to increase in revenue in the current year as compared to previous year.

(i) Net P rofit Ratio 22.13% -1.59% Net profit after tax Revenue from Increase in net profit ratio is due to operations increase in net profit in current year as compared to previous year. (j) R eturn on Capital 9.05% 4.85% Earnings Total Assets - Increase in return on capital employed before interest, Current Liabilities employed is due to increase in EBIT depreciation, and in current year as compared to tax previous year.

(k) R eturn on 2.01% 2.51% Income generated Average investment from investment Investment

Human Resource:

Prozone consistently devotes resources to foster a positive and enabling work environment, recognizing its human capital as its most invaluable asset. The Company deeply appreciates the accomplishments and untapped potential of its workforce, providing them with avenues to seize opportunities and embrace challenges. As of March 2023, Prozone employed a dedicated team of over 84 professionals. While the fundamental organizational structure remained unchanged, periodic adjustments at the operational level were implemented to align personnel strategically. This strategic realignment optimizes workforce efficiency and fully leverages their technical pro_ciencies. In line with our commitment to excellence, we are strategically pivoting towards collaborating with external partners to tap into their domain expertise, exposure, and experience. This shift enhances our capabilities and furthers our pursuit of innovation.

These personnel realignments are meticulously crafted to amplify staff output and align closely with the Companys objectives and various projects. The senior team and project-level management consistently deliver outcomes that align seamlessly with the Companys overarching strategic goals, reinforcing the harmonious synergy between individual efforts and the collective mission.

Employee Engagement and Welfare:

Prozone frequently initiates endeavours aimed at enhancing the skill sets of its workforce. The Company orchestrates various events, celebrations, and gatherings to cultivate a work environment characterised by camaraderie and mutual support. During the challenging period of the Pandemic, Prozone demonstrated its commitment to employee welfare by orchestrating vaccination camps for both employees and their families. Moreover, the Company implemented flexible work-hour arrangements, accommodating its workforces evolving needs and circumstances.

Prozones dedication to its personnel extended beyond mere logistics, as it continued to roll out tailored and comprehensive health initiatives, spanning individual well-being to encompass collective corporate health endeavours. By nurturing an ethos of teamwork, benevolence, and unity, Prozone imbues its employees with the spirit to persevere and excel even in the face of adverse conditions.

Cautionary Statement:

Contained within this document are statements pertaining to anticipated future events, financial outcomes, and operational results concerning Prozone Realty Limited. Such statements fall under the purview of forward-looking statements, necessitating the Company to establish assumptions and navigate inherent risks and uncertainties. It is essential to recognise a notable risk that the beliefs, prognostications, and other forward-looking observations might not prove accurate.

Readers are advised to exercise caution and refrain from placing undue reliance on forward-looking statements, as various variables possess the capacity to precipitate disparities between underlying assumptions, actual forthcoming outcomes, and events, contrasting with those articulated within the forward-looking statements. Considering this, the content of this document is subject to a comprehensive disclaimer. It is further qualified by the assumptions, qualifications, and risk factors expounded upon in the Managements Discussion and Analysis section of the Prozone Realty Limited Annual Report for the fiscal year 2023.