Ladies & Gentlemen
It is my pleasure to welcome you to the 14th Annual General Meeting of your Company.
India has emerged as the fastest growing major economy in the world and is expected tobe one of the top three economic powers of the world over the next two decades. Thisgrowth calls for a significant demand and investment in terms of supportinginfrastructure. Towards this effect the Indian real estate market is expected to grow totouch US$180 billion by 2020. Real Estate sector in India is the second largest employerand is slated to grow at nearly 30 per cent over the next decade. The constructionindustry ranks third among the 14 major sectors in terms of direct indirect and inducedeffects in all sectors of the economy. Housing sector is expected to contribute around 11per cent to India's GDP by 2020. Retail hospitality and commercial real estate are alsogrowing strongly in line with India's growing infrastructure needs.
In order to augument the Mission of "Prime Minister's vision of Housing for all byyear 2022" Govt. of India has announced certain more benefits to the new housebuyers in the form of Tax savings on the bank interest and rate of interest on housingloans. Also area under affordable house has been increased to 90 Sq. Mt. as against the 60Sq. Mt. earlier in Punjab. It will boost the demand for affordable housing in a big way.
The Smart Cities Mission announced by the Government of India aims to build 100 SmartCities in the country to make them sustainable and citizen friendly. Apart from the abovereal estate continues to grow on the back of supportive factors like increasingurbanisation budgetary push for affordable housing and increasing affluence of themiddle-class population.
During the current period fiscal Goods and Services Tax (GST) and Real Estate(Regulation & Development) Act (RERA) played a very significant role in redefiningreal estate in India. These legislative changes have resulted in modification of severalprocedures/ regulations related to the real estate and construction industry. With thesesector reforms there would be increased transparency in the industry and in the long runthis would attract more private equity investments in Indian real estate assets which willprove to be a game-changer in the coming years. The initiatives to further formalise thesector have been reflected at the customer end as well and this is validated by anincreased preference by customers for spaces developed by established and branded builderslike Prestige.
Your Company has proactively realigned its financial structure and prepared itself tosuccessfully execute new launches taking the new legislative requirements intoconsideration. We crossed 5 mn sq. ft. of developable area as well a very importantmilestone in our over 9-year journey. During the year we took the completion of our twoprojects Phase III and Phase I of Jalandhar Heights and Jalandhar Heights-2 respectively.As present about seven projects are under construction.
It's our pride to announce that the company has started giving possession of our maidenproject AGI Smart Homes under affordable segment which got the overwhelming response fromthe public.
Your Company has grown over the years with the promise of committed delivery and bycelebrating the value of partnerships and relationships. This year too we have strived tocreate exceptional value for all our stakeholders including the society.
As another year passes by we continue with the same set of corporate values that haveguided us over past decade.
As we go on continuing to build more landmarks and setting greater benchmarks ourquality focus and customer obsession shall remain persistent. We constantly exploreavenues to invest better and regularly research the changing preferences of our variedcustomer groups. As we grow and expand we continue to be at the receiving end of severalawards and accolades for facets of these attributes that we consciously nurture. You canfind the details of these recognitions in the Annual Report.
As you know ours is a listed company at Bombay Stock Exchange. Ind AS were madeapplicable to the listed companies under which the company can register turnover only whenthe rights are transferred in the property. This is the reason the turnover of the companyshowed sharp decline and the advances from customers and inventory has shown a sharpincrease. In the coming years the turnover of the company will increase and according PBTand PAT will also show increasing trend.
On behalf of the entire leadership team I would like to thank our valued customersshareholders suppliers business associates bankers and all other stakeholders for theconfidence they have reposed in our Company. I seek the encouragement and support of allstakeholders for our future endeavours.
With Best regards