FORWARD-LOOKING STATEMENTS
The report contains forward-looking statements, identi ed by words like
plans, expects, will and so on. All statements that address expectations or
projections about the future are forward-looking statements. Since these are based on
certain assumptions and expectations of future events, the Company cannot guarantee that
these are accurate or will be realized. The Companys actual results, performance or
achievements could thus di er from those projected in any forward-looking statements. The
Company assumes no responsibility to publicly amend, modify or revise any such statements
on the basis of subsequent developments, information or events.
ECONOMIC OVERVIEW
India recently released GDP estimates for the October December quarter
of FY 2022 23 (Q3) along with revisions of the past three years data. GDP data suggests
that India emerged stronger from the pandemic than initially assumed, with growth
gathering steady momentum since FY 2022 23 ( gure 1). GDP growth for FY 2020 21 was
revised up by 0.77 percentage points, implying the recession was not as deep as previously
thought. For FY 2021 22, meanwhile, growth was revised up from 8.7% to 9.1%, suggesting
stronger rebound. This upward revision was primarily because of the
stronger-than-anticipated growth in manufacturing and construction.
India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24,
depending on the trajectory of economic and political developments globally, according to
the Economic Survey 2022-23 released by Ministry of Finance. Economic survey 2022-23
projects a baseline GDP growth of 6.5 per cent in real terms in FY24. Economy is expected
to grow at 7 per cent (in real terms) for the year ending March 2023, this follows an 8.7
per cent growth in the previous nancial year.
INDUSTRY OVERVIEW
Excel Realty N Infra Limited (Formerly known as Excel Infoways Limited)
(hereby known as Excel) has been continuously striving to achieve growth and success in
operating in the multi business segments. It operates in 3 segments i.e. Infrastructure,
BPO / IT enabled services and general trading segment.
The real estate market in India is expected to increase to Rs.65,000
crore (US$ 9.30 billion) by 2040, up from Rs.12,000 crore (US$ 1.72 billion) in 2019. The
Indian real estate sector is predicted to be worth $1 trillion by 2030, up from $200
billion in 2021, and to contribute 13% of the countrys GDP by 2025. Retail, hotel, and
commercial real estate are also expanding rapidly, supplying much-needed infrastructure
for Indias expanding requirements. Currently making up 7% of the GDP, the real estate
industry is predicted to increase that to 10% by 2025. The industry in India is expected
to be worth USD 1 trillion in the next years as the country strives for a USD 5 trillion
economy.
BPO Role in Indias Economic Growth has been tremendous, especially in
the last few years, when the demand for outsourcing work to India has been signi cant
among western companies. The role played by BPOs in boosting Indias economy shows that
the IT and ITeS sector have been contributing largely to the economic growth of India. The
growth in the contribution of BPOs to Gross Domestic Product has shown a steady rise from
1.2% to 5.4%. It is hence evident that the BPO industry is making an impact on the Indian
economy.
SEGMENT-WISE PERFORMANCE
Infrastructure Activity -
The Company is exploring various avenues to enhance the revenue
generated by Infrastructure Sector. The Company has generate a revenue of Rs. 12,270.60
(000) in the Infrastructure segment this year. Due to the impact of the Covid 19 pandemic
the company was not able to generate any revenue from the Infrastructure Sector in the
previous year.
ANNUAL REPORT 2022-2023
IT/ BPO
The IT and BPO segment is engaged in the business of providing customer
care services and handling the business relations of clients on their behalf by
maintaining relation with their consumers and also providing them service by assisting
them in managing their work ow and updating their records. We provide inbound and outbound
services to our clients. The Company could not generate any revenue under this segment
this year, as compared to previous years revenue of Rs. 107.45 (000).
General Trading
The Company is engaged in the business of general trading. The revenue
generated under this segment is Rs. 52,258.57 (000) as compared to previous year of Rs.
86509.19 (000).
OUTLOOK
The prime motive of the Company has been pro table growth and to
achieve the same, the Company has been fast re shaping its process aligning its people to
the vision of creating long term shareholder value. The Management believes that there is
signi cant potential for growth for the Company being multi segment Company. Your Company
is recognized by clients for ability to bring in an integrated perspective and ability to
bring in innovative ideas, and to draw learnings and apply insights from one company or
sector to another and ability to provide end-to -end services. Our clients value our
consistent excellence in execution and our ability to proactively incorporate relevant
innovation. Despite challenging environment, the management of your Company is continuing
its e orts to bring favorable results and hence looks in the intricacies of designing,
developing and construction of the project with an eye to perfection.
DISCUSSION ON FINANCIAL PERFOMANE WITH RESPECTIVE TO OPERATIONAL
PERFORMANCE
The operations of the company were adversely a ected post pandemic. As
a result, we had a loss in the previous Financial Year of Rs. 25,807.19 (000). The
Company has now however, managed to get into Pro ts for this Financial Year of Rs.
26,251.24 (000). Though the Revenue from Operations of the Company has decreased from
Rs.86,616.64 (000) in the previous Financial Year to Rs. 64,529.17 (000) in the current
Financial Year, Other Incomes has increased in this Financial Year to Rs. 60,468.86
compared to the previous year of Rs. 15,785.64 (000) due to increase in Interest Income,
Sale of Fixed Assets, etc .However, we are hopeful that there will be a gradual
improvement in business conditions.
During the year under review, the Companys expenses has reduced to Rs.
98,740.14 (000) as compared to the previous year of Rs. 1,27,977.47 (000).
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
| Sr.No. Particulars |
2022-2023 |
2021-2022 |
Rationale |
| 1. Debtors Turnover |
2.74 |
1.13 |
Due to increase in credit sales made by the company. |
| 2. Inventory Turnover |
21.38 |
37.09 |
Due to reduced consumption of goods. |
| 3. Interest Coverage Ratio: |
(29.69) |
(18.96) |
Due decrease in earnings before interest and tax. |
| 4. Current Ratio |
10.12 |
4.99 |
Due to increase in current assets and decrease in current
liability. |
| 5. Debt Equity Ratio |
0.04 |
0.06 |
Due to decrease in Total Liability and increase in Networth. |
| 6. Operating Pro t Margin |
(0.19) |
(0.10) |
Due to decrease in sales of the company. |
| 7. Net Pro t Margin |
0.40 |
(0.31) |
Due to increase in Net Pro t of the Company. |
| 8. Return of Equity Ratio |
0.02 |
(0.02) |
Due to increase in Equity and Net Income. |
| 9. Return on Capital employed |
0.02 |
(0.01) |
Due to increase in Capital Employed and EBIT. |
OPPORTUNITIES AND THREATS
The Indian real estate industry has undergone signi cant changes in
recent years, driven by factors such as the growth of the Indian economy, urbanization,
and increased demand for housing and commercial spaces. The industry has also faced
various challenges, such as regulatory issues, a lack of transparency, and a slowdown in
demand in certain segments.
OPPORTUNITIES
A ordable Housing:
The a ordable housing segment is a signi cant opportunity in the Indian
real estate sector. The governments focus on providing "Housing for All" by
2022 has created a huge demand for a ordable housing. Developers who focus on this segment
can bene t from government incentives and tax breaks.
Commercial Real Estate:
The commercial real estate segment, including o ce spaces, shopping
malls, and warehouses, o ers signi cant growth opportunities in the Indian real estate
sector. With the growth of e-commerce, there is an increasing demand for warehouses and
logistics parks.
The Company rmly believes that there will be rise in demand and growth
due to various implementations. The Company operates in multi segment business therefore
the demand should remain strong in the medium to long term. The Company understands in
order to remain competitive and to continue being a trusted partner to our customer we
need to expand our scope of services and capabilities. The Company believes there will be
strong growth and increase demand in the trading segments. The Company expects better
results in this sector due increasing rising income and growth of service sector The
Companys long term view on this Segment is positive.
The Company faced lot of economic challenges in Infrastructure sector.
The Company is also engaged in IT/ BPO activity. In this segment the Company is engaged in
the business of providing customer care services and handling the business relations of
clients on their behalf by maintaining relation with their consumers.
THREATS
Economic conditions
Excel operates in di erent segments and hence is exposed to challenges
to di erent economic conditions, trade policies, local laws, political environment and
also includes challenges like timely completion of projects and to maintain a smooth
balance between returns and risk. In addition to this, there are risks associated to
operating in di erent geographies in terms of terrain, sociopolitical and engineering
factors.
Land Acquisition:
Land acquisition is a major challenge for real estate development in
India. The process is complicated, time consuming, and often leads to disputes between
developers, landowners, and government authorities.
Construction Delays:
Delays in project completion are a common problem in the Indian real
estate industry. This can be due to a variety of factors, including delays in obtaining
approvals, shortage of skilled labor, and supply chain disruptions.
Attrition:
Excel is in an industry where attrition is one of the major areas of
concern. One of the major challenge we face is high attrition. Our constant endeavor is to
continue adding new values and services to our clients, stakeholders, etc and thereby
contribute to the overall growth.
Foreign currency risk
The nature of operations exposes the Company to multiple currencies,
uctuations in exchange rates could a ect Companys performance. Prices get reviewed and
revised in the event of signi cant currency movements. The exchange rates are volatile and
subjected to economic conditions.
Cost of people
The major risk is to retain existing talent and attract new talent. The
need to strengthen and improve leadership pipeline is an important priority to keep up
with the fast paced growth of the Company.
Regulatory environment
The Company is exposed to risk attached to various statutes and
regulations. The Company is mitigating these risks through regular review of legal
compliance carried out through internal and external compliance audits. Our ability to
manage, evolve and improve our operational, nancial and internal controls across the
organization and to integrate our widespread operations and derive bene ts from our
operations is key to our growth strategy and results of operations.
Collection of receivables from our clients
There are usually no delays associated with the collection of
receivables from our clients. Our operations involve signi cant working capital
requirements and prompt collection of receivables a ect favorably to our liquidity and
results of operations. However, there can be no assurance that any such development would
not adversely a ect our business.
RISK AND CONCERN
Market Risk related to the uncertainty associated with unanticipated
uctuations in factors that commonly a ect the entire nancial market. It may not be speci c
to the business or the industry we operate in; however, there may be an impact on
earnings. Various factors including market risk include geopolitical tensions,
pandemic/endemic, natural disasters, in ationary pressure, economic risks, etc. The
Company has a good business model with residential and annuity business. Residential
business is directly exposed to market dynamics and risks whereas annuity business which
brings in steady cash ows will not get impacted to the same extent of the residential
business.
Land is the major ingredient for real estate business. The title
related risks, risk of legal disputes and the related costs are major risks for the real
estate business. Non-availability of land at appropriate locations at a reasonable price
will lead to higher land costs. This will increase the overall cost of the project and
will have an adverse impact on the Companys performance.
Execution depends on several factors like raw material availability and
their prices, labour availability, regulatory approvals/ clearances, weather conditions
etc. Execution is very crucial. We do a lot of meticulous planning, engage reputed
contractors and have cross functional team meetings during the development of the project
to ensure timely execution of the projects with good quality of development.
Risk management is an integral part of the Companys business process.
With the help of experts in this eld, risks are carefully mapped and a risk management
framework is evolved. Pertinent policies and methods are set forth to mitigate such risks.
The Company has taken several measures to beef up its security preparedness. In addition
to the physical security measures, the Company to meet nancial obligations and other
obligations which may arise from any untoward incidents.
Company periodically assesses risks in the internal and external
environment, along with the cost of rating risks and incorporates risk treatment plans in
strategy, business and operational plans.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company maintains a system of internal controls designed to provide
a high degree of assurance regarding the e ectiveness and e ciency of operations, the
adequacy of safeguards for assets the reliability of nancial controls, and compliance with
applicable laws and regulations.
The organization is well structured and the policy guidelines are well
documented with pre-de ned authority. The Company has also implemented suitable controls
to ensure that all resources are utilized optimally, nancial transactions are reported
with accuracy and there is strict adherence to applicable laws and regulations.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The Company is dedicated and committed to provide a great workplace
that is inclusive and equal for all in all aspects as employees and customers form the
core of any and every business decision. The Company considers employees as the most
valued asset who are at the core of the business. Human Capital is most important business
driver. A strong people culture is the soul of the organization and biggest competitive
advantage for a sustainable growth. The key pillars of the core philosophy are talent care
and development, empowerment and decision making at all levels, innovation, agility and
digital transformation.
The median remuneration for the nancial year 2022-2023 was Rs. 4.56
(000)
As on 31st March, 2023, the Company had 4 permanent employees.
CHANGE IN RETURN OR NETWORTH
During the year under review the Companys total net worth is Rs.
1,709,806.27 (000) as compared to Rs. 1,684,056.29 (000) in the previous nancial year.
The net worth of the company has increased by 1.53%. The company had declared Bonus shares
in the proportion of one Equity Share for every two shares held in the Company. The
company has also subdivided its Equity Shares from face value of Rs. 10/- per Equity
Shares to face value of Rs. 1/- per Equity Share.
CAUTIONARY STATEMENT:
Statement in this Managements Discussion and Analysis detailing the
Companys objectives, projections, estimates, expectations or predictions are
"forward-looking statements" within the meaning of applicable securities laws
and regulations. Actual results could di er materially from those expressed or implied.
Important factors that could make a di erence to the Companys operations include global
and Indian demand-supply conditions, nished goods prices, stock availability and prices,
cyclical demand and pricing in the Companys principal markets, changes in Government
regulations, tax regimes, economic developments within India and the countries within
which the Company conducts business and other factors such as litigation and labour
negotiations.
For and on behalf of the Board of Directors
Sd/-
Lakhmendra Khurana
Chairman and Managing Director
DIN: 00623015
Place: Mumbai
Date: 01-07-2023
+91-9892691696
