ANNEXURE I
1. OPERATIONS OF THE COMPANY AND BUSINESS OVERVIEW:
The Company is an ISO 9001, 18001 & 14001 certi_ed Construction Company with PWD
class 1A unlimited, CIDCO Class 1A unlimited certi_cate. It provides integrated
engineering, procurement, and construction services (EPC) for civil & structural
construction and infrastructure sector project. The Company was incorporated on April 29,
2009 and started construction activities in the same year. Head o_ce of the Company is
located in Pune and currently project sites are located in state of Maharashtra and Goa.
Currently construction activities being undertaken by us include civil & structural
construction and infrastructure projects, which are awarded by various government and
private agencies and departments. The Company is also engaged in trading of construction
materials. Our trading products majorly include steel, cement and electrical material. Our
main focus area includes:
• Civil construction projects, which include structures such as Metro
Stations, Sports Complex project (indoor and outdoor sport stadiums), Hospital,
multipurpose hall, commercial structures, Hospitals, Cold Storages, Educational
Institutions, mass housing projects.
• Water supply and drainage project.
• Road and Bridge projects.
The Company also subcontracts speci_c construction and execution work related to
projects to third party contractors. Sometimes the Company executes the project throughout
third party vendor contractor to whom we subcontract construction and other execution work
related to project. In last few years the dependence on third party contractor is reducing
continuously as the Company has been continuously developing and strengthening its own
execution capabilities and working continuously to strengthen its infrastructure, enhance
its presence and building the capabilities to execute end-to-end project on our own.
2. COMPANY PERFORMANCE:
During the year under review, your Company earned revenue of Rs. 8694.51 Lacs
(previous year Rs. 5874.18 Lacs) and the Profit before Tax is at Rs.900.39 Lacs (previous
year Rs. 720.84 Lacs) and Profit after Tax is at Rs. 664.26 Lacs (previous year Rs. 524.21
Lacs).
3. BUSINESS STRENGTHS AND STRATEGIES:
The Company has developed strong credentials for undertaking projects of various sizes
in all the areas of its business operations. The Company is a becoming a renowned brand in
building, industrial and infrastructure sector, with a capability to capitalize on
opportunities. With its deep expertise and knowledge, the Company is able to compete in
challenging and complex projects. Univastu has a strong clientele ranging various
government departments. The business provides civil construction, mechanical, electrical
and _re_ghting engineering services for all major industries and project types. The
Company has accumulated human capital, establishing a committed and competent team.
Continuous focus on building professional and skilled employees enabled the Company to
create an efficient and extremely valuable workforce. The Company is committed to the
welfare of its workmen, providing up skilling and other training to the workmen, besides
enhancing the living conditions at the project sites in order to attract and retain
skilled workmen. Engineering excellence is a core area and the company is committed to
value engineering and innovative solutions in a collaborative approach with its Clients.
Procurement excellence is another core area and the company is committed to a robust
vendor relationship management practice to maximize the value proposition. Zero fatality
approach in Safety is practiced through near miss incident reporting, transparency and
behaviour based safety.
3. INFRASTRUCTURE SECTOR IN INDIA:
The construction industry is a key driver of economic growth and is pivotal for shaping
the future of a country. It is a diverse sector consisting of roads, highways, irrigation,
water supply, sanitation, railways, ports, airports, smart cities and construction. The
sector is anticipated to play a crucial role in fulfilling Government of Indias vision of
‘Aatmanirbhar Bharat. The government is therefore encouraging various schemes and
policies such as the National Infrastructure Plan and has announced the Afordable Rental
Housing Complex (ARHC) scheme along with other investments in the sector. It is expected
to open up new and exciting opportunities to players in the Infrastructure and
construction space. The construction industry in India is expected to record a CAGR of
15.9%. Further, the government has allowed 100% FDI under automatic route in completed
projects for operations and management of business constructions. This is anticipated to
provide much needed impetus to the sector.
4. MANAGEMENT SYSTEM:
The Company continues to focus on e_ciencies in project execution in terms of lower
costs, optimized overheads, on time schedule and higher turnover per person, while
maintaining a strong focus on managing working capital in a tight cash environment without
compromising in Quality of the Project. It has an on standards stipulated by ISO 9001:2015
for Quality. The Company got the latest certi_cation ISO 9001:2015 and ISO 14001:2015 for
Environment standard and BS OHSAS 18001:2007 for Occupational Health and Safety. The
Company strongly believes in delivering quality products to its customers and has
established Quadra (ERP) module at all sites for monitoring quality delivery of project
and functioning of company. The Company has put in place an e_ective monitoring process to
ful_ll its commitment to significantly reduce impact on the environment during project
execution. Customer feedback is sought every quarter on the companys performance on
various parameters of project delivery.
5. INDIAN ECONOMY:
The Indian economy contracted in FY2022-2023 due to the cascading effect of the
pandemic on a weak economy burdened by a sluggish demand and poor financial sector. The
high frequency economic indicators slipped into red in FY2022-2023, primarily due to
lockdown induced restricted mobility and social distancing protocols. Barring few
essential services, economic activity across the country remained suspended and it
disrupted the regional production network. Economic activity resumed gradually amidst a
phase wise unlocking and continued threat of the virus. The GDP reached its infection
point in the subsequent quarter, riding on the back of pent-up demand and slew of policy
actions by the Government and the central bank.
As a direct consequence of the economic slump, job losses, high unemployment and
stressed household income, private consumption and investment declined. To boost consumer
sentiments and private investment, the incumbent government deviated from its
consolidation path to increase consumption which has a multiplier effect on the economy.
6. MANAGEMENT SYSTEM:
The Company continues to focus on e_ciencies in project execution in terms of lower
costs, optimized overheads, on time schedule and higher turnover per person, while
maintaining a strong focus on managing working capital in a tight cash environment without
compromising in Quality of the Project. It has an on standards stipulated by ISO 9001 for
Quality, 45001 for Occupational Health and safety management system and 14001 for
Environment Management System. The Company got the latest certi_cation ISO 9001:2015 and
ISO 14001:2015 for Environment standard and BS OHSAS 45001:2018 for Occupational Health
and Safety. The Company strongly believes in delivering quality products to its customers
and has established Quadra (ERP) module at all sites for monitoring quality delivery of
project and functioning of company.
The Company has put in place an effective monitoring process to ful_ll its commitment
to significantly reduce impact on the environment during project execution. Customer
feedback is sought every quarter on the companys performance on various parameters of
project delivery. The Construction sites and the Head office have started working and
following measures are taken to comply with government
• Thermal screening at entry points;
• Heightened cleaning and sanitizing the premises and desktops and publicly
touchable areas on regular basis and availability of sanitization materials at entry
point;
• Maintenance of social distancing and restriction on outsiders/visitors to
enter the office premises;
• Enforcing wearing of masks for employees and visitors;
• Ban on all but critical travel;
However, with the strong business processes in place and its accurate management of
operating costs, the Company is expected to emerge from the current environment in a
positive position, while protecting its employees health, its sound financial balances
and the potential of its economic activities. The analysis of the liquidity over the next
12 months has not identified any such elements that could affect the going concern of the
Company. In the short term, the Company is reducing discretionary expenditure and
reallocating resources. As part of these mitigation measures, the Company is stopping or
deferring various expenditures that will not be effective in the current environment.
The Company bids for Government infrastructure projects and most of government
expenditure on infrastructure are tender based. Most of the tenders have two bids
technical and _nancial bids. The bids are normally awarded to those who qualify the
technical bid and bid lowest amount. Thus, the business of Company and _nancials are
dependent on the ability to secure tenders on pro_table basis. However, the Company has
expertise in the infrastructure _eld, strengthening its understanding of project bidding.
Also an increase in net worth has enabled it to qualify for larger projects.
The major raw materials are cement and steel. Many of the Companys contracts are to be
completed in more than 12 months. The long duration of such contracts exposes the Company
to the changes in the price of key raw material. The increase in prices of these raw
materials increases our expenditure hence our profitability to the authority for non-full
_ling our commitment. The Company requires skilled and technical sta_ for all projects.
The Company takes up various projects based on availability of right mix of manpower.
Thus, our growth is likely to be affected by the ability to attract and retain skill and
technical manpower. There is always a risk of not able to complete a project within the
established time frame. For the purpose, the Company opts for selective bidding. The
interplay of knowledge and hands-on commitment has accelerated workflow. The company
enjoys an attractive record in timely project completion.
Sometimes, people constraints may affect operational robustness, for that the Company
has an effective control system along with performance-driven HR metrics and a dynamic
organizational structure to enhance people retention and competent project delivery. One
more factor is inability to manage working capital which can affect the Companys
reputation. In order to avoid that, the Company selects to bid for projects with central
and multi-lateral funding that ensures that projects are sustained, in turn protecting the
companys cash flows. Also, prolonged realization can affect the revenue generation of the
company. Here, the Company aims for bottom-line growth, enhancing margins and business
sustainability. The Company has selected to bid for projects with an attractive hurdle
rate, strengthening viability.
Our company is regulated by the Companies act and some of its activities are subject to
supervision and regulation by statutory and regulatory authorities. It is therefore
subject to change in Indian law, as well as to changes in regulation and government
policies and accounting principles.
7. OPPERTUNITIES AND CHALLENGES:
Infrastructural spending: Infrastructure is one of the major contributors of
economic development. The Government of India has increased infrastructural spending in
the past few years and investment in this segment is likely to increase. This is
anticipated to directly complement growth of the construction sector. Technological
Advancements: Advanced technology has improved supervision and maintenance of ongoing
projects. Constant innovations and state of-the-art technology is expected to further
bene_t the industry in future. Government initiatives: National Infrastructure
Pipeline (NIP) To develop world class infrastructure in India and achieve the target of
becoming a US$5 trillion economy by 2025, the central government has envisioned the
ambitious NIP which aims to bring about signi_cant changes to the countrys
infrastructure. Atmanirbhar Bharat: The government aims to o_er impetus to
indigenous products and services and is striving to make India a self-reliant country in
the coming years. The country is still recovering from the impact of the global pandemic
and several challenges continue to impair the Indian construction sector. Shortage of
labour: The lockdown compelled labourers to move out of cities and head back home.
Despite the easing of restrictions and gradual recovery of economic activity, many havent
resumed work and labourers continue to be apprehensive about moving back to cities. It is
likely to cause labour scarcity in the construction sector.
Rising Material Costs: The price of raw material has increased significantly due to
massive supply chain disruptions during the pandemic.
8. INTERNAL CONTROLS SYSTEM AND THEIR ADEQUACY:
The Company has in place adequate internal controls system to ensure operational
e_ciency, accuracy and promptness in financial reporting and compliance of various laws
and regulations. During the year, such controls were tested and no reportable material
weaknesses in the design or operation were observed.
The internal controls system is supported by the internal audit process. An Internal
Auditor has been appointed for this purpose. The Audit Committee of the Board reviews the
Internal Audit Report and the adequacy and effectiveness of internal controls
periodically.
Normal foreseeable risks of the Companys assets are adequately covered by
comprehensive insurance. Risk assessments, inspections and safety audits are carried out
periodically.
9. SUBSIDIARY COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS:
1. As on 31 March 2023, the Company has two subsidiary, i.e. 1. Univastu HVAC India
Private Limited, 2. Univastu charitable Foundation.
The Consolidated Financial Statements of the Company and its subsidiary, prepared in
accordance with generally accepted accounting principles (GAAP) and comply with the
Accounting Standards issued by the Institute of Chartered Accountants of India and the
relevant provisions of the Companies Act, 2013. The signi_cant Accounting Policies which
are applied have been set out in Notes in the Financial Statement.
A statement containing the salient features of the Financial Statement of the
subsidiary company is attached to the Financial Statements of the Company in Form AOC-1.
Pursuant to the provisions of Section 136 of the Companies Act, 2013, the Financial
Statements along with relevant documents of the Company and its subsidiary, are available
on the Companys website, viz., www.univastu.com. The Financial Statements of the
subsidiary and related detailed information will be kept for inspection by any member at
the Registered O_ce of the Company and will also be made available to the members on
demand, at any point of time.
BRIEF HIGHLIGHTS OF BUSINESS OF SUBSIDIARY COMPANY:
Univastu HVAC India Private Limited ("Subsidiary Company") incorporated on11
October 2018 with paid up capital of Rs. 1,00,000. The Subsidiary Company is in the
business as construction contractors, Project contractors, Project executors, contractors,
traders, dealers, distributors, agents, designers, supervisors, consultants, advisors,
surveyors and administrators of all types heating, ventilation, and air conditioning
(HVAC).
10. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:
Key Financial Ratio : Pursuant to Schedule V(B) to the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015], the details of
changes in key financial ratio i.e change of 25% or more, as compared to previous year are
stated below:
Key Financial Ratio |
2022-23 |
2021-22 |
% change as compared to PY |
| Debtors Turnover (refer note 1) |
3.88 |
1.25 |
209.18% |
| Interest Coverage Ratio (refer note 2) |
3 |
2.71 |
10.86 % |
| Net Profit Margin (%)(refer note 3) |
11.15 |
12.25 |
-1.10% |
Note:
1. Since recovery of trade receivable o/s as on 31.03.2021 has been received in the FY
2021-22 and FY 2022-23
11. RETURN ON NET WORTH:
Details of change in Return on Net Worth as compared to the immediately previous
Financial Year as follows:
Particulars |
Ratio as on 31 March 2023 |
Ratio as on 31 March 2022 |
% of Change Explanations |
| Net worth |
14.70 |
13.66 |
Refer Note No. 1 |
| (Total income/Equity share capital |
|
|
|
Note:
1. Return on Net worth has Increased from 14.70 to 13.66 on account of increased margin
during the year.
14. HUMAN RESOURCE
On a note of adapting deliberate and productive execution, HR at the Company is dealing
with various business angles that ultimately help in successfully managing personnel and
increasing workforce value. It is an eminent role of Human resources to inculcate
organizations core values within and get the inner and outer force driven with zeal and
passion. The team is consistently focused towards excellent and qualitative output, and is
trained for the required technical and soft skills. After completion of almost a decade
plus year the company believes to hire the best force to make an outstanding Technical
Team, moreover the organization has hired the skills and talents, considering
‘competencies at its stem. The employee turnover has witnessed middling change, with
an addition of_ team-players, giving an average highest count of 100 employees during the
year. _This year_ the Company has focused more to make our human resource more_‘Smart
and Digital_ __
For and on behalf of the Board of Directors |
|
Sd/- |
Sd/- |
Mr. Pradeep Khandagale |
Mrs. Rajashri Khandagale |
Managing Director & Chairman |
Director Non-executive Director |
Place: Pune |
|
Date: 16 AUGUST , 2023. |
|
+91-9892691696
