Banka Bioloo Ltd Management Discussions.

The financial year 2018-19 was a significant year in the evolution of Banka BioLoo Limited (Banka BioLoo) as the company went public and is now amongst the few sanitation and fecal sludge management companies that are listed on a stock exchange. Amidst the winds of change, we, at Banka BioLoo, are deeply rooted to our core values of customer centricity, business ethics and social-environmental responsibility. It is a matter of great satisfaction for us that our Initial Public Offering (IPO) received good response from investors in February 2018. We are thankful to our investors for reposing their trust in our vision and initiatives. Our journey is powered by the trust of all our stakeholders, and we are committed to deepen this precious bond of trust.

Net worth

The companys net worth is Rs. 21,85,00,268 as of March 31, 2019; which increased by Rs. 4,00,94,499 compared to previous years net worth of Rs. 17,84,05,769.

Share Capital

The Company has not issued any type of shares, the authorized share capital of the Company is Rs. 5,00,00,000 divided into 50,00,000 equity shares of Rs. 10 each and paid up Equity Share Capital of the Company stood as Rs. 4,11,24,480 consisting of 41,12,448 equity shares of Rs. 10 each.

Reserves and Surplus

During the financial year 2018-19 the Reserve and Surplus increased to Rs. 17,73,75,788 compared to that of previous years Reserves of Rs. 13,72,81,289 on March 31, 2018.

A summary of our financial performance during the year is indicated in the table below:

(Rs. in lakhs)

Particulars Year Ended Year Ended
March 31, 2018 March 31, 2017
Revenue (Net) from Operations 35,42,12,876 16,53,07,695
Other Income 37,28,194 16,41,273
Total Income 35,79,41,069 16,69,48,967
Total Expenditure 30,12,76,983 14,12,07,774
Profit Before Tax 5,66,64,086 2,57,41,194
Less: Income Tax 1,16,11,619 68,32,562
Net Profit/Loss 4,50,52,467 1,89,08,632

Industry Review

The Swachh Bharat Abhiyan (Clean India Mission) reached its peak in the financial year 2018-19. Many states declared themselves open defecation free (ODF), and many, in fact, went on to ODF+, signifying solid-liquid waste management.

After the toilet construction (to which Banka BioLoo contributed through installing bio-toilets across the country), it was natural for the country to move towards waste management. Fecal sludge treatment and management is one of the focus areas of the central government and state governments. Banka BioLoo is an active participant in this too. The Company bagged two contracts, one each in Andhra Pradesh and Telangana, to construct fecal sludge treatment plants (FSTP) in urban and semi-urban areas.

Led by Prime Minister Narendra Modi, the Mission aims to achieve an open defecation free (ODF) India by 2 October 2019, the 150th anniversary of the birth of Mahatma Gandhi, by constructing 12 million toilets in rural India at a projected cost of Rs 1.96 lakh crore (US$30 billion).

Due to the Mission, awareness amongst people for cleanliness and sanitation increased rapidly, and that contributed immensely to business enhancement. Indian Railways, for instance, has fitted over 2 lakh bio-tanks in train toilets, ensuring fecal-matter free rail tracks. Banka BioLoo, among other activities, undertakes operations and maintenance of these bio-toilets in trains.

Internal Control Systems and Adequacy

The rapid growth of our company makes it imperative for us to have a robust internal control framework. Our Company has in place adequate system of internal controls framework. The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorization and ensuring compliance of corporate policies.

Human Resources

The company follows best practices to attract, train and retain the human resource pool. With utmost respect to human values, the company serves its human resources with integrity, through a variety of services by using appropriate training, motivation techniques and employee welfare activities.

By Order of the Board For, Banka BioLoo Limited

Sd/- Sd/-
Managing Director Whole-time Director
DIN: 05017358 DIN: 07977695
Hyderabad, 26th August, 2019