Bansal Roofing Products Ltd Management Discussions.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Industry overview of Roofing products
The roofing industry is a dynamic industry, with new innovations, materials and tools cropping up on a regular basis. The growing domestic construction industry and the booming industrial sector are together seen as the major driving forces behind the increased demand for roofing products in India. Increased construction in urban areas and infrastructure development activities have kick-started the demand for modern, efficient roofing systems.
(a) There is a wide spectrum of roofing materials, which are used for different structural, aesthetic, economic and performance reasons.
(b) Roof designs have developed from just being a weather performance element to an architectural trademark that can be environment friendly, structurally sound, reasonably priced and aesthetically attractive.
(c) Major shift is observed from pakka concrete slabs, clay tiles and conventional roofing system to metal cladding solution.
(d) Customers are looking for architectural solution which provides innovative shapes such as convex, concave in addition to new attractive colours. Airports, warehouses, metro stations are some of the examples.
1. Aesthetics, superior technology, durability, thermal efficiency, light weight, speedy work are some of the significant driving factors for coated sheets.
PEB: A Boon for Building Industry
The Indian Construction Industry has witnessed a growth trajectory quite comparable to the development of the overall economic infrastructure of the country. The Indian Pre-Engineered Steel Buildings (PEB) market is experiencing consistent growth fueled by infrastructure development and the increasing popularity of PEB systems in the industrial sector.
Looking into the time frame of tight project schedule, PEB structures can be used for tenders to deliver quality, esthetic, structural flexibility & ultimately promote usages of steel over concrete. The other advantage of the PEB structure is that steel can reduce carbon dioxide emission which will minimize pollution. PEB buildings are environment-friendly and energy efficient and are created with a high proportion of recycled content i.e. 70-80 per cent.
Additionally, NAMOs focus on infrastructure with the development of railways, airports and roads will create huge business opportunities. The Government is also appraising and clearing the long-held projects that will create the need for the PEB as it can help in completing these projects in a short period of time.
India has the second fastest growing economy in the world and a lot of it is attributed to its construction Industry in its economic contribution to the nation. In its steadfast development, the construction industry has discovered, invented and developed a number of technologies, systems and products; one of them being the concept of Pre-engineered Buildings (PEBs).
The scope of using PEBs ranges from showrooms, low height commercial complexes, industrial building and workshops, stadiums, bridges, fuel stations to aircraft hangers, exhibition centres, railway stations and metro applications.
Steel buildings are the fastest systems of industrial construction today and are popular all over the world in the form of Pre-engineered Buildings (PEB). PEBs are custom-designed, expandable, durable and maintenance free. Construction activity, including those of industrial and commercial buildings, is likely to gain momentum over coming quarters. With a clear shift towards PEBs from conventional structures, the PEB segment would grow faster.
PEBs are delivered as a complete finished product to the site from a single supplier with a basic structural steel framework with attached factory finished cladding and roofing components.
PEBs have hit the construction market in a major way owing to the many benefits they possess. They exemplify the rising global construction, technology and while they oppose the practice of conventional building construction they simultaneously have taken it to a higher level too.
One can see their optimal use in warehouses, industrial sheds, sports facilities, air ports, etc. The Delhi Airport and the metro projects of Delhi, Bengaluru and Mumbai are also examples of PEB applications.
RISKS AND CONERNS
The business is also dependent upon the policies of the Indian government and any change whether positive or adverse, has a direct impact on the Companys business.
The Companys operations require substantial amount of raw materials and the same are exposed to volatility and fluctuations in prices and availability.
Competition from the unorganized sector with questionable standards and high transportation costs are also one of the concerns in the construction industry.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an internal control system, which ensures that all transactions are satisfactorily and effectively recorded and reported. The Internal control systems are supplemented by an internal Audit system. The findings of such internal audit are periodically reviewed by the management and required actions are being taken for the same. The Audit Committee of the Board meets at regular intervals and addresses significant issues raised by both Statutory Auditor and Internal Auditor.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The turnover is increased from Rs. 3272.70 Lakhs to 4447.02. Profit after tax during preceding financial year was Rs. 108.00 Lakhs and the Financial Year 2018-19 it amounted to Rs. 203.82 Lakhs.