Conart Engineers Ltd Management Discussions.

Industry Overview and Business Prospects:

Construction sector in India will remain buoyant due to increased demand from real estate and infrastructure projects. The reforms of Modi Sarkar-II could well include key structural changes in job creation sectors such as Construction and finding suitable modalities to speed up credit flow and private investments. Government support is exemplified in expansionary budgetary allocations for infrastructure projects.

The Indian construction industry is predicted to grow at an average rate of 6.4% between 2018 and 2023, according to Global Data. If the Indian construction industry grew at the predicated rate of 6.4% a year between 2018 and 2023 it would have a value of approximately US$690 billion. Infrastructure projects have been a key part of the Indian governments strategy for growth. In the

2018–2019 budget, the government increased its expenditure towards infrastructure development by 20.9% from INR4.9 trillion (US$75.9 billion) to INR6.0 trillion (US$89.2 billion). Construction Industry is poised to become the largest employer by 2022, employing more than 75 million people.

Opportunities:

The construction industry is changing and more and more growth opportunities are lying in the emerging markets. Continuous private sector housing boom will create more construction opportunities. Public sector projects through Public Private Partnerships will bring further opportunities. Developing supply chain through involvement in large projects is likely to enhance the chances in construction. Renewable energy projects will offer opportunities to develop skills and capacity in new markets. More flexible training delivery techniques are now available. Financial supports like loan and insurance and growth in income of people is in support of construction industry. To benefit from trends in the construction industry, the Management always strives to adopt new construction industry strategies to better position themselves to manage the supply side and capture the increased demand.

Threats:

The skilled labor shortage is a major concern for firms across India as employers struggle to staff their job sites. A lack of technical training in schools and less emphasis on the trades are also contributing to a smaller pool of workers entering the industry. Combined with an aging workforce, those factors are creating a struggle for construction firms seeking employees for positions ranging from skilled trades to managerial roles. The productivity of Indian construction workers is very low currently. If we can enhance productivity, it will bring down project execution time drastically.

Segments or Product-Wise Performance:

The Company is engaged in only single segment i.e. construction activity, so segment-wise reporting does not apply to it.

HRD/Industrial Relations

An orientation has been given to the personnel policies with emphasis on the performance. Right person on the right job has increased the productivity level. Also the teamwork and sense of involvement among the employees has increased the efficiency and effectiveness. Disclosures are being made at the proper places where the management has personal interest that may have potential conflict with the interest of the Company at large.

New Standard Adopted

Your Company has successfully renewed its accreditation as on ISO 9001:2015 Company from JAS-ANZ (Accreditation body for Australia and New Zealand), a most widely recognized standard in the world. The standard sets out the requirements for a quality management system and helps businesses and organizations to be more efficient and improve customer satisfaction.

Cautionary Statement

The Statements in the Annual Report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations, may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.