Excel Realty N Infra Ltd Management Discussions.
The report contains forward-looking statements, identified 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 differ 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.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Excel Realty N Infra Limited (Formerly known as Excel Infoways Limited) (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.
In past few years Indian Economy witnessed slowdown across various sectors. Both domestic and global economic situations have been very volatile and challenging. The government has announced slew of policy measures in past years to revive stranded projects and bring in fresh investment in these sectors. These measures are not just fixes but also ensure that the structural issues that are plaguing these sectors are eliminated. With such reforms the Company is seeing immense opportunities in its core competency areas.
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 flow and updating their records. We provide inbound and outbound services to our clients.
The revenue generated under this segment is Rs. 11879.81 (000) as compared to previous year of Rs. 74172.84 (000)
The Company is engaged in the business of general trading. The revenue generated under this segment is Rs. 85767.42 (000) as compared to previous year of Rs. 129691.31 (000).
The Company faced tremendous challenges in the Infrastructure sector. It still generated Rs. 8200.00 (000) compared to nil revenue last year due to economic challenges faced in these sectors
Your Company focusses to provide a meaningful work with a measurable outlook & maximum impact on the society. Despite challenging environment, the management of your Company is continuing its efforts to bring favorable results and hence looks in the intricacies of designing, developing and construction of the project with an eye to perfection. The prime motive of the
Company has been profitable 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 significant potential for growth for the Company being multi segment Company.
OPPORTUNITIES AND THREATS
The Company firmly believes that there will 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. Due current uncertain economic conditions and regulatory challenges the Company did not generate any revenue from this 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
Excel operates in different segments and hence is exposed to challenges to different 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 different geographies in terms of terrain, sociopolitical and engineering factors.
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, fluctuations in exchange rates could affect Companys performance. Prices get reviewed and revised in the event of significant 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.
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, financial and internal controls across the organization and to integrate our widespread operations and derive benefits 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 significant working capital requirements and prompt collection of receivables affect favorably to our liquidity and results of operations. However, there can be no assurance that any such development would not adversely affect our business.
DISCUSSION ON OPERATIONAL PERFORMANCE
This year we generated Rs. 8200.00 revenue from infrastructure segment The Management is expects growth form this sector in long run as the business climate has turned positive and will be able to acquire more business. The profits from this segment was Rs. 1207.18 (000)
During the year under review, the Companys revenue from BPO/IT was of Rs. 11879.81 (000) (previous year Rs. 74172.84 (000)). The profits from this segment to Rs. 5586.26 (previous year Rs. 55025.17).
The income from this general trading segment was Rs. 85767.42 (000) (previous year Rs. 129691.31 (000)) and registered profit of Rs. 886.36 (000) (previous year Rs. 2758.80 (000). Our income from other sources comprises of interest income from bank and other non-operating income.
The management of risk is embedded in the corporate strategies of developing a portfolio of world class business that best match organizational capability with market opportunities, focusing on building distributed leadership and sucession planning processes, nurturing specialism and enhancing organizational capabilities through timely developmental inputs. Accordingly, management of risk has always been an integral part of the Companys Strategy of Organization and straddles its planning, execution and reporting processes and systems. Your Company endeavors to continually sharpen its Risk Management Systems and processes in line with a rapidly changing business environment.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has instituted adequate internal control procedure commensurate with the nature of its business and the size of its operations for the smooth conduct of the business. Internal Audit is conducted at regular intervals and covers the key areas of operations. It is an independent objective and assurance function responsible for evaluating and improving the effectiveness of risk management control, governance processes etc.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Your Company firmly believes that it is its people who energise and make the organization exceptional, both in driving world-class performance as well as in fostering and enhancing its reputational capital. Your Companys human resource management systems and processes aim to enhance organizational capability and vitality, so that each business operates to world-class standard and is equipped to seize market opportunities. Your Company believes that the achievement of its growth objectives will depend largely on the ability to innovative continuously, connect closely with the customer, as well as create and deliver superior and unmatched customer value.
The number of people employed as on March 31, 2019 are 17.
For and on behalf of the Board of Directors
Chairman and Managing Director
Date: May 29, 2019