Excel Realty N Infra Ltd Management Discussions.

FORWARD-LOOKING STATEMENTS

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.

SEGMENT-WISE PERFORMANCE

IT/ BPO

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. 8074.74 (‘000) as compared to previous year of Rs. 11879.81 (‘000)

General Trading

The Company is engaged in the business of general trading. The revenue generated under this segment is Rs. 84477.79 (‘000) as compared to previous year of Rs.85767.42 (‘000).

Infrastructure Activity

The Company faced tremendous challenges in the Infrastructure sector. It still generated Rs. 1500.00 (‘000) compared to Rs. 8200.00 (‘000) revenue last year due to economic challenges faced in these sectors

OUTLOOK

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. Your Company is recognized by clients for ability to bring in an integrated perspective and ability to bring in innovative ideas, and to draw learnings and apply insights from one company or sector to another and ability to provide end-to -end services. Our clients value our consistent excellence in execution and our ability to proactively incorporate relevant innovation. 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.

COVID 19 IMPACT ON BUSINESS OUTLOOK

On March 11, 2020, as COVID-19 spread rapidly both in terms of number of cases and the affected countries the World Health Organization (WHO) characterized COVID-19 as a pandemic. The Government had announced strict lockdown in the entire country from March 23, 2020. Currently the Government has slowly announced the process of unlock as it is slowly starting the process to resume back the operations. The Company had for its safety of employees had asked the employees to work from home. However the markets we serve continue to undergo massive disruptions due to COVID -19 pandemic. The economic fallout and subsequent recovery from COVID -19 will depend on multiple factors. The continued spread of COVID -19 could adversely affect the workforces, customers, economies and financial markets globally, potentially leading to further economic downturn.

The potential impact to our results going forward will depend to large extent on future developments regarding COVID -19 that cannot be accurately predicted at this time, including duration and severity of the pandemic, the extent of effectiveness and the impact of these and other factors on our employees, customers, partners and vendors.

OPPORTUNITIES AND THREATS

The Company firmly believes that there will be 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. 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

THREATS

 

Economic conditions

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.

Attrition:

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.

Regulatory environment

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. 1500.00 (‘000) (previous year Rs. 8200.00 (‘000)) revenue from infrastructure segment The Management 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. 1019.30(‘000)(previous year Rs. 1207.18)(‘000).

During the year under review, the Companys revenue from BPO/IT was of Rs.8074.74 (‘000) (previous year Rs. 11879.81

(‘000)). The profits from this segment to Rs. 3748.48 (‘000)(previous year Rs. 5586.26)(‘000).

The income from general trading segment was Rs. 84477.79 (‘000) (previous year Rs. 85767.42 (‘000)) and registered loss of Rs. (1329.55) (‘000) (previous year registered a profit of Rs. 886.36(‘000). Our income from other sources comprises of interest income from bank and other non-operating income.

RISK MANAGEMENT

Risk management is an integral part of the Companys business process. With the help of experts in this field, risks are carefully mapped and a risk management framework is evolved. Pertinent policies and methods are set forth to mitigate such risks. The Company has taken several measures to beef up its security preparedness. In addition to the physical security measures, the Company also ensure and other obligation to meet financial obligations and other obligations which may arise from any untoward incidents.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Companys resilience and focus is driven to a large extent by its strong internal control system for financial reporting.

Keeping in mind the nature, size and complexity of business operations the well formulated control framework covers various aspects of governance, compliance, audit, control and reporting. Stringent procedures ensure high accuracy in recording and providing reliable financial & operational information, meeting statutory compliances.

The Companys internal team and Audit Committee keep a close eye on business operations and any deviations are promptly brought to the notice of the leadership. These findings provide input for risk identification and assessment. Timely and adequate measures are undertaken to ensure undisrupted functioning of the business. A host of strategies are devised as a follow-up measure to safeguard the Company. The Companys internal audit system has been continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The audit committee reviews reports presented by the internal control on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control system are operating effectively.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company has a sustained industrial dispute free work atmosphere which has enhanced employee productivity. This has been possible due to our transparent and fair employee policies and the strong bond between the senior management and the employees. We have a fair remunerative system where deserving employees are rightfully rewarded. Encouraging work environment has enhanced the level of engagement of the employees in the organization. The Company has also maintained healthy and cordial industrial relations during the year

The number of people employed as on March 31, 2020 are 16.

For and on behalf of the Board of Directors

sd/-

Lakhmendra Khurana

Chairman and Managing Director

DIN: 00623015

Place : Mumbai

Date : August 7, 2020