Kaarya Facilities & Services Ltd Management Discussions

About your company

Facilities management in India has evolved significantly in recent years, driven by the countrys rapid urbanization and expanding real estate sector. As of 2023, this dynamic industry encompassed a wide range of services, including property maintenance, security, cleaning, and energy management. Technology adoption played a pivotal role, with companies increasingly turning to computerized maintenance systems and IoT devices to enhance efficiency and reduce costs. Moreover, sustainability and compliance with environmental regulations were becoming central concerns, reflecting a growing commitment to green practices and responsible resource management. In a highly competitive landscape, facilities management firms in India aimed to differentiate themselves through service quality, technological innovation, and a focus on meeting the diverse needs of their clients.

In addition to its growth, the facilities management sector in India faced unique challenges and opportunities. The COVID-19 pandemic brought heightened awareness to hygiene and safety measures, necessitating rapid adaptations and stricter cleaning protocols. Furthermore, the industry continued to grapple with the need for a skilled workforce, emphasizing the importance of training and retaining professionals in fields like electrical maintenance, plumbing, and HVAC systems. As Indias economy evolved, facilities management remained a critical component in ensuring the efficient operation of commercial and residential properties, aligning with the countrys ongoing urban development and modernization efforts.

Established in 2009, our company has developed extensive expertise in providing comprehensive facilities management services, supported by a proficient team with deep domain knowledge, well-established operational systems, and technology-driven efficiencies. Kaarya extends its services to a diverse clientele, encompassing both commercial and residential property owners and occupants, spanning government and private sectors. With our headquarters in Mumbai, Maharashtra, we hold a prominent position in the industry and extend our service delivery capabilities to all major cities across India, leveraging our extensive geographical reach as a distinctive advantage.

Emerging stronger from the pandemic

Indian companies emerged from the COVID-19 pandemic by swiftly embracing digital transformation, fostering innovation in healthcare and technology sectors, diversifying product offerings, fortifying supply chains, implementing cost-saving measures, leveraging government support, thriving in e-commerce and online retail, and showcasing adaptability and resilience, ultimately positioning themselves for growth and success in the post-pandemic landscape.

Your company also has sustained the covid pandemic era and now emerged from its impact. The company has attained 28% growth in revenue from FY 20-21 showing the sign of recovery and improvement. The company is focussed on its ability to further scale it.

Opportunities

The facility management services industry in India presents promising opportunities driven by rapid urbanization, the expanding real estate sector, and a growing emphasis on efficiency, sustainability, and compliance. Companies can capitalize on the demand for property maintenance, security, energy management, and technology-driven solutions in both commercial and residential properties. Specialized services, compliance consulting, health and safety solutions, energy management, and a focus on enhancing customer experiences within facilities are key areas offering significant growth potential in this dynamic and evolving sector.

Operating Results of the Company

The financial statements have been prepared in compliance with the requirements of the Companies Act 2013 and Accounting Standards (AS) notified by the companies (Accounting Standards) Rules, 2006. The salient features of the company performance are:-

• Total Sales of Rs. 22,33,16,000/-

• Net profit of Rs. - (7,78,71,000)/-

•Earnings per share for the year of Rs. -1.09 of Rs. 10/share which was Rs. 0.04 (Diluted) previous year.

• Net worth of Rs. 3,41,82,000/- as on March 31, 2023, Kaarya Facilities and Services Limited.

Disclosure by the Management

Your board has not received any disclosure by the management relating to any material, financial and commercial transactions where any of the managerial staff has personal interest that may have a potential conflict with the interest of the company at large.

Cautionary Statement

Statements in the Management Discussion and Analysis, describing the Companys objective, projections and estimates, are forward looking statements and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Polices and other incidental/related factors. This MD&A provides analysis of the operating performance of the companys two business segments, as well as a discussion of cash flows, the impact of risks and outlook for the business, Additional information about the company. This discussion and analysis is the responsibility of management. The Board of Directors carries out its responsibilities for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee has reviewed and approved this disclosure and it has also been approved by the Board of directors.

The management of the company is presenting herein the overview, opportunities and threats, initiatives by the Company and overall strategy of the company and its outlook for the future. This outlook is based on managements own assessment and it may vary due to future economic and other future developments in the country.