Maestros Electronics & Telecommun. Systems Ltd Management Discussions.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Companies growth considering the past few years performance has comparatively increased. The Company has been taking necessary steps for increasing its profits from year to year. The total revenue from the operations for the year ended March 31, 2020 amounted to Rs. 14,00,98,780 as against Rs. 10,10,81,233 in a previous financial year 2018-19, and has increased by 38.60% over the last year.

OPPORTUNITIES & THREATS

OPPORTUNITIES

01. Concentrating in one sector makes the company mature in the industry and gain efficiency in operations.

02. Growing preference for online platform

03. Rural development

THREATS

01. Competition from low cost imported products.

02. Manpower costs are rising as many large companies are mopping the available talent pool supply of which is limited. Thus, for small and mid-range companies, retaining high quality manpower is a concern.

SEGMENT WISE OPERATIONAL PERFORMANCE

Your Company has two main segments of business viz. Electronics & Instrumentation (E&T) and Telemedicine. The Company is constantly striving to increase the performance of its both the segments, particularly Telemedicine.

OUTLOOK:

Your Company, keeping pace with the overall market scenario has grown significantly in the past years. Also, the financial performance of the Company has increased since the previous financial year. The Management expects further growth and improvement of the company within the years to come, subject to favourable market conditions, and stable economic policies.

RISKS AND CONCERNS:

All the promises which management is making, depends on the confidence and trust that the Shareholders bestow upon the management.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has in place adequate system of internal control. It has documented procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or losses, compliances with regulations and for ensuring reliability of financial reporting. The Company has continued its efforts to align all its processes and controls with global best practices in these areas as well.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

Your Company continuously endeavours to improve the work environment for its employees. Competitive compensation package, innovative and challenging environment to work, transportation facilities, etc., are some of the steps taken by the Company for the welfare of its employees. In order to keep the employees skill, knowledge and business facilities updated, on-going in house and external training is provided to the employees at all levels. The effort to rationalize and streamline the work force is a continuous process. The industrial relations scenario remained harmonious throughout the year.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE RESULTS OF OPERATIONS

The Companys revenue from operations has increased to Rs. 13,54,41,561 as compared to the previous financial year ended 31st March, 2019 for which it was Rs. 9,53,18,737

1. Revenue from Operations:
Particulars FY 2019-20 FY 2018-19 Change % of Change
Sale of Products & Other Operating Revenue 13,54,41,561 9,53,18,737 4,01,22,824 42.09
2. Other Income:
Other Income 46,57,220 57,62,496 (11,05,276) 19.18
3. Gross Profit
Revenue from Operations 13,54,41,561 9,53,18,737 4,01,22,824 42.09
Less: Cost of Consumption 6,94,31,111 4,54,56,316 2,39,74,795 52.74
Gross Profit 6,60,10,450 4,98,62,421 1,61,48,029 32.38
Inventory* 19,08,28,598 2,55,28,443 16,53,00,155 647.51

* The reason for the higher percentage change because of the Navy Order which was in stock.

4. Profit before Tax
Particulars FY 2019-20 FY 2018-19 Change % of Change
Profit Before Tax 51,93,114 46,88,044 5,05,070 10.77
5. Total Comprehensive Income (After Taxation)
Total Comprehensive Income (After Taxation) 35,18,654 37,14,353 (1,95,699) 5.27

Key Financial Ratios:

Sr. No Particulars of Ratio 31.03.2020 31.03.2019
01. Debtors Turnover Ratio 4.60 times 3.74 times
02. Inventory Turnover Ratio 0.64 times 1.96 times
03. Interest Coverage Ratio 1.47 times 1.91 times
04. Current Ratio 1.61 times 2.01 times
05. Debt Equity Ratio 1.64 times 0.54 times
06. Operating Profit Margin (%) 26.12 % 96.28%
07. Net Profit Margin (%) 2.62 % 3.57%

Details pertaining to Net-worth of the Company:

Particulars 31.03.2020 31.03.2019
Net-worth 13,85,38,016 12,83,02,781

CAUTIONARY STATEMENT

Statements in the Management Discussion & Analysis Report describing the Companys expectations, opinion, and predictions may please be considered as "forward looking statements" only. Actual results could differ from those expressed or implied. Companys operations should be viewed in light of changes in market conditions, prices of raw materials, economic developments in the country and such other factors.

For and on behalf of the Board of Directors
For Maestros Electronics & Telecommunications Systems Limited
Sd/-
Balkrishna Tendulkar
Chairman & Managing Director
DIN:02448116
Address: 3003, Relish Apartment,
Place: Navi Mumbai Nirmal Lifestyle, ACC Compound Road,
Date: September 02, 2020 Mulund (West), Mumbai - 400080.