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The Management of Monnet Project Developers Limited is pleased to present its analysis report on its performance and future outlook.
1. INDUSTRY OVERVIEW
Real Estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade. It comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The Indian real estate market size is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the countrys gross domestic product (GDP).
OPPORTUNITIES AND THREATS
The Company is exploring through various means to utilize the opportunities available to carry on the objects for the growth of the Company.
SEGMENT WISE REPORTING
During the year under review, Company has received the income interest from banks. Financial performance with respect to operational performance is as follows:-
(Rs. in lakhs)
|Sales for the year 2018-19||Nil|
|Profit after tax||(217.88)|
|Paid up equity share capital as on 31st March,2019||741.25|
The real estate sector in India has provided ample opportunity with the liberalization of the economy. With the increased demand of commercial and residential property, the company is confident that the ever expanding market for the real estate shall provide a good business opportunity to the company to gain its share in the market.
RISKS AND CONCERNS
In any business, risks and prospects are inseparable. As a responsible management, the Companys principal endeavour is to maximize returns. The Company continues to take all steps necessary to minimise its expenses through detailed studies and interaction with experts.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.
Company is engaged in the business of Real Estate but the revenue is generated from the interest income received from loans or advances given to associates. Income of the Company has been at Rs. 2.08 Lakhs. The company has beard loss of Rs. 217.88 Lakhs .1
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED
The company recognizes the fact that manpower is the most vital resource for the real estate sector. The company ensures that its employees are provided the best working environment and compensated with attractive remunerations. Employees are encouraged to be innovative and involved to pursue their goals which are allied with the larger interest of the company. Since the operations of the company are not going on large scale presently, therefore, only Nine(9) -employees are employed by the company as on March 31, 2019.
DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING
During the financial year 2018-19, there are no significant changes in the Current Ratio as compared to previous financial year, Due to Nil turnovers in the FY 2018-19 and 2017-18the Inventory turnover, Debtor turnover, Operating Profit Margin and Net Profit Margin has not been calculated.
The Other Key financial ratios have been shown below:
|KEY FINANCIAL RATIOS||FY 2018-19||FY 2017-18||Change (%)|
|Interest Coverage Ratio||*||2.137||*|
|Debt Equity Ratio||0.179||0.129||38.25%|
*Interest Coverage ratio has not been calculated for FY 2018-19 due to negative Earnings Before Interest and Tax (EBIT) in FY 2018-19.
Reason for change in above key ratios
Interest Coverage ratio decreased due to negative EBIT (Earnings Before Interest and Tax) and Increase in Interest Expense in the current financial year 2018-19.
Debt Equity ratio is at 0.179 due to decrease in total equity and increase in total liabilities as compared to previous financial year.
2. DISCLOSURE OF ACCOUNTING TREATMENT
The financial statement of the company is prepared as per the prescribed Indian Accounting Standards and reflects true & fair view of the business transactions and there is no division in following the treatment prescribed in any Indian Accounting Standard(Ind-AS) in the preparation of financial statements of the Company.
3. CAUTIONARY STATEMENT
Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations whether expressed or implied. Several factors could make significant difference to the Companys operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities over which the Company does not have any direct control
|For and on behalf of the Board|
|Monnet Project Developers Limited|
|(Bishwa Nath Chatterjee)||(Braham Dutt Bhardwaj)|
|Date: 13.08.2019||Director||Whole-Time Director|
|Place: New Delhi||DIN:08359823||DIN:01779434|