Nirav Commercials Ltd Management Discussions

Industry sector and development

Your Company is engaged in manufacturing of Aluminium Grills, Doors & Windows and has two manufacturing units namely ‘Elesar Focchi, one of them is situated at Daman (UT) & another at Taloja, Dist; Raigad (Maharashtra).

Opportunities

According to a market overview, the Indian Aluminum Doors & Windows Market had the potential of USD 6.16 Billion in 2025. This is expected to grow to USD 9.39 Billion by 2031 with a CAGR of 7.11% during the forecast period.

The primary advantages of aluminum doors and windows include their strength-to-weight ratio, which allows for larger window panes and doors without compromising structural integrity. Aluminum frames are slim yet sturdy, offering a modern and sleek appearance. Additionally, aluminum is highly customizable, allowing for various designs, finishes, and color options to suit different architectural styles.

The above numbers give confidence to the demand of your Company products. The Proposed / on-going projects indicate that there would be a reasonable order book.

Your company has also in the recent years developed new products for the export markets. It is currently exporting to Australia, New Zealand, USA, Argentina and the UK. It is hoped that this will develop further in the coming years.

Major threats

The India Aluminum Doors and Windows market faces challenges related to quality standards, energy e_iciency requirements, and competition from alternative building materials. The Company operates in a highly competitive environment, significant investments are planned by the Government of India, there has always been a lag in the planned investments and in the actual implementation and execution of those investments and that may impact performance of the Company.

Segment-wise performance

Your Company is in single segment of manufacturing of Aluminium Doors & Windows and trying to increase its revenue. Outlook The government initiating investments in the real estate sector there seems to be a positive outlook for our products. Risk and concern

The Company recognises that risk is an integral part of business and is committed to managing the risks in a proactive and e_icient manner. As always, volatility in the price of aluminium will affect the performance of the Company.

Internal control system and their adequacy

Your Company has a real time system of monitoring its targets as well as expenditure. Performance Your Company has constantly trying to increase its sales as well as profitability. Development in human resource / industrial relations

The company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment. Industrial relation in the units was satisfactory.

Key Financial Ratios with details of significant changes

The company has identified the following as key financial ratios:

Ratios	2024-25	2023-24
Current Ratio	3.50	4.24
Debt Equity ratio	0.05	0.04
Debt Service coverage ratio	-	-
Return on equity ratio	-	0.01
Inventory Turnover ratio	2.45	2.44
Trade receivable turnover ratio in months(annualised)	7.28	6.28
Trade payable turnover Ratio	21.99	10.37
Net capital turnover ratio	1.77	2.00
Net Profit Ratio	-	0.03
Turnover on Capital employed ratio	0.01	0.02
Return on Investment ratio	0.03	0.02