Nirmitee Robotic Management Discussions


Industrial Structure and Developments:

Nirmitee Robotics India Limited, a BSE SME Startup Portal Registered Company (formerly known as Nirmitee Robotics India Private Limited) is the worlds leading HVAC Air Duct Cleaning Company. No matter how small or how complex your HVAC Air Duct is, we are equipped and experienced to handle all kinds HVAC Air Duct Cleaning. We service Offices, Hotels, Convention Centers, Hospitals, Train and Bus Coaches, Aircraft and specialize in Buildings that house Sensitive Equipment, like Data Centres and Operation Theaters.

The total income of Company stood at Rs. 5,38,25,000/- in the current year as compared to Rs. 4,17,53,055/- in the previous year.

Opportunities and Threats:

Major Opportunities for the Company are as follows:

Rise in new geographical markets of different cities of the India and all over the world.

• Increase in emerging technologies.

• Long experience of the promoters in the industry;

• We follow the Quality standards which are followed by leading companies working in the same segment.

• Track record of successful execution of projects.

• Experience across various Industry Vertical

Major Threats/ Challenges to the Company are as follows:

Technology dependency

• Integration with various technology

• Manpower retention

• Disruption and Uncertainty in business due to Covid-19 pandemic

Outlook:

The Management is hopeful that Company will register even higher growth rate in future as the Corporate and social community is getting alert towards duct cleaning after the outbreak of Covid-19 pandemic. The Company is working rapidly and looking forward for opportunities to grab more and more business and develop its business activities in such a way by minimizing its risk of losing business through others, the positive results of which will be seen in the years to come.

Risk and Concerns:

The Company is exposed to competition risks from existing providers. Further, increase in labour cost due to migration, higher levies, and change in Govt. Policies/ Laws of land, etc. may also affect profitability of the Company.

Internal Control System and their adequacy:

The Company has adequate and efficient internal control system, which provides protection to all its assets against loss from unauthorized use and ensures correct reporting of transactions. The internal control systems are further supplemented by internal audits carried out by the respective Internal Auditors of the Company and Periodical review by the management. The Company has put in place proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorized, correctly reported and assets are safeguarded.

Segment-wise or product-wise performance:

The Company is presently engaged in single segment of HVAC Air Duct Cleaning and the performance of Company for the financial year 2022-23 is summarized below:

(Amount in thousands)

Particulars 31/03/2023 31/03/2022
Standalone Consolidated Standalone
Revenue From Operations and Other Income 53,825.02 53,967.47 41,753.05
Net Profit/Loss before Interest, Depreciation and Tax 9103.14 9148.99 5160.54
Less: Finance Cost = 345.51 345.51 287.16
Net Profit/Loss before Depreciation and Tax 8757.63 8803.48 4873.38
Less: Depreciation and amortization for the year 770.69 770.69 567.79
Net Profit/Loss before exceptional and extraordinary items and tax 7,986.94 8,032.79 4,305.59
Less: Exceptional Items 0.00 0.00 0.00
Profit before extraordinary items and tax = 7,986.94 8,032.79 4,305.59
Less: Extraordinary Items 0.00 0.00 0.00
Profit before tax 7,986.94 8,032.79 4,305.59
Less: Tax Expenses
i. Current tax expense 1,760.00 1,760.00 1,060.00
ii. Deferred tax Liability/(Assets) (26.40) (26.40) (21.42)
iii. Tax for Earlier years 0.00 0.00 0.00
Profit/Loss for the period from continuing operations 6,253.34 6,299.19 3,267.01
Profit/Loss from discontinuing operations 0.00 0.00 0.00
Tax expense of discontinuing operations 0.00 0.00 0.00
Profit/Loss from discontinuing operations (after tax) 0.00 0.00 0.00
Profit/Loss transferred/adjusted to General Reserve 0.00 0.00 0.00
Basic earnings per equity share 1.74 1.75 0.91
Diluted earnings per equity share 1.74 1.75 0.91

Discussion on financial performance with respect to operational performance:

The companys financial performance during the financial year 2022-2023 has been considerably good. There has been an increase in profit of the company as compared to previous year due to increase in revenue.

Further, the Management is hopeful that Company will register even higher growth rate in future as the Corporate and social community is getting alert towards duct cleaning post Covid-19 pandemic.

The Total revenue of the Company stood at Rs. 53,825.02 thousand in the current year and Rs. 41,753.05 thousand in the previous year. The Company made a net profit of Rs. 6,253.34 thousand for the year ended March 31, 2023 as compared to the net profit of Rs. 3,267.01 thousand in the previous year.

Material development in Human & Other Resources / Industrial Relations Front:

The Company considered their employees as the most important assets. The Company always believes in the ideology of team building and Employees welfare. The Company continues to empower its people and provide a stimulating professional environment to its officers to excel in their respective functional disciplines.

The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and quality.

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 therefore:

. No. Ratios Numerator Denominator 31- Mar- 22 31- Mar-21 % Chan ge Reason for Varianc e
1 Current Ratio Current Assets Current Liabilities 3.40 6.46 47.3 % Sub-note (i)
2 Debt-Equity Ratio Total Debt Equity Share Capital + 0.58 0.12 388.9 1% Sub-note (ii)
Reserves & Surplus
3 Debt Service Coverage Ratio EBITDA Finance Cost 26.35 17.97 46.61 % Sub-note (iii)
4 Return on Equity Ratio PAT Equity Share Capital + Reserves & Surplus 12.09% 7.17% 4.92 % -
5 Inventory Turnover Ratio COGS/ Sales Average Inventory 5.78 12.78 54.78 % Sub-note (iv)
6 Trade Receivables Turnover Ratio Total Sales Average Accounts Receivable 2.02 2.08 3.20 % -
7 Trade Payables Turnover Ratio Total Purchases Average Trade Payables 2.7 r - -
8 Net Capital Turnover Ratio Total Sales Average Working Capital 1.94 1.01 91.59 % Sub-note (v)
9 Net Profit Ratio PAT Total Sales 11.65% 7.84% 3.81 % -
10 Return on Capital Employed EBIT Capital Employed 13.39% 10.06% 3.33 % -
11 Return on Investment PAT Total Assets 7.65% 6.41% 1.23 % -

 

Sub-note (i): The cash credit facility with the bank is now showing a credit balance. Also, there has been an increase in Trade Payables. Such reasons areattributable to the depletion in Current Ratio.
Sub-note (ii): The Company has taken loans from directors during the year. This has caused the debt- equity ratio to reduce.
Sub-note (iii): Increase in Profits has caused Debt Service Coverage Ratio to increase.
Sub-note (iv): A reduced Inventory Turnover Ratio is due to an increase in the average inventory.
Sub-note (v): Due to working capital changes as mentioned in sub-note (i) above, the Capital Turnover Ratio has increased.

Disclosure of Accounting Treatment:

In the Preparation of Financial Statements, Company has followed accounting principles generally accepted in India.