Popular Estate Management Ltd Management Discussions.
A. BUSINESS HIGHLIGHTS : Turnover:
Popular Estate Management Limited has turnover of Rs. 10,45,48,140/- in financial year 2018-19 against no turnover in the previous year.
Employee Benefit Expenses:
Employees emoluments (other than managerial remuneration) are Rs.14.38 Lakh during the year as against Rs.15.73 Lakh during the previous year.
Administrative and Other Expenses:
Major components of administrative and other expenses includes printing and stationary, audit fees, advertisement expenses, postage and stamps, listing fees, insurance premium etc. Administrative and other expenses for the year amounted to Rs.30.73 Lakh as against Rs. 90.61 Lakh during the previous year.
Interest and Finance Charges:
Interest and finance charges / bank charges during the year come to Rs. 115.06 Lakh as against Rs. 22.23 Lakh during the previous year.
Depreciation charge for the current year came to Rs. 26.43 Lakh as against Rs. 19.58 Lakh of the previous year.
Provision for Tax:
The Company has made provision towards current tax of Rs. 32 Lakh. In the previous year the Company has made loss so there is no provision for tax. As there is no dividend payable this year, the company has not provided any amount for dividend distribution tax. The MAT Credit entitlement amounts to Rs. 28.60 lakh and Deferred Tax amounts to Rs. 0.33 Lakh.
Profit/Loss after Tax:
The Company has made profit in the current year of Rs. 139.73 Lakh as against loss of Rs. 178.81 Lakh during the previous year. The Directors are expecting more growth the future.
Earnings per Share:
Basic and diluted earnings per share for the current year worked out to Rs. 1.00 as against Rs. (1.28) during the previous year.
Non Current Liabilities:
The Companys Non Current Liabilities includes Long Term borrowings Rs.664.49 Lakh against Long Term Borrowings of Rs.1212.29 Lakh in the previous year.
Companys Current Liabilities includes Trade payables and Other Current Liabilities which are amounting to Rs. 17.78 Lakh as at 31st March 2019 against Rs. 40.18 Lakh of the previous year.
Net block of the fixed assets at the end of the year is Rs. 112.60 Lakh as against Rs.145.16 Lakh in the previous year.
Non Current Investments:
Non current investments of the company are Rs. 13.48 Lakh as at 31st March 2019 against Rs. 52.48 Lakh which was at 31st March 2018.
During the year, the Company has current assets of Rs. 5212.80 Lakh against Rs. 5568.04 Lakh of the previous year.
B. SEGMENT WISE PERFORMANCE :
The company is operating in only one segment i.e. Infrastructure / Construction. Though, the infrastructure/ construction/real estate sector is very bearish since last many years, our company has performed well as compared to the previous year.
C. AN INDUSTRY OVERVIEW :
The management has worked for improvement of the companys working compared to the previous year and is expecting fast growth in the near future.
The scenario of the infrastructure industry and economy in general is bearish due to demonetization and the industry is exposed to competition with policy of the government. However, due to infrastructure development at across the country and policies of the Government favouring infrastructure development, future of industry appears quite bright.
D. SWOT ANALYSIS OF THE COMPANY :
Management depth and ability to manage client / customer relationships
Enhanced presence in the market
Opportunities and Threats:
The infrastructure industry is subject to tough competition amongst various segments within and outside the country. The threat of competition is comparatively less in the area in which your company is operating. The increase in demand from business sector will provide opportunity to your company to increase more market share. Moreover, Indian infrastructure industry witnessing changes in business dynamics.
E. RISKS AND CONCERNS :
Your company is mainly focusing on real estate and infrastructure. Apart from the risk on account of interest rate and regulatory changes, business of the company are exposed to certain operating business risks, which is mitigated by regular monitoring and corrective actions. The company has taken necessary measures to safe guard its assets and interest etc. The risk of changes in the governmental policies is also there.
F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :
The company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and to monitor internal business process, financial reporting and compliance with applicable laws.
The internal control system has been designed so as to ensure that the financial and other records are reliable and reflects a true and fair view of the state of the Companys business. A qualified and independent committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them.
G. HUMAN RESOURCE MANAGEMENT :
The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short and long term objectives.
Statement made in the Management Discussion and Analysis Report describing the companys objectives, projections, estimates, expectations may be "Forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the markets in which the company operates changes in the government regulations, tax laws & other statutes and other incidental factors.