Ranjeet Mechatronics Ltd Management Discussions.
COMPANY INTRODUCTION AND BUSINESS SEGMENT IN WHICH IT OPERATES:
The Company was established in the year 1949 in the name of Ranjeet Electric Limited and were working as an Authorised Dealer/ Distributor for Kirloskar Oil Engines, Kirloskar Brothers and Kirloskar Electric Co. Ltd. providing complete solution for fluid transfer.
Now as RANJEET MECHATRONICS PVT. LTD., we like to introduce ourselves as Indias fastest growing Pipe Fabrication & Jointing Provider (MS, GI, SS, CS, FRP, GRE, DI, CPVC, UPVC, PP, CI, HDPE), Fire Protection System, Safety System, Security & Automation Solution Provider Company with Presence in Almost All Major Cities of India.
INDUSTRY STRUCTURE & DEVELOPMENT:
The Global Fire & Safety market is steadily increasing and company expects to gradually increase its market share. There is a definite demand for Fire Protection products worldwide with newer products under development. The Innovation and Product Development are the critical aspects of success in the industry.
Outbreak of fire poses risks to business continuity and operations, and ranks at third position in the India Risk Survey 2018 as per the survey conducted by FICCI. There have been numerous fire accidents in the year 2018, causing significant loss of life and property. Non-compliance with safety norms in factories and high-rises in addition to the under-equipped Fire Services in India has led to an alarming number of accidents year-on-year. While the Government and other regulatory bodies have prescribed norms and fire safety measures, implementation and vigilance continue to be a concern.
Though there is a decline in the number as per the above chart, amongst the Risk factors affecting the corporates in the present scenario, fire comes at the second position after Strikes, Closures etc. Therefore fire safety is of foremost importance for any business in the present times. (Details of the above chart are fetched from the India Risk Survey 2018 by FICCI).
Furthermore Non-compliance to safety norms in factories and high-rises, lack of institutionalized funding and under-equipped fire services in India, has led to an alarming number of accidents in the country. Electric Short Circuits has been rated as the most significant threat under the risk category of Fire.
The Total revenue of the Company during the Financial year 2018-19 was Rs.17,06,33,916/- against the total revenue of Rs.16,20,64,704/- in the previous financial year 2017-18.
The Total expenses of the Company during the financial year 2018-19 was Rs.16,94,15,818/- against the expenses of Rs.15,74,32,497/- in the previous financial year 2017-18.
The Loss after tax is Rs.57,63,630/- for the financial year 2018-19 as compare to Rs.33,23,059/- in the previous financial year 2017-18.
During the year under review, the Loss suffered by the Company is attributable to the increase in overall cost to the Company due to increase in Cost of Goods sold.
The Company has received two reputed and profit making project thats are Lucknow International Airport and Guwahati AIMS which will in a way increase its revenue and also increase the profit and Financial position.
OPPORTUNITIES AND THREATS:
Your Company stood on an advantageous position by availing the opportunity of market penetration with its existing markets. Also the Company has been able to establish a secure market position by maintaining thriving customer relations and service strength.
As in normal and prevalent for any business, the Company is likely to face threat of increased competition from the local and global players operating in India.
RISKS AND CONCERNS:
The Company sometimes provides its service by extending credit to customers with the attendant risk of payment delays and defaults. To mitigate the risk, our team ensures that service to customers are provided after evaluating their ability to meet financial commitments through allotment of specific credit limits to respective customers.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has proper and adequate systems of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded & reported properly and to ascertain operating business risks, which are mitigated by regular monitoring and corrective actions. The internal control systems have been designed so as to ensure that the financial and other records are reliable and reflect a true and fair view of the state of the Companys business.
A qualified and independent Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of Internal Control Systems as well as Internal Financial Controls and suggests improvements for strengthening them. Similarly the Internal Auditors are also monitoring the Internal Control/ Internal Financial Control Systems.
Employees are the key to achieve the Companys objectives and strategies. Your Company considers human resource to be an important and valuable asset for the organization. Therefore, it constantly strives to attract and retain best "Talents" for the present and future business requirements and growth. The Company thankfully acknowledges their commitment, dedication and passion and sacrifices. And the Company expects their continuous guidance and support in future. The Company inspires and motivates employees and promotes teamwork, trust and confidence for the organizational growth and to attain the organizational goals. The Company is going to provide a meaningful environment which gives boost in their confidence and help to realize their potential and motivation to develop personally and professionally. The Board is reshaping the size of the employees as per the projects and business in hand.