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Real Eco-Energy Ltd Management Discussions

33.91
(0.24%)
Jul 12, 2024|03:40:00 PM

Real Eco-Energy Ltd Share Price Management Discussions

> INDUSTRIAL STRUCTURE AND DEVELOPMENT:

The company is engaged in the business of Construction, Media Businessand Bio Diesel Mineral Business.

"Real Estate" is one of the best growing sectors of the Country, but it is as well a phase vital for Indias economy due to its large potential for employment generation, capital magnetism and revenue generation for the Government. During the year, the real estate sector witnessed a slowdown due to moderate end user demand, rising inventory and high finance costs. However, despite adverse sector dynamics, prices were resilient in most cities and have dropped only in select micro markets. Although the current market situation in the sphere is affected adversely but overall Performance of the Company is satisfactory.

The Company is also engaged in the business of news broadcasting and digital marketing. Indian Broadcasters are now under increasing pressure to present superior quality content, as is reflected in some recent trends. The television industry in India continues to undergo solid competition from the digital cable and satellite TV industries. The cable TV industry, in special, represents a bigger threat to future industry growth. A number of elements points to low development in advertising revenue, including forecast low economical growth, the declining total share of the TV audience, and competition from new media. With the current Governments approach being industry enabling, we can hope for the policy majors for ease of doing business.

The Board of Directors of the Company has determined to attain new altitude in business field and to achieve further escalation. To accomplish the set goals, the company is engaged in the activity of Energy Management & their products, by-products and other related services. The Management has vision that there is enormous scope and opportunities in this activity which will ultimately escort the Company to the new elevation of victory and growth.

> OVERVIEW:

The Financial Statements have been prepared in compliance with the Indian Accounting Standards (IND-AS) issued by the Institute of Chartered Accountants of India (ICAI) which have been notified under the Companies (Indian Accounting Standards) Rules, 2015 (IND AS Rules), of the Companies Act, 2013. The management of the Company accepts responsibility for the integrity and objectivity of these financial statements made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably presents the Companys state of affairs and loss for the year.

> THREATS:

COMPETITION:

Competition in the domestic as well as international market has intensified and strained the company to adopt aggressive marketing strategy and promotional campaigns to detain and defend their market shares. The Company has the plans to penetrate better in to market, especially through the customer retention and business development in the regions which have not been tapped. The Company is under constant pressure to develop trade and supply new and novel merchandise in shorter time cycles, at condensed cost, and with enhanced quality.

> SEGMENT WISE AND PRODUCT WISE PERFORMANCE:

The Company operates in diverse segments - Construction, Media Business and Bio Diesel Mineral Business. Each industries are competent. There are mainly three segments in the construction industry like real estate construction which includes residential and commercial construction; infrastructure building.

The construction industry in India is highly fragmented. There are number of unorganised players in the industry which work on the subcontracting basis. To execute more critical projects, now-a-days bids are increasing placed in consortium. But the profitability of the construction projects varies across different segments. The media and broadcasting segment in which Company has ongoing its operations are wide and varied. The Company has extended its area of action and looking forward in this epoch of digitalisation. Moreover the industrial energy management systems contributed considerable revenue share in 2023 owing to rising inclinations toward achieving energy efficiency. Further, the increasing adoption of energy management solutions across different market verticals has also fuelled the market penetration in the recent years. As a result, the trend is expected to continue in the coming years driving the market growth of industrial EMS and thereby holding the significant market share in the forecast period.

> RISK AND CONCERN:

The risk management function is integral to the company and its objectives includes ensuring that crucial risk are recognized continuously, scrutinized and administered effectively in order to protect the companys business.

However, the changes in the tax laws, Government policies and regulatory requirement might affect the companys business. Uncontrolled variation in price of input materials could impact the companys profitability to the extent that the same are not absorbed by the market through price increase and / or could have a negative impact on the demand in the market. The company is operating in highly competitive market.

The management has already taken initiatives in advance for mitigating the above mentioned risk and concerns/challenges. The company has taken key programmers like strong promotion efforts, focus on expenditure diminution, and retain endowed employees etc.

> INITIATIVES BY THE COMPANY:

The Company has taken the following initiatives:

• Focus on reduction of costs by undertaking specific exercise in diverse fields.

• Concentration in magnification of proceeds.

The Company is quite confident that the overall profitability would improve in a sustainable manner, as a result of this strategy.

> OUTLOOK:

In todays age of competition, Companies are under steady pressure to develop, trade and supply new and pioneering products in shorter time cycles, at reduced cost, and with superior quality. The profit margins in the industry are under pressure. However, the Company has taken curative measures. The Company is certain to meet the challenges with its potency in market, its strategic planning, upgrading and price decline exercise.

> INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Your Company places significant prominence and efforts on the internal control systems. The Company has appointed Internal Auditor for the same with such powers and responsibilities that are required to ensure the competence of the internal Control System.

> HUMAN RESOURCE:

Your Company strongly believes that employees are the most precious assets and key players of business triumph and continual escalation. Various employee benefits, recreational and team building efforts are made to augment employee skills, motivation as also to foster team spirit. Industrial relations were cordial throughout the year.

> HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION:

Your Company has act in accordance with all the applicable laws. The Company has been complying with the relevant laws and has taking all obligatory measures to protect the environment.

> CAUTIONARY STATEMENT:

All statements made in "Management and Discussion Analysis Report" have been made in good faith. Many unforeseen factors may come into play and influence the actual results, which could be divergent from what the Management predicts in terms of performance and outlook. Market data, industry information etc. contained in this Report have been based on information gathered from various published and unpublished reports and their accuracy, reliability, and completeness cannot be assured. Factors such as economic conditions affecting demand/supply and priced conditions in domestic and international markets in which the Company operates, and changes in Government regulations, tax laws, other statues and other supplementary factors, may affect the concluding outcome and performance of the Company.

> DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL REPFORMANCE:

In terms of performance, FY 2022-23 has been a reasonable year. Company is focussed on the task on hand in terms of better reliability of operations and more focussed market efforts. Our financial performance reflected the pragmatic operational performance. The entity has earned profit of Rs. 1.59(in Lac). Cash and cash equivalents at the end of year stood at Rs. 10.18 (in Lac).

> DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Particulars

2022-23 2021-22

Debtors Turnover Ratio

2.39 8.07

Inventory Turnover Ratio

4.43 0.00

Interest coverage ratio

- -

Current Ratio

2.39 8.07

Debt Equity Ratio

0.87 0.87

Operating Profit Margin

1.95 -

Net Profit Margin

0.23 0.00

Return on Networth

0.28 -

P/E Ratio

17.92 -

> DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Even though the Company has rational retribution but due to adjustment of past years losses, your Company fall short to earn significant sum as return on Net Worth.

Place: Ahmedabad For and on behalf of the Board

Date: 8th September, 2023

SD/-

Dharm S. Patel Managing Director DIN:07464810

SD/-

Hina S. Patel Director DIN:01987053

ANNEXURE - I TO THE DIRECTORS REPORT

FOREIGN EXCHANGE EARNINGS AND OUT GO:

2022-22 2020-21

Foreign Exchange Earning

Nil Nil

Foreign Exchange out go

Nil Nil

 

Place: Ahmedabad

For and on behalf of the Board

Date: 8th September, 2023

SD/-

Dharm S. Patel Managing Director DIN:07464810

SD/-

Hina S. Patel Director DIN:01987053

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