Remi Elecktrotechnik Ltd Management Discussions.

a) Industry structure and Development, Opportunities and Threats, Performance, Outlook, Risks and Concerns:

The slowing down of the economy in general and capital goods industry in particular continue to be in downtrend and consequently there is not much growth in electrical motor division. Company s Laboratory Instrument division has performed well during the year as Central government and State Governments are focusing on healthcare. The company had completed its real estate project in previous year and the remaining inventory was capitalized and is being let out.

b) Internal Control Systems and their adequacy:

The Company has adequate internal control systems in technical and financial fields.

c) Financial Performance:

The Financial Performance of the Company has improved during the year.

d) Human Resources/ Industrial Relations:

The Company has maintained good industrial relations and is continuously adding to the human resources of the Company.

e) Cautionary Statement:

Statements in this report on Management Discussion and Analysis describing the Company s objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicable securities laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company s operations include economic conditions affecting global and domestic demand and supply, finished goods prices in the domestic and overseas markets in which the Company operates, raw-materials cost and availability, changes in Government regulations, tax regimes, economic developments within or outside India and other factors such as litigation and industrial relations. The Company assumes no responsibility to publicly amend, modify or revive any forward looking statements on the basis of any subsequent developments, information or events.

f) Details of significant changes in Key Financial Ratios:

Sr. No. Particulars 2018- 19 2017-18 Remarks
1) Inventory Turnover Ratio 6.80 2.47 The ratio has improved during FY 2019 as inventory of real estate business was either sold or capitalized and consequently inventory has reduced substantially.
2) Interest Coverage Ratio 19.18 5.59 The interest coverage ratio has improved substantially during FY 2019 as debt has substantially reduced on sale of real estate investment and internal accruals.
3) Current Ratio 2.32 1.78 The current ratio has improved during the FY 2019 as borrowing pertaining to real estate business has reduced substantially.
4) Debt-Equity Ratio 0.10 0.28 The debt equity ratio has substantially improved due to substantial reduction in borrowing.
5) Net Profit Margin 7.17 4.88 The net profit margin has improved during FY 2019 as there was improvement in profitability of Motor and laboratory instrument divisions and other income in form of capital gains and rent income.
6) Return on Net Worth 8.38 6.15 The return on net worth has improved during FY19 as the company earned higher profit due to capital gains and rent income.

There was no significant change in Debtors turnover ratio and operating profit margin ratio