remi sales engineering ltd Management discussions

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

The present time is challenging due to outbreak of Covid-19 pandemic, trade barriers, trade wars between USA and China and slow down in Europe due to Brexit etc. and consequently fall in demand of commodities and prices. Volatility in price of raw materials can have a direct bearing on the Company s margin as the buyers are price sensitive and may react to price fluctuations. The revenue of the electrical motor division are expected to be under stress due to de-growth in user industries and capital goods industry which is the main consumers. The revenue of the electrical fan division has affected during the year. The Laboratory Instrument Division has able slightly improved and is expected to perform well during the current year and improve in future due to focus of the Central and State Governments on the health sector to control covid-19 pandemic and to improve health services.

b) Internal Control Systems and their adequacy:

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

c) Financial Performance:

The Financial Performance of the Company has improved during the year compared to previous year.

d) Human Resources/ Industrial Relations:

The Company has maintained good relations with employees 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: There is significant change in key financial ratios as compared to the ratios of previous financial year except following:

Sr. No. Particulars	2020-21	2019-20	Remarks
1) Interest Coverage Ratio	292.53	61.82	Interest coverage ratio of the Company has improved substantially during the year compared to previous year due to decrease in interest payment and increase in profitability of the Company.
2) Debt Equity Ratio	0.00	0.04	The Company has repaid all its debts and become debt free during the year.
3) Net Profit Margin	6.08 %	4.50 %	Net Profit Margin has improved during the year compared to previous year due to increase in profitability of laboratory equipment business of the Company.
4) Return on Net worth	19.07 %	13.75 %	Return on net worth has improved during the year compare to previous due to increase in profitability of the Company