shreeshay engineers ltd share price Management discussions

The Management of M/s Shreeshay Engineers Limited is presenting the Management Discussion and Analysis Report covering the operations and financial performance of the Company for the financial year 2022-23. The Company is engaged in the business of providing real estate constmction and engineering focused solutions.


India has always been a resilient market with great fundamentals for real estate and springing back positively. By virtue of the strong and increasing demand due to our large population base, this sector has grown continuously and is expected to stay steady for long. The industry developments were stable for the financial year 2022-23.


India is among the fastest-growing major economies in the world and the real estate sector is the second largest employment generator, and third largest sector in terms of FDI flow and also spurs the overall economic growth. The real estate sector is expected to contribute to 13 percent of the countrys GDP. The real estate sector is demonstrating promising growth for the years to come. The real estate sector is constantly evolving with innovative solutions across residential, commercial, and retail projects.


The industry in which we operate is highly competitive and fragmented. Competition emerges from small as well as big players. The organized players in the industry compete with each other by providing high quality, time-bound and value-added services. We have a number of competitors offering services similar to us. We believe the principal elements of Competition in the real estate consultancy sector are price, quality, timely delivery and reliability. We compete by establishing ourselves as a knowledge-based unit with industry expertise in completing the projects on time and providing quality work to the consumers which enables us to provide our clients efficient service suitable to the current market expectations.


Post Covid-19 pandemic has showed slow and steady growth of economy despite disastrous impacts on health and other sector in the Country. The Company currently has a small function in its sector and is trying to improve further to maximize shareholder wealth. The safety and well-being of the employees, customers and other stakeholders has been the Companys highest priority. The Company is looking for various growth opportunities which will expedite the upliftment and overall progress of the Company. Your Company is planning to avail the various schemes provide by the current government in order to boost the profitability with sustainable development in the organization. These are forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these statements as a result of certain factors. The Board is cautiously optimistic about the future outlook taking into overall view of the above.


Strengths: The industrial output can be positively compared with most of the developed countries. IT/ITeS and industries are still expected to grow, creating employment opportunities and job stability. Rising disposable incomes and a growing middle class will also ensure robust housing demand and overall growth for real estate in India.

Moreover, Foreign Direct Investments in various sectors will continue to fuel the economy and open more doors. The Land Bill as well as the Real Estate Regulatory Bill will bring about more transparency in the long term, hence making investments more attractive.

The above fundamentals automatically create demand for more housing and also tend to support infrastructure such as retail, office, hospitality, health care, entertainment and lifestyle business.

Weakness: The recent past has been a little gloomy with unstable government policies, indecisiveness and inconsistencies in issues related to tax and other involved arenas. Such situations tend to hamper the overall business landscape leading to sluggish growth, directly impacting the real estate sector.

Excessive red tape and long approval gestation periods increase delivery time and make the business riskier, hence increasing the overall cost of projects. Scarcity of capital available for real estate, with RBI curbs in this sector, results in increasing the cost of capital.

High inflation rate has been pushing construction costs up and this, combined with the high cost of capital will lead to steep pricing. Frivolous litigations and unclear land titles has plagued this industry. Lack of transparency has hampered further investments in this field with investors focusing on other secure markets.


The Company is engaged in the business of real estate construction and engineering focused solutions, accordingly this is the only single reportable segment.


Your Company has an effective internal control and risk-mitigation system, which are constantly assessed and strengthened with new/revised standard operating procedures. The Companys internal control system is commensurate with its size, scale and complexities of its operations. The internal and operational audit is entmsted to M/s. Vinod K. Mehta & Co., a reputed firm of Chartered Accountants. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry. The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism. The Audit Committee of the Board of Directors, Statutory Auditors and the Business Heads are periodically apprised of the internal audit findings and corrective actions taken. Audit plays a key role in providing assurance to the Board of Directors. Significant audit observations and corrective actions taken by the management are presented to the Audit Committee of the Board. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee.


(Amount In lakhs )

Particulars Year ended 31st March 2023 Year ended 31st March 2022
Total sales (by volume)
Total Revenue 687.27 1269.28

Profit Before Tax

19.92 102.36
Less: Current Tax 5.05 25.60
Deferred Tax (0.02) 0
Income Tax earlier years 0 0
Excess provisions of Income Tax (5.33) 5.91

Profit For the Year

20.19 70.85

Paid Up Capital

13,20,33,960 13,20,33,960

Reserves & Surplus

948.41 928.23


The Company is conscious of the importance of environmentally clean and safe operations. The Companys policy requires conduct of operations in such a manner, so as to ensure safety of all concerned, compliances of environmental regulations and preservation of natural resources.


Your Company has team of qualified and dedicated personnel who have contributed to the consolidation of the operations of your Company. Your Companys industrial relations continued to be harmonious during the year under review. Your Company has succeeded in attracting and retaining key professional and intends to continue to seek fresh talents to further enhance and grow our business.


(Disclosure of the following ratio changed 25% or more as compared to the previous year)

Sr. No.

Ratio Analysis



Reasons for Differences, if Difference is More than 25%.

31-Mar-23 31-Mar-22


Net Profit Ratio

0.029 0.055 (0.026)



Current Ratio

439.05 76.58 362.47

Increase due to increase in current assets.


Debt Equity Ratio

0.28 0.012 (0.268)





2.99 3.00 (0.01)



Statements in this report describing the Companys objective, expectations or predictions may be optimistic statements within the meaning of applicable securities laws and regulations. The actual result may differ materially from those expressed in the statements. Important factors that could influence the companys operations include economic conditions affecting demand / supply price condition in the domestic markets in which the company operates, changes in the government regulations, tax laws and other statutes and other incidental factors.

For and behalf of the Board

For Shreeshay Engineers Limited


Mr. Jignesh Thobhani

Managing Director

Date: 16th August, 2023


Place: Mumbai