I am elated to reconnect with you at the end of this financial year. I would like tocongratulate our employees customers shareholders bankers investors and all ourassociates for working as a passionate and committed team in making Nimbus as emergingreal estate and infrastructure Development Company over the years.
Despite uncertainty on global front India's economy has been able to move on a steadypath recording a GDP of 7.1 per cent in the financial year 2016-2017. Though in the comingyear India's economy will face many challenges. The Indian real estate market is expectedto touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to thecountry's Gross Domestic Product (GDP).
Real Estate as a matter of fact has always been an attractive investment option andwith the additional support of the new rules and regulations by the government it hasresulted in significant growth in the residential and commercial Real Estate. The growthof this sector is well complemented by the growth of the corporate environment and thedemand for office space as well as urban and semi-urban accommodations. The real estatesector contributes 9 per cent of India's GDP and is the second largest employer afteragriculture.
The Parliament has approved the Real Estate (Regulation and Development) Act 2016(RERA') which is bound to have a huge transformational impact on the real estatesector. The developers builders real estate agents buyers etc are expected to carry outtheir respective obligations under RERA in a compliant manner. I also take pleasure insharing with you that your Company have registered all its ongoing projects developed bythe Company through Special Purpose Vehicles (SPV's) within timeframe provided under UttarPradesh RERA Authority. The implementation of Goods and Service Tax (GST') isanother significant reform which will subsume all indirect taxes and will pave the way fora single market across India. The real estate sector should see some benefits on absorbedcosts like those on cement steel and other building materials. The demand of retailhousing affordable housing hospitality and commercial real estate are expected to growsignificantly post RERA and GST.
The economy did show signs of revival in the financial year 2016-17 but the businessenvironment for industries across sectors remained challenging and the Real Estate Sectorwas no exception.
Standalone results of operation: During the financial year under review yourCompany's standalone revenue from operations is Rs. 802.28 Lakh as compared to revenue ofRs. 840.54 Lakh in last year a decrease of 4.55 %. The standalone loss after tax of yourCompany is Rs.314.32 Lakh compared to loss of Rs. 496.34 Lakh in last year registering adecrease of 36.67% over the last year.
All the above said decrease in revenue and profit/loss after tax are due to loss inpartnership firms with which the Company is developing all the projects. The projectsundertaken by the Company are under final stage of development. The Company is expected tocomplete these projects by next year and as a result revenue and profit will be generatedand financial position & ratios are expected be improved.
Consolidated Results of operation: During the financial year under review yourCompany has consolidated the Financial Statements w.r.t. to its associate Companies vizCapital Infraprojects Private Limited and Golden Palm Facility
Management Private Limited. The Company's consolidated revenue from operations is Rs.802.28 Lakh as compared to revenue of Rs. 840.54 Lakh in last year a decrease of 4.55 %.The consolidated loss after tax of your Company is Rs.417.39 Lakh compared to loss of Rs.485.72 Lakh in last year registering a decrease of 14.07% over the last year. Theindividual performance of these associates Companies have been discussed under in relevanthead of this report.
Progress on projects
On the operational front we completed/offered possession of the Project The ExpressPark View Located at Sector Chi-V Greater Noida and started the possession of Project inJoint Venture "The Hyde Park" "THE EXPRESS PARK VIEW-II" and"The Golden Palms".
Strategies for growth
Nimbus is a strong value driven organization that has worked towards creating lastingvalue for its stakeholders. To further strengthen the organization's overall performanceand create more value for our stakeholders we would be focusing on faster execution anddelivery of our ongoing projects.
Additionally to enhance operational efficiencies and to reduce debts we wouldcontinue to look out for monetization of our non- core assets. We are optimistic that thiswill help reduce our financial burden and strengthen the balance sheet.
The real estate sector is highly influenced by the economic cycles; therefore therevival of the economy would have a cascading positive impact on the realty sector.Propelled by the NDA Government's growth-oriented strategy the economy as a whole isbeginning to show distinct signs of revival. Largely due to the deft handling ofmacro-economic issues and several positive sector-specific policy initiatives theindustrial outlook has improved overall. These reforms (actual and prospective) would beinstrumental for attracting foreign investment thereby easing the liquidity crunch andreviving the overall sentiment of the realty sector.
As far as the real estate and urban housing sector is concerned great expectationshave been aroused of a robust revival through the Prime Minister's announcement ofvisionary initiatives like Smart Cities' and Housing for All'. Unfortunatelysuch expectations have not yet been realised and the sector continues to face a plethoraof challenges including rising input costs high interest rates and sluggish demand.
Besides these much needed government initiatives the RBI would also play a pivotalrole in the revival of the real estate sector. It is expected that the RBI would reducerates in its monetary policy in order to release liquidity in the market thereby enablingbanks to lower their lending rates and thus encouraging the end users to own their dreamhomes.
Overall the long term outlook of the real estate sector looks positive and yourorganization having a rich experience in developing and delivering quality real estate andinfrastructure projects remains committed to build a better world.
On behalf of the Board I take this opportunity to thank all employees whose skillsand capabilities have been instrumental in our growth for their steadfast dedication andcommitment. I also wish to thank our shareholders bankers investors and associates fortheir sustained trust and support. As we embark on another fiscal I am hopeful aboutcommunicating robust results and new milestones while we execute coherent cohesivestrategies towards a higher growth trajectory.
| ||Warm Regards |
| ||Sincerely |
| ||(Bipin Agarwal) |
|Place : New Delhi ||Chairman & Managing Director |
|Date : 25th August 2017 ||DIN: 00001276 |