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 7.7 per cent during the fiscal year 2017-2018. Though in thecoming year India's economy will face many challenges. The Indian real estate market isexpected to touch US$ 180 billion by 2020. The real estate sector is divided into foursub-sectors housing retail hospitality and commercial. The housing sector'scontribution to the Indian GDP is expected to almost double to more than 11 per cent by2020 up from estimated 5-6 per cent.
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. Over thenext decade the real estate sector is expected to grow by 30 percent. It is one of thefastest growing sectors of the Indian economy. This sector has large association withvarious other sectors and more than 250 allied industries. The growth of this sector iswell complemented by the growth of the corporate environment and the demand for officespace as well as urban and semi-urban accommodations.
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 estate sector.The developers builders real estate agents buyers etc are expected to carry out theirrespective obligations under RERA in a compliant manner. I also take pleasure in sharingwith you that all ongoing projects developed through Special Purpose Vehicles (SPV's)have been registered within timeframe provided under Uttar Pradesh RERA Authority. Theimplementation of Goods and Service Tax ('GST') is another significant reform that hassubsumed all indirect taxes thus paved the way for a single market across India. It isexpected that GST would lead to cost saving of 3-4 per cent. The real estate sector shouldsee some benefits on absorbed costs like those on cement steel and other buildingmaterials.
The union Government's decision to allow 100 per cent FDI ( Foreign Direct Investment)under automatic route in real estate brokerage service is expected to boost the realestate industry. The demands of retail housing affordable housing hospitality andcommercial real estate are expected to grow significantly post RERA GST and FDIallowing.
The economy did show signs of revival in the financial year 2017-18 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. 733.22 Lakh as compared to revenue ofRs. 789.12 Lakh in last year a decrease of07.08 %. The standalone loss after tax ofyourCompany is Rs. 783.53 Lakh compared to loss of Rs. 2899.70 Lakh in last year registeringa decrease of 72.98% over the last year.
All the above said decrease in revenue and loss after tax are due to loss inpartnership firms with which the Company is developing all the projects. Also the companyhas shown positive signs of recovery by decreasing its loss by 72.98% as compared to lastyear. The projects undertaken by the Company are under final stage of development. TheCompany is expected to complete these projects by next year and as a result revenue andprofit will be generated and 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. 733.22 Lakh as compared torevenue of Rs. 789.12 Lakh in last year a decrease of 07.08 %. The consolidated lossafter tax of your Company is Rs. 1136.83 Lakh. compared to loss of Rs. 3080.02 Lakh inlast year registering a decrease of 63.09% over the last year. The individual performanceof these associates Companies have been discussed under in relevant head 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 positive impact on the realty sector. Propelled by theGovernment's growth-oriented strategy the economy as a whole is beginning to showdistinct signs of revival. Largely due to the deft handling of macro-economic issues andseveral positive sector-specific policy initiatives the industrial outlook has improvedoverall. These reforms (actual and prospective) would be instrumental for attractingforeign investment thereby easing the liquidity crunch and reviving the overall sentimentof 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 2022 Scheme'.Unfortunately such expectations have not yet been realised and the sector continues toface a plethora of challenges including rising input costs high interest rates andsluggish 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 thanks all employees whose skillsand capabilities have been instrumental in our growth 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: 10th August 2018 ||DIN:00001276 |