trinethra infra ventures ltd Management discussions

TRINETHRA INFRA VENTURES LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Developments: The strong population growth in India and growing economy are generating enormous pressures to modernize and expand the countrys infrastructure. India lags behind in developing its infrastructure by a wide margin and this is the key constraint to India achieving a higher economic growth trajectory. All economic sectors can benefit from more comprehensive infrastructure in the country. Government envisages USD 500 billion infrastructure opportunity for the Eleventh Plan based on assumptions of high rate of economic growth in the country (9% across the plan), marked improvement in the pace of infrastructure creation, improvement in government finances, and ample availability of capital in both domestic and foreign markets. Opportunities: Indias rapid economic growth has put a strain on the countrys existing infrastructure, which has not kept pace with development. Indias economy has enjoyed a compound annual growth rate (CAGR) of 8% plus over the past five years. Strong economic growth and confidence in future prosperity have produced strong consumption growth. Favorable demographics lie at the core of Indias success with 50% of the population below 25 years of age, forming a massive consumer base in the years ahead. Outlook: The Company is confident that the present environment of investments in infrastructure by the State and Central Governments assures sustainable operations going forward, and possibility to maintain the growth rates achieved in earlier years. Challenges, Risks and Concerns: Though the past year has been full of challenges, your Company has managed to sail through it, thanks to the unstinted support of its employees. With the worst of the economic crisis behind us we are poised for new challenges, increased productivity and profitability. Competition from the existing and emerging local and International players continues to pose challenges to the domestic markets. The Company has to reckon with aggressive strategies from the new entrants in the market. Internal Control: The Company has proper and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and the transactions are authorized, recorded and reported correctly. The internal control system provides for well documented policies, guidelines, authorizations approvals and procedures. The observations arising out of audit are subject to periodic review, compliance and monitoring. The significant observations, made in internal audit reports, along with the status of action thereon are reviewed by the Audit Committee of the Board of Directors on a regular basis for future appropriate action, if deemed necessary. Discussion on Financial Performance with respect to Operational Performance: 1. Total Income: During the year under review Trinethra has achieved a gross total income of Rs. 100.98 Crores 2. Share Capital: The paid up share capital as on 31st March, 2010 is 6,45,59,000 divided into 3,22,79,500 Equity Shares of Rs.2/- each. 3. Net Profit: The Companys operating profit during the year under review has resulted in a net profit of Rs.4.64 Crores. 4. Dividend: The Board of Directors has recommended a dividend of 10% on the paid-up capital of Rs.6,45,59,000 for the financial year ended March 31, 2010. 5. Earning Per Share (EPS): The Earning Per Share for the Financial Year 2009-10 is Rs.1.44/- per share (Face Value: Rs.2/- each). Human Resources Development and Industrial Relations: Trinethra Infra Ventures Limited firmly believes that Human Assets are more critical then physical and financial assets as they are the ones who manage and sustain the growth of physical and financial assets of the company. Trinethra is well on its way in establishing an integrated system of workforce, which endeavors to develop the capability of its employees that clearly aligns with the business objectives and performance. Further, we also encourage individual and team awards to sustain and institutionalize the various workforce practices. This helped in giving lots of encouragement to the workforce who have been striving hard to achieve various goals. Cautionary Statement: The statements contained above may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ substantially or materially from those expressed or implied. Important developments that could affect the companys operations include changes in economic environment, rise in input costs and competitive pressures.