Ahasolar Technologies Ltd Management Discussions

GLOBAL ECONOMY:

The global economy in 2024 continued to face significant challenges and opportunities shaped by various economic, geopolitical, and policydriven factors. Global GDP growth is expected to moderate, with a growth rate of 3.3% according to the ‘World Economic Outlook published by International Monetary Fund (IMF). Growth varies across regions, with advanced economies experiencing slower expansion, while emerging markets, particularly in Asia, maintain relatively stronger growth momentum.

Geopolitical instability, notably the ongoing conflict between Russia and Ukraine, disruptions in global supply chains, and trade tensions between major economies like the U.S. and China, continue to impact global economic stability. Additionally, climate change policies and shifting regulatory landscapes influence investment decisions across industries.

Global inflation is improving, projected at 5.7% in 2024, down from 6.7% in 2023. Advanced economies are expected to reach this target faster than emerging markets and developing economies, where the decrease may be slower. Inflation in advanced economies should average 2.6% in 2024, likely reaching target levels by late 2025. Emerging markets will see a slower, though positive, trend.

Despite these challenges, the US economy proved resilient, growing by 2.8% thanks to a strong labour market and easing inflation. The Eurozone, however, saw slower growth of 0.9%, including a slight decline in Germany. Emerging markets, especially in Asia, maintained stronger growth, reaching 5.3% overall, driven by technology and infrastructure investment. Chinas economy expanded by 5.0%, helped by government policies and a recovering property market.

The US exit from the Paris Agreement created a significant void in global climate action. Just months earlier, at COP29, the US had pledged a substantial amount towards the $300 billion climate finance goal, indicating renewed commitment to addressing the climate crisis. This abrupt reversal undermined collective efforts to combat climate change and raised critical questions about the stability of global climate finance.

Indias energy policy reflects a dual commitment of promoting renewable energy to achieve netzero goals and ensuring coalbased power meets current and future energy needs. This balanced approach is essential for energy security and sustainable economic growth.

The global economy is expected to grow steadily, with a projected 2.8% expansion in 2025 and 3.0% in 2026. This outlook is supported by strong performances from the United States and major emerging economies

Global disinflation continues, though some regions stagnate due to high inflation. Global inflation is projected to fall to 4.4% in 2025 and 3.5% in 2026, with advanced economies reaching targets first. Monetary policies remain divergent.

INDIAS ECONOMIC RESILIENCE AND GROWTH DRIVERS:

Indias economy continues to demonstrate resilience in face of global challenges and steady expansion based on its intrinsic strengths, maintaining its position as the fastestgrowing major economy. The real GDP is estimated at 6.5% in FY 202425 according to the Second Advance Estimates, following an impressive 9.2% growth in FY 202324. This sustained momentum reflects the countrys strong economic fundamentals, policy support, growing services sector and domestic demand, reinforcing confidence in Indias longterm growth prospects. The Governments strategic reforms, substantial investments in both physical and digital infrastructure, and initiatives such as Make in India and the ProductionLinked Incentive (PLI) scheme have been instrumental in enhancing the countrys growth trajectory and selfreliance.

India is now the worlds fifthlargest economy by nominal GDP and thirdlargest by Purchasing Power parity (PPP). The government aims for a $5 trillion economy by FY202728 and $30 trillion by 2047, driven by infrastructure investment, reforms, and technology adoption. Reflecting this commitment, the budget allocated for capital investment in the forthcoming financial year (202526) has risen to Rs. 11.21 lakh crore, which accounts for 3.1% of GDP.

India is projected to grow at 6.2% in FY 202526. India is on track to become the worlds thirdlargest economy by 2030, driven by infrastructure investment, private capital expenditure, and financial services expansion. Ongoing reforms support longterm growth. Indias positive outlook is underpinned by its demographic dividend, increased capital investment, proactive policies, and strong consumer demand. Improved rural consumption, driven by moderating inflation, further strengthens this trajectory. Government focuses on capital expenditure, fiscal discipline, and rising business/consumer confidence support investment and consumption.

The Union Budget 202526 presents a balanced, growthoriented financial framework that addresses both immediate and longterm economic priorities. By raising the income tax exemption limit to Rs. 12 lakhs annually, the budget significantly increases disposable income for middleclass households, encouraging greater consumption and savings. With a strong focus on infrastructure development—particularly in roads, railways, and urban facilities—the budget aims to enhance connectivity, create jobs, and stimulate demand in related sectors. Support for the Production Linked Incentive (PLI) scheme and the "Make in India" initiative positions India as a global manufacturing hub while transforming India Post into a key player in improving logistics and financial inclusion in rural areas. India ranks as the thirdlargest producer and consumer of electricity globally, with an installed capacity of 466.25 GW as on Jan 31, 2025. The power sector plays a vital role in shaping the nations infrastructure, fuelling economic progress, and improving the standard of living.

As of Jan 31, 2025 Indias Installed thermal energy capacity reached 245.9 GW and renewable energy capacity (including hydro) reached 212.17 GW, accounting for 98.25% of the total installed power capacity (excluding nuclear energy). Driven by population growth, increasing electrification, and rising per capita electricity consumption, the nations energy demand is on a continuous upward trajectory.

Potential risks to Indias economic outlook arise from headwinds from geopolitical tensions, volatility in international financial markets and geoeconomic fragmentation. However, Indias advantageous geopolitical position will help it capitalise on supply chain diversification and reshoring, increase its global competitiveness and boost exports. Amid a volatile global macro environment, the Indian economy is poised to ascend as a global economic powerhouse and become the thirdlargest economy in the world by 2030.

MARKET SIZE:

India has tremendous potential in renewable energy. The Central Electricity Authority (CEA) has recorded an allIndia peak power demand of 256.53 GW in FY 202425, rising sharply from FY 202324. This rise is attributed to increased industrial activity and an unusually dry August, which led to greater reliance on pump sets for irrigation due to insufficient rainfall. In terms of units, the energy requirement in 202425 is expected to touch 1,736,357 MUS.

India is 5th largest globally in terms of solar power installed capacity with capacity of 105.64 GW as on 31st March 2025. The year 202425 was a record breaking year for solar power sector as India crossed 100 GW in installed capacity. In the past decade, the solar power capacity has witnessed monumental increase from only 2.63 GW in 201314 to over 100 GW in 202425. The share of solar power in renewable energy capacity has also increased multifold over the last decade to reach 48% in 202425 from a minuscule share till 201314. Similarly, the share of solar power generation in generation from total renewable energy sources has also increased from minuscule levels in 201314 to reach nearly 36% in 202425. Some of the key growth drivers of the sector in the past decade are decline in module prices, availability of financing at low cost and governmental thrust.

The potential solar power in the country has been assessed at 750 GW by National Institute of Solar Energy (NISE). The Optimal Generation Mix 2030 Report of Central Electricity Authority estimates solar power addition of 292 GW by 2029 30. As of 31st December 2024, 120.5 GW capacity was under implementation and an additional 78.67 GW was under tendering stage.

PM Surya Ghar Muft Bijli Yojana approved in 2024 aims at adding about 4045 GW of overall solar power rooftop capacity by 202627. The rooftop solar installation witnessed tremendous growth in 2024 with 4.59 GW of capacity installed reflecting a 53% increase over the previous year. As of 31st December 2024, the all India installed capacity of roof top solar power was about 15.67 GW

India has also made significant strides in solar module manufacturing. In 2014, the country had a limited solar module production capacity of about 2 GW. Over the past decade, capacity has surged to about 80 GW currently.

SUMMARY OF OUR BUSINESS:

Our primary focus in renewable energy has been in solar industry and to cater it we developed an AI based intelligent Solar Digital Platform. We have developed Software as a Service (SaaS) products for solar companies to streamline the processes, design PV, do project management and monitor generation alongwith an integrated Marketplace to connect the demand & supply digitally. Apart from this, another SaaS product is for the governments to implement the distributed renewable programme in their service area.

Our Core business can be divided in following categories: a) Solar Software Service b) Solar Marketplace c) Solar Advisory and Consultancy Service d) Development of Solar Power Plant

Our company is also involved in the business of Advisory for sustainable development and energy transition to renewables.

Our key expertise include:

1. Software and Advisory on Process Management

2. Software related to solar EPC company for PV design, project management, procurement, monitoring, ERP, CRM

3. Solar Project Management

4. Advisory on policy and regulation related to renewable energy

5. Transactional Advisory on transformation of companies, cities and states to renewables

6. Ecommerce for solar products

7. Drone Surveys

8. Automation

9. Development of Solar PV Power plant

Through our advisory services, we have our footprints across India and currently working with 38 cities to transform them to solar cities and enable the growth of solar namely in Gujarat, Punjab, Uttar Pradesh, Goa, Maharashtra, Telangana, Uttrakhand, Jharkhand, Delhi/NCR, Odisha, Karnataka, Kerala, J&K, etc.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has a proper and adequate system of internal financial controls, commensurate with its size and business operation. It ensures timely and accurate financial reporting in accordance with applicable accounting standards, safeguarding of assets against unauthorised use or disposition and compliance with all applicable regulatory laws and Company policies. The internal control systems are modified continuously to meet the dynamic change. Further the Audit Committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls.

Discussion on Financial Performance with respect to Operational Performance:

The key strategy will be focused around:

1. Timely completion of Orders

2. Financial strength & liquidity

3. Professional Management

4. Brand Equity

FINANCIAL HIGHLIGHTS:

Particulars	Consolidated		Standalone
	F.Y. 202425	F.Y. 202324	F.Y. 202425	F.Y. 202324
Revenue From Operations (including other operating income)	5798.83	4203.81	3899.75	4203.81
Other Income	47.83	48.24	49.28	48.24
Total Income	5846.66	4252.05	3949.02	4252.05
OperatingexpenditurebeforeFinancecost,depreciationandamortization	5897.45	4216.23	4007.87	4216.23
EarningsbeforeFinancecost,depreciationandamortization(EBITDA)	(50.79)	35.82	(58.85)	35.82
Less: Depreciation & Amortization	37.60	29.50	37.60	29.50
Less: Finance Cost	8.06	0.64	8.06	0.64
Profit Before Tax	(96.45)	5.68	(104.51)	5.68
Less: Current Tax	2.03	10.79	=2> 0	10.79
Less: MAT Credit	(0.73)	0.45	(0.73)	0.45
Less: Deferred tax Liability (Asset)	(2.20)	(9.78)	(2.20)	(9.78)
Profit after Tax	(95.55)	4.22	(101.58)	4.22
EPS	(3.36)	0.15	(3.57)	0.15

All activities of the company revolve around the main business and as such there is no separate reportable business segment and all the operations of the company are conducted within India as such there is no separate reportable geographical segment.

OUTLOOK:

We believe, the Company has a great deal of opportunities for future growth. We believe our management team has a longterm vision and has proven its ability to achieve long term growth of the Company. Our strengths lie in our track record of completing our projects efficiently and effectively within the stipulated time. It is critical in the renewable industry that projects are completed as per contracted schedule.

We have a track record of timely execution of the projects which minimizes cost overruns and eliminates any possibilities of penalties and liquidated damages, while earning repeat orders from our clients. We have never been penalized for delayed execution of a project. We intend to take advantage of the growing opportunities in renewable development by strengthening our expertise in software, advisory, development of solar plants and enabling the adoption of distributed solar for new prospects for growth.

The Company also continues to converge on improving business capabilities and enhancing growth levers. Improved R&D capabilities, enhanced retail format expansion, design abilities and better operational management amongst others will help reinforce our competitive advantages.

HEALTH, SAFETY AND ENVIRONMENT:

At our renewable advisory company, we hold a steadfast commitment to upholding all relevant health, safety, and environmental regulations throughout our operational endeavors. Our dedication to effective implementation of safety protocols is paramount. At the outset of each project, we meticulously identify potential material hazards, assess associated risks, and subsequently establish, execute, and oversee appropriate measures to mitigate these risks.

THREATS, WEAKNESS AND CONCERNS:

The industry is highly fragmented in the hands of several organized and unorganized players. Due to the attractiveness of the opportunity and large potential, competition across the industry in India is rising significantly.

The Companys weakness is limited recognition due to its relatively recent founding, the company might have lower brand recognition and while digital innovation is a strength, reliance on technology could pose a risk if there are disruptions in the digital infrastructure. The possible threats are the regulatory changes, competition and the technology shifts happening in the sector. There are no entry barriers in our industry, which puts us to the threat of competition from new entrants.

SWOT: Strengths:

Innovative Services: AHAsolar offers unique and innovative digital solutions for the solar industry, setting it apart from traditional competitors.

Experienced Team: The company is backed by a team of experienced professionals with diverse expertise in the solar and digital sectors.

Comprehensive Offerings: AHAsolar provides a range of services, from advisory for solar power plant development to online marketplaces for solar equipment, catering to various needs in the industry.

Strong Geographic Reach: The company operates in multiple countries, including India, UAE, and Germany, indicating a strong international presence.

Weaknesses:

Market Penetration: Being established in 2017, AHAsolar might face challenges.

Limited Recognition: Due to its relatively recent founding, the company might have lower brand recognition.

Dependency on Digital Platforms: While digital innovation is a strength, reliance on technology could pose a risk if there are disruptions in the digital infrastructure.

Opportunities:

Growing Solar Industry: The increasing global focus on renewable energy creates opportunities for AHAsolar to capitalize on the growing demand for solar solutions.

Evolving Policies: Favorable solar energy policies and incentives can drive increased adoption of solar solutions, benefiting AHAsolars services.

Expansion into New Markets: The companys successful operations in India, UAE, and Germany could pave the way for expansion into additional international markets.

Threats:

Competition: The solar industry is competitive, with both traditional and new players vying for market share, which could impact AHAsolars growth.

Regulatory Changes: Changes in solar energy policies, tariffs, or regulations could affect the demand for solar solutions and impact AHAsolars business.

Technological Shifts: Rapid advancements in solar technology or shifts in digital platforms could necessitate continuous adaptation and investment.

OUR BUSINESS MODEL

Our Business Model can be broadly categories into three categories:

1. Our business model is SaaS based on market revenues and the users buy the services as per the requirements online.

2. Our Company is awarded contracts from Public and Private Sector companies and development corporations for the advisory vertical for adoption of renewable energy at distributed and utility scale power projects alongwith road map preparation.

3. Our company works on the transaction margins for the transactions that happen in the marketplace for buying and selling of solar products.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Companys relations with the employees continued to be cordial and harmonious with its employees. It considers manpower as its assets and that people had been driving force for growth and expansion of the Company. The Company acknowledge that its principal assets is it employees. The Company has continued its efforts in building a diverse and inclusive workforce.

The total number of employees on roll in the Company as on 31st March, 2025, including factory workmen, was 100. The Company will continue to create opportunity and ensure recruitment of diverse candidates without compromising on meritocracy.

In Key Financial Ratios:

Particulars	Numerator/Denominator	31Mar25	31Mar24	Change in %	Note
(a) Current Ratio	Current Assets	4.61	7.45	38.12%	a
	Current Liabilities
(b) DebtEquity Ratio	Total Debts	0.05	NA	NA
	Shareholders Equity
(c) Debt Service Coverage	Earning available for Debt	(11.97)	NA	NA
Ratio	Service
	Interest + Installments
(d) Return on Equity Ratio	Profit after Tax	6.67%	65.50%	110.19%	b
	Average Shareholders Equity
(e) Inventory turnover ratio	Total Trunover	240799.39%	258776.71%	6.95%
	Average Inventories
(f) Trade Receivables	Total Turnover	7.36	11.43	35.59%	c
turnover ratio	Average Account Receivable
(g) Trade payables turnover	Total Purchases	66.77	191.54	65.14%	d
ratio	Average Account Payable
(h) Net capital turnover	Total Turnover	3.52	5.09	30.78%	e
ratio	Net Working Capital
(i) Net profit ratio	Net Profit	2.60%	0.10%	2690.28%	f
	Total Turnover
(j) Return on Capital	Net Profit	6.91%	0.27%	2675.99%	g
employed	Capital Employed

Notes: a Due to increase in Trade receivable,trade payable and availment cash credit. b Due to lower profit. c Due to increase in Trade receivable. d Due to decreased purchases and higher payables. e Net Working Capital decreased due to increase in current assets. f Due to decreased turnover and lower profit. g Due to lower profit.

CAUTIONARY STATEMENT:

Statement in this report describing the Companys objectives projections estimates and expectation may constitute "forward looking statement" within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumption and expectations of future events. These Statements are subject to certain risk and uncertainties. The Company cannot guarantee that these assumption and expectations are accurate or will be realized. The actual results may different from those expressed or implied since the Companys operations are affected by many external and internal factors which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forwardlooking statements that may be amended or modified in future on the basis of subsequent developments information or events.