Today's Top Gainer
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A. INDUSTRY STRUCTURE AND DEVELOPMENTS
The Financial year 2017-18 was an eventful year for adoption of Goods and Service Tax (GST). The Government (Govt.) had taken several initiatives in 2017-18 in the areas of infrastructure, easing the process of doing business, allowing further FDI, starting campaigns on smart cities and encouraging start-ups. The Economic Survey 2017-18 forecasts a growth rate of 7 to 7.5 per cent for 2018-19, as compared to 6.7 per cent in 2017-18. With mass population and powerful purchasing power, India is amongst one of the fastest growing consumer market and expected to be the strongest economy in the world in coming future. However, worldwide slow down and external challenges have also affected Indian economy.
Your Company is primarily engaged in the business of Wind power Generation Reality, Trading of Agri- Commodities, Coal & Edible oil.
In terms of wind power installed capacity, India is amongst top five countries in the world. India has rapidly grown in the Wind Power Energy Sector, despite being a relative newcomer. The unexploited resource has the potential to sustain the growth of wind energy in future.
B. OPPORTUNITIES & THREATS
(I) Wind Power:
With the encouraging policy for renewable energy, this sector has shown great growth pace which helped India to become the new "Wind Superpower". The Company has Two Wind Power projects at Nagda Hills, Dewas (M.P.) and Jaisalmer (Rajasthan) are successfully generating energy.
(II) Real Estate:
On the front of Real Estate business, the integrated township project Active Acres at Kolkata launched few years back by M/s. Mahakosh Property Developers, a partnership wherein your Company is partner with major stake, is continuously getting good response from all segments of public even in the phase of recession period in the Real Estate Sector, where, 4 towers completed and booking/sales of about 99% of the residential units has been done and more than 600 families have started living in township and 2 tower are under construction, wherein booking of about more than 50% of the residential units has been done , which is a good sign of your Companys reputation and sustainability which will result in good profits in the years to come. In addition to above, during the year Company also started one more project of serviced apartments and luxury residences in the name of One Rajarhat at Kolkata comprising 320 apartments. Company has received a very good response and booking of 160 units has been done.
In current year monsoon improved in all over India, therefore good quantity of agri commodities is expected. The symptoms of global commodity business are favorable for coming future and suitable steps of Government and Reserve Bank of India will also keep lower movement in exchange rates. The Company proposes to continue to recognize the full potential in agro commodities & coal in the coming period.
Few years back your Company has diversified in mining business. Few of the mines allotted to your Company are in process of getting necessary permissions/ approvals to start commercial production in short span of time. Further, sincere efforts of your Company are continue to set up mineral based industry in Madhya Pradesh to use explored minerals from own mines in future. However, recently introduced Amendment Act, 2015 having stringent provisions, has created obstacles in existing mining application/ proposals and process of allotment, which is going to affect mining industry to substantial extent. The future performance of your Company would depend to a large extent on its ability to successful diversification, market of commodities. We are hopeful that through the combination of market developments and expansion activity, there will be healthy growth over the next few years.
C. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind AS 108 "Operating Segment" the company has identified its reportable segments. The various segments identified by the company comprised as under: -Wind Power Unit - Wind Turbine Power Unit Real Estate - Construction and Development of Housing Project Others - Trading of Coal, Agri Commodities, Edible Oils Etc.
The Company has identified geographical segments as the secondary segment. Secondary segments comprise of domestic and export markets. However, company has no export sales.
The segment wise performance in detail is given in Note 41 to the audited accounts of the Company as available in this annual report.
The Wind Power Projects of the Company are generating electricity satisfactorily. Electricity produced in Rajasthan Plant is being sold to Rajasthan Electricity Board (RSEB) while in Madhya Pradesh we have captive consumption in our plant and remaining electricity is sold to Madhya Pradesh Electricity Board. We see ecological power generation as the sunrise industry of tomorrow and have positioned ourselves to save the nature and to reap the reward for our stakeholders.
In current year monsoon improved in all over India. The symptoms of global commodity business are favorable for coming future and suitable steps of Government and Reserve Bank of India will also keep lower movement in exchange rates. The Company proposes to continue to recognize the full potential in agro commodities & coal in the coming period .
With our strong focus on core business activities and our competitive position, better performance is expected in the years to come.
E. RISK AND CONCERNS
The major risks and concerns attributed to the performance of the Company are: a. The Company is exposed to risks from market fluctuation of foreign exchange. Hence the erratic movement in foreign exchange rates and international prices of dairy products may influence the performance of the Company. Change in duty structure may affect adversely. b. Increase in input costs, change in tax structure, change in interest rates, changes in govt. policies/ laws of land, development and stability of Indian economy against the negative external and internal forces may also impact the overall performance of the Company. c. Profitability may be affected on account of competition from existing and prospective manufacturers of the Companys products.
F. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has a good and effective internal control system for its various units in respect of efficiency of operations, financial reporting, proper recording and safeguarding of assets, compliance with applicable laws and regulations etc.
Pursuant to Section 134 of the Companies Act, 2013, the Board, through the Operating Management has laid down Internal Financial Controls and procedures to be followed by the Company. The adequacy of the same has been reported by the statutory auditors of your Company in their report.
|Balance Sheet||As at March 31, 2018||As at March 31, 2017||As at March 31, 2018||As at March 31, 2017|
|a. Property, Plant and Equipment||2,050.60||2,857.86||6,577.70||7,384.96|
|b. Capital Work-in-progress||509.06||509.06||896.30||599.18|
|c. Financial Assets||12,483.91||10,615.00||6,288.55||8,762.47|
|d. Other Non-current assets||607.15||611.24||609.22||616.53|
|e. Current assets||42,259.64||42,215.66||48,986.79||45,198.44|
|f. Total Equity||31,547.07||30,161.69||45,187.05||43,803.43|
|g. Non- current liabilities||4,745.17||453.59||4,745.17||434.56|
|h. Current liabilities||21,623.10||26,193.53||22,270.31||27,143.54|
|(Rs. in Lacs)|
|Revenue from operations and other Income||63,649.57||49,840.05||63,649.57||49,704.12|
|Profit (Loss) before depreciation, tax & exceptional items||1,837.01||(13,324.52)||1,875.92||7,166.74|
|Profit (Loss) before tax & exceptional items||1,743.74||(13,407.98)||1,782.65||(13,544.01)|
|Add: Exceptional Items||--||20,627.29||--||20,627.29|
|Profit (Loss) before tax||1,743.74||7,219.31||1,782.65||7,083.28|
|Less: Current tax||385.00||810.00||385.50||810.50|
|Less: Deferred tax||(24.91)||(898.94)||(24.91)||(898.94)|
|Less: Earlier Taxes paid||--||--||3.08||--|
|Profit (Loss) for the year from continuing operations (A)||1,383.65||7,308.25||1,418.98||7,171.72|
|Profit (Loss) from discontinuing operations before tax||-||(3,660.79)||-||(3,660.79)|
|Less: Current tax||-||-||-||-|
|Less: Deferred tax||-||7.98||-||7.98|
|Profit (Loss) from discontinuing operations after tax (B)||-||(3,668.76)||-||(3,668.76)|
|Profit (Loss) for the year (A+B)||1,383.65||3,639.49||1,418.98||3502.96|
|Add: Share of Profit (Loss) of associate||-||-||(37.08)||75.67|
|Less: Minority Interest||-||-||(0.33)||0.27|
|Profit (Loss) for the year after Minority interest and Share of|
|Profit/(Loss) of Associates||1,383.65||3,639.49||1,382.23||3,578.36|
|Add: Other Comprehen sive Income||1.73||10.08||1.73||10.08|
|Total Comprehensive Income||1,385.38||3,649.57||1,383.96||3,588.44|
|Balance brought forward from previous year||27,386.34||23,736.77||41,001.74||37,413.30|
|Amount Available for Appropriation||28,771.72||27,386.34||42,385.69||41,001.74|
|Transfer to General Reserve||-||-||-||-|
|Proposed Dividend on Equity Shares||-||-||-||-|
|Tax on Dividend||-||-||-||-|
|Surplus carried to Balance Sheet||28,771.72||27,386.34||42,382.69||41,001.74|
|Paid up Equity Share Capital||2775.35||2775.35||2775.35||2775.35|
|Earning Per share (Rs. 10/- each) Basic & Diluted (in Rs.)||4.99||13.11||4.98||12.89|
H. INFORMATION TECHNOLOGY
SAP has been implemented in all plants, depots, regional offices and head office of the Company enabling better supply chain, debtors control at operational level and access to consolidated data of the Company since the system is integrated. Among other benefits, SAP will provide real-time data, support in strategy formulations, lead to adoption of uniform and transparent business practices, render cost optimization and value enhancement.
I. MATERIAL DEVELOPMENT IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT
Your Company considers the quality of its human resources to be most important asset and constantly endeavors to attract and recruit best possible talent. The number of people employed during the year was 67.
The industrial relations of the Company continue to remain harmonious and cordial with focus on improving productivity and quality.
J. CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.