Management Discussion and Analysis forms part of the Annual Report to the shareholders
and it includes discussion on matters as required as per Companies Act 2013.
1. OUTLOOK Global Economy
In the previous, the global economy has experienced challenges in the form of, rising
interest rates, high inflation levels etc. Also, sudden surge in COVID-19 cases also
impacted growth projections.
A stronger boost from demand in numerous economies or a fall in inflation is expected
in the course of 2023. The emerging and developing economies of the world are likely to
play a major role in accelerating global economic growth. Another silver lining is the
fact that global inflation is likely to decline from *8.8% in the year 2022 to 6.6% in the
year 2023 and 4.3% in the year 2024.
*Source: IMF Word Economic Outlook January, 2023
Indian Economy
The Indian economy remained remarkably resilient to global challenges in F.Y. 2022-23.
This is evident by robust domestic demand and upbeat investment activity. Sectoral
analysis reveals that growth was driven by robust construction activity aided by increased
infrastructure investment both by the Central Government and State Governments, which
paved the way for large-scale employment opportunities. Building on the gains of first
half of the fiscal year, the second half continued to see a gradual upswing in demand and
economic activity.
2. INDUSTRY STRUCTURE AND DEVELOPMENTS:
The Company is currently engaged in leasing of its own property. Also, the Company has
currently ventured into generation of solar power through its Subsidiary, Dynavision Green
Solutions Limited.
SOLAR INDUSTRY
Indian power sector is facing challenges and despite significant growth in generation
over the years, it has been suffering from shortages and supply constraints. Power deficit
in the country has been around 8-10% with peak power deficit going up to 15%. As GDP
growth accelerates to an ambitious 8 to 10%, the shortage of power will become more
severe.
Government of India has embarked upon NonFossil fuel based Generation capacity addition
of 500 GW by 2030 from existing 160 Gw. Thus, in another 8 Years, India needs to
add an ambitious capacity addition rate of ~ 45 GW / Year until 2030 of Renewable Power.
The Government of India as well as the State Governments are issuing various guidelines /
Regulations / orders to facilitate private investments to achieve this ambitious target.
Ever increasing demand for electricity has created the need for non- exhaustible,
environment friendly and readily available energy source. Coal is the undisputed leader in
meeting the electricity demand of India for past couple of decades and is expected to be
the leading source of energy into the foreseeable future. Coals demand for power
generation is expected to reach 1,475 million tonnes by the year 2031-32 and is expected
to meet about 78% of countrys electricity demand. However, the pollution impact due to
mining, greenhouse gas emissions, ash disposal etc are a significant environmental concern
which will only grow with its use.
Renewable energy technologies based on the inexhaustible resources of sunlight, wind,
water and biomass are considered to offer sustainable energy alternatives. India is
abundantly endowed with these renewable energy resources which are evenly distributed
across the country. Increasing use of these sources will be necessary for achieving
environmental objectives like reduction of Green House Gas (GHG) emission.
The present solar installed capacity of 5000 MW in Tamilnadu has to reach to the levels
of 25,000 MW by 2030 and the present wind capacity of 9000 MW is to reach 36,000 MW by
2030. Thus, there is an ambitious target for TN reach this level of Solar and Wind.
3. OPPORTUNITIES
Photovoltaic Technology is the science of generating direct current (DC) electrical
power measured in Watts (W) or Kilowatts (kW) from semiconductors when they are
illuminated by photons. A solar PV power plant essentially works on the aforementioned
concept as a renewable energy generation facility enabling power generation ranging from
small scale off-grid, building integrated systems to large scale grid connected
facilities.
Continued economic growth demands the need for increased energy production. The solar
photovoltaic (PV) industry is among the youngest renewable energies being developed today.
We believe the Ministry of New and Renewable Energys (MNRE) support for grid connected
solar power generation project provides balanced government incentives to develop and
demonstrate technical performance of solar PV projects.
At present, compared to other states, the electricity supply position in TAMIL NADU is
comfortable as the power storage and peak demand storage is less than 20%. However,
considering the fast growth in industrial & agricultural sector and increased demand
in domestic sector, the gap between supply and demand is likely to increase in coming
years. Hence harnessing of energy from the available non conventional sources will help
the state in reducing the gap in coming years.
The solar resource in Tamil Nadu area is excellent, with approximately 5,600Wh/m2 /day
in most of the area in TAMIL NADU.
To encourage private sector participation in generation of electricity through
renewable sources, both central and state Governments have declared a number of facilities
and incentives for captive power generation and also for third party sale of electricity.
Incentives are required for solar power installations as the cost of solar power is not
yet competitive with non-renewable sources of energy. Approaches taken in other countries
(most notably Germany, Spain, and Korea) include feed-in tariffs for solar power.
4. OVERALL REVIEW:
The entire factory premises have been leased out to M/s Apollo Hospitals Enterprise Ltd
for establishing world class multi specialties hospital. The company is having net profit
of Rs. 525.51 lakhs on 31st March, 2023.Your Board have taken all the efforts to venture
into operational activity and many initiatives have been taken towards that goal and Solar
Project is one among them.
5. THREATS, RISK AND CONCERNS:
The Covid Pandemic had slow down the business operation across the world, which has
impacted the company as well.
Barriers to entry in the power sector are high, especially in the transmission and
distribution segments, which are largely state monopolies. Also, entering the power
generation business requires heavy investment initially. The other barriers are fuel
linkages, payment guarantees from state governments that buy power and retail distribution
license.
Competition is getting intense, but despite there being enough room for many players,
shortage of inputs and natural gas and regulatory hurdles has dissuaded new entrants.
Trading of solar power is one segment that has not picked up yet due to aggressive
tariffs, however, this also maybe an opportunity in future from the perspective of
stronger payment security mechanism. Efficiency improvement measures in the sector,
especially through IT enablement, promotion of environment- friendly renewable
technologies and energy efficiency solutions in the coming future, are expected to provide
business opportunities to various stakeholders.
The company is functioning under the dynamic leadership and guidance of the experienced
directors and hence looking for more opportunity for increasing the revenue of the company
by searching for new investments opportunities which can bring good returns to the company
and hence managing the risk in a prudent manner.
6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has adequate system of internal control to safeguard and protect from loss,
unauthorized use or disposition of its assets.
All the transactions are properly authorized, recorded and reported to the Management.
The Company is following all the applicable Accounting Standards for properly maintaining
the books of accounts and reporting financial statements.
Considering the size and nature of business the company has appointed an Internal
Auditor for the company from the financial year 2016-17 to ensure proper and adequate
systems and procedures commensurate with its size and nature of its business. Internal
Auditors continue to monitor the operations and administration of the company.
7. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE
For the year ended 31st March 2023, there is no revenue generation from implementation
of Solar Project. However, from lease rental income for the year ended 31st March 2023 was
Rs.770.89 Lakhs as against Rs. 750.66 Lakhs during the Previous year.
8. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
The total income of the company for the year ended 31st March 2023 was Rs.877.81 Lakhs
as against Rs. 874.51 Lakhs during the Previous year. Profit Before Tax was Rs. 679.51
Lakhs as against Rs. 656.99Lakhs in the previous year. Profit After Tax was Rs. 525.51
Lakhs as against Rs. 506.99 Lakhs in the previous year.
9. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT, INCLUDING
NUMBER OF PEOPLE EMPLOYED
During the year, the human resource relations continued to be cordial, conducive and
mutually productive. Human resources are used efficiently to achieve success, stability
and growth of the Company. The total employees as at the year-end were 7 (Seven only)
10. KEY RATIOS:
In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018)
(Amendment) Regulations, 2018, the Company is required to give details of significant
changes (change of 25% or more as compared to the immediately previous financial year) in
key sector specific financial ratios.
| RA TIO |
FY 2022-23 |
FY 2021-22 |
% of Change |
Explanation |
| Current Ratio |
2.33 |
10.81 |
(78.00) |
The Current ratio indicates a Companys overall liquidity position. It measures a
Companys ability to pay short-term obligations or those due within one year. It is
calculated by dividing current assets by current liabilities. |
11. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY
PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF
| RATIO |
FY 2022-23 |
FY 2021-22 |
% of Change |
Explanation |
| Return on Net- worth |
56.84 |
124.22 |
(54.00) |
The decrease in Return on Networth is on account of increase in retained earnings. |
PLACE:- Chennai
DATE:- 9th August, 2023
+91-9892691696
