Globus Power Generation Ltd Management Discussions

Annexure-4

ECONOMIC GROWTH AND POWER SECTOR

Indian power sector is undergoing a significant change that has rede ned the industry outlook. Sustained economic growth continues to drive electricity demand in India. The Government of Indias focus on attaining Power for all has accelerated capacity addition in the country. Although power generation has grown more than 100-fold since independence, growth in demand has been even higher due to accelerating economic activity.

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 466.24

GW as of January 31, 2025.

As of December 2024, India has a total installed capacity of 209.45 GW for renewable energy sources, including large hydropower. The breakdown is as follows: Wind power at 48.16 GW, solar power at 97.87 GW, biomass/co-generation at 10.73 GW, small hydro power at 5.10 GW, waste to energy at 0.62 GW, and large hydro at 46.97 GW. This diverse mix highlights Indias significant strides in expanding renewable energy infrastructure for a more sustainable energy future.

The non-hydro renewable energy capacity addition stood at 15.27 GW in FY23, up from 14.07 GW in FY 22.

India ranked fourth in the list of countries to make significant investments in renewable energy by allotting US$ 77.7 billion between 2015 and 2022. Total FDI in flows in the power sector reached US$ 19.59 billion between April 2000 and September 2024, accounting for 2.76% of the total FDI in flow in India.

As per the National Infrastructure Pipeline 2019-25, energy sector projects accounted for the highest share (24%) out of

the total expected capital expenditure of Rs. 111 lakh crore (US$ 1.4 trillion).

Investments in the renewable energy space have increased significantly over the past few years. SJVN Limited is looking to develop 10,000 MW solar power projects inviting investment of Rs. 50,000 crore (US$ 6.56 billion) in the next ve years in Rajasthan. The nation plans to invest Rs. 9,15,920 crore (US$ 107 billion) by 2032 to develop additional transmission lines, supporting its goal to nearly triple its clean power capacity.

Indias electricity generation from renewable and non-renewable sources for FY21, FY22, and FY23 was 1,373.08 BU,

1,484.36 BU, and 1,617.72 BU, respectively.

In FY25 (until December 2024), the power generation in India was 1,378.42 BU.

The peak power demand in the country stood at 249.85 GW in September 2024.

Electri cation in the country is increasing with support from schemes like Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), Ujwal DISCOM Assurance Yojana (UDAY), and Integrated Power Development Scheme (IPDS). India has also launched the Mission Innovation CleanTech Exchange, a global initiative that will create a whole network of incubators across member countries to accelerate clean energy innovation.

OPPORTUNITIES IN THE POWER SECTOR

Indias power sector remains dynamic and resilient in 2025-26, with major reforms, ambitious targets, and expanded

investment avenues shaping the growth landscape. Key opportunities for the coming year include:

? Clean Energy Expansion: Indias total installed renewable energy capacity reached 220.10 GW as of March 2025, up from 198.75 GW last scal. Solar continues to dominate, adding 23.83 GW in FY 2024-25 and surpassing 100GW in cumulative capacity. The government maintains the goal of 500 GW non-fossil capacity by 2030, with policy and financial incentives supporting large-scale solar and wind projects, as well as new bio-CNG blending initiatives in FY26.

? Nuclear Power Push: The 2025-26 Union Budget marks a robust pivot toward nuclear energy. India launched the Nuclear Energy Mission, aiming for 100 GW of nuclear capacity by 2047, including at least ve operational indigenous Small Modular Reactors (SMRs) by 2033. This new focus is supported by a 20,000 crore R&D allocation and legislative reforms to ease private and foreign investment in nuclear infrastructure.

? Domestic Manufacturing and Cleantech: Reduced import duties on critical minerals and solar/wind components, combined with expanded production-linked incentives, strengthen domestic manufacturing of solar PV modules, advanced batteries, and electrolysers. This improves supply chain resilience, creates jobs, and accelerates self-reliance in energy equipment manufacturing.

? Grid Modernization and Transmission: Investments are accelerating Indias grid infrastructure to integrate renewables, reduce losses, and expand inter-regional transmission corridors. Green Energy Corridors, large solar parks, and viability gap funding for o shore wind are key areas attracting both public and private participation.

? Green Hydrogen Economy: New PLI (Production Linked Incentive) schemes and the ongoing National Green Hydrogen Mission are spurring electrolyser manufacturing and green hydrogen production projects for heavy industry and transport decarbonization, targeting 5 MMT annual output and 60-100 GW of electrolyser capacity by 2030.

? Opportunities for PPPs and FDI: 100% FDI is permitted across the power value chain, and the government is boosting public-private partnerships (PPP) in generation, transmission, and distribution. Supportive policies, financial incentives, and sectoral reforms foster an attractive climate for foreign and domestic investors.

? Emerging Technologies and Innovation: Growth in smart grids, digital power management, energy storage solutions, and advanced chemistry cell manufacturing offers vast potential. The focus on efficiency, grid reliability, and modern infrastructure is expected to reduce outages and transmission losses, driving innovation and investment.

Indias power sector in 2025-26 is thus characterized by rapid clean energy deployment, a new nuclear emphasis, technology-led domestic manufacturing, and an investor-friendly policy ecosystem, together ensuring sustainable growth, energy security, and global competitiveness for the years ahead.

OUTLOOK OF THE COMPANY

VISION:

Your companys priority is to support the pace of economic development by providing accessible, affordable, and reliable power to consumers and to be one of the leading companies across the Globe that produces Clean & Smart Energy and with the aim to be environment friendly.

MISSION:

a) To significantly reduce societys dependence on nite fossil fuels by actively seeking and promoting

innovative, sustainable, and inexhaustible alternative energy sources.

b) To address the challenges of global warming by leveraging and maximizing the utilization of Indias abundant

clean energy resources.

c) To ensure long-term sustainability by protecting the interests of future generations and preserving our current

renewable energy assets.

THE GROWTH SECTOR

Many countries have significantly expanded electricity generation, including thermal, hydro, nuclear, and especially Indias power generation landscape in 2025 is undergoing a rapid transformation, with renewable energy emerging as the fastest-growing sector, significantly outpacing growth in traditional fossil fuels:

I. Renewable Energy (Solar & Wind): Solar energy has shown the most striking growth, with installed solar capacity increasing from around 66.78 GW in 2022-23 to over 110.9 GW by June 2025. Wind power has also seen steady expansion, contributing 51.3 GW by mid-2025. Overall, renewable energy installed capacity nearly tripled from 76.37 GW in 2014 to 226.9 GW by June 2025.Renewables accounted for nearly 79% of all new power capacity added in Q1 2025, driven by policy incentives, falling technology costs, and strong investor interest.

ii. Grid Modernization & Energy Storage: Driven by the integration of renewables, investments have accelerated in smart grids and large-scale battery energy storage to enhance grid resilience, reliability, and energy access. Advanced storage solutions are increasingly being added to support intermittency in solar and wind production.

iii. Clean Hydrogen & Emerging Technologies: The clean energy transition is fostering new opportunities in green hydrogen, smart grids, and digitalization of energy systems. Advanced data analytics and AI are helping optimize production and distribution.

iv. Policy & Investment Trends:

Government and international organizations continue to prioritize non-fossil fuel investments, with clean energy comprising 83% of total power sector investment in 2024 2025. India ranked as the third-fastest-growing nation in power generation globally, after China and the US, over the last ve years.

Foreign direct investment and domestic manufacturing support are boosting solar PV, batteries, and grid infrastructure.

v. Continued Role for Coal (Selective, Growth Moderating): While coal remains a significant part of the energy mix for baseload supply (240GW as of June 2025), its share is gradually declining relative to renewables. Coal-based projects still account for targeted new capacity additions for energy security, but renewables are leading total sector growth.

The renewable energy sector especially solar remains the principal engine of growth in power generation for 2025 26, supported by investments in storage, grid modernization, and digital innovation. Indias energy future is being shaped by rapid clean power deployment, making the sector attractive for investors, technology providers, and policy makers seeking both sustainability and growth.

Our Management and Promoters leverage cutting-edge technologies and advanced mechanical techniques to optimize resource extraction efficiently. This approach not only ensures economic viability but also enables the delivery of reliable electricity to grassroots levels, fostering sustainable development and creating valuable employment opportunities.

RISK AND CONCERNS

The power sector plays a pivotal role in the economic development of the nation, in uencing nearly every industry either directly or indirectly. Establishing power projects involves significant capital investment, long gestation periods, and sustained execution efforts. As a result, any disruption or slowdown in this sector can have far-reaching implications on overall economic growth.

The industry is subject to several environmental, operational, and structural risks, which are outlined below:

a. Fuel Security and Price Volatility: Ensuring a consistent fuel supply remains a major short-term challenge.

Furthermore, fluctuations in global fuel prices can significantly impact power generation costs and erode pro t

margins.

b. Climate Change and Environmental Impact: The sector remains a key contributor to greenhouse gas emissions due to its reliance on fossil fuels, which supply nearly 80% of global energy needs. Addressing climate change is a pressing concern, necessitating a shift to cleaner energy sources.

c. Transmission and Distribution Losses: Technical and commercial losses in the transmission and distribution network reduce ef ciency and strain financial viability. Modernizing infrastructure and eliminating these losses is critical to sectoral health.

d. Dependence on Limited Energy Sources: Indias coal reserves are nite, and growing reliance on imported

fuels introduces strategic and economic vulnerabilities, making energy diversi cation essential.

e. Waste Generation and Disposal: Thermal power generation results in substantial solid waste, including ash

from combustion and sludge from cooling processes, posing environmental and disposal challenges.

f. Atmospheric Emissions and Public Health Risks: The sector contributes to air pollution through the release of harmful pollutants, greenhouse gases, dust, and operational noise. These emissions have implications not only for the environment but also for human health and safety. Issues such as odor, nuisance, landscape degradation, and visual impacts further exacerbate public concerns.

g. Technological and Skill Gaps: Limited adoption of advanced technologies, particularly in rural and state utilities, coupled with a shortage of skilled manpower to manage evolving systems like smart grids and storage solutions, hampers progress and innovation.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

To ensure regulatory and statutory compliance as well as to provide the highest level of corporate governance, your Company has robust internal systems and processes in place for the smooth and efficient conduct of business and complies with relevant laws and regulations. The system involves a compliance management team with established policies, norms and practices as well as the applicable statutes, rules and regulations. A comprehensive delegation of power exists for smooth decision making which is periodically reviewed to align it with changing business environment and for speedier decision-making.

A well-de ned internal control framework has been developed identifying key controls. The supervision of operational ef ciency of designed key controls is done by Internal Audit. Gap tracking report for operating ef ciency of controls is reviewed by the management regularly and action is taken to further strengthen the Internal Control System by further standardizing systems & procedures and implementing process changes, wherever required, keeping in view the dynamic environment in which the Company is operating.

HUMAN RESOURCES

Your Company has a highly talented team of committed professionals and has been able to induct, develop and retain the best talent. Competence building, Commitment building, Culture building and Systems building are the four pillars on which the HR Systems of your Company are based. The commitment of the employees is also reflected in the consistent improvement of business operations.

Your Company is deeply committed to the holistic development of our employees, recognizing them not only as valuable assets but also as responsible members of the community. The Company values each individual, providing them with opportunities aligned to their skills and potential. This approach nurtures strong, mutually beneficial relationships between the Company and its workforce, reinforcing a positive and productive work environment.

DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The Board of Directors has established robust internal financial controls to be adhered to by the Company. These controls are designed to ensure the accuracy, reliability, and completeness of the Companys financial reporting. The Directors con rm that such internal financial controls are adequate in design and have been operating effectively throughout the financial year.

The ef cacy and functioning of these controls are regularly reviewed and monitored by the Board during its periodic

meetings, ensuring continued compliance and timely corrective actions where necessary.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company for the year ended March 31, 2025, is comprehensively presented in the Balance Sheet, Statement of Pro t and Loss, and the Notes to Accounts forming part of the Financial Statements. The key highlights of the Financial Statements for the year under review are as follows:

(Rs. in Lacs)

Particulars	Financial Year 2024-25	Financial Year 2023-24
Revenue from operation	0.07	4.31
Other Income	-	-
Total Income	0.07	4.31
Total Expenses	(48.47)	(60.81)
Pro t/(Loss) before exceptional items and tax	(48.40)	(56.50)
Exceptional Item- Provision for Doubtful Advances	(402.53)	(731.62)
Pro t/(Loss) before Tax	354.13	675.12
Less: Tax Expenses	-	-
(Pro t/(Loss) for the period	354.13	675.12
Other Comprehensive Income / (Loss)	(70.06)	(34.33)
Total Comprehensive Income	284.07	640.79

*As per IND AS

During the financial year ended March 31, 2025, the Company reported a total income of Rs. 7,000/-, significantly lower than Rs. 4,13,000/- in the previous year, owing to a decline in operational revenues. The loss before exceptional items and tax stood at Rs. 48,40,000/- as against Rs. 56,50,000/- in the preceding year, indicating marginal improvement in the underlying cost structure.

An exceptional item of Rs. 402,53,000/- was recognised during the year, pertaining to reversal of provisions for doubtful advances, compared to Rs. 731,62,000/- in the previous financial year. As a result, the Company posted a profit before tax of Rs. 354,13,000/- for the year under review, as against Rs. 675,12,000/- in FY 2023 24. No tax expense was incurred during the year.

The Other Comprehensive Loss amounted to Rs. 70,06,000/- (Rs. 34,33,000/- in the previous year), resulting in a net profit of Rs. 284,07,000/- for FY 2024 25, compared to Rs. 640,79,000/- in the previous year. The financial outcome reflects prudent provisioning practices and ongoing efforts to stabilise the Companys financial position.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AS COMPARED TO THE PREVIOUS YEAR

Ratios	2024-25	2023-24	Variation (%)	Reason for signi cant change i.e.25% or more)
Debtor Turnover	Nil	Nil
Inventory Turnover	Nil	Nil
Interest Coverage Ratio	Nil	Nil
Current Ratio	0.51	0.65		Nil
Debt Equity Ratio	Nil	Nil
Operating Pro t Margin (%)	Nil	Nil
Net Pro t Margin (%)	Nil	Nil

DISCLOSURE OF ACCOUNTING TREATMENT

The Companys Financial Statements have been prepared strictly in accordance with the Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, and all other applicable provisions of the Act. The Financial Statements reflect a true and fair view, and have been drawn up on a going concern basis, following the historical cost convention and the accrual method of accounting.

The Company consistently adheres to the financial year commencing on 1st April and ending on 31st March for all

accounting and reporting purposes, in full compliance with Section 2(41) of the Companies Act, 2013.

	On and Behalf of the Board of Directors
	For Globus Power Generation Limited
Sd/-	Sd/-
Abhay Khanna	Amitabh Tandon
Whole-time Director	Director
DIN: 02153655	DIN: 01049659
Add: 9, Coral Court, Essel Tower,	Add.: 002, Tower-B,
M G Road, Gurgaon-122002	Jewel of India JLN Marg,
	Malviya Nagar, Jaipur, Rajasthan - 302017
Date: August 11, 2025
Place: New Delhi