IMP Powers Ltd Management Discussions.

Power transformers are critical and costly components of the Power T&D network that are used to regulate the voltage in power transmission process and hence play a key role.

INDUSTRY SCENARIO AND OPPORTUNITIES

Despite concerns about overall economic downturn, owing to the following factors, the outlook for demand for power transformers industry in general and for your Company in particular is very bright:

a) The Governments major focus on reaching power to all,

b) Entire Renewable Energy power to be connected to the Grid at 220KV,

c) Focus on replacing old transformers installed in 1980s for the purpose of reducing losses and higher efficiency,

d) There is growing demand for power transformers from export markets in Asia, Africa and potentially in Latin America markets, which we have been tapping largely through our association with key players/top corporate in the industry,

e) Commissioning of 3 Small Hydro Power Projects (SHPs) has given your Company a niche in the Ladakh region and with the Governments focus on SHPs, this is expected to grow multifold,

f) Considering that your Company is the only Company in India to have successfully completed and commissioned on behalf of Kargil Renewable Energy Development Agency (KREDA), 3 SHPs, KREDA wants your Company to take up many more projects in the region.

FINANCIAL & OPERATIONAL PERFORMANCE

(Rs. in lakhs)

Particulars FY 2018-19 FY 2017-18
Revenue from Operations 41,425.58 44,655.96
Profit before Tax (PBT) 276.65 813.99
Profit after Tax (PAT) 195.91 587.93

CONCERNS

Although, there are wide spread concerns about economic slowdown globally and in India too, with the Government initiating many steps to liven up the economy, it is likely to take around 2/3 quarters to catch up on the growth trajectory.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

Your Companys internal controls systems are commensurate with the nature and size of its business operations. Adequate internal controls, systems and checks are in place and the management exercises financial controls on the operations through a well - defined processes.

Overall industrial demand slackening, constraints of banking and financial support, delay in collection of Receivables from the government owned PSUs, etc.

HUMAN RESOURCES

The Company continues its focus on development of human resources. The Company is a firm believer that its employees are its strength and the Company therefore respects individual rights and dignity of all its employees. The relations of the management with employees during the year continued to be cordial. Learning and development has been strengthened to bring value addition in the employee and to enhance team building leading towards success. The Company focuses on providing the employees, employee - friendly environment and culture and career growth opportunities.

Cautionary Statement

Statement in the Management Discussion and Analysis describing the Companys objectives, projections, expectations and estimates regarding future performance may be "forward looking statements" and are based on currently available information. The management believes these to be true to the best of its knowledge at the time of preparation of this report. However, these statements are subject to certain future events and uncertainties, which could cause actual results to differ materially from those, which may be indicated in such statements.