imp powers ltd Management discussions

Company Philosophy on Corporate Governance

Corporate Governance is a mechanism by which the values, policies and procedures of the organisation are inculcated and manifested. The essence of Corporate Governance lies in promoting and maintaining integrity and transparency in dealings by the Promoters.

Future Outlook

Pursuant to the Order dated 29th March, 2022 of the Honble National Company Law Tribunal, Ahmedabad Bench, Corporate Insolvency Resolution Process ("CIRP) has been Initiated against the Company in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016, ("the Code") and related rules and regulations issued thereunder with effect from 29th March, 2022 (CIRP Commencement Date). Pursuant to Section 17 of the Code, the powers of Board of Directors of the Company stand suspended effective from the CIRP commencement date and such powers along with the management of affairs of the company are vested with the Resolution Professional ("RP") viz Mr. Mukesh Verma bearing IP Registration Number IBBI Reg. no. IBBI/IPA-001/IP- P01665/2019-2020/12522.

The Company is under CIRP, adversely impacting the order book. After completion of the existing order, the Company is trusting on repairs, which is a remuneration activity. Currently, the Company has limited enquiries as regards fresh manufacturing. The Company has been working to shift its customers profile with entire focus on business from Non-utility customers as compared to business from govt. customers.

Intermittent STOP-START-STOP flipping of business operations lead to lot of uncertainty, impacting our liquidity with cascading effect. In such scenario, the Company has adopted a cautious approach of Survive-Stabilise-Sustain-Grow.

Financial & Operational Performance

Concerns (Rs. in lakhs)

Particulars	FY 2022-23	FY 2021-22
Revenue from Operations	2839.61	6673.99
Profit before Tax IPBT)	(5195.95)	RIGHT>(19017.02)
Profit after Tax (PAT)	(5195.95)	(22291.05)

Concerns

Committee of creditors is looking has not approved the resolution plan(s) received in the matter. Accordingly, the Resolution Professional has filed an application with the Honble

NCLT under Section 33(1) of IBC and the decision of Honble NCLT will have binding effect on all stakeholders.

Overall there is industrial demand slackening, constraints of banking and financial support, delay in collection of Receivables from the government owned PSUs, etc. The ongoing CIRP has affected the financial position of the Company.

Internal Control Systems

During the year under review, 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.

Human Resources

The Company continues its focus on development of human resources. 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. As the global pandemic of Chinese Corona has taken its toll on the Companys current performance, the Company, with a view to survive during such difficult times, has initiated various cost & manpower rationalisation measures. The workers have not been receptive to these cost cutting measures leading to industrial invest in the plant. The workers have been agitating to increase in salaries despite very low levels of activites, resorting to stick Strike, Dharna etc.

Cautionary Statement

The management believes the above 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.

Standalone Financials