Insolation Energy Ltd Management Discussions

The Management of Insolation Energy Limited Presenting Management Discussion and Analysis Report covering the operational and financial performance of the company for the year 2023-24, the core business of the company is manufacturing, trading and marketing of Solar Panels and Battery.

BUSINESS OVERVIEW

Our Company is promoted and managed by Mr. Manish Gupta and Mr. Vikas Gupta. Our individual promoters manage and control the major affairs of our business operations. According to the consolidated balance sheet, during the said period, the company has earned a revenue of Rs 741.32 crore as compared to Rs 280.06 crore earned in the last financial year. Which is 165.70% more than last year. During the said period, the company has earned a net profit after tax of Rs 55.47 crore as against Rs 10.68 crore. Which is 419.31% more than last year. In the same period, the company earned EBITDA of Rs 84.16 crore as against Rs 19.10 crore, which is 340.70% more than last year. It is the vision of our promoters that has been instrumental in defining the business strategy of our Company.

Our Company is amongst the second largest North India solar panels, Batteries and inverter manufacturers based out in Jaipur, Rajasthan.

At present the combined production capacity of both the units of the company is 950 MW annually. In the coming years, the manufacturing capacity will be increased to 3000 MW with compatible Glass to glass and HJT and also 1200 MW solar cell and Aluminum extrusion 12000 MTA and fabrication manufacturing unit will be set up. Company will start manufacturing BIS, ALMM & IEC certified N -TYPE Topcon solar panels very soon so that solar panels of up to 600 watts of INA Solar brand will start being available in the market. The company will have enough capacity for the next 6 months. There are orders. Our Panels are also a part of ALMM (Approved List of Modules Manufacturers). Our Products are promoted in the brand name of INA Solar.

OPPORTUNITIES

The Company has carved a niche for itself in the industrial shoe/ uppers segment in the domestic market and now all set to enter Foreign Market. The quality of the Companys products and services provided is well recognized. Embarking on this strength we are constantly working towards expanding the market for Companys products in India and now in other countries apart from our present work areas.

THREATS

Operating in the dynamic solar industry involves navigating various threats to ensure sustained success and growth. Changes in government policies, incentives, and regulations can impact demand for solar projects and affect revenue. Rapid evolution of solar technology could lead to project inefficiencies and higher maintenance costs if outdated technologies are used. Delays or disruptions in the supply of solar components can impact project timelines and profitability. The competitive solar EPC market can lead to pricing pressure and reduced profit margins.

RISK & CONCERNS

To sustain and grow in global market one must be ready for some level of uncertainty. Greater the uncertainty, higher the risk. The risk management function is integral to the Company and its objectives include ensuring that critical risks are identified, continuously monitored and managed effectively in order to protect the Companys business. The Company operates in an environment which is affected by various factors some of which are controllable while some are outside the control of the company. The Company proactively takes reasonable steps to identify and monitor the risk and makes efforts to mitigate significant risks that may affect it. Some of the risks that are potentially significant in nature and need careful monitoring are listed here under:

- Macroeconomic Factors

- Political Factors

- Changes in government policy and legislation

- Raw Material Price Increase

- Foreign Exchange Fluctuation

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company maintains appropriate and effective internal control systems in proportion to the business size and complexity. In our opinion, these systems offer, among other things, a fair guarantee that transactions are carried out with management authorization. These have been implemented at every level and are meant to ensure compliance with statutory and regulatory requirements for internal controls, as well as the accurate recording of financial and operational data. The permissible compilation of financial accounts in accordance with generally accepted accounting standards is also ensured, as is the sufficient protection of the Companys assets from major misappropriation or loss. A crucial component of the Companys internal control system is an independent internal audit function. In addition to this, the Company also has a robust internal audit programme and regular reviews by Management and the Boards Audit Committee.

HUMAN RESOURCE

Human resource remains a valuable asset of our business. The Company continues to lay emphasis on attracting and retaining talent. Personnel developmental initiatives including training, both technical and managerial, are regularly conducted to enhance human potential. As on 31^st March, 2024 the Company has 147 employees and almost 62 employees in its Wholly Owned Subsidiary. The Company recognizes that its employees are its principal assets and that its continued growth is dependent upon the ability to attract and retain quality people. The company has established a full-fledged Human Resources Department, which is entrusted with the responsibility of retaining and developing the skills of all its employees. The Company also recognizes the importance of providing training and development opportunities to its people to enhance their skills and experiences, which in turn enables the Company to achieve its business objectives. The industrial relations in all units of the company continue to be cordial.

HEALTH, SAFETY AND ENVIRONMENT PROTECTION

Companys Health and Safety policy commits to comply with applicable Legal and other requirements connected with occupational Health, Safety and Environment matters and provide a healthy and safe work environment to all employees of the Company.

FORWARD LOOKING STATEMENT

The success of our business depends substantially on our ability to implement our business strategies effectively. Company is planning to expand its operations in the domestic tiles market of India by appointing its dealers throughout in India. The company also planning to acquire other business involved in the same

line of business activity. This will result in increasing the market capturing of the company and will also increase the turnover and as a result the profits of the Company.

OCCUPATIONAL HEALTH, SAFETY, AND ENVIRONMENT

The emphasis on Occupational Health, Safety and Environment continues at all of the operations of the Company throughout India. The Company is committed to the best standards in safety and continuously monitors matters related to this.

OUTLOOK

The outlook for solar PV remains bright, with capacity additions expected to more than double by 2028 compared to 2022. Forecasts predict nearly 710 GW of new solar PV and wind capacity additions, continuously breaking records over the forecast period. This grow this propelled by lower generation costs compared to both fossil and non-fossil alternatives and ongoing supportive policies in various countries. However, the ability of local manufacturing projects to proceed remains uncertain due to the significant increases in manufacturing capacity in China, leading to supply out stripping global demand and consequent record low module prices.

RATIOS

CAUTIONARY STATEMENT

Statements in the Management Discussions and Analysis report describing the Companys objectives, projects estimate, expectations or predictions may be forward looking statements within the meaning of applicable security laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand and supply and price conditions in domestic and overseas market in which the company operates, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factor.