Ivrcl Ltd Management Discussions

Infrastructure is the back bone for any economy. The extent and quality of infrastructure determines the ability of the country to utilize its comparative advantage and enables cost competitiveness. Given the strong backward and forward linkages and the positive externalities that infrastructure generates, it can be a vehicle for social and economic transformation.

Infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as ‘Make in India and the production-linked incentives (PLI) scheme to augment the growth of infrastructure sector. Historically, more than 80% of the countrys infrastructure spending has gone toward funding for transportation, electricity, and water& irrigation. While these sectors still remain the key focus, the government has also started to focus on other sectors (and sub sectors) as Indias environment and demographics are evolving. There is a compelling need for enhanced and improved delivery across the whole infrastructure spectrum, from housing to water and sanitation services, to digital and transportation demands, which will assure economic growth, increase quality of life, and boost sectoral competitiveness while reducing carbon intensity.

India being a developing nation is set to take full advantage of the opportunity for the expansion of the infrastructure sector, and it is reasonable to conclude that Indias infrastructure has a bright future ahead of it.

• Inspite of the prolonged duration the company is going through the process of "Liquidation as a going concern", it is managing to complete the existing / in-hand projects holding on to the project resources and cash flows thereby managing to keep the organisation together without allowing it to collapse.

The Company being under Liquidation as going concern during the fiscal 2024-25, there has been no new contract during the period. Efforts are afoot for effective performance in completing the Projects on-hand and O & M Business so as to maintain the Companys Prequalifications and retaining the talented Technical Manpower.

Soon after resuscitation of the Company, IVRCL shall endeavour to compete in the emerging market opportunities of Services & Solution across the Industry and Country.

In view of the delayed process of sale of the Company as going concern, and in wake of severe cash crunch, the projects in hand are being executed with enhanced & minutely monitoring team from Head Office.

IVRCL has been maintaining effective system of internal control for facilitating accurate, reliable and speedy compilation of financial information, safeguarding the assets and interests of the company and ensuring compliance with all laws and regulations, keeping the Certification of Integrated Management Systems (IMS) intact.

Await the opportunities to participate in bidding of new projects where IVRCL has acquired exceptional skill and pre-qualifications across several sectors in the EPC domain, in collaboration with the financial qualifications of the successful bidder in the prevailing sale process of IVRCL through Liquidation as going concern.

Owing to the companys situation in the process of "Liquidation as a going concern" already many of the pre-qualifications have lapsed, except in a few verticals where works are in hand and orders are being executed, where there are few retainable qualifications..

With the lasting repute IVRCL could retain and kept the faith of a good number of government clients and long-serving employees with key area of expertise and thereby keeping the on-hand orders valid, even when the company is passing through Liquidation as going concern.

The company has a prolonged period of Liquidation as going concern process and looking forward for successful completion of the sale process and new management taking over the reins fully as per IBC 2016.