Jaihind Projects Ltd Management Discussions

Indian economy

The domestic market had its fair share of upheavals in the financial year under review. A combination of deferral of award decisions and the implementation of long term reforms causing short term economic turbulence have led to a muted environment for project execution.

Global economic scenario

International markets have witnessed noticeable volatility, triggered by geo-political events, significant movements in currency and commodities, protectionist policies including tariff barriers, a prolonged boutof low oil prices, and constrained fiscal positions of oil producing nations. The recent hardening of oil prices is likely to now give better leeway to policy makers in GCC countries to allocate increased outlay on essential infrastructure.

Industry Structure and Development:

Global business environment continued to remain challenging during fiscal 2019 led by weak global growth, slowdown in China, divergent monetary policies and volatile currencies.

A strong infrastructure sector is vital to the development of a country’s economy. However, since last four years, the Indian economy has witnessed particularly an infrastructure sector a severe downturn. Further, a year-on-year basis, the infrastructure sector in India has been affected primarily due to high interest rates, rising inflation, depreciating rupee, sluggish pace of orders and the absence of viable big-ticket projects.

Your Company continued to perform with stability and maintained its momentum in the highly volatile market. The Company focused on cost control measures and product mix enrichment to sustain growth and profitability in the challenging year.

Opportunities and Threats:

In India, the infrastructure sector is instrumental in creating wide sources of employment. Many ancillary industries are dependent on the Infrastructure development industry. Infrastructure growth is necessary for the growth of the overall economy. Both are inter-dependent. Considering the importance of sector, government policies and budgets are accordingly drafted to promote infrastructure development.

The Company has more than 50 years of rich experience in the EPC Sector and was one of the major players in the industry. It had successfully completed national as well as international projects with quality. The Company had in its list of clients, major public and private sector organizations.

Jaihind Projects Limited is under Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016 (IBC) in terms of Order passed by the Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench with effect from 2^nd November, 2018. Mr. Premnarayan Tripathiwasappointed as Interim Resolution Professional by NCLT vide its Order dated 2^nd November, 2018.Presently,Its affairs, business and assets are being managed by the Resolution Professional Mr. Parthiv Parikh who was appointed vide order dated January 23, 2019byHonble NCLT, Ahmedabad Bench in place of Interim Resolution Professional. In viewof the above, theensuingAnnual General Meeting is being convened by the Resolution Professional.

Under Section 17 of the IBC 2016 the powers of the Board are suspended and the same are vested on the Resolution Professional, Mr.Parthiv Parikh. The Moratorium Period as stipulated under Section 14 of the IBC Code, 2016 is in force.

The RP invited Reslution plans for revival of the Company from the prospective Resolution Applicants.TheCommittee of Creditors vide e-voting completed on 13^th September, 2019 approved the Resolution Plan submitted by Resolution Applicant M/s Parixit Irrigation Ltd and thesame has been submitted to NCLT, Ahmedabad for its approval.

Financial Performance:

The financial performance of the Company for the year2018-19is described in the Directors Report under the head Financial Result.

Outlook:

The recent passage ofthe IBC (Insolvency & Bankruptcy Code) has been a major change in the environment for the company.As mentioned earlier,theCommittee of Creditors vide e-voting completed on 13^th September, 2019 approved the Resolution Plan submitted by Resolution Applicant M/s Parixit Irrigation Ltd and the same has been submitted to NCLT, Ahmedabad for its approval.

Risk and Concerns:

Needless to mention, with huge money, there comes the involvement of big risks. Construction is a high-risk business. Mitigation ofrisks is the all en-compassing requirement. Broadly speaking, construction projects face the following type of risks:-

• Business Risk

• Market Risk

• Financial Risk

• Legal Risk

• Commodity Risk

• Political Risk

• Exchange Rate Risk

Internal Control System:

Internal Controlsystem had been evaluated by theby the Auditor &erstwhileManagementbefore CIRP commenced. Scope of work of Auditors covers review of controls on accounting, statutory and other compliances and operational areas in addition to reviews relating to efficiency and economy in operations.

Development in Human Resources/Industrial front:

It has been the tradition of the Company to maintain excellent industrial relations at all levels.The Company is hopeful of getting revived upon approvalof the Resolution Plan submitted to Hon’ble NCLT, Ahmedabad Bench for its approval.

Cautionary Note:

The statements forming part of this Report may contain certain forward looking remarks within the meaning of applicable laws and regulations. The actualresults, performances or achievements of the Company depend on many factors which may cause material deviation from any future results, performances or achievements.

Significant factors which could make a difference to the Company’s operations include domestic and international economic conditions, changes in Government regulations, tax regime and other statutes.

The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events.

	For Jaihind Projects Limited
	(Company under Corporate Insolvency Resolution Process)
	Parthiv Parikh	Chetan K. Tolani
Place: Ahmedabad	Resolution Professional	Whole-time Director
Date:10.10.2019	IBBI/IPA-002/IP-N00369/2017-2018/11063	DIN: 02529867