Manav Infra Projects Ltd Management Discussions

This MD&A provides analysis of the operating performance of the Companys business segments, as well as a discussion of cash flows, the impact of risks and outlook for the business, Additional information about the Company.

Industry Overview

For a developing economy like India, with a high aspirational population, infrastructure creation is the critical need of the hour. It is the broad foundation of the economy, which support all other sectors. The infrastructure sector, as a whole, spans a wide range of sub-groups such as power, roads, ports, railways, airports, telecommunication, and so on. In spite of challenges posed by the pandemic since 2020, India continues to rank among the fastest growing economies of the world, with a vision to accomplish the US$ 5 trillion mark in the foreseeable future.

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development.

Historically, investments in the transport sector have been made by the Government. However, in order to encourage private sector participation, the Ministry has laid down a comprehensive policy guidelines for private sector participation in the development of National Highways. The road network transports 64.5% of all goods in the country and 90% of Indias total passengers use road network to commute. For freight and passengers transit, Road transport is considered as one of the most cost effective and convenient modes of transportation due to its high penetration level with door-to-door delivery.

Gati Shakti Master Plan

PM Gati Shakti will incorporate the infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN etc. Economic Zones like textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, agri zones will be covered to improve connectivity & make Indian businesses more competitive. It will also leverage technology extensively including spatial planning tools with ISRO (Indian Space Research Organisation)

Government Initiatives and Investments

Some of the recent government initiatives and investments in the Infrastructure sector are as follows:

Union Budget 2023-24:

• Capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion), which would be 3.3 per cent of GDP and almost three times the outlay in 2019-20.

• As per the Union Budget 2023-24, a capital outlay of Rs. 2.40 lakh crore (US$ 29 billion) has been provided for the Railways, which is the highest ever outlay and about 9 times the outlay made in 2013-14.

• The Government has decided to continue the 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of Rs. 1.3 lakh crore (US$ 16 billion).

• Since 2016-17, the budget for the Pradhan Mantri Awas Yojana, the flagship housing scheme of the government, has increased 280% from Rs. 20,936 crore (US$ 2.5 billion) in the revised estimates of 2016-17 to Rs. 79,590 crore (US$ 9.6 billion) in the latest 2023-24 budget.

• The Awas Yojana budget estimate for 2023-24 constitutes an allocation of Rs. 25,103 crore (US$ 3 billion) to Pradhan Mantri Awas Yojana-Urban and Rs. 54,487 crore (US$ 6.5 billion) to Pradhan Mantri Awas Yojana-Gramin.

Overview of the Indian Economy

The Government of India is expected to invest highly in the infrastructure sector, mainly highways, renewable energy and urban transport.

The Government of India is taking every possible initiative to boost the infrastructure sector.

The Indian economy has benefitted considerably from the infrastructure sector. It is a diverse field that passes through many industries including construction, urban and rural development, real estate, telecommunication, and transport. It contributed a share of about nine percent to Indias GDP.

Segment-wise Performance

The Company operates in one reportable segment i.e. Excavation and Piling. The Service Segments has been identified as separate segment in accordance with Accounting Standard 17 ‘Segment Reporting.

Performance

During the year under review, the total income of the Company amounted to Rs. 120,685,240 as against Rs. 54,000,635 during the previous year. There is an increase in the turnover as compared to previous year and the Company has generated a net profit of Rs. 5,983,508 during the financial year 2022-23 as against the last year net loss of Rs. 41,268,609. Your Directors are putting in their best efforts to further improve the performance of the Company even in the adverse scenario.

Risk Management

The Infrastructure sector is a key driver of the Indian economy. During 2022-23, there has been a significant push from the Government, which has been providing financial support and implementing initiatives to give a boost to the sector.

Achievements

Following are the achievements of the government in the past four years: ? The total national highways length has increased. ? Removal of Chinese investment ? Drive for introducing Electrical vehicles in India. ? Massive connectivity drive in North East. ? Number of airports has increased in the recent years.

Road Ahead

India must enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion. Indias population growth and economic development requires improved transport infrastructure, including through investments in roads, railways, and aviation, shipping and inland waterways. India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast-growing population. This investment will only be rational as well as sustainable, if we additionally focus on long-term maintenance and strength of our buildings, bridges, ports and airports.

The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 104 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from 2018-30. Indias Infrastructure forms an integral part of the countrys economic ecosystem. There has been a significant shift in the industry that is leading to the development of world-class facilities across the country in the areas of roads, waterways, railways, airports, and ports, among others. The country-wide smart cities programmes have proven to be industry game-changers. Given its critical role in the growth of the nation, the infrastructure sector has experienced a tremendous boom because of Indias necessity and desire for rapid development. The expansion has been aided by urbanisation and an increase in foreign investment in the sector. 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.

SWOT analysis of the Company

Strengths

1. Cordial relations with Customers

2. In depth knowledge of Industry Commercial & Technical

3. Proven track record

4. Large base of machines and equipments

5. Infrastructural support

6. Experienced management team

Weaknesses

1. Dependent upon growth in infrastructure industry

2. Insufficient market reach outside Maharashtra

3. Surge in finance needs to cope up with the increased demand

Opportunities

1. Governments drive to infrastructure up gradation

2. Rapid urbanization and growth in infrastructure

Threats

1. Industry is prone to changes in government policies; any material changes in the duty or international raw material prices may adversely impact our financials.

2. There are no entry barriers in our industry, which puts us to the threat of competition from new entrants.

Internal Control Systems and Their Adequacy

The Company has adequate system of Internal Controls to help Management review the effectiveness of the Financial and Operating Controls and assurance about adherence to Companys laid down Systems and

Procedures. As per the provisions of the Companies Act, 2013, internal controls and documentation are: In place for all the activities. Both Internal Auditors and Statutory Auditors have verified the Internal Financial Controls (IFC) at entity level and operations level and satisfied about control effectiveness. The controls are reviewed at regular intervals to ensure that transactions are properly authorized, correctly reported and assets are safeguarded. The Audit Committee periodically reviews the findings and commendations of the Auditors and takes corrective action as deemed necessary.

Human Resources

At Manav Infra Projects Limited, our people are our strongest asset. The Company invests in building the best-inclass team led by exceptional professionals. Over the years, the Company has been nurturing a meritocratic, empowering and caring culture that encourages excellence. The Company nurtures talents by providing its people opportunities to sharpen their capabilities. It encourages innovation, lateral thinking, and multi-skilling and prepares its people for future leadership roles. Your Company strongly believes that employees are central to the Companys transformation agenda and that it is important to build capabilities of employees to handle both current and future needs. During the year, the Company worked extensively on identifying the needs of employees across all categories and level. The Company has built a young and vibrant team of qualified and competent professionals to meet the emerging business challenges and market competition.

Cautionary Statement

Statements in the Management Discussion and Analysis, describing the Companys objective, projections and estimates, are forward looking statements and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Polices and other related factors.

Environment, Health and Safety

The Company is committed to embrace globally accepted best practices and comply with all applicable health, safety and environmental legislations and other requirements in its operations. The Company continues to endeavour to comply in all material respects with applicable occupational health and safety laws, regulations and other contractual requirements relevant to health and safety of employees and sub-contractors at project sites and manufacturing facilities. To ensure effective implementation of such practices, maintain a safe workplace and provide the necessary training to staff members, the Company has in place a code of conduct dealing with matters related thereto.