nagpur power industries ltd share price Management discussions

Managements discussion and analysis of the financial condition and results of operations include forward looking statements based on certain assumptions and expectations of future events. The Company cannot assure that these assumptions and expectations are accurate. Although the Management has considered future risks as part of the discussions, future uncertainties are not limited to Management perceptions.

1) Business Review, Industrial Review and Future Outlook

The Company mainly operated on Metal Recovery Plant and produces Low Ferro Manganese (Slag) through its slag recovery process. However, the management is of the view that the re-useable waste of fine particles remaining in the manganese slag which was dumped at various places at the factory site has depleted and there is no more slag available to extract.

The management of the Company has foreseen this & thus entered another segment of business couple of years earlier via a majority stake in "The Motwane Manufacturing Company Private Limited" (MMCPL), now a material subsidiary company and is looking to develop its business in electrical sector. MMCPL is also engaged in manufacturing access control equipments for which the progress has been satisfactory.

During the year, Telemetrics Equipments Private Limited (TEPL) got merged in MMCPL vide order of Regional Director, Western Region dated March 23, 2023 w.e.f. April 01, 2022. Telemetrics Equipments Private Limited (now known as Pune Division of MMCPL) is into manufacturing of underground cable fault equipments.

Further the Company has applied for the Non-Banking Financial Company (NBFC) license in March 2023.

2) Opportunities, Threats, Risks and Concerns:

Due to depletion of slag dumps, our company is not able to generate any revenue from this business. The Company is now operating through its material subsidiary "The Motwane Manufacturing Company Private Limited" ("MMCPL") and is looking to develop it.

MMCPL is actively engaged in manufacturing Electrical equipments for transformer testing, underground cable fault equipments, oil testing services, Access Control Equipments, Baggage Scanner.MMCPLs R&D department is actively engaged in developing new products such as VLF for cable testing, Transformer Test Batch, CT Analyzer, Motor State Batch. MMCPL is striving to adapt with rapid evolution of technology to help it with better decision making, higher efficiency, better capex and opex planning.

The Company has also applied for the NBFC license in March 2023 due it falling in a NBFC category as per the asset and income criteria, It awaits a response from the RBI as on the date of this report.

The Management of the Company meets frequently to take the stock of all the impending and immediate threats to the business and takes necessary steps for positioning of the Company to meet the same in time. Any major threats affecting the Company in general and business environment indirectly affecting the functioning of the Company are discussed with the Board from time to time.

3) Segment Wise/Product Wise Performance:

The Company mainly operated on Metal Recovery Plant and produces Low Ferro Manganese (Slag) through its slag recovery process. However, the re-useable waste of fine particles remaining in the manganese slag which was dumped at various places at the factory site has depleted and there is no more slag available to extract. This is the reason the company has recorded NIL revenue from operations in this year.

The material subsidiary i.e MMCPL is engaged in 2 segments i.e Electrical and Electro-Mechanical. MMCPL has recorded operational revenue of Rs. 4,383.35 Lakhs during the financial year under review.

4) Internal Control Systems and their adequacy:

The Company has adequate internal control systems in place with reference to the financial statements and the size of its business operations. The Audit Committee of the Board periodically reviews the internal control systems with the management, Internal Auditors and Statutory Auditors and the adequacy of internal audit function, significant internal audit findings and follow-ups thereon.

5) Financial Performance / Overview of Operations:

During the year under review, the revenue from operation of the Company was NIL as compared to Rs. 16.07 Lakhs in the previous year.

• Subsidiary Company and Consolidated Statements

Your Company has one material subsidiary i.e ‘The Motwane Manufacturing Company Private Limited (MMCPL). During the financial year 2022-23, total revenue of MMCPL (including TEPL Pune Division) was Rs. 4,411.71Lakhs as compared to Rs. 3,330.61 Lakhs in the previous financial year. The Company made a loss of Rs. 228.83 Lakhs as compared to loss of Rs. 346.45Lakhs in the previous financial year.

The Consolidated Financial Statement of your Company for the financial year 2022-23, are prepared in compliance with applicable provisions of the Companies Act, 2013, Accounting Standard and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Consolidated Financial Statements have been prepared on the basis of audited financial statements of the Company, its subsidiary, as approved by their respective Board of Directors.

Pursuant to sub-section (3) of section 129 of the Act, the statement containing the salient features of the financial statement of Companys subsidiary is given as AOC-1. Brief particulars about the business of the Subsidiary are given hereunder.

MMCPL is an R & D based company and has developed various high technology test and measurement products which have applicability in the domestic and international markets. The companys products are sold primarily to the power sector and energy intensive industries. The company expects gradual pick up in its order book due to growth and reform in the distribution sector in which the company operates. Alternatively, it is exploring its potential in the IOT space in adjacent areas like smart lighting and other IOT related smart & connected industrial solutions. The Telemetrics Pune division of MMCPL is involved in manufacturing of underground cable fault equipments.

6) Material Developments In Human Resources / Industrial Relations, Including Number Of People Employed:

The human resource plays a vital role in the growth and success of an organization. The Company has maintained cordial and harmonious relations with employees.

During the year under review, various training and development workshops were conducted to improve the competency level of employee with an objective to improve the operational performance of individuals. The Company has built a competent team to handle challenging assignments and projects.

The Company has 09 permanent employees as on March 31,2023.

7) Details of Significant Changes:

Ratios	2023	2022	Reason for significant change
Debtors Turnover ratio	-	-	Not Applicable
Interest coverage ratio	-	-	Not Applicable
Current ratio	53.21	129.73	Current ratio has been decreased as compared to previous year on account of repayment of ICD from subsidiary during current year.
Debt equity ratio	-	-	-
Operating Profit Margin	-	-	Not Applicable
Net Profit Margin %	-	-	Not Applicable
Return on Net worth %	-1.75	8.20	Return on Net Worth has been decreased on account of unrealized loss on fair valuation of current and non-current investment during the year.
EPS	-1.10	4.67	EPS has been decreased on account of unrealized loss on fair valuation of current and non-current investment during the year.

8) Details of any change in Return on Net Worth as compared to the immediately previous financial year:

Return on Net Worth has been decreased on account of unrealized loss on fair valuation of current and non-current investment during the year.

9) Cautionary Statement:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.