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MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

This analysis report briefly describes the Company, current industry and business environment, ability of company to avail opportunities, exhibit strength, handling of threats/weaknesses, financial performance, internal controls and other related issues.

INDUSTRY DEVELOPMENTS:

The Union budget for 2023-24 provides for numerous initiatives for the industry including 50-year interest free loans to state governments with an outlay of Rs 1.3 lakh crore. 100 Critical Transport Infrastructure projects to be taken up for last mile connectivity for ports, coal, steel plants to be taken up. This will have an investment of Rs 75,000 crore.

An Urban Infrastructure Development Fund to be established for development of urban infrastructure by public agencies in tier-2 and tier-3 cities. The Fund will be managed by the National Housing Bank.

New Infrastructure Finance Secretariat established to enhance opportunities for private investment in infrastructure.

(https://prsindia.org/files/budget/budget_parliament/2023/Union_Budget_AnaIysis-2023-24.pdf

BUSINESS OUTLOOK:

The Indian economy has increased in size from being 10th to 5th largest in the world. Outlay for PM Awas Yojana (Housing) is enhanced to over Rs. 79,000 crore. Capital outlay of Rs. 2.40 lakh crore has been provided for the Railways. Road Sector also has the highest outlay so far.

https://pib.gov.in/ PressReleasePage.aspx?PRID=1895315

THE INFRASTRUCTURE SECTOR-DEVELOPMENT, OPPORTUNITIES AND THREATS: DEVELOPMENT AND OPPORTUNITIES :-

Indias is on high growth trajectory in 2023. Major strides in key sectors of infrastructure development is a critical force aiding the economic progress.

Infrastructure is a key enabler in India to become a US$ 26 trillion economy. Investments in building and upgrading physical infrastructure remains pivotal to increase efficiency and costs. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway.

The Infrastructure sector is highly responsible for propelling Indias overall development and enjoys focus from Government for ensuring time-bound creation of world class infrastructure in the country.

THREATS :-

There are no perceivable threats or risks to the long-term viability of Companys business.

After COVID period, the company has acquired substantial new sufficient orders amounting to Rs. 142 crores and the total Order Book to cater to next 3 to 4 years stands at approx. Rs. 205 crores.

RISKS AND CONCERNS:

The Companys ability to foresee and manage business risks is already proven inspite of adverse external conditions. The Companys long-term outlook is positive.

Your Company continues to focus on its core strength in Highways and mining as it has strong domain expertise. Your Company has collaborated with a number of reputed Foreign and Domestic Consultancy organizations for expansion in separate verticals in the Infrastructure space.

Appropriate Management intervention shall reduce the risk of volatility of revenue receipts.

INTERNAL CONTROLS AND THEIR ADEQUACY:

Your Company has adequate system of internal controls. Such internal controls are supplemented by Internal Financial Control Manual and Programme of internal audits. These are designed to ensure that financial and other records are reliable for preparing financial information and other reports and for maintaining regular accountability of the Companys assets. The Internal Auditors of your Company present their report on a quarterly basis to the Audit Committee of the Board.

A Management Information System covers major operating parameters and is reviewed regularly by the Board of Directors. Material deviations from planning and budgeting are reviewed on a quarterly basis by the Board for corrective actions.

NET WORTH:

As on 31^s1 March, 2023, the Net Worth of the Company stood at Rs. 5565.68 Lacs as compared to Rs. 5011.86 lacs during the previous financial year. This increase of 11.05% was mainly due to profits for the year of the Company. The Book value of the equity shares of the company stood at Rs. 76.55 per share (Previous year Rs. 68.89 per share).

SECURED LOANS:

Total Secured Loans outstanding of the Company stood at Rs. 1179.42 Lacs as against Rs. 1732.94 Lacs for the previous year. This comprised of Bank Term Loan of Rs. 557.24 lacs, working capital, Overdraft/ Cash Credit, secured loan of Rs. 622.18. There was a prepayment and reduction in Bank Loans to the extent of Rs. 500 lacs during the year under review.

FIXED ASSETS:

The gross block of fixed assets stood at Rs. 2201.16 Lacs as against Rs. 2651.91 Lacs for the previous year. The decrease in Gross block of Fixed Assets was on account of disposal of certain non-core assets of office block.

CURRENT ASSETS : SUNDRY DEBTORS :

Sundry Debtors stood at Rs. 1474.13 Lacs as against Rs. 1359.06 Lacs during the previous financial year. Debtors are mainly due to project end billings and others are outstanding mainly of last quarter of the year, pending approvals. All clients are Government/ PSU. Due to the formal approval based payments the Company has to sustain higher levels of Sundry Debtors as a normal business feature. The Company continues to make efforts to reduce the level of debtors constantly.

CASH & BANK BALANCES:

The Cash and Bank Balances stood at Rs. 517.92 Lacs. This is mainly due to fixed deposits pledged with Banks as 100% cash Collateral for Bank guarantees issued by the company to its Clients as per Contractual requirement. The same shall be available to the Company once Bank Guarantee limits are sanctioned to the Company.

LOANS & ADVANCES:

Current Short Term Business Loans and advances stood at Rs. 3922.81 Lacs (Previous year Rs. 3274.36 Lacs). The increase is a normal business requirement of Company.

CURRENT LIABILITIES & PROVISIONS (EXCLUDING CURRENT MATURITY OF SECURED LOAN):

The current liabilities and provisions stood at Rs. 1997.52 Lacs (previous year Rs. 1466.83 Lacs). This mainly consists of Trade Payables of Rs. 446.14 Lacs, Statutory Liability of Rs. 465.44 Lacs and other payables and provisions amounting to Rs. 1085.94 Lacs.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company continues its committed priority on Human capital.

The Company has adopted Indian Accounting Standard (IND-AS), notified under the Companies (Accounting) Rules, 2015.

At the end of the Year 2022-2023, the break-up of Human Resource was employment of 72 Technical, 50 Non- Technical and 22 Supporting Staff, total being 144 number of staff.

DETAILS OF SIGNIFICANT CHANGES IN FINANCIAL RATIOS :

Particulars	2023	2022
Operating Ratio	49.16%	35.91%
PBIDT Ratio	40.98%	31.24%
PBT Ratio	35.69%	23.37%
PAT Ratio	24.44 %	15.26%
Net Worth (Rs.)	5565.68	5011.86
Return on Net Worth	9.60%	8.25%
Return on Equity (PBT/Equity)	11.65%	10.99%
Interest Coverage Ratio	4.05	3.11
Debt Equity Ratio (Secured Loan/Equity)	0.23	0.37
Current Ratio	2.52	2.06
Debtors Turnover Ratio	1.28	1.73
Inventory Turnover Ratio	29.69	28.84
EPS (Basic)*	7.61	6.14
EPS (Diluted)*	7.61	6.14

CAUTIONARY STATEMENT :

Statement in this Management Discussion and Analysis report describing the Companys objectives, projections, estimates and expectations may be forward looking statements with the meaning of applicable laws and regulations. Actual results might differ.