Premier Energy & Infrastructure Ltd Management Discussions

Premier Energy and Infrastructure Limited (PEIL) is focused on the construction, housing development and energy sector. PEIL undertook estate development projects with business focus on residential and commercial developments.

PEIL further has expanded to the sector of developing infrastructural facilities in the Power generation.

INDUSTRY REVIEW

The Global environment continued to remain challenging by weak trade and minimal investments. The economy is expected to gradually improve through a re-balancing amidst supportive government policies and fiscal stimulus.

SWOT ANALYSIS Strengths

> PEIL, is also a developer of renewable energy power plants in India based on aggregate installed capacity.

> Operates in the rapidly growing renewable energy sector, which benefits from increasing demand for electricity and regulatory support.

> Experienced management and operating team with relevant industry knowledge and expertise.

Weakness

> Revenues from our business of renewable power generation are exposed to market based electricity prices.

> We are also susceptible to any delay in execution or escalation in cost by sub-contractors executing our projects and these delays or cost escalations may make new energy projects too expensive to complete or unprofitable to operate.

> Development activities and operations through third party developers, over which we may not have full control.

> The SEBs that we deal with may face challenges on financial viability and hence may delay or defer payments.

Opportunities

> The gap between demand and supply for power in the country presents a large and lucrative business opportunity that is expected to sustain for a number of years

> There is large amount of interest in renewable energy generation and the benefits lead to premium pricing.

Threats

> We face constraints to expand our renewable energy business due to unavailability of suitable operating sites, which are in limited supply.

> Our business is governed by a tight regulatory mechanism across various regions that we operate and any negative impact due to change in regulations could affect the viability of the business.

RISKS AND CONCERNS

Industry Risks - Housing Sector

Due to increased demand for land for development of residential and commercial properties, we are experiencing increasing competition in acquiring land in various geographies where we operate or propose to operate. In addition, the unavailability or shortage of suitable parcels of land for development leads to an escalation in land prices. Any such escalation in the price of developable land could materially and adversely affect our business, prospects, financial condition and results of operations. Additionally, the availability of land, its use and development, is subject to regulations by various local authorities. For example, if a specific parcel of land has been delineated as agricultural land, no commercial or residential development is permitted without the prior approval of the local authorities.

Industry Risks - Renewable Power Generation Sector

The company is exposed to typical industry risk factors including competition, regulatory environment and liquidity risks. The company tries to manage these risks by maintaining conservative financial policies and by adopting prudent risk management practices.

Regulatory environment risk - Housing Sector

The present Government of India has announced its general intention to continue Indias current economic and financial sector liberalization and deregulation policies. However, there can be no assurance that such policies will be continued and a significant change in the Government of Indias policies in the future could affect business and economic conditions in India and could also adversely affect our business, prospects, financial condition and results of operations.

Regulatory environment risk - Renewable Power Generation Sector

The Company is in a business which is dependent in a major way on regulatory policies as well as pricing. Any adverse change in the regulatory policy framework could impact the companys operations and financial results.

Besides the above risks, the Company has perceived risks arising from delay in execution of projects and delivery of products and services and these could arise due to external factors like lack of infrastructure and non availability of finance and resources at reasonable costs.

INTERNAL CONTROLS AND THEIR ADEQUACY

The company has adequate internal control systems commensurate within its size and nature of business. The Management has overall responsibility for the Companys internal control system to safeguard the assets, usage of resources, compliance with applicable laws & regulations and to ensure reliability of financial records.

Consolidated	2024-25	2023-24
Extraordinary items	-	-
Net Profit for the year	20.60	(39.33)
Other Comprehensive Income	(0.91)	(0.20)
Total Comprehensive ncome	21.50	(39.13)

NETWORTH: The Consolidated Net worth of the company as on 31st March 2025 is Rs. 3710.03 Lakhs as against Rs. 3688.52 lakhs in the previous year.

HUMAN RESOURCES

Our Human resources are a very valuable asset for our Company and employee involvement is encouraged and harnessed towards attainment of the Companys goals. A good pool of human resources is the biggest competitive advantage of PEIL.

The company is planning to employ senior professionals to add to the human capital which is the main contributor for the growth of business.

ACCOUNTING TREATMENT

In the preparation of financial statements there is no differential treatment from the prescribed Accounting Standards.

MANAGEMENTS RESPONSIBILITY STATEMENT

The management is responsible for preparing the companys consolidated financial statements and related information that appears in this annual report. It believes that these financial statements fairly reflect the form and substance of transactions, and reasonably represent the companys financial condition and results of operations in conformity with Indian Generally Accepted Accounting Principles.

FINANCIAL PERFORMANCES WITH RESPECT TO OPERATIONS

Income from Operations: Consolidated revenues for the year ended 31st March 2025 were Rs. 216.05 lakhs as against Rs. 501.34 lakhs in the previous year.

Rs. In lakhs

Consolidated	2024-25	2023-24
Revenue	216.05	501.34
Cost of Material Consumed	-	326.77
Employee benefit Expenses	53.09	44.58
Other Expenses	154.06	152.95
Finance Cost	16.59	9.78
Depreciation	0.03	-
Tax	(28.31)	6.59

KEY FINANACIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company is required to give details of significant changes (Change of 25% or more as compared to the immediate previous financial year) in key-sector specific financial ratios.

The company has identified the following ratios as Key Financial Ratios:

RATIOS	2025	2024
Debtors turnover (Avg. days)	NA	NA
Inventory Turnover Ratio	NA	NA
Interest Coverage Ratio	NA	(2.44)
Current ratio (times)	0.52	0.39
Debt Equity ratio	1.84	1.66
Operating profit margin %	NA	(0.05)
Net profit margin %	NA	(0.79)

The detail of return on net worth is given below:

Return on net worth	2025	2024
Return on networth %	0.01	(0.01)