premier energy infrastructure ltd Management discussions

COMPANY OVERVIEW

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 OVERVIEW

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.

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 revenue for the year ended 31st March 2023 was Rs 1429.95 lakhs as against Rs. 40.00 lakhs in the previous year.

		Rs. In lakhs
Consolidated	2022-23	2021-22
Revenue	1429.95	40.00
Cost of Materials consumed	597.93	-
Employee benefit Expenses	36.98	34.15
Other Expenses	167.24	457.72
Finance Cost	4.74	188.85
Depreciation	-	0.02
Extraordinary items		-
Other Comprehensive Income	0.09	0.07
Tax	-	(49.90)
Net Profit for the year	623.15	(590.77)

NETWORTH: The Consolidated Net worth of the company as on 31^st March 2023 is Rs. 3727.65 Lakhs as against Rs. 3104.49 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.

KEY FINANCIAL RATIOS:

Key Financial Ratios are given in the Notes to the Accounts for the year.

Annual Report 2022-2023

Annexure -2

AOC -1

(Pursuant to first proviso to subsection (3) of Section 120 read with rule 5 of the Companies (Accounts) Rules, 2014

Statement containing saient features of the Financial statement of Subsidiaries / Associaate Companies / Joint Ventures

Part “A”: Subsidiaries

(information in respect of each subsidiary to be presented with amounts in Rs.)

	RCI Power Ltd	RCI Power (AP) Ltd	RCI Power 30 MW Pvt Ltd	RCI Power 50 MW Pvt Ltd
Reporting Period of the Subsidiary	31.03.23	31.03.23	31.03.23	31.03.23
% of Shareholding	100%	100%	100%	100%
Reporting currency and Exchange rate as on the last date of relavent Financial Year in the case of foreign subsidiaries	Not a Foreign Subsidiary	Not a Foreign Subsidiary	Not a Foreign Subsidiary	Not a Foreign Subsidiary
Share Capital	150,000,000	500,000	100,000	100,000
Reserves & Surplus	506,405,313	84,990,953	(538,397)	(526,529)
Other Liabilities	132,765,528	5,436,203	453,426	(426,529)
Total Equity and Liabilities	789,170,841	90,927,156	15,029	-
Total Assets	789,170,841	90,927,156	15,029	-
For the Year ended 31st March 2023	-	-	-	-
Turnover	-	-	-	-
Profit / (Loss) Before Taxation	(3,181,714)	(207,138)	(48,468)	(37,597)
Provision for Taxation	-	-	-	-
Profit / (Loss after Taxation	(3,181,714)	(207,138)	(48,468)	(37,597)
Proposed Dividend	Nil	Nil	Nil	Nil

PREMIER ENERGY AND INFRASTRUCTURE LIMITED

Part “B” Associates and Joint Ventures Statement pursuant to Section 129(3) of The Companies Act, 2013 related to Associate Companies and Joint Ventures

Name of Associates / Joint Ventures	NIL
Latest audited Balance sheet Date	NA
Date on which associatee or Joint Venute was associated or acquired	NA
Shares of Associate / Joint Venture was associated or acquired	NA
No of shares	NA
Extent of Holding %	NA
Description of how there is significant influence	NA
Reason why the associate / joint venture is not consolidated	NA
Net worth attributable to shareholding as per latesst audited Balance Sheet	NA
Profit . Loss for the year	NA
- considered in consolidation	NA
- Not considered in consolidation	NA

1. Names of associates or joint ventures which are yet co commence operations.

2. Names of associates or joint ventures which have been liquidated or sold during the year.

Note: This Form is to be certified in the same manner in which the Balance Sheet is to be certified.