Riddhi Siddhi Gluco Biols Ltd Management Discussions.


India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next few years backed by its robust democracy and strong partnerships. The growth in Indias GDP during 2019-20 is estimated at 4.2 percent as compared to 6.1 percent in 2018-19. With an improvement in the economic scenario, there have been investments across various sectors of the economy. The union budget presented in Parliament aimed at energizing the Indian economy through a combination of short-term, medium-term, and long-term measures. Numerous foreign companies are setting up their facilities in India on account of various Government initiatives. Make in India initiative was launched with an aim to boost countrys manufacturing sector and increase purchasing power of an average Indian consumer. Government has also come up with Digital India initiative, which focusesonthreecorecomponents:creationinfrastructure, delivering services digitally of and to increase the digital literacy.

Road Ahead Indias GDP is expected to reach US$ 5 trillion by F.Y. 2025 and achieve upper-middle income status on the back of digitization, globalization, favorable demographics, and reforms. India is also focusing on renewable sources to generate energy. It is planning to achieve 40 per cent of its energy from non-fossil sources by 2030, which is currently 30 per cent, and have plans to increase its renewable energy capacity from to 175 GW by 2022. However Due the global COVID-19 pandemic and consequent nationwide lockdown measures implemented since March, 2020, there has been significant disturbance and slowdown of economic activity.

Industry Structure and developments:

Indias wind energy sector is led by indigenous wind power industry and has shown consistent progress. The expansion of the wind industry has resulted in a strong ecosystem, project operation capabilities and manufacturing base of about 10,000 MW per accounts for 10% of the overall installed power capacity in India and 43% of renewable energy capacity in the country. Wind power generation capacity in India has significantly increased in recent years. The country currently has wind installed capacity of approx. 37.69 GW on 31.03.2020 and has generated around 64.48 Million Units during 2019-20. [source: cea.nic.in] The increasing demand for energy in India, can no longer be met through traditional energy sources alone. Renewable energy must be a major part of the solution because it can meet the demand in a cost effective and sustainable manner. With policy stability, availability of land and grid infrastructure and timely payments by utilities, Governments target of achieving 60 GW of installed wind power capacity by

December 2022.

Opportunities and Threats:



1. Technology improvements

2. Fastest Growing Segment of renewable energy resources

3. Unlimited Resources Available

4. Government Policies

Risk, Concerns and Threats

1. Variable Wind speed

2. Uncertainty of monsoon

3. Availability of grid from State Electricity Board during wind season

4. High Investment and Operating Costs

5. Prolonged Impact of COVID-19

Segment-wise Performance:

At the end of F.Y. 2019-20 the total capacity of wind mills stood at 33.15 MW located in Tamil Nadu (28.50 MW), Maharashtra (3.00 MW) and Gujarat (1.65 MW). Energy generated from the wind mills were sold to the respective state level distribution companies. There is no change in the capacity during the year under consideration. Total energy generated during the year under review was 34.44 million units as against 41.03 million units in the previous year yielding revenue of Rs. 1110.18 Lakhs against Rs. 1387.66 Lakhs in the previous year. There was reduction in generation of electricity through wind mills mainly on account of lower wind speed and non-operation of wind mill of 3.75 MW during major part of the year. However, performance of trading in Agricultural Commodities is based on monsoon season of the country.


Over the years, India has successfully created a positive outlook to promote investment in, demand for and supply of renewable energy includes wind energy. In view of same Government is committed to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. The Ministry of New and Renewable Energy (MNRE) targets for achieving 175 GW renewable energy capacity by 2022, out of which 60 GW for wind energy.

Internal control systems and their adequacy:

The Company and the Management has established adequate Internal Control systems to ensure reliable financial reporting. The Companys internal control procedures commensurate with the size and nature of business. Detailed procedural manuals are in place to ensure that all the assets are safeguarded, protected against loss and all transactions are authorized, recorded and reported correctly. The Company always adheres to set guidelines and follows all Accounting Standards prescribed for maintenance of books of accounts and reporting of financial statements. The internal control systems of the Company are monitored and evaluated by internal auditors and their audit reports are periodically reviewed by the Audit Committee of the Board of Directors.

Discussion on financial performance with respect to operational performance:

During the financial year 2019-20, the revenue from operation of the Company has decreased from Rs. 15144.03 Lakhs to Rs. 7440.94 Lakhs. Though, there is a decrease in total revenue of the Company, the net profit of the Company has increased from Rs.4452.71 lakhs to Rs.6911.23 lakhs. The Board is hopeful to get even better result in the next year.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

The Company recognizes human capital as strategic resource and believes empowerment of employees across the organization in order to achieve organizationaleffectiveness. There have been no material developments/significant changes in Human Resource during the year under review. The companys industrial relations remained cordial during the year. Your Directors acknowledge the support and cooperation from employees at all levels. As on 31.03.2020 there are 15 employees on the records of the Company.

Details of any change in return on net worth and key financial ratio as compared to the immediately previous financial year along with a detailed explanation thereof:

During the year under review the major income of the Company was from trading and investment activity which is fluctuating in nature and therefore is not comparable with figures of previous reporting period.

Cautionary Statement:

The statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, or predictions may be "forward looking statements" within the meaning of applicable laws or regulations. These statements expectations are based on certain assumptions and expectationsof future events. Actual results could differ materially from those expressed or implied.