Shree Krishna Infrastructure Ltd Management Discussions

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Jul 25, 2024|03:40:00 PM

Shree Krishna Infrastructure Ltd Share Price Management Discussions

Shree Krishna Infrastructure Ltd firmly believes that good Corporate Governance results in regulation of the affairs of your Company in a most transparent, ethical and accountable manner. Adherence to Corporate Governance ensures greater level of transparency and accountability, fairness in operations, full disclosure, integrity and compliance of laws.

The Company follows all the rules and regulations of the exchange and regulatory.

Business continuity plans: The Company activated business continuity plans to respond effectively to the constantly evolving situation. Response plans were developed and continually monitored to protect the health and long-term sustainability of the company.

GLOBAL ECONOMIC OVERVIEW

Our latest forecasts indicate a sharp, long-lasting slowdown, with global growth declining to 1.7 percent in 2023 from 3.0 percent expected just six months ago. Investment growth in emerging market and developing economies is predicted to remain below its average rate of the past two decades. Any additional adverse shocks could push the global economy into recession. Small states are especially vulnerable to such shocks because of their reliance on external trade and financing, limited diversification, elevated debt, and susceptibility to natural disasters. Immediate policy action is needed to bolster growth and investment, including redirecting existing spending, such as agricultural and fuel subsidies.

The deterioration is broad-based: in virtually all regions of the world. Median income levels, moreover, are being eroded significantly—by inflation, currency depreciation and under-investment in people and the private sector. This leaves no room for fiscal support at a time when people are still suffering from COVID-related setbacks in health, education and nutrition. The output decline during the pandemic. Recoveries are expected to be weak, with large and persistent reductions in the level of output.

INDIA ECONOMY:

Indias economy grew faster during the first half of FY2022-23 than other economies, driven by strong demand and investment. Inflationary pressures have been moderating since October, with CPI inflation tempering to an eleven-month low in November. As we head into 2023, global economic developments are expected to complicate the outlook further, and therefore continued vigilance is a critical aspect in maintaining Indias external resilience. Going forward, India needs to focus on medium-term challenges such as securing technology and resources for energy transition. With continuous efforts during the last several years, a strong platform has been erected on which the superstructure of a middle-income economy can be constructed.

India has identified several points which shall be prioritized for its G20 presidency, these include inclusive, equitable, and sustainable growth; LiFE (lifestyle for the environment); womens empowerment; digital public infrastructure and tech-enabled development in health, agriculture, education, commerce, skill-mapping, and culture and tourism; climate financing; circular economy; global food security; energy security; green hydrogen; disaster risk reduction and resilience; developmental cooperation; fight against economic crimes; and multilateral reforms.

The government ramped up public investment in infrastructure to prepare the ground for the private sector to invest, hire and prosper. It records the wide-ranging structural reforms and governance improvements that the government has undertaken since 2014. Bank credit to industry has picked up momentum, particularly for micro, small and medium enterprises. Among other things, the pandemic had caused a shift in the attitude towards supply chains from efficiency to security and from ‘just in timeto ‘just in case. Supply chains are being reconfigured.

Finally, the growth and evolution of Indias public digital infrastructure is a story not just of numbers and milestones but also of thoughtful regulatory and innovation architecture that have enabled it to retain its public good character with enough incentives for the private sector to innovate and invest. Infrastructure in between the period of 2019-23 to promote sustainable development in the country. This depicts the upward trajectory of the Indian infrastructure space which is on the rise. Also, with Covid-19 restrictions been removed, the infrastructure work has progressed, The economy boost is only possible with the infra development at the forefront.

India witnessed a substantial spike in demand for electronic products in the last few years; The Indian electronics system design and manufacturing sector is one of the fastest growing sectors in the economy and is witnessing a strong expansion. EV one-stop solution to many problems in India.

FUTURE OUTLOOK

Electric Vehicles are a boon to India in the sense of Economy development and Environment Concerns. Moreover, in the upcoming generations, Company will be moving forward to overpower the Electric Vehicles.

We also expect a positive impact on the economy, including the real estate sector. Even though there were limited announcements for the real estate sector, there are likely to be indirect benefits.

OPPORTUNITIES AND THREATS

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. In order to meet Indias aim of reaching a US$ 5 trillion economy by 2025, infrastructure development is the need of the hour. The government has given a massive push to the infrastructure sector by allocating Rs. 10 lakh crore) to enhance the infrastructure sector. India being a developing nation is set to take full advantage of the opportunity for the expansion of the infrastructure sector, and it is reasonable to conclude that Indias infrastructure has a bright future ahead of it.

Electric Vehicles are growing rapidly as they play a central role in the ambitious objective of zero emission targets set by nations around the world. EV sales have been growing steadily over the past few years. The segment started to see a wide range of offerings from the manufacturers like more affordable models, various choices across different brands and in different segments, enabling rise in sales. The prospect of EV adoption is getting brighter, driven by a combination of factors of policy support, improvements in battery technologies, more charging infrastructure being built, and rising commitments from automakers. Major Government initiatives such as ‘Digital India, ‘Make in India and supportive policies including favorable FDI Policy for electronics manufacturing have simplified the process of setting up manufacturing units in India.

Key Initiatives:

The company has decided to launch the platform for the purchase and sale of Second Hand EV Vehicles in the upcoming year and soon will get tie up with multiple manufacturers in order to run OEM products in the state of Gujarat, Rajasthan, Uttar Pradesh, Delhi & Maharashtra in the next year.

Challenges, Risk, Concern

Risks and threats can be forerunners to crisis situations for companies and organizations. The biggest and most obvious threat to companies and organizations in 2023 is the global rise of inflation and subsequent economic downturn. While profiting during a period of high inflation isnt completely impossible. Though, the Indian automotive market has been impacted by the outbreak of the COVID-19 pandemic due to supply chain disruptions and halt of manufacturing units due to continuous lockdowns and travel restrictions across the country coupled with the financial crunch faced by consumers.

EV start-ups working extensively on electric vehicles. However, this increase still amounts to less than 1 percent of the sales. Hence the potential for growth remains immense. But then, the companies and the industry have to overcome some obstacles to capitalize on the market entirely. The EV customers are often worried about the vehicles capability to reach the destination before the battery dies out and the absence of charging infrastructure. The EV industrys biggest challenge is vehicle purchase cost and EV maintenance is one of the major causes of this challenge. Battery issues, climate control, and in-car electronics are among the biggest problems in electric vehicles

INTERNAL CONTROL

The Company has an adequate internal control system commensurate with its size and the nature of its business in order to achieve efficiency in operation and optimum utilization of resources. The Companys internal control systems comprises policies and procedures designed to ensure sound management of its operations, safekeeping of its assets, optimal utilisation of resources, reliability of its financial information, and compliance. Internal audits are conducted in the Company on regular basis.

HUMAN RESOURCE/INDUSTRIAL RELATIONS:

Human resources are the Companys most valuable asset. The Company invests in its employees through education and training programmes, with an emphasis on improving production quality and level. The Company has always prioritised individual and team development. With regards to human resources, the business key focus is on creating ambitious prospects for personal and professional progress through training and ample career advancement assignments. The Management and the employees are dedicated to achieve the corporate objectives.

CAUTIONARY STATEMENT

This report may contain certain forward looking remarks within the meaning of applicable Securities Law and Regulations. Many factors could cause the Companys actual results, performances, or achievements to be materially different from any future results, performances, or achievements. Significant factors that could make a difference to the Companys operations include domestic and international economic conditions, changes in Government regulations, tax regimes and other statutes.

Disclaimer: All the data used in the initial sections of this report has been taken from publicly available resources and discrepancies, if, any, are incidental and unintentional.

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