SRHHL Industries Ltd Merged Management Discussions

SRHHL INDUSTRIES LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Annexure C to Directors Report: (A) INDUSTRY STRUCTURE AND DEVELOPMENTS: The Companys main activity is generation of power through wind. Investments is another activity of the company. (B) OPPORTUNITIES AND THREATS: The generation of power through wind mainly depends on high velocity which is seasonal in nature. (C) PERFORMANCE OF THE COMPANY: The generation of power has been decreased to 79410 units against 436293 units in previous year due to low wind velocity. (D) OUT LOOK: Your Company wants to diversity its activities by entering into gas based projects. (E) RISKS AND CONCERNS: The investments in shares are market driven which are exposed to related risks. (F) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: The Company has a good system Of internal controls in all spheres of its activities. All the staff of the internal Audit Department are well trained in internal control procedures and well versed with computerised environment. In the opinion of the Board, an effective internal control system adequate to the size of the Company are in place. (G) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE: During the year 2010-11 Net profit before Tax is Rs.34.89 lakhs against Net profits before tax of Rs. 18.18 lakhs during the previous year. The Company provided Rs.5.37 lakhs towards current tax and deferred income tax. (H) MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT. During the year, the Company maintained harmonious and cordial Industrial relations. The Company is regularly conducting seminars and workshops. The Company is deputing employees for attending seminars for updating their skill and knowledge.