Sri KPR Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

As informed during earlier years there is no revenue from sale of A.C.Pressure Pipes except a mere Rs.49,710/-. There is also no Government Drinking Water Supply Schemes on hand except Operation & Maintenance of one scheme. The payment towards supply of Wind Power located in Andhra Pradesh are being received on regular basis, including its 100% subsidiary of M/s.Sri KPR Infra & Projects Ltd. Similarly, the payments of supply of wind power to Central Railways from M/s.Sri Pavan Energy Pvt. Ltd, a 100% subsidiary of M/s.Sri KPR Infra & Projects Ltd are also coming on regular basis.

In regard to collapse of 2 MW Wind Mill of Madhya Pradesh, as informed during earlier year & as informed from time to time to BSE, the company has now filed a petition in the Hoble High Court of Madras, Chennai with a prayer to appoint a nominee Arbitrator on behalf of O&M contractor (M/s.Siemens Gamesa Renewble Power Pvt. Ltd), since there was no response from O&M contractor against company notice.

OPPORTUNITIES

As informed earlier, and as approved by the shareholders vide postal ballot dated.30.6.2022, the company is in the process of development of factory land by making layout for the residential open plots by forming partnership/LLP/development agreement etc. with adjacent land owners which paves way for new source of revenue and at present the process for the same is under progress.

OUTLOOK, RISKS AND CONCERNS:

The outlook for the company, seems to be fair with small risks and concerns to be faced in real estate as faced by the industry in general.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal audit and control systems. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up, remedial measures are being taken including review and increase in the scope of coverage, if necessary. The Audit Committee of Directors, in its periodical meetings, reviews the adequacy of internal control systems and procedures and suggests areas of improvements.

Information technology base created by the Company over the period is providing a very useful helping hand in the process. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control systems.

FINANCIAL PERFOMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Standalone:

During the year under review, the total revenue has increased from Rs.4.97 Cr. to Rs.5.96 Cr. The net profit for year has been increased from Rs.0.89 Cr. to Rs.1.72 Cr. The earning per share for the year is Rs. 0.85/- as against Rs.0.44/- of the previous year EPS.

Consolidated:

Under the consolidated balance sheet during the year, the total revenue has increased from Rs.16.15 Cr. to Rs.20.99 Cr. Similarly, the net profit has increased from Rs.3.29 Cr. to Rs.7.87 Cr. The earning per share is Rs. 3.91/- as against Rs.1.63/- of the previous year EPS.

HUMAN RESOURCE DEVELOPMENT

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. In order to focus on keeping employees abreast of technological and technical developments.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statements. Important factors that would influence the Companys operations include cost of raw materials, tax laws, procedural hurdles of Government Agencies, delay in release of wind Electric payments economic developments and such other factors within the Country.