The Management Discussion Analysis ("MDA") highlights the developments, opportunities, threats and performance of the Company vis-a-vis overall industry, in which your company functions. Various factors which has the direct or indirect impact on your companys operations are also being discussed in this report along with the Inter Control Systems and their Adequacy, Key financial aspects and the Overall Risks and Concerns during the financial year and till the date of this report.
GLOBAL ECONOMY
The Global Economy has been under the impact of various conflicts across the world. Such ongoing conflicts between the countries have severely impacted the global economy, as it has led to have higher prices and rising inflation. This has also impacted energy and food security. Geopolitical tensions, have reshaped global trade. Geopolitical risks and policy uncertainty, especially around trade policies, have also contributed to increased volatility in global financial markets.
As per Economic Survey 2024-25 issued by Department of Economic Survey, Ministry of Finance has stated that the global economy grew by 3.30% in 2023. The International Monetary Fund (IMF) has projected growth of 3.20% and 3.30% for 2024 and 2025, respectively. Over the next five years, global growth is expected to average around 3.20%, which is modest by historical standards. While the overall global outlook remains steady, growth varies across different regions.
INDIAN ECONOMY
The Indian GDP (at constant price) grew by 6.5% in 2024-25, at present India has become the worlds fourth largest economy, with an aim to become third by 2030 with projected GDP of $7.3 trillion. Overall in the past 10 years Indias GDP grew threefold from approx. Rs. 107 Lakh Crore to Rs. 331 Lakh Crore. The exports by India during this period have grown by 76% reaching to USD 825 billion in 2024-25. India is projected to be worlds fastest growing major economy (6.3% to 6.8% in 2025-26). As reported by the Press information Bureau in its report dated 16.06.2025.
FORWARD-LOOKING STATEMENT
The forward-looking statements which may be identified by their use of words like ‘plans, ‘anticipate, ‘believe, ‘estimate, ‘expect, ‘intend, ‘will, ‘projects or other words of similar expressions as they relate to the Company or its business are intended to identify such forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to statements about the Companys strategy for growth, development, market position, expenditures, and financial results are forward looking statements. These are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company undertakes no obligations to publicly update or revise forward looking statements, whether as a result of new information, future event or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such statements. Therefore, as a matter of caution, undue reliance on the forward-looking statements should not be made as they speak only of their dates. The above discussion and analysis should be read in conjunction with the Companys financial statements included herein and the notes thereto.
Unless otherwise specified or the context otherwise requires, all references herein to "we", "us", "our", "the Company", or "SRM Energy" are to SRM Energy Limited and/or its subsidiary company.
COMPANYS CURRENT BUSINESS POSITION AND INDIAN POWER SECTOR OUTLOOK.
Your Company has not conducted any business during the year of reporting, i.e., 2024-25. The proposed power project (in the wholly owned subsodiary), could not be implemented due to various reasons, which inter-alia included changed government policies, economic and industry scenario etc. Your Company had already discussed about such factors at the multiple times in the past.
However the power sector in India has made significant progress. The country is successfully balancing the twin goals of meeting rising electricity demand and promoting sustainability. According to the International Energy Agency (IEA), 85% of the increase in global electricity demand over the next three years will come from emerging and developing economies. The Countrys energy demand is expected to grow at the fastest rate among major economies, driven by sustained economic growth. Consequently, Indias share in global primary energy consumption is projected to double by 2035.
India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 484.82 GW as of June 30, 2025, the detailed capacity in various sectors are as under:
Sector |
Capacity (in GW) | Percentage |
Thermal |
242.04 GW | 49.92% |
Non-Fossil Fuels (Renewable Energy, Large Hydro, Nuclear) |
242.78 GW | 50.08% |
Total |
484.82 GW | 100% |
India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity capacity from non-fossil fuel sources - five years ahead of the target set under its Nationally Determined Contributions (NDCs) to the Paris Agreement. This significant milestone underscores the countrys steadfast commitment to climate action and sustainable development, and signals that Indias clean energy transition is not only real but also accelerating.
(Source: Report of Ministry of New and Renewable Energy, posted by Press Information Bureau on 14.07.2025)
INDUSTRY STRUCTURE AND DEVELOPMENTS
Indias Power Sector is one of the most diversified in the world, comprising generation from conventional sources such as coal, lignite, gas, hydro and nuclear, as well as non-conventional sources like wind, solar, biomass and small hydro.
The sector is structured around three key segments: Generation, Transmission and Distribution. While generation has seen significant private participation, transmission is dominated by government-owned entities such as Power Grid Corporation of India Limited (PGCIL). The distribution segment, largely under the control of state utilities (DISCOMs), is undergoing gradual reforms aimed at improving financial viability and operational efficiency.
The industry has witnessed significant developments in recent years:
1) Electricity generation has increased from 1,168 billion units (BU) in 2015–16 to an estimated 1,824 BU in 2024–25.
2) India achieved 100% village electrification by April 2018 and has since connected more than 2.8 crore households to the grid.
3) Over the past eleven years, India has made remarkable progress in the renewable energy sector. In line with the commitment made at COP26, the Ministry of New & Renewable Energy (MNRE) is working tirelessly to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030.
4) As per IRENA RE Statistics 2025, India ranks 4th globally in Renewable Energy Installed Capacity, 4th in Wind Power, and 3rd in Solar Power capacity.
5) Renewable energy generation rose from 190.96 BU in 2014–15 to 370.65 BU in 2024–25 (till February, 2025), with its share in overall power generation increasing from 17.20% to around 22.20%.
(Source: Report on Indias Energy Landscape published by PIB Government of India.)
Generation:
Indias power generation sources are incredibly varied. The electricity generation basket for Indias ranges from conventional sources such as coal, lignite, diesel, natural gas, hydro and nuclear to alternative sources like wind, solar, biomass and waste-to-energy. With the rapid increase in demand for electricity, there has been a substantial surge in capacity expansion to meet the countrys needs.
The electricity generation has been 1829.70 BU (including Renewable Energy) in the year of reporting, i.e., 2024-25 however it is targeted to achieve 2000.40 BU (growth of 9.32%) for the year 2025-26. Such electricity generation target for the year 2025-26 was fixed at 2000.4 BU comprising of 1503.26 BU Thermal; 155.67 BU Hydro; 56.59 BU Nuclear; 9.47 BU Import from Bhutan and 275 BU RES (Excl. Large Hydro).
(Source: "Power Sector at a Glance" as available on the website of Ministry of Power)
Transmission:
The transmission system has expanded over the years for evacuation of power from generating stations to load centre through Intra State and Inter State Transmission System. The progressive integration of regional grids, our country achieved ONE NATION - ONE GRID - ONE FREQUENCY with synchronous interconnection of Southern Region Grid with rest of the Indian Grid with the commissioning of 765kV Raichur-Solapur Transmission line.
Countrys Transmission Network consist of about 4,94,732 ckm of transmission lines and 13,50,953 MVA of transformation capacity as on 30.04.2025. Besides, our inter-regional capacity has increased by whopping 230% to 1,18,740 MW since 2014.
(Source: Information available on the website of Ministry of Power)
Distribution:
Distribution is the most important link in the entire power sector value chain. As the only interface between utilities and consumers, it is the cash register for the entire sector. Under the Indian Constitution, power is a concurrent subject and the responsibility for distribution and supply of power to rural and urban consumers rests with the states. Government of India provides assistance to states through various Central Sector / Centrally Sponsored Schemes for improving the distribution sector.
The Central Government has approved a Revamped Distribution Sector Scheme- a Reforms-based and Results-linked Scheme with an outlay of Rs.3,03,758 crore over a period of five years from FY 2021-22 to FY 2025-26 with the objective to improve the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.
(Source: Information available on the website of Ministry of Power)
OPERATIONAL PERFORMANCE AND PROJECT AT CUDDALORE
Your Company has not been in operations for a considerable period, and the proposed power project of 1980 MW (3x660 MW) in Tamil Nadu has remained in an abandoned state. This fact has been regularly disclosed and updated by the Company from time to time. Furthermore, the losses of the Company have increased significantly over the years, leading to a complete erosion of its net worth.
As reported earlier, the land related to the power project as acquired earlier, has been completely sold by the wholly owned subsidiary to utilise the funds to meet the expenses relating to the statutory, administrative, other day to day requirements and also to settle its existing liabilities and the liabilities of our company.
In this scenario, your company is focusing solely on maintaining compliance in every way.
HUMAN RESOURCES
There has been only two person who are KMPs and are required to be employed as per the law. However your Company always believed in creating an environment of learning and development, promoting internal talent and developing across functional expertise.
INTERNAL CONTROL SYSTEMS
The Internal Control Systems of the company are appropriate for the size, complexity and type of business it operates in. Through periodic evaluation, the Board and Audit Committee ensures that internal controls are adequate and effective by routinely assessing its performance and quality.
RISKS AND CONCERNS
Every business has its inherent risks and it is required to possess a proactive approach to identify and mitigate them. Your Company has embedded an efficient organizational risk management framework, which regularly scans all possible internal and external environments to identify risks and decide on possible mitigation plans.
CAUTIONARY STATEMENT
Certain statements in the Management Discussion and Analysis may be forward-looking. Actual outcomes may vary from those expressed or implied. The Company assumes no responsibility to publicly amend, modify, update or revise any such statements on the basis of subsequent developments, information or events.
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