Surana Solar Ltd Management Discussions

Surana Solar Limited (formerly Surana Ventures Limited), the flagship of the Surana Group, was incorporated in November 2006 and began operations in the solar energy sector by 2008 with its entry into solar PV module manufacturing. Following a Scheme of Arrangement, the "Solar Undertaking" of Surana Telecom and Power Limited was integrated into the company. It made its stock market debut on January 7, 2011

Today, Surana Solar stands out as one of Indias most promising mid-cap solar companies, propelled by a steadfast commitment to customer satisfaction and stable operational growth. The company operates two ISO 9001:2008 certified manufacturing facilities at Cherlapally and FAB City in Hyderabad and endorsed by AQA International LLC, Dubai, and its products carry approvals from reputable agencies including EURO TEST Laboratories and TUV INTER CERT.

With proven expertise in engineering, procurement, and construction (EPC), the company is well-equipped to deliver turnkey solar power solutions for large-scale commercial and utility projects.

A) INDUSTRY STRUCTURE AND DEVELOPMENTS:

Solar Photovoltaic (PV): Indias rooftop solar sector maintained strong momentum in 2024-25, driven largely by residential installations, which formed the bulk of recent capacity additions. Overall solar capacity also saw significant growth, supported by steady utility-scale projects. The project pipeline remains healthy, with SECI securing a major share of power sale agreements, although a portion of planned capacity is still pending due to regulatory and financial challenges. Module prices, though slightly eased, continue to remain elevated compared to last year, influenced by earlier supply constraints in China.

The Company has manufacturing units at Fabcity, SEZ, Hyderabad and Cherlapally, Hyderabad. The manufacturing unit at Cherlapally has installed capacity of 40 MW and the manufacturing unit at Fabcity has installed capacity of 180 MW for manufacture of ‘Solar Photovoltaic Modules" and TopCon Solar Cell Modules. The Companys products are sold under the brand ‘Surana Solar (formerly ‘Surana Ventures) in the domestic market. The Company is manufacturing / assembling the Solar Photovoltaic Modules and installation of rooftop solar for commercial establishments, domestic and industrial units.

B) OPPORTUNITIES AND THREATS:

Indias solar energy sector is witnessing unprecedented growth, driven by strong government support and progressive policy initiatives such as PM-KUSUM, the PLI Scheme, Solar Park Scheme, and Net Metering, all of which are designed to accelerate solar adoption. The nation has set ambitious renewable energy targets, aiming for 500 GW of non-fossil fuel capacity by 2030, with over 280 GW expected from solar alone.

Investment is further encouraged through various incentives, including tax exemptions, accelerated depreciation, and viability gap funding. The countrys rapidly growing energy demand—projected to double by 2040 alongside increasing industrialization and urbanization, fuels the need for decentralized solar systems. Additionally, the cost of solar technology has fallen by nearly 80% over the last decade, making it more affordable than traditional sources like coal or gas.

The governments push for domestic manufacturing through PLI schemes is reducing import dependence and strengthening local supply chains. In rural India, there is vast potential for off-grid applications, including solar water pumps, microgrids, and rooftop installations, which help bridge the energy access gap. The sector also benefits from rising green financing opportunities, such as green bonds, ESG funds, and concessional loans from both Indian banks and global institutions. Technological advancements such as high-efficiency modules like Topcon and HJT, along with energy storage systems and smart monitoring through AI are further enhancing system performance and making solar projects more viable and attractive.

C) SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

During the year under review, the Company has recorded revenue of Rs. 3998.10 Lakhs and made a net profit of Rs. 5.85 Lakhs against revenue of Rs. 1886.46 Lakhs and net loss of Rs. (125.89) Lakhs in the previous financial year 2023-24.

The following segment wise turnover in percentage wise during the financial year 31.03.2025:

Solar Energy	25.13 %
Renewable Energy	0.67 %
Trading	74.20 %

D) BUSINESS OUTLOOK:

At current levels, the cost of solar power in India is significantly lower than electricity generated from coal, natural gas, or other fossil fuels. This cost advantage, combined with increasing policy support from both central and state governments, has accelerated the adoption of solar technologies across residential, commercial, and utility-scale segments.

The Government of Indias ambitious renewable energy targets including 175 GW by 2024 and a longer-term goal of 500 GW of non-fossil fuel capacity by 2030 have created a favourable environment for sustained growth in the solar sector.

In this context, the Company, with its established presence in the solar Pv module manufacturing sector and proven capabilities in providing turnkey EPC solutions, remains well-positioned to capitalize on market growth. The Company continues to benefit from rising demand for solar installations, increased awareness of sustainable energy solutions, and the governments push for domestic manufacturing through schemes such as the PLI.

E) RISKS AND CONCERNS:

Your company being manufacturer of solar modules is having risks with fluctuations in import duties and low tariff rates and the government policies. The Company has sufficient risk management policies in place that act as an effective tool in minimising the various risks that the businesses are exposed to during the course of their day-to-day operations as well as in their strategic actions.

F) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate Internal Control Systems and Procedures with regard to purchase of Stores, Raw Materials including Components, Plant and Machinery, equipment, sale of goods and other assets. The company has clearly defined roles and responsibilities for all managerial positions and all operating parameters are monitored and controlled. The Company designs and maintains accounting and internal control systems to provide reasonable assurance at reasonable cost that assets are safeguarded against loss from unauthorized use or disposition, and that the financial records are reliable for preparing financial statements and maintaining accountability for assets.

The Company has an Internal Audit System commensurate with its size and nature of business. M/s Sekhar & Co., a firm of Chartered Accountants, are acting as Internal Auditors of the Company. Planned periodic reviews are carried out by Internal Audit. The findings of Internal Audit are reviewed by the top management and by the Audit Committee of the Board of Directors. Compliance with laws and regulations is also ensured and confirmed by the Internal Auditors of the Company. Standard operating procedures and guidelines are issued from time to time to support best practices for internal control.

G) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

i) FINANCIAL PERFORMANCE:

Capital Structure:

The Equity Share Capital of the Company as on 31^st March 2025 is Rs. 24,60,33,000 comprising of 4,92,06,600 Equity Shares of Rs. 5 each fully paid

Other Equity:

The Other Equity of the Company for the 31.03.2025 year is Rs. 3162.28 lakhs as compared to Rs. 3156.43 lakhs in the previous year.

Property, Plant and Equipment:

During the year, the Company has disposed-off wind power plant and assets amounting to Rs. 944 Lakhs making the gross fixed assets as on 31.03.2025 to Rs. 3621.23 Lakhs.

Inventories:

Inventories amounted to Rs. 1573.97 Lakhs as on 31^st March, 2025 and in the previous year was Rs. 1807.25 Lakhs

Trade Receivables:

Trade receivables amounted to Rs. 48.96 Lakhs as on 31^st March, 2025 as against Rs. 21.96 Lakhs in the previous year.

Cash and Bank Balances:

Cash and Bank balances with Scheduled Banks amounted to Rs. 78.15 Lakhs as on 31^st March, 2025 which includes amounts deposited with banks as Security and margin Money Deposit as against Rs. 28.98 lakhs in the previous year.

Financial Assets - Loans (Non-Current):

Loans amounted to Rs 1448.10 Lakhs as on 31^st March, 2025 as against Rs 986.60 Lakhs in the previous year.

Financial Assets -(Current):

The amount of Loans amounted as on 31^st March, 2025 is Rs 0.82 Lakhs as against Rs 3.47 lakhs in the previous year.

Other Current Assets:

Other Current Assets amounted to Rs. 1019.07 Lakhs as on 31^st March, 2025 as against Rs. 826.17 lakhs in the previous year.

Current Liabilities:

Current Liabilities amounted to Rs. 347.61 lakhs as on 31^st March, 2025 as against Rs. 233.60 lakhs in the previous year.

ii) OPERATIONAL PERFORMANCE:

Turnover:

During the year 2024-25 the turnover of the Company (Net of GST) is Rs. 3880.03 Lakhs and Rs. Rs. 1770.64 Lakhs in the previous year.

Other Income is Rs. 118.07 Lakhs as on 31^st March, 2025 and Rs. 115.82 Lakhs in the previous year.

Depreciation:

The Company has provided a sum of Rs. 152.65 Lakhs towards depreciation and amortisation for the year and Rs. 191.10 Lakhs in the previous year.

Net Profit/Loss:

The Net Profit of the Company after tax is Rs. 5.85 Lakhs and against loss of Rs. 125.89 lakhs for the previous year.

Earnings per Share:

Basic Earnings per Share for the year ended 31^st March, 2025 is Rs. (0.01) per share for Face Value of Rs.5 and Rs 0.26 per share for the previous year.

H) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

The Company believes that the quality of its employees is the key to its success in the long run and is committed to provide necessary human resource development and training opportunities to equip them with skills, which would enable them to adapt to contemporary technological advancements.

Industrial Relations during the year continues to be cordial and the Company is committed to maintain good industrial relations through negotiations, meetings etc.

I) DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Ratios	2025	2024	Change (%)	Notes
Current Ratio	9.64	14.98	(35.65)	Note (a)
Debt Equity Ratio	-			-
Interest Coverage Ratio	10.59	14.31	(26.74)	Note (b)
Return on Net Worth	0.00	0.02	(100)	Note (c)
Inventory Turnover Ratio	148 days	372 days	(60.20)	Note (d)
Debtors Turnover Ratio	4 days	4 days	4.93	Note (e)
Trade Payables Turnover Ratio	5 days	5 days		-
Net Capital Turnover Ratio	1.29	0.54		Note (f)
Net Profit Margin	0.00	(0.07)	138.26	Note (g)
Operating Profit Margin	0.03	(0.02)	(100)	Note (h)

Note:

a) Change in the ratio is due to Increase in Inventory and increase in temporary investment in Liquid Funds.

b) Change in ratio is due to decrease in finance cost and depreciation.

c) Change in the ratio is due to decrease in net profit

d) Change in the ratio is due to increase in inventory and decrease in sales.

e) Change in the ratio is due to decrease in sales

f) Change in the ratio is due to increase in working capital

g) Change in the ratio is due to decrease in net profit

h) Change in the ratio is due to decrease in capital employed

J) CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the Companys Objectives and Expectations may be "Forward-Looking Statements" within the meaning of applicable Securities Laws and Regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys Operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, technological obsolescence, changes in the Government Regulations and Policies, Tax Laws and other Statutes and other incidental factors.

For and on behalf of the Board of Directors SURANA SOLAR LIMITED
MANGILAL NARENDER SURANA	MANISH SURANA
DIRECTOR	DIRECTOR
DIN:00075086	DIN:00014373
Place: Secunderabad
Date: 03.09.2025