Surana Telecom and Power Ltd Management Discussions

Surana Telecom and Power Limited was incorporated as a Private Limited Company on 14.08.1989 as Surana Petro Products Private Limited and was engaged in the business of manufacturing of Petro Products such as Petroleum Jelly and Telecom products such as Jointing Kits. Thereafter, the Company was converted into a Public Limited Company on 09.07.1993. In 1994, the Company ventured into the Telecom sector with the production of Optic Fibre Cables and consequently, name of the Company was changed to Surana Telecom Limited on 05.08.1994. In 2007 the Company diversified into the power sector with the manufacturing of low tension and high-tension power cables and setting up of 1.25 MW wind power generation facility. In order to reflect the diversity, the name of the Company was again changed to "Surana Telecom and Power Limited" on 11.10.2007. In 2008, taking cue from the increasing recognition for non-conventional energy and anticipating demand primarily in the field of Solar Photovoltaic cells, the company ventured into manufacturing of Solar Modules and other Solar photovoltaic products.

During the year 2009-2010, a Scheme of arrangement was entered by the Company with M/s Surana Ventures Limited which was sanctioned by Honble High Court of Andhra Pradesh on 28.06.2010 and became effective from 28.07.2010, pursuant to which the "Solar Undertaking" was merged with M/s Surana Ventures Limited (the name has been changed to Surana Solar Ltd). The Company is into the business of generation of solar energy. In the year 2011-12, the Company had set up 5 MW Solar Power Project in Gujarat, with this it has successfully ventured into Solar Power Generation. Currently, the total installed capacity is 25 MW owned by the Company and its subsidiaries in the states of Gujarat, Uttar Pradesh and Telangana.

In the current year, the Company has actively participated in solar tenders under Component C of the PM-KUSUM Scheme, reinforcing its commitment to promoting decentralised solar energy solutions for the agricultural sector. Additionally, as part of its strategic diversification initiatives, the Company is exploring opportunities in the rapidly growing Battery Energy Storage Systems (BESS) sector, aligning with the future demands of sustainable energy and grid reliability

A) INDUSTRY STRUCTURE AND DEVELOPMENTS:

SOLAR ENERGY:

In 2025, the global solar energy sector continues its exceptional growth trajectory, adding over 585 GW of renewable capacity in the previous year—over 80% of which came from solar PV. Solar now contributes more than 8% of global electricity generation, surpassing nuclear output in several regions and emerging as a core pillar of the global energy mix. While strong momentum aligns with the global pledge to triple renewable capacity by 2030, emerging challenges like policy uncertainty, infrastructure bottlenecks, and market saturation in mature economies have opened up fresh opportunities in newer, faster-growing markets.

India stands out as one of the most dynamic among these markets. Having surpassed 100 GW of installed solar capacity in early 2025, the country is rapidly scaling its renewable infrastructure with support from government initiatives like the PLI scheme and the PM Surya Ghar Yojana. In FY 2025 alone, India added nearly 24 GW of solar capacity—a 58% increase year-over-year—driven by utility-scale, rooftop, and off-grid segments. With projections of 40-45 GW annual additions by FY 2027, India offers a rare combination of scale, policy support, and unmet demand, positioning it as a key growth engine in the global solar landscape.

B) OPPORTUNITIES AND THREATS:

The solar industry in India faces several significant challenges. Continued reliance on imported raw materials, particularly from China, exposes the sector to supply chain disruptions and price volatility. Additionally, infrastructure constraints and regulatory delays have resulted in numerous stranded renewable projects, slowing capacity growth. Financial barriers, including high initial investment costs and the lack of a robust solar panel recycling policy, further threaten the industrys sustainable development.

Despite these hurdles, the industry is poised for strong growth, driven by proactive government initiatives such as the Production-Linked Incentive (PLI) Scheme and widespread promotion of rooftop solar installations. Technological advancements, including more efficient solar panels and integrated energy storage solutions, are improving affordability and system reliability. Moreover, Indias growing presence in the global solar supply chain and increasing solar module exports position the country as an emerging international leader, offering significant opportunities for investment and innovation.

C) SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

During the year under review, the Company has recorded a total income of Rs. 4418.57 Lakhs and made a net profit of Rs. 2,453.94 Lakhs against total income of Rs. 2382.74 Lakhs and net profit of Rs. 742.38 Lakhs in the previous financial year 2023-24.

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

Renewable Energy(Solar & Wind)	59.71%
Trading & Others	40.29%

D) BUSINESS OUTLOOK:

Solar power in India at current levels is cheaper than electricity generated through coal, natural gas or other fossil fuel options. Support from various central and states government for solar power industry is continuously increasing. The Government of India has set an ambitious target of achieving 500 GW of renewable energy capacity by 2030 which includes 280 GW of solar power. With this the market players in India now have enough incentive to move to clean sources of energy. In view of the huge demand for solar power and company having considerable resources in this line of activity, the Company expects to get benefits from the proposed huge installation of solar power capacity.

E) RISKS AND CONCERNS:

Your company being in the business of generation of solar energy have risks with land acquisition, tariff bidding, government policies etc. 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 SYSTEM AND ITS 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. Periodic reports of Internal Auditors are reviewed in the meeting of the Audit Committee of the Board. 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) FINANCIAL PERFORMANCE & OPERATIONAL PERFORMANCE:

A. FINANCIAL PERFORMANCE:

Capital Structure:

The Equity Share Capital of the Company as on 31^st March 2025 is Rs.1357.59 lacs comprising of 13,57,59,963 Equity Shares of Re. 1 each fully paid.

Other Equity:

The Other Equity of the Company for the current year is Rs.14092.52 lacs and in the previous year was Rs. 11793.53 lacs

Property, Plant and Equipment:

During the year, the Company has SOLD Property, Plant and Equipment amounting to Rs. 3122.24 lacs as against Rs. 648.25 lacs in the previous year. The total net block of assets as on 31.03.2025 is Rs. 1983.87 lacs as against Rs. 3358.44 lacs in the previous year.

Inventories:

Inventories, as on 31^st March, 2025, is Nil , as against Rs. 82.16 lacs in previous year.

Trade Receivables:

Trade Receivables amounting to Rs.88.54 lacs as on 31^st March, 2025 and Rs. 123.07 lacs in the previous year. Cash and Cash Equivalents

Cash and Cash Equivalents, as on 31^st March, 2025, amounting to Rs.233.50 lacs as against Rs. 0.11 lacs

Bank balances other than cash

Bank balances with Scheduled Banks, as on 31^st March, 2024, amounting to Rs. 121.70 lacs as against Rs. 63.63 lacs.

Loans (Noncurrent):

Loans and Advances amounting to Rs.7982.16 lacs as on 31^st March, 2025, as against Rs. 5490.79 lacs in the previous year.

Other Current Assets:

Short Term Loans and Advances amounting to Rs.135.54 lacs as on 31^st March, 2025, as against Rs. 31.92 lacs in the previous year.

Current Liabilities:

Current Liabilities amounting to Rs.250.34 lacs as on 31^st March, 2025, as against Rs. 150.44 lacs in the previous year.

B. OPERATIONAL PERFORMANCE:

Turnover:

During the year 2024-25, the Net turnover of the Company was Rs.821.63 lacs and Rs. 1509.63 lacs in the previous year.

Other Income as on 31^st March, 2025 is Rs. 3596.94 lacs as against Rs. 873.11 lacs in the previous year. Depreciation and Amortization:

The Company has incurred a sum of Rs.398.99 lacs towards depreciation and amortization for the year and Rs. 444.82 lacs in the previous year.

Net Profit:

The Net Profit of the Company after tax is Rs.2,453.94 lacs and Rs 742.38 lacs in the previous year.

Earnings per Share:

Basic Earnings per Share for the year ended 31.03.2025 is Rs. 1.81 for Face Value of Rs.1 and Rs0.55 per share for the year ended 31.03.2024.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Ratios	2025	2024	Change (in %)
Current Ratio	10.54	6.39	65.10
Debt Equity Ratio	0.06	0.05	17.62
Debt Service Coverage Ratio	45.42	1.64	2669.47
Return on Equity Ratio	15.88	5.64	181.37
Inventory Turnover (no. of days)	0	20	(100)
Debtors Turnover (no. of days)	39	29	35.62
Net Capital Turnover Ratio	0.34	1.76	(80.84)
Net Profit Margin	298.67	49.18	507.34
Return on Capital Employed	20.78	10.50	97.97

Notes:

1. Current Ratio: Change in the Current ratio is due to increase in the Current Assets and Current Liabilities.

2. Debt Service Coverage Ratio: Change in Debt Service Coverage ratio is due to increase in net profit before tax and decrease in principal repayment of loan.

3. Return on Equity: Increase in Return on Equity is due to increase in Profit after tax.

4. Inventory Turnover: Inventory turnover is zero due to no inventory in current Financial Year.

5. Debtor Turnover: Change in Trade Receivables ratio is due to decrease in sales.

6. Net Capital Turnover Ratio: The decrease in Net capital turnover ratio is due to increase in sales and working capital.

7. Net Profit: Increase in Net profit margin is due to increase in Profit After Tax and sales.

8. Return on capital employed: Increase in Return on Capital employed is due to increase in EBIT & borrowings.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS:

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

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 incidental factors.

	For and on behalf of the Board of Directors
	MANGILAL NARENDER SURANA	ADVAIT SURANA
Place: Secunderabad	MANAGING DIRECTOR	DIRECTOR
Date:03.09.2025	DIN: 00075086	DIN: 08971109