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 nonconventional 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 201112, 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 20 MW owned by the Company and its subsidiaries in the states of Gujarat,
Uttar Pradesh and Telangana.
A) INDUSTRY STRUCTURE AND DEVELOPMENTS:
SOLAR ENERGY:
India has made tremendous progress in renewable energy adoption over the past few
years, particularly in solar energy sector. Indias Solar energy capacity has grown from
6.76 GW in 2016 to an impressive 70 GW as on June 2023. This significant growth
demonstrates Indias commitment to clean energy. The impressive solar energy growth can be
attributed to several factors including Government policies and incentives, decreasing
cost of Solar Power technology and increased public awareness. The Government has set up
an ambitious target of having 280 GW of Solar Power by 2030.
B) OPPORTUNITIES AND THREATS:
India has tremendous potential in renewable energy. As part of Paris Climate Agreement,
India has committed to achieve forty percent of its installed electricity capacity from
non-fossil fuels by 2030. For achieving this goal, India has set an ambitious target of
175 GW of installed renewable energy (RE) capacity, including 100 GW of solar power, by
2023. India has also set a target of 450 GW installed RE capacity by 2030. As per the
Central Electricity Authoritys Optimum Energy Mix report, the electricity requirement of
the country by 2029-30 will be 817 GW, including the 450 GW from renewable energy sources,
out of which 280 GW would come from solar energy. To achieve the target of 280 GW, around
25 GW of solar energy capacity is needed to be installed every year, till 2030.
The Government is committed to increased use of clean energy sources and is already
undertaking various large- scale sustainable power projects and promoting green energy
heavily with a target to reduce the emissions intensity of GDP by 33% - 35% below the 2005
levels and increase share of non-fossil fuel in total capacity to 40% by 2030. The
governments goal of installing 175 GW of renewable energy, 100 GW of which is solar
capacity, by 2023 looks achievable with the right policies and participation of the
industry.
Indias solar sector is heavily reliant on imports of solar equipment. Certain
countries dumping solar cells and modules to kill the nascent domestic industry, because
of which Government had to impose Safeguard Duties. Considering Indias huge solar targets
and that electricity is a strategic sector of the economy, India needs to develop domestic
solar manufacturing capacities and reduce its dependence on imports to avoid disruption in
future, Government has announced to impose 40% Basic Customs Duty (BCD) on Solar Modules
and 25% BCD on Solar Cells from 1st April, 2023. The customs duty will replace a 15%
safeguard duty currently imposed on imports from China and Malaysia. Further, the
Government has announced Production- Linked Incentive (PLI) Scheme for Highly Efficiency
Solar PV Modules for Enhancing Indias Manufacturing Capabilities and Enhancing Exports
over a five-year period.
C) SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:
During the year under review, the Company has recorded revenue of Rs. 1710.93 Lakhs and
made a net profit of Rs. 736.79 Lakhs against revenue of Rs. 1770.04 Lakhs and net profit
of Rs. 487.41 Lakhs in the previous financial year 2021-22.
The following segment wise turnover in percentage wise during the financial year ended
31.03.2023:
| Renewable Energy (Solar & Wind) |
- 79.69% |
| Trading & Others |
- 20.31% |
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 31st March 2023 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. 10708.98 lacs and in the
previous year was Rs. 9831.70 lacs
Property, Plant and Equipment:
During the year, the Company has added Property, Plant and Equipment amounting to Rs.
346.53 lacs as against Rs. 122.35 lacs in the previous year. The total net block of assets
as on 31.03.2023 is Rs. 39627.20 lacs
Inventories:
Inventories, as on 31st March, 2023, amounted to Rs. 115.96 lacs as against Rs. 111.31
lacs in previous year.
Trade Receivables:
Trade Receivables amounting to Rs. 262.38 lacs as on 31st March, 2023 and Rs. 254.39
lacs in the previous year.
Cash and Cash Equivalents
Cash and Cash Equivalents with Scheduled Banks, as on 31st March, 2023, amounting to
Rs. 76.94 lacs as against Rs. 0.08 lacs
Bank balances other than cash
Bank balances with Scheduled Banks, as on 31st March, 2023, amounting to Rs. 60.80 lacs
as against Rs. 62.26 lacs.
Loans (Noncurrent):
Loans and Advances amounting to Rs. 4262.10 lacs as on 31st March, 2023, as against Rs.
4719.88 lacs in the previous year.
Other Current Assets:
Short Term Loans and Advances amounting to Rs. 33.69 lacs as on 31st March, 2023, as
against Rs. 46.54 lacs in the previous year.
Current Liabilities:
Current Liabilities amounting to Rs. 945.13 lacs as on 31st March, 2023, as against Rs.
769.62 lacs in the previous year.
B. OPERATIONAL PERFORMANCE:
Turnover:
During the year 2022-23, the Net turnover of the Company was Rs. 1710.93 lacs and Rs.
1770.04 lacs in the previous year.
Other Income as on 31st March, 2023 is Rs. 983.35 lacs as against Rs. 291.15 in the
previous year.
Depreciation and Amortization:
The Company has incurred a sum of Rs. 465.90 lacs towards depreciation and amortization
for the year and Rs. 482.66 lacs in the previous year.
Net Profit:
The Net Profit of the Company after tax is Rs. 736.79 lacs and Rs 487.41 lacs in the
previous year.
Earnings per Share:
Basic Earnings per Share for the year ended 31.03.2023 is Rs. 0.54 for Face Value of
Rs. 1 and Rs. 0.36 per share for the year ended 31.03.2022.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:
| Ratios |
2023 |
2022 |
Change (in %) |
| Current Ratio |
1.31 |
0.63 |
108.02 |
| Debt Equity Ratio |
0.10 |
0.17 |
(39.19) |
| Debt Service Coverage Ratio |
1.79 |
1.32 |
34.78 |
| Return on Equity Ratio |
6.11 |
4.36 |
40.17 |
| Inventory Turnover (no. of days) |
24 |
23 |
7.78 |
| Debtors Turnover (no. of days) |
55 |
51 |
6.99 |
| Creditors Turnover (no. of days) |
130 |
274 |
(52.71) |
| Net Capital Turnover Ratio |
1.56 |
4.39 |
(64.43) |
| Net Profit Ratio |
43.06 |
27.54 |
56.39 |
| Return on Capital Employed |
11.95 |
11.06 |
8.10 |
| Operating Profit Margin |
86.54 |
77.12 |
12.22 |
Notes:
1. Current Ratio: Change in the Current ratio is due to increase in the current
Assets on account of investment in Mutual Funds.
2. Debt Equity Ratio: Change in Debt Equity ratio is due to Prepayments of Long
Term borrowings.
3. Debt Service Coverage Ratio: Change in the Debt Service Coverage Ratio is due
decrease in long term liability and Net profit.
4. Return on Equity Ratio: Change in the Return on Equity Ratio is on account of
Increase in Net Profit.
5. Creditor Turnover: Change in Trade Payables ratio is due to increase in
purchases.
6. Net Capital Turnover Ratio: Change in Net Capital Turnover Ratio is due to
increase in Certain Assets.
7. Net Profit Ratio: Change in the Net Profit ratio is due to Increase in other
income and decrease in Finance cost.
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 |
|
| NARENDER SURANA |
DEVENDRA SURANA |
| MANAGING DIRECTOR |
DIRECTOR |
| DIN: 00075086 |
DIN: 00077296 |
| Place: Secunderabad |
|
| Date: 10.08.2023 |
|
+91-9892691696
