tarmat ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. Industry Structure and Development and Outlook

India is likely to be the worlds fastest growing big economy this year. The trial and transformation of Indias economy have an epic quality reminiscent of 19^th century America. In Financial year 2022-23,Indias real GDP expanded at an estimated 6.9%. Growth was underpinned by robust domestic demand, strong investment activities, bolstered by Govt.s push for investment in Infrastructure and buoyant private consumption.

"New vision, Govt. of India propose to come with 3^rd Industrial policy after 1956, 1991. The Industrial policy, which will replace 1991 policy seeks to achieve one nation, one standard, promote start-up in every district, create start-up innovation zone and also promote to create a universal id for micro, small and medium enterprises (MSME). The Govt. will step up spending to 39.5 trillion rupees in the coming fiscal year to build up public infrastructure and drive economic growth.

2. Opportunities and Threats

Tarmat has been the pioneers in airport runway works and air side works.

India has to enhance its infrastructure to reach its 2025 economic growth target of US$5 trillion. Indias population growth and economic development need improved transport. In June 22, Ministry of road and transport and highway opened 15 national highways projects worth Rs.13585 crores. Under Budget 2023-24, capital investment outlay for infrastructure is being increased to 33% to Rs.10 lakhs crores.

In Nov 22, National Investment and Infrastructure Fund (NIIF) is set up to collaborate investment platform.

The launch of a quadrilateral economic Forum by India, the USA, ISREAL and UAE in November 2021 has further added to the influx of infrastructure growth perspective.

However project implementation is not without threats. Land acquisition, project credibility, fund availability and high fund cost, lack of technology, human resources, digital divide, cyber concern are some of factors, which may affect the speed of project implementation.

Your Company has on-going projects in Mumbai airport, Chennai airport, Tuticorin and Jammu.

3. Internal Control

The Company has a proper and adequate system of internal controls covering all operational and financial functions commensurate with the size of the company. The companys internal control is designed in such a way that it ensures corporate strategy is implemented, achieve effective and efficient corporate processes, safeguard the value of corporate assets, reliability and integrity of accounting and management data, and operations comply with all existing rules and regulations. All the financial and audit control systems are also reviewed by the Audit Committee of the board of Directors of the company.

4. Operations

The Companys operations are continued in the areas of implementing projects in areas such as airport, roads, bridges, etc. In all the areas, the company continued its focus on cost reduction and cost control at all levels.

5. Human Resources and Industrial Relations

The company understands the value of acquiring the highly intellectual human capital which the company believes is a crucial asset of the company. For this purpose, company follows the strategy "to attract, to retain and to motivate" the personnel through providing the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. We have focused on to build positive attitude in the employees while working with Tarmat Limited. Tarmat Limited follows the principle-"good performance should be appreciated by good rewarding."

6. Risk and Concerns

Each sector has its own risk and concerns. Infrastructure projects are no exception to that. Common risks in the sector are land acquisition risk operating risk, completion risk, demand risk, cost overrun risk, unviable finance risk.

During the year, the Board has reviewed the process and the Risks that have already been identified for the business and necessary action for mitigation has been initiated. Infra sector is crumbling as project delays, cost.

Risks impacting the Companys overall governance are given below:

Liquidity risk, Interest rate risk, Credit risk, Commodity price risk, Market risk, Investment risk, Health, Safety And Environment Risks, Political, Legal And Regulatory Risks, Fraud and Cyber Security, Other Operational Risks, Counter Party Risks and Working capital challenges.

7. Details of significant changes in key financial ratios.

In accordance with the amended SEBI(Listing Obligation and Disclosure Requirements) Regulations,2015,the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof: The Company has identified following ratios as key financial ratios:

Particulars	FY 2022-23	FY2021-22	% Change	Reason for change of 25% or more as compared to the immediately previous financial year
Debtors Turnover	6.66	8.53	-21.92
Inventory Turnover	3.05	3.37	-9.50
Interest Coverage Ratio	22.93	3.87	492.51	The variation is on account of exception items of Rs 251.86 included in Net Profit of the current year
Current Ratio	2.47	1.60	-2.61
Debt Equity Ratio	0.48	1.06	-54.72	The variation is on account of reduction in short term borrowings as unsecured loan has been repaid and increase in share capital
Operating Profit Margin (%)	3.48	4.08	-14.71
Net Profit Margin	5.16	2.83	82.33	The variation is on account of exception items of Rs 251.86 included in Net Profit of the current year
Return on Net Worth	34.79	17.79	15.95

 

	For and on behalf of the board of directors
	Mr. Jerry Verghese
	Chairman
	DIN: 00012905
Date: 14th August, 2023
Place: Mumbai