Transwind Infrastructures Ltd Management Discussions

INTRODUCTION

We have continuously evolved as the mainstream service provider expanding our areas of expertise through diversification. We cater to complex, technological needs of clients in the domains of domestic gas pipeline (MDPE) laying, installation and commissioning. Maintenance of quad cable and optical fibre cable, civil and irrigation works.

GOVERNMENT INITIATIVES:

The Capital Investment outlay has been increased to Rs. 10Lakhs Crores in Budget 2023-24.An Investment Finance secretariat is also being establishedto act as a single point for attracting and enhancing theopportunities for the private infrastructure players to enablethem to invest in Railways, Road and Urban Infrastructure.Initiatives by 8 Core Infrastructure Sectors includes coal, crudeoil, natural gas, refinery products, fertilizers, steel, cement,electricity. Their combined performance has increased by 7%by December 2022.

CONSTRUCTION AND INFRASTRUCTURE INDUSTRY

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, urban infrastructure, rural infrastructure, waste management among others.

BUSINESS OVERVIEW:

Your Company is a reputed and well-known Ahmedabad based Company having its presence in construction services industry, since many years. The Company is Infrastructure Development one, which is presently working in the area of growing sector of Indian Railways Signaling & Telecommunication (S&T) segment, City Gas Distribution Network, Water Distribution Network and Irrigationsector. Infrastructure is a key driver of the overall development of Indian economy. This sector focuses on major infrastructure sectors such as power, roads and bridges, dams and urban infrastructure. Ministry of Urban Development has made focus in the emerging area of Infrastructural Development sector. The changing infrastructure landscape in India has generated significant interest from international investors.

OPPORTUNITIES & THREATS

Opportunities:

1. Strong Economic Scenario:

Indiahasemergedasoneoftheworldsfastestgrowingmajoreconomies.Theoverallmacro-economicscenario in the country is positive with low inflation, reduced key interest rates, low commodity prices, rising foreign investments and improved global confidence in the region various structural reforms and government initiatives.

2. Regulatory Changes:

The major regulatory changes by the Government in the area of Infrastructure Development, and Urban Development Policy enhance the positive atmosphere among the people and Industries as whole.

3. Governments Outlook to Investing in the Indian Infrastructure Sector:

Infrastructure is a key driver for the Indian economy. Increased spending in this sector has a multiplier effect on overall economic growth as it necessitates industrial growth and manufacturing. This in turn boosts aggregate demand by improving living conditions

Threats:

1. Economy slowdown: Economic slowdown and changes in regulatory environment may impact the construction industry or real estate market, adversely affecting the Companys operations.

2. Fund Crunch:

TheInfrastructuralDevelopmentdemandshugelong-terminvestmentsinprojects.Lackofcheapfundsorforeign investments may lead to delays in the project resulting in losses. As a Government contracting company it requires certain deposits with government department which leads to Blocking of Fund and less workingcapital.

3. Decline in Bank Credit:

The rising non-performing assets (NPAs) and cases of fraud have resulted in banks getting stringent on its credit approval leading to a decline in their credit line for all the industries. This is likely to create liquidity issues for the Infrastructural Development sector aswell.

4. Shortage of Labor, supply and Technology:

The Infrastructural Development sector in India, being highly dependent on manual labor, is facing a major challenge in terms of availability of manpower which in turn leads to project delays even more due to certain policy of Government Company regarding supply of goods from their side and quality measurement certification leads to delay in work.

Internal Control Systems and their Adequacy:

The Company has adequate Internal Financial Controls consistent with the nature of business and size of the operations, to effectively provide for safety of its assets, reliability of financial transactions with adequate checks and balances, adherence to applicable statutes, accounting policies, approval procedures and to ensure optimum useof available resources. These systems are reviewed and improved on a regular basis. It has a comprehensive budgetary control systemto monitor revenue and expenditure against approved budget on an ongoing basis.

Category wise performance:

KEY FINANCIAL RATIOS

FORWARD LOOKING STATEMENTS

With the COVID Pandemic brought under control and lives andbusinesses bounced back to normalcy, your company is hopeful thatthe projects will be receive and executed with full potential.Substantial efforts are being made to complete and close down allthe old projects.With the various measures taken up by the Governments for revivingthe economy and various sectoral financial assistance from theBanking and financial sectors your company is hoping for head wayin operations of the entity.