Genus Prime Infra Ltd Management Discussions

(Forming part of Director’s Report)

Global Economy At Glance

The global economy is continuously growing at a modest pace, according to the OECD’s the latest Economic Outlook. The impact of tight monetary conditions continues being felt, particularly in housing and credit markets, but global activity is proving relatively resilient, the decline in inflation continues, and private sector confidence is improving.

The Global economy has proved resilient, inflation has declined within sight of central bank targets, and risks to the outlook are becoming more balanced. Monetary policy should remain prudent, with scope to lower policy interest rates as inflation declines, fiscal policy needs to address rising pressures to debt sustainability, and policy reforms should boost innovation, investment and opportunities in the labour market particularly for women, young people and older worker.

Monetary policy needs to remain prudent, to ensure that inflationary pressures are durably contained. Scope exists to lower policy interest rates as inflation declines, but the policy stance should remain restrictive in most major economies for some time to come.

Governments face rising fiscal challenges given high debt levels and sizeable additional spending pressures from population ageing, and climate adaptation and mitigation. Future debt burdens are likely to rise significantly if no action is taken, highlighting the need for stronger near-term efforts to contain spending growth, improve public spending efficiency, reallocate spending to areas that better support opportunities and growth, and optimise tax revenues.

Despite an improvement in near-term prospects, the global outlook remains subdued by historical standards. In 2024-25, growth is set to underperform its 2010s average in nearly 60 percent of economies, comprising over 80 percent of the global population. Downside risks predominate, including geopolitical tensions, trade fragmentation, higher-for-longer interest rates and climate-related disasters. Global cooperation is needed to safeguard trade, support green and digital transitions, deliver debt relief and improve food security.

The global economy is still going through a slow down on account of multiple aspects. It has lost momentum on account of Russia-Ukraine war and other factors, which is slowing down growth and broadening inflationary pressures. The course of war in Ukraine, slowing down econmy in US and Europe are the further possibilities which shall affect to different degrees via impacts on global trade and output.

Indian Economic Outlook

India’s growth continues to be resilient despite some signs of moderation in growth, although significant challenges remain in the global environment. India was one of the fastest growing economies in the world.

The Indian economy is projected to grow at 7.5 per cent in 2024, the World Bank has said, revising its earlier projections for the same period by 1.2 per cent. Overall, growth in South Asia is expected to be strong at 6.0 per cent in 2024, driven mainly by robust growth in India.

In India, the World Bank said, economic activity surprised on the upside in Q4 FY 2023, with growth of 8.4 per cent from a year ago. "The expansion was supported by rapid increases in investment and government consumption. More recent survey data point to continued strong performance," it said.

The Indian economy will likely to grow 7% in FY 2025, despite a slowdown to 6.7% in Q1 FY 2025, which marked the lowest growth rate in five quarters. This optimistic forecast is driven by strong underlying growth momentum and the narrowing of key economic data gaps.

Financial Performance

The Company continues to focus on controllable factors such as resetting cost base through diverse cost optimisation initiatives, disciplined capital investments, working capital initiatives, marketing initiatives & volume with strong control measures to ensure safe operations across businesses within framed government and corporate guidelines.

The following are relevant financial performance details with respect to the operational performance of the Company. Salient features relating to the Profit & Loss Account:

Growth, Opportunities and Threats, Outlook, Performance and Risks and Concern

The Company understands that in order to ensure consistent business growth, it is indispensable the risk be effectively identified, analysed and is exposed to a number of risks such as economic, regulatory, taxation and environmental risks as well as sectoral investment outlook. Some risks that may arise in the normal course of business and could impact their ability to address future developments, comprise credit risk, liquidity risk, counterparty risk, regulatory risk, commodity inflation risk and market risk. New risks such as foreign countries wars have also emerged which could affect the business of the Company. The Company’s strategy of focusing on key products and geographical segments is exposed to economic and market conditions.

Internal Control Systems and Their Adequacy

The Company’s internal control system is commensurate with the nature, size and complexities of operations. The internal control system ensures compliance with all applicable laws, regulations and facilitates optimum utilization of available resources and protects the interests of all stakeholders.

The Company has a proper and adequate system of internal controls to ensure that all resources are utilized optimally, compliances are done regularly and financial reports are accurate. The internal control system is supplemented by an internal audits, review by management and documented policies, guidelines and procedures. The Statutory Auditors of the Company also interact with the Audit Committee to share their findings and the status of corrective actions under implementation. The Audit Committee regularly evaluates the internal financial controls and risk management systems of the Company.

Human Resource Development and Industrial Relations

The Company believes that it is imperative to build a highly efficient talent pool to deliver its business goals. Commensurate with its growth plan, it has put enhanced focus on ramping up the organizational capabilities to align with its growth plans.

Your Company lays great emphasis on proper management of human resource and recognizes human assets as a primary source for the accomplishment of its long term goals and objectives. Your Company has qualified and experienced staff, ready to take challenges in day-to-day activities. Their unfailing and on-time performance allows us to run the Company smoothly.

Disclaimer Clause

Statements in the Management Discussion and Analysis Report describing the Company’s objectives, projections, estimates, 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 Company’s operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.