Premier Energy & Infrastructure Ltd Management Discussions

Premier Energy and Infrastructure Limited (PEIL) is focused on the construction, housing development and energy sector. PEIL undertook estate development projects with business focus on residential and commercial developments.

PEIL further has expanded to the sector of developing infrastructural facilities in the Power generation.

INDUSTRY REVIEW

The Global environment continued to remain challenging by weak trade and minimal investments. The economy is expected to gradually improve through a re-balancing amidst supportive government policies and fi scal stimulus.

SWOT ANALYSIS Strengths

PEIL, is also a developer of renewable energy power plants in India based on aggregate installed capacity. Operates in the rapidly growing renewable energy sector, which benefi ts from increasing demand for electricity and regulatory support.

Experienced management and operating team with relevant industry knowledge and expertise.

Weakness

Revenues from our business of renewable power generation are exposed to market based electricity prices.

We are also susceptible to any delay in execution or escalation in cost by sub-contractors executing our projects and these delays or cost escalations may make new energy projects too expensive to complete or unprofi table to operate.

Development activities and operations through third party developers, over which we may not have full control.

The SEBs that we deal with may face challenges on fi nancial viability and hence may delay or defer payments.

Opportunities

The gap between demand and supply for power in the country presents a large and lucrative business opportunity that is expected to sustain for a number of years

There is large amount of interest in renewable energy generation and the benefi ts lead to premium pricing.

Threats

We face constraints to expand our renewable energy business due to unavailability of suitable operating sites, which are in limited supply.

Our business is governed by a tight regulatory mechanism across various regions that we operate and any negative impact due to change in regulations could affect the viability of the business.

RISKS AND CONCERNS Industry Risks – Housing Sector

Due to increased demand for land for development of residential and commercial properties, we are experiencing increasing competition in acquiring land in various geographies where we operate or propose to operate. In addition, the unavailability or shortage of suitable parcels of land for development leads to an escalation in land prices. Any such escalation in the price of developable land could materially and adversely affect our business, prospects, fi nancial condition and results of operations. Additionally, the availability of land, its use and development, is subject to regulations by various local authorities. For example, if a specifi c parcel of land has been delineated as agricultural land, no commercial or residential development is permitted without the prior approval of the local authorities

Industry Risks – Renewable Power Generation Sector

The company is exposed to typical industry risk factors including competition, regulatory environment and liquidity risks. The company tries to manage these risks by maintaining conservative fi nancial policies and by adopting prudent risk management practices.

Regulatory environment risk – Housing Sector

The present Government of India has announced its general intention to continue Indias current economic and fi nancial sector liberalization and deregulation policies. However, there can be no assurance that such policies will be continued and a signifi cant change in the Government of Indias policies in the future could affect business and economic conditions in India and could also adversely affect our business, prospects, fi nancial condition and results of operations.

Regulatory environment risk – Renewable Power Generation Sector

The Company is in a business which is dependent in a major way on regulatory policies as well as pricing. Any adverse change in the regulatory policy framework could impact the companys operations and fi nancial results.

Besides the above risks, the Company has perceived risks arising from delay in execution of projects and delivery of products and services and these could arise due to external factors like lack of infrastructure and non availability of fi nance and resources at reasonable costs.

INTERNAL CONTROLS AND THEIR ADEQUACY

The company has adequate internal control systems commensurate within its size and nature of business. The Management has overall responsibility for the Companys internal control system to safeguard the assets, usage of resources, compliance with applicable laws & regulations and to ensure reliability of fi nancial records.

MANAGEMENTS RESPONSIBILITY STATEMENT

The management is responsible for preparing the companys consolidated fi nancial statements and related information that appears in this annual report. It believes that these fi nancial statements fairly refl ect the form and substance of transactions, and reasonably represent the companys fi nancial condition and results of operations in conformity with Indian Generally Accepted Accounting Principles.

Income from Operations: Consolidated revenues for the year ended 31st March 2024 were Rs 501.34 lakhs as against Rs. 1429.95 lakhs in the previous year.

NETWORTH: The Consolidated Net worth of the company as on 31^st March 2024 is Rs. 3688.52 Lakhs as against Rs. 3727.65 lakhs in the previous year.

HUMAN RESOURCES

Our Human resources are a very valuable asset for our Company and employee involvement is encouraged and harnessed towards attainment of the Companys goals. A good pool of human resources is the biggest competitive advantage of PEIL.

The company is planning to employ senior professionals to add to the human capital which is the main contributor for the growth of business.

KEY FINANACIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company is required to give details of signifi cant changes (Change of 25% or more as compared to the immediate previous fi nancial year) in key-sector specifi c fi nancial ratios The company has identifi ed the following ratios as Key Financial Ratios:

The detail of return on net worth is given below: