Sri KPR Industries Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

As informed in earlier years the demand for Asbestos Cement Pipe is coming down due to use of metal pipes in Drinking Water Supply schemes. There were also no new works on hand of Drinking Water Supply schemes for its subsidiary company Sri KPR Infra & Projects Ltd, since the entire the state of Telangana has been covered under Mission Bhagiratha. The investments were also made in Wind Power in the company and its subsidiary company. During the year under review, as informed in the earlier years, the Wind Power Generation payments from AP DISCOM & Central Railway, Mumbai are still pending.

Post closure of financial year 2021-2022; AP DISCOM has informed during the month of August 2022 that they will release the pending payments of Wind Power Generation in 12 installments, out of which the company has already received one installment during August2022,which is a good sign for the company and the Central Railway has started taking 6 MW Wind Power Generation from 1st July 2022 onwards and its payment is also under process which is also another good sign for the company.

OPPORTUNITIES

As informed vide postal ballot notice dated 30^th June 2022 and as approved by the shareholders, the

Company is in the process of sale of plant, machinery & AC Sheet Factory Shed. Similarly, the company is under process of development of factory land by way of making layout for residential open plots which paves way for new source of avenue.

OUTLOOK, RISKS AND CONCERNS

The outlook, risks and concerns are as follows:

The delay in receipt of payment from State Electricity Boards and Railways may cause liquidity problem.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal audit and control systems. Both internal auditors and statutory auditors independently evaluate the adequacy of internal control system. Based on the audit observations and suggestions, follow up, remedial measures are being taken including review and increase in the scope of coverage, if necessary. The Audit Committee of Directors, in its periodical meetings, reviews the adequacy of internal control systems and procedures and suggests areas of improvements.

Information technology base created by the Company over the period is providing a very useful helping hand in the process. Needless to mention, that ensuring maintenance of proper accounting records, safeguarding assets against loss and misappropriation, compliance of applicable laws, rules and regulations and providing reasonable assurance against fraud and errors will continue to remain central point of the entire control systems.

FINANCIAL PERFOMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Standalone:

During the year under review, revenue from operations decreased from 3.81 crores to Rs.3.45 crores. The net profit for year has been decreased from Rs. 8.37 Crores to Rs. 1.24 Crores. The earning per share for the year is Rs. 0.62/- as against Rs. 4.16/- of the previous year.

Consolidated:

However, under the consolidated balance sheet during the year, the revenue from the operations has increased from Rs. 8.86 crores to Rs. 8.93 Crores. The net profit is decreased form Rs. 9.63 Crores to Rs. 0.35 crores. The earning per share is Rs. 0.17/- as against Rs. 4.78/- of the previous year.

HUMAN RESOURCE DEVELOPMENT

Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. In order to focus on keeping employees abreast of technological and technical developments.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ materially from those expressed in the statements. Important factors that would influence the Companys operations include cost of raw materials, tax laws, procedural hurdles of

Government Agencies, delay in release of Wind Electric payments, economic developments and such other factors within the Country.

FOR SRI KPR INDUSTRIES LIMITED

Sd/-	Sd/-
KISHAN REDDY NALLA	SRINATH REDDY NALLA
MANAGING DIRECTOR	WHOLE TIME DIRECTOR
DIN: 00038966	DIN: 00052862