You should read the following discussion of our financial condition and results of operations together with our Restated Financial Information which have been included in this Draft Red Herring Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Restated Financial Statement for Financial Years ended March 31, 2023, 2022 and 2021 including the related notes and reports, included in this Draft Red Herring Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI Regulations, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited financial statements for the respective period and years. Accordingly, the degree to which our Restated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.
Our Companys financial year commences on April 1 and ends on March 31 of the immediately subsequent year, and references to a particular fiscal year are to the 12 months ended March 31 of that particular year. Unless otherwise indicated or the context otherwise requires, the financial information included herein is based on or derived from our Restated Financial Statements included in this Draft Red Herring Prospectus. For further information, see "Restated Financial Statement" on page 225. Additionally, see "Definitions and Abbreviations" on page 1 for certain terms used in this section. Unless the context otherwise requires, in this section, references to "we", "us" and "our" "our Company" or "the Company" refer to SRM Contractors Limited.
Unless otherwise indicated, industry and market data used in this section has been derived from the industry report titled "Industry Report on Roads & Tunnels Infrastructure in India - Additional Focus on Union Territory of Jammu & Kashmir and Ladakh" dated September, 28 2023 (the "D&B Report") prepared and issued by Dun & Bradstreet Information Services India Private Limited ("D&B India"), appointed by us on August 6, 2023, and exclusively commissioned and paid for by us in connection with the Issue. D&B India is an independent agency which has no relationship with our Company, our Promoters and any of our Directors or KMPs or SMPs. The data included herein includes excerpts from the D&B Report and may have been re-ordered by us for the purposes of presentation. There are no parts, data or information (which may be relevant for the proposed Issue), that has been left out or changed in any manner. Unless otherwise indicated, financial, operational, industry and other related information derived from the D&B Report and included herein with respect to any particular year refers to such information for the relevant calendar year. A copy of the D&B Report is available on the website of our Company at www.srmcpl.com until the Bid/Issue Closing Date. For more information, see "Risk Factors – Certain sections of this Draft Red Herring Prospectus disclose information from the D&B Report which have been commissioned and paid for by us exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risks" on page 51
This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" on pages 32 and 24 respectively, and elsewhere in this Draft Red Herring Prospectus.
BUSINESS OVERVIEW
We are an engineering construction and development company engaged primarily in the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh. We undertake construction works both as an EPC contractor and on an item rate basis for infrastructure projects. Our Company also undertakes sub-contracting assignments of infrastructure construction projects. We have a track record of successful execution of road, tunnel and slope stabilization projects in the difficult terrain of Union Territories of Jammu & Kashmir and Ladakh and we, thus, believe that we have developed the expertise and know-how to undertake infrastructure construction projects in difficult terrains. Our Company has emerged as a key player in infrastructure construction industry in the Union Territories of Jammu & Kashmir and Ladakh and has developed technical capabilities to execute projects in hilly
/ challenging terrain in the region (Source: D&B Report).
We are an ISO 9001:2015 certified company and are also registered as class A contractor with Public Work (R&B) Department, Jammu & Kashmir. We are pre-qualified to bid independently on projects, tendered by departments of governmental authorities and other entities funded by the GoI, of contract value up to ?30,000 lakhs and
?50,000 lakhs for EPC contracts pertaining to construction of roads (including bridges) and for construction of tunnel respectively. As a result of the growth of our road and tunnel construction business as well as the recent government initiatives and support to develop the infrastructure of union territories of Jammu & Kashmir and Ladakh, we have further forayed into executing other infrastructure projects such as standalone bridges, larger slope stabilisation works and other miscellaneous civil construction activities in order to capitalise on such rising opportunities.
As an EPC contractor, the scope of our services includes detailed engineering of the project, procurement of construction materials, plant and machinery, construction and execution of the project and its operation and maintenance in accordance with the contractual provisions. Our manpower, resources and fleet of machinery and equipment, together with our engineering capabilities, enables us to execute a large number of projects simultaneously. We believe that our resources, quality of work and project execution skills have enabled us to enhance our relationships with existing clients and helps us to further secure projects from new clients.
We undertake contracts independently or whenever required, through our project-specific joint ventures with other infrastructure and construction entities when a project requires us to meet specific eligibility requirements in relation to certain large projects, including requirements relating to particular types of experience. Our Company also undertakes sub-contracting assignments from third party major infrastructure and construction entities.
Our Company was incorporated in September 2008 and we have gradually increased our execution capabilities in terms of the size of projects that we are now bidding for and executing. For instance, one of the first road projects awarded to us by Government of Jammu and Kashmir Economic Reconstruction Agency in the month of February 2011 for widening of Sakhi-Maidan-Kalai road in District Poonch with the project cost of ?773.88 lakhs, whereas, one of the project recently awarded by Ministry of Road Transport and Highways through Border Roads Organisation in calendar year 2023 i.e. Construction of realignment between Pandrass- Pashkyum (net length-
27.10 km) on road Zozila-Kargil-Leh (NH-1) to 2 lane specifications i.e. Drass realignment (9.30 km), Kharboo realignment (6.30 km) & Kargil alignment (11.50 km) under project Vijayak (BRO) in the Union Territory of Ladakh on EPC mode to our project specific joint venture is having a project cost of ? 20,568.28 lakhs.
Since incorporation, our Company, independently and through project-specific joint ventures, has completed thirty-seven (37) infrastructure construction projects having an aggregate contract value of Rs. 77,088 lakhs which includes thirty-one (31) roads projects, three (3) tunnel projects, one (1) slope stabilisation works and two (2) other miscellaneous civil construction activities. Out of the thirty-seven (37) projects executed by our Company, twenty-nine (29) infrastructure construction projects, including sub-contracting assignments, have been executed independently by us and eight (8) projects have been executed through project specific joint ventures. For information in respect of our completed projects, see "Our Business - Our Completed Projects" on page 172. As on September 15, 2023, our order book consists of twenty-one (21) infrastructure construction projects which includes twelve (12) roads projects (including bridges), five (5) tunnel projects, three (3) slope stabilization project and one (1) other miscellaneous civil construction activities. Out of the twenty-one (21) ongoing infrastructure construction projects, fifteen (15) infrastructure construction projects, including sub-contracting assignments, is being executed independently by us and six (6) infrastructure construction projects are being executed with our project-specific joint ventures. For information in respect of our ongoing projects, see "Our Business - Our Order Book" on page 173 and "Our Business - Our Joint Ventures" on page 176 .
Our order book in terms of value of contracts, including subcontracting assignments, was ?70,743.00 lakhs as on September 15, 2023, ?83,469.37 lakhs as on March 31, 2023, ?25,788.32 lakhs as on March 31, 2022, and
?43,257.33 lakhs as on March 31, 2021. Among the twenty-one (21) infrastructure construction projects that we are currently executing, twelve (12) projects aggregating to a total contract value of ?42,951.80 lakhs relates to road construction, five (5) project of total contract value of ?18,195.50 lakhs relates to tunnel construction, 3 (three) projects aggregating to a total contract value of ?9,248.10 lakhs relates to slope stabilisation works and one (1) project of total contract value of ?347.60 lakhs relates to other construction activity. For information in respect of our ongoing projects, see "Our Business - Our Order Book" on page 173.
At present we are primarily bidding for construction of roads including bridges, tunnel works, slope stabilisation
works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh. Our major clients include National Highways & Infrastructure Development Corporation Limited - Ministry of Road Transport & Highways, Government of India (NHIDCL), Konkan Railway Corporation Limited (KRCL), Government of Jammu and Kashmir Economic Reconstruction Agency (ERA, Jammu), Border Road Organisation (BRO), Public Work (R&B) Department, Jammu & Kashmir (PWD, J&K), Northern Railway, Irrigation & Flood Control Department, J&K, J&K Rural Roads Development Agency (JKRRDA). Our Company also undertakes sub-contracting assignments from third party major infrastructure and construction entities executing projects in the Union Territories of Jammu & Kashmir.
Key Performance Indicators
In evaluating our business, we consider and use certain key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Financial Statement included in this Draft Red Herring Prospectus. We present these key performance indicators because they are used by our management to evaluate our operating performance. Further, these key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to Ind AS measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation. Our key financial performance indicator for Financial Year 2023, Financial Year 2022 and Financial Year 2021 are detailed as below;
(? in lakhs, unless stated otherwise)
| Parameter |
Financial Year 2023 |
Financial Year 2022 | Financial Year 2021 |
| Total income |
30,065.09 |
26,550.88 | 16,194.74 |
| Total revenue from operations (in ? ) |
30,029.08 |
26,361.14 | 16,005.89 |
| Current Ratio |
2.05 |
1.56 | 1.23 |
| EBIDTA |
3,865.67 |
3,201.28 | 1,832.82 |
| EBIDTA Margin (in %) |
12.87 % |
12.14% | 11.45% |
| Net Profit for the Year |
1,874.61 |
1,756.77 | 827.28 |
| Net Profit Margin (in %) |
6.24% |
6.66 % | 5.17% |
| Return on Net Worth (in %) |
34.85% |
49.30% | 36.43% |
| Return on Capital Employed (in %) |
35.04% |
42.16% | 31.17% |
| Debt-Equity Ratio |
0.75 |
0.71 | 1.19 |
| Debt Service Coverage Ratio |
3.26 |
3.25 | 3.68 |
Notes:
(aa) EBITDA margin is calculated as EBITDA as a percentage of total income.
(bb) Net Profit for the year represents the restated profits of our Company after deducting all expenses. (cc) Net Profit margin is calculated as restated profit & loss after tax for the year divided by total income.
(dd) Return on net worth is calculated as Profit for the year, as restated, attributable to the owners of the Company for the year divided by Average Net worth (average total equity). Average total equity means the average of the aggregate value of the paid-up share capital and other equity of the current and previous financial year.
(ee) Return on capital employed calculated as Earnings before interest and taxes divided by average capital employed (average capital employed calculated as average of the aggregate value of total equity, total debt of the current and previous financial year).
(ff) Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long term and short term borrowings. Total equity is the sum of equity share capital and other equity.
(gg) Debt Service Coverage Ratio is calculated by dividing the sum of Profit after Tax and interest amount by sum of the repayment of loan and Interest.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR:
In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material
liabilities within the next twelve months. A few of the below listed developments have taken place since date of the last financial statements disclosed in this Draft Red Herring Prospectus;
?23.00 crores (sub limit ?6.90 crores Bank Guarantee Financial) and Term loan of ?10.00 lakhs on April 19,2023.
For detail, see "Financial Indebtedness" on page 264.
KEY FACTORS AFFECTING THE RESULTS OF OPERATION:
Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page 32. Our Companys future results of operations could be affected potentially by the following factors:
OUR SIGNIFICANT ACCOUNTING POLICIES
The notes to the Restated Consolidated Summary Statements included in this Draft Red Herring Prospectus contain a summary of our significant accounting policies. For details relating to our Significant accounting policies, see "Accounting Policies & Notes on Accounts - Annexure IV -Restated Financial Statement" beginning on page 232.
PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS
Set forth below are the principal components of statement of profit and loss from our continuing operations:
Income
Our total income comprises of (i) revenue from operations and (ii) other income.
Revenue from Operations
Revenue from operations comprises of Income generated from execution of work under the infrastructure construction contract assigned to us..
Other Income
Other income includes (i) interest income, (iii) other income and (iv) profit on sale of property, plant & equipment.
Expenses
Our expenses comprises of: (i) purchase cost; (ii) construction expenses; (iii) changes in inventories; (iv) employee benefits expense; (iv) finance costs; (v) depreciation and amortisation expense; and (vi) other expenses.
Purchase Cost
Purchase cost denotes the cost of materials purchased during the year.
Construction Expenses
Construction Expenses include: (i) sub-contract charges;(ii) hire/rent charges for equipment; (iii) drawing, design and survey expenses; (v) site expense; (vi) testing and quality control; (viii) tender fees; (ix) transportation expenses; and (xi) other expenses.
Changes in Inventories
Changes in inventories denote the difference between opening and closing balance of work in progress. The Company does not have any other items of inventory during the reported period.
Employee Benefits Expense
Employee benefits expenses primarily include (i) salary and wages, (ii) contribution to employee benefits (gratuity, provident fund and other funds) and (iii) staff welfare expenses.
Finance Cost
Finance cost includes (i) bank interest; (ii) other interest and (iii) other borrowing cost.
Depreciation and Amortisation expenses
Depreciation and amortisation expenses primarily include depreciation expenses on our property, plant and equipment.
Other Expenses
Other expenses include (i) audit fees; (ii) insurance expenses; (iii) repair and maintenance expenses;(iv) donation expenses;(v) corporate social responsibility expenses;(vi) fuel and lubricant Expenses(vii) Labour Cess (viii) Royalty (ix) telephone and internet expenses; (x) travelling expenses; (xi) Water Charges; (xii) professional and consultancy fees; (xiii) office and administrative expenses; (xiv) rent and lease; (xv) staff accommodation charges.
RESULTS OF KEY OPERATIONS
(? in lakhs)
| Particulars | For the year ended on | ||
| 31.03.2023 | 31.03.2022 | 31.03.2021 | |
| Income from continuing operations | |||
| Revenue from operations | 30,029.08 | 26,361.14 | 16,005.89 |
| Total Operarting Revenue | 30,029.08 | 26,361.14 | 16,005.89 |
| % of growth | 13.91 | 64.70 | |
| Other Income | 36.01 | 189.74 | 188.85 |
| % total Other Income | 0.12 | 0.71 | 1.17 |
| Total Revenue | 30,065.09 | 26,550.88 | 16,194.74 |
| % of Growth | 13.24 | 63.95 | - |
| Expenses | |||
| Cost of Material Consumed | 21,757.85 | 18,551.83 | 11097.14 |
| % of Revenue from operations | 72.46 | 70.38 | 69.33 |
| Employee benefits expense | 1,131.98 | 874.86 | 692.32 |
| % Increase/(Decrease) | 29.39 | 26.37 | |
| Finance Costs | 580.02 | 255.35 | 232.70 |
| % Increase/(Decrease) | 127.15 | 9.73 | |
| Other expenses | 3,309.59 | 3,922.91 | 2,572.46 |
| Particulars |
For the year ended on |
||
|
31.03.2023 |
31.03.2022 | 31.03.2021 | |
| % Increase/(Decrease) | (15.63) | 52.50 | |
| Depreciation and amortisation expenses | 780.80 | 616.45 | 516.82 |
| % Increase/(Decrease) | 26.66 | 19.28 | |
| Total Expenses | 27,560.23 | 24,221.40 | 15,111.44 |
| % to total revenue | 91.67 | 91.23 | 93.31 |
| EBDITA | 3,865.67 | 3,201.28 | 1,832.82 |
| % to total revenue | 12.86 | 12.06 | 11.32 |
| Restated profit before tax from continuing operations | 2,504.85 | 2,329.48 | 1,083.30 |
| Exceptional Item | |||
| Total tax expense | 630.24 | 572.71 | 256.02 |
| Restated profit after tax from continuing operations (A) | 1,874.62 | 1,756.77 | 827.28 |
| % to total revenue | 6.24 | 6.62 | 5.11 |
COMPARISON OF F.Y. 2022-23 WITH F.Y. 2021-22:
Income from Operations
We are engineering construction and development Company, engaged in the construction of road (including bridges), tunnels, slope stabilization works and other civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh. Our Companys Contract receipt for FY 2022-23 was ?30,029.08 Lakhs, which is increased by 13.91% in comparison to F.Y. 2021-22 contract receipt of ?26,361.14 Lakhs. The Company was doing construction activity in Union Territories of Jammu and now have also started getting construction contracts for executing projects in the Union Territories of Ladakh.
Expenditure:
Cost of Material Consumed
The Cost of Material Consumed for F.Y.2022-2023 was ?21,757.84 Lakhs against the cost of Material Consumed of ?18,551.83 Lakhs in F.Y. 2021-2022. The cost of material consumed was 72.46 % of the total revenue from operations in F.Y 2022-2023 as against 70.38 % of total revenue from Operations in F.Y 2021-2022. The increase in cost of raw material consumed is on account of increase in prices of various raw material
Employee Benefits Expenses:
The Employee expenses for F.Y. 2022-2023 was ?1,131.98 Lakhs against the expenses of ?874.86 Lakhs in F.Y. 2021-22 showing increase by 29.39 %. The no of employees in the F.Y. 2022-23 were 280 as compared to No of Employees 245 in F.Y. 2021-22. The increase in the number of employees, normal increment to the existing employees and revision of the Directors remuneration result in to increase of the employee cost by 29.39% in F.Y. 2022-23 as compared to F.Y. 2021-22.
Finance Cost:
The Finance Cost for F.Y. 2022-23 was ?580.02 Lakhs against the cost of ?255.35 Lakhs in the F.Y. 2021-22 showing an increase of 127.15 %. The Company had provided bank guarantees for the various projects awarded to the Company. The Contingent Liability of bank Guarantee as on March 31, 2023 was ?6,185.29 lakhs as against Contingent liability for bank Guarantee as on March 31, 2022 was ?4,192.54 lakhs. The Bank Guarantee commission in the F.Y.2022-23 was ?336.46 lakhs as against ?42.97 lakhs in F.Y 2021-22. The increase in the Finance cost is due to utilization of more working capital limit in F.Y. 2022-23 as compare to F.Y 2021-22.
Other Expenses
Other Expenses decreased to ?3309.59 lakhs for F.Y. 2022-23 against ?3922.91 Lakhs in F.Y. 2021-22 showing
decrease by 15.63%. The other expenses decrease on account of the reduction in the cost of diesel and other lubricants in absolute term by Rs 327.55 lakhs in F.Y. 2022-23 in comparison with F.Y 2021-22.
Depreciation and Amortisation Expenses:
The Depreciation for F.Y. 2022-23 was ?780.80 Lakhs as compared to ?616.45 Lakhs for F.Y. 2021-22. The depreciation was increased by 26.66 % in F.Y. 2022-23 as compared to F.Y. 2021-22. The depreciation was increased on account of acquiring plant and machineries and other Fixed assets of ?1790.16 lakhs in F.Y 2022- 23.
EBDITA
The EBDTA for F.Y. 2022-23 was ?3865.68 Lakhs as compared to ?3201.28 Lakhs for F.Y. 2021-22. The EBDITA was 12.86 % in FY 2022-23 of total Revenue as compared to 12.06 % in FY 2021-22. The EBDITA is increased on account of reduction of other expenses and increase of business by 13.91% in F.Y. 2022-23 as compared to F.Y 2021-22.
Profit after Tax (PAT)
PAT is? 1874.62 Lakhs for F.Y. 2022-23 as compared to ?1,756.77 Lakhs in F.Y. 2021-22. The PAT was 6.24% of total revenue in F.Y. 2022-23 compared to 6.62% of total revenue in F.Y. 2021-22. Though the business of the Company increased by 13.91% in FY 2022-23 compared to F.Y. 2021-22, the profit margin was reduced by 0.38% on account of increase in cost of material consumption, higher depreciation and financial charges.
COMPARISON OF F.Y. 2021-22 WITH F.Y. 2020-21:
We are an engineering construction and development company, engaged in the construction of road (including bridges), tunnels, slope stabilization works and other civil construction activities in the union territories of Jammu & Kashmir and Ladakh. The Companys Contact receipt for FY 2021-22 was ?26,361.14 Lakhs, which is increased by 64.70% in comparison to F.Y. 2020-21 contract receipt of ?16,005.89 Lakhs. The Company was doing construction activity in Union Territories of Jammu and now also started working in the Union Territories of Ladakh. The project specific joint ventures which were formed helped the Company to get the bigger projects and execution of the same resulted in increase of the revenue.
Expenditure:
Cost of Material Consumed
The Cost of Material Consumed for F.Y.2021-22 was ?18,551.83 Lakhs against the cost of Material Consumed of ?11,097.14 Lakhs in F.Y. 2020-21. The cost of material consumed was 70.38 % of the total revenue from operations in F.Y 2021-22 as against 69.33 % of total revenue from Operations in F.Y 2020-2021. The increase in cost of raw material consumed is on account of increase in prices of various raw material.
Employee Benefits Expenses:
The Employee expenses for F.Y. 2021-22 was ?874.86 Lakhs against the expenses of ?692.32 Lakhs in F.Y. 2020-21 showing an increase by 26.37 %. The no of employees in the F.Y. 2021-22 were 245 as compared to No of Employees 220 in F.Y. 2020-21. The increase in the number of employees and normal increment to the existing employees result in to increase of the employee cost by 26.37 % in F.Y. 2021-22 as compared to F.Y. 2020-21.
Finance Cost:
The Finance Cost for F.Y. 2021-22 was ?255.35 Lakhs against the cost of ?232.70 Lakhs in the F.Y. 2020-21 showing an increase of 9.73 %. The increase in the Finance cost is due to utilization of more working capital limit in F.Y. 2021-22 as compare to F.Y 2020-21.
Other Expenses
Other Expenses increased to ?3,922.91 lakhs for F.Y. 2021-22 against ?2572.46 Lakhs in F.Y. 2020-21 showing increase by 52.50%. The other expenses increased on account of increase in the business by 64.70 % in F.Y. 2021- 22 as compared to F.Y. 2020-21 resulting in to more cost of diesel and other lubricants in absolute term by Rs 1451.14 lakhs in F.Y. 2021-22 in comparison with F.Y 2020-21
Depreciation and Amortisation Expenses:
The Depreciation for F.Y. 2021-22 was ?616.45 Lakhs as compared to ?516.82 Lakhs for F.Y. 2020-21. The depreciation was increased by 19.28 % in F.Y. 2021-22 as compared to F.Y. 2020-21. The depreciation was increased on account of acquiring plant and machineries and other Fixed assets of ?554.05 lakhs in F.Y 2021-22
.
EBDITA
The EBDTA for F.Y. 2021-22 was ?3201.28 Lakhs as compared to ?1832.82 Lakhs for F.Y. 2020-21. The EBDITA was 12.06 % in FY 2021-22 of total Revenue as compared to 11.32% in FY 2020-21. The EBDITA is increased on account of increase in the business by 64.70 % in F.Y. 2021-22 as compared to F.Y. 2020-21.
Profit after Tax (PAT)
PAT is ?1756.77 Lakhs for F.Y. 2021-22 as compared to ?827.28 Lakhs in F.Y. 2020-21. The PAT was 6.62% of total revenue in F.Y. 2021-22 compared to 5.11% of total revenue in F.Y. 2020-21. The profit margin was increased on account of increase in the business by 64.70 % in F.Y. 2021-22 as compared to F.Y. 2020-21.
CASH FLOW
(? in lakhs)
|
Particulars |
March 31, 2023 |
March 31, 2022 |
March 31, 2021 |
| Net cash from Operating Activities |
1304.54 |
973.23 |
1418.13 |
| Net cash flow from Investing Activities |
(1886.89) |
(594.02) |
(1325.00) |
| Net Cash Flow Financing Activities |
983.40 |
(298.70) |
452.57 |
Cash flow for the Financial year ended March 31, 2023
The company was getting work and investing in the fixed assets hence the cash flow from investing activity was negative. The Investment in the fixed assets was from the internal cash accruals and borrowing from the Financial Institution and Banks. As far as Cash flow from operating activities were concerned, the companys funds blocked in change in working capital is less than the Profit earned by the Company hence the cash flow from Operating activity was positive. The Cash and Bank balance was high but looking to the operation of the Company on various locations, various sites and maintaining to the extent possible the bank account at the various sites, the cash and bank balance is not high .
Cash flow for the Financial year ended March 31, 2022
The company was investing in the fixed assets hence the cash flow from investing activity was negative. The Investment in the fixed assets was from the internal cash accruals and borrowing from the Financial Institution and Banks. As far as Cash flow from operating activities were concerned, the companys funds blocked in change in working capital is less than the Profit earned by the Company hence the cash flow from Operating activity was positive. The Cash and Bank balance was high but looking to the operation of the Company on various locations, various sites and maintaining to the extent possible the bank account at the various sites, the cash and bank balance is not high.
Cash flow for the Financial year ended March 31, 2021
The company was investing in the fixed assets hence the cash flow from investing activity was negative. The Investment in the fixed assets was from the internal cash accruals and borrowing from the Financial Institution
and Banks. As far as Cash flow from operating activities were concerned, the companys funds blocked in change in working capital is less than the Profit earned by the Company hence the cash flow from Operating activity was positive. The Cash and Bank balance was high but looking to the operation of the Company on various locations, various sites and maintaining to the extent possible the bank account at the various sites, the cash and bank balance is not high.
INFORMATION REQUIRED AS PER ITEM 11 (II) (C) (IV) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:
To our knowledge, there have been no unusual or infrequent events or transactions that have taken place during the last three years other than shut down of business due to COVID-19.
Our Business is substantially dependent on Infrastructure projects like Road, Tunnel, Slop Sliding walls in Union Territory of Jammu and Kashmir and Ladakh awarded by Government Authorities and other entities funded by the Government. Any change in the Government Policies resulting in to a decrease in the awarding of the infrastructure projects may adversely affect our business and results of operations. For further details, see "Industry Overview" on Page 115 and "Risk Factor" on 32.
Apart from the risks as disclosed under Section titled "Risk Factors" on page 32, to our knowledge there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
Other than as described "Risk Factors", "Our Business", "Managements Discussion and Analysis of Financial Position and Result of Operations" on Pages 32, 162 and 273 respectively, to our knowledge, there are no known factors that might affect the future relationship between expenditure and income which may have a material adverse impact on our operations and finances.
Changes in revenue in the last three Financial Years are as described in "Results of Key Operations – Comparison of FY 2022-23 with FY 2021-2022 and Comparison of FY 2021-2022 with FY 2020 -2021" and mentioned above. Increases in revenues are by and large linked to increases in volume of business mentioned above.
The Company is in the business of Infrastructure industry. For detail, see "Our Business" and "Industry Overview" on page 162 and 115 .
Except as set out in this Draft Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new products or new business segments.
Our Companys business is not seasonal, but our business and operations may be affected by seasonal factors such as heavy or sustained snowfall, extreme cold weather or other extreme weather conditions may restrict our ability to carry on activities related to our projects and fully utilize our resources.
Our business is primarily dependent on road, tunnels, slop stabilization projects and other construction activity in Union Territory of Jammu & Kashmir and Ladakh undertaken or awarded by governmental authorities We derive a significant portion of our revenues from a limited number of clients. Our business could be materially and adversely affected if there are adverse changes in the policies and delays in awarding contracts by these authorities, among other risks. For further details, see "Our Business" and "Risk Factors" on page 162 and 32 respectively.
We operate in a competitive environment. We compete against various domestic engineering, construction and infrastructure companies. For details, see "Our Business", "Industry Overview" and "Risk Factors" on page 162, 115 and 32 respectively.
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