MANAGEMENT DISCUSSION AND ANALYSIS Indian economy continued to witness difficult times largely caused by slow pace of reforms, declining manufacturing output, high inflation leading to high borrowing cost and adverse fluctuation in Foreign exchange rates. These factors have affected the business sentiment and growth prospects of our country in the financial year ended March 31, 2014 as well. Consequently India's GDP growth slumped to 4.5%. However some of the interim measures taken by the Government and RBI brought down the Fiscal and Current account deficits to a manageable level. With the stable Government at the centre, hopes of revival of Indian economy and sustainable growth prospects have improved the business sentiments. Economic recovery in US and Europe will also aid the positive business sentiments, but the domestic macro-economic environment still remains challenging. As the shareholders are already aware, the company, pursuant to transfer of starch business is engaged in the Investment business and Generation of electricity through Wind Mills. Wind Energy Business As at the end of March 31, 2014 the total capacity of wind mills stood at 33.15 MW located in Tamilnadu (28.5 MW), Maharashtra (3 MW) and Gujarat (1.65 MW). Energy generated from the wind mills were sold to the respective state level distribution companies. Total energy generated during the year under review was 39.744 million as against 49.637 million units in the brvious year yielding revenue of Rs. 1337.70lakh. Persistent grid problems and local issues in Tamilnadu affected generation from the wind mills in that state. Changing wind pattern due to early and prolonged rains affected generation in other locations. The company is hopeful of grid stability in Tamilnadu by the middle of 2014 since the Southern grid is connected to National Net work. However, the impact on the wind pattern due to much talked about El Nino effect in the current monsoon season and resultant generation of electricity may have to be watched in the current financial year. |