MAKS ENERGY SOLUTIONS INDIA LIMITED
Climate Impact & Sustainability Data (2020-03-31 to 2022-03-31)
Reporting Period: 2020-03-31 to 2022-03-31
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Global pandemic of COVID-19 negatively impacted revenue.
- Negative cash flows in the past and potential for future negative cash flows.
- High working capital requirements.
- Substantial investments in overseas Joint Venture with uncertain returns.
- High debt equity ratio.
- Need for approvals and licenses, potential for non-compliance.
- Restrictive covenants under financing agreements.
- Significant portion of revenue dependent on export sales.
- Assembling unit on lease basis, potential for relocation.
- Venturing into new lines of business with limited experience.
- Risks from interest rate fluctuations.
- Auditor's qualification on inventory records in 2020.
- Lack of non-compete agreements with Group Companies.
- Dependence on a few external suppliers for key raw materials.
- Compliance with and changes in laws and regulations.
- Adoption of stringent emission standards.
- Dependence on Promoter's trademark.
- Lack of trademark registration for company logo.
- Instances of non-compliances in regulatory filings.
- Dependence on key personnel.
- Potential for product liability claims.
- Demand for generator sets dependent on power outages and seasonality.
- Limited disclosure from some Promoter Group members.
- Inadequate insurance coverage.
- Promoter group retaining majority control.
- Inadequately stamped or unregistered agreements.
- Related party transactions.
- Information based on industry projections and assumptions.
- Ability to respond to technological advances and changing preferences.
- Potential harm from employee misconduct or errors.
- Natural or man-made disasters.
- Financial instability in other countries.
- Changing laws, rules, and regulations.
- Civil unrest, acts of violence.
- Political instability and changes in government policy.
- Regulatory, economic, and political uncertainties.
- Resource strain from being a listed company.
- Downgrading of India's debt rating.
- Volatile trading volume and market price of Equity Shares.
- Dilution of shareholding from future issuances or sales.
- Issue price not indicative of future market price.
- Indian taxes on capital gains.
- Dependence on earnings for dividend payments.
- Limited shareholder rights under Indian laws.
- Fluctuation in exchange rates.
- Potential lack of active trading market for Equity Shares.
Mitigation Strategies
- Repayment/prepayment of loans using IPO proceeds.
- Utilizing IPO proceeds for general corporate purposes.
- Diversification of business activities.
- Exit from non-viable Joint Venture.
- Debt reduction strategies.
- Obtaining necessary approvals and licenses.
- Compliance with financing agreement covenants.
- Exploring new markets and diversifying sales.
- Lease renewal or alternative arrangements for assembling unit.
- Risk management strategies for new business ventures.
- Interest rate risk management strategies.
- Improved inventory record-keeping.
- Developing non-compete agreements.
- Diversifying supplier base.
- Compliance with laws and regulations.
- Adapting to emission standards.
- Trademark registration.
- Trademark application for company logo.
- Improved regulatory compliance procedures.
- Employee retention strategies.
- Product liability insurance.
- Diversifying customer base and product offerings.
- Improved internal controls.
- Insurance coverage.
- Corporate governance measures.
- Legal compliance measures.
- Transparency and disclosure.
- Continuous monitoring and adaptation.
- Technological innovation.
- Internal control improvements.
- Disaster preparedness plans.
- Financial risk management.
- Regulatory compliance.
- Risk mitigation strategies.
- Political risk management.
- Economic risk management.
- Financial planning and resource allocation.
- Credit rating monitoring.
- Investor relations.
- Capital allocation strategies.
- Tax planning.
- Financial planning.
- Investor communication.
- Currency hedging strategies.
- Market making arrangements.
Supply Chain Management
Climate-Related Risks & Opportunities
Awards & Recognition
- One Star Export House Recognition