As of September 30, 2023, Kay Cee Energy & Infra Limited manages 15 projects with a total order book value of approximately Rs. 549.90 crores.
Rajasthan Rajya Vidyut Prasaran Nigam Limited has given the company three projects valued at Rs. 362.96 crores. These projects will be executed in collaboration with Jost's Engineering Company Limited, with Kay Cee Energy & Infra Limited as the lead partner.
Kay Cee Energy & Infra Limited follows an in-house integrated model to reduce dependence on third-party transport providers and equipment suppliers for project execution. They have a central procurement team to ensure timely delivery of materials from authorized vendors.
The company plans to venture into the EPC space of renewable energy plant construction, focusing on Solar Park and Project developments.
The company's order book includes projects for the supply, erection, and commissioning Extra High Voltage (EHV) transmission lines and substations from public sector units.
Kay Cee Energy & Infra Limited is dependent on infrastructure projects undertaken by government authorities and entities funded by governments. Failure to qualify or secure the lowest bid may result in the loss of business opportunities.
The company's top five customers contribute a substantial percentage of its revenues, with figures of 100%, 96.31%, 91.41%, and 95.08% for various periods, including the year ended June 30, 2023. Any loss of business from these key customers could adversely impact the company's revenues and profitability.
Revenue generation is reliant on operations in the geographical region of the State of Rajasthan, contributing 95.23%, 99.33%, 96.81%, and 85.31% to the total regional revenue for different periods. Adverse incidents in this region may have a negative impact on the company's business, financial condition, and results of operations.
The company is involved in outstanding legal proceedings, and an adverse decision in these proceedings could significantly impact its business, results of operations, and financial condition. There are some indirect tax cases filed against the company.
Kay Cee Energy & Infra Limited has financing agreements with certain banks for working capital facilities, term loans, and bank guarantees. As of June 30, 2023, the company had a total of Rs. 38.79 crore in outstanding borrowings. Non-compliance with repayment and other covenants in these agreements may adversely affect the company's business, financial condition, cash flows, and credit rating.
The company has availed unsecured loans, with outstanding amounts of Rs. 3.035 crore and Rs. 4.777 crore for the financial year ending March 31, 2023, and the period ending June 30, 2023, respectively.
The company did not disclose the reason for not meeting the prescribed amount for corporate social responsibility (CSR) requirements in the report for 2021. Although the company spent Rs. 0.11 crore towards CSR activities in year 20-21, it did not comply with CSR provisions for year 2021-22 due to a rule omission. The company cannot guarantee immunity from regulatory action or penalties in the future regarding CSR non-compliance.
Kay Cee Energy & Infra Limited has engaged in related party transactions with its promoter and promoter group, amounting to Rs. 1.79 crores, Rs. 15.97 crores, Rs. 7.931 crores, and Rs. 5.552 crores for different periods. While the company asserts that these transactions adhere to applicable laws, there is no assurance that more favorable terms could not have been obtained without such related party involvement.