Page 16 - Apraava Energy Report_01-73

16 Energy in action

Economic Performance

Management conducted a

rigorous examination of its

liquidity position early this year

and is monitoring it on a regular

basis. It has also assessed the

recoverability of carrying values

of Property, Plant & Equipment,

and Trade Receivables, and no

serious concerns have been

discovered.

In March 2020, our business model’s resiliency and strategy was
severely affected as a result of COVID-19. Apraava Energy has
adopted measures to ensure business continuity with minimal
disruptions. Following COVID recovery, large-scale power source
development, primarily from oil thermal power generation
together with an expansion of transmission infrastructure, is
being promoted to meet the rising demand for electricity
accompanying rapid economic growth.

Impact of Covid-19 on financial
performance in FY 2020-21

Apraava Energy is predominantly engaged in the business of
generation and sale of electricity. The Ministry of New and
Renewable Energy (MNRE) has issued a clarification notice
granting ‘must-run’ status to renewable energy generating
stations. Thus, since electricity has been categorised as an
essential service, generation sites are operational. Consequently,
the Group has been able to honour all its commitments under
various Power Purchase Agreements (PPAs) to ensure
uninterrupted supply of electricity.