Indian Metals & Ferro Alloys Ltd Management Discussions

Industry Structure and Developments

Ferro Chrome is typically produced in submerged electric arc furnaces with chrome content ranging from 50-70% and imparts the non-corrosive property to stainless steel where more than 80% of the total production is directed. Hence, it is a critical raw material for the stainless steel industry.

Global Chrome Ore Industry

In CY2023, global chrome ore production reached 39.66 million tonnes. South Africa, boasting the worlds largest reserves, contributes over 60% to the global output while India ranked third in production volume at 3.33 million tonnes.

Global chrome ore production

39.66 million tonnes

Chrome ore world production 2023

Source: ICDA & World Stainless Steel.

High Carbon Ferro Chrome production

The total production of ferro chrome in CY2023 was 15.35 million tonnes, an increase of 4.7% as compared to the previous year. China continues to be the worlds largest producer with an output of 7.36 million tonnes in CY2023 while Indian production increased by 17.8% to 1.52 million tonnes. (Source: ICDA)

Global Ferro Chrome production:

15.35 million tonnes

Ferro chrome world production 2023

Global ferro chrome market forecast

The value of the global ferro chrome market stood at $16.92 billion in 2023 and is expected to grow to $17.81 billion in 2024. Further, it is projected to grow at a Compounded Annual Growth Rate (CAGR) of 5.1% to $26.55 billion in 2032. (Source: Fortune Business Insights)

India

Ferro Chrome output in India surged by 17.8% in CY2023 to reach 1.52 million tonnes with production mainly concentrated in Odisha and pockets of West Bengal and Andhra Pradesh. The emphasis on infrastructure development has spurred domestic demand for stainless steel, consequently driving up the need for ferro chrome, while the export market remains significant. Looking ahead, Indias per capita consumption of stainless steel is poised to rise due to escalating urbanisation trends.

Stainless Steel Industry

Global

In CY2023, global melt shop production of stainless steel surged by 4.6% year-on-year, to 58.44 million tonnes according to the World $tainless $teel Association report. The industrys ongoing commitment to innovation and sustainability coupled with investments in new technologies has been instrumental in this growth. The prospects for the stainless steel look promising as production is expected to increase on the back of demand from sectors like infrastructure, wind power, and electric vehicles.

Region-wise stainless-steel production (in million tonnes)

Region	2023	2022	% Change (y-o-y)
Europe	5.9	6.29	-6.20%
USA	1.8	2.017	-9.6%
China	36.67	32.575	12.6%
Asia (excluding China and South Korea)	6.88	7.41	-7.2%
Others	7.16	7.557	-5.2%
Total	58.44	55.855	5.77%

Source: world stainless report

Chinese stainless steel producers maintained their output through most of 2023 but, with domestic demand languishing, this compelled them to prioritise exports which went up by around 30%. According to Polaris Market Research Report, the global stainless steel market was valued at $ 121.72 billion in CY2023 and is projected to grow at 8.5% CAGR during the period 2024-2032. According to the World $teel Organisation, stainless steel is poised to become increasingly prevalent in future applications such as suspension systems, chassis, fuel tanks, bodywork, and catalytic converters. Moreover, demand from the construction sector is also expected to grow.

India

India continues to stand out in the global stainless steel industry with demand projected to surge by 7.7% in 2024, significantly outpacing the global growth rate of 1.9%. This optimistic forecast made by the World $teel is based on robust expansion in Indias construction sector which is bolstered by government infrastructure spending and a rebound in private investments.

According to a Future Market Insights study, the stainless steel industry in India has attained a value of $17.45 billion in 2024 and is poised for significant growth on the back of a rapidly growing economy. By 2034, Indias stainless steel industry is projected to achieve revenues of U$D 31,905.2 million, reflecting a growth of over 1.8 times its current level.

The installed capacity of the stainless steel industry in India is estimated to be 6.6 - 6.8 million tonnes and a wide array of products are manufactured although overall capacity utilisation has been sub-optimal. Projections from a CRI8IL Research Report indicate a strong growth trajectory for stainless steel demand culminating in volumes reaching 4.6 - 4.6 million tonnes by 2025. As the Indian economy grows, so too will stainless steel demand with sectors like infrastructure, construction, and manufacturing contributing the most; consequently, demand for ferro chrome too will rise.

Source: Future Market Insights. Mordor intelligence report, and Joint Plant Committee Report for March

Crisil: Stainless Steel Vision 2047 Research Document

Outlook

Indias rise as an economic power will have a positive impact across the spectrum of economic activity; however, driven by large outlays for government capex in particular which stood at a record Rs 11.11 trillion in 2024-25 as well as a rebound in private investment, the metals and alloys sector is expected to benefit substantially. Your company is well placed to benefit from the broad macroeconomic trend both by way of expanding its core business as well as by venturing into areas where its managerial capabilities and strong financials can be appropriately leveraged.

Expected Impact of the EU Carbon Border Tax System

The introduction of the EU carbon border adjustment mechanism is expected to affect Chinas steel exports to Europe, potentially leading to increased taxes and decreased export volumes. This is due to the higher carbon emission intensity of Chinas steel industry compared to European standards.	Chinas steel sector is poised to respond proactively by advancing green, low-carbon transformations and refining industrial, energy consumption, and trade frameworks. This entails boosting the utilisation of electric furnace steel, and creating research and development in innovative, low-carbon technologies.
Furthermore, carbon trading is advocated as a viable strategy to address the challenges posed by the Carbon Border Adjustment Mechanism (CBAM). This involves progressively incorporating the steel industry into the national carbon market and enhancing the domestic carbon pricing mechanism.	The iron and steel sector can bolster the adoption of carbon emission accounting and verification standards by harmonising them with global benchmarks. This includes analysing the EU carbon market and tariff structure, as well as accelerating the establishment of a robust carbon emission accounting standards framework.

IMFA at a Glance

Indian Metals & Ferro Alloys Limited (IMFA) stands as Indias foremost fully integrated producer of ferro alloys. It has emerged as a leading producer of ferro chrome globally which is recognised for its quality and sustainable manufacturing practices. IMFA has also cultivated enduring partnerships with customers worldwide through a singular focus of reliability and cost competitiveness.

Integrated Operations

IMFAs fully integrated business model leads to cost competitiveness and reliability thereby making it resilient in a cyclical industry. The Sukinda and Mahagiri chrome ore mines situated in Jajpur District, Odisha are the start of the value addition chain which is complemented by captive power generation including solar.

Certifications and Standards

IMFA is dedicated to meeting industry standards, with third-party certification validating the quality of our manufacturing operations. Our products adhere to ISO 9001:2015 Quality Management System standards, ensuring excellence throughout.

Marquee Customers

IMFAs dedication to quality has earned it a strong global reputation. Our esteemed clientele includes multinational giants like POSCO (South Korea), Tsingshan Group (China), E-United Group (Taiwan), and Marubeni Corporation (Japan) alongside prominent domestic stainless steel producers such as Shri Balaji Industrial Products Limited, Rimjhim Ispat, BRG Steel, and AIA Engineering among others.

Business Segment Review

Ferro Alloys

IMFAs core smelters business is largely export oriented at the moment with more than 90% of ferro chrome output being sold in South Korea, China, Taiwan, and Japan. Through long-standing relationships with stainless steel producers and a strong customer orientation, the Company benefits from assured off-take resulting in stable operations.

Power

Captive power generation with a total capacity of 204.55 MW (including 4.55 MWp from solar) ensures uninterrupted and reliable power supply which is important since ferro chrome is power intensive. Future requirements will largely be met through hybrid renewable energy which will enable the Company to meet its target for energy transition.

Power Generation & Sales

(in million units)

IMFA operates two chrome ore mines which are exclusively captive consumption in line with its stated policy to prioritise value addition. Significant investments in advanced equipment and technology demonstrates the Companys focus on sustainable mining practices along with highest standards of safety.

Chrome Production

(in tonnes)

	FY 2023-24	FY 2022-23	FY 2021-22	FY 2020-21	FY 2019-20
Revenues from operations	2,780.17	2,676.39	2,602.95	1,844.23	1,611.94
Other Income	262.78	25.66	18.06	51.30	21.98
Total Income	3042.95	2702.05	2,621.01	1,895.53	1,633.92
EBITDA (before exceptional items)	648.57	514.48	828.83	389.03	111.36
Profit/(Loss) after tax	390.48	225.73	507.87	166.75	(68.52)
Cash Profit	468.51	333.01	618.09	331.61	35.69
Earnings per share (Rs)	72.37	41.84	94.13	61.81	(25.40)
Cash EPS	86.83	61.72	114.56	122.92	4.55
Net worth	2,102.02	1,858.86	1,700.86	1,226.69	1,068.48
Capital Employed	2,182.11	1,970.33	1,945.85	1,782.63	1,660.10
Fixed assets [including Capital Work in Progress (CWIP)]	1,075.02	1,038.84	991.59	1,017.21	1,094.21

Key Ratios and Margins

	FY 2023-24	FY 2022-23	FY 2021-22	FY 2020-21	FY 2019-20
Debtors turnover ratio	32.20	23.33	22.04	20.00	49.34
Inventory turnover ratio	2.16	2.30	2.06	4.14	3.74
Interest coverage ratio	15.27	6	11.70	5.12	0.25
Current ratio	2.55	2.09	1.61	1.56	1.28
Debt equity ratio	0.10	0.20	0.30	0.32	0.41
Operating profit margin (%) (before exceptional items)	20.53	15.34	27.70	15.93	1.53
Net profit margin (%) (after exceptional items)	14	9	20	9.04	(4.24)

Change in Financial Ratios

	FY 2023-24	FY 2022-23	Change (%)	Significance
Inventory turnover ratio	2.16	2.30	6.09	Not Significant
Interest coverage ratio	15.27	6.00	154.62	Due to reduction in short term borrowings and increase in profit.
Current ratio	2.55	2.09	22.13	Not Significant
Operating profit margin (%) (before exceptional items) Net profit margin (%) (after exceptional items)	20.53% 14%	15.34% 9%	33.88 66.43	Due to higher profit earned by the Company during the year on account of lower operating costs. Due to increase in Net Profit on account of reduction in operating costs.
Return on net worth (%) (after exceptional items)	18.58%	12.14%	52.98	Due to higher profit earned by the Company during the year on account of lower operating costs.

Source of Funds

Own Funds

IMFAs net worth was Rs 2,102.02 Crore as on 31^st March, 2024 vis-a-visRs 1,858.86 Crore as on 31^st March, 2023.

Equity

The Company has 5,39,54,106 equity shares with a face value ofRs 10/- per share in the market. Its promoters hold 58.69 % of them as on 31^st March, 2024.

Reserves

IMFAs reserves stood atRs 2,048.06 Crore as on 31^st March, 2024 compared toRs 1,804.90 Crore as on 31^st March, 2023. Free reserves constitute 94.14% of the total reserves.

Long Term Borrowings

Long-term borrowings stood at Rs 1.57 Crore as on 31^st March, 2024 as againstRs9.68 Crore on the same date of the previous year, as detailed here:

	FY 2023-24	FY 2022-23
Long-term loans	0.20	5.54
Current maturities of long-term obligations	1.37	4.14
Lease obligations
Current maturities of finance lease obligations/Lease payables	1.65	2.02
Long-term maturities of finance lease obligations/Lease payables	40.87	44.48

Application of Funds

Gross Block

The Companys gross block fixed asset stood atRs 1,888.76 Crore as on 31^st March, 2024 vis-a-visRs 1,787.69 Crore on 31^st March, 2023.

Capital Work In-Progress

IMFAs capital work-in-progress wasRs 77.88 Crore as on 31^st March 2024 as againstRs69.74 Crore as on 31^st March, 2023.

Risk Management

IMFA meticulously identifies and categorises potential risks using a framework based on likelihood of occurrence and impact and devises appropriate mitigation measures. The Risk Mitigation Framework not only safeguards against risks through consistent monitoring but also optimises the utilisation of opportunities, ensuring a balanced approach to risk management and opportunity exploitation.

Risk Type	Description	Mitigation Strategy	Outlook
Industry risk	The steel industry operates in cycles, meaning that its demand and profitability can be affected by unforeseen macroeconomic developments. In the event of a slowdown in demand, the industry may experience underutilisation of assets and lower realisation, resulting in a negative impact on profitability.	IMFAs integrated operations have allowed the company to achieve the status of being one of the worlds most cost-efficient producers of ferro chrome. This has enabled the Company to maintain profitability, even during periods of lower realisations. Additionally, IMFA is dedicated to establishing and nurturing strong relationships with its customers to position itself as their preferred supplier.	Long term
Raw Material risk	Unanticipated events and geopolitical conditions can cause raw material prices to fluctuate sharply, which in turn, can lead to increased costs.	To ensure a continuous supply of ore, the Company has made investments in captive mines located in Odishas Sukinda and Mahagiri areas. Additionally, the Company has established its own thermal and renewable solar power generation capabilities. By entering into long-term contracts with vendors, the Company is able to maintain a steady supply of other raw materials, such as low ash/low phosphorous coke.	Short to Long term
Regulatory risk	Failure to comply with regulatory frameworks or delays in compliance can significantly impact the business. Furthermore, changes in legislation or delays in regulatory approvals can also have adverse effects on the Company.	The Company has a highly skilled and committed team that is responsible for ensuring compliance and closely monitoring any changes in legislation. By implementing a strong internal control system, the Company is able to operate efficiently, optimise its use of resources, and maintain compliance with all relevant laws and regulations.	Medium term
Operational risk	Unexpected equipment failures or breakdowns can cause disruptions in the Companys operations. Inefficient operations resulting from these disruptions can lead to an increase in production costs and undermine the Companys competitive position.	IMFA has put in place a reliable maintenance schedule for its equipment and implemented rigorous safety measures. In addition, the Company places great importance on improving efficiency through the use of technology upgrades and process modifications. Also it has taken an Industrial All Risk insurance policy which covers equipment breakdown and loss of profit.	Short term
Exchange rate risk	As IMFA mainly serves the export market, its profit margins may be affected by the significant fluctuations in currency markets.	The Company uses a combination of forward contracts, derivatives, and other strategies to hedge its contract proceeds.	Short term

Human Resource Management

The HR Department is a key pillar of the organisation which plays a pivotal role in fostering a dynamic and inclusive workplace culture that nurtures talent and drives organisational success.

At IMFA, the HR team is dedicated to attracting, developing, and retaining top talent, ensuring that we have the right people in the right roles to achieve our strategic objectives. Through strategic workforce planning, talent acquisition, performance management, training and development initiatives and employee engagement programmes, we strive to create an environment where every individual can thrive and contribute their best.

With a focus on innovation, collaboration and continuous improvement, our HR practices are designed to align with the companys values and support our employees in reaching their full potential. As we grow and evolve, our commitment to excellence in human resource management remains unwavering, serving as a cornerstone of our organisational success.

Total employees across all locations of IMFA during FY 2023-24

The HR department at IMFA launched several strategic initiatives during FY 2023-24, focusing on employee engagement, learning, and performance management to actively practice the vision of promoting an engaged workforce through communication, collaboration, and credibility.

Our human resource initiatives are categorised under four primary areas of transformation:

Nurturing Dynamic & Inclusive Workplace Culture Learning and Development Employee Engagement and Motivation Performance Management and Retention

Nurturing Dynamic & Inclusive Workplace Culture

IMFA believes in fostering a dynamic and inclusive workplace culture where every employee feels valued and respected.

Interventions themed #REKINDLE - Be the Change, were conducted for all employees in the E5 and above levels.

The much-awaited Outbound Training Interventions on the same theme were conducted for employees in the ES to E4 levels where 72 enthusiastic individuals participated with a galore of zeal and passion.

Equal opportunities of growth and development were provided to all employees based on merit, ensuring a fair inclusive environment.

IMFA committed to diversity in hiring by actively seeking candidates from variety of backgrounds, experiences and perspectives thus creating a more inclusive and representative workforce.

Learning and Development

At IMFA, our commitment to growth transcends mere business objectives; it lies at the core of empowering our people. Learning & Development is not just a programme; it is embedded as a culture within our organisation. We offer several training opportunities, spanning technical, behavioural, and leadership development, tailored to individual needs and career aspirations. Our emphasis on continuous learning fuels innovation, adaptability, and personal growth, empowering our team to excel in their roles and propel the Company forward.

Employee Training Initiatives

Interventions on Positive Intelligence

¦ One Day Workshops on Developing Efficacy at Workplace

Sessions on "Emotional Dynamics & People Mastery for the Mid-level executives

Behavioural sessions on Stress Resilience for Result Orientation & De-Mystifying Mindfulness - Biohacking your Brains Health for executives across all our locations

Several functional, technical and skill development workshops and interventions were conducted for employees across all levels at all locations thus ensuring that the employees are updated and upgraded in their skill sets, knowledge and competencies

14,000 training manhours achieved in the year through 645 training interventions

Employee Engagement and Motivation

Beyond traditional methods, we continuously innovate our employee engagement strategies, leveraging technology, mentorship programmes and cross-functional projects to create a dynamic and inclusive workplace. By nurturing a sense of purpose, belonging and empowerment, we inspire our team to passionately contribute to our collective success, driving excellence in everything we do.

One of the keys to IMFAs success in augmenting the talent life cycle and engagement initiatives is our values-based culture and rich heritage. Our HR team is committed to collaborate with employees and provide opportunities for them to excel in their career through a range of engagement activities and initiatives such as:

Employee wellness programmes: At IMFA we prioritise employee well-being and organised regular health camps to promote preventive healthcare and ensured our teams holistic wellness. These camps provided valuable health screenings, consultations, and resources, fostering a healthy and vibrant workforce.

Employee engagement initiatives: IMFA celebrated diversity and camaraderie through events like Ethnic Day - where our employees showcased their cultural heritage and Sports Carnival - fostering teamwork and healthy competition. Additionally, we organised a childrens programme, fostering a family-friendly atmosphere and created lasting memories for our employees and their families.

Plant-wide employee recognition programme:

328 employees received Long & Dedicated Service Award recognition through this programme.

IMFA Group Student scholarship: Eight students were awarded with the IMFA Group Student scholarship in FY 2023-24

Prof Ghanashyam Dash Scholarship for Higher Education: 6 students were awarded scholarship in FY 2022-23 out of which 2 students are employees children.

Performance Management and Retention

Our HR team prioritised performance management and retention planning for the FY 2023-24. To ensure clear job descriptions and emphasise the importance of meaningful work, specific training modules were developed.

Performance Management System (PMS) Initiatives

? Mid-year and end-year review workshops to create awareness of the PMS amongst employees.

PMS goal-setting workshops to help individuals set VALUE goals for the financial year 2023-24.

All engagement & learning initiatives led to a low attrition rate of executive i.e., - 7.72%.

Health, Safety and Environment (HSE)

Ensuring the well-being and safety of employees remains IMFAs paramount concern. The Companys commitment to stringent safety protocols reflects its pursuit of a zero fatalities goal.

Health and Safety

The implementation of the Alike Key, an access control device in compliance with OSHA Standard 29 CFR 1910.147, at the PBU restricts unauthorised entry into electrical areas.

The New Bay Extension Project at the 120 MW power plant Switch Yard 115 MVA (132/33 KV)was successfully completed with a focus on safety. Crane bay extension work at Unit II completed safely.

? A full-scale mock drill was conducted at Unit-2 in collaboration with the National Disaster Management Authority, Ministry of Home Affairs, Local District Administration, and Factories and Boilers on 11^th January, 2024.

Mock drills, assessing emergency preparedness, are conducted biannually atTherubali with the participation of external observers, District Crisis group members, and mutual aid partners from neighbouring industries.

? Third-party health check-ups were conducted to evaluate the condition and lifespan of all five EOT cranes installed at TCP-1, 2, & 3 cast houses and refractory bays.

Safety captains, comprising worker representatives and members of the statutory safety committee, were introduced to document unsafe acts and conditions, with their observations reviewed by the site head.

Quarterly housekeeping audits are performed to ensure cleanliness and safety standards are maintained.

The implementation of the Automatic Tyre Inflation System at both department and contractor workshops in SMC & MMC automatically inflates to the target PSI when attached to tire positions.

New generation Hydra equipment is deployed across all IMFA locations, offering benefits such as stable centre of gravity, clear operator visibility, steering operation, safe load indicators, auto hoist & load limit switches, and availability of outriggers.

The adoption of an Air Filter Cleaning System eliminates the risk of inhaling harmful dust during air filter cleaning using compressed air.

Environment initiatives

Demonstrating our dedication to environmental preservation and sustainability, our Company actively champions eco-friendly practices throughout our operations. We strive to reduce our ecological footprint, preserve precious natural resources, and create an environment that is both pristine and sustainable, through a series of targeted initiatives across our diverse divisions.

Choudwar

? For safer operation at 30MW Power plant, off gas booster fan has been replaced with flame proof type.

To improve dust collection efficiency, Collecting and Emitting electrodes have been replaced in ESP field - 1 of 30 MW power plant.

To measure flue gas flow, velocity & temperature, online analysers were installed and commissioned in Boiler - 1, 4 and 5 ducts.

Dust extraction system was installed at 30 MW CHP screen house to minimise fugitive dust emission during coal feeding.

Therubali

We have converted LDO to LPG fuel in the briquette plant for Chrome ore drying and also reduction in LDO consumption of 360KL/annum by waste heat recovery method from hot slag results in GHG emission reduction.

We have also Installed new FDC (Forced Draft Cooler) in plant-ll to improve baghouse efficiency.

We are using battery operated four-wheeler industrial platform truck for movement of materials inside the plant premises.

? Automatic water controller device was installed in overhead tanks to restrict overflow of water.

Sukinda and Mahagiri Mines (Chromite)

At Sukinda Mines (Chromite), erosion control and waste dump stabilisation efforts have been implemented through the installation of 5,600 square meters of coir-mating on the 2^nd stage OB dump slope. We also applied 4,936 square meters of grass thatching on the 1^st stage OB dump slope for erosion control and waste dump stabilisation purposes at the same facility.

Furthermore, a total of 3,035 saplings have been planted across the dump slopes and backfilling areas of both Sukinda and Mahagiri Mines, contributing to waste dump stabilisation initiatives and creating ecological restoration efforts.

Sustainable Operations with fly ash utilisation

IMFA operates three types of power plant boilers at its Choudwar facility in Cuttack District: 30MW, 50MW, and 120MW. The 50MW boiler produces ash that is unsuitable for traditional construction materials like bricks and blocks, so it is repurposed for land reclamation. Most of the ash generated in 50MW power plant is being used for reclamation of waste degraded land. After filling it with ash, it is covered with soil and plantation is carried out. In this process, a degraded land is turned into a green land.

The 30MW and 120MW CFBC boilers yield ash, 90% of which is fly ash. This fly ash is directed to IMFAs two Brick Manufacturing Units, each capable of producing 100,000 bricks per day. Additionally, IMFA runs a Low-Density Aggregate manufacturing unit with a yearly capacity of 60,000 tons.

IMFA not only utilises fly ash internally but also supplies it to external brick, cement, and Ready-Mix concrete industries, ensuring compliance with all necessary authorisations. Transporting fly ash is facilitated using tarpaulin-covered vehicles. During the year, IMFA utilised 574,841 tonnes of ash which was generated.

IMFA also got all statutory clearance to use 50,000 MT/ month of the Ash generated from power plants at our Mahagiri Underground mine stope void filling in place of river sand.

Awards and Recognition for HSE Best Practices

IMFA and its units have been honoured with numerous awards and acknowledgments for their exceptional performance in safety, energy preservation, mineral conservation, and overall operational excellence.

Choudwar Unit:

? Kalinga Safety Excellence Gold Award for the performance year 2022 in ferro chrome sector unit-1 and power plant sector below 200 MW, Unit-Ill in November 2023.

¦ Odisha State Energy Conservation Award for the performance year 2023 in Captive Power Plant sector.

¦ Received the Energy Conservation Award from Cll - Eastern Region for the performance year 2023

Received the State Level Electrical Safety Award 2023 for Best Electrical Safety Practices, on the eve of 4^th NESW - 2023 organised by Energy Department, Govt, of Odisha.

Therubali Unit:

Bagged the prestigious Gold in Kalinga Safety Excellence Award (Large-Scale Industries, Ferro Alloys Sector) at Odisha State Safety Conclave 2023.

¦ Received the Cll Gold award in Best case study on resource efficiency in 2024 during 5^th Cll National EHS Circle competition.

Sukinda Mines:

Got the Kalinga Environment Excellence Award in the 5-Star Category, for the Performance Year 2022" in June 2023.

Got Kalinga Safety Excellence Award - in Gold Category for the Performance Year 2022 at National Safety Conclave-2023 held in December 2023 at Bhubaneswar.

Internal Control Systems

The Company has established an Internal Control System that aligns with its size, scale, and complexity of operations. This comprehensive system facilitates efficient operations, ensures optimal use of resources, protects assets, and ensures compliance with relevant

laws and regulations. These control measures enhance the Companys resilience and prevent losses or unauthorised use of assets through robust checks and balances.

The Internal Audit function has a clearly defined scope and authority, and the Company has engaged an independent firm of Chartered Accountants to perform the internal audit function. The management and audit committee of the Board oversee and recommend corrective actions based on the audit findings to enhance operations.

Cautionary Statement

The Management Discussion and Analysis section of the document may contain forward-looking statements regarding the Companys objectives and predictions, as defined by relevant laws and regulations. It is important to note that the actual results may differ significantly from these statements due to various risks and uncertainties. These risks and uncertainties may arise from economic and political conditions in India, fluctuations in interest rates and exchange rates, and the impact of new regulations and government policies on the Companys business and its ability to execute its strategies. The Company does not guarantee the accuracy of these forward-looking statements and does not commit to updating them.