Steelman Telecom Ltd Management Discussions

The telecommunication industry is going through a transformational phase of development - to acclimatize itself per the new technological and cloud trends. The focus was on Communication Technology (CT) which marked the first wave of the information era. The second phase was the internet phase which started approximately around the year 2000. The industry realigned itself around horizontal solutions during this phase. It was the time of e-commerce and portals. The focus was on Communication Technology (CT) which marked the first wave of the information era. The second phase was the internet phase which started approximately around the year 2000. The industry realigned itself around horizontal solutions during this phase. It was the time of e-commerce and portals. After 2006, the cloud began taking shape and this marked the third phase of transformation in the telecommunication industry. Come 2023 and Steelman is in the midst of the era of cloud, where a new world of opportunities has opened up for the carriers. It is quite evident that this era is unstoppable and there is no escape.

In Union Budget 2022-23 the Department of Telecommunications was allocated Rs. 84,587 crore (US$ 11.11 billion). Revenue expenditure was allocated 36% and capital expenditure 64%. FDI inflow in the telecom sector stood at US$ 39 billion between April 2000-September2022.

There have been some long-term shifts in market dynamics in the telecom industry. Network traffic growth rates have accelerated; new business models emerged; and cloud services matured and spread to new verticals, applications and customer sizes. Networks are more important than ever. Revenue growth rates and profitability in the three segments. The Government of India plans to set up one hundred labs for developing applications using 5G services in engineering institutions to realize a new range of opportunities, business models, and employment potential.

GLOBAL TELECOMMUNICATION MARKET

The global telecom services market size was valued at USD 1,806 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030. Rising spending on the deployment of 5G infrastructures due to the shift in customer inclination toward next-generation technologies and smartphone devices is one of the key factors driving this industry. An increasing number of mobile subscribers, soaring demand for high-speed data connectivity, and the growing demand for value-added managed services are the other potential factors fueling the market growth. The global communication network has undoubtedly been one of the prominent areas for continued technological advancements over the past few decades. The market for telecom services has also witnessed significant improvements in data speeds, from Global System for Mobile communications (GSM) and Code Division Multiple Access (CDMA) to Third Generation (3G), Fourth Generation (4G), and now the commercialization of Fifth Generation (5G) networks. The Asia Pacific is expected to hold the largest market shares by 2029. E-commerce and retailer buy-in platforms, Smartphone ubiquity, and investments in 5G networks are driving the regional market. China, Japan, and India have all contributed significantly to regional market growth. China and India were listed among the top internet users worldwide in 2020, according to statistics issued by the International Telecommunication Union (ITU), with over 854 million and 560 million users, respectively.

FUTURE INDUSTRY SCENARIO

India is expected to have a digital economy of $1 trillion by 2025, Indias 5G subscriptions to have 350 million by 2026. The telecommunications industry is divided into following subsectors: Infrastructure, Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G, Telephone service providers and Broadband. As per GSMA, India is on its way to becoming the second-largest smartphone market globally by 2025 with around 1 billion installed devices and is expected to have 920 million unique mobile subscribers by 2025 which will include 88 million 5G connections. Over the last thirteen years, the Indian Telecom Tower industry has seen a significant growth. An average of29,000 new towers have been built per year. It is also estimated that 5G technology will contribute approximately $450 billion to the Indian Economy in the period of 2023-2040. Currently, 5G Spectrum Trials are being conducted in India to ensure proliferation of 5G technology across the country. By2025, India will need 22 million skilled workers in 5G-centric technologies such as Internet of Things (IoT), Artificial Intelligence (AI), robotics and cloud computing.

BUSINESS MODEL OF STEELMAN TELECOM LIMITED

Your Company is recognized as service providers to telecom industry and committed to provide quality services to help grow and maintain the telecom industrys expansive communications infrastructure. Your company have a dedicated team comprising of mainly highly skilled technicians and engineers.

We provide services to various telecom players categorized as mentioned below:

Spectrum of Services:

Your organization is a system integrating Company providing highly skilled services to the telecom players. The serv provided to the clients are as below.

1. Telecom Implementation Service

Installation, Commissioning & Integrating of telecom equipment along with switches and routers including all the activities needed to make a base transmission system operational and to function as a part of a telecommunication network. Steelman specialized in installation of Microwave Antenna, GSM (Global System for Mobile) Communications Antennas along with BTS (Base Transceiver Station) / & other network related equipment at cell sites to provide the best coverage to the user. The growth in mobile subscriptions and data traffic place an increasing need for upgrading / modernizing networks. This requires regular installation of new equipment and swapping of equipment for upgradation. Through the highly trained engineers and technicians Steelman are able to do efficient and effective implementation.

2. Radio Frequency Services (RF)

RF testing simulates multiple radio frequencies across the spectrum to ensure devices with integrated wireless technologies function seamlessly. The safe and effective use of radio frequencies is crucial for all devices with integrates wireless technologies. Moreover, high quality of services in mobile networks is the prerequisite for the commercial success for an operator. In the process of maintaining quality network for the user, continuous optimization is a process which focuses on the checking network quality and continuously take actions for repairs and adjustments as needed. Following are the operational activities which is supported by us to maintain the desired quality of the network.

1) Pre and Post site launch Key Performance Index (KPI) Single Cell Function Test (SCFT) & Single Site Cluster Verification Test (SCVT)

2) Drive Test Analysis

3) Voice Over Long-Term Evolution (VOLTE) Performance Analysis

4) Dropped Call Analysis

5) Interreference Analysis

6) Traffic and Throughput Analysis

7) Worst Cell Analysis

3. Engineering Procurement Construction Managements (EPCM)

Your Company offers end-to-end solutions to their clients on the EPCM Projects. Clients engage Steelman as their contractors where Steelman deploys engineers and skilled laborers to deliver various projects as per clients requirement. Steelman are engaged as a specialist contractor for all types of Green Field and Brown Field projects since it has the capacity and capability of performing various services required to execute and complete the projects timely and with quality. The client can structure the partnership in the way that best suits the interests of their project. Steelman are creating Warehouses, Tower Sites, NOC Centers, Consumer Experience Centers, Showrooms etc. which are all covered in Companys EPCM business tower.

4. Managed Services (MS)

Managed services or Operation and Maintenance services include day-to-day operation, upkeep and upgradation of network equipment to ensure that the performance is maintained at the agreed SLA (Service Level Agreement) and KPI levels. Your Company support OEMs and Telecom players in management of their Cells Sites and NOC infrastructure. STL have a team of well-trained technical resources who can ensure 99.5% Uptime of the network for the Telecom players with the highly trained work force, the operators are increasingly engaging Companys services in maintaining the network by outsourcing the entire geographies while keeping a tight watch on the SLA (Service Level Agreement) and KPIs that are agreed upon. Your Company manage software and hardware upgrades, NOC Management, Preventive and Corrective Management, routine breakdown maintenance for all the Active and Passive elements that are installed at the cell site. Steelman is also one of the largest O&M Service provider for the Large facilities which are very critical for the Telecom players as all the network is monitored through these facilities. Your Company support by providing highly experienced manpower at these facilities and keep a service assurance of 100% uptime on a 24/7/365 basis.

5. New Generation Technology

Your organization offers new generation tech offerings in Managed Services by using Artificial Intelligence and Services Automation. These services use state-of-the-art automation where the customer gets cost reduction and better achievement of the KPIs. Your Company are entering the era of 5G and the Company are not only enabling the 5G network but working very closely with the clients for enabling smarter phones and guide the user with new immersive experiences, such as VR and AR, with faster, more uniform data rates, lower latency, and cost-per-bit. Steelman are enabling services that can transform industries with reliable, available, low latency links like remote control of fussy infrastructure, vehicles, and medical procedures. 5G can seamlessly connect a massive number of embedded sensors in virtually everything through the capability to scale down data rates, power, and mobility to provide an extremely lean/low-cost solution. With 5G services in the horizon your Company geared to cater to cloud services across sectors such as:

• Big Data and Data Science Services

• Data Science Solutions

• Services Integration on 5G networks

• Security Solutions for Cloud and 5 G Networks

• Internet of Things (IoT) Services

COMPETITIVE STRENGTHS

Your organization believe that the following competitive strengths of the company ensure the survival and help to attain a prominent position in the market.

Experienced Management and skilled team

Your Company have a strong and experienced Management and workforce of skilled, trained, well equipped and expertise employees that has led the organization on the path to success. The promoters industrial knowledge and vision also gives the Company a competitive advantage and the promoters are the guiding force behind the operational and financial decisions of your Company. The promoters of the Company are responsible for the entire business operations of the Company along with an experienced team of professionals who assist them. This indicates the Companys ability to maintain business viability and steer the business though operational hurdles.

Established relationship with existing customers.

Your Company has developed strong and sustaining relationships with its clients and work with almost all the leading telecom operators in the country. The Company experienced of more than three decades, maintaining a track record of delivering timely services to the customers and demonstrating industry expertise consistently has helped the organization to nurture long-term relationships with them. Steelman has a history of high customer retention and derive a significant proportion of revenue from repeated business.

Comprehensive Telecom Support Services

Your Company have PAN India presence providing end to end comprehensive services for all telecom technologies. The Companys experienced project managers work hand-in hand with customers to manage project milestones and ensure delivery as per schedule and quality.

Timely Delivery of Projects

Your Company is focused on executing contracts on timely manner and always take pride in the timely completion of awarded projects. This enables Steelman to build trust and strong relationships with the clients. The experienced and trained workforce and the strong internal processes and skillful field teams developed by the Company over the years remain updated with client requirements ensuring quality performance in the field. Steelman keep on imparting training and incentivizing performance. They remain updated with client requirements, ensuring quality performance in the field.

BUSINESS STRATEGY

Enhance performance and competitiveness of existing business.

Your Company intend to utilize project management skills to access the growing demand for telecom projects in India. The Company plan to use the expertise to bid for many projects and deploy resources more efficiently and improve operating margins. Your Company believe that the speed and reliable network performance are critical components to the success of wireless service providers. The ability to assist customers in meeting their goals will contribute to the Companys success. Your organization intends to continue to focus on customer service with emphasis on increasing efficiency and effectiveness.

Strengthening our Technical capabilities

Your Company believes that the successful implementation of business and growth strategies depends upon the continuous efforts to keep abreast with the latest technology in telecom industry. Steelman intends to enter in the areas of latest upcoming new age technology i.e.,5G. This will enable the organization to further strengthen relationships with the existing clients. Most of the existing operators are upgrading to the next level of technology like 5G, requiring either setting up of new telecom infrastructure or up gradation of the existing one. This provides Steelman with an ideal opportunity to capitalize on our existing relationship with the clients and use the expertise to get projects involving new technical innovations.

Focus on Research and Development

Steelman believe constant research and development would enable your company to remain ahead of competition and to help customers to enhance their efficiency. Increased competition in the industry has forced telecom operators to continuously invest in technical innovation. Your Company intends to continue to focus on Research and Development to move up the value chain and to generate a deep understanding of the network requirements of customers. The understanding of the network requirements of customers and ability to execute effectively on those requirements are key to these efforts.

Expand geographical presence.

India has been on the forefront of telecom technology revolution. By virtue of this, telecom support service providers have garnered considerable experience and technical expertise. Huge telecom investments are happening in various nations to cater to growing demands and expectations of end users. Your Company intend to utilize the expertise and project management skills to access the growing opportunity in telecom projects outside India. Steelman are looking forward to entering new geographical markets, Asia Pacific Region in particular. Steelman are keen to explore possibilities to venture into such countries where margins are high and plan to target such countries where Steelman can leverage the capabilities effectively and expand revenue base.

Continue to recruit, retain, and train qualified personnel.

Your Company believe that the organizational growth of the Company depends on the ability to hire and retain experienced, motivated, and well-trained members of management and employee teams. Steelman intend to continue to recruit, retain and train qualified and skilled personnel. Steelman plan to empower management leadership to excel by decentralizing operational decision-making to those who best know the business needs of each plant, and to encourage the building of our knowledge base by sharing best practices from different locations.

INFRASTRUCTURE FACILITIES

Your Company is equipped with the latest computer systems, relevant software, uninterrupted power supply, internet connectivity, security, and other facilities, which are required for the smooth functioning of Companys business.

UTILITIES

Power

Companys projects are not power intensive. Power is required at site for running various machinery and equipment and for lighting. Generally, power requirement is met at site through normal distribution channel and is generally sourced from local bodies.

HUMAN RESOURCES

As the Company operates in the services sector and the employees are the key contributors to the business success, so your Company focuses on attracting and retaining the best possible talent. Steelman Telecom provides their employees an open atmosphere with a continuous learning platform that recognizes meritorious performance. Steelman constantly provide training to the employees to equip them to serve the clients in the best possible manner.

As on March 31, 2023, your Company are having 2198 permanent employees. The zone wise placement of employees is as below:

Zone	No of Employees
East	1281
West	232
North	597
South	88
Total	2198

RISK MANAGEMENT

Risk management is essential for telecom companies to identify and mitigate risks that could impact their business. Some of the most common risks faced by telecom companies include natural disasters, cyber-attacks, regulatory changes, and competition from other providers. By implementing robust risk management processes, telecom companies can protect themselves from these risks and keep their networks running smoothly.

Common risk mitigation strategies that we follow:

The enterprise makes a conscious decision to avoid dealing with a specific risk and its outcome by Identifying specific risks and suitable remedies or alternate processes to avoid potential negative outcomes; identifying all costs and unexpected costs for a project to avoid going over budget; and identifying qualified alternate members of a project team who can step in when necessary to avoid project delays.

When an identified risk emerges, the enterprise slows or terminates the event to an acceptable level before it progresses to the point where it can damage the business.

Control and manage risk.

Once risks are identified, assessed and prioritized, the enterprise deals with specific risk incidents, by establishing policies, such as physical security and data protection; developing business continuity and technology disaster recovery plans; and by track the time and costs spent on projects to ensure that delivery schedules are maintained, and cost overruns are prevented.

Transfer the risk.

Difficulties associated with a specific risk are transferred to another party, often insurance companies for coverage and reducing the likelihood of project mishaps by contracting a project management company to handle oversight of a particularly difficult project; and engaging the companys finance department to prevent project cost overruns.

INSURANCE

Your Company maintain a range of insurance policies to cover the assets, risks, and liabilities. As of the date of this Annual Report, your Company have obtained various insurance policies such as-

• Employee health insurance

• Employee compensation policy

• Office premises insurance

• Vehicle insurance

Your Company constantly evaluates the risks and gives effort to sufficiently cover all known risks. Steelman believes that the amount of insurance coverage presently maintained represents an appropriate level of coverage required to ensure that the business and operations of the Company are in accordance with the Industrial Standard. Although, many events could cause significant damage to Companys operations, or expose to the third-party liabilities or expose to certain risks and liabilities, which the Company may not be insured or adequately insured.

ENVIRONMENTAL HEALTH AND SAFETY PROCESS

Your organization ensures that the work or projects undertaken by the company does not cause undue environmental damage, put the workers health and safety at high risk, complies with applicable legislation, and follows best practices. The work undertaken by the EHS departments is motivated by several concerns:

a. The protection of workers, their health, and the natural environment

b. Compliance with legal requirements and regulatory standards

c. The increase in productivity, profit, and morale that comes with a safe and healthy workforce.

Years	Farm Tocli	Medical Fitness	First Aid	H&S Induction Training	Road Safety Awareness	Fire Mock Drill	Height Mock Drill	Covid-19 Awareness	HSW Inspection
2020-2021	609	1285	332	823	378	0	42	1159	899
2021-2022	861	1713	376	956	190	18	92	930	1052
2022-2023	1061	2568	741	1378	967	278	754	532	1687

Your Company conducts routine self-assessments of compliance status and effectiveness of EHS program implementation, conducts audits of operations on a routine, scheduled basis as follows for last three Financial Years.

CAPACITY AND CAPACITY UTILIZATION

Capacity and capacity utilization is not applicable to your Company since the business is not in the nature of a manufacturing concern with specified installed capacity.

COMPETITION

Your Company currently operate over PAN India basis for OEMs and telecom operators. Indian telecom industry is having unique position in terms of highly growing customer demand for quality connectivity and thereby raised competition between telecom operators for growth, leading to huge investment in the sector. With the scale of operations required for network expansion, telecom operators/ OEMs want to partner with service providers having national presence and end to end execution capabilities. Steelman face competition from local (unorganized) players and very few major players who provide end to end services, but the Company have a rare distinction of working with all major OEMs. To remain competitive in the market Steelman strives to improve the Technical Capabilities, Research and Development, strong relationship etc. The Companys experience and proven capabilities in providing solutions, gives an extra edge and brings it closer to the final user.

EXPORT POSSIBILITIES AND EXPORT OBLIGATIONS

As on date of the Annual Report, your Company does not have any export obligations.

LOCATIONS

Your Company operate business from the following locations. However, all awarded projects monitored and controlled from the registered office situated at Kolkata, West Bengal.

Sr. No.	Location	Purpose
1	RishiTower, PremisesNo.02-315, StreetNo.315, NewTown, Kolkata, WestBengal,700156.	Registered Office
2	Bhubaneshwar-Ground Floor, 1b, Nirmal Plaza, Block-A, 1a, ForestPark, Bhubaneshwar, Khordha, Odisha,751009.	Branch Office
3	Gurgaon -PlotNo. 25A,203A,Sec 18, ElectronicCity, Gurugram, Gurugram, Haryana, 122001.	Branch Office

GEOGRAPHICAL PRESENCE COLLABORATIONS/JOINT VENTURE

As on date of Prospectus, your Company do not have any collaborations/ Joint Venture with any parties.

MAJOR EVENTS AND MILESTONES ACHIEVED BY THE COMPANAY

Calendar Year	Particulars
2003	Company incorporated under the name and style of “Dwarka Prasad Bindal & Sons Hotels Private Limited”
2008	Changed its business activities and started the business of Telecom Service Providers.
2008	The name was changed to “Steelman Telecom Private Limited”
2009	Started rolling our 3G network in Pan India for all major telecom operators
2014	Introduced Managing and Maintaining Wireless MS
2018	Became one of the recognized service providers for rolling out 4G network for new telecom giant, a new entrant in Telecom Space
2022	Achieved a turnover of ? 100+ crores.
2022	Converted from Private Limited Company to Public Limited Company and the name has been changed from “Steelman Telecom Pvt Limited” to “Steelman Telecom Limited”.
2022	Company brought Initial Public Offering (“IPO”) on the SME Platform of BSE Limited.
2022	Diversifies business by introducing Electric Cab facility in the city under the brand name of “Snap E Cab” through incorporation of a subsidiary Company EC wheels India Pvt Limited.
2023	Attains strategic development and increase the footprints in electrification and automation by total
	Cars Deployed on Road: 400
2023	Company starts business expansion globally in telecommunication sector by incorporating foreign subsidiary in Ethiopia

ROAD AHEAD/OUTLOOK

5G networks will enable more detailed and efficient augmented and virtual realities, higher resolution video, fully autonomous vehicles, massive connected IoT networks (like smart cities), and more. 5G is the most highly anticipated change to the future of telecom. India can be a global leader for Open RAN technology in the coming times. With the 5G launch, open RAN will create a space for itself in the market. This is because the 5G service is based on the Open RAN technology.

BUSINESS DIVERSIFICATION ELECTRIC CAB BUSINESS

EC Wheels India Private Limited (A Subsidiary of Steelman Telecom Limited) was set up in February 2022 to support Environmentally friendly EV Vehicles for Public and Corporate Transportation in Kolkata. The launched services in August 2022, under the Brand - Snap-E Cabs. Snap-E cabs has signed a MOU with Tata Motors Limited for deploying over 5000 Cars in the city and currently the services spreads across Kolkata and over 350 Vehicles are plying on the roads of Kolkata. Companys B2B Services were launched in September and currently cater to some Global Telecom OEM manufacturers, 5 Star Hotels and FMCG Sectors with Corporate Offerings. Snap-E has also set up the largest EV Charging in Eastern India at Sector 5, Kolkata and couple of more State-of-the-art HUBs are under preparation to support the growth trajectory for EV Vehicles in the city. Head Quartered at Kolkata, Snap-E has major plans to induct over 5000 EV Vehicles at Kolkata and another 2000 - 5000 EV Vehicles in next 1-2 years across Eastern India. Snap-E operations are backed up by state- of-the-art systems and processes for proactive response management system focusing on customer delight Technology in Use.

Major Achievements in FY 22-23

i. Largest Fleet Operator in the East

ii. Expansion Plan in Major Cities in East and Other Cities

iii. Has the capacity to commit usage of EV Charging Facility

iv. Setting Up EV Charging for the City of Kolkata along jointly with KMC(Kolkata Municipal Corporation)

v. Have been selected by ER - Howrah Division to create similar infrastructure for India Biggest Railway Station - Howrah

vi. Partnered with Leading CPOs and OEMs in the EV Charging Space

vii. Operational Excellence & Availability of Ground Personnel to manage the Infrastructure.

BUSINESS EXPANSION

In Ethiopia, Steelman Telecom registered its first overseas subsidiary Company with name Steelman Installation services PLC. Company is a private limited company governed by the commercial code of Ethiopia. Stake of the Steelman Telecom Limited in this foreign subsidiary is 99% and 1% is of Local Partner.

Business Scope in Ethiopia:

According to report, Safaricom a recently launched Operator in Ethiopia, planned to build around 8000 number of telecom towers networks across the country in next 5 Years. Steelman planned to expand by setting up a subsidiary company in Ethiopia as there an excellent Business Opportunity there.

As the Operator Safaricom plan to provide the network across Ethiopia whole Country, your Company also plans to provide the end-to-end service to client across Ethiopia from centrally managed Location at Addis Ababa the Capital city of Ethiopia.

Details of Major Business Activities in Ethiopia:

Planned Supply and services and offering end to end service in Telecom as detail below but not limited with:

a. Site Acquisition (SAQ).

b. Technical Site Survey Report. (TSSR).

c. Detailed drawing Design

d. Drive Test and Network Optimization.

e. Civil Work (RTT, GBT, RDU).

f. Telecom Implementation. (TI).

g. Power Commissioning.

h. Gen Set Overhauling.

i. Operation and maintenance

CLIENT DETAIL IN ETHIOPIA: -

• Safaricom bifurcate the Network Rollout Project with two regions North and South of Ethiopia. North Region Network has been establishing by the NOKIA and South Region network has been establishing by the Huwaei.

• Both NOKIA and Huwaei together in first phase only setup 600 Towers out of approx. 8000 towers and expected to start the project by mid of June 2023..

• Steelman expected to get business directly from NOKIA and Huwaei.

DISCUSSION ON FINANCIAL PERFORMANCE

During the Financial Year2022-2023, the revenue from operations increased to Rs. 131.60/- crores from Rs. 100.47/-crores and the profit after tax increased to Rs. 5.57/- crores from Rs. 2.68/- crores compared to the last Financial Year 2021-2022. EPS has been increased from Rs. 3.54 to Rs.7.02. At the end of the financial year the Net worth of the company is Rs. 3983.21 Lakhs against Rs. 1531.06 Lakhs in the previous financial year.

The Net worth of the company as per Consolidated BS is Rs. 3508.98/- Lakhs against Rs. 1531.06/-Lakhs in the previous financial year.

However, the consolidated profit after tax decreased to Rs. 0.82/- crores from Rs. 2.68/- crores compared to the previous Financial Year due to loss incurred amounting to Rs. 4.75/- crores by its subsidiary Company M/S EC Wheels India Pvt Limited.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL FACTORS

In compliance with the requirement of the Listing Regulations, the key financial ratios of the Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as ‘significant changes), has been provided hereunder:

Sl. No.	Particulars	2022-2023	2021-2022
1	Current ratio	1.97	1.62
2	Debt Equity Ratio	0.35	0.97
3	Debt- Service Coverage Ratio	7.82	3.05
4	Return on Equity Ratio	20.21	19.20
5	Inventory Turnover Ratio	24.82	128.81
6	Trade Receivable Turnover Ratio	5.06	4.96
7	Working Capital Turnover Ratio	2.22	2.37
8	Net Profit Ratio	4.23	2.67
9	Return on Capital Employed	20.44	26.00

The significant changes over previous year across all ratios is due to increase in Equity, increase in EBIDT, increase in inventory, and increase in PAT of Steelman Telecom Limited. For detailed explanation, please refer to Notes of the Standalone Financial Statements for the financial year ended March 31, 2023.

OPPORTUNITIES AND THREATS

The opportunities observed are based on the trends noticed in the past couple of Years, which continues to be relevant:

Opportunities and Threats

Opportunities	Threats
Digitization	Foreign Exchange Rate Changes
Expanding Regional Markets	Constant Upgradation of Technology
Fast Growing Global Market	Third Party Risks

RISKS AND CONCERNS

Your Company actively stimulates entrepreneurship throughout the organization and encourages its people to identify and seize opportunities. The current economic environment, in combination with significant growth ambitions, carries with it an evolving set of risks. Your Company recognize that these risks need to be managed to protect employees, shareholders, and other stakeholders, to achieve business objectives and enable sustainable growth. Risk and opportunity management is therefore a key element of the overall strategy. Your Company has adopted the procedures in its Risk Management policy to ensure that all current and future material risk exposure of your Company is identified and mitigated. The policy explains the risk pertaining to financing activities, dependence on distribution network, and their mitigation. The policy is available on the Company website and can be read from there.

CAUTIONARY STATEMENT

The statement in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations are forward-looking statements within the meaning of applicable laws and regulations and which the management believes are true to the best of its knowledge at the time of preparation. Actual results may differ substantially or materially from such expectations whether expressed or implied and hence, the Company and the management shall not be held liable for any loss, which may arise as a result of any action taken based on the information contained herein. Several factors could make significant difference to the Companys operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities over which the Company does not have any direct control.