Tirupati Tyres Ltd Management Discussions

Industry Overview

Tyre Industry represents the true spirit of Make in India. Tyre Industry in India has the potential to lead the march of Indian manufacturing globally in the new world order. Indian Tyre Industry has built a unique brand equity for itself worldwide. Indian Tyre Industry is fast integrating with global supply chains helped by the globally aligned regulatory environment in the country that has led to an increase in the addressable market for Indian manufactured tyres. The automotive world continues to evolve and continues to put more demands on the Tyre Industry and thereby its supply chain partners. Technological influx is going to intensify in the Auto sector in the years to come. Tyre industry needs to keep pace with all new technological advancements. The performance of the Indian Tyre industry is intertwined with a healthy automotive sector and derived tyre demand from economic activities.

India constitutes one of the biggest 2W markets in the world with more space for growth. Despite the pandemic, this segment is witnessing demand with people moving away from shared/ public transport and opting for personal vehicles, including two-wheelers. This trend drove the demand for tyres as well.

According to the Chairman of Automotive Tyre Manufacturers Association (ATMA) Tyre exports from India went up by 50% last year and and likely to close the ongoing financial year with nearly 15% growth. The globally aligned regulatory environment in India has led to an increase in the addressable market for Indian manufactured tyres.

Financial Review

(All amounts in Lakhs)

Particulars	Standalone
	31st March, 2023	31st March, 2022
Total Income	28.97	26.46
Less: Total Expenses excluding Depreciation and tax	7.44	10.73
Profit/(Loss) before Depreciation & Tax	21.53	15.73
Less: Depreciation	0.00	0.00
Less: Exceptional Items	0.00	0.00
Profit/(Loss)before Tax	21.53	15.73
Less: Tax
i. Current Tax	0.00	0.00
ii. Deferred Tax	0.00	0.00
Profit/(Loss)after tax	21.53	15.73

The financial statements have been prepared in compliance with the requirements of the Companies Act, 2013. Further, the financial performance during the year under reference has been improved in terms of sales. Even though there has been a increase in the turnover, during financial year ended March 31, 2023, the

Key Financial Ratios

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2018, the Company is required to provide details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor. However, there were no significant changes which needs to be reported in the current year as compared to the previous year.

Opportunities & Threats

Opportunities are the factors that help the industry to grow in the market. It needs to find out these opportunities in the market and make them their strengths. The tyre manufacturing industry is very diverse. There are different types of tyres for different vehicles and different purposes. From two-wheelers to commercial planes the market has a great variety of needs and your company can take advantage of such opportunities.

Like any other Company, your Company is also exposed to various threats like competition, retention of employees, labour issues, increase in raw material prices and its timely availability, etc.

Risks and concerns

Risk is an integral and unavoidable component of business. In todays challenging and competitive environment, mitigating risks is imperative. Common risks include changing regulations, competition, business risk, technology obsolescence, investments and retention of talent. Business risk, inter alia, further includes financial risk, social risk, political risk, environmental risk and legal risk. For managing risks more efficiently, the Company has undertaken a detailed risk management exercise and has identified key risks that can have a critical impact on the Companys performance. The Company has in place a robust risk management framework that identifies and evaluates business risks and opportunities.

Human Resources/Industrial Relations

Human Resources are one of the most important ingredients for growth. The Company therefore strives to align human resource policy and initiatives to meet business plans. Training of employees to maintain high level of motivation is an ongoing process. Industrial relations at all the units remained cordial during the year.

Your Company believes the fact that your organization is only as good as its employees. Your Company considers its human resources as its biggest asset and believes in People at the heart of its Human resource strategy which set the Company apart from Companys peers. Your Company believes that employees continuously strive to make the organization as inclusive as possible. Employee relations continue to be cordial.

Outlook

The global economy continues to face uncertain macroeconomic conditions, including the ongoing effects of inflation, which have led to higher interest rates and lower consumer confidence. Vehicle manufacturing is expected in the next five years to cater to the growing domestic and export markets. The tyre industry is poised for positive growth in the short to medium term. The industry is hoping to normalize production and recover sales after the harshest year in recent history. It is expected that by 2025, the industry will have to find ways of compensating for falling margins and rising investment.

TIRUPATI TYRES strives to innovate and leverage cutting-edge digital technologies to provide its clients with best-in-class goods and services. TIRUPATI TYRES is dedicated to delivering safer and smarter goods through customer-focused research and development.

Challenges

Volatility in input prices, availability of raw materials, combined with surplus capacity in the industry are impacted prices and is likely to compress margins. Geo-political tensions and accompanying high fuel prices are likely to compress margins. Retail inflation is likely to dampen consumer sentiment for tyre replacement.

Internal Control & Systems

Your company maintains risk management processes, protocols and maintains adequate internal controls to safeguard stakeholders interest and the companys assets. Processes exist to identify, evaluate and manage risks that impede the realization of the companys objectives. The Company has also established an Internal Financial Control Framework which addresses internal controls over financial reporting and operating controls. This framework is duly supported by well-defined policies, processes, and procedures. This control framework is reviewed periodically by the management and placed before the Audit Committee and the Board.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys views, projections and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions, geopolitical uncertainties, macro-economic conditions, global and domestic supply and demand situations, input prices and their availability, changes in government regulations, tax laws and other factors such as industrial relations, economic developments among others. This may influence the companys operations or performance in the final analysis.

By Order of the Board

For Tirupati Tyres Limited

Sd/- Sd/-

Avinash Anil Ghorpade Atul Subhash Pawar

Managing Director & CFO Whole time Director

DIN: 09848799 DIN: 09692216

Date: 05^th September, 2023 Place: Mumbai