adani enterprises ltd Management discussions

Performance of major economies

United States: Reported GDP growth of 2.1% compared to 5.9% in 2021

China: GDP growth is expected to contract from 8% in

2021 to 3% in 2022.

United Kingdom: GDP is expected to grow 4.1% in 2022 compared to 7.6% in 2021

Japan: Reported growth of 1.7% in 2022 compared to

1.6% in 2021

Germany: Reported GDP growth of 1.8% compared to

2.6% in 2021

(Source: PWC report, EY report, IMF data, OECD data)

Outlook: The global economy is projected to grow

a weak 2.9% in 2023, marked by sustained Russia- Ukraine conflict and higher interest rates. Global inflation is projected to be 6.5% in 2023 (Source: IMF). On the positive side, the reopening of Chinas

economy after the waning of the pandemic, the decline in the European energy crisis and robust US consumption outlook (despite high inflation) remain positives. Interestingly, even as the global economy is projected to grow less than 3% for five years, India and China are likely to account for half the global growth in 2023 (IMF).

Indian economic review

Overview: Even as the global conflict remained geographically distant from India, ripples comprised increased oil import bills, inflation, cautious government and a sluggish equity market. India reported an estimated economic growth of 6.8% in FY 2022-23. India emerged as the second fastest- growing G20 economy in FY 2022-23. India had retained its position as the fifth-largest global economy and was seen as a principal driver of the global economy (with China).

(Source: Budget FY24; Economy Projections, RBI projections)

According to the India Meteorological Department, the year 2022 delivered 6% higher rainfall than the long-period average. Indias wheat harvest was expected to rise to around 107 million metric tons (MMT) in 2022-23 from 102 MMT in the preceding year. Rice production at 122 million metric tons (MMT) was down 6 percent due to unseasonal rains. Pulses acreage grew 5 percent to 154.80 lakh hectares following better monsoon rains. Due to a renewed

focus, the oilseed area increased by 7.31% from 102.36 lakh hectares in 2021-22 to 109.84 lakh hectares in 2022-23. Indias wheat production in crop year 202223 is expected to be 102.9 million tonnes (mt), less than the governments estimate of 112 mt.

Indias auto industry grew 21% in FY23; passenger vehicles (UVs, cars and vans) reported impressive growth with retail sales hitting a record high of 3.9 million units in FY23, crossing the previous high of 3.2 million units in FY19. Commercial vehicles segment grew 33%. Two-wheeler sales fell to a seven-year low; the three-wheeler category grew 84%.

Indias exports (merchandise and services) in April- February 2022-23 were estimated to have grown 16.18 percent over the same period of the previous year. As Indias domestic demand remained steady amidst a global slowdown, imports in April-February 2022-23 were estimated to have grown 19.93 percent over the corresponding period of the previous year. Indias exports in FY2021-22 were $676 billion and likely to achieve a record $750 bn in FY23.

Till Q3, FY23, Indias current account deficit, a crucial indicator of the countrys balance of payments position, decreased to $18.2 billion, or 2.2% of GDP from $22.2 billion (2.7% of GDP) a year ago. Indias fiscal deficit was estimated in nominal terms at ~ H17.55 lakh crore and 6.4% of GDP for the year ending March 31, 2023.

Indias headline foreign direct investment (FDI) numbers rose from US$74.01 billion in 2021 to a record $84.8 billion in 2021-22, a 14% Y-o-Y increase due to 100% FDI approval via automatic route in the

Insurance sector, civil aviation, coal sector, telecom, pharma, infrastructure. In 2022-23, the government was estimated to have addressed 77% of its disinvestment target (H50,000 crore against a target

of H65,000 crore).

After three consecutive years of rise, Indias foreign exchange reserves declined by around $ 70 billion in 2022 amid rising inflation and interest rates. The

countrys forex reserves, which stood at $606.47 billion on 1 April 2022, declined to $578.44 billion on March 31, 2023. Indias currency weakened from H75.91 to a US dollar to H82.34 as on 31 March 2023 due to a stronger dollar and weaker current account deficit.

The countrys retail inflation, measured by the consumer price index (CPI), slipped 16-month low to 5.66% in March 2023. Inflation data on the wholesale Price Index (which calculates the overall prices of goods before selling at retail prices) eased to 1.34% during the period. In 2022, CPI hit its highest of 7.79% in April 2022; WPI reached its highest of 15.88% in May 2022.

India moved up in the Ease of Doing Business (EoDB) rankings from 100th in 2017 to 63rd in 2022.

In 2022-23, total receipts (other than borrowings) were estimated at 6.5% higher than the Budget estimates.

Tax-GDP ratio was estimated to have improved by 11.1 percent Y-o-Y in FY 2022-23.

The total gross collection for FY 2022-23 was H18.10

lakh crore, an average of H1.51 lakh a month and up 22% from FY22, Indias monthly goods and services tax (GST) collections hit the second highest ever in March 2023 to H1.6 lakh crore.

For 2022-23, the government collected H16.61 lakh

crore in direct taxes, according to data from the Finance Ministry. This amount is 17.6 percent more

than what was collected in the previous fiscal.

Per capita income almost doubled in nine years to ?172,000 during the year under review, a rise of 15.8 percent over the previous year. Indias GDP per capita was 2,320 USD (March 2023), close to the magic figure of $2500 when consumption spikes across countries.

Outlook: India is expected to grow 6.8% in FY2024,

catalysed in no small measure by 35% capital expenditure growth by the government. The growth could also be driven by broad-based credit expansion, better capacity utilisation and improving trade deficits. Headline and core inflation rates could trend down. Private sector investments could revive.

According to the World Bank April 2024 projections, Indias GDP is projected to expand by 6.3 percent In

FY24, supported by domestic demand and increased public investment. Indias retail inflation rate could decline from 6.6 percent to 5.2 percent in FY24.

The global landscape favours India: Europe is moving

towards a probable recession, the US economy is slowing, Chinas GDP growth forecast of 4.4% is less than Indias GDP estimate of 6.8% and America and Europe are experiencing their highest inflation in 40 years.

Indias production-linked incentive appeared to catalyse downstream sectors. Inflation was

steady. India was at the cusp of making significant investments in renewable energy and other sectors and emerging as a suitable industrial supplement

to China. India was poised to outpace Germany and Japan and emerge as the third-largest economy by the end of the decade.

The outlook for private business investment remained positive despite an increase in interest rates. India was

less exposed to Chinese economic weakness, with much less direct trade with China than many Asian peers. Broad-based credit growth, improving capacity utilisation, governments thrust on capital spending

and infrastructure should bolster investment activity. According to our surveys, manufacturing, services and infrastructure sector firms are optimistic about the business outlook. The protracted geopolitical

tensions, tightening global financial conditions and slowing external demand are the downside risks.

Union Budget FY 2023-24 provisions

The Budget 2023-24 sought to lay the foundation for the future of the Indian economy through projects like PM GatiShakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition and Climate Action, as well as Financing of Investments. The capital expenditure of the Indian government expanded 35.4% from H5.54 lakh crore to H7.50 lakh crore. An outlay of H5.25 lakh crore was made to the Ministry of Defence (13.31% of the total Budget outlay). An announcement of nearly H20,000 crores was made for the PM Gati Shakti National Master Plan to catalyse the infrastructure sector. An expansion of 25,000 km was initiated for the national highways network. An outlay of H1.97 lakh crore was announced for Production Linked Incentive schemes across 13 sectors.

Industry overview

Coal business: India is the worlds second-largest producer of coal and has the fourth-largest coal reserves, which highlights its ability to meet its industrial development needs with ample coal resources. In 2022-23, India is projected to produce over 1017 million tonnes of coal, up from 777.26 million tonnes produced in FY 2021-22 and 716.08 million tonnes in FY 2020-21. Looking ahead, it is anticipated that Indias coal requirement will reach 1.5 billion tonnes by 2030, which will require sustained efforts to increase coal production and improve coal use efficiency.

Indias coal production experienced a significant increase of 16.39% during 2022-23. This growth is attributed to mining reforms and a growing focus on mineral-based downstream metal manufacturing. The increased production of coal is expected to support the growth of steel, aluminium, fertilizers, and cement industries in the country. The governments initiative to eliminate coal imports by 2023-24 is driving the growth of Indias coal mining industry. (Source: Mint, coal.gov.in, Business Standard)

Airport: The Airports Authority of India (AAI) manages a vast network of 137 airports, comprising 34 international airports (including three civil enclaves), 10 customs airports (including four civil enclaves), and 103 domestic airports (including 23 civil enclaves). This extensive airport network makes India the third- largest domestic market for civil aviation globally.

The quality of airport infrastructure is a significant factor in determining a countrys competitiveness, as it facilitates the efficient movement of people and cargo. In 2022-23, Indian airports handled 1,620,533 metric tonnes of freight. With Indias growing economy, the countrys airports are poised to handle even more freight, and it is estimated that the total freight traffic on Indian airports could reach 17 million tonnes by the fiscal year 2040.

India presents a substantial market for travel and tourism. The travel services market share in the country is projected to accelerate at a CAGR of 11.38% and is expected to reach an estimated value of USD 11.78 billion by 2026. Additionally, the Indian airline travel market is poised to double in size by FY 2027, fueled by improved airport infrastructure and increased access to passports. With superior airport infrastructure in place, Indias tourism sector is set to experience rapid growth, creating substantial employment opportunities throughout the country. As a result, investing in and expanding Indias airport infrastructure can have a positive and far-reaching impact on the countrys economy and job market.

Indias air passenger traffic witnessed a remarkable recovery in 2022, with a 47% increase from the previous year. The number of passengers carried by Indian airlines amounted to 123.2 million in 2022, indicating a strong resurgence from the subdued travel sentiment observed in 2021 and is likely to reach 520 million by 2037. To keep up with the growing air traffic demand, the Indian government has taken measures to increase the number of airports in the country. This has led to an expansion in the number of airplanes operating in the sector, with an estimated 1,100 planes expected to be in operation by 2027. Additionally, the number of operational airports is projected to increase to 190-200 by the fiscal year 2039-40. This growth in air travel is expected to catalyze the travel and tourism industry, which is predicted to contribute USD 512 billion to the countrys GDP by 2028. The expanding population, rising disposable incomes, increased affordability of airfares, better travel modes, wider airline options, investment in modern aircraft fleets, improved intermodal connectivity, and other factors are expected to drive this growth. This is a positive sign for the Indian economy, as it indicates a strong and growing market for air travel and related services.

In response to the increasing air traffic in the country, the Government of India has undertaken several initiatives to address the issue. One of these initiatives is the UDAN (Ude Desh ka Aam Nagrik) regional connectivity scheme, which aims to make air travel more affordable and accessible for the general public. In addition, the government has planned to invest a significant amount of funds, H25,000 Crore (US$ 3.58 billion), over a period of five years to improve and

expand the facilities and infrastructure at airports, These investments are expected to support the growth of the aviation industry in the country and enhance the overall travel experience for passengers. (Source: rajyasabha.nic.in, IBEF, indiabudget.gov.in)

Infrastructure: Indias infrastructure sector is a crucial driver of the countrys growth and socioeconomic development. Strong infrastructure makes India

and its corporations more competitive and can help alleviate poverty. The sector is poised for rapid growth, thanks to government reforms and incentives.The construction industry is expected to have expanded by 12.0%, reaching INR 45,907 billion in FY2023.

The Indian government aims to invest H111 lakh Crore (US$ 1.5 trillion) in the National Infrastructure Pipeline to complete projects by 2025. In year 202223, US$ 100 billion was invested in the infrastructure sector through foreign direct investment (FDI). The focus is on improving roads, ports, airports, power, water, health, and technology, with government investments and risk sharing, bold policy initiatives, public-private partnership models, and tax breaks. Private participation and skill development are also key areas of focus. These initiatives are expected to help achieve the goal of a US$ 5 trillion economy by FY 2024-25 and a US$ 10 trillion economy by 2030. (Source: Statista, Financial Express)

Copper: Demand for the red metal stood at 706,000

tonnes in FY23 against a production of 555,000 tonnes. Copper is a crucial nonferrous metal in India, utilized for various industrial purposes. Its growth is influenced by factors such as regulations, London Metal Exchange performance, currency exchange rates, infrastructure development, electric industry, telecom boost, renewable energy, electric vehicles, and consumer durables. The sector is projected to grow at a Compound Annual Growth Rate (CAGR) of 7% until 2030.

Indias per capita copper consumption is predicted to rise from 0.5 kg to 1 kg by 2025, still below the global average of 3.1 kg. India has only explored 20,000 sq.km. of the potential 60,000 sq.km. mining area available for copper exploration. To increase copper recycling in India, the government has reduced the import duty on copper scrap from 5% to 2.5%. (Source: mines.gov.in, IBEF)

Petrochemicals: Indias petrochemical industry is among the fastest-growing sectors in the country, ranked sixth globally and fourth in Asia for chemical sales. With over 80,000 types of chemicals and petrochemicals produced in the country, the industry employs more than two million people annually.

The petrochemical market of India is expected to reach 54.48 Mn tons in FY 2027 expanding at a CAGR of 2.98% during the FY 2022 - FY 2027. Petrochemicals are a part of our day to day lives -

used in manufacturing, construction, packaging, agriculture, textile and apparel, pharmaceuticals and others. In terms of volume, the petrochemical market in India stood at 5.03 Mn tons in FY 2022 and is anticipated to reach 54.48 Mn tons in FY 2027, expanding at a CAGR of 3.83 % between FY 2023 and FY 2027.

Indias petrochemical market is categorized into

three divisions, namely basic petrochemicals, intermediates, and other petro-based chemicals. Basic petrochemicals, including polymers, synthetic fibres, synthetic rubber, and synthetic detergent intermediates, dominate the market, accounting for ~44.66% of the market volume share in 2021. The growth is attributed to the increasing consumption of HDPE, LDPE, polypropylene, and polyvinyl chloride. To strengthen domestic manufacturing, reduce imports and attract investments, the Indian Government has set a 2034 vision for the chemicals and petrochemicals sector. By 2025, India is expected to attract H8 lakh Crore investments, making it a leader in the global chemical and petrochemical industry, in line with the self-reliant India concept. (Source: business.mapsofindia.com, globenewswire.com, PWC India, ETimes)

Hydrogen: Hydrogen is a versatile energy carrier

that can be used for various energy system applications, including renewables integration, clean transportation, and industry. The demand for hydrogen in India is projected to increase five-fold to 28 MT by 2050, with 80% of the demand expected to be green hydrogen. Oil refineries, fertiliser plants, and steel units are the primary hydrogen consumers in India. Presently, most of the demand is met by grey hydrogen produced from fossil fuels. However, the declining cost of renewable electricity, due to the increased deployment of renewable power capacity, makes green hydrogen more feasible.

Green hydrogen, which is produced using renewable energy, has excellent environmental credentials as a clean fuel. With Indias low renewable energy cost advantage, the cost of green hydrogen in the country is expected to fall to less than USD 1 per kg, making it potentially the worlds lowest-cost producer of green hydrogen. India aims to manufacture five million tonnes of green hydrogen annually by 2030, with plans to invest in innovation, R&D, and demonstration projects to support commercialisation of new technologies and reduce the cost of green hydrogen. These initiatives are part of Indias transition from grey hydrogen to green hydrogen and to establish India as a green hydrogen hub. (Source: power-technology. com, reuters.com, ETimes, Invest India)

Electrolysers: Electrolysers are crucial devices used to produce green hydrogen by breaking water into oxygen and hydrogen using electricity. In India, the government plans to provide federal financial support

to establish electrolysers, with a proposed mandate to use green hydrogen for fertilizer and refining plants,

which is expected to drive the growth of electrolysers, This initiative is part of Indias efforts to promote the

production of green hydrogen and to reduce the cost of this clean energy source,

In India, the current method used to produce hydrogen

through water electrolysis is the alkaline water electrolysis technique, which is relatively energyintensive, However, switching to the more efficient polymer electrolyte membrane (PEM) electrolysis technique has the potential to significantly reduce the electricity required for hydrogen production, resulting in a cost reduction,

The Indian government launched the National Hydrogen Energy Mission in August 2021 to establish India as a global leader in green hydrogen production, As part of this initiative, the country is seeking bids for 4,000 MW of electrolyser capacity and 4,000 MWh of battery energy storage system capacity, India is also aiming for a total of 15 GW of electrolyser- making capacity and is exploring production-linked incentives to encourage local manufacturing, Indias electrolysers market is expected to reach $31 billion by 2050 corresponding to a demand of 226 GW, (Source: pib.gov.in, fortunebusinessinsights.com, ETimes)

Power batteries: Battery storage is increasingly essential for managing the electricity grid at different nodes including distribution, transmission, and

generation, In India, the battery storage market presents opportunities for electrified mobility and storage requirements, Indias power battery market was estimated at US$ 2,5 billion in 2022 and expected to surpass US$ 15 billion (~H1,12 trillion) by 2030, Indias demand for battery storage is expected to reach 260 GWh by 2030, driven by increasing demand for electric vehicles, consumer electronics, and stationary storage, India is well-positioned to capture a significant share of the global storage market and contribute up to 13% of the global battery demand by 2030, according to Mercom India,

India has a vast potential for large-scale battery manufacturing, which support the growth of electric vehicles, grid storage and energy security, Moreover,

the Indian governments target of manufacturing 30% of new vehicle sales as electric by 2030 and 34 GW/136 GWh of battery storage needed to add 450GW of renewables in India by 2030, could drive the nation to become a key lithium battery consumer, (Source: mercomindia,com, mordorintelligence,com)

Water: India has one of the highest populations in the world and is considered one of the most water- stressed countries, with an average annual per capita water availability of 1,486 cubic meters in 2021, projected to decrease to 1,367 cubic meters in 2031, India consumes more groundwater than any other

country in the world, with an estimated consumption of 250 billion cubic meters per year, surpassing the

combined consumption of China and the US,

India is facing a freshwater crisis due to having just

4% of the worlds fresh water for a population that represents 16% of the worlds population, More than 6% of the population lacks access to safe water, and 15% practice open defecation, leading to waterborne illnesses, stunting, and death, As a result, the water crisis in India is estimated to affect 6% of the countrys GDP,

India is expected to face a severe water scarcity in the future due to increasing population, industrialization, and waste generation, By 2030, around 40% of the population could have no access to drinking water,

and there could be an imbalance between water demand and availability, This could result in a rise in the water requirement across all sectors, with an increase in sewage and industrial waste generation, (Source: Statista, Mc Kinsey, waterorg, ide-india,org)

Government allocations

Jal Jeevan Mission (rural): The Jal Jeevan Mission (JJM) is a government initiative in collaboration with Indian states, with the aim to provide functional household tap connections to every rural household

in India by 2024, with a service level of 55 litres of water per capita per day,

National Perspective Plan (NPP): Indias river basins, including the Ganga, Krishna, and the Indian portion

of the Indus, among others, could face a significant shortfall by 2030 unless corrective measures are taken, To address the issue, the Indian government developed the National Perspective Plan (NPP) for Water Resources Development, which proposes transferring water from basins with a surplus to those with a deficit.

Har Ghar Nal Se Jal: The Indian government has covered 8,7 crore households under a scheme, with 5,5 crore households receiving tap water in the past two years, For the drinking water program in 2023-24, an amount of H70,000 crore has been allocated,

Pradhan Mantri Krishi Sinchai Yojana (PMKSY): The Indian governments goal is to increase rural prosperity

by improving water access for all agricultural farms, which is expected to result in increased production and productivity, (Source: IBEF, Hindustan Times)

Defence: India has the worlds second-largest armed forces and spends 3,7% of global military spending, making it the third highest military spender globally, The defence sector accounted for 10% of the Central Governments budget and almost 1,7% of Indias GDP for 2022-23, To support the Atmanirbhar Bharat or SelfReliant India initiative, the government has prioritized the defence sector as a core area for growth, The

Defence Ministry has set a goal of achieving 70% self-sufficiency in weaponry by 2027, presenting significant opportunities for industry players.

Indias defence exports reached a record H13.000 crore in 2021-22 and are projected to increase to H17.000

crore in 2022-23. To enhance defence and security, India is prioritizing innovation through Innovations for Defence Excellence (iDEX). This initiative provides

startups with a platform to connect with defence establishments and create new technologies and products over a five-year period (2021-2026)

The Finance Minister of India has increased the allocation to the defence budget for fiscal year 2023-24 by 13%, with the new budget totaling H5.94 lakh crore, up from H5.25 lakh crore in fiscal year 2022-23. The capital expenditure, which includes purchasing new military equipment such as weapons, aircraft, and warships, has been allocated H1.62 lakh crore, a 7% increase from the current fiscal years H1.52 lakh crore. However, given an average inflation rate of around 6%, this increase is virtually unchanged in absolute terms. The Indian government is encouraging greater participation from private defence manufacturing companies to meet the rising demand in the sector. The government has also opened up the Indian defence industry to foreign original equipment manufacturers, allowing them to form strategic partnerships with Indian defence equipment manufacturers. To further boost the defence manufacturing industry, the government has increased the limit for foreign direct investment (FDI) in the defence sector up to 74% through the automatic route for companies seeking new defence industrial licenses and up to 100% through the government route. These measures are expected to make India a reliable supplier of weapons to friendly nations. (Source: IBEF, Invest India, prsindia.org)

Solar panels manufacture: The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India also ranked fourth in terms of installed capacity of solar power, as of FY 2022. India imported solar cells and modules worth $1.23 billion (~H92.62 billion) in the first quarter (Q1) of the calendar year (CY) 2022, an increase of 374% compared to the same period last year. The Indian government plans to establish a green city powered by renewable energy in every state of the country. The green city will promote eco-friendly power solutions through solar rooftop systems on all houses, solar parks on the outskirts of the city, waste-to-energy plants, and public transportation systems enabled by electric mobility. The Indian government has also implemented policies that enable 100% foreign direct investment (FDI) in renewable power generation and distribution projects under the automatic route, which is expected to attract greater participation from global players in the Indian market.

Edible oils: India is the second-largest consumer of edible oil globally, with the edible oils market estimated at $28.23 billion in 2023. The market is expected to grow at a compound annual growth rate (CAGR) of 7.63% until 2027, driven by factors such as a growing population, rising disposable incomes, urbanisation, greater awareness of healthy and hygienic food, and changes in dietary habits with a shift towards processed foods with higher vegetable oil content.

According to the Ministry of Agriculture, the edible oils sector plays a crucial role in Indias agricultural economy, with an estimated production of 37.15 million tonnes of nine cultivated oilseeds during 2021-22. During financial year 2022, over 37 million metric tons of oilseeds were produced in the south Asian country of India. Indias domestic production of oilseeds, such as mustard, groundnut, and soybean, meets less than half of the countrys edible oil consumption. As a result, India is one of the largest importers of edible oil. The total imports of vegetable oils (edible oils and non-edible oils) went up 6 per cent to 11,72,293 tonnes in March from 11,04,570 tonnes a year ago. From November 2022 to March 2023, imports of edible oils rose to 69,80,365 tonnes from 56,42,918 tonnes in the corresponding period of the previous oil marketing year. Indias high consumption of edible oils is expected to continue to grow due to population growth, changing dietary habits, and a shift towards processed foods. India is projected to maintain a per capita edible oils consumption growth of 2.6% per year, reaching 14 kg/capita by 2030. To reduce dependence on imports and achieve self-reliance in edible oil, the Indian government is promoting the National Mission on Edible Oils - Oil Palm (NMEO-OP) and has committed to providing a financial outlay of H11,000 crore in the cooking oil ecosystem. The mission aims to add additional areas for production (6.5 lakh hectares) and increase the productivity of oilseeds in the country. (Source: dfpd. gov,in, Times of India, ETimes)

Data centres: India has a young tech-savvy population, leading to rising digital adoption. The Indian data centre industry has seen significant growth in the last two years, driven by new data localization rules that require data generated in India to be stored within the country. This has prompted enterprises to upgrade their digital infrastructure, adopt new technologies, and improve customer experience, leading to innovation and job creation in the data centre sector. Additionally, there has been a shift in consumer data consumption patterns, including changes in communication, collaboration, and access to goods and services, resulting in businesses and individuals benefitting from being connected through the digital world.

The governments data localization rules has led to a need for enterprises to upgrade their infrastructure,

create new jobs and innovate. The pandemic has accelerated the shift towards digital technologies, fueling demand for data centers in India. As a result,

the sector has drawn significant global capital and is expected to add 681 MW capacity by the end of 2024. Private equity players are also taking an interest in this growing industry.

Indias high population and increasing smartphone usage make it an attractive market for hyperscalers

like Google and Amazon. These companies are investing in Indias digital infrastructure to capitalize on the growing demand for large-scale internet, networking, and cloud services in the country over

the next five years and beyond.

The Indian data centre sector is expected to see significant growth, particularly in Mumbai and Chennai, which are expected to drive 73% of the sectors total capacity addition during 2021-2023. Other emerging hotspots for data centres include Pune, Kolkata, Hyderabad, Bangalore, and Delhi NCR. With the adoption of new technologies such as Big Data, 5G, IoT, Blockchain, augmented reality, virtual reality and artificial intelligence, as well as new age applications and innovations, the demand for digital infrastructure in India is set to increase. Data centres are also becoming a new segment in the real estate market and are expected to contribute to 5-10% of the overall absorption of commercial realty in any market.

Company overview About us

Adani Enterprises Ltd. (the Company or AEL) was incorporated in the year 1992. AEL is one of the fastest growing diversified business, providing an extensive range of products and services together with its subsidiaries. Your company is engaged in mining & services, resource logistics, new energy supply chain including solar module and cell manufacturing, transport & logistics business like Airports and Roads, utility like Water and Data Centres, edible oil & food businesses in India and internationally Your company operates as an incubator focusing on establishing new businesses in transport & logistics and energy & utility sector, apart from increasing its focus on direct-to-consumer businesses. It has followed this strategy consistently since inception, when it was first established and later listed (1994). AEL has incubated and listed on bourses various businesses like Adani Ports, Adani Power, Adani Transmission, Adani Green Energy, Adani Gas and recently Adani Wilmar.

Financial performance

Your Company continues to register robust financial performance on the back of its strong operational

performance across its established and incubating businesses. Your companys continued focus on transport & logistics and energy & utility verticals is

expected to drive performance.

Key highlights of Your companys consolidated performance for the year are as under:

¦ Consolidated Total Income increased by 96% to

H1,38,175 Crore in FY 2022-23 vs H70,433 Crore in FY 2021-22

¦ Consolidated EBIDTA increased by 112% to H10,025

Crore in FY 2022-23 vs H4,726 Crore in FY 2021-22

¦ Consolidated PAT attributable to owners increased by 218% to H2,473 Crore in FY 2022-23

vs H777 Crore in FY 2021-22.

Operational performance

Key highlights of Your companys consolidated operational performance for the year are as under -

¦ Integrated Resource Management (IRM) volume

increased by 37% to 88.2 MMT vs 64.4 MMT in FY 2021-22.

¦ Mining Services production volume increased by 7% to 29.7 MMT vs 27.7 MMT in FY 2021-22.

Key business segments

Integrated Resources Management (IRM)

Adani Group is an established and diversified conglomerate based in India having global presence with a world class infrastructure and utility portfolio, while your company continues to operate as an incubator and flagship company of the group. The Group has marked shift from B2B to B2C business with its growing presence in gas, electricity and in airports. The Group has long track record of industry best growth rates across sectors with a repeatable, robust and proven transformative model of investment.

Adanis "door to door” - delivery model comprises taking the responsibility and accountability of sourcing from suppliers, managing sea-borne logistics, providing intermediate holding facility at discharge ports and inland transportation to provide delivery tailored for each customer. This unique & dynamic approach has allowed the business to create satisfied customers across various industries such as Power, Cement, Steel and Iron amongst others.

The Integrated Resources Management business of your company, through its established relations with its suppliers has maintained its position as Indias one of the largest natural resource supplier of imported natural resources from Indonesia, South Africa & USA for catering to the customized requirement of both Private and PSU clients in India. Your company has developed strong business relationships with

miners/ suppliers for procurement of imported natural resources and leveraging upon the in-house industry

experts to function as a facilitator to cater to the requirements of its customers.

Your Company continues to look at opportunities to develop business relations with the new miners, to enable your company for timely and cost-effective delivery of natural resources for its esteemed customers. Leveraging on its wide network presence across the supply chain & its position as a market leader, Your company is able to import natural resources through majority of ports in India, which saves the logistic cost and ensure timely delivery to its customers.

Your Company has yet again for another year, maintained the status of being the largest Integrated Resources Management service provider pertaining to Import of Thermal Coal (Non-Coking Steam Coal) in India during the FY 2022-23 and maintained its market position. The business witnessed an astronomical rise in the volumes pertaining to the supplies made to various States or Central owned Electricity Generation Companies (GENCOs) and also continued to expand its efforts in capturing higher market share in steel, cement and other sectors by venturing into the retail segment to cater specific local market in different geographies.

Your Company was able to significantly bring new business from its flagship e-portal for online trading of natural resources, Your company was able to attain a good stronghold in this space by leveraging on the benefits as an early entrant. Your company expects that the e-portal would bring in two-fold benefits of ease of doing business for retail customers at the same time the use of technology will enable faster, reliable and a more customer-centric business approach which will help in capturing even larger market share in retail business and marching ahead on its path of digitalization.

Going forward, Your company is targeting for a balanced customer mix of Private/ Retail as well as GENCO customers which is expected to yield the

benefits of growth with steady cash flow.

Natural Resources Business Natural Resources is one of the fastest growing businesses of your Company and we are leaders in our operating segments. Our current operations are focussed on the mining business i.e., Mine Developer & Operator (MDO - Coal & Iron Ore) & Commercial Mining (Coal & Bauxite), Copper, Aluminium, Minerals, Bunkering, LPG, ATF, Cement & Aggregate Businesses. Further our Natural Resource business is actively focussing and targeting diversification opportunities in the range of minerals such as Limestone, Chromite, Diamond among others.

Mining Development and Operation (Coal & Minerals)

In India, as part of the public-private partnership model, Government / Public sector companies including State Power Generation companies (State Electricity Boards), and State mineral corporations which are allotted Coal & Mineral Blocks, appoint a Mine Developer and Operator ("MDO”) to undertake all activities relating to the development and operations of a Coal & Mineral Blocks allotted and deliver the coal/mineral under agreed contractual terms. Many of the Government / Public sector companies who were allotted coal & mineral blocks have published tenders for selection of MDO and are at various stages of bid processes and subsequent award of the tender. AEL has participated in such tenders to secure long-term MDO contracts in FY 23. AEL won the MDO contract for the Pelma Coal block of South Eastern Coalfields Limited (SECL) in FY 2022-23. There are number of other MDO tenders, which are in advance stages where AEL participated and intends to participate in future and secure long term MDO Contracts in FY 24 and onwards.

Commercial Mining - Coal

Government of India launched auction process for opening commercial coal mining for private sector and removing restriction on the end use of coal in June 2020. Ministry of Coal (MoC) launched the 2nd tranche second attempt in September 2021 and 3rd tranche of commercial coal mining in October 2021 by publishing a list of 88 coal blocks. AEL & its subsidiaries won Bijahan coal block in the 3rd tranche and Gondbahera Ujheni East Coal block in the 2nd tranche second attempt. MoC further launched the 6th Tranche of commercial coal auctions in November 2022 by publishing a list of 133 coal blocks. The forward auction started in February 2023. AEL & its subsidiaries won the Purunga, Gondbahera Ujheni, and Northwest of Madheri coal blocks.

AEL is also evaluating upcoming opportunities actively and will participate in the auctions by leveraging its mining and integrated coal management capabilities.

Commercial Mining - Minerals

Government of India approved Mines and Minerals (Development and Regulation) Amendment Bill, 2021 on 23rd March 2021 to attract investors and ease mine development and operation. A discussion paper was also published by Ministry of Mines reflecting guidelines and seeking comments from all the stakeholders. The amendment to section 10A (2)(b) & 10A (2)(c) will make available for auction more than 500 mineral deposits blocks of various minerals such as iron ore, bauxite, graphite, chromite, diamond etc. In FY 2022-23, Government of Odisha floated tenders for grant of Mining Lease for 3 bauxite blocks. AEL and its subsidiaries won Kutrumali and Ballada bauxite

blocks in a forward auction conducted in February 2023. Many other blocks are anticipated to be put up for auction in FY 2023-24 and onwards by Ministry of Mines in the near future. AEL intends to evaluate and participate in auctions of these mineral blocks too.

Mining Services Coal Mines

¦ Parsa East and Kanta Basan Coal Block

Rajasthan Rajya Vidyut Utpadan Nigam Limited ("RRVUNL) has been allocated the Parsa East and Kanta Basan Coal Blocks (PEKB) in Chhattisgarh. RRVUNL has entered into a Coal Mining and Delivery Agreement with Parsa Kente Collieries Limited (PKCL) [a Joint Venture Company of RVUNL and Adani Enterprises Limited] appointing PKCL as MDO. PKCL is undertaking development, mining, beneficiation of coal, arranging transportation and delivery of washed coal to end use power projects of RRVUNL. The project commenced Mining Operations of coal and dispatches to Thermal Power stations of RRVUNL in March 2013 in Phase-I area of 762 ha. As per Forest Clearance ("FC”) granted by Ministry of Environment, Forest and Climate Change ("MoEF&CC") on 15th March, 2012. MoEF&CC on 2nd February, 2022 and State Government of Chhattisgarh (GoCG) on 25th March, 2022, granted permission for commencing mining over Phase-II area of 1136 ha., respectively. MoEF&CC also granted permission for expansion of mining capacity from 15 MTPA to 18 MTPA on 14th February, 2022. The EAC (Expert Appraisal Committee) in its meeting held on 13th March, 2023 has recommended the Environmental Clearance for Integrated project of PEKB coal block (Capacity 18 MTPA). For FY 2022-23, Raw coal Production was 11.8 MMT and Washed coal dispatch to Thermal Power Plants of RRVUNL was 9.1 MMT.

¦ Kente Extension Coal Block

RRVUNL has been allocated the Kente Extension

Coal Block at Chhattisgarh. RRVUNL has entered into a Coal Mining and Delivery Agreement with Rajasthan Collieries Limited (RCL) [a Joint Venture Company of RVUNL and Adani Enterprises Limited] appointing RCL as MDO. RCL is undertaking development of the Coal Block, mining, beneficiation of coal and arranging for transportation and delivery of coal to end use power projects of RRVUNL. The Coal Block is under development stage.

¦ Parsa Coal Block

RRVUNL has been allocated the Parsa Coal Block at Chhattisgarh. RRVUNL has entered into a Coal Mining and Delivery Agreement with Rajasthan Collieries Limited (RCL) [a Joint Venture Company of RVUNL and Adani

Enterprises Limited] appointing RCL as MDO. RCL is undertaking development of the Coal Block,

mining, beneficiation of coal and arranging for transportation and delivery of coal to end use power projects of RRVUNL. All the major statutory clearances have been issued by Government authorities. The Coal Block is under development stage.

¦ Gare Pelma Sector-III Coal Block Chhattisgarh State Power Generation Company Ltd. (CSPGCL) has been allocated the Gare Pelma Sector-III Coal Block at Chhattisgarh for captive use in their Thermal Power Plant in the State of Chhattisgarh. CSPGCL has appointed Gare Pelma III Collieries Limited (GPIIICL), a wholly owned subsidiary of AEL, as Mine Developer and Operator (MDO) for Development, Operation, Mining, and delivery of coal to end use power project of CSPGCL. CSPGCL entered into a Coal Mine Services Agreement with GPIIICL on 16th November, 2017. In FY 2022-23, GPIIICL achieved coal production of 3.7 MMT and dispatched 3.0 MMT of coal.

¦ Talabira II & III Coal Block

NLC India Limited (NLCIL) has been allocated

the Talabira II & III Coal Block at Odisha for captive use in their Thermal Power Plant. NLCIL has appointed Talabira (Odisha) Mining Private Limited (TOMPL), a wholly owned subsidiary of AEL, as Mine Developer and Operator (MDO) for Development, Operation, Mining, and delivery of coal to NLCIL. NLCIL entered into a Coal Mining Agreement with TOMPL on 23rd March, 2018. In FY 2022-23, TOMPL achieved coal production of 10.0 MMT and dispatched 10.0 MMT of coal.

¦ Suliyari Coal Block

Andhra Pradesh Mineral Development Corporation Limited (APMDC) has been allocated the Suliyari

Coal Block at Madhya Pradesh. APMDC has appointed AEL as Mine Developer and Operator (MDO) for Development, Operation, Mining, and delivery of coal to APMDC and entered into a Coal Mining Agreement with AEL on 8th March, 2019. In FY 2022-23, Raw Coal Production was 2.1 MMT and 1.4 MMT coal was dispatched to various customers of APMDC.

¦ Bailadila Deposit - 13 Iron Ore Mine

NCL (NMDC-CMDC Limited) is the Mining Lease holder of Bailadila Deposit - 13 Iron Ore Mine in the state of Chhattisgarh. NCL has appointed AEL, as Mine Developer and Operator (MDO) for Development, Operation, Mining, and delivery of iron ore to NCL. NCL entered into an Iron Ore Mining Services Agreement with AEL on 6th December, 2018. AEL has awarded subcontract to Bailadila Iron Ore Mining Private

Limited (BIOMPL), a wholly owned subsidiary of AEL, for development of the Iron Ore Block, mining, loading, transportation, and delivery of iron ore to delivery point. The Iron Ore mine is

under development stage.

¦ Gare Palma Sector I Coal Block

Gujarat State Electricity Corporation Limited

(GSECL) has been allocated the Gare Pelma Sector - I Coal Block at Chhattisgarh for development and operation and for captive use of coal in their Thermal Power Plants in the State of Gujarat. GSECL has issued conditional Letter of Acceptance (LoA) to Consortium of AEL (74%) and Sainik Mining and Allied Services Limited (26%) on 15th December, 2018 for Development, Operation, Mining, and delivery of coal to end use power projects of GSECL. GSECL has surrendered the Gare Palma Sector-I Coal Block to Ministry of Coal and accordingly, GSECL vide its letter dated 4th January 2023 notified the cancellation of Conditional LoA and MDO tender to AEL-SMASL.

¦ Gare Palma Sector II Coal Block

Maharashtra State Power Generation Co. Ltd. (MAHAGENCO) has been allocated the Gare

Pelma Sector - II Coal Block at Chhattisgarh for development and operation and for captive use of coal in their Thermal Power Plants in the State of Maharashtra. AEL has formed a wholly owned subsidiary (SPV company) namely "Gare Palma II Collieries Private Limited”. Coal Mine Agreement between Gare Palma II Collieries Private Limited (MDO), AEL (Successful Bidder) and MAHAGENCO has been signed on 31st March, 2021. As per the approved Mining Plan the peak rated capacity of Gare Palma Sector II Coal Mine is 23.6 MTPA with total mineable reserve of 553.177 MMT for opencast mining. GPIICPL as Mine Development & Operator (MDO) of Gare Palma II Coal Block is undertaking development of the coal block and then operation, mining, transportation and loading of coal into wagon for delivery to end use power projects of MAHAGENCO. MoEF&CC granted Environment Clearance on 11th July, 2022. Forest Stage-I and Forest Stage-II clearance has been granted by MoEF&CC in favour of MAHAGENCO on 2nd June, 2022 and 27th January, 2023 respectively.

¦ Gidhmuri Paturia Coal Block

Chhattisgarh State Power Generation Company Ltd. (CSPGCL) has been allocated the

Gidhmuri Paturia Coal Block at Chhattisgarh for captive use in their Thermal Power Plants in the

State of Chhattisgarh. CSPGCL has appointed Gidhmuri Paturia Collieries Private Limited (GPCPL), a SPV of ALE (74%) and Sainik Mining and

Allied Service Limited (26%) as Mine Developer

and Operator (MDO) for Development, Operation, Mining, and delivery of coal to CSPGCL. CSPGCL entered into a Coal Mining Agreement with GPCPL

on 2nd May, 2019. GPCPL, as Mine Development & Operator (MDO) of Gidhmuri Paturia Coal Block, is undertaking development of the coal block, mining and arranging for transportation and delivery of coal to delivery point. The Coal Block is under development stage.

¦ Kurmitar Iron Ore Mine

Odisha Mining Corporation Limited (OMCL) is the Mining Lease holder of Kurmitar Iron Ore Mine in Sundargarh District, in the state of

Odisha. Kurmitar Iron Ore Mining Private Limited (KIOMPL), a wholly owned subsidiary of AEL has been appointed by OMCL as the Mine Developer and Operator (MDO) for Development, Operation, Mining, transportation, and delivery of iron ore to delivery point. OMCL entered an Iron Ore Mining Agreement with AEL and KIOMPL on 31st October, 2019. Iron ore production in FY 2022-23 was 2.1 MMT.

¦ Pelma Coal Mine (Chhattisgarh)

Pelma Coal Mine is allocated to South Eastern Coalfields Limited (SECL), a subsidiary of Coal India Limited for commercial mining. SECL has

issued Letter of Award to AEL on 26th December, 2022. The process of signing of agreement with SECL is under progress.

Commercial Coal Blocks

¦ Dhirauli Coal Mine (Madhya Pradesh)

Stratatech Mineral Resources Private Limited

(SMRPL), a wholly owned subsidiary of AEL, emerged as a successful bidder of Dhirauli coal block auctioned for sale of coal. SMRPL entered into Coal Block Development and Production Agreement (CBDPA) with Nominated Authority, Ministry of Coal on 11th January, 2021. Nominated Authority issued the Allocation Order of Dhirauli Coal Block to SMRPL on 3rd March 2021. SMRPL shall undertake development and operation of the coal block and then utilize/sell the coal as per requirement. The coal block is under development stage.

¦ Gondulpara Coal Mine (Jharkhand)

AEL emerged successful bidder of Gondulpara coal block auctioned for sale of coal. AEL entered into Coal Mine Development and Production Agreement (CMDPA) with Nominated Authority, Ministry of Coal on 11th January, 2021. Nominated Authority issued the Vesting Order of Gondulpara Coal Block to AEL on 8th March 2021. AEL shall

undertake development and operation of the coal block and then utilize/sell the coal as per requirement. The coal block is under development

stage.

¦ Bijahan Coal Mine (Odisha)

Mahanadi Mine and Minerals Private Limited (MMMPL), a wholly owned subsidiary of AEL on 24th March, 2022 emerged as a successful bidder of Bijahan coal block auctioned for sale of coal. Coal Block Development and Production Agreement (CBDPA) between Nominated Authority, Ministry of Coal and MMMPL was signed on 17th August, 2022. Subsequently, Vesting Order was issued by Nominated Authority on 10th October, 2022. MMMPL shall undertake development and operation of the coal block and then utilize/sell the coal as per requirement. The coal block is under development stage.

¦ Gondbahera Ujheni East Coal Mine (Madhya Pradesh)

MP Natural Resources Private Limited

(MPNRPL), a wholly owned subsidiary of AEL, on 24th March, 2022 emerged as a successful bidder of Gondbahera Ujheni East Coal Mine auctioned for sale of coal. Coal Block Development and Production Agreement (CBDPA) between Nominated Authority, Ministry of Coal and MPNRPL was signed on 17th August, 2022. Subsequently, Vesting Order was issued by Nominated Authority on 10th October, 2022. MPNRPL shall undertake development and operation of the coal block and then utilize/sell the coal as per requirement. The coal block is under development stage.

¦ Gondbahera Ujheni Coal Mine (Madhya Pradesh)

MP Natural Resources Private Limited (MPNRPL), a wholly owned subsidiary of AEL emerged as a successful bidder of Gondbahera Ujheni Coal Mine auctioned for sale of coal. Coal Block Development and Production Agreement (CBDPA) between Nominated Authority, Ministry of Coal and MPNRPL was signed on 29th March, 2023. MPNRPL shall undertake development and operation of the coal block and then utilize/sell the coal as per requirement.

¦ Purunga Coal Mine (Chhattisgarh)

CG Natural Resources Private Limited (CGNRPL),

a wholly owned subsidiary of AEL, emerged as a successful bidder of Purunga Coal Mine auctioned for the sale of coal. Coal Block Development and Production Agreement (CBDPA) between Nominated Authority, Ministry of Coal and CGNRPL was signed on 29th March, 2023. CGNRPL shall undertake development and operation of the coal block and then utilize/sell the coal as per requirement.

¦ North West of Madheri Coal Mine (Maharashtra)

MH Natural Resources Private Limited (MHNRPL),

a wholly owned subsidiary of AEL bid for North West of Madheri Coal Mine in auction for commercial mining and emerged as successful bidder. MHNRPL entered into Coal Block Development and Production Agreement (CBDPA) with Nominated Authority, Ministry of Coal on 29th March, 2023 . MHNRPL shall undertake development and operation of the coal block and then utilize/sell the coal as per requirement.

Aluminum Business

Kalinga Alumina Limited ("KAL) (formerly known

as Mundra Aluminium Limited) is a wholly owned subsidiary of AEL. KAL is pursuing the object to carry out the business of mining, manufacturing, development, production, operations, maintenance and repair, assembly, engineering, consultancy, erection, refining, smelting, casting, drawing, rolling, foundry, extrusion, dealers of bauxite, alumina, and aluminium and to provide consultancy and management services in respect of any of the above activities thereto in India or outside India.

KAL had participated in auction of bauxite blocks in State of Odisha and declared as a preferred bidder for Kutrumali & Ballada bauxite block. A LOI has been issued subsequently and KAL in the process of following all necessary steps for compliance of the terms and conditions of the LOI.

Coal mining in Indonesia

PT Adani Global, Indonesia a wholly-owned step down subsidiary of the Company, has been awarded coal mining concession in PT Lamindo Inter Multikon (stepdown subsidiary in Bunyu Island, Indonesia).

The Bunyu Mines is Joint Ore Reserves Committee

(JORC) compliant.

Coal mining and related infrastructure in Australia

Our wholly owned step-down subsidiaries in Australia, Bravus Mining & Resources and Bowen Rail Company, have interest in the Carmichael coal mine and associated above-rail infrastructure in the Galilee Basin in Queensland, Australia. Further, the associated below-rail infrastructure is owned by our entity jointly controlled entity, Carmichael Rail Network.

During the year ended 31st March 2023, the Australian subsidiaries and the joint venture started commercial

production from its mine and the transportation of coal using its rail infrastructure. During the year, it sold 7.3 million tonnes of thermal coal generating a total revenue of A$885 million.

The mine has JORC compliant resource of over 11.17

billion tonnes of thermal coal.

Road, Metro and Rail

AEL is continuing to foster the nations increasing

demand for Infrastructure. Accordingly, Your company

endeavors to take advantage of the opportunity in

the Road, Metro & Rail sector by establishing National

Highways, Motorways, Tunnels, Metro-Rail, Rail, etc.

in line with the objective of contributing to the nation

building.

• Your company, in its own capacity as a developer, focuses primarily on PPP projects to be developed on Build-Operate-Transfer (BOT)-Toll, Toll-Operate-Transfer (TOT), and Hybrid Annuity Mode (HAM) models. Groups Major focus is on the projects tendered out by National Highways Authority of India (NHAI) under the Bharatmala Pariyojana, the Ministry of Road Transport and Highways (MORTH), the Ministry of Railways, the Metro Corporation of the respective States and other initiatives from the Central and/or State Authorities and Agencies.

• AEL through its wholly owned subsidiary, Adani Road Transport Limited , have already secured 14 projects having order value of more than H41,000 Crores and more than 5,000 lane km Pan India in the states of Chhattisgarh, Telangana, Andhra Pradesh, Madhya Pradesh, Gujarat, West Bengal, Odisha, Kerala, Uttar Pradesh and Maharashtra in last five years. This Portfolio consists of a combination of HAM (Hybrid Annuity Mode), TOT (Toll - Operate - Transfer), and BOT (Build - Operate - Transfer) type of assets which are in various stages of development / execution / operations. Additionally, ARTL has acquired the Maharashtra Border Check Post Network Ltd, which has a total of 24 border checkpoints in the state of Maharashtra.

• Having Focus on sustainable environmental practices with positive contribution to nature,

society & other stakeholders, Your company has the largest portfolios of toll road assets with high quality, strong team, long and robust track record of growth and strong cash flow generation with

low leverage.

Company is using Advanced technology deployment-Implementation of SAP across functions, Toll collections through RFID (FASTag),

which has allowed to Strengthen the existing asset management platform by precise monitoring and development in conjuncture with the several growth opportunities.

• AEL would continue to evaluate and bid for attractive opportunities in the transport sector which generates value for the stakeholders as well as helps in Nation Building. The Group would use its immense expertise and experience of setting up and operating complex and mammoth

infrastructure projects in record time and to the

world class quality standards and will continue to focus on developing roads in states with highest GSDP/gross state domestic product. Strong regional presence has helped this business to use the established network and synergies to leverage the same for in project management/Business Development in Road, Metro & Rail Business.

• The business will also be concentrating on a small number of selected EPC projects that can be large

in scope and complex in terms of the required technology, and which call for the developer to use its project execution skills to deliver an

exceptional value in the market.

In addition, your company would be focusing on inorganic growth through Mergers and Acquisition.

We will look out for good assets/projects which will offer clear visibility of strong future cash flows and are available at very attractive valuations so that value/return will be created for shareholders

and other Stakeholders.

• Your company and its wholly owned subsidiary ARTL are also actively exploring the business opportunities of upcoming PPP modes adopted

by Indian Railways viz. Station Area Development Projects, Dedicated Freight corridor project and

other linear large size Railways project which are available under PPP mode.

Water

Water touches every aspect of development and it links with nearly every Sustainable Development Goal. It drives economic growth, supports healthy

ecosystems, and is essential and fundamental for life itself. Indian Economy is undergoing rapid Urbanization & Industrial Growth. Water being the key resource, getting high attention from Government, Policy makers, Media, and increasingly so from the markets given the rising concern on future availability. A report by NITI Ayog draws attention to the fact that 48% of Indias population is under high water stress.

Realizing the above, Jal Shakti Ministry has been taking various initiatives and focusing on programs

such as National Mission for Clean Ganga (NMCG) & National River Conservation for pollution abatement of Ganga & Other Rivers, Pradhanmantri Krishi Sinchae Yojana (PMKSY) for extending coverage of irrigation with improved efficiency of micro-irrigation, Jal Jeevan Mission (JJM) & Har Ghar Jal Mission for providing piped water connection to 14.6 Crore rural household by 2024, Jal Shakti Abhiyaan to stimulate rainwater harvesting and water conservation, National River Linking projects to connect 37 rivers across the nation to ensure adequate water though out the year in all regions etc.

Foreseeing the massive need for water infrastructure capacity augmentation in the country. The Group is already implementing Waste Water Treatment project

at Prayagraj in Uttar Pradesh and Bhagalpur in Bihar under the Namami Gange, One city One Operator framework and Shakkar Pench Lift Irrigation Project

in Gadarwara & Amarwada, Madhya Pradesh.

Prayagraj project comprises Construction of Three (3)

new Sewage Treatment Plants (STP) of cumulative 72 MLD capacity and Rehabilitation of Six (6) existing STPs of cumulative 254 MLD capacity with 15 years O&M. Rehabilitation of existing STPs have been done successfully and are under operation.

Bhagalpur project comprises Construction new

Sewage Treatment Plants (STP) of 45 MLD along with Associate infrastructure like Ten (10) Pumping station

and rising main / Gravity main.

Shakkar Pench Lift Irrigation Project comprises irrigation of 95000 Ha. Area on EPC basis by constructing dam, pump houses and pressurized

piped irrigation network.

Going forward, the group is exploring and bidding more such project opportunities in the areas of Wastewater Treatment, Irrigation Infrastructure Development, River interlinking Projects, Large Water Supply & Water Distribution Projects, and Desalination Projects.

Defence

India became the worlds fifth largest economy in 2022

and is expected to become the worlds third largest economy by 2030. India is at the cusp of becoming one of the global economic powerhouses at a time when the geopolitical ecosystem is transitioning to a multipolar world. The tumultuous geopolitical events after nearly three decades of relative peace indicate the emergence of a new world. The conflicts during the previous year indicate that wars will not be merely kinetic but could involve informational and cognitive domains, marked by intelligence, information processing, drones or unmanned systems, kinetic weapons and cyberspace.

The Indian government has made national security the cornerstone of its agenda since 2014. The emphasis on national security was underlined by the largest ever military modernisation drive for the Indian Armed Forces with a focus on becoming self-reliant in defence manufacturing. The result is that during the last two years, there has been a significant transition in the procurement philosophy of equipment for the armed forces from imports to indigenous manufacture.

In January 2022, the Indian Government took a landmark decision of cutting down imports of defence equipment importing any capital equipment, followed by which the Ministry of Defence put on hold most direct import acquisition cases and introduced import embargo lists under which around 1000+ items were banned from imports on 31st March, 2023.

Government initiatives

¦ In the Union Budget for FY 2023-24, the government allocated a US$ 72.2 billion to the

defence sector, accounting for 13.18% of the total budget. The total defence budget represented a

growth of US$ 8.3 billion over 2022-23.

¦ Allocation in the Union Budget for 2022-23 was

enhanced to an all time high of H12,850 crore.

¦ The capital allocations pertaining to modernization and infrastructure development of the defence services increased to US$ 19.7 billion, a growth of US$ 1.2 billion over 2022-23.

¦ A total Acceptance of Need (AoNs) of more

than 2.71 lakh crore were granted for capital acquisition in the FY 2022-23, out of which 99% of the procurement will be sourced from Indian industries.

Your Company Business

Your Companys defence portfolio prioritizes intelligence, surveillance and reconnaissance across

land, air and naval borders that warrant building capabilities in the next generation technologies in the unmanned, cyber and satellite space. Your Company pioneered the development of unmanned technologies through a robust ecosystem in Hyderabad and Bangalore, positioning India on the global map in the Unmanned domain. Your Company has developed a comprehensive offering across an ecosystem of Indian suppliers to create a self-reliant design and development of unmanned systems in India.

Your Company is Indias leading private sector entity in the development of missiles and precision systems. The UAV launched precision guided missile system codeveloped by your Company and DRDO is a testimony of the agility that a public-private sector partnership can bring to defence manufacture. The concept- to-series production was completed in a record 19 months; the Indian Army placed a limited series production order on your Company for the delivery of these systems. The mission-critical very short- range air defence completed flight trials; production is expected to start in FY 2023-24. Your Company is working on critical missile systems like long range

guided bombs, anti-radiation missiles and the highly

lethal sea skimming snit ship missiles.

Your Company announced an investment of more than H1,500 crore to build South Asias largest integrated ammunition complex in Kanpur (in the Uttar Pradesh defence industrial corridor). The complex will manufacture full ranges of ammunition (200 mn rounds of small caliber ammunition, 10 million rounds of medium caliber ammunition and 100,000 rounds for 155 mm large caliber ammunition) catering to the Indian and global markets.

Your Company is the first private sector company to have set up an end-to-end development and manufacturing ecosystem of small arms, including assault rifles, light machine guns, sniper rifles,

carbines and pistols and is the only Indian private sector company supplying small arms to security forces.

Highlights, FY 2022-23

¦ Introduced a world-class unmanned aerial system

for the Indian armed forces with contracts signed for delivery of these systems in 2023-24.

¦ Operationalized the first barrel manufacturing

facility in the private sector.

¦ Started the construction of a 100 million round per annum small caliber ammunition manufacturing facility (part of H1,500 crore plan of building South Asias largest ammunition manufacturing

complex in Kanpur).

¦ Added three missile systems to its portfolio, strengthening its largest missile portfolio in

Indias private sector.

¦ Commenced the development of long-range antiradiation missiles and lethal sea-skimming antiship missiles by working with DRDO.

¦ Completed the trial test of short-range air defence systems with the expected requirement of missiles.

Outlook, FY 2023-24

¦ The Companys defence manufacturing complex in Kanpur is expected to be commissioned in the third quarter; full scale production is expected by the fourth quarter.

¦ Limited series production of very short-range air

defence systems is expected to be undertaken.

Airports

Indias airports infrastructure is on a phenomenal

transformation phase, the Indian government is moving to a PPP model for the airports that it operates,

creating an unprecedented investment opportunity for the private sector. In the recent past the GOI has

proposed and implemented policy level changes and guidance for improvement in the sector, wherein, the Government has encouraged greater privatisation and liberalisation and we can expect to see greater private sector involvement in developing the nations infrastructure. The Government of India has given in-principle approval to 19 airports, out of which, 7 are going to be developed on a PPP basis with an investment of H27,000 Crores. The aviation sector is also positioned to benefit from the allowance of Foreign Investment of up to 49% under the automatic route in scheduled air transport service, regional air transport service, and domestic air passenger airlines. Indian carriers are expected to double their fleet capacity to around 1100 aircraft by 2027. In addition to this, government has recently proposed Draft Aircraft Bill, 2023 for public consultation, in a simplified manner, identifying existing redundancies and to provide for provisions to meet current needs for regulation of civil aviation in a simplified language.

From being a luxury, air travel has now been democratised to the point that it has become accessible through affordable pricing and widening connectivity to the common traveler.. With the projected growth of the Indian economy government support, growing household incomes and a larger number of millennials influencing consumption, Indias aviation sector is expected to report robust growth.

The Adani Group ventured into the airports infrastructure business in 2019 through Adani Enterprises Limited (AEL) and AELs ability to incubate new businesses and financial strength has allowed it

to take long term strategic bet.

Airports Authority of India (AAI) adopted a singlestage electronic bidding process for selection of the bidder for award of the project. and the Company emerged as the highest bidder on a fee per passenger basis for six airports. The concession agreement for Ahmedabad, Lucknow and Mangaluru airports were signed on 14th February, 2020, the Concession Agreements for the Jaipur, Guwahati and Thiruvanthapuram airports were signed on 19th January, 2021. The Company commenced operations in Ahmedabad, Lucknow and Mangaluru airports in FY 2020-21 while the commencement of operations in Jaipur, Guwahati and Thiruvanthapuram is started from October 2021. further, the Company has acquired Mumbai International Airport Limited. Following completion of this transaction, Adani Group have seven operational airports and one greenfield airport under its fold. NMIAL, the subsidiary of MIAL, is building a state of the art and world class Airport scheduled to commence its commercial operations by December 2024. With an estimated capex of H19,500 crore NMIAL is being build to handle 20MPPA traffic in "Phase 1. In line with its vision of responsible nation

building, the Company intends to transform the Indian airports infrastructure sector. The Company intends to design revolutionary airports that reimagine the future, offer seamless processes that facilitate touchless operations, especially in the post COVID-19 era, when social distancing will be the new norm -and create a gateway to goodness.

The Companys business model assures a hybrid revenue model including aero sand non-aero revenues.

The non-aero focus is to be directed towards the development of Airport Villages that can address nonpassenger airport visitors. An entry into this business is in line with the Adani Groups philosophy of bridging its B2B and B2C businesses. The airports business will create strategic adjacencies for the existing business of the Adani Group. These airports handle 23% of Indias air traffic consumer base of 300+ Mn people. The Company intends to provide end-to-end integration, committed to the best ASQ ratings across categories.

The aviation industry has experienced numerous changes in recent years when it comes to how airports operate. From passenger processing regulations, modernization within airport buildings to the introduction of new biometric technology, airports have been subjected to a rapidly changing environment.

Adani Airports continue its Digital Transformation journey to provide their stakeholders a wealth of new opportunity and with the introduction of Adani One app, a platform wherein all airport services can be availed across the airport under AAHLs ambit. Our ability to identify, prioritize and implement digital solutions like Pranaam Services, Passenger Self Service Solutions, Centralized Airport Control Center, Airport Operations System, Customer Relationship Management, Electronic Point of Sales System has been critical to our success.

The outlook for the airport infrastructure business is positive on account of the governments decision to progressively divest ownership stakes in Indian airports in favour of private operators. This divestment and related opportunities are expected to accelerate the modernization of infrastructure, turning them into showpieces of global standard. The Company enjoys a decisive advantage in being a sectorial outlier within only a couple of years of entering the business, holding attractive prospects of outsized and sustainable growth across the long-term. The Company intends to re-define Indias airports infrastructure sector through gateway development, regional footprint growth, focus on consumers and non-passengers and deeper investment in digital technology interventions that widen consumer choice and delight. The outlook for the Company is underpinned by the fact that India is expected to emerge as the third largest aviation market catalyzed by the governments decision to

popularize the public-private partnership model, graduate India into an MRO hub, flexible use of air space and matured regulatory framework with assured returns.

Solar Manufacturing

Adani Solar operates through two entities namely,

Mundra Solar PV Limited (MSPVL) and Mundra Solar Energy Limited (MSEL). Since inception in 2017, Adani Solar has consistently been Indias first largest and most trusted vertically integrated solar PV cells and modules manufacturer with capacity steadily increasing from 1.2 GW to 1.4 GW in 2019, 2 GW in 2021 and 4 GW in 2022. Adani solar also has its own Research and Development (R&D) Centre within the Electronic Manufacturing Cluster (EMC) facility at Mundra.

Adani Solar is building the Worlds 1st ever Fully Integrated and Comprehensive Ecosystem of Solar PV manufacturing, again, at Mundra, India. This ecosystem will not only be vertically integrated from MG silicon to PV Modules but will also hosts all ancillary units like EVA, Backsheet, Aluminium frame, Glass etc. in the same geography. This expansion will be a true embodiment of Atma-nirbhar Bharat and will help the Brand and also our nation to not only address supply chain challenges but also become a respectable and relevant Brand in the global renewable industry in times to come.

This year, Adani Solar became the first Indian company to start the backward integration beyond solar cell manufacturing, by starting the pilot for Ingot and wafer slicing lines. This pilot line is a part of a planned

2 GW wafer manufacturing setup that Adani solar will soon dedicate to the country -the first such attempt in India.

Adani Solar continues to lead the domestic solar PV

industry in terms of both scale & technology. The Company is amongst the first few in the country to produce high-efficiency Bifacial & MonoPERC modules of M10 and G12 footprint with Power class of 535-660W, with a module efficiency of 21-22% and targeting Bifaciality of 75%. We are also coming up with our solar PV Modules with TOPCon technology in 2023.

The Company has aligned itself with Government of Indias aim of 300 GW of Solar Installation by 2030. Adani Solar with its domestic cell manufacturing

facility will be able to support the various initiatives - Residential Rooftop scheme, the solar pump (KUSUM) scheme and the utility scale CPSU scheme. In a sector dominated by cheap chinese imports, Adani Solar has been able to maintain a robust order book, both in Domestic and International markets, due to which the asset utilization of the Company has been at the fullest. Since the inception of business in 2017, it has

sold about 6.2 GW of Modules catering to both Indian

& Global demand.

In 2022, Adani solar booked largest ever order of

800 MW, largest by any Indian Module manufacturer. The brand now boast of a confirmed order book of over 3000 MW in exports, to be serviced over next 15 months. The brand is now well accepted in international markets and is in position to book large volumes for 2 years ahead - achieve sales order book of over 5 GW.

Adani Solar has been rated as Top Performer in the Product Quality Program (PQP) by PVEL-DNV-GL, for 6 consecutive years (from 2018 to 2023), across all major reliability tests for PERC and Bifacial Products. This is in addition to various awards and recognition the brand has received not only in India but internationally too.

Adani Solar has module warranty insurance tied up with Ariel-RE.

1275 MW modules

Sales volume during FY2022-23

Data Centre

Rapid adoption of the "digital first approach” and "new age data economy” applications is revolutionizing Indias growth. The high pace of digital transformation

is further leading to the expansion of the data center industry. The industry witnessed stupendous growth as it doubled in just 3 years from 350 MW in 2019 to 722 MW at the end of 2022, a robust 27% CAGR1 , and is going strong. The growing data center industry is being catalyzed by various sectoral momentums, including:

• Cloud players have continued to increase their pre-commitments with robust cloud service

growth.

• Increased demand from BFSI, fintech, and tech players has been witnessed year after year.

• Emergence of tech-native businesses like e-commerce, OTT, e-learning, video conferencing, and online gaming has created a significant

increase in demand for data storage and computation.

• The government is acting as an enabler in driving demand through various key digitization

initiatives such as smart cities, Digital India, Meghraj, Aadhar, etc.

The robust industry growth has been strongly

supported by policy support at the central and state levels. Various states have announced dedicated data center policies to attract industry players. The draft Digital Personal Data Protection Bill, 2022, is expected

to lay down a roadmap for data storage and usage, which has long-term implications for the DC industry. The rollout of 5G networks is going to be another

major factor that is going to add to Indias data story and usher in the next frontier of data centers.

Owing to this digital surge, 678 MW of Data Center capacity is expected to be added, bringing the total to 1400 MW by 20252 complemented by a persistent industry focus on increasing energy efficiency using energy-efficient technologies and sustainable business practices.

1 JLL India 2022 YE Data Center Outlook

2 JLL India 2022 YE Data Center Outlook

Agro

Adani Wilmar Limited

The FY 2022-23 started with furthering Adani Wilmar

Limiteds (AWL) growth story with the acquisition of Kohinoor Brand - domestic (India region) from McCormick Switzerland GMBH. The acquisition enabled AWL to dominate three distinct market segments: "Kohinoor” - for premium Basmati rice, "Charminar” - for affordable rice and "Trophy” for HoReCa segment.

The Food & FMCG segment being a new growth engine of AWL continued to grow at fast pace and delivered 39% volume growth and 55% revenue growth in FY 2022-23. Both of Awls top product categories - Wheat Flour and Rice have been growing well. AWL expects the strong growth to continue in both the products for many years, given the large headroom in the kitchen essential products. AWL continues to leverage the brand equity of the recently acquired premium basmati brand Kohinoor. This has also helped in consolidating the market share in Rice segment.

AWL also strengthened its presence in the West Bengal market as it announced the launch of its premium regional rice. Our new state-of-the-art facility at Burdwan is running at full capacity catering to the demand for regional rice in the entire eastern zone. The introduction of Miniket and Basmati rice established AWL as the only national brand offering regional rice variants, which strengthened our leader position in the FMCG category. Our regional variety for daily consumption includes Miniket and Basmati rice and will be available in 5 KG and 10 KG each. Fortune Gobindo Bhog Rice, is slated to be introduced as a special occasion premium rice very soon.

Our stride towards brilliance has garnered us many awards like the prestigious Brand of the Year 2022 conferred by Team Marksmen after insights drawn

from industry-wide in-depth research. We received this venerable honour at a gala event in Mumbai on

1st July 2022.

This year has been all about new beginnings for us.

We have launched two new TV Commercial ("TVC”). Fortune Soyabean Oil with Akshay Kumar and Fortune Sunlite Sunflower Oil with Samantha Prabhu, which won many hearts across the country. Not just that AWL launched regional packs of Sunflower oil in Tamil, Telugu and Kannada languages to connect better with our consumers in the Southern markets. AWL also launched two new variants of Superfood Khichdi and two variants of Poha viz., Indori Poha and Thick Poha. AWL also packed a new product Fortune Xpert Total Balance Oil with three blended oils at your Companys Mantralayam plant. On top of everything, AWL set a benchmark with a milestone achievement

of the highest ever mark of 2.5 lakh MT of edible oil

sales in the month of October.

At AWL, we strongly believe in giving back to the society in which we dwell in and our CSR initiative Fortune SuPoshan has stand true to this philosophy. The project won the prestigious CSR Project of the

Year Award at the 8th CSR Impact Awards 2022 organized by CSRBOX, a Dalmia Bharat Foundation initiative.

Our journey of goodness wouldve been incomplete without you. So, like every year, we pledge to achieve even bigger landmarks together.

Adani Agri Fresh Limited

Adani Agri Fresh Limited (AAFL), a wholly owned subsidiary of your Company has pioneered into

Controlled Atmosphere (CA) apple in India having state of the art infrastructure for Apple in Himachal Pradesh for the last 17 years.

It has set up CA Storage facilities with the capacity of 22,500 MT at three locations, Rewali, Sainj, and Rohru in Shimla District. Company has strong network across country also strategic partner to all major Modern Format stores, e-com players, large distributor and organized Retail chain stores.

FarmPik brand is the only organized brand into fresh produce space in India. Started from north now having presence all over India with the strong presence in retail market with Branded consumer pack. AAFL has started its operations in Kashmir with 1000 MT store, plan to expend gradually in next two to three year to 5000 MT.

Last year was very good for the farmer and overall production grew by 20%, In Himachal and Kashmir. AAFL has increased its capacity by another 2500 MT in Himachal. To cater uninterrupted supply to our distributors fresh trade has been started across country from July as we finish our CA apple by than.

This year is the first year when AAFL utilized 110% installed capacity with most effective operations. Competitions in CA apple business is growing @ 15 % YoY, to remain leader AAFL is increasing its capacity by hiring sites on long lease. Our plan of expending in Kashmir is big and we are working on building new market and territory to increase the sale.

Globally, last year has been very bad due to weather and other issue. India Imports approx. 4 Lakhs MT,

mainly from Turkey, Iran, New Zealand and Brazil. Overall apple imports have gone down by 25 % which has given good push to the home-grown apple.

With entering into new territory and channel AAFL could sale ever highest quantity during the year and

meet profitability targets for the year.

Media Business

The media and entertainment sector has a significant impact on society and the ability to change it. News and Information is one of the most powerful segments within the overall Media & Entertainment industry.

Though relatively smaller in size as compared to

entertainment segments, News and information has immense potential to serve our country of 1.4bn Indians with relevant, credible, up to date, anytime/

anywhere service on a device of their choice. Moreover, given the interest of world at large in India, its resurgence & economic potential as well as a large

diaspora, there is a great need to serve this need originating from India.

New Delhi Television has been a pioneer in Indias news television and digital journalism. Founded in 1988 by Radhika Roy and Prannoy Roy, NDTV is today the most credible and respected news network in India and a leader in digital reach. From the path-breaking "The World This Week” (nominated as one of Indias 5 best television programmes since Independence), the first private news on Doordarshan "The News Tonight”, producing Indias first 24-hour news channel "Star News” and the countrys first ever 2-in-1 channel Profit-Prime, NDTV has been at the forefront of every single news revolution.

Its channels NDTV 24x7 (English), NDTV India (Hindi) and Indias first ever 2-in-1 channel NDTV Profit- NDTV Prime (Business and Infotainment) continue to raise the standards of journalism with innovative programming and uncompromising integrity. Incisive and creative, the channels target the global Indian with news that is credible, true and fast. NDTV 24x7 is the only English News Channel from India which is beamed in the UK, USA, Canada, South Africa, Middle East, Australia, New Zealand, Mauritius and most of the SAARC Countries to reach out to the Indian Diaspora.

Other than its flagship channels NDTV 24x7 and NDTV India in English and Hindi, NDTV runs vibrant and fastgrowing digital platforms for its consumers in the form of www.ndt.vcom and www.ndtv.in in English and Hindi respectively. NDTVs YouTube Channels in English and Hindi have a combined subscriber base of 27.6 million. Additionally, there are special interest verticals on digital platforms in the areas of Business, Technology, Food, Movies, Sports, Health, and Lifestyle for the Company.

NDTV is currently available in 67 countries by a

combination of dedicated feeds as well as content syndication and in line with our Chairmans vision the

endeavour would be a global news brand originating from India.

Details of Significant Changes in the Key Financial Ratios and Return on Net Worth

Pursuant to amendment made in Schedule V to the Listing Regulations, details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios and any changes in Return on Net Worth of the Company (on standalone basis) including explanations therefor are

Risk Mitigation

Your Company is exposed to both internal as well

as external business risks. Your Company has a comprehensive risk management system in place, which is tailored to the specific requirements of its diversified businesses, considering various factors, such as the size and nature of the inherent risks and the regulatory environment of the individual business segment or operating company. The risk management system enables it to recognize and analyze risks early and take appropriate actions. The senior management of your Company regularly reviews the risk management processes of your Company for effective risk management.

Your Company is subject to risks arising from interest rate fluctuations. Your Company maintains its accounts and reports its financial results in rupees. As such, your Company is exposed to risks relating to exchange rate fluctuations. The Corporate Risk Management Cell works with the businesses to establish and monitor the specific profiles including strategic, financial and operational risks.

We believe that our multi-location operations also allow us to leverage the competitive advantages of each location to enhance our competitiveness and reduce geographic and political risks in our businesses.

Internal Control and Adequacy

Your Company has strong internal control systems and best in class processes commensurate with its size and scale of operations. The comprises of :

¦ There are well formulated policies & procedures for all major activities. These procedures facilitate effective business operations with governance.

¦ Well defined delegation of power with authority limits are in place for approving revenue as well as capex expenditure at level of organizational

hierarchy. This enables ease of decision-making processes in day-to-day affairs as well as long

term & short-term business plans.

¦ Financial control is effectively managed through Annual Budgeting process and its monitoring is carried out through monthly review for all operating & service functions.

¦ Your Company has a state-of-the-art ERP system to record data for accounting, consolidation & management information purposes and connects

to different locations for efficient exchange of information. It has continued its efforts to align all its processes and controls with global best practices.

¦ Your Company has a well-established online Compliance Management System in which

technology is seamlessly integrated with laws. The system provides comprehensive covering across all laws applicable on the business & its compliance update at each of operating units though management dashboard.

¦ There is a well-established multidisciplinary Management Audit & Assurance Services (MA&AS) in the organization, that consists of professionally qualified accountants, engineers and SAP experienced executives who carry out extensive audit throughout the year, across all functional areas & submit reports to Management and Audit Committee about the compliance with internal controls and efficiency and effectiveness of operations and key process risks.

¦ MA&AS follows Risk Based Annual Internal Audit

Plan. The audit plan and its scope are reviewed & approved by Audit Committee of the Board. The entire internal audit processes are web enabled and managed on-line by Audit Management System(AMS).

¦ Internal Audit is carried out in accordance with

auditing standards to review design effectiveness of internal control system & procedures to manage risks, operation of monitoring control, compliance with relevant policies & procedure and recommend improvement in processes and procedure.

¦ The Audit Committee of the Board of Directors regularly reviews execution of Audit Plan, the

adequacy & effectiveness of internal audit systems, and monitors implementation of internal audit recommendations including those relating

to strengthening of Companys risk management policies & systems.

In terms of Governances, there are independent

Committees in place for monitoring & governance

over efficiency & effective internal controls :

a) Risk Management Committee: Risk Management Framework which provides a process of identifying, assessing, monitoring, reporting, and mitigating various risks at all levels at periodic intervals. Under the framework your Company has constituted a Risk Management Committee to continuously monitor, report and mitigate various risks faced. The outcome of this monitoring is reported to the Audit Committee and to the Board of Directors on a quarterly basis.

b) Information Technology & Data Security

Committee: Information technology & data

security governance is an integral part of an overarching Office-wide governance structure. Your Company has a matured IT Governance process wherein Governance Committee periodically reviews, recommends & monitors

Companys IT priorities, projects, major IT

investments besides effectiveness of control established for data security.

c) Legal, Regulatory & Tax Committee to exercise oversight with respect to the structure, operation,

and efficacy of your Companys compliance program & to review compliance with applicable laws and regulations.

Human Resource Strategy

The Company believes that Human Resource is the principal driver of change. It pushes the levers that take futuristic businesses to the next level of excellence

and achievement. The Company focuses on providing individual development and growth in a professional work culture that enables innovation, ensures high performance and remains empowering. A focus has been given to HR transformation activities to revamp the HR organisation structure and processes. The new human resource management systems and processes are designed to enhance organisational effectiveness and employee alignment. The Company work, towards creating leadership in all business in which it operates. During the year, several initiatives, such as performance management systems, Learning & Development system and Talent Management system were put in place for efficient and effective organisation. A lot of focus is being given to enhance people capabilities through a e-learning management system. The broad categories of learning & development include behavioural, functional / domain and business related.

Many other programs for employee rejuvenation, creating stronger inter-personnel relations and team building and aimed at strengthening the bond across all divisions and locations of the company were organized. These programs helped employees significantly in leading a balanced work life in the organization. The HR function is committed to improve all processes based on the results and feedback and ensure that its manpower will remain its greatest asset.

Cautionary notice

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations and others may constitute "forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ from those expressed or implied. Several factors that could significantly impact the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic and overseas markets, changes in the Government regulations, tax laws and other statutes, climatic conditions and such incidental factors over which the Company does not have any direct control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements,

whether as a result of new information, future events, or otherwise.