Pitti Engg. Management Discussions

Global economic overview

The global economy was roiled by volatile food and commodity prices and elevated inflation. The Russia-Ukraine conflict, which caused supply chain disruptions worldwide, exacted a heavy toll on the economy. The rising costs of living, inflated food and commodity prices and tightened liquidity conditions also impeded global economic growth.

Supplychainconstraintsandmarketvolatilityhaveconsiderably dampened consumer sentiment and lowered capital outflows. Several nations continue to grapple with persistent demand-supply imbalances and decadal-high inflation rates. To tame inflation and achieve price stability, central banks around the world have responded with synchronised rate hikes and tightened monetary policies.

At the end of FY23, the global economy recovered gradually from the waning effects of the pandemic and geopolitical tensions. The global economic output is expected to witness steady growth, driven by stabilising inflationary pressures, reviving consumer sentiment and investor confidence.

The IMFs World Economic Outlook, April 2023, reports that global growth will reach register a growth of 2.8% this year before climbing to 3.0% in 2024. In comparison, advanced economies are projected to display a growth rate of 1.3% in CY23. Global inflation is expected to gradually decline, although slower than initially anticipated, from 8.7% in 2022 to 7.0% this year and 4.9% in 2024¹.

Outlook

Despite inflationary pressures, the global economy is supported by a robust labour market, increased domestic spending, an influx of foreign capital and a prudent response to the energy crisis in Europe.

Many emerging markets and economies (EMDEs) have already recovered, which has bolstered real incomes. An optimistic global outlook would also be determined by the speed and effectiveness of fiscal and monetary policy actions implemented to boost economic expansion. The Central Banks have been tightening monetary policy, which is expected to curb sticky inflation and foster long-term growth.

Indian economic review

The Indian government has managed to maintain a favourable domestic policy environment and prioritise structural reforms, allowing the countrys economy to remain resilient amid global challenges. The final advance estimates of the NSO indicate that India has registered a growth rate of 7.2% in the fiscal year 2022-23².

Additionally, the countrys stable inflation rates, higher disposable income and continued investment in infrastructure development are expected to contribute positively to economic growth in the future.

Various high-frequency indicators, such as GST collections, railway and air traffic, electronic toll collections and E- Way bill volume, suggest a robust economic recovery in India. This persistent growth momentum has positioned India as an attractive investment destination.

Private consumption highest (as a percentage of GDP) since FY15 across H1

Outlook

Despiteglobalchallenges,Indiaseconomicactivityhasremained robust due to a favourable domestic policy environment and the Governments continued emphasis on structural reforms

Stabilising inflation, narrowing current account deficit, improving consumer sentiments and a favourable policy environment are likely to aid the Indian economy. Moreover, government initiatives like Atmanirbhar Bharat and the Production-linked Incentive (PLI) scheme would contribute to economic growth by increasing local output.

A combination of rising disposable income, easy access to credit and lowering interest rates in the wake of a stabilising inflation trajectory will bode well for economic growth going forward.

Industry overview Industrial

Steel, cement and construction

The Steel sector plays a pivotal role for crucial sectors such as infrastructure, automobile, engineering and defence. India is now the worlds second-largest crude steel producer, producing 118.20 million tonnes (MT) of crude steel, a 17.9% increase over the same period previous year (CPLY). Indias finished steel consumption is projected to rise from 133.596 MT in FY22 to 230 MT in 2030-31. In the first half of 2022, Indias crude steel production increased by 8.8% to 63.2 MT, mostly due to increased demand from the manufacturing and construction industries³.

The introduction of the Production Linked Incentive (PLI) scheme, with an outlay of H 6,322⁴ Crore, is anticipated to encourage the industry to invest in increasing the capacity for specialty steel. Government support is encouraging planned capacity expansion. Although value-added steel is produced in India, the steel product portfolio is skewed towards low to mid-range value-added items.

The growth in demand for residential complexes among the urban population, along with the concurrent increase in construction activity, are the primary drivers of the cement industry. The governments recent efforts to build world-class infrastructure including roads and airports, and multimodal connectivity projects have fuelled the markets expansion. The construction of Indias seamless multimodal transportation network will operate in tandem with the PM Gati Shakti - National Master Plan (NMP) for multimodal connectivity, and cement consumption is predicted to grow as a result.

With more than 7% of the installed capacity worldwide, India ranks second in the production of cement.

The volume of cement consumed by the end of FY 2027 is predicted to be 450.78 million tonnes. Consumption will rise as a result of the surge in demand from industries like housing, commercial, and industrial buildings⁵.

Sugar

According to the Indian Sugar Mills Association (ISMA), domestic sugar production is expected to reach 340 lakh tonnes in sugar season 2022–2023 up from 358 lakh tonnes in sugar season 2021-2022. The highest ever diversion towards ethanol— nearly 45 lakh tonnes, up by 41% year-on-year—is predicted this year. This increasing diversion towards high realisation ethanol is likely to support 8-12% revenue growth for sugar mills this fiscal.

Revenue for sugar mills is predicted to rise by 8–12% in FY23. The expansion in installed capacity for sugar production and distilleries, as well as a rise in the aim and price for blending ethanol, are anticipated to support the growth. The distillery industry has a far higher profit margin than the sugar industry. Such enticing pricing for ethanol producers would help sugar mills pay cane farmers on schedule and enhance their liquidity.⁶

Pumps

The expansion of the Indian pump sector in recent years has been aided by expanding urbanisation, dropping groundwater levels, and other infrastructure-improvement programmes. The development in domestic infrastructure buildings and other water-intensive industries have also contributed to the market expansion. Water and wastewater, chemicals, pharmaceuticals, construction, food and beverage, and mining are the primary end-users in India.

Going forward, industrial pumps are predicted to gain popularity in India due to factors like increased emphasis on energy-efficient products in the water and wastewater industry, development of generic pharmaceutical production, rapid urbanisation, rise in large-scale housing projects, and expansion of infrastructure projects ⁷.

Power generation Thermal energy

In India, power is generated from conventional (Thermal, Nuclear and Hydro) and renewable sources (Wind, Solar, Biomass and so on). However, thermal power remains the primary source of energy generation, accounting for 75% of total power generation.⁸

The overall power generation (Including generation from grid connected renewable sources) in the country stood at 1624.465 Billion Units (BU) during 2022-23. Thermal power generation increased by 8.21% during 2022-23 ⁹.

Tentative Year-wise Thermal Capacity likely to be included into National Capacity:

FY	2023-24	2024-25	2025-26	2026-27	2027-28	Total (MW)
Central	6880	4380	0	660	660	12580
State	7820	5040	0	0	0	12860
Private	0	0	0	0	0	0
Total	14700	9420	0	660	660	25440*

*Yelahanka CCPP (370 MW) and Uppur SCTPP (2x800 MW) have not been included in this capacity. (Source: CEA)

India is expected to tentatively add 25,440 MW of thermal capacity in the next 5 fiscal years¹⁰ .

Energy consumption in India is anticipated to increase in tandem with the countrys economic expansion. It is anticipated that the deployment of coal-based thermal power plants will continue to contribute significantly to the countrys energy mix.

Renewable energy

The Indian government has launched a number of programmes to boost renewable energy producing capacity, including the National Solar Mission (NSM), Ultra Mega Solar Power Projects, Wind-Solar Hybrid Policy, and others. These initiatives have helped India make significant progress in increasing its renewable energy power generation capacity. Renewable energy sources (including hydro) had an installed capacity of 173,619 MW which accounted for 41.4% of the total installed generation capacity as on 31st March, 2023¹¹. The government is committed to further increasing the countrys renewable energy power generation capacity, and it is expected that India will become a major global player in the renewable energy sector in the coming years.

India has prioritised renewable energy as a long-term strategic focus area by planning sizeable solar power, wind power, biomass, and hydro power projects. To encourage private sector participation in renewable energy, the government has also provided incentives like faster depreciation, reduced customs and excise fees, and tax holidays.

Long-term results are likely to include a decreased reliance on fossil fuels, increased energy security, decreased greenhouse gas emissions, and numerous employment opportunities, particularly in rural areas. Indias strategic emphasis on renewable energy will continue to be essential for accomplishing its long-term sustainable development objectives.

Installed generation capacity (fuel wise) as on 31.03.2023

Category	Installed generation capacity (MW)
Total fossil fuel	2,37,269
Non-fossil fuel
Renewable energy sources (incl. Hydro)	1,72,010
Hydro	46,850
Wind	42,633
Solar	66,780
Bio-mass power/Cogen	10,248
Waste to Energy	554
Small hydro power	4,944
Nuclear	6,780
Total non-fossil fuel	1,78,790
Total installed capacity	4,16,059
(Fossil fuel & non-fossil fuel)

Diesel generator sets

The DG sets have a competitive advantage of providing uninterrupted power supply and portability, unlike utilities. Demand from commercial applications are mainly driving the growth of the Indian diesel genset industry. Investments in infrastructure projects, construction activities, hospitals, data centres, 5G network and rural infrastructure is likely to further drive demand in this segment.

5G and 5G rollout

5G has the potential to revolutionise Indian society, opening up new economic opportunities and societal benefits. The Indian government has taken proactive steps to foster innovation and research in the 5G domain, offering free access to the 5G Test Bed for start-ups and MSMEs. This has led to the development of various 5G technologies and intellectual property that can be transferred to industry partners, promoting the implementation of 5G in India and boosting indigenous technology development. The rapid rollout of 5G, covering over 700 cities within eight months since its launch, has been facilitated by spectrum availability, investments from telecom operators, and the strong demand for faster internet speeds. The impact of 5G on Indias economy is projected to be significant, bolstering the digital economy, creating jobs, and improving the quality of life.¹²

The rapid deployment and increasing demand for 5G services are expected to drive infrastructure buildup by industry players to meet the rising demand. As the need for 5G infrastructure grows, specialized equipment such as base stations, antennas, routers, switches, and other networking components will be in higher demand. This infrastructure development will further support the expansion of 5G networks in India, contributing to the overall economic impact and enhancing the countrys digital ecosystem.¹³

Hospitals

In recent years, Indias healthcare industry has made considerable achievements, as seen by the improved patient-to-doctor ratio of 1:854 in 2022, which exceeds the WHO guideline of 1:1000. The COVID-19 pandemic pushed digital healthcare and telemedicine to the forefront, and they have now become integral to the future of healthcare.¹⁴

To fully harness the potential of digital healthcare, hospitals would increasingly require uninterrupted power supply owing its criticality for patient care and safety and ensuring the continuous operation of life-saving medical equipment and specialised instruments. The Ayushman Bharat Digital Mission has introduced AI-enabled handheld devices, point of care cancer screening tools, digital pathology, and imaging-based algorithms, expanding the role of artificial intelligence (AI) in healthcare. Physicians and patients alike have developed confidence in using digital services, and teleconsultations have steadied at five to six times their pre-pandemic levels. This shift towards lower-cost, higher-access delivery channels signifies the transformative impact of technology on healthcare.

Residential and commercial spaces

In the post-COVID-19 period, the Indian real estate market experienced high demand across various sectors, driven by pent-up demand and positive market sentiments. Despite global challenges in 2023, Indias strong macroeconomic fundamentals are expected to support the continued development of the real estate sector. Leasing activity for offices recorded significant growth of 40% year-on-year in 2022, along with decreasing vacancy levels and rental recovery in several cities. The housing market also saw positive trends, with an estimated 312,666 housing units sold in India in 2022. Affordable housing financing options and low-interest house loans are expected to enhance homeownership accessibility for a broader population segment. Real estate developers are focusing on providing innovative and sustainable housing solutions, including integrated townships and smart cities with modern amenities and infrastructure. These factors, coupled with the evolving expectations and lifestyles of the growing Indian middle class, will continue to drive demand in the housing market.

Transportation Railway freight services

Rail freight transportation supports industry and supply chains since it is economical, energy-efficient, and capable of hauling heavy loads. On an average, 9,146 freight trains run every day. During FY22-23 (up to November 2022), Indian Railways (IR) carried 976.8 million tonnes of revenue-earning freight (excluding KRCL), as against 901.7 million tonnes during the corresponding period in FY21-22 (excluding KRCL), marking an increase of 8.3 per cent. Overall, the Indian Railways loaded 1,512 MT of goods in FY 22–23, setting a record.

One of the biggest initiatives in railway freight infrastructure is the construction of the Eastern and Western dedicated freight corridors (DFCs), which complements the golden quadrilateral. The nations transport output is projected to increase as a result of this initiative while transit time and costs are anticipated to decrease.

Passenger rail

The number of passenger trains operated by the railways each day increased to 13,523 for the fiscal year 2022-23 (up to November 2022–2023), and the number of originating passengers exceeded 418.4 crore. In the coming years, increased mobility across the country and a need for faster and effective trains will help boost passenger traffic even more¹⁵.

The government has allocated a record capital outlay of H 2.4 crore for the Railways in the Union Budget 2023-24 to match the increased rail traffic anticipated in the future. Also, initiatives like delegation of powers at the field level (which helped in commissioning of doubling projects), close monitoring of the progress of projects at various levels, regular follow-up with state governments and relevant authorities for expeditious land acquisition, forestry and wildlife clearances are expected to accelerate the pace of railway projects completion.

The induction of high-speed, self-propelled Vande Bharat Trains that are equipped with ultra-modern features like quick acceleration (with a maximum speed of 160 kmph), on-board infotainment and Global Positioning System (GPS) based passenger information system will lead to a substantial reduction in travel time and improve the passenger experience.

Metro rail

According to the economic survey 2022-23, 721 km of metro rail network was made operational by August 2022. The Indian metro rail industry is one of the fastest-growing in the world.¹⁷ The growth of the Indian metro rail industry is having a transformative impact on urban transportation in India. Metro rail is reducing traffic congestion, improving air quality, and making cities more liveable. It is also creating jobs and generating economic activity. New metro rail (subway) systems are being constructed in more than 20 Indian cities, and are accelerating the transformation of urban mobility¹⁶.

The Indian metro rail industry is also undergoing a digital transformation. Metro rail systems are increasingly using digital technologies to improve passenger experience. The use of technologies like building information modelling (BIM), advanced analytics, drones, and IoT-based digital monitoring systems is rapidly modernising the industry. Moreover, the entry of private players is also expected to bring in new technologies and innovative solutions to the industry and make metro rail more affordable.

The metro rail networks are a key part of the governments plan to develop world-class infrastructure in India. With continued government support and public demand, the industry is poised for continued growth in the coming years.

Off highway vehicles

The off-highway vehicle market is a rapidly growing industry and is being driven by a number of factors, including:

• Construction equipment: The market for off-highway vehicles is expanding due to increased need for equipment to automate work in a range of industries, including construction. Such vehicles are in high demand for large-scale infrastructure projects, and their availability has reduced the cost of heavy construction equipment.

• Agricultural sector: The constantly expanding trend of mechanised automation underpins the vast growth prospects for the demand for agricultural tractors and equipment. Notably, agricultural tractors are anticipated to become widely used in developing nations, supported by rising farmer expenditure on automating many farming tasks.

• Ports sector: The demand of off-highway vehicles from port and material handling industry is also buoyant, spurred by expansion of international trade over the decades. Thus, port and material handling equipment vehicles presents abundant opportunities.

• Rise in popularity of recreational activities: Off-highway vehicles are also used for recreational activities, such as off-road racing, camping, and hunting. The increasing popularity of these activities is driving the demand for off-highway vehicles¹⁷.

Appliances and consumer durables

The Indian market for consumer durables is anticipated to expand at a CAGR of 6.5% from 2022 to 2030. Household demand for Indias consumer electronics sector continues to be supported by changes in lifestyle and accessible credit options. Due to the increased electrification of rural areas, the development in affordable housing, and the growing infrastructure, consumer durable and electronics companies estimate that the majority of expansion will come from and extend beyond Tier II towns. Consumers preference for convenience and smart technology-based items fuels the need for high-value, feature-driven appliances that are easy to use and energy efficient.

The Indian consumer electronics durables market has attracted numerous sizeable investments in the form of FDI inflows, the entry of new brands, as well as merger and acquisition strategies used by major international market players. Also, a number of OEMs are seeking to localise their products in India in order to add value for the Indian customers.

New technologies Electric vehicles

According to estimates, Indias EV market would be worth USD 2 billion in 2023 and USD 7.09 billion in 2025. By 2030, the EV market is anticipated to reach 10 million annual sales, growing at a CAGR of 49% between 2022 and 2030. Also, it is anticipated that several auto ancillaries and related businesses would expand alongside the EV market¹⁸ .

The Indian government has also been implementing a number of programmes to promote the expansion of electric mobility, such as 100% FDI through the automotive route in the EV space, incubator programmes, shared facilities for prototyping and small-scale manufacturing, financial support through the Credit Guarantee Scheme for Start-ups (CGSS), tax breaks, and consumer subsidies. Also, the PLI programme encourages indigenous production of EV batteries and decreases reliance on imports. This will significantly reduce the price of EVs and provide the infrastructure required to support the EV industry.

India reaffirmed its commitment to the aspirational objective of changing at least 30% of private automobiles to EVs by 2030 at the Conference of the Parties 26 (COP26) Summit. The rise in oil prices and import costs, increasing pollution, and worldwide commitments to combat global climate change are some of the main reasons for India to quicken the transition to e-mobility.

Data centres

CRISIL predicts that by 2025, Indias data centre capacity would have doubled to between 1,700 and 1,800 MW from an estimated 870 MW current capacity of the nation. Between 2023 and 2025, India is estimated to add 890-900 MW of capacity ¹⁹ .

The government is ramping up its digital activities to improve the environment for data centre services with a goal of data localisation. The Ministry of Electronics and Information Technology (MEITY) has established a strategy for data centres in 2020 that elevates them to the same infrastructure status as roads, trains, and electricity. This policy aims to streamline the approval procedure for data centre services. The Ministry of Economy, Industry, Trade and Energy (MEITY) has also announced that cloud data centres will get SEZ designation.

However, a boost to data centres demand in India is expected to come from rising digitisation and internet penetration, the implementation of Data Protection Bill and the Data Centre Policy, as well as the widespread adoption of 5G services. Data centre services are also likely to benefit from tax breaks in states like Maharashtra, Karnataka and Uttar Pradesh, as well as energy subsidies and discounts on land costs.

Operational and financial review

Despite macroeconomic challenges, Pitti has registered an encouraging operational and financial performance during the reporting year. On account of reduction in inventory level and improvement in realisation from debtors, the Company was able to reduce the working capital cycle. This helped enhance our cash flow.

The key financial highlights of the Company are summarised as below:

			(H in crore)
Particulars	FY 2022-23	FY 2021-22	Y-o-Y change
Revenue from operations	1,100.17	953.82	15.34%
EBIDTA	151.39	132.63	14.14%
PAT	58.83	51.90	13.35%

Outlook

The Company looks forward to capitalise on the emerging opportunities in the RRTS, Vande Bharat, State and Metro segments in the days ahead as it anticipates strong demand from Railways business segment. The Companys focus on the machine components business will continue which is likely witness a sizeable growth from next financial year. The Company has also developed laminations for a number of electric mobility platforms and customers in the hydro power segment.

The Company is well positioned owing its new product developments coupled with ‘China plus one strategy and is expected to see continued growth in the export business in the upcoming years.

Key ratios

Particulars	2022-23	2021-22	Y-o-Y Change	Reasons for variance more than 25%
Inventory Turnover (No. of times)	4.30	4.44	-3.15%	-
Debtors Turnover (No. of times)	5.70	5.07	12.43%	-
Interest Coverage Ratio (in times)	3.97	3.88	2.32%	-
Current Ratio (in times)	1.20	1.19	0.84%	-
Debt Equity Ratio (in times)	0.87	1.04	-16.35%	-
Operting Profit Margin (%)	13.76	13.91	-0.14%	-
Net Profit Margin (%)	5.24	5.44	-0.20%	-
Return on Net Worth (%)	19.04	19.97	-0.93%	-
Debt Service Coverage Ratio (in times)	3.60	2.81	28.11%	Increased earnings on account of overall business growth.
Trade Payables Turnover Ratio (in times)	3.40	5.16	-34.11%	Due to the improvement in credit period by vendors, the payable outstanding has increased, which is favourable.

Risk management

The Companys established Risk Management framework has actively assisted it in identifying the risks and mitigating them through mitigation strategies that are periodically reviewed and monitored. The framework is also integrated into the Companys process for strategic business planning. Critical assumptions underlying the strategy are identified and addressed, as are important internal and external risks inherent in each of the business verticals.

Risk management at the Company is based on the following pillars:

1. Compliance Risk Management

2. Process Risk Management

3. Enterprise Risk Management (ERM)

Compliance risk management includes a mechanism of reporting and assurances with respect to adherence with laws and regulations prevailing in the country.

Process risk management involves review of business related operational and financial processes and controls through a risk-control matrix.

Identification and mitigation initiatives of other enterprise risks are overseen on a continuous basis by the Management and business teams.

During the year FY2023 a Risk Management Policy was developed to detail the process for identifying, assessing, and responding to enterprise-wide risks. The Companys ERM program operates with the following aims:

• Proactively manage risks and drive timely mitigation.

• Optimize costs and the effort needed to manage risks.

• Build necessary resilience via crises management or business continuity plans.

• Improve compliance with good corporate governance guidelines and practices, as well as laws and regulations.

The ERM program covers financial risks, commercial and operational risks, sectoral risks, sustainability and ESG risks, information and cybersecurity risks, crisis interruption and business continuity risks to meeting the Companys objectives and goals. Additionally, significant process or compliance risks are escalated as enterprise level risks.

severity and frequency/likelihood) has been defined, and a formal monitoring and governance structure has been set up. Also, a risk universe and taxonomy has been developed to define and aggregate risks across the Company.

The Company currently manages the following material risks:

Commercial : Growth risks

The Company operates in an organically growing, but niche segment. To secure its growth aspirations, the company has been meticulously focusing on meeting customer expectations, securing talent and the enabling infrastructure in a timely manner.

The Company is actively pursuing modern technology-enabled business opportunities in the Electric Vehicles, Aviation and other sectors. Europe is increasingly emerging as a source of opportunity for the Company and the Company management, supported by the Commercial team constantly monitor the emerging landscape to capitalize on the opportunities and mitigate potential threats.

Commercial : Customer concentration

The Companys overdependence on a particular customer, user segment or region can pose a business risk in case of the said customer undergoing a business crisis or preferring to shift to another supplier. In addition to focusing on long-term customer relations, the Company manages this risk by increasing its value proposition via forward and backward integration and by diversifying its customer base.

Operational : Geopolitical Risk

In the earlier few quarters, multiple geopolitical risks events including the war in Ukraine, Financial Sector Contagion and the Pandemic have been negatively impacting demand for several industries and increasing input costs. The Company is constantly assessing these unfolding events and scenarios for any risk and/or potential opportunities to its business or supply chain.

Operational : HR and People

Any erosion in commitment, competence, and compassion of employees towards the Companys stated vision of value creation can incapacitate the Companys abilities and reputation. In line with its vision and goals, the Company constantly endeavours to secure a skilled talent pool, impart the right technical trainings, and plan second-in-line for all critical roles.

Health and Safety Risks

Occupational hazards may endanger the safety of our employees and communities around our manufacturing locations. Increased automation with extra focus on workmens safety has helped manage and improve Health and Safety performance.

Information and Cyber Security : Digitization, Information and Cyber Risks

The Company has been embarking on digitization initiatives both in the office place and shopfloor. Notable changes include extended use of cloud-based solutions for banking and other office applications, automation / robotics and IOT device connectivity in manufacturing plants, as well as increased leverage of ERP systems.

While these digitization initiatives favourably affect the achievement of desired efficiencies, they also bring with them potential risks if not correctly implemented. The Company is focused on regularly training its staff on the new IT protocols or controls to be followed, while parallelly implementing information and cybersecurity safeguards

Sectoral: Technology risk

Being in the business of engineered goods with a significantly higher level of customization, the Companys business is susceptible to technological/ product process obsolescence. The Company deploys a twin-pronged approach to stay ahead of the technological curve. First being steady addition of capacities that imbibes the best-in-class global technologies and processes available at that point in time. The second level of this approach is to undertake periodic modernization of its legacy facilities by way of maintenance capex.

Sectoral : Economic Risks

The Companys business is in a capital-intensive sector that is inextricably linked with the overall economic, infrastructural, and industrial growth of the country/region. Geographic and customer segment diversification, including into a few non-capital goods continue to be key response strategies deployed by the Company.

Financial Risks : Commodity and Forex volatility

The recent geopolitical events have made both the foreign exchange, commodity, and input costs very volatile. Where possible, the Company insulates itself against these risks through its agreements and contracts. Additionally, where possible, hedging strategies are deployed to manage open exposures from commodity price increases or foreign exchange volatility.

Financial Risks : Liquidity

The Companys business is in a capital-intensive sector involving a longer cycle of product development that often includes proof of concept components as well. Besides a strong balance sheet, the Company always follows a prudent working capital management regime.

Sustainability and ESG : ESG Risks

While the Company operations do not pose a significant environment risk, the Company is mindful of reducing its carbon footprint through steady rationalization of energy and water consumption and continues to adhere to the principle of 4Rs (reduce, reuse, recycle and recover) along with investing in energy-efficient capital equipment.

Following-through on Environment, Social and Governance (ESG) commitments to regulators, customers and investors enables the Company to secure its reputation and future business opportunities.

Crisis Management, Business Interruption and Business Continuity : Crisis events

In the past, the Company effectively managed the COVID-19 pandemic through a combination of careful planning and resilience. High severity and high velocity (High velocity risks have extremely low time to affect) risks and crisis events are factored for BCP or contingency plans.

Internal control system and adequacy

The Company has a robust and effective internal control mechanism in place, one that is commensurate with the size, nature and complexities of its business. Internal control mechanism, which is benchmarked with evolving best practices at regular intervals, ensures Companys adherences to all applicable regulations in letter and spirit. It also protects

Companys various assets from unauthorised use while also ensuring accuracy of financial reporting.

The Companys robust Management Information System, spanning all critical functions, forms an important pivot of internal controls. The leadership team, including all the functional/ unit heads, serves as the first ring fence. Periodic internal audits and the second ring fence formed by an independent internal auditor, reviews control mechanism and its efficacy. The internal audit is entrusted to an independent Chartered Accountants firm, M/s. SVD Associates.

The Audit Committee periodically reviews the efficacy of control mechanism, offering improvement suggestions, as and when required. Internal control on financial reporting is attested by the Companys statutory auditors.

Human resource

The Company strives to create a work environment that fosters a healthy and secure work environment for its employees since it believes that human resources are the most precious assets in any organisation. The Company recognises that its human capital has a significant impact on its growth, success, productivity, and shareholder value. As a result, it provides multiple opportunities for career progression while also rewarding and recognising exceptional achievement.

Moreover, the Company remains steadfast in its commitment to institutionalise and enhance its human resource practices. The establishment of a culture that embraces continuous learning, collaboration, and high-performance, coupled with adequate recognition and incentives, significantly contributes to harnsessing the full potential of its human capital. The Company facilitates the comprehensive development of its employees through well-structured training programmes, on-the-job learning opportunities, and refinement of their behavioural skills. This collective effort ensures the holistic growth of its workforce.

The Company has 1331 Employees as of 31st March 2023.

Opportunities and challenges Opportunities

• China-plus-one strategy

India is in a strategic position as a result of its geographical location, vast market, skilled workforce supply, and low labour costs. As more international manufacturing companies begin to transfer their bases away from China in the wake of the pandemic and trade tensions, it presents significant opportunity for the Company to attract overseas orders and investments.

• Government incentives

The Aatmanirbhar Bharat scheme, places a strong emphasis on import substitution and exports from India, along wih the Production Linked Incentive (PLI) scheme for investments in domestic manufacturing across key sectors, have made India a preferred location for manufacturing around the world. The Company can leverage the opportunity to expand its footprint.

• Growing demand for engineering services

Engineering services are in high demand across the world as companies and governments invest in infrastructure, manufacturing, and other initiatives. This creates opportunity for the Company to grow its operations and serve a broader spectrum of clientele.

• Advances in technology

Advances in technology are creating new opportunities for engineers, as they are needed to develop and implement new technologies. The Company can stay ahead of the curve by investing in research and development and by hiring engineers with expertise in emerging technologies.

• Globalisation

The global economy is becoming increasingly interconnected, which creates opportunities for engineers to work on projects in different countries. The Company can tap into this opportunity by expanding its international presence.

Challenges

• Competition

The engineering industry is highly competitive, with many companies vying for clients.

• Geo-political

Geo-political developments and supply chain disruptions pose a challenging environment due to volatile raw material prices.

• Skills shortage

There is a shortage of skilled personnel in many countries, which can make it difficult for the Company to hire the talent it needs.

Cautionary statement

Statements in this Management Discussion and Analysis report that describe the Companys objectives, projections, estimates, expectations, or predictions may constitute Forward-looking statements within the meaning of the relevant laws and regulations. These statements are predicated on a number of expectations and assumptions about the future. Since the Companys operations are impacted by several internal and external factors outside of its control, actual results could significantly differ from those stated or inferred. The Company disclaims any obligation to update publicly any forward-looking statements in light of new information, future developments, or other factors. The risks listed here are not exhaustive, therefore readers are advised to be cautious. Readers are urged to use their best judgement when determining the risks connected to the Company.

Directors Report

Dear Members,

Your Directors are pleased to present the 39th Annual Report on the business and operations of the Company together with the Audited Financial Statements (Standalone and Consolidated) for the year ended 31st March 2023.

Business Overview

Pitti Engineering Limited is engaged in the manufacture of engineering products of iron and steel including electrical steel laminations, sub-assemblies for motor & generator cores, die-cast rotors and machined casted & fabricated parts and shafts. The Company supplies a range of engineering products to vastly diversified segments like hydro and thermal generation, windmill, mining, cement, steel, sugar, construction, lift irrigation, freight rail, passenger rail, mass urban transport, E-mobility, appliances, medical equipment, oil & gas and several other Industrial applications. Our products finds a suitable application in almost all engineering application.

Financial Results

The standalone financial performance of your Company for the year ended 31st March 2023 is summarised below:

Particulars	2022-23	2021-22
Net Revenue from Operations	110,017.15	95,382.38
Other Income	1,781.46	1,644.02
Profit before Finance Costs, Depreciation, Amortisation and Tax	16,920.61	14,907.10
Less: Finance Costs	4,465.78	3,960.39
Profit before Depreciation, Amortisation and Tax	12,454.83	10,946.71
Less: Depreciation & Amortisation	4,464.97	3,886.66
Profit before Tax	7,989.86	7,060.05
Less: Tax expenses	2,106.86	1,869.93
Profit after Tax	5,883.00	5,190.12
Add: Other comprehensive income	(118.12)	1.94
Total comprehensive income for the year	5,764.88	5,192.06
Add: Surplus at the beginning of the year	17,937.11	13,121.64
Less: Dividend (Interim & Proposed)	753.18	(376.59)
Less: Transferred to General reserve	-	-
Surplus carried to Balance sheet	22,948.81	17,937.11

Operating Results and Business

India continued to be one of the fastest growing major economies of the world during the reporting year. Your Company successfully leveraged the opportunities in the engineering and manufacturing sector, thanks to its core capabilities. Your Company prioritised the development of novel and cutting-edge products tailored to meet the diverse needs of downstream industries. Aligning with the increasing opportunities and demand within the industry, it made a substantial capital investment to bolster its capabilities. The Capacity utilisation for the year remained steady. Buoyed by strong order inflows from both international and domestic markets, the sales for FY23 reached an impressive 36,297 MT, resulting in a new record for profitability.

The net revenue from operations for the financial year 2022-23 was H 1100.17 Crore as against H 953.82 Crore in the previous year and the total comprehensive income for the period was H 57.65 Crore as against H 51.92 Crore in the previous year.

The total debt as on 31st March 2023 was H 290.18 Crore which includes H 121.88 Crore long-term debt and H 168.30 Crore of short-term debt (accrued interest included). Cash and cash equivalents and other bank balances at the year end was H 65.17 Crore resulting in a net debt position of H 225.01 Crore. We continued to maintain a conservative leverage profile with a total debt to equity ratio of 0.87x.

Subsidiaries, Associates and Joint Ventures

There were no significant operations carried out in Pitti Rail and Engineering Components Limited a Wholly Owned Subsidiary (WoS) during the year ended 31st March 2023.

Your Company does not have any joint venture or associate companies. There has been no material change in the nature of business of the subsidiary. A report on the performance and financial position of the subsidiary, set out in the prescribed form AOC-1 in terms of proviso to Section 129 (3) of the Companies Act, 2013 is provided as Annexure to the consolidated financial statements and hence not repeated here.

Consolidated Financial Statements

The Audited Consolidated Financial Statements of the Company as on 31st March 2023, which forms part of this Annual Report, have been prepared pursuant to the provisions of SEBI Listing Regulations and applicable Indian Accounting Standard (IndAS) on Consolidated Financial Statements (IndAS-110) as notified by the Ministry of Corporate Affairs.

The annual accounts of the subsidiary company are kept for inspection by any member at the Registered Office of the Company as well as at the Registered Office of the subsidiary company and also available on the website of the Company, www.pitti.in Any member interested in a copy of the accounts of the subsidiary may write to the Company Secretary at the Registered Office of the Company.

Material Changes

There have been no material changes and commitments affecting the financial position of the Company between the end of the financial year of the Company to which the financial statements relate and the date of this report. Further, it is hereby confirmed that has been no change in the nature of business of the Company.

Transfer to Reserves

The Company has not transferred any amount to the General Reserve out of the amount available for appropriation during the financial year ended 31st March 2023.

Dividend

Your Directors are pleased to recommend a final dividend of 1.20 (24%) per equity share of face value of H 5/- each for the financial year ended 31st March 2023, subject to the approval of members. The final dividend, if declared by the members at the ensuing 39th Annual General Meeting will be paid within 30 days from the conclusion of 39th AGM subject to deduction of tax at source as applicable to the members whose names appear on the Companys register of members as on 11th August 2023 and in respect of the shares held in dematerialised mode to the members whose names are furnished by the National Securities Depository Limited and Central Depository Services Limited as beneficial owners as on that date.

The recommended final dividend is in addition to the interim dividend of H 1.50/- (30%) per equity share of face value of H 5/- each declared on 14th February 2023 paid to the shareholders on 6th March 2023.

The total dividend for the financial year, including the proposed final dividend, amounts to H 2.70/- (54%) per equity share and will absorb H 8.65 Crore, a payout of (14.70)% of the profit after tax of the Company, which is in line with the dividend distribution policy of the Company.

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend distribution policy is available on the Companys website at https://www.pitti.in/investordesk/Docs/Client/CLT1/ Dividend%20distribution%20policy.pdf

Share Capital

During the year under review there has been no change in the authorised and paid-up share capital of the Company. The Company has not issued shares with differential voting rights, employee stock options and sweat equity shares.

Public Deposits

During the year under review, your Company has not accepted any deposit within the meaning of Section 73 and 74 of the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014 (including any statutory modification(s) or re-enactment for the time being in force.

Pursuant to Rule 2(c) (viii) of the Companies (Acceptance of Deposits) Rules, 2014, the Company has received unsecured loans from its Directors. The details of which are provided in the Financial Statement and under transactions with related parties which forms part of this report.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo pursuant to Section 134(3)(m) of the Companies Act, 2013, read with the Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as an Annexure-1 and forms an integral part of this report.

Significant and Material Orders Passed by the Regulators or Courts

There are no significant and material orders passed by the regulators / courts that would impact the going concern status of the Company and its future operations.

There are no proceeding pending under the Insolvency and Bankruptcy Code, 2016 and there are no instances of onetime settlement with any Bank or Financial Institution.

During the year under review the open offer made in 2011 by the acquirers Pitti Electrical Equipment Private Limited and Smt Madhuri S Pitti belonging to the promoter group was concluded as per SEBI directions and order of the Honble Supreme Court of India dated 11th July 2022.

Directors & Key Managerial Personnel

During the year under review, Shri D V Aditya was appointed as Independent Director w.e.f 10th August 2022. With deep regret, we report his sad demise on 21st October 2022. Your Directors would like to place on record their highest gratitude and appreciation for the invaluable contributions made by Shri D V Aditya to the Company.

In accordance with the provisions of Section 152 of the Companies Act, 2013 Shri Sharad B Pitti, Chairman & Managing Director retires by rotation and being eligible offers himself for re-appointment.

None of the Directors of the Company are disqualified under the provisions of the Companies Act, 2013 and SEBI Listing Regulations, 2015. The certificate of non-disqualification of Directors pursuant to SEBI Listing Regulation is annexed to this Report.

The Independent Directors of the Company have submitted a declaration confirming that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16 (1) (b) of the SEBI Listing Regulations and that they are not aware of any circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge duties with an objective independent judgment and without any external influence. In the opinion of the Board, all Independent Directors are independent of the management.

In terms of Section 150 of the Companies Act, 2013 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, all the Independent Directors of the Company have registered themselves with the databank maintained by the Indian Institute of Corporate Affairs. Further all Independent Directors are exempted from the requirement to undertake online proficiency self-assessment test as required under the said rules.

During the year under review, Shri Nand Kishore Khandelwal, President Corporate Resources & CFO resigned from the Company with effect from 13th April 2022. Shri Akshay S Pitti was appointed as Interim Chief Financial Officer with effect from 14th April 2022 in addition to being the Vice-Chairman

& Managing Director of the Company. Shri M Pavan Kumar, existing General Manager Finance was appointed as Chief Financial Officer of the Company with effect from 12th November 2022. Shri Akshay S Pitti ceased to be the Interim Chief Financial Officer of the Company with effect from 11th November 2022 and continues in his role as the Vice-Chairman & Managing Director of the Company.

The following are the Key Managerial Personnel of the Company as on the date of this report.

Shri Sharad B Pitti, Chairman & Managing Director, Shri Akshay S Pitti, Vice-Chairman & Managing Director, Shri M Pavan Kumar, Chief Financial Officer and Ms. Mary Monica Braganza, Company Secretary & Compliance Officer.

Meetings of the Board

Five meetings of the Board were held during the year. The details of composition of the Board, particulars of meetings held and attended by each Director are detailed in the Corporate Governance Report, which forms part of this Report.

Committees of the Board

Detailed composition of the Board committees, number of meetings held during the year under review and other related details are set out in the Corporate Governance Report, which forms a part of this Report.

Board Evaluation

Pursuant to the provisions of the Companies Act, 2013 and SEBI Listing Regulations, the Board has carried out the annual evaluation of the Directors as well as the evaluation of the Board and its Committees. The performance evaluation of the Independent Directors was carried out by the entire Board, except the Director being evaluated. The performance evaluation of the Chairman & Managing Director and the Vice-Chairman & Managing Director was carried out by the Independent Directors. The process was carried out by circulating questionnaires on the functioning of the Board, its Committees and Individual Directors on parameters approved by the Nomination and Remuneration Committee.

As an outcome of the above exercise, it was noted that the Directors come with background of finance, law, banking, energy and HR as well as corporate and governance experience. As a mature Board it has helped in strategizing actions and effectively monitoring the progress. The Board has ensured compliance with all statutory, legal and financial norms and stipulations. The Board has functioned as a cohesive and focused body and has guided the management. It was also noted that the Committees of the Board are functioning well, and satisfaction was expressed on the performance of Independent Directors and the Executive Directors of the Company.

Particulars of Employees and Related Disclosures

The information relating to remuneration and other details as required pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, is provided as an Annexure-2 to this report.

The statement containing particulars of employees as prescribed under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. However, as per the provisions of Section 136(1) of the Act, the annual report is being sent to all the members excluding the aforesaid statement. The statement is available for inspection on all working days, during business hours, at the Registered Office of the Company. Any member interested in obtaining such information may write to the Company Secretary and the same will be furnished on request.

Directors Responsibility Statement

Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors of your Company confirm that:

a) in the preparation of the annual accounts for the financial year ended 31st March 2023, the applicable Accounting Standards have been followed and there are no material departures from the same.

b) such accounting policies as mentioned in the notes to the financial statements have been applied consistently and judgements and estimates that are reasonable and prudent have been made so as to give a true and fair view of the state of affairs of the Company as at 31st March 2023 and of the profit of the Company for the year ended on that date.

c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

d) the annual accounts have been prepared on a ‘going concern basis.

e) proper internal financial controls laid down by the Directors were followed by your Company and that such internal financial controls are adequate and operating effectively and

f) proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.

Industrial Relations

The Company enjoyed cordial relations with its employees during the year under review. Your Company has always considered its workforce and their skills as its valuable asset and continues to enhance their performance with emphasis on aligning it with the changing business requirements. The periodical trainings, incentives, increments and other welfare measures ensure healthy industrial relations. The total number of employees on rolls as on 31st March 2023 was 1331.

Prevention of Sexual Harrassment

Your Company has formulated a policy for the prevention of sexual harassment at the workplace. It ensures prevention and deterrence of acts of sexual harassment and communicates procedures for their resolution and settlement. The Company is committed to creating and maintaining a healthy working environment that enables employees to work without fear or prejudice, gender bias and sexual harassment. The Company believes that all employees have a right to be treated with respect and dignity and has zero tolerance towards violations of its code of conduct, in general, and its sexual harassment policy, in particular. During the year, no complaint under the sexual harassment policy has been received by the Company. The Company has complied with the provisions relating to the constitution of internal complaints committee under the Sexual Harassment of Women at Work Place (Prevention Prohibition and Redressal) Act 2013.

Vigil Mechanism / Whistle Blower Policy

The Company has adopted a whistle blower policy and has established necessary vigil mechanism as defined under Regulation 22 of the SEBI Listing Regulations and section 177 of the Companies Act, 2013 for stakeholders including directors and employees to report their concerns about unethical behavior, actual or suspected fraud or violation of the Companys code of conduct or ethical policy. The policy provides for adequate safeguards against victimization of employees who avail of the mechanism.

During the year under review, no personnel was denied access to the Audit Committee. The policy is posted on the website of the Company at https://www.pitti.in/investordesk/Docs/ Client/CLT1/Whistle%20Blower%20Policy%20%20Vigil%20 Mechanism%20Policy%20(Effective%20from%20April%20 1,%202019).pdf

Internal Control Systems and their Adequacy

Your Company has an effective internal control and risk mitigation system, which are constantly assessed and strengthened with new / revised standard operating procedures. The Companys internal control system is commensurate with its size, scale and complexities of its operations. The internal audit is entrusted to M/s. SVD & Associates, Chartered Accountants. The main thrust of internal audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry.

The Audit Committee actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

Further, the Statutory Auditors of the Company have also issued an attestation report on internal control over financial reporting (as defined in section 143 of Companies Act, 2013) for the financial year ended 31st March 2023, which forms part to the Statutory Auditors Report.

Risk Management

Risk management is embedded in your Companys operating framework. Your Company believes that managing risks help in maximizing returns. The Company has an elaborate risk management framework in place, which helps in identifying the risks and proper mitigation thereof and lays down the procedure for risk assessment and its mitigation through a Risk Management Committee. The risk management framework is periodically reviewed by the Board and the Audit Committee. The major risks which may pose challenges are set out in the Management Discussion and Analysis which forms an integral part of this report.

The Company has constituted a Risk Management Committee, details of the same are set out in the Corporate Governance Report. A Risk Management Policy has been formulated and adopted pursuant to the applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations.

Corporate Social Responsibility

As per the provisions of section 135 of the Companies Act, 2013 the mandated spend on CSR activities for the financial year 2022-23 is H 90.39 lakhs. During the year under review, your Company has spent H 21.61 lakhs on CSR activities. The surplus amount of H 69.48 lakhs spent during the financial year 2021-22 is being set off against the required CSR spend for the financial year 2022-23 thereby aggregating the CSR spent to H 91.09 lakhs as per the provisions of the Companies Act, 2013.

The Annual report on CSR activities as required under Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 read with section 134(3) and 135(2) of the Companies Act, 2013, as amended, has been annexed as Annexure-3 and forms an integral part of this report.

The policy for Corporate Social Responsibility is available on the website of the Company, https://www.pitti.in/investordesk/ Docs/Client/CLT1/fy2022/CSR%20Policy%20(Effective%20 from%20April%201,%202021).pdf

Particulars of Loans, Guarantees and Investments

The Company has not given any loans, guarantees or security in connection with loans or made any investments during the year under review.

Related Party Transactions

All transactions entered with related parties during the year under review were on arms length basis and in the ordinary course of business and is in accordance with the provisions of the Companies Act, 2013 and the SEBI Listing Regulations. The material related party transactions entered by the Company are made with the approval of the Members. The information on transactions with related parties is given in Annexure-4 in Form No.AOC-2 and the same forms part of this report.

All related party transactions are placed before the Audit Committee and omnibus approval is obtained for transactions which are of repetitive nature.

The policy on related party transactions as approved by the Board of Directors has been uploaded on the website of the Company at https://www.pitti.in/investordesk/Docs/Client/ CLT1/Policy%20on%20Related%20Party%20Transaction%20 (Effective%20from%20April%201,%202022).pdf

Extract of Annual Return

Pursuant to the provisions of Section 92(3) and Section 134(3) of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 as amended, the Annual Return of the Company as on 31st March 2023 is available on the website of the Company at https://www. pitti.in/investordesk/Docs/Client/CLT1/fy2023/Annual%20 Return%20FY%202022-23.pdf

Secretarial Standards

During the year under review, your Company has complied with all the applicable secretarial standards. The same has also been confirmed by Secretarial Auditors of the Company.

Management Discussion and Analysis

The Management Discussion and Analysis Report on the operations of the Company as required under SEBI Listing Regulations is provided in a separate section and forms an integral part of this Report.

Business Responsibility and Sustainability report

The Business Responsibility and Sustainability Report as stipulated under Regulation 34 (2)(f) of the SEBI Listing Regulations is applicable to your Company and the same forms an integral part of this Report.

Corporate Governance Report

As per Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, a detailed report on corporate governance, together with a certificate from the Companys Auditors confirming compliance forms an integral part of this Report.

Auditors and Auditors Report

Statutory Auditors

In terms of Section 139 of the Companies Act, 2013 and the rules made thereunder Talati & Talati LLP, Chartered Accountants, (ICAI Firm Registration Number.110758W/W100377) were appointed as Statutory Auditors of the Company for a term of five consecutive years to hold office from conclusion of 38th Annual General Meeting ("AGM") till the conclusion of the 43rd AGM of the Company.

The notes on the financial statement referred to in the Auditors Report are self-explanatory and do not call for any further comments. The Auditors Report does not contain any qualification, reservation, adverse remark or disclaimer.

The Statutory Auditors of the Company have not reported any fraud under Section 143(12) of the Companies Act, 2013.

Cost Auditors

The Company is required to maintain cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013 and accordingly such accounts and records are maintained by the Company.

The Board of Directors, on the recommendation of Audit Committee has appointed M/s.S S Zanwar & Associates, Cost Accountants (Firm Registration No.100283) as the Cost Auditors to audit the cost accounts of the Company for the financial year 2023-24. As required under the Companies Act, 2013 a resolution seeking Members ratification for the remuneration payable to the cost auditor forms part of the notice convening the 39th AGM.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made thereunder, the Board has appointed Shri Ajay Kishen, Practicing Company Secretary (CP. No. 5146) to conduct Secretarial Audit for the Financial Year 2022-23. The Secretarial Audit Report for the financial year ended 31st March 2023 is annexed to this Report. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark or disclaimer.

Cautionary Statement

Statements in this Directors Report and Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.

Acknowledgement

Your Directors wish to place on record their appreciation for the dedicated service and contribution made by the employees of the Company at all levels. Your Directors would also like to place on record their appreciation for the continued co-operation and support received by the Company during the year from its customers, suppliers, bankers, financial institutions, government authorities, business partners and other stakeholders.

For and on behalf of the Board of Directors
	Sharad B Pitti
Place : Hyderabad	Chairman & Managing Director
Date : 29th May 2023	DIN: 00078716