indian metals ferro alloys ltd Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry structure and developments

Ferro Chrome is an alloy of iron and chromium which is primarily used to impart the non-corrosive property to stainless steel; depending upon the quality of ore, the finished product contains between 50-70% chrome. It is produced through carbothermic reduction of chromite in an electric arc furnace, and over 80% of the total production of ferro chrome worldwide is utilised in the production of stainless steel.

Global chrome ore industry

Global chrome ore production in CY2022 was 33.04 million tonnes which is a 5% contraction as compared to the previous year. South Africa has the worlds largest reserves and accounts for more than 60% of global chrome ore output, while India ranks in third place.

Ferro Chrome Production

The total production of ferro chrome in CY2022 was 14.66 million tonnes, an increase of 5.5% as compared to 13.91 million tonnes in the previous year. China continues to be the worlds largest producer with an output of 6.45 million tonnes in CY2022, while Indian production increased by 24% to 1.29 million tonnes. (Source: ICDA)

Global High Carbon Ferro Chrome production: Country Highlights

Global ferro chrome market forecast

The value of the global ferro chrome market is projected to grow at a CAGR of 5.1% from USD 16.92 billion in CY2023 to USD 24.03 billion in CY2030. (Source: Fortune Business Insights)

India

The production of ferro chrome in India is by and large in Odisha, West Bengal, and Andhra Pradesh; in CY2022, total output increased by 24% to 1.29 million tonnes. The focus on infrastructure development has given a fillip to stainless steel consumption which is reflected in higher demand domestically for ferro chrome although the export market continues to be important. Going ahead, Indias per capita consumption of stainless steel - which is relatively low at present as compared to developed countries - is expected to increase due to growing urbanisation. (Source: ICDA and Fortune Business insights)

Stainless Steel Industry Global

According to World Stainless Steel Association report, global melt shop production of stainless steel fell by 5.2% year-on-year in CY2022, reaching 55.3 million tonnes. This decline was attributed to factors such as the Russia-Ukraine conflict, COVID-19 lockdowns especially in China, and supply chain disruptions. However, the industry has continued to adapt and invest in new technologies, with a growing focus on sustainability. Looking ahead, stainless steel production is expected to rebound as the world recovers from the pandemic, with potential opportunities in industries such as wind power and electric vehicles.

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

Region	2022	2021	% Change (y-o-y)
Europe	6.29	7.18	-12.4%
USA	2.02	2.37	-14.8%
China	31.96	32.63	-2.0%
Asia (excluding China and South Korea)	7.41	7.79	-4.9%
Others	7.56	8.32	-9.1%
Total	55.25	58.29	-5.2%

Source: worldstainless

The global stainless-steel production is expected to reach 60 million tonnes in CY 2023 as forecasted by MEPS, with China and Indonesia as significant contributors for this growth (Eurometal). The global stainless steel market is projected to grow from $204.17 billion in CY2022 to $298.85 billion in CY 2029, at a CAGR of 5.6%. with the rapid growth in the automotive industry being a major contributor. According to the World Steel Organisation, stainless steel will be common in suspension, chassis, fuel tanks, bodywork, and catalytic converters in the future. Furthermore, rapid adoption of stainless steel in the construction industry, coupled with rising demand for commercial and residential properties, will also bolster demand.

China

• Production in the 4th quarter of CY2022 was higher than anticipated due to relaxations in Covid restrictions. Hence, stainless steel production is expected to increase to 34 million tonnes in CY 2023 according to MEPS estimates.

Europe

• Output decreased by 25-33% in Q3 CY2022 due to weak demand and high costs, causing local mills to cut capacity. Recovery was seen in Q4 CY2022 with 1.47 million tonnes produced, and major producers expect shipments to improve in Q1 CY2023 due to restocking and lower energy costs.

• Production in the Q4 CY2022 is estimated to be 450,000 tonnes, and the recovery in melting activity in Q1 CY 2023 is expected to be slower than in Europe due to extended destocking by local distributors. However, melting activity is expected to rebound in the middle of the year for seasonal reasons.

Source: https://eurometal.net/stainless-steel-production-forecast-at-60mt-in-2023/ & Fortune Business Insights.

India

India produced 3.95 million tonnes of stainless steel slabs in FY2022 (ANI), which is a substantial increase from the previous years output which stood at 3.2 million tonnes. According to a CRISIL report, production of stainless steel in India will grow at a CAGR of 9% till 2025 on account of its increased adoption in the automobile sector as well as expansion of the construction sector. (Source: ANI and Statista)

Outlook

The metals and alloys market are poised for significant growth in the coming years due to several factors, including rapid industrialisation, increasing construction activities, and infrastructure development around the world. The use of metals and alloys in various applications such as automotive, power, pipes, fittings, valves, and industrial machinery is also expected to boost demand. This trend is likely to continue, making the metals and alloys market an attractive segment for investment and growth opportunities.

Source: Global Market Insights

The China Perspective

China has traditionally been the worlds factory with its focus on manufacturing, with direct and indirect exports of stainless steel reaching a new peak. However, slowdown in overseas export markets coupled with tight Covid restrictions and concerns about too much reliance on one source has led to a downward trend. The exception in this regard is related to the domestic energy sector where demand has continued to be steady.

China and Indonesia will account for over 60% of the projected global production of 56 million tonnes in CY 2022. Despite increased demand, factors like declining population growth and economic slowdown may slow demand growth, with predicted growth rates of 5% or less in the next 3-5 years.

Current Capacity

Chinese Policy towards reducing emissions

The Chinese governments strict policies on emissions have not had an impact on the structure of the chrome ore and ferro chrome markets. China has prioritised environmental protection and energy conservation, implementing continuous policies such as new carbon emission requirements, and promoting the industrys healthy development. The government has also introduced incentive policies to encourage the use of green power by alloy manufacturers, providing preferential treatment to those who do so. These policies are expected to positively impact the industry.

IMFA at a glance

Indian Metals & Ferro Alloys Limited (IMFA) is the countrys leading, fully integrated ferro alloys manufacturer. The Companys unwavering commitment to innovation, quality, and sustainable development in manufacturing processes has positioned it as one of the most reliable and efficient ferro chrome producers worldwide. IMFAs focus on quality has earned it a sterling reputation, and the companys emphasis on sustainability has ensured that its manufacturing processes have minimal impact on the environment. Its global presence has allowed it to establish long-term relationships with its customers, who rely on the companys ability to deliver high- quality ferro alloys in a timely and cost-effective manner. All these factors have contributed to IMFAs impressive growth and success over the years.

Industry Experience

Manufacturing Excellence

There are two manufacturing facilities belonging to the Company, each of which has three furnaces. These facilities are located in Therubali and Choudwar, which are situated in Odisha, a state abundant in minerals.

Integrated Operations

IMFAs business philosophy emphasises the development of self-sufficiency within its system, which has resulted in the implementation of integrated operations. The company has established two captive mines, located in Sukinda and Mahagiri in Jajpur, Odisha, as well as the capacity for thermal and solar power generation.

Certifications and standards

IMFA is committed to strict adherence of Industry standards & accordingly third-party certification conforms the quality of the companys entire range of manufacturing operations pertaining to our product offerings, which are covered by ISO 9001: 2015 version Quality Management System certification.

Marquee Customers

IMFAs reputation for unwavering commitment to quality has made it a well-respected global brand. The companys customer base includes multinational corporations like POSCO (South Korea), Tsingshan Group, E-United Group, Zhenshi Group and Marubeni Corporation (Japan), in addition to leading domestic stainless-steel producers such as Jindal Stainless, Rimjhim Ispat, BRG Steel, AIA Engineering and Viraj Profiles, among others.

Opportunities and Threats SCOT Analysis

Strengths

• Validity of mining lease until 2049/2055 offers long-term production visibility.

• Long-term contracts provide offtake assurance.

• Robust long-standing international and domestic client base.

• Strategically located production facilities near ports lead to reduced logistics cost.

• Debt Free.

Opportunities

• Increasing demand for stainless steel products which use ferro chrome as a key input, due to growth in construction and infrastructure projects globally.

• India is one of the fastest growing markets for stainless steel and still has a low per capita consumption resulting in substantial growth opportunities.

Challenges

• Fluctuating demand from stainless steel manufacturers.

• Volatility in the prices of key inputs such as chrome ore and electricity.

• Increasing competition from other producers, particularly from China.

• Regulatory and environmental pressures, such as carbon taxes and emissions regulations.

• Geo-political instability which could disrupt supply chains and markets.

Threats

• Volatility in commodity prices, including ferro chrome prices, due to fluctuations in supply and demand.

• Competition from substitute materials, such as nickel or aluminium, which could impact demand for ferro chrome in the long run.

• Increasing environmental and sustainability regulations which could lead to higher production costs and impact the profitability of the industry.

Business Segment review Ferro Alloys

IMFAs main focus is on exporting ferro alloys to the primary hub of stainless steel production in the Far East, including China, Japan and Taiwan. The company has established long-term agreements with major manufacturers of stainless steel, which guarantees a steady supply and promotes stability in the industry.

Ferro alloy production and sales

			(in tonnes)
	FY 2022-23	FY 2021-22	% Change
Production	244,505	246,175	(0.68)
Domestic sales	23,962	20,533	16.70
International sales	223,983	227,747	(1.65)

Power

The Company has established captive power plants capable of generating 200 MW of electricity to ensure a reliable and uninterrupted power supply. These power plants consist of 170 MW of coal-based generation, 30 MW of generation based on coal and furnace gas and 4.55 MW of solar power generation.

Power generation & sales

		(in million units)
	FY 2022-23	FY 2021-22	% Change
Power generation	1,074	1,085	(1.01)
Sales		-	-

Mining

IMFA operates two chrome mines, where all the ore extracted is used for captive consumption. The Company places great emphasis on sustainable mining practices and has made substantial investments towards ensuring the safety and well-being of its workforce. In order to achieve this goal, IMFA has consistently adopted the most advanced equipment and technology available in the industry.

Chrome production

			(in tonnes)
	FY 2022-23	FY 2021-22	% Change
Sukinda	280,611	261,782	7.19
Mahagiri	284,164	297,575	(4.51)

Financial Review Financial Performance

		(Rs. in Crore)
	FY 2022-23	FY 2021-22
Revenues from operations	2,676.39	2,602.95
EBITDA (before exceptional items)	514.48	828.83
Profit/(Loss) after tax	225.73	507.87
Cash Profit	333.01	618.09
Earnings per share (H)	41.84	94.13
Cash EPS	61.72	114.56
Net worth	1,858.86	1,700.86
Capital Employed	1,970.33	1,945.85
Fixed assets [including Capital Work in Progress (CWIP)]	1,038.84	991.59

Key Ratios and margins

	FY 2022-23	FY 2021-22
Debtors turnover ratio	23.33	22.04
Inventory turnover ratio	2.30	2.06
Interest coverage ratio	6.00	11.70
Current ratio	2.09	1.61
Debt equity ratio	0.20	0.30
Operating profit margin (%) (before exceptional items)	15.34%	27.70%
Net profit margin (%) (after exceptional items)	9%	20%

Change in financial ratios

	FY 2022-23	FY 2021-22	Change(%)	Significance
Inventory turnover ratio	2.30	2.06	48.73	Not Significant.
Interest coverage ratio	6.00	11.70	29.75	Higher Input Costs has led to lower EBIT.
Current ratio	2.09	1.61	44.64	Due to settlement of Electricity Duty paid to Govt. of Odisha.
Operating profit margin (%) (before exceptional items)	15.34%	27.70%	57.24	Due to less profit earned by the Company during the year on account of higher input costs.
Net profit margin (%) (after exceptional items)	9%	20.00%	59.33	Due to less profit earned by the Company during the year on account of higher input costs.
Return on net worth (%) (after exceptional items)	12.14%	29.86%	48.73	Due to less profit earned by the Company during the year on account of higher input costs.

Source of Funds Own funds

IMFAs net worth was Rs.1,858.86 Crores as on 31^st March, 2023 vis-a-vis Rs.1,700.86 Crores as on 31^st March, 2022.

Equity

The Company has 5,39,54,106 equity shares with a face value of Rs.10/- per share in the market. Its promoters hold 58.69% of them as on 31^st March, 2023.

Reserves

IMFAs reserves stood at Rs.1,804.90 Crores as on 31^st March, 2023 compared to Rs.1,646.90 Crores as on 31^st March, 2022. Free reserves constitute 93.35% of the total reserves.

Long term borrowings

Long-term borrowings stood at Rs.9.68 Crores as on 31^st March, 2023 as against Rs.14.26 Crores on the same date of the previous year, as detailed here:

		(Rs. in Crore)
	FY 2022-23	FY 2021-22
Long-term loans	5.54	9.67
Current maturities of long-term obligations	4.14	4.59
Lease obligations
Current maturities of finance lease obligations/Lease payables	2.02	2.17
Long-term maturities of finance lease obligations/Lease payables	44.48	39.78

Application of funds Gross block

The Companys gross block fixed asset stood at Rs.1,787.69 Crores as on 31^st March 2023 vis-a-vis Rs.1,648.73 Crores on 31^st March, 2022.

Capital work in-progress

IMFAs capital work-in-progress was Rs.69.74 Crore as on 31^st March 2023 as against Rs.69.89 Crores as on 31^st March, 2022.

Risk Management

The Company has a robust Risk Management Framework in place that involves identifying and categorising potential risks, mapping mitigation strategies based on short-, medium- and long-term outlook, and consistently monitoring the risks. The rigorous framework enables the Company to capitalise on opportunities while minimising associated risks.

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

Human resource management

At IMFA, we are committed to fostering a people-centric culture that promotes personal and professional growth, enabling individuals to achieve their full potential. This commitment has helped us to attract top talent from the industry and build a robust team.

Total employees across all locations of IMFA during FY 2022-23

The HR department at IMFA launched several strategic initiatives during FY 2022-23, focusing on employee engagement, learning, and performance management to actively practice the vision of promoting an engaged workforce through communication, collaboration, and credibility. Our human resource initiatives are categorised under three primary areas of transformation:

• Learning and Development

• Employee Engagement and Motivation

• Performance Management and Retention

Learning and Development (L&D)

At IMFA, the Learning & Development (L&D) team offers various training and development opportunities to enhance employee capacity in delivering services, aligning with the Companys values and strategic plan. L&D programs like Management Orientation, Team building, Interpersonal Effectiveness, and New Employee Orientation support IMFAs overall mission.

Employee Training Initiatives

• Outbound Trainings

• The Leadership Retreat on the theme "Rekindle - Refresh, Reset & Rejuvenate" .

• Interventions on Critical Thinking & Innovation for Results.

• Learning interventions on Synergy at Workplace - Going Far Going Together.

• Behavioural Interventions on Building Influence at Work & In Life.

• Microsoft skills LMS Interventions.

• PMS Review & Awareness Session.

• 16077.2 training manhours achieved completed till date with 568 numbers of interventions.

16,077.2 man hours

Of training completed till date with 568 number of interventions

Employee Engagement and Motivation

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

• Employee wellness program: Various programs for employee wellness, including mental, financial, and yoga sessions were conducted to promote overall well-being.

• Plant-wide employee recognition program: 283

employees received Long & Dedicated Service Award recognition through this program.

• IMFA Group Student scholarship: Eight students were awarded with the IMFA Group Student scholarship in FY 2022-2023

• Prof. Ghanashyam Dash Scholarship for Higher Education: 6 students were awarded scholarship FY22 out of which 1 student is employees child.

Performance Management and Retention

Our HR team prioritised performance management and retention planning for the year 2022-23. To ensure clear job descriptions and emphasise the importance of meaningful work, specific training modules were developed.

Performance Management System (PMS) Initiatives

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

• PMS goal-setting workshops to help individuals set VALUE goals for the financial year 2022-23

• All engagement & learning initiatives led to a low attrition rate of executive i.e., 9.6 %.

Health, Safety and Environment (HSE)

Employee health and safety has always been the topmost priority for IMFA. The Company strives to achieve zero fatalities which is reflected in its stringent safety practices.

Health and Safety

• HAZOP study was conducted for CO gas and action has been taken as per recommendations.

• As per IS 14489 (1998) Code of practice on occupational safety and health audit, third party audits for Mines, Choudwar and Therubali locations were carried out by a reputed audit firm. This standard demonstrates audit objectives, criteria, and practices & provides instructions for establishing, conducting, planning and documenting on occupational safety and health system.

• Full-scale mock drills were conducted at Choudwar and Therubali to assess and improve emergency preparedness. These drills were conducted in the presence of statutory bodies and local administration.

• Permanent lifelines have been installed on the roof tops of CCP-1 furnace building and 120 MW PP TG, 50 MW PP TG, and Boiler-8.

• Breathers with flame arrestors have been provided at LDO storage tanks at 30 MW PP & LDA.

• Indication lamps with buzzers have been installed at the ash silo of 120 MW PP area to improve clarity among drivers for vehicle positioning during loading.

• Quarterly housekeeping audits are being conducted to maintain cleanliness and safety.

• Safety mass meetings are conducted on the first working day of every month at PBU and FABU to discuss safety issues.

• A Diesel Operated Welding Generator has been provided at Sukinda for use at the Mechanical Workshop, which is portable and easy to carry for all field-based welding jobs.

Environment Initiatives

Our Company is committed to protecting the environment and promoting sustainable practices across all our operations. As part of this commitment, we have implemented a range of environmental initiatives across our various divisions, aimed at minimizing our environmental impact, conserving natural resources, and promoting a cleaner and healthier environment.

Choudwar

• To ensu re zero ef flu ent discharge from ou r power plants, we have installed ultrasonic flow meters at the outlet of our 120 MW PP ETP and Colony-I ETP, which serve both our 80 MW PP and CCP.

• Real-time video data and flow parameters are communicated to the CPCB server for monitoring purposes. In addition, we installed IP cameras at Unit-I and Unit-II to monitor GCP stack emissions.

• At our CCP-I, we have installed two multi-disk screw press filters to treat the entire GCP sludge.

• Conducted a performance evaluation study of pollution control devices and equipment at our power plant through NIT, Rourkela - the first such study conducted within the IMFA group.

Therubali

• To control fugitive emissions at our facilities, we have installed 2 mist cannons with 50-meter throw distances at TCP-3 crane bay and TCP-2 tapping area, respectively.

• Installed one mist cannon with a 100-meter throw distance at our slag yard.

• Installed two cold fog dust suppression (CFDS) systems at TCP-2 Raw Material Handling System (RMHS) and BOD and COD analysers in our environment laboratory for monitoring wastewater quality.

• Installed a digital environmental information display board at our main gate.

Sukinda & Mahagiri Mines (Chromite)

At Sukinda Mines (Chromite), we installed a 250 LPS capacity Effluent Treatment Plant to treat the mines seepage and surface runoff water, as well as a 40 KLD Sewage Treatment Plant at the staff residential colony. We also installed two Continuous Ambient Air Quality monitors for real-time monitoring of ambient air quality. Moreover, we took a step towards mineral conservation by constructing an RCC plot for storage of mineral before discharge to reduce ground loss.

At Mahagiri Mines (Chromite), we have obtained permission from DGMS for backfilling of stope blocks using suitable overburden, bottom ash, and fly ash as a binder, enabling us to use waste as a resource and practice sustainable operations.

Sustainable operations with Fly ash utilisation

IMFA has primarily three kinds of power plant boilers, namely - 30MW, 50MW and 120MW at Choudwar in Cuttack District. The 50MW power plant boiler generates ash which is unsuitable to be used as raw materials for the manufacture of bricks, blocks, LDA and other construction material. Therefore, it is used for the reclamation of waste and degraded land.

From the 30MW and the 120MW power plant boiler which are CFBC boilers, the total ash generated has 90% of it as Fly ash which is sent to the two Brick Manufacturing Unit of IMFA, having a capacity of 1,00,000 brick per day, each. Additionally, IMFA has a Low-Density Aggregate Manufacturing unit having a production capacity of 1,75,000 TPA. The Fly Ash is also supplied to other brick manufacturing industries, cement manufacturing units and other Ready -Mix concrete industries upon valid authorisation. Such transportation is carried out using Steel covered and Tarpaulin covered vehicles.

Awards and Recognition for HSE best practices

IMFA and its units have received multiple awards and accolades for excellence in safety, energy conservation, mineral conservation, and overall performance. These awards highlights IMFAs unwavering commitment to sustainable and responsible HSE practices.

• Choudwar Unit II bagged Platinum in Kalinga Safety Excellence Award (Large-Scale Industries, Ferro Alloys Sector) at Odisha State Safety Conclave 2022.

• Choudwar Unit III received Gold in Kalinga Safety Excellence Award (Large-Scale Industries, Power Plant below 500 MW) at Odisha State Safety Conclave 2022.

• IMFA Choudwar won Star rating award at CII Energy Conclave 2022.

• IMFA Choudwar received Odisha State Energy Conservation Award 2022.

• Sukinda Mines (Chromite) secured 1st prize in Reclamation & Rehabilitation at the 24th Mines Environment & Mineral Conservation Week conducted by IBM Bhubaneswar Region.

• Mahagiri Mines (Chromite) received 1st prize in Mineral Conservation, 2nd prize in Afforestation, 2nd prize in Systematic & scientific development, and 2nd prize in Overall Performance.

• SMC & MMC were awarded MISHRILAL AWARDS - "Best Mine of the Year" (2021-22) at 39th Odisha Metalliferous Mines Safety Week Celebration 2021-2022 - Concluding Day (03.06.2022) Function.

• SMC won Platinum Award in Kalinga Safety Excellence Awards 2021 in National Safety Conclave 2022.

Internal Control Systems

The Company has established an Internal Control System that aligns with its size, scale, and complexity of operations. This comprehensive system facilitates efficient operations, ensures optimal use of resources, protects assets, and ensures compliance with relevant laws and regulations. These control measures enhance the Companys resilience and prevent losses or unauthorised use of assets through robust checks and balances.

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

Cautionary statement

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