winsome textile industries ltd Management discussions

AN ECONOMIC OVERVIEW

Global Economy: THE GLOBAL ECONOMY WITNESSED A REMARKABLE RECOVERY IN 2021 WHILST THE PANDEMIC WAS STILL RAGING, ALBEIT FROM A LOWER BASE OF 2020.

Challenges persisted in 2022; high inflation rates, the most significant in several decades, led to tightened financial conditions in most regions. Additionally, Russias invasion of Ukraine had a prolonged impact on the global economy. The rapid spread of COVID-19 in China further impeded growth during the year. Nonetheless, inflation declined to some extent though remained generally elevated, economic activities in most parts of the world opened up, supporting the global economy to register a healthy growth of 3.4% in 2022. Global trade _ourished in 2022, and by mid-December, global trade in goods grew 10%, and global trade in services grew 15% over the previous year.

Global economic growth is expected to decelerate to 2.8% in 2023 (as per IMF), owing to global shocks and inflationary pressures. Asia Pacific region is expected to drive global economic growth, with India and China contributing around half of the global growth. In 2024, global inflation should fall to around 4.3% as Central Banks manage to tame inflation to a large extent.

Indian Economy: THE INDIAN ECONOMY HAS FULLY RECOVERED UNLIKE MANY OTHER NATIONS AND HAS POSITIONED ITSELF TO ASCEND TO THE PRE-PANDEMIC GROWTH PATH IN FY23.

The Indian economy continued its stellar performance in FY23, registering a healthy 7.2% GDP growth. This was underpinned by investment activity led by the Governments strong capital expenditure thrust, subsequent capital formation, and return on private consumption.

The global turmoil (consequent to the Russia-Ukraine war) in FY23 triggered broad-based inflation worldwide, India being no exception. In April 2022, retail inflation, measured by CPI (consumer price index), reached the highest (7.79%). RBI increased interest rates to contain the soaring inflation. By the end of this fiscal, CPI (consumer price index) came down to 5.66%. The index of industrial production grew by 5.1%, against a growth of 11.4% in FY22. Despite this drop, GST collection in FY23 stood at H18 lakh crore, clocking a growth of 22% over last year. The growth proved the resilience of the Indian economy amid several global headwinds.

India registered a significantly strong export growth, showcasing its ever increasing relevance in global activity/ economy. As the nation steps into FY24, GDP growth is forecast between 6-6.5% - a little lower than FY23 owing to considerable global risks which could weigh on the nations economic progress.

THE SECTORAL SPACE

1) Global Textile & Apparel

The global textile industry is a major contributor to the global economy, providing employment opportunities to millions around the world. The industry uses a wide range of materials, including natural _bres such as cotton, wool, and silk, and man-made _bres such as polyester, viscose and nylon.

Following the Covid crisis, the reopening of economies provided an opportunity for consumers to expend more, unlike in 2020 and the first half of 2021. Thats why demand soared in the final half of 2021 and brands & retailers increased orders to meet the pent-up demand.

But with inflation rising after the Russian invasion of Ukraine in February 2022, demand for consumer goods slowed down again while inventories remained high.

At present, companies around the world are facing challenges with high production costs and relatively low demand. However, the business climate slightly improved since November 2022. What still remains to be seen is whether this optimism about a better economic future is because of an anticipated well-founded economic normalisation, or the trust that the situation cannot worsen any further.

The global textile industry has witnessed an average capacity utilisation rate stagnating at 74% since the beginning of 2023. It was expected to be at 79% six months ago, as per the International Textile Manufacturers Federation (ITMF). The capacity utilisation rate remained at a relatively low level on average, although that average was higher than in November 2022. The main factor in keeping the rate up is the improved situation in China, where domestic consumption is picking up pace slowly, according to the 19th ITMF Global Textile Industry Survey (GTIS) conducted in the second half of March 2023.

Challenges & Opportunities: Last few years, the industry has been challenged with volatile demand, altered consumer preferences, supply chain disruptions, rising costs, and increased sensitivity to be sustainable and socially responsible.

To address these challenges, the industry is undergoing a fundamental transformation towards a more flexible, fast, and digitally-enhanced sourcing model that is consumer-centric and sustainable. These rapid technological changes which are primarily shaped by consumer behaviour and global challenges have led to a surge in demand for more casual and athleisure wear.

In the coming decades, the industry is likely to continue to focus on digitisation and forging strategic relationships with trusted & reliable suppliers that invest in digitisation, sustainability, and social responsibility. Further, to cope with this ever-changing consumer demand, successful textile & apparel companies of the future will need to revamp their operating models, tools, capabilities, processes, and the role of their sourcing teams. And with the need for resilient supply chains, the textile & apparel industry is also increasingly looking towards recycled _bers as a key component of their sustainable material strategy. The use of rPET (recycled polyethylene terephthalate) from plastic bottles is expected to continue to increase, with a large number of companies planning to replace at least half of their virgin polyester products with rPET over the next few years. By 2025, a large portion of the textile & apparel companies aims to replace a big chunk of their virgin cotton with mechanically recycled cotton and use garment-to-garment recycling in a majority of their polyester and viscose items.

2) Indian Textile & Apparel

The textile industry in India is one of the nations oldest industries, having existed for decades. India is the worlds second-largest producer of textiles and garments and the fifth-largest exporter of textiles including apparel, home, and technical products. India enjoys a competitive advantage in terms of skilled human resources and cost of production relative to major textile producers.

Performance in FY23: The growth and demand for the Indian textiles sector moderated in FY23.

The Russia-Ukraine war, high inflation, and the threat of a looming recession in key markets like the US and Europe led to a slowdown in exports. Other headwinds, such as extreme volatility in raw material prices and the resurgence of Covid-19 in China, further dampened the performance of the sector.

70% of the industrys output is based on cotton, in comparison to the global average, where products made of manmade _bers account for a larger share of the market. Therefore, the industry remained vulnerable to changes in the cotton market. However, robust domestic demand and new pockets of growth have been the silver linings.

Despite several obstacles, the home textile and furnishing business expanded. Exports to Europe and the EU, which account for 80% of Indias market in these sectors, remained stagnant while the domestic market expanded at a 15% annual growth rate.

Outlook: 2023 holds favourable prospects for the Indian textile industry. After turbulence and uncertainty, the industry seems to be headed toward a positive and steady growth phase in times to come. This buoyant mood is a consequence of a series of measures taken by the Union Government to revive the fortunes of the textile industry. These measures range from pushing technical textiles to the PLI scheme, launching mega textile parks, signing FTAs and MoUs with many countries, etc. These initiatives hold the potential to catapult the Indian textile industry to new heights in the medium term.

Government Support & Initiatives ? In June 2022, the Government announced its plans to establish 75 textile hubs in the country ? The Government has allowed 100% FDI in textiles through the automated route ? Production-linked Incentive (PLI) Scheme worth H10,683 crores (US$

1.44 billion) has been launched for manmade _ber and technical textiles over a five-year period ? The Government has notified uniform goods and services tax rate of 12% on manmade fabrics (MMF), MMF yarns, and apparel, effective January 1, 2022 ? Huge funds amounting to H900 crore (US$ 109.99 million) in schemes like Amended Technology Upgradation Fund Scheme (ATUFS) have been released by the Government in the Union Budget of 2023-24 to facilitate more private equity investments and generate employment ? The Government approved the Mega Integrated Textile Region and Apparel (MITRA) Park scheme worth H4,445 crores (US$ 594.26 million) to establish seven integrated mega textile parks with state-of-the-art infrastructure, common utilities, and R&D labs over a three-year period. This is expected to boost textile manufacturing in the country ? The new Economic Cooperation and Trade Agreements with Australia and the UAE will open multiple opportunities for textiles and handlooms. Indian textile exports to Australia and the UAE will now attract zero duties. The Government anticipates that Europe, Canada, the UK, and GCC countries will soon welcome Indian textile exports at zero duty ? The Government has identified the technical textile segment as a growth enabler and is trying to bolster its demand. The National Technical Textiles Mission (NTTM) has been approved with a four-year implementation period from FY21 to FY24 with the aim to increase the domestic market size from US$ 40 billion to US$ 50 billion by 2024 which will position India as a global leader in technical textiles ? Having signed free trade agreements with foreign countries like Australia, UAE, and with EU, UK and Canada in the offng, India will export textile products to these countries duty-free which so far attracted a hefty charge. In Australias case, for instance, most of the Indian apparel and textile products were levied a 5% duty which is to be waived off now. In UAE also, this agreement will give Indian garment exports free access to the local market. This is likely to create an export opportunity of an additional US$ 2 billion over the next five years Estimates: The Indian textile and apparel industry is anticipated to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The Indian apparel market is expected to reach US$ 135 billion by 2025, a significant rise from US$ 40 billion in 2020. Indias ready-made garment exports will likely cross US$ 30 billion by 2027, growing at 12-13% CAGR. India is the 5th largest producer of technical textiles in the world with a market size of nearly US$ 22 billion, and the Government expects to build it up to US$ 300 billion by 2047.

The Central Government aims for a more than 100% jump in Indian textile exports in the next 5 to 6 years.

The Production Linked Incentive (PLI) Scheme for textiles for Man Made Fibre Fabrics & Apparel and Technical Textiles is expected to attract investment of H19,798 crores for manufacturing.

3) Indian Spinning Sector

Spun yarn spinning industry has gained global importance and recognition for many factors including, but not limited to, scale, productivity, quality standards, share in global yarn trade, dependable supplier of quality products, etc. India is the market leader in global yarn trade with the second-largest spinning industry and can offer the entire range of yarns right from the coarsest count, like 6s Ne, to the finest count, like 300sNe, both for domestic and international markets, as well as value-added and fancy yarns making India a hub of manufacturing cotton yarns.

Performance in FY23: Fiscal 2023 was particularly challenging for the spinning sector. The Union budget for FY 22-23 imposed a net import duty of 11% on imported cotton leading to escalation in domestic cotton prices. Indian cotton became more expensive than imported cotton.

The unprecedented volatility in cotton prices hiked our costs. On the _ip side, the depressed consumer markets dampened ofitake (owing to de-stocking across the textile value chain) and prevented spinners from passing on the elevated costs to their customers (fabric makers).

On the exports front, after registering all-time highs in FY22, Indian cotton yarn exports have declined sharply since April 2022, with uncompetitive Indian prices and a slowdown in demand in the developed nations. With a sharp surge in cotton prices and ensuing operational disruptions, yarn production also witnessed an approximately 19 percent year-on-year (YoY) decline, plunging their exports.

Revenue and profitability nosedived. While prominent players throttled their capacities to cope with the situation, the smaller players were forced to shut operations for a few months to minimise losses. The saving grace was the supernormal earnings during FY22, which supported the life of the business.

The green shoots of recovery appeared as recessionary headwinds scattered across the developed nations. The reopening of the Chinese market relieved spinners, and exports to this geography commenced at a healthy uptick. These factors contributed to improved numbers towards the close of FY23. Industry watchers/analysts are optimistic that this trend will continue into FY24. Also, a better quality cotton crop for the Cotton season 2023-24 has raised hopes for a better FY24.

4) Indian Cotton Industry

India is amongst the largest producer of cotton in the world. Cotton is significantly important for the Indian economy and the livelihood of the Indian cotton farmers. The area under cotton cultivation is approx. 11.7 million hectares in India compared to 31.2 million hectares globally. The Indian cotton industry provides livelihood to about 60 million people. China is the second largest importer of cotton following India and followed by Bangladesh, accounting for over 80% of cotton imports in 2022. Vietnam and Indonesia are also among the largest importers of cotton, making up over 15% of the total cotton exports. So, the reopening of China will be favourable for Indian cotton exports but will eventually depend on the local/indigenous prices of cotton visa-vis international prices.

The Government of India, in conjunction with the Export Promotion Council, has set a long-term goal of US$ 100 billion in textiles industry exports by 2030. It has also targeted increasing productivity from around 450 Kg lint per hectare to at least 800-900 Kg lint per hectare. Therefore, the focus remains on adopting the latest innovative technologies and best farming practices across the globe to enhance productivity and achieve sustainable quality cotton output. Farmers are motivated through awareness meetings and timely advisories to achieve these goals. They are further trained on adopting modern scientific farm practices.

Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing consumer demand.

Cotton Season 2021-2022

The Cotton Association of India (CAI) estimated the cotton crop production for the 2021-22 seasons at 307.5 lakh bales (170 kgs each). The total cotton supply from October 2021 to March 2022 was around 343.68 lakh bales, which consisted of the arrivals of 262.68 lakh bales, imports of 6 lakh bales, and the opening stock estimated by the CAI at 75 lakh bales at the beginning of the season.

Cotton Season 2022-2023

The CAI estimates the cotton crop production for the 2022-23 season to be 311.18 lakh bales (170 kgs each) (as of June ‘23). The total cotton supply from October 2022 to June 2023 was 315.98 lakh bales, which includes 281.98 lakh bales of arrivals, 10 lakh bales of imports, and the opening stock estimated at 24.00 lakh bales at the beginning of the season.

Cotton Balance Sheet: 2021-22 & 2022-23 (Cotton Year: October to September)

Particulars	2021-22 (P)*		2022-23 (P)*
	(In lakh bales of 170 kg. Each)	(in Thousand Tons)	(In lakh bales of 170 kg. Each)	(in Thousand Tons)
Supply
Opening	71.84	1,221.28	24.00	408.00
Crop	299.16	5,085.72	311.18	5,290.06
Imports	14.00	238.00	15.00	255.00
TOTAL	385.00	6,545.00	350.18	5,953.06
Demand
Mill Consumption	293.00	4,981.00	280.00	4,760.00
S.S.I Consumption	19.00	323.00	15.00	255.00
Non-Textile
	6.00	102.00	16.00	272.00
Consumption
Export	43.00	731.00	16.00	272.00
TOTAL	361.00	6,137.00	327.00	6,324.00
Closing Stock.	24.00	408.00	23.18	394.06

 

	COTTON ASSOCIATION OF INDIA
	Balance Sheet of 9 months (From 1-Oct-2022 to 30-Jun-2023)
Details	In Lakh Bales	In ‘000 Tons
Opening stock as on 01-Oct-2022	24.00	408.00
Arrivals upto 30-Jun-2023	281.98	4,793.66
Imports upto 30-Jun-2023	10.00	170.00
Total Available	315.98	5,371.66
Consumption	238.00	4,046.00
Export Shipments upto 30-Jun-2023	13.50	229.50
Stock with Mills	36.98	628.66
Stock with CCI, Maha, Fedn., MCX, MNCs, Ginners,	27.50	467.50
Traders & Exporters
Total	315.98	5,371.66

Cotton Export

India is consistently ranked the second largest exporter of cotton textiles (yarn, fabrics and made-ups) of the world. The total value of export in 2022 was worth US$ 143.87 billion. Historically, export always exceeded imports by a substantial margin. But in 2022-23 lower domestic supplies, increased demand for long and extra-long staple grades and the free trade agreements have facilitated higher imports.

Exports of Cotton Textiles during 2022-23

		Million US $
Commodity		April-March	% Share
	2021-22	2022-23	2022-23
Cotton Madeups	4,986.55	4,160.59	40.65
Cotton Fabrics	3,101.70	2,523.43	24.68
Cotton Yarn	5,518.93	2,766.54	27.03
Cotton Textiles	13,607.18	9,452.57	92.36
Raw Cotton	2,816.59	781.68	7.64
Cotton Textiles + Raw Cotton	16,423.77	10,234.24	100
Source of Data: DGCIS, Ministry of Commerce

According to the data released by the Ministry of Commerce & Industry, exports of cotton yarn/ fabrics/made-ups, handloom products etc from India are estimated to decline by 12.7% in April - June 2023 over April - June 2022. Also, exports in June have declined slightly by -1.2% as compared to the previous year in the same month.

But things are likely to pick up at the beginning of the second half of the FY24 financial year. Additionally, policy support and initiatives from the relevant authorities are needed to move forward in the days to come.

ABOUT THE COMPANY

ITH ITS CORPORATE OFFICE INCHANDIGARH, WINSOME TEXTILE

WINDUSTRIES LIMITED (WINSOME TEXTILE) IS A LEADING MANUFACTURER OF YARNS AND FABRICS FOR KNITTING AND WEAVING.

Located at Baddi, our sophisticated manufacturing units produces one of the finest qualities of 100% cotton m?lange yarn and cotton and synthetic blended m?lange, specialty, and dyed yarns (carded and combed) used in downstream weaving and knitting applications.

Our product portfolio comprises raw white yarn, dyed yarn, fancy yarn, melange yarn, knitted fashion and striper fabrics. Our products are accepted by more than 250 customers across 50 countries and 600+ customers within India.

FINANCIAL PERFORMANCE

HE DOWNTURN IN THE TEXTILESECTOR DURING FY 22-23

TADVERSELY IMPACTED THE

COMPANYS FINANCIAL PERFORMANCE. WHILE THE TOPLINE WAS MARGINALLY LOWER THAN THE PREVIOUS YEAR, PROFITS AND PROFITABILITY DROPPED SHARPLY.

Revenue from operations stood at H876.03 crore in FY23, down from H955.53 crore in FY22. Significant cost escalation, especially under the head cost of materials consumed, eroded operating profits. EBITDA dropped from H137.01 crore in FY22 to H93.05 crore in FY23. Similarly, EBITDA margin dropped by 372 bps over the previous year.

The interest cost for the year dropped from H42.69 crore in FY22 to H38.85 crore in FY23 as the Company deployed internal accruals to repay debt. Net Profit after tax for the year stood at H24.52 crore in FY23 against H45.49 crore in FY22.

Despite a dismal/ unremarkable performance, business stability improved appreciably. Networth improved from H231.82 crore as on March 31, 2022 to H256.23 crore as on March 2023 - the increase was owing to the addition of business surplus. Total debt dropped from H306.43 crore as on March 31, 2022 to H278.10 crore as on March 31, 2023. As a result, the debt-equity ratio dropped from 2.42 as on March 31, 2022 to 1.96 as on March 31, 2023.

On the working capital front, inventory days increased as the Company stocked cotton owing to its spiralling prices. Debtor days dropped appreciably due to a sharpened focus on transforming receivables into cash. Hence, the current ratio stood at the previous years levels.

Advancing into the current year, the Company is hopeful of a tide reversal in the textile sector which should help in improving the overall financial performance.

Particulars	Numerator	Denominator	31st March, 2023	31st March 2022	% Variance
Current Ratio	Current Assets	Current Liabilities Shareholders	1.33	1.33	(0)
Debt-Equity Ratio	Total Outside Liabilities Earnings available	Equity	1.96	2.42	19
Debt Service	for debt service	Debt Service (**)	1.32	1.52	14
Coverage Ratio	(*)
Return on Equity Ratio (%) Inventory	Net Profits after Taxes	Shareholders Equity	9.57	19.62	(51)
turnover ratio (No of Days)	Total Inventories	Revenue from Operations	119	98	21
Trade Receivables turnover ratio (No of Days)	Total Net Trade Receivable	Revenue from Operations	39	59	34
Trade payables turnover ratio (No of Days)	Total Net Trade Payables	Purchases & Consumption of Goods	84	100	16
Net capital turnover ratio	Revenue from Operations	Working Capital	7.85	7.83	0
Net profit ratio (%) Return on Capital	Net Profit after Taxes Earnings before	Revenue from Operations Capital	3.94	7.31	(46)
employed (%)	interest and taxes Income	Employed(#)	17.32	26.31	34
Return on investment (%)	generated from long-term investments	Average long- term investments	20.00	13.55	48

(*) Earnings available for debts = Profit after Tax before depreciation and interest on long-term borrowings (**) Debts Service = Repayment of long-term borrowings and Gross Interest on long-term borrowings (#) Capital Employed = Total book value of all assets less current liabilities

Reason for variance where the variance exceeds 25% as compared to previous years ? Highly inflationary conditions and recessionary trends in USA & Europe and the Russia-Ukraine war have led to subdued demand for textile products in the overseas markets. This has also adversely impacted the domestic markets. Moreover, unprecedented raw material volatility and increasing interest rate have further led to lower profitability in the current financial year as compared to the last financial year ?

(a) (Return on Equity Ratio, Net Profit Ratio & Return on Capital employed): - The Company achieved lower Turnover and Net Profits in Financial Year. 2022-23 as compared to Financial Year 2021-22 ?

(b) (Trade Receivables Turnover Ratio): - The Company achieved speedy realisation of debtors in the Financial Year 2022-23 as compared to the Financial Year 2021-22 ?

(c) (Return on Investment):- The Company earned a higher dividend in Financial Year 2022-23 as compared to Financial Year 2021-22

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY

HE COMPANYS INTERNAL AUDIT SYSTEM HAS BEENCONTINUOUSLY MONITORED AND UPDATED TO ENSURE THAT TASSETS ARE SAFEGUARDED, ESTABLISHED REGULATIONS ARE COMPLIED WITH, AND PENDING ISSUES ARE ADDRESSED PROMPTLY.

The audit committee reviews reports presented by the internal auditors on a routine basis. The committee makes note of the audit observations and takes corrective actions, if necessary. It maintains a constant dialogue with the statutory and internal auditors to ensure effective operations of the internal control systems.

HUMAN RESOURCE

INSOME CONTINUES TO INVESTIN ITS PEOPLE - BUILDING THEIR WCAPABILITY, SHARPENING THEIR EXPERTISE, AND NURTURING THE SPIRIT OF LEADERSHIP, WHICH MAKES IT A LEARNING HUB AND A DELIVERY-ORIENTED INSTITUTION.

Its people-centric policies have created a unique bond with its 2370+ team. This is evident in the fact that a large section of its team is attached with the Company for more than ten years.

The Company continued to upskill its people with relevant knowledge that allows them to align with the trends evolving in the business space. It organised technical, behavioural, and management training sessions throughout the year which were conducted by internal team members and external faculty. The Company also sends its employees for external training programs to CII, PHD Chamber of Commerce, NITRA, etc. A depressing market condition foregrounded cost optimisation. Teams sharpened their focus on undertaking cost optimisation and process improvement projects through its Quality Circle programme During the year Company organised events and celebrated festivals which helped in boosting the morale of its members.

The Company remains committed to the overall development and mental & psychological well-being of our employees.

Winsome is engaged as a Training Provider with National Skill Development Corporation under Registration number 9187 for the following:

1) PMKVY (Pradhan Mantri Kaushal Vikas Yojna) for providing training to new/fresh apprentices.

2) RPL (Recognised Prior Learning) at its two centres located at Baddi (under the Textile Sector Skill Council) for job roles such as ring frame tenterring frame doffer & auto conertenter.

RISK MANAGEMENT

USINESS UNCERTAINTY MANIFESTSAS RISK AND IMPACTS CORPORATE

BPERFORMANCE AND PROSPECTS.

Therefore, we have integrated an elaborate, well-defined risk management process into our operations. Thus, we are able to identify, categorise and prioritise different kinds of risks, namely, operational, financial, and strategic business risks. We allocate significant resources to mitigate and manage the identified risks.

The remaining mandatory information required to be provided under Management Discussion and Analysis has been mentioned elsewhere in the Annual Report.

CAUTIONARY STATEMENT

IN THIS ANNUAL REPORT, WE HAVE DISCLOSED FORWARD-LOOKING INFORMATION TO ENABLE INVESTORS TO COMPREHEND OUR PROSPECTS AND MAKE INFORMED INVESTMENT DECISIONS. THIS REPORT AND OTHER STATEMENTS - WRITTEN AND ORAL - THAT WE PERIODICALLY MAKE CONTAIN FORWARD-LOOKING STATEMENTS THAT SET OUT ANTICIPATED RESULTS BASED ON THE MANAGEMENTS PLANS AND ASSUMPTIONS. WE HAVE TRIED WHEREVER POSSIBLE TO IDENTIFY SUCH STATEMENTS BY USING WORDS SUCH AS ‘ANTICIPATES, ‘ESTIMATES, ‘EXPECTS, ‘PROJECTS, ‘INTENDS, ‘PLANS, ‘BELIEVES, AND WORDS OF SIMILAR SUBSTANCE IN CONNECTION WITH ANY DISCUSSION OF FUTURE PERFORMANCE. WE CANNOT GUARANTEE THAT THESE FORWARD-LOOKING STATEMENTS WILL BE REALISED, ALTHOUGH WE BELIEVE WE HAVE BEEN PRUDENT IN OUR ASSUMPTIONS. THE ACHIEVEMENT OF RESULTS IS SUBJECT TO RISKS, UNCERTAINTIES, AND EVEN INACCURATE ASSUMPTIONS. SHOULD ANY KNOWN OR UNKNOWN RISKS OR UNCERTAINTIES MATERIALISE OR UNDERLYING ASSUMPTIONS PROVE INACCURATE, ACTUAL RESULTS COULD VARY MATERIALLY FROM THOSE ANTICIPATED, ESTIMATED, OR PROJECTED. READERS SHOULD KINDLY BEAR THIS IN MIND. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE ANY FORWARD-LOOKING STATEMENTS, WHETHER DUE TO NEW INFORMATION, FUTURE EVENTS, OR OTHERWISE.