A.K.Capital Services Ltd Management Discussions

1. Indian Economy

According to the second advance estimates for FY24-25 released by MoSPI, Indias real GDP growth is projected at 6.5% for FY24-25, lower than the average growth of 8.8% recorded during FY23-24. On a quarterly basis, growth is estimated at 6.5% for Q1FY25, 5.6% for Q2FY25, and 6.2% for Q3FY25. The slowdown in economic activity in FY24-25 can be largely attributed to weakness in industrial sectors, namely manufacturing, electricity and mining·which tempered overall growth. On the demand side, urban consumption remained subdued, primarily due to persistently high food inflation, which impacted household disposable income, and macroprudential measures announced by the RBI, which slowed retail credit creation. However, GDP growth is expected to pick up from Q4FY25, supported by a healthy Rabi harvest, income tax cuts announced in the budget, and the RBIs accommodative policy stance, all of which are expected to aid demand conditions.

CPI inflation cooled to a 67-month low of 3.3% in March 2025, mainly due to a continued moderation in food prices. For FY24-25, CPI inflation declined to 4.6%, down from 5.4% in FY23-24 and 6.7% in FY22-23. Additionally, RBI noted that the long-term inflation outlook remained anchored to the MPCs 4% target assuming a normal-monsoon. On the growth front, the economy began to show signs of a slowdown, prompting the MPC to tilt towards supporting growth. Consequently, RBI reduced the repo rate from 6.50% to 6.00%, with 25 bps cuts in both the February and April 2025 policy meetings. It also changed its stance from “Withdrawal of accommodation” to “Neutral,” and subsequently to “Accommodative.” Also, RBI proactively deployed a slew of measures, including a 50 bps cut in Cash Reserve Ratio (CCR), open market operations, daily variable Repo (VRR) auctions, and dollar/rupee buy-sell swap auctions to augment liquidity in the system.

2. The Growth Environment

The global growth environment remained volatile during the period, marked by a regime change in the U.S. government, an escalating trade war with the implementation of tariffs across geographies, and ongoing geopolitical tensions resulting in commodity price volatility. According to the IMFs World Economic Outlook (April 2025), global output is estimated to decline to 2.8% in CY2025 from 3.3% in CY2024. Global growth is expected to slow, and downside risks are likely to intensify as major policy shifts unfold.

Amidst the challenges posed by the external environment, Indias economic activities have exhibited marked resilience, with growth poised to recover from the blip witnessed during H1FY24-25. Indias growth engines, consumption and investment, grew by a healthy 7.6% and 6.1%, respectively, in FY24-25, compared to 5.6% and 8.8% growth recorded in FY23-24. Indias consumption was well- supported by a healthy Rural demand on the back of normal-monsoon and softer food prices. Urban consumption that experienced a softening is expected to improve by the income-tax cut and reduction in interest rates.

On the external front, Indias foreign exchange reserves stood at USD 665.4 billion as of 28th March 2025, providing a cover of more than 11 months of goods imports and 96% of outstanding external debt (as of December 2025). FDI inflows have seen a steady rise, increasing from USD 36.05 billion in FY13-14 to USD 81.04 billion in FY24-25 · a 14% increase from USD 71.28 billion in FY23-24. In FY24-25, the Indian Rupee traded within a relatively stable range against the US Dollar compared to other emerging economies, averaging around INR 84.57/USD, with a high of INR 87.58/USD and a low of approximately iNr 83.10/USD. The movement in the domestic currency was influenced by the continued resilience of the Dollar Index, which, however, lost momentum by the end of the fiscal year. Amid a foreign capital pull-out driven by global uncertainty, the RBI remained active in the forex market to provide stability under evolving external macroeconomic conditions.

3. Industry Structure and Bond Market Developments

The yield on the Indian 10-year benchmark paper declined to 6.58% at the end of FY24-25, compared to 7.12% at the beginning of the fiscal year. Domestic bond yields steadily declined to multi-year lows, supported by consecutive policy rate cuts in February and April 2025, as well as liquidity measures that enhanced durable liquidity. The RBI, through a 50 bps Cash Reserve Ratio (CRR) cut in December 2025 and a slew of liquidity measures, including open market operations (OMOs), daily variable rate repo (VRR) auctions, and dollar/rupee buy-sell swap auctions, infused durable liquidity worth INR 7.40 lakh crore in FY24-25, which helped ease financial conditions during the year.

In the corporate bond market segment, the Indian bond market remains the primary medium for resource mobilization by Indian corporations. As per SEBI data, bond market issuances through public and private modes stood at INR 8,149 crore and INR 9.87 lakh crore, respectively. The private placement of debt securities has registered a CAGR of 9% over the last three fiscal years ending in FY25, resulting in the total outstanding amount increasing to INR 51.58 lakh crore as of December 2024 compared to INR 43.14 lakh crore as at FY22-23. In the secondary market, total volume of corporate bonds trades at NSE and BSE stood at INR 17.10 lakh cr. in FY24-25, compared to INR 13.73 lakh crore in FY23-24. With the recent relaxation of norms for foreign portfolio investors regarding investments in shorter-maturity corporate bonds, the depth of the Indian corporate debt market is likely to increase further.

India officially joined the JP Morgans Government Bond Index-Emerging Markets (GBI-EM) on June 28, 2024. The move involved inclusion of 29 Fully Accessible Route (FAR) government securities, initially contributing 1% to the indexs weight, aiming to reach a 10% cap by FY25. As per NSDL data, following the inclusion, Foreign Portfolio Investors (FPIs) have invested a substantial INR 80,691 crore in FY24-25, highlighting the immediate positive impact on foreign investment flows. Overall FPI investment in Indian Debt capital market through all channels stood at INR 1.43 lakh crore in FY24-25, compared to INR 1.27 lakh crore of outflow recorded in equity segment during FY24-25.

During FY 2024-25, some key initiatives taken by the regulatory authorities to deepen the bond market in India are as follows:

I Reduction in face value from INR 1,00,000 to INR 10,000: SEBI has reduced the face value of privately placed debt securities to INR 10,000 from INR 1 lakh. This move aims to significantly increase retail investor participation and enhance liquidity in the corporate bond market, under specific conditions.

ii. Increase in Partial Credit Enhancement: NaBFID seeks RBIs approval to increase partial credit enhancement for infrastructure bonds from 20% to 50% of issue size. This aims to help lower-rated companies access bond markets, moving beyond bank loans, and democratize Indias corporate bond market.

iii. RBI Launched Retail Direct App: The RBI launched a mobile app for its Retail Direct Scheme, simplifying individual investment in Government Securities (G-Secs). This move, following a 62% account surge to 109,212 by January 2024, aimed to enhance convenience and deepen the G-sec market.

iv. RBI expands Sovereign Green Bond Access: The RBI has included 10-year Sovereign Green Bonds in the Fully Accessible Route (FAR) category, allowing unrestricted investment for both non-resident and domestic investors. With I NR 36,000 crore issued since FY23, the government aims to raise another I NR 20,000 crore in FY25 for sustainable projects.

4. Our Business

i. A. K. Capital Services Limited (“AK Capital”/ “Company”), incorporated on October 5, 1993, is Flagship Company of the A. K. Group, and is registered with SEBI as a Category I Merchant Banker since April 1, 1998 which is valid permanently unless suspended/ cancelled by SEBI.

AK Capital is one of the countrys leading merchant bank managing private placements as well as public issues of debt securities. AK Capital is primarily engaged in providing various fee-based services such as fund mobilisation through issue of debt securities, structured hybrid instruments, pass through certificates, direct assignments etc. for over 250 clients including Indias premier central and state Government undertakings, public and private sector banks, financial institutions, infrastructure investment trusts (InvITs), real estate investment trusts (REIT) and private corporates. AK Capital aspires to facilitate making the debt markets accessible to retail investors and relentlessly strives towards fulfilling its motto of “Building Bonds”. AK Capital is acknowledged for its unmatched management consultancy, advisory services, financial restructuring etc. and is also one of the few merchant bankers who has direct access as counterparty to almost all domestic banks / institutions.

During the year, the Company has made an application to SEBI to surrender its Investment Advisers license.

AK Capital has 5 subsidiaries and 2 step down subsidiaries which conduct their operations through a network of branches spread over 7 cities of India and 1 at Singapore. The group has interests in diversified business fields and the subsidiaries have been incorporated to specialize and operate in each business area.

ii. A. K. Capital Finance Limited (“AK Capital Finance”), a subsidiary of AK Capital, is registered with the Reserve Bank of India (“RBI”) as a Systemically Important Non Deposit Accepting Middle Layer Non-Banking Financial Company (“NBFC-ND-SI”) and categorised as Investment and Credit Company (NBFC-ICC). AK Capital Finance is engaged in the business of investment and lending activities. The Company primarily operates in a hybrid business model, under which the revenue streams comprises of a regular and stable interest income from its loan book, fees income and treasury income from its investment and treasury book. The lending book of AK Capital Finance comprises of term loans and instruments including non-convertible debentures issued by companies rated investment grade and above. The treasury book includes G-Sec plus highly rated papers that are liquid and have relatively lower risk. AK Capital Finance is amongst one of the few NBFCs having Tri-Party Repo Settlement (TREPS earlier known as CBLO) membership given by the Clearing Corporation of India Limited (CCIL) which enables the company to access funds on tap against SLR securities like G-Secs and SDLs at very competitive cost. AK Capital Finance has strong risk management policies and credit appraisal systems in place, which have helped to maintain good asset quality over the years and the same is reflected by the fact that there is Nil Non-Performing Assets as on March 31,2025.

AK Capital Finance is also a debt listed entity having its debt securities listed on Wholesale Debt Market (“WDM”) segment of the BSE Limited and National Stock Exchange of India Limited.

Further, pursuant to amendment in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”) vide notification dated March 27, 2025, AK Capital Finance is not a High Value Debt Listed Entity, effective from March 27, 2025.

iii. A. K. Stockmart Private Limited (“AK Stockmart”), a wholly owned subsidiary of AK Capital incorporated in 2006 is full service brokerage house with membership of Indias two key stock exchanges viz., National Stock Exchange of India Limited and BSE Limited. AK Stockmarts services span across equity and debt markets. Further, AK Stockmart is also registered as a Depository Participant with the Central Depository Services (India) Limited (“CDSL”) and National Securities Depository Limited (“NSDL”) for seamless settlement and clearing of securities.

Since FY 2009-10, AK Stockmart has distributed debt products of private sector companies as well as public sector companies such as Tata Capital Financial Services Limited, Tata Capital Housing Finance Limited, L&T Finance Limited, Mahindra & Mahindra Financial Services Limited, Aditya Birla Finance Limited, Cholamandalam Investment and Finance Company Limited, Muthoot Finance Limited, Shriram Transport Finance Company Limited, Piramal Capital & Housing Finance Ltd., Poonawalla Fincorp Limited (formerly Magma Fincorp Limited), Credit Access Gramin Limited, JM Financial Products Limited, Shriram City Union Finance Limited, Indiabulls Housing Finance Limited, Indore Municipal Corporation, National Highways Infrastructure Trust (NHAI InvIT), Power Finance Corporation Limited, REC Limited, National Highways Authority of India, NTPC Limited, NHPC Limited, Indian Railway Finance Corporation Limited, India Infrastructure Finance Company Limited, Indian Renewable Energy Development Agency Limited, National Bank for Agriculture and Rural Development.

iv. A. K. Wealth Management Private Limited (“AK Wealth”), incorporated in November 2006 and a wholly owned subsidiary of AK Capital, is registered with SEBI as a Portfolio Management Company. AK Wealth is in the business of providing portfolio management services, private wealth management, asset management, investment advisory and research backed investment solutions to ensure returns commensurate to risk appetite of its clients.

v. A. K. Capital Corporation Private Limited (“AK Capital Corporation”), incorporated in November 2006 is a wholly owned subsidiary of AK Capital.

vi. A. K. Capital (Singapore) Pte. Ltd. (“AK Singapore”), domiciled in Singapore, was incorporated on July 29, 2013 as a wholly owned subsidiary of AK Capital. AK Singapore is registered with Monetary Authority of Singapore as a financial services company and provides financial advisory services to its clients across the globe. It offers cross border funding solutions by identifying potential investors to meet the fund raising needs of its clients. AK Singapore also offers the full range of money market operations in India to meet both the lending and borrowing needs of its clients. The companys research team has conducted in-depth studies of foreign markets and is well-equipped to apply the gained technical information to help accelerate the companys expansion in India and other nascent debt markets.

vii. Family Home Finance Private Limited (“Family Home Finance), incorporated on June 29, 2017 and is a step-down subsidiary of AK Capital through AK Capital Finance. Family Home Finance is registered as a Housing Finance Company with the National Housing Bank and classified as Middle Layer NBFC as per Scale Based Regulation issued by RBI. Family Home Finance primarily offers Home Loans, LAP and secured lending products through co-lending, strategic partnership, Securitization and DA model with channel partners.

viii. A. K. Alternative Asset Managers Private Limited (“AK Alternative), incorporated in December 2022 is a step-down subsidiary of AK Capital through AK Wealth. AK Alternative acts as an Investment Manager and provides Investment Management Services to SEBI registered Alternative Investment Funds.

5. Execution and other services

AK Capital has marked a glorious journey of over 3 decades and has gained expertise as well as recognition in various facets of the corporate bond markets by undertaking and successfully executing various landmark transactions.

AK Capital has been reckoned as a leading arranger for private placement of secured/ unsecured, senior/ subordinated, redeemable, non-convertible debentures/ bonds, perpetual bonds, pass through certificates, redeemable preference shares, etc. for a diverse profile of issuers comprising of:

a. Central Public Sector Undertakings;

b. State Government Undertakings;

c. Public and Private Sector Banks;

d. Public Financial Institutions;

e. Non-Banking Finance Companies;

f. Housing Finance Companies;

g. Infrastructure Finance Companies;

h. Infrastructure Development Funds;

i. Core Investment Companies;

j. Infrastructure Investment Trusts (InvITs);

k. Real Estate Investment Trusts (“REITs”); and

l. Manufacturing and services sector companies.

6. Recognition, Awards & Accolades

i. The Company has been felicitated with the prestigious award of “India Bond House of the Year” at the IFR Asia Awards 2023 which was held on April 16, 2024 at Hong Kong.

ii. The Company has been awarded “Issuer Investment Banker / Merchant Banker of the year” - Runner Up by Associated Chambers of Commerce and Industry of India (ASSOCHAM) at the “6th National Summit & Awards Corporate Bond Market 2023” organized on August 3, 2023 at Mumbai.

iii. Ms. Aditi Mittal - Non-executive Woman Director of the Company was invited as an esteemed panelist for a panel discussion on the theme “Innovative Solutions for Financing Infrastructure” organized by IIFCL a Government of India undertaking under Ministry of Finance on January 6, 2023.

iv. The Company has been awarded “Investment Banker / Merchant Banker of the year” by Associated Chambers of Commerce and Industry of India (ASSOCHAM) at the “5th National Summit & Awards Corporate Bond Market 2022” organized on May 12, 2022 at Mumbai.

v. A. K. Stockmart Private Limited ranks amongst the highest mobilisers of subscription in debt public issues over past decade.

vi. The group is one of the few merchant banking groups to have TREPS membership.

vii. Besides private placements and public issues of debt, the Company and its subsidiaries have demonstrated their progressive presence in undertaking and executing transactions in the following segments:

a. Loan syndication, project financing, syndication of short term debt (CPs etc.)

b. Syndication for Venture Capital Funds, Infrastructure Development Funds, structured hybrid financial products

c. Asset backed financing, investment and trading in debt securities, loan against property, real estate funding etc.

d. Direct assignment and securitization of receivables

e. Trading/investment in Government Securities and Corporate Bonds

f. Stock broking, WDM broking and Depository services

g. Providing portfolio management services, private wealth management, asset management and investment advisory

h. Retirement fund advisory

i. Global financial advisory, cross border funding solutions, foreign currency bonds.

7. Outlook and Strategy

The Indian economy is expected to maintain a positive trajectory in FY25-26, driven by a rebound in consumption demand, sustained government focus on capital expenditure alongside fiscal consolidation, strong balance sheets in the banking and corporate sectors, more accommodative financial conditions, a resilient services sector, and growing consumer and business confidence, all underpinned by robust macroeconomic fundamentals. However, risks to this outlook include uncertainties surrounding global trade amid rising protectionism, prolonged geopolitical tensions, and volatility in global financial markets, which could weigh on growth and exert upward pressure on inflation.

The central government has adhered to its medium-term objective of reducing the Gross Fiscal Deficit (GFD) to below 4.5% of GDP by FY25-26 by targeting a GFD of 4.4% of GDP in 2025-26 (BE), down from 4.7% in FY24-25 (RE). Government finances are expected to remain in good shape, and the budgeted GFD of 4.4% of GDP for FY25-26 appears achievable, considering the higher-than-estimated RBI surplus transfer of INR 2.69 lakh crore to the government. From FY26-27 onwards, the central government aims to maintain the fiscal deficit on a trajectory that ensures a declining public debt-to-GDP ratio, reaching approximately 50% by end of March 2031.

The measures undertaken by the Reserve Bank since January 2025 have significantly eased liquidity conditions and calmed financial markets amid a volatile external environment. Considering the RBIs push to spur economic activity, it is expected that the MPC will further reduce the policy rates in the meetings ahead this fiscal, as the long-term inflation forecast remains anchored around the 4% target range. Additionally, the RBI is also expected to maintain sufficient liquidity in the system, close to 1% of the NDTL of SCBs, so that the lending activities of banks and NBFCs adequately cater to domestic demand.

Reflecting the current benign financial conditions, money market rates and bond yields have eased significantly across credit profiles and maturities. Taking advantage of this conducive environment, private placements through NCDs by domestic corporates reached a record INR 87,088 crore in April 2025. This buoyancy is expected to persist throughout FY25-26, supported by the accommodative policy stance of the MPC.

8. Opportunities and Challenges • Opportunities

a. Corporate bond markets have witnessed an exponential growth in the Country over last decade which may be seen from the table given below:

Private Placement of Debt (Non-Convertible Debentures/ Bonds)

FY 2024-25		FY 2014-15
Total No. of issues	Amount (INR in Crores)	Total No. of issues	Amount (INR in Crores)
3,634	10,83,979.63	1,085	3,56,703.11

b. Further, inclusion of Indias government bonds in the widely tracked JP Morgan EM Bond Index is gradually expected to trigger capital inflows which shall free up an equivalent amount of domestic financial resources for private sector investment and deepen the countrys corporate bond markets.

c. SEBIs recent step to reduce face value of privately placed debt securities from INR 1,00,000 to INR 10,000 under specific cases, shall significantly increase retail investor participation and enhance liquidity in the corporate bond market.

d. Bond structures backed with partial credit enhancement by high rated financial institutions shall open up window for lower-rated companies for accessing bond markets and move beyond conventional bank/ institutional funding.

• Challenges

Like any other market:

a. Corporate bond markets are vulnerable to market risks originating from volatility in interest rates;

b. Operations in corporate bond markets are vulnerable to competition thereby affecting margins;

c. Besides market risks, corporate bonds are vulnerable to credit risk;

d. Growth and performance of domestic corporate bond markets is dependent upon a host of domestic and global macro and microeconomic factors. India offers moderate-risk, high-yielding debt investment opportunities to offshore investors. However, any significant tightening of monetary policy rates by the global central banks may lead to flight of capital and pose competition to Indian bond markets.

9. Segment wise performance

Companys whole business is being considered as one segment, viz. proving merchant banking services within India. The Company has only one segment of activity in accordance with the definition of “Segment” covered under Indian Accounting Standard (Ind AS) 108 on Operating Segments.

The performance of the Company is discussed in this Report.

10. Financial and Operational Performance of the Company

On standalone basis, your Company earned total income of INR 12,724.99 Lakhs during the financial year under review. The profit before tax is INR 3,826.74 Lakhs. After making provision for tax, the net profit of your Company is INR 3,285.21 Lakhs.

The consolidated total income of your Company stood at INR 48,410.09 Lakhs for the financial year ended March 31, 2025. The consolidated profit before tax is INR 10,977.77 Lakhs for the current financial year. After making provision for tax, the consolidated net profit of your Company is INR 8,712.88 Lakhs.

In compliance with the requirement of the Listing Regulations, the key financial ratios of the Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as ‘significant changes), has been provided hereunder:

Sr. No.	Particulars	Financial Year	Financial Year
		2024-25	2023-24
1.	Debtors Turnover Ratio**	21.36	44.09
2.	Interest Coverage Ratio*	1.85	2.02
3.	Debt Equity Ratio	1.51	1.39
4.	Operating profit margin %	30.81%	31.95%
5.	Net profit margin %	25.82%	25.00%
6.	Return on net worth#	6.57%	6.52%
7.	Inventory Turnover Ratio	Not Applicable
8.	Current Ratio	Not Applicable

*Interest Coverage Ratio: On a standalone basis, the Interest Coverage Ratio as on March 31,2025 stood at 1.85 as against 2.02 as on March 31,2024. The decrease is on account of increase in borrowings of the Company.

**Debtors Turnover Ratio: On a standalone basis, the Debtors Turnover Ratio as on March 31,2025 stood at 21.36 as against 44.09 as on March 31,2024. The increase is on account of prompt customer payments and efficient collection and credit policies of the Company.

#Return on net worth: On a standalone basis, the Return on net worth as on March 31,2025 stood at 6.57% as against 6.52% as on March 31,2024. The increase is on account of increase in profits.

11. Human Resource

Our employees continue to be our core asset. We understand that our workforce has a life beyond our doors. Our development activities are focused on creating opportunities that help them achieve the right work-life balance and grow in their respective roles and even beyond them. We remain committed for making AK Group a workplace, wherein the determination and dedication of our employees helps to serve our large clientele & generate long-term value for our shareholders.

As on March 31,2025, the Company had 88 employees on its payroll.

i) Diversity & Inclusion

At AK Group; diversity is our strength. We hire from different cultural and social backgrounds and have a non-discriminatory approach to acquiring talent. Openness and inclusion makes AK Group a place where you would like to work. Our focus is on developing skills, encouraging talent and helping people do the best they can, each day. We work with our employees as partners and provide opportunities for high quality learning, get coaching from industrys best and offer a challenging yet rewarding workplace.

We intend to develop and sustain a diverse workforce which strives to meet the unique needs of our diverse client base and the sectors in which we operate.

Our Management Trainee program is designed to provide opportunities to freshers from Management as well as Professional Institutes. The program focusses on nourishing young talent which are mentored by industry veterans within the Company and make them industry ready.

ii) Teamwork & Leadership

We believe a lot in teamwork, as all our employees work in different teams and also across multiple offices. These teams have their own areas of expertise but they all have shared responsibility and to achieve this, our employees have to work flexibly and collaboratively.

In AK Group, we expect everyone at the firm to be a leader and should not limit their responsibilities & capabilities. The Company identifies and recruits people who share their commitment towards business in addition to their intellect and experience.

iii) Employee Programs

We invest in every step of our employees careers and ensure their long term interests remain closely aligned with those of our clients and shareholders. Our goals are to reinforce the firms culture, maximize individual potential and expand our employees professional opportunities and abilities. We hold varied employee engagement activities, offer development workshops and create an environment of openness where learning is always a possibility and asking questions is the norm rather than the exception.

Annual cricketing event which involved participation of employees from various functions which fostered team spirit. This employee engagement activity proved to be an ice breaker between new incumbents & fostered inter-functional and inter-department communication.

Birthday celebrations, Festive celebrations & Team outings are another method in which an environment is created for employees to connect, celebrate & discuss ideas.

12. Risk and Concern

As a diversified enterprise, your Company continues to focus on a system-based approach to business risk management. The management of risk is embedded in the corporate strategies that best match organizational capability with market opportunities, focusing on building distributed leadership and succession planning processes, nurturing specialism and enhancing organizational capabilities. Accordingly, management of risk has always been an integral part of the Companys Strategy.

13. Internal Control Systems and their Adequacy

The Company has adequate internal control systems to commensurate with the nature of business and size of operations for ensuring:

a. orderly and efficient conduct of business, including adherence to Companys policies and procedures;

b. safeguarding of all our assets against loss from unauthorized use or disposal;

c. prevention and detection of frauds and errors;

d. accuracy and completeness of accounting records;

e. timely preparation of reliable financial information; and

f. compliance with applicable laws and regulations.

Policies, guidelines and procedures are in place to ensure that all transactions are authorised, recorded and reported correctly as well as provides for adequate checks and balances.

Adherence to these processes is ensured through frequent internal audits. The internal control system is supplemented by an extensive program of internal audit and reviews by the senior management. To ensure independence, the internal audit function has a reporting line to the Audit Committee of the Board.

The Audit Committee of the Board reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. The Audit Committee of Board provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. This system enables us to achieve efficiency and effectiveness of operations, reliability and completeness of financial and management information and compliance with applicable laws and regulations.

14. Safe Harbour

The statements made in this report describe the Companys objectives and projections that may be forward looking statement within the meaning of applicable laws and regulations. The actual result might differ materially from those expressed or implied depending in the economic conditions, government policies and other incidental factors which may be beyond the control of the Company.

The Company has obtained all market data and other information from sources believed to be reliable or its internal estimates, although its accuracy or completeness cannot be guaranteed. We are under no obligation to publicly amend, modify or revise any forwardlooking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.