Carysil Ltd Management Discussions

GLOBAL

ECONOMY

The global economy in 2024 presented a mixed landscape of resilience and uncertainty, shaped by persistent inflation, geopolitical tensions and ongoing trade disruptions. A key factor had been the prolonged instability in the Red Sea, which triggered a significant rise in freight costs and added pressure on global supply chains, further intensifying geopolitical uncertainty and complicating trade and economic dynamics.

Despite these challenges, the global economy expanded by 3.3% in CY 2024, reflecting a continued albeit uneven recovery. As inflation showed signs of softening, central banks in several developed countries, especially in the U.S., took coordinated steps, including interest rate cuts, aimed at reinforcing economic stability and supporting the recovery process. Global headline inflation is projected to moderate gradually, declining from 4.3% in CY 2025 to 3.6% in CY 2026, as advanced economies move closer to their inflation targets ahead of emerging markets.

(Source: World Economic Outlook by IMF, April 2025)

The global landscape experienced a significant shift in early CY25 following the U.S.s introduction of a sweeping series of tariff hikes. This move prompted broad retaliatory measures from key trading partners, resulting in the implementation of near-universal tariffs from April 2025. The sharp increase in global tariff rates has delivered a large and widespread shock to global trade and weakened overall growth momentum.

Global Outlook

Despite ongoing challenges, the global economy continues to demonstrate resilience, supported by moderating inflation, improving financial conditions, and a sustained recovery in private investment.

As inflation continues to decline, financial conditions are expected to improve further, helping to support both consumption and capital formation across advanced and emerging markets. With coordinated strategies and a focus on collective action, the global economy is positioned not only to recover but also to build greater resilience against future challenges.

(Source: World Economic Outlook by IMF, April 2025)

INDIAN ECONOMIC OVERVIEW

India continues to stand out amid global uncertainty and a slower recovery seen in several advanced economies. In the fiscal year 2024-25, the countrys GDP growth reached 6.5%, reinforcing its status as the worlds fastest-growing major economy and marking a significant milestone as it surpassed Japan to become the fourth-largest globally. This growth has been supported by strong domestic demand, targeted policy measures, and ongoing structural reforms that have helped buffer the economy from external pressures. With inflation easing and interest rate cuts on the horizon, Indias economic momentum is poised to strengthen further.

Indias manufacturing sector is gaining traction, supported by the Production Linked Incentive (PLI) schemes and Employee-Linked Incentive Scheme (ELI), increase in export orders, highlighting Indias increasing appeal as a preferred global production hub amid shifting trade patterns.

At the same time, rapid digital transformation continues to drive gains in productivity and support broader economic expansion. Inflation trends have also shown improvement, with headline Consumer Price Index (CPI) inflation easing to a seven- month low of 3.16% in April 2025, driven by lower food prices and declining global crude oil rates. Infrastructure development remain a priority, with the Union Budget for 2025-26 allocating 11.21 Lakh Crore towards major infrastructure projects, including new public- private partnership pipelines, asset monetisation initiatives, and targeted investments in regional connectivity, maritime infrastructure, and clean energy.

Indian Outlook

Looking ahead, the Indian economy is projected to grow at 6.5% in 2025-26, maintaining its growth trajectory despite persistent global uncertainty. The Reserve Bank of Indias cumulative rate cuts, bringing the policy rate down to 5.50% in June 2025 after three reductions since February, are expected to lower borrowing costs and improve credit flow.

These monetary adjustments, supported by easing inflation and robust infrastructure investments, are likely to strengthen both consumption and private capital expenditure. Supported by ongoing structural reforms and guided by the governments long-term vision under the Viksit Bharat 2047 initiative, India remains well- positioned for stable, inclusive, and broad-based economic growth in the year ahead.

GLOBAL KITCHEN SINK MARKET

Kitchens have increasingly become the heart of modern homes, both in design and functionality. As hygiene, safety and aesthetics become increasingly important, kitchen sinks have emerged as essential elements in contemporary kitchen planning. Given that a substantial share of kitchen activities revolve around the sink, their role has expanded from being purely functional to enhancing the overall aesthetic and design of the kitchen.

This has driven a significant shift in consumer preference towards elegant, durable, and feature-rich sinks, particularly quartz models, especially in mature markets such as the U.S. and Europe, where utility and design are equally prioritised.

Rising urbanisation, lifestyle upgrades, and a stronger focus on home improvement are further accelerating this trend. As modular and smart kitchens become increasingly prevalent, the demand for advanced sinks equipped with features like integrated strainers, waste management systems, and sensor technology continues to rise. These innovations have elevated kitchen sinks from simple fixtures to sophisticated assets, making them a key focal point in kitchen design. The global market for kitchen sinks is on a consistent upward trajectory, driven by consumer preference for multifunctional, contemporary kitchen environments. As kitchens evolve beyond their traditional role to become design-focused spaces, the appetite for innovative sink solutions is rising.

(Source: )

North America remains the largest and most developed market for kitchen sinks, with Europe closely following behind. This growth is driven by consistent renovation activity, a high rate of homeownership, anc growing consumer preference for modern kitchen designs paired with premium- quality fittings.

Market Drivers

Demand is increasing for sinks equipped with smart technologies, including voice control, app connectivity, and watersaving features.

Globally, stainless steel remains the top choice for kitchen sinks, prized for its durability, corrosion resistance, and easy upkeep.

Composite granite sinks, which blend natural stone and acrylic resins, are gaining favour for their durability, heat resistance, and scratch resistance, offering a range of colours and finishes.

Growth in urban populations is driving housing developments and elevating the need for contemporary kitchen fixtures.

Increasing disposable income in emerging economies is fostering investment in premium kitchen solutions.

Sustainability initiatives are encouraging the adoption of eco-friendly sinks made from recycled or natural materials.

Interest in kitchen sinks with features such as touchless faucets, water-saving sensors, and built-in filtration systems is increasing.

Quartz Sink

Quartz kitchen sinks have gained popularity among modern homeowners by offering an ideal balance of durability, functionality, and elegant design. Crafted from a composite of natural quartz and resin, these offer exceptional performance and design appeal. The Qua Kitchen Sink market is expected to increase from USD 2.3 Billion in CY 2025 to USD 3.8 Billion in CY 2034, expanding at a CAGR of 6.2%.

(Source: )

KEY HIGHLIGHTS

?–? Scratch-Resistant Surface

The dense, non-porous quartz surface resists scratches, preserving its flawless finish over time.

?–? Heat Resistance

Their ability to withstand high temperatures means hot cookware can be placed directly in the sink without damage or discolouration.

?–? Stain Resistance

Quartz stain-resistant properties protect against common kitchen substances like wine, coffee, and oil, keeping the sink clean.

?–? Noise Reduction

The natural sound-absorbing quality reduces noise from water and utensils, ensuring kitchen tranquillity.

?–? Hygienic Design

A smooth, non-porous surface inhibits bacteria and mould growth, promoting hygiene in food preparation areas.

?–? Stylish Aesthetics

Quartz sinks come in an array of colours, matte finishes, and elegant textures, elevating both modern and traditional kitchen aesthetics.

I?–? Low Maintenance

Cleaning is simple and requires only mild soap and water, eliminating the need for specialised cleaners.

?–? Exceptional Durability

Built from natural quartz and resin, these sinks offer outstanding durability against scratches, chips, and minor impacts encountered daily.

?–? Sustainable and Eco-Friendly

Fully recyclable and with high scrap value, quartz sinks align with the rising demand for environmentally responsible products.

(Sources: the%20global%20market,period%20(2024%2D2031)

Stainless Steel Sink

The enduring appeal of stainless steel in kitchen sinks is driven by its durability, corrosion resistance, and low maintenance. On a global scale, the stainless steel sink market is projected to grow from approximately USD 2.8 Billion in CY 2025 to USD 3.7 Billion by

KEY HIGHLIGHTS

Exceptional Durability

Made from high-grade steel alloys, typically 18/8 or 304-grade stainless steel, these sinks are built to endure intensive daily use. They maintain structural integrity over time, resisting dents, cracks, and visible wear, making them well-suited for high-traffic kitchen environments.

Heat Resistance

Stainless steel surfaces tolerate high temperatures without warping or discolouring. Direct exposure to hot pots, pans, or boiling water leaves no damage, supporting efficient performance in fast-paced cooking conditions.

Cost-Effective Solution

Offering a practical combination of strength and value, stainless steel sinks remain competitively priced. This makes them a compelling choice for both residential and commercial kitchens.

Versatile Designs

Available in a broad range of formats, including single and double basins, undermount and top-mount styles, and configurations like farmhouse and bar sinks, stainless steel adapts seamlessly to various kitchen layouts and functional requirements.

Eco-Friendly & Recyclable

Stainless steel is entirely recyclable. Many manufacturers now use recycled materials in manufacturing, which enhances its appeal as a sustainable material choice.

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Indias Kitchen Sink Market

Indias kitchen sink market is witnessing an upswing, driven by rapid urbanisation, rising disposable incomes, and an increase in residential construction and renovation activities. These shifts have significantly elevated the demand for modern kitchen fixtures, positioning sinks as a focal point in kitchen design. Stainless steel continues to lead the market, valued for its durability, corrosion resistance, and low maintenance. Once limited to utility spaces or rental properties, stainless steel sinks are now widely adopted in premium kitchens, admired for their sleek finishes and ease of upkeep. In response to changing consumer expectations, Indian manufacturers are improving both the functionality and visual appeal of their offerings. The market is also seeing stronger demand for sinks that promote hygiene, with undermount models gaining popularity due to their seamless integration and reduced buildup of grime. As kitchens in India evolve into spaces that blend design and efficiency, the kitchen sink market is well-positioned for sustained and diversified growth.

Key Growth Drivers

Stainless Steel Sinks:

Functional and Elegant

Indigenous stainless steel sinks offer both durability and aesthetic appeal, now featured prominently in premium kitchens.

Hygiene-Driven Design Preferences

Growing focus on sanitation is increasing demand for sinks that are easy to clean and maintain, reinforcing the importance of hygienic design.

Demand of Undermount Sinks on the Rise

Seamless design and ease of cleaning are making undermount sinks a preferred choice in contemporary Indian kitchens.

Rising Spending on Home Decor and Kitchen Renovations

Higher disposable income and lifestyle upgrades are driving demand for stylish, modern kitchens with sinks as integral decor elements.

Commercial Sector Expansion Fuelling Demand

Increased installations in hotels, restaurants, and commercial kitchens are contributing to the rising adoption of durable, multi-functional sinks.

Popularity of 2-Bowl and 3-Bowl Kitchen Sinks

Multitasking-friendly sink designs are gaining popularity among households and commercial users alike, supporting time efficiency and convenience.

Surge in Refurbishment and Remodeling Projects

Growing investments in kitchen and bathroom refurbishments, especially countertops, are boosting demand across residential and hospitality sectors.

Urbanisation and Smart City Development

Rapid urbanisation and smart city initiatives are spurring demand for modular kitchens and aesthetically integrated appliances and fixtures.

Suburban Shift and Spacious Living Preferences

Remote work has shifted buyer preferences towards larger suburban homes, prompting higher demand for functional and modern kitchen infrastructure.

Global Kitchen Appliances Market

The global kitchen appliances market is undergoing rapid transformation, driven by lifestyle shifts that prioritise convenience, compactness, and smart functionality. Demand is accelerating for IoT-enabled products, touchless operation, and energy-saving technologies, reflecting the growing appeal of connected and sustainable solutions. At the same time, rising awareness around hygiene has increased consumer preferences for appliances that are easy to clean and maintain. In response to these demands, manufacturers are developing sleek, space-saving models equipped with features that combine style and functionality. Simultaneously, the growing presence of e-commerce and improved logistics networks has broadened access and accelerated market penetration. With the kitchen now playing a more prominent role in everyday routines, demand continues to rise for appliances that offer both performance and design value.

Indian Kitchen Appliances Market

Indias kitchen appliances market is experiencing strong momentum, supported by growing urbanisation, rising disposable incomes, and evolving lifestyle patterns. The move towards nuclear families and smaller living spaces is increasing demand for modern, energy-efficient appliances, particularly among working professionals and the expanding middle class. Government schemes like rural electrification and PMUY have broadened market access, while improved awareness in rural regions is translating into growing interest in branded offerings. Large appliances continue to lead the market, reflecting consumer aspirations for smarter kitchens. Simultaneously, the growing adoption of e-commerce platforms and the spread of modular kitchen concepts are reshaping both accessibility and distribution channels across urban and rural India?€”positioning the sector for broad-based and inclusive growth.

(Source )

Key Growth Drivers

Surge in Smart Appliance Demand

Indias growing adoption of smart home technology is fueling demand for Wi-Fi-enabled, voice-activated, built-in kitchen appliances that enhance user convenience.

Emphasis on Customisation and Modular Design

Consumers prefer modular, customisable appliances that adapt to diverse kitchen layouts and enhance space efficiency.

It Growing Popularity of Energy Efficiency

Eco-conscious buyers are opting for energy-saving appliances with inverter technology and sustainable features like low water usage.

Adoption of Innovative Cooking Technologies

Built-in appliances such as induction cooktops and steam ovens are gaining favour for enabling faster, healthier, and more efficient cooking.

Seamless Integration with Cabinetry

Appliances designed for flush installation provide a cohesive, contemporary look that complements modern kitchen aesthetics.

Emphasis on Convenience

Features like sensor-based dishwashers, auto-clean filters, and flexible racks are highly valued for simplifying daily kitchen routines.

Global Faucet Market

The kitchen and bathroom fixtures market is expanding steadily, driven by shifting consumer preferences and changing lifestyle patterns. Increasing demand for modern, smart, and space-efficient solutions is influencing the design of contemporary living spaces. Rising urbanisation and an increase in residential and commercial construction activities are further contributing to market growth. Simultaneously, the growing inclination towards home renovation and the adoption of smart, tech-integrated fittings are accelerating the move towards more refined, high-end kitchen and bathroom solutions.

(Source: Description-,Faucet%20Market%20Size%20and%20Forecast%202025%20to%20 com/report/faucet-global-market-report)

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Bath and shower products have evolved beyond basic hygiene to deliver wellness-oriented experiences. Consumers are increasingly seeking offerings that combine functionality with sensory appeal, driving demand for items like bath salts, body washes infused with essential oils, and aromatherapy-based formulations. In mature markets, rising interest in intimate and specialised hygiene categories reflects a broader move towards personalised and sensorial care. The global bath and shower products market size is projected to grow from USD 53.74 Billion in CY 2025 to USD 79.96 Billion by CY 2032, clocking in a CAGR of 5.84%. Alongside this trend, demand for smart bathrooms is also gaining pace, particularly in urban centres and smart city developments where consumers are integrating advanced technologies into their homes. The global smart bathroom market is anticipated to grow from USD 10.19 Billion in CY 2025 to USD 24.83 Billion by CY 2034, registering a CAGR of 10.48% over the forecast period.

(Sources: valued%20at%20USD%2049.94,5.7%20%25%20over%20the%20forecast%20period, https://

2024%2D2030.)

Global Top Fabrication Market Overview

Worktops are a key fixture across a variety of spaces, serving functional and aesthetic roles in residential kitchens, commercial bathrooms, laboratories, and retail interiors.

These surfaces, typically supported by cabinetry, are made from materials chosen for their strength, design compatibility, and ability to accommodate built-in appliances. With growing emphasis on interior quality and material performance, demand for long-lasting, adaptable worktops continues to rise.

In 2024, the global countertop market size was valued at USD 131.42 Billion and is projected to grow to USD 185.41 Billion by CY 2032, rising from USD 136.19 Billion in CY 2025 at a CAGR of 4.5%. The Asia-Pacific region accounted for the largest share of the global market at 37.30% in CY 2024. Meanwhile, the U.S. countertop market is anticipated to reach USD 33.82 Billion by CY 2032.

(Source: )

Key Market Trends

?–? Tech-Integrated Countertops Redefine Kitchen Functionality

Smart countertops are transforming kitchens into high-tech culinary hubs, blending efficiency with futuristic design.

Smart Surfaces Bring Intelligence to Everyday Cooking

Touch-sensitive counters with digital displays offer on-demand recipes, measurements, and appliance control all at the fingertips.

Invisible Induction Enhances Style and Efficiency

Seamlessly embedded induction zones maintain countertop aesthetics while offering safe, space-saving, and direct cookware heating.

Antimicrobial and Self-Cleaning Surfaces Prioritise Hygiene

Advanced materials and UV-powered self-cleaning features ensure sanitised prep zones, combining hygiene with convenience.

Sensor Technology Boosts Safety and Cleanliness

Thermal and spill sensors alert users in real-time, helping prevent accidents and preserving surface integrity.

Built-In Wireless Charging Adds Seamless Connectivity

Charging stations embedded within countertops eliminate clutter, keeping digital devices powered and accessible during kitchen use.

Quartz and Eco-Materials Define the Future of Countertops

Durable quartz surfaces and recycled cabinetry offer both resilience and sustainability for the modern, conscious homeowner.

Notes:

?€? All figures appear to be in thousands or millions (units not specified in original)

?€? CAGR: Compound Annual Growth Rate

?€? Data shows consistent growth across all categories from 2013-2028

(Amount in US $)

	Global Demand	New Residential	Residential Remodeling	New NonResidential	Non Residential Remodeling
CAGR 2018-23	5.4%	9.5%	5.6%	2.6%	4.5%
Projected CAGR	5.4%	7.7%	5.2%	5.4%	4.7%
2023-28

COMPANY

PERFORMANCE

Quartz Segment

The segment continues to record strong growth, driven by steady demand from key international markets, including the U.S., the UK, and Europe. At Carysil Limited (also referred to as Carysil,

Our Company, or We), our growing order pipeline is set to significantly boost production volumes and improve capacity utilisation in the near term, with plans already in motion to further expand manufacturing capabilities. Favourable trade conditions, coupled with rising manufacturing costs in Europe, offer us a distinct edge in both cost efficiency and quality, enabling deeper market penetration. At the same time, the domestic market is advancing with the launch of premium quartz sink designs and workstation sinks, strategically positioning our Company to capture value-driven growth both at home and internationally.

Capacity Utilisation

We are targeting an increase in capacity utilisation from the current level of 65% to the level of 85-90% by end of Q4 2025-26.

Steel Segment

Carysils stainless steel sink segment continues to demonstrate strong and steady growth, fuelled by solid demand across both domestic and international markets, with significant traction in the UK and Europe. Currently operating at over 80% capacity utilisation, we are actively advancing plans to expand our manufacturing capabilities to accommodate this increasing demand. To further elevate production efficiency and product excellence, we are investing in advanced technologies and introducing additional shifts. Our product portfolio stands out in market through the handmade fabricated sink known as Quadro, PVD-coated sink and launch of premium stainless steel workstations featuring thicker gauge sinks, distinguishing our products from standard market offerings. Favourable market dynamics and the China plus strategy have led to an increase in inquiries and orders, which Carysil is well-equipped to serve. Additionally, our strategic alliances with global retailers and top-tier kitchen brands strengthen our competitive edge and drive our long-term growth strategy.

Expansion

We are investing around 10 Crore to increase our stainless steel sink capacity by 70,000 units, aiming to reach a total capacity of 250,000 units by Q3 2025-26.

Kitchen Appliances and Others

The segment is witnessing steady progress, driven by our targeted strategy focusing on product diversification, in-house manufacturing, and domestic market expansion. We have successfully commenced in-house assembly of kitchen hoods and faucets and are establishing a manufacturing facility for built-in appliances, with an anticipated annual capacity exceeding 100,000 units. This initiative, designed in compliance with BIS standards, is intended to enhance our control over quality, cost, and delivery timelines. The segment achieved year- on-year growth due to well-established brand recognition in India. We continue to expand our kitchen portfolio by launching technologically advanced products, including AI-enabled smart appliances, ovens with integrated air fryers, and built- in refrigerators.

63,200 UNITS

OF KITCHEN APPLIANCES SOLD IN 2024-25

Carysil FZ-LLC

Our GCC market subsidiary continues to demonstrate strong demand, particularly in the appliances category, which now represents more than 90% of UAE business, with sinks and accessories comprising the balance. The subsidiary has surpassed its growth targets for CY 2025, supported by a major partnership with a leading developer. Furthermore, a second showroom after Dubai is being established in Sharjah to expand its regional presence.

Carysil Products and Carysil Surfaces Limited

Our UK subsidiaries continue to make strong progress and are expected to deliver improved performance in the year ahead. Capitalising on the free trade agreement between India and the UK, along with cost advantages over European competitors, they have secured key new customers, including a major exclusive agreement with the UKs largest kitchen manufacturer. Continued expansion of our product range and growing customer base are driving robust sales momentum, positioning our subsidiaries as leading players in the UK kitchen market.

United Granite LLC

Our U.S. subsidiary navigated a challenging year marked by muted demand and subdued local market conditions. Despite these headwinds, we undertook significant efforts in operational efficiency, cost optimisation, and strategic realignment. As a result, the subsidiary is now well-positioned on the path to profitability. For 2024-25, the entity reported a positive EBITDA of 1.2 Crore, a marked turnaround from the EBITDA loss of 1.3 Crore in 2023-24. Further, the subsidiary is expected to achieve full profitability by the next financial year. We have also strategically shifted our product mix towards higher-margin, exotic, and value-added granite and stone offerings, better aligned with evolving customer preferences and our long-term growth objectives. This repositioning, coupled with disciplined cost management, has strengthened United Granite LLCs competitive standing in the U.S. market.

STANDALONE

PERFORMANCE

By the end of 2024-25, our standalone turnover grew by 13.2%, reaching 420.3 Crore compared to 371.2 Crore in

2023- 24. Profit after Tax (PAT) also increased, rising to 36.9 Crore in

2024- 25, up from 36.3 Crore the previous year.

CONSOLIDATED PERFORMANCE

Carysils consolidated revenue increased by 19.3%, reaching 815.6 Crore in 202425, up from 683.8 Crore in 2023-24. International sales climbed to 666.3 Crore in 2024-25, up from 543.3 Crore in

2023- 24. Consolidated PAT grew by 10.2%, increasing to 64.3 Crore in 2024-25 compared to 58.4 Crore in the previous year. Earnings per share (EPS) also improved, rising to 22.43 at the close of

2024- 25 from 21.6 in the previous fiscal year, on a consolidated basis. Additionally, maintaining a consistent and prudent dividend policy, the Board of Directors has recommended a dividend of []%.

Key Financial Ratios (Standalone)

(Amount in US $)

Key Financial Ratios	2024-25	2023-24	Change in %	Reason for change
Current Ratio (in times)	1.61	1.14	41.43	Increase in current assets
Debt-Equity Ratio (in times)	0.30	0.53	(43.06)	Increase in shareholders equity
Debt Service Coverage Ratio (in times)	2.95	2.84	4.18	Improved profitability and reduction in finance costs
Return on Equity Ratio (%)	11.10	15.09	(26.47)	Increase in shareholders equity
Inventory Turnover Ratio (No. of days)	84.81	79.34	6.89	Higher inventory holding due to increase in stock levels to meet demand
Trade Receivables Turnover Ratio (No. of days)	74.58	68.30	9.20	Increase in credit sales and extended collection period
Trade Payables Turnover Ratio (No. of days)	70.57	72.65	(2.87)	Slight reduction in average payment period to suppliers
Net Capital Turnover Ratio (in times)	3.29	11.96	(72.51)	Increase in working capital
Net Profit Ratio (%)	8.78	9.77	(10.15)	Reduction in operating margins due to increased costs
Return on Capital r-xx ro/\	11.22	14.96	(24.98)	Increase in capital employed with relatively lower growth in profits

Risk Management

Our Company adopts a comprehensive risk management approach to effectively address financial, operational, and sustainability-related risks across our business.

Political and Economic Instability

Carysil maintains a vigilant watch over both domestic and global political and economic developments. By continuously evaluating key macroeconomic indicators, such as inflation and interest rates, we can anticipate changes in the business environment and formulate strategies to mitigate potential adverse impacts on our operations. Our core focus is on staying agile and adaptable, allowing us to navigate economic challenges effectively. This proactive approach ensures our Company remains resilient, responsive to market shifts, and committed to delivering high-quality products and services to our customers.

Currency Fluctuations

Operating in the kitchen appliance industry with a significant export footprint, we remain highly attuned to the effects of currency fluctuations on our production costs, pricing strategies, and overall profit margins.

An appreciating domestic currency can compress margins, while a weaker currency may boost profitability. To manage this risk, we adopt proactive measures such as maintaining a 50-60% hedging position and continuously monitoring foreign exchange markets to ensure timely and effective responses to currency volatility.

Competition Risk

We export our products to leading economies, including the U.S., the UK, Europe, and more than 55 other countries. While this extensive global footprint presents significant growth opportunities, it also exposes Carysil to intense competition from local manufacturers in these markets, creating challenges in maintaining market share. However, we have built a strong brand reputation, rooted in quality and service, which acts as a critical differentiator. This helps mitigate competitive pressures and maintain our edge on the global stage.

Legal and Regulatory Risk

As a player in the kitchen appliance sector, we operate under a wide array of regulations and obligations, covering areas such as product safety, environmental standards, and manufacturing protocols. Failure to comply with these regulations could lead to significant legal and financial consequences. To mitigate these risks, we have established robust internal systems and controls designed to ensure full compliance with all relevant laws and regulations. This approach helps reduce our exposure to legal and regulatory challenges.

Marketing Strategy and Retail Network

A well-crafted marketing strategy is crucial to Carysils success, while ineffective marketing efforts could negatively impact overall business performance. To manage this risk, we have developed a strong, reliable, and diverse global retail network. The focus is on growing and strengthening this network by forming strategic partnerships that ensure broad market coverage and maximise output. These actions help us to broaden our customer base and boost brand presence across different markets.

Product Quality Risk

Our Company recognises that risks related to product quality can have a profound impact on our reputation and overall business performance. Substandard quality may lead to customer dissatisfaction, increased complaints, negative reviews, and weakening of brand equity. These challenges can further translate into declining sales, loss of customers, and reduced profitability. In more severe instances, quality lapses could result in costly product recalls or legal repercussions, jeopardising Carysils financial stability. Consequently, we remain committed to upholding the highest quality standards and aligning with international benchmarks, as reflected by our multiple global certifications. Quality is deeply ingrained in our Companys culture, viewed not simply as a procedural obligation but as a core value.

IT Risk Management and Cybersecurity

Effective IT risk management and cybersecurity are critical to ensuring operational efficiency and protecting data in todays digital landscape.

Our Company manages information technology risks through a robust framework of policies, procedures, and technological safeguards. Cybersecurity efforts are dedicated to defending our networks, systems, and digital assets against threats such as malware, phishing, ransomware, and other cyberattacks.

We provide employees with a range of technological resources for official use, including personal computers, servers, telephones, internet access, and software applications, all governed by Carysils IT policy. This policy establishes standards for ethical usage, maintenance protocols, security requirements, and support procedures. It also offers a channel for addressing employee concerns related to the technological tools and services essential for their work.

To further strengthen our IT risk management, we have implemented structured and regular data backups, secure access controls, licensed antivirus and firewall solutions, and rigorous oversight of third-party vendor risks. Together, these protect our data infrastructure and ensure uninterrupted business operations.

Human Resources

At Carysil, we take pride in our dedicated and talented workforce, whose growth we actively support through ongoing training programmes that keep them updated on the latest technologies and industry trends. We prioritise employee well-being by providing competitive compensation, comprehensive benefits, and a nurturing work environment.

Our commitment to strong leadership, continuous learning, and career development enables us to maximise human capital and strengthen retention. We deeply appreciate the contributions of our people and are committed to fostering a culture of engagement, empowerment, and growth, fully aligned with our vision to unlock individual potential and drive collective excellence. During 2024-25, we received the prestigious recognition of Great Place to Work certification for Carysil Ltd.

Internal Control Systems and Their Adequacy

We have established internal controls that is commensurate with the size of our Company, nature of our business, and complexity of our operations. These systems are designed to provide reasonable assurance in safeguarding our assets, ensuring that every transaction is duly authorised, accurately recorded, and transparently reported. We continuously monitor potential operational risks and implement prompt corrective measures to address them. Our internal controls also ensure the integrity and reliability of both financial and operational data, enabling us to provide a true and fair representation of our overall performance.

Cautionary Statement

This Management Discussion and Analysis may include forward-looking statements based on current expectations, estimates, and projections. Actual results may differ materially due to various internal and external factors, including economic conditions impacting demand, supply and pricing in domestic and international markets, regulatory changes, tax legislation, and other unforeseen variables beyond our controls. The Company undertakes no obligation to publicly update any forward-looking statements, which reflect the views of management as of the date of this report.