Adani Enterprises Ltd Management Discussions.

The Managements views on the Companys performance and outlook are discussed below:

Economic Outlook

As per Central Statistical Office (CSO) Indian GDP growth in 2017-18 was 6.5%. This growth has been achieved in a milieu of lower inflation, improved current account balance and notable reduction in the fiscal deficit to GDP ratio. In addition to the introduction of GST, the year also witnessed significant steps being undertaken towards resolution of problems associated with non-performing assets of the banks, further liberalisation of FDI, etc., thus strengthening the momentum of reforms. After remaining in negative territory for a couple of years, growth of exports rebounded into positive one during 2016-17 and strengthened further in 2017-18.

The growth during 2018-19 could be higher, depending on a number of factors. On the positive side, as per IMFs World Economic Outlook released in April 2018, the global growth is expected to accelerate to 3.9% in 2018 from 3.8% in 2017. This can be expected to provide further boost to Indias exports, which have already shown acceleration in the current financial year.

There are signs of revival of investment activity in the economy and the recent pick up in the growth of fixed investment can be expected to maintain momentum in the coming year. The policy rates can be expected to remain fairly stable if the inflation rate does not deviate much from its current levels. This, along with the still favourable interest rate regime prevailing in the global markets could provide greater certainty to the investment climate. The reform measures undertaken in 2017-18 can be expected to strengthen further in 2018-19 and reinforce growth momentum. On the other hand, risk to higher growth emanates from higher crude oil prices, protectionist tendencies in some of the countries and tightening of monetary conditions in the developed countries. On balance, there is a strong possibility of growth in 2018-19 to be in the range of 7.0 to 7.5%.

Financial Performance

The Company has registered improved financial performance on the back of its strong operational performance across key segments. Our continued focus on infrastructure, energy and agro sectors is expected to continue to drive our performance and we remain committed to maintaining high operational parameters to create value for our stakeholders.

Key Highlights of the Companys consolidated performance for the year are as under:

- Consolidated Income from Operations increased by 1.71 % to 37,984 crores in FY 18 v/s 37,342 crores in FY 17.

- Consolidated EBIDTA increased by 12% to 3,002 crores in FY 18 v/s 2,663 crores in FY 17.

- Consolidated PAT for FY 18 was 752 crores v/s 986 crores in FY 17.

The Company has enhanced its financial performance on comparable basis on account of higher contribution from Coal Trading and MDO as well as commencement of generation from the Renewable businesses.

Operational Performance

We at Adani Enterprises Limited, focus on sectors of national interest paying attention to renewable energy, mining and agro infrastructure business that is critical for the country. The Governments initiatives to enhance economic reforms in the country are highly encouraging. We remain focused on executing our strategy and increasing momentum of our businesses across the key sectors for long term, sustainable growth. We remain committed to play an enhanced role in Nation Building across various geographies.

Key highlights of the Companys consolidated operational performance are as under -

- Coal Trading volumes stood at 66.05 Million Metric Tons ("MMT").

- Coal Mine Development and Operations volumes stood at 7.04 MMT.

- Renewable Power Generation was 1652.70 Million Units of KWh.

- City Gas Distribution volumes up 17% to 478.60 Million Metric Standard Cubic Meters ("MMSCM").

Key Business Highlights:

Coal Trading

The Company has maintained the status of being the largest Trader and Importer of Thermal Coal in India during the financial year 2017-18 and maintained its market share across all sectors. However, the business saw a decline in the volume pertaining to the supplies made to various State or Central owned Electricity Boards. This segment continues to struggle amidst increased domestic production and power generation scenario in the country.

The outlook for FY19 is expected to be stable as the supply of domestic coal and power generation is expected to maintain current trends. Furthermore, the Company is expanding efforts in capturing higher market share in steel, cement and other sectors by venturing into the retail segment to cater to specific local market in different geographies. Also, the Company has started to provide logistic solutions for coastal movement of domestic coal under the ambit of SAGARMALA Project in FY 2017-18 and expects to increase its share in FY19. The Company has maintained strong relationship with existing coal miners and continues to look at opportunities to develop business relations with new miners, which will lead to timely delivery of coal.

Coal Mining Development and Operations ("MDO")

Our coal mining business involves mining, processing, acquisition, exploration & development of mining assets.

Domestic Coal Mining Operations

In India, as part of the public private partnership model, Government / Public sector companies including State Gencos (State Electricity Boards), which are allotted Coal Blocks, appoint a Mine Developer and Operator ("MDO") to undertake all activities relating to the development and operations of a Coal Block allotted. After Honble Supreme Courts 2014 order leading to cancellation of earlier Coal Block allotment, Ministry of Coal passed and notified The Coal Mines (Special Provisions) Act, 2015. As per new Act, coal mines are being auctioned and allotted. Many of the Government / Public sector companies who were allotted coal blocks have published tenders for selection of MDO and are at various stages of bid processes and subsequent award of tender. The Company has participated widely in such tenders to secure long term MDO contracts in the last financial year. In FY 2017-18, the Company through its subsidiaries, has successfully entered into long term MDO contracts of Gare Pelma Sector III Coal Block and Talabira II & III Coal Block allocated to Chhattisgarh State Power Generation Company Limited and NLC India Limited respectively through competitive bidding process. Further, many of the other tenders are at advanced stage of getting concluded

Moreover, the Ministry of Coal is also in process of opening up commercial coal mining for private sector in phased manner, which could be further opportunity for the Company to leverage its mining capabilities and coal trading experience.

The Company has been appointed as MDO and is undertaking activities relating to the development and operations of certain Coal Blocks in India. The outlook for the sector remains positive.

- Parsa East and Kente Basan Coal Block

Rajasthan Rajya Vidyut Utpadan Nigam Limited ("RRVUNL1) has been allocated the Parsa East and Kente Basan Coal Blocks in Chhattisgarh. To undertake the MDO operations, the Company entered into a joint venture agreement with RRVUNL to form Parsa Kente Collieries Limited ("PKCL1), wherein the Company owns 74% equity interest. This entails development, mining, beneficiation of coal, arranging transportation and delivery of washed coal to end use power projects of RRVUNL. The project commenced Mining Operations and dispatches of coal to Thermal Power stations of RRVUNL in March 2013. For Financial Year 2017-18, Raw coal production was 8.33 MMT, Washed coal production was 7.14 MMT and Washed coal dispatch to Thermal Power Plants of RRVUNL was 7.05 MMT.

- Kente Extension Coal Block

RRVUNL has been allocated the Kente Extension Coal Block at Chhattisgarh. To undertake the MDO operations, the Company had entered into a joint venture agreement with RRVUNL to form Rajasthan Collieries Limited (RCL), wherein the Company owns 74% equity interest. RRVUNL has entered into a Coal Mining and Delivery Agreement with RCL. RCL as Mine Development & Operation Contractor of Kente Extention Coal Block will be undertaking development of the Coal Block, mining, beneficiation of coal and arranging for transportation and delivery of coal to end use power projects of RRVUNL. The Coal Block is under development stage.

- Parsa Coal Block

RRVUNL has been allocated the Parsa Coal Block at Chhattisgarh. RRVUNL has entered into a Coal Mining and Delivery Agreement with RCL. RCL as Mine Development & Operation Contractor of Parsa coal block will be undertaking development of the Coal Block, mining, beneficiation of coal and arranging for transportation and delivery of coal to end use power projects of RRVUNL. The Coal Block is under development stage.

- Gare Pelma Sector-III Coal Block

Chhattisgarh State Power Generation Company Ltd. (CSPGCL) has been allocated the Gare Pelma Sector -III Coal Block at Chhattisgarh for captive use in their Thermal Power Plant in the State of Chhattisgarh. CSPGCL has appointed Gare Pelma III Collieries Limited (GPIIICL), a 100% subsidiary of the Company, as Mine Developer and Operator (MDO) for Development, Operation, Mining and delivery of coal to end use power project of CSPGCL. CSPGCL has entered into a Coal Mine Services Agreement with GPIIICL on 16th November 2017. GPIIICL as Mine Development & Operation Contractor of Gare Pelma Sector III Coal Block will be undertaking development of the Coal Block, mining and arranging for transportation and delivery of coal to end use power projects of CSPGCL. The Coal Block is under development stage.

- Talabira II & III Coal Blocks

NLC India Limited (NLCIL) has been allocated the Talabira II & III Coal Blocks at Odisha for captive use in their Thermal Power Plant. NLCIL has appointed Talabira (Odisha) Mining Private Limited (TOMPL), a subsidiary of the Company, as Mine Developer and Operator (MDO) for Development, Operation, Mining and delivery of coal to NLCIL. NLCIL has entered into a Coal Mining Agreement with TOMPL on 23rd March 2018. TOMPL as Mine Development & Operation Contractor of Talabira II & III Coal Block will be undertaking development of the Coal Block, mining, loading, transportation and delivery of coal to delivery points. The Coal Block is under development stage.

Coal Mining in Indonesia.

PT Adani Global, Indonesia a wholly-owned step down subsidiary of the Company, has been awarded coal mining concessions in PT Lamindo Inter Multikon and PT Mitra Niaga Mulia (step down subsidiaries) in Bunyu island, Indonesia from which coal is used for the captive consumption in power projects.

The Bunyu Mines has Joint Ore Reserves Committee (JORC) compliant resource of 269 Million Metric Tonnes (MMT) for both the mines (i.e. combined). Production from both the mines (combined) during the year 2017-18 has been at 4.01 Million Metric Tonnes (MMT).

Coal Mining and related infrastructure in Australia

Our wholly owned step down subsidiaries in Australia have 100% interest in the Carmichael coal mine in the Galilee Basin in Queensland, Australia. During the year, the group acquired interest in the Carmichael rail infrastructure project too. The Carmichael rail is a vital infrastructure for the purpose of delivery of coal from the Carmichael Coal Mine.

During the year ended 31th March, 2018, the Company has been working on the finalisation of key contracts and the strategy for the financing the project. The Company achieved a Final Investment Decision in June 2017. The Company is currently assessing its financing strategies with a target to achieve production of coal in the FY 2021. In addition, the Company had been working through a number of Judicial Review (JR) challenges in State and Federal Courts with respect to the approval decisions made by respective authorities. The Company received favourable outcome on all the decisions of the court, and as at 31th March 2018, the decision on one case was awaited.

Renewable Energy

Adani Green Energy Limited ("AGEL") was established in 2015 to spearhead the Adani Groups renewable power business and to capitalise on the opportunities in the Indian renewable power industry. Subsequently, AGEL established various SPV Companies to undertake various solar and wind projects. Presently, AGEL alongwith its SPVs is one of the large renewable companies in India with a current project portfolio of ~3.1 GW and having presence across 12 Indian states, Gujarat, Punjab, Rajasthan, Maharashtra, Karnataka, Tamilnadu, Andhra Pradesh, Telangana, Chhattisgarh, Jharkhand, Madhya Pradesh and Uttar Pradesh with a portfolio of 36 operational projects and 3 under construction projects. The Current operational capacity of AGEL is ~2.0 GW. AGEL develops, builds, owns, operates and maintains utility scale grid connected solar and wind farm projects and generates revenue through the sale of electricity to central and state government entities and government-backed corporations. AGEL has long term PPAs of 25 years with central and state government entities out of which nearly 60% of the PPAs are with central government entities (viz. NTPC and SECI). Leveraging its capabilities, AGEL is expanding its project profile in multiple geographies globally in both wind and solar sector. The focus is clearly on value accretion opportunities in politically stable countries at risk adjusted returns. Such opportunities may be explored by AGEL or by its subsidiaries or by its group companies.

We believe that the Indian solar power generation segment is large and growing rapidly due to significant increases in energy demand, decreasing costs of generation and strong social and political support for renewable energy. Government of India ("GOI") has also set a target of having 100 GW in installed solar capacity by Fiscal 2022. The GOI has also set a target of having 60 GW of installed wind capacity by Fiscal 2022. We believe that AGEL is ideally positioned to exploit and aspire to be a leading contributor in these targets of GOI for both Wind and Solar capacity.

AGEL constantly evaluates new business areas emerging in the field of renewable generation. As a natural expansion to current business and to leverage the capabilities, AGEL intends to keenly evaluate and subsequently invest in some of these business areas if those are value accretive investment opportunities. AGEL is currently also evaluating business opportunities in areas such as distributed solar power plants, electricity storage solutions, ancillary services, floating solar systems, etc.

City Gas Distribution

Our City Gas Distribution (CGD) business is undertaken through our Wholly Owned Subsidiary, Adam Gas Limited ("Adam Gas") to provide Piped Natural Gas ("PNG") to household, industrial and commercial consumers and Compressed Natural Gas ("CNG") for use in automobiles. Adani Gas has set up a vast distribution network of approximately 378 km of steel pipeline and approximately 5,578 km of polyethylene pipelines and 73 CNG stations spread across Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. Adani Gas is serving approx. 1208 industrial units, 3,06,255 households and 2,398 commercial units in these cities. AGL has achieved YoY volume growth of 12% in CNG and 23% in PNG in FY 2017-18. The growth is mainly due to enhanced Industrial consumption in PNG and competitive pricing over alternative fuel in CNG.

For future expansion, our 50:50, Joint Venture Company with Indian Oil Corporation Limited, namely Indian Oil- Adani Gas Pvt. Ltd (IOAGPL) has been awarded the authorisation for setting up CGD Network in Allahabad, Chandigarh, Ernakulum, Daman, Panipat, Udham Singh nagar, Dharwad, South Goa and Bulandshahr. Operations in Chandigarh, Allahabad and Daman have already been started. Projects are at various stages of implementation in other cities.

On regulatory front, PNGRB, the regulatory board has come up with new bidding regulations, focusing mainly on infrastructure development and declared timelines of 9 th round of bidding. Our company is looking forward to participate in the same for future growth prospect.

Solar Manufacturing

The Company has set up a vertically integrated Solar Photovoltaic Manufacturing facility of 1.2 GW Capacity along with Research and Development (R&D) facilities within an Electronic Manufacturing Cluster (EMC) facility in Mundra Special Economic Zone (SEZ). The state-of- the-art large-scale integrated manufacturing plant to produce Silicon Ingots/wafers, Silicon Solar Cells, Modules and support manufacturing facilities that includes EVA, Back-sheet, Glass, Junction box and Solar cell and string interconnect ribbon.

At 1.2 GW of production, this plant will be the largest vertically integrated producer of Ingots/Wafers, Solar Cells and Modules in India and well supported by manufacturing units of critical components designed to achieve maximum efficiency in the Indian market. This Solar PV manufacturing facility within EMC facility will be the first to be located in an SEZ under the M-SIPS scheme.

The state-of-the-art manufacturing facility with multilevel infrastructure is optimized for scaling up to 3 GW of modules and cells under a single roof. The unit is located in one of the worlds largest Special Economic Zone at

Mundra, Gujarat and hence plays host to the entire solar manufacturing ecosystem from Polysilicon to modules, including ancillaries and supporting utilities.

The cutting-edge technology, with machines and equipments sourced from the best in class producers, aim to help in cost leadership, scale of operations and reliability standards as per global benchmarks.

Road, Metro & Rail

To contribute towards Nation Building and infrastructure development, your company wants to tap the opportunity in the road, metro & rail sector by developing national highways, expressways, tunnels, metro-rail, rail, etc. Adani group has a successful track record of nurturing businesses in the areas of Ports, Power, Coal Mining, Logistics, City Gas Distribution, Agro etc. and is confident of positioning itself as dominant player in the road, metro and rail sector. The group has developed several railway lines in India and abroad. With a span of 210 kms, Adani owns the longest private railway lines of India. These private rail lines are connected to our ports, mines and other business hubs to ensure seamless cargo movement.

- The company will focus on the projects across pan- India initiated by National Highways Authority of India (NHAI) like Bharatmala Pariyojana, etc and Ministry of Road Transport and Highways (MORTH), Metro Corporation of the respective States and any other projects under the purview of the Central or State Authorities and Agencies.

- As a developer, the Company will primarily target PPP projects structured in Build-Operate-Transfer (BOT), Toll-Operate-Transfer (TOT) & Hybrid- Annuity Mode (HAM).

- The company will also focus on select EPC projects which can offer scale and complexity in terms of the nature of work and technology requirement and which requires the developer to leverage its project execution capabilities to create a differentiated value in the industry.

- Having multiple infrastructure businesses established across different states in India, we would like to leverage our local presence and expertise in project management building a synergy for our Road, Metro & Rail Infrastructure development.

- In addition, the Company would be focusing on in-organic growth through Mergers and Acquisition, where we will look out for good assets which offers clear visibility of cash flows and is available at an attractive valuation.


Edible Oil and Agro-commodities trading

In edible oil and agro commodities business, the Company has continued to maintain its leadership position with its

"Fortune" brand and contributes to lead the refined edible oil market.

The Company entered the edible oil refining business through a 50:50 joint venture company, Adani Wilmar Limited (AWL) with Singapores Wilmar group. AWLs performance has been outstanding during the year both in terms of revenue as well as profitability. Revenue and profitability of the company has witnessed a striking growth of approx. 14% and 63% on year-on-year basis. AWL takes pride in being one of Indias Fastest Growing FMCG companies. With a 20.9% market share in Refined Oil Consumer Pack (ROCP) category (Source: Nielsen Retail Monthly Index March 2018 report), Fortune is Indias number 1 cooking oil brand with the largest variety of oils under a single brand name.

AWL is rapidly moving in the direction of transforming itself from being an edible oil company to an Integrated Food Company. To achieve this transformation, it has already forayed into packed rice, besan and soya value added products under the umbrella of its flagship brand "Fortune". In the coming years, AWL is committed to strengthen its foothold in the market with the help of various pipeline projects. In this direction, during the year, AWL made foray into wheat flour business by launching "Fortune Chakki Fresh Atta" in the northern regions of Delhi, UP and NCR. Having established itself as the firm favourite in the edible oil category, Fortune has entered the foods market and now plays a bigger role in Indian kitchens. The recent step to include Fortification in its products signifies AWLs constant endeavor to live up to its promise of A Healthy Growing Nation. AWL has fortified its products with Vitamin A & D as per the government regulations primarily aimed to cover its celebrated range of Fortune refined edible oils and other popular oils as well. Moreover, AWL has already started heavy promotional activities on various platforms informing consumers about Fortification & resultant benefits in its edible oils.

AWL is in a transformation stage and consequently it is witnessing changes at pace that it has never experienced. In the past 20 months, AWL has undergone one of the biggest sales process transformations under Go to Market (GTM) Transformation Initiative. AWLs foray into a range of new food products and maintain leadership position in volume builder categories has necessitated that the company increases focus on distribution and secondary sales. Sales automation, distribution revamp, coverage expansion & rural market activation are few initiatives that AWL has rolled out in the past year and a half under GTM to which the organization has responded well. Some measures have already started to yield results while progress has been steady on others. The companys progress on IT compliance and secondary productivity metrics - Sales Force Automation and Distributor Management Systems compliance, Salesmen Productivity, Effective Coverage and Range Selling has been remarkable during the year.

AWL!s Fortune oil has been conferred the Superbrands award and also the Readers Digest Trusted Brand Award for the year 2017-18. Fortune Vivo Oil has also been conferred Frost & Sullivan India F & B Innovative Product of the year award. AWL has also been certified as "Great Place to Work" by Great Place to Work Institute, India. AWL has been conferred the SKOTCH ORDER- OF-MERIT AWARD for being amongst the Top 10 Safe Food Projects in India.

Adani Agri Fresh Ltd

Adani Agri Fresh Limited (AAFL), a wholly owned subsidiary of the Company has pioneered the establishment of integrated storage, handling and transportation infrastructure for Apple in Himachal Pradesh. It has set up modern Controlled Atmosphere storage facilities at three locations, Rewali, Sainj, and Rohru in Shimla District. The Company has also set up a marketing network in major towns across India to cater to the needs of wholesale, retail and organized retail customers. The Company which is marketing Indian fruits under the brand name Farm-Pik, has expanded its footprint in the branded fruit segment. The Company also imports Apple, Pear, Kiwi, Orange, Grapes etc. from various countries for sale in India.

The production of apple during the financial year 2017-18 was impacted due to a huge hail storm and as a result, availability of good quality apple for CA storage was limited. On the other hand, apple production in Washington State and China was good. During the year, the Government of India banned the import of apple from China. Due to all the above factors, there was heavy competition from the trade to purchase apple for CA storage and hence the price of apple was high during the procurement period.

During FY 2017-18, the Company bought 17,304 MT of Indian apple valued Rs. 88 Crores and imported 3,011 MT of various fruits, valued at Rs. 32.50 Crores. The Company sold 17,798 MT of domestic apples and 3,212 MT of imported fruits total valued at Rs. 176 Crores.

Adani Agri Logistics Limited

Adani Agri Logistics Limited (AALL), a wholly owned subsidiary of the Company has entered into a service agreement with the Food Corporation of India (FCI) for bulk food grains handling, storage and transportation. The project was started in 2007 & it is now in the 11th year of successful operations.

At present, AALL has seven storage facilities in India, including Moga, Kaithal, Hooghly, Navi Mumbai, Chennai, Coimbatore and Bangalore. The total storage capacity of 5.5 Lakh MT food grain is spread across these seven locations. AALL is eligible for revenues based on Annual Guaranteed Tonnage of 4 Lakh MT irrespective of actual usage by FCI. AALL also has 7 special purpose bulk food grain rakes.

AALL is also serving Madhya Pradesh Warehousing & Logistics Corporation by operating Silos on Design, Build, Finance, Operate & Transfer basis in 6 locations in Madhya Pradesh-Vidisha, Ujjain, Dewas, Harda, Hoshangabad & Satna. This is the 3rd year of its successful operation. Total capacity of these units is 3 Lakh MT. Besides this, AALL had set up one Silo unit in Kotkapura (Punjab) under DBFOT arrangement with FCI. The capacity of Silo unit is 25,000 MT.

Further, AALL successfully bagged Silo Projects on competitive bidding at Katihar (Bihar), Panipat (Haryana) and Kannauj (Uttar Pradesh). Katihar project is on DBFOT basis and Panipat&Kannauj are on DBFOO basis. All units are of 50,000 MT capacity with Railway Siding.

Aimed at reducing Storage & Transit losses, the Government of India is focusing on revamping its Storage & Transport Infrastructure by creating 10 MMT Silos Terminals with Bulk rail infrastructure in various locations of the country in the next 3-5 years. AALL is committed to maintain its leadership position in this sector. It also participated in 6 projects in Punjab, floated by State Government agency Punjab Grains Procurement Corporation (PUNGRAIN) and successfully won the tenders. Each location would be having silo storage of 50,000 MT.

Ship Fuelling

The Company through its subsidiary, Adani Bunkering Pvt Ltd (ABPL), is providing Bunkering Services (Fuel Oil and Marine Gas Oil) to various Ocean going Vessels at different ports in India. Introduction of GST w.e.f July 01, 2017 adversely affected the volumes. The reduction in GST rate from 18% to 5% w.e.f 14.10.2017 has revived volumes to some extent. The overall volumes for FY 2017-18 stood at 3.18 Lac MT which was lower by around 15% vis-a-vis FY 2016-17.

Competitive Strengths and Outlook on opportunities

The Company operates in a highly competitive and rapidly changing market and has competitors in each of our major business operations on a local, regional, national and international level. Although barriers to entry are high in a number of our businesses due to the costs associated with such entry, we continue to face competition from new entrants.

The Company continues to strengthen its position by successfully differentiating its product and service offerings, increasing the scale of its operations and new acquisitions across the globe. Further, the group-wide business transformation program aims to deliver a large scale competitive advantage and use of technology for its advantage.

The Company has a strong track record in the successful development and execution of projects in various business segments. Access to financing sources, partners and industry expertise enables us to identify and value new projects effectively, assess risks and evaluate results which provide a significant competitive edge. We will continue to focus on and create world class projects in each of our business initiatives in resources, energy and agro verticals.

Risk Management

The Company is exposed to business risks which may be internal as well as external. The Company has a comprehensive risk management system in place, which is tailored to the specific requirements of its diversified businesses, is deployed, taking into account various factors, such as the size and nature of the inherent risks and the regulatory environment of the individual business segment or operating company. The risk management system enables it to recognize and analyze risks early and to take the appropriate action. The senior management of the Company regularly reviews the risk management processes of the Company for effective risk management.

The Company is subject to risks arising from interest rate fluctuations. The Company maintains its accounts and reports its financial results in rupees. As such, the Company is exposed to risks relating to exchange rate fluctuations. The Corporate Risk Management Cell works with the businesses to establish and monitor the specific profiles including strategic, financial and operational risks.

We believe that our multi-location operations also allow us to leverage the competitive advantages of each location to enhance our competitiveness and reduce geographic and political risks in our businesses.

Internal Control Systems

The Company has put in place strong internal control systems and best in class processes commensurate with its size and scale of operations.

There is a well-established multidisciplinary Management Audit & Assurance Services (MA&AS), that consists of professionally qualified accountants, engineers and SAP experienced executives which carries out extensive audit throughout the year, across all functional areas and submits its reports to Management and Audit Committee about the compliance with internal controls and efficiency and effectiveness of operations and key processes risks.

Some Key Features of the Companys internal controls system are:

- Adequate documentation of Policies & Procedures.

- Preparation & monitoring of Annual Budgets through monthly review for all operating & service functions.

- MA&AS department prepares Risk Based Internal Audit scope with the frequency of audit being decided by risk ratings of areas / functions. Risk based scope isdiscussed amongst MA&AS team, functional heads / process owners / CEO & CFO. The audit plan is formally reviewed and approved by Audit Committee of the Board.

- The entire internal audit processes are web enabled and managed on-line by Audit Management System.

- The Company has a strong compliance management system which runs on an online monitoring system.

- The Company has a well-defined delegation of power with authority limits for approving revenue & capex expenditure which is reviewed and suitably amended on an annual basis

- The Company uses ERP system (SAP) to record data for accounting, consolidation and management information purposes and connects to different locations for efficient exchange of information.

- Apart from having all policies, procedures and internal audit mechanism in place, Company periodically engages outside experts to carry out an independent review of the effectiveness of various business processes.

- Internal Audit is carried out in accordance with auditing standards to review design effectiveness of internal control system & procedures to manage risks, operation of monitoring control, compliance with relevant policies & procedure and recommend improvement in processes and procedure.

The Audit Committee of the Board of Directors regularly reviews execution of Audit Plan, the adequacy & effectiveness of internal audit systems, and monitors implementation of internal audit recommendations including those relating to strengthening of companys risk management policies & systems.

Human Resources Strategy

During the year, the Company continued its journey towards to BuildingOrganization for current as well as future sustainability by attracting and retaining best in class talents. The Business Process Transformation (BPT) activities focused on process standardization and IT enablement& Digitization of HR Processes introduced in 2015-16 were further strengthened. Further,Senior leadership clearly articulated the HR priorities of the organization with high focus on strengthening the existing practices in the areas of performance management, Learning & Development, and Talent Management.

The Company hires best talent available from the market meeting its diverse requirements. The talent acquisition process further got strengthened with higher focus onbringing the talent with high adaptive leadership skills who will be able to scale up and meet the future leadership requirements of the company. Also, the best talent from the premier business schools of the country i.e. IIMs, ISB etc... were recruited to harness the talent for future requirements of the organization.

As an organization, the Company strongly believes in creating high performance and meritocracy driven culture with transparent reward systems. Accordingly the Performance Management System is reviewed to bring in the simplicity and higher engagement from the employees. Company is actively leveraging the technology to enhance the efficiency and cost optimization in human resources processes. Showing its commitment towards a high empowering organization, company actively sought feedback from all employees in devising the future HR Strategy of the organization and also revising the existing HR Policies and Benefits. Interventions such as 360 degree feedback are as part of promoting employee Respect and Dignity oriented culture in the organization. Active communication channels were created to ensure that employees are kept abreast about the interventions taken up and also to create inclusive partnership for institutionalizing transformed HR processes.

Taking Learning & Development efforts to the next level, Company has partnered with the worlds premier business school for imparting leadership capability in employees through highly focused leadership development programme. A lot of focus is being given to enhance people capability through a comprehensive Learning& Development management philosophy which includes Self Learning modules, Behavioral, Functional / Domain and Business related trainings covering employees across levels

Cautionary Note

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations and others may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ from those expressed or implied. Several factors that could significantly impact the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic and overseas markets, changes in the Government regulations, tax laws and other statutes, climatic conditions and such incidental factors over which the Company does not have any direct control.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.