Amber Enterprises India Ltd Management Discussions

Indian Industry Overview

Room Air Conditioners (RACs) Market Review

The Indian room air conditioner (RAC) market is experiencing rapid growth, driven by factors such as longer summers, rising disposable incomes, and a growing population. In FY 2023-24, the market reached approximately 9.5 Million units and is estimated to reach around 25 Million units by FY 2029-30, with a compounded annual growth rate (CAGR) oRs 12-15% during the forecast period.

The increasing demand for comfort coupled with the lower RAC penetration level in Indias urban households (12%), compared to developed countries (90%), indicates significant growth potential. The development of new housing societies, expansion in the residential sector, and rapid commercialisation are expected to contribute significantly to the markets growth. The rise in residential and commercial construction projects in metropolitan and tier 2 cities is also expected to boost the demand for room air conditioners. Additionally, the increasing number of RACs per household is expected to support volume and value growth in the coming years.

The Government of India has announced a production- linked incentive (PLI) scheme handholding the industry by offering incentives to companies that invest and produce air conditioner components such as compressors, copper tubes, aluminum, PCBAs, Cross flow fans, sheet metal components, plastic molding components, heat exchangers and motors, thereby creating a local manufacturing ecosystem rather than just assembling complete AC units.

In 2021, RAC manufacturers in India were operating at a local value addition oRs 25% which significantly rose to more than 50% in 2024 post PLI. The scheme played a pivotal role in reducing Indias import dependence in the air conditioners sector and nurturing a high degree of backward integration with an aim to promote exports. This scheme has triggered a structural shift in the industry, where, in the past two years, all the low-value intermediary components are being manufactured locally. As India inches towards its ambition, there is a need for localisation of more high-value components to support this trend, which is expected to lead to gradual indigenisation of the industry to 75-80% by 2027.

Aspirational Middle Class

The younger generation in India is increasingly recognising the importance of a better lifestyle, prompting an early demand for consumer goods. With a younger demographic profile coupled with rising aspirations is resulting in distinct buying beahviours characterised by a higher aversion to risk. Also, access to easy finance options further empowers this segment to make their buying decisions with ease and flexibility. The changing pattern in consumption habits is leading to shorter product lifecycles and faster replacement cycles, presenting the market with increased opportunities for repeat business.

Increasing Demand for Energy Efficient Models

Todays consumers are more educated about the use of energy efficient products and energy savings, which has prompted an upward shift in demand for 5-star air conditioners. This trend is expected to continue, driving the demand for energy efficient RACs.

Rising Temperature Levels

2023 was the warmest year since global records began in 1850 at 1.18?C (2.12?F) above the 20th century average oRs 13.9?C (57.0?F). This value is 0.15?C (0.27?F) more than the previous record set in 2016. The ten warmest years in the 174 year record. The upcoming years are expected to witness a further escalation in temperatures, resulting in an increasing demand for room air conditioners.

Government Focus on Local Manufacturing

With the prime objective of self-reliance, the government has taken several tariff and non-tariff measures to make India a global hub for air conditioner manufacturing by removing sectoral disabilities, creating economies of scale, and ensuring efficiencies. PLI is one such initiative which is designed to create a local component ecosystem in India and make the country an integral part of the global supply chains.

Indian Electronics Industry Review

The Government of India is focused on building a robust semiconductor ecosystem to catalyze its rapidly expanding electronics manufacturing sector. Strengthening the critical pillar of progress—‘Electronics—and reinforcing the vision of ‘Aatmanirbhar Bharat, India aims to broaden and deepen its value chain and create a world-class semiconductor manufacturing ecosystem. Key government policies, including the Production Linked Incentive (PLI) Schemes, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Electronics Manufacturing Cluster (EMC 2.0) Scheme, are major steps toward making India self-reliant in electronics manufacturing.

Further, the government is inclined towards creation of a PCB ecosystem with an aim to reduce imports of PCB. The Indian PCBs market attained a value of ~US$ 4.8 Billion in 2023, driven by the thriving consumer electronics industry and favourable government initiatives. Out of the total Indian PCB market, around 15% is manufactured in India. Aided by the growing demand for miniaturised gadgets and increased digitisation across sectors the market is expected to witness further growth in the forecast period oRs 2024-2030, advancing at a CAGR oRs 12-15%. The market is projected to reach US$ 10 Billion by 2030.

Around 85% of the countrys PCB demand was met through imports in FY 2023-24. The key factors driving this market included rising utilisation in consumer electronic products, electric vehicles (EVs), telecom, medical devices, smart electronic devices, IT hardware, among others along with favorable government policies. The ministry of finance imposed a 30% anti-dumping duty on bare PCBs (manufactured in China and Hong Kong) up to six layers that are used for applications like automobiles, IT, consumer durables etc. This provides significant import substitution opportunities for domestic players. As the electronics sector graduates from US$ 100 Billion to US$ 300 Billion in next six years, the demand for PCBs will expand exponentially.

The Indian electronics industry is poised for significant growth, driven by government initiatives, increasing domestic demand, and a focus on higher value addition in components and product development. The industry is expected to reach US$ 115 Billion in 2024, with the semiconductor market witnessing proportional growth.

Electronics manufacturing services (EMS), encompassing designing, manufacturing, testing, distribution, and servicing of electronic components and assemblies for OEMs, are pivotal to this growth. The EMS industry is expected to register a CAGR oRs 32% over the next five years, significantly higher than the global EMS markets growth rate, reaching US$ 80 Billion by 2026. This growth is driven by increased outsourcing by original equipment manufacturers (OEMs), the China Plus One strategy, and the development of the domestic electronics ecosystem. The mobile, consumer electronics, and appliances segments are expected to record a CAGR oRs 31.5% over the next five years, providing growth opportunities for strategic and financial investors.

Growth Drivers

I Domestic Demand

Strong domestic demand is buoyed by factors such as a burgeoning population, rising income levels, and the expanding presence of electronics across various sectors including consumer-oriented industries and industrial segments like defense, automotive and railways.

) Import Substitution

Presently, imports constitute approximately 30% of Indias electronic market, primarily originating from China. The Production Linked Incentives (PLI) are structured to enhance the competitiveness of domestic manufacturing by mandating the compulsory local sourcing of specific components within defined timeframes. This initiative aims to redirect a portion of import volumes towards domestic manufacturers.

New Sectors

Moreover, several new age product categories, such as automotive, are experiencing a surge in electronic integration. For instance, Electric Vehicles (EVs) feature significantly higher electronic component values compared to Internal Combustion Engine (ICE) vehicles. This expansion is expected to substantially broadbase the Total Addressable Market (TAM) for Electronics Manufacturing Service (EMS) players.

Exports: a Long-term Opportunity

Over the past few years, businesses have been actively exploring alternative sourcing options to China. Escalating geopolitical tensions and trade barriers have elevated the costs associated with procuring goods from China. This scenario presents a potential medium to long-term opportunity for Indian Electronics Manufacturing Service (EMS) players.

Surge in Electronic Exports

India exported electronics goods worth US$ 29.12 Billion in FY 2023-24, up 23.6% compared to FY 2022-23. This growing export demand is expected to drive the countrys electronic manufacturing services sector.

Indian Railway Subsystems and Mobility Market

The Indian Railway subsystems and mobility market is poised for significant growth in the coming years, driven by the governments substantial investments and ambitious plans to modernise and expand the countrys railway infrastructure. One of the key factors contributing to this growth is the expansion and electrification of the railway network. Another crucial factor is the increased budgetary allocation for Indian Railways. The interim Union Budget 2024-25 has allocated Rs 2.55 Lakh Crore to the sector for the fiscal year, a substantial investment that will enable the procurement of railway subsystems and mobility solutions to support the modernisation efforts. This investment will also drive the growth of domestic manufacturing capabilities and create employment opportunities in the industry.

The modernisation of rolling stock is another area that will contribute to the growth of the market. Indian Railways plans to convert approximately 40,000 rail bogies to Vande Bharat standards, and the manufacturing of coaches is expected to increase by 11% in FY 2024-25 as the three coach factories ramp up production.

In 2023, Indian Railways added 5,200 km of new tracks and electrified 7,180 km of railway routes, marking a significant milestone. The government has targeted to add 5,500 km of new tracks in 2024, further expanding the network. The electrification of railway routes will improve efficiency and reduce environmental impact, creating opportunities for the deployment of advanced subsystems and mobility solutions.

Along with railways, the government targets to more than double the total operational metro rail network to 1,700 km over the next 3-4 years. This entails the procurement of an additional 2,500-3,000 metro rail coaches. The growth of the Metro Rail network is also expected to contribute to the markets expansion. As oRs 2023, approximately 874 km of Metro Rail was operational in 20 cities across India, with about 986 km under construction in various cities. The growth of the Metro Rail network will drive the demand for subsystems and mobility solutions tailored for urban transportation.

Growth Drivers

Modernisation of Indian Railways

Indian Railways has prepared a National Rail Plan (NRP) to create a ‘future ready Railway system by 2030. The plan is expected to create a future growth in demand right up to 2050 and increase the modal share of Railways to 45% in freight traffic. The modernisation of Indian railways is expected to drive the growth of the sector.

Increased Railway Passenger Traffic

Indian Railways has planned to increase its passenger capacity up to 1000 Crore by 2030. The increased passenger capacity is expected to catalyse the number of trains, in turn, leading to the growth of the railway infrastructure ecosystem.

Accelerated Urbanisation

According to projections by the United Nations, Indias urban population is set to outpace its rural counterpart by the year 2050. Over the period from 2022 to 2047, Indias urban populace is expected to surge by 328 Million, an increase exceeding the entire population of the United States. Accelerated urbanisation is anticipated to result in a surge towards expanding metro projects nationwide, forming a web of connectivity.

Strengthened Public Private Partnership

The increasing trend of public private partnership in railway projects in India have helped towards faster project delivery, improved reliability of cost and benefit estimates and increased project performance and efficiency. Increased public-private partnership is expected to drive demand for the railway components industry.

Business Overview

About Amber Group

Amber Enterprises India Limited (‘Amber, ‘The Company, or ‘We, unless otherwise stated as Amber Group) has embarked on a transformative path to emerge as a leading, fully backward integrated and diversified B2B solution provider. Being backward integrated over the period, we offer both RAC and non-RAC components. What started once as a need of the hour to cater to the changing market patterns from fixed speed AC to inverter ACs, today the Company has become an expert in electronics, while further exploring opportunities. In the past five years, a stint which started from inverter AC has now diversified into providing solutions for home appliances, consumer electronics, hearables & wearables, telecom, automobile segments, smart energy meters, railway subsystems and defence.

The Company has undergone significant transformations over the years, driven by strategic initiatives and a focus on innovation, geographical expansion, and diversification. The Company undertook initiatives towards diversifying its portfolio and entering into non-AC sectors as a significant growth catalyst, leading to its entry into the comprehensive Electronics Manufacturing Services (EMS) and railway subsystems and defence divisions. Ambers commitment towards innovation and backward integration has been a key factor in its success. This integration along with its strategic acquisitions has enabled Amber to enter new markets and customers through components, further expanding its reach. Today, the Group has a nationwide presence with 30 ultra-modern facilities spread across 9 states delivering a broad spectrum of innovative solutions tailored to meet the dynamic requirements of the industry through its three business divisions, namely:

Business Divisions

Ambers Consumer Durables segment has evolved significantly over the years. Responding to changing industry dynamics, Amber has strategically transitioned from being a core room air conditioner (RAC) player to a diversified B2B solution providing company. As the industry landscape shifted with many customers opting to bring assembly businesses in-house, Amber quickly adapted its strategies, diversifying its components product portfolio. With a strong foundation in manufacturing, Amber is fully aligned with this transformative journey, focussing on localisation and backward integration of consumer durables and their components. Within the RAC space, Ambers portfolio includes RACs such as Window ACs and Split ACs [covering both indoor units (IDUs) and outdoor units (ODUs)], with capacities ranging from 0.75 tons to

2 tons, offering both fixed speed and inverter ACs with various energy ratings. We have also developed cassette air conditioners, tower type and ductables ranging from

3 tons to 12 tons capacity. Additionally, the division also manufactures and supplies critical components used in the manufacturing of ACs.

To meet the increasing demand for non-room AC components, Amber has been expanding its manufacturing capabilities. Leveraging its capabilities and strengths, the Company also expanded into the refrigerator and washing machine segments, which has further contributed to the growth of the Consumer Durables Division. The Company now supplies components for a range of non-room AC applications, including telecom components, smart meter components, automobile components, as well as " components for refrigerators, washing machines, and microwaves. As a result of this strategic diversification, the contribution of room ACs to the Companys revenue has decreased from 72% in FY 2017-18 to just 40% in FY 2023-24. Amber has also established green field facilities in Andhra Pradesh (Sri City), Chennai and Pune, which are currently scaling up production to support this growth.

Amber has strengthened its consumer durables division by entering into a joint venture agreement with Resojet Private Limited, a Telangana based original equipment manufacturer. Under this JV, Amber has acquired 50% stake in Resojet. This partnership will enable Amber to diversify beyond air conditioners into the washing machine and its component segment, solidifying its position within the consumer durables market and boosting its diversification plans. The Company will now manufacture fully automatic top & front load washing machines, leveraging Resojets expertise in the washing machine segment. This development will expand Ambers presence in the consumer durables space by offering a wider range of high quality products and more comprehensive solutions to its customers.

Ambers Electronics Manufacturing Services (EMS) segment boasts a diverse portfolio catering to various electronic devices and applications. With a focus on quality, innovation, and efficiency, Amber is well-positioned to meet the demands of the modern electronics market including PCBAs and PCBs for appliances and consumer electronic products, assembly and manufacturing of Wearable and Hearable products, Telecom equipments, IT products, Audio products and others. With PCB in its fold, the electronic division is further expanding its customer base in sectors like telecom, automobile, smart metering, defence, medical electronics and many more. The Company has added new customers in these segments, which has contributed to the divisions growth.

The division is poised for growth in alignment with the governments vision to promote domestic electronic manufacturing. With a significant portion of the PCBA (Printed Circuit Board Assembly) required for non- smartphone applications currently being imported, the division sees substantial growth potential in meeting the domestic demand and reducing import dependency. With a commitment to excellence and a comprehensive product portfolio, Ambers Electronics (EMS) division is poised to drive innovation and deliver comprehensive solutions for a wide range of industries and applications.

In February 2024, Amber, through its subsidiary ILJIN, acquired a 60% stake in Ascent Circuits for Rs 3.1 Billion. This strategic acquisition aims to enhance Ambers local value addition and facilitate backward integration into passive components of PCB Assemblies. These assemblies find applications across various sectors, including Aerospace & Defence, Medical, Telecom, Consumer Electronics, and Automotive. Moreover, through Ascent Circuits, Amber has entered into a Memorandum of Understanding (MoU) with Korea Circuit, a subsidiary of South Koreas YoungPoong Group. This collaboration seeks to bolster PCB manufacturing capabilities in India by manufacturing Flex, HDI, semiconductor substrates and various types of PCBs, thereby contributing to the advancement of electronics manufacturing in the country.

Railway Subsystems and Defence Division

Ambers railway subsystems and defence division is dedicated to providing innovative and reliable solutions, with a primary focus on the rolling stock segment, including comprehensive railway applications for passenger coaches. Emphasising passenger comfort, safety, and efficiency, Amber offers an extensive portfolio of products designed to meet the rigorous demands of rail transportation systems. Specialising in the manufacturing of air conditioners for railway coaches, Amber also provides air conditioning systems for buses and roof- mounted units for commercial vehicles. To expand its offerings, the division has formed strategic alliances and signed technology transfer agreements with Ultimate Group for doors and gangways.

Amber has further increased its client penetration with all major railway players such as Alstom, Siemens, Titagarh, DRMC, MEDHA and CRRC, given the recent focus on increasing domestic manufacturing of new age trains like Vande Bharat, Tejas and RRTS. The modernisation and expansion plans of the Indian government in the Railways and Metro segments, including new Vande Bharat trains, 1,700 km of metro rail network translating to an additional oRs 2,500-3,000 metro coaches and increasing the conversion oRs 40,000 traditional rail coaches to Vande Bharat standards, are expected drive growth for the division.

Competitive Strengths

Diversified Clientele

Ambers primary clientele comprises top-tier RAC brands, collectively dominating the majority share of the Indian RAC market. Amber has established enduring relationships with these major players, spanning over a decade. The Companys ability to tailor and enhance its product range, be it finished goods or components according to its client specifications, coupled with its provision of comprehensive end-to- end product solutions, has enabled it to expand its customer base. Additionally, the strategic proximity of Ambers facilities to its clients facilities contributes to just-in-time delivery enhancing customer satisfaction and loyalty.

Research and Development

Amber acknowledges the rising demand for superior performance and premium-quality products within the RAC industry. To address this demand, the Company has made substantial investments in enhancing its R&D capabilities. At the forefront of this effort is the establishment of state-of-the-art R&D centres equipped with cutting-edge technologies, supported by a highly skilled team of more than 250 engineers across the group. This team is dedicated to R&D and innovation, aiming to anticipate shifts in customer preferences and evolving regulatory standards.

Embracing both short-term and long-term R&D initiatives, along with enhancements to R&D processes such as virtual validation, computer-aided engineering analyses, rapid prototyping, accelerated testing, and improved problem-solving efficiency, Amber has significantly bolstered its R&D capabilities. These advancements not only cater to customer demands but also ensure that the Company remains ahead of its competitors in the dynamic RAC industry.

Innovation

Through its commitment to innovation, Amber has introduced high-value-added and innovative products, positioning itself as the preferred supplier among customers. This has enabled the Company to solidify its position and capture an increasing share of supply needs within the market.

Geographical Footprint

Ambers robust and expansive presence stands as a pivotal advantage for the Company. With 30 manufacturing facilities and dedicated R&D centres strategically located across India, Amber excels in offering timely and cost-effective delivery solutions to its clientele.

The extensive network of manufacturing locations not only facilitates just-in-time delivery but also optimises facility utilisation. This capability enables the Company to efficiently manage manufacturing operations and address concurrent demand schedules from various customers on a just-in-time basis. Such strategic flexibility enhances Ambers capacity to cater to diverse customer requirements and uphold a competitive edge in the industry.

Backward Integration

Amber commands a substantial market share in the RAC industry, representing 27% (in value terms) of the manufacturing footprint in RAC sector. The Companys capacity to produce a diverse array of components essential for RAC manufacturing confers a significant competitive edge and affords greater command over the supply chain dynamics. Leveraging its in-house capabilities across product development, design, tooling, validation, assembly, and testing, Amber consistently delivers high-quality and innovative solutions to its clientele.

The strategic backward integration of the majority of its operations and in-house processes further amplifies the efficiency and efficacy of Ambers quality control measures. This integrated approach not only streamlines operations but also reinforces the Companys commitment to maintaining the highest standards throughout its manufacturing processes.

Opportunities

In recent years, there has been a notable shift in how Indian consumers perceive air conditioners (ACs). Once considered a luxury, ACs are now widely regarded as essential household appliances. Several factors contribute to this change, including the increasing affordability of AC units, rising temperatures, and a burgeoning middle class with higher disposable incomes.

Moreover, the replacement cycle for ACs has significantly shortened, with consumers opting to upgrade to newer and more energy- efficient models more frequently. This trend is propelled by a desire for enhanced energy efficiency, improved comfort, and a willingness to invest in products that promise long-term savings on electricity bills.

The heating, ventilation and air-conditioning (HVAC) sector is poised for an unprecedented growth due to increased demand in the coming years on the back of the governments focus on infrastructure investment. With the substantial government investment of US$ 1.45 Trillion in infrastructure projects over the next five years, the country stands on the brink of an era marked by unprecedented advancement.

With government of India strengthening the transmission and distribution infrastructure has expanded the reach of electricity supplies through schemes like SAUBHAGYA, Gram Jyoti Yojana in rural areas which has helped last mile connectivity of electricity to every household in the country, enabling the reach of RACs in tier III and IV cities and rural areas.

The government aims to triple the electronic production from US$ 100 Billion to US$ 300 Billion, presenting a myriad of opportunities for localisation of key electronic components viz. PCBA, PCB, semiconductors by substituting imports and placing India as a hub for global supply. Various schemes such as MSIPS, SPECS, PLI, DLI are acting as an enabler to achieve this objective.

Indian Railways aims for modernisation and development, fuelled by its commitment to produce 4500 new Vande Bharat trains. The construction of the Namo Bharat project connecting Ghaziabad, Meerut and Delhis Indira Gandhi airport will be executed in two phases. 22 stations will be built in the first phase, with an additional 13 stations planned for the second phase. These initiatives catalyse the countrys aspiration to become a global leader in railway transportation, positively impacting the sector. India is poised to have the worlds second- largest urban metro system by 2028. With the introduction of new smart cities and expansion of existing metro network, India is expected to possess 1,700 km of metro lines in 25 cities by 2025, providing opportunities for indigenisation of railway subsystem components.

India achieved record-breaking defence exports, reaching Rs 21,083 Crore in FY 2023-24, a growth oRs 32.5% from FY 2022-23. Indias self-reliance towards manufacturing defence equipment is expected to deliver positive growth in the sector. The new off set guidelines introduced by the Ministry of Defence will help in localisation as

PLI Scheme

The PLI scheme, backed by a capital outlay commitment of Rs 4,806 Crore from both domestic and global RAC companies, is poised to diminish imports and bolster industry margins via backward integration. Aimed at fortifying large- scale electronics manufacturing, the production- linked incentive scheme is geared towards revitalising domestic production and attracting significant investments across the electronics value chain, spanning mobile phones, white goods, electronic components and ATMP units.

Threats & Risks

Volatility in Raw Material and Commodity Cost

The volatility in raw material and commodity prices presents an additional risk to a companys growth trajectory. An upswing in commodity costs inevitably leads to higher expenses in manufacturing the end product, potentially affecting consumer demand. Furthermore, currency depreciation remains a significant concern, amplifying the challenges faced by businesses.

Adverse Geo-Political Landscape

A multitude of cross-border conflicts have the potential to disrupt the trade ecosystem, posing risks to businesses and impacting the smooth operation of companies like ours. These conflicts can lead to disruptions in the supply chain, creating challenges for maintaining seamless operations.

Competitive Scenario

The existence of both established and emerging competitors vying for a finite customer base within a localised geographical region presents a regional challenge to the Companys business operations.

Shift in government spending on infra projects

The change in spending patterns on infrastructure projects can delay the implementation of new projects for the modernisation of railways and metros.

Unfavorable Weather Conditions

The unpredictable nature of weather patterns, including sudden heatwaves, unanticipated temperature fluctuations or irregular occurrences of hot and cold spells can create unforeseen shifts in cooling requirements. This volatility poses a challenge for air conditioner companies in accurately predicting and fulfilling consumer demand, potentially leading to inventory imbalances or shortages of products.

Financial Overview

On a consolidated basis, the total revenue stood at Rs 6,72,926.89 Lakh in FY 2023-24 as compared to Rs 6,92,709.51 Lakh in FY 2022-23. Further, the Company achieved an Operating EBIDTA of Rs 51,908 Lakh in FY 2023-24, compared to Rs 47,502 Lakh in FY 2022-23. PAT stood at Rs 13,946.69 Lakh in FY 2023-24 compared to Rs 16,377.56 Lakh for FY 2022-23.

Particulars	FY 2023-24	FY 2022-23
Debtors Turnover Ratio (Revenue from Operations/Average Debtors)	4.04	4.50
Interest Coverage Ratio (EBIT/Finance Cost )	2.15	2.96
Current Ratio (Current assets/Current Liabilities)	1.02	1.11
Debt Equity Ratio [Total debt (Long-Term Borrowings + Short-Term Borrowings)/Shareholders Equity]	0.68	0.69
Operating EBITDA Margin (%) [EBITDA (Before impact of ESOP Expenses and Other Non-Operating income and Expenses)/Revenue from Operations]	7.71	6.86
Net Profit Margin (%) [Net Profit/Revenue from operation]	2.07	2.36

Risk Management

Ambers management acknowledges the pivotal risks that hold the potential to sway investor decisions, given their substantial impact on business dynamics as delineated in the securities report. These risks encompass aspects concerning accounting status, the financial health of consolidated entities, business performance, and cash flows. Our robust risk management system is adept at navigating the intricate landscape of risks encountered in our daily operations. It systematically conducts analyses of economic and social fluctuations, and proactively implements tailored preventive measures deemed most fitting for the Company. Detailed information on the Companys risk mitigation measures is provided in page no. 74 of the Annual Report.

Human Resources

At the heart of Ambers ethos lies a commitment to cultivating a safe, healthy, and gratifying workplace environment, fostering camaraderie among its employees. Tailored HR policies are crafted to equip the workforce with knowledge and skills, nurturing their growth within a supportive setting. Recognising employees as the backbone of the organisation, Amber continually strives to nurture a culture of respect and security. Through a culture driven by performance, the Company inspires its employees to strive for excellence, thereby enhancing the brand and effectively tackling business challenges.

We firmly believe that an organisations triumph is intricately tied to the competencies, contributions, and experiences of its employees. As we expand our operations and aspire to establish a future-ready institution, our focus lies on talent acquisition and retention, employee development and well-being, equal opportunities, and fostering harmonious relationships. Our aim is to offer our employees not just jobs but fulfilling careers, fostering an atmosphere characterised by trust, confidence, and transparency. Our HR procedures are guided by clearly defined competencies and core company values. Amber Groups total permanent employees stood at 1990 as on 31 March, 2024.

Internal Control System and its Adequacy

The Company has established an internal control system tailored to its business scale and industry standards.

The system primarily aims to safeguard and preserve the Companys assets. To achieve this objective, the Audit Committee has granted external auditors a broad mandate to conduct internal audits across all branches and plants. These audits evaluate the adequacy of established procedures, systems, and internal controls.

The Audit Committee regularly reviews and discusses the findings and action plans proposed by internal auditors. Additionally, the Committee oversees the reliability of financial reporting, risk management systems, and internal controls. Furthermore, the internal audit team conducts impartial tests to assess the operational effectiveness of internal controls. Following a comprehensive evaluation, the Board of Directors affirms that, as oRs 31 March, 2024, the Company has effectively implemented a robust Internal Financial Control system.

Cautionary Statement

The Statement in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include demand supply conditions, changes in Government and international regulations, tax regimes, economic developments within and outside India and other factors such as litigation and labour relations.