apar industries ltd share price Directors report

Dear Shareholders,

Your Directors take immense pleasure in presenting the 34^th Annual Report of the Company together with the Audited Annual Financial Statements (Standalone and Consolidated) showing the financial position of the Company for the Financial Year ended March 31, 2023.

1. FINANCIAL PERFORMANCE

The financial performance of your Company for the Financial Year ended March 31, 2023 is highlighted below:

( Rs. in crore)

		Standalone		Consolidated
Particulars	FY	FY	% of	FY	FY	% of
	2022-23	2021-22	Change	2022-23	2021-22	Change
Revenue from Operations	13,167.34	8,592.33	53%	14,352.15	9,316.57	54%
Other income	42.84	37.09	16%	37.47	32.49	15%
Profit for the year before finance	1,192.29	537.13	122%	1,264.42	580.34	118%
cost, depreciation and tax
expenses.
Deducting therefrom:
- Depreciation / amortisation	91.94	86.73	6%	104.34	97.84	7%
- Finance Costs	290.76	134.80	116%	305.50	140.62	117%
PROFIT BEFORE TAXATION	809.59	315.60	157%	854.58	341.88	150%
FOR THE YEAR*
Deducting therefrom:
- Tax expenses	206.93	82.00	152%	216.84	85.27	154%
NET PROFIT FOR THE YEAR	602.66	233.60	158%	637.74	256.61	149%
AFTER TAXATION
Adjustment of :
Share in Profit / (Loss) of Associates	-	-	-	(0.02)	0.12	-116%
NET PROFIT AFTER TAXATION	602.66	233.60	158%	637.72	256.73	148%
AND ABOVE ADJUSTMENTS
Add: Profit brought forward from previous year	932.17	758.92	23%	1,049.43	853.06	23%
Amount available for
appropriations:
- General Reserves	(60.00)	(24.00)	150%	(60.00)	(24.00)	150%
- Dividend	(57.40)	(36.36)	58%	(57.40)	(36.36)	58%
Leaving balance of profit carried to	1,417.43	932.17	52%	1,569.75	1,049.43	50%
balance sheet
Earnings per equity share (EPS)	157.48	61.04	158%	166.64	67.09	148%

2. INDIAN ACCOUNTING STANDARDS

The Financial Statements for the year ended on March 31, 2023 have been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015, prescribed under Section 133 of the Companies Act, 2013 (‘the Act) and other recognized accounting practices and policies to the extent applicable.

3. STATE OF COMPANY AFFAIRS

Please refer Para 6 on Management Discussion and Analysis (MDA).

4. DIVIDEND

Pursuant to the Requirements of Regulation 43A of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (‘the Listing Regulations), the Company has formulated its Dividend Distribution Policy, the details of which are available on the Companys website at https:// apar.com/wp-content/uploads/2021/02/4.-Policy-on-Dividend-Distribution.pdf Considering the financial results and the performance of the Company during the year under review, as compared to the previous year, the Board of Directors is pleased to recommend a dividend of Rs. 40 (400 %) per share on 3,82,68,619 Equity Shares of the face value of Rs. 10 each for the Financial Year 2022-23.

This dividend amounting to Rs. 153.07 Crores is payable after declaration by the Shareholders at the ensuing Annual General Meeting (AGM) and you are requested to declare the same.

5. TRANSFER TO RESERVES

The Company proposes to transfer an amount of Rs. 60 Crore to the General reserves. An amount of Rs. 1,569.75 Crore is proposed to be retained in the Consolidated Statement of Profit and Loss for Financial Year 2022-23.

6. MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC OVERVIEW Global Economy & Outlook

Global economic activity is experiencing a broad-based slowdown, with fallouts from inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions with sharp interest rate hikes, Russias invasion of Ukraine, and the lingering effects of the COVID-19 pandemic all weigh heavily on the outlook.

Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic. The main positive surprise in late 2022 came from the United States, with continued labour market resilience outweighing the impact of higher interest rates on private investment. However, the major forces that affected the world 2022 as explained above will continue in 2023 and possibly beyond.

Indian Economy & Outlook

In the back drop of the difficult Global Economic Conditions India is set to be the second-fastest growing economy in the G20 in FY 2022-23, despite decelerating global demand and the tightening of monetary policy to manage inflationary pressures. GDP growth will slow to 5.7% in FY 2023-24, as exports and domestic demand growth moderate. Inflation will crimp private consumption but moderate at the end of the projection period, helping, along with improved global conditions, to boost growth to 6.9% in FY 2024-25, in line with the 20-year average (excluding the COVID-19 recession). After a spike in 2022, the current account deficit will narrow as import price pressures abate.

The Indian economy has proven to be remarkably resilient in the face of the deteriorating global situation due to the strong macroeconomic fundamentals that place it well ahead of other emerging market economies.

The New Year brings hopes for continued momentum in Indias growth story, backed by the sustained strength in domestic demand, with significant addition in intrastructure, including in renewable Power Generation, transmission and through RDSS and other Government sponsored scheme in distributions of Power. According to a recent report by Morgan Stanley, India could become the second-fastest growing economy among the G20 nations in FY 2022-23, after Saudi Arabia. This is expected despite a potential slowdown in global demand, inflationary pressures and continued monetary policy tightening.

INDUSTRY OVERVIEW

APAR Industries is a leading global manufacturer of conductors, cables, speciality oils, lubricants and polymers. Your Company is well diversified across industries and segments. Today, APAR Industries targets:

Industries	APAR products	APAR advantage
Power T&D and Renewable Energy	Conductors, Cables and Transformer oils (T-oils)	APAR Industries has been one of the largest manufacturers of aluminium and alloy conductors in the world The third-largest global manufacturer of transformer oil. Wide range of cable solutions viz., solar, wind, nuclear, mining, defence, navy, railways, housewires in India
Indian Railways Automotive Sector	Copper Conductors, XLPE & Elastomeric Cables & Harnesses Auto Lubes, Automotive Cables	Largest manufacturer of conductors and works on a wide variety of cables 10th largest domestic player in lubricant Established a strong foundation for Automotive Lubricants under a license agreement with ENI Italy to manufacture and market high-end automotive and specialty lubricants
Telecom Industry	Optical Fibre Cables (OFC), Optical Ground Wire (OPGW)	Manufacturer of wide range of power and telecom cables.

 

Industries	APAR products	APAR advantage
Defence Sector	Elastomeric Cables & Speciality Cables	Major supplier of speciality elastomeric cables to the Indian Navy manufacturing establishments and to DRDO
Exports	49% of revenue contribution in FY 2023	Exports in over 140+ countries. The company has a global presence and exports its products to countries in Europe, Africa, the Middle East, Asia, and the Americas. APAR Industries has received several awards and certifications for its export performance, including the Top Exporter Award from the Engineering Export Promotion Council of India.

T&D Industry

Indian power sector is undergoing a significant change that has redefined the industry outlook. The power industrys future in India is bright, and sustained economic growth continues to drive electricity demand in India. The Government of Indias focus on attaining ‘Power for all has accelerated capacity addition in the country.

	Addition in Transmission line	Addition in Transformation
	(ckm)	capacity (MVA)
FY 2014-15	22,101	65,554
FY 2015-16	28,114	62,849
FY 2016-17	26,300	81,816
FY 2017-18	23,119	86,193
FY 2018-19	22,437	72,705
FY 2019-20	11,664	68,230
FY 2020-21	16,750	57,575
FY 2021-22	14,895	78,982
FY 2022-23	14,625	75,902
Total	1,80,005	6,49,806

Total Installed Capacity (As on 31.03.2023) - Source : Central Electricity Authority (CEA)

	Installed generation capacity (sector wise) as on 31.03.2023
Sector	MW	% of Total
Central Sector	1,00,055	24%
State Sector	1,05,726	25.40%
Private Sector	2,10,278	50.50%
Total	4,16,059

Budget Highlight on Power Sector

1. Rs. 35,000 crore (US$ 4.3 billion) outlay for energy security, energy transition and net zero objectives.

2. Battery energy storage systems to be promoted to steer the economy on the sustainable development path.

3. Rs. 20,700 crore (US$ 2.52 billion) outlay provided for renewable energy grid integration and evacuation from Ladakh.

Renewable Energy Industry

Indias installed renewable energy capacity has increased 396% in the last 8.5 years and stands at more than 174.53 Giga Watts (including large Hydro), which is about 42.5% of the countrys total capacity (as of February 2023). India saw the highest year on year growth in renewable energy additions of 9.83% in 2022.

India has set a target to reduce the carbon intensity of the nations economy by less than 45% by the end of the decade, achieve 50 percent cumulative electric power installed by 2030 from renewables and achieve net-zero carbon emissions by 2070. Low-carbon technologies could create a market worth up to $80 billion in India by 2030.

Indian Railways Industry

Indian Railways (IR) is rapidly progressing to accomplish Mission 100% Electrification and become the largest green railway network in the world. 6,542 RKMs has been achieved in IR history during 2022-23. Electrification of 1,973 Route km (2,647 TKM) has been achieved during 2022-23, which is 41% higher as compared to corresponding period of 2021-22. As of February 2023, 85% of the total Broad-Gauge network has been electrified. With this, Indian Railways has completely electrified 6 zonal railways and is rapidly progressing towards its target of 100% electrification and becoming the largest green railway network in the world. The railway sector of India aims to electrify the entire network by 2023 which will lead to annual energy savings of $1.55 Bn.

Indian Railway Outlook

Indian Railway network is growing at a healthy rate. In the next five years, Indian railway market is expected to be the third largest, accounting for 10% of the global market. The government has announced two key initiatives for seeking private investments-running passenger trains by private operators across the railways network and redevelopment of railway stations across the country. According to Indian Railways, these projects have the potential of bringing an investment of over US$ 7.5 billion in the next five years.

The Indian Railway launched the National Rail Plan, Vision 2024, to accelerate implementation of critical projects.

Automotive Industry

The Indian automobile industry is setting out on a journey with hopes for a sustained growth momentum in 2023 and further embracing clean technology amid the lurking speed breakers of rising interest rates and cost increases due to new emission and safety norms, having witnessed a strong comeback from the COVID-led downturn this year.

Telecom Industry

The government has allocated Rs. 1.23 trillion for telecom and postal projects. The total allocation includes Rs. 975.79 billion for the Department of Telecommunications and Rs. 258.14 billion for postal projects.

The Indian telecom market saw 36 per cent value growth in offline retail last year, and 2023 is expected to be stable with value-driven growth for the domestic telecom market compared to 2022. While the global telecom market closed 2022 with a 9.7 per cent decline in revenue compared to the previous year. Telecom Industry Outlook

Indias 5G subscriptions to have 350 million by 2026. Accounting for 27% of all mobile subscriptions.

By 2025, India will need ~22 million skilled workers in 5G-centric technologies such as Internet of Things (IoT), Artificial Intelligence (AI), robotics and cloud computing.

Defence Industry

Capital expenditure in the defence sector is crucial for Indias aim to become self-reliant in defence manufacturing and adopting modern technology. India is positioned as the 3^rd largest military spender in the world, with its defence budget accounting for 2.15% of the countrys total GDP. Over the next 5-7 years, the Government of India plans to spend $ 130 Bn for fleet modernisation across all armed services. The industry gets Rs. 5.94 lakh crore in Budget 2023-24, a jump of 13% over previous year.

Defence Industry Outlook

Ministry of Defence has set a target of achieving a turnover of Rs. 1.75 lakh crore in aerospace and defence manufacturing by 2025, which includes exports of Rs. 35,000 crore. Till April 2023, a total of 606

Industrial Licences have been issued to 369 companies operating in Defence Sector.

Exports

It is estimated that Indias combined exports of merchandise and services will experience a positive growth of 13.84% in the fiscal year 2022-23 (April-March) compared to the previous fiscal year 2021-22 (April-March). Despite the global economic downturn, Indias domestic demand has remained stable. On the other hand, overall imports are expected to grow by 17.38% in the fiscal year 2022-23 (April-March) compared to the previous fiscal year 2021-22 (April-March).

In March 2023, the exports of electronic goods surged by 57.36% to reach USD 2.86 billion, which is a significant increase from USD 1.82 billion in March 2022. For the entire fiscal year 2022-23 (April-March), the exports of electronic goods were reported at USD 23.57 billion, reflecting a growth of 50.52% from the previous fiscal year 2021-22 (April-March) when exports stood at USD 15.66 billion.

OVERALL BUSINESS PERFORMANCE

In Rs. Cr	FY18	FY19	FY20	FY21	FY22	FY23
Revenue	5,819	7,964	7,443	6,410	9,317	14,352
EBITDA	419	483	484	437	581	1,320
PAT	145	136	135	161	257	638
Cash Profit	201	203	222	254	355	742
ROE	13%	12%	11%	13%	16%	32%
D/E	0.17	0.14	0.19	0.17	0.18	0.14

The company has cable, conductor and speciality oils & lubricants which cater to each of the segments above. A unique distinction achieved in FY 2023 is that each of APARs major 3 divisions were individually the highest exporter from India in their segments.

Consolidated revenue in FY 2023 was at H14,352 crores, up

54% YoY, with growth coming from all the divisions on the back of higher volumes and growth in export of cable and conductor business. Export revenue increased 97% YoY, accounting for 49% of FY 2023 revenues. Consolidated EBITDA was at H1,320 crores up 130% YoY. Conductor business recorded all time high EBITDA post forex of H44,114 MT. Cable business recorded strong EBITDA post forex of 10.7%. Oil business recorded EBITDA post forex at 4,781 per KL

The Company posted 148% YoY growth in PAT in FY 2023 on the back of high margins in conventional conductors, higher share of premium conductors, increase in cable business and overall increase in exports.

SEGMENT-WISE PERFORMANCE

Conductors – All Time High EBITDA

Your Company is one of the largest global manufacturers of Conductors. Rs. 433 crore of strategic capex was undertaken over FY 2016-FY 2023 to launch several innovative solutions in the space: The company has successfully embarked on a premiumisation exercise to reinvent it business with the addition of Copper conductors for Railways, Copper Transpose Conductors for transformers, OPGW wires for power & telecommunication, a comprehensive range of high efficiency conductors including turnkey solutions and a range of aluminium alloy rods for special applications. In FY 2023 43% of revenue comes from these premium products. The globalisation initiative has also resulted in 51% of revenue coming outside of the Indian market. Revenue for the conductors segment increased 67% YoY to Rs. 7,013 crore on the back of higher share of premium products and export. Export revenues grown over 2 times as compared to previous year.

In Rs. Cr	FY 2023	FY 2022	Growth
			(%)
Order Book	5,124	3,079	66%
Turnover	7,013	4,200	67%
Segment Profit/ (Loss)	682	163	318%
Volume (MT)	1,60,131	1,07,357	49%

EBITDA per MT after forex adjustment at Rs. 44,114 up

158% YoY:

Your Company witnessed a strong performance with higher margins in most of the product lines. Profitable export opportunities, low cost of logistics, steel and aluminium premium augmented in achieving historic high margins.

Outlook

Your Company has planned capital expenditure to the tune of Rs. 102 crore, majorly towards de-bottlenecking, capacity/capability enhancement, productivity/cost reduction and R&D.

An uptick in the T&D sector, coupled with increased renewable energy projects in the pipeline and infrastructure spends on a global scale to become key demand drivers.

Risks and Concerns: Ongoing geopolitical tensions may pose unprecedented challenges and could pushed up the prices of commodities. Increased competition in the domestic market and high volatility in raw material cost can impact the performance. However, being prudent, your Company uses hedging strategy to mitigate commodity and forex risk. The cyclical nature of the power business has some impact on your Companys performance. Project delays from customers side may have an impact. Sharp increase interest rates can affect the financing pattern of infrastructure projects leading to delays and possible cancellations of announce projects.

Speciality Oils – All time high volumes.

Your Company is the 3^rd largest global manufacturer of transformer oils and the 10^th largest lubricant marketer in India. This puts the Company at an advantage in terms of economies of scale for manufacture and distribution, adding to the premiumisation of the oils business. Your Company invested Rs. 250 crore during FY16-23 on higher-value products:

In Rs. Cr	FY 2023	FY 2022	Growth (%)
Turnover	4,656	3,560	31%
Segment Profit/	225	268	(16%)
(Loss)
Volume (MT)	4,86,582	4,61,589	5%

EBITDA per KL after forex adjustment in FY 2023 was at Rs. 4,781, down 24% YoY from Rs. 6,331. The focus remains on per unit profitability rather than on volumes.

Outlook

High level of global inflation has induced interest rate hikes. Profitability of the segment is sensitive to the rise in the cost of funding.

Higher or increased prices of finished goods due to global inflation and rising cost of borrowing may impact the volumes.

Focus will be on per unit profitability compared to total volumes, along with keeping the cash flows in focus by maintaining the lowest possible level of inventory. Risks and Concerns: Your Company is exposed to the volatility in prices of raw materials, interest rate and foreign exchange rate. Higher prices amidst global inflation and rising rate of interest may impact the business. Your Company uses hedging strategy to mitigate the forex risk. In the event of volatility in oil prices, the prices of long-term buy contracts take time to adjust since formula prices are backward looking. Performance may be impacted by competition in the transformer oils and auto lubricants subsegments. Rapid commoditization at the lower end of the market, particularly in technical grade white oils, might bear an impact on profitability.

Cables segment – Largest domestic player in renewables and No. 1 exporter of cables and wires from India:

The Company is the largest domestic player in renewables with one of the widest ranges of medium-voltage and low-voltage XLPE cables, elastomeric cables, fibre optic cables and speciality cables. Rs. 397 crore has been invested over FY16-23 towards developing new-age solutions: High-voltage power cables using the latest CCV technology.

Product portfolio includes Medium Voltage Covered Conductor (MVCC) for increased safety and uninterrupted power distribution in high population density and forest areas.

Additional import substitution products for the defence sector.

Highest number of UL certificate of compliance from India for sale of cable in the United States.

Additional E-Beam capacity to produce more Anushakti house wires, railway cables and solar cables.

In Rs. Cr	FY 2023	FY 2022	Growth
			(%)
Turnover	3,263	1,994	64%
Segment Profit/	317	80	296%
(Loss)

Exports contribution at 52% as against 29% in FY 2022, total exports tripled compared to last year. Power cable continues to be highly competitive; more focus being put on export opportunities.

Active state presence in retail light duty cable business gone up from 2 in FY 2022 to 13 in FY 2023.

EBITDA margin post forex adjustments up 225% YoY to Rs. 344 crore in FY 2023.

Prepared to capture export markets:

Exports are up 190% YoY to Rs. 1,658 crore from Rs.

572 crore in FY 2022, contributing to the increased revenue of the segment. With major exports done to several countries new opportunities are expected to be opened in FY 2024.

With product approvals in place, appreciated product quality and increased acceptance. Your Company is prepared to exploit the opportunity presented by the negative sentiments towards Chinese products.

Outlook

In FY 2024, the Company will continue its focus on premium products: and continue to focus on exports. In FY 2024, the Company will also continue to increase its volumes in light duty cable business penetrating to newer distributors and new states.

Risks and Concerns: Pricing is influenced by surplus capacity in the power cables market. Due to lack of financial arrangements by key customers in the renewable energy sector and by EPC contractors, collection periods could be prolonged and delivery timelines delayed. Low or no ordering by big telecom firms may have an influence on performance in optical fibre lines. The cyclical nature of their tendering has an impact on the industrys order position. Any fluctuations in fibre or polymer costs may have an influence on performance.

General risks and concerns

Prolonged extension of the geopolitical situation without any resolution may impact performance. Volatile commodity prices, technical developments, currency rate fluctuation and any influence on the broader macro-economic outlook may all have an impact on the Companys success. Any geopolitical or economic upheavals on a local, regional or worldwide scale may have a negative influence on demand or cause input cost volatility, all of which can have a negative impact on performance. Your company is subject to the risk of SOFR rate volatility, which might raise our interest expenses and have an impact on our performance. Due to clients difficult financial situation, the collection period for debtors may increase.

Internal Control Systems (ICS) and Their Adequacy

Your Company has established adequate ICS in respect of all the divisions of the Company. The ICS aims to promote operational efficiencies and achieve savings in cost and overheads in all business operations. System Application and Product (SAP), a world-class business process integration software solution, which was implemented by the Company at all business units, has been operating successfully. The Company has appointed M/s. Deloitte Touche Tohmatsu India LLP as its Internal Auditors. The system-cum-internal audit reports of the Internal Auditors were discussed at the Audit Committee meetings and appropriate corrective steps have been taken. Further, all business segments prepare their annual budgets, which are reviewed along with performance at regular intervals.

Development of human resources

Your Company promotes an open and transparent working environment to enhance teamwork and build business focus. Your Company gives equal importance to development of human resources (HR). It updates its HR policy in line with the changing HR culture in the industry as a whole. In order to foster excellence and reward those employees who perform well, the Company has performance / production-linked incentive schemes. The Company also takes adequate steps for in-house training of employees and maintaining a safe and healthy environment.

Key Financial Ratios with details of significant changes

The Company has identified the following as key financial ratios:

Consolidated ratios	FY 2023	FY 2022	Variance %
EBITDA Margin	9.2%	6.2%	3.0%
PAT Margin	4.4%	2.8%	1.6%
ROE	32.3%	16.5%	15.8%
Debtors Turnover	73	86	18.0%
Inventory Turnover	80	94	17.0%
Current Ratio	1.22	1.22	0.0%
Debt/ Equity Ratio	0.14	0.17	(20.1%)
Interest Coverage	4.1	3.4	21.0%
Ratio
Net Fixed Asset	14.3%	10.0%	4.3%
Turnover Ratio

Cautionary statement:

The statements made in the Management Discussion

& Analysis section, describing the Companys goals, expectations and predictions, among others, do contain some forward-looking views of the management. The actual performance of the Company is dependent on several external factors, many of which are beyond the control of the management, viz. growth of Indian economy, continuation of industrial reforms, fluctuations in value of Rupee in the foreign exchange market, volatility in commodity prices, applicable laws / regulations, tax structure, domestic / international industry scenario, movement in international prices of raw materials and economic developments within the country, among others.

7. DISCLOSURES RELATING TO SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

Your Company has the following subsidiaries and associates as at March 31, 2023:

1. Petroleum Specialities Pte. Ltd. Singapore (PSPL) – Wholly Owned Subsidiary of the Company,

2. Petroleum Specialities FZE, Sharjah (PSF) - Wholly Owned Subsidiary of PSPL,

3. APAR Transmission & Distribution Projects Private Limited (ATDPPL) – Wholly Owned Subsidiary of the Company,

4. APAR Distribution & Logistics Private Limited – Wholly Owned Subsidiary of the Company,

5. Cema Wires & Cables Inc.*, USA., Wholly Owned Subsidiary of the Company,

6. Ampoil Apar Lubricants Private Limited – Associate of the Company with 40% stake along with PPS Motors Private Limited and Others.

7. Clean Max Rudra Private Limited – Associate of the Company with 26% stake.

* Not consolidated as there are no operations till March 31, 2023

The Company has not attached the Balance Sheet, statement of profit & loss and other related documents of its five Subsidiaries and two Associates. As per the provisions of Section 129(3) read with Section 136 of the Companies Act, 2013, a statement containing brief financial details of the Subsidiaries and Associate for the Financial Year ended March 31, 2023 in Form AOC – 1 is included in the annual report and shall form part of this report as "Annexure VIII". The annual accounts of the said Subsidiaries and Associate and other related information will be made available to any member of the Company seeking such information at any point of time and are also available for inspection by any member of the Company at the registered office of the Company.

Further, pursuant to provisions of Section 136 of the Act, the financial statements, including Consolidated Financial Statements of the Company along with relevant documents and separate audited accounts in respect of Subsidiaries and Associate, are available on the website of the Company at www.apar.com.

The Company has incorporated a new Wholly Owned Subsidiary Company, in the form of C- Corporation entity, in the name of CEMA WIRES & CABLES INC. having registered office situated at 251 Little Falls Drive, in the City of Wilmington, County of New Castle, 19808 in the State of Delaware, on April 26, 2022, interalia for carrying out the trading business in Cable & Wires and other products including warehousing / storing activities.

8. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed during the year by the regulators or courts or tribunals impacting the going concern status of the Company and operations of the Company in future.

9. CORPORATE GOVERNANCE

Your Company believes in conducting its affairs in a fair, transparent and professional manner and maintaining the good ethical standards, transparency and accountability in its dealings with all its constituents. As required under the Listing Regulations, a detailed report on Corporate Governance along with the Auditors Certificate thereon forms part of this report as "Annexure – V".

10. BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT (BRSR)

Business Responsibility & Sustainability Report (BRSR) as stipulated under Regulation 34(2)(f) of the Listing Regulations forms a part of this Annual Report as