Atal Realtech Ltd Management Discussions

1. OVERVIEW OF THE GLOBAL AND INDIAN ECONOMY

GLOBAL ECONOMIC OUTLOOK

Global growth is projected at 3.0 percent in 2025 and 3.1 percent in 2026, with the 2025 forecast 0.2 percentage point higher than that in the April 2025 World Economic Outlook (WEO) and 0.1 percent higher for 2026. This reflects stronger than expected front loading in anticipation of higher tariffs lower average effective US tariff rates than announced in April, an improvement in financial conditions, including due to weaker US dollar and fiscal expansion in some major jurisdictions. Global headline inflation is expected to fall to 4.2 percent in 2026 and 3.6 percent in 2026, a path similar to the one projected in April. The overall picture hides notable cross country differences, with forecasts predicting inflation will remain above target in the United States and be more subdued in other large economies.

Elevated uncertainty could start weighing more heavily on activity, also as deadlines for additional tariffs expire without progress on substantial, permanent agreements. Geopolitical tensions could disrupt global supply chains and push commodity prices up. Larger fiscal deficits or increased risk aversion could raise long-term interest rates and tighten global financial conditions. Combined with fragmentation concerns, this could reignite volatility in financial markets. On the upside, global growth could be lifted if trade negotiations lead to a predictable framework and to a decline in tariffs. Policies need to bring confidence, predictability, and sustainability by calming tensions, preserving price and financial stability, restoring fiscal buffers, and implementing much-needed structural reforms.

Global financial conditions have been eased.US equity markets have largely rebounded, erasing losses from the April 2 tariff fallout and reaching new heights. Other global equity markets have also rallied, swayed by tariff-related announcements and releases of macroeconomic data that turned out to be better than expected. Notably, the US dollar has depreciated further, defying expectations that tariffs and larger fiscal deficits would cause the currency to appreciate. Implied paths for policy rates have flattened for advanced economies, while continued dollar weakness has provided some monetary policy space for emerging market and developing economies. Yield curves have steepened in the context of fiscal concerns, although the steepening thus far is not unusual by historical standards despite very high debt and deficit levels in many countries.

With these forces in place, the global economy has continued to hold steady, but the composition of activity points to distortions from tariffs, rather than underlying robustness. Global growth in the first quarter of 2025 was 0.3 percentage point above that predicted in the April WEO. International trade and investment drove activity, while private consumption was more subdued across major jurisdictions. Real GDP decreased in the United States, at an annualized rate of 0.5 percent, marking the first quarterly contraction in three years. Consumer spending rose only by 0.5 percent, but this came after remarkably fast growth of 4.0 percent in the fourth quarter of

2024. Imports and business investment surged especially in information processing equipment. Taken together, these patterns were consistent with aggressive front-loading by US firms and households ahead of expected higher prices induced by tariffs. In the euro area, GDP accelerated to 2.5 percent, driven by investment and net exports, even as private consumption lost steam. Ireland largely led the spurt, with growth shrinking to 1.4 percent when Ireland is excluded.

China?s real GDP growth, at an annualized rate of 6.0 percent, exceeded expectations. This was mainly driven by exports, propped up by a depreciating renminbi closely tracking the dollar and with declining sales to the United States more than offset by strong sales to the rest of the world, and, to a smaller extent, by consumption, supported by fiscal measures. Japan?s economy contracted by an annualized 0.2 percent, as soft private consumption and weak net exports weighed on growth while strong private investment helped cushion the decline. Global trade grew robustly in the first quarter, but high-frequency indicators point to an unwinding of front-loading in the second quarter.

INDIAN ECONOMY

India?s is the World?s fourth largest economy, and is on track to become the third-largest by 2030 with a projected $7.3 trillion GDP. This momentum is powered by decisive governance, visionary reforms, and active global engagement. Notably, growth is accelerating, with real GDP expected to rise by 7.8% in Q1 FY 2025-26, up from 6.5% a year earlier.

The ascent is powered by strong domestic demand and transformative policy reforms, making India a prime destination for global capital. With easing inflation, higher employment, and buoyant consumer sentiment, private consumption is expected to further drive GDP growth in the coming months.

Gross Domestic Product (GDP) reflects the size and health of an economy by capturing the total value of goods and services produced within a country. Real GDP, which measures the economy?s output after removing the effects of inflation, grew by 6.5% in Q1 of 2024 25. In Q1 of FY 2025-

26, real GDP is estimated at 47.89 lakh crore, against 44.42 lakh crore in Q1 of FY 2024-25, depicting an impressive growth of 7.8%.

Inflation is an increase in the average price of goods and services in terms of money and is measured on the basis of two indicators in India, Wholesale Price Index (WPI) and Consumer Price Index (CPI). WPI measures the average change in prices of goods before reaching the consumer and is calculated on the basis of wholesale price of Primary articles, fuel & power and manufactured products. On the other hand, CPI measures change in price of goods that people buy for daily use such as food and beverages, clothing and footwear, housing, fuel and light and others.

INDUSTRY STRUCTURE AND DEVELOPMENTS (INDUSTRY OVERVIEW

INDUSTRY OVERVIEW

It is undeniable fact that infrastructure is key accelerator in Nation?s Growth, and thus, has intense focus from the Government for initiating policies that would ensure the country?s time-bound creation of world-class infrastructure.

With huge ongoing project opportunities, it is the third largest contributor to economic growth.

Various governmental flagship programs like ‘PM Awas Yojna?, ‘PM Gati Shakti?, ‘Make in India? and ‘Kawach? will further drive growth. Due to continuous urbanization, upcoming infrastructure projects and a growing population base, the construction industry in India is booming. The industry employs more than 50 million people and has a large pool of low-cost workers. Owing to these efforts and government?s will to increase public private partnerships with foreign companies, it is expected to attract more foreign investment.

REAL ESTATE

The real estate sector is one of the most globally recognized sectors. It comprises of four sub- sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

By 2040, the real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country?s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

India?s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%.

In FY23, India?s residential property market witnessed with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore (US$ 42 billion), marking a robust 48% year-on-year increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold

Indian real estate developers operating in the country?s major urban centres are poised to achieve a significant feat in 2023, with the completion of approximately 558,000 homes.

India?s real estate sector saw over 1,700 acres of land deals in top eight cities in the first Nine months of FY22. Foreign investments in the commercial real estate sector were at US$ 10.3 billion from 2017-2021. As of February 2022, Developers expected demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.

As per ICRA estimates, Indian firms were expected to raise >Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth US$ 29 billion to date.

The office market in the top eight cities recorded transactions of 22.2 msf from July 2020 to December 2020, whereas new completions were recorded at 17.2 msf in the same period. In terms of share of sectoral occupiers, Information Technology (IT/ITeS) sector dominated with a 41% share in the second half of 2020, followed by BSFI and Manufacturing sectors with 16% each, while Other Services and Co-working sectors recorded 17% and 10%, respectively.

Around 40 million square feet were delivered in India in 2021. It is expected that the country will have a 40% market share in the next 2-3 years. India was expected to deliver 46 million square feet in 2022.

According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025.

In 2020, the manufacturing sector accounted for 24% of office space leasing at 5.7 million square feet. SMEs and electronic component manufacturers leased the most between Pune, Chennai and Delhi NCR, followed by auto sector leasing in Chennai, Ahmedabad and Pune. The 3PL, e- commerce and retail segments accounted for 34%, 26% and 9% of office space leases, respectively. Of the total PE investments in real estate in Q4 FY21, the office segment attracted 71% share, followed by retail at 15% and residential and warehousing with 7% each.

In 2022, office absorption in the top seven cities stood at 38.25 million Sq. ft.

In the first quarter of 2023 (January-March), net office absorption in the top six cities stood at 8.3 million sq. ft.

Fresh real estate launches across India?s top seven cities grabbed a 41% share in the first quarter of 2023 (January-March), marking an increase from the 26% recorded in the same period four years ago. Out of approximately 1.14 lakh units sold across the top seven cities in the first quarter of 2023, over 41% were fresh launches.

In the third quarter of 2021 (between July 2021-September 2021), new housing supply stood at ~65,211 units, increased by 228% YoY across the top eight cities compared with ~19,865 units launched in the third quarter of 2020.

In 2021-22, the commercial space was expected to record increasing investments. For instance, in October 2021, Chintels Group announced to invest Rs. 400 crore (US$ 53.47 million) to build a new commercial project in Gurugram, covering a 9.28 lakh square feet area. The transactions of commercial real estate doubled and reached 1.5 million sq. ft. in Q1 of 2023.

According to the Economic Times Housing Finance Summit, about three houses are built per 1,000 people per year compared with the required construction rate of five houses per 1,000 population. The current shortage of housing in urban areas is estimated to be ~10 million units. An additional

25 million units of affordable housing are required by 2030 to meet the growth in the country?s urban population.

RECENT DEVELOPMENTS

Indian real estate sector has witnessed high growth in the recent times with rise in demand for office as well as residential spaces.

The Private Equity Investments in India?s real estate sector, stood at US$ 4.2 billion in 2023.

India?s real estate sector saw a three-fold increase in foreign institutional inflows, worth US$ 26.6 billion during 2017-2022.

Exports from SEZs reached Rs. 7.96 lakh crore (US$ 113.0 billion) in FY20 and grew ~13.6% from Rs. 7.1 lakh crore (US$ 100.3 billion) in FY19. In July 2021, the Securities and Exchange Board of India lowered the minimum application value for Real Estate Investment Trusts from Rs. 50,000 (US$ 685.28) to Rs. 10,000-15,000 (US$ 137.06 - US$ 205.59) to make the market more accessible to small and retail investors.

Construction is the third-largest sector in terms of FDI inflow. FDI in the sector (including construction development & activities) stood at US$ 58.5 billion from April 2000-September 2023.

Some of the major investments and developments in this sector are as follows:

- The sale of luxury homes in India increased by 130% in the first half of 2023 compared to the corresponding period of the previous year. Between January-June 2023, 6,900 luxury homes costing Rs. 4 crore (US$ 488,011.96) and above were sold, as opposed to 3,000 in 2022.?- In Indias top eight cities, housing prices rose 7% year-over-year due to strong housing demand supported by persistent purchaser demand and steady borrowing rates.?- The Indian real estate sector witnessed strong private equity (PE) investments of US$ 1.92 billion in Q2 of 2023, demonstrating investor confidence in the market. According to the most recent Investment report from Cushman & Wakefield, this was 63% higher than the previous quarter (Q1 of 2023) and 60% higher than the same time last year.?- In July 2023, Delhi-NCR emerged as the third biggest city in the Asia Pacific in having flexible office space stock beating Beijing and Seoul, while Bengaluru retained the top spot, according to real estate consultant CBRE.?- Transactions for office spaces in April-June 2023, which totalled 14.8 million square feet, represented the highest quarterly figure recorded since Q1 2021.?- During the first half of 2023, institutional investments in the office sector increased by 2.5 times year-on-year, reaching US$ 2.7 million.?

- In FY23, Delhi-NCR received 32% of the total private equity (PE) investment in the real estate sector.?- Sales in the luxury residential market scaled by 151% year-over-year (y-o-y) in the quarter from January-March, 2023.?- Housing sales in top seven Indian cities stood at 1.14 lakh units in Q1 of 2023, an increase of over 99,500 units compared to the same period of 2022.?- In Q1 of 2023, Bengaluru, Delhi-NCR and Chennai together accounted for two-thirds of quarterly demand. At 27%, flexible workspace was the biggest contributor to demand.?- As of June 5, 2023, 119.7 lakh houses have been sanctioned and 74.75 houses have been completed and delivered to urban poor under the Pradhan Mantri Awas Yojana-Urban (PMAY- U).?- Between January-July 2022, private equity investment inflows into the real estate sector in India stood at US$ 3.27 billion.?- Home sales across top eight cities in India surged 68% YoY to reach ~308,940 units in 2022, signifying a healthy recovery in the sector.?- Retail real estate segment attracted institutional investments of US$ 492 million in 2022.?- In the third quarter of 2021, the Institutional real estate investment in India increased by 7% YoY. Investment registered in the first Nine months of 2021 stood at US$ 2,977 million, as against US$ 1,534 million in the same period last year.?

GOVERNMENT INITIATIVES

Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies. Below are some of the other major Government initiatives:

- In the Union Budget 2023-24, the Finance Ministry announced a commitment of Rs. 79,000 crore (US$ 9.64 billion) for PM Awas Yojana, which represents a 66% increase compared to the last year.

- In October 2021, the RBI announced to keep benchmark interest rate unchanged at 4%, giving a major boost to the real estate sector in the country. The low home loan interest rates regime was expected to drive the housing demand and increase sales by 35-40% in the festive season in 2021.

- Under Union Budget 2021-22, tax deduction up to Rs. 1.5 lakh (US$ 2069.89) on interest on housing loan, and tax holiday for affordable housing projects have been extended until the end of fiscal 2021-22.

- The Atmanirbhar Bharat 3.0 package announced by Finance Minister Mrs. Nirmala Sitharaman in November 2020 included income tax relief measures for real estate developers and homebuyers for primary purchase/sale of residential units of value (up to Rs. 2 crore (US$ 271,450.60) from November 12, 2020 to June 30, 2021).

- In order to revive around 1,600 stalled housing projects across top cities in the country, the Union Cabinet approved the setting up of Rs. 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF).

- Government created an Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs. 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/financial institutions for micro financing of the HFCs.

- As of December 31, 2022, India had formally approved 425 SEZs, and as of January, 2023, 270 SEZs are operational. Most special economic zones (SEZs) are in the IT/ BPM sector.

OUR COMPANY

Our Company was incorporated in the year 2012 for undertaking various construction activities. We are a construction company providing integrated civil works contracting and engineering services for structural construction and infrastructure sector projects and are a registered contractor with the Government of Maharashtra Public Works Department in Class I-A. Our Company engages in contracting and sub-contracting for various government and private projects which includes construction of commercial structures and industrial structures. Our Company is situated at Nashik and many of our project sites are located in the State of Maharashtra, though we have undertaken projects in other parts of India. Majority of the construction activity being undertaken by us includes civil & structural construction and infrastructure contracts under subcontracting by main contractors, who have been allotted the project by a principal employer. Further, we have undertaken a few projects directly as a Contractor for certain private construction companies and real estate developers.

Our focus area includes:

Civil construction projects, which include structures such as sports complex projects (Indoor and Outdoor Sport Stadiums), multi-purpose hall, commercial structures, industrial structures, Hospitals, Cold Storages, Educational Institution, mass housing projects;

Water Supply and Drainage Projects;

Road and Bridges Projects;

Major and Minor Irrigation Projects

Our Company?s revenue model also includes trading of certain construction materials. Besides undertaking contracted and / or sub-contracted projects, our Company is also engaged in trading activities, wherein we supply construction materials to our various clients as per their specific requirements.

The company got listed on NSE Emerge (SME platform of National Stock Exchange of India) on 15^th October, 2020. Further, the Shares of the company have migrated from NSE Emerge to NSE and BSE Limited on 12^th May, 2023. We have experienced a steady growth in recent years and expect our businesses to continue to grow significantly. Our future growth is subject to risks arising from a rapid increase in order volume, and inability to retain and recruit skilled staff. Although, we plan to continue to expand our scale of operations through organic growth or investments in other entities, we may not grow at a rate comparable to our growth rate in the past, either in terms of income or profit or work quality.

2. OPPORTUNITIES AND THREATS:

OPPORTUNITIES

- Sector Consolidation in Indian Real Estate

The Indian real estate sector, characterized by its fragmentation, has been undergoing consolidation over the past few years. The pandemic has accelerated this process, forcing weaker players to exit the market. This has created barriers to entry for new players, paving the way for established developers to capitalize on the growing demand for housing.

Consolidation Trends:

- Weaker players exiting the market

- Fewer, stronger players emerging in each region - Barriers to entry for new players - Rising housing demand

Opportunities for Existing Developers:

- Increased market share - Improved economies of scale - Enhanced brand recognition

- Better access to funding and resources

As the sector continues to consolidate, existing developers are well-positioned to leverage these opportunities and drive growth.

- Digital Real Estate Sales

The real estate sector has witnessed a paradigm shift in sales dynamics, with digital channels emerging as a key driver of growth. Tech-enabled platforms now facilitate online property purchases, virtual site tours, and digital documentation, making the buying process seamless and convenient.

Digital marketing has become a crucial tool for real estate developers to drive sales and customer engagement. Beyond brand recognition, digital marketing now focuses on establishing personal connections with customers. Tech-enabled tools have enabled online real estate purchases, facilitating healthy sales even during lockdowns. Developers leverage digital collaboration tools for virtual interactions, project showcases, and virtual site tours, targeting NRIs to boost sales. Emerging technologies like virtual reality, augmented reality, and AI-powered chatbots offer personalized services to prospective customers. As the sector evolves, adapting to a tech-savvy future is imperative, with online real estate business expected to continue growing.

THREATS

- Regulatory Risks in the Real Estate Sector

The real estate sector is highly regulated, and unfavorable changes in government policies and the regulatory environment can significantly impact the sectors performance. Key regulatory challenges include:

- Procedural delays in land acquisition, land use, project launches, and construction approvals

- Retrospective policy changes affecting ongoing projects and investments

- Regulatory bottlenecks and inefficiencies

- Stringent compliance requirements These regulatory hurdles can lead to:

- Delayed project timelines

- Increased costs

- Reduced profitability

- Decreased investor confidence

- Impact on sector attractiveness

The Board acknowledges that our Companys continued success in real estate depends on navigating regulatory challenges. We must monitor regulatory changes and adapt to the evolving landscape to minimize risks and capitalize on opportunities. By this resolution, the Board emphasizes the importance of regulatory compliance and adaptability for our Companys continued success.

- Real Estate Lending Trends and Outlook

In recent years, a divergent trend has emerged in real estate lending, where:

- Reputed, low-leveraged developers have maintained easy access to liquidity, thanks to lender selectivity

- Weaker developers have struggled with limited capital sources

The real estate sectors performance is closely tied to economic recovery and monetary policies. The Reserve Bank of India (RBI) has maintained an accommodative stance so far. Looking ahead, we anticipate:

- Monetary policy to remain tight in the short term

- Gradual easing of monetary policy as the RBI balances supporting economic recovery with managing inflation

This nuanced approach will likely influence real estate sector dynamics, impacting developer liquidity, project financing, and overall market sentiment.

3. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

The Company is dealing in only one segment i.e., Construction (provides integrated contracting and sub-contracting services for civil and industrial construction, engineering and complete infrastructure project management). During the year the Company has made profound achievements by successfully delivering significant project for notable organisations available on the website of the company www.atalrealtech.com .

4. OUTLOOK:

Our Focus remains to lead from the front & craft a brand name, by delivering value to our esteemed clients in the construction sector and keep our customer base satisfied across Private bodies, Government or Semi Government or local bodies and to become the most preferred Construction services company with innovation and integrity.

5. RISK AND CONCERNS:

Your company is faced with risk of different types, each of which needs varying approaches for mitigation. It has identified each of the risk and implemented measures to mitigate such risk with the help of competent senior management and outside specialist consultants.

Risk and Concerns are as follows:

- Competition

The Company operates in a competitive industry, where numerous players vie for market share. To mitigate this risk, we have implemented the following strategies: Organized Business Approach, Strength of Reach, Superior Quality of Services, Experienced Management and High-Level Security Standards etc.

- Natural Disasters and Severe Weather Conditions

Our construction business is vulnerable to severe weather conditions and natural disasters, such as: Hurricanes, Floods, Earthquakes, Wildfires and Droughts etc. To Mitigate this risk, we will Monitor weather forecasts and emergency alerts, Implement emergency response plans and protocols and Develop contingency plans for alternative construction methods and materials etc.

- Contractual Obligations

We enter into various contracts and sub-contracts with customers and primary contractors for our construction projects. These agreements contain specific conditions and requirements, which, if not fulfilled, could lead to:

Delays in project completion

- Inability to complete projects as planned

- Potential disputes and litigation

- Financial penalties and damages

- Damage to our reputation and relationships.

To mitigate this risk, we:

- Carefully review and negotiate contract terms

- Ensure clear understanding of obligations and requirements

- Establish robust project management and monitoring processes

- Maintain open communication with customers and contractors

- Identify and address potential issues promptly

By proactively managing our contractual obligations, we can minimize the risk of delays, disputes, and financial losses, ensuring successful project outcomes and maintaining strong relationships with our customers.

- Regulatory Compliance

We are subject to various regulatory requirements and need to obtain and maintain approvals, licenses, and permits to operate our business. Failure to obtain necessary approvals and licenses or retain and renew them in a timely manner or Comply with relevant rules and regulations, may result in:

- Disruption or cessation of operations

- Financial penalties and fines

- Damage to our reputation and brand

- Legal liabilities and disputes

- Delays or inability to complete projects To mitigate this risk, we:

- Monitor and comply with changing regulations

- Maintain open communication with regulatory authorities

- Ensure timely submission of applications and renewals

- Implement robust compliance processes and procedures

- Regularly review and update our compliance status

By prioritizing regulatory compliance, we can minimize the risk of disruptions, fines, and reputational damage, ensuring uninterrupted operations and maintaining the trust of our customers, partners, and stakeholders

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company?s internal control systems are adequate, operating effectively and commensurate with the size of business. These internal control systems are provided through competent management, implementation of standard policies and processes, maintenance of an appropriate audit programme with an internal control environment, effective risk monitoring and management information systems. Moreover, the Company continuously upgrades these systems in line with the best available practices.

The internal control systems are supplemented by extensive internal audits, regular reviews by the Management and standard policies and guidelines to ensure the reliability of financial and all other records to prepare financial statements and other data. The Company has regular checks and procedures through internal audits conducted by an independent audit firm, periodically. The reports are deliberated and an executive summary of the same along with Action Taken Reports (ATR) and steps taken by the Management to address the issues, are placed before the Audit Committee meeting/ Board meeting for their review. Reports of internal auditors are reviewed by the Audit Committee, and corrective measures, if any, are carried out towards further improvement in systems and procedures in compliance with Internal Control Systems. The Board also recognizes the work of the auditors as an independent check on the information received from the Management on the operations and performance of the Company.

7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During F.Y. 2024-25, Company has earned a total income of Rs. 9,59,191/- Thousand compared to previous year?s Rs. 4,09,560/- Thousand.

Net profit after tax has increased from Rs. 21,446/- Thousand to Rs. 35,430/- Thousand Consequently, EPS increased to 0.33 per share from Rs. 0.29 per share during the year.

Further information on financial performance with respect to operational performance is given in Financials Annexed.

8. FUTURE PROJECTIONS:

Despite near-term challenges in certain construction sectors, medium to long term growth story in India remains intact. The construction industry in India is expected to grow steadily over the next four quarters.

The construction industry market in India works across 250 sub-sectors with linkages across sectors. The growth momentum is expected to continue over the forecast period, recording a CAGR of 9.9% during 2023-2027. The construction output in the country is expected to reach INR 66,954.8 billion by 2027. Both the state and the central government expected to increase their spending on the commercial construction projects, the analyst expects it to keep supporting the industry growth over the next four to eight quarters in the country.

The Company has established a comprehensive system for risk management and internal controls for all its businesses to manage the risks that it is exposed to. The objective of its risk management framework is to ensure that various risks are identified, measured and mitigated and also that policies, procedures and standards are established to address these risks and ensure a systematic response in the case of crystallization of such risks.

9. CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis describing the company?s objectives, projections, estimates, expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied. Important factors that could make difference to the company?s operations include economic conditions in which the company operates, change in government regulations, tax laws, statutes and other incidental factors.