Century Enka Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead>

1. OVERALL REVIEW

The year 2024-25 marked a significant operational improvement on back of higher volumes and improved margins. Company posted its highest ever sales volume on back of capacity expansions done in previous years. Lower GDP growth with volatile geo-political developments posted multiple challenges to the entire economy. We effectively navigated these challenges through continued focus on expanding sales by strengthening the customer base, cost optimisation measures and increasing share of Value-Added Products (VAPs). We continue to operate in a highly dynamic and volatile external scenario. The Indian Nylon filament yarn Industry faced significant challenge due to severe surge in Imports. China has built-up significant over capacity in Nylon Filament Yarn and the Industry faces stiff competition from dumping by China in absence of any significant duty protection. Our focus on increasing VAPs helped in reducing impact of Chinese dumping as we continue to engage with the Government to provide level playing field through various measures. Robust Tyre demand in the first half of the year mainly from 2-3 wheeler segments enabled higher sales performance of Nylon Tyre Cord Fabric (NTCF) compared to previous year. Increased imports towards the year end and tariff uncertainties affected domestic demand in second half of the year. We have initiated approvals for Polyster Tyre Cord Fabrics (PTCF) which should convert into commercial sales in FY26.

2. INDUSTRY STRUCTURE, DEVELOPMENT, THREATS, OPPORTUNITIES & OUTLOOK

Industry Status

The Company manufactures Tyre Cord Fabric and Nylon Filament Yarn (NFY) in the synthetic yarn segment of the textile industry.

Tyre Cord Fabric

Nylon Tyre Cord Fabric (NTCF) is used as reinforcement material in Bias/Cross ply tyres, which are primarily used in trucks, two-three wheelers, Agricultural and off-the-road (OTR) vehicles used for mining, forestry, heavy earth moving etc. Polyster Tyre Cord Fabric (PTCF) is mainly used in Passenger car radial tyres for better fuel efficiency and comfort.

Domestic demand for Cars and Trucks is expected to grow at healthy pace and pave way for better capacity utilisation. Volatile geopolitical situations may dampen export potential of Tyres especially for Bias Tyres. Original Equipment Manufactures (OEMs) are making great efforts to cross the borders and push the sales in Southeast Asia especially for 2-3-wheelers and Tractors. This augurs well for Bias Tyres production going forward. Radialisation in Medium and Heavy Commercial Vehicles

(MHCV) in India has reached a plateau and should remain same for next 2-3 years providing a window of opportunity for bias tyre manufacturers. Farm Tyres segment is anticipated to witness growth supported by favorable monsoon predictions and continued support on Minimum Support Price (MSP) by Government of India. Similarly, demand for Off the Road (OTR) tyres is expected to grow in overseas market subject to cooling of geopolitical tensions. Owing to growth in Car segment, PTCF demand is also robust and expected to continue further. OEMs have many opportunities in domestic and overseas market for car sales, and this is pushing tyre industry demands higher. Many tyre companies are expanding their capacities to cater to these market expectations. Our entry into PTCF enables us to participate in this growth and diversify risks associated with supply to Bias tyres only.

Nylon Filament Yarn (NFY)

The Nylon Filament Yarn industry in India is expected to grow at 6-7% in medium term. The growth is primarily driven by urbanization and evolving consumer lifestyle changes. Nylon yarns are finding increased usage in Athleisure, Sportswear, Workwear, Lingerie, laces, Defense fabric & imports substitution for Technical textiles.

The Indian government’s Make in India campaign and push for Man made Fibre (MMF), is further expected to accelerate growth in the textile industry and the demand for Nylon filament yarns. Amidst Water scarcity issues affecting natural fibers cultivation & stagnation in domestic cotton production, Government of India (GOI) is emphasizing on MMF as a sustainable alternative and in turn, Nylon filament yarns are expected to play critical role in this shift. Lifestyle changes and growing health and fitness consciousness is aiding Athleisure and Sportswear growth. Nylon filament yarn is commonly used in the production of high-performance fabrics used in these applications. We expect Micro and Fine deniers and specifically Draw textured nylon yarn will be the fastest growing segment in the Nylon 6 Filament Yarn market. These yarns possess the properties of both natural and synthetic fiber like comfort, softness, high moisture, durability and high retention. Overall, the Indian nylon filament yarn industry is expected to experience moderate growth in the coming years. Nylon filament yarn also faces competition in premium Saree segments from other synthetic fibers, like Viscose Filament Yarns with increased availability of cheap imports from China. To mitigate above risks, we are focusing on Application development, Products customization and new value-added Products developments.

Company Performance

In FY25, Margins continued to be impacted due to very low Chinese import prices. China, is the world’s largest Nylon producer, having more than 20 times production compared to India. Challenging macro geopolitical situation led to slow down in their domestic consumption and in turn, proximity to India, lead to increased imports volumes and dumping.

The Company has achieved higher NTCF sales backed up by buoyant demand in first half of FY 25. Second half of the year witnessed market consolidation amid volatile geopolitical conditions which led to uncertainties and reduced sale of Tyre cord fabric and Industrial yarns. Overall margins were also impacted by volatile raw material scenario.

Despite above challenges, the Company delivered robust financial performance with Earnings before interest, depreciation, and tax (EBIDTA) up by 31% to Rs. 152 crs. in FY 25 against Rs. 116 crs in FY24

Company Outlook

Predictions of above normal monsoon and easing geo-political situation augur well for stable performance in the coming year. Company’s strong focus on costs, product optimization and realizing benefits from past investments would continue in FY 26 as well. The company intends to strengthen its position in supply of Premium Draw Textured Yarns (DTY) for Athleisure and Sportswear, Mother/ Mono yarns for Ethnic wear, Sustainable Recycled and dope dyed yarns for Functional & Technical Textiles. Reduced Raw Material prices due to softening of crude oil, better availability of Natural rubber is likely to boost Tyre production in times to come. Tyre Industry’s focus will primarily be on Passenger car radial and Truck/ Bus Radials. The Company is looking forward to the successful commercialization of PTCF capacities, which will further enhance its presence in the reinforcement market.

Looking ahead to FY26, overall market conditions are anticipated to remain moderate, with margins continuing to remain under pressure due to lower cost imports from China. Furthermore, tariff action from US is creating vulnerability in the global market. Our focus on controllable variables and proactive approach would support us in 25-26, as we remain cautiously optimistic about business performance.

3. SAFETY, HEALTH, ENVIRONMENT & SUSTAINABILITY

The Company strongly believes that "Life is precious, and we must safeguard it." Guided by this principle, we are deeply committed to minimizing the safety risks associated with our operations. This commitment extends to our employees, visitors, customers, vendors, and communities residing near our facilities, as well as to our plants and equipment.

We have embedded safety into the core of our organizational culture through a structured and proactive approach, underpinned by active leadership involvement. Safety is recognized as a top priority across all levels of the organization, involving employees, contractors, service providers, suppliers, and local communities alike.

Our Pune and Bharuch facilities operate under a certified Safety Management System in accordance with ISO 45001:2018 standards. Notably, our Bharuch site has received prestigious recognition, earning two Gold Trophies for Safety Excellence and Digitization in Safety from the Quality Circle Forum of India (Surat Chapter) on 4th January 2025, and an additional two Gold Trophies on 31^st August 2024.

Key Safety Initiatives Undertaken During the Year:

Promoted the reporting of near-miss incidents, unsafe conditions, unsafe actions, and safety observations. Conducted awareness programs such as workshops, bulletin circulations, accident case studies, and safety campaigns including contests and suggestion schemes. Installed cautionary notices and warning signage across facilities.

Implemented machine guarding, fencing, regular safety rounds, and comprehensive safety surveys.

Delivered shop-floor safety training and leadership workshops Carried out Risk Assessments, HAZOP (Hazard and Operability Study), and JSA (Job Safety Analysis).

Enhanced fire prevention measures with robust protection and firefighting systems, along with third-party fire safety audits.

Conducted regular emergency response mock drills and fire drills to test the effectiveness of emergency systems. Celebrated National Safety Week 2024 with specialized training sessions on Electrical Safety, Mechanical Safety, Boiler Safety, LPG Safety, and Behaviour-Based Safety (BBS).

Organized CPR and First Aid training, led by certified medical professionals, for employees.

Extended firefighting and accident prevention training to neighboring small and medium enterprises (SMEs).

Health, Hygiene, and Well-being at the Workplace

The Company is committed for fostering a healthy, safe and supportive work environment for all employees. To support this commitment: Comprehensive medical services are readily available at both plant locations.

Periodic preventive health check-ups are conducted across the workforce to ensure early detection and management of health concerns. Both at Pune and Bharuch Unit, half yearly medical check-up is done for the employees who are engaged in hazardous processes.

Employees are equipped with appropriate Personal Protective Equipment (PPE).

The Company emphasizes maintaining high standards of cleanliness, personal hygiene, and housekeeping. Mechanized systems such as dust extraction units, fume exhaust systems, and noise control devices are employed to maintain air quality and reduce occupational exposure to harmful elements.

To oversee sanitation and hygiene, a dedicated WASH Committee (Water, Sanitation, and Hygiene) has been established. This committee regularly monitors workplace cleanliness, hygiene practices, and the availability of safe drinking water.

Additional inclusive initiatives include:

The installation of a sanitary pad dispenser with an incineration facility in women’s restrooms.

At Bharuch Unit the provision of a specially designed washroom with wheelchair accessibility for elderly individuals and persons with disabilities.

The Company also ensures robust safety governance through external audits of its fire safety systems, electrical systems, Job Safety Analysis (JSA), Hazard Identification and Risk Assessment (HIRA), and Integrated Management System (IMS).

Both Pune and Bharuch locations operate under an ISO 45001:2018 certified in Occupational Health and Safety Management System.

As part of our commitment to promoting emotional wellbeing, we are proud to be associated with MPower – an initiate by Aditya Birla Education Trust (ABET), founded by Mrs. Neerja Birla. Through this collaboration we organise a range of initiatives, which includes activities, webinars and workshops aimed at fostering mental health awareness and understanding.

Mental Health and Well-being – MPOWER Initiative

MPOWER, an initiative by the Aditya Birla Education Trust, strives to be a transformative movement that drives positive change in mental health awareness and support. Our Company actively supports this initiative by fostering awareness, promoting prevention, and providing access to professional mental health services through a holistic, multidisciplinary approach.

In 2025, MPOWER organized the "Mpowering Minds Summit" in Mumbai, anchored on the pillars of Acceptance, Action, and Advocacy. This high-impact summit served as a powerful call to action for addressing youth mental health, bringing together mental health experts, policymakers, changemakers, and individuals with lived experiences to inspire dialogue and actionable solutions.

As part of this commitment, a three-day mental health workshop was conducted at our Pune Unit, totaling approximately 250 manhours. Employees and workers participated enthusiastically, benefiting from sessions that included meditation practices and insights into the understanding of the seven chakras, contributing to their emotional and mental well-being.

Environment and Sustainability

The Company is deeply committed to environmental stewardship and actively works to respect, protect, and restore the natural environment. Both the Pune and Bharuch facilities are certified under the ISO 14001:2015 Environmental Management System, reflecting our structured approach to environmental risk management. This involves identifying potential environmental risks, assessing their impact, mitigating them through timely interventions, and ensuring continuous monitoring and compliance.

During the reporting period, the Company’s consumption of water, fuel, and other resources, as well as the generation and treatment of wastewater, hazardous waste, and gaseous emissions, remained within the regulatory limits prescribed by the State Pollution Control Board (SPCB).

The Company continues to champion sustainable development by embracing responsible usage of natural resources, improving energy efficiency, enhancing water conservation efforts, and reducing dependence on non-renewable energy sources. Key environmental initiatives and achievements during the year include:

Key Highlights of Environmental Initiatives:

1. Life Cycle Assessment (LCA) conducted for NTCF, NFY and De-poly products by M/s. Sphera.

2. Canteen Waste Composter installed; manure generated is utilized in gardening and greenbelt development.

3. Green and horticultural waste converted to compost and used for landscaping purposes.

4. Plantation of approximately 400 native tree species to enhance green cover.

5. Obtained approval for revised disposal methodology of hazardous waste through pre-processing and co-processing.

6. Rainwater harvesting recharge wells installed to enhance groundwater recharge.

7. Renewable energy adoption through the use of biofuel in boilers and thermic fluid heaters for steam and heat generation.

8. Procurement of 10.5 MW wind-solar hybrid power under the Group Captive Scheme.

9. Installation of Waste Heat Recovery System and Vapor Absorption Machine (VAM) for improved resource conservation.

10. Use of high calorific value hazardous waste as alternative fuel by authorized co-processors.

11. Establishment of a Zero Liquid Discharge (ZLD) unit for process wastewater treatment, enabling reuse within operations. Sewage Treatment Plant (STP) effluent is used for greenbelt maintenance.

12. Replacement of Ozone-Depleting Substances (ODS) with non-ODS refrigerants to reduce environmental impact. 13. Celebrated World Environment Day and Ozone Day in collaboration with the Forest Department and State Pollution Control Board officials.

14. Regular third-party monitoring and audits of pollution prevention systems such as stacks, ETP, STP, and ambient air quality.

15. Third-party Water Audit and Hydrogeological Impact Assessment conducted to optimize water management. 16. NTCF products meet the requirements of Annexure XVII and XIV of the European REACH Regulation and ECHA SVHC (Substances of Very High Concern).

17. Nylon textile products are OEKO–TEX S-100 certified and comply with REACH and ECHA SVHC regulations.

18. At Bharuch site, 28 Nos Rainwater recharge wells are installed with recharge capacity of 12960 m3/Recharge well 19. At the Bharuch site, a ZLD plant has been installed for water conservation, along with investment in the 10.5 MW wind-solar hybrid Group Captive Scheme.

4. HUMAN RESOURCE AND INDUSTRIAL RELATIONS

The Human Resource Department (HRD) holds a pivotal role in the Company’s growth journey, as employees are recognized as one of our most valuable assets. The HR function is closely aligned with the business strategy of every department, ensuring synergy between people development and operational excellence. Driven by a proactive and progressive approach, HR continues to focus on enhancing employee engagement, development, and satisfaction—aiming for internal customer delight at its core. The Key HR Initiatives and Achievements are as under:

1. Learning Fest – "Embrace the Future"

For the first time, we launched the Learning Fest, an Aditya Birla Group-wide initiative to promote continuous learning and development. The Century Group was honored with the Innovative Incubator Award for its creative contributions. Highlights included: 7 Captains Leading 7 Futuristic Skills: A strategic leadership-driven focus on future-ready capabilities. Learning Premier League: Based on the theme "Earning with Learning", three key milestones were set to encourage employee learning through a gamified structure.

"Suraksha Sarvapratham" Safety Simulation: A behavioral training module to enhance safety awareness and preparedness.

Learning Carnival: A vibrant conclusion to the fest, celebrating a culture of learning with special recognitions.

Engagement of Gen Z talent and gamification methods were prominently featured.

The initiative resulted in a substantial increase in e-learning hours: from 4.5 hours per employee in FY24 to 38.2 hours in FY25.

78% of users actively participated, adding significant value and fostering a high-energy learning environment.

2. REPRISM and PRIDE – Flagship Recognition Programs

For the first time, the Company introduced two Group-wide initiatives aimed at fostering innovation, excellence, and recognition: REPRISM (Reinforcing Engineering Pride and Recognizing Innovative Seamless Manufacturing): A platform to celebrate manufacturing excellence and spark innovation. Industry-leading white papers were presented by Mr. Rakesh Batra (Pune Unit) and Mr. Biplab Chakrabarty (Bharuch Unit) in the "Challengers Round," highlighting cutting-edge solutions to industry challenges.

PRIDE (Performance Recognition in Delivering Excellence): A prestigious Aditya Birla Group initiative to recognize individuals and teams making impactful contributions.

Mr. Surat Prakash (Pune Unit) was recognized as an Individual Achiever under the Managing Critical Situations category.

Team from Spinning Department, Bharuch Unit—Mr. Sunilkumar Uttam, Mr. Vipul Patel, Mr. Vaidraj Bhaskar, and Mr. Sanjay Yadav—were recognized for their waste reduction project.

Cross-functional team from Pune Unit— Mr. Sunil Patil, Mr. Yogesh Lomte and Mr. Dnyneshwar Mule from Polymerization, Mr. Surat Prakash from Maintenance, Mr. Nilesh Shirsat from Boiler House, Mr. Avinash Shinde from Automation and Mr. Ashwin Achrekar from Power, a cross functional team of Pune Unit were awarded for their project under scope of Productivity, to improve the production by reinforcing operational efficiency.

3. Aditya Birla Group Values Program

This initiative brought together staff and workers to reinforce our shared values and workplace culture. Through collaborative engagement, the program aimed to align daily actions with the Company’s core principles, fostering a unified and thriving organizational environment.

4. AWOO (A World of Opportunity) – "Give Back" Campaign

In support of the "Padhega to Badhega India" mission, 57% of our employees voluntarily participated in the AWOO campaign, empowering the nation through education. We proudly share that six children of our workers were awarded prestigious AWOO scholarships from the AWOO Foundation pursuing Chartered Accountancy, Engineering programs, Medical Science and Forensic Science.

These achievements reflect our unwavering commitment to people development, innovation, and social responsibility—building not only a better workplace, but also a stronger community and future.

5. INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

The Company has implemented a well-structured internal financial control system that is aligned with the size, scale, and complexity of its operations. This system, comprising detailed policies and procedures, is designed to: Ensure compliance with the Company’s policies and regulatory requirements, Safeguard assets against loss or misuse, Promote efficient and effective use of resources, Prevent and detect fraud and irregularities, Maintain accurate and complete accounting records, and Enable the timely preparation of reliable financial statements.

The Audit Committee of the Board plays an active and vigilant role in monitoring the effectiveness of these internal controls. It undertakes periodic reviews to assess their adequacy and performance.

During the year under review, the internal control mechanisms were rigorously tested and found to be effective, with no reportable material weaknesses identified. The Internal Auditor continues to independently assess the adequacy and operational efficiency of the control systems. Key observations and recommendations are presented to the Audit Committee, whose insights and guidance are incorporated to continuously strengthen the Company’s internal control environment.

6. INFORMATION TECHNOLOGY

The Company firmly believes that a robust, agile, and secure Information System is fundamental to achieving sustainable growth in today’s fast-paced, technology-driven business environment. With a clear vision for long-term competitiveness, the Company continues to invest in advanced digital solutions that drive operational excellence, enhance decision-making, and deliver greater value to all stakeholders.

Aligned with its digital-first strategy, the Company has adopted a cloud-first approach, migrating core infrastructure and business applications to the cloud. This shift enables increased scalability, flexibility, and cost efficiency, while ensuring seamless and secure access to systems and data from any location. Cloud integration has significantly accelerated innovation, reduced downtime, and simplified system maintenance.

To advance its digital capabilities, the Company is actively deploying Artificial Intelligence (AI) and Machine Learning (ML) across key business functions. These technologies are particularly impactful in Production and Quality Assurance, where intelligent automation has improved precision, responsiveness, and efficiency.

In fostering a data-driven culture, the Company has developed and rolled out Business Analytics Dashboards across departments. These interactive dashboards provide real-time insights into key performance indicators (KPIs), enabling faster, evidence-based decision-making and promoting transparency, accountability, and continuous improvement.

The Company is also upgrading its Operational Technology (OT) systems to improve machine-to-machine communication, increase uptime, and enhance process control. These enhancements are critical for maintaining product quality, regulatory compliance, and operational reliability, especially in manufacturing-intensive settings.

Recognizing the escalating risks in the digital landscape, the Company places top priority on Information Security and Data Privacy. A comprehensive cybersecurity framework—anchored in People, Processes, and Technology—guides the Company’s protective measures, reinforced by consistent investment in advanced security infrastructure.

Major cybersecurity initiatives include:

Endpoint Detection and Response (EDR) solutions for real-time threat monitoring and mitigation

Cloud-based content filtering to prevent access to malicious or unauthorized web content Identity and access management systems with Single Sign-On (SSO) and policy-based controls A 24/7 Security Operations Center (SOC) for continuous threat detection and incident response Multi-Factor Authentication (MFA) enforced across all mission-critical applications These efforts collectively ensure secure and flexible access for employees, supporting the Company’s transition to a resilient hybrid and remote work environment.

Through strategic investments in cloud computing, AI/ML, analytics, cybersecurity, and OT, the Company is building a future-ready digital infrastructure that fuels innovation, enhances productivity, and safeguards business continuity—laying the foundation for sustainable, technology-led growth.

7. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE I. Highlights

( Lacs)

Particulars	Standalone		Consolidated
	2024-25	2023-24	2024-25	2023-24
Net Revenue from	2,00,169	1,74,415	2,00,169	1,74,415
Operations
Profit before Depreciation,	15,208	11,628	15,208	11,628
Financial Cost,
Exceptional Items and Tax
Depreciation	(5,497)	(5,026)	(5,497)	(5,026)
Finance Cost	(454)	(535)	(454)	(535)
Share of Loss in Associate	-	-	(63)	(314)
(net of tax)
Taxation (Net)	(2,547)	(1,478)	(2,547)	(1,478)
Net Profit after Tax	6,710	4,589	6,647	4,275

a. Net Revenue from Operations

Net revenue for the year was higher by 15% on account of higher volume both for NTCF and NFY, higher realization in NFY and Sale of Polyester Yarn.

b. Profit before Depreciation, Financial Cost, Exceptional Items and Tax (PBIDT)

Higher sales and margin over raw material resulted in 31% higher PBIDT. c. Finance Cost

Lower finance cost is on account of loan repayment.

II. Key Financial

Ratio 2024-25 2023-24 Explanation for change

Debtors Turnover 10.70 8.38 Higher sales and lower Ratio realization period Inventory Turnover 7.45 7.62 Higher sales and Ratio better inventory management Interest Coverage 33.50 21.73 Higher PBIDT and Ratio lower interest cost in current year Operating Profit 4.29% 3.29% Higher margin Margin (On PBIT excl. Other Income) Net Profit Margin 3.35% 2.65% Higher margin Debt Equity Ratio 0.02 0.04 Lower Debt

III. Return on Net Worth

Return on Net Worth 4.72% 3.36% Higher Net Profit

8. CORPORATE SOCIAL RESPONSIBILITY (CSR)

At the Aditya Birla Group, our Corporate Social Responsibility (CSR) initiatives are deeply rooted in our commitment to building sustainable and inclusive communities. We focus on key thrust areas including Vocational Skill Development, Education, Infrastructure Development, Healthcare Services, and Women Empowerment.

We work through long-term, strategic partnerships with grassroots NGOs that bring deep community insights and implementation expertise. Additionally, we collaborate closely with government bodies at the district level to ensure our CSR programs are effective, efficient, and impactful, especially in rural and tribal areas.

In the current financial year, our CSR programs have expanded their reach significantly: Partnered with 68 Anganwadis, 50 schools, and over 40 villages Positively impacted the lives of 83,904 people Focused on the tribal belt of Bharuch district and aspirational district ( Narmada -Gujarat).

1. Vocational Skill Development

Vocational training plays a crucial role in bridging the skills gap within the workforce by providing practical exposure across key sectors. It enhances employability and drives economic development, thereby improving livelihood opportunities within the community.

This initiative is designed to reduce unemployment, empower individuals, and bridge the rural-urban divide by promoting self-sufficiency and encouraging sustainable development. By equipping people with market-relevant skills, we aim to create a more inclusive and resilient workforce, capable of contributing meaningfully to both local and national growth.

Vocational Training – Empowering Youth with Skills for a Better Future

Our vocational training initiative is focused on empowering underprivileged youth by enrolling them in diverse skill development programs. These trainings not only build technical expertise, but also enhance soft skills and value-based education, making participants more confident and job-ready.

Over the past few years, we have introduced a range of vocational courses that have significantly contributed to employment generation among youth. In the current year, we launched a new course – "Computer Operator and Programming Assistant" (COPA) – to provide hands-on technical exposure and align with today’s digital demands.

A key focus of our initiative is women empowerment. By offering free education and training for girls, we are helping them become financially independent and self-reliant. Out of the 135 trainees enrolled this year, 37 were women, reflecting our commitment to inclusive development.

2. Promoting Health and Well-being – Aligned with SDG 3

In alignment with Sustainable Development Goal 3: Good Health and Well-being, and in the spirit of the WHO Constitution, which affirms that "the enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being," our organization is committed to promoting holistic health for all. Preventive healthcare is a critical pillar of this commitment, requiring attention and collaboration across all sectors of society. It plays a vital role in improving the overall health, well-being, and productivity of individuals, families, and communities—particularly among the disadvantaged and marginalized.

To advance this mission, we have implemented a range of health-focused initiatives, including: Regular health camps in underserved areas Community health awareness programs Health education sessions targeting early prevention and hygiene practices These efforts reflect our belief that health is not only a personal right, but also a shared responsibility that strengthens communities and supports sustainable development.

a. Poshanvahini Project

Access to nutritious food is a fundamental human right and lies at the heart of Sustainable Development Goal 2: Zero Hunger - To advance this goal, our company partnered with the Ministry of Women and Child Development’s Integrated Child Development Services (ICDS) in Narmada district. Through this collaboration we: a) Supported 50 Anganwadis across Nandod, Garudeshwar and Dediyapada talukas, reaching 2,639 children.

b) Employed 50 local women as helpers, empowering them with jobs while ensuring each child receives care, early-learning support and nutritious meals. c) Identified and monitored malnourished children; thanks to sustained intervention, the number classified as malnourished fell from 224 at the start of the year to 167 (57 children come under normal category) by year-end.

By reinforcing government initiatives in underserved communities, we are helping India move closer to ending hunger and securing a healthier future for every child.

b. Eye Check-up and Cataract Operation Camp

The company, in partnership with the renowned NGO SEWA Rural, has been actively working to improve eye health in rural communities. As part of this initiative, we organized five eye check-up and cataract surgery camps in the villages of Umalla, Asha, Rajpardi, Velugam of Bharuch district and Junaghata of Narmada district.

Our aim is to offer free medical consultations and treatment to economically disadvantaged villagers while supporting the objectives of the National Rural Health Mission (NRHM). Through this effort, over 20 villages in Bharuch district were positively impacted.

Key outcomes of the initiative include:

1,102 individuals received comprehensive eye check-ups 123 patients successfully underwent cataract surgeries 845 patients were provided with free spectacles for improved vision This program not only restored sight to many but also enhanced the quality of life in underserved communities through accessible and timely eye care.

c. Blood Donation Camp

On 14^th June 2024 in observance of World Blood Donor Day, we organized a blood donation camp in collaboration with the Red Cross Society, Rajpipla – Narmada District.

Blood donation plays a crucial role in sustaining the healthcare system by ensuring a consistent and lifesaving supply of blood for patients in need. This initiative aimed to raise awareness about the importance of blood donation and to encourage active participation from both the community and our employees. As a result of the camp, 50 units of plasma were successfully collected, contributing meaningfully to the region’s healthcare resources and reinforcing our commitment to community well-being.

d. Women’s hygiene (Distribution of sanitary Napkins)

Menstrual hygiene was a key focus area for the company this year. In collaboration with Gram Vikas Trust, Bharuch—an organization dedicated to empowering women under the motto "By the Women, For the Women"—we conducted a series of awareness programs aimed at promoting the use of sanitary pads during the menstrual cycle.

As part of this initiative 64,800 sanitary napkins (sufficient for six months of use) were distributed to 1,800 women across the villages of Tavadi, Shir, Vali, Bamalla, Raisingpura, Umalla, and Vagpura in Bharuch district This program not only addressed a critical health and hygiene issue but also aimed to break taboos, improve menstrual health awareness, and enhance the dignity and well-being of rural women.

e. Support in eradication of T.B.

India bears the highest tuberculosis (TB) burden globally, as highlighted in the Ministry of Information and Technology report. In response, the Ministry of Health and Family Welfare has launched an ambitious National Strategic Plan to eliminate TB by 2025, requiring a multi-sectoral approach—addressing key determinants such as nutritional support, improved living and working conditions, and greater access to diagnostics and treatment. In alignment with the Prime Minister’s vision of "TB Mukt Bharat", the company extended its support by adopting two talukas—Netrang and Jhagadia—in Bharuch District.

Key contributions under this initiative include:

Sponsorship of 2,425 government-prescribed nutrition kits for TB patients 38% of patients cured, while 51% remain under active treatment, reflecting an 89% positive impact rate This initiative not only supports the national mission but also reinforces our commitment to community health and disease eradication through sustained and meaningful intervention.

3. Education Initiative

In support of Sustainable Development Goal (SDG) 4 – Quality Education, our company recognizes that education is a cornerstone of sustainable development. We have been actively investing in various educational initiatives aimed at fostering individual empowerment and driving holistic community upliftment.

By enhancing access to quality learning opportunities, we are not only nurturing future-ready individuals but also contributing to the creation of more informed, resilient, and equitable communities.

a. Shiksha Sathi Project

To address the shortage of teachers in government schools, our company, in collaboration with the Education Department, sponsored 30 volunteer teachers from local communities and placed them in identified schools.

This initiative led to:

A reduction in dropout rates by keeping students engaged and motivated Support for special needs students, promoting their integration into mainstream education The creation of a more inclusive and nurturing learning environment for all children

The program was implemented across 30 primary schools in the Jhagadia, Valia, and Netrang talukas of Bharuch district, positively impacting over 2,100 students. Through this effort, we reinforced our commitment to strengthening grassroots education and building a brighter future for the next generation.

b. Kanya Kelavani and Shala Praveshotsav Program

The company actively participated in the Shala Praveshotsav and Kanya Kelavani—flagship initiatives of the State Government held annually in June to promote school enrollment in Grade 1, encourage girls’ education, and ensure a zero-dropout rate among children.

This year, we collaborated with various primary schools and Anganwadi centers to support these campaigns. As part of our initiative, we sponsored and distributed essential educational materials, including School uniforms, shoes, bags, Water bottles and a wide range of stationery items such as square notebooks, long books, notebooks, compass boxes, compass kits, slates, patti pens, pencil boxes, drawing books, ball pens, and sketch pens. During the financial year, this program covered 17 schools and 18 Anganwadi centers, positively impacting around 1,260 children. Through this effort, we reaffirm our commitment to universal access to education, especially for the girl child, while contributing to the overall goal of inclusive and equitable quality education for all.

c. Providing D.G set up in a school

To support uninterrupted learning, the company provided a diesel generator (DG) set to a school operated by Cenka Samaj Kalyan Sanstha. The installation of the DG set ensured a safe, efficient, and continuous educational environment, allowing daily school operations, safety measures, and academic activities to proceed smoothly during power outages or disruptions. This initiative positively impacted 720 students throughout the year, reinforcing our commitment to creating resilient and reliable learning spaces for every child.

d. Construction of rooms in a school

The company extended financial support for the construction of a classroom in a school located in Kariyapura village. This contribution significantly improved access to education by providing students with a dedicated and improved learning environment, fostering greater engagement and encouraging continued school attendance.

As a result, 40 students directly benefited from this initiative, marking a meaningful step toward strengthening rural education infrastructure and promoting long-term educational development.

e. Child Sexual Abuse Awareness Program for school

As a proactive measure for early intervention and child protection, the company organized 20 awareness programs across various government schools. These sessions engaged 1,500 students, educating them on crucial topics such as preventive measures against child sexual abuse, understanding good touch and bad touch, stopping child marriage, the right to education, and child rights.

To support continued learning, the company also provided learning and reference materials to the students for future reading and guidance, reinforcing the messages shared during the programs and empowering children with knowledge to protect themselves.

4. Rural Infrastructure development

Investing in rural infrastructure under SDG 9: Industry, Innovation, and Infrastructure is a powerful strategy to bridge the gap between urban and rural areas. By enhancing connectivity, modernizing essential services, and fostering innovation, such investments drive long-term economic growth and uplift entire communities. Improved infrastructure not only supports better access to education and healthcare but also transforms mindsets, enabling positive social change and sustainable livelihoods. During this financial year, the company launched multiple CSR projects focused on building the foundation for sustainable development and overall prosperity in rural regions, reinforcing our commitment to inclusive growth and community well-being. a. Toilet/ Urinal construction for public uses

The company extended financial support for construction of toilet and urinal blocks in Asha village, near the Vadiya Talav crossroad. This initiative significantly improved public hygiene and ensured safe, clean, and accessible sanitation facilities—especially benefiting elderly individuals, women, and the wider community. By providing toilets that uphold dignity and privacy, the project helped eliminate barriers to proper sanitation without embarrassment.

This effort not only promoted sustainability but also strengthened social inclusion, positively impacting the lives of approximately 2,500 villagers.

b. Construction of Water Tank for Drinking water in a school

Recognizing a critical need of Drinking water, the company provided financial assistance to construct a 15,000 Litre drinking water tank at a school located in Pratapnagar, District Narmada, Gujarat. This initiative ensured that students have access to clean and safe drinking water, significantly improving their health and well-being.

As a result, this impactful project benefited 450 students, contributing to a healthier and more conducive learning environment.

c. Providing of Hand Pump

The company provided financial assistance to install a hand pump near the Police Check Post to provide access to safe and clean drinking water. This facility serves a diverse group—from villagers and farmers to truck drivers and travelers—ensuring they stay hydrated and maintain hygiene while on the road. By addressing this fundamental need, the company has contributed significantly to the health and well-being of 700 residents in Kariyapura village, the entire community and passersby alike.

d. High Mast lighting Tower

Health, safety, and development in surrounding villages remain top priorities for the company. To enhance public safety, we installed 26 high mast light towers, each equipped with six floodlights, across various identified villages. This initiative significantly improved nighttime visibility, helping to reduce accidents and creating a safer environment—particularly focusing on the safety of women traveling after dark. By illuminating public spaces, the project lowered risks and fostered a greater sense of security for the community.

In total, this effort positively impacted the lives of 25,372 villagers, contributing to safer and more secure villages after sunset.

e. Streetlight at Umalla Village

Our company is deeply committed to community development and enhancing the quality of life in rural areas. As part of this initiative, we installed 12 units of 50W LED lights with clamps and 33 units of 100W floodlights at key locations throughout Umalla village. This effort aimed to address the urgent need for safe and well-lit public spaces, particularly during evening hours when women and children are most vulnerable. By improving visibility and safety, we successfully contributed to a reduction in accidents and created a more secure environment for the entire community. In total, this initiative benefited 3,172 villagers, reinforcing our mission to build safer, more resilient rural communities through targeted infrastructure support.

f. Infrastructure Support of Furniture and Electric Fittings

CEL supported the installation of furniture and electrical fittings at Bamalla, for a community gathering center. This initiative has enhanced the functionality of the space, improving access to essential public services for approximately 700 villagers. Improved infrastructure facilitated seamless delivery of public services. This benefited 700 villagers & strengthened the sense of community and bonding among villagers, as well as Contributed to a more structured and citizen-friendly setup.

g. Rehabilitation in Bharuch District Prison

The Prison Rehabilitation Program was launched at Bharuch District Jail in collaboration with the District Jail authorities, aiming to improve basic amenities and support the mental well-being of inmates through enhanced infrastructure.Under this initiative, the company provided in-kind support, including: 2 Water Coolers,1 RO Plant (1000 liters),12 Plastic Chairs and 12 LED Smart TVs. These facilities contributed to creating a more humane and supportive environment, helping to alleviate mental stress and promote positive engagement among inmates.

This effort benefited 1,500 inmates, reinforcing our commitment to inclusive development and the rehabilitation and dignity of all members of society.

h. Financial Support to Old Age Home

Our company deeply values the lifelong contributions of senior citizens and is committed to their well-being. As part of our ongoing social welfare efforts, we extended financial support to an old age home in Ahmedabad. This initiative aimed to create a sustainable and supportive environment for the elderly by addressing key areas such as: Healthcare services and regular medical check-ups Nutritional support through balanced meals Infrastructure improvements to enhance comfort and safety Through this support, we contributed to improving the quality of life for 25 senior citizens, reaffirming our commitment to dignity, care, and respect for the elderly.

i. Construction of road in a village

The company extended financial support for the construction of a stretch of road in Raisingpura village, aiming to enhance transportation infrastructure and support the overall development of the region. This initiative significantly improved road connectivity, leading to: Reduced travel time and fewer road accidents A safer and more accessible environment for the community Boosted local trade and economic activities Easier access to essential services such as healthcare, education, and markets Improved transportation for agricultural activities, supporting local livelihoods By bridging the gap between rural and urban areas, this initiative promoted social and economic growth and directly benefited 2,400 residents of the village.

j. RCC benches of the villages

The company provided 181 RCC benches across Jhagadia, Valia, and Netrang Talukas, strategically placed in public areas such as bus stations, Panchayat offices, and in front of banks. This initiative aimed to enhance public infrastructure by offering comfortable seating in high-traffic community areas, making them more welcoming, accessible, and functional for both residents and visitors.

By improving the usability of shared spaces, this effort promoted community interaction and convenience, benefiting approximately 28,531 individuals from surrounding interior villages near the Bharuch site.

k. Shed for Villagers Engagement

Villagers’participationplaysavitalroleincommunityengagement. To facilitate smooth functioning and active participation, a shed was constructed at the Umalla to serve as a dedicated space for gatherings and discussions. This resulted into providing shelter and improved infrastructure for 3,172 villagers by offering a more functional and accessible public space.

5. Women Empowerment Initiative

To promote SDG 5 – Gender Equality, the company undertakes a range of impactful initiatives each year with the core objective of enhancing economic opportunities for women. Through these efforts, we focus on empowering women by providing access to education, skill development, and self-employment opportunities. By reducing gender inequality, we aim to help women achieve financial independence and a strong sense of self-identity.

These initiatives not only uplift individual women but also contribute to building more inclusive, equitable, and resilient communities.

a. Beauty Therapist Training for Women empowerment

The company, in collaboration with Sonali Foundation, Ankleshwar, sponsored a Beauty Therapist Training Course at Bhalod Gram Panchayat in Bharuch district. A total of 56 rural women were enrolled and successfully completed the 4-month certified training program, recognized by the government. This initiative aimed to empower women through skill development, equipping them with practical expertise and a government-approved certificate to enhance their employability. To further support their journey toward economic independence, the company also provided a complete business starter kit, enabling them to establish their own small-scale beauty services. This program not only boosted the confidence and financial stability of the 56 women but also contributed to the broader goal of women’s empowerment and sustainable livelihood creation in rural communities.