Cerebra Integrated Technologies Ltd Management Discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENT:

E-waste refers to discarded electronic products (mobiles, laptops, TVs, etc.) containing toxic and precious metals.

India generated 17.78 lakh metric tonnes of e-waste in 2023 24, rising from 7.08 lakh metric tonnes in 2017 18 a 151% increase in six years.

India is one of the top five global e-waste producers, alongside China, USA, Japan, and Germany. Key Initiatives for E-Waste Management: E-Waste (Management) Rules, 2022: Mandates Extended Producer Responsibility (EPR) for manufacturers to ensure safe disposal and recycling.

EPR Certificate System: Producers must buy certificates from authorised recyclers to meet EPR targets.

Digital E-Waste Tracking: Introduction of a centralised portal for traceability of e-waste movement and certification.

Public Awareness Campaigns: Emphasis on educating users and incentivising collection via e-stores, kiosks, and take-back policies.

b) OPPORTUNITIES AND THREATS: OPPORTUNITIES:

New Rules from 1^st April 2023

Single largest growth oriented business segment E-Waste Recycling

Coverage has increased from 30 products to almost 100 and virtually everything that runs on Electric or Electronic circuits has been covered.

Potential global partnerships for setup in India

Work with customers on providing end to end services in both areas

Association with big brands paving way to add other major brands who are not yet customers

THREATS:

Informal Sector Dominance: 90% of e-waste handled by unregistered recyclers, lacking safety standards.

Low Consumer Awareness: Lack of knowledge on safe disposal practices and take-back policies. Weak Enforcement Mechanisms: Regulatory bodies struggle with monitoring informal and cash-based operations.

Urban-Rural Divide: Recycling infrastructure is concentrated in urban centres, leaving tier-2 and rural areas uncovered.

Design Complexity: Modern electronics are hard to disassemble, making safe recycling costly and complex.

c) SEGMENT WISE OR PRODUCT WISE PERFORMANCE

As on 31^st March 2025, the Company focus has been retaining customers and business focus is in Recycling, EPR and Refurbishment. It has in total recycled about 282.55 Metric Tonnes of Waste Electronic and Electrical Equipment s. The internal reporting and performance of the Group is assessed by the Managing Director as E-Waste Recycling& Refurbishment segment.

d) OUTLOOK:

Formal sector gains ground over informal processing (which handles 95% of India s e-waste). Reduces environmental hazards, encourages material recovery (e.g., gold, copper), and improves tax revenue.

Helps meet circular economy goals and Sustainable Development Goals (SDGs)..

e) RISKS AND CONCERNS:

While Opportunities are huge, compliance is a major concern, Laws are becoming more stringent and Companies expectations are in tune with these compliances. Quality resources are hard to find for a business which is dealing with Recycling & Refurbishment.

Your Company s risk management strategy encompasses in-depth identification, assessment and prioritization of risk followed by speedy mobilization of Quality resources to minimize, monitor and control the losses of unfortunate events.

f) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Your Company has an adequate system of internal controls which commensurate with its size to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition. All the transactions are authorized, recorded and reported correctly.

The Company s internal control systems are further supplemented by an extensive programme of internal audit by a firm of Chartered Accountants and periodic review by the Management. The Internal Control system is designed to ensure that all financial and other records are reliable for preparing Financial Statements and for maintaining accountability of assets.

g) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES & INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

Employees continue to be the key for the continued success of anyOrganization. Industrial relations have been generally harmonious at the factory and offices. Sound human resource development policies of the Company ensure that each employee grows as an individual and contributes to the performance and growth of the Company. Regular in-house training programs toemployees at all levels helps to achieve this objective. While getting skilled manpower at some levels in the operations continues to be a challenge, employee turnover remained low during the year. The Company has satisfactory human resource department in place to address Human Resource challenges faced by the employees of the Company.

E-Waste Recycling Business:

In 2023, the Indian formal eWaste recycling market reached an estimated $56.8 million. It will likely register a CAGR of 14.3% between 2023 and 2030, reaching $144.3 million in 2030. eWaste is an increasing concern in India. In 2023, India generated approximately 4.1 Mt of eWaste, representing about 6.5% of the global eWaste generation. The country s volume of generated eWaste is forecast to reach 7.1 Mt in 2030, growing faster than the global average. This challenge poses a pressing need to implement circular economy strategies and engage all stakeholders in the value chain. India is the third-largest generator of eWaste globally.

Enterprise Solutions

This division has been completely stopped and is only serving its existing customers and is addressing warranty periods.

h) Material developments in Human Resources / Industrial Relations front, including number of people employed.

Recruitment:

The division has stopped recruiting at all levels and reduced its workforce.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof, including:

(i) Debtors Turnover