CIL Nova Petrochemicals Ltd Management Discussions

(Management Discussion and Analysis is part of Directors Report for the Year Ended 31^st March, 2025)

Indian economy will achieve a growth rate at or above 7% for Financial Year 2023-24 and some predict it will achieve another year of 7% real growth in financial year 2024-25 as well. If the prognosis for FY 24-25 turnout to be right, that will mark the fourth year post pandemic that the Indian economy will have grown at or over 7%. That would be an impressive achievement, testifying to the resilience and potential of the Indian Economy. It argues well for the future.

Despite global volatility, the India Economy grew by 7% in 2023-24. The Governments COVID Management and the vaccination record have been instrumental in the quick recovery staged by the economy. Similarly, the deft management of the crude oil supply at reasonable prices in the last two years is noteworthy. Humans are not capable of appreciating the unseen mistakes not made and the risk avoided, but the counterfactuals are all around us. They cannot be missed. As the government resolves longstanding problems such as deficient infrastructure and financial exclusion, aspirations rise, and expectations shift higher. That is actually a tribute to the policies and performances of the government Indias digital infrastructure has strengthened in the last few years and the widespread adoption of real –time digital payments is estimated to have unlocked for the growth of GDP.

The total revenue from continued operations during the year under review was Rs.7.89 lac as against Rs.39.69 Lacs in the previous year. Profit/Loss after tax stood at Rs. (340.45) lacs as against previous year profit/loss Rs.(146.96) lacs. The total revenue from discontinued operations during the year under review was Rs.1606.12 lacs as against Rs.10537.91 lacs in the previous year. Profit/Loss after tax stood at Rs.405.81 lacks as against previous year profit/loss Rs. (442.99) lacs. The Management of the Company is taking efforts for the progress of the company. The performance of the company is gradually improving with transient time. The improvement is evident from the financial statement of the Company.

The Company is setting up plant for manufacturing of Ethanol. Ethanol Market size was valued at USD 85.90 Billion in 2021. The ethanol market industry is projected to grow from USD 90.10 Billion in 2022 to USD 125.94 billion by 2030. Exhibiting a compound annual growth rate (CAGR) OF 4.90% During the forecast period (2022-2030). The global ethanol market has experienced substantial growth in recent years, driven by increasing environmental concerns. The need for energy diversification and government initiatives promoting biofuels.

Ethanol, a renewable and clean burning fuel derived from various feed stocks, has emerged as a viable alternative to conventional fossil fuels. This article provides an overview of the ethanol market, its key drivers, challenges and future prospectus. The ethanol market has witnessed significant expansion due to multiple applications and environmental benefits. Ethanol is primarily used as biofuel, blended with gasoline to reduce greenhouse gas emissions and enhance fuel efficiently. It is also used in various industrial sectors, including pharmaceuticals, chemicals and personal care. The markets growth is further propelled by favourable government policies, increasing investments in biofuel production facilities and rising consumer demand for sustainable and renewable energy sources.

Several factors contribute to the growth of the ethanol market. Firstly, the increasing concerns over climate change and the need to reduce carbon emissions have prompted governments worldwide to implement regulations and mandates promoting the use of biofuels. Secondly, ethanol orders a viable solution to energy diversification, reducing dependence on fossil fuels and enhancing energy security. Additionally, advancements in ethanol production technologies and the development of second-generation bio fuel have significantly improved the efficiency and sustainability of ethanol production, making it a competitive alternative to traditional fuels.

While the ethanol market presents promising opportunities, it also faces certain challenges. One major concern is the competition for feed stocks, primarily corn and sugar cane, which raises food vs. fuel debates. Striking a balance between biofuel production and food security remains a key challenge for policymakers. Moreover, infrastructure limitations and distribution challenges hinder the widespread adoption of ethanol, particularly in regions with inadequate storage and transportation facilities. Lastly market volatility fluctuating crude oil prices and geopolitical factors can impact the profitability and stability of the ethanol market.

The global ethanol market size accounted for USD109.11 billion in 2024 and is expected to reach around USD 182.88 billion by 2034, expanding at CAGR OF 5.3% from 2024 to 2034. Growing consumption of grain-based segment captured more than 69% of revenue share in 2023 and expected more than 75% in 2025.

The Company has set up internal control systems for regular tracking and reporting for that the company appointed an independent firm of chartered accountant. With such powers and responsibilities that are required to ensure the adequacy of the internal control system. These systems also monitor compliance to various rules and regulations and adherence to policy requirements and submit their report to Audit Committee and Board of Directors of the Company on quarterly and yearly basis.

Your company firmly believes that employees are the most valuable assets and key players of business success and sustained growth. Various employees benefits, recreational and team building efforts are made to enhance employee skills, motivation as also to foster team spirit. Industrial relation was cordial throughout the year.

Statements in Management Discussion and Analysis Report describing the Companys objectives, estimates and expectations may be "Forward looking statements" within the meaning of applicable laws and regulations. Actual results might differ materiality from those either expressed or Limplied.