Cochin Minerals & Rutile Ltd Management Discussions

iv) Recovered TiO2^{is used as a cost-effective substitute for TiO} 2

v) CMRL BF Protector is used as hearth-protecting material in the Blast furnaces. vi) CMRL Rutoweld is used as a flux in the Welding Electrode industry.

The primary raw materials of your Company are Ilmenite and Hydrochloric Acid. The rationale for this project was the indigenous availability of both these items when the factory was setup. Since its establishment, the Company has never engaged in mining operations. Since 2010, the Company consistently relied on purchasing Ilmenite predominantly from abroad. While Hydrochloric Acid is indigenously available, Ilmenites availability from domestic sources has significantly declined. Hence the Company has relied on imported sources of Ilmenite to produce Synthetic Rutile. Your Company has made all-out efforts to procure a higher quantity of primary raw material, Ilmenite, from various foreign sources and maintain the quality of our product through process adaptation. The efforts to procure more imported Ilmenite will be pursued in the future.

The operational performance highlights for the year 2024-25 are given below:

The Companys gross income for the financial year ended 31st March 2025 increased to .32,741.02 lakhs against Rs.30,328.90 lakhs in the previous financial year, thereby reg-istering an increase of 7.95%.The profit before tax decreased to . 3,773.97 lakhs against .3,904.38 lakhs in the last financial year.

During the year 2024-25, turnover of the Company grew by 6% to Rs.319.06 crore against Rs.300.44 crore of the previous year. Despite the drop in selling price of the main product, Synthetic Rutile, higher sales volume of the main product, helped to improve the turnover of the Company. The global market is experiencing oversupply of titanium feedstock and intense competition from competitors. The surplus availability and low price set by the competitors led to the decline in the price of synthetic rutile. But there has not been a proportional price reduction in our primary raw material Ilmenite. In view of the incompatibility in the prices of synthetic rutile and main raw material, ilmenite and due to decrease in ferric chloride sale, the Company is taking steps to maintain the optimum level of production and sales.

In the present scenario, Companys operations are subject to certain risk factors, primarily related to the pricing of ilmenite, our critical raw material. As we do not engage in mining, we rely on external sources for ilmenite, which poses a challenge. Reduction in price of

Synthetic Rutile does not reflect in the pricing of ilmenite and hence results in lower margin. Company is also procuring semi finished product,viz., upgraded beneficiated ilmenite, at a very competitive price.

The domestic supply of ilmenite remains uncertain, necessitating the import of a higher quantity of Ilmenite. Despite these challenges, we are striving to maintain optimal production levels. Our directors actively address the ilmenite shortage by exploring international sources to secure a more stable and sufficient supply. This proactive approach aims to mitigate the risks associated with ilmenite procurement and ensure the continuity of our operations.

The volatility of synthetic rutile market still remains. The Titanium Pigment sector has not yet recovered from the period of market depression, which resulted in decline in both demand and pricing of Synthetic Rutile. Revival of Titanium pigment production in China is crucial for boosting demand for titanium feedstock. The titanium metal and sponge segment is performing well where our premium Synthetic Rutie is primarily utilized. However, an oversupply of titanium feedstock globally has led to lower prices which in turn resulted in significant decline in both demand and pricing of Synthetic Rutile.

The major strength of your Company is that its products follow the highest international standards and are well accepted by reputed international buyers. Your Company has been granted ISO 9001:2015 by the prestigious agency Bureau Veritas, accredited by UKAS London and NABCB India. Your Company has also been awarded ISO 45001 : 2018 for safety by the prestigious agency Bureau Veritas, certified by UKAS London and NABCB India. The Company also got certification from N S F International, an organization desig-nated as a Collaborating Center by the World Health Organization (WHO) for our products, Ferric Chloride and Ferrous Chloride with hydrated Titania catalyst and these products conform to NSF/ANSI standard 60 for drinking water treatment.

A skilled and dedicated work force is another strength of your Company.

The Company gives high priority to issues concerning health, safety and the environment. Health- The Company aims to provide all employees with comprehensive health services covering protective, preventive and curative health care. Apart from being covered by the Employee State Insurance Scheme (ESI), the employees are also entitled to medical reim-bursements under the employees medical beneficiary scheme of the company.

Safety - The Company gives the safety of employees the utmost importance. The protection of persons overrides all other considerations. This vision drives the Company continu-ously to look for ways to break new barriers in safety management for the benefit of all. There has not been any significant accident since its inception. Safety awareness pro-grams are regularly conducted for the employees.

Environment - The Company aims to maintain a clean and pollution-free environment. Environment impact assessment and qualitative risk analysis are conducted for all new/major expansion or diversification projects and all necessary safeguard measures are incorpo-rated in to the project. The effluent treatment plants, air emission abatement units, waste treatment/disposal facilities etc., are maintained per statutory standards. The Company complies with all pollution control and environmental protection regulations. The Company also undertakes various ecological protection programs such as tree planting, water con-servation measures, water purification, energy-saving initiatives, etc.

The Company has also bagged an excellence award for 13 years from the Government of Kerala for implementing Pollution Control measures. The Companys by-product, Ferric

Chloride, is widely and successfully used worldwide in water purification and effluent treat-ment. Another by-product, Cemox helps reduce ecological problems by helping to minimize clay mining and as a supplement to the Iron Ore supply.

Your Company maintains formal internal control systems and procedures, which are continuously and strictly enforced. These have been designed to provide reasonable assur-ance about reliable financial information, compliance with applicable statutes, safeguarding assets and ensuring adherence to the Companys corporate policies. These systems and procedures, which are routinely tested and certified by your Companys statutory and inter-nal auditors and reviewed by the audit committee, are found to be adequate and effective.

Your Company values human resources as the most significant asset and maintains har-monious industrial relations. The Company provides adequate employee training and undertakes various employee welfare measures.