Ellenbarrie Industrial Gases Ltd Management Discussions

Global Economic Overview

According to the International Monetary Funds (IMF) World Economic Outlook released in January 2026, global GDP growth is projected to moderate to 3.1% in CY 2026 and 3.2% in CY 2027, down from 3.4% in CY 2025. This deceleration largely reflects the escalation of the West Asia conflict, which has renewed supply-chain pressures, elevated energy-price volatility and fostered a risk-off sentiment across global markets. This suggests a period of cautious resilience, where easing inflation and continued investment in technology and digital capabilities are helping sustain activity, even as policy uncertainty and geopolitical disruptions continue to shape the operating environment. Through 2025, the global landscape has been shaped by evolving trade policies, intensifying technology competition, and ongoing supply chain realignments. Measures such as tighter semiconductor export controls and policy initiatives like the CHIPS and Science Act have accelerated the restructuring of global production networks. At the same time, geopolitical tensions in the Middle East, particularly involving

US, Israel and Iran, have heightened risks to key energy routes such as the Strait of Hormuz, contributing to volatility in oil and gas markets. These disruptions have also led to tighter global gas supplies, increasing LNG import costs in India and affecting energy-intensive sectors.

Amid these challenges, structural shifts linked to the global energy transition are creating new growth avenues. Policy support from the European Commission, particularly through the EU Hydrogen Strategy, is accelerating investments in renewable hydrogen and industrial decarbonization, with a target to scale up hydrogen production and deployment across energy-intensive sectors by 2030. This transition is expected to drive increased demand for industrial gases such as hydrogen and oxygen. Overall, while long-term drivers such as technological advancement and sustainability remain intact, geopolitical uncertainties and trade fragmentation are likely to keep global growth on a measured trajectory.

(Sources: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026, https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/global-economics-intelligence, https://energy.ec.europa.eu/topics/eus-energy-system/hydrogen_en, https://www.eiga.eu/uploads/documents/COM015.pdf)

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While the global growth outlook remains broadly stable, downside risks continue to shape the macroeconomic environment. Escalating trade tensions, persistent geopolitical uncertainty, and elevated public debt levels may tighten financial conditions and weigh on economic activity. At the same time, any recalibration of expectations around productivity gains from AI-led investments could trigger market volatility and dampen business and investor sentiment. Growth may also be constrained by structural bottlenecks and the uneven diffusion of technology-driven benefits across regions and sectors. In this context, policymakers are focused on rebuilding fiscal buffers, safeguarding price and financial stability, reducing uncertainty, and advancing structural reforms to enhance resilience and sustain long-term growth.

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Indian Economy Overview

The Indian economy grew by around 7.6% in FY 2026, driven by resilient domestic demand, sustained infrastructure spending, and a steady expansion in manufacturing activity. Continued policy support aimed at strengthening industrial capabilities, enhancing supply-chain resilience, and encouraging private investment has helped maintain momentum across key sectors.

The Union Budget FY 2027 continues to prioritize public capital expenditure, with a focus on infrastructure, logistics, and digital capacity to improve productivity and encourage private investment. It also strengthens manufacturing competitiveness through targeted incentives, regulatory simplification, and support for emerging sectors such as

electronics, semiconductors, and clean energy, while enhancing credit access and growth opportunities for MSMEs. Alongside this, initiatives focused on skilling, employment generation, and export promotion, supported by ongoing PLI schemes and trade partnerships, are expected to sustain investment-led growth and deepen Indias integration into global value chains.

Recent policy measures are expected to further reinforce domestic activity, especially help the MSME sector to overcome the challenges emanating from the Middle East crisis.

(Sources: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2106921,

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2132688,

https://mospi.gov.in)

Monetary conditions remain supportive. The Reserve Bank of Indias calibrated easing, through policy rate adjustments and liquidity measures, has improved credit availability and financing conditions. This has supported capital expenditure by enterprises while also sustaining consumption demand across sectors.

At the same time, India continues to strengthen its integration with global trade networks through agreements such as the India-Australia Economic Cooperation and Trade Agreement (ECTA), along with ongoing negotiations with other key markets.

Continued efforts to improve ease of doing business and attract foreign investment are expected to further support export growth and supply chain participation.

(Sources: https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154573&utm, https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=154573&utm)

Indias growth trajectory remains supported by domestic demand, public investment, and expanding manufacturing activity. Policy focus on infrastructure, industrial competitiveness, and supply chain resilience is expected to sustain this momentum over the medium term. Reforms such as the evolving income tax framework, targeted sectoral incentives, and efforts to deepen financial markets are expected to support both private investment and consumption. At the same time, improving financial conditions and expanding global trade linkages are creating additional avenues for growth and exports. While near-term risks such as geopolitical uncertainties and commodity price volatility remain, Indias demographic profile, reform-oriented policy approach, and continued focus on structural transformation are expected to support stable economic expansion in the years ahead.

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Global Industrial Gases Market

Overview

The global industrial gases market was estimated at approximately USD 115.47 Bn in FY 2026 and is expected to increase to USD 122.01 Bn in FY 2027, reaching around USD 193.72 Bn by FY 2035, reflecting a CAGR of about 5.95%. Growth remained supported by sustained industrial activity, alongside increasing demand for high-purity and application-specific gases.

Globally, the market is seeing a gradual shift from volume-led growth toward higher-value applications. While traditional industries continue to account for a significant share of demand, greater emphasis is being placed on specialty gases and precision applications, particularly in electronics, semiconductors, and advanced manufacturing.

This shift is also reflected in the increasing requirement for

high-purity gases such as nitrogen, hydrogen, and specialty gas mixtures, used in processes such as etching, fabrication, and controlled environments. At the same time, industrial gases continue to play an essential role in core applications, including metal processing, fabrication, and process optimization.

Another area of focus is the growing role of hydrogen, supported by investments in clean energy and decarbonization initiatives. This is expanding the application base of industrial gases beyond conventional uses, positioning hydrogen as an important component of the evolving energy landscape.

Regionally, Asia-Pacific remained the largest market, accounting for nearly 37% of global demand in 2025, driven by continued industrial expansion.

New Age Uses (Growth Drivers)

(Source: https://www.fortunebusinessinsights.com/industry-reports/industrial-gases-market-101728#:~:text=The%20global%20industrial%20gases%20 market,etching%20and%20circuit%20board%20production.)

Industrial Gases Market Trend by Value (in USD Bn)

E: Estimated; P: Projected

(Source: https://www.fortunebusinessinsights.com/industry-reports/

industrial-gases-market-101728#:~:text=The%20global%20industrial%20

gases%20market,etching%20and%20circuit%20board%20production.)

Segmentation by Product

Hydrogen

Hydrogen accounted for ~20% of the global industrial gases market by value in CY 2024, while its share in India stood at 16.2%. Despite representing only —2.3% of global demand by volume (16 Mn tonnes), hydrogen commands a significantly higher price range of USD 1,000-2,000 per tonne, approximately 4-8 times that of oxygen. In India, demand stood at —0.16 Mn tonnes. Hydrogen is widely used across steel manufacturing, oil & gas refining, and chemical production, particularly in ammonia and methanol.

Nitrogen

Nitrogen held the largest share, accounting for 28.5% of the global market and 23.6% of the Indian market by value in CY 2024. Global demand reached —262.7 Mn tonnes, representing 37.9% of total volume consumption, while India recorded ~4.7 Mn tonnes. Its applications span food & beverage (preservation, packaging, freezing), chemical production, and metals manufacturing, including annealing and sintering. It is also extensively used in petroleum refining for purging, blanketing, and pressure transfer to enhance operational safety and efficiency.

Oxygen

Oxygen accounted for 19.1% of the global industrial gases market by value, with global demand of —71.7 Mn tonnes (USD 20.3 Bn). In India, oxygen demand stood at —2.3 Mn tonnes (USD 0.47 Bn), representing a dominant 35.9% share of the domestic market by value. It plays a critical role in steelmaking processes such as blast furnaces and basic oxygen furnaces. Beyond metallurgy, oxygen is essential in medical applications (respiratory therapy, anesthesia, life support) and is used in the production of chemicals such as ethylene oxide and methanol, as well as in sectors like pharmaceuticals, pulp and paper, oil and gas, & water treatment.

Argon and Argon Mixtures

Argon and its mixtures accounted for —5% of the global market by value in CY 2024, with a market size of approximately USD 5.3 Bn and volume demand of — 10.4 Mn tonnes. In India, argon contributed 10.2% of the market by value. Its primary application lies in metal fabrication, particularly in welding. Additional uses include electronics manufacturing, steel and metal processing, and healthcare.

Carbon Dioxide (CO₂)

Carbon dioxide represented 18.4% of the global market and 11.2%

of the Indian market by value in CY 2024. Global demand

exceeded 268.3 Mn tonnes, valued at USD 19.3 Bn, while

India recorded —4.2 Mn tonnes (USD 0.14 Bn). CO₂ is

widely used across food & beverage, chemicals,

and manufacturing sectors, and serves as a key

feedstock in urea fertilizer production.

Other Gases (Acetylene, Helium & Specialty Gases)

Other gases accounted for 9.1% of the global market and 2.9% of the Indian market by value in CY 2024. Acetylene is widely used in oxy-acetylene welding and cutting, as well as in chemical synthesis. Helium plays a critical role in medical imaging (MRI cooling), aerospace applications (purging rocket systems), and semiconductor manufacturing. Specialty gases, including calibration, carrier, zero, and span gases, are essential for precision measurement, quality control, and analytical processes. These gases are used across industries such as steel, pharmaceuticals, semiconductors, cement, glass, and healthcare, with demand driven by increasing requirements for high-precision industrial and laboratory applications.

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The global industrial gases market is poised for steady growth in the medium term, with emerging economies driving volume expansion while developed markets increasingly focus on high-value specialty gases and advanced applications. Rising investments in hydrogen, clean energy, semiconductor manufacturing, and advanced materials are expected to unlock new demand avenues, favoring companies with strong engineering capabilities, diversified portfolios, and robust distribution networks. Overall, the sector remains well positioned for sustained growth, underpinned by its essential role in modern manufacturing, healthcare, and the ongoing transition toward cleaner and more efficient industrial processes.

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Indian Industrial Gases Market

Overview

The Indian industrial gases market is witnessing strong growth, driven by increasing industrial activity and rising demand across key end-use sectors. The market is estimated to expand at a CAGR of around 7.5% between CY 2024 and CY 2028, with value rising from approximately USD 1.3 Bn in CY 2024 to about USD 1.8 Bn by CY 2028, alongside growth in consumption volumes.

This demand is anchored in sectors such as steel, chemicals, manufacturing, healthcare, food processing, and energy, where industrial gases are used across production and processing applications.

The market is also characterized by a diversified product mix. Oxygen remains the dominant segment, accounting for nearly 36% of the market, reflecting its widespread use across metals, healthcare, and industrial processes. Nitrogen and hydrogen follow, contributing about 24% and 16%, respectively, supported by their use in chemicals, refining, and emerging clean energy applications. Carbon dioxide and argon-based mixtures also account for a meaningful share, catering to food processing, welding, and specialized manufacturing needs. Together, this mix supports demand across both traditional and emerging applications.

Industrial Gases Market by Volume and Value

Key Demand Drivers

Within these end-use sectors, demand for industrial gases is shaped by:

Chemicals:

Strong demand for plastics, fertilizers, and specialty chemicals drives extensive use of industrial gases in processing and synthesis.

~USD 270 Bn

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Market Size as of March 31 2024

Steel:

Growing steel production and increased outsourcing of gas requirements to specialized players, together drive growth for industrial gases.

~USD 133 Bn

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Market Size as of March 31 2024

Healthcare:

Government initiatives to enhance healthcare offerings, particularly in liquid medical oxygen, are accelerating demand for medical-grade gases.

~USD 105 Bn

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2024

Pharmaceuticals:

Rising healthcare expenditure and continued innovation in drug development are driving the need for high-purity gases in manufacturing processes.

-USD 60 Bn

v

Market Size as of March 31 2024

Government Initiatives

In addition to sectoral demand, policy initiatives continue to act as growth drivers for industrial activity and, in turn, the industrial gases market:

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National Manufacturing Mission

Announced in the Union Budget 2025-26, this initiative aims to strengthen Indias manufacturing ecosystem across MSMEs and large industries by improving ease of doing business, enhancing workforce readiness, and promoting technology adoption.

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Expansion of PLI Schemes

Continued expansion and higher allocations for PLI schemes in sectors such as electronics, white goods, automotive, and advanced chemistry cells are boosting domestic manufacturing and investments.

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India Semiconductor Mission 2.0

Launched in 2026, this initiative aims to build a comprehensive semiconductor ecosystem in India, increasing demand for high-purity industrial and specialty gases used in chip fabrication and electronics manufacturing.

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Biopharma and Healthcare Manufacturing Push

Initiatives such as the H 10,000 Cr Biopharma SHAKTI program aim to strengthen domestic biologics manufacturing, boosting demand for high-purity gases used in pharmaceutical and healthcare applications.

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Clean Tech Manufacturing Push

The government is accelerating domestic manufacturing of clean technologies such as solar PV modules, EV batteries, electrolyzers, and grid-scale storage systems, increasing demand for gases like hydrogen, oxygen, and specialty gases.

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Green Hydrogen Ecosystem Development

Increased allocations and policy support, including hydrogen hubs and pilot projects, are accelerating hydrogen adoption across industries.

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Carbon Capture, Utilization and Storage (CCUS) Push

The governments H 20,000 Cr CCUS initiative across chemicals, power, steel, cement, and refineries is expected to drive demand for carbon dioxide capture and reuse, while increasing consumption of oxygen and hydrogen and accelerating adoption of integrated industrial gas solutions.

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Infrastructure and Industrial Corridor Development

Continued investments in industrial corridors, logistics and infrastructure are enabling capacity expansion in steel, chemicals and manufacturing sectors.

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Company Overview

Ellenbarrie Industrial Gases Limited is an accomplished wholly owned Indian industrial gases Company engaged in the manufacturing and supply of industrial and medical gases, with a well-established footprint across East and South India. The Company also undertakes project engineering for gas production and distribution systems and supplies medical equipment for healthcare applications, addressing both gas requirements and related infrastructure across industrial and healthcare environments.

Ellenbarrie at a Glance

Offerings

^1^ At the Core: Sale of Gases

Ellenbarrie manufactures and supplies industrial and medical gases through on-site, bulk, and packaged modes to meet varied customer requirements across sectors.

The Companys industrial gas portfolio, supplied in compressed and liquid forms, caters to a wide range of manufacturing and process applications.

Oxygen

Nitrogen

Argon

Carbon Dioxide

Helium

Acetylene

Hydrogen

Nitrous Oxide

Synthetic Air

Specialty Gases such as Trimix

Customized Welding Mixtures

Dry Ice

Ellenbarrie supplies medical-grade gases for use in hospital and healthcare environments through cylinders and cryogenic tankers to ensure availability for critical applications.

Oxygen

Nitrogen

Nitrous Oxide

Carbon Dioxide

F2 Building Infrastructure:

Project Engineering Services

Leveraging its process engineering expertise, Ellenbarrie offers turnkey solutions across industrial and healthcare gas infrastructure. These offerings are supported by consulting, maintenance, and operational services, ensuring reliability and continuity across installed systems.

? Air Separation Units (ASUs):

Design, engineering, supply, and commissioning of cryogenic and non-cryogenic oxygen and nitrogen plants, including PSA and VPSA systems.

? Gas Mixing Systems:

Systems designed to deliver precise gas blends for specific applications.

? Medical Gas Pipeline Systems:

End-to-end solutions covering design, installation, and maintenance of pipeline systems across critical hospital environments such as ICUs, NICUs, operation theatres, and emergency care units. These systems also include vacuum lines, instrument air supply, and anaesthetic gas scavenging systems.

F3 Beyond Gases: Medical

Equipment Supply

Ellenbarrie offers a portfolio of advanced medical equipment designed for critical healthcare applications, including respiratory care, anesthesia, sterilization, and diagnostics. The Companys range includes products such as sterilizers, spirometers, laryngoscopes, and bronchoscopes, widely used across hospitals and healthcare institutions. To ensure consistent quality and performance, the Company partners with reputed global manufacturers, enabling it to deliver equipment aligned with the evolving needs of modern healthcare.

Business Model

On-site Supply

Industrial gas plants are established at customer premises, with gases supplied through dedicated pipelines under long-term 15-20-year take-or-pay contracts. Cost pass-through provisions support margin stability and long-term revenue visibility.

Bulk Supply

Liquid gases are transported from production facilities to customer storage tanks through cryogenic tankers. This model primarily serves medium- to large-scale customers under 3-7-year supply contracts, ensuring reliable and recurring revenue streams.

Packaged Supply

Industrial gases are distributed in cylinders through an extensive customer network, catering to small and medium-volume requirements. Contracts typically range from 1-3 years, providing a diversified customer base and steady recurring demand.

Financial Performance

The Company reported revenue of H 3,416 Mn in FY 2026, reflecting a healthy 9.31% year-on-year growth, driven by the continued strength of its core Gases business. Revenue from the Gases segment increased by 14.2% to H 3,340 Mn, compared with H 2,925 Mn in the previous year. In contrast, the Project Engineering segment recorded revenue of H 75.4 Mn, down from H 200.3 Mn in FY 2025, as the Company strategically prioritized internal project execution over third-party engineering assignments during the year.

The robust performance of the Gases business was supported by sustained demand from the steel, pharmaceutical and healthcare sectors, alongside incremental volumes from the Kurnool and Kharagpur plants, both of which were commissioned in the previous financial year.

EBITDA grew by 4.2% year-on-year, reflecting resilient operating performance despite a subdued contribution from the Project Engineering segment. The Gases business delivered a strong 19.4% increase in EBITDA, driven by higher sales volumes, particularly of oxygen and argon, as well as improved production efficiencies. The decline in Project Engineering activity, however, moderated the Companys overall profitability growth.

During the year, the Company made significant progress on two strategic expansion projects. Its second production facility at Uluberia, West Bengal, was commissioned in the fourth quarter, while an Air Separation Unit at a customer site in Durgapur, West Bengal, progressed under a lease- cum-operation model. These investments are expected to strengthen production capacity, expand the Companys market presence and enhance profitability over the medium term. Consequently, key return metrics, including Return on Equity (RoE) and Return on Capital Employed (RoCE), are expected to improve as these projects become fully operational and begin contributing to earnings.

Key Financial Ratios

(as of March 31 2026)

Ratio	FY 2025	FY 2026
EBITDA Margin1 (%)	35.8	34.0
PAT Margin2 (%)	23.9	26.6
Return on Equity3 (%)	16.8	10.6
Return on Capital Employed4 (%)	13.7	15.4
Net Debt-Equity5 (times)	0.3	0.03
Gross Fixed Assets Turnover6 (times)	0.6	0.5

Notes:

1. EBITDA Margin (%) = EBITDA/Revenue from Operations

2. PAT Margin (%) = Profit for the Period/Total Income

3. RoE (%) = Profit for the Period/Total Equity

4. RoCE (% ) = EBIT/Capital Employed

? EBIT = Profit Before Tax - Other Income + Finance Cost

? Capital Employed = Total Equity + Borrowings - Cash and Investments

5. Net Debt-Equity Ratio = Net Debt/Total Equity

6. Gross Fixed Assets Turnover Ratio = Revenue from Operations/Gross block of Property, Plant and Equipment

Risk Management

Ellenbarrie follows a disciplined approach to risk management, grounded in early identification, continuous monitoring, and timely mitigation. Given the nature of its operations across industrial and medical gases, the Company remains closely aligned with safety, reliability and regulatory compliance at every stage of the value chain. Risks are assessed across internal, operational, financial and external factors, with mitigation measures integrated into day-to-day operations. This approach enables the Company to respond proactively to potential disruptions while supporting stable operations and long-term growth.

Risk	Type	Description	Mitigation Strategy
Customer Concentration	I	Dependence on key customers may impact revenue stability in the event of financial or operational disruptions at their end.	The Company mitigates this risk through diversification of the customer base and securing long-term contracts across multiple industries and client segments.
Sector Concentration	I	A significant dependence on a limited number of end-user industries may expose the Company to cyclical demand fluctuations and sector-specific downturns.	The Company mitigates this risk by diversifying its presence across multiple industries, expanding its customer portfolio, and strengthening its product and application mix to reduce dependence on any single sector.
Safety	O	Handling gases such as oxygen, hydrogen, and acetylene involves inherent risks, including toxicity, fire, and explosion.	Ellenbarrie addresses this risk through strict adherence to safety standards, regular employee training programs and investments in advanced handling systems.
Manufacturing	O	Operations involving extreme temperatures and pressures may lead to equipment stress or process-related incidents.	Uses safety-certified equipment, process automation and regulatory compliance protocols to ensure safe and reliable manufacturing.
Logistics	O	Transportation of gases through cryogenic tankers and cylinders may involve risks of leakage, rupture, or operational incidents.	These risks are mitigated through specialized transport equipment, driver training, real-time vehicle tracking systems and periodic third-party transport audits.
Power Cost	O	Electricity is a key input in industrial gas production. Fluctuations in power tariffs or supply disruptions may increase operating costs and impact profitability.	The Company mitigates this risk by enhancing energy efficiency, optimizing plant operations, entering into long-term power procurement arrangements where feasible, and implementing cost optimization initiatives across manufacturing facilities.
Regulatory Compliance	E	Operations are subject to strict environmental and safety regulations, with changes or delays potentially impacting continuity.	A dedicated compliance framework ensures adherence to applicable norms and timely renewal of licenses and approvals.
Interest Rate	F	Fluctuations in interest rates may impact borrowing costs linked to variable-rate instruments.	The Company monitors financial markets, diversifies borrowing sources, and adopts interest rate risk management strategies where appropriate.
Liquidity	F	Delays in receivables or ongoing capital investments may exert pressure on working capital.	Liquidity is managed through prudent cash practices, regular credit evaluation of customers and phased capital expenditure planning.
Argon Price Volatility	F	Argon prices are influenced by supply-demand dynamics and production economics, which may affect margins and profitability.	The Company mitigates this risk through diversified sourcing, long-term supply arrangements, prudent inventory management, and contractual pricing mechanisms with customers, wherever applicable.
Supply Chain Disruptions	E	Operational disruptions may arise due to logistical constraints, inadequate storage infrastructure or geopolitical developments affecting supply chains.	The Company mitigates such risks through multi-modal logistics planning, maintenance of buffer inventories and diversification of supplier networks.
Environmental Hazards	E	Improper storage or accidental release of gases may lead to environmental damage and potential regulatory penalties.	Adoption of internationally recognized safety standards, including PESO guidelines, along with emergency preparedness protocols and responsible operating practices.
Project Execution	I	Delays or execution challenges in turnkey projects such as Air Separation Units (ASUs) or medical gas pipeline systems may affect revenue recognition and project profitability.	Timely project execution is supported by an experienced in-house project management team, rigorous planning frameworks, and performance-based subcontractor selection.

Human Resources

Safe and uninterrupted operations remain central to Ellenbarries day-to-day functioning, and this is reflected in the way its people practices are shaped. Health and safety are not treated as standalone initiatives but are embedded into routine operations across facilities, with oversight from a dedicated safety head and on-ground support from site-level safety champions. Clear protocols around risk assessment, training, audits, and emergency preparedness guide this effort, helping maintain discipline on the shop floor while keeping teams aligned on safe working practices.

This consistency has translated into stable industrial relations across locations, allowing operations to run without disruption. The Kalyani facility continues to be the only unionized unit, and there have been no instances of labor disruptions or work stoppages in the past three financial years. Against this backdrop, the focus has remained on building capability where it matters most. Training is carried out on a regular basis to strengthen technical skills in manufacturing operations, machine handling, and quality management, ensuring that teams are equipped to handle the demands of day-to-day production.

Alongside this, structured mechanisms for employee engagement and grievance redressal provide space for feedback and resolution, contributing to a work environment that remains responsive and grounded. These efforts also support the Companys ongoing focus on attracting relevant talent, strengthening leadership depth, and enabling continuous development across roles.

As of March 31 2026, Ellenbarrie employed 366 employees. A majority of the workforce is engaged in operations, production, and project engineering while the remaining employees comprise support functions such as sales and marketing, human resources, finance, information technology, and legal.

Internal Control Systems

Given the nature of its operations, which span multiple processes and require consistent oversight across functions, Ellenbarrie places strong emphasis on maintaining discipline in execution and visibility across key areas of the business.

This forms the basis for its internal control systems, with defined policies and procedures ensuring efficient operations, safeguarding of assets, reliability of financial reporting, and compliance with applicable regulations.

These controls run through all key functions and are closely tracked through management information systems, enabling the Company to keep a clear view of how operations are progressing. As part of this, they are reviewed on a regular basis and strengthened where required, particularly as business needs evolve and new risks emerge.

While the framework remains adequate for the current scale of operations, the Company stays mindful of the fact that risks may arise from process or system limitations. To address this, controls are monitored and reviewed on a regular basis, contributing to consistency in execution, with no material instances reported in the past three financial years, while continuing to strengthen the control environment and monitoring mechanisms.

Cautionary Statement

This Management Discussion and Analysis may contain forward-looking statements relating to the Companys objectives, projections, estimates, and expectations, which are subject to applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors. These include changes in economic conditions affecting demand, supply, and pricing in domestic and global markets, regulatory shifts, tax policy changes, and other unforeseen developments that could influence the Companys performance.