Expo Gas Containers Ltd Directors Report

Dear Members,

The Board of Directors of the Company takes pleasure in presenting the Forty First Annual Report on the business and operation of Expo Gas Containers Limited together with Audited Financial statement for the year ended 31^sl March 2024.

FINANCIAL RESULTS

(Rs. in Lacs)

Particulars	As on 31.03.2024	As on 31.03.2023
Sales Turnover	7569.86	8021.93
Profit / (Loss) before Depreciation and Interest	586.07	270.12
Less: - Interest	440.13	455.50
Less: - Depreciation	44.24	46.35
Net Profit / (Loss) before Tax	101.70	-231.73
PLess: - Tax
- Current tax	18.71	-
- Earlier Tax	9.22	-2.35
- Deferred Tax Liabilities / (Assets)	-1.77	-8.42
Net Profit/Loss after Tax	75.53	-220.95
Other Comprehensive Income	9.02	21.88
Net Profit after Tax & Comprehensive Income	84.55	-199.07
Profit / (Loss) brought forward	688.90	887.97
Balance Carried to Balance Sheet	773.45	688.90

OPERATIONAL PERFORMANCE

During the Financial Year ended 31st March. 2024, your Company has achieved on standalone basis an operational turnover Rs.7569.86 lakh as compared to 8021.93 lakh in the previous financial year and the Profit after Tax 75.53 lakh as compared to loss of -220.95 lakh the previous financial year.

MANAGEMENT OUTLOOK FOR THE YEAR 2024-25

With the general elections over and political dust settling down, it is expected that the country continues its remarkable growth rate. The company hopes to reap benefits from the slew of projects under implementation and in pipeline, in the Oil and Gas Sector.

FUTURE OUTLOOK

Indias fuel demand is on an upward trajectory, reaching a record high of approximately 233.276 million tonnes in FY24, up from 223.021 million tonnes in FY23. To meet this burgeoning demand, India is poised to expand its refining capacity by nearly 80%, from the current 252 MMTPA to about 450 MMTPA by 2030, with a focus on establishing smaller petroleum refineries to mitigate challenges related to land acquisition and regulatory clearances.

Despite the global trend of refinery closures, driven by various factors including environmental regulations and evolving energy dynamics, India sees an opportunity to emerge as a refining hub for the world. The anticipated robust fuel demand in the coming years underscores the strategic significance of BPCLs ambitious expansion plans.

BPCL Eves Rs 50,000 Crore Investment for New Refinery Expansion

Bharat Petroleum Corporation Limited (BPCL) is gearing up for a significant expansion with plans to establish a new refinery with a capacity of 12 million metric tonnes per annum (MMTPA) in the country. As reported by the Economic Times, the state-run oil marketing giant is set to invest approximately Rs 50,000 crore into this ambitious project and is currently scouting locations in three states: Andhra Pradesh, Uttar Pradesh, and Gujarat.

An official quoted in the report stated. "The BPCL is planning another refinery either on the east coast or on the west coast as India needs more refineries to meet the increasing fuel demand. Talks are at a preliminary stage." Uttar Pradesh is also under consideration as a potential location for the new refinery

This move comes on the heels of BPCLs Chairman G Krishnakumars announcement last month, outlining the companys vision to elevate its refining capacity to 45 MMTPA by FY29. Currently, BPCL operates three refineries in Mumbai, Kochi, and Bina (Madhya Pradesh), collectively capable of refining around 36 MMTPA.

The investment strategy of BPCL extends beyond refinery expansion. The company plans to inject approximately Rs 1.7 trillion into its core businesses over the next five years, with a significant portion earmarked for refineries, petrochemicals, pipeline projects, and fuel marketing. Of this, Rs 75,000 crore is slated for refineries and petrochemical projects, Rs 8,000 crore for pipeline ventures, and more than Rs 20,000 crore for its marketing endeav ors.

Other than the above, the Company is already in coordination with the prospective Clients for their forthcoming projects, by providing them budgetary quotes. Some of the projects are :

• Hindustan Petroleum Corpn. Ltd. - Trijet FEED project.

• GNFC - Weak Nitric Acid (WNA) and Ammonium Nitrate (AN) projects at Bharuch, Gujarat.

• Ethanol & Carbon Capture Block of NTPC CCU project.

• 1 X 5000 MT Ammonia Tank unit of HPCL Chanderia. Rajasthan.

CHANGE IN NATURE OF BUSINESS OF THE COMPANY

During the year under review there has been no change in the nature of business of the company. DIVIDEND

The Dividend for the year ended 31^st March. 2024 is not advisable as in order to conserve the resources, your Directors feel that the profits be retained in the business to overcome any unforeseen difficulties.

TRANSFER TO RESERVE

The Company has not transferred any amount to the Reserves during the year.

MANAGEMENT DISCUSSION & ANALYSIS REPORTS

The Management Discussion and Analysis of financial condition, including the results of operations of the Company for the year under review as required under Regulation 34(2)(e) of the SEB1 (Listing Obligations and Disclosure Requirements) Regulations. 2015. is provided as a separate section forming part of the Annual Report as Annexure-I

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION

There arc no material changes affecting the financial position of the Company subsequent to the close of the FY 2023-24 till the date of this report.

INDIAN ACCOUNTING STANDARD (1ND AS):

The financial statements for the year under review have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (‘Act) read with Companies (Accounts) Rules, 2014 to the extent applicable to the Company.

DEPOSITS

During the financial year 2023-24, your Company has not accepted any deposit within the meaning of Sections 73 and 74 of the Companies Act,2013 read together with the Companies (Acceptance of Deposits) Rules. 2014.

Hence, the requirement of furnishing details relating to Deposits covered under Chapter V of the Act or the details of Deposits that are not in compliance with Chapter V of the Act is not applicable.

SUBSIDIARY COMPANIES ASSOCIATE AND JOINT VENTURE COMPANIES:

As on March 31,2024, according to the Companies Act,2013 and rules made there under the Company doesnt have any Subsidiary Company, Associate Company and Joint Venture Company.

SHARE CAPITAL

The Authorized Capital of the Company is 4,00,00.000 Equity shares of the Company of Rs. 4/- each and the paid capital of the Company as on 31.03.2024 is 1.90,36,400 Equity shares of the Company of Rs. 4/- each.

During the year under review, pursuant to the provisions of Sections 23(1 )(b). 42, 62(1 )(c) and all other applicable provisions, if any, of the Companies Act, 2013. the enabling provisions of the Memorandum and Articles of Association of the Company and subject to the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations. 2018. as amended (ICDR Regulations), the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the listing agreement entered into by the Company with BSE Limited the Company has issued, offer shares through Preferential issue on private placement basis of 37,60,000 (Thirty-Seven Lakh Sixty Thousand Only)

Equity shares having face value of Rs. 4 each at a price Rs.20/- each (including premium of Rs. 16/- per shares) to promotor and non-promoter as per the provision of ICDR Regulation and same has approved by shareholder on extra-ordinary general meeting dated 22^nd March, 2024 and received BSE in principal approval on 28th March 2024

Note: -

Share allotted a fter the closure of financial year 2023-24 on 09th April,2024 after the approval of Board of Director. None of the Directors of the Company hold any convertible instruments of the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Mr. Murtuza S. Mewawala, Director (DIN:00125534) will retire by rotation at the ensuing Annual General Meeting (AGM) of your Company and being eligible, offers himself for re-appointment in accordance with the prov isions of Section 152(6) of the Act read with Articles of Association of the Company.

Particulars in pursuance of Regulation 36 of the SEB1 LODR Regulations read with Secretarial Standard -2 on General Meetings, brief profile of Mr. Murtuza S. Mewawala is provided as an Annexurc-I to the Notice of the 41^st Annual General Meeting.

During the year there were no changes in the constitution of Board.

DECLARATION BY AN INDEPENDENT DIRECTOR(S)

The Company has received the necessary declaration from each Independent Director under Section 149 (7) of the Companies Act, 2013 that they meet the criteria of independence laid down under Companies Act, 2013 along with a declaration receiv ed pursuant to sub rule (3) of Rule 6 of the Companies (Appointment and Qualification of Directors) Rules,2014. They have also furnished the declaration pursuant to relev ant regulations of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations. 2015 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force) (Listing Regulations). The Independent Directors have individually confirmed that they are not aware of any circumstances or situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence.

Based on the declarations and confirmations of the Independent Directors and after undertaking due assessment of the veracity of the same, the Board of Directors recorded their opinion that all the Independent Directors are independent of the Management and have fulfilled all the conditions as specified under the governing provisions of the Companies Act, 2013 and the Listing Regulations

Further, the Independent Directors have also confirmed that they have complied with the Companys code of conduct.

Based on the confirmation / disclosures received from the Directors, the following Non-Executive Directors are Independent as on March 31. 2024:

1) Mr. Venkateswaran Manickam Chittoor

2) Ms. Sayada Mukadam

ANNUAL EVALUATION BY THE BOARD OF ITS OWN PERFORMANCE, ITS COMMITTES AND INDIVIDUAL DIRECTORS

The Board of Directors of the Company has initiated and put in place evaluation of its own performance, its committees and individual directors. In a separate meeting of independent directors, performance of non-independent directors, the Board as a whole and the Chairman of the Company was evaluated, considering the views of executive directors and non-executive directors. The results of the evaluation are satisfactory and adequate and meet the requirement of the Company.

The Board of Directors of the Company is of the opinion that all the Independent Directors of the Company possess the highest standard of integrity, relevant expertise, and experience required to best serve the interest of the Company.

BOARD MEETINGS

Pursuant to Section 134(3)(b). details of Board meeting held in the year is reflected in the Corporate Governance Report.

During the year Eight (8) Board Meetings, Four (4) Audit Committee Meetings One (1) Nomination and Remuneration Committee Meeting and Nine (9) Stakeholders Relationship Committee Meetings were held. The details of which are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013. The maximum gap between two Board meetings did not exceed 120 days

A separate meeting of Independent Directors, pursuant to Section 149 (7) read with Schedule VI of the Companies Act, 2013 was held on 14^th February 2024.

COMMITTEES OF THE BOARD

In accordance with the provisions of the Companies Act. 2013 and SEBI (LODR) Regulations, 2015 the Board has the following Three (3) committees as on 31^st March.2024

(i) Audit Committee

(ii) Nomination and Remuneration Committee

(iii) Stakeholders Relationship Committee

A detailed update on the Board, its committees, its composition, detailed charter including terms of reference of various Board Committees, number of Committee meetings held, and attendance of the directors at each meeting is provided in the Corporate Governance Report, which forms part of this Annual Report.

CORPORATE GOVERNANCE

The Company does not fall under purview the of Regulations of Corporate Governance pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015 for the year under review. However, the same is applicable as per the Companies Act, 2013 and the Company is fully compliant with the applicable provision and the Company is committed to ensure compliance with all modification within prescribed norms under Companies Act. 2013.

The Company has also implemented several best governance practices. We also endeavour to enhance long-term shareholder value and respect minority rights in all our business decisions.

Company is committed to maintain the highest standards of corporate practices, a separate section on Corporate Governance is provided as part of this Annual Report as Annexure-II

STATUTORY AUDITOR AND THEIR REPORT

The shareholders at their 39^th Annual General Meeting (AGM) held on 21^sl September,2022 upon the recommendation of Audit Committee and Board of Directors of the company had appointed M/s. K. S Shah & Co., Chartered Accountants (Firm Reg. No. 109644W) from the conclusion of the Thirty Ninth (39th) Annual General Meeting until the conclusion of the Forty Fourth (44th) Annual General Meeting for the financial year 2026-2027 and that the Board is authorized to fix the remuneration as may be determined by the Audit Committee in consultation with the Auditors. Now it is proposed to confirm their appointment for the financial year 2024-25 i. e. from the conclusion of the ensuing Annual General Meeting till the conclusion of the next Annual General Meeting

The Auditors Report and the Notes on financial statement for the year 2023-24 referred to in the Auditors Report are self-explanatory and do not contain any qualification, reservation or adverse remark, therefore, do not call for any further comments.

INTERNAL AUDITOR

Pursuant to the provisions of Section 138 of the Companies Act, 2013 and rules made thereunder (including any amendment(s). modification(s) or re-enactment(s) thereof for the time being in force), the Board of Directors of the Company, on the recommendation of Audit Committee, at their meeting held 29^th May.2023 has re-appointed Mr. Sunil Sawant as Internal Auditors of the Company for the Financial Year 2023-2024, to conduct Internal Audit of the Company.

The Internal Auditors are appointed to audit the function and activities of the Company and to review various operations of the Company and the Company has continued to implement their suggestions and recommendations to improve tire control environment

The observations of Auditors are self-explanatory in the notes referred to by them.

SECRETARIAL AUDITOR

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors has appointed M/s. ND & Associates, a firm of Company Secretaries in Practice to undertake the secretarial Audit of the Company . The Report of the Secretarial Audit Report is annexed herewith as ‘Annexure III."

The observations of Auditors are self-explanatory⁷ in the reports referred to by them.

COST RECORDS

Pursuant to sub-section (1) of section 148 of the Act for any of the products of the company Accordingly, during the year, maintenance of Cost Records and Cost Audit w as not applicable to the Company.

RISK MANAGEMENT POLICY

The Company has a well-defined process to ensure the risks arc identified and mitigation steps are put in place. The Companys Risk Management process focuses on ensuring that these risks arc identified on a timely basis and reasonably addressed. The Audit Committee oversees financial risks and controls. Major risks are identified by the businesses and functions and these are systematically addressed through mitigating actions on a continuing basis.

INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Board of Directors of the Company is responsible for ensuring that Internal Financial Controls have been established in the Company and that such controls are adequate and operating effectively. The Company has laid down certain guidelines and processes which enables implementation of appropriate internal financial controls across the organization. The Internal Financial Control with reference to the financial statement w as adequate and operating effectively. During the Financial Year, no frauds were reported by auditors in terms of section 143(12) of the Companies Act, 2013.

VIGIL MECHANISM/WH1STLE BLOW ER POLICY

The Board of Directors has formulated a Whistle Blower Policy in compliance with the Section 177(10) read with Regulation 22 of SEBI (Listing Obligation and Disclosure Requirement) Regulations 2015. The Company has a vigil mechanism to deal with instance of fraud and mismanagement, if any. The policy is in place and the Company has uploaded the same to its website.

PARTICULARS OF LOAN, GUARANTEE & INVESTMENTS

The particulars of loans, guarantees and investments as per Section 186 of the Act by the Company, have been disclosed in the financial statements.

ENERGY. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE

The information required under Section 134 (3)(m) of the Companies Act. 2013 read with the Companies (Accounts) Rules, 2014, with respect to conservation of energy, technology absorption and foreign exchange callings/outgo is given hereto and fonns a part of this report.

FORM-A

Form for disclosure of particulars with respect to Conservation of Energy.

Power and Fuel Consumption		Current year 31.03.2024	Previous year 31.03.2023
1)	Electricity
	Purchase Unit (KWH)	3.10	2.47
	Total Amount (Rupees in lacs)	35.36	31.58
	Rate per Unit (Rupees)	11.41	12.78
2)	Coal	N.A.	N.A
3)	Furnace Oil	N.A.	N.A.
4)	Internal Generation	N.A.	N.A.

TECHNOLOGY ABSORPTION. ADAPTATION AND INNOVATION

Energy conservation is not only a national priority but also a key value driver for your Company. Employees are also encouraged to give suggestion that will result in energy saving.

As prescribed under the Section 134 (3) (m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 is not applicable, as there is no technology absorption, adaptation and innovation made by your Company in the goods manufactured.

FOREIGN EXCHANGE EARNING AND OUTGO

	Rs. in Lacs
i) CIF Value of Imports	NIL
ii) Expenditure in foreign currency	0.26
Hi) Foreign Exchange earned	NIL

PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 and Rule 5(1), 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure-IV

EXTRACT OF ANNUAL RETURN

Pursuant to the provisions of Sections 92(3) and 134(3)(a) of the Act read with Rule 12 of the Companies (Management and Administration) Rules. 2014 (as substituted by the Companies (Management and Administration) Amendment Rules, 2021 dated March 05, 2021), a copy of the Annual Return (MGT -7) is available on the website of the Company at www.expogas.com.

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on anns length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with promoters. Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

Separate disclosure as per Regulation 34(3) of SEBI (LODR) Regulations. 2015 is made in the notes to the accounts attached with the financial statement, therefore not reproduced here under. The policy on Related Party Transactions duly approved by the Board has been posted on the Companys https://www.expogas.com/Investor%20Relations.html

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Industrial Relations continued to be harmonious throughout the year under review. Many initiatives have been taken to support business through organizational efficiency, process change support and various employee engagement programs which have helped the Organization achieve higher productivity levels.

PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance beyond threshold limit mentioned in the policy for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed.

As per the requirements of Regulation 8(1) of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulation, 2015, the Company has formulated code of fair disclosure of unpublished price sensitive information and has uploaded the same on the official website of the Company. All Board Directors and the designated employees have confirmed compliance with the Code.

STATEMENT PURSUANT TO LISTING AGREEMENT

The Companys Equity shares are listed at Bombay Stock Exchange Limited. The Annual Listing fee for the year 2024-25 has been paid.

STATUTORY DISCLOSURES

None of the Directors of the Company are disqualified as per provisions of Section 164(2) of the Companies Act, 2013. Your Directors have made necessary disclosures, as required under various provisions of the Companies Act. 2013 and Listing regulations. Certificate as required under Part C of Schedule V of Listing Regulations is enclosed as Annexure V.

QUALITY/ SAFETY CERTIFICATIONS

Your Company has obtained the prestigious OHSAS (IS045001:2018 certification. Your Company is also ISO 900:2015& ISO 14001:2015 certified by URS.

COMMITTEE AND POLICY UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION ANDREDRESSAL) ACT. 2013

The Company has constituted Internal Complaints Committee under and as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year under review, no instance of compliant or report under the said Act was registered in any of the units of the Company.

CORPORATE SOCIAL RESPONSIBILITY

As per the Section 134 (o) Corporate Social Responsibility is not applicable to our Company.

CODE OF CONDUCT

The Company has a defined code of conduct for its Directors and Senior Management Personnel and the same is uploaded on the website https://wvvAv.expogas.com/Policies.html

As on March 31,2024. all the Board Members and Senior Management of the Company have affirmed compliance with the Code of Conduct

INDUSTRIAL RELATIONS

During the year under review, your Company enjoyed cordial relationship with contractor and employees at all levels.

THE DETAILS OF APPLICATION MADE OR PROCEEDING PENDING UNDER THF. INSOLVENCY AND BANKRUPTCY CODE, 2016

The company has not made any application under aforesaid bankruptcy code nor is the company facing any proceeding under the said Insolvency and Bankruptcy Code, 2016.

DIRECTORS¹ RESPONSIBILTY STATEMENT AS REQUIRED UNDER SECTION 134(3)(c) OF THE COMPANIES ACT 2013

The Directors state that: -

a) In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation by way of notes to accounts relating to material departures;

b) The selected accounting policies were applied consistently and the judgments and estimates made by them are reasonable and prudent so as to give true and fair view of the state of affairs of the Company as at 31^sl March 2024 and of the profit for the year ended on that date:

c) The proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities:

d) The annual accounts have been prepared on a going concern basis.

e) The Directors had laid down internal financial controls to be followed by the Company and that such internal controls are adequate and were operating effectively.

f) The Directors had devised proper systems to ensure compliance with the provisions of all applicable law s and that such systems w ere adequate and operating effectively

OTHER GENERAL DISCLOUSER;

SECRETARIAL STANDARDS:

The Institute of Company Secretaries of India, a Statutory Body, has issued Secretarial Standards on various aspects of corporate law and practices and the same is approved by the Government of India under section 118 (10) of the Companies Act, 2013.The Company has devised a proper system to ensure compliance w ith the provisions of all applicable Secretarial Standards issued by the Institute of Company Secretaries of India and that such systems are adequate and operating effectively.

EMPLOYEES STOCK OPTION SCHEME (ESOS). SWEAT EQUITY & SHARES HAVING DIFFERENTIAL VOTING RIGHTS:

Your Company has not issued any shares to the employees of the Company under the Employee Stock Option Scheme. Sweat Equity and with differential voting rights in the previous financial year.

ACKNOWLEDGEMENT

Your Directors place on record their deep appreciation to employees at all levels for their hard work, dedication and commitment. The enthusiasm and unstinting efforts of the employees have enabled the Company to remain an industry leader.

The Board places on record its appreciation for the support and co-operation your Company has been receiving from its suppliers, distributors, retailers and others associated with it.

Your Directors also take this opportunity to thank all Shareholders, Clients, Vendors. Banks. Government and Regulatory Authorities and Stock Exchanges, for their continued support.

	For and on behalf of the Board
	For Expo Gas Containers Limited
Place : - Mumbai
Dated :-09.08.2024	Sd/-
	Hasanain S. Mewawala
	Managing Director
	DIN:00125472

ANNEXURE-1

MANAGEMENT DISCUSSION & ANALYSIS REPORT The Indian Economy:

The World Economic Situation and Prospects as of mid-2024 said "Indias economy is forecast to expand by 6.9% in 2024 and 6.6% in 2025. mainly driven by strong public investment and resilient private consumption"

Indias GDP took a big leap on Leap Day in 2024: The countrys remarkable growth rate of 8.4% in the third quarter of the fiscal year 2024 surpassed all expectations, as market analysts had penciled in a slower growth this quarter, between 6.6% and 7.2%. With substantial revisions to the data from the past three quarters of the fiscal year, Indias GDP growth already touched 8.2% year over year (YoY) in these quarters.

The global economy is also expected to witness a synchronous rebound in 2025 as major election uncertainties are out of the w ay and central banks in the West likely announce a couple of rate cuts later in 2024. India w ill likely see improved capital flows boosting private investment and a rebound in exports.

Industry Structure and Development :

According to market research, healthy economic expansion, combined with dynamic population, urbanisation and industrialisation growth, will see Indias role in global oil markets rapidly increase towards 2030, w ith significant implications for its oil trade balances, climate ambitions and energy security goals. As energy transitions gather pace and Chinas economy shifts gear towards a less energy -intensive phase. India w ill assume the position as the worlds largest source of oil demand growth this decade. In our 2023-2030 forecast period. India accounts for more than one-third of global oil demand growth.

The oil and gas sector is among the eight core industries in India and plays a major role in influencing the decision-making for all die other important sections of die economy.

Indias economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment. India retained its spot as the third-largest consumer of oil in the world as of 2023.

The Government has adopted several policies to fulfill tire increasing demand. It has allowed 100% foreign direct investment (FDI) in many segments of the sector, including natural gas, petroleum products and refineries, among others. The FDI limit for public sector refining projects has been raised to 49% without any disinvestment or dilution of domestic equity in existing PSUs. Today, it attracts both domestic and foreign investment, as attested by the presence of companies such as Reliance Industries Ltd (R1L) and Cairn India. The industry- is expected to attract US$ 25 billion investment in exploration and production. India is already a refining hub with 23 refineries, and expansion is planned for tapping foreign investment in export-oriented infrastructure, including product pipelines and export tenninals.

MARKET SIZE:

Indias crude oil production in FY24 (until January 2024) stood at 22.71 MMT.

High-Speed Diesel was the most consumed oil product in India and accounted for 38.6% of petroleum product consumption in FY23.

Indias consumption of petroleum products stood at almost 4.44 million barrels per day (BPD) in FY23, up from 4.05 million BPD in FY22. Indias crude oil production stood at 2.69 MBPD during April-Octobcr 2023.

According to the IEA (India Energy Outlook 2021), primary energy demand is expected to nearly double to 1,123 million tonnes of oil equivalent, as Indias gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040.

As of April 2023, Indias oil refining capacity stood at 253.91 MMT, making it the second-largest refiner in Asia. Private companies owned about 35% of the total refining capacity.

India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. The consumption of petroleum products during April-January 2024, with a volume of 192.7 MMT, reported a growth of 5.2 % compared to the volume of 183.1 MMT during the same period of

According to the International Energy Agency (IEA), consumption of natural gas in India is expected to grow by 25 BCM, registering an average annual growth of 9% until 2024.

Growing Demand

Oil demand in India is projected to register a 2x growth to reach 11 million barrels per day by 2045.

Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and gasoline covering 58% of Indias oil demand by 2045.

Crude oil imports increased by 5.7% and 0.9% during January 2024 and April-January 2023-24 respectively as compared to the corresponding period of the previous year

Rapid Expansion

India aims to commercialize 50% of its SPR (strategic petroleum reserves) to raise funds and build additional storage tanks to offset high oil prices.

Indian refiners would add 56 million tonnes per annum (mtpa) by 2028 to increase domestic capacity to 310 mtp

Refinery:

India is the fourth largest global refiner and its refining capacity stands at 256.8 MMTPA as of Apr 2024, comprising 23 refineries. Refinery capacity utilization is about 96% for the year 2021-22. Indian Oil Corporation (IOC) is the largest domestic refiner with a capacity of 70.1 MMTPA.

Crude oil processing increased by 0.8% from 21.5 MMT in Apr 2023 to 21.6 MMT in Apr 2024.

Petroleum product production saw an increase of 3.9 % in Apr 2024 vis-a-vis Apr 2023. The production of petroleum products stood at 23.4 MMT in Apr 2024.

India aims to increase its refining capacity to 450 MMTPA by 2030.

Investments:

According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT). FD1 inflows in Indias petroleum and natural gas sector stood at US$ 8.18 billion between April 2000-Dcccmbcr 2023.

In February 2024. Prime Minister. Mr. Narendra Modi unveiled a strategic investment plan of US$ 67 billion for the Indian gas sector over next 5-6 y ears.

THREATS:

The geopolitical scenario continues to remain volatile due to prolonged conflict in West Asia and Russia-Ukraine war. Any flare-up in the regions can adversely affect the global demand-supply scenario.

There is increased pressure on the stakeholders to optimize their asset portfolios, asset performance and product mix in a responsible manner to build competitive advantage. Also, to remain floated in the competitive environment. the Company needs to adopt risk management strategies for managing and reducing risk exposure.

Internal Control System :

The Company maintains adequate internal control systems, which provide among other things, reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of company assets. Moreover, the Management team regularly meets to monitor expectations and budgeted results and scrutinizes reasons for deviations in order to take necessary corrective steps. The Audit Committee, which meets at regular interv al, also reviews the internal control systems with the Management and the Internal Auditors. There are clear demarcation of roles and responsibilities at various levels of operations. The Companys internal control system is further strengthened by continuous periodical internal audit system and Review at the Board level. The specific appointment of internal auditor would further strengthen the existing sy stem. The internal audit is conducted at regular intervals at various locations of the Company and covers all the key areas. All audit observations and follow up actions are discussed with the Management as also the Statutory Auditors and the Audit Committee reviews them regularly.

Safety, Health and Environment:

Safety, Health and Environment is a core value for your Company. Simply stated your Companys goals are: no accidents, no harm to people and no damage to environment. The Companys success owes to the health, safety & security of everyone who works for them. The health and medical services are accessible to all employees through well equipped occupational health centers at all manufacturing facilities. Safety and security of personnel, assets and environmental protection are also on top of the agenda of the Company at its manufacturing facilities.

Clean environment and sustainable development integrated with the business objective is the focus of operations of the Company. The projects and activities are planned and designed with environment protection as an integral part to ensure a safe and clean environment for sustainable development.

Cautionary Statement:

The statements in this Managements Discussions & Analysis describing the Companys objectives, projections, estimates, expectations and predictions which may be "forward looking statements" within the meaning of the applicable securities laws and regulations. The annual results can differ materially from those expressed or implied, depending on the economic conditions. Government Policies and other incidental factors and developments.