Ganesha Ecosphere Ltd Management Discussions

Global economy

Overview

Despite significant challenges, the global economy showed remarkable resilience in 2023. These challenges included post-pandemic supply-chain disruptions, a global energy and food crisis due to the Russian-Ukraine conflict, increased logistics costs from the Red Sea crisis, and a notable rise in inflation leading to synchronised monetary policy tightening worldwide. Contrary to many forecasts, the world avoided a recession, the banking system remained largely robust, and major emerging market economies did not experience sudden stops.

Global GDP growth was 3.2% in 2023 and is expected to stay the same in 2024, with a slight increase to 3.3% in 2025. By late 2023, headline inflation in most economies had nearly returned to its pre-pandemic level for the first time since the global inflation surge began. After an increase of 25 bps in July 2023, the Federal Reserve rate remained steady at 5.25-5.50% for the rest of 2023.

Global trade in goods dipped 3% to USD 31 Trillion in 2023 after peaking in 2022. The downturn was driven by less demand in developed economies and weaker trade in East Asia and Latin America. The cost of Brent crude oil averaged USD 82.49 per barrel in 2023, down from USD 101 per barrel in 2022, with crude oil from Russia finding consumers outside the European Union and global crude oil demand falling short of expectations.

Global equity markets ended 2023 on a high note, with major global equity benchmarks delivering double-digit returns. This outperformance was led by a decline in global inflation, slide in the dollar index, declining crude and higher expectation of rate cuts by the US Fed and other Central banks.

Regional growth (%)	2023	2022
World output	3.3	3.4
Advanced economies	1.7	2.7
Emerging and developing economies	4.4	4.0
(Source: UNCTAD, IMF)

Outlook

Growth is expected to remain stable, however, world trade growth is anticipated to recover to ~ 3?% annually in 2024–25 (from quasi stagnation in 2023) and align with global GDP growth again, according to IMF. Global headline inflation is anticipated to decrease from an annual average of 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025. Advanced economies are expected to return to their inflation targets sooner than emerging market and developing economies. Partially owing to the falling energy prices, inflation is already close to pre-pandemic levels for the median emerging market and developing economy.

Overall, risks to the outlook remain balanced, but some near-term risks have become more prominent. These include upside risks to inflation stemming from a lack of progress on services disinflation and price pressures arising from renewed trade or geopolitical tensions. This could lead to further persistence in wage and price inflation. (Source: imf.org)

Indian economy

Overview: The Indian economy grew 8.2% in FY 2023-24 fiscal against 7.0% in FY 2022-23 mainly on account of the improved performance in the mining and quarrying, manufacturing and certain segments of the services sector. India retained its position as the fifth largest economy. The Indian rupee displayed relative resilience compared to the previous year; the rupee opened at H82.14 against the US dollar on the first trading day of FY 2023-24, touching H83.59 on March 22, 2024 before settling at H83.38 on the last trading day of FY 2023-24. In FY 2023-24, the CPI inflation averaged 5.4% with rural inflation exceeding urban inflation. Lower production and erratic weather led to a spike in food inflation. In contrast, core inflation averaged at 4.5%, a sharp decline from 6.2% in FY 2022-23. The softening of global commodity prices led to a moderation in core inflation.

The nations foreign exchange reserves achieved a historic milestone, reaching USD 670 Billion. The credit ratio (the ratio of entities upgraded to those downgraded) moderated in the second half of fiscal 2024 but remained elevated at 1.79 times, compared to 1.91 times in the first half. Overall, there were 409 upgrades and 228 downgrades. India recorded about 131 Billion Unified Payments Interface (UPI) transactions with a total value of H200 Trillion in FY 2023-24.

Growth of the Indian economy

	FY 21	FY 22	FY 23	FY 24
Real GDP growth (%)	(7.3)	8.7	7.2	8.2
(Source: Budget FY 24; Economy Projections, RBI projections, Deccan Herald)

Indias monsoon for 2023 hit a five-year low. August was the driest month in a century. From June to September, the country received only 94% of its long-term average rainfall. Total rice production is estimated at 1,367.00 LMT in FY 2023-24, against 1,357.55 LMT in FY 2022-23, marking an increase of 9.45 LMT. Wheat production is estimated at 1,129.25 LMT, higher by 23.71 LMT over last years production. Total Kharif pulses production for FY 2023-24 was 71.18 LMT, lower than the previous year due to climatic conditions.

As per the first advance estimates of national income released by the National Statistical Office (NSO), the manufacturing sector output grew 9.9% in FY 2023-24 compared to 4.7% in FY 2022-23. The Indian mining sector grew 7.5% in FY 2023-24 over 4.1% in FY 2022-23.

Real GDP or GDP at constant prices increased from to H160.71 Lakh Cr in FY 2022-23 (provisional GDP estimate released on May 31, 2023) to an H173.82 Lakh Cr in 2023-24. Nominal GDP or GDP at current prices was at H295.36 Lakh Cr in FY 2023-24 as compared to the provisional FY 2022-23 GDP estimate of H269.50 Lakh Cr. The gross non-performing asset ratio for scheduled commercial banks improved from 4.1% as of March 2023 to 2.8% as of March 2024.

Indias exports of goods and services touched USD 778 Billion in 2023 compared to USD 770 Billion in the previous year. Merchandise exports marginally declined from USD 451.1 Billion to USD 437.1 Billion, while services exports increased from USD 325.3 Billion to USD 341.1 Billion. Indias net direct tax collections surged by 17.7% year-on-year to H19.58 Cr in FY 2023-24. Gross GST collection of H20.2 Lakh Cr represented an 11.7% increase; average monthly collection was H1,68,000 Cr, surpassing the previous years average of H1,50,000 Cr.

During FY 2023-24, the construction grew by 9.9% each, while agriculture recorded growth of 1.4%. Financial, real estate and professional services grew by 8.4% in FY 2023-24.

India reached a pivotal phase in its S-curve, characterised by acceleration in urbanization, industrialization, household incomes and energy consumption. Indias Nifty 50 index grew 30% in FY 2023-24 and Indias stock market emerged as the worlds fourth largest with a market capitalization of USD 4 Trillion. Foreign investment in Indian government bonds jumped in the last three months of 2023. Indias unemployment declined to a low of 3.2% in 2023 from 6.1% in 2018.

Outlook: India withstood global headwinds in 2023 and is likely to remain the worlds fastest-growing major economy on the back of growing demand, moderate inflation, stable interest rates and robust foreign exchange reserves.

Growth in India is projected to remain strong at 7.0% in 2024 and 6.5% in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population.

The Indian economy is anticipated to surpass USD 4 Trillion in FY 2024-25. The growth in nominal GDP during FY 2023-24 is estimated at 9.6% as compared to 14.2% in FY 2022-23. Strong domestic demand for consumption and investment, along with Governments continued emphasis on capital expenditure are seen as among the key driver of the GDP in the second half of FY 2023-24

Business drivers

Rising population: India is the most populous country in the world, followed by China at a close second and the United States of America at the third rank.

Urbanisation: India is urbanising rapidly. By 2036, its towns and cities will be home to 600 Million people, or 40% of the population, up from 31% in 2011, with urban areas contributing almost 70% to GDP.

Demographic dividend: With an average age of 28.6 years, India is home to one of the youngest populations in the world, which is largely driving the economy with nearly two-thirds of the people entering the workforce being aged between 18-28 years.

Rising consumption: In 2023, Indias consumption rate grew at a faster rate compared to China, USA and Germany. By 2026, the Indian consumption market is expected to become the worlds third largest.

Shifting supply chains: A number of global supply chains are shifting their manufacturing base from China to India, owing to favourable regulatory norms and large number of skilled workforce.

Internet penetration and e-commerce boom: With 759 Million subscribers in 2023, over 50% Indians are active internet users. This number is expected to grow to 900 Million by 2025. India is expected to become the third largest e-commerce market with a base of 500 Million online buyers. Between 2019 and 2026, the number of online shoppers is expected to grow to 88 Million, growing at 22% CAGR, in rural India and 263 Million, growing at 15% CAGR in urban India.

Digital payments: The value of transactions conducted on the UPI platform increased significantly from _0.07 Lakh Cr in FY 2016-17 to _200 Lakh Cr in FY 2023-24.

(Source: InvestIndia, Times of India, downtoearth.org, Economic Times, Financial Express)

Global textile and apparel market

The global textile market was valued at USD 1,840.12 Billion in 2023, with the Asia-Pacific region holding the largest share. The market is expected to grow at a CAGR of 7.43% from 2024 to 2033, reaching approximately USD 3,767.92 Billion by 2033. This growth is driven by the increasing global demand for natural fibers. In the Asia-Pacific region, the textile market was valued at USD 993.66 Billion in 2023 and is anticipated to reach around USD 2,053.52 Billion by 2033, with a CAGR of 7.52% from 2024 to 2033. This growth is primarily due to the easy availability of raw silk, rising demand for fashionable clothing and home furnishings, increased use of e-commerce for purchasing apparel, and a growing young population inclined towards designer clothes. Moreover, increased interest in fashion and the trend of wearing imported clothing are contributing to market growth. Government investments in countries like India, China and Bangladesh are also boosting the market.

In 2024, global revenue in the apparel market is estimated to reach USD 1.79 Trillion, with a CAGR of 2.81% between 2024 and 2028. Womens apparel is expected to be the largest segment, with a projected market volume of USD 0.94 Trillion in 2024 and the United States is expected to lead in global revenue generation with an estimated USD 359 Billion in 2024. On a per capita basis, the apparel market is projected to generate USD 230.90 per person in 2024. The average volume per person is estimated to be 24.1 pieces in 2024. It is anticipated that 95% of apparel market sales in 2024 will be attributed to non-luxury items.

(Source: Precedence Research , Statista)

Indian textile and apparel market

The Indian textile and apparel market was valued at USD 197.2 Billion in 2023 and it is further expected to reach USD 592.7 Billion by 2032, at a CAGR of 12.6% from 2024-2032. The textile and apparel industry is an integral part of Indias economy contributing approximately 2.3% to the GDP, 13% to industrial production and 12% to exports. The textile industry in India is expected to double its contribution to the GDP, rising from 2.3% to approximately 5% by the end of this decade. It is also the second largest employer in the country offering employment to 45 Million people and 100 Million in allied industries. India is the worlds third largest exporter of textiles and apparel. India ranks among the top five global exporters in several textile categories, with exports expected to reach USD 100 Billion. During FY 2023-24, cumulative exports of textiles and apparel in India fell to USD 34.43 Billion from USD 35.58 Billion FY 2022-23, dropping by 3.24% y-o-y. In the overall textiles sector, the segment comprising cotton yarn, fabs, made-ups and handloom products alone witnessed a significant YoY increase in exports by USD 740 Million in FY 2023-24 over FY 2022-23 due to the surge in export of cotton yarn during the last fiscal. The industry is bullish on the growth potential of the PLI scheme for man-made fibre apparel and fabrics. The seven PM MITRA parks are expected to boost the production capabilities in the textile sector by creating an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. The rising number of government initiatives of India to empower weavers and the growing number of ethically launched sourced sustainable materials represent some of the key factors driving the growth of the market

(Source: Research and Markets, Imarcgroup, IBEF, Times of India, Invest India)

Global PET market overview

During 2017-2023, the global PET (Polyethylene terephthalate) market grew at a CAGR of 2.5%, reaching a volume of 80.2 Million Tons in 2023. In terms of sales value, it reached a value of USD 96.2 Billion in 2023 growing at a CAGR of 4.4% during 2017-2023. Looking forward, this market is expected to grow at a CAGR of 5.6% during 2024-2029 reaching a value of USD 135.1 Billion by 2029.

Indian PET market overview

PET is the most widely used material in the manufacture of rigid packaging containers, especially for packaging applications in food and beverage industries across the nation. Given the widespread use of PET in the Indian market, the government of India is increasingly encouraging the existing market as well as the adoption of recyclable PET. For instance, the Ministry of Environment, Forest, and Climate Change, allowed the use of recycled content in food-contact packaging. Moreover, to expand consumer base and meet their increasing demand, prominent PET producers across the country are increasing focus on the expansion of their production facilities, which is likely to propel the India PET market significantly. The Indian PET market reached a value of USD 3.60 Billion in 2023, growing at a CAGR of 18.0% during 2017-2023. Going forward, the India PET market is expected to reach a value of USD 12.18 Billion by 2029, growing at a CAGR of 22.3% during 2024-2029. In terms of volume, the Indian PET market reached a volume of 2,048 Kilo Tons in 2023, growing at a CAGR of 7.9% during 2017-2023. By 2029, the

India PET market is expected to reach a volume of 4,072 Kilo Tons, growing at a CAGR of 12.3% during 2024-2029. This growth is attributed to various factors such as increase in the number of young population, growing awareness around hygiene, rise in urbanisation and disposable incomes.

In 2023, bottle represented the largest application for PET in India, accounting for a share of 55.8% of the total market in terms of volume and this share is anticipated to reach 57.5%, by 2029. The increased use of PET resin would lead to generation of more waste which would then get into the waste stream and move towards recycling. PET has witnessed robust growth over last five years increasing usage in various end user industries such as packaging & bottling, automobile, medical packaging, electrical and electronics. The increased demand has been driven by replacement of traditional packaging materials like glass, aluminium, paper, metal and growth in FMCG sector. By 2029, the food and beverage sector is expected to dominate the PET packaging market in India, representing 50.2% of the total market volume. This sector is expected to be followed by consumer products (21.8%), pharmaceuticals (10.3%) and other applications (17.8%).

(Source: Fortune Business Insights, Straits research, IMARC, Times of India)

PET industry growth drivers in India

* The growing preference for convenience foods and increase in population contribute to the growth of the PET market in India.

* PET is a preferred replacement for conventional packaging materials due to its flexibility, simplicity, durability and recycling capacity.

* The pharmaceutical, food and beverage industries have switched to PET packaging due to greater demand for the maintenance of higher quality standards and overall health have become more important.

* Major FMCG businesses are gradually replacing virgin plastic with recycled alternatives in their supply chain

(Source: Coherent Market Insights, Brand Equity)

Global rPET industry

The global rPET market reached a value of USD 18.41 Billion in 2023, growing at a CAGR of 11.6% during 2017-2023. Moving forward, the global rPET market is expected to reach a value of USD 40.72 Billion by 2029, growing at a CAGR of 14.0% during 2024-2029.

Source: Analyst Reports, Expert Interviews and IMARC Group

Note: The above calculations are for the Calendar Year (Jan-Dec). 2017-2022 are Actual figures, 2023 figure is Estimated & 2024-2029 figures are Forecasted.

In terms of volume, the global rPET market reached 12.17 Million Tons in 2023, growing at a CAGR of 4.8% during 2017-2023. Going forward, the global rPET market is expected to reach a volume of 20.05 Million Tons by 2029, growing at a CAGR of 8.9% during 2024-2029. Growing concern about plastic pollution and the environmental impact of single-use plastics significantly heightened the demand for recycled PET products. Consumers, educated by awareness campaigns and media coverage, are increasingly choosing environmentally friendly options, making sustainability a key factor in purchasing decisions. Governments are implementing stricter regulations, such as bans on single-use plastics and incentives for recycling, which push manufacturers to adopt recycled PET.

Corporations, responding to both ethical considerations and consumer demand, are setting ambitious sustainability goals, like in 2023, US-based bottled water brand Chlorophyll Water announced the launch of new bottles made using 100% rPET. Due to this, market growth is propelling across the globe. The environmental benefits of recycled PET, including reduced energy consumption and lower greenhouse gas emissions, further drive its adoption. This trend is evident in industries like food and beverage, where recycled PET is widely used for packaging, and the fashion industry, which increasingly uses recycled PET for textiles, contributing to the circular economy and reducing reliance on virgin materials.

Indian rPET industry

The India rPET market reached a value of USD 0.80 Billion in 2023, growing at a CAGR of 19.5% during 2017-2023. Moving forward, the India rPET market is expected to reach a value of USD 5.89 Billion by 2029, growing at a CAGR of 35.8% during 2024-2029.

Source: Analyst Reports, Expert Interviews and IMARC Group

Note: The above calculations are for the Calendar Year (Jan-Dec). 2017-2022 are Actual figures, 2023 figure is Estimated & 2024-2029 figures are Forecasted.

In terms of volume, the India rPET market reached 670 Kilo Tons in 2023, growing at a CAGR of 9.9% during 2017-2023. Looking forward, the India rPET market is expected to reach a volume of 2,759 Kilo Tons by 2029, growing at a CAGR of 24.5% during 2024-2029.

Source: Analyst Reports, Expert Interviews and IMARC Group

Note: The above calculations are for the Calendar Year (Jan-Dec). 2017-2022 are Actual figures, 2023 figure is Estimated & 2024-2029 figures are Forecasted.

In 2023, non-food grade rPET dominated the market in India, comprising 98.9% of the total volume and reaching 662.5 kilotons, with a CAGR of 9.7% from 2017 to 2023. Within this category, fiber was the largest application, accounting for 77.1% of the volume and reaching 516.4 kilotons, exhibiting a CAGR of 10.5% during the same period. By 2029, food-grade rPET is expected to become the largest segment in India, accounting for 59.4% of the total market volume. This will be followed by non-food grade rPET, which is expected to account for 40.6% of the market.

Growth of rPET is fueled by rapid urbanization leading to increased consumption and waste generation, particularly in plastics. It is further elevated by favourable government regulations to compel industries to adopt sustainable practices. Numerous companies are introducing recycled materials into their supply chain with the objective to adhere to their environment regulatory requirements in the short term while meeting their net zero targets in the long-term for aligning with global environmental initiatives and responding to consumer demand for greener options. The Government of India introduced the Extended Producer Responsibility (EPR) which mandates the use of 40-60% recycled plastic in their packaging. (Source: PIB, Times of India, IMARC)

India: rPET Market: Breakup by Application: Sales Volume (in ‘000 Tons), 2017-2029

Source: Analyst Reports, Expert Interviews and IMARC Group

Note: The above calculations are for the Calendar Year (Jan-Dec). 2017-2022 are Actual figures, 2023 figure is Estimated & 2024-2029 figures are Forecasted.

Financial review

Analysis of the profit and loss statement

In the fiscal year 2023-24, operational revenues declined by 13.90%, to H975.34 Cr from H1,132.86 Cr in the previous year. This decline was attributed to drop in prices of yarns and fibre due to stiff competition faced by the Indian textile industry owing to cheaper fabrics from China, Vietnam, Bangladesh and other neighbouring countries,. Other Income of the Company reported a 56.69% growth over FY 2022-23 and accounted for only 2.57% share of the Companys total income, reflecting the Companys commitment to core business operations.

In proportion to the decline in revenues, total expenses of the Company witnessed a drop of 12.64% y-o-y from H1,050.15 Cr in FY 2022-23 to H917.43 Cr in FY 2023-24. Finance costs increased by 7.44% from H14.12 Cr in FY 2022-23 to H15.17 Cr in FY 2023-24 due to higher cost of funds. This changed in the last quarter of FY 2023-24, where the Company repaid its entire borrowings except the H2.71 Cr interest-free loan it owed to the UP State Government and a small ICD of H0.29 Cr payable to promoters group company. The Company is now almost debt-free. There was a marginal decrease in depreciation and amortisation expenses from H27.02 Cr in FY 2022-23 to H26.66 Cr in FY 2023-24. EBITDA margin reduced by 113 basis points from 11.38% in FY 2022-23 to 10.23% in FY 2023-24 and Net Profit margin decreased by 6 basis points from 6.47% during FY 2022-23 to 6.41% in FY 2023-24.

Analysis of the Balance Sheet

The capital employed by the Company increased 60.28% y-o-y from H699.07 Cr as on March 31, 2023, to H1,120.44 Cr as on March 31, 2024. Return on average capital employed, a measurement of returns derived from every rupee invested in the business, witnessed a reduction of 439 basis points from 14.78% in FY 2022-23 to 10.39 % in FY 2023-24. The increase in capital employed and fall in ROCE is mainly due to infusion of substantial capital through capital raising.

The net worth of the Company increased by 66.70% from H653.35 Cr as of March 31, 2023, to H1,089.15 Cr as of March 31, 2024, owing to infusion of fresh capital. Long-term debt reduced by 85.74 % to H2.44 Cr as on March 31, 2024. The debt-equity ratio of the Company was 0.28% in FY 2023-24 compared to 24% in FY 2022-23. Gross fixed assets (including capital work-in-progress) increased from H514 Cr in FY 2022-23 to H518.04 Cr in FY 2023-24. Inventory reduced by 6.75% from H220.91 Cr in FY 2022-23 to H206.01 Cr in FY 2023-24, owing to the muted market demand. Consequently, inventory days increased to 92 days in FY 2023-24 compared to 75 days in FY 2022-23. Receivables increased by 12.40% from H92.01 Cr in FY 2022-23 to H103.42 Cr in FY 2023-24. The Board of Directors announced a dividend payout of 30%. As on March 31, 2024, the market capitalisation was H2,496.68 Cr.

Key financial ratios

Particulars	FY 24	FY 23
Debtors turnover (x)	9.79	10.73
Inventory turnover (x)	4.48	5.45
Interest coverage ratio (x)	6.52	8.02
Current ratio (x)	6.04	1.70
Debt-equity ratio (x) (taking into account both short and long-term borrowings)	0.003	0.24
Operating Profit Margin (%) (EBIT)	9.87	10.00
Net Profit Margin (%)	6.41	6.47
Return on Equity (%)	7.17	11.85

Risk management at Ganesha Ecosphere

Ganesha Ecosphere employs a comprehensive Risk Management Framework to identify, evaluate, and proactively manage risks with a well-crafted mitigation plan. The Board, Risk Management & Strategic Planning Committee, and senior management at all levels promote a robust risk management culture, seamlessly integrating it into daily operations. This framework is an essential part of the companys structure, guiding the execution of strategic initiatives. The key risks identified by the management includes the following:

Product risk

The relevance of the companys products in the market may decline.

Mitigation

The company offers a diverse range of high-quality fiber and yarn products to meet various customer needs. Growing environmental awareness among consumers and conducive government policies is expected to drive product demand.

Competition risk

Availability of comparable products, as well as intense competition from existing players and new entrants, could affect profitability.

Mitigation

The company constantly seeks to develop its R&D capabilities to distinguish itself from its competitors and to enable it to introduce new products and different variant of existing products, based on customer preferences and demand and to increase its margins. The company is an industry leader in the RPSF segment and possesses one of the largest B2B facility of India in its Group.

Raw material risk

Volatility in raw material prices could impact business growth.

Mitigation

The Company possesses a diversified portfolio of 275+ suppliers across India and Nepal. Our collection network enables the supply of PET waste from various sources, ranging from post-consumer scrap to industrial scrap. Our extensive collection network helped us mobilise an average of 350 Tons of PET waste per day showcasing our ability to source adequate raw material to feed our production lines.

Quality risk

Failure to meet product quality standards and inefficient manufacturing process could hinder business growth.

Mitigation

The company is dedicated to enhancing its quality systems and their effectiveness to reduce the incidence of such risks while simultaneously improving its operational efficiencies. We employ a stringent quality control mechanism at each stage of the manufacturing process to ensure that our finished product conforms to the exact requirement of our customers. With a strong quality control team working on new product development/quality improvement, the focus of our Company continues to be on maintaining high levels of quality.

Customer concentration risk:

Over dependence on key customers could impact profitability if the company fails to retain them.

Mitigation

With diverse product portfolio comprising superior and eco-friendly products, our products have found wide acceptance in the domestic and overseas markets. We constant improvement in our product quality for meeting stringent customer requirements, we are able to capitalise on our reputation for quality, consistent performance and customer satisfaction in our existing markets and product verticals to target new customers. Our top 5 customers accounts for less than 20% of our revenue.

Forex risk

Fluctuations in foreign currency exchange rates could affect profitability.

Mitigation

The company manages currency risks by continuously monitoring exposures and prudently managing them within specified margins for each market segment. It hedges the exchange risk through forward contracts and natural hedging to minimise the impact of unfavorable fluctuations.

Regulatory risk

Evolving regulatory regulations including adverse application of corporate and tax laws, may adversely affect our business, prospects and results of operations

Mitigation

The Company possesses a robust policy framework that ensure compliance with the relevant laws and regulations. We consistently monitor regulatory changes, staying up-to-date with our compliance and preventing instances of non-compliance and promoting governance.

Human resource review

At Ganesha Ecosphere, our employees are essential to our business growth. As of March 31, 2024, the companys permanent workforce numbered 2,377. We strive to create a work environment that is safe, transparent, healthy, progressive, and inclusive, all to boost employee productivity.

Internal control systems and their adequacy

The internal control and risk management system are structured and applied in accordance with the principles and criteria established in the corporate governance practices of the organisation. It is an integral part of the general organizational structure of the Company and involves a range of personnel who act in a coordinated manner while executing their respective responsibilities. The Board of Directors offers its guidance and strategic supervision to the Executive Directors and management, monitoring and support committees.

Cautionary statement

The statements in the ‘Management Discussion and Analysis section describing the Companys objectives, projections, estimates and prediction may be considered as forward-looking statements. All statements that address expectations or projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market positioning, expenditures and financial results are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent developments, information or events.