Jash Engineering Ltd Management Discussions

ECONOMIC REVIEW

GLOBAL ECONOMY

In the face of persistent challenges and emerging opportunities in 2024, te global economy has remained buoyant. As nations navigate the complexities of post-pandemic recovery, geopolitical tensions, and climate change, the world has seen a dynamic interplay of economic forces. This year has been characterized by significant technological advancements, shifts in trade patterns, and evolving consumer behaviours, all contributing to a more interconnected and interdependent global market. Despite varying growth trajectories across regions, the overarching theme of 2024 has been the relentless pursuit of sustainable development and inclusive growth, setting the stage for a transformative decade ahead.

Global growth, estimated at 3.2% in 2023, is projected to continue at the same pace in 2024 and 2025. This steady, albeit modest pace of expansion is influenced by near-term factors such as still-high borrowing costs and the withdrawal of fiscal support, alongside longer-term impacts from the COVID-19 pandemic and Russias invasion of Ukraine. Additional challenges include weak productivity growth, increasing geoeconomic fragmentation, and evolving conflicts in the Middle East. Despite these hurdles, the global economys continued emphasis on innovation and sustainability offers a promising outlook for the years to come.

East Asia and Pacific

Growth in the East Asia and Pacific (EAP) region is projected to slow from 5.1% in 2023 to 4.8% in 2024, primarily due to a deceleration in China. Excluding China, regional growth is expected to rise to 4.6%, driven by a recovery in global trade. Manufacturing investment in China remains strong, supported by demand for electric vehicles and batteries, and government backing for key sectors like semiconductors. However, real estate investment continues to decline amid ongoing sector downturns. Elsewhere in the region, early 2024 saw growth strengthening due to recovering exports and improved manufacturing activity. Despite a more balanced outlook, risks remain tilted to the downside, including geopolitical tensions, trade policy fragmentation, and potential climate-related disasters, while faster-than-expected U.S. growth could positively impact the region.

Europe & Central Asia

Growth in Europe and Central Asia (ECA) is expected to slow to 3.0% in 2024 and 2.9% in 2025, driven by decelerations in Russia andTurkiye. Excluding these economies and Ukraine, growth should strengthen as inflation eases, monetary policy rates are cut, and exports to the euro area increase. Geopolitical risks, especially related to Russias invasion of Ukraine, and policy uncertainty remain significant downside risks to the outlook.

Latin America and Caribbean

Growth in Latin America and the Caribbean (LAC) is forecast to decelerate from 2.2% In 2023 to 1.8% in 2024, before picking up to 2.7% in 2025. The2024 forecast has been revised downward due to a significa nt downgrade for Argentina. Downside risks include tighter global financial conditions, high local debt levels, and potential slowdowns in China impacting exports. Conversely, stronger-than-expected U.S. growth could boost regional growth, especially in Central America and the Caribbean.

Middle East and North Africa

After slowing to 1.5% in 2023, growth in the Middle East and North Africa (MNA) region is expected to rise to 2.8% in 2024 and 4.2% in 2025, driven by a gradual resumption of oil production. The 2024 outlook has weakened due to extended oil production cuts and ongoing conflict in Gaza. Downside risks include escalating conflicts, local violence, tighter global financial conditions, and natural disasters, while stronger-than-expected U.S. activity could present an upside risk.

South Asia

Growth in the South Asia (SAR) region is projected to slow from 6.6% in 2023 to 6.2% in 2024, primarily due to moderation in India. Indias growth is estimated to have reached 8.2% in FY 2023/24, driven by strong industrial and services activity, despite a slowdown in agriculture. Regional growth is expected to maintain at 6.2% through 2025-26,

Sub-Saharan Africa

Sub-Saharan Africas growth is expected to accelerate to 3.5% in 2024, averaging around 4% in 2025-26, driven by declining inflation and improvements in private consumption and investment. However, this recovery is tempered by recent political instability and conflict, which have delayed progress in parts of the region. Challenges include limited gains in per capita income and heightened fiscal constraints due to rising debt-service costs, with risks tilted to the downside from global geopolitical tensions, economic slowdowns in key markets like China, and increased climate-related risks.

INFLATION & MONETARY POLICIES

Global inflation has continued its downward trend but remains above target in most advanced economies and in about one-fourth of inflation-targeting emerging market and developing economies (EMDEs). The initial phase of post-pandemic disinflation was driven by falling energy prices and easing supply chain pressures. However, the recent pace of consumer price disinflation has slowed due to a partial rebound in energy prices and a notable deceleration in the decline of core inflation rates. Global headline inflation is projected to decrease from an annual average of 6.8 % in 2023 to 5.9% in 2024 and 4.5 % in 2025, with advanced economies expected to reach their inflation targets sooner than EMDEs.

Faster-than-expected declines in inflation could occur if labour force participation continues to improve, allowing central banks to advance their plans for easing monetary policies. As the global economy approaches a soft landing, the near-term priority for central banks is to ensure inflation stabilizes smoothly. This involves carefully balancing the timing of policy adjustments to avoid both premature easing and delays that could result in inflation undershooting targets.

GLOBAL TRADE & SUPPLY CHAIN

Global trade growth is projected to rise to 2.5% this year, showing improvement from last year but still falling short of pre-pandemic averages. This growth is expected to strengthen to 3.4% in 2025, driven by expansions in the euro area and emerging market and developing economies (EMDEs) excluding China, and remain steady in 2026. World merchandise trade volume is forecasted to grow by 2.6% in 2024 and 3.3% in 2025, as the demand for traded goods rebounds following a contraction in 2023. Last year, trade volume decreased by 1.2%, following a 3.0% expansion in 2022 despite the outbreak of war in Ukraine. The lingering effects of high energy prices and inflation have particularly impacted demand for trade-intensive manufactured goods. However, a gradual recovery is anticipated over the next two years as inflationary pressures ease and real household incomes improve.

The Red Sea remains a critical maritime route for international trade, with around 15% of global trade passing through it. The Suez Canal at its northern end handles approximately 12% of world trade, connecting Asian ports with Mediterranean ports in Europe and North Africa. Recent attacks on commercial ships in the Red Sea and the Gulf of Aden, which began on November 19,2023, have significantly disrupted trade. There are concerns that a prolonged crisis could severely impact the global economy and reignite global inflationary pressures.

Overall, the global economy in 2024 is navigating a complex landscape marked by moderate growth, easing inflation, and persistent geopolitical tensions. While advanced economies may experience slower growth, emerging markets present significant opportunities. Policymakers face the dual challenge of curbing inflation while fostering sustainable economic expansion. The focus on fiscal consolidation and structural reforms will be essential to rebuild budgetary capacity and enhance productivity. Additionally, labour shortages and high debt levels remain significant challenges. Furthermore, the global trade growth is expected to be subdued, reflecting ongoing restrictive credit conditions and anaemic global trade and investment. Effective structural reforms and international cooperation will be crucial in steering the global economy towards stability and resilience amidst these uncertainties.

Source: World Economic Outlook2024 - IMF, Global Economic Prospects -World Bank Reports

INDIAN ECONOMY

Indias economy has remained in a bright spot with sustained growth, underpinned by several positive indicators. These include a narrowing current account deficit, near-record foreign exchange reserves, and a healthy fiscal position. The governments commitment to fiscal consolidation, coupled with the central banks disciplined monetary policy, has established a strong foundation for continued economic expansion. Strategic reforms such as hefty investments in infrastructure—both physical and digital—and initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme have been pivotal in enhancing the countrys growth and self-reliance. Furthermore, healthy balance sheets across the central government, banking sector, and financial institutions, along with targeted government incentives, are anticipated to set a fresh capex cycle in motion.

A significant aspect of the Interim Budget FY24-25 is the allocation of capital expenditure, witnessing an 11.1 % increase to Rs. 11,11,111 crores, constituting 3.4 % of the GDP. Real GDP rose by 7.6 % in 2023-24 compared to 7.0 % growth in 2022-23, according to the second advance estimates (SAE) of the National Statistical Office (NSO).This acceleration was powered by solid expansion in investment demand, which more than offset the slowdown in private consumption demand and the drag from external demand. Improving world trade prospects could support external demand. However, headwinds from geopolitical tensions, volatility in international commodity prices, and geoeconomic fragmentation pose risks to the outlook. Taking all these factors into consideration, real GDP growth for 2024-25 is projected at 7.2 %.

Indias economic growth is driven by a combination of factors including a large and young workforce, robust domestic consumption, significant investments in infrastructure, and advancements in technology and innovation. The service sector, particularly IT and finance, is rapidly expanding, contributing substantially to the economy. Additionally, government policies aimed at improving the ease of doing business and boosting manufacturing are playing a crucial role. These elements collectively position India for strong and sustained economic growth in the coming years.

Indias economy outpaced other economies during the first half of FY24, propelled by robust demand and increased investment. As of May 2024, the annual retail price inflation in India eased to 4.75%, a drop from the previous month, staying within the tolerance band set by the Reserve Bank of India (RBI). Indias merchandise exports in FY25 began on a positive note, recording a growth of 1.08 % year-on-year in April 2024. This comes amid marginally improved economic activity and consumer sentiment in Europe and a steady US economy. The main drivers of export growth were electronic goods, organic and inorganic chemicals, petroleum products, and pharmaceuticals. Imports increased by 10.3 % year-on-year, leading to an increase in the merchandise trade deficit by 32.3 % year-on-year in April 2024. EXIM Bank of India has forecasted that merchandise exports will grow by 12.3 % year-on-year in Q1 of FY25. This is due to sustained momentum in the services and manufacturing industries and an expected easing of monetary tightening that spurs global demand.

The crux of the foregoing discussion is that the industrial and service sectors of the Indian economy are performing well, backed by brisk domestic demand and partially by tentative external demand. Domestic manufacturing will likely receive stronger external support in the upcoming months. Modestly improved economic activity and consumer sentiment in Europe and a steady US economy have aided Indias exports in April. Many organizations in the US and Europe focusing on reindustrialization have increased their efforts. The majority of these organizations are focusing on enhancing supply chain resilience, which can benefit Indias manufacturing firms as part of the China Plus One strategy.

The Indian economy shows promising signs with the RBI forecasting a 7% real GDP growth for FY25,

supported by the prospects of robust rabi harvesting, manufacturing profitability, and resilient services. While risks such as geopolitical tensions and supply chain disruptions persist, lower input prices and moderated food inflation are expected to positively impact output growth and export prospects. With efforts to enhance export competitiveness and stable inflation rates, the outlook for Indias economic growth remains favourable.

Source: RBI Press release & Annual report FY24, Economic Reports by Department of Economic affairs, IBEF

WATER AND WASTEWATER TREATMENT INDUSTRY STRUCTURE AND

DEVELOPMENTS

GLOBAL INDUSTRY DEVELOPMENTS

Water is a vital national resource and is indispensable for human civilization, living organisms, and natural habitats. It is intricately linked to every aspect of development, driving economic growth, supporting healthy ecosystems, and being fundamental to life itself. Water is essential for drinking, cleaning, agriculture, industrial processes, recreation, animal husbandry, and electricity generation, among many other uses. Despite its importance, less than 3 % of the water on Earth is fresh water. Of this, a bout 75.2% is frozen in polar regions, and another 22.6% is present as groundwater. The remaining fresh water is found in lakes, rivers, the atmosphere, soil moisture, and vegetation. Consequently, only a very small proportion of fresh water is readily available for human use.

Water is a recyclable resource, but the availability is limited and the gap between the supply and demand is widening over time. The water and wastewater treatment industry globally, is undergoing significant transformations, driven by increasing demand for clean water, stringent environmental regulations, and rapid technological advancements. As global populations grow and urbanize, the pressure on water resources intensifies, necessitating innovative solutions for water management. This industry is at the forefront of addressing some of the most pressing environmental challenges of our time, including water scarcity, pollution, and climate change. Major developments in the sector are shaping the future of water treatment, with significant investments in advanced technologies, infrastructure projects, and sustainable practices. These developments are not only enhancing the efficiency and effectiveness of water treatment processes but also contributing to the sustainability and resilience of water systems across the globe.

According to the Fortune Business Insights report, global water and wastewater treatment market size was valued at USD 323.32 billion in 2023 and is projected to grow from USD 346.41 billion in 2024 to USD 617.81 billion by 2032, exhibiting a CAGR of 7.5%. North America dominated the water and wastewater treatment market with a market share of 38.67% in 2023. Water and wastewater treatment is necessary to meet the growing demand for clean water resources, serving municipal, agricultural, and critical industrial processes. Currently, over 40% of the global population resides in regions experiencing acute water stress. With only about 1% of the Earths water being freshwater, countries grappling with severe water scarcity are compelled to carry out treatment to convert seawater into freshwater via the desalination process.

Governments acrossthe globe are implementing stringent regulationsto mitigate water pollution and promote sustainable water stewardship. Concurrently, rapid urbanization and demographic expansion are exerting pressure on extant water resources and wastewater management systems. Urban locales are responsible for generating substantial quantities of wastewater from household activities, placing a burden on municipal treatment facilities. Furthermore, insufficient sanitation in burgeoning regions aggravates water pollution challenges, necessitating substantial investments in wastewater treatment infrastructure. Governments and local authorities are progressively channelling funds into the expansion and modernization of wastewater treatment plants to cater to expanding populations and enhance water quality standards. This scenario presents a plethora of opportunities for water treatment equipment manufacturers to leverage.

One of the principal impediments to the adoption of wastewater treatment is the considerable Initial capital investment required for the establishment of treatment plants and associated infrastructure. Cutting-edge treatment technologies, such as membrane filtration, reverse osmosis, and ultraviolet disinfection systems, entail hefty initial outlays for equipment acquisition, installation, and the construction of facilities. This

capital-intensive aspect of wastewater treatment projects represents a financial challenge for industries and municipalities, especially in areas with constrained fiscal resources.

Beyond capital expenditures, wastewater treatment operations incur continuous operational and maintenance costs. Factors such as energy consumption, chemical use, labour, and regular equipment upkeep contribute to the total operational costs of treatment facilities. Additionally, the intricacy of advanced treatment technologies often necessitates trained personnel for their operation and supervision, thereby increasing operational expenses. Striking a balance between the imperative for effective treatment and the associated operational costs remains a significant challenge for stakeholders in the water and wastewater treatment industry.

INDIAN INDUSTRY DEVELOPMENTS

As we step into the year 2024, India stands at a crucial juncture in its journey towards sustainable development. The nations water and wastewater treatment industry is witnessing a transformative phase, driven by the increasing urbanization, industrialization, and the pressing need for sustainable water management solutions. India had abundant supply of water resources. However, from being a water abundant country, India is experiencing a growing threat of water scarcity due to the combined impact of population pressure and urbanization. At present, it is sustaining 18 % of world population with only 4 % of global water resources. Therefore management of water resources has assumed great importance. Today availability of water resources is a major issue and is a big challenge facing our country.

Increasing concerns regarding public health have prompted governments globally, including the Government of India, to prioritize the enhancement of safe drinking water accessibility and the mitigation of pollution stemming from the discharge of untreated or inadequately treated wastewater by diverse industries, such as power generation facilities and refineries. This increased emphasis on improving the standard of living in urban regions is projected to catalyse substantial investments in the refurbishment of existing waste management systems and the establishment of new infrastructures. These initiatives are expected to provide multiple avenues for revenue expansion for entities engaged in the Indian Water and Wastewater Treatment Market.

According to Mordor Intelligence research, The Indian Water and Wastewater Treatment Technology Market is projected to escalate from a valuation of USD 1.02 billion in 2024 to USD 1.71 billion by 2029, registering a Compound Annual Growth Rate (CAGR) of 10.78%. The market is categorized by application into Municipal and Industrial segments, with the Municipal segment commanding a dominant market position. Wastewater treatment is a critical component for numerous urban centres across India, employing a variety of treatment technologies tailored for specific objectives, including initial treatment, primary and secondary treatment, tertiary treatment, Biological Nutrient Removal (BNR), resource recovery, and energy production. This has led to an escalating demand for advanced treatment technologies within the country.

The burgeoning requirement for water treatment is anticipated to drive the demand for essential equipment that is pivotal in controlling, managing, and processing water. The filtration equipment market has witnessed substantial application across both private and residential sectors, while the demand for disinfection equipment is expected to surge due to its utilization in urban and industrial wastewater treatment, as noted by industry leaders. In the context of technological advancements, tertiary water treatment is poised to present intriguing growth prospects, as evidenced by its increasing application in the treatment of municipal wastewater.

Government-led initiatives such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), National Mission for Clean Ganga (NMCG), Dal Deevan Mission, and Community Drinking Water Schemes are instrumental in propelling the growth trajectory of the Indian water and wastewater treatment market. These programs underscore the commitment to ensuring sustainable water management and sanitation practices, thereby fostering a conducive environment for market expansion and technological innovation in the sector.

SCOPE OF WATER & WASTEWATER TREATMENT INDUSTRY

Water, the lifeblood of our planet, is a finite resource that requires careful management. With the increasing

global population and rapid urbanization, the demand for clean and safe water has never been higher. This has led to the growth of the water treatment industry, which plays a crucial role in ensuring the availability of water that is safe for consumption and other uses. The industry employs various technologies to remove harmful substances from water and improve its quality.

As we move forward into FY 2024-2025, the impact of technological progress on production processes has led to a significant increase in wastewater generation. Industries involved in the processing of chemicals, pesticides, rare metals, and other potentially harmful substances are producing effluents that pose a serious environmental risk. The availability of clean, fresh water is constrained not only by quantity but also by quality, posing threats to human health, food security, and socioeconomic development. It is worth noting that severe water scarcity affects at least 40% of the global population annually. This underscores the critical need for effective water treatment solutions.

Several countries are making significant strides in reusing wastewater to address water scarcity and promote sustainability.

Israel: Israel is a global leader in wastewater reuse, treating and reusing about 90% of its wastewater for agricultural purposes.

Singapore: Singapore has developed an advanced water management system called NEWater, which treats and reuses wastewater to meet up to 40% of its water needs.

Australia: Various regions in Australia, such as Perth, have implemented extensive wastewater recycling programs to combat drought and water shortages.

Spain: Spain reuses a significant portion of its treated wastewater, particularly in agriculture and landscape irrigation.

Indonesia: Jakarta capital of Indonesia is congested, polluted, prone to earthquakes and rapidly sinking, with over a third of the city set to be under the Java Sea by 2050. Now the government is in the process of leaving, moving Indonesias capital to the island of Borneo.

United States: States like California and Florida have set ambitious targets for wastewater reuse to address water scarcity issues.

India: Rapid urbanization and increased focus on infrastructural development leading to increased demand for municipal water treatment and industrial wastewater management. Various initiatives are undertaken by the government such as Jal Jeevan Mission, Jal Kranti Abhiyan, Jal Shakti Abhiyan, National rural drinking water programme etc.

These successful models are inspiring other regions to invest in similar technologies and practices, expanding the market for water treatment equipment. In regions facing severe water scarcity, such as the Middle East, large-scale desalination projects are driving the demand for sophisticated water treatment technologies.

As the global community continues to prioritize sustainable development and environmental protection, the water treatment equipment industry stands at the forefront of these efforts. With a strong focus on innovation, compliance, and efficiency, the industry is well-positioned to capitalize on the growing demand for advanced water treatment solutions. The future of water treatment equipment is bright, promising substantial growth and significant contributions to global water security and public health.

OPPORTUNITIES

Expanding Access to Clean Water in Rural India

In the last decade, the World Bank has financed projects worth USD 1.2 billion to help the Indian government deliver clean drinking water to rural communities, benefiting over 20 million people. In states like Uttarakhand, the steep Himalayan terrain has made it challenging to build and maintain water infrastructure, forcing villagers, particularly women, to walk over 1.6 km for fresh water. This scenario creates a significant opportunity for water treatment equipment manufacturers to develop and provide solutions that address these unique

challenges.

Rising Sea level

The rising sea levels worldwide are exacerbating the challenge of maintaining clean and accessible freshwater sources, as saltwater intrusion contaminates supplies.This has led to a heightened demand for advanced water treatment solutions, driving significant growth in the water treatment equipment market. Technologies such as reverse osmosis, UV purification, and advanced filtration are becoming essential in both coastal and inland regions to ensure a sustainable water supply.

One stark example of the consequences of rising sea levels is the ongoing crisis in Jakarta, Indonesias current capital. The city faces severe congestion and pollution issues and is the fastest sinking city in the world, with over a third of it predicted to be underwater by 2050. This critical situation underscores the urgent need for effective water treatment solutions to mitigate the impacts of saltwater intrusion and ensure a reliable water supply.

Ensuring Consistent Water Supply in Urban Areas

Indias fast-growing cities face significant challenges in providing continuous water supply, with many urban households receiving water for only a few hours each day, if at all. This issue severely impacts the poor, women, and children. As urbanization continues, the demand for reliable and safe drinking water will increase, presenting a substantial market for advanced water treatment solutions.

Meeting the Rising Demand for Clean Water

With the global population on the rise, the need for clean and safe drinking water is escalating. This trend offers considerable opportunities for companies that produce innovative water treatment equipment designed to effectively treat and purify water. Increased awareness of waterborne diseases and pollution further drives the demand for advanced water treatment solutions, allowing companies to expand their market share by offering dependable and effective equipment.

Revitalizing River Water Management

Since 2011, the World Bank has supported efforts to rejuvenate Indias rivers through projects valued at USD 1 billion. These initiatives aim to establish river management institutions and construct infrastructure to maintain clean rivers. The Jal Jeevan Mission, initiated by the Jal Shakti Ministry, aims to provide piped drinking water to 146 million households in 700,000 villages by 2024, backed by a USD 51 billion budget. This mission significantly increases the demand for water treatment equipment.

Enhancing Irrigation and Flood Management for Agriculture

India has invested heavily in infrastructure to support irrigated agriculture nationwide, increasing the demand for rainwater treatment equipment.This investment presents a wide range of market growth opportunities for water treatment solutions tailored to agricultural needs.

Complying with Environmental Regulations

Globally, governments are increasingly focusing on environmental concerns, including water pollution. New regulations require industries to treat their wastewater before discharge, creating a substantial market for water treatment equipment that meets these stringent requirements.

Leveraging Technological Innovations

Advancements in technology are enabling manufacturers to produce more efficient and cost-effective water treatment equipment. Innovations in membrane filtration, ultraviolet disinfection, and advanced oxidation processes are significantly improving the effectiveness of water treatment solutions. These technological improvements help companies address complex water treatment challenges and enhance the quality of treated water, thereby boosting market share and competitiveness.

Desalination Technologies

With rising water scarcity, advancements in desalination technologies are making freshwater production more cost-effective and energy-efficient, especially in arid regions. This provides a reliable source of fresh water and presents a growth opportunity for water treatment equipment manufacturers.

Pub lie-Private Partnerships

Collaborations between governments and private companies can lead to significant investments in water infrastructure. These partnerships improve access to clean water and drive industry growth, creating new opportunities for companies in the water treatment sector.

Threats

Intense Market Competition

The water treatment equipment manufacturing industry is highly competitive, with a mix of established players and new entrants. Globally, there are approximately 350 companies in this sector, ranging from large multinational corporations to regional and country-specific firms. Around 15% of these competitors are large global players, while 50% are focused on specific countries. To withstand global competition, key players are employing various strategies such as product launches, agreements, acquisitions, collaborations, joint ventures, and mergers. This intense competition can lead to pricing pressures and reduced profitability.

Impact of Economic Conditions

The water and wastewater treatment industry faces several economic challenges in the short and medium term. These include shifting consumer preferences in a potential economic downturn, changes in industrial policies to address growing environmental concerns, and significant fluctuations in raw material costs due to ongoing geopolitical tensions and anticipated economic turbulence. These factors can lead to decreased revenue and profitability for companies in the industry.

Supply Chain Vulnerabilities

Manufacturers of water treatment equipment depend on a complex supply chain that involves raw materials, components, and transportation. Disruptions in the supply chain, whether due to natural disasters, political instability, or global pandemics, can significantly impact the availability and cost of these resources, posing a threat to production and profitability.

Environmental Compliance Challenges

While environmental regulations can create opportunities for water treatment equipment manufacturers, non-compliance with these regulations poses significant risks. Failure to adhere to environmental standards can result in hefty fines and damage to the companys reputation, affecting its market position and profitability.

Climate Change

Extreme weather events such as droughts and floods are impacting water availability and quality, posing challenges for water treatment systems to adapt and remain effective.

Aging Infrastructure

Many existing water treatment facilities are operating with outdated equipment, which requires significant investment to upgrade and maintain.

SEGEMENTWISE PERFORMANCE

The business activities of the Group predominantly fall within a single primary business segment viz “Manufacturing and trading of varied engineering products for general engineering industry, water and wastewater industry, power plant and bulk solids handling industry". There is no separate reportable business segment. As part of secondary reporting for geographical segments, the Group operates in two principal geographical areas i.e. in India, its home country, and other countries. The following table presents revenue from operations, segment assets and capital expenditure regarding geographical segments:

Particulars	Current Year Ended 31st March 2024	Previous Year Ended 31st March 2023
Amt in Lakhs	Audited	Audited
Segment revenue from external customers
Within India	20576.81	19306.04
Outside India	30990.17	20892.58
Revenue from Operations	51566.98	40198.62
Segment Assets
Within India	44876.16	32004.01
Outside India	15549.39	12847.85
Total Assets	60425.55	44851.86
Capital Expenditure
Within India	1973.81	996.92
Outside India	462.28	614.93
Total Capital Expenditure	2436.09	1611.85

FUTURE & FORWARD OUTLOOK

As we anticipate the future, the demand for clean and safe water is poised to grow substantially. This scenario presentsa lucrative growth opportunity for man ufacturers of water treatment equipment. With rising concerns a bout water quality and scarcity, the necessity for innovative and efficient water treatment solutions is expected to increase, revealing a significant market potential in both developed and developing countries.

The evolution of the water treatment industry in the forthcoming years will be significantly influenced by technological advancements, with a focus on the creation of new, improved water treatment technologies that are more efficient and environment friendly. Companies that can stay abreast of these technological advancements and integrate them into their products will gain a competitive edge in the market. Another pivotal trend that will shape the water treatment industry is the escalating awareness about the importance of water conservation. Consequently, companies that manufacture water treatment equipment must concentrate on both supplying clean water and minimizing water waste. This can be accomplished by constructing intelligent water treatment systems capable of monitoring and regulating water usage. There will also be an increased demand for decentralized water treatment systems that can be installed in remote locations without access to a centralized water treatment facility. This represents an opportunity for companies that manufacture portable and scalable water treatment equipment.

In 2024, key trends in the water treatment industry include water quality monitoring, desalination, Industrial Internet of Things (lloT), bio-based water remediation, carbon-based purification, and energy-efficient solutions. Startups are developing technologies such as membrane filtration, ultraviolet disinfection, advanced oxidation processes, and smart monitoring systems. These innovative methods not only enhance the efficiency and effectiveness of water treatment processes but also benefit municipal water supplies, manufacturing, agriculture, and more. Improved desalination techniques are providing fresh water in water-scarce regions, while modular water treatment systems offer flexibility and scalability.

By staying at the forefront of industry trends and continuing to innovate, Jash Engineering Limited is well-positioned to capitalize on the growing demand for advanced water treatment solutions. We manufacture a wide range of customized equipment for Water and Sea Water Intake Systems, Water and Wastewater Pumping Stations and Treatment Plants, Desalination Plants, Storm Water Pumping Stations, Water Transmission Lines, Hydropower Generation, and various industries including Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemical, Fertilizers, and other process plants. As market leaders, we have a vision to lead the industry and earn respect for ourselves and our stakeholders through growth, innovation, and a strong customer focus. Our aim is to:

Achieve sustainable growth by expanding our product range and geographical reach with new manufacturing units, such as the recent inauguration of a unit in Glasgow, UK.

Focus on leveraging technological advancements and recent acquisitions to enhance our product offerings. Grow30% in terms of Revenue in FY25 and reach Tl,000 crore by FY28.

Company will sustain strong growth rate and is likely to achieve revenue target given the

Specialized skillset and product set of Jash

Government bodies (in India as well in key market like US) spending on water infrastructure, and Environmental regulations and ESG norms for process industries due to which margins are likely to be volatile with some upward improvement.

The future is promising for businesses that produce water treatment technology and companies that can keep up with these trends and create cutting-edge, effective products will be well-positioned to succeed in the years to come.

RISKS AND CONCERNS, INTERNAL CONTROLSYSTEMS AND THEIR ADEQUACY

Risk Management Strategy

Our Company has crafted and executed a risk management policy that is proactive and anticipatory in nature, enabling us to sustain a moderate-to-low risk profile.This is achieved through a clearly defined risk appetite set by the Board of Directors, coupled with the systematic identification and evaluation of potential risks. Moving forward, we will continue to refine our risk management framework, leveraging technological advancements to align with the evolving landscape of our restructured business operations.

Foreign Exchange Exposure

We acknowledge that fluctuations in foreign currency exchange rates can significantly influence our operational results and financial standing. To mitigate this risk, the Company adheres to a well-established Foreign Exchange Risk Mitigation Policy, which includes the implementation of strategic hedging practices. Nonetheless, global, and domestic economic and political developments, which are outside our control, could impact our projections and directly affect our business activities.

Process Re-engineering and Compliance

The Company has embarked on a process re-engineering journey, integrating process elements designed to monitor and adhere to a multitude of internal and external business requirements. Our commitment to exceeding standard compliance will remain a fundamental principle guiding our business processes. We are dedicated to leading the industry by expanding the role of technology in monitoring and meeting compliance obligations.

Internal Control Systems

The integrity of our internal control systems is paramount to the health and success of our Company across all sectors. An effective internal control framework is the cornerstone for fostering and enhancing shareholder trust and value, as well as for improving the quality of our business and enterprise as a whole.

Adequacy and Review of Internal Controls

Our internal control system is robust and proportionate to the size and nature of our business. It facilitates the prompt compilation of accounts and the generation of Management Information Reports, while ensuring compliance with relevant laws and regulations. The efficacy of our internal controls is regularly assessed by an independent internal audit function and by our statutory auditors. The Audit Committee of the Board conducts periodic reviews of the internal audit function and oversees the implementation of recommendations to bolster the internal control mechanisms.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Financial performance of the Company for the year 2023-24 is described in the Directors Report under the headings Summarized Profit & loss Account and State of Companys Affairs & Review of operations.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Our Company is adeptly steered by a cadre of highly experienced senior leaders, a skilled middle management, and a vigorous junior management team, all of whom bring their expertise to bear on the successful execution of large and complex projects. We are steadfast in our commitment to cultivating a constructive work environment, guided by our policies and the finest HR practices, which bolster transparency and ensure equitable opportunities for every member of our team.

We maintain an unwavering zero-tolerance stance against any form of harassment, whether it be racial, sexual, religious, gender-based, or any other category safeguarded by law. Our conviction is strong: our employees are the cornerstone of our business triumphs. Thus, we dedicate ourselves to attract and retain the most exceptional talent, seeking individuals whose unique skill sets, interests, and experiences will enrich our business.

The Company has undertaken numerous initiatives to enhance business operations by improving organizational efficiency, supporting process changes, and implementing a suite of employee engagement programs. These efforts have contributed to a significant increase in productivity. We have also invested considerable resources in developing leadership qualities and strengthening technical and functional expertise to meet our future talent needs.

Jash Engineerings growth is driven by our dedicated employees. To ensure they feel valued and committed to the company, we continuously improve our campus infrastructure. In line with this commitment, we have invested in a sports turf at Unit II, where we host a Turf League season and use the same turf for training for our Jash Premier League, now in its sixth season. Additionally, we are establishing a restaurant adjacent to the turf, which will be operated under lease. Employees can dine there at a discount, and the lease rent will fund various employee engagement activities.

By focusing on these initiatives, we aim to create a supportive and engaging environment that fosters employee loyalty and satisfaction, ultimately driving the Companys success. Our focused approach to human resource management encompassing training, incentivization, and equitable practices in promotion, transfer, and remuneration h as been instrumental in realizing our objectives and sustaining our competitive edge in product quality, pricing, brand value, and service offerings. The cultivation of talent and adherence to the finest HR practices will persist as distinguishing factors that fortify our Companys position.

As of March 31, 2024, our workforce has grown to include over 1,075 dedicated employees, both on our payroll and on contractual terms. The Company is resolute in its commitment to providing essential training and development programs to continually upskill and reskill our employees. The management enjoys a robust and amicable relationship with employees across all levels, and together, we are united in our pursuit to achieve the corporate goals and benchmarks we have established for the Company.

Cautionary Statement

The information presented in the Boards Report and the Management Discussion and Analysis includes projections and anticipations about future events, which can be identified as forward-looking statements under the relevant securities laws and regulations. It is important to recognize that a multitude of factors could cause actual outcomes to differ materially from what has been forecasted. These factors encompass economic fluctuations, alterations in government regulations, tax laws, other statutes, market dynamics, and a range of related and incidental elements. Investors and stakeholders should be aware that forward-looking statements are not guarantees of future performance. They involve known and unknown risks, uncertainties, and assumptions that may cause the companys actual results, performance, or achievements to be significantly different from any future results, performance, or achievements expressed or implied by such statements. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Stakeholders are advised to exercise caution and not to place undue reliance on these forward-looking statements when making investment decisions.