Kanoria Energy & Infrastructure Ltd Management Discussions

MANAGEMENT DISCUSSION & ANALYSIS REPORT

We submit herewith our Management Discussion & Analysis Report on the Companys Business for the year ended 31st March, 2024. We
have attempted to include on all specified matters to the extent relevant or within limits that in our opinion are imposed by the Companys
competitive position.

OVERVIEW OF GLOBAL ECONOMY

Global economy continues to present a mixed picture. Multiple factors like the on-going geopolitical conflicts, wide-spread elevation of debt,
extreme weather conditions and elections in many parts of the world continue to contribute to the uncertainty of the Global Economic Outlook.
Encouragingly, inflation has softened over the highs of the previous year and is expected to continue to moderate. Global GDP growth is
expected to remain low at 3% for 2024. Country variations will continue, with different parts of the world growing at varied pace.

One of the key risks to the outlook is escalation of geopolitical conflicts leading to increase in energy prices, disrupting supply demand balance
and impacting overall global activity (Red Sea crisis).

OVERVIEW OF INDIAN ECONOMY

Despite uncertainty from adverse geopolitical developments and expansionary fiscal measures taken during the COVID-19 pandemic, the
Indian economy has demonstrated resilience and maintained healthy macroeconomic fundamentals.

Indian economy remained resilient with robust 7.6% growth rate of GDP in FY 2023-24 over and above 7% growth rate in FY 2022-23. India
has been a key growth engine for the world, contributing 16% to the global growth in 2023. (Source: PIB India & World Economic Forum).

Double-digit growth rate of Construction sector (10.7%), followed by a good growth rate of Manufacturing sector (8.5%) have boosted the GDP
growth in FY 2023-24. Private consumption in in the first half of FY 2023-24 was the highest since FY15 and this led to a boost to production
activity resulting in enhanced capacity utilisation across sectors.

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 H1 of FY2023-24. On the supply side, industry and services sectors were the primary growth drivers in H1
of FY2023-24. India has registered the highest growth among major advanced and emerging market economies during this period. As per the
IMF, India is likely to become the third-largest economy in 2027 in USD at market exchange rate. It also estimates that Indias contribution to
global growth will rise by 200 basis points in 5 years.

Macroeconomic stability and improvements in Indias external position, particularly significant moderation in the current account deficit and
revival of capital flows on the back of a comfortable foreign exchange reserves buffer, resulted in stability in the Indian rupee during FY 2023-
24. Further, inflationary pressures in India moderated majorly driven by proactive supply side initiatives by the Government, noted the Macro-
Economic Framework Statement 2024-25.

COMPANY & INDUSTRY STRUCTURE

Indias construction industry is engaged in growth, which mainly includes real estate and urban development projects. Given the nations
objective to modernize infrastructure and bring about a smart development in its cities, India is expected to emerge as the third largest
construction market by 2025. Demands of Asbestos Cement Sheet market have grown during the past couples of years because of the industrys
efforts in making in roads into rural markets. Demand of Asbestos Cement Pressure Pipes and Roofing sheets is encouraging due to policies of
various States Government. Our Company operates Asbestos Cement Pressure Pipes and Roofing sheets under the brand name of JAI KIRTI.
Asbestos Cement Pressure Pipes are used for Portable Water Supply, Casing Pipes in Bore well, Sewerage, Irrigation and Roofing Sheet products
are used as a roofing material for housing, warehousing and industrial purpose.

OPERATIONS

A Summary of key indication is given below detailed financial performance may be viewed from the Balance Sheet and schedules thereto in
the Annual Report.

Particulars		2023-24	2022-23
Production	A.C Pressure Pipe (in MT)	57794	56947
	A.C roofing Sheet ( in MT)	172865	150462
	A.C Pressure Pipe (in MT)	54596	55693
Sales	A.C roofing Sheet ( in MT)	172344	156250
	Gross Sales (Rs in Lacs)	34778	31329

COMPANY REVIEW

<p >Kanoria Energy & Infrastructure Limited located in Hamirgarh Bhilwara, Rajasthan. The Company is engaged in manufacturing of Asbestos
Cement Pressure Pipes Asbestos Cement A.C. Corrugated Roofing Sheets and allied products. The Company is the largest manufacturer of A.C.
pipes in India supplying thousands of kilometers of pipes all over India including many vital World Bank assisted water supply schemes. KIRTI
Brand A.C. pipes are manufactured at the most modern factory in Hamirgarh, Distt. Bhilwara (Rajasthan) India.

The Company also has most modern and sophisticated automatic plant of latest technology for manufacturing Asbestos Cement A.C. Corrugated
Roofing Sheets and allied products. The Asbestos Cement Corrugated Sheets are produced in the plant with the finest quality of raw material
and undergo stringent quality control measures at various stages during manufacturing under constant supervision of highly experienced
quality conscious professionals.

The "JAI KIRTI" A.C. Cement Corrugated Sheets and allied products are safe, durable and most economical for various applications. The products
under the umbrella brand of "JAI KIRTI" are intended to create a benchmark in the category of Industrial and Housing roofing systems.

OPERATION REVIEW

During the year under review, your Company has achieved a turnover of ^ 34777.57 Lakh against ^ 31329.21 Lakh during previous year. The
Company has reported a Profit after tax of ^ 786.06 Lakh as against ^ 954.68 Lakh during previous year. The Company is operating in single
segment i.e. Asbestos Cement pressure pipes and sheets.

ENVIRONMENT & SAFETY

We are conscious of the need of the environmentally clean and safe operations. Our policy requires all operations to be conducted in way
so as to ensure safety of all concerned, compliance of statutory and industrial requirement for environment protection and conservation
of natural resources.

HUMAN RESOURES AND INDUSTRIAL RELATION

Management recognizes that employees represent our greatest assets and are strong pillars of organization and it is only because of motivated,
creative and committed employees, We have achieved our aims. Hence, the Company attempts to take good care of welfare and betterment of
employees. The Company takes initiative like training and development for its people to increase the performance. The Company has taken
various steps to improve and enhance skill of its people. The industrial relations remained cordial in our plant. The total strength as at the end
of the financial year 2023-24 was 479 employees.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has appropriate systems for Internal Control. The systems are improved and modified continuously to meet with changes in
business conditions, statutory and accounting requirements.

The Company has strong Management Information System, which is an integral part of control mechanism. The Audit Committee of Board of
Directors reviews the efficiency and effectiveness of internal control systems and suggests the solution to improve and strengthen. The Internal
control system were tested during the year and no material weakness in design or operation were observed.

RISK AND CONCERNS

The Company believes that an effective, consistent and sustainable risk management framework is essential part of the work culture. Risk
management must be fully integrated into the organisations governance policies. It is vital to identify, assess and act to minimise various risks.
Some of the key risks identified include:

Uncertainty about demand conditions given sluggish global economic recovery and its likely contagion effects, regulatory issues regarding
environment clearance and land acquisitions as well as sector specific issues like high cost of capital have stagnated the growth in the economy
of our country.

CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions
may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from those
expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices,
cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments
within India and the countries in which the Company conducts business and other incidental factors.

	FOR AND ON THE BEHALF OF BOARD OF DIRECTORS
	Sd/-	Sd/-
Place: New Delhi	Sanjay Kumar Kanoria	Rajiv Lall Adya
Date: 15th June, 2024	Managing Director	Director
	DIN: 00067203	DIN: 06915169