KSE Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian animal feed market, a critical component of the countrys rapidly expanding livestock sector, reached a valuation of

INR 1,110.0 billion in 2024. Looking ahead, the market is projected to almost double, reaching

INR 2,025.1 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.9% during the forecast period of 2025 2033.

This growth trajectory is fueled by several factors:

• Rising per capita meat consumption, driven by increasing disposable incomes, urbanization, and changing dietary preferences, is boosting demand for high-quality animal protein.

• Favorable government initiatives and livestock development schemes are supporting farmers through subsidies, training, and infrastructure improvements, thereby driving feed consumption.

• Growing emphasis on feed quality and safety, spurred by stricter regulations and rising awareness of animal health, is prompting producers to adopt nutritionally balanced and contamination-free formulations.

• Adoption of sustainable and cost-effective raw materials, such as alternative protein sources and by-products, is helping manufacturers manage production costs while meeting environmental and sustainability goals.

As a result, the Indian animal feed industry is poised to witness strong demand across poultry, cattle and aquaculture, making it a key contributor to the countrys agricultural and food economy over the next decade.

The livestock sector, a cornerstone of Indias rural economy and a major source of employment, has been experiencing a steady rise in the population of high-yielding exotic and cross-bred cattle, especially within the dairy segment. These breeds are increasingly preferred by farmers for their superior milk production and efficiency, but they require nutritionally balanced, scientifically formulated animal feed to maintain optimal health, productivity, and reproductive performance. This shift from traditional to commercial, quality-driven feeding practices is further strengthening the demand for premium compound feeds, fortified concentrates, and specialized nutritional supplements, positioning the animal feed industry as an indispensable pillar in the growth and modernization of Indias dairy and livestock economy.

Growing emphasis on food security, enhanced nutritional standards, and sustainable farming practices is expected to provide strong, long-term support for the Indian animal feed sector. Rising consumer awareness about food safety and the quality of animal-derived products is driving demand for scientifically formulated, contamination-free feed. Moreover, the push toward eco-friendly and resource-efficient livestock farming aligns with global sustainability goals, further boosting adoption.

However, the industry continues to face challenges such as raw material price volatility, unpredictable weather patterns affecting crop yields, and supply chain disruptions linked to global trade fluctuations. Despite these hurdles, the overall market outlook remains highly positive. Continuous investments in feed technology, precision nutrition, and digital supply chain management, along with government support for modernizing livestock practices, are expected to drive sustained growth, innovation, and competitiveness across the sector.

2. OPPORTUNITIES AND THREATS

Opportunities:

a. Your Company stands as a trusted leader in the cattle feed and oil cake processing industries, strengthened by nearly five decades of operational excellence and market leadership. Over the years, the Company has cultivated unmatched industry knowledge, strong farmer relationships, and a reputation for delivering consistent quality.

b. Rising meat and dairy consumption – Growing per capita demand for poultry, dairy, and aquaculture products is driving feed consumption.

c. Expansion of poultry, aquaculture, and dairy industries Fast-growing livestock and fishery sectors create consistent feed demand.

d. Favorable government policies Livestock development schemes, subsidies, and incentives for feed mills encourage industry growth.

e. Focus on feed quality and safety Growing awareness about contamination-free, nutritionally balanced feed offers scope for premium and specialized products.

f. Sustainable feed innovations Adoption of alternative protein sources (insect-based, plant-based, and by-product utilization) to meet sustainability and cost efficiency targets.

g. Technological advancements Use of AI, IoT, and precision feeding systems to optimize formulations and improve animal productivity.

h. Export potential Rising demand for Indian feed in neighboring Asian and African markets.

i. Shift toward compound feed Increasing awareness among small and mid-size farmers about the benefits of compound feed over traditional feed.

j. Private investments & collaborations –

Entry of multinational players and joint ventures driving modernization of feed manufacturing.

k. Growth in e-commerce and digital supply chains Online marketplaces and digital platforms improving distribution and farmer reach.

Threats

While fundamentals remain robust, various headwinds continue to pose challenges to sustained growth and profitability:

l. Volatility in raw material prices – Fluctuations in maize, soybean meal, and other ingredients affect production costs. m. Disease outbreaks in livestock Events like avian flu or swine fever reduce feed demand and affect farmer income. n. Regulatory challenges Stricter safety, quality, and environmental regulations increase compliance costs.

o. Competition from unorganized sector

Presence of local, small-scale feed producers puts pressure on margins of organized players.

p. Climate change impact Droughts and irregular monsoons affect crop yields, limiting feed ingredient availability.

q. Limited awareness among smallholder farmers Slow adoption of nutritionally balanced feed hampers market penetration. r. Infrastructure and logistics constraints

Inadequate storage, transport, and distribution networks increase wastage and costs.

s. Price-sensitive farmer base Resistance to higher-priced quality feeds limits the premium segments growth.

t. Threat from counterfeit and substandard feed products Presence of low-quality, unregulated feeds in the market damages trust and affects animal health.

u. Your Company actively addresses these challenges through strategic planning, dynamic pricing, operational excellence, and diversification initiatives

3. Segmentwise Product wise Performance

The segment wise revenue and year to year change are given hereunder:

Segments	2024-25		2023-24		Year to Year Change Percentage
	in Crores	Percentage	in Crores	Percentage
Animal Feed	1382.2	83.8	1489.5	88.48	5.49
O i l c a k e processing	210.68	12.77	139.25	8.27	-6.95
Dairy	56.65	3.43	54.74	3.25	12.94
Total	1649.53	100	1683.49	100	4.57

During FY 2024 25, your Company operated across three core business segments: Animal Feed, Oil Cake Processing, and Dairy (including Ice Cream). The Companys overall revenue declined by 2.0%, primarily due to a 7.2% decrease in feed segment revenues, attributed to a significant reduction in the cattle population in Kerala. In contrast, the oil cake segment delivered robust growth of 51.3%, supported by favorable pricing and strong market demand, while the dairy segment recorded a marginal increase in revenue compared to the previous year.

Animal Feed Segment

The Animal Feed segment remains the primary contributor to the Companys performance, accounting for 83.80% of total revenue. The segment reported a turnover of 1,382.20 Crores in FY 2024 25, compared with 1,489.50 Crores in FY 2023 24, reflecting a 7.20% decline. This decrease was primarily driven by a contraction in the cattle population in Kerala, reduced selling prices to remain competitive, and an overall volume decline to 5.13 Lakh MT versus 5.39 Lakh MT in the previous year.

The reduction in sales volume stemmed mainly from: a. Higher feed prices due to rising ingredient costs, b. Market contraction in Kerala, where stagnant milk procurement prices led many farmers to exit cattle rearing, and c. A general reduction in the cattle population. Despite these headwinds, favorable raw material price trends in FY 2024 25 supported improved earnings. The Companys feed prices, in some cases 1,300/MT higher than subsidized Government and Cooperative offerings, limited demand in price-sensitive markets like Kerala. However, proactive market development efforts in Tamil Nadu helped offset part of the decline, and the Company expanded into poultry feed, achieving strong growth from 1,997 MT in FY 2022 23 and 4,516 MT in FY 2023 24 to 5,353 MT in FY 2024 25. Notably, despite the revenue decline, the segment delivered a profit of 69.0 Crores, a substantial improvement from 40.43 Crores in the previous year, driven by favorable raw material price movements and strategic enhancements in procurement and pricing policies.

Oil Cake Processing Division

The Oil Cake Processing Division delivered a robust revenue growth of 51.30%, rising from 139.28 Crores in FY 2023 24 to 210.68 Crores in FY 2024 25. The prior years was impacted by declining coconut oil prices and sharp increases in copra cake input costs, with average realizations dropping from 1.19 lakhs/MT in FY 2022 23 to 1.09 lakhs/MT in FY 2023 24. In FY 2024 25, a combination of favorable selling prices and moderated raw material costs supported a significant improvement in both revenue and profitability. Processing volumes also rose by 17.39%, with 124,981 tons of copra cake handled compared to 106,465 tons in the previous year, aided by advance procurement contracts that effectively controlled input cost inflation. The division posted a segmental profit of 51.48 Crores, a marked turnaround from the loss of 6.31

Crores in FY 2023 24, driven by favorable market conditions for selling price for oil and competitive procurement cost in the overseas market.

Dairy Segment

The Dairy segment, encompassing both milk and ice cream operations, recorded a steady performance in FY 2024 25, achieving a total revenue of 56.65 Crores, an increase of 3.49% over 54.74 Crores in FY 2023 24.

Milk Operations delivered a 4.06% rise in volumes, increasing from 5,818 KL to 6,054 KL, supported by investments in marketing infrastructure, expansion of the customer base in Tamil Nadu, and operational efficiency improvements. Despite these positive developments, margin pressures persisted, largely due to elevated procurement costs in Tamil Nadu and government-regulated retail prices in Kerala, which limited pricing flexibility. Nonetheless, focused cost management enabled the division to achieve a marginal profit of 26.4 lakhs, marking a turnaround from the 50.7 lakh loss posted in the previous fiscal year.

In the Ice Cream Business, volumes contracted by 9.3%, from 1,698 KL to 1,540 KL, as the Company strategically realigned its portfolio toward premium, high-margin variants, reducing exposure to low-margin frozen desserts. The flagship Vesta brand continued to gain traction, supported by a 3 crore advertising campaign and the engagement of a popular brand ambassador, both of which strengthened brand visibility and consumer loyalty. Pricing strategies were carefully calibrated to balance competitiveness with a commitment to maintaining best-in-class product quality. However, the segment reported a loss of 3.16 Crores, compared to

2.91 Crores in FY 2023 24, reflecting ongoing challenges in input costs and market dynamics.

The year to year change in the volume of operation in different segments are discussed under

Segments	Unit of Measurement	2024-25	2023-24	"Year to year Change (Percentage)"
		Quantity	Quantity
Cattle Feed	Tons	513238	539141	-4.8
Poultry Feed	Tons	5354	4516	18.56
De-Oiled Cake	Tons	16226	16405	-1.09
Refined Coconut Oil	Tons	10419	7776	33.99
Milk	Kilo Litres	6054	5818	4.06
Ice Cream	Kilo Litres	1544	1698	(-9.07)

The segment wise earnings before interest and tax are furnished below:

Segments	2024-25 in lakhs	2023-24 in lakhs	Year to year Change (Percentage)
Animal Feed	6899.98	4042.89	70.67
Oil Cake Processing	5148.26	-631.45	915.31
Dairy	-291.3	-342.19	14.87
Unallocated income net of expenditure including interest income	-514.67	-645.07
Total Profit/(Loss) after exceptional items, interest and tax	12271.61	2424.18

The substantial improvement in EBIT from the Animal Feed and Oil Cake Processing divisions played a pivotal role in driving the Companys overall turnaround. However, the

Dairy segment continued to post losses, primarily in the Ice Cream division, which was impacted by intense market competition and weather-related challenges during the year.

4. OUTLOOK

The upcoming financial year is expected to bring both promising opportunities and considerable challenges across the Companys core business segments. Despite a volatile operating environment driven by fluctuating input costs, macroeconomic uncertainties, and regulatory pressures, the Company remains well-positioned to capitalize on its strengths, drive operational efficiencies, and enhance overall performance in FY 2025 26.Animal Feed Segment The demand for high-quality compound cattle feed is anticipated to maintain a steady upward trajectory, underpinned by growing farmer awareness of the benefits of balanced animal nutrition, the ongoing shift toward organized and commercial dairy farming, and the expected recovery of livestock populations in

Tamil Nadu and parts of Kerala. However, the operating environment remains challenging as prices for key raw materials — including rice bran, maize, groundnut cake, and cottonseed deoiled cake — continue to remain at elevated levels, with limited visibility on near-term corrections.

To safeguard profitability, the Company has already undertaken carefully calibrated feed price adjustments and will continue to follow a dynamic pricing approach that closely tracks fluctuations in input costs. At the same time, management recognizes that aggressive price hikes can pressure volumes in price-sensitive markets, especially Kerala, where Government and Cooperative feed brands benefit from significant subsidies and price controls. With milk procurement prices remaining static, many farmers continue to operate under tight margins, restricting their capacity to absorb additional feed price increases.

In contrast, the Tamil Nadu market remains robust, offering healthy demand and greater pricing flexibility. The Company aims to consolidate its leadership in this region through dealer network expansion, enhanced last-mile delivery infrastructure, and targeted farmer engagement programs. Furthermore, strategic diversification into poultry and calf feed sub-segments is expected to unlock additional growth opportunities. Given the strong demand outlook and favorable margin profile of poultry feed, this business line is projected to become a key contributor to overall volume and profitability in the coming fiscal year.

Oil Cake Processing Division

The Oil Cake Processing Division may face raw material constraints in FY 2025 26, stemming from the low coconut yield observed during the last two quarters of FY 2024 25. Consequently, the Division is expected to rely more heavily on higher-cost oil cake sourced from both domestic and overseas suppliers. The selling price of refined coconut oil is anticipated to remain elevated until copra supplies normalize, which is projected to occur in the final two quarters of the year. In addition, foreign exchange volatility, influenced by ongoing geopolitical factors, will continue to complicate procurement economics.

The Company plans to process approximately

1,21,000 tons of copra cake during FY 2025 26 to meet internal requirements for deoiled cake, a critical input for the cattle feed segment. Although margins are expected to remain highly volatile, the Divisions operations remain strategically important to ensure raw material security for the feed business. With refined oil prices expected to stay strong in the near term, the year ahead appears favorable for the Oil Cake Division, subject to effective management of oil cake procurement costs in the latter half of the year. The Company will continue to closely track market developments, optimize import strategies, and pursue strategic procurement contracts and inventory planning to mitigate cost pressures.

Dairy Division

The dairy segment is expected to gradually strengthen its financial performance in FY 2025 26, though profitability will remain constrained by the persistent mismatch between milk procurement costs and retail selling prices. In Tamil Nadu, procurement prices remain significantly above Keralas retail prices, which are governed by public-sector pricing controls. Any upward revision of milk prices by the Government will be a critical driver of margin improvement in the coming year. The Company continues to make targeted investments in brand building, customer engagement, and distribution efficiency within the milk segment, with a strategic emphasis on value-added dairy products to enhance per-litre realization.

In the ice cream business, the outlook remains positive. Demand for Vesta ice cream is set to grow further, supported by ongoing brand investments, increased advertising spends, and the risingbrand popularity across southern India. A deliberate portfolio shift towards premium, high-margin ice creams and away from low-profit frozen desserts is expected to strengthen profitability. Carefully designed dealer incentives, seasonal promotions, and controlled credit policies will support market expansion while safeguarding working capital. Additionally, selective price adjustments across certain SKUs are expected to yield improved realizations and incremental margin gains.

Strategic Priorities for FY 2025 26 include:

• Maintaining pricing agility in the feed segment to counter cost inflation while sustaining market competitiveness.

• Expanding market share in Tamil Nadu and exploring newer geographies to offset demand erosion in subsidy-impacted markets.

• Tightening procurement and forex controls in the Oil Cake Processing Division to mitigate raw material volatility.

• Continuing brand investments in the dairy segment with a sharper focus on premiumization and profitable sub-segments.

• Exercising capital discipline, deferring heavy investments in capacity or advertising until profitability stabilizes.

• Strengthening digital tools and MIS systems to enhance supply chain visibility and operational performance.

Overall, the Company maintains a cautiously optimistic outlook for FY 2025 26. Leveraging its brand equity, technical expertise, customer relationships, and financial prudence, the Company is well-positioned to navigate near-term headwinds and establish a solid foundation for sustainable growth.

5. RISKS AND CONCERNS

The Company operates in an environment exposed to multiple internal and external risks that could affect business continuity, profitability, and long-term growth. Accordingly, proactive identification and mitigation of risks remain a strategic priority across all levels of the organization.

Raw Material Price Volatility

High and unpredictable prices for essential feed ingredients — such as soybean meal, maize, rice bran, and copra cake — continue to pressure margins. Price escalation is driven by supply chain disruptions, irregular weather, government interventions, geopolitical factors, and competing demand from food and biofuel industries.

Subsidized Competition and Regulatory

Interventions

In Kerala, the dominance of subsidized

Government and Cooperative feed players creates an uneven competitive landscape. Furthermore, government control over milk prices limits dairy farmers capacity to absorb feed cost increases, impacting demand for the Companys products.

Exchange Rate Fluctuations

A significant portion of copra cake is imported from Indonesia, Papua New Guinea, and the

Philippines. Volatility in the INR USD exchange rate poses material risks to procurement costs, with a weaker rupee eroding margins, especially during periods of domestic price pressure.

Coconut Oil Price Volatility and Copra Cake Availability

While rising coconut oil prices — from 109/ kg in FY 2023 24 to around 350/kg — support segment profitability, the scarcity of deoiled copra cake poses a challenge to feed production. Additionally, increased demand across the Asia-Pacific region raises the risk of supply constraints.

Labour Dependency and Escalating Costs

Labour-intensive operations in Kerala face ongoing shortages, resulting in rising wage costs and operational strain, especially in margin-sensitive segments.

Weather and Agricultural Shifts

Monsoon failures, erratic rainfall, and shifts in cropping patterns towards higher-value cash crops reduce the availability of essential oilseeds and grains, further tightening raw material supply.

Geopolitical Instability

Global tensions, including the Russia Ukraine conflict and Middle Eastern unrest, continue to disrupt commodity and energy markets, raising transportation costs and import price volatility.

Market Sensitivity to Price Adjustments Despite its strong brand positioning, the Company operates in price-sensitive markets. Significant price hikes, especially in regulated and subsidy-heavy regions, risk volume contraction and customer churn.

Working Capital and Credit Exposure

Growth in the ice cream and dairy divisions has increased dealer and distributor credit exposure. While credit is cautiously managed, delays in receivables or distributor defaults may create liquidity pressures.

To address these challenges, the Company is committed to:

• Strategic sourcing and long-term procurement planning

• Market expansion in geographies with favorable pricing

• Operational efficiency improvements to counter cost pressures

• Conservative financial management and prudent credit control

• Active monitoring of policy developments and global market dynamics

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company places a strong emphasis on maintaining a robust internal control framework to ensure operational efficiency, accurate financial reporting, regulatory compliance, and the safeguarding of assets. In FY 2024 25, these systems were further strengthened to support the growing scale and complexity of operations, particularly with an expanding footprint across new geographies and product segments.

The internal control framework is designed to deliver real-time monitoring, accountability, and transparency at all organizational levels. It ensures that transactions are duly authorized, accurately recorded and reported, and that assets are safeguarded against unauthorized use or loss. Comprehensive policies and procedures cover all critical business functions — including procurement, production, finance, inventory, marketing, sales, and compliance — and are continuously reviewed for relevance and effectiveness. Technology-driven solutions and ERP systems have further automated and standardized controls, reducing manual errors and enhancing oversight. Periodic internal audits were conducted across all operational units — animal feed plants, oil cake processing units, and dairy facilities — by independent internal auditors. These audits assess the adequacy and effectiveness of controls, with findings and recommendations submitted to the Audit Committee of the Board. The Committee, composed of independent directors, meets regularly to review audit reports, ensure timely corrective action, and oversee risk management and statutory compliance.

The Company also fosters a culture of control and compliance by conducting regular training programs to raise employee awareness of risk management, regulatory requirements, and ethical standards. Based on internal assessments, external audit feedback, and

Audit Committee reviews, the Board affirms that the Companys internal control systems remain adequate, effective, and commensurate with its size and operations, with continuous enhancements aligned to evolving business and regulatory requirements.

7. FINANCIAL AND OPERATIONAL PERFORMANCE

During FY 2024 25, your Company delivered a steady financial recovery and operational improvement, driven by strategic pricing initiatives, targeted market expansion, and disciplined cost management. Although consolidated revenue from operations registered a marginal decline of 2%, from

1,68,348.63 lakhs in FY 2023 24 to

1,64,952.80 lakhs, profitability improved significantly, reflecting effective raw material procurement and prudent pricing strategies in key business segments.

Revenue and Segment Contribution

• Animal Feed: Remained the principal revenue driver, contributing 88.48% of total turnover, with revenues of 1,38,219.81 lakhs, down from 1,48,950.07 lakhs in the previous year. The decline was primarily due to a reduction in cattle population in Kerala, leading to a 3.7% fall in sales volume.

• Oil Cake Processing: Revenue increased by 51.30% to 21,068.41 lakhs, compared to 13,925.17 lakhs, driven by favorable refined coconut oil prices and lower copra cake input costs in overseas markets. The Division processed 1,24,981 tons of copra cake, up from 1,06,464 tons in the prior year.

• Dairy (Milk & Ice Cream): Combined revenues rose by 7.3% to 5,664.58 lakhs, compared to 5,473.38 lakhs. Milk volumes increased by 4.1%, while ice cream volumes declined by 11.8% due to a strategic exit from low-margin SKUs, with premium, higher-margin products showing growth.

Profitability

• The Company posted a Profit Before

Tax (PBT) of 12,271.61 lakhs, up from 2,424.18 lakhs in FY 2023 24. After taxes, Net Profit stood at 9110.80 lakhs, reflecting a significant improvement in operational efficiency.

• Animal Feed Division: Reported a segment profit of 6,899.98 lakhs, up from

4,042.89 lakhs, supported by efficient procurement, pricing discipline, and improved realizations.

• Oil Cake Processing Division: Achieved a segment profit of 5,148.26 lakhs, compared to a loss of 631.45 lakhs in the previous year, owing to favorable selling prices and lower raw material costs.

• Dairy Division: Reported a segment loss of 291.30 lakhs, narrowing from 342.19 lakhs in FY 2023 24. Milk operations achieved a marginal profit, while the ice cream business remains in turnaround mode, with improvement expected as strategic initiatives gain traction in the coming years.

Key Operational and Financial Highlights

• Feed Ingredient Costs: The average annual cost of feed ingredients fell by 4.08%, reversing the upward trend of the past three years. Costs declined from approximately

24,500 per ton in FY 2023 24 to 23,500 per ton in FY 2024 25.

• Selling Price Realization: The average realization for cattle feed dropped by

2.75%, from 27,250 per ton in FY 2023 24 to 26,500 per ton in FY 2024 25. However, this reduction was insufficient to fully offset earlier cost inflation due to competitive market conditions and price sensitivities.

• Copra Cake and Oil Economics: The average cost of copra cake decreased to 26,300 per ton, down from 32,329 per ton in the prior year, while refined coconut oil realization rose sharply to 1.57 lakhs per ton from 1.13 lakhs, significantly boosting the segments profitability.

• Ice Cream Marketing: Approximately 3.00 crores was invested in advertising for Vesta ice cream, with a renowned brand ambassador enhancing brand visibility and driving stronger engagement across southern India.

Strategic Adjustments

• The ice cream portfolio was realigned to emphasize high-margin premium offerings.

• In the dairy business, cost control and channel optimization helped reduce operating losses.

• The feed division expanded into poultry feed, showing promising early performance.

• Distributor credit exposure was tightly managed through controlled policies while preserving market competitiveness.

Summary:

FY 2024 25 marked a year of disciplined execution amidst market volatility. Despite macroeconomic and competitive challenges, the Companys strategic initiatives drove a positive turnaround, establishing a strong foundation for sustained growth in the years ahead.

8. KEY FINANCIAL RATIOS

The financial performance for FY 2024 25 reflects a significant recovery in profitability and operational efficiency, as evidenced by improvements in several key financial metrics. The comparative analysis of key ratios for FY 2024 25 and FY 2023 24 is provided below:

Key Financial Ratios Method of calculation 2024-25 & 2023-24

Key Financial Ratios	Method of Calculation	2024-25	2023-24
Debtors Turnover	Revenue / Average Trade Receivables	1274.86 Times	1413.51 Times
Inventory Turnover	Revenue /Average Inventory	12.34 Times	12.12 Times
Interest Coverage Ratio	EBIT/Finance Cost	51.55 Times	9.56 Times
Current Ratio	Current assets/Current liabilities	7.04 Times	5.63 Times
Debt Equity Ratio	Total borrowings/Shareholders Equity	0.08 Times	0.09 Times
Operating Profit Margin	EBIT/Revenue	7.59 %	1.61 %
Net Profit Margin	PAT/Revenue	5.54 %	1.05 %
Return on Net Worth	PAT/Shareholders Equity	35.01 %	8.02%

9. Industrial Relation

As on 31st March 2025, the Company had a total of 870 employees on its rolls. The Company continues to stand out as an exception to the generally adverse labour conditions prevailing in Kerala. During the financial year 2024 25, all long-term settlements with the trade unions were successfully concluded. All operational units of the Company functioned smoothly without any labour-related disruptions. The management maintains cordial and constructive industrial relations, addressing employee grievances with transparency and an open-minded approach.

10. Caution

The statements made in the Management Discussion and Analysis Report describing the

Companys objectives, projections, estimates, and expectations may be forward-looking within the meaning of applicable securities laws and regulations. These statements are based on currently available information, assumptions, and the managements judgment. Actual results may differ materially from those expressed or implied due to various risks and uncertainties, including changes in macroeconomic conditions, market dynamics, and other unforeseen events beyond the Companys control.