Likhitha Infrastructure Ltd Management Discussions

Indian Economy

India, one of the worlds fastest-growing major economies in FY 2024-25, with real GDP grew by 6.5% reaching 187.97 lakh crore, with the fourth quarter growth accelerating to 7.4% GDP in nominal investment into cross-country terms reaching 330.68 lakh crore, growing by 9.8% year-on-year.Keygrowthdriversincludedconstruction which expanded by 9.4% and public services grew by 8.9%, and financial services contributed 7.2% As per the second advance estimates from the Ministry of Statistics and Program Implementation (MOSPI), Indias economy grew by 6.5% year-on-year (YoY) in FY 2024-25, compared to 9.2% (as per st revised estimate) in the previous year.fir

Looking ahead, the economy is projected to grow between 6.3-6.8% in FY 2025-26, though external factors and geopolitical developments remain key risks. As the worlds third-largest energy consumer, Indias economic expansion is tightly intertwined with energy infrastructure development, making the oil and gas pipeline sector central to meeting industrial, transport, and household energy needs.

Indias capital formation remained robust in FY 2024-25. Gross Fixed Capital Formation (GFCF) grew by 7.1%, with Q4 seeing a sharp 9.4% growth, signaling strong investment in physical infrastructure, including energy assets. The governments capital outlay and infrastructure focus have directly benefitedthe oil and gas pipeline sector, with increased spending on nationwide pipeline connectivity and City Gas Distribution. The continued rollout of projects under "One Nation One Gas Grid" and strategic investments in cross-country pipelines have improved last-mile energy access, particularly in Tier II and III cities.

Outlook

India enters FY 2025-26 on a strong economic footing, supported by sustained public investment, resilient consumption, and an accelerating infrastructure build-out. For the oil and gas infrastructure industry, this momentum provides a fertile environment for growth. The governments policy thrust on opportunities expanding natural gas usage – targeting a 15% share in the energy mix by 2030 – will drive new projects across cross-country pipelines, City Gas Distribution networks, LNG terminals and last-mile connectivity.

Global energy transitions also play a role in shaping Indias outlook. While crude oil markets remain volatile, natural gas is increasingly seen as a bridging fuel, complementing renewables in the countrys energy basket. This transition is expected to attract significant pipelines, LNG terminals, and related infrastructure. Simultaneously, technology adoption in pipeline construction and monitoring will improve efficiency and reduce lifecycle costs.

However, risks remain in the form of global trade disruptions, commodity price fluctuations, and geopolitical tensions, which may influence input costs and project timelines. Domestic challenges, such as regulatory clearances and execution delays, could also impact the pace of capacity creation. For Likhitha Infrastructure Ltd., these trends translate into opportunities for expanding its operations in laying of cross-country pipelines and City Gas Distribution networks in India, Saudi Arabia and Abu Dhabi (UAE). Its presence in international markets such as Abu Dhabi (UAE) and Saudi Arabia strengthens its ability to capture a share of the growing demand for high-quality pipeline infrastructure in energy-driven economies. With a proven execution track record and a focus on safety and reliability, the

Company is well-positioned to benefitfrom its partnership in energy transition.

Middle East

Saudi Arabias Vision 2030 places strong emphasis on expanding its natural gas network, with Aramco investing over USD 25 billion in the Jafurah gas field and the countrys main gas grid, which will add nearly 4,000 km of new pipelines and increase capacity by 3.2 billion scf/day. Overall, Saudi Arabia aims to raise its gas production by 60% by 2030. In parallel, Abu Dhabi (USA) is strengthening its gas backbone by completing city and industrial gas grids, supported by long-term supply agreements through ADNOC Gas, while also developing gas-fired power projects of about 5 GW to provide reliable and flexible energy for industrial and urban centers. These developments open significant for Likhitha in cross-country pipeline execution, city gas distribution, hydrogen-adaptive networks, and related infrastructure solutions across the region.

Industry Overview

Indias oil and gas infrastructure sector continued to exhibit strong momentum in FY 2024-25, propelled by a combination of ambitious policy reforms, growing energy demand, and accelerated investments from both public and private stakeholders. PNGRB reports that over 35,000 km of natural gas pipelines have been authorized, out of which 25,000 km are operational. Press data from the

Ministry of Petroleum & NaturalGasconfirmsthat about 10,805 km of natural gas pipeline is under execution as of late FY 2024-.25. India is rapidly expanding one of the worlds most extensive pipeline networks, which is critical for ensuring energy security and meeting the countrys rising consumption needs.

Currently, natural gas accounts for about 7% of

Indias total energy mix, a than the global average of 24%. The Government has set an ambitious target of raising this share to 15% by 2030, driven by the urgent need to decarbonize energy consumption across industry, transport, and households. Strategic initiatives such as the expansion of the National Gas Grid, the implementation of unified gas tariffs, and investments in LNG regasificationterminals and CGD networks are creating a robust framework to meet this goal.

Globally, the oil and gas market was valued at US$7.75 trillion in 2024 and is expected to reach

US$9.89 trillion by 2029, reflecting long-term structural demand, particularly from Asia-Pacific and

Africa, and ongoing investments in energy transport infrastructure, LNG, and transitional fuels such as blue and green hydrogen.

In India, the City Gas Distribution (CGD) segment remains a key growth engine. CGD demand is projected to increase by over 60% by 2030, with daily consumption rising from 37 million metric standard cubic metres (mmscmd) to more than 110 mmscmd, fuelled by the expansion of gas-based mobility, rising urban penetration, and increasing industrial and commercial usage.

This fast-evolving landscape offers significant growth opportunities for infrastructure specialists like Likhitha Infrastructure Ltd., which is strategically positioned to support Indias energy ambitions through agile execution, safety-first practices, and proven expertise in cross-country pipeline and CGD deployment.

Government Initiatives for Gas Pipeline

Infrastructure

The Government of India has undertaken a series of strategic and transformative initiatives to promote a gas-based economy and reinforce the countrys energy infrastructure. These reforms are aligned with Indias broader goal of increasing the share of natural gas in its energy mix from the current 7% to 15% by 2030.

A major milestone has been the implementation of the Unified Tariff system under the "One Nation,

One Grid" initiative, launched by the Petroleum and Natural Gas Regulatory Board (PNGRB). This reform is aimed at rationalizing gas transmission tariffs across zones to create a more integrated and cost-efficient national gas grid. The move not only ensures equitable access for consumers but also enhances the viability of CGD projects in Tier-II and Tier-III cities by lowering input costs.

To attract global capital and technology, the Government has allowed 100% Foreign Direct Investment (FDI) in gas infrastructure, including pipeline projects, LNG terminals, and CGD networks. This policy has spurred cross-border collaboration and encouraged international players to participate in Indias energy transition journey.

A global report cites India plans to invest $67 billion (approx. 5.5 lakh crore) over the next five years to nearly double its gas pipeline network. The previously stated e seems figur 67,000crore to significantly underestimate this scale and lacks corroborating domestic sources. This includes the expansion of the National Gas Grid, which aims to connect previously underserved regions, and major strategic projects like the Urja Ganga pipeline, covering eastern India and connecting major cities to the natural gas network.

The Green Hydrogen Mission, launched with a projected outlay of 17,490 crore by 2030, complements these efforts by laying the foundation for future-ready energy infrastructure. It seeks to produce 5 MMT of green hydrogen per annum and establish India as a global hub for hydrogen production and export, thereby supporting the decarbonization of hard-to-abate sectors.

These integrated measures demonstrate the Governments commitment to developing a modern, reliable, and future-oriented energy infrastructure. Companies like Likhitha Infrastructure Ltd., with proven expertise in executing cross-country pipeline and CGD projects, are well-positioned to play a central role in implementing these ambitious national objectives.

Key Drivers of Oil and Gas Pipeline

The oil and gas pipeline infrastructure sector in

India continues to gain significant econfluenc of by structural demand, policy impetus, and evolving technology. One of the most compelling drivers is the increasing demand for natural gas across industrial, domestic, and transportation sectors. Industries are increasingly adopting natural gas for its reliability and cost efficiency while urban households are embracing piped natural gas for its convenience, affordability, and safety. Simultaneously, the rise in CNG-based mobility solutions, supported by expanding City Gas Distribution networks, has accelerated demand for pipeline connectivity in urban and semi-urban regions.

Government mandates promoting opportunities for fuel substitution and decarbonisation are pushing both public and private players to invest in natural gas infrastructure. Indias commitment under its Nationally Determined Contributions (NDCs) to reduce emissions intensity and its long-term net-zero roadmap are further reinforcing the role of gas as a transition fuel. These efforts are being matched by favourable regulatory growth catalysts is the frameworks, including simplified project clearances and access to viability gap funding for strategic projects.

Public-Private Partnership (PPP) models have also emerged as a key enabler of capital formation in the sector. These models are fostering faster project execution and unlocking capital inflows, particularly in high-potential regions. Private players are increasingly collaborating with central and state-run oil and gas companies to deliver large-scale pipeline and CGD infrastructure, leveraging their technical know-how and execution capabilities.

Technology is playing a transformative role in enhancing pipeline safety, integrity, and operational efficiency. The adoption of smart sensors, real-time monitoring systems, and predictive maintenance technologies has substantially reduced the risk of accidents, leakages, and environmental harm. These digital solutions are not only improving asset life-cycle management but are also helping companies like Likhitha Infrastructure Ltd. meet stringent compliance standards with greater agility.

Lastly, Indias broader energy security agenda and its climate resilience commitments are shaping long-term demand. With the countrys energy demand expected to double by 2040, the Government has prioritised the development of an integrated pipeline network as a strategic national asset. This vision, supported by growing urbanisation, industrialisation, and rural connectivity, continues to generate consistent opportunities for companies operating in the oil and gas pipeline domain.

As these drivers gain further momentum, Likhitha Infrastructure is well-positioned to capitalise on the sectors growth curve – supported by its proven execution track record, strategic partnerships, and alignment with national energy priorities.

Opportunities Ahead

Indias ongoing transition toward a gas-based economy has opened up significant infrastructure providers like Likhitha Infrastructure Ltd. With energy security, industrial growth, and efficiency at the forefront of national priorities, the demand for advanced pipeline infrastructure and related services is projected to remain strong over the next decade.

One of the most significant continued expansion of cross-country pipeline networks, supported by government-backed investments and strategic policy frameworks. India currently operates over 25,000 km of natural gas pipelines, with an additional 10,800 km under various stages of construction. This buildout of the national gas grid – under initiatives like "One Nation, One Grid" – provides Likhitha with substantial opportunities to participate in large-scale pipeline laying, testing, and commissioning projects across geographies.

Equally promising is the rapid proliferation of City Gas Distribution (CGD) networks, which are being rolled out in more than 400 districts. This urban expansion, combined with increased household, commercial, and industrial demand for piped natural gas, opens up considerable scope for Likhithas turnkey execution capabilities – from mainline steel pipelines to MDPE connections and last-mile delivery infrastructure.

On the global front, Likhithas early mover advantage in the Middle East is beginning to yield strategic gains. With a joint venture in Saudi Arabia and a branch is well positioned to tap into the regions massive energy infrastructure market. Countries like Saudi

Arabia and the UAE are significantly increasing their investments in pipeline and storage facilities, creating strong demand for contractors with cross-border experience and proven execution capabilities. With the governments Green Hydrogen Mission and other sustainability-linked programmes gaining momentum, there is rising demand for infrastructure players who can extend their capabilities into adjacent areas such as hydrogen-ready pipelines, storage facilities, and integrated terminal development. Likhitha Infrastructure Ltd. is strategically positioned to capitalize on the growing opportunities in Indias oil and gas pipeline and City Gas Distribution (CGD) sectors, as well as emerging prospects in international markets. Backed by a strong track record of cross-country pipeline execution, CGD network development, and related infrastructure services, the Company has built a reputation for timely delivery, quality execution, and technical expertise. These strengths place Likhitha at the forefront of the next phase of growth in the oil and gas infrastructure industry.

Challenges Ahead

Executing with Precision in a Complex Operating Environment

As a specialist in pipeline infrastructure execution, Likhitha Infrastructure Ltd. operates in a space that, while filled with opportunity, presents a unique set of challenges that influence project delivery timelines and operational efficiency.

One of the recurring hurdles arises from external dependencies beyond the Companys control, such as delays in land acquisition, statutory clearances, and right-of-way approvals – responsibilities that rest with project owners or government agencies. While Likhitha does not manage these aspects, any lag in upstream readiness can directly impact the commencement and continuity of project execution. In such cases, extended stay compensations are generally provided by the client to cover the additional costs incurred.

Volatility in the prices of essential raw materials

– particularly steel and MDPE – continues to pose a challenge. These fluctuations, driven by global commodity markets, can pressure margins in fixed-price contracts unless proactively managed through procurement strategies and contractual safeguards. Operationally, executing large-scale projects across diverse geographies requires meticulous coordination with local authorities, subcontractors, and supply chain partners. Ensuring the timely availability of skilled manpower, machinery, and materials, especially in remote or logistically challenging areas, adds another layer of complexity. As Likhitha expands its footprint into international markets such as Abu Dhabi (UAE) and the Kingdom of Saudi Arabia, navigating new regulatory environments, ensuring compliance with local labourandqualitynorms,andbuildingregionalvendor networks are critical success factors. Additionally, macroeconomic variables such as currency fluctuation, regional instability, and contractual enforceability in foreign jurisdictions require prudent risk mitigation.

While the Company is not involved in engineering or design activities, the expectation to align with increasingly sophisticated safety, quality, and digital standards in the infrastructure sector necessitates ongoing investment in training, systems, and supervisory frameworks.

Despite these challenges, Likhithas focused business model, disciplined execution, and reputation for reliability continue to serve as strong differentiators in a competitive market.

Company Overview

Likhitha Infrastructure Ltd. is one of Indias leading integrated service providers in the rapidly evolving oil and gas pipeline infrastructure segment. With over 27 years of operational excellence, the Company involves in the business of laying of cross-coutry pipeline, City Gas Distribution (CGD) projects and other associated services. Its execution capabilities span both steel and medium-density polyethylene

(MDPE) pipeline networks, backed by a reputation for timely delivery, robust safety standards, and unwavering quality assurance.

Likhithas geographic presence covers 20 Indian states and 2 Union Territories, with growing international operations. In 2019, the Company executed the first trans-national cross-country petroleum pipeline in South-East Asia, connecting India to Nepal. This landmark project strengthened

Likhithas profile as a trusted infrastructure partner beyond Indian borders. To further bolster its global footprint, Likhitha established a branch office in Abu Dhabi (UAE) in 2024, and incorporated a Joint Venture company in the Kingdom of Saudi Arabia in 2023 to explore expanding opportunities in the Middle East pipeline infrastructure sector.

Since becoming a public limited company in 2019, and subsequently listing on NSE and BSE in 2020, Likhitha has consistently demonstrated strong business fundamentals and a forward-looking growth strategy. As on March 31, 2025, the Companys order book stood at approximately 1,200 crore, indicating a healthy pipeline of projects under execution and in the bidding stage. The Company has successfully completed over 6,000 kilometers of pipeline projects and is actively involved in implementing an additional 1,000+ kilometers across various sites.

Likhitha is the first infrastructure service provider to successfully commission a section of the KGPL Project Group 6, which forms part of the worlds longest LPG pipeline, spanning approximately 2,800 km. Likhitha is helmed by a highly experienced and visionary leadership team. The Companys Founder and Managing Director, Mr. Srinivasa Rao Gaddipati, brings nearly four decades of domain expertise in the oil and gas sector. His strategic foresight, technical proficiency, and values-driven leadership continue to steer the Companys evolution. Co-promoting the organization is his daughter, Mrs. Likhitha Gaddipati, who serves as Whole-Time Director and CFO, bringing international experience, financial acumen, and operational depth to the Companys decision-making processes.

As it advances into its next phase of growth, Likhitha Infrastructure Ltd. remains steadfast in its mission to support Indias transition to a gas-based economy, while leveraging its capabilities to serve global markets with the same trust, efficiency, and engineering excellence that have become its hallmark.

SWOT Analysis

Strengths

High Revenue and Profit Growth with High Return on Capital Employed (ROCE) Company with no debt

Annual Net Profits improving for last 3 years Book Value per share Improving for last 3 years

Company with Zero Promoter Pledge

Weaknesses

Inflation

Opportunities

Expansion of the business based on new Government initiatives Potential global expansion of the company

Threats

Increase in competitive bids for procuring the projects

Any future pandemic lock-down extensions would affect

Operational Highlights

As of March 31, 2025, Likhitha Infrastructure Ltd. maintained a strong order book valued at 1,200 crores, covering cross-country pipeline projects, CGD networks, operations & maintenance services and tankage & terminal projects. The management remains focused on extending its international operations. Investments in digital tools, safety enhancement, and skill development are also being prioritised. Looking ahead, the Company aims to increase its revenue base through strategic partnerships, penetration into high-growth regions, and value-added services. Risk management practices are embedded across the organisation and are monitored by the Board and Audit Committees.

The Company identifies and addresses risks through a structured framework encompassing project diligence, financial prudence, and regulatory compliance.

The Companys outstanding order book position is 1200 Crores as on March 31, 2025, which includes City Gas Distribution and other associated services.

Risk Management

Operating in a complex and dynamic industry, Likhitha faces a range of business, operational, and external risks. The Company has established a structured enterprise risk management framework that proactively across its operations. Key risk areas include project identifies, execution delays, regulatory shifts, commodity price fluctuations, geopolitical developments, and compliance challenges. Risk management strategies are continuously reviewed and refined under the oversight of the

Board of Directors, the Risk Management Committee, and the Audit Committee. These governance bodies ensure that mitigation measures are responsive to evolving market conditions, thereby safeguarding business continuity and stakeholder interests.

Risks	Description	Mitigation
Occupational Health and Safety	Occupational Health and Safety involves safety for not only people but also the environment. It is important for compa- nies to make their opera- tions safe and prevent any harm to the people and environment. Any mis- handling of safety-related parameters can lead to a negative on the health and environment.	To address the risks associated with employee health and safety, the company is implementing the following approach:
		Risk: Safety Training and Education: Providing comprehensive safety training programs to employees to ensure they have the necessary knowledge and skills to perform their tasks safely.
		This includes regular safety briefings, hazard identification, emergency response training with a goal of zero accidents.
		Safety Equipment and Infrastructure: Investing in appropriate safety equipment, protective gear, and infrastructure to minimize the risk of accidents and injuries. This includes regular mainte- nance and inspections of machinery and equipment to ensure they are in safe working condition.
Human Re- source Risk Competition risk	One of the fundamental value of the Company is to Respect human rights. Compliance with the hu- man rights laws and regu- lations is critical for the company. Failing to do so can lead to legal conse- quences and damage the reputation and brand im- age of the company.	The company is committed to cultivating an empathetic posi- tive culture. This dedication is reflected in the companys vari - ous corporate policies, which include the Whistle Blower Policy, policy on prohibition of Sexual Harassment, Code of Business Conduct and ethics. Furthermore, the company is actively imple- menting various initiatives to support this culture, such as con- ducting Training programs to ensure awareness and compliance with company policies, fostering a diverse and inclusive work environment, increasing womens representation in senior lead- ership positions and promoting their professional growth and advancement.
		The Company has adequate resources on permanent basis and would constantly scale resources based on the requirements of the projects from time to time.
	The Company might face competitive risks from other players in the mar- ket depending on the size, nature, and complexity of the project.	Technical and financial qualification of the Company would be one of the major criteria in determining the eligibility for the project.
		The Company is constantly enhancing technical and financial as - pects along with performance, quality, timely completion of the projects and technical qualifications which provides edge over competitors.
Regulatory regime	The Complex nature of infrastructure projects in- cludes interference with various regulators/au-	The regulatory compliance such as site permissions, clearances from the Governments, local bodies, and other such associated compliance responsibilities will be on the client.
	thorities throughout the project life cycle, making them especially vulner- able to regulatory action. Failure to comply with these requirements may result in liability.	The Company also has a regulatory compliance review mecha- nism in place through which the Company reviews the applica- bility of laws and regulations and complies on a real-time basis.

 

Risks	Description	Mitigation
Liquidity Risk	Liquidity risk is that the Company might be un- able to meet its financial obligations.	The Company has strong financial background through which it meets its financial requirements on timely basis. Management regularly reviews the financial obligations and ensures to meet them in time.
Data privacy and security	Loss of sensitive and confidential and impact on the reputation of the Company.	The company has mapped possible areas of such breaches and have implemented corrective measures through employee training on cyber security awareness, regular security assessments, incident response plans and essential protocols for data storage, backup, retrieval, access, and other important activities are established and followed on regular basis.

Internal Controls and their Adequacy

The Company has strong internal control procedures commensurate with its size and operations. The internal control system ensures that all assets are safeguarded and protected against loss from unauthorised use or disposition and that transactions are authorised, recorded, and reported correctly. The Companys internal control systems are further supplemented to internal audit which carries out extensive audits throughout the year, across all functional areas, and submits its reports to Management and Audit Committee about the compliance with internal controls and efficiency and effectiveness of operations and key processes risks.

The Company has clearly laid down policies, guidelines, and procedures which form part of its internal control system. The Companys internal control system is designedstrides to in ensure expandingmanagementinto verifiability efficiency,measurabilityand of accounting and management information, compliance with all applicable laws and regulations, and the protection of the Companys assets. This is to timely identify and manage the Companys risks (operational, compliance-related, economic and financial).

The Audit Committee of the Company consists of independent directors who possess expert knowledge and vast experience in the field their area of operations. They periodically review accounting records and various statements prepared by the Accounts Department. They advise the senior management of the Company for any precautionary steps to be taken as required from time to time. During the year, the Audit Committee reviewed the internal control mechanisms of the Company and initiated necessary follow-up actions thereon.

Management Outlook

Likhitha Infrastructure Ltd., with over 27 years of domain expertise, continues to solidify its position as a key execution partner in Indias oil and gas infrastructure sector. In alignment with the expansion agenda of the Petroleum and Natural Gas Regulatory Board, Likhitha is actively increasing its participation across emerging gas markets in India. As per the

Vision 2030 frameworks of Saudi Arabia and Abu

Dhabi (UAE), Likhitha sees strong growth prospects in executing pipelines and associated infrastructure. Its established track record in delivering projects on time and maintaining stringent safety standards positions it favourably to capitalise on the sectors growth momentum.

Future Outlook

In its pursuit to enhance its global footprint, Likhitha has taken significant strategic international markets. The establishment of a Joint Venture in the Kingdom of Saudi Arabia and the setting up of a registered branch office in Abu Dhabi (UAE) during 2024 are key milestones in this direction. The Company will continue to evaluate opportunities in similar geographies where demand for integrated pipeline infrastructure is growing, with a focus on building long-term partnerships and delivering value-added services.

Financial Highlights

On a consolidated basis, during FY 2024-25, Likhitha Infrastructure Ltd. recorded a total income of 52,526.33 lakhs. The profit after tax stood at

6,942.85 lakhs, while total equity amounted to 37,420.94 lakhs as of March 31, 2025. The majority of income was generated from cross-country pipeline execution and CGD network implementation.

Human Resources

As on March 31, 2025, the Company has 887 employees. We recognize that our human resources are fundamental to the achievement of our objectives. Our HR and Operations teams work closely with senior management to devise strategies that attract top talent and enhance our capabilities. By empowering, inspiring, and motivating our employees, we foster an environment that drives higher levels of performance.

It is the unwavering commitment of our employees that propels us forward and enables us to fulfil our vision

We believe that our employees are our most valuable asset. We strive to create a supportive and inclusive work environment that encourages growth, innovation, and collaboration. By investing in the well-being and development of our employees, we strengthen our collective capabilities and pave the way for continued success.

Key Ratios

as compared to the immediately previous financial Detailsofsignificant year) in key financial ratios, along with detailed explanations therefor, including:

S. No. Particulars	Standalone			Consolidated
	FY 2024-25	FY 2023-24	Variance	FY 2024-25	FY 2023-24	Variance
1 Debtors Turnover (no. of days)	58	64	9.38%	60	72	16.67%
2 Inventory Turnover (no. of days)	127	112	-13.65%	127	112	-13.65%
3 Current Ratio (in times)	8.00	7.97	-0.38%	7.87	8.10	2.84%
4 Debt Equity Ratio (in times)	-	-		-	-
5 Operating Profit Margin (in %)	18.23%	21.29%	14.37%	18.04%	21.33%	15.42%
6 PAT Margin (in %)	13.39%	15.42%	13.16%	13.35%	15.47%	13.70%
7 Return on Net Worth (in %)	27.60%	29.39%	6.09%	27.76%	29.36%	5.45%

Cautionary Statement

This report may contain certain statements that the Company believes are or may be considered to be ‘forward-looking statements which are subject to certain risks and uncertainties. These estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the statements reflect truly and fairly, the state of affairs and profits for the year. Actual results may factors that could influence the Companys operations materiallyfromthoseexpressedorimplied.Significant include government regulations, tax regimes, market access-related regulatory compliances, patent laws, and domestic and international fiscal policies.