M M Forgings Ltd Directors Report.

1. FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021

(Rs. in Lakhs)
2020-21 2019-20
1.1. Forging sales 71,146.74 71,090.46
1.2 Profit before exceptional items/extraordinary items and Tax 5,493.05 5,741.88
1.3 Exceptional/Extraordinary Items 0.03 0.44
1.4 Profit Before Tax 5,493.08 5,742.32
1.5 Tax
For current year 725.00 818.12
Relating to previous years 0.00 1.86
Mat Credit Entitlement / adjusted 0.00 (818.12)
Deferred Tax 107.36 1,116.70
832.36 1,118.56
Profit after Tax 4,660.72 4,623.76
2. DIVIDEND AND FINANCIAL RESULTS (Rs. in Lakhs)
2.1 Profit after Tax 4,660.72 4623.76
2.2 Balance in P & L Account 115.54 309.74
2.3 Profit available for appropriation 4,776.28 4,933.50
2.4 Transfer to General Reserve 3,200.00 3,400.00
2.5 Interim Dividend paid 0.00 1,417.93
2.6 Proposed Dividend 1,455.09 0.00
2.7 Balance carried forward 121.17 115.56

The Directors declared 50% dividend ( 5/ per share ) of face value of 10 / each., in their meeting held on 21 June 2021.

The Directors do not recommend any final dividend for the year 2020-21.

3. SHARE CAPITAL

There was no change in the share capital during the year.

4. HIGHLIGHTS OF THE COMPANYS OPERATIONAL PERFORMANCE

4.1 The Company has overall Revenue, which is above 700 crores.

4.2 The Companys PBT is 55 crores.

4.3 The Companys PAT stands at 46 crores.

4.4 The Company continues to be a net foreign exchange earner. The net foreign exchange earnings during the current year were 338.66 crores.

4.5 The Company has retained its ISO 9001 and TS 16949 Certification for its Quality Management.

4.6 The exports sales is 354.89 Crores and the domestic sales stands at 356.58 Crores.

4.7. Although the pandemic affected the performance, the Company has retained 50% dividend for the year.

5. INDIAN ACCOUNTING STANDARD ( IND AS) IFRS CONVERGED STANDARDS

Pursuant to the notification of the Companies ( Indian Accounting Standard) Rules, 2015 by the Ministry of Corporate Affairs ( MCA) on 16 February 2015, the company has adopted Indian Accounting standards ( IND AS ).

6. EXPENSES MADE MORE THAN 10 % OF THE TURNOVER

Raw Material - 331.52 Crores (44.37 %)
Personnel - 76.49 Crores (10.24 %)

7. MANAGEMENT DISCUSSION AND ANALYSIS :

Economic Overview - Global

It is one year since COVID-19 was declared as a global pandemic, a year of tremendous loss of lives and livelihoods. Adaptation to life with pandemic induced restriction has enabled the global economy to do reasonably well despite overall subdued mobility, leading to a stronger-than-anticipated rebound, on average, across regions.

2020 2021* 2022*
World output -3.3 6.0 4.4
Advanced economies -4.7 5.1 3.6
Emerging Markets -2.2 6.7 5.0

*Projection Source: World economic outlook IMF

After an estimated contraction of 3.3% in 2020, the global economy is projected to grow 6% in 2021, moderating to 4.4% in 2022. The contraction for 2020 is 110 basis points lesser than the projected in October 2020 World Economic Outlook, reflecting higher than the expected growth outruns in the second half of 2020 for most regions after lockdowns were eased.

The projections for 2021 and 2022 are 0.8% points stronger than in the previous forecast, reflecting additional fiscal support in a few large economies and the anticipated vaccine-powered recovery in the second half of the year. This pace reflects continued adaptation of all sectors of the economy to the challenging health situation.

Beyond 2022, global growth is projected to moderate to 3.3% in the medium term. The near-term outlook for global manufacturing remains positive, as evidenced in the February global manufacturing purchasing managers index indicators, which point to a continuing expansion, though at a slower pace. While the near term recovery could be tempered by the resurgence of COVID-19 cases in several major economies, evidenced from social distancing measures in the late 2020 and early 2021 in Europe and United Kingdom suggests a relatively limited impact on manufacturing activity.

After the near-term, widespread availability of vaccines and near-normalization of economic activity, together with continued policy support, should help fuel the manufacturing recovery. Further normalization of global capital expenditure will be an important source of demand for manufacturing.

Management Discussion and Analysis

Economic Overview - India

India is one of the few countries, which went into total lockdown when COVID-19 was declared as a pandemic in end March 2020. This affected the GDP of the nation as a whole from April through September 2020.

The phased un-locking of the economy, with government intervention eased manufacturing and supply chains. Though the growth is expected to be muted through the year, there are definite signs of the economy starting to revive.

The second wave of the pandemic has pulled down the momentum and the current outlook for the year is definitely better than the previous year. The recovery cycle is expected to pick up from the second of half of FY21-22 and reach stable levels in the year FY22-23 and may moderate from FY23-24 onwards. The IMF has upwardly revised the growth forecast to 9.5% for FY22 and 8.5% for FY23.

Indias GDP, which shrink from $2.87 trillion in FY20 to $2.66 trillion in the following year, is estimated to reach around $4 trillion in FY25.

The second half of the COVID-struck financial year FY21 saw an unprecedented rally in domestic steel prices which seems unstoppable even in the current fiscal FY22. Steel prices have increased 15% higher yoy.

Market segments outlook: Key segment analysis: Commercial Vehicles (CV)

The CV segment plays a significant role of MMF with sales of 75%. Passenger car segment constitutes 18% and others 7%.

CV segment is poised to witness a robust turnaround domestically as well as in North America and Europe. US class 8 truck sales recorded significant numbers in Calendar Year 2018 (325,000) and 2019 (345,000). This led to a dismal sales in 2020 with the onset of the pandemic. In 2021 the market is expected to be back to 250,000 levels.

European market has witnessed consistent demand through the years in excess of 300,000+ HCV for the last 3 calendar years. This is expected to perform at these levels till 2025 with overall growth forecast of the economies at European region at around 4.4% in 2021, moderating at 3.8% for 2022.

In India, MHCV production which peaked in FY19 at 444,000 vehicles has tapered to 234,000 vehicles in FY20 and 181,000 in FY21. The outlook going into FY22 is muted in the first quarter, with indications of demand pick up during the second half of FY22. The near-term outlook though is positive, due to the pent up demand which is due to lower sales in the previous 8 quarters. With forecast of economy growth near double digits, we expect demand to stabilize in 2nd half of FY22 with significant growth in FY23.

Currency movement: [USD vs INR]

INR currently at 74.50 vs USD is expected to remain consistent through 2022 at the same levels.

Management Discussion and Analysis M M FORGINGS - Achievements in FY21

Despite the second wave of pandemic, the following were achieved during FY21

1. Domestic sales : 357 crore
2. Export sales : 355 crore
3. Total sales : 712 crore
4. Overall sales around : 747 crore
5. Production tonnage : 48,000 Tons

6. Changes in steel prices which are in line with international markets are generally being passed on to customers as is the industry practice.

7. We are focusing on capacity utilization, to take advantage of the production capacities created in the last 4 years.

8. Key financial ratios :
Debtors Turnover : 138 days
Inventory Turnover : 4.04
Interest Coverage Ratio : 3.88
Current Ratio : 1.79
Debt Equity Ratio : 0.76
Operating Profit Margin (%) : 7.35%
Net Profit Margin (%) : 6.24%

As highlighted in the Directors Report, Return on Net Worth is 8.96% and Return on Capital Employed is 10.74%. Total Outside Liabilities to Net Worth stands at 1.45.

Human Resources and Industrial Relations

1. Our company continues to focus on the development of its human resources to improve its performance.

2. As on 31st Mar 2021, the company currently has approximately 3968 employees. It is their invaluable contribution that has primarily resulted in our companys position of strength in the industry.

3. Focus on a safe working atmosphere, constantly evolving systems for recognition and reward, consistent communication and imparting skills and training - all these focused on meeting customer needs, characterize the HR development of the Company.

4. Every year, each plant of the Company celebrates ‘Founders Day in a family atmosphere with all employees and their household members. Fortunately these were completed well before the onset of Covid in end March 2020.

Health, Safety and Environment

1. The Company follows a policy of zero tolerance towards accidents. Wherever possible, visible controls and fail-safe systems are provided to ensure prevention of accidents. Regular communication, periodic reviews of practices and training play a vital role in maintaining safety standards.

2. The Company ensures compliance with all pollution control regulations. Adequate pollution control equipments have been installed to treat effluents and to control air pollution.

Risk Management

1. The Company is a leading manufacturer of automotive components. Automotive industry is subjected to cyclical variations in performance and is very sensitive to policy changes. The market is very competitive. Prices of raw materials change based on supply and demand. Margins remain under constant pressure. Any steep reduction in off-take exposes the Company to high fixed costs.

2. A considerable portion of the customers of the Company are situated outside of India. Hence, demand for the Companys product is subject to the health of the global economy.

3. The Company has spread its risks by increasing the geographic spread of its customer base. The Company proposes to improve capacity utilization in its existing facilities. Working capital management will receive high priority.

4. Risk Management Committee (RMC) has been formed w.e.f 21Jun21.

5. RMC shall meet twice a year.

6. The responsibilities of RMC includes formulating risk management policy, implementation of the policy, monitor, evaluate risks, device appropriate methodology, processes and systems.

M M FORGINGS - forging ahead with Manufacturing Excellence

Our goals in the coming months:

? Focus on improving sales in keeping with market conditions.

? Utilizing the production capacity of 1,20,000 Tons.

? Focus on cost reduction continuously - particularly on reducing energy consumption and improving productivity.

? Enhance IT systems with the continued development of the ERP system in place.

? Continue the evolution into green sources of energy in the coming months.

? Reduce the impact on the environment.

Sources :

1. IMF World Economic Output

2. The Economist

3. SIAM data

8. TRANSFER TO RESERVE

Transfer to General Reserve - 32 Crores

9. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The company has made advance to the tune of 82.98 Crores to its Subsidiary Company, DVS Industries Private Limited, repayable at prevailing rates.

The details of the investments made by the company are given in the notes to the financial statements.

10. DIRECTORS

There has been no change in the constitution of Board of Directors during the year under review - the structure of the Board remains the same.

11. RETIRE BY ROTATION

Shri. Vidyashankar Krishnan will retire by rotation and being eligible has offered himself for re-appointment.

12. DETAILS OF DIRECTORS OR KMP RESIGNED DURING THE YEAR - NIL

13. BOARD AND COMMITTEE MEETING DATES

Details are provided in Annexure III of this Report.

14. DETAILS OF RECOMMENDATIONS OF AUDIT COMMITTEE WHICH WERE NOT ACCEPTED BY THE BOARD ALONG WITH REASONS - None

13. RISK MANAGEMENT

Your Company has implemented a mechanism for risk management and has formulated a Risk Management Policy. The Policy provides for identification of risks and mitigation measures. The Audit Committee is informed on the risk assessment and minimizations mechanism adopted by the Company.

The Company has formed Risk Management Committee, which consist of majority of Board Members.

14. RELATED PARTY TRANSACTION

The Company has formulated a policy on related party transactions and the same is uploaded on the Companys website,

https://www.mmforgings.com/uploads/policies/Policy_on_Related_Party_Transactions1.pdf There were no Related Party transactions during the financial year 2020-21 as per Section 188 of the Companies Act, 2013 and the Rules framed thereunder. There are no "Material" contracts or arrangement or transactions at arms length basis.

There are no materially significant Related Party transactions made by the Company with Promoters, Directors, and Key Managerial Personnel which may have a potential conflict with the interest of the Company at large.

For related party transactions as per Accounting Standards, refer Annexure 3, under the head ‘Related Party Disclosures

15. CORPORATE SOCIAL RESPONSIBILITY

A Board Level Committee of CSR has been constituted and the Board has adopted a CSR Policy as recommended by the Committee. The thrust areas of CSR Policy are Eradicating Hunger and Poverty, Education, Combating Diseases and Social Business Projects.

Amount to be spent under CSR for F21 - 165.27 lakhs
Amount spent in F21 - 166.03 lakhs
Excess spent for F21 - 0.76 lakhs

Annual report on CSR has been provided in Annexure III of this Report.

16. POLICY ON DIRECTORSAPPOINTMENT AND REMUNERATION

In terms of provision of section 178 of the Companies Act, 2013 read with Rules prescribed, a policy for the Directors, KMP and other employees has been adopted by the Board of Directors of the Company , which analyzes the criteria for determining qualifications, positive attributes and independence of a Director.

The said Policy is provided in Companys website link

www.mmforgings.com/uploads/policies/Nomination and Remuneration Policy ( amended).pdf

17. PARTICULARS OF EMPLOYEES

The information required under the rules prescribed, has been given in the annexure appended hereto and forms part of this Report.

18. PARTICULARS PURSUANT TO SECTION 197(12) AND THE RELEVANT RULES :

18.1 The ratio of remuneration of each Director to the median remuneration of the employees: Name Ratio

Shri Srinivasan. N 0.00 : 1
Shri Vaidyanathan. V 2.40 : 1
Shri A.Gopalakrishnan 1.80 : 1
Smt Kavitha Vijay 1.80 : 1
Shri Vidyashankar Krishnan 179.22 : 1
Shri Venkataramanan K 178.87 : 1

For this purpose, sitting fees paid to the Directors have not been considered as remuneration.

18.2 Percentage increase in remuneration of each Director, KMP, in the financial year:

Name % Increase
Shri Srinivasan N 91.67%
Shri Vaidyanathan V -1.56%
Shri Gopalakrishnan A 9.56%
Smt Kavitha Vijay 3.55%
Shri Vidyashankar Krishnan -3.40%
Shri K. Venkatramanan -3.52%
Smt J.Sumathi -9.76%
Shri R. Venkatakrishnan -3.09%

18.3 Percentage increase in median remuneration of employees is 64.60% in the financial year 2020-21.

18.4 The number of permanent employees on the rolls of Company : 2203.

18.5 Explanation of relationship between average increase in remuneration and company performance : PAT - ( last year) - 4,623.76 Lakhs; PAT - ( this year) - 4,660.72 Lakhs.

Increase 0.80% against which, the average increase in remuneration is - 30.5%.

18.6 Comparison of remuneration of each KMP against performance of company

Name Designation CTC in Rs. % Decrease PAT Rs. in Lakhs % in PAT
Vidyashankar Krishnan CEO 2,98,61,556 48.08
J.Sumathi Company Secretary 9,91,719 12.62 4,660.72 0.80
R.Venkatakrishnan CFO 15,42,284 3.69

18.7 Variation in market cap/net worth of company:

Date Paid up Capital (Shares) Closing market Price per share in Rs. EPS PE Ratio Market Capitalisation Rs. in Crores
31.03.2020 24,140,800 166.00 19.15 8.67 400.74
31.03.2021 24,140,800 495.00 19.31 25.63 1,194.97

18.8 Justification of increase in managerial remuneration with that of increase in remuneration of other employees.

Average Increase in Remuneration for employees other than Directors and KMP is - 30.50%. Average Increase in Remuneration for KMP and Senior Management is - 3.50%.

18.9 Key parameters for any variable remuneration of Directors:

Directors are paid Commission. However, the overall managerial remuneration payable is subject to the provisions of the Companies Act, 2013.

18.10 Ratio of remuneration of highest paid Director to other employees who gets remuneration more than highest paid Director - NOT APPLICABLE.

18.11 Is remuneration as per remuneration policy of the Company: YES.

19 SIGNIFICANT MATERIAL ORDERS PASSED BY THE REGULATIONS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATIONS IN FUTURE:

Not applicable.

20 MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAS OCCURRED SINCE 31.03.2020 TILL THE DATE OF THE REPORT:

Not applicable.

21 DIRECTORS RESPONSIBILITY STATEMENT:

The Directors have fulfilled their responsibility for the preparation of the accompanying financial statements by taking all reasonable steps to ensure that -

21.1 In the preparation of the annual accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures;

21.2 The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31 March 2021 and of the profit or loss of the company for that period ended on that date;

21.3 The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

21.4 The Directors had prepared the annual accounts on a going concern basis.

21.5 The Directors, had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

21.6 The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

22 ESTABLISHMENT OF VIGIL MECHANISM

The Company has in place a vigil mechanism pursuant to which a Whistle Blower Policy has been in vogue. The Whistle Blower Policy covering all employees and Directors is hosted on the Companys web

https://www.mmforgings.com/uploads/policies/Whistle Blower Policy2.pdf

A high level Committee has been constituted which looks into the complaints raised. The Committee reports to the Audit Committee and the Board.

23 ADEQUACY OF INTERNAL FINANCIAL CONTROL

The Company had laid down Internal Financial Controls and such internal financial controls are adequate with reference to the Financial Statements and were operating effectively.

It also ensures the orderly efficient conduct of its business, including adherence to Companys policies, the safe guarding of its assets, the prevention and detention of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information during the year, such controls were tested and bi-material weakness in the operations were observed.

24 CORPORATE GOVERNANCE REPORT

The guidelines evolved by SEBI were applicable to the company. The company is committed to ethical management and excellence in performance. Details are provided in Annexure III.

25 ANNUAL RETURN

In accordance with the Companies Act, 2013, the annual return in the prescribed format is available at https://www.mmforgings.com/uploads/general share/Annual Return4.pdf

26 A STATEMENT INDICATING THE MANNER IN WHICH FORMAL ANNUAL EVALUATION HAS BEEN MADE BY THE BOARD OF ITS OWN PERFORMANCE AND THAT OF ITS COMMITTEES AND INDIVIDUAL DIRECTORS;

1. Nomination and Remuneration Committee of the Board had prepared and sent through its Chairman draft parameterized feed back forms for evaluation of the Board, Independent Directors and Chairman.

2. Independent Directors at a meeting without anyone from the non-independent Directors and management, considered/evaluated the Boards performance, performance of the Chairman and other non-independent Directors. Their meeting was held on 17 November 2020.

3. The Board subsequently evaluated performance of the Board, the Committees and Independent Directors (without participation of the relevant Director)

4. 1. Observations of board evaluation carried out for the year: The main inputs received from the Directors, covering various aspects of the Boards functioning was with regard to adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgement, safeguarding the interest of the Company and its minority shareholders. The performance evaluation of the Independent Directors was carried out by the entire Board. The performance evaluation of the Non Independent Directors and Top Managerial Personnel were carried out by the Independent Directors. The Directors expressed their satisfaction with the evaluation process.

2. Previous years observations and actions taken - NIL

3. Proposed actions based on current year observations - NIL

27 FAMILIARISATION OF PROGRAMME ARRANGED FOR INDEPENDENT DIRECTORS

• M M Forgings Limited has put in place a system to familiarise the independent Directors about the company, its products, business and the on-going events relating to the company.

• Independent Directors of the Company are made aware of their role, responsibilities and liabilities at the time of their appointment / re-appointment , through a formal letter of appointment, which also stipulates various terms and conditions of their engagement.

• They are also made aware of Companys Board and Board Committee framework, policies and procedures.

• As part of Board Discussions, presentations on business of the Company are made to the Directors from time to time.

• Important announcements and press releases for various news related to the company are forwarded to the Directors from time to time.

• Each member of the Board, including the independent Directors, have been given complete access to any information relating to the Company.

• You may also view the company website https://www.mmforgings.com/uploads/Familiarisation programme/Familiarization programme.pdf

28 AUDITORS:

G R N K & Co., Chartered Accountants (FRN 016847S) have been appointed as the Statutory Auditors of the Company in the 71st Annual General Meeting held on 26 September 2017. They will hold office for a period of five years.

There is no audit qualification, reservation or adverse remark for the year under review.

29. SECRETARIAL AUDIT REPORT

Pursuant to Section 204 of the Companies Act, 2013 and Rules thereunder, the Company has appointed V.Shankar, Practicing Company Secretary (C.P. No. 12974) as the Secretarial Auditor for the financial year 2021-22.

30. COST AUDITOR

Pursuant to the provisions contained in Rule 14 of the Companies ( Audit and Auditors) Rules, 2014, Shri. S. Hariharan ( CP No. 20864) has been appointed as Cost Auditor for the financial year 2021-22

31. SUBSIDIARY COMPANY - DVS INDUSTRIES PRIVATE LIMITED

Incorporated in 1992, DVS Industries (with the paid-up share capital currently being 1,59,29,900 and turn-over of 56.94 Crores in FY 2021) is a North India based player with its manufacturing unit located in Pantnagar, Uttarakhand. DVS Industries is well equipped with robust manufacturing processes, precision equipment, in house tool room inspection facilities, well trained personnel etc.

32 EXPLANATION TO AUDITORS REMARK

There are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors and Company Secretary in practice in their reports respectively. The Statutory Auditors have not reported any incident of fraud to the Audit Committee of the Company in the year under review.

33 SAFETY

Employees have been encouraged to adhere to safety in all their activities in and out of the Company premises. Safety training at all levels have been provided by the Company.

34 DEPOSITS:

The Company does not have any deposits. Fresh deposits are not being accepted by the Company.

35 ENERGY, TECHNOLOGY & FOREIGN EXCHANGE:

Disclosures as per requirements of Section 134 (3) of the Companies Act, 2013, read with the Companies (Accounts)) Rules, 2014 with respect to Energy Conservation, Technology Absorption, Research & Development and Foreign Exchange Earnings / Outgo are given in Annexure

36 DECLARATION GIVEN BY INDEPENDENT DIRECTORS:

All the Independent Directors have given the necessary declarations to the Company as required under sub section (6) of Section 149 of the Companies Act, 2013.

37 PROHIBITION AND REDRESSAL OF SEXUAL HARRASSMENT OF WOMEN AT WORK PLACE

During the year under review, pursuant to the new legislation, ‘Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace Act, 2013 introduced by the Government of India, which came into effect from 09 December 2013, the Company has framed a Policy on Prevention of Sexual Harassment at Workplace. There were no cases reported during the year under review under the said Policy.

Disclosures in relation to the Sexual Harassment of Women in work place :

No. of complaints filed during the year - 0

No of complaints disposed of during the year - 0

No of complaints pending as on the end of the financial year - 0

The company has complied with the provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

38 COVID 19

• The Companys operations were hit substantially for the first 2 Quarters, due to intermittent lock down restrictions.

• Gradually, the lockdown was lifted and manufacturing operations were established through well-rehearsed safety protocols during 3rd and 4th Quarter.

• Corporate Office was shut down during lock down , but the Company adopted Work From Home policy during the entire duration of the lockdown.

• The Company is following Covid-19 guidelines, rules and regulations issued by Central and State governments.

39. BUSINESS RESPONSIBILITY REPORT

The Report is attached to this Report. ( Annexure 5 )

40 INDEPENDENT DIRECTOR SELF ASSESSMENT TEST

• Shri. N. Srinivasan and Shri. V. Vaidyanathan are exempted from undergoing self assessment test.

• Shri A. Gopalakrishnan and Smt. Kavitha Vijay have passed the self assessment test conducted by the Ministry of Corporate Affairs.

41 ACKNOWLEDGEMENT:

Your Directors would like to express their gratitude for the cooperation and continued assistance received from Citibank N.A., DBS bank , HDFC Bank, State Bank of India, ICICI Bank and Federal Bank

Your Directors wish to record their appreciation for the exemplary services rendered by the employees of the company. The results achieved would not have been possible but for their outstanding effort.

Above all the Directors thank the shareholders for their continued confidence in the management.