Maral Overseas Ltd Management Discussions

and Analysis

Global Economy

The global economy continues to operate amid a complex and uncertain landscape, due to heightened macroeconomic volatility, shifting trade dynamics, and ongoing fiscal pressures. Despite ongoing geopolitical tensions and financial headwinds, global economic growth remained steady at 3.3% in 2025.

Major Economies in 2025

Growth in advanced economies stood at 1.7% in 2025, with high-tech investment providing a partial offset. The US economic activity faced headwinds from trade barriers but gradually improved, supported by expansionary fiscal policy, resilient consumer spending and a strong labour market. The European Union showed resilience with a steady 1.4% growth in 2025, primarily driven by stable consumer spending and labour markets. However, higher tariffs and heightened geopolitical tension weighed on export performance. On the other hand, China posted positive growth of 5.0% in 2025, supported by strong policy measures that bolstered domestic demand and robust exports to non-US markets, despite some temporary tariff pressures.

Strong demand for goods produced in emerging markets has supported steady growth in industrial output during the year. Factory production in these economies increased by 3.1%, reflecting a notable improvement. In contrast, industrial output in advanced economies grew by 1.3%. As in recent years, emerging markets remained the key contributors to global industrial growth.

- Infiation Dynamics and Commodity Price Trends

Global headline inflation is expected to decline from an estimated 4.1% in 2025 to 3.8% in

. 2026, with advanced economies gradually aligning with their target levels. Commodity prices showed divergent trends because of ample supply and sluggish demand. Global oil prices remained stable throughout the year, primarily driven by improved production levels and easing supply-side constraints.

Trade Dynamics and Tariff Developments

In 2025, a sharp increase in tariffs by the United States triggered trade frictions across global markets, raising trade costs, restricting market access, and creating uncertainty across supply chains. Despite these challenges, global trade demonstrated resilience, with economies gradually adapting to shifting trade dynamics and evolving policy environments. This period of adjustment encouraged businesses and governments to realign supply chains and explore new trade partnerships, creating opportunities for more sustainable and inclusive growth. As a result, global trade expanded by 3.8%, supported by robust merchandise trade and the front-loading of shipments ahead of anticipated tariff changes.

Advanced economies are expected to witness modest output growth of 1.4%, in contrast to stronger growth of 3.7% in emerging markets and developing economies (EMDEs).

Financial Landscape

Global financial markets and cross-border capital flows remained vulnerable during the year, with equity markets showing fluctuations across regions and valuations appearing stretched in some economies. At the same time, global debt reached a record high by the end of 2025, due to persistent fiscal deficits in major economies. The US dollar is steadily appreciating, solidifying its leadership in the global financial landscape.

Momentum across Economies

Regional Growth (%)	2026 **	2025	2024
World Output	3.3	3.3	3.2
Advanced Economies	1.8	1.7	1.8
Emerging and Developing Economies	4.2	4.4	4.3

Outlook

The global economic outlook demonstrates resilience and opportunity. Global output is anticipated to grow steadily by 3.3% in 2026 and 2027, with the US maintaining strong momentum and emerging economies exhibiting significant growth potential. Advanced economies, particularly in Europe, are expected to experience moderate growth. Economic policy shifts are likely to drive businesses to adapt, innovate, and compete in a rapidly changing global market. This evolving landscape has been further intensi_ed by escalating geopolitical tensions in the Middle

East, particularly the Iran–Israel/ US conflict and disruptions around the Strait of Hormuz.

Collectively, these developments are shaping a more complex operating environment, requiring organisations to enhance strategic planning, agility, and resilience across industries.

Global Economic Trends and Maral Overseas

Major Economy Trends	Type	Impact on Maral Overseas
Emerging and Developing Economies (EMDEs) growth at 4.2–4.4%	Opportunity	Rising incomes in core markets are driving demand and premiumisation across value-added and sustainable textile products. This could facilitate an improvement in the Companys profitability.
Global inflation easing from 4.1% to 3.8%	Opportunity	Lower input cost across key raw materials such as cotton, man-made _bres, dyes and logistics will help improve business profitability.
Industrial output in EMDEs up 3.1%	Opportunity	Higher industrial activity boosts demand for textiles across apparel and industrial segments. This could positively impact Marals sales and exports, while improving capacity utilisation and operating leverage.
Global trade expanding 3.8%; supply chain realignment	Opportunity	New export corridors are opening for Indian textiles as global supply chains realign post-tariff disruptions—particularly towards Southeast Asia, the Middle East and Africa.
US tariff escalation; financial market volatility	Risk	As Indian financial markets are closely linked with their international counterparts, they may face similar pressures. This could have an impact on the Companys market capitalisation.
US dollar appreciating	Opportunity	Being an exporter of specialised yarns and garments, a depreciating rupee would be beneficial to the Company

Indian Economy

India exhibited resilient economic momentum and remained among the fastest-growing major economies in the previous two years, supported by steady consumption, improving rural demand, a robust services sector, and a rising share of high-value manufacturing in exports, with GDP growth reaching 7.7% in FY2026 following 7.1% in FY2025.

Macroeconomic Environment

In FY2026, annual inflation fell to 1.7%, down from 4.7% in the previous year, aided by favourable weather, stable commodity prices, improved supply chains, and a sharp drop in vegetable prices. Amid a moderation in inflation, the Reserve Bank of India initiated a monetary easing cycle, reducing the repo rate from 6.25% in April to 5.50% in June. Building on this supportive policy stance, the RBI further introduced targeted trade relief measures in November 2025—particularly benefiting the textile sector—to cushion the impact of global trade disruptions, including the 50% tariff imposed by the United States on selected Indian goods in August 2025.

Urban unemployment also improved, signalling a strengtheninglabourmarket.These factors boosted consumption growth through better liquidity and higher disposable incomes. Rising incomes and urbanisation supported consumption-led growth, with demand strengthened by a shift toward branded, value-added, and convenience products.

Industry Landscape

In FY2026, the industrial sector demonstrated robust expansion, witnessing growth of 7.8% in December 2025, underpinned by a 2.6% rise in the core sector between April and December 2025. The

India Manufacturing Purchasing Managers Index (PMI) moderated to 53.9 in March 2026 from 56.9 in February 2026; however, it remained firmly in expansion territory, reflecting sustained business activity and investment sentiment. Concurrently, net Goods and Services Tax (GST) collections increased by 7.1% to _19.34 Lakh Crore during the fiscal year, underscoringheightenedeconomic activity despite prevailing global economic challenges.

Outlook

In FY2027, the Indian economy is poised to achieve accelerated growth relative to the preceding year, with real GDP forecast to expand by 7% to 7.4%, buoyed by resilient private consumption. Although global uncertainties—such as economic deceleration and escalating protectionist tendencies—pose risks to this trajectory, Indias proactive trade engagements are expected to serve as a mitigating force. Strategic trade agreements with pivotal partners, including the United Kingdom, the United States, and the European Union, are anticipated to deepen bilateral commerce by enhancing market access for goods and services. These accords prioritise labour-intensive sectors, bolster the "Make in India" initiative, elevate export competitiveness, and facilitate greater mobility for Indian professionals through streamlined access provisions for service providers, business visitors, and independent professionals, thereby reinforcing Indias position in the global economic landscape.

Global Textile Market

The global textile industry remains a cornerstone of the manufacturing sector, playing a pivotal role in economic development and international trade. Established production powerhouses such as China, India, Bangladesh, and Turkey continue to anchor the industrys value chain, while emerging markets like Vietnam have significantly bolstered their global stature. Valued at US$ 1,065.45 billion in 2025, the sector is intricately linked to the dynamics of the fashion, retail, and home furnishing industries, adapting swiftly to evolving consumer preferences and lifestyle trends.

Sustainability has emerged as a defining imperative, with heightened focus on environmentally responsible practices and resource efficiency. Global frameworks like the Paris Agreement have accelerated the drive toward net-zero emissions, fostering collaborative efforts between governments and industry stakeholders. Supported by regulatory frameworks and breakthroughs in carbon-reduction technologies, the textile sector is progressively advancing toward a sustainable future.

Technological innovation is reshaping the landscape through advancements in smart fabrics and technical textiles, unlocking new avenues for growth and application. Concurrently, global textile trade remains subject to external pressures, including trade policies, tariff regimes, and shifting geopolitical forces, which demand strategic agility from industry participants.

The rapid rise of e-commerce has revolutionised traditional business models, expanding market reach and enabling companies to engage with a broader consumer base. As the industry evolves, success hinges on balancing growth, sustainability, and innovation to drive enduring value creation in a complex global environment.

Performance in FY2026

In FY2026, the global textile and fashion industry navigated a rapidly evolving landscape marked by shifting trade dynamics, changing consumer behaviours, and accelerating technological innovation. The continuation of US tariffs reshaped global trade flows, compelling brands and suppliers to adopt more agile sourcing strategies. Concurrently, consumers increasingly favoured value-driven spending, emphasising personal well-being and product longevity, thereby reshaping demand across markets. The swift rise of artificial intelligence further propelled the industry into a dynamic, technology-driven ecosystem.

These trends underscored deeper structural transformations within the sector. Despite persistent challenges, the industry exhibited notable resilience through ongoing innovation and strategic realignment. However, pressures remained evident, with global capacity utilisation moderating to 73%, indicating underutilised production despite a recovery from prior lows.

Regional performance diverged amid varying economic conditions and consumer preferences. Export-driven economies like China and parts of Europe faced headwinds from subdued Western demand and tariff barriers but began regaining competitiveness through structural shifts toward higher-value growth. Conversely, South Asia and South America emerged as robust performers, leveraging competitive labour costs and manufacturing capabilities. Bangladesh and Vietnam, in particular, attracted increased foreign investment, expanding their global textile trade share. Overall, it was a year of transition—marked by resilience and adaptation—positioning the industry for sustainable, long-term growth.

Outlook

As the global fashion and textile industry moves into 2026, it is navigating a significantly transformed landscape shaped by evolving trade dynamics, shifting consumer preferences, and rapid technological advancements. These factors are collectively redefining operating models and competitive positioning across the value chain.

Looking ahead, the industry is poised for sustained expansion, and the market is expected to grow to US$1,955.50 billion by 2034, with a CAGR of 7.11%. This growth trajectory underscores strong underlying demand, supported by innovation, digital integration, and a continued shift towards sustainable and resilient supply chains.

Indian Textile & Apparel Sector

The Indian textile industry remains a vital pillar of the nations manufacturing landscape, characterised by a comprehensive and well-integrated value chain spanning _bres, yarns, fabrics, and apparel. Leveraging abundant raw material availability, a large skilled workforce, and strong production capabilities, the sector continues to drive industrial output, generate substantial employment, and contribute significantly to export growth.

Boasting a balanced blend of natural and synthetic _bres, the industry is well-positioned to meet diverse domestic and global demand. It has evolved from a volume-centric model to one focused on value addition, innovation, and design-led products, thereby enhancing its competitiveness on the global stage.

Robust domestic consumption, fuelled by a growing middle-income segment, underpins steady demand. At the same time, Indias deeper integration into international supply chains has reinforced its reputation as a dependable sourcing hub, capable of serving a wide array of markets with a broad and diversified textile portfolio.

Industry 2025-26: Shifting Paradigms

InFY2026,theIndiantextileindustry navigated a year of measured resilience, as robust domestic demand offset a relatively subdued export environment. Global headwinds—including geopolitical tensions, elevated tariff regimes, and uneven demand across key international markets—continued to weigh on export performance. Despite these challenges, the sector demonstrated adaptability by recalibrating operations and sharpening its focus on efficiency. The domestic market emerged as a critical anchor, underpinned by steady consumer demand, expansion in organised retail, and rising consumption across both urban and semi-urban geographies. To sustain profitability, companies increasingly prioritised value-added offerings, broadened their product portfolios, and implemented disciplined cost management strategies.

At the same time, margin pressures intensi_ed due to persistent cost inflation. Volatility in raw material prices—particularly cotton—alongside elevated logistics and energy costs, constrained profitability. In response, certain regions witnessed calibrated production cuts and a more cautious alignment of output with demand dynamics.

Looking ahead, domestic demand is expected to remain the primary growth engine for the industry. Structural drivers such as rising disposable incomes, accelerated urbanisation, the proliferation of e-commerce, and evolving consumer preferences—particularly towards fashion, athleisure, and lifestyle segments—are set to sustain momentum. Concurrently, the industry is undergoing a gradual transformation, marked by a shift towards larger, integrated operations and increased adoption of advanced technologies to enhanceproductivityandefficiency. There is also a discernible pivot towards sustainability, including the growing adoption of recycled man-made _bres. In parallel, companies are diversifying their export footprint, exploring new markets to mitigate concentration risks and reinforce their global competitiveness.

Global opportunities: FTAs are not just incremental enablers—they are materially resetting the competitive baseline for Indian exporters.

New Free Trade Agreements (FTAs) with key markets such as Australia, the UAE, the UK, and the EU are effectively creating a more level playing field for India within the global textile and apparel trade ecosystem. By reducing or eliminating tariff disadvantages vis-?-vis competing sourcing hubs, these agreements are enhancing the cost competitiveness of Indian exporters and improving market access in high-potential regions. This structural advantage is unlocking significant opportunities for the domestic textile sector to scale its global footprint.

As tariff barriers ease, the industry is transitioning from a volume-led paradigm to a more value-centric export strategy. There is a sharper focus on product differentiation, compliance with evolving global standards, and stronger branding and positioning capabilities—enabling Indian players to compete not just on cost, but on quality, innovation, and reliability.

This shift is closely aligned with Indias ambition to achieve apparel exports of US$40 billion by 2030, as articulated by the Apparel Export Promotion Council (AEPC).

The target is supported by a more enabling trade architecture, deeper penetration into emerging markets, and reinforced engagement with established regions such as the US, EU, and the UK. Collectively, FTAs are acting as catalysts—driving competitiveness, expanding opportunities, and positioning Indias textile sector for more sustainable and accelerated export growth.

Government Initiatives

Union Budget FY2026: In the Union Budget FY2026, the Government allocated _5,272 Crore to the Ministry of Textiles, a 19% increase over the previous year, with a targeted focus on improving cotton productivity and strengthening the sectors growth outlook.

Production Linked Incentive (PLI) Scheme: An investment of _10,683 Crore has been earmarked to accelerate domestic manufacturing in MMF apparel, fabrics, and technical textiles. PM MITRA: The government is setting up seven PM MITRA mega textile parks to build integrated manufacturing ecosystems supported by world-class infrastructure and scale efficiencies.

Kasturi Cotton: A collaborative initiative by the Ministry of Textiles and industry stakeholders to produce premium value Indian cotton by aligning production with benchmarked quality specifications.

National Fibre Scheme: Designed to expand domestic _bre capacity across natural and man-made segments, diversify beyond cotton, and accelerate innovation in next-generation textile materials.

TextileExpansionandEmployment Scheme: The programme aims to modernise traditional textile clusters by enabling technology upgrades, providing capital support, and establishing common testing and certification facilities.

National Handloom and Handicraft Programme: The initiative integrates existing schemes to support weavers and artisans, improve incomes, and strengthen market linkages while preserving Indias textile heritage.

Tex-Eco Initiative: It aims to advance sustainable textile manufacturing practices and position the industry competitively in line with global sustainability benchmarks.

Samarth 2.0: The upgraded programme focuses on building a stronger workforce through structured collaboration with industry and academic institutions.

Bharat Tex 2026: Recognised as one of the youngest and largest global textile events, the platform— supported by the Government—fosters partnerships, drives economic growth, and showcases the convergence of Indias rich textile heritage with modern innovation.

The Road Ahead

Indias textile and apparel industry is entering a decisive phase, supported by favourable policy measures, improving global demand, and a structural shift towards higher-value segments such as MMF and technical textiles. However, challenges such as raw material price volatility, global competition, and trade uncertainties continue. The sector also operates in a complex geopolitical environment, including the Russia–Ukraine war, instability in the Middle East impacting the Strait of Hormuz amid Iran–Israel/US tensions, and episodic developments such as Operation Sindoor, all of which have affected trade routes, freight costs, and supply chain stability.

On the domestic front, reforms such as the Indian Labour Codes have led to higher compliance and employee-related costs for companies in the near term.

Despite these headwinds, the sectors strong raw material base, skilled workforce, and growing domestic demand provide resilience.Withinthiscontext,Maral has effectively navigated recent challenges and strengthened its operational resilience, positioning itself to capitalise on emerging opportunities across global value chains, supported by policy thrust, modern manufacturing investments, and deeper integration into export markets.

The Yarn Operations in FY2026

After navigating two challenging years marked by subdued demand, the Indian cotton spinning industry has begun to show signs of recovery. FY2026 marked a turning point with a 9% YoY growth, setting the stage for a gradual revival. However, the momentum softened slightly in H1 FY2026, with production witnessing a marginal decline of ~1.1% YoY. Encouragingly, domestic consumption-accounting for over 70% of total output-helped the market to remain resilient.

On the export front, the story was more nuanced. Weak offtake from China led to an ~8% decline in yarn exports, reducing the export share to ~30%. A sharp drop in shipments to China highlighted the impact of subdued global apparel demand and higher domestic cotton usage there. Yet, this decline was partially offset by stronger demand from Bangladesh, whose share in exports rose significantly to 47%. While this shift offered temporary support, its sustainability remains uncertain amid evolving geopolitical dynamics.

Amid these demand shifts, pricing dynamics offered some relief. Cotton yarn realisations improved steadily, even as cotton prices remained relatively subdued. This favourable spread between yarn prices and input costs led to a rise in average spot contribution margins to _97/kg in 8M FY2026, compared to _90/kg in FY2025. As a result, domestic spinners are witnessing an improvement in profitability, supported by better operating leverage.

Looking ahead, the industry appears cautiously optimistic. Demand is expected to strengthen further in FY2027, driven by recovery in key apparel markets such as the US and EU, along with the ongoing China+1 sourcing shift.

The Garments in Focus

Indias Ready-Made Garment (RMG) sector demonstrated resilience, posting a 2.4% growth in exports during April–December 2025, despite facing headwinds from high US tariffs. Exports to the United States were constrained by tariffs, but this shortfall was largely offset by stronger shipments to the EU, the UAE, and FTA partner nations, with Japan emerging as a significant market.

On a cumulative basis, RMG exports reached US$11,584.3 Million during April–December 2025-26, up from US$11,316.6 Million in the same period of the previous year. This growth underscores the industrys ability to navigate external pressures and diversify its market footprint. Looking ahead, the outlook for RMG exports remains positive. The finalisation of the India–EU Free Trade Agreement (FTA), along with the rollover of the India–UK FTA, is expected to provide a further boost, opening new avenues for growth and strengthening Indias position in the global apparel market. The sectors adaptability and strategic market diversification continue to underpin its steady performance amid global trade uncertainties.

Business Performance

The challenges that had impacted the textile industry in the preceding year continued to shape performance in FY2026, further exacerbated by elevated tariffs in key global markets. Although early signs of stabilisation began to surface, persistent demand pressures, trade-related headwinds, and market imbalances continued to constrain overall business momentum. In navigating this environment, Maral concentrated on factors within its control—prioritising operational efficiency, cost optimisation, and reinforcing core business fundamentals. Strengthening relationships with existing customers remained a strategic priority, recognising that robust partnerships were vital for resilience amid market volatility. Simultaneously, the Company sustained its commitment to product development and innovation, critical drivers of long-term growth. This focus ensured Marals offerings remained relevant, competitive, and aligned with evolving market dynamics as the industry gradually recovered. A significant achievement during the year was the successful scaling of melange yarn production, which operated at full capacity. This milestone reflected strong demand and enhanced operational efficiency, aligning with Marals strategic growth trajectory and laying a solid foundation for future profitability and segment expansion.

To bolster its market positioning and product strategy while maintaining rigorous focus on efficiency and sustainable growth, Maral implemented a robust suite of internal processes and operational frameworks. These initiatives, grounded in a clear understanding of organisational priorities, aimed to elevate productivity and drive excellence in execution.

Concurrently, Maral proactively entered new markets and intensi_ed client acquisition efforts to broaden its footprint and diversify its revenue streams. Going forward, the strategic focus will remain on optimising the product mix to enhance profitability and efficiency. This includes prioritising high-demand, value-added products, streamlining operations to achieve cost efficiencies, and leveraging economies of scale. The Company will continue to closely track market trends and evolving customer preferences, ensuring its portfolio remains agile, competitive and aligned for sustained long-term growth.

Financial Performance

Your Company achieved a turnover of _ 980.87 Crore for the financial year ended 31^st March 2026 against _1,047.03 Crore in the previous financial year ended 31^st March 2025. Further, the Company achieved an operational profit of _71.19 Crore for the financial year ended 31^st March 2026 as against _45.22 Crore in the previous financial year. The Company recorded a Net Profit of _3.26 Crore for the financial year ended 31^st March 2026 as against a Net loss of _24.20 Crore reported in the previous financial year.

The segment-wise revenue performance of your Company for the financial year ended 31^st March 2026 were _532.22 Crore, _258.57 Crore and _ 190.07 Crore for Yarn, Fabric and Garments respectively.

Change in Return on Net Worth in Comparison to the Previous Year: The Management utilised business liquidity for investing in strategic decisions that promise to sustain growth over the medium term. During FY2026, the Net worth increased from _108.89 Crore as at 31^st March 2025 to _110.74 Crore as at 31^st March 2026. The return on net worth was 2.95% in FY2026 against (22.22)% in the FY2025.

Significant Changes in Key Financial Ratios: In accordance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of significant changes i.e., change of 25% or more in key financial ratios as compared to the immediate previous financial year, along with detailed explanations are reported hereunder.

Key Ratios:

Ratios	FY2026	FY2025 Stability Ratios	% Change	Remarks
Debt-equity Ratio (in times)	1.28	1.70	(24.71)	Due to repayment of long-term loans
Interest Coverage Ratio (in times)	3.00	1.57	91.08	Due to increase in profits
		Liquidity Ratios
Current Ratio (in times)	1.06	1.01	5.53	-
Debtor Turnover Ratio (in times)	7.38	8.06	(8.39)	-
Inventory Turnover Ratio (in times)	7.29	6.98	4.41	-
		Profitability Ratios
Operating Profit Margin (%)	7.26	4.32	68.04	Due to increase in profits
Net Profit Margin (%)	0.33	(2.31)	114.39	Due to increase in profits

Disclosure of Accounting Treatment

The Company has applied consistent accounting treatments in accordance with the relevant Accounting Standards in preparing its financial statements.

Internal Control and Its Adequacy

The Company has instituted a robust internal control framework commensurate with its scale and operational complexity. This framework is meticulously designed to provide reasonable assurance on the accuracy and reliability of financial and operational data, compliance with applicable laws and regulations, safeguarding of assets, and strict adherence to corporate policies. It encompasses all critical business functions, including governance, compliance, audit, control, and reporting.

A sophisticated ERP system, underpinned by well-defined processes, ensures accuracy in data capture and enhances the integrityoffinancialandoperational information, while facilitating statutory compliance. Internal audit findings undergo an in-depth review by the Management and the Audit Committee of the Board and necessary corrective actions are taken. These evaluations further bolster effective risk identification and mitigation.

To ensure uninterrupted business continuity,theCompanyproactively implements appropriate measures. It engages independent firms of Chartered Accountants to assess and monitor the ef_cacy of internal controls. Moreover, the internal control systems and processes are continuously reviewed and refined to remain responsive to the changing business landscape.

Human Resources

Maral recognises that its people are its greatest strength. The Company fosters a supportive and performance-driven work environment through fair compensation practices and a culture that encourages learning, creativity, and growth. Employee-ledinitiativesandvoluntaryprojects further promote innovation and help individuals realise their full potential. In addition, the presence of experienced Independent Directors brings valuable strategic perspective and guidance.

The Companys HR policies are thoughtfully structured to build a skilled, agile, and future-ready workforce. These policies encourage adaptability, promote speed in execution, and nurture a growth-oriented mindset, enabling employees to respond effectively to evolving business dynamics. A strong focus on transparency and fairness is embedded in performance management practices, supported by open evaluation systems and gender-neutral policies. This ensures equal opportunities for all employees and reinforces a workplace culture based on merit, inclusivity, and respect. The Company also prioritises employee well-being by providing a safe and secure environment where contributions are recognised and valued. Recognising the importance of continuous improvement, the Company actively encourages employee feedback through structured appraisal mechanisms. This fosters open communication and constructive dialogue, helping the organisation stay aligned with employee expectations while continuously enhancing its people practices.

Risk Management

Risk is an inherent aspect of business operations, and Maral is steadfast in its commitment to proactive and structured risk management. While risks can never be entirely eradicated, the Company prioritises minimising their impact through a comprehensive risk management framework.

Maral employs an independent, systematic approach to the continuous identification, assessment, and mitigation of risks. This enables timely interventions to mitigate potential disruptions and ensure the continuity of business operations. Oversight of the risk management framework is entrusted to the Board of Directors and the Audit Committee, who conduct regular reviews of its effectiveness. During the year, the framework was thoroughly evaluated and confirmed to be functioning efficiently, with no material weaknesses detected in its design or execution.