Raghav Productivity Enhancers Ltd Management Discussions

Global Economy Overview

The global economy demonstrated remarkable resilience in 2023. According to the International Monetary Fund (IMF), the global economy grew by 3.2%. While advanced economies expanded by 1.6%, emerging market and middle-income economies stood out as the fastest-growing region, achieving a growth rate of 4.1%, this growth was achieved by defying several challenges. These include geopolitical tensions between Russia and Ukraine, ongoing attacks in the Red Sea, disrupted global trade flows, increased transportation costs, and strained supply chains. Additionally, higher inflation affected global economic growth, leading various central banks to tighten monetary policy and raise interest rates in a synchronised manner. This impacted overall business conditions. Moreover, the slow economic recovery in China and other large emerging market economies has an additional impact on global trade. Also, the Euro area is witnessing a slow growth of 0.4% in 2023.

On the positive side, the global headline inflation receded faster than expected. It declined from 8.7% in 2022 to 6.8% in 2023 and is further expected to decline 5.9% in 2024 and to 4.5% in 2025. Other factors propelling the global economy include the United States and other large emerging market and middle-income economies, which have shown significant signs of recovery. The US economy grew by 2.5% in 2023, and the projection for growth in 2024 has been revised by 0.6% from the earlier estimations and stands at 2.7%. The economic recovery in the US region is supported by stronger-than-expected private consumption, despite labour markets that remain tight, albeit easing. In advanced economies, households have boosted their spending by tapping into the savings accumulated during the pandemic. Moreover, government spending exceeding expectations has additionally strengthened aggregate demand in most regions.

exacerbate the situation, thereby posing significant risks to the global economy. Nevertheless, as inflation is expected to continue its downward trend towards target levels, central banks in major economies are generally anticipated to begin reducing policy rates in the latter half of 2024.

Indian Economy Overview

Amidst the global slowdown, the Indian economy has demonstrated remarkable resilience. According to the second advance estimate of National Income for FY 2023-24, the Indian economy grew by 7.6% in FY 2023-24, surpassing the growth rate of 7.0% in FY 2022-23. Also, the construction and manufacturing sectors demonstrated robust growth achieving an expansion of 10.7% and 8.5%. This economic success can be attributed to several key factors, including robust domestic demand, abating inflation, and supportive government policies.

During FY 2023-24, the GST collection reached the 20.18 lakh crore mark, reflecting an 11.7% growth, supported by robust domestic demand. Moreover, the Index of Industrial Production (IIP) shows that Indias industrial output increased by 6.1% in the first three quarters of FY 2023-24, up from 5.5% in the same period last year. The broad-based economic growth is evident from the upward trend in both the Index of Industrial Production (IIP) data and the GST collections. This trend signifies robust activity across multiple sectors, highlighting their contribution to the overall health of the economy. Furthermore, from April to February in FY 2023-24, the combined growth rate of the Index of Eight Core Industries (ICI) stood at 7.7% (provisional), marking an expansion compared to the corresponding period last year. The growth in ICI suggests a strengthening foundation for overall economic growth.

The Indian economy is witnessing a faster disinflation. During FY 2022-23, Indias average CPI inflation stood at 6.7%, exceeding the RBIs tolerance band of 4% (+/- 2%). To address the inflationary pressure, the Reserve Bank of India (RBI) tightened its monetary policy and holding the repo rate steady at 6.5% for past seven consecutive policy review. The higher interest rate and tighter monetary policy have helped to moderate inflation, leading to an average inflation rate of 5.4% in FY 2023-24 despite food supply shocks. Looking ahead, it is projected that inflation will further contract to 4.5% in the next financial year.

The global economic slowdown and continuous attack on the Red Sea have significantly affected Indias Merchandise Exports. Total exports in FY 2023-24 amounted to USD 437.06 billion, reflecting a contraction of 3.09% compared to the previous fiscal year. Concurrently, Indias imports also decreased by 5.41% to USD 677.24 billion, thereby sustaining the overall trade balance.

Outlook

The Indian economy is set for a promising outlook in the upcoming financial year. The RBI has projected a growth rate of 7% for FY 2024-25. Meanwhile, the IMF predicts that the Indian economy will grow by 6.8% in CY 2024 and by 6.5% in 2025. However, any escalation of conflicts in the geopolitical landscape could exacerbate inflationary pressures and impact trade. Also, the prolonged higher interest rates could negatively affect the overall business environment. Despite these challenges, the Indian economy is expected to display resilience, supported by the proactive measures taken by the government. In a significant move, the government has augmented capital expenditure by allocating

11.11 trillion for infrastructure development projects in FY 2024-25. Moreover, various government initiatives such as the Production Linked Incentive (PLI) scheme, streamlined policies to facilitate trade and investment, raised FDI limits, and enhanced infrastructure facilities will provide support to the Indian economy.

Industry Overview

Silica Ramming Mass overview

Silica ramming mass, a specialised refractory material crucial for high-temperature industrial applications, is predominantly composed of high-purity silica. This material demonstrates exceptional thermal stability and resistance to thermal shock, making it the most suitable refractory product for lining induction furnaces. Engineered to withstand extreme heat, corrosion, and mechanical stress, silica ramming mass ensures the longevity and efficiency of industrial processes. Being an essential refractory material, it is indispensable for producing high-quality steel and alloys, playing a vital role in modern metallurgical operations.

Induction furnaces are vital in the steel, copper, aluminium, and zinc industries for their clean, energy-efficient, and precise melting processes. Among these, the steel industry stands out as the largest revenue generator. Advancements in metallurgy and furnace technology will further boost the requirement for advanced refractory materials including silica ramming mass.

One significant trend is the increasing demand for customised formulations of silica ramming mass to optimise furnace performance. Concurrently, ongoing research is focused on enhancing its thermal conductivity and resistance for extremely high-temperature applications, which is expected to further drive the demand.

Raghav Productivity Enhancers Limited (RPEL) is at the forefront of producing high-quality silica ramming mass, leveraging its exceptional properties. This material is highly esteemed for its chemical inertness, superior structural strength, remarkable erosion resistance, and compelling cost-effectiveness, making it a go-to choice for various industrial applications.

Indian Induction Furnace Industry Overview

The valuation of the Indian induction furnace stood at USD 1,229.57 million, with market projections indicating a growth of USD 84.85 million, reflecting a compound annual growth rate (CAGR) of 6.9% from 2023 to 2028. This growth is expected to be driven by several factors such as the rising demand for steel and alloys, the increasing government support to boost industrial expansion, and the growing foundry industry in India.

There are two primary types of induction furnaces: channel induction furnaces and coreless induction furnaces. Channel induction furnaces hold the largest market share, and is mainly used for alloys with low melting points. These furnaces consist of a refractory-lined steel shell that contains molten metal. At the same time, a coreless induction furnace is an electric furnace that melts metals using electromagnetic induction. An AC passes through a coil, creating a magnetic field that induces eddy currents in the metal, generating heat and melting it. These furnaces are efficient, offer precise temperature control, and are ideal for melting and alloying metals in foundries. Due to their clean, energy-efficient, and controllable melting process, induction furnaces are extensively used in the steel, copper, aluminium, and zinc industries.

The growing need for premium-grade alloys and metals under environmentally sustainable conditions has driven the extensive adoption of induction furnaces in foundries for processing steel, cast iron, and nonferrous metals. Industrial induction furnaces play a pivotal role in diverse operations such as smelting, steelmaking, metal casting, and heat treatment.

The growth in the induction furnace market is being driven by several key factors. The governments strong commitment to boosting manufacturing capacity, through initiatives like the Make in India campaign and Production Linked Incentive (PLI) schemes, has played a significant role. Additionally, the rapid expansion of the railway sector and metro projects, leading to increased demand for smelting, mining, and metal alloy machinery, is fuelling the need for induction furnaces.

The fast-growing renewable energy market, Indias robust infrastructure investments (aimed at accommodating its expanding urban population), the affordable housing segment, and the rising demand for metal castings from the automotive sector, are boosting metal consumption which is further contributing to the demand of induction furnace.

To meet this growing demand, India plans to rely on domestic steel production under its National Steel Policy, targeting a 175 million tons per annum (MTPA) increase in steelmaking capacity by 2030. This expansion necessitates the construction of numerous blast furnaces, thereby increasing the demand for refined metals and strengthening the adoption of induction furnaces.

Indian Ramming Mass Industry Overview

The silica ramming mass industry is predominantly situated in central and north India, characterised by a primarily unorganised structure. Production facilities in these regions typically boast average capacities of 10 KTPA and 15 KTPA, respectively.

On average, 30 Kg of silica ramming mass is consumed per tonne of steel production. The demand for silica ramming mass is closely linked to steel production capacity, with about 70% of ramming mass used for lining induction furnaces in crude steel manufacturing plants. The steel industrys growth also increases the demand for high-quality refractory materials including silica ramming mass. Also, the construction and infrastructure sectors indirectly contribute to demand by supporting steel production efficiency. The domestic demand for ramming mass is anticipated to grow at a CAGR of 5-5.5% between FY 2020-21 and FY 2024-25, reaching approximately 2300 KT by FY 2024-25.

In India, most steel and foundry manufacturers prefer domestically sourced silica (acidic) ramming mass due to its easy availability, timely procurement, and comparatively lower logistics costs for domestic purchases compared to exports. The domestic production of ramming mass in India is further supported by various government initiatives, including Make in India and Atmanirbhar Bharat campaign, which aim to reduce imports of silica ramming mass from China and other countries. India is also the worlds largest exporter of silica ramming mass, with major export destinations including Saudi Arabia, Kenya, and Uganda.

Global Steel Industry Overview

During CY 2023, the global steel industry encountered obstacles, experiencing stagnant output caused by geopolitical tensions between Russia and Ukraine, as well as conflicts between Israel and Gaza. Thesefactorscontributedtoheightenedrawmaterialpricesanddisruptions in the supply chain and trade, culminating in a period of sluggishness for the industry. Additionally, higher inflation rates and a weakened business environment impacted the global steel demand. According to the World Steel Association, global crude steel production totalled 1,888.2 MT in 2023. China, the worlds largest steel manufacturer, continued to reduce its steel production by ~15% to comply with total production control policies aimed at reducing carbon emissions. In the European Union, crude steel production declined by 7.4% to 126.3 MT compared to 2022. Germany, the largest steel producer in Europe, experienced its lowest steel production volume since 2009, reaching approximately 35.4 MT. This decline of 3.9% year-on-year was attributed to weak fundamentals and high international electricity prices.

India Steel Industry Overview

India, the worlds second-largest steel producer, and crossed 161 million metric tonne (MT) capacity, comprising of 67 MT by blast furnace-basic oxygen furnace, 36MT by electric arc furnace, 58MT by induction furnace. As per the national steel policy, India has a target of installing 300MT by 2030. The governments focus on infrastructure development through initiatives like the Gati-Shakti Master Plan and the Make in India campaign, along with other flagship schemes, is driving steel consumption. Additionally, the auto and engineering sectors are pivotal in propelling demand. Indias growing population and ongoing urbanisation trends are also shaping the trajectory of steel consumption.

Under the Production Linked Incentive (PLI) Scheme for Specialty Steel, 57 Memorandums of Understanding (MoUs) have been signed, aiming to generate an investment of 29,500 crores. This initiative is expected to create an additional production capacity of 25 million tons for specialty steel grades and provide employment for approximately 17,000 people by the fiscal year 2027-28.

India, the worlds second-largest steel producer, surpassed 161 million metric tonnes (MT) of capacity, with 67 MT from blast furnace-basic oxygen furnace (BOF), 36 MT from electric arc furnace (EAF), and 58 MT from induction furnace (IF). Data shows that IF production grew 25% year-on-year to 50 MT, EAFs by 12% to 31 MT, and BOF by 5% to 61 MT. Combined, IF and EAF contributed 82 MT, or over 56% of the total 143 MT. The share of BOF fell to 43% from 46% in 2022-23, EAF remained flat at 22%, while IF increased to 35% from 32%.

Additionally, Indias DRI (sponge iron) production rose 20% year-on-year to a record 52 MT in 2023-24, supported by a 48% drop in imported coal prices and a 62% spike in thermal coal imports. Moreover, the national steel policy targets 300 MT by 2030, driven by government initiatives like the Gati-Shakti Master Plan and Make in India campaign, along with growing demand from the auto and engineering sectors, urbanization, and population growth. Under the Production Linked Incentive (PLI) Scheme for Specialty Steel, 57 MoUs have been signed, targeting an investment of 29,500 crores to add 25 million tonnes of production capacity and create 17,000 jobs by 2027-28.

As of December 2023, the selected companies have already invested approximately 12,900 crores out of the 21,000 crores committed for the current financial year. It is expected that an additional 3,000 crores will be invested during FY 2023-24, bringing the total investment to around 16,000 crores by the end of FY 2023-24. The Ministry of Steel anticipates a further investment of 10,000 crores in FY 2024-25. Additionally, the implementation of the Domestically Manufactured Iron

& Steel Products (DMI&SP) policy aims to boost the procurement of Made in India steel for government projects. Moreover, for long-term growth, the National Steel Policy 2017 has been formulated to provide a comprehensive roadmap of the Indian steel industry, addressing both demand and supply aspects, with a vision for 2030-31.

Outlook

As per the World Steel Association, global steel demand is expected to remain flat and will showcase a marginal growth of 1.7% in 2024, reaching 1,793 MT. While in 2025, demand is forecasted to showcase a slight increase of 1.2% to 1,815 MT. The flattish demand is anticipated due to higher input costs, geopolitical uncertainties, and the lagged impact of monetary tightening. In China, steel demand in 2024 is expected to remain at similar levels to 2023, primarily due to a decline in real estate investments. On the other hand, India is expected to be in a brighter spot, with steel demand projected to grow by 8% in 2024 and 2025. This growth will be driven by continued expansion across all steel-using sectors, particularly fuelled by robust infrastructure investments.

Growth Drivers for the Indian Steel and Ramming Mass Industry

During the reporting period, the urban residential real estate market remained robust with multiple new launches and high affordability, despite higher interest rates. Significant investments in renewables were driven by increasing power consumption and the transition to green energy. The governments commitment to infrastructure and social development also remained strong. The NHAI pipeline for the next three years is promising, and InvITs are attracting continued interest from foreign investors. Additionally, private capital expenditures are being fueled by the National Infrastructure Pipeline (NIP), the Production Linked Incentive (PLI) scheme, and initiatives for defence indigenisation.

Key announcement from Interim Budget 2024-25 Roads

The Ministry of Road Transport and Highways (MoRTH) received a 2.8% increase in the interim Budget 2024-25, with an allocation of approximately 2.78 lakh crore, up from 2.70 lakh crore the previous year. Of this, the National Highways Authority of India (NHAI) was allocated around 1.68 lakh crore for capital expenditure, a 3.9% increase from

1.62 lakh crore in FY 2023-24. Furthermore, the government aims to develop a national highway network spanning 2 lakh kilometres by 2025, reflecting its ambitious transport sector targets.

Housing

The allocation for the central governments flagship PM Awas Yojana (PMAY) was increased to 80,670.75 crore in the interim budget of FY 2023-24, bringing the total investment in the scheme to 8.11 lakh crore. Furthermore, the central government intends to expand the coverage and scale of PMAY to include shopkeepers, traders, and self-employed individuals.

Infrastructure

With a forward-looking approach, the government launched the National Infrastructure Pipeline (NIP) to provide high-quality infrastructure across the country, projecting an infrastructure investment of around 111 lakh crore during FY 2020-2025. Currently, the NIP comprises 10,284 projects with a total investment exceeding 145.59 lakh crore at various stages of implementation.

The government also plans to operationalise 23 waterways by 2030, alongside the development of 35 Multi-Modal Logistics Parks (MMLPs). Additionally, efforts are underway to expand the number of airports to 220.

Capital investment

In FY 2024-25, the capital expenditure outlay stood at 11.11 trillion, indicating an 11.11% year-on-year increase from 10 lakh crore in FY 2022-23. The total capital outlay for infrastructure in FY 2023-24 is 3.4% of the countrys GDP.

Automotive: Going full throttle

Total automobile sales rose from 25.93 million in FY 2022-23 to 28.43 million units in FY 2023-24. The Passenger Vehicles (PV) and three-wheelers segments saw robust growth during the reporting period. Looking ahead, the Indian automotive industry is expected to sustain its growth and grow by 8-10% over the next 10 years, driven by factors such as decreasing inflation and potential interest rate reductions improved credit terms, population growth, increasing per capita income and the increasing adoption of electric vehicles (EVs) .

Expanding Real Estate and Infrastructure Landscape

Knight Frank India, in association with NAREDCO in their report India Real Estate: Vision 2047 predicts Indias real estate sector to reach USD 5.8 trillion by 2047. Also, the Indian government is bolstering housing infrastructure through the PMAY. Moreover, in the interim budget 2024-25, the government announced a capital outlay of 11.11 lakh crore, aimed at accelerating infrastructure development which will help to expand the demand for steel.

Growing Urban Population Creating Opportunity

Building the necessary infrastructure is crucial for creating liveable, climate-resilient, and inclusive cities that drive economic growth. With nearly 70% of the urban infrastructure needed by 2047 yet to be built, significant investments are expected. India will need to invest ~USD 840 billion in infrastructure by 2036, averaging USD 55 billion annually or 1.2% of GDP which will boost the steel demand.

Rapid Industrialisation

The industry sector experienced robust growth, supported by government initiatives such as the PLI scheme, the Make in India campaign, and the China+1 policy. The cumulative growth rate of the Index of Eight Core Industries (ICI) from April to January in FY 2023-24 stood at 7.7% (provisional). Anticipated expansion, renovation, and construction activities in industries are expected to fuel the steel demand nationwide, consequently increasing the demand for ramming mass.

Company Section Company Background

With over 15 years of experience, Raghav Productivity Enhancers Limited (‘RPEL formerly known as Raghav Ramming Mass Limited) is the leading producer of silica ramming and the only listed organised manufacturer of ramming mass in India . Over the years, it has cemented its position as the largest exporter and the only pan-India supplier of ramming mass in an unorganised and fragmented market. RPEL supplies its products both domestically and internationally, serving numerous reputable steel manufacturers and foundries.

RPELs manufacturing facility is located in Newai, Tonk, Rajasthan, boasting a group capacity of 2,88,000 MTPA of ramming mass. The 32,000 Sq. Mt. plant in Newai is strategically positioned near one of the worlds richest quartz mines, a key raw material for ramming mass. RPEL has expanded its manufacturing capacity by adding a new unit adjacent to its existing plant, resulting in an increase of 1,08,000 MTPA. The proximity of its manufacturing units allows the Company to have greater control over both cost and quality. The Company also continuously invests in cutting-edge technology and best-in-class production processes in order to ensure operational efficiency and superior product quality. RPEL holds an ISO 9001 certification, indicating that its quality management system meets the standards outlined in ISO 9001:2008. The company has been at the forefront of product innovation in the Indian Ramming Mass industry with continuous investments towards R&D through one of its kind Government Approved research center located at the plant.

The strategic investment in research and development has bestowed RPEL with a distinctive advantage, establishing it as one of the worlds most advanced facility for the manufacture of silica ramming mass using fully automated processing and VSI-based crushing technology. As a result, , the companys products and unparalleled quality offer exceptional cost-efficiency and productivity enhancements to steel, foundry, and casting plants. These advantages enable RPEL to distinguish itself significantly from locally available alternatives.

Financial Highlights

Analysis of the profit and loss statement

Particulars	FY 2023-24	FY 2022-23	Variance
Revenues ( crore)	132.76	137.38	(3.36%)
EBITDA ( crore)	40.43	36.33	11.29%
EBITDA margin (%)	30.45%	26.44%	401 bps
Net Profit ( crore)	25.97	25.22	2.97%
Net profit margin (%)	19.56%	18.36%	120 bps
Net Worth ( crore)	158.17	133.22	18.73%
Net Debt ( crore)	8.75	9.98	(12.32%)
Capital Employed ( crore)	166.92	143.2	16.56%
ROCE (%)	21.24%	23.55%	(231 bps)
Debt equity ratio (X)	0.06	0.07	-

Revenues

The Company witnessed a decline of 3.36% in revenue from operations, decreasing from 137.38 crore in the previous fiscal year to 132.76 crore in FY 2023-24.

Expenses

In FY 2023-24, the Companys total expenses declined by 22.5%, decreasing from 104.95 crore in 2022-23 to 85.69 crore. Raw material costs, which represent 30.49% of the companys total revenues, declined by 8.88% due to improved efficiency . Meanwhile, employee expenses, constituting 3.62% of the companys revenues, grew by 22.79% in FY 2023-24. While the finance cost has declined by 82% and stood at

16.34 lakhs by the end of 2023-24.

Analysis of the Balance Sheet Sources of funds

The Companys capital employed grew by 16.56%, increasing from 143.2 crore as of March 31, 2023, to 166.92 crore as of March 31, 2024. Concurrently, RPELs net worth rose by 18.73%, climbing from 133.22 crore as of March 31, 2023, to 158.17 crore as of March 31, 2024.

Application of Funds

During the fiscal year under review, the Companys fixed assets (gross) saw an 6.97% increase, growing from 99.57 crore as of March 31, 2023, to 106.52 crore as of March 31, 2024, primarily due to investment in plant and machinery. Consequently, depreciation escalated from

2.60 crore in FY 2022-23 to 4.97 crore in FY 2023-24.

Working Capital Management

The Companys current assets increased by 35.18% from 71.16 crore as of March 31, 2023, to 96.19 crore as of March 31, 2024, driven by the expanding scale of its business operations. In FY 2023-24, the companys current ratio stood at 5.35 compared to 4.41 in the last financial year. The debtors saw an uptick of 7.58% from 36.94 crore in FY 2022-23 to 39.74 crore in FY 2023-24.

Inventories including raw materials, work-in-progress and finished goods among others increased by 50.65% from 18.31 crore as on March 31, 2023 to 27.58 crore as on March 31, 2024.

Business Highlights FY 2023-24

During the year under review, we commenced operations at our new plant adjacent to our existing facility in Newai. This strategic expansion has significantly increased our production capacity by 60%, boosting it from 180,000 MTPA to 288,000 MTPA. This new plant will enhance our ability to meet growing market demands and strengthen our competitive position.

Our company has achieved significant growth in our export business. Export volumes increased from 50 KMT to 61KMT,growth of 20%. This increase in revenue from exports underscores our expanding global presence and our commitment to meeting international demand with high-quality products.

We are pleased to report that our company, RPEL, has achieved EBITDA margins exceeding 30%. This milestone reflects our strong operational efficiencies and strategic initiatives, ensuring sustained profitability and reinforcing our commitment to delivering exceptional value to our stakeholders.

We continue to focus on expanding our footprint in value-added and high-margin products. This strategic emphasis ensures increased profitability and market presence, allowing us to deliver superior quality and innovation to our customers while driving sustainable growth for our company.

Risk Management

Key Risk	Description		Mitigation
Market risk	The global economic slowdown and trade disruption led by		Besides India, RPEL exports its materials to over 35+
	geopolitical tension can dent the Companys exports.		countries, leveraging its extensive geographical presence to
			mitigate market risks. In FY 2023-24, export sales accounted
			for 46.80% of the Companys revenue, partially insulating its
			business revenue from fluctuations in the Indian economy.
Raw material	There is a risk of encountering quality issues while sourcing		The Company exclusively obtains its primary raw material,
sourcing risk	raw materials, which could negatively impact the quality of		quartz stone, from licensed mines, ensuring a consistent supply
	its products and, consequently, its reputation. Despite efforts		of high-quality materials. These mines comply with rigorous
	to ensure high standards, there is always a possibility of		environmental and regulatory standards, minimising the risk of
	receiving substandard or defective raw materials from suppliers.		shutdowns due to non-compliance
	Such materials could lead to production delays, increased
	costs for rework or replacement, and ultimately, dissatisfaction
	among customers.
Key Risk		Description		Mitigation
Currency risk		With 46.80% of the Company revenue generated from exports,		RPEL actively monitors exchange rate fluctuations and employs
		RPEL faces significant currency fluctuation risk, which could		a prudent hedging strategy to minimise the impact of adverse
		potentially impact its overall profit margins.		currency fluctuations.
Quality risk		The possibility of products not meeting quality standards leads		In its pursuit of business continuity and a strong brand
		to customer dissatisfaction and dent the Companys reputation.		reputation, the Company focuses on delivering superior
				quality products. This commitment is underscored by its
				ISO 9001:2015 certification, which validates its adherence
				to stringent quality control measures and compliance with
				international quality standards.
Technological		The potential challenges and disruptions RPEL may face due to		The Company places a high priority on technology, actively
risk		rapid technological advancements or failures in adopting new		investing in the latest advancements to ensure its products
		technologies. This risk could arise from factors such as obsolete		remain best-in-class, strengthen its product portfolio, and drive
		technology or failure to innovate in line with industry trends.		business expansion.
Environmental		The manufacturing process of ramming mass has the potential		The Company has adopted sustainable practices to reduce
risk		to impact the environment. Failure to comply with regulatory		its carbon footprint and waste generation. RPEL has also
		requirements can result in substantial fines and damage to the		implemented water management strategies to recycle and reuse
		companys reputation.
				water within the production process wherever feasible.
				The facility has been certified by the National Green Tribunal as
				a model quartz processing unit

HR and Industrial Relations

The Company is committed to ensuring that all employees are treated with dignity and respect. It takes utmost care of its people and provides them with the best working facilities equipped with modern technologies. RPEL aims to build a safe environment to work in and ensure a sense of belongingness, where employees feel heard. To enhance the skills and knowledge of its workforce, the Company provides various training and development programmes. Health and safety practices are continuously improved to ensure zero harm, and a multi-year roadmap of guidelines has been developed to activate safety measures and achieve safety goals across the manufacturing unit. As of March 31, 2024, the Company had a workforce of 123 employees.

Internal Control Systems & Their Adequacy

Taking into account the size and nature of the business, the Company has established a robust internal control mechanism. This framework entails rigorous procedures, systems, policies, and processes to uphold the accuracy of financial reporting, safeguard assets, optimise resource utilisation, and ensure compliance with statutory regulations. Regular internal audits are conducted to oversee operations, with observations and recommendations scrutinised by the Audit Committee, which implements necessary corrective actions. To maintain the effectiveness of internal control systems, the Audit Committee maintains ongoing communication with both statutory and internal auditors.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be ‘forward-looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply, and price conditions in the domestic & overseas markets in which the Company operates, changes in Government regulations, tax laws & other statutes, and other incidental factors.