Rane Engine Valve Ltd Management Discussions

1. Company Overview

Rane Engine Valve Limited (REVL) is a manufacturer of engine valves, guides and tappets for Passenger Cars (PC), Commercial Vehicles (CV), Farm Tractors, Stationary Engines, Railway / Marine Engines and Two

/ Three wheelers. The Company operates in a single reportable business segment, viz. components for the internal combustion engine applicable for stationary and transportation engine applications.

2. Economic Review 2.1. Global Economy

The global economic growth is estimated to have slowed to 3.1% in 2023 mainly due to the negative impact of monetary policy tightening to curb inflationary pressures. The Eurozone grappled with diminished economic activity due to elevated interest rates aimed at curbing high inflation. China too witnessed economic headwinds due to stress in its real estate markets which exerted downward pressure on its growth trajectory. However, the emerging and developing economies as well as the US economy experienced better-than-expected growth led by resilient consumption, strong government spending and business investments. There was significant contraction in both manufacturing activity and international trade amidst sluggish global demand, largely influenced by tighter credit conditions that weighed on housing markets, investments, and overall economic activity. Despite these challenges, the concerted efforts to tighten policies led to steady decline in global inflation from its multidecade peak in 2022. Global economic activity is expected to improve in the second half of 2024 after stagnating in the first half of the year resulting in flattish growth of 3.1% for the full year. US economy is expected to remain resilient on the back of decline in inflation and possibility of rate cuts, while Europe could face a period of stagnant growth. China is also expected to witness slower growth in 2024 due to ongoing real estate crisis placing additional drag on global growth. Global inflation is expected to moderate further on the back of tighter monetary policy and lower commodity prices. Central bank policy rates appear to have peaked in all major economies and the focus has shifted to expected rate cuts during the year. Key downside risks include the possibility of persistence of high inflation led by resilient demand and upward pressure on wages due to labour shortages which could mean fewer interest rate cuts and continuance of tighter monetary policy. Moreover, risk of higher commodity prices emanating from geo-political conflict including continued attacks in the Red Sea could also weigh on growth prospects. As such, policymakers find themselves confronted with the dual challenge of bringing down inflation while simultaneously reviving growth. Nevertheless, the commitment of policymakers towards global economic stability through effective policy coordination, including monetary and fiscal measures is likely to accelerate growth prospects over the long term.

2.2. Indian Economy

The Indian economy has made notable strides over the past few years and in the process, it has overtaken the U.K. to become the worlds fifth-largest economy. The local economy displayed remarkable resilience despite tighter monetary policy and global headwinds and emerged as the fastest-growing large economy witnessing growth of 7.8% in FY24 on the back of strong domestic demand and pick up in fixed investment driven by increased capital spending by the central and state governments. The country has managed to emerge stronger from global shocks led by flourishing consumer base and burgeoning middle class. Moreover, demographic dividend, improved financial access and investment in physical and digital infrastructure acted as catalyst for its resilience. Inflation continued its downward trajectory allowing policymakers to hold on to interest rates. Manufacturing, mining, and construction activity remained buoyant amidst decline in input costs and robust demand environment. Despite elevated interest rates, leading indicators such as Goods and Services Tax (GST) collection, e-way bills, Index of Industrial Production (IIP), credit growth, electricity consumption, automobile sales, etc. pointed to robust economic activity.

The Indian economy seems poised to continue its upward trajectory into the coming year, potentially maintaining its position as the fastest-growing major economy led by robust demand environment supported by strength in corporate and financial sector balance sheets, government spending in infrastructure, and the ongoing implementation of well-structured policy reforms. According to International Monetary Fund (IMF), growth rate in the Indian economy is expected to normalize at 6.8% in FY25 on the back of expectations of a normal monsoon and sustained momentum in manufacturing and services sector. Moreover, moderating inflation is likely to result in interest rate cuts providing further fillip to growth. Private consumption is expected to gather pace and private capex is likely to pick up in a sustained manner. India is also negotiating free trade agreements with the European Union, the UK, and the Gulf Cooperation Council which will enable the country to diversify its trade relations. However, persistent inflationary pressure resulting in higher interest rates, supply side disruptions due to geo-political tensions, higher oil prices, slowdown in public capex, and sluggishness in rural demand on the back of deficient monsoon could dampen growth prospects.

3. Industry Review

3.1. Global Automobile Industry

The U.S. auto industry rebounded in 2023 and witnessed strong pick up in sales with many car companies reporting double-digit sales gains, marking a return to normalcy for a sector that has been on a roller coaster since the start of the pandemic. New-light vehicle sales increased by 12.4% YoY to 15.5 million units despite higher borrowing costs on the back of improving supply levels and higher incentives. Crossovers were once again the most popular segment in 2023, representing 47.9% of all new light vehicles sold. In 2023, Battery Electric Vehicle (BEV) sales topped 1.1 million units for the first time and made up 7.2% of all new light vehicles sold. The National Automobile Dealers Association (NADA) expects the U.S. new-vehicle sales to increase slightly to 15.9 million in 2024 as elevated interest rates and high price is expected to be offset somewhat by higher incentive spending by OEMs.

According to European Automobile Manufacturers Association (ACEA), the European Unions (EU) car market experienced a robust growth of 13.9% over the previous year, resulting in a total annual volume of 10.5 million units, with the majority of markets witnessing significant double-digit increases. Petrol vehicles maintained their dominance with a market share of 35.3%, while hybrid-electric cars secured the second position, accounting for 25.8% of the market, followed by electric cars with 14.6% market share. The EU car sales growth is expected to slow to 2.5% reaching 10.7 million units in 2024 as constraints on household budgets on the back of high interest rates and tapering EV subsidies is likely to curtail meaningful demand, according to ACEA. The global automotive industry reflected a complex interplay of innovation, resilience, and adaptation to a changing world and witnessed strong growth led by resilient demand and improving supply chain conditions. While the industry continued to pivot towards electrification, traditional Internal Combustion Engine (ICE) vehicles witnessed strong growth across all major geographies. Traditional automakers continued to accelerate their transition towards electric and autonomous vehicles, investing heavily in research and development to stay competitive in a rapidly evolving landscape. The global automotive industry could face minor challenges in the form of sluggish consumer spending amidst tighter credit conditions, high car prices and weak global economic growth. EV sales could experience muted growth despite supportive government policies relating to tightening of emission due to tapering government incentives, limited charging infrastructure, and the saturation of early adopters. The growth of the sector is likely to be shaped by a multitude of factors, including the adoption of electric vehicles, advancements in the production of high-capacity batteries, ramp up in installation of fast and ultra-fast charging infrastructure, introduction of autonomous vehicles, and deployment of 5G connectivity which is expected to unlock advanced connected car capabilities. Collaborations between Original Equipment Manufacturers (OEMs) and technology companies are poised to foster innovation and drive further growth in the automotive sector. However, ongoing geopolitical tensions, trade disputes, and environmental regulations could pose challenges, underscoring the industrys need for agility and adaptation in the face of evolving market dynamics.

3.2. Indian Automobile Industry

Despite external headwinds in the form of high interest rate environment, Indias automotive sector remained resilient and displayed positive momentum marked by growth across all the segments, offtake in EVs, safety trends and a shift towards digitalisation. Stabilization in commodity prices, improving chip availability, robust economic activity and new model launches resulted in robust growth in the industry.

The Passenger Vehicle (PV) segment witnessed steady resurgence and growth on the back improving supplies of semiconductors, new models launches and positive customer and economy sentiment. Robust demand, easing semiconductor supply issues and strong offtake in the festive season led to volume growth of 7% in the PV segment. Utility vehicle (UV) segment saw significant migration of demand from entry level segment on the back of changing consumer preferences and flurry of new launches and continued to power the overall UV segment resulting in volume growth of 23% whereas the Passenger Car (PC) segment volume fell by 9% despite high discounts. Electric passenger vehicles continued to scale new highs as a result of increased product availability and reducing price parity.

Commercial Vehicle (CV) segment witnessed sluggish volume growth of 3% despite elevated freight rates and sustained freight demand supported by strong economic activity and growth in the manufacturing and infrastructure sector. The Medium and Heavy Commercial Vehicles (M & HCV) segment registered a growth of 3% supported by continued government infrastructure push and growth in core sectors. The Light Commercial Vehicles (LCV) segment reported volume growth of 3% led by growth in e-commerce and strong capital inflow in other end-user industries to improve logistics and last-mile connectivity pushing need for last mile connectivity. Two-wheelers segment witnessed robust volume growth of 10% driven by a improved rural demand, the availability of a wide range of models and variants, and attractive financing options. Tractors volume declined by

8% on last years high base due to erratic monsoon and weaker rural sentiment.

Industry Segment	Growth in %
(Production figures)	(YoY change)
Vehicles	FY24	FY23
Passenger Cars (PC)	(9)	18
Utility Vehicles (UV)	23	33
Multi-Purpose Vans (MPV)	3	23
Passenger Vehicles (PV)	7	25
Light Commercial Vehicles (LCV)	3	29
Medium & Heavy Commercial Vehicles (M & HCV)	3	37
Commercial Vehicles (CV)	3	28
Farm Tractors (FT)	(8)	11
Two Wheelers (2W)	10	10

4. Business Review 4.1. Domestic Market

The Company registered a 15% increase in the domestic market. The domestic market witnessed buoyancy across all segments in the Original Equipment Manufacturer (OEM) sales, registering a growth of 14% over the previous year. The aftermarket business of the Company registered a growth of 17%. The break-up of the domestic sales by market segment is given below:

(in crores)

Market	FY24	FY23	Growth in %
OEM	314.78	277.16	14%
Aftermarket	39.97	34.12	17%
Railways	4.22	0.06	7395%
Defence	4.33	4.12	5%
Total	363.30	315.46	15%

4.2. Exports

Export sales to OEM customers increased by 25% from 170.45 Crores to 192.71 Crores due to increase in off take by the customers. The Business development efforts of the Company in last couple of years and better performance of the plants helped achieve this. The break-up of sales and growth by product applications for the Company is given below: (in crores)

Market	FY24	FY23	Growth in %
Automotive	384.80	344.07	12%
Engines
Other Engines	171.20	141.84	21%
Total	556.00	485.91	14%

The new order book of the Company remains at 35_ crores from domestic and export customers. This will be commercialized in the coming years commencing from FY25.

4.3. Operational and Financial Performance 4.3.1. Financial Review

• Revenue from Operations increased by 14% to 566.75 Crores in FY24 from 497.57 Crores in FY23.

• EBITDA increased to 50.31 Crores in FY24 from 36.22 Crores in FY23.

• Profit after Tax stood at 11.46 Crores for FY24 as compared to Loss after Tax of 0.06 Crores for FY23.

The Turnaround and Sustenance Plan started couple of years back is yielding results in operational efficiency, capacity realization, export growth and better cost management. This resulted in the Company improving operational profits significantly when compared to last year. Overall, the Company grew by 14% and the operating margins continued to improve significantly.

Key Ratios	March_31,	March_31	Remarks
	2024	2023
Interest Coverage Ratio (turns)	3.07	1.68	Operational profits driven by top line growth during the year resulted in better performance.
Operating Profit Margin (%)	5.52%	3.40%
Net Profit Margin (%)	2.02%	(0.01)%
Return on Net worth (%)	10.15%	(0.06)%
Return on Capital Employed (%)	12.26%	4.92%

The other ratios as required under Schedule III are disclosed in Note no. 40 to the Financial Statements.

.2. Operations and Manufacturing Review

India has emerged as the top R&D hub for the world owing to its large scale engineering capabilities and availability of skilled manpower. The customers of the Company are leveraging the experience and capability of the Companys R&D in valve designs related to engines. In addition, the Company is continuing working with customers on several projects on alternate fuels including Hydrogen. The company is working with major OEMs on these new initiatives to cater to their requirements through development of customer oriented technology road map. To expand business in non-EV and non-auto segments, R&D continues to proactively engage with customers to focus on EV-insulated segment.

Continuedfocusonproductivityandqualityimprovements during the year yielded desired results. The capacity utilization in all the plants improved significantly in order to meet the increased demand across client segments. New product approvals from prestigious customers were received by the Company for series production in 2024-25. The efforts on infrastructure upgradation, capacity enhancement continued and mass production of sodium filled hollow valves commenced during 2023-24.

The Company possesses the following quality and environment management system accreditations:

• All plants are ISO 9001:2015 and IATF 16949:2016 certified.

• All plants are certified for EMS & OHS standards ISO 14001:2015 and ISO 45001:2018.

• Two plants (Trichy & Tumkur) have manufacturing lines certified for VDA 6.3.

• The Company has also been certified under ISO 27001:2013 for ISMS.

4.4. Pursuit of Business Excellence

The ‘Business Excellence Model through enhanced practice of Total Quality Management (TQM) enabled the Company to win customer accolades. The Company has won awards from the following customers during the year:

• Toyota Industries Engine India

• Daimler India Commercial Vehicles

4.5. Opportunities and Threats

The global Geo-Political situation has triggered customers to de-risk their supply chain and India is being looked as a global manufacturing hub for quality products. The industry is witnessing an extension of IC engines through alternate fuels (Eg. Gas, blended, Hydrogen) which is also being encouraged by the Indian Government. Although, there are positive factors driving the demand environment, supply chain constraints and increase in logistics costs due to red sea issues could impact growth of the industry. Moreover, there is a drop in development of new engines by major OEMs across the world. The increase in electrification in certain markets including Europe resulted in freeing of capacities of competitors thereby increasing competition. Your Company has devised strategies to expand share in the domestic market with identified customers in automotive segment and focus on EV insulated sales which includes the applications like power generations, stationary engines, marine, locomotives etc., In the Export Market, we will leverage the opportunity of sourcing from LCCs. You Company is also working on developing valves for fuel agnostic engines.

The automotive industry in India is poised for significant growth, driven by a multitude of factors. Accessible, affordable and transparent financing options, improving road infrastructure and increasing disposable income have been the major factors catapulting the growth of the auto industry in India. Indias increasing adoption of electric vehicles is set to enhance the industrys influence, further establishing the nation as a prominent global automotive centre. Shifting consumer preferences, increasing exports, and government support will be pivotal in shaping the future of the industry. The emerging trends and growing focus of automakers on integrating cutting-edge technologies in car manufacturing has opened up massive investment opportunities in the India auto sector. Significant technological strides in electric vehicles, autonomous driving, connectivity, the adoption of digital sales, and a strong emphasis on safety measures are anticipated to unlock vast opportunities for the industry.

Despite significant growth prospects, the industry is also confronted with a range of issues including logistics and supply chain disruptions, escalating energy costs, shortages in skilled labour, complex economic and political landscape, and growing expectations of an increasingly discerning and demanding consumer base, among others. Persisting high interest rate environment could impact affordability to some extent for potential buyers. These economic challenges present formidable obstacles for the automotive industry, necessitating strategic adaptation and resilience to navigate through turbulent times.

4.6. Outlook

The Indian automotive industry is likely to witness growth of 5-6% across segments with enhanced infrastructure spending post Union Budget, notwithstanding minor headwinds like general elections(India) in Q1. Adoption of Electric Vehicles (EVs) is expected to accelerate in the coming years as EV becomes more cost competitive backed by supportive government policies, enhanced charging infrastructure and consumer willingness to move towards clean and sustainable mobility solution. In addition, during 2024-25, the Company has revised its vision to include enhancement of product portfolio into non-ICE components, which has similar manufacturing process.

The automotive industry is poised for significant growth driven by several key factors. Foremost among these is the rapid adoption of new technologies, coupled with robust government support policies. With increasing awareness about environmental issues, theres a notable shift towards alternate fuel vehicles like CNG and EVs, which is expected to further boost sector growth. Moreover, factors such as rising per capita incomes, evolving demographic profiles, low vehicle penetration rates, and favourable policy environments, including infrastructure development, are all contributing to a steady rise in industry demand. However, potential challenges such as a global economic slowdown and higher interest rates could temporarily impact demand. Yet, the industrys ability to innovate and adapt will be pivotal as it continues to evolve, ensuring its resilience and sustained growth in the long run.

4.7. Scheme of Amalgamation

The Board of Directors of the Company at the meeting held on February 09, 2024 considered and approved the proposed scheme of amalgamation ("Scheme") of the Rane Engine Valve Limited (REVL) and Rane Brake Lining Limited (RBL) with and into Rane (Madras) Limited (RML) with effect from April 01, 2024. As per the Scheme, 9 (Nine) equity shares of Rs.10/- each of RML will be issued for every 20 (Twenty) equity shares of Rs.10/- each held in the Company._ The Scheme is subject to the approval of shareholders and creditors of the respective companies, BSE Limited, The National Stock Exchange of India Limited, National Company Law Tribunal and such other approvals as may be required.

The proposed Scheme of Amalgamation aims to simplify the group structure, align shareholder interests, enhance operational efficiency, and diversify product offerings. Consolidating under a single listed entity will facilitate coordinated business management, achieve synergies in revenue and costs, optimize resources, and improve access to capital for growth opportunities. Additionally, it will enable a unified approach in customer engagement, supply chain management, and administration functions, while leveraging combined human capital for improved organizational capability and leadership.

5. Risk Management

The Company has laid down well-structured procedures for monitoring the risk management plan and implementing risk mitigation measures. The risks are broadly classified into strategic risks, operational risks, financial risks and statutory compliance risks. These risks are rated based on factors such as past year experience, probability of occurrence, probability of non-detection and their impact on the business. The top management reviews the strategic risks, and the risks with high probability and high impact every quarter and presents its report along with a risk mitigation plan to the Board of Directors on a half-yearly basis. The strategic risks are taken into consideration in the annual planning process with their mitigation plan. Other risks are covered as part of the internal audit process and presented to the Audit Committee every quarter. The business process risks, and the related controls are subjected to internal audit and reviewed on a quarterly basis. The risk ratings are revalidated with the top management as part of the internal audit process every quarter. The overall re-assessment of risks at the Company level is carried out and presented to the Board of Directors once in two years for their review.

Risk	Nature of Risk	Risk Mitigation Strategies
Strategic
Industry / Market Risk	65% of revenue is derived from the Indian automotive sector. Hence, any drop in vehicle production will have a Significant impact on the Companys business.	The Company constantly strives to:
	In short-term Indian auto industry is moving towards multi fuel technology to reduce cost of ownership and emission. In mid to long term, OEMs are pursuing electrification of their products.	a) Increase revenue from international markets (outside of India).
		b) Add new products to increase organic revenue and diversify customers across vehicle segments.
		c) Look for opportunities in the non-automotive segments such as Defence, Railways, etc.
Technology Obsolescence Risk		The Company has consistently delivered cutting-edge technology products with enhanced R&D capabilities, localisation of testing and validation capabilities. This is enabling the Company to work closely with customers for multi fuel compatible products. The Company has laid out strategy to expand its portfolio of EV insulated business
Competition	Maintaining market share in the competitive market and availability of unorganized players further pose challenges.	The Companys long-standing relationship with OEMs, state-of-the- art facilities and best-in-class processes help deliver superior value to the customers. The Company periodically conducts customer surveys to understand customer feedback and works in furthering its relationship with the customers.
Operational
Quality / Processes	Quality and delivery are sacrosanct for safety-critical products supplied by the Group.	Skilled workforce, imparting job skill enhancement training, enhancing supplier capabilities and robust manufacturing processes help the Company mitigate quality and delivery risk.
People Risk	Attrition of key personnel could impact business operations and growth.	The Companys HR processes are constantly upgraded to attract, retain and develop talent. The policies are people-centric and industry accolades on HR practices help attract talent. The dedicated training centre supports to build functional capabilities and develop a strong leadership pipeline. The performance management system and other employee engagement initiatives help develop and retain talent.

 

Risk	Risk Nature of Risk	Risk Mitigation Strategies
Operational
Raw Material	Material cost is a significant (Input) Price part of the cost and volatility in Risk the price of raw material costs will erode margin.	The Company constantly strives to mitigate the input cost increases by:
		a) Implementing a procurement function that will work on cost reduction initiatives through alternate sourcing, localisation, etc.
		b) Negotiating and passing through input cost, which increases suitably, to the customers
		c) Working on process improvements, yield improvements, etc.
Financial
Currency Risk	The Company is exposed to foreign currency exchange risk as it exports its products to various countries and imports raw materials.	The Company uses a multi-pronged approach as suitable to the scenarios. It includes:
		a) Optimally balancing the import and export to create natural hedge.
		b) Working with customer-to-index prices to mitigate currency fluctuations.
		c) Taking simple forwards on a rolling basis to protect its export realization.
Interest rate risk	Use of borrowings to fund expansion exposes the Company to interest rate risk.	The Company manages interest rate risk on the following basis:
		a) Maintaining optimal debt-equity levels.
		b) Using internal accruals to fund expansion.
		c) Constantly optimizing working capital to reduce interest costs.

6. Human Resource Development and Industrial relations 6.1. Talent Development Initiatives

In FY 2023-24, the Company focused on the following talent development initiatives:

Leadership Development

6.1.1. Leadership Boot Camp (LBC)

Group level mandatory internship scheme was introduced wherein the identified entry level graduates were on-boarded as interns before joining as trainees in order to provide real work experiences. 60 entry level graduates (GET/MT/PGET) joined us as part of our entry level talent hunt and underwent the LBC journey. LBC focuses on supporting the transition from campus to corporate and has a blend of technical and soft skills programs, plant visits, on-the-job training, cross functional exposures and interactions with business leaders.

6.1.2. Young Leadership Development (YLD)

The objective of YLD is to facilitate the development of leadership competencies of first time managers and to provide young leaders relevant exposures and high quality learning experiences thereby strengthening the leadership bandwidth at middle management. The seventh batch with 2 participants underwent 5 days of classroom sessions across 3 modules facilitated by Shri Dharmasthala Manjunatheshwara Institute for Management Development (SDMIMD). They also had interactive session with business leaders who shared their insights and experiences on leadership effectiveness.

As part of the ongoing learning engagement journey, YLD participants from earlier batches underwent a two-day workshop on strategy and finance facilitated by a reputed B school in Chennai. The workshop was curated with the objective of enhancing their business understanding through Rane specific case studies. Participants presented their solutions to the case studies by drawing insights from various modules to a panel of business leaders and interacted with them on the approach and strategy for the case study.

6.1.3. High Potential Leadership Development (HPLD)

The objective of HPLD is to build leadership competencies of high potential talent and strengthen the leadership pipeline. 5 participants underwent a customised residential program titled TOP GEAR (Transforming Organization and Profitability through Growth, Engagement, Actions, Results) at Great Lakes Institute of Management (GLIM), Chennai. TOP GEAR enables participants to understand their potential and the shifts required to be future ready. The participants showcased their action learning projects to Business Heads along with Dr. Suresh Srinivasan, GLIM, who shared their insights on the projects and felicitated the participants.

As part of the HPLD design, the participants underwent an outbound experiential assessment and development centre at Pegasus Institute, Pondicherry. The outbound had continuous feedback assessments that helped them to have easy acceptance of feedback and concrete developmental takeaways.

6.1.4. Rane Manufacturing Systems Professionals (RMSP)

RMSP was originally launched in June 2017 to ‘Build Manufacturing Capability among junior & middle managers in Manufacturing, Manufacturing Engineering, Quality Assurance and Plant Engineering functions. RMSP 4.0 was refreshed and rolled out in June 2023 with the objective of "enhancing manufacturing capability through technical proficiency for significant improvement in plant performance". The enhanced version of the program has two streams, Basic stream and Advance stream and places emphasis on learners, enabling role-based development for significant improvement in plant performance.

6.2. Learning digital journey

To enable anytime anywhere access, the Learning Management System (LMS) was refreshed and transitioned to cloud and the Rane LMS app was rolled out. Some of the salient features of the app include workflows to self-enrol for programs, track and review Individual Learning and Development Plan progress and view real time dashboards. Further the L&D leaderboard was introduced to elevate learner engagement by recognising individuals as learning champion(s) and managers as enabling champion(s) based on milestones and metrics. The ‘Digital Library was enhanced with over 100 resources in the form of articles, e-books, podcasts, videos on self-leadership, people leadership, wellness, office productivity and technical processes. e-learning courses were rolled out in the mobile platform including course on governance and road safety awareness. Employees were also encouraged to pursue online courses through the SWAYAM platform, a ministry of HRD initiative with a sponsorship for certification for up to 3 courses in a year.

6.3. Great Place to Work (GPTW)

The Rane Group believes in continuous improvement in all aspects of its operations. Employee satisfaction and engagement are as key to its growth as business performance. Therefore, to give the employees a platform to express their views in a free and open manner, Rane has been conducting an Employee Opinion Survey for almost a decade. An external consultant would administer the survey, share the findings, and help in identifying the strengths and areas of opportunity. As the organisation grew, there was a need to find other models that accurately and efficiently captured employee views and helped to benchmark against the best in keeping the employees happy.

GPTW is a globally recognized body that helps businesses create a sustainable, high trust, high-performance culture. Rane Group has been participating in the survey for over 15 years and using the findings to elevate the employee engagement and experiences. REVL was certified with GPTW 3 times in 4 years.

6.4. Wellness at Rane

Rane Group is committed to promoting a healthy and positive work environment for its employees. A wellness app was launched in partnership with The Wellness Corner which provides holistic wellness solutions to prioritize the health and well-being of the employees. Through this initiative, employees are encouraged to participate in multiple challenges and that help in adopting healthy habits like regular exercise and mindful eating. Through various initiatives such as wellness workshops, mental health support and financial wellness programs, the Company aims to empower the employees to lead balanced and fulfilling lives.

Wellbeing of our employees are prioritized through robust HSE (Health, Safety and Environment) practices, including ergonomic assessments, to ensure that the workspaces are optimized for comfort and productivity.

Rane Premier League (RPL) is one such event to celebrate the togetherness and also craft a workplace wellness. RPL, a cricket tournament was held among the group entities of Rane Companies nominated best cricketers who were enthusiastic to bring home the trophy. RPL had a total of 9 teams who fought for winner and runner up awards.

Chennai Marathon is yet another event which saw good participation from Rane Group as part of wellness initiative. The Chennai Marathon is the largest sporting event in Chennai. This year, 144 employees from the Rane Group participated in the Chennai Marathon.

6.5. Women empowerment at Rane

Towards our commitment to empower women in the workplace, Rane Group launched Women at Work (W@W) Group. This group aims to build a community of "Engaged, Enthused and Empowered" women in supporting their career aspirations while effectively managing the demands of their evolving life circumstances. W@W group will be mentored by an executive coach. The format will be one-on-one and group sessions that will serve as a valuable platform for women within the organization to connect, share experiences, and access resources aimed at advancing their professional development.

6.6. Industrial Relations

The industrial relations were generally cordial in all the plants. The group level industrial relations council works towards the objective of creating a healthy working environment by promoting peace and harmony amongst all segments of employees. The focus areas for the council includes interpretation and implementation of legislations, workforce mix planning for optimal deployment and sharing of best practices.

7. Internal Control Systems

The Company has put in place a robust internal control system to prevent operational risks through a framework of internal control and processes. These controls ensure that the business transactions are recorded in a timely and complete manner in the financial records, resources are utilized effectively and the assets are safeguarded.

The internal audit function is carried through a professional firm of independent assurance service providers. The Audit Committee and the Board in consultation with the internal auditor, statutory auditor and operating management approve the annual internal audit plan. The scope also covers the internal financial controls and internal controls over financial reporting.

The internal audit findings are placed before the Audit Committee at each of its quarterly meetings for review.

The managements responses and counter measures are discussed in the Audit Committee meetings. This process ensures robustness of the internal control system and compliance with laws and regulations including resource utilization and system efficacy.

8. Cautionary Statement

The information and opinions expressed in this report may contain certain forward-looking statements, which the management believes are true to the best of its knowledge at the time of its preparation. Actual results may differ materially from those either expressed or implied in this report.

		For and on behalf of the Board
	Ganesh Lakshminarayan	Harish Lakshman
Chennai	Director	Chairman
May 07, 2024	DIN:00012583	DIN:00012602