Readymix Construction Machinery Ltd Management Discussions

1: ECONOMIC SCENARIO

1.1: GLOBAL ECONOMIC OVERVIEW

After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1% in 2026 and 3.2% in 2027. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging markets and developing economies.

Downside risks dominate the outlook. A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding artificial-intelligence-driven productivity, or renewed trade tensions could significantly weaken growth and destabilize financial markets. Elevated public debt and eroding institutional credibility further heightened vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialize more rapidly or trade tensions ease on a sustained basis.

Figure 1. Global growth and inflation forecasts

Legend
Blue	January 2026 WEO Update forecast
Green	April 2026 WEO reference forecast
Orange	Preconflict WEO forecast
Yellow	Adverse scenario
Pink	Severe scenario

GDP growth (Percent)

Forecast	2026	2027
January 2026 WEO Update forecast	3.3	3.2
Preconflict WEO forecast	3.4	3.3
April 2026 WEO reference forecast	3.1	3.2
Adverse scenario	2.8	3.0
Severe scenario	2.1	2.2

Headline inflation (Percent)

Forecast	2026	2027
January 2026 WEO Update forecast	3.8	3.5
Preconflict WEO forecast	3.9	3.5
April 2026 WEO reference forecast	4.4	3.7
Adverse scenario	5.4	3.9
Severe scenario	5.8	6.1

Source: IMF staff estimates

Outlook

Global growth is projected at 3.0 percent for 2026 and 3.4 percent for 2027, broadly unchanged cumulatively from April 2026 World Economic Outlook. The outlook is uneven: The war shock is weighing on energy importers and vulnerable economies, while AI-driven demand is lifting countries integrated into the global technology value chain.

Global disinflation has stalled. Risks are more balanced than in April, but downside risks from renewed conflict and financial market repricing persist. Policymakers should preserve price stability, rebuild fiscal space, and strengthen adaptability.

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1.2: INDIAN ECONOMIC REVIEW AND OUTLOOK

India remains the fastest-growing major economy globally; Real GDP is projected to grow by 6.3% during the 2026-27 fiscal year (FY) and by 6.4% in FY2027-28. Rising inflation is expected to weigh on private consumption, while investment slows amid higher oil and gas prices and gas rationing. Employment growth and labor market participation are set to weaken. Inflation is projected to increase to 4.8% in FY2026-27, driven by higher food, energy and fertilizer costs, and currency depreciation. The current account deficit is expected to widen, as higher energy import costs outweigh the impact of weaker domestic demand. More persistent energy rationing could lead to weaker growth. On the upside, energy support could cushion real incomes and consumption more than expected.

Fiscal policy is poised to become expansionary in FY2026-27 to mitigate the impact of higher energy prices, notably through subsidies. Moving from price support to targeted transfers could reduce the fiscal cost of policy support. Following a period of easing, monetary policy is projected to tighten with a policy rate increase in early FY2026-27 to help keep inflation within the target band. Streamlining and harmonizing regulations would reduce administrative burdens, boosting productivity and investment. Accelerating the rollout of renewable energy sources would strengthen energy security and reduce carbon emissions.

Growth has remained robust, despite some moderation. Real GDP expanded by 7.8% year-on-year in the quarter ending in December (Q3 FY2025-26), easing from 8.4% in the previous quarter. High-frequency indicators, including softer industrial production, suggest a loss of momentum. Retail indicators and survey-based measures of consumer sentiment point to an easing of private consumption as higher food and energy prices weigh on households real purchasing power. At 3.5% year-on-year in April, headline inflation has picked up since early 2026, driven primarily by food prices, but core inflation has remained broadly stable and below the midpoint of the central banks target band of 4% ? 2%. The depreciation of the rupee relative to the US dollar of around 7% since the beginning of the year has added to inflationary pressures by raising import costs, particularly for fuel and fertilizers, with partial pass-through to consumer prices. Labor market conditions are softening, with the employment rate declining from 40.5% in December to 39.5% in April.

Indias crude oil and natural gas dependence on the Middle East is substantial, with crude oil imports accounting for about 46% of total imports in 2024 and natural gas for about 57%. Energy import prices have risen sharply in recent months, but only part of that has fed into domestic energy prices. Reductions in excise duties on petrol and diesel and the removal of import duties on selected petrochemical inputs, alongside export levies on refined products, have helped to contain the pass-through from international prices to domestic inflation. Rationing measures have prioritised natural gas supply to households and transport, whileexpanding access to kerosene through the public distribution system and increasing the availability of small LPG cylinders for migrant workers. The recent reduction in US import tariffs lowered the average effective tariff rate on India by 23 percentage points, reducing pressures on exporting sectors.

2. MANUFACTURING SECTORS IN INDIA

The Indian manufacturing sector is steadily emerging as a key pillar of the economy, contributing around 17% to GDP. The number of startups recognized increased by 51.6% year-on-year in FY 2025-26 compared to FY 2024-25, while direct jobs created rose by 36.1% during the same period. With government initiatives like Make in India and production-linked incentive (PLI) schemes, the National Mission on Manufacturing (NMM) announced in Budget 2025-26, serves as a key catalyst for industrial growth, targeting a rise in manufacturings GDP share to 25% by 2035, creation of 143 million jobs, and expansion of merchandise exports to Rs. 106.05 lakh crore (US$ 1.20 trillion) through deeper global value chain integration.

Technology is playing a transformative role in reshaping industry. Once anchored by the machine tool sector, India is now moving towards automation, digitalization, and process-driven production. Digital transformation has spurred innovation, improved efficiency, and positioned manufacturers to remain competitive in global markets. In January 2026, PMI stood at 55.4, above its long-run average, indicating continued improvement in the sectors health on robust demand, faster output and purchasing growth, easing input inflation and sustained job gains supported by optimism around GST reforms.

India is also carving a niche in specialized global value chains. It has the potential to cater to 10% of the worlds wind energy demand by 2030 through its growing capacity in wind power component manufacturing. In electronics, domestic value addition has risen from 30% to 70% and is projected to reach 90% by FY27. Indias electronics manufacturing ecosystem is witnessing rapid expansion, with Apples India-based vendors exporting Rs. 22,094 crore (US2.50billion)**worthofcomponentstoChinainFY26,expectedtoreach**Rs.30,931crore(US2.50billion)**worthofcomponentstoChinainFY26,expectedtoreach**Rs.30,931crore(US 3.50 billion) by the end of the year. This marks a significant shift in global supply chains, with India emerging as a supplier of high-value electronic components rather than just an assembly hub.

Under the smartphone Production Linked Incentive (PLI) scheme, India produced Rs. 6.19 lakh crore (US70.00billion)**worthofiPhones,ofwhich**Rs.4.51lakhcrore(US70.00billion)**worthofiPhones,ofwhich**Rs.4.51lakhcrore(US 51.00 billion) (73%) were exported, highlighting strong export competitiveness.

Complementing this, the Government of India has approved 10 semiconductor manufacturing projects with investments of around Rs. 1.60 lakh crore (US$ 18.11 billion), aimed at strengthening domestic capabilities and positioning India as a global electronics manufacturing hub.

The government has reinforced manufacturing growth through sustained policy support, including the Production Linked Incentive (PLI) scheme, infrastructure development and innovation-led initiatives. In the Union Budget 2026-27, additional measures such as tax incentives, customs duty rationalization and export facilitation reforms were introduced to improve ease of doing business and strengthen Indias integration into global value chains.

The policy framework also includes targeted sectoral interventions such as duty-free inputs and extended export timelines for footwear and leather products, along with broader support for labor-intensive industries. These measures aim to enhance competitiveness, boost exports and promote large-scale employment generation in manufacturing.

Investment trends further underline the sectors dynamism. According to the White & Case, India ranked eight among the top recipients of Foreign Direct Investment (FDI) in the world in 2023.

100% FDI is approved in the sector through automatic route under the current FDI Policy. Cumulative FDI equity inflow (April 2000-December 2025) stood at Rs. 50,72,333 crore (US$ 776.76 billion).

Complementing this, Indias digital economy is projected to account for 20% of GDP by 2029-30, growing twice as fast as the overall economy. This widespread digitalization, coupled with manufacturing growth, will reinforce Indias role in global supply chains.

A globally competitive manufacturing sector represents one of Indias greatest opportunities to drive growth, employment, and exports in the coming decade. With strong policy backing, a skilled workforce, rising FDI, and a shift toward automation and clean technologies, India is making a credible bid to establish itself as a global manufacturing hub.

At the aggregate level, capacity utilization (CU) in the manufacturing sector increased to 75.6% in Q3 of FY26 from 74.3% in the previous quarter. Reserve Bank of India (RBI) has released the results of its 72nd round of the quarterly Order Books, Inventories, and Capacity Utilization Survey (OBICUS), which was conducted during Q4 2025-26 and covered 1057 manufacturing companies. The survey provides a snapshot of the demand conditions in Indias manufacturing sector during October-December 2025. At the aggregate level, capacity utilization (CU) in the manufacturing sector increased to 75.6% in Q3 2025-26 from 74.3% in the previous quarter. The seasonally adjusted CU (CU-SA) increased by 60 basis points from the previous quarter and stood at 75.5% in Q3 2025-26. Both CU and CU-SA for Q3 2025-26 increased by 20 basis points as compared to their levels in the corresponding quarter of the previous year.

At the aggregate level, capacity utilization (CU) in the manufacturing sector increased to 77.7 per cent in Q4:2024-25, from 75.4 per cent in the previous quarter. The seasonally adjusted CU (CU-SA) increased by 20 basis points from the previous quarter and stands at 75.5 per cent in Q4:2024-25. Both CU and CU-SA for Q4:2024-25 are higher compared to their levels in the corresponding quarter of the previous year.

3. INDIAS CONSTRUCTION EQUIPMENT INDUSTRY

The Indian construction equipment (CE) industry is currently the third-largest construction equipment market globally, valued at USD 9.24 billion in 2026 and projected to grow at an 8.05% CAGR to reach USD 13.61 billion by 2031. Propelled by aggressive government spending on infrastructure and a historic 31.5% surge in exports during FY26, India is rapidly transforming into a major global manufacturing hub for heavy engineering.

The Indian Construction Equipment (CE) industry has a positive medium-to-long-term outlook, although FY2026 was relatively subdued. The industry is now entering FY2027 with expectations of recovery, supported by government infrastructure spending, roads, railways, mining, urbanization and increased localization of equipment manufacturing.

ICEMA expects the Indian construction equipment industry to grow by approximately 7% in FY2027, after a largely stagnant FY2026. The expected recovery is being attributed to higher government infrastructure spending, improving road construction and increased rural infrastructure activity.

ICRA is somewhat more conservative, forecasting 3-5% growth in FY2027, following weak FY2026 demand. It attributes FY2026 weakness to slower execution of infrastructure projects, particularly roads, highways and mining, delayed project awards and higher equipment costs following the transition to CEV-V emission norms.

4. CEMENT INDUSTRY IN INDIA

Indias cement industry had an installed capacity of nearly 700 million tonnes per annum (MTPA), with manufacturing facilities concentrated in limestone-rich states such as Andhra Pradesh, Rajasthan, Tamil Nadu, and Karnataka. South India accounts for the largest share of installed cement capacity at approximately 32%, followed by North and East India at around 20% each, West India at 15%, and Central India at 13%. The industry continues to benefit from abundant limestone reserves across the country, providing long-term raw material security for future expansion.

In FY26, cement production volumes increased by 8.6% YoY to 491.4 million metric tonnes (MT). Production volumes further grew by 9.4% YoY to 42.8 million MT in April 2026. Average cement prices increased by 2% YoY to Rs. 345 per bag in FY26 and rose by approximately 4% month-on-month to Rs. 350 per bag in April 2026, supported by sustained demand from the housing and infrastructure sectors. ICRA expects cement volumes to grow by 7-8% in FY27.

Indias cement sector is set for robust growth in FY26, with operating profit expected to rise 12-18% to Rs. 900-950 (US$ 10.14-10.71) per metric tonne (MT), according to ratings agency ICRA. Strong demand from housing and infrastructure, better realizations, and stable input costs will drive the improvement.

Indias cement sector is expected to maintain healthy growth momentum, with cement production volumes increasing by 8.6% YoY to 491.4 million metric tonnes (MT) in FY26. Looking ahead, cement volumes are expected to grow by 7-8% in FY27, supported by sustained demand from the housing and infrastructure sectors. Average cement prices increased by 2% YoY to Rs. 345 per bag in FY26, while operating margins are likely to moderate by 200-400 basis points in FY27 due to elevated fuel, freight, and other input costs.

Indias cement production volumes increased by 8.6% YoY to 491.4 million metric tonnes (MT) in FY26. Looking ahead, cement volumes are expected to grow by 7-8% in FY27, supported by sustained demand from the housing and infrastructure sectors, ongoing government-led capital expenditure, and continued growth in residential construction activity. ICRA expects the industrys OPBIDTA/MT to increase to Rs. 900-950 (US10.18-10.75)**perMTinFY26,beforemoderatingto**Rs.820-870(US10.18-10.75)**perMTinFY26,beforemoderatingto**Rs.820-870(US 9.28-9.84) per MT in FY27 due to higher fuel and freight costs.

To cater to this demand, Indias cement makers are planning significant capacity additions. CRISIL Ratings projects 150-160 MT of capacity to be added between FY25 and FY28, building on 119 MT added over the past five years. According to ICRA, 43-45 MTPA is expected in FY26, up from 32-35 MTPA in FY25. Indian cement makers are set to invest Rs. 1.25 lakh crore (US$ 14.63 billion) between FY25 and FY27 to add around 130 MT of grinding capacity, representing about 20% more than current levels.

Moodys notes that growing cement demand will accelerate industry consolidation, with the top 10 players expected to acquire 140 MT of capacity over five years, worth Rs. 89,000 crore (US10.4billion)**.Karnatakaaloneapprovedinvestmentproposalsworth**Rs.17,183crore(US10.4billion)**.Karnatakaaloneapprovedinvestmentproposalsworth**Rs.17,183crore(US 2.01 billion) in cement manufacturing, expected to generate around 12,500 jobs.

On the trade front, India exported cement, clinker and asbestos cement products worth US467.22million**duringFY26,whileimportsstoodat**US467.22million**duringFY26,whileimportsstoodat**US 170.79 million.

Major projects continue to act as demand multipliers. The Mumbai-Ahmedabad Bullet Train Corridor, spanning 508 km, is consuming about 20,000 cubic meters of cement daily, equivalent to building eight 10-story buildings every day. The project has generated substantial employment, engaging nearly 20,000 workers daily across stations, tunnels, and related infrastructure.

5. BUSINESS AND FINANCIAL OVERVIEW

Our Company was originally incorporated as a private limited Company under the name "Readymix Construction Machinery Private Limited" on January 24, 2012 under the provisions of the Companies Act, 1956 with the Registrar of Companies, Maharashtra, Pune ("RoC"), bearing CIN: U29248PN2012PTC142045. Thereafter on July 31, 2012, our Company took over the business of partnership firm, M/s Readymix Construction Machinery.

Subsequently, our Company was converted into a public limited company, pursuant to a special resolution passed by our Shareholders at the Extra Ordinary General Meeting held on June 21, 2024 and consequently, the name of our Company was changed from Readymix Construction Machinery Private Limited to Readymix Construction Machinery Limited and a fresh certificate of incorporation consequent upon conversion to public company was issued by the Registrar of Companies, Central Processing Centre on August 02, 2024. Our Companys Corporate Identity Number is L29248PN2012PLC142045.

Readymix (RMX) is an engineering-led company, offering engineering solutions for design, development, fabrication and installation of various plant & machineries along with related equipments like Dry Mix Mortar Plant, Support equipment for Readymix Concrete Plant, High capacity Silos, Artificial Sand Plants (Crusher), Wall Putty Plants, Other Customized Projects etc., catering to industrial requirements of various industries like cement, concrete, crushing, construction and building materials etc. We also provide complete end-to-end turnkey solutions from conceptualization, development, fabrication, assembling, testing, logistic support, final erection and installation of various plant & machinery along with related equipments at customers site and other incidental and allied activities related therewith along with after sales services which include repair & maintenance services.

Further, Readymix also provide Annual Maintenance Service for our customers to close any possible wear and tear, providing updates and upgrades for plant operational software along with scheduled inspection & maintenance visits. Additionally, we provide Business Consultancy Services which includes innovative design, engineering, technology, and operational challenges. From initial concept to final fabrication and commissioning, our solutions help reduce capital costs, improve efficiency, enhance plant performance, and increase automation. We also offer online support for equipment installation at customer sites and Recipe Consultancy Services to evaluate ingredient feasibility and optimize recipes.

The Company had initiated the activity of Research & Development in the Financial Year 2022-23. The aim was to develop the components of the machines in-house in replacement of the ones being bought by outside suppliers. The Management had envisaged that this would substantially add to the Margins of the Company and would also leave them with more scope for customization. Owing to the same, in the span of three years, the Company could develop more than 35 products in house and the same has resulted in substantial savings in its costs. This has substantially impacted on the Gross Margins of the Company.

Readymix Construction Machinery Limited 14th Annual Report 2025-26
Statutory Reports Management Discussion and Analysis Report

RMX currently operate through registered office situated at Office No. 401, 3rd and 4th Floor, Plot No. 209, Survey No. 96/2B, Right Bhusari Colony, Paud Road, Kothrud, Pune-411038, Maharashtra, India and fabrication unit -I situated at Plot No. A-44/1/A-52 & A-53, Rajmata Jijau Mahila Industrial Pre. Co-op Soc. Ltd, Chakan Industrial Area (MIDC), Phase-II, Vasuli, Chakan, Pune-410501, Maharashtra, India and Unit-II situated at Gate No. 1541 & 1542, Sonawanewasti, Chikhali, Taluka: Haveli, Dist: Pune: 411062, Maharashtra, India.

RMX are backed by a team of 134 employees along with research & development team as on March 31st, 2026. Design & Development is a key element of our ability to offer customized products to our customers and is a critical aspect of product development which is integral to our process of optimization to fulfil the demand of customers across diverse industries. Our team uses Siemens Solid Edge Software and ARES standard Auto CAD Software for design and development. Our customers are spread across various parts of India, and we have also exported our products to Nepal. We have sold various plants & machinery to over 200 customers across various industries in last three financial years.

Its brief financial performance for 2025-26, 2024-2025 and 2023-2024 is given below:

Year-wise Performance: Revenue from Operations, EBITDA, Profit Before Tax and Profit After Tax (Rs. Lakhs)

Particulars	March 31, 2024	March 31, 2025	March 31, 2026
Revenue from Operations	6,979.36	7,327.58	9,060.25
EBITDA	1,380.69	1,486.37	1,331.40
Profit Before Tax	1,232.29	1,254.22	1,011.43
Profit After Tax (PAT)	926.48	933.91	748.12

Plotted from the table above, for the years ended March 31, 2026, 2025 and 2024 (Amount in Lakhs).

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in Key Financial Ratios, along with detailed explanations thereof including:

31st March25: 3.59

31st March26: 2.64

Change in %: 26%

Remarks: The Ratio has impacted owing to increase in Short Term borrowings.

Debt-Equity Ratio

	31st March25	31st March26	Change in %
Debt-Equity Ratio	0.06	0.25	330%

Remarks: The Ratio has impacted as the Company has availed Working Capital limits during the year against the pledge of Current Assets and Fixed Deposits.

Debt Service Coverage Ratio

	31st March25	31st March26	Change in %
Debt Service Coverage Ratio	6.52	5.02	-23%

Return on Equity Ratio

	31st March25	31st March26	Change in %
Return on Equity Ratio	0.23	0.12	-51%

Remarks: The Ratio has impacted as the profits during the year has reduced, and owing to the IPO during the previous year, the Average equity has substantially gone up.

Readymix Construction Machinery Limited 14th Annual Report 2025-26
Statutory Reports Management Discussion and Analysis Report

Inventory Turnover Ratio

	31st March25	31st March26	Change in %
Inventory Turnover Ratio	5.16	3.37	-35%

Remarks: The Ratio has impacted as the Inventory during the year has substantially gone up, whereas the Turnover has not changed in the same proportion. This is owing to orders expected to be dispatched in next year.

Trade Receivables Turnover Ratio

	31st March25	31st March26	Change in %
Trade Receivables Turnover Ratio	2.20	1.99	-10%

Trade Payables Turnover Ratio

	31st March25	31st March26	Change in %
Trade Payables Turnover Ratio	4.66	5.97	28%

Remarks: The Ratio has impacted as the Purchases have substantially gone up, whereas the Payables have not increased in the same proportion.

Net Capital Turnover Ratio

	31st March25	31st March26	Change in %
Net Capital Turnover Ratio	1.28	1.42	-11%

Net Profit Ratio

	31st March25	31st March26	Change in %
Net Profit Ratio	0.13	0.08	-35%

Remarks: The Ratio has impacted as the profit for the year has gone down.

CIN: L29248PN2012PLC142045 www.rcmpl.co.in
Registered Office: Office No. 401, 3rd & 4th Floor, Plot No 209, S.No. 96/2B, Right Bhusari Colony, Paud Road, Kothrud, Pune 411038

Remarks: The Ratio has impacted as the EBITDA during the year has gone down.

Return on Investment

	31st March25	31st March26	Change in %
Return on Investment	0.14	0.09	-39%

Remarks: The Ratio has impacted as the profit for the year has gone down.

6. SWOT ANALYSIS

Globally, India has become one of the key potential markets for construction equipment. Further, it is estimated that by 2026, Indias construction market will emerge as the third largest in the world, which would exhibit huge demand for construction equipment in the coming years. Therefore, the construction equipment companies in India have all the reasons to smile. However, their way to success is not easy and there lay many strengths, weaknesses, opportunities and threats on their way.

STRENGTH

• The high construction and infrastructural growth, technological developments and their adaptations and rapid urbanization is fueling the growth of construction equipment industry and the companies in the segment.
• The demand for construction equipment is also growing owing to increasing government spending on infrastructure developments including residential and non-residential projects. This is also helping the construction equipment companies to scale up their businesses.
• Growing industrialization, commercial hubs and expansion of roads, flyovers, metros, airports, railways and highways across the country is also spurring the market for construction equipment and propelling the growth of construction equipment companies in India.

WEAKNESS

• Construction equipment manufactured in India are still not comparable to the ones manufactured by international players on the grounds of advanced technology used and new features. Hence, there is a long way to go for the Indian construction equipment manufacturers.
• The construction equipment companies in India are not well-equipped to cope up with the heavy demand for construction equipment in the country.

• Many construction equipment companies in India do not have a strong brand presence in the country as well as in the world.

OPPORTUNITIES

• The end-users are demanding world-class technology for better fuel efficiency, higher productivity and profitability, thus, construction equipment manufacturers in India can come up with innovative solutions to meet customer expectations.
• Demand for construction equipment is likely to rise because of growth in traditional end-user industries, including construction and mining. Thus, the construction equipment manufacturers in India can tap these markets.
• Growing urbanization is also set to positively impact the growth of construction equipment industry, thus promoting the growth of construction equipment companies in India.
• Government of Indias Make in India campaign, 100 Smart Cities project and Housing for All scheme covered in over 300 cities would also provide the necessary boost to the demand for construction equipment in the years to come.
• In future, collaborating with other equipment companies could also be the key to success. Alliance across industry due to the entry of more diverse and technology-driven products into the marketplace could help. Further, major agreements, contracts, joint ventures and partnerships between the construction equipment companies in India can aid the manufacturers to create a large customer and partner base and introduce new products in the market.

THREATS

• Many new construction equipment players have emerged in the country and many more will hit the ground in the coming years. Thus, the construction equipment companies in India will have to face stiff competition.
• While construction equipment manufactures in India will continue to put in the market increasingly sophisticated machines in greater numbers, the industry might have to face an increasing shortage of trained manpower to operate and service these machines, thus impacting sales.

7. RISK AND CONCERN

The Company is responsible for handling risks, which forms a part of good corporate governance. As part of our group values, adequate risk management ensures that risks are identified early and mitigation process is defined. Various types of risks that can be categorized into external risks and internal risks impact the Company.

External Risks:

Industrial risks like change in government regulations or their implementation could disrupt our operations, unethical marketing, dishonest advertising, questionable pricing practices, inaccurate claims with regards to safety and efficacy of the product, Political instability, Natural calamities, Terrorist attacks, civil unrests etc.

Internal Risks:

The Company can improve operational performance and create long-term value for shareholders on the back of superior consumer innovation as well as persistent focus on profitable growth and cost efficiency. The internal departments of the Company proactively monitor and manage the operational risks at various levels.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Companys internal audit system has been continuously monitored and updated to ensure that assets are safeguarded, established regulations are complied with and pending issues are addressed promptly. The audit committee reviews reports presented by the internal auditors on a routine basis. The committee makes note of the audit observations and takes corrective actions wherever necessary. It maintains constant dialogue with statutory and internal auditors to ensure that internal control systems are operating effectively.

9. HUMAN RESOURCE MANAGEMENT

To build a talent pool, it becomes necessary for the human resources function to partner with the various business segments so as to create a work ecosystem that shall have on board, the right talent and therefore nurture them to deliver superior performances. As an organization committed towards motivating its employees, the Company believes in recognizing and rewarding its employees for their extra-ordinary contributions through quarterly and annual rewards programs. It also recognizes employees who have contributed to the organization. Your company is focused on building a high-performance culture with a growth mindset. Developing and strengthening capabilities of all employees has remained ongoing priority.

10. CAUTIONARY STATEMENT

Statements in this report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement because of many factors like economic condition, availability of labor, price conditions, domestic and international market, changes in Government policies, tax regime, etc. The Company assumes no responsibility to publicly amend, modify or revise any statement on basis of any development, information and event.