Resgen Ltd Management Discussions

The purpose of this discussion is to provide an understanding of business of the Company, Financial statements and a composite summary of performance of our business. Management Discussion and Analysis Report (MDAR) is structured as follows:

Global Economy Overview

Current Economic Landscape

The Internaonal Monetary Funds (IMF) July 2024 World Economic Outlook projects global growth rates of 3.2% for 2024 and 3.3% for 2025, aligning closely with previous forecasts. The early months of the year witnessed varied economic performance across regions, contribung to a narrowing of output disparies as transient economic factors waned. However, the path to economic stability is complicated by stubborn in aon, parcularly in the services sector, which hampers efforts to normalize monetary policies.

Regional Economic Dynamics

The global economy experienced a revival in trade as 2024 began, propelled by strong exports from Asia, notably in the technology sector. Nevertheless, significant regional disparies persist. The United States encountered a more pronounced slowdown than ancipated, aributed to declining consumpon and a negave trade balance. Japan grappled with temporary disrupons in its supply chains. In contrast, Europe showed promising signs of economic recovery, driven by improvements in the services sector, while China benefited from a surge in domesc consumpon. Despite these posive trends, the overall pace of disin aon has been gradual, primarily due to persistent in aon in service prices, even as goods prices demonstrate more robust disin aon paPerns. This uneven in aon landscape has led to delays in normalizing monetary policy in some advanced economies, parcularly the United States, compared to others where in aon trends are more favourable.

Future Economic Prospects

Looking ahead, the global economic outlook presents a nuanced picture, with steady growth prospects counterbalanced by substanal downside risks. Advanced economies are expected to experience modest growth convergence, with the United States and Europe gradually narrowing their output gaps. Emerging markets, especially in Asia, are projected to achieve stronger growth, driven by robust domesc demand and exports. However, growth prospects for other regions, such as Lan America and sub-Saharan Africa, remain less opmisc due to structural challenges and external shocks, including natural disasters and geopolical tensions. The diverse economic trajectories across regions underscore the need for tailored policy approaches to address specific challenges and capitalize on growth opportunies.

Policy Imperaves and Reform Agenda

To navigate the complex economic landscape, policymakers must focus on striking a delicate balance between fostering economic recovery and maintaining price stability. This necessitates a cauous approach to normalizing monetary policy, parcularly in economies grappling with higher in aon risks. Moreover, implemenng structural reforms is crucial to enhance producvity, facilitate labor market integraon, and strengthen scal bu ers. For emerging markets, e ecve management of currency and capital flow volality is essenal, coupled with judicious use of foreign reserves and targeted macro prudenal policies. As the global economy connues to evolve, the ability of naons to adapt their policy frameworks and implement necessary reforms will play a pivotal role in shaping the trajectory of economic growth and stability in the coming years.

(Source:hps://www.imf.org//media/Files/Publicaons/WEO/2024/Update/July/English/text.ashx)

Indias Economic Landscape

Growth and Economic Resilience

Indias economy has demonstrated remarkable resilience in the face of global uncertaines. The scal year 2023-24 (FY24) saw real GDP growth soar to 8.2%, with three out of four quarters exceeding the 8% mark. This impressive performance was underpinned by stable consumpon demand and a steady increase in investment. Looking ahead, the economy is projected to maintain its momentum, with growth forecasts ranging between 6.5-7% for the scal year 2024-25.

Sectoral Contribuons and Industrial Performance

The diverse nature of Indias economy is reflected in its Gross Value Added (GVA) composion for FY24, with agriculture contribung 17.7%, industry 27.6%, and services dominang at 54.7%. The industrial sector, parcularly manufacturing and construcon, showed substanal growth, both expanding by 9.9%. This growth was fueled by reduced input prices and robust domesc demand. The services sector also experienced significant growth, driven by increased acvies in financial and professional services, as well as retail and wholesale trade.

Key Economic Indicators and Fiscal Management

Several key economic indicators underscore the strength and dynamism of the Indian economy. Retail in aon moderated to 5.4% in FY24, down from an average of 6.7% in FY23, due to a combinaon of government measures and monetary policy adjustments by the Reserve Bank of India (RBI). The scal de cit of the Union Government also improved, decreasing from 6.4% of GDP in FY23 to 5.6% in FY24, indicang progress in scal consolidaon efforts. Investment acvity, as measured by Gross Fixed Capital Formaon (GFCF), has shown robust growth, with private non- financial corporaons increasing their investments by 19.8% in FY23.

Banking Sector Stability and External Posion

The banking sector in India remains strong, with the Gross Non-Performing Assets (GNPA) rao declining to 2.8% in March 2024, the lowest in 12 years, re ecng improved asset quality. The sector is well-posioned to support growing investment demands, with steady credit growth in both industrial and personal loans. On the external front, Indias foreign exchange reserves were sufficient to cover 11 months of projected imports by the end of March 2024, demonstrang a stable external posion despite global economic headwinds.

Social Welfare and Structural Reforms

The Indian government has connued to emphasize social welfare and structural reforms, focusing on improving the quality of life for its cizens through targeted iniaves. The Direct Benefit Transfer (DBT) system and other welfare programs have significantly enhanced scal efficiency and reduced leakages, with over 1 36.9 lakh crore transferred via DBT since 2013. Furthermore, female labor force parcipaon has increased significantly, from 23.3% in 2017-18 to 37% in 2022-23, largely due to the rising parcipaon of rural women.

Economic Outlook and Challenges

Looking ahead, India is poised for connued economic growth, supported by robust domesc drivers and a strategic focus on infrastructure development and investment. However, challenges remain, including potenal geopolical con icts that could disrupt supply chains, increase commodity prices, and revive in aonary pressures. The global trade outlook for 2024 is cauously opmisc, with merchandise trade expected to recover aWer a contracon in 2023.

(Source: hps://pib.gov.in/PressReleasePage.aspx?PRID=2034973)

Plasc To Fuel Industry: Overview & Outlook

Market Growth and Drivers

The Plasc to Fuel industry is experiencing significant growth, driven by the increasing demand for energy generaon from waste materials. In 2023, the global market size was esmated at USD 531.0 million, with projecons indicang a compound annual growth rate (CAGR) of 23.6% from 2024 to 2030. This growth is primarily fueled by the rising volumes of household and industrial waste, coupled with governmental iniaves to promote energy generaon from plasc waste. The markets expansion is parcularly notable in regions with high plasc consumpon and advanced waste management infrastructure, such as North America, Europe, and parts of Asia.

Technological Landscape

Pyrolysis dominates the technological landscape, holding over 80% of the market share in 2023. This method is becoming increasingly commercialized, with several operaonal plants and more in the pipeline. Other technologies like depolymerisaon and gasi caon are also gaining tracon. Polyethylene is the most common plasc type used in this process, accounng for about 32% of the market share, followed by PET at 21.5%. The industry sources its raw materials primarily from commercial and industrial waste, which represented over 61% of the market in 2023, with municipal solid waste also playing a growing role.

End Products and Applicaons

Crude oil emerges as the largest end-product segment, accounng for 60.31% of the market in 2023. It nds applicaons in various sectors, including automove fuels, industrial boilers, and power generaon. Other end products include sulfur, hydrogen, and specialized chemicals. The versality of these products contributes to the industrys appeal across different sectors.

Market Dynamics

The growth of the plasc-to-fuel industry is driven by factors such as increasing plasc waste generaon globally, rising oil prices making alternave fuels more aracve, and technological advancements improving conversion efficiency. However, the industry also faces restraints, including high inial capital costs for plant setup, uctuang oil prices a ecng pro tability, and compeon from mechanical recycling and biodegradable plascs.

Future Outlook

The increasing adopon of recycled materials across various industries is expected to drive demand for plasc waste recycling. Addionally, the rising need for sustainable waste management soluons and energy generaon alternaves posions the industry favourably.

Key areas for future development include improving process efficiency to handle a wider range of plasc types, developing more environmentally friendly conversion methods, expanding into new geographical markets, and integrang with exisng waste management and energy producon systems.

As the world grapples with plasc waste management, the plasc-to-fuel industry stands poised to play a crucial role in both waste reducon and alternave energy producon.

(Source: hps://www.grandviewresearch.com/industry-analysis/plasc-to-fuel-market)

Plasc Waste Pyrolysis Oil Market Overview

Market Overview and Growth Projecons

The global Plasc Waste Pyrolysis Oil Market has shown significant growth, reaching a value of USD 641.1 million in 2023. The market is expected to connue its upward trajectory, with a projected compound annual growth rate (CAGR) of 5.3% from 2024 to 2032. This growth is primarily driven by the increasing demand for alternave and sustainable energy sources, as well as supporve government policies and incenves worldwide aimed at promong renewable energy use.

Driving Factors and Industry Trends

The markets expansion is fueled by growing global concerns about plasc polluon and limited land ll capacity. Governments and industries are increasingly adopng circular economy pracces that priorize recycling and reusing plasc waste. The global goal of achieving zero-waste generaon is a key driver, encouraging the diversion of waste from land lls and the increased deployment of pyrolysis plants worldwide. Sustainable improvements in business operaons and e ecve customer service have also contributed to the markets development.

Segment Analysis: LDPE and Fuel

The Low-Density Polyethylene (LDPE) segment is poised for significant growth, with a projected increase of 4.5% from 2023 to 2032. This growth is aributed to LDPEs crucial role in developing eco-friendly packaging materials, aligning with the global shi towards sustainable packaging soluons. Meanwhile, the fuel segment dominated the market in 2022, accounng for 60% of the market share. The potenal of plasc waste-derived fuel to serve as an alternave to convenonal fossil fuels is driving this segments growth, contribung to efforts to reduce greenhouse gas emissions and dependence on nite resources.

Technological Advancements: Flash Pyrolysis

Flash pyrolysis is gaining significant aPenon in the energy and chemical industries due to its potenal in generang bio-based fuels, chemicals, and other value-added products. This process, which involves rapidly heang biomass or organic materials to high temperatures in the absence of oxygen, is expected to play a crucial role in the transion towards a low-carbon economy and in meeng the increasing demand for sustainable alternaves.

Regional Outlook: Asia Paci c

The Asia Pacific region is emerging as a key player in the plasc waste pyrolysis oil market. Rapid populaon growth, urbanizaon, and changing consumpon paPerns in this region have led to a surge in plasc waste generaon, creang an urgent demand for efficient waste management soluons. The adopon of pyrolysis technology in this region is expected to contribute significantly to waste reducon, resource recovery, and energy generaon, posioning Asia Pacific as a major growth driver for the global market.

(Source: hps://www.gminsights.com/industry-analysis/plasc-waste-pyrolysis-oil-market)

Pyrolysis Oil Industry Overview

Market Growth and Size

The pyrolysis oil industry is experiencing significant growth, driven by increasing demand for eco-friendly fuel alternaves and applicaons in heat and power generaon. As of 2024, the market size is esmated at USD 0.52 billion, with projecons reaching USD 1.28 billion by 2029. This represents a robust compound annual growth rate (CAGR) of 19.71% during the forecast period.

Impact of COVID-19 and Recovery

The COVID-19 pandemic inially hampered market growth in 2020 and 2021 due to widespread industrial shutdowns and restricons. However, the industry has shown strong signs of recovery since mid-2021, with renewed interest from market players driven by the global push for sustainability and the reopening of key sectors such as oil and gas, chemicals, and power generaon.

Applicaons and Potenal

Pyrolysis oil, derived from the thermal decomposion of organic materials, offers promising applicaons across various industries. Its potenal as a substute for convenonal fuels in boilers, furnaces, and power generaon has garnered significant aPenon. The product also serves as a valuable feedstock for renewable transportaon fuels and chemical producon.

Geographical Distribuon

The Asia-Paci c region is expected to exhibit the highest growth rate during the forecast period, indicang a shi in market dynamics and increasing adopon of pyrolysis oil technologies in developing economies.

Future Outlook

Looking ahead, the industrys outlook remains posive, supported by global trends towards sustainable and renewable energy sources. As industrial sectors connue to seek alternaves to tradional fossil fuels, pyrolysis oil is well-posioned to play an increasingly important role in the transion to a more environmentally friendly energy landscape. Ongoing research and development efforts are likely to improve the products efficiency and expand its range of applicaons, further driving market growth in the coming years.

(Source: hps://www.mordorintelligence.com/industry-reports/pyrolysis-oil-market)

Leveraging Cross-Industry Growth

Indias Oil and Gas Industry Size & Growth Trends

Market Size and Growth Forecast

The Indian oil and gas market is poised for significant growth in the coming years. Esmated at 38.12 billion cubic meters in 2024, the market is expected to expand to 49.12 billion cubic meters by 2029, re ecng a compound annual growth rate (CAGR) of 5.20%. This growth trajectory indicates a strong recovery from the downturn caused by the COVID-19 pandemic, which had severely impacted demand due to regional lockdowns and economic slowdowns. As the market has rebounded to pre-pandemic levels, the focus is now on sustaining this growth through strategic investments and expansions.

Key Drivers of Market Expansion

Several factors are driving the growth of the Indian oil and gas market. A key driver is the increasing capacity of natural gas pipelines, which enhances the distribuon network across the country, making energy resources more accessible. Addionally, the rising demand for petroleum products, spurred by a growing populaon and improving economic condions, is boosng market expansion. The oil and gas sector remains a cornerstone of Indias energy security and economic development, underscoring its importance as a primary energy source despite global shis towards renewable energy.

Downstream Sector Growth and Investment

Indias energy demand is projected to increase by 50% over the next two decades, driven by populaon growth and rising living standards. Despite the increasing global emphasis on renewable energy, petroleum fuels are ancipated to connue playing a major role in meeng energy needs. The expansion of re nery capacies, highlights the ongoing investments aimed at enhancing Indias re ning capabilies to meet the growing demand for re ned products like motor gasoline, diesel, and LPG.

(Source:hps://www.mordorintelligence.com/industry-reports/india-oil-and-gas-market)

Indias Waste Management Market Overview

The India Waste Management Market is set to grow significantly, with its size projected to increase from USD 12.90 billion in 2024 to USD 17.30 billion by 2029, at a compound annual growth rate (CAGR) of 6.10%. This growth is driven by rapid urbanizaon, increased domesc consumpon, and industrial acvity, leading to an escalaon in waste producon. By 2030, Indias annual waste producon is expected to reach 162 million tons, a significant rise from the current rate of 62 million tons.

Factors Driving Market Growth

The rising populaon density and industrial expansion have led to a surge in both hazardous and non-hazardous waste. This necessitates e ecve waste management soluons. Despite the growth in waste producon, the concept of a circular economy, which promotes recycling and waste minimizaon, is sll emerging in India. The market has vast potenal, with only 30% of the 75% recyclable waste currently being processed. However, inadequate policies and ine cient infrastructure present significant challenges to achieving e ecve waste management.

Government and Private Sector Collaboraon

In response to the growing waste crisis, the Indian government is increasingly looking towards public-private partnerships. Municipal bodies, responsible for waste management, have been encouraged to collaborate with private companies to establish sustainable systems. This approach aims to leverage private sector innovaon and efficiency to improve waste management pracces across the country.

Innovaons and Start-ups in Waste Management

India has seen a rise in start-ups focused on innovave waste management soluons. These companies are developing new methods to convert waste into valuable resources, addressing the dual need for environmental sustainability and economic viability. However, tackling the challenges in this sector requires extensive knowledge and robust infrastructure.

Trends in Waste Generaon

Urbanizaon and economic growth have resulted in a substanal increase in waste generaon, making India one of the top 10 countries globally in terms of municipal solid waste (MSW) producon. Reports indicate that India currently generates over 62 million tons of waste annually, but only 43 million tons are collected, and 12 million tons are treated before disposal. The remaining waste is oen dumped in land lls, posing environmental and health risks. By 2030, waste generaon is expected to reach 165 million tons, with hazardous, plasc, electronic, and biomedical waste also projected to rise significantly.

(Source:hps://www.mordorintelligence.com/industry-reports/india-wastemanagement-market)

Company Overview

Established in 2018, ResGen Limited, is an innovave company focused on transforming environmental sustainability into a commercially viable and scalable business model. The company tackles the global challenge of plasc waste by converng it into valuable fuel substutes through advanced recycling processes.

ResGens primary product, PlasEco, is a form of Pyrolysis Oil derived from various types of waste plascs, serving as an alternave to tradional furnace oil or diesel. By leveraging patented technology and strategic operaons, ResGen aims to create a polluon-free future.

Core Business and Products

Producon of Pyrolysis Oil from plasc waste and scrap. This oil, also known as bio-crude or bio-oil, is a synthec fuel that is being considered as a sustainable substute for petroleum products. Pyrolysis Oil has a high calori c value of approximately 10,500 GCV, and contains significantly lower sulfur and nitrogen content than diesel, making it less pollung when burned. The oil is suitable for direct combuson in industrial boilers, furnaces, and generators, and can be re ned into diesel for use in machinery, trucks, ships, and more.

Addionally, ResGen is at the forefront of research to produce virgin polymers and petrochemicals from Pyrolysis Oil, aiming

to establish a fully circular plascs recycling ecosystem in collaboraon with industry giants in India and abroad.

By-Products:

The pyrolysis process also yields valuable by-products, including Carbon and Gas:

Carbon: Used as a substute for coal, carbon produced in the pyrolysis process is combusted in industries such as cement and paper. It has commercial value and complies with environmental regulaons.

Gas: A non-condensable by-product with properes similar to LPG, this gas is used to power gas generators for electricity producon and as a fuel for burners within the plant. This self-su cient use of gas ensures minimal waste and a lower environmental footprint.

These by-products allow ResGen to maximize resource efficiency and contribute to a cleaner environment by recycling

plasc waste that would otherwise contribute to polluon.

Manufacturing Capabilies and Strategic Locaon

ResGen operates a Chemical Recycling Plant in Vikramgad, Maharashtra, strategically posioned near key industrial zones such as Mumbai, Thane, Kalyan, and Dombivli. This locaon provides easy access to raw materials and facilitates efficient distribuon of finished products.

Discussion on Financial Performance with respect to operaonal performance:

Parculars	FY 22	FY 23	FY 24
Total Income	480.81	2,358.83	4,557.44
EBITDA	201.20	1030.57	1532.61
Net Pro t	75.77	416.90	656.88

Strategic Growth and Expansion Plans

ResGen is focused on expanding its market presence and increasing producon capacity. The company aims to enhance its sales volume through:

Geographical Expansion: Extending its reach beyond Maharashtra to cater to other states and exploring internaonal markets.

Product Diversi caon: Developing new products and re ning exisng ones to meet evolving market needs.

Strategic Partnerships: Collaborang with leading petrochemical and polymer companies to advance circular economy iniaves.

Addionally, plans to leverage its strong supplier relaonships and cost management strategies to achieve economies of scale and opmize its supply chain.

Innovaon and Patented Technology

In 2021, ResGen was granted an Indian patent for its unique manufacturing process, which employs a patented catalyc process to improve the efficiency, safety, and scalability of pyrolysis.

Commitment to Quality and Sustainability

ResGen priorizes quality assurance and customer sasfacon by adhering to stringent quality control measures across all stages of producon. The companys commitment to high standards has fostered strong customer loyalty and repeat business. Furthermore, ResGens operaons contribute significantly to environmental sustainability by reducing plasc waste, lowering the reliance on imported fuels, and supporng iniaves like Indias Swachh Bharat Abhiyan.

Risk and Concerns

Environmental Regulaons: Changes in environmental laws or stricter enforcement could increase operaonal costs and require significant investments in new technology.

Perming and Licensing: Delays or di cules in obtaining or renewing permits could disrupt operaons or expansion plans.

Demand Uncertainty: The market demand for Pyrolysis Oil and other alternave fuels depends on market condions and regulatory support. Any decline in demand could affect sales and revenues.

Reliance on Patented Technology: Dependence on a single patented technology poses a risk if the technology becomes outdated or is surpassed by a more efficient process.

Increasing Compeon: The alternave fuel and recycling markets are becoming more compeve. New entrants or advancements by competors could erode ResGens market share.

Environmental and Safety Hazards: Handling hazardous materials involves risks of spills, accidents, and health hazards.

CHIEF FINANCIAL OFFICER CERTIFICATION

To,

The Board of Directors, ResGen Limited 919, Floor 9th, Plot-221, Maker Chamber V, Jamnalal Bajaj Marg, Nariman Point, Mumbai 400 021, Maharashtra, India.

Subject: Cer cate in accordance with Regulaon 33(2)(a) of the SEBI (Lisng Obligaons and Disclosure Requirements)

Regulaons, 2015:

We, undersigned cerfy that the Audited Financial Results for the year ended 31st March, 2024 prepared in accordance with Clause 33 of the SEBI (Lisng Obligaons and Disclosure Requirements) Regulaons, 2015 do not contain any false or misleading statement or gures and do not omit any material fact which may make the statements or gures contained therein misleading and we further cerfy that.

We have reviewed Financial statements and the cash flow statement for the quarter and year ended 31st March, 2024 and that to the best of their knowledge and belief:

these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

These statements together present a true and fair view of the listed entys a airs and are in compliance with exisng accounng standards, applicable laws and regulaons.

There are, to the best of our knowledge and belief, no transacons entered into by the listed enty during the year which are fraudulent, illegal or violaon of the listed entys code of conduct.

There are, to the best of our knowledge and belief, no transacons entered into by the listed enty during the year which are fraudulent, illegal or violaon of the listed entys code of conduct.

We accept responsibility for establishing and maintaining internal controls for Financial reporng and that we have evaluated the e ecveness of internal control systems of the listed enty pertaining to Financial reporng and we have disclosed to the Auditors and the Audit Commiee, deficiencies in the design or operaon of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to recfy these de ciencies.

We have indicated to the Auditors and the Audit Commiee:

significant changes in internal control over Financial reporng during the year;

significant changes in accounng policies during the year and that the same have been disclosed in the notes to the Financial statements; and

Instances of significant fraud of which they have become aware and the involvement therein, if any, of the management or an employee having a significant role in the listed entys internal control system over Financial reporng.

For and on behalf of the Board of

ResGen Limited

Sd/-

Kunal Bora

Chief Financial Officer