Rudra Ecovation Ltd Management Discussions

The Management discussion and Analysis Report is a reflection of the current state of business of the company. It also deals with opportunities and challenges faced by Company and future outlook.

Global economic overview

In 2024, global GDP grew by approximately 3.3%, marginally above the 3.1% recorded in 2023. This expansion was primarily driven by resilient economic activity in the United States, where real GDP rose by 2.8%. In contrast, the Eurozone recorded modest growth of 0.8%, constrained by weak manufacturing performance and elevated energy costs.

Chinas economy expanded by 4.8%, but the momentum was weighed down by a prolonged property-sector downturn and subdued domestic demand. In India, growth remained strong, backed by domestic consumption and public infrastructure investments, maintaining its position as one of the fastest-growing major economies.

Manufacturing activity globally remained near stagnation throughout 2024, with the Global Manufacturing PMI hovering around the 50-mark, indicating a balance between expansion and contraction. While intermittent rebounds suggested that broader economic activity remained positive, factory output came under pressure due to weak new orders and lingering supply chain challenges.

Global inflation averaged 5.9% in 2024, with food and energy prices beginning to moderate. The World Banks commodity price index declined by approximately 3% in Q1 FY 2024, led by a sharp drop in energy prices- particularly natural gas and crude oil. Metal and agricultural prices remained broadly stable, with cotton prices falling nearly 9%, from 95 cents per pound in 2023 to 86.6 cents in 2024. This offered relief to textile manufacturers by lowering raw material costs and supporting downstream production.

Outlook

The IMF projects global GDP growth to decelerate to 2.8% in 2025, before witnessing a modest recovery to around 3.0% in 2026. Underlying headwinds stemming from elevated interest rates in advanced economies, renewed trade tensions due to rising tariffs and lower investment in many regions are contributing to this slowdown. As supply-side pressures abate and central banks gradually normalise monetary conditions, global headline inflation is expected to ease further from 5.9% in 2024 to 4.5% in 2025 and 3.5% in 2026. Growth in the United States is forecast to slow to 1.8% in 2025, as higher interest rates are likely to impact consumer spending and investment, while the Eurozone is expected to expand by about 1.2% on the back of fiscal support and an anticipated pickup in industrial production. In China, the expected growth rate is 4% in 2025, primarily due to structural reforms and a weak real estate sector.

Global manufacturing PMI is likely to remain near the 50 mark in early 2025, reflecting continued softening in new orders and cautious inventory restocking, even as services activity outpaces goods. Commodity prices are expected to stay relatively subdued as cotton prices, which fell roughly 9% in 2024 to 86.6 cents per pound, are projected to stabilise and possibly rise. USDA forecasts indicate tighter global ending stocks for 2025 and 26, which could lift the A-Index to around 82 cents per pound

World Economic Outlook Growth Projections

(Real GDP, Annual Percent Change)	Projections
	2024	2025	2026
World Output	3.3	2.8	3
Advanced Economies	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Germany	-0.2	0	0.9
France	1.1	0.6	1
Italy	0.7	0.4	0.8
Spain	3.2	2.5	1.8
Japan	0.1	0.6	0.6
United Kingdom	1.1	1.1	1.4
Canada	1.5	1.4	1.6
Other Advanced Economies	2.2	1.8	2
Emerging Market and	4.3	3.7	3.9
Emerging and Developing Asia	5.3	4.5	4.6
China	5	4	4
India	6.5	6.2	6.3
Emerging and Developing	3.4	2.1	2.1
Russia	4.1	1.5	0.9

Indian Economic Overview

Indias economy remained remarkably resilient in the face of global disruptions. Strong domestic consumption, higher government spending on infrastructure and an accommodative monetary policy powered this growth. Retail inflation eased to 4.6% in FY 2024- 25, the lowest since FY 2018-19. This led the Reserve Bank of India (RBI) to implement its first rate cut in five years to 6%, thereby supporting continued growth.

The financial services sector remained stable, supported by well-capitalized banks and a solid regulatory framework. Government initiatives, such as ‘Make in India spurred domestic manufacturing growth, while long-term prospects in manufacturing and technology attracted strong foreign investment. The expansion of Indias digital economy, including e-commerce and digital payments, further boosted economic activity.

Imported commodity prices in India eased in FY 2024-25, with the World Banks Commodity Markets Outlook projecting a 5.1% decline in 2025 driven largely by falling crude oil and metals prices, which kept domestic inflationary pressures anchored.

Cotton prices in India averaged around INR 7,800 per quintal in FY 2024-25, supported by lower production and an INR 589 MSP increase in May 2025 that set prices at INR 7,710-8,110 per quintal.

Indias manufacturing sector grew at 4.8% in FY 2024-25, up from 4.7% in FY 2023-24. This contributed to 7.4% GDP growth in the fourth quarter of FY 2024-25. The government increased budget allocations to support manufacturing, with FDI in the sector reaching USD 184 Billion-a 90.5% rise over the past decade·fueled by production-linked incentive schemes. Over the past six financial years, total FDI inflows amounted to USD 464.54 Billion.14 With robust physical and digital infrastructure, India is now well-positioned to expand the share of the manufacturing sector in the economy and strengthen its role in global supply chains.

Outlook

The prospects for the Indian economy remain promising. A growing population, the governments continued thrust on infrastructure and a decade of digital transformation position Indias GDP for accelerated growth in the coming years. Despite global tariff pressures and geopolitical tensions, the RBI projects a strong GDP growth rate of 6.5% for FY 2025-26. Moreover, retail inflation is expected to hover around 4.0% in FY 2025-26, providing scope for further monetary accommodation if needed.

India has strong potential to grow its presence in global markets, supported by economic growth, long term employment prospects and skill development opportunities for millions. To tap into this potential, the Government of India has announced the National Manufacturing Mission in the Union Budget 2025-26, which aims to boost Make in India through supportive policies, ease of doing business, MSME growth, a future-ready workforce and clean- tech manufacturing. In Budget 2025-26, PLI allocations were further enhanced for key sectors, with electronics and IT hardware rising from INR 5,777 Crore to INR 9,000 Crore; automobiles and auto components from INR 346.87 Crore to INR 2,818.85 Crore; and the textile sectors PLI allocation surging from INR 45 Crore to INR 1,148 Crore.

The country is steadily advancing towards Industry 4.0, adopting best-inclass technologies in manufacturing. This is further supported by government initiatives such as the National Manufacturing Mission, which aims to raise the manufacturing sectors contribution to GDP to 25% by 2025.

Global Textile Market

The International Textile Manufacturers Federation (ITMF) has released the results of its 31st Global Textile Industry Survey (GTIS) for March 2025, reflecting a complex global landscape marked by modest deterioration in business conditions, persistent structural challenges and cautious optimism. After a gradual recovery since November 2023, the global textile industry saw a slight downturn in March 2025. While East Asia and North & Central America reported marginal improvements, overall business sentiment remained weak. Garment producers continued to outperform other segments, maintaining relatively stable performance. Despite short-term pressures, expectations for Q4 2025 remain positive, with Africa and the Americas expressing the strongest optimism. In contrast, East Asia displayed a more pessimistic outlook. Producers of garments, fibres and finished fabrics showed greater confidence, whereas those in technical and home textiles were more cautious.

Order intake momentum slowed, particularly in East Asia and Europe, though South-East Asia remained stable. Garment producers again led in sustaining orders. The global average order backlog fell slightly to 2.2 months, with Europe holding the longest due to its strong manufacturing base. Capacity utilization remained steady at 73%, bolstered by robust activity in Asia. Inventory levels rose, especially among yarn producers, while garment manufacturers continued to keep stock levels low amid market uncertainties.

Key industry concerns include:

Weak demand - cited by 62% of respondents Geopolitical tensions - cited by 41%

Rising interest rates and new sustainability regulations Concerns over energy and raw material costs showed a slight decline

The GTIS underscores the industrys resilience in navigating economic headwinds while maintaining a forward-looking stance.

The India textile recycling market size reached USD 328.3 Million in 2024. The market is expected to reach USD 427.2 Million by 2033, exhibiting a growth rate (CAGR) of 2.82% during 2025-2033. The market growth is attributed to increasing environmental concerns, government support for sustainable practices, rising awareness about waste management, the growing demand for eco- friendly products, innovations in recycling technologies, increasing textile waste generation, and a shift towards circular economy models in fashion and apparel industries.

Government initiatives are playing a crucial role in shaping Indias textile recycling market. The implementation of supportive policy frameworks, such as the Prime Minister Mega Integrated Textile Regions and Apparel (PM-MITRA) parks scheme, is central to this effort. The Ministry of Textiles has approved the development of seven PM-MITRA parks with a total investment of INR 4,445 Crore to establish world-class, end-to-end textile clusters. These integrated parks are expected to leverage Indias "5 F" vision (Farm-to-Fibre-to-Factory-to- Fashion-to-Foreign). It aims to create world-class textile hubs in multiple states, such as Uttar Pradesh, where a park is being built in Lucknow. These parks are designed to provide the infrastructure necessary to support sustainable textile practices, including recycling. By incentivizing investment in circular economy practices, the PM-MITRA scheme seeks to promote recycling-friendly ecosystems, such as textile waste sorting and fiber recovery.

In addition, the introduction of Extended Producer Responsibility (EPR) guidelines is creating a regulatory framework that encourages producers to take responsibility for the life cycle of their products. Global regulatory frameworks like the EUs EPR and Californias textile waste laws further pressure Indian stakeholders to invest in sustainable practices, influencing Indian textile producers, manufacturers, and recyclers to adopt circular methods.

Global PET Market Overview

The global PET packaging market was valued at approximately USD 41.03 billion in 2023, and grew to USD 42.34billion in 2024. It is projected to reach USD 66.28billion by 2032, rising at a CAGR of 5.76% over 2024-2032. Europe led the PET packaging market with a 30.32% share in 2023. The U.S. market alone is forecasted to reach USD 12.18billion by 2032, fueled by strong demand in the food & beverage sector.Asia-Pacific was the largest regional market for PET in 2024, holding 38% of global revenues. The Middle East & Africa region is expected to grow at a robust 6.3% CAGR through 2030.Consumer demand for lightweight, recyclable packaging, particularly in beverages and pharmaceuticals, is a major growth driver.

Source- https://www.fortunebusinessinsights.com/pet-packaging-inarket-1048997utm, https://www.fortunebusinessinsights.com/pet-packaging-market-1048997utm, https://www.grandviewresearch.com/industry-analysis/polyethylene-terephthalate-market7utm, https://www.gminsights.com/industry-analysis/pet-bottles-market7utm.

Indian PET Market Overview

PET is the most widely used material in the manufacture of rigid packaging containers, especially for packaging applications in food and beverage industries across the nation. Given the widespread use of PET in the Indian market, the government of India is increasingly encouraging the existing market as well as the adoption of recyclable PET. For instance, the Ministry of Environment, Forest, and Climate Change, allowed the use of recycled content in food- contact packaging. Moreover, to expand consumer base and meet their increasing demand, prominent PET producers across the country are increasing focus on the expansion of their production facilities, which is likely to propel the India PET market significantly.

The India PET bottle-grade market was approximately 1.285million tonnes (1,285 thousand tonnes) in FY2023, and is projected to reach around 2.23 million tonnes by FY2034, achieving a CAGR of 5.14% from FY2024 to FY2034.

For the recycled PET (rPET) flakes market, revenues were around USD 957.4million in 2024, with forecasts reaching USD 2,585.7million by 2033, at a significantly higher CAGR of 11.8% from 2025 to 2033. Growth is primarily fuelled by rising demand across packaged beverages, increased consumer convenience preferences, and awareness around health and hygiene. Expansion into medical and pharmaceutical packaging, alongside improvements in recycling infrastructure and regulatory support, are amplifying market potential.

Source- https://www.chemanalyst.com/industry-report/india-polyethylene-terephthalate- pet-market-70?utm, https://www.grandviewresearch.com/horizon/outlook/recycled-pet- fiakes-market/india ?utm

Fabric from Upcycled PET Bottles

As sustainability becomes central to global manufacturing and consumer choices, upcycling PET bottles into fabric has emerged as one of the most innovative solutions in the textile industry. Every year, billions of PET (polyethylene terephthalate) bottles are discarded, contributing to growing plastic waste and environmental challenges. By transforming this waste into high- quality fibers and textiles, the industry is not only reducing landfill and ocean pollution but also conserving resources such as energy and water that would otherwise be consumed in producing virgin polyester. The process begins with the collection and cleaning of post- consumer PET bottles, which are then shredded into flakes, melted, and extruded into fibers. These fibers can be spun into yarn and woven or knitted into fabrics. The resulting textiles are durable, versatile, and can be engineered for a wide range of applications including fashion apparel, sportswear, home furnishings, and industrial fabrics.

Source: Textile Value Chain - Recycling PET bottles into textiles, https://www.sciencedirect.com/science/article/abs/pii/S09596526193301207utin.

Market Analysis of Upcycled PET Fabric

The global recycled PET (rPET) market is experiencing robust growth, driven by rising consumer demand for sustainable textiles and stricter environmental regulations. The market size for recycled PET flakes was valued at USD 9.32 billion in 2023 and is projected to reach USD 18.21 billion by 2030, growing at a CAGR of 10.1%. Within this, the textile application segment dominates, accounting for over 40% of rPET demand, as global brands shift toward recycled polyester for fashion, sportswear, and home furnishings . In India, the rPET fabric market is expanding rapidly, supported by government policies such as the Plastic Waste Management Rules (EPR mandates) and growing adoption of sustainable materials by domestic textile leaders like Rudra Ecovation. The Indian recycled PET market is projected to nearly triple in value by 2033, reflecting both rising global exports and domestic consumption.

Source - https://www.grandviewresearch.com/industrv-analvsis/recvded-pet-market? utm, https://www.chemanalvst.com/industrv-report/india-polvethvlene-terephthaiate- pet-market-70?utm.

Plastic Waste Management Rules (Amended 2021) & Extended Producer Responsibility (EPR):

Mandates that producers, including PET manufacturers, ensure collection and recycling of a fixed percentage of plastics, creating direct demand for rPET and supporting Rudras Anaura product line.

Source: Ministry of Environment, Forest and Climate Change (MoEFCC)

Solid Waste Management Rules, 2016:

Enforces segregation of waste at source and inclusion of informal waste collectors in formal municipal systems, improving PET waste supply for recycling.

Source: MoEFCC, Government of India

Swachh Bharat Mission (Urban & Phase II):

Strengthens municipal solid waste infrastructure and awareness programs, enabling better PET waste collection that fuels Rudras recycling operations.

Source: Ministry of Housing & Urban Affairs (MoHUA)

Plastic Parks Scheme:

Provides cluster-based infrastructure support for the downstream plastic processing sector, fostering large-scale facilities such as Rudras integrated recycling operations.

Source: Department of Chemicals and Petrochemicals, Government of India

Mega Integrated Textile Region and Apparel (MITRA) Scheme:

Promotes sustainable and circular textile parks, aligning with Rudras Anaura upcycled textile line.

Source: Ministry of Textiles, Government of India

DST Support for Recycling Technologies:

Encourages R&D in advanced recycling and processing technologies, aiding innovation in Rudras PET recycling and fabric dyeing processes.

Source: Department of Science & Technology (DST)

Union Budget 2024:

Recycling Infrastructure Push: Allocates funding to promote plastic recycling and waste management infrastructure in major cities, opening partnership avenues for companies like Rudra.

Source: Union Budget 2024-25, Government of India

Uniform EPR Framework for PET Bottles:

Establishes clear national guidelines for PET collection and recycling targets, ensuring predictable feedstock for rPET-based textile products.

Source: MoEFCC Circulars on EPR Framework

Financial Support Schemes for Recycling Startups:

Provides incentives and funding for innovative recycling ventures, encouraging sustainable scale- ups such as Rudras Anaura brand.

Source: Ministry of Finance, Government of India

Research and Development (R&D)

In FY 2024-25, the Ministry of Textiles approved 23 strategic R&D projects (focused on specialty fibres, sustainable textiles, technical textiles and more) amounting to INR 60 Crore, with the objective of driving innovation and improved operational efficiency.

Trade Agreements

PM MURA Parks

Seven PM MITRA (Mega Integrated Textile Region and Apparel) Parks (with a total outlay of INR 4,445 Crore) are under developmentin Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra. These ‘farm-to- factory hubsaim to integrate spinning, weaving, processing and apparel manufacturing under one roof.

PLI Scheme

The Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of INR 10,683 Crore (from FY 2020-21 to FY 2025-26), hasalready generated INR 1,355 Crore in turnover, including INR 166 Crore in exports, by March 31, 2024. The scheme continues topromote the production of man-made fibre (MMF) apparel and technical textiles.

Kasturi Cotton Bharat

Launched in mid-2024, this joint branding and traceability initiative encourages the use of Indian cotton globally. At Bharat Tex 2025, Kasturi Cotton secured MoUs with few Industries, which further enhanced export prospects.

National Technical Textile Mission (NTTM)

With a total allocation of INR 517 Crore, the NTTM has disbursed INR 393.39 Crore across 168 projects (focusing on market development, export promotion and skill building) since its inception. This has further consolidated Indias leadership in high-value technical textiles.

Bharat Tex 2025

Bharat Tex 2025, Indias largest global textile event, was successfully organized from February 14 to 17, 2025, at Bharat Mandapam, New Delhi. The event spanned 2.2 million square feet and featured over 5,000 exhibitors, providing a comprehensive showcase of Indias textile ecosystem. More than 1,20,000 trade visitors, from 120+ countries including global CEOs, policymakers, and industry leaders, attended the event.

Bharat Tex 2025 served as a platform to accelerate the governments "Farm to Fibre, Fabric, Fashion, and Foreign Markets" vision. Indias textile exports have already reached ?3 lakh crore, and the goal is to triple this to ?9 lakh crore by 2030 by strengthening domestic manufacturing and expanding global reach. The event demonstrated Indias leadership in the textile sector and its commitment to innovation, sustainability, and global collaboration.

SWOT Analysis

The Company is mainly engaged in the business of Manufacturing of yarn and Fibre, so the Management considers as this is the only business segment of the Company.

STRENGTH

Resource Conservation:

• Reduces dependence on virgin raw materials (e.g., cotton, petroleum-based polyester).

• Helps address supply chain volatility and raw material price inflation.

Labour:

• The Indian apparel and textile industry has long been supported by low-cost labour and strong entrepreneurial abilities.

Adaptability:

• The garment industrys predominately small-scale manufacturing gives for more flexibility in handling more specific and smaller orders.

Government Support:

• Initiatives like the Production Linked Incentive (PLI) scheme for textiles aim to boost domestic manufacturing, especially in the man-made fiber (MMF) and technical textiles segments.

WEAKNESS

Low Recycling Rate

• Globally, <1% of textiles are recycled into new textiles.

• Lack of infrastructure for collection, sorting, and processing.

High Capital & Operational Costs

• Expensive, complex machinery required for fiber-to-fiber recycling (esp. blended fabrics).

• Long ROI periods discourage investment by smaller players.

Technological Limitations

• Difficulty in recycling mixed fibers, dyed materials, or garments with synthetic additives.

• Mechanical recycling often degrades fiber quality.

Limited Consumer Participation

• Low return rates for post-consumer textiles; lack of awareness or convenience in disposal.

• Informal recycling sectors dominate in many developing economies, lacking scale or compliance.

Quality & Design Constraints

• Recycled materials may not match performance or aesthetics of virgin fibers.

• Designers face limits in fabric types and applications.

OPPORTUNITIES

Global Shift towards Sustainable Textiles:

• Increasing demand for eco friendly and ethically produced products aligns with Companys sustainability agenda.

Expansion into New Geographies:

• Growing opportunities in emerging markets for home textiles.

Government Incentives:

• Benefiting from Production Linked Incentive (PLI) schemes and textile parks under Make in India.

Innovation in Functional Textiles:

• Scope to develop antimicrobial, organic, and smart fabrics.

THREATS

Global Market Volatility:

• Economic slowdowns, geopolitical tensions, and trade barriers can impact exports and input costs.

Intense Industry Competition:

• Price and quality pressures from global players, especially in textiles.

Regulatory and Environmental Compliance

Risks:

• Stricter norms, particularly in waterintensive sectors, can lead to cost and operational pressures.

Currency Fluctuations:

• Affects export competitiveness and profitability.

ESG Focus

ESG is not just compliance, it is the way we do our business

ESG Audit

• Received an ESG score of 73 from GEM Enviro Management Ltd via third-party audit.

Committed to Achieve UNSDG Goals

• Dedicated to achieving the UN Sustainable Development Goals (UNSDGs) by integrating sustainability into operations and fostering responsible practices across the supply chain.

Plastic Waste Used in Manufacturing

Processes

• OBP - Ocean Bond Plastic

• HBP - Hill Bond Plastic

• PCW - Post Consumer Waste

Environmental Impact

• 1.4 Lakh MT CO2 emissions saved annually

• 3.2 Billion PET bottles recycled annually

• 1M+ cubic meters of landfills saved annually

• 50% to 60% less energy used compared to virgin material

• 20% to 30% less water used compared to virgin material

HEALTH AND SAFETY MEASURES

The Company has health and workplace safety programs in place and has established policies and procedures aimed at ensuring compliance with applicable laws/legislative requirements. The Company believes that the health and safety of the workers and the persons residing in the vicinity of its plants is fundamental to the business. Commitment to the identification and elimination or control of the work place hazards for protection of all is utmost importance.

The total permanent employees strength of the Company was 214 as on 31st March, 2025. The industrial relation continued to remain cordial during the year.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resource is considered as the most valuable of all resources available to the Company. The Company recognizes the importance and contribution of its human resources for its growth and development and is committed to the development of its people. The Company has been adopting methods and practices for Human Resources development. With utmost respect to human values, the Company continues to develop its human resources, through appropriate trainings, workshops, motivation/ leadership techniques and employee welfare activities at regular intervals.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

Internal control systems for financial reporting have been put in place by the Company and they are appropriate for its size and sector. These solutions are made to protect company assets while increasing productivity and efficiency at every level of the organization. The Company has set up strict protocols to guarantee operational support and financial reporting accuracy. Business operations are regularly observed by an internal team and audit committee, which swiftly notifies the Management Board of any anomalies. To guarantee steady and sustainable growth, the Company creates strategies to recognise, evaluate and reduce risks based on these findings. These internal control mechanisms are essential for upholding regulatory compliance, combating fraud and preserving transparency. Ultimately, the Company attracts investment, builds stakeholder confidence and achieves long-term success in the market by offering strong financial reporting and operational support.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.

STANDALONE BASIS):

Particulars	2024-25	2023-24	Change (%)
Revenue from Operation	2735.24	2047.5	33.59
Operating Profit (EBITDA)	-88.77	184.77	-148.04
Finance Cost	145.71	170.1	-14.34
Depreciation Cost	115.56	130.31	-11.32
Profit/ Loss Before Tax	-350.03	-115.64	202.69
Profit/ Loss after Tax	-350.03	-115.64	202.69

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	Unit	2024-25	2023-24	Change (%)	Reason
Debtors Turnover	Days	5.95	1.67	257.06	Due to change in Average Receivable
Inventory Turnover	Days	1.76	1.13	55.61	Due to change in average inventories
Interest Coverage Ratio	Times	-0.61	1.09	-155.96	Due to Operating Loss
Current Ratio	Times	1.16	2.99	-61.13	Due to increase in current liabilities
Debt Equity Ratio	Times	0.06	0.07	-14.03	Due to increase in Debt
Operating Profit Margin (%)	%	-3.25	9.02	-136.03	Due to loss during the year
Net Profit Margin (%)	%	-11.57%	-2.61%	343.29	Due to increase in loss
Return on Net Worth	%	-3.86	-8.4	-54.05	Due to increase in Net worth

Cautionary statement

Certain statements that are forward-looking within the meaning of applicable laws and regulations may be included in the Management Discussion and Analysis Report along with your Companys goals, estimates, projections and expectations. There is a chance that the statements made or implied elsewhere will not exactly match those in this Management Discussion and Analysis Report. Aside from other incidental factors, significant factors that could affect the Companys operations include changes in governmental regulations, tax laws, the forex market, availability and pricing of raw materials, cyclical demand and pricing in the Companys primary markets and economic developments in India and the nations in which the Company conducts business. Subject to relevant laws and regulations, the Companys Management Discussion and Analysis Report may include forward-looking statements about its goals, estimates, projections and expectations. The Companys operations may be adversely impacted by certain factors and the actual results may differ from these statements.