Sampann Utpadan India Ltd Management Discussions

The Management Discussion and Analysis Report has been prepared in accordance with the provisions of Regulation 34(2)(e) of Listing Regulations, read with Schedule V(B) thereto, with a view to provide an analysis of the business and Financial Statement of the Company for FY 2024-25 and should be read in conjunction with the respective Financial Statements and notes thereon.

The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a reasonable impact on global economic activity. The global economy is entering a phase of slower growth, influenced by protectionist trade policies and rising inflation. The projected global growth is expected to stabilise at 2.7% annually. While this marks a return to pre-pandemic growth rates, it remains insufficient to drive sustained development, particularly for emerging markets and developing economies (EMDEs), which contribute 60%of global growth. This stabilisation is attributed to easing inflation and supportive monetary policies. However, this is insufficient to offset the cumulative impact of previous economic shocks. EMDEs are experiencing slower per capita income growth, with many low-income countries unlikely to achieve middle-income status by mid-century without significant policy reforms. Key risks include heightened policy uncertainty, adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Regional growth in East Asia is projected to slow due to weak domestic demand in China. In South Asia, India is expected to drive regional growth, with a growth rate of 6.2% in 2025-26.

Managing downside risks dominates the outlook for most organisations. Ratcheting up a trade war, along with even more elevated trade policy uncertainty, could further reduce near and long-term growth. In contrast, eroded policy buffers could weaken resilience to future shocks. Divergent and rapidly shifting policy stances or deteriorating sentiment could trigger additional repricing of assets beyond what took place after the announcement of sweeping US tariffs on April 2, 2025, and sharp adjustments in foreign exchange rates and capital flows, especially for economies already facing debt distress. Broader financial instability may ensue, including damage to the international monetary system. On the upside, a deescalation of current tariff rates and new trade agreements providing clarity and stability in trade policies could lift global growth.

INDIAN ECONOMIC OVERVIEW

India is projected to remain the fastest-growing large economy for 2025-26, reaffirming its dominance in the global economic landscape. Our countrys economy is expected to expand by 6.2% in 2025 and 6.3% in 2026, outpacing many of its international counterparts.

Indias growth could be affected by trade tariffs from various channels including: 1) slowdown in global growth due to lower US and China growth; 2) a further delay in Indias private corporate capex recovery due to the risk of China offloading excess capacity in the manufacturing sector; and 3) greater depreciation pressure on Chinas RMB having implications for Indias net goods trade balance. However, we believe global policy shifts could offer new opportunities and strengthen the case for China + 1 supply chain shifts to India in the medium term.

Our Country will be able to maintain potential real GDP growth of 6-6.5% YoY over the next two years, making it the worlds third-largest consumer market in 2026 and third-largest economy by 2027 (after the US and China). We expect Indias nominal GDP to increase from USD 4 trillion in FY25E to USD 6 trillion by FY30E. We believe Indias potential growth could benefit from a manufacturing and export push, increased services exports, and digitalisation, leading to improvement in productivity and efficiency gains.

While the long-term growth prospects of India are pretty strong, the recent issues at our western border remain a threat to our economic growth for this year, especially if they escalate over the course of the next few weeks and months.

COMPANY OVERVIEW

Our journey started with a vision to revolutionise the energy sector by employing cutting-edge technology and an out-of- the-box approach. We operate through the following segments: Non-Conventional Energy and Reclaimed Rubber. The Non-Conventional Energy segment generates electricity from wind energy and transfers it to power grids. The Reclaimed Rubber segment has become a global supplier of crumb rubber, Whole tyre reclaim rubber, and steel scrap obtained from tyres recycled.

Our focus is to engage in producing, manufacturing, supplying, distributing, transforming, converting, transmitting, processing, developing, storing, and procuring all forms of non-conventional and renewable power and energy, and any such products and by-products derived from such business.

Through the years, Sampann Utpadan India (Formerly Known as S. E. Power) has become one of the leading suppliers of reclaimed rubber in the country. Our ensemble of dedicated professionals has helped the company to grow exponentially, catering to a staunch set of domestic and international clientele. Our team is constantly cooperating with various rubber research experts. It has been working closely towards improving rubber processing methods with our experience and technology know-how of the modern reclaiming process and the end product application requirement, Sampann Utpadan Indias (Formerly Known as S. E. Power) Rubber recycling segment is producing consistent, excellent quality reclaimed rubber with our modern process and quality control systems.

At Sampann Utpadan India (Formerly Known as S. E. Power), we constantly feel that resources are limited and that protecting the natural environment is one of humanitys most pressing concerns. We are committed to reusing and recycling rubbish with the use of non-conventional energy to protect the environment. As community members, we are responsible for ensuring a healthy and pollution-free environment for future generations.

During the year under review, your company focused on international markets, witnessed volatility in logistics costs due to geopolitical uncertainties in sensitive geographies, and experienced demand-supply imbalances. Compared to previous years, your company reported an improvement in key performance metrics.

Particulars	FY 2024-25	FY2023-24
Total Income (^ Lakhs)	9,263.63	7,182.10
Profit/Loss Before Tax (PBT) (^ Lakhs)	539.02	(87.13)
Profit after Tax (^ Lakhs)	398.55	(85.28)

INDIAN RECLAIMED MARKET INDUSTRY

The India Reclaimed Rubber Market Size was estimated at 278.4 (USD Million) in 2023. The India Reclaimed Rubber Market Industry is expected to grow from 500(USD Million) in 2024 to 1,200 (USD Million) by 2035. The India Reclaimed Rubber Market CAGR (growth rate) is expected to be around 8.284% during the forecast period (2025 - 2035)?€”source: https://www.marketresearchfuture.com/reports/india-reclaimed-rubber-market-47624?utm_source=chatgpt.com.

Key India Reclaimed Rubber Market Trends Highlighted Source:

The India reclaimed rubber market is witnessing significant growth, driven primarily by the increasing awareness of sustainable practices and the rising reliance on eco-friendly materials. Many manufacturers are shifting their focus towards reclaimed rubber due to its cost-effectiveness and environmental benefits, as it utilises waste from the tire industry.

The tire manufacturing sector in India is one of the largest consumers of reclaimed rubber, as it meets the demand for durable materials while reducing waste. Growth opportunities are emerging in the automotive sector as the Indian government promotes initiatives aimed at increasing the use of green technologies and practices.

This has increased the demand for reclaimed rubber products, particularly in the production of automotive components and tires. The circular economy principles and the trend of recycling have been gathering traction in India in recent years. The use of reclaimed rubber is being further promoted by the implementation of policies that encourage recycling and waste management in a variety of states.

Furthermore, the demand for rubber-based products in construction and transportation applications is being stimulated by the governments initiative to develop infrastructure. Industries are also being influenced to employ reclaimed rubber, which results in a competitive advantage due to the emphasis on reducing carbon footprints.

The local production of reclaimed rubber has created opportunities for small and medium-sized enterprises to expand and innovate in the market. In general, the reclaimed rubber market in India is not only responding to economic factors but also aligning itself with environmental sustainability, indicating a positive trend for future growth. Source: https://www.marketresearchfuture.com/reports/india-redaimed-rubber-market-47624?utm_source=chatgpt.com

INDIA RECLAIMED RUBBER MARKET DRIVERS SOURCE:

Growing Demand for Sustainable Practices

The increasing awareness about environmental sustainability and the need for eco-friendly products have become key drivers for the India Reclaimed Rubber Market Industry. According to the Central Pollution Control Board of India, approximately 9 million tons of scrap tires are generated annually, presenting a significant opportunity for rubber reclamation and recycling.

Companies such as Apollo Tyres and CEAT Ltd. are leading initiatives focusing on sustainable production methods and utilising reclaimed rubber in their products to reduce carbon footprints. The Government of India has also introduced various policies encouraging waste management and recycling efforts, leading to a projected rise in reclaimed rubber usage.

Automotive Industry Growth

The automotive sector in India has seen robust growth, projected to reach a production of 30 million vehicles by 2026, according to the Society of Indian Automobile Manufacturers. This growth is a substantial driver for the India Reclaimed Rubber Market Industry, as reclaimed rubber is increasingly used in manufacturing tires and non-tire automotive parts.

Notable companies like Tata Motors and Mahindra & Mahindra are incorporating reclaimed rubber in their products to enhance durability and reduce costs, driving further growth in market demand. Source: https://www.marketresearchfuture.com/reports/india-reclaimed-rubber-market 47624?utm_source=chatgpt.com

Government Initiatives Supporting Recycling

The Government of India has launched several initiatives aimed at promoting recycling, such as the Swachh Bharat Abhiyan and initiatives under the National Policy on Waste to Energy. These programs are establishing a framework that supports the growth of the India Reclaimed Rubber Market Industry.

By incentivising waste recycling, the government aims to promote circular economy practices, leading to an increase in the availability of reclaimed rubber. For instance, the Ministry of Environment, Forest, and Climate Change reports that approximately 90% of scrap tires could be recycled effectively, creating a strong opportunity for businesses in the reclaimed rubber space.

INDIA RECLAIMED RUBBER MARKET SEGMENT INSIGHTS SOURCE:

Reclaimed Rubber Market Type Insights

The India Reclaimed Rubber Market showcases a diverse range of types contributing to its overall growth and significance in the industry. Among these, Whole Tire Reclaim is particularly vital, as it demonstrates the industrys capacity to recycle used tires, reducing waste and promoting sustainability within the automotive sector. This segment plays a crucial role in meeting the growing demand for eco-friendly materials, aligning with Indias initiatives aimed at enhancing environmental conservation and waste management.

Butyl Reclaim is another noteworthy type known for its impermeability and suitability in applications ranging from automotive parts to seals. The unique properties of Butyl rubber make it a favourite for manufacturers looking to produce durable, high-quality products that support various industrial sectors, including construction and consumer goods.

Moreover, Ethylene Propylene Diene Monomer (EPDM) reclaimed rubber is gaining traction due to its resistance to heat, oxidation, and ozone, making it ideal for outdoor applications and roofing materials.

The Drab and Colored reclaimed rubber types serve essential functions in aesthetic applications while providing manufacturers with the ability to meet consumer preferences. This segment highlights the versatility of recycled rubber in various sectors, promoting customisation and making it appealing to industries focusing on innovative designs.

Lastly, the others category encompasses emerging types that reflect the evolving demands of the market, incorporating different processing methods and functionalities that align closely with contemporary uses.

As the market continues to grow, the segmentation within the India Reclaimed Rubber Market is likely to evolve, further catering to the industrys needs driven by technological advancements and sustainable practices. The growth drivers for these segments include increasing awareness of environmental issues, government regulations aimed at waste reduction, and the development of new applications for reclaimed rubber in various industries.

Overall, each type within the market not only contributes to the revenue but also supports a shift towards sustainable practices in Indias manufacturing landscape.

Reclaimed Rubber Market Application Insights

The India Reclaimed Rubber Market exhibits substantial segmentation within the Application realm, primarily concentrating on Tire and Non-Tire applications. The tire segment plays a pivotal role, as tires constitute a significant portion of reclaimed rubber usage due to the nations growing automotive and transportation industry, which rising vehicle sales and urbanisation have driven.

Non-Tire applications are also garnering attention, fueled by their diverse utility in products such as mats, seals, and various industrial goods, contributing significantly to the overall market dynamics.

As India emphasises sustainability and waste reduction, the reclaimed rubber sector is witnessing a shift towards environmentally friendly practices, enhancing its appeal among manufacturers looking to meet regulatory standards and consumer demand for green products. Moreover, the governments initiatives to promote the use of recycled materials further augment the growth prospects within both tire and non-tire segments. Overall, this balanced market segmentation reflects a robust demand trajectory aligned with Indias economic development and environmental goals, fostering innovation and opening new avenues for growth in the reclaimed rubber industry.

Reclaimed Rubber Market Tire Insights

The Tire segment within the India Reclaimed Rubber Market plays a significant role in the growth and sustainability of the automotive industry. This segment is crucial due to the increasing demand for cost-effective and eco-friendly alternatives to traditional rubber materials, which aligns with Indias objectives for sustainable development.

Among its various components, the Inner Liner contributes significantly to tire performance by maintaining air retention and ensuring durability. Inner Tubes serve as a vital solution for puncture resistance, especially in certain vehicle types.

Tire Side Walls not only provide structural integrity but also enhance aesthetic appeal and branding opportunities for manufacturers. Tire Plies are essential for reinforcing tires strength and stability, which is crucial for safety on Indian roads, which often face varying conditions.

Tire Treads, responsible for traction and handling, are vital, particularly in regions with monsoon climates, where road safety becomes an even greater concern. Moreover, Retreads present a sustainable option for extending the life of tires, reducing waste, and promoting an eco-friendly approach.

As the industry evolves, ongoing developments in these components will likely elevate the overall performance of tires, thus driving market growth and consumer confidence within the India Reclaimed Rubber Market.

Reclaimed Rubber Market Non-Tire Insights

The Non-Tire segment of the India Reclaimed Rubber Market is a vital component that has been witnessing significant growth due to its diverse applications across various industries. This segment encompasses several critical areas, such as Conveyor Belts, Moulded Goods, Adhesives, Footwear, Matting, Profiles, and Roofing, each contributing uniquely to the overall demand.

Conveyor Belts, for instance, play a crucial role in the logistics and manufacturing sectors, driving the need for durable and cost-effective materials. Moulded Goods present significant opportunities for customisation, catering to industries ranging from automotive to consumer products.

In the Adhesives category, the use of reclaimed rubber facilitates eco-friendly solutions, aligning with the increasing focus on sustainability. Footwear made from reclaimed rubber not only meets performance standards but also appeals to environmentally conscious consumers.

Matting products that utilise reclaimed rubber provide excellent durability and safety features, making them popular in commercial and industrial environments. Profiles and Roofing applications benefit from the properties of recycled rubber, such as resistance to weathering and UV light.

Overall, the Non-Tire segment remains a dynamic and essential part of the India Reclaimed Rubber Market, driven by innovation, increased industrial activity, and the growing trend towards recycling and sustainability.

India Tyre Market Outlook

The India Tyre Market is experiencing robust growth of 8.71% CAGR during the forecast period 2023-2030 and is projected to reach USD 25.50 billion by FY2031 from USD 13.11 billion in FY2023, mainly owing to the rapidly growing automotive industry in the country. Tyres play a crucial role in ensuring vehicle safety and performance, making them an essential component of the automotive ecosystem. In recent years, the market has witnessed several key drivers that have propelled its growth. With the rising disposable income and growing middle-class population, there has been a surge in demand for passenger and commercial vehicles. This has directly translated into increased demand for tyres. Additionally, government initiatives such as "Make in India" and the push for electric cars have further contributed to the markets growth.

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Another important driver is the focus on road infrastructure development. The Indian government has been investing heavily in building new roads and highways for better connectivity, which has led to an increase in vehicle sales and subsequently boosted the demand for tyres. The better infrastructure of roads has positively impacted the market for luxury cars in India. More than 16,000 luxury vehicles were sold in India in the first six months of 2022, a 55% increase from 2021. In March 2023, JK Tyres and Industries launched a premium tyre brand, "Levitas Ultra", to meet the growing demand for luxury cars.

Increase in Demand for OTR Tyre

India has witnessed an increase in demand for Off-The-Road (OTR) tyres in recent years. Several factors are included in this growing demand. Firstly, there has been significant infrastructure development in the country, including the construction of roads, highways, and airports. These projects require heavy machinery and vehicles that rely on OTR tyres for optimal performance in challenging terrains.

Secondly, the mining and construction sectors in India have experienced substantial growth. OTR tyres are essential for heavy-duty vehicles used in mining operations, earthmoving equipment, and construction projects. Moreover, the agriculture sector, which heavily relies on tractors and other agricultural machinery, has also contributed to the demand for OTR tyres. The expansion of mechanised farming practices and the need for increased productivity have driven the demand for reliable and durable OTR tyres. Overall, the increase in infrastructure development, growth in the mining and construction sectors, and mechanisation of agriculture have all fueled the demand for OTR tyres in the Indian tyre market. Manufacturers have responded by expanding their OTR tyre offerings to meet the specific requirements of these sectors.

Moving Towards to Green Approach in Tyre Manufacturing

In recent years, the Indian tyre market has been witnessing a shift towards a greener approach in tyre manufacturing. Several key players in the industry are actively adopting sustainable practices to reduce their environmental footprint. This includes the development and production of eco-friendly tyres that promote fuel efficiency and reduce carbon emissions. Manufacturers are increasingly focusing on incorporating sustainable materials, such as bio-based and recycled materials, in tyre production. They are also investing in research and development to improve tyre design and tread patterns, resulting in reduced rolling resistance and improved fuel efficiency.

Furthermore, tyre manufacturers are implementing energy-efficient manufacturing processes and adopting measures to reduce waste generation and enhance recycling and disposal practices. Government initiatives promoting sustainability and environmental conservation are also driving this green approach in the India Tyre Market. With increasing consumer awareness and demand for eco-friendly products, tyre manufacturers are embracing sustainable practices to meet the evolving market needs and contribute to a greener future.

Medium and Heavy Commercial Vehicle to lead the segment

Medium and Heavy Commercial Vehicles (MHCVs) are expected to lead the segment for the Indian tyre market due to an increasing demand for logistics and transportation services, driven by e-commerce, infrastructure development, and growing industrial activities. Vehicles such as buses and trucks require robust and durable tyres to handle heavy loads and endure long-distance travel. Key players in the market are focusing on developing tyres designed explicitly for MHCVs, with enhanced load-carrying capacity, improved fuel efficiency, and superior traction. The continuous growth in the MHCV segment, along with the need for tyre replacements and upgrades, is projected to drive the demand for tyres in this category.

(Source:- https://www.marketsandata.com/industry-reports/india-tyre-market)

Opportunities and Threats

Reclaimed rubber is a recycled rubber obtained through various thermochemical processes. The process softens and swells the rubber by shortening the polymer chain. It is used in multiple applications such as aircraft, automobiles, footwear, belts, hoses, and retreading.

The increasing inclination of manufacturers towards rubber recycling, driven by rising natural rubber prices, is a significant factor expected to drive revenue growth of the reclaimed rubber market over the forecast period. Moreover, increasing demand for rubber in automotive, footwear, and other moulded goods is expected to support revenue growth of the target market.

The Indian rubber industry has many positive strengths. An extensive plantation sector with the highest yield and indigenous availability of basic raw materials like natural rubber, synthetic rubber, reclaimed rubber, carbon black, rubber chemicals, fatty acids, rayon, nylon yarn, steel cord, bead wire, rubber machinery, and testing equipment is a boon to the Indian rubber industry.

Amidst the gloomy landscape of high volatility in the international economic environment, the Indian economy stands as a place of stability and opportunity. The countrys macro-economy is stable. Indias economic growth is amongst the highest in the world, helped by a reorientation of government spending much towards needed public infrastructure. The worldwide financial crisis is leading to surpluses, falling prices, and import/export restrictions imposed by countries to protect their own industries. But with an optimistic view towards the Indian economy, we can say that amidst the gloomy landscape of unusual volatility in the international economic environment, the Indian economy stands as a place of stability and opportunity.

The governments various initiatives for economic reform and the growth of the automobile industry in the country provide opportunities for the reclaimed rubber industry to grow. The development of the reclaim rubber industry largely depends upon the export of reclaim produce; therefore, the economic conditions of the importing country and currency movement play a crucial role. The growth of our Company largely depends on the export of our product and its position in both domestic and international markets, compared to other reclaim rubber manufacturers in the industry. However, the rubber price in the domestic and international markets has been moving abruptly throughout the year.

OPPORTUNITIES

?€? Rising adoption of reclaimed rubber in various industries, such as automotive, construction, and footwear

?€? Potential for cost savings and reduced carbon footprint through the use of reclaimed rubber CHALLENGES

?€? Competition from synthetic rubber manufacturers

?€? Difficulty in maintaining consistent quality and supply of reclaimed rubber

?€? Limited market penetration in developing regions due to low awareness and infrastructure constraints

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is engaged in two segments viz. generation of energy through non-conventional sources and production of reclaimed rubber.

Particulars	31- March-2025	31-March-2024
Non-Conventional Energy	28.49	343.77
Reclaimed Rubber Division	9,235.13	7,110.95
Total	9,263.63	7,145.32

Our companys core business continues to lead the industry. Despite challenges posed by advancements in tyre technology affecting RR utilisation, the commitment of brand owners and ongoing technological advancements in RR manufacturing sustain positive momentum in this segment. We have successfully increased our market share among the top tyre

manufacturers. Despite significant challenges related to the Red Sea issue affecting shipping logistics, our company has maintained a stable export share from India at around 20%.

The Government of India (GOI) has introduced the extended producer responsibility (EPR) regulation, which mandates tyre producers to offset their production by purchasing EPR credits from recyclers. Recyclers will receive credits for the production of specified materials from end-of-life (EOL) tyre waste. This regulation has already been implemented in the industry. It provides recyclers with an additional source of income for new technology development, offsets costs associated with sourcing EOL tyres, and organizes the supply chain to upgrade EOL collectors. Your company stands to be a significant beneficiary of this regulation, helping to generate additional revenue to create an inclusive supply chain and develop higher-performance materials for the future.

However, external challenges persist, notably rising input costs such as wage inflation and energy. However, due to the substitution of alternative green sources, such as wind power & solar, along with steps toward automation and improved workforce efficiency, there was no impact on margins.

Our RR business at Sampann has cultivated robust capabilities over the years, on the back of our strong focus on exports and global outreach.

OUTLOOK

Reclaimed rubber is a cured rubber produced after passing through various thermochemical processes. Reclaimed rubber is softened by shortening the polymer chain. It is used in multiple applications such as automobiles, aircraft, retreading, belts & hoses, footwear, and adhesives. Retreading has been the buzz of the town for its powerful proposition of minimising the tyre Cost-per-Km (CPKM) by a significant factor. CPKM, the embodiment of fuel efficiency, is an equally important parameter for tyres among fleet owners. Tyres constitute the second largest cost component after fuel in operating a fleet.

The growing automotive industry is fuelling the reclaimed rubber demand owing to its resistance to heat and ultraviolet light. The use is increasing in the manufacturing of wheels, tires, and belts & hoses with surging demand for automobiles globally.

The Asia Pacific region is the dominant region for the said market with almost 35% of the global revenue share. Due to rising sales of personal vehicles and technology transfer into the industry, China and India have recently seen a rapid increase in automotive production. According to the recently released reclaimed rubber market survey report, the European region has been rapidly growing in recent years.

Pursuant to the companys philosophy, the Company is focusing on consistent quality, physical properties of reclaimed rubber to facilitate its higher loading in the compound.

Further, the Company is continuously evaluating the available opportunities for its growth through continual market mapping initiatives. The opportunities in the industry would help the Company to amplify its business and revenue. The Company has gradually and steadily marched ahead to be an approved and preferred vendor for leading players in the automotive tyres, conveyor belts, and transmission belts industries, and continues to associate itself with several manufacturers in other segments. Discussions with dealers in high-selling areas are underway and in advanced stages to cater to mid-size but quality-driven customers.

RISK DUE TO TECHNOLOGY UPGRADATION

Rapid technological upgrades are also a matter of concern. On one hand, new technology would increase productivity and hence profitability; on the other hand, this change has rendered the existing technology obsolete, in which the company has made huge investments. However, to stay in the market, the Company has to adopt new technologies. Sometimes this process of migrating to the latest technology is cumbersome and time-consuming. This would also mean the business would lose on the critical time factor. To mitigate this risk factor, technology upgradation is the defined objective of the companys risk management strategy.

RISKS FROM FRAUDS AND ERRORS

Risks related to fraud and errors are controlled and mitigated through internal audits and various checks on every level of transactions.

RISKS ASSOCIATED WITH POLICIES OF GOVERNMENT

Change in Government policies may affect the Companys various financial and other decisions.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has implemented a comprehensive system of internal controls that is commensurate with the size and nature of its business and the complexity of its operations. Audits are led by professional internal auditors and supported by experienced personnel drawn from across the organisation. They provide reports on various activities, covering observations and pertinent comments on the adequacy of internal controls, along with their recommendations. The management judiciously reviews and takes appropriate action on the recommendations made by the statutory auditors, internal auditors, and the independent Audit Committee of the Board of Directors.

The company has an adequately designed communication network to support its business activities. Its manufacturing facilities endorse the highest health, safety, security, and environmental standards while maintaining operational efficiency.

FINANCIAL PERFORMANCE VIZ - A - VIZ OPERATIONAL PERFORMANCE

The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Statements, and other financial statements forming part of this Annual Report. For Financial highlights, please refer to the heading FINANCIAL STATEMENTS of Boards Report.

ENVIRONMENT, HEALTH, AND SAFETY (EHS):

The Company upholds stringent EHS program standards. Achieving a year of zero accidents, the Company also ensured no Near Misses in FY24. By implementing essential safety systems everywhere and conducting regular EHS audits with esteemed external agencies, the Company is well-prepared to manage any situations that may arise. With a focus on workplace safety, routine training and awareness sessions are held throughout the organisation. Cross-functional teams are established to foster a safety culture across the organisation. These teams operate within set timeframes and offer all employees the opportunity to participate and contribute.

The Company aims to meet more than 50% of its energy requirements through sustainable sources in the near future. It ensures adherence to all relevant EHS standards, maintains its status as a zero-discharge organisation, and records no time loss due to injury or occupational illness.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

At SAMPANN, people are our most important asset and a source of competitive advantage. SAMPANN is committed to creating an open and transparent organisation that is focused on people and their capabilities and fostering an environment that enables them to deliver superior performance. The Human Resource strategy is aimed at talent acquisition, development, motivation, and retention.

The Company has also been deliberately hiring employees from different cultural backgrounds, ideas, perspectives, and business experiences. Although the Companys business does not require significant workforce, it places great emphasis on workforce rationalisation and efficiency improvement as a policy.

The company has developed an evolved training calendar for all levels of employees, including those at the grassroots level, based on assessments of their training needs through competence and skill matrix analysis. There is a powerful and regular performance review and feedback system for all levels of HR. The Company is also committed to creating an open

and transparent organisation that is focused on fostering an environment that enables its human assets to deliver superior performance.

The HR policy acts as an effective lever for driving the Companys strategic initiatives and helps in integrating and aligning all people practices to the Companys business priorities.

Addressing the aspirations of the Indian populace, our businesses are intrinsically linked to Indias growth Trajectory. Innovation and enterprise form the essence of this surge of opportunities. This drives us towards continuous efforts in enterprise and innovation, which act as catalysts in realising these aspirations.

CAUTIONARY STATEMENT

Statements in the management discussion and analysis describe the Companys objectives, projections, estimates, and expectations, which may be forward-looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Factors that could make a difference to the Companys operations, inter alia, include the economic conditions, government policies, and other related/incidental factors.

The Company assumes no responsibility in respect of the forward-looking statements, which may change in the future based on subsequent developments, information, or events.

Place: - New Delhi		For and on behalf of Board of
Date: - August 22, 2025		Sampann Utpadan India Limited (Formerly Known as S. E. Power Limited)
	Sd/-	Sd/-
	Sachin Agarwal	Sanjeetkumar Gourishankar Rath
	(Managing Director)	(Executive Director)
	DIN:-00007047	DIN:- 08140999