Sandur Manganese & Iron Ores Ltd Management Discussions

GLOBAL ECONOMY

The global economy in 2025 faces a challenging and uncertain environment, shaped primarily by a sudden realignment of international trade policy. After a period of relatively stable, though modest, growth throughout 2024, circumstances changed dramatically at the start of 2025 as governments redirected their priorities. The United States, in particular, introduced sweeping new tariffs between January and April, with evolving tariff policies even beyond April, culminating in near-universal coverage and pushing effective tariff rates to century highs. These extensive measures prompted retaliatory actions from key trading partners, escalating global trade tensions and increasing uncertainty in economic forecasts.

These turbulent developments have weighed heavily on the worlds economic outlook. In the IMFs April 2025 reference forecast, which factors in all major policy actions through early April, global GDP growth is now projected at 2.8% for 2025 and 3.0% for 2026. These figures represent a substantial downgrade, amounting to 0.8% points cumulatively, compared to the IMFs expectations in January, and fall well below the 2000-2019 historical average of 3.7%. Advanced economies are expected to see growth slow sharply to 1.4% in 2025, with the United States decelerating to 1.8% and the Euro area projected at just 0.8%. Emerging market and developing economies are forecast to grow by 3.7% in 2025,

accelerating only slightly to 3.9% in 2026, with countries most affected by trade measures, such as China, facing the largest downgrades. Meanwhile, global inflation is anticipated to decline more gradually than previously expected, with a headline rate of 4.3% in 2025 and 3.6% in 2026, accompanied by upward inflation revisions in advanced economies and modest downward revisions in the developing world.

Downside risks now dominate the global backdrop. The heightened threat of an entrenched trade war, together with exceedingly high policy uncertainty, raises the potential for both short-term and long-term reductions in growth. The risk of asset repricing, abrupt shifts in exchange rates, and volatility in capital flows is especially pronounced for economies already burdened by debt. Demographic trends, like aging populations and shrinking foreign labour forces, also threaten to curb economic potential and put fiscal sustainability at risk.

REAL GDP - ANNUAL CHANGE

For many developing and low- income countries, reduced international support could worsen debt problems, forcing abrupt fiscal adjustments that would undermine growth and living standards.

Central banks should continue to prioritize price and financial stability, carefully adjusting policy in the face of increasingly complex trade-offs. Targeted foreign exchange interventions and macroprudential measures may be required to manage volatility and prevent the build-up of vulnerabilities. Lastly, credible fiscal consolidation and structural reforms are essential to restore fiscal space, reduce inequality, and reinvigorate medium-term global growth prospects.

Overall, the world economy stands at a crossroads, with the path forward contingent upon improved policy coordination and decisive domestic action to bolster confidence and resilience in the face of rising adversity.

Region	2024	2025 (P)	2026 (P)
Global Growth	3.3%	2.8%	3.0%
United States	2.8%	1.8%	1.7%
Euro Area	0.9%	0.8%	1.2%
Middle East & Central Asia	2.4%	3.0%	3.5%
Emerging & Developing Asia	5.3%	4.5%	4.6%
Latin America & the Caribbean	2.4%	2.0%	2.4%
Sub-Saharan Africa	4.0%	3.8%	4.2%
India	6.5%	6.2%	6.3%

Source: IMF - World Economic Outlook - April 20251 (P) stands for Projections

INDIAN ECONOMY

Indias economy in 2025 stands as a remarkable example of resilience and dynamism amid a turbulent global environment. As the fastest-growing major economy, India has maintained strong momentum. This consistent growth trajectory places India well ahead of its global peers and aligns closely with its own decade-long averages, despite pronounced challenges such as international trade disruptions, geopolitical tensions, and global supply chain constraints.

Economic growth in India continues to be broad-based, driven by positive contributions from agriculture, industry, and services. The agricultural sector has rebounded strongly, registering an expected growth of 3.8%, supported by record Kharif production and increasing rural consumption.

The industrial sector is projected to expand by 6.2%, underpinned by strong performance in construction, utilities, and a resilient manufacturing base that has withstood external demand pressures. Simultaneously, the services sector remains the principal engine of growth,

expanding at a robust rate of 7.2%. This sector now accounts for more than 55% of the countrys total Gross Value Added, with buoyant growth in information technology, financial services, and hospitality segments, particularly driven by a surge in export demand. Furthermore, Indias industrial capabilities have been bolstered by strong output in steel, automobiles, and electronics, with the latter witnessing especially rapid growth amid rising global demand for digital infrastructure.

Inflation management has emerged as a significant policy achievement. Headline retail inflation moderated from 5.4% in FY24 to 4.9% by the end of 2024, owing to improved food supply chains and timely government interventions. The Reserve Bank of India remains optimistic that inflation will move closer to its medium-term target of 4% by FY26, contributing to a stable economic environment that benefits both consumers and investors. Complementing this macroeconomic stability is the governments commitment to fiscal prudence, marked by increased capital expenditure, particularly in infrastructure

projects that have lasting multiplier effects across the economy. The financial sector has also shown substantial improvement, with gross nonperforming assets reaching a historic low of 2.6%, a narrowing credit-to-GDP gap, and notable expansion in the insurance sector, all pointing to a healthier and more efficient banking ecosystem.

Several enduring growth drivers continue to reinforce Indias positive economic outlook. Domestic consumption remains strong, bolstered by recovering rural demand and steady urban consumer spending. Public investments in infrastructure and manufacturing, combined with better credit availability and improved financial sector health, have provided critical support to overall demand and employment generation. The digital economy, in particular, is expanding at an exceptional pace, with estimates indicating that it will surpass $1 trillion in value by the end of 2025. This not only positions India as a major player in the global digital transformation but also deepens its economic integration with the rest of the world.

MD&A (Continued)

However, despite this impressive progress, certain challenges persist. Global uncertainties, including ongoing trade friction, geopolitical tensions, and fluctuating commodity prices, continue to pose significant risks. Inflationary pressures, especially those stemming from food price volatility and potential supply chain disruptions, require constant policy attention. On the structural side, the need for further reforms in taxation, labour regulation, and governance remains critical to sustaining high growth rates and improving economic efficiency.

Looking ahead, the economic outlook for 2025-26 remains broadly optimistic. GDP forecasts reflect confidence in Indias underlying economic momentum. Continued focus by the government on fiscal consolidation, productive capital expenditure, and long- pending structural reforms is likely to support this trajectory.

As India advances toward its long-term goal of becoming a developed economy by 2047, key policy priorities will need to include managing inflation effectively, enhancing workforce productivity, and fostering a culture of innovation and enterprise. Ultimately, Indias economic journey in 2025 is defined by its ability to weather global headwinds, capitalize on internal strengths, and pursue a reform-oriented agenda, securing its place as a leading force in the world economy.

Source: Economic Survey of India 2024-25, RBI

MANGANESE ORE

MARKET OVERVIEW

The global manganese ore market in 2024 was marked with various challenges and transformations that affected both the supply and demand dynamics. The year witnessed a moderate contraction in global manganese ore output, with production dropping by 5% to 19.8 Million Tonnes (MT) compared to the previous year. This reduction was triggered largely by a range of supply disruptions and operational setbacks. The suspension of South32s GEMCO facility in Australia as a result of Tropical Cyclone Megan was a significant blow to global supply, with the facility expected to restart only in 2025. Australia as a whole saw a significant 57% decrease in supply. Other key suppliers also reported some decreases such as Brazil (-35%), Malaysia (-2%), and Ivory Coast (-18%).

Despite these setbacks, there were pockets of notable supply growth as well. South Africa increased output by 9%, and Ghana by a remarkable 64%, largely offsetting contractions in other regions. Gabon saw only a modest 4% contraction but, together with South Africa and Ghana, these 3 countries accounted for a commanding 74% of global manganese supply, underscoring their critical role in the international manganese market. Notably, South Africa alone contributed 46% to the global total, consolidating its position as the worlds largest producer.

The year also saw changing trends in ore grade availability: supply of high-grade ore (>44% Mn) grew by 3%, and low-grade ore (<30% Mn) soared by 21%, whereas supply of mid-grade ore (>40% and <44% Mn) fell sharply by 44%. This shift in grade dynamics had significant implications for downstream industries relying on consistent ore quality.

Demand-side pressures further strained the market, particularly due to weakness in Chinas steel sector. The ongoing real estate crisis in China, the worlds largest steel producer and manganese consumer, resulted in softer demand for manganese in steelmaking applications, exacerbating the oversupply of certain ore grades and amplifying pricing volatility across the market.

Disruptions extended beyond Asia-Pacific. Multiple manganese mining and processing facilities in Ukraine have remained idle since November 2023 due to ongoing turmoil, though some resumed minimum production from the second quarter of 2024. These global disruptions contributed to increased near-term manganese ore prices, particularly for high- grade ore, as supply tightened in key producing regions.

Despite near-term challenges, the strategic importance of manganese was reinforced in 2024 by regulatory moves in Western markets. The European Unions Critical Raw Materials Act, which entered into force in May 2024, designated high- purity manganese (battery grade) as a strategic raw material and ordinary manganese as a critical raw material. Similarly, manganese remains on the U.S. list of critical minerals, emphasizing its indispensable role in industrial supply chains.

Manganese remains nonsubstitutable in most of its major uses, particularly in steelmaking, where it is vital for removing impurities and improving strength. Approximately 96% of global manganese ore consumption is into the steel industry, either directly in pig iron production or via upgrading to ferroalloys. Beyond metallurgy, manganese serves important roles in non-metallurgical sectors, ranging from animal feed and fertilizer production to its use as a colorant in brickmaking and as a key component in dry cell batteries.

Increasingly, the market is being shaped by the surging demand for high-purity manganese in battery manufacturing, driven primarily by Chinas expanding electric vehicle and energy storage sectors. Although battery applications currently account for only about 3% of total manganese ore consumption, this segment is experiencing robust growth and is likely to become an even more pivotal market driver in future years.

The Asia-Pacific region continues to be the worlds largest manganese market, powered by robust urbanization, construction

activity, and its key position in the global steel and automobile industries.

India, in particular, stands out as both the 6 th largest manganese ore producer and the 2 nd largest consumer, second only to China. According to the Ministry of Mines, Indias estimated production in FY25 stood 3.51 Million Tonnes (gross weight), a 2% increase over the previous year. Indian industry is led by PSU MOIL, and followed by private sector players like The Sandur Manganese & Iron Ores (SMIORE) and Tata Steel. Despite this growth, India remains a significant importer, highlighting the demand-supply gap and the anticipated acceleration in manganese demand as India pushes toward its ambitious 300-Million Tonne steel production goal.

Looking ahead, the global manganese ore markets prospects remain fundamentally sound, anchored by the metals diverse applications and its irreplaceable role in steel production and clean energy technologies such as EV & energy storage. Persistent supply risks, shifting grade dynamics, and the growing prominence of strategic regulatory frameworks are likely to dominate industry attention in the foreseeable future. The combination of emerging technological applications and enduring demand from the traditional steel sector assures that manganese will remain central to the worlds industrial and economic trajectory.

Source: International Manganese Institute; Ministry of Mines, Government of India; Mineral Commodities Survey, U.S. Geological Survey

MD&A (Continued)

IRON ORE

MARKET OVERVIEW

In 2024, the global iron ore market navigated a climate shaped by subdued demand and ongoing volatility. According to the World Steel Association, worldwide crude steel production fell by 1% for 2024, as a confluence of persistent softness in key consuming sectors, namely automotive, homebuilding, and general manufacturing, curtailed end-use steel consumption. While these weaknesses dominated the landscape, their impact was partly counterbalanced by new investments in climate resilience, the expansion of manufacturing facilities, and significant commitments to public infrastructure, reflecting a shifting investment landscape even amid broader headwinds.

Within this complex picture, the iron ore sector experienced notable transitions. Softer global demand, coupled with increased input costs across the steelmaking supply chain, exerted downward pressure on iron ore prices, leading to an average price decline of 8.6% in 2024 compared to the previous year. Notably, demand especially waned for mainstream

fines i.e., iron ore with a standard 62% iron content, prompting buyers and sellers to recalibrate both pricing structures and procurement strategies. The most striking market development was a heightened preference among Chinese mills, the worlds largest iron ore consumers, for lower-grade sinter fines. These cargoes, typically around 58% iron content, became more attractive as their price discounts relative to high-grade indexes narrowed. Economic rationalization compelled mills to prioritize cost management over premium production inputs, causing high- grade sinter fine trading activity to lag and reinforcing a clear pivot toward less expensive alternatives. The move to lower-grade ores was further driven by persistently elevated raw material costs and diminishing steel production margins, compelling mills to optimize input costs wherever possible.

Looking ahead to 2025, the market faces several pivotal uncertainties. Severe weather, such as a notably harsh Australian cyclone season, temporarily constrained supply as January 2025 shipments declined by about 5%. However, output from new sources, particularly the anticipated startup of Guineas Simandou project, is expected to more than compensate. The development of this massive high- grade deposit, jointly owned by the Government of Guinea and major international steelmakers, promises to reshape global supply balances; production is scheduled to commence in 2025 with a ramp-up toward 60 Million Tonnes annually by 2028. These factors, alongside routine seasonal upticks such as increased Chinese construction activities in the second quarter, are unlikely to offset the anticipated surplus, setting the stage for continued pressure on iron ore prices.

In India, the estimated production of iron ore stood at ~277.83 Million Tonnes in 2024-25 remaining largely flat over the previous year, as per the Ministry of Mines.

In sum, 2024 was marked by weakening iron ore values, an unmistakable turn towards lower-grade and non-mainstream fines, and the evolution of risk management in pricing and sourcing. The markets changing contours underscore deeper structural adjustments as steel mills worldwide adapt to high input costs and fundamentally evolving seaborne supply dynamics.

Source: S&P Globa!; Mineral Commodities Survey, U.S. Geological Survey; Ministry of Mines, Government of India; World Steel Association

FERROALLOYS

MARKET OVERVIEW

The global ferroalloys market is witnessing robust growth, with its value reaching US$ 56.7 billion in 2024 and projected to climb to US$ 97.4 billion by 2033, registering a compound annual growth rate (CAGR) of 5.9% between 2025 and 2033, according to Imarc Group.

This expansion is largely driven by the growth of the global steel industry, particularly in emerging Asia-Pacific economies, and the increasing demand for high-strength, low-alloy steels across diverse end-use sectors. Investments by developing countries in infrastructure and construction projects have significantly increased the demand for steel and, consequently,

for ferroalloys. Countries like China and India are experiencing sustained growth in industries such as construction, automotive, and steel manufacturing. Given their critical role in producing different grades of steel, ferroalloys have become indispensable to these sectors. This rising demand is further supported by active government initiatives focused on infrastructure development and urbanization, which in turn require large volumes of steel.

The global ferroalloys market is categorized primarily into bulk ferroalloys and noble ferroalloys. Bulk ferroalloys are extensively used in producing stainless steel and carbon steel, while noble ferroalloys, derived from pricier rare earth minerals, are used in specialized applications. These

alloys are integral to several industries, including automotive, construction, machinery, military equipment, and the manufacture of superalloys. High-carbon bulk ferroalloys are typically produced by large-scale industrial operations. In contrast, noble ferroalloys, which include types like ferro-vanadium, ferro- tungsten, ferroniobium, ferro- molybdenum, and ferro-titanium, are primarily low-carbon and serve niche, high-performance steel applications. Additionally, numerous small-scale units are engaged in producing ferroalloys like ferrosilicon, ferrochrome, and ferromanganese.

India occupies a prominent position in the global ferroalloys landscape and is known for producing high-quality ferroalloys with strong export potential, especially to European markets. According to The Indian Ferro Alloys Producers Association (IFAPA), the countrys installed capacity for bulk ferroalloys is approximately 5.10 Million Tonnes Per Annum (MTPA). The Indian ferroalloys industry is primarily concentrated in states such as Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, West Bengal, and Meghalaya. This regional focus is due to the easy availability of raw materials and the assured supply of electricity, both of which are critical for ferroalloy production.

Despite its strengths, the Indian ferroalloys industry faces certain challenges, the most significant of which is the high cost of electricity. Energy expenses account for a significant share of total production costs, prompting several industry players to operate below their full production capacity.

To address these challenges and harness new growth opportunities, the industry is focusing on:

Increasing production capacity through new plants and upgrading existing facilities

Investing in energy-efficient furnaces and automated material handling to optimise production costs

Expanding captive power generation to reduce dependence on costly grid electricity

Strengthening raw material linkages for a steady supply of essential inputs

Adopting technological innovations to improve efficiency and reduce costs

The long-term outlook for the ferroalloys market remains optimistic. Global demand is expected to rise, driven by factors such as increased construction and infrastructure development in emerging economies, a shift towards sustainable and recyclable building materials, and the growing production of low-carbon steel and high-speed cutting tools. As the global steel industry continues to expand and evolve, the ferroalloys sector is well-positioned to meet the rising demand for high-quality, performance-enhancing steel inputs across a wide range of industries.

GLOBAL SILICOMANGANESE MARKET OVERVIEW

In 2024, global silicomanganese (SiMn) production saw a 9% decline, falling to approximately 16.3 Million Tonnes. This decrease was primarily the result of a 12% contraction in supply from China, a consequence of the countrys efforts to correct inventory levels after building up strategic reserves in the preceding year. Steel production in China has remained relatively stable from 2022 to 2024 on account of the intentional oversupply. Thus by 2024, on account of both slowing global demand and inventory adjustments, there was a substantial reduction in Chinas silicomanganese output to the tune of 12%.

Outside China, SiMn production experienced contrasting trends. Supply increased among other Asian producers, with output rising by 2% in India, 10% in Malaysia, and 22% in Vietnam, which collectively helped offset a significant 62% decline in South Korea. European output grew by 16%, while production in the Americas and the Middle East each increased by 4% and 16%, respectively. Conversely, contractions were observed in the Commonwealth of Independent States (CIS) by 13%, in Africa by 6%, and in Oceania by 11%.

China continued to dominate the SiMn market in 2024, accounting for 68% of global supply, a decrease from 71% in 2023, but still above the 63% share seen in 2022. India maintained its status as the worlds 2 nd largest SiMn producer. Unlike China, where most SiMn is consumed domestically, India exported

over half of its 2024 supply, with exports comprising 53% of its total output. Beyond Asia, higher production rates were reported in Norway (up 13%), Brazil (up 5%), Georgia (up 54%), Mexico (up 1%), and Zambia (up 23%), while Russia experienced a 5% contraction.

In Ukraine, production was temporarily halted in the first quarter of 2024 and only resumed in the second quarter, which led to a steep 70% YOY decline in supply.

GLOBAL FERROMANGANESE MARKET OVERVIEW

Global production of high-carbon ferromanganese (HC FeMn) increased by 2% in 2024, reaching 3.9 Million Tonnes. Within Asia & Oceania, output was impacted by declines in South Korea (down 36%) and Malaysia (down 6%), which were balanced by increased production in China (up 1%), Vietnam (up 55%), and Australia (up 6%). As a result, the regions total output saw only a modest gain of 0.4%. North American supply decreased by 4%, South America by 2%, and the CIS by 2%, which offset robust growth in Europe (38%) and Africa (15%). Production levels in the Middle East remained stable YOY.

China held a firm 38% share of global high-carbon ferromanganese production, followed by India at 26% and Japan at 8%. Both India and Japan saw their output climb by 5% and 2%, respectively. Among other significant producers, Russia, Norway, and France registered an increase of 3%, 43%, and 6%, respectively. In contrast, Malaysia, South Korea, and Brazil saw production drop by 6%, 36%, and 1%, respectively.

Refined ferromanganese (Ref FeMn) output also rose globally by 2%, reaching 1.6 Million Tonnes, supported by a 1% production increase in Asia. North America, South America, and Africa each posted substantial production gains of 11%, 19%, and 35%, respectively, which helped counterbalance drops in Europe (down 4%) and the CIS (down 68%). In Asia, China and India led growth with respective output increases of 4% and 24%, holding a global share of 44% and 22% respectively, of global Ref FeMn supply. Norway remained the 3 rd largest producer, accounting for 14% of the total despite a 7% drop in volumes. Other notable shifts included Japan with an 8% decrease, while South Africa, the United States, and Vietnam observed sizable increases of 35%, 40%, and 35%, respectively.

Source: InternationaI Manganese Institute, Indian Minerals Yearbook2023 - Indian Bureau of Mines, I marc Group

COKE

MARKET OVERVIEW Pricing Trends & Market Dynamics

The global seaborne coking coal market experienced a dramatic downturn in 2024, with prices falling to their lowest levels in 4 years. Premium low-volatile (PLV) hard coking coal on an FOB Australia basis began the year strongly at $336.65/t in mid-January but subsequently collapsed to a yearly low of $176.50/t in September, representing a decline of nearly 50%. The market showed some recovery toward year-end, closing at $197.65/t FOB, though this remained significantly below the years peak.

The CFR China market mirrored this downward trajectory, with premium hard coking coal prices dropping below $300/t by March. This broad decline was attributed to oversupply in the ferrous raw materials complex, weaker-than- expected Chinese economic performance, and subdued steel industry demand that weighed heavily on market sentiment.

Global Supply-Demand Dynamics

Despite the challenging market conditions, Australian coking coal exports remained resilient, rising 1.3% YOY to 153.2 Million Tonnes in 2024. This growth was primarily driven by a 2.9% increase in hard coking coal shipments to 102.5 Million Tonnes, which offset a 0.7% decline in semi-soft coking coal and pulverised coal injection (PCI) exports.

China sustained its import demand growth, with coking coal imports increasing 20% to 122 Million Tonnes in 2024. Mongolia maintained its position as Chinas leading supplier with 56.8 Million Tonnes (+5%), while Russian

volumes surged 17% to 30.5 Million Tonnes. Notably, US coking coal exports to China jumped 82% to 10.7 Million Tonnes, making it the 3 rd largest supplier.

The market also faced several supply disruptions throughout 2024, including vehicle collisions on Australias Blackwater rail system and mine fires at Anglo Americans Grosvenor and Kestrel mines. However, these disruptions had minimal price impact due to persistently weak demand from major importers i.e., China and India.

India Coking Coal Market

Indias coking coal market presented a complex picture in 2024, with total metallurgical coal imports declining 3% to 55 Million Tonnes despite crude steel production growing 6% to 149 Million Tonnes. This apparent contradiction suggests improved efficiency in coal utilization or increased domestic production.

Australia remained Indias largest coking coal supplier, shipping just over 38 Million Tonnes in 2024, though this represented a nearly 10% decline from the previous year. Indian buyers continued seeking competitively priced alternatives, leading to significant supply diversification. Russia increased its exports to India by 25% to 6.34 Million Tonnes, while Mozambique recorded a remarkable 74% surge to 3.84 Million Tonnes, becoming the 4 th largest supplier.

The Indonesian metallurgical coke market significantly impacted Indias procurement strategy. Indonesia replaced Poland as Indias main met coke supplier, shipping 2.6 Million Tonnes in 2024. However, this dynamic shifted dramatically when India imposed strict trade barriers on Chinese and Indonesian met coke imports on 26 December 2024, effective from 1 January - 30 June 2025. Further, based on the follow-on Gazette Notification in June, the quantitative restriction measures have been extended for an additional period of 6 months up to 31 December 2025. This will provide further support to the domestic coking coal market.

These restrictions, capping met coke imports at 1.43 Million Tonnes for the first half of 2025, aim to protect domestic coke producers and stabilize pricing dynamics.

The policy initially triggered a surge in buying interest before implementation but has since led Indonesian producers to pause offers while assessing market conditions.

Outlook

The combination of rising supply and weak demand drove global met coke prices to their lowest levels since May 2020, with China FOB price ending at $270.10/Tonne. For India, the new import restrictions on met coke may increase direct coking coal procurement as merchant cokeries ramp up production, though meaningful demand increases have been slow to emerge in early 2025.

This market transformation reflects broader structural changes in global steel production and trade patterns, with implications extending well into 2025 as the industry adapts to new regulatory frameworks and supply chain realities.

Source: Argus Media - Insight Paper

SBQ STEEL

MARKET OVERVIEW

Indias Special Bar Quality (SBQ) steel industry represents a critical segment within the broader specialty steel & steel ecosystem, consisting of high- performance steel products engineered for demanding applications requiring superior strength, reliability, and precision. The SBQ steel market is a niche segment, known for its resilience and tailored properties, and is indispensable in applications where durability and precision are paramount. SBQ steel is typically used in components that spin or rotate, like axles, drive shafts and combustion engine components, as well as in wind turbines for renewable energy, railway applications, among others.

As the worlds second-largest steel producer, India has established itself as a significant player in the specialty steel market, with SBQ steel forming an integral component of the nations industrial infrastructure.

Government Policy Support

The Production Linked Incentive (PLI) Scheme for specialty steel represents a cornerstone initiative driving industry progress & growth. Launched with a budget of R6,322 crore in July 2021, the scheme targets promoting domestic manufacturing of specialty steel while reducing import dependency. The second round of the PLI scheme (PLI 1.1) launched recently in January 2025 has already received 73 applications from 25 companies, while committing investments worth R17,000 crore.

The scheme covers 5 broad categories including coated/ plated steel products, high strength/wear-resistant steel, specialty rails, alloy steel products & steel wires, and electrical steel. These categories encompass applications ranging from automotive components to transformers and specialized industrial equipment.

Application Sectors

1. Automotive Sector Leadership

The automotive industry emerges as the dominant consumer of SBQ steel, accounting for a significant share of SBQ production globally and representing the largest application segment in India. This demand is driven by the industrys shift toward lightweight, high- strength materials to improve fuel efficiency and meet environmental regulations.

2. Construction and Infrastructure Development

The construction and infrastructure sectors represent the second-largest application area for SBQ steel, driven by massive government initiatives including the Bharatmala Pariyojana, Smart Cities Mission,

and Pradhan Mantri Awas Yojana. These projects are creating substantial demand for high-performance steel products capable of withstanding extreme conditions and providing enhanced structural integrity. Infrastructure expansion, combined with urbanization trends and industrial corridor development, continues driving SBQ steel demand for applications ranging from reinforcing bars to specialized structural components.

3. Machinery and Heavy Equipment

The machinery and heavy equipment sector utilize SBQ steel for manufacturing critical components including bearings, gears, high-speed shafts, and other vital products requiring resistance to metal fatigue through prolonged continuous use. This application area benefits from Indias expanding manufacturing base and the governments Make in India initiative.

4. Railways and Transportation

Indias railway modernization programs represent a significant market opportunity for SBQ steel manufacturers. The sector requires specialized steel products including asymmetric rails and head- hardened rails, which are also covered under the PLI scheme.

The Indian SBQ steel industry represents a dynamic and rapidly evolving sector positioned for substantial growth driven by domestic infrastructure development, automotive sector expansion, and government policy support through initiatives like the PLI scheme. With Indiastransition toward becoming a $5 trillion

economy and the ambitious steel production targets under the National Steel Policy 2017, the SBQ steel segment has significant growth opportunities.

The industrys success will depend on addressing key challenges including raw material security, infrastructure development, and technology modernization while capitalizing on the growing demand from automotive, construction, and infrastructure sectors. The focus on import substitution, quality standardization, and export competitiveness positions Indian SBQ steel manufacturers favourably for sustained growth in both domestic and international markets.

COMPANY OVERVIEW

SMIORE is recognized as one of Indias most respected private sector miners and commodity producers, with a proud legacy of operations spanning over 7 decades. At the heart of its business lies a steadfast commitment to environmentally responsible, systematic, safe, and scientific mining practices.

Notable, SMIORE became the only mine from South India and the first among just 3 nationwide, to be honoured with the prestigious 7-Star Rated Mines Award under the Sustainable Development Framework (SDF) introduced by the Government of India in 2014. Further underscoring its dedication to sustainability, SMIOREs Kammathuru Iron Ore Mine was awarded the 5-Star Rating for the year 2023-24.

Since the inception of the SDF framework, the Company has consistently achieved a 5-Star rating for 10 consecutive years, an unparalleled achievement to its exemplary operational standards.

On a consolidated basis, SMIORE today operates across 4 key business segments:

Mining:

0.599 MTPA 4.45 MTPA

Manganese Iron ore

ore capacity capacity

Ferroalloys:

95,000/1,25,000 TPA

Ferroalloys capacity (SiMn/FeMn)

Coke & Energy:

0.50 MTPA 32 MW

Coke Waste-Heat

capacity Recovery

Boiler (WHRB) based power capacity

Steel: the latest addition in FY25, following the acquisition of its material subsidiary - Arjas Steel Private Limited, and step-down subsidiary Arjas Modern Steel Private Limited.

~0.585 MTPA 41 MW

Steel Captive power

manufacturing capacity (Solar capacity + Waste-Heat)

These diverse assets work in synergy with each other, harnessing the advantages of being an integrated Company within the metals and mining industry. With a strong, forwardlooking vision, SMIORE remains dedicated to becoming a fully integrated and sustainable commodity producer, well- positioned for long-term growth and industry leadership in the years ahead.

COMPLETION OF STRATEGIC BUSINESS ACQUISITION

On 25 April 2024, the Company announced a strategic business acquisition of Arjas Steel Private Limited (Arjas) which was completed on 11 November 2024. Thus, with effect from 11 November 2024, Arjas Steel Private Limited financial statements are consolidated into SMIORE.

The transaction involved acquisition of ~99% equity capital by the Company. This also resulted in the acquisition of Arjas Wholly- Owned Subsidiary i.e., Arjas Modern Steel Private Limited located in Punjab.

Arjas has been acquired at an Enterprise Value (EV) of ~A3,000 crore, while the equity value for the transaction is A1,914 crore.

The Company completed the transaction within the committed timelines of 7 months from the date of announcement, with all respective regulatory approvals in place.

Arjas is a speciality steel Company focused on manufacturing high quality auto grade Special Bar Quality (SBQ) steel. Arjas is an integrated manufacturer from coke, sinter, hot metal & billets, to value-add bars. It operates out of 2 manufacturing facilities, one each in Andhra Pradesh & Punjab. Together, these 2 facilities will have a cumulative manufacturing capacity of ~5 LTPA. Arjas manufactures over 100+ grades of steel with varied applications in the auto sector, across a marquee OEM clientele, consisting of key players in passenger vehicles, commercial & off-road vehicles, and two-wheelers. Arjas is also working on non-auto applications such as Railways (already RDSO approved), Energy and EVs.

Following the acquisition, integration efforts between Arjas and SMIORE have been progressing well. The Board of Directors (BOD) at Arjas has been reconstituted, with 4 BOD appointments representing SMIORE. Common functions across both companies are being streamlined; procurement at Arjas has been strengthened, and SMIORE has commenced iron ore supplies to Arjas. Work continues to maximize synergies between the two businesses.

This strategic acquisition has meaningfully accelerated SMIOREs forward integration from merchant mining to steel manufacturing, positioning the Company for enhanced growth and value creation in the metals sector.

BUSINESS SEGMENTS OVERVIEW

MINING Manganese Ore

Manganese ore production during FY25 was 5.12 Lakh Tonnes (LT) as compared to 3.15 LT in FY24, registering a robust growth of 63% YOY, on account of an increase in the Maximum Permissible Annual Production (MPAP) limits during the last two financial years from original 0.28 MTPA to 0.46 MTPA, with subsequent enhancements to 0.58 MTPA and ultimately to 0.599 MTPA.

Net of internal captive consumption, the sale of manganese ore was 1.75 LT in FY25, compared to 2.02 LT in FY24, registering a decrease of 13% over the previous year. While some of the incremental production volumes has been used towards higher captive consumption during the year i.e., 0.65 LT in FY25 as compared to 0.42 LT in the previous year, balance is closing stock carried by the Company to the next financial year. Realisation

per tonne of manganese ore was A8,090 in FY25, as compared to the previous years A7,887. Thus, the Company recorded higher sales of manganese ore during the year, on account of better average realisations.

Iron Ore

Iron ore production during FY25 was 38.10 LT, which was in line with the last financial years MPAP limit which was then subsequently expanded to 4.45 MTPA. FY25s production volumes stand significantly higher compared to 19.68 LT in FY24, registering a robust growth of 94% YOY. During the same period, the sale of iron ore was 40.12 LT, compared to 16.81 LT in FY24, thus registering an increase of 139% YOY. The ramp-up in production volumes along with closing stock from the preceding financial year resulted in the notable sales volumes growth in FY25.

Realisation per tonne of iron ore was A3,510 in FY25, as compared to the previous years A4,105. Thus, the Company recorded higher sales of iron ore during the year, on account of higher sales quantity while registering moderate decrease in average realisations.

It is also important to note, that in addition to the annual capacity expansion, we also received Consent For Operation (CFO) approval for one of our mining leases to handle incidental iron ore to the tune of 0.327 Million Tonnes by 31 August 2026. This approval enables us to sell already excavated ore amounting to 0.327 Million Tonnes, in addition to our annual production limits.

FERROALLOYS

Ferroalloys production during FY25 stood at 27,389 Tonnes (T), registering a marginal decrease of 5% over the previous years 28,694 T. Lower production volumes in Ferroalloys segment

in FY24 & FY25 compared to the higher base of FY23 were primarily on account of lower energy generation from Waste Heat Recovery Boilers on account of lesser capacity utilisation in Coke & Energy segment.

During the same period, the sale of ferroalloys was 17,954 T, compared to 28,446 T in FY24, a decrease of 37% YOY on account of higher closing stock at the year end. Realisation per tonne of ferroalloys was A68,464 in FY25, as compared to the previous years A62,648.

In notable recent developments, the Company has tied up ~46% of its Coking Coal capacity under contract through a conversion agreement with a customer effective 1 April 2025. This will ensure higher production and thus higher energy generation, which will aid volumes in the Ferroalloys segment.

COKE & ENERGY

During the year, the production for coke was 84,669 T compared to last years 67,606 T, registering a growth of 25% YOY. The volatility in the international coking coal market and fluctuations in exchange rates of coking coal continued to be a major impediment for this segment throughout FY25, similar to the year before. In light of the volatility, the Company took a cautious stance in Coke production, to mitigate the risk of inventory losses. Coke production under contract manufacturing arrangements was negligible in FY25 as compared to previous year on account of conclusion of conversion contracts at the end of FY24.

The sale of coke for the year stood at 82,772 T compared to previous years 54,036 T, registering a 54% increase YOY. Realisation per tonne of coke was A28,184 in FY25 as compared to A34,278 in FY24.

The sale of coke under conversion agreement (contract manufacturing) for the year stood at 1,812 T, as compared to 1,10,348 T in FY24. Conversion & screening income under contract manufacturing for the year was A2 crore, as compared to A25 crore in FY24, primarily on account of absence of conversion agreements in FY25. In a notable recent development, the Company has tied up ~46% of its Coking Coal capacity under contract through a conversion agreement with a customer effective 1 April 2025, this will aid overall volumes in this business segment in FY26.

MD&A (Continued)

STEEL

During the year, the consolidated production of steel products at Arjas Steel Private Limited (Arjas Steel) stood at 3.77 Lakh Tonnes (LT), compared to 3.11 LT in the previous financial year, registering a growth of 21% YOY. Further, consolidated sales volume stood at 3.64 LT, compared to 3.00 LT in FY24, also registering a growth of 21% YOY.

Realization per tonne of steel was A72,501 in FY25, as compared to A76,435 in FY24, reflecting a decline of 5% YoY, in line with broader steel industry trends. As a result, consolidated revenue for Arjas Steel stood at A2,884 crore in FY25, compared to A2,608 crore in the previous year, registering a growth of 11% YOY, supported by strong volume growth, which was partially offset by lower realizations.

EBITDA per tonne of steel was A5,201 in FY25, compared to A7,344 in FY24, a decline of 29% YOY. Consequently, EBITDA stood at A190 crore in FY25, compared to A220 crore in the previous year, registering a decrease of 14% YOY. Loss before tax for the year stood at A16 crore in FY25, compared to PBT of A33 crore in the previous year.

FY25 STANDALONE

PERFORMANCE

DISCUSSION

Total Income in FY25 stood at A2,011 crore as compared to A1,334 crore in the previous year, registering a notable increase of 51% YOY. This was primarily due to higher sales volumes in the Mining segments, on account of the expansion in MPAP limits. Iron ore sales were the key driver for revenue growth in FY25, while Coke & Energy remained largely flat and there was some decrease in Ferroalloys.

EBITDA for FY25 stood at A729 crore as compared to A402 in the previous year, registering a robust growth of 81% YOY, primarily on account of higher volumes in the higher-margin Mining segment, partially being offset by the drag in Coke & Energy segment. As a result, PAT for the year stood at A445 crore, registering a growth of 87% over the previous year.

FY25 CONSOLIDATED

PERFORMANCE

DISCUSSION

With effect from 11 November 2024, Arjas Steel Private Limited financial statements have been consolidated into SMIORE, which has led to notable changes in consolidated financial performance over standalone financial performance.

Total Income in FY25 stood at A3,212 crore as compared to A1,335 crore in the previous year, registering a notable increase of 141% YOY. This was primarily due to the consolidation of Arjas Steel financials in the latter part of the year, coupled with higher sales volumes in the Mining segments, on account of the expansion in MPAP limits.

EBITDA for FY25 stood at A862 crore as compared to A403 in the

previous year, registering a robust growth of 114% YOY, primarily on account of positive EBITDA contribution from Arjas Steel to the tune of A135 crore for the consolidation period between November 2024 to March 2025. As a result, PAT for the year stood at A471 crore, registering a growth of 97% over the previous year.

CREDIT RATING UPGRADE

On 4 March 2025, CRISIL Ratings upgraded the credit rating of SMIORE to Crisil A+/Stable upgraded from the erstwhile Crisil A while assigning a Stable outlook to the long-term rating. CRISIL Ratings has also removed SMIORE from Rating Watch with Positive Implications. The ratings were placed on watch positive on 8 May 2024, following the corporate announcement by SMIORE on 26 April 2024, for the strategic business acquisition of Arjas Steel Private Limited from private equity firm ADV Partners at an enterprise value of ~A3,000 crore.

The rating upgrade reaffirms the strong financial and balance sheet position of the Company, which continues to remain so postacquisition.

MAIDEN NCD ALLOTMENT

SMIORE concluded its maiden debt-raise via interest-bearing Non-Convertible Debentures (NCDs) route on a private placement basis. The Company issued 11% secured, listed, redeemable, rupee-denominated, transferable, and interest-bearing Non-Convertible Debentures (NCDs) on a private placement basis. The total issue size approved and allotted was A450 crore, with a face value of A1,00,000 per NCD.

This reflects SMIOREs ability to access funds through capital markets at favourable terms.

KEY FINANCIAL RATIOS - STANDALONE

Ratio	FY25	FY24	% Variance	Remarks
Current ratio	1.96	4.86	(59.74)	Refer note (a)
Debt equity ratio	0.40	0.06	559.19	Refer note (b)
Debt service coverage ratio	4.59	5.87	(21.83)	Refer note (b)
Return on equity ratio	18.75%	11.64%	61.07	Refer note (c)
Inventory turnover ratio	0.96	0.52	84.23	Refer note (d)
Trade receivables turnover ratio	109.01	14.02	677.52	Refer note (e)
Trade payables turnover ratio	8.35	4.44	88.06	Refer note (f)
Net capital turnover ratio	5.27	1.11	374.36	Refer note (g)
Net profit ratio	22.93%	19.01%	20.62	Refer note (c)
Operating profit margin	30.78%	20.97%	46.77	Refer note (c)
Return on net worth	17.20%	11.03%	55.84	Refer note (c)
Return on capital employed	18.52%	15.02%	23.31	Refer note (c)
Return on investment	9.03%	6.86%	31.69	Refer note (h)

Notes:

(a) Decrease in the investments has resulted in a decline in the ratio.

(b) impact is on account of new borrowings raised during the year.

(c) Increase in profit has resulted in an improvement in the ratio.

(d) Increase in cost of goods sold has resulted in a deterioration in the ratio.

(e) Increase in the revenue and decrease in trade receivables has resulted in improvement in the ratio.

(f) Decrease in trade payables has resulted in deterioration in the ratio.

(g) Increase in revenue from operations and decrease in working capital has resulted in improvement in the ratio.

(h) Decrease in the investments has resulted in an improvement in the ratio.

OUTLOOK

The outlook for the Company remains positive, driven by the recent enhancements in manganese ore and iron ore operations. The MPAP limits for manganese ore have been enhanced from 0.28 MTPA to 0.46 MTPA, with subsequent enhancements to 0.58 MTPA and ultimately to 0.599 MTPA. Similarly, iron ore MPAP limits have been enhanced from 1.60 MTPA to 3.81 MTPA, and further to 4.45 MTPA. These expansions are materially compliant with the parameters prescribed by the Honble Supreme Court, ensuring sustainable and responsible growth.

In addition to the annual capacity expansion at our mine, we also received CFO approval for handling incidental iron ore to

the tune of 0.327 Million Tonnes by 31 August 2026. This approval enables us to sell already excavated ore amounting to 0.327 Million Tonnes, in addition to our annual production limits.

On account of these mining expansions being concluded, we are entering FY26 on a strong footing, with all mining expansions operational from the very start of the year. This is expected to result in a further increase in mining volumes in FY26, leveraging the enhanced production capacities.

The Coke & Energy segment has faced challenges in the last two years due to heightened volatility in exchange rates of coking coal. The Company has adopted a cautious approach during this time to mitigate any potential inventory losses,

resulting in subdued volumes in this segment. Additionally, almost no volumes were recorded under the contract manufacturing agreements in FY25, which had led to reduced overall energy generation. However, this is set to change on account of the recent developments in this business segment, we have signed a conversion agreement with a customer effective 1 April 2025. This agreement secures ~45% of our capacity under contract, ensuring a steady production and subsequent power generation. This coupled with the 42.9 MW hybrid solar and wind energy project, will allow us to generate enough power to operate 2 of our 3 furnaces in the Ferroalloys division in FY26. Furthermore, as the coking coal markets stabilize, we plan to increase our production in this business segment.

MD&A (Continued)

The consolidation and integration of Arjas Steel are expected to provide a significant advantage in FY26. With all recent capacity expansions at Arjas now complete, and the benefits of consolidation anticipated from the very beginning of FY26, we are optimistic about achieving improved performance at the consolidated level during the year.

Overall, the Company is well- positioned for substantial growth in the years ahead. Strategic expansions in mining operations, alongside the acquisition of Arjas, are projected to drive notable increases in both production volumes and profitability. Additionally, Coke & Energy and Ferroalloys segments are expected to perform better as compared to their performance in the last two financial years.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

For SMIORE, Human Resource Development and Industrial Relations are anchored in a progressive & equitable philosophy that views employees as an integral part of the extended corporate family. This inclusive approach

fosters a deep sense of belonging with the Company and has helped establish a long-standing relationship between the Company and its people.

As of 31 March 2025, at the Standalone level, SMIORE employs 2,731 permanent employees, with a total workforce of more than 4,000 direct and indirect members. At the Consolidated level, including its material subsidiary Arjas Steel Private Limited, SMIORE Group employs 4,316 permanent employees, with a total workforce of more than 7,000 direct and indirect members.

Recognizing its employees as the driving force behind its success, SMIORE has introduced a wide range of thoughtful initiatives aimed at ensuring their well-being, livelihood security, and quality of life. These initiatives underscore the Companys deep-rooted commitment to its people and include:

» Food Security Scheme:

Essential food provisions are offered at 1972 price levels to safeguard employees from inflation. A standard food package for a family of 5 costs just A145, compared to an actual

cost of around %4,000, the difference being subsidized by the Company.

» Post-Retirement Benefits:

SMIORE provides a one-time post-retirement pay out to employees in accordance with its Post-Retirement Ex-Gratia Scheme.

» LPG Subsidy: SMIORE provides subsidised LPG cylinders to a large subset of its employees with a 90% subsidy to prevent them from cutting trees for fuel.

» Other Welfare Programs:

These include subsidies on clothing, gifts for weddings and festivals, medical care, sickness benefits, education and training support, and access to housing and electricity.

Through these comprehensive, employee-focused programs, SMIORE not only expresses its appreciation for the commitment of its workforce but also reinforces its holistic approach to human resource management. By prioritizing employee welfare, the Company continues to nurture a supportive and resilient work environment, which plays a crucial role in SMIOREs sustained growth and long-term employee loyalty.

OPPORTUNITIES AND THREATS

OPPORTUNITIES

1. Indias Rising Position in Global Steel Production

India has firmly established itself as the worlds second- largest steel producer, with crude steel production reaching 149 Million Tonnes in 2024.

This marks a 6% year-over-year (YoY) growth, in contrast to a 1% decline in global crude steel output, reflecting Indias rising strength in the global steel landscape.

2. Strategic Vision for Steel Industry Expansion

The Government of India aims to double the countrys steel production capacity to 300 Million Tonnes per annum by 2030. To achieve this, various policy measures were introduced in February 2024 to promote self-reliance and innovation within the steel sector.

3. Infrastructure-Driven Growth

Infrastructure continues to be a cornerstone of Indias economic development. The Union Budget 2025 allocated A11.21 lakh crore towards capital expenditure (CAPEX), amounting to 3.1% of GDP, signifying the governments strong focus on long-term infrastructure growth and industrial expansion. These investments are expected to positively influence steel demand across sectors.

4. Rising Demand from Infrastructure & Construction Sectors

Government-backed infrastructure programs, such as the National Highway Development Project (NHAI), Production Linked Incentive (PLI) scheme, and National Infrastructure Pipeline (NIP), are accelerating construction activity. Welfare initiatives like the Pradhan Mantri Awas Yojana and the Pradhan Mantri Gram Sadak Yojana are further contributing to increased steel demand, especially in rural areas.

5. Railway Modernization Boosting Demand

The expansion of Dedicated Freight Corridors (DFCs), along with development of highspeed rail (including bullet trains) and metro rail networks, is expected to significantly enhance steel consumption across India.

THREATS

1. Macroeconomic and Inflationary Challenges

Persistent inflation and uncertain macroeconomic conditions can adversely affect the steel industry by dampening global demand, increasing input costs, and impacting profit margins.

2. Geopolitical and Market Volatility

Fluctuations in raw material prices, exchange rates, and geographical tensions pose potential challenges in procurement, working capital management, and pricing stability.

3. Supply Chain Disruptions

The global steel supply chain remains vulnerable to geopolitical shocks and adverse tariff policies, which could disrupt the timely movement of raw materials and finished goods, impacting overall operations.

6. Booming Automotive Sector

Indias automobile sector is witnessing robust growth driven by rising demand for both passenger and commercial vehicles. Government support for electric vehicles (EVs), PLI incentives, and infrastructure developments provide ample opportunities for the steel and specialty alloy industries to tap into the automotive value chain.

. Stringent Regulatory Environment

Increasingly strict regulations, driven by ESG concerns, changing trade and tariff structures, and judicial interventions, pose significant compliance risks on the metals and mining industry, demanding proactive risk management and adaptability.

*

RISKS AND CONCERNS

Risks represent potential threats that can hinder performance and impact strategic and operational outcomes. At SMIORE, a robust Risk Management Framework is in place to effectively identify, assess, and mitigate such risks, while enhancing corporate governance and stakeholder confidence.

KEY RISK CATEGORIES

1. ECONOMIC RISK	2. INDUSTRY RISK
The Companys operations are closely linked to domestic and global economic conditions. Factors beyond its control, such as inflation, currency volatility, interest rate fluctuations, political instability, and liquidity constraints, can materially affect business performance.	SMIORE operates in sectors that are influenced by the cyclicality of the steel, mining, ferroalloys, and coal industries. Shifts in demand-supply dynamics in any of these sectors could materially impact the Companys performance.
3. REGULATORY RISK	4. OPERATIONAL RISK
Operating in a highly regulated environment, SMIORE faces the risk of adverse regulatory actions or non-compliance. Legislative amendments, legal disputes, environmental regulations, and public interest litigations can introduce business uncertainty.	Operational challenges - equipment failures and supply chain inefficienciescan hinder the achievement of production targets and affect efficiency.
5. TECHNOLOGY RISK	6. CYBERSECURITY RISK
The risk of outdated technology and associated productivity issues or failure to adopt latest, new technologies may affect SMIOREs competitiveness. Continuous investment and agility in upgrading systems and equipment are necessary to stay ahead.	Cybersecurity risk remains a significant concern in todays digital landscape. Companies face potential threats such as data breaches, ransomware attacks, and unauthorized access, which can lead to financial losses, operational disruptions, and reputational damage. To that end, SMIORE IT Department deploys necessary security measures to avoid such risks.
7. ACQUISITION & INTEGRATION RISK	8. LEVERAGE RISK
SMIORE recently completed the acquisition of Arjas Steel Private Limited. The success of this acquisition depends significantly on the effectiveness of integration efforts. Any delay or shortcomings in aligning systems, culture, and operations could impact projected synergies and financial outcomes.	The Company has taken significant borrowings to finance its strategic business acquisition of Arjas Steel Private Limited. Failure to fully realize the expected synergies from this acquisition, or any adverse impact on core business cash flows, could affect the Companys ability to service its debt obligations.

RISK MITIGATION MEASURES

SMIORE employs a multifaceted approach to address risks effectively. This includes accepting risks within established criteria, transferring risks to other parties through insurance, avoiding risks through hedging or adopting safer practices and policies, and actively working to reduce the likelihood or consequences of risk events.

INTERNAL CONTROL AND ADEQUACY

The Company has a well- structured internal control system with clearly defined responsibilities for its executives. A sound delegation of power exists, accompanied by a comprehensive authority and responsibility matrix, outlining financial limits for approving both revenue and capital expenditure. Moreover, the Company has implemented a segregation of duties to prevent concentration of power within a few officials.

To streamline its operations and enhance efficiency, the Company utilises a state-of-the-art Enterprise Resource Programming (ERP) system. This system enables seamless data recording for accounting, consolidation, and management information purposes, while also facilitating efficient information exchange among different locations.

The Company remains committed to aligning all its processes and controls with global best practices, continuously striving for improvements in its internal control mechanisms.

For more detailed information, please refer to the Boards Report.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may contain forwardlooking statements pertaining to the Companys objectives, estimates, expectations, or projections, as allowed by applicable laws and regulations.

However, it is important to note that actual results could differ significantly from those expressed or implied in these statements.

Several factors could influence the Companys operations, including fluctuations in raw materials prices, performance of product and application industries, changes in tax laws, interest rates, power costs, economic developments, and other factors both within the country and in the global economics domain.

While the Company strives to provide accurate and reliable information, uncertainties and unforeseen circumstances may impact its actual performance, making it essential for investors and stakeholders to exercise caution when relying on forwardlooking statements.