Spel Semiconductor Ltd Management Discussions

Management Discussion and Analysis Report:

The Management of your Company is pleased to submit the following:

About Semiconductor Industry:

The global semiconductor industry encompasses the design, manufacture, and sale of semiconductor chips or integrated circuits (ICs) used in various electronic devices and applications. It plays a critical role in enabling technological advancements across a wide range of sectors, including consumer electronics, telecommunications, automotive, industrial automation, healthcare, and more. Heres an overview of the global semiconductor industry market:

Market Size and Growth: The global semiconductor industry is substantial, with billions of dollars in annual revenue. According to various industry reports, the semiconductor market has experienced consistent growth over the years, driven by increasing demand for semiconductor chips in electronic devices and emerging technologies like IoT, AI, 5G, and automotive electronics.

Key Players: The semiconductor industry is highly competitive and includes a mix of established players and newer entrants. Some of the leading semiconductor companies globally include Intel Corporation, Samsung Electronics, Taiwan Semiconductor Manufacturing Company (TSMC), SK Hynix, Qualcomm, Broadcom Inc., NVIDIA Corporation, Texas Instruments, and Advanced Micro Devices (AMD), among others.

Technology Trends: Technological advancements drive innovation and growth in the semiconductor industry. Key technology trends shaping the industry include the ongoing miniaturization of semiconductor chips through advanced process nodes (such as 7nm, 5nm, and beyond), the development of specialized chips for AI, machine learning, and edge computing, the transition to 5G wireless technology, and the proliferation of IoT devices.

Market Segments: The semiconductor market comprises various product segments, including microprocessors, memory chips (DRAM, NAND flash, etc.), analog and mixed-signal ICs, logic chips, sensors, and optoelectronic components. Each segment serves different applications and industries, contributing to the overall growth of the semiconductor market.

Regional Dynamics: The semiconductor industry has a global footprint, with significant manufacturing and consumption centers in regions such as Asia-Pacific (including Taiwan, South Korea, China, and Japan), North America, and Europe. Asia-Pacific, particularly Taiwan and South Korea, is a major hub for semiconductor manufacturing, while North America houses many leading semiconductor design companies.

Regulatory and Environmental Factors: The semiconductor industry is subject to various regulations related to intellectual property rights, trade, export controls, and environmental standards. Compliance with regulations and standards, as well as managing environmental impacts associated with semiconductor manufacturing processes, are important considerations for industry players.

Supply Chain Challenges: The semiconductor industry relies on a complex global supply chain involving raw materials, equipment suppliers, foundries, assembly and test facilities, and distribution networks. Supply chain disruptions, such as shortages of critical components, geopolitical tensions, natural disasters, and trade restrictions, can impact semiconductor production and lead to market uncertainties.

Overall, the global semiconductor industry is dynamic and continuously evolving, driven by technological innovation, market demand, competitive dynamics, and macroeconomic factors. Staying abreast of industry trends, investing in R&D, maintaining supply chain resilience, and adapting to changing market conditions are essential for semiconductor companies to succeed in this highly competitive landscape.

Industry Outlook :

Global semiconductor industry is one of the most dynamic and crucial sectors in modern technology. Heres an outlook based on recent trends and projections:

Continued Growth: The semiconductor industry has been experiencing steady growth over the past few decades, driven by increasing demand for electronics in various sectors such as automotive, healthcare, telecommunications, and consumer electronics.

Technological Advancements: Technological advancements, particularly in areas like artificial intelligence (AI), Internet of Things (IoT), 5G connectivity, and autonomous vehicles, are driving the demand for more advanced semiconductor chips. This is leading to increased investments in research and development by semiconductor companies to stay competitive.

Supply Chain Challenges: The industry has faced challenges related to supply chain disruptions, including shortages of raw materials, logistics issues, and geopolitical tensions. These challenges have been exacerbated by the COVID-19 pandemic but have also highlighted the need for more resilient supply chains and localization of manufacturing.

Rise of AI and IoT: The proliferation of AI and IoT applications is driving demand for specialized semiconductor chips optimized for tasks such as machine learning, edge computing, and sensor integration. This trend is expected to continue as more industries adopt AI and IoT technologies.

Emerging Technologies: Emerging technologies like quantum computing, silicon photonics, and advanced memory solutions hold the potential to disrupt the semiconductor industry and open up new opportunities for innovation and growth.

Environmental Sustainability: Theres an increasing focus on environmental sustainability within the semiconductor industry, with companies investing in energy-efficient manufacturing processes, recycling initiatives, and reducing their carbon footprint.

Geopolitical Dynamics: Geopolitical tensions, particularly between the US and China, have led to concerns about supply chain security and intellectual property protection. This has prompted some countries to invest in domestic semiconductor production and diversify their supply chains.

Investments and Mergers: The industry is witnessing significant investments in semiconductor manufacturing capacity, particularly in advanced nodes like 7nm and below. Mergers and acquisitions are also common as companies seek to consolidate their market positions and acquire specialized technology and talent.

Overall, while the semiconductor industry faces various challenges, including supply chain disruptions and geopolitical tensions, it remains a critical enabler of technological innovation and economic growth globally. Continued advancements in technology and strategic investments will likely drive future growth and evolution in the industry.

Semiconductor Industry Growth:

The global semiconductor market size was valued at USD 611.35 billion in 2023 and is projected to grow from USD 681.05 billion in 2024 to USD 2062.59 billion by 2032, exhibiting a CAGR of 14.9% during the forecast period (2024-2032).

1. Market Drivers

The semiconductor industry is influenced by a variety of market drivers, including technological advancements, global economic conditions, industry trends, and consumer demand. Here are some of the key market drivers in the semiconductor industry:

Technological Innovation: Advances in semiconductor technology, such as smaller transistor sizes, improved performance, and increased energy efficiency, drive demand for new semiconductor products. Emerging technologies like artificial intelligence (AI), Internet of Things (IoT), 5G connectivity, and autonomous vehicles require specialized semiconductor solutions, creating opportunities for companies that can innovate in these areas.

Consumer Electronics Demand: The proliferation of smartphones, tablets, laptops, and other consumer electronic devices fuels demand for semiconductor chips. As consumers seek devices with enhanced features, longer battery life, and better performance, semiconductor manufacturers must continually innovate to meet these demands.

Data Center Growth: The expansion of cloud computing, big data analytics, and artificial intelligence applications drives demand for semiconductor chips used in data centers. Companies require high- performance processors, memory, and networking chips to support increasingly complex workloads, creating opportunities for semiconductor vendors that can provide efficient and scalable solutions.

Automotive Electronics: The automotive industry is undergoing a digital transformation, with semiconductor content per vehicle increasing as cars become more connected, electrified, and autonomous. Semiconductor chips are used in various automotive systems, including infotainment, advanced driver-assistance systems (ADAS), powertrain control, and vehicle electrification, driving demand for specialized automotive-grade semiconductor solutions.

Industrial IoT and Automation: The adoption of Industrial Internet of Things (IIoT) technologies and automation in industries such as manufacturing, healthcare, and logistics requires semiconductor chips for sensors, controllers, actuators, and communication modules. As industries digitize and automate processes to improve efficiency and productivity, demand for semiconductor solutions tailored for industrial applications grows.

Global Economic Conditions: Macroeconomic factors such as GDP growth, trade policies, currency fluctuations, and geopolitical tensions impact semiconductor demand and supply chain dynamics. Economic downturns can lead to reduced consumer spending and business investment, affecting semiconductor sales, while economic recovery and expansion typically drive increased demand for electronic devices and semiconductor chips.

Supply Chain Constraints: Semiconductor manufacturing is a complex global supply chain with dependencies on raw materials, equipment, and skilled labor. Disruptions in the supply chain, such as natural disasters, geopolitical tensions, trade restrictions, or semiconductor manufacturing process node transitions, can lead to shortages, supply constraints, and price fluctuations in the semiconductor market.

Understanding and effectively navigating these market drivers is crucial for semiconductor companies to stay competitive, innovate, and capitalize on growth opportunities in the dynamic semiconductor industry landscape.

2. Semiconductor Mergers:

There are some recent semiconductor Company mergers:

NVIDIA and Arm Holdings (Proposed): NVIDIA announced its intention to acquire Arm Holdings from SoftBank Group in September 2020 for $40 billion. However, the deal has faced significant regulatory scrutiny and is yet to be finalized.

AMD and Xilinx: In October 2020, AMD announced its acquisition of Xilinx for $35 billion. This merger brings together AMDs expertise in CPUs and GPUs with Xilinxs strengths in FPGA and adaptive SoC technology, positioning the combined entity for growth in the data center and other markets.

Marvell Technology Group and Inphi Corporation: In October 2020, Marvell announced its acquisition of Inphi Corporation for $10 billion. This deal combines Marvells networking and storage solutions with Inphis high-speed data connectivity technology, enhancing Marvells capabilities in cloud data centers and 5G infrastructure.

Analog Devices and Maxim Integrated: In July 2020, Analog Devices announced its acquisition of Maxim Integrated for $21 billion. This merger creates a powerhouse in the analog semiconductor industry, offering a broad portfolio of products for automotive, industrial, and consumer markets.

Advanced Micro-Fabrication Equipment Inc. (AMEC) and Applied Materials (Proposed): In September 2021, Applied Materials announced its intention to acquire AMEC for $9.3 billion. AMEC is a Chinese semiconductor equipment manufacturer specializing in advanced process technologies, and this acquisition would expand Applied Materials presence in China.

These recent mergers reflect the ongoing trend of consolidation in the semiconductor industry as companies seek to strengthen their competitive positions, expand their product portfolios, and capitalize on emerging market opportunities.

3. Outsourced Assembly and Test (OSAT) Industry

The Outsourced Semiconductor Assembly and Test (OSAT) industry plays a crucial role in the semiconductor supply chain by providing packaging and testing services for semiconductor companies. Heres an outlook on the OSAT industry:

Market Growth: The OSAT industry is expected to continue growing, driven by increasing demand for semiconductor packaging and testing services. As semiconductor companies focus on chip design and outsource packaging and testing to specialized OSAT providers, the demand for OSAT services is expected to rise.

Rising Demand for Advanced Packaging Technologies: The growing complexity of semiconductor chips, driven by trends such as heterogeneous integration, AI, 5G, and IoT, is driving demand for advanced packaging technologies. OSAT companies are investing in advanced packaging solutions such as fan-out wafer-level packaging (FOWLP), 2.5D/3D packaging, and system-in-package (SiP) to meet the requirements of next-generation devices.

Technological Innovation: OSAT providers are investing in research and development (R&D) to develop new packaging and testing technologies, improve process efficiency, and meet the evolving needs of semiconductor customers. Innovation in areas such as wafer-level packaging, flip-chip bonding, and advanced testing techniques is essential for maintaining competitiveness in the OSAT industry.

Diversification of Services: OSAT companies are expanding their service offerings beyond traditional packaging and testing services to provide value-added solutions such as design services, wafer probing, failure analysis, and supply chain Management. Diversification allows OSAT providers to offer comprehensive solutions and capture a larger share of the semiconductor value chain.

Focus on Sustainability: With increasing environmental and regulatory pressures, OSAT companies are prioritizing sustainability initiatives such as energy efficiency, waste reduction, and recycling. Adopting environmentally friendly manufacturing processes and materials not only reduces environmental impact but also enhances corporate reputation and customer loyalty.

Market Consolidation: The OSAT industry is witnessing consolidation as companies seek to expand their market presence, achieve economies of scale, and enhance competitiveness. Mergers and acquisitions allow OSAT providers to diversify their customer base, gain access to new technologies, and strengthen their position in the global market.

Geopolitical Factors: Geopolitical tensions and trade policies can impact the OSAT industry by affecting supply chain dynamics, trade relationships, and market access. OSAT companies need to navigate geopolitical risks, diversify their manufacturing footprint, and establish resilient supply chains to mitigate disruptions and ensure business continuity.

Overall, the OSAT industry is expected to experience steady growth driven by increasing semiconductor demand, technological advancements, diversification of services, and focus on sustainability. As semiconductor companies continue to outsource packaging and testing services to specialized OSAT providers, the OSAT industry will play an essential role in enabling innovation and driving efficiency in the semiconductor supply chain.

4. The Indian Semiconductor Industry

The Indian semiconductor industry has been experiencing significant growth and development in recent years. It plays a crucial role in the countrys electronics manufacturing sector and contributes to the advancement of various high-tech industries. Hereisanover view of the Indian semiconductor industry:

Market Size and Growth: The semiconductor industry in India has seen significant growth, driven by increasing demand for electronic devices, rising disposable incomes, and government initiatives such as Make in India and Digital India. According to industry reports, the Indian semiconductor market is expected to continue growing, driven by sectors such as consumer electronics, automotive, telecommunications, and industrial automation.

Design and R&D: India has emerged as a hub for semiconductor design and research and development (R&D) activities. Several multinational semiconductor companies have established design centers in India to leverage the countrys talent pool of engineers and scientists. Indian companies are also increasingly investing in semiconductor design capabilities and developing intellectual property (IP) for domestic and global markets.

Manufacturing: While India has made strides in semiconductor design and R&D, semiconductor manufacturing in the country is still at a nascent stage. However, there have been efforts to promote semiconductor manufacturing through initiatives such as the Production Linked Incentive (PLI) scheme for electronics manufacturing. Companies like Intel, Samsung, and others have expressed interest in setting up semiconductor manufacturing facilities in India, which could boost the domestic manufacturing ecosystem.

Ecosystem Development: The Indian government and industry stakeholders are actively working to strengthen the semiconductor ecosystem in the country. This includes investments in infrastructure, skill development initiatives, promoting research collaborations between academia and industry, and facilitating partnerships with global semiconductor companies.

Startups and Innovation: Indias vibrant startup ecosystem is also contributing to innovation in the semiconductor industry. Several startups are working on cutting-edge semiconductor technologies, including AI chips, IoT devices, and semiconductor IP cores. Government support through initiatives like Startup India and Atal Innovation Mission has encouraged entrepreneurship and innovation in the semiconductor space.

Challenges: Despite the growth opportunities, the Indian semiconductor industry faces several challenges, including infrastructure limitations, skilled labor shortages, regulatory complexities, and global competition. Addressing these challenges requires concerted efforts from industry stakeholders, government agencies, and academia to create a conducive environment for semiconductor manufacturing and innovation.

Overall, the semiconductor industry in India holds immense potential for growth, driven by the countrys large and growing market, strong engineering talent pool, and supportive government policies. With continued investments in infrastructure, talent development, and ecosystem support, India has the opportunity to further establish itself as a significant player in the global semiconductor landscape.

SPEL-Operational Performance

SPEL improved the operational efficiency and improved the Cycle time and was consistently getting repeated orders from existing Customers. SPEL also established some contacts with Prior Customers and regained their confidence and secured some orders.

SPEL maintains its relationship with all Customers in good form and putting efforts to meet their QCDS factors. SPEL extends various Value-Added Services like package design, Test H W development & drop shipment to all its Customers which help to attract additional volumes.

The communication frequency with Customers & Sales Representatives increased and SPEL uses all electronic media (e-Mails, Conference calls, Skype calls, Whatsapp calls, MS teams, Google Meetetc.) to interact with Customers

Contribution of Sales Representatives is also ensured to bring in new business & to reach Customers in case in case of any delay in shipments and unable to meet their requirements. They are advised to bring in new in new Customers & new products. Weekly calls with them are being done to ensure their activities are up to the expectations

SPEL reaches its Suppliers, Vendors and Customers to refer any new Customers if they have come across and this has provided positive results. Few new Customer inducted through this method.

Global demand for semiconductors will remain high in the coming quarters, as reflected by rising sales across a range of chip products and throughout each of the worlds major regional markets. This will have a positive effect on SPELs business.

New RFQs received from various Customers in this Quarter including new Customers. Quotations have been submitted and few of them converted into business and working on other RFQs to get business

The company is also working with Financial Institutions for Capacity Expansion and for plant modernization and also taking efforts to avail the Government of India incentives being offered to promote the Semiconductor eco-system within the Country.

Opportunities:

The semiconductor industry continues to offer numerous opportunities, driven by advancements in technology, growing demand for electronic devices, and emerging trends. Here are some key opportunities for the semiconductor industry:

The Outsourced Semiconductor Assembly and Test (OSAT) industry is well-positioned to capitalize on several opportunities in the semiconductor ecosystem. Here are some key opportunities for the OSAT industry:

Advanced Packaging Technologies: The demand for advanced packaging solutions such as fan-out wafer-level packaging (FOWLP), 2.5D/3D packaging, and system-in-package (SiP) is increasing due to the growing complexity of semiconductor chips. OSAT companies can capitalize on this trend by offering expertise in advanced packaging technologies and providing cost-effective and scalable packaging solutions to semiconductor companies.

Heterogeneous Integration: Heterogeneous integration, which involves combining different semiconductor components into a single package, is gaining traction in various applications such as AI, 5G, automotive, and IoT. OSAT providers can leverage their packaging and integration capabilities to enable heterogeneous integration solutions, addressing the need for higher performance, smaller form factors, and improved functionality in semiconductor devices.

5G and IoT: The rollout of 5G networks and the proliferation of IoT devices are driving demand for specialized semiconductor solutions. OSAT companies can play a crucial role in supporting the 5G and IoT ecosystem by providing packaging and testing services for RF, power Management, sensor, and connectivity chips. By offering tailored packaging solutions for 5G and IoT applications, OSAT providers can address the unique requirements of these markets and capture growth opportunities.

Automotive Electronics: The automotive industry is undergoing a digital transformation, with semiconductor content per vehicle increasing significantly. OSAT companies can capitalize on the growing demand for automotive semiconductor solutions by offering automotive-grade packaging and testing services. By meeting stringent quality and reliability requirements for automotive applications, OSAT providers can establish themselves as trusted partners for automotive semiconductor companies.

AI and Edge Computing: The adoption of artificial intelligence (AI) and edge computing technologies is driving demand for high-performance and energy-efficient semiconductor chips. OSAT companies can support AI and edge computing applications by offering advanced packaging solutions that enable faster processing, lower power consumption, and smaller form factors. By collaborating with semiconductor companies to develop AI and edge computing-focused packaging solutions, OSAT providers can address the evolving needs of these markets.

Customized Solutions and Value-added Services: OSAT providers can differentiate themselves by offering customized packaging solutions and value-added services tailored to the specific requirements of semiconductor customers. This may include design services, wafer probing, failure analysis, supply chain Management, and system-level integration. By providing comprehensive solutions and adding value throughout the semiconductor supply chain, OSAT companies can strengthen customer relationships and capture higher-margin opportunities.

Overall, the OSAT industry has numerous opportunities to drive growth and innovation by leveraging advanced packaging technologies, addressing emerging market trends, and providing value-added services to semiconductor customers. By staying agile, investing in technology development, and collaborating closely with semiconductor companies, OSAT providers can position themselves for success in the dynamic and competitive semiconductor ecosystem.

Here are some key Opportunities for the Company:

1. Government of India has announced some special incentives for Assembly, Test, Mark &Packaging units for providing Capex subsidy up to 50% with a minimum threshold investment ofRs.50Crs. The Tamilnadu State Government has also announced special incentive of 50% of what is offered as incentive by Central Government ie) 25% of Project cost. Your Company is exploring sourcing funds with Banks and Financial Institutions to makeuse of this Opportunity.

2. Due to US-China trade conflicts most Companies are looking for alternate Manufacturing sources for Chinese OSATS and this could be of immense help.

Threats :

While the Outsourced Semiconductor Assembly and Test (OSAT) industry presents promising opportunities, it also faces several threats that could impact its growth and sustainability. Here are some key threats for the OSAT industry:

Competition from Integrated Device Manufacturers (IDMs): Integrated Device Manufacturers, or IDMs, are semiconductor companies that handle both chip design and manufacturing processes in-house. As some IDMs expand their capabilities to include packaging and testing services, they may pose a competitive threat to OSAT companies by offering integrated solutions and potentially undercutting prices.

Technological Disruptions: Rapid technological advancements in semiconductor manufacturing and packaging technologies pose a threat to OSAT companies that fail to keep pace with innovation. New packaging techniques, materials, and equipment could render existing OSAT capabilities obsolete, leading to loss of market share or competitive disadvantage. The rapid pace of technological advancements in the semiconductor industry means that products and technologies can quickly become outdated. Companies must continually invest in research and development (R&D) to stay competitive and ensure their offerings remain relevant in the market. Failure to do so can lead to the risk of being left behind.

Intellectual Property (IP) Risks: OSAT companies rely heavily on semiconductor design IP and proprietary technologies licensed from semiconductor companies. However, disputes over IP infringement or challenges related to protecting sensitive design IP could disrupt business operations and result in legal liabilities for OSAT providers.

Supply Chain Vulnerabilities: The OSAT industry is highly dependent on a globalized supply chain, with dependencies on raw materials, equipment suppliers, and foundries. Disruptions in the supply chain due to natural disasters, geopolitical tensions, trade restrictions, or pandemics could lead to component shortages, production delays, and increased costs for OSAT companies. The semiconductor industry is influenced by global economic conditions. Periods of economic downturns, recessions, or fluctuations in consumer demand can impact semiconductor sales and revenue. Companies need to be prepared to navigate through economic uncertainties and adapt their strategies accordingly.

Margin Pressures: Intense competition and pricing pressure in the semiconductor industry could impact the profitability of OSAT companies. Semiconductor customers often seek cost reductions and negotiate lower prices for packaging and testing services, squeezing margins for OSAT providers and limiting their ability to invest in R&D or expand operations.

Regulatory Compliance: OSAT companies must comply with various regulations and standards related to environmental, health, safety, and intellectual property rights. Non-compliance or failure to meet regulatory requirements could result in fines, legal penalties, reputational damage, and loss of business opportunities. Growing concerns about environmental sustainability and the use of hazardous materials in the semiconductor industry have led to increased regulations. Compliance with environmental standards, such as restrictions on certain substances, waste Management, and energy efficiency, can pose challenges for semiconductor manufacturers.

Geopolitical Risks: Geopolitical tensions, trade disputes, and changes in government policies can impact the OSAT industry by disrupting international trade, imposing tariffs, or restricting market access. OSAT companies with global operations may face challenges related to currency fluctuations, export controls, and compliance with trade regulations.

Customer Concentration: Dependence on a small number of major semiconductor customers exposes OSAT companies to risks associated with customer concentration. Loss of a key customer or a significant reduction in orders from major customers could have a detrimental impact on the financial performance and viability of OSAT providers.

Competitor Pressure: The semiconductor industry is highly competitive, with numerous global players vying for market share. Companies face intense pressure to innovate, reduce costs, and improve efficiency to stay ahead of their competitors. Failure to keep up with industry trends and competition can lead to market share erosion and financial setbacks.

Addressing these threats requires OSAT companies to adopt proactive strategies such as diversifying their customer base, investing in technology innovation, ensuring supply chain resilience, mitigating IP risks, and maintaining compliance with regulations. By actively monitoring market dynamics and implementing risk mitigation measures, OSAT providers can navigate challenges and sustain long-term success in the semiconductor ecosystem.

Threats to the Company:

1. Further to the incentives announced by the India Semiconductor Mission for Assembly, Test, Mark & Packaging units for providing Capex subsidy up to 50% with a minimum threshold investment of Rs.50Crs,few Companies have registered themselves for availing benefits out of this scheme. Hence your Company will have Competitors in near future within India.

2. Government of India has withdrawn the export incentives offered to the Company.Your Company is striving to reinstate the above benefits by taking up the case with appropriate government bodies in India.

3. Rising Employees costs and Energy costs & Pricing pressure from Customers

4. Orders slowdown due to Global inventory correction process with many Component suppliers.

Financial Performance

The financial performance is covered in the Directors Report and can be referred there.

Financial Ratios:

Financial Ratios

Financial Ratios	31-Mar-24	31-Mar-23
Current Ratio (in times)	1.01	1.2
Debt-Equity Ratio (in times)	0.84	0.51
Debt Service Coverage Ratio (in times)	(2.97)	0.28
Return on Equity Ratio (in %)	(50.75)	(6.24)
Inventory turnover ratio (in times)	0.27	0.22
Trade Receivables turnover ratio (in times)	7.93	7.68
Trade payables turnover ratio (in times)	0.67	0.56
Net capital turnover ratio (in times)	11.64	0.78
Net profit ratio (in %)	(139.85)	(27.67)

Analaysis of Financial Ratios : (FY2023-24)

a. The Net loss and drop in Return on Equity is due to Old inventory write off

b. Increase in Debt-equity and Debt service coverage is due to additional Rs.1.5Cr availed from the bank and Rs.1Cr Unsecured loan

c. Net Capital turn over increase is due to increase in Sales turnover irrespective of drop in Working Capital due to stock write off

Internal Control Systems and their Adequacy

The CEO and CFO certification provided in the Annual Report discusses the adequacy of our internal control systems and procedures.

Information Technology

The Company has taken necessary precautions towards ensuring safe operation of Internal serversand to prevent from any forms of Cyber-attacks.

Material Developments in Human Resources/Industrial Relations Front, including number of People Employed

Your Company values its human resource as the most significant asset and the key focus is to attract, retain and develop talent as a resource. Your Company provides a congenial workingatmosphere which will foster creative thinking. As part of manpower development and to enhance operational efficiency, training programmes have been organised for employees at all levels, wherever necessary.

The HR programmes of the Company focus on building capabilities and engaging employees through various initiatives to help the organisation consolidate and achieve sustainable future growth for the business. The details of human resource development measures taken by the Company are also covered in the Directors Report and can be referred to in the said Report.

The total strength of the Company as on 31st March, 2024: 103 Note-Risks and Concerns are covered under Opportunities and Threats.

	By Order of the Board
	For SPEL Semiconductor Limited
	Sd/-	Sd/-
Date:29.05.2024	Swaminathan	P. Balamurugan
Place: Chennai	Chandramohan	Whole-Time Director
	Director
	DIN: 00052571	DIN:07480881