Talbros Automotive Components Ltd Management Discussions

GLOBAL ECONOMY

The global economy navigated a complex structural realignment during FY 2025, transitioning from a post-pandemic recovery into a more measured expansion. According to the IMFs World Economic Outlook (WEO) of April 2026, global GDP growth is projected to moderate to 3.1% in FY 2026 and 3.2% in FY 2027, down from 3.4% in FY 2025. This deceleration largely reflects the escalation of the West Asia conflict, which has renewed supply-chain pressures, elevated energy-price volatility and fostered a risk-off sentiment across global markets.

Emerging Markets and Developing Economies (EMDEs) continue to anchor global momentum, projected to expand at 3.9% in FY 2026 and 4.2% in FY 2027, with India and other Asia-Pacific economies leading this trajectory. Advanced economies, by contrast, are anticipated to chart a more subdued path of 1.8% in FY 2026 and 1.7% in FY 2027, as elevated public-debt levels and weakening industrial output constrain growth headroom, particularly across Europe.

Figure 1 - Global GDP growth projections by economic group (%)

Economic Group	CY 2025 (E)	CY 2026 (P)	CY 2027 (P)
Global Economy	3.4	3.1	3.2
Advanced Economies	1.9	1.8	1.7
Emerging Mkts & Dev. Economies	4.4	3.9	4.2

Source: IMF World Economic Outlook, April 2026.

Intensifying strategic rivalries between the United States and China have simultaneously accelerated a fundamental reconfiguration of global supply chains. As multinational corporations pursue near-shoring and friend-shoring strategies to build geopolitical resilience, India has emerged as a preferred destination for supply-chain relocation. This structural shift is accelerating the localisation of industrial and automotive manufacturing, driving sustained demand for precision-engineered components, and prompting Original Equipment Manufacturers (OEMs) to expand their domestic footprints.

While global headline inflation is projected to rise modestly to 4.4% in FY 2026 before easing to 3.7% in FY 2027, major central banks pivoted towards rate cuts in the second half of FY 2025. For the capital-intensive manufacturing sector, this monetary easing translates into a lower cost of capital, stimulating global industrial activity.

Outlook

The global macroeconomic environment across FY 2026 and FY 2027 presents a mixed yet navigable backdrop for industrial investment. Moderating growth and persistent geopolitical uncertainty, arising from the Russia-Ukraine and West Asia conflicts, alongside the gradual easing of inflationary pressures, are collectively shaping an environment in which capital allocation is becoming increasingly selective.

Source: IMF World Economic Outlook, April 2026.

INDIAN ECONOMY

India sustained its position as one of the worlds fastest-growing major economies in 2025-26. As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) on June 05, 2026, real GDP growth was estimated at 7.7% in 2025-26, up from 7.1% in 2024-25.

Manufacturing emerged as the principal driver of economic performance during the year, recording double-digit growth in the rebased estimates. Gross Fixed Capital Formation (GFCF) expanded at a healthy pace, supported by sustained public investment and a gradual recovery in private-sector capital formation.

Figure 2 - India real GDP growth (%)

Period	Real GDP Growth (%)
FY 2024-25	7.1%
FY 2025-26 (E)	7.6%
FY 2026-27 (P)	6.5%

E: Estimate; P: Projection. Source: MoSPI Second Advance Estimates, 27 February 2026.

Infrastructure and Industrial Momentum

A defining feature of 2025-26 was the Governments consistent emphasis on infrastructure-led growth. The Union Budget 2026-27 allocated capital expenditure of ?12.22 Lacs Crores, an increase of approximately 9% year-on-year, directly stimulating industrial activity across the economy.

The overall Index of Industrial Production (IIP) recorded 4.1% growth during the year. The infrastructure and construction goods sub-index significantly outperformed the aggregate, posting a 9.8% rise for the full year. This targeted growth underscores the direct impact of project execution on the broader economy, which in turn catalysed demand across the commercial mobility and ancillary manufacturing sectors.

Macroeconomic Stability

India maintained robust macroeconomic stability through disciplined fiscal and monetary management. Headline CPI inflation averaged 3.6% for 2025-26, remaining well within the RBIs target band despite global crude-oil volatility.

The RBI implemented cumulative repo-rate cuts of 100 basis points during the year, lowering borrowing costs and improving refinancing conditions for capacity expansions. The Government also contained the fiscal deficit at 4.4% of GDP, achieving measured consolidation without crowding out the critical public infrastructure spending required for long-term industrial growth.

Outlook

Indias economic outlook for 2026-27 remains highly favourable, supported by strong fundamentals, policy continuity and active private-sector participation. The countrys demographic structure characterised by a median age of approximately 28 years and rising workforce participation is directly consequential for automotive demand. The integration of Tier-2 and Tier-3 cities into formal economic activity continues to expand Indias mobility network beyond traditional metro-to-metro corridors, acting as a powerful structural growth driver for the domestic automotive component ecosystem.

Sources: RBI Monetary Policy Statement, 8 April 2026; MoSPI GDP Press Note (New Base Year 2022-23), 27 February 2026; PIB Union Budget 2026-27 Highlights; PIB IIP March 2026.

GLOBAL AUTOMOTIVE SECTOR

The global automotive sector recorded measured growth in FY 2025, supported by easing supply-chain disruptions, improved semiconductor availability and resilient market demand. Industry estimates, including data from the International Organisation of Motor Vehicle Manufacturers (OICA), indicate a modest expansion in global vehicle sales, driven primarily by replacement demand and inventory normalisation. The growth trajectory nonetheless remained uneven across regions, reflecting divergent macroeconomic conditions and shifting interest-rate environments.

Market demand continued to shift towards sport-utility vehicles (SUVs), premium segments and electrified powertrains, supporting higher value realisations across OEMs and component suppliers. Electric vehicle (EV) adoption remained a critical structural driver, with global sales expanding on the back of robust uptake in China, Europe and the United States. EV adoption in certain developed markets, however, showed signs of moderation, constrained by subsidy rationalisation, charging-infrastructure bottlenecks and affordability concerns.

The commercial vehicle (CV) segment benefited from sustained logistics demand, robust infrastructure activity and ongoing fleet-replacement cycles. Strong growth was registered across the two-wheeler and entry-level mobility segments in emerging markets in Asia, Africa and Latin America, driven by rapid urbanisation and affordability-led demand, highlighting a distinct divergence in mobility drivers between advanced and emerging economies.

Global Automotive Segment Performance in FY 2025

Segment	Sales (Units)	YoY Growth (%)
Passenger Vehicles	90-95 Mn	3-4
Commercial Vehicles	25-28 Mn	4-6
Electric Vehicles	17 Mn	20-25
Two-Wheelers (Emerging Markets)	60 Mn+	5-7

Outlook

The global automotive sector is anticipated to experience moderating growth in FY 2026, with tighter financial conditions, elevated borrowing costs, and geopolitical uncertainties continuing to impact input costs and market sentiment. Regional divergence is expected to persist, with emerging markets projected to outperform advanced economies.

Overarching structural megatrends, including electrification, premiumisation, digital integration, and regulatory-driven emission transitions, continue to reshape the industry. These shifts are expected to continue accelerating vehicle complexity and component content per unit, sustaining long-term structural demand for advanced, precision-engineered automotive components despite near-term cyclical headwinds.

INDIAN AUTOMOTIVE SECTOR

The Indian automotive sector recorded steady growth during 2025-26, underpinned by stable macroeconomic conditions, improving rural liquidity, and sustained infrastructure-led activity. Growth was driven by broad demand recovery, supply chain normalisation, and a structural shift towards higher-value vehicle segments.

A transformative catalyst for this volume expansion was the landmark implementation of the GST 2.0 rate rationalisation in September 2025. This structural tax reform significantly reduced the GST burden on mass-market mobility, slashing rates on small cars, two-wheelers (up to 350cc), and commercial vehicles from 28% to 18%, alongside the complete elimination of the compensation cess on small cars. The resulting improvement in affordability catalysed robust retail volume expansion, providing sustained tailwinds for the entire automotive supply chain.

INDIAN AUTO COMPONENT INDUSTRY

Indias automotive component industry continued its strong growth trajectory in FY2025-26, crossing ?7.6 Lacs Crores (US$85.9 Bn) in turnover, reflecting a 12.7% year-on-year increase. The industrys expansion was underpinned by robust domestic vehicle production, sustained export demand and continued investments in manufacturing capabilities, technology and localisation. Over the past five years, the sector has more than doubled in size, delivering a CAGR of approximately 17%, reinforcing Indias emergence as a preferred global manufacturing hub.

Domestic demand remained the primary growth engine. Supplies to Original Equipment Manufacturers (OEMs) grew 16.3% to ?6.63 Lacs Crores, supported by healthy production across passenger vehicles, commercial vehicles and two-wheelers. The aftermarket also demonstrated resilience, expanding 9% to ?1.08 Lacs Crores, driven by an expanding vehicle parc, longer vehicle ownership cycles and the increasing formalisation of the repair and service ecosystem.

International markets continued to present attractive opportunities for Indian manufacturers. Auto component exports rose 5% to US$24 Bn, with Europe emerging as the fastest-growing destination, while engine components, transmission systems and steering assemblies accounted for a significant share of export volumes. At the same time, imports increased 13% to US$25.4 Bn, reflecting rising demand for advanced technology products and specialised components that remain dependent on global supply chains.

The industrys performance also highlighted an evolving strategic priority. While higher imports underscore the need to strengthen domestic capabilities in advanced technologies, they also present a significant opportunity to accelerate localisation, deepen value addition and enhance Indias competitiveness across global automotive supply chains.

Looking ahead, the sectors outlook remains positive. Rising domestic demand, sustained infrastructure-led economic growth, increasing manufacturing investments, supportive policy initiatives and expanding global sourcing from India are expected to reinforce the industrys long-term growth momentum, positioning it for continued expansion across both domestic and international markets.

Industry Performance Snapshot (? Crores)

Segment	2026	2025	Growth Rate
Auto Components Supply to OEMs	662,893	570,145	16.3%
Aftermarket	108,453	99,498	9.0%
Exports	212,176	192,326	10.3%
Imports	224,287	188,412	19.0%
Industry Turnover	759,234	673,557	12.7%

Source: https://auto.economictimes.indiatimes.com/news/auto-components/indias-auto-component-industry-grows-127-to-76-lakh-crore-in-fy26/132235493

Strategic Policy Catalysts and Electrification

The Government of India continues to strengthen the competitiveness of the domestic automotive manufacturing ecosystem through the Production Linked Incentive (PLI) Scheme for the Automobile and Auto Components Industry, with a total budgetary outlay of ?25,938 Crores. The scheme aims to accelerate domestic manufacturing of Advanced Automotive Technology (AAT) products, encourage investments across the automotive value chain and enhance Indias position as a global manufacturing hub for next-generation mobility solutions.

As of November 30, 2025, the scheme had 82 approved applicants operating multiple manufacturing facilities across the country for the production of various AAT products. Incentives amounting to ?1,350.83 Crores had been disbursed to five eligible applicants, while cumulative eligible sales of ?32,879 Crores had been achieved as of September 30, 2025, against a targeted ?2.31 Lacs Crores in incremental sales over the base year 2019-20 by March 2028.

A key feature of the scheme is its emphasis on Domestic Value Addition (DVA), which incentivises manufacturers to increase local sourcing and production of high-value automotive technologies. This has accelerated the localisation of advanced automotive components and strengthened Indias position in global automotive supply chains.

From March 31, 2024 to March 31, 2026, the scheme aims to accelerate electric vehicle (EV) adoption, strengthen charging infrastructure and deepen the domestic EV manufacturing ecosystem. It also subsumes the Electric Mobility Promotion Scheme (EMPS) 2024, ensuring continuity in policy support and providing a unified framework for advancing Indias electric mobility transition.

Outlook

The auto-components industry maintained steady momentum through 2025-26, buoyed by domestic demand, aftermarket expansion and policy-led incentives. Looking ahead, navigating evolving technology architectures and reducing import dependence through accelerated localisation will remain critical strategic priorities for ensuring long-term global competitiveness.

Sources:

• https://www.fortuneindia.com/business-news/indian-auto-component-industry-logs-68-growth-at-356-lakh-crore-in-h1-fy26-as-exports-hold-firm-despite-global-pressures/129463
• https://m.economictimes.com/industry/auto/auto-components/auto-components-industry-grows-6-8-per-cent-in-apr-sep-fy26-acma/articleshow/126522584.cms
• https://www.pib.gov.in/PressReleasePage.aspx?PRID=2214039&reg=3&lang=1
• https://www.ibef.org/news/pli-scheme-achieves-major-milestones-with-rs-35-657-crore-us-4-3-billion-investment-and-rs-2-321-94-crore-us-280-million-incentives-disbursed
• https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154408
• https://pmedrive.heavydustries.gov.in/

COMPANY OVERVIEW

The first plant Talbros Automotive Components Limited established was in Faridabad in 1956. It made gaskets. Nearly seven decades later, the Company still makes gaskets from that same city and holds approximately 50% of Indias cylinder head gasket market. What began as a single-product sealing operation has grown into one of Indias most distinguished forces in automotive component manufacturing, recognised across global OEM circles for engineering innovation and manufacturing excellence that has only deepened with time.

Today, Talbros is a diversified, multi-location enterprise manufacturing gaskets and heat shields, forgings, suspension systems, anti-vibration components, and hoses across two-wheelers, passenger vehicles, commercial vehicles, off-highway equipment, and agricultural machinery. Over 30 leading manufacturers rely on Talbros as a manufacturing partner, among them Maruti, Hyundai, Kia, BMW, Volvo, Ashok Leyland, Hero, and Bajaj. The relationships span vehicle segments, geographies, and decades. They were earned through on-time delivery, zero-defect supply, and the ability to solve problems on short notice. When an automotive manufacturer qualifies a gasket supplier and receives consistent, reliable supply across years, that relationship becomes structural. Seven decades of building this kind of trust across product categories is what Talbros carries into every new partnership it enters.

STRATEGIC ALLIANCES & JOINT VENTURES

Talbros recognised early that depth in manufacturing alone would not be sufficient for global competitiveness. The Company built its international position through strategic joint ventures structured for mutual technology transfer, manufacturing scale, and long-term market access.

Marelli Talbros Chassis Systems Private Limited

50:50 Joint Venture — Marelli Suspension Systems Italy (SpA), Italy

Marelli Suspension Systems is one of Europes primary chassis component suppliers to premium automotive OEMs. The venture manufactures suspension control arms and chassis assemblies where engineering precision and manufacturing reliability carry equal weight. Talbros contributes manufacturing capability and established OEM relationships across India. Marelli contributes global suspension engineering and specification access from the worlds most demanding vehicle programmes. Both partners invest equally. Both benefit proportionally. Customers receive products meeting global standards at India-competitive costs.

Talbros Marugo Rubber Private Limited

50:50 less one share Joint Venture — Marugo Rubber Industries Limited, Japan

Marugo holds proprietary techniques for metal-to-rubber bonding and elastomer formulation, developed through decades of precision manufacturing in Japan. Talbros holds customer relationships and manufacturing scale across India. The venture produces high-performance anti-vibration components and hoses serving OEM customers globally. The partnership compresses product development timelines, protects proprietary technology for both parties, opens Indias high-growth vehicle market to Marugo, and gives Talbros access to formulation science it would have taken years to develop independently.

Lohum Talbros CarbonTech Private Limited

49:51 Joint Venture — Lohum Cleantech Private Limited

Through this venture, Talbros enters the circular economy materials market. Lohum Cleantech has developed proprietary processes for producing Recovered Carbon Black (rCB) and devulcanised rubber from used tyres and industrial scrap. OEM sustainability mandates are now contractual requirements written into procurement specifications. Talbros brings manufacturing discipline and existing OEM relationships where demand for these materials is already being formalised. The venture is slated to commence operations in current financial year.

Exclusive Technology: SANWA Lightweight Aluminium Heat Shields

Talbros secured exclusive manufacturing and distribution rights for SANWAs lightweight aluminium heat shields, engineered for hybrid powertrains and battery-electric vehicle platforms with tight thermal constraints. Once an OEM qualifies and contracts a heat shield supplier, revenue streams run for entire vehicle platform lifecycles, typically seven to ten years per generation. The exclusivity creates a durable, long-cycle revenue stream aligned directly with the industrys shift to next-generation powertrains.

ORDER BOOK & CAPACITY EXPANSION

The ?1,000 Crore Pipeline

In 2025-26, Talbros secured new multi-year orders valued at ?1,000 Crores, scheduled for execution through 2030-31. These are signed orders with delivery schedules and contractual commitments.

Order Category	Value	Geography	Strategic Context
Export Orders	?700 Crores	Europe, North America	Captures OEM supply-chain realignment towards India-based manufacturing
EV Components	?100 Crores	India & International	Early qualification with OEMs launching EV platforms in 2026–2028
Domestic Core	?200 Crores	India	Foundational customer-base continuity

Why These Orders Exist

The export orders arise from a structural shift in global supply chains. Multinational OEMs are reducing geographic concentration in component sourcing due to geopolitical risk, cost volatility, and lead-time unpredictability. India offers cost-competitive manufacturing, political stability, a skilled engineering workforce, and established OEM infrastructure. Talbros Faridabad location and multi-plant footprint offer immediate production capacity without greenfield investment risk to customers.

The EV orders reflect early qualification strategy. Talbros is securing slots with OEMs launching battery-electric platforms in 2026-2028, adapting existing capabilities in heat shields, suspension, and anti-vibration to new powertrain requirements.

Capacity Expansion Response

Current manufacturing operates at 80-85% utilisation. Meeting the ?1,000 Crores pipeline requires targeted capacity addition. Talbros is deploying ?103 Crores in capital expenditure during 2026-27:

• Specific manufacturing lines for export-specification products
• Advanced equipment for heat-shield production
• Dedicated capacity for anti-vibration components

This capital must be operational and revenue-generating by 2027-28 when export orders commence delivery. The Company has maintained uninterrupted dividend payouts for over five decades through multiple automotive cycles, and the same financial discipline governs this deployment.

Product Segment Revenue Contribution

Product Segment	Company/Entity	Revenue Contribution (? in Lacs)
Gaskets and Heat Shields	Talbros Automotive Components Limited (Standalone)	57,514.32
Forgings	Talbros Automotive Components Limited (Standalone)	29,489.84
Chassis Components	Marelli Talbros Chassis Systems Private Limited — a JV Company	34,261.60
Anti-Vibration Products and Hoses	Talbros Marugo Rubber Private Limited — a JV Company	14,673.09

SWOT ANALYSIS

Strengths

Legacy of Excellence and OEM Partnerships: Over six decades of domain expertise positions Talbros as a trusted partner to over 30 leading OEMs across the passenger vehicle, commercial vehicle, off-highway, and agricultural segments, driving sustained market leadership and high customer retention.

Strategic Global Collaborations: Highly synergistic joint ventures (MTCS and TMR) and international technology tie-ups, including the recent SANWA agreement, empower the Company to deliver globally benchmarked, technologically advanced products while rapidly scaling domestic market share.

Diversified Export Footprint: A robust and expanding export portfolio, prominently anchored in mature markets like the UK and Europe (accounting for 80% of exports), significantly reduces domestic cyclicality and bolsters the Companys global revenue profile.

State-of-the-Art Manufacturing and Quality: Multi-location, leading-edge facilities coupled with stringent global quality certifications ensure operational resilience, delivery excellence, and consistent repeat business from Tier-1 global customers.

Weaknesses

Evolving EV Product Penetration: Talbros has historically held a modest share in EV-specific components. The Company is actively closing this gap, with ?100 Crores in EV-specific orders secured and advanced heat shields already adapted for hybrid and electric architectures.

Opportunities

Global Sourcing Shifts and Export Expansion: As multinational OEMs accelerate supply-chain realignments to reduce dependence on single geographies, Talbros is well-positioned to capture market share. The recent acquisition of ?700 Crores in multi-year export orders validates the Companys capability to capitalise on this structural European and global sourcing shift.

Non-Automotive and ESG Diversification: Strategic expansion into non-automotive domains opens highly scalable revenue streams. The 49:51 joint venture with Lohum Cleantech to produce Recovered Carbon Black (rCB) and devulcanised rubber marks a technology-led entry into the sustainable circular economy, insulating the Company from traditional auto-sector cyclicality.

Rising EV Sector Growth: Surging global and domestic demand for electric and plug-in hybrid vehicles offers immense growth potential across emerging product lines, including localised battery enclosures, specialised chassis components, and advanced anti-vibration solutions.

Strategic Policy Tailwinds: Favourable government initiatives, including the PLI scheme and the PM E-DRIVE framework, offer direct financial support and structural incentives for aggressive capacity expansion, R&D investments, and advanced component localisation.

Threats

Raw Material Price Volatility: Fluctuations in core commodity prices, such as steel and rubber, can introduce near-term margin pressures. The Company mitigates this risk not through financial hedging but through disciplined, structured price pass-through mechanisms negotiated directly with its OEM partners.

Macroeconomic and Geopolitical Risks: Persistent global headwinds, including maritime logistics disruptions, regional recessions, and fluctuating European auto demand, can temporarily impact export volumes. However, the Companys thoroughly diversified product portfolio and broad geographic footprint act as a structural cushion against localised volatilities.

FINANCIAL PERFORMANCE

Key financial ratios for 2025-26 against the prior year, together with the year-on-year change. In line with disclosure requirements, movements of 25% or more are highlighted and explained.

Particulars	2025-26 (%)	2024-25 (%)	Change (%)
Inventory Turnover Ratio (times)	3.37	3.41	(1.07%)
Debtors Turnover Ratio (times)	3.30	3.63	(9.13%)
Current Ratio	1.96	1.72	14.17%
Interest Coverage Ratio	6.30	7.26	(13.24%)
Debt-Equity Ratio	0.11	0.14	(21.78%)
Net Profit Margin — incl. exceptional items	9.64	9.42	2.34%
Net Profit Margin — excl. exceptional items	9.64	9.42	2.34%
Return on Net Worth — incl. exceptional items	13.21	14.15	(6.66%)
Return on Net Worth — excl. exceptional items	13.21	14.15	(6.66%)
Operating Profit Margin	17.59	17.55	0.23%

Figures in the final column denote the percentage change versus FY2024-25; brackets denote a decline.

Figure 7 - Year-on-year movement in key financial ratios versus FY2024-25 (%)

The most significant movement was strengthening of Debt-Equity Ratio to 0.11 (from 0.14), a 21.78% reduction that underscores the Companys conservative capital structure ahead of its planned capacity expansion. The Current Ratio improved by 14.17% to 1.96, indicating healthy short-term liquidity.

Profitability remained resilient, with the Net Profit Margin edging up to 9.64%. The Operating Profit margin registered a slight increase to 17.59% (from the previous year of 17.55%) reflecting the operational efficiency.

HUMAN RESOURCES

The quality of everything Talbros manufactures traces back, in part, to the people making it. Dedication, agility, and technical expertise across the workforce have been consistent drivers of the Companys financial performance and long-term growth. Talbros invests in these qualities deliberately, through customised career progression plans and a partnership-driven human resources approach that moves well beyond conventional employment arrangements, built to foster deeper engagement, operational agility, and long-term institutional loyalty.

Beyond Employment

Holistic employee well-being and work-life balance are genuine priorities at Talbros, recognised for their direct influence on motivation and manufacturing productivity. The Company has built an environment where people find real career fulfilment, and retention flows naturally from that investment rather than from obligation.

Sharper Skills, Broader Horizons

Keeping a workforce aligned with one of the worlds fastest-evolving industries requires continuous, structured investment in learning. Talbros offers a comprehensive suite of internal and external training programmes strategically designed to sharpen leadership capabilities and advance technical skills across critical functions, including manufacturing, quality control, sales, marketing, and IT. The Company consistently encourages employees to pursue external learning opportunities, continuously broadening their knowledge base to align with global manufacturing benchmarks.

Loyalty Built on More Than Tenure

Talbros remains firmly committed to retaining top-tier talent through highly competitive compensation packages, attractive benefits, and well-defined career advancement trajectories. The Company cultivates a positive, inclusive workplace culture where employees are valued and consistently recognised for their contribution. This approach strengthens workforce loyalty, reduces cyclical turnover, and ensures seamless continuity in the execution of the Companys expanding order book.

CAUTIONARY STATEMENT

The statements in the Management Discussion and Analysis section describing organisational objectives, projections, estimates and predictions may be considered as forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the Companys strategy for growth, product development, market positioning, expenditures, and financial results, are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Companys actual results, performance or achievement may thus differ materially from those projected in such forward-looking statements. The Company assumes no responsibility to publicly amend, modify, or revise any forward-looking statement on the basis of any subsequent developments, information, or events. To avoid duplication and repetition, certain heads of information required to be disclosed in the Management Discussion and Analysis have been included in the Boards Report.