Time Technoplast Ltd Management Discussions

? OVERVIEW OF ECONOMY

> Global Economy

The 2024 World Economic Outlook (WEO) from the IMF, projects global growth to remain steady at approximately 3.2 percent for both 2024 and 2025. Median headline inflation is expected to decrease from 2.8 percent during 2024 to 2.4 percent in 2025, suggesting a gradual stabilization of price levels. Furthermore, global inflation is anticipated to decline from 6.8 percent in 2023 to 5.9 percent in 2024, and further to 4.5 percent in 2025.

IMF has noted a slowdown in global disinflation momentum, suggesting a higher likelihood of extended elevated interest rates, which could increase external, fiscal, and financial risks. Advanced economies are projected to see a slight increase in growth, rising from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025. Meanwhile, growth in emerging markets and developing economies is expected to moderate slightly, from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025.

Fiscal policies may need to focus on adjusting for inflation, addressing rising debt pressures, and implementing structural reforms to enhance human capital and leverage technological advancements. These measures are crucial for driving future output and productivity growth. Additionally, supporting vulnerable populations and improving supply-side conditions will be essential for achieving fiscal consolidation and smoother inflation adjustments toward targeted levels.Bottom of Form

> Indian Economy

Indias economic outlook remains robust, with projections indicating real GDP growth between 6.5-7 percent for FY 2024-25. The economy has emerged swiftly from the blows of the pandemic as real GDP in FY24 was up 20% as compared to FY20. The Reserve Bank of India (RBI) has revised its growth forecast upward for 2024/25 to 7.2 percent, citing a resurgence in private consumption, robust investment, and increased exports. Similarly, the IMF has increased Indias growth forecast to 7 percent for 2024-2025, up from 6.8 percent, aligning with updates from other rating agencies and economists. This growth trajectory underscores Indias position as a leading alternative to China for global supply chain diversification, particularly amid strained US-China relations.

Aa per World Economic Outlook (WEO) report issued by IMF, Indias growth forecast is strongly maintained at 6.8 percent in 2024 and 6.5 percent in 2025, driven by sustained domestic demand and a growing working-age population. The countrys ability to mitigate the effects of the global economic slowdown through robust government capital expenditure, resilient domestic demand, and other economic buffers has reinforced its economic resilience. This has can be showcased as, India has successfully managed to keep retail inflation at 5.4% in FY 2023-24, the lowest level since the COVID-19 pandemic.

Indias strong fundamentals, including healthy balance sheets for banks and corporates, fiscal consolidation efforts, manageable external balances, and substantial foreign exchange reserves, contribute to a positive economic outlook. These factors collectively support Indias continued economic momentum and its role as a key player in the global economy.

? END USER INDUSTRY OVERVIEW

> Plastic Industry

The global plastic market, valued at US$ 624.8 billion in 2023, is anticipated to grow at a CAGR of 4.2% from 2024 to 2030, driven by the escalating substitution of materials such as glass, metals, wood, and natural rubber with plastics. The market landscape is heavily regulated, featuring a multitude of players offering various plastic resins, including polystyrene (PS), polyethylene (PE), acrylonitrile butadiene styrene (ABS), polypropylene (PP), among others.

The industry facilitates around 4 million jobs and encompasses around 30,000 processing units across India. The Indian government aims to elevate the economic contribution of the plastic industry from 3 lakh crore (US$ 37.8 billion) to 10 lakh crore (US$ 126 billion) within four to five years, underscoring its strategic focus on expanding plastic exports. The market is segmented into several types, with polyethylene and polypropylene being the primary categories.

Plastic consumption has increased as regulations aim to propel its substitution for metals like aluminum and steel in automotive component manufacturing, to enhance fuel efficiency and decrease carbon emissions Moreover, recent FDI in domestic construction sectors, facilitated by relaxed FDI norms and improved infrastructure requirements, contributes significantly to market expansion. Emerging markets such as Brazil, China, India, and Mexico are pivotal in boosting demand for plastics through burgeoning construction activities.

Amid the growing adoption of ESG (Environmental, Social, and Governance) norms, the structural dynamics of Indias economy reinforce the indispensability of plastics in everyday applications, highlighting the sectors pivotal role in the nations economic framework and export ambitions. On the other hand, regulations pertaining to the use of plastic products could potentially dampen market growth rates. Government policies responding to the environmental impact of single-use plastics pose challenges. This is however tackled with packaging industrys increasing demand for plastics. Furthermore, the need for multi-use and sustainable plastic has brought in technological innovations into the industry which are expected to continue in the longer run as well.

> Packaging Industry

The global Packaging Market size is estimated to be USD 1.14 trillion in 2024, projected to reach USD 1.38 trillion by 2029, growing at a CAGR of 3.89% (2024-2029). The India Packaging Market size is estimated at USD 84.37 billion in 2024, and is expected to reach USD 142.56 billion by 2029, growing at a CAGR of 11.06% (2024-2029). Growth in this sector is primarily driven by factors like growing pharmaceutical, food processing, manufacturing industry, FMCG, healthcare sector and ancillary in the emerging economies like China, India, Brazil, Russia and few other East European countries. Plastic Packaging is expected to have a significant market share, with PET and HDPE being the preferred materials for manufacturing bottles and jars.

The role of plastics in industries, including packaging, automotive, and manufacturing, is crucial due to their distinctive properties which have prominence. The demand is expected to escalate rapidly, due to increase in requirements for recycled plastics and bioplastics. Similar to the plastic industry, the packaging market is witnessing several trends with crucial sections of the industry being the imperative forces of the growth. Paper packaging products are one such niche that is benefiting the most out of the increasing trend of online retail environmental regulations on non-biodegradable packaging solutions. Owing to government regulations, the consumption of recycled PET as flexible packaging is replacing traditional packaging methods.

According to the Flexible Packaging Association, flexible packaging is mainly used for food, which accounts for more than 60% of the total market. Since it could incorporate new solutions for various packaging issues, the flexible packaging industry is experiencing robust growth. In addition, with the rising consumption of sweets and confectionery, several flexible plastic packaging providers are offering packaging solutions, specifically catering to this demand, and are further driving their sales and revenues.

> Rigid Packaging

The Rigid Plastic Packaging Market size is estimated at USD 253.36 billion in 2024, and is expected to reach USD 284.60 billion by 2029, growing at a CAGR of 2.35% during the forecast period (2024-2029). Rigid packaging constitutes usage of materials such as rigid plastics, metals and glass for packaging applications. The demand for the market is largely driven by an increase in demand for consumer goods and improving packaging recycling rates.

The market is segmented based on end-user industries and has been classified into different sectors like pharmaceuticals, food & beverages and others. The growth in these sectors is mainly driven by advancements in research and technological innovations in order to minimize and optimize packaging costs. Geographically, the Asia Pacific region is the market leader in this industry, largely by induced demand owing to an increasing level of income.

The Indian Rigid Packaging industry is expected to grow at CAGR 9.36% over the next 5 years. This demand is subsequently driven by a shift from traditional packaging types to rigid plastic packaging that is light weight with low comparative cost, flexible design and easily recyclable. As India moves towards becoming a manufacturing hub, its exports are expected to increase as well and the rigid packaging industry is in prime position to take advantage of the same.

> Chemical Industry

Indias chemical sector being the 6^th largest producer of chemicals in the world and 3^rd in Asia, contributes 7% to Indias GDP which is currently estimated to be worth US$ 278.1 billion in 2024 and is anticipated to cross the US$ 300 billion by 2025 with an estimated CAGR of 8.1%.

The Global chemical industry stands strong US$ 5.11 trillion in 2023 and is expected to grow to US$ 5.57 trillion in 2024 with a CAGR of 9%. This is further anticipated to rise to US$ 7.78 trillion by 2028 with a CAGR of 8.7% (2024-2028).

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 1618% of the world production of dyestuffs and dye intermediates. Indian colorants industry has emerged as a key player with a global market share of ~15%. The countrys chemicals industry is de-licensed, except for few hazardous chemicals. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at global level (excluding pharmaceuticals).

> Infrastructure - Pipes Segment

The global plastic pipe market size was estimated at US$ 56.55 billion in 2023 and is projected to grow at a CAGR of 6.8% from 2024 to 2030. The rising demand for plastic pipes across several applications including sewage systems, water supply, drainage, and irrigation, owing to the rapid urbanization and industrializations across several economies. The Indian plastic pipe market is anticipated to grow at a CAGR of 10.3% from 2022 to 2027, reaching an estimated $10.9 billion. The expansion of government infrastructure investment, rising home and business building, industrial production, the irrigation sector, and the replacement of deteriorating pipes are the main growth drivers for this market. PVC is the third largest produced synthetic polymer, as it is a durable and cost-effective substitute for metal pipes in several segments. This is mainly due to its lightweight, resistance to corrosion and super tensile strength.

Despite the effects of the pandemic, the polymer pipes sector has been performing well in the new normal India. The demand for metal to polymer pipes has significantly changed in a number of industries, including plumbing and piping applications in the construction industry. The use of CPVC pipes in the hot- and cold-water plumbing industry has increased significantly during the past several years. With government initiatives like "Har Ghar Jal Yojna" and "Jal Jeevan Mission", the demand for pipes through these channels will increase.

> Auto Component Industry

India has become the fastest-growing economy in the world in recent years. This fast growth, coupled with rising incomes, a boost in infrastructure spending and increased manufacturing incentives, has accelerated the automobile industry. Significant demand for automobiles also led to the emergence of more original equipment and auto components manufacturers. As a result, India developed expertise in automobiles and auto components, which helped boost international demand for Indian automobiles and auto components. Hence, the Indian automobile industry has a considerable impact on the auto component industry.

Indias auto component industry is an important sector driving macroeconomic growth and employment. The industry comprises players of all sizes, from large corporations to micro entities, spread across clusters throughout the country. The auto components industry accounted for 2.3% of Indias GDP and provided direct employment to 1.5 million people. By 2026, the automobile component sector will contribute 5-7% of Indias GDP. The Automotive Mission Plan (2016-26) projects to provide direct incremental employment to 3.2 million by 2026. Due to the high development prospects in all vehicle industry segments, driven by increased domestic demand the auto component industry revenue is seen growing 5-8 per cent in FY 2024, according to a report. The industry is expected to touch a revenue figure of over 2.5 lakh crore on increased premiumisation of vehicles, focus on localisation and improved export and regulatory norms. The industry is expected to stand at US$ 200 billion by FY26.

> Energy Storage Device

The global market for battery energy storage device Industry is expected to grow at a CAGR of 27% while the Indian battery storage systems market is forecasted to grow by a CAGR of 10.5% (2022- 2027). Grid modernization along with an increase in penetration of lithium-ion batteries in the renewable energy sector have backed this demand.

A surge in the number of rural electrification projects and an increase in the need for constant power supply have offset the requirement of high capital expenditure required for installing these storage systems. The Indian market on the other hand is expected to be dominated by the Lithium-ion Battery segment owing to the high demand in renewable power projects. The country has set a target to reach around 500 GW of renewable capacity by 2030 and this means that these renewable projects create significant opportunities for the market. Several government projects like the Ramagiri Solar-Wind-Hybrid project owned by the Solar Energy Corporation of India (SECI) are the main drivers of this demand.

> Liquefied petroleum gas (LPG)

LPG, widely used in over 70% households of India, experienced some pressure owing to price hikes, the historic Pradhan

Mantri Ujjawal Yojana (PMUY) initiative was completed in 2021, and as on 1.1.2024, the PMUY scheme (Ujjwala 1.0, 2.0 & extended) has covered around 10.01 crore beneficiaries, since its launch in May 2016. As full LPG penetration in all states, the monthly LPG demand in the residential/commercial segment has increased. The global LPG (Liquefied Petroleum Gas) market was valued at US$ 142.83 billion in 2023 and is projected to grow from US$ 151.96 billion in 2024 to US$ 281.29 billion by 2032, exhibiting a CAGR of 7.33% (2023-2032).

Due to enhanced attention towards reduction of GHG emissions and sustainable energy, the application of LPG has become global. The government has shown support in the form of initiatives and subsidies to increase the adoption of LPG. These initiatives target subsidies more effectively through their "PAHAL" scheme, which puts subsidies directly into consumers bank account who are entitled to subsidies. As a result, LPG may become an attractive alternative fuel to an increasing number of applications.

> Compressed Natural Gas (CNG)

The compressed natural gas (CNG) market is anticipated to grow by US$ 19.77 bn, accelerating at a CAGR 7.51% (2024-2028). Natural gas is an environment friendly conventional fuel available today which can play a critical role in Indias transition towards a low carbon clean fuel-based economy. The government is taking several initiatives to usher a gas-based economy. One of the key initiatives in this regard has been a rapid expansion of gas infrastructure including natural gas grid, liquefied natural gas (LNG) import terminals and city gas distribution (CGD) network in the country. The upcoming infrastructure will facilitate in creating robust gas ecosystem with multi-fold increase in investment as well as employment opportunities across skilled, semi-skilled and un-skilled areas. Expansion of large infrastructure projects will also ramp up "Make in India" opportunities for manufacturing sector across India, in-tern boosting the state economy.

? BUSINESS OVERVIEW

Time Technoplast Ltd (Time Tech) is a multinational conglomerate with operations in 11 countries, including Bahrain, Egypt, Indonesia, India, Malaysia, U.A.E, Taiwan, Thailand, Vietnam, Saudi Arabia, and the USA. As a leading manufacturer of polymer products, Time Techs portfolio encompasses a wide range of technically driven, innovative solutions catering to diverse industry segments. Since its inception in 1992, Time Tech has differentiated itself through a strong focus on research and development, futuristic product design, and exceptional customer service. The Company has achieved numerous milestones such as the IPO and getting listed on NSE & BSE in 2007, and the first Company in India to launch PE Drums to replace Steel Drums, Intermediate Bulk Containers (IBC) of 1,000 Litre capacity, Plastic Fuel Tanks for Commercial Vehicles, Lithium Batteries, Spray Suppression Systems (3S), and Composite Gas Cylinders (LPG / CNG / Oxygen / Hydrogen). Time Techs commitment to innovation, quality, and customer satisfaction has driven its progressive journey and success.

> Products

Time groups portfolio consists of technology-driven innovative products catering to growing industry segments like Industrial packaging solutions, Lifestyle products, Material handling solutions, Composite cylinders, Infrastructure/ Construction related products, and Automotive components. The Group has over 14 recognised brands and works with more than 900 institutional customers globally.

FY24 Revenues by product category (% of value)

> Established Products

The established products portfolio constitutes 75% (P.Y. 77%) of total revenue in fiscal 24. This product basket is broadly divided into 3 categories: Industrial Packaging (Drums, Jerry cans & Pails), Infrastructure (PE Pipes and Energy Storage Devices), Technical & Lifestyle (Turf & Matting, Disposable Bins & Auto Components). The Company generated 3,725 Cr from this segment in fiscal 24 as against 3,321 Cr in the previous year. The EBITDA margin for this segment stood at 12.8%.

* Industrial packaging

Time Group specializes in manufacturing polymer drums, barrels, jerry cans, and pails to meet diverse packaging needs. Renowned as the leading global producer of large-scale plastic drums, the Group utilizes advanced polymer processing technologies such as blow molding, injection molding, and extrusion molding. These methods ensure a seamless production process without welds or joints, delivering a wide array of products.

Each item is equipped with specialized stoppers, plugs, bungs, inserts, caps, and handles tailored to precise design specifications and industry requirements. The Group serves a broad spectrum of sectors including chemicals, paints, pigments, food and beverage, petrochemicals, industrial coatings, agriculture, pharmaceuticals, minerals, automotive, and construction materials.

Looking ahead, the Group foresees robust demand for industrial packaging products, particularly from the chemical industry. This growth is driven by the relocation of chemical companies from China and an increase in chemical exports. Furthermore, the Group expects significant opportunities from ongoing infrastructure projects initiated by governments and planned expansions within the chemical sector in India.

* Pipes (Infrastructure)

With good orders in hand, new product launches and various central government infrastructure schemes, the management is highly optimistic about this segment. Various central government infrastructure schemes like Nal Se Jal- the last mile connectivity for drinking water, Smart City mission, and affordable housing etc. provides substantial business potential over the medium term.

* Technical and Lifestyle

This segment includes three divisions: Turf & Matting, Disposal bins and Auto components. Time group is one of the leading players in the matting segment and has been delivering value for money solutions across industries and customers. These Lifestyle Products are not only functional but also add to the aesthetics. Disposal Bins - a necessity for hygienic life and made from recyclable material, adhere to stringent international quality standards. Its superior design ensures easy handling. The group supply several products to automobile industry including rain flap, fuel tanks and air ducts.

* Value Added Products

The value added products which includes Intermediate Bulk Container (IBC), Composite Cylinder and multi-layer multi oriented X cross laminate film (MOX Film), contributed 25% (P.Y. 24%) towards total revenue in fiscal 2024 and generated 1,282 Cr as compared to 972 Cr in previous year.

* Intermediate bulk container (IBC)

Intermediate Bulk Containers (IBCs) are designed to perform exceptionally well even in demanding conditions and rough handling situations. They are estimated to cut storage and transportation costs by up to 75% compared to conventional drums. As the worlds third-largest manufacturer of IBCs, the Group excels in delivering these cost-effective and efficient storage solutions.

The global chemical industry is experiencing increasing demand for HDPE-bottled Rigid IBCs due to their outstanding chemical resistance. As chemical formulations advance, the market for IBCs is growing swiftly. Additionally, the use of IBCs for storing and transporting corrosive chemicals is rising, thanks to their resistance to environmental stress cracking. The market share for Composite IBCs is anticipated to grow significantly, fuelled by their durability and efficient handling capabilities.

? Composite Cylinders

Composite cylinders offer a superior alternative to traditional metal cylinders due to their lightweight, rust and corrosion resistance, UV durability, and attractive appearance. Crucially, they are also completely explosion-proof. The Time Group is the worlds second-largest manufacturer of composite cylinders, serving a global market.

With operations in over 40 countries and approvals to supply in more than 50 nations, the Group is expanding its market presence with its flagship LiteSafe LPG composite cylinders, which range from 2KG to 22KG. These cylinders provide significant benefits over metal ones, including improved safety, ease of use, and enhanced corrosion resistance, driving global demand for LPG cylinders.

In India, the Group supplies composite cylinders to private LPG distributors and is actively working to increase market penetration. A notable achievement occurred in March 2022 when the Company secured a major order for over 0.75 million Type-IV LPG composite cylinders from Indian Oil Corporation Limited (IOCL), with ongoing supplies and additional orders expected.

Looking ahead, the Time Group aims to reinforce its leadership position and become the preferred global supplier by focusing on efficient mass production and cost reduction. Key strategies include high-capacity utilization, stable production, and cost- effective operations, with plans to expand further in India and other international markets.

In 2024, sales of LPG composite cylinders reached approximately 210 Crores, supported by exports and new market ventures in Romania, Burundi, and Congo, in addition to its presence in 42 countries. Concurrently, the CNG cylinders and cascades segment generated sales of about 308 Crores during the same period.

The Group has also made significant advances in product innovation, including securing approvals for Type IV composite cylinders for hydrogen from PESO and introducing new products such as CNG 350-Litre cylinders, Type-4 water heaters, and PFT 35 Litre cylinders for TATA Motors. Enhancements in manufacturing capabilities include the addition of a robotic winding machine for CNG cylinders and a new ball valve production line capable of 35,000 units per month. These developments highlight the Groups commitment to innovation and operational excellence in serving diverse global markets.

? MOX Films

The MOX film (Multi-layer Multi axis Oriented Cross Laminated Film) launched in FY17 under the brand Techpaulin has received good response from the industry. The Group has over 25 super distributors across the country. The product is now available across India with a robust network of 450 dealers and 22 distributors nationwide. The Group has implemented various schemes to boost sales and product awareness, receiving a positive response from customer and we are continuously finding new and innovative applications of the MOX films and are launching new products in the market like Truck covers, Pond Liners, Mulching Film & Poly house Films. In addition, greater focus on new export markets of Thailand, Malaysia, Germany, UK & USA.

> Overseas Business

Time group has manufacturing presence in 10 countries apart from India that cater to industrial packaging segment. The overseas business contributed 1,678 Cr to the overall top line of the Group during fiscal 2024, which translated to 33% (P.Y. 34%) of total revenues. EBITDA margin for domestic operations is about 14.4% while the same in overseas in 13.4%.

> Restructuring & Consolidation of Overseas Business

Due Diligence process is ongoing for disinvestment of 50% business in Middle East on Debt & Cash free basis, for a valuation of around US$ 25 million. The geographies agreed for disinvestment contributes 7.5% to the consolidated revenue. We estimate to complete this disinvestment transaction by June 2024 including signing of the SPA, unless mutually extended by both parties. The proceeds of this disinvestment will be used for debt reduction & benefit to shareholders.

? REVIEW OF FINANCIAL PERFORMANCE FOR THE YEAR

Consolidated performance for the year ended March 31, 2024 ^ Million)

	FY 24	FY 23
Total Income	50,066	42,932
Total expenses	43,016	37,123
EBITDA	7,050	5,809
Finance Cost	1,014	1,052
Depreciation	1,726	1,709
PAT	3,105	2,191

Key Ratios (Consolidated)

Particulars	FY 24	FY 23
1 EBITDA to Sales	14.1%	13.5%
2 PAT to Sales	6.2%	5.1%
3 Total Debt to Equity	0.29	0.36
4 Net Debt to EBITDA	0.84	1.22
5 Return on Capital Employed	16.4%	13.5%

Standalone performance for the year ended March 31, 2024 ( Million)

	FY24	FY 23
Total Income	26,470	22,450
Cost of material consumed	19,037	16,186
Other expenses	3,622	3,150
EBITDA	3,812	3,113
Finance Cost	578	561
Depreciation	1,084	1,058
PAT	1,595	1,112

? CAPITAL EXPENDITURE

Total capital expenditure incurred for the year was 1,812 million. Capacity expansion, re-engineering and automation of established products accounted for 767 million while capital expenditure towards value added products was 1,045 million. Time group continues to focus on Brownfield expansion in India and overseas for future growth and leveraging of existing infrastructures.

? Firm Footsteps towards Sustainable Growth

Since our founding, we have remained committed to sustainable product development and manufacturing practices, establishing ourselves as a leader in polymer-based innovations. At Time Technoplast, innovation is central to our operations, driving our ongoing investment in research and development. Our team of over 30 experts is dedicated to improving cost efficiency in our existing products and processes while expanding our product lineup through continual innovation and technological advancement.

Our R&D efforts are strategically targeted at areas with substantial growth potential. We use a systematic approach to product selection, rigorously evaluating technical and business feasibility along with valuable customer feedback. This method has led to the successful launch of pioneering products such as Antistatic Drums and IBCs, Ball/Butterfly Valves for IBCs, Composite

Cylinders, Plastic Fuel Tanks, and De-air Distribution Tanks. Our recent innovations, including MOX film and advanced multilayer PE pipes for power and communication cable ducts with silicon in-lining, further highlight our dedication to providing cutting-edge solutions that adapt to the evolving market landscape.

? KEY RISKS

> Raw material availability

We have not faced significant challenges in sourcing our primary raw materials. PE granules, which are produced from oil and natural gas, are essential across all our business divisions. Most of these granules are imported from neighbouring countries, with the rest obtained from local manufacturers. Our procurement strategy includes fulfilling most of our needs through open market purchases or both short-term and long-term supply contracts. As the global market for recycled plastics evolves, we anticipate increasing demand for virgin polyethylene. Countries such as China, India, Vietnam, Indonesia, the United States, and those in Europe are significantly investing in recycling, which is expected to sustain overall demand in the long term.

> Commodity price risk

The Company is exposed to fluctuations in polymer prices which are determined by the supply and demand in the Indian and international markets. Since polymers are crude derivatives, the prices also tend to follow crude prices which are volatile, and this volatility influences Companys income and net profit.

> Foreign exchange and other risk

Operating in international markets presents us with risks that differ from those in India. These include currency fluctuations, import/export regulations, customs procedures, and changes in government policies and regulations often found in developing countries. Additionally, we face challenges such as labour unrest, geopolitical instability, conflict, terrorism, defaults in certain jurisdictions, and hyperinflation. Payments from our overseas subsidiaries can be impacted by restrictions on currency conversion to US dollars, changes in tax policies, and other trade compliance regulations.

> HUMAN RESOURCES OVERVIEW

Continuous learning is a core aspect of our company culture. Every employee, regardless of their position, recognizes the importance of ongoing development and skill enhancement. A commitment to learning is a fundamental requirement for being part of our organization. We aim to support and inspire our employees by offering attractive and feasible career opportunities that allow them to develop their skills over time, adapting to economic changes and a dynamic environment.

Managing industrial relations is the direct responsibility of local management. This will be addressed first at the site level (factories, warehouses) and, if necessary, escalated to the regional or national level, in line with local laws and practices.

> ENVIRONMENT HEALTH AND SAFETY

TIME TECHNOPLAST LTD places a high priority on the health and safety of everyone involved in its operations, as well as on maintaining a sustainable operating environment. Employees at all levels work together to improve environmental, occupational health, and safety standards, aiming to exceed established benchmarks. The companys EHS policy not only adheres to all relevant legal requirements but also focuses on motivating employees, as well as on their learning and training. External audits are performed to assess the effectiveness of the EHS policy and initiatives, and the recommendations from these audits are considered for future improvements.

> INTERNAL CONTROLS AND THEIR ADEQUACY

The Company has established internal control systems that are appropriate for its size and nature. Experienced personnel are strategically placed within the organization to oversee these controls and ensure compliance with relevant standards.

Internal control is a crucial aspect of the Companys operations, aimed at achieving the following objectives:

- Ensuring the reliability and accuracy of financial and management information,

- Promoting effective and profitable operations aligned with the Companys strategy,

- Safeguarding the Companys assets,

- Complying with applicable laws, regulations, agreements, and the Companys own governance and operational guidelines.

Professional Chartered Accountants are responsible for conducting regular internal audits across all units and locations. Their findings are reported quarterly to the Audit Committee of the Board, which is led by a Non-executive Independent Director.

CAUTIONARY STATEMENTS

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectation may be "forward-looking" within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied. Companys operations may be impacted by various factors, including its reliance on telecommunication and information technology systems, government policies, and other influences. The Company disclaims any liability for consequences arising from decisions based on these statements and does not undertake to update them in the future.