Tinna Rubber & Infrastructure Ltd Management Discussions.

The global economy is set to expand 5.6 percent in 2021—its strongest post-recession pace in 80 years. This recovery is uneven and largely reflects sharp rebounds in some major economies. In many emerging market and developing economies (EMDEs), obstacles to vaccination continue to weigh on activity. By 2022, last years per capita income losses will not be fully unwound in about two-thirds of EMDEs. The global outlook remains subject to significant downside risks, including the possibility of additional COVID-19 waves and financial stress amid high EMDE debt levels. Policy makers will need to balance the need to support the recovery while safeguarding price stability and fiscal sustainability and to continue efforts toward promoting growth-enhancing reform and Spillovers from contracting global growth and balance sheet stress in the financial sector will also adversely impact economic activity, despite some support from fiscal stimulus and continued monetary policy easing.

Indias GDP was contracted by 7.7 Per Cent in FY2020-21. However IMF estimate ofreal GDP growth of 11.5 per cent in 2021-22 for India and 6.8 per cent in 2022-23. India is expected to emerge as the fastest growing economy in the next two years as per IMF.

INDUSTRYSTRUCTUREAND DEVELOPMENT

As natural resources are limited, recycling has gained attention worldwide. Now companies are articulating avision of using greater portion of recycled material in their products and formulations. The rubber industry is not an exception to this. End of life tyres are an important source of recycled rubber worldwide and its status has changed from waste to resource. The reclaim rubber industry has been developed around this reality.

A show-case project of benefits of circular economy. Actively promotes re-use of products derived from ELTs into new tyres, conveyor belts, road construction etc.

Tinna Rubber and Infrastructure Limited (TRIL) is a pioneer in manufacturing of crumb rubber modifier (CRM) for bitumen and almost 100K lane kms has been laid in India with CRMB and our CRM. TRIL has set an example in the industry by converting Waste to Wealth, by aggressively promoting the concept of recycling of Truck/ Bus, Radial (TBR) tyres for reuse in new tyres, conveyor belts, road construction etc.

TRIL is the only Company present in rubber based products for both road Bitumen and non road industry and Manufacture value added products from the steel reconditioning also Integrated at the back end as well, to ensure regular flow of ELTs ITom Middle East, Africa and Europe.

TRIL is a leading player in the field of Crumb Rubber and Bituminous products and the Company has captured a substantial market share by maintaining high quality, reliability and customer satisfaction. TRIL has established Pan India presence with manufacturing facilities located at strategic centers and near to hubs of industrial activity to produce Crumb Rubber powder from end of life (waste)tyres. Crumb Rubber Powder, which acts as a substitute to natural rubber. TRIL has already installed most modern additional lines for manufacturing of Reclaim and High Tensile Reclaim in its plants, located at Panipat (Haryana) and Wada (Maharashtra) and has successfully introduced high quality Hi Tensile Ultrafine Reclaim Rubber &Ultrafine Tyre Crumb. TRILs Hi Tencile Ultrafine Reclaim rubber is preferred choice by the Tyre industry, Conveyor belt industry and Rubber moulded products.

SEGMENT - WISE OR PRODUCT - WISE PERFORMANCE

As a rubber compounder/ recycler of waste tyres your Company is playing a vital role in caring for environment by using waste tyres, which is otherwise a serious environmental and health hazard. TRILs ecofriendly recycling of tyres involves the following process:

a) Procurement of waste tyres from around the world and process them in an environment friendly manner, without generating any waste and pollution.

b) TRILs R &D team has developed various value added products from waste tyres having following innovative applications:

- High Tensile Crumb: for rubber compounds, for use in rubber industry including tyres.

- Crumb Rubber Modifier: for blending with Bitumen to make rubberized bitumen.

- Reclaim Rubber : as a raw material for rubber product industry.

- Hi Carbon Solid Steel Shots: for shot blasting, surface preparation applications.

- Hi Carbon Steel Scrap: formelting andreuse.

The Company has developed and commercialized its products viz. Hi Carbon Steel Abrasives and Reclaim Rubber/ Ultra Fine Crumb Rubber, Detailed figures of product wise sales are given in Notes on Financial Statements.

In earlier years Crumb Rubber Modifier (CRM) and other road related products having application in the infrastructure sector has been the mainstay of the Companys sales mix, your Company has consciously reduced its dependence on this sector.

OUTLOOK

We hope that during the year 2021-22, Various initiative and new reforms of government is going to be implemented as envisaged by the Govt of India this year. Your company also introduced new technologies and two specialized grades of Emulsion such as Micro Surfacing, Recycling grades Emulsion and Eco-Friendly cold mix emulsion for rural road and we hope that Your Company will witness accelerate growth from road sector. We believe a new policy is in the works which will mandate use of Modified Bitumen in making new roads. This will create accelerated demand for our product Modified Bitumen and Crumb Rubber Modifier.

The Company has a strong market presence and immense corporate trust reposed by its customers. The Companys customer base includes prestigious customers like SEMPERTRANS, MRF, APOLLO, TVS Srichakra, CEAT, JK TYRES and like Indian Oil Corporation Ltd., Hindustan Colas Ltd., Manglore Refinery and Petrochemicals Ltd., Balakrishna Tyres Ltd., Alliance Tire Group (Yokohama), Ralsontyres, DCM Engineering Products, Hyundai Construction Equipment (India) Pvt. Ltd., Mahindra CIE Automotive Ltd., Rico Auto Industries Ltd., Neosym Industries Ltd., Zenith Industrial Rubber Products Pvt. Ltd., IJM (India) Infrastructure Ltd. Further we are pleased to report that Your Companys efforts have resulted in successful execution of export contract for supply of products to Thailand, Turkey and Sri Lanka. We expect to see rise in Companys Export during the year 2020-21 and your Company is exploring opportunity for export in European market.

OPPORTUNITIESAND THREATS OPPORTUNITIES

International Commitment to Sustainable Management of Natural Resources

In 2015, all members of the United Nations adopted the 2030 agenda for sustainable development, at the heart of which were 17 SDGs (Sustainable Development Goals) and 169 targets.

An important SDG relates to INNOVATION AND INFRASTRUCTURE, to Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. It aims at promoting increased resource- use, efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

It is targeted that by 2030, to upgrade infrastructure and retro fit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

By recycling and reusing rubber and Plastic in the most efficient manner possible, we will be a step closer to achieving the Sustainable Development Goals (SDGs) related to material reuse, sustainable development and resource efficiency. These indicators are:

• By 2030, achieve sustainable management and efficient use of natural resources.

• By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.

Good connectivity is a fundamental requirement for industrialization and development. Indias initiative to build sustainable roads and use rubber waste with bitumen (CRMB- crumb rubber modified bitumen) is a positive indicator.

CRMB is an environmental friendly product as it helps in disposing off the used/ discarded tires in an environmental friendly way and at the same time enhances the properties of bitumen which is used for making durable and long lasting roads.

A study was conducted by "The Institute for Environmental Research and Education" and they found that: "The upstream carbon footprint for the production of asphalt is 840 kg CO2e per metric ton. In comparison, the carbon footprint for recycling tires is 124 kg CO2e per metric ton. This reuse of rubber tires in roads is clearly highly favourable from a climate change perspective."

In India the state of Uttar Pradesh is extensively using waste material as most of their prestigious road projects are being made using waste rubber (CRMB). Taking the lead IRC is also advocating the use of waste material in roads.

IIT Tirupati did an Advanced Testing on the sample which was Blended with Waste Rubber, Waste Plastic and Additives and the results indicate that the product comprising of waste plastic, waste rubber and additives meets the

American standards of PG grading and properties equivalent to High Performance Polymer Modified Bitumen (PMB) as per Indian standards. It is also found that plastic alone cannot be blended with bitumen.

It has also been found that Rubber recovered from ELTs is a good substitute for Natural rubber, Synthetic Rubber and Bitumen in many applications.

Overall, Indias score in the index - which evaluates how the country and its regions have been performing on social, economic and environmental parameters has improved by six points, suggesting slight progress. "The composite score for India improved, from 60 in 2019-20 to 66 in 2020-21. This indicates that the country overall has progressed forward in its journey towards achieving the SDGs," as per the report titled SDG India Index 2020-21.

• India currently produces 6 50,000 tyres and discards 2,75,000 tyres every day. India generates over 1 million tons of ELTS each year. It is estimated that 60% of waste tyres generated in India are disposed through illegal dumping. There are opportunities to increase market penetration by launching innovative rubber related products and to fill the gaps.

• We recycle over 2000 truck/bus tires every day. Thats almost 8,00,000 tires annually. These tyres would otherwise go into landfills or burnt causing harm to environment.

The CRMB is being used in the construction of roads as has been specified in the revised specifications. Apart from the advantages like durability, better riding quality, strength, there is the environmental benefit as has been reported in a number of reports across the world. One such report by The Institute of Scrap Recycling Industries Inc. ( ISRI), USA is being attached for reference (only the relevant pages- full report is available onrequest).

As per the report The Carbon footprint for production of asphalt is 840 KG CO2 per MT. In comparison the carbon footprint for recycling tires is 124 KG CO2 per MT.

The reuse of tires in roads is highly favourable and can be seen fTom the below illustration:

Sale of CRMB (an average of 10% of rubber is used in making CRMB) IN 20120-21 was 1,00,000 MT or approx. 5000 lane Kms were constructed using waste rubber in bitumen.

By using recycled rubber in asphalt, there is a saving of 71,60,000 KG or approx. 8.9% of Carbon Footprints

• There are opportunities to reduce costs, with increased efficiency and economies of scale.

• The Company is engaging in the petro chemical refinery business to enhance its footprint, for marketing Bitumen modifier.

• There is strong export demand for Crumb Rubber and Reclaim Rubber Compound and the same is being actively explored, besides the existing exports.

THREATS

• End of life / Waste tyres are among the most problematic source of waste in the world. Incorrect disposal of old tyres can create all kinds of environmental and health hazards.

• It is estimated that by recycling a kilo of rubber translates into saving 2 kilograms of greenhouse gases (INAE 2015). If not recycled, tyres are an enormous global problem because of their non-biodegradability, flammability and chemical composition.

• Cost of the debt continue to be the key issue. Any increase in the interest rate will have negative impact on the profitability of the Company.

• Foreign Exchange fluctuation may affect the Company adversely, as we import our major raw material viz. waste tyres.

• Invent of other better alternative product, in a fast changing global environment.

• Any increase in taxes and change in Government policies may have negative impact on the Company.

RISKSAND CONCERNS

• Your Company follows a proactive risk management policy aimed at protecting its employees, assets and the environment, while at the same time ensuring growth and continuity of its business. Regular updates are made available to the Directors of the Company in Board Meetings. Key risks identified by your Company are as under:

• Any economic slowdown may adversely impact the business. This year Covid-19 a natural calamity is a prime example.

• Tyres are highly inflammable and your Companys property and stock are subject to risk of loss due to fire and flood and these are mitigated with insurance and fire detecting and firefighting equipments and proper security personnel. Regular training program for employees are being organised by the Company relating to fire control.

• Any change in Government policies may adversely affect the demand/profitability of the product.

• Technology obsolescence is an inherent business risk in a fast changing world and speed of change and adaptability is crucial for survival of the business.

• The domestic, regional and global macro-economic environment, directly influences the demand of the bitumen modifier.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

A system of internal control, commensurate with the size and nature of its business, forms an integral part of the Companys corporate governance policies.

The Company has a proper and adequate system of internal control commensurate with the size and nature of its business. Some of the significant features of internal control systems include:

• Ensuring compliance with laws, regulations, standards and internal procedures and systems.

• De-risking the Companys assets/resources and protecting them from any loss.

• Ensuring the accounting systems integrity proper and authorised recording and reporting of all transactions.

• Preparing and monitoring of annual budgets for all operating and service functions.

• Ensuring the reliability of all financial and operational information.

• Forming anAudit committee of the Board of Directors.

• The Audit Committee regularly reviews audit plans, significant audit findings, controls and compliance with accounting standards and so on.

• Continuous up-gradation of IT Systems.

FINANCIAL PERFORMANCEVIZ - A - VIZ OPERATIONAL PERFORMANCE

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

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company firmly believes that Human Resource is the key driver for the success of any organization. The Companys human resources policies are carefully structured to meet the aspirations of the employees as well as the organization. These policies are implanted through training and other developmental programs. These policies encourage continuous learnings and innovations. Your Company has a dedicated team of 642 employees as on 31st March, 2021 as compared to 696 employees as on 31st March, 2020. The Company continues to have cordial industrial relations.

CAUTIONARY STATEMENT

Investors are cautioned that statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and overseas market in which the Company operates, risks inherent in the Companys growth strategy, change in Government regulations, tax laws and other statutes and other incidental factors.