Transport Corporation of India Ltd Management Discussions

COMMITTED TO GROWTH FOR ALL •

In 2023, another profound insight from the Upanishads captured attention, coinciding with Indias presidency of the G20—a forum uniting leading and emerging economies to address various global challenges, including sustainable economic development, security, and energy transition. The New Delhi G20 Leaders Declaration, comprising 83 paragraphs passed unanimously and marked a significant diplomatic triumph for India. Where geopolitical conflicts, rising inflation, energy costs, economic disruptions, poverty, inequality and climate change were identified as some of the glaring issues facing the world, India successfully advocated for trade and investment as engines for inclusive growth and prosperity.

CARRYING ANCIENT WISDOM TO LOGISTICS EXCELLENCE

As a prominent Logistics Solutions Provider in India, TCIL acknowledges the global commitments and the myriad opportunities they present for our nation. As India celebrates Azadi ka Amrit Mahotsav (75 Glorious years of Independence),

TCIL, guided by its C.O.R.E. values (Customer Focus, Ownership, Responsive, Empathy), is poised to harness and expand its potential for the collective benefit of all the stakeholders, drawing inspiration from the wisdom of our ancient rishis.

The Global economic growth persisted despite 2023 being marked in history as the year where the world at large battled inflationary pressures occurring due to geopolitical crises, rising energy prices and tighter labour markets.

While Europe, China and Japan dealt with lower economic growth; the US and India remained on the trajectory of brisk economic expansion due to robust consumer spending, propagation of Artificial Intelligence (AI) across different sectors, including manufacturing & infrastructure-led growth.

The global GDP growth for 2023 has been estimated at 3.1% by the International Monetary Fund (IMF) with future projections estimated at 3.1% for 2024 and 3.2 % for 2025.

As per the Global Trade Outlook and Statistics: October 2023 Update report by the World Trade Organization, world trade

growth was affected by the lingering impacts of the restrictions in China, the resulting disruptions of the global supply chain networks, the geopolitical conflicts and resulting hike in crude and natural gas prices, especially across Europe. However, the world trade merchandize volume growth estimate is expected to pick up pace in 2024 and grow at 3.3%. This opens up many more avenues of economic growth and development across various developed and emerging economies.

Indias remarkable resilience in the face of global economic headwinds solidifies its position as the next growth engine for the world. By FY 2026-27, Indias robust domestic consumption and investment, fueled by targeted government spending, digitization initiatives, a resilient financial system and an evolved logistics sector, is expected to propel it in becoming the worlds third-largest economy.

foreign investment. Government initiatives like the Production- Linked Incentive (PLI) scheme, Antmanirbhar Bharat and Make in India further bolster this positive outlook, driven by the digital economys rapid expansion.

The record amount of US$ 596 Bn received as Foreign Direct Investments (FDIs) during the decade of FY 2013-14 to FY 2022-23 is a testament to Indias potential as seen from the international arena.

The Red Sea disruptions and recessionary trends in the West notwithstanding, Indias merchandise exports in January 2024 registered 3.12 % growth at US$ 36.92 Bn over US$ 35.80 Bn in January 2023. The main drivers of merchandize export growth in January 2024 include petroleum products, engineering goods, iron ore, electronic goods, drugs and pharmaceuticals. While global supply chains face ongoing disruptions due to geopolitical tensions and pandemic aftereffects, the trend of nearshoring presents an opportunity for India, as companies increasingly focus on building resilient chains closer to their markets.

Indias robust economy rests on strong pillars: a thriving middle class fueling domestic demand, a resurgent services sector driving growth, and healthy trade supported by exports and

The global logistics industry is estimated to exceed US$ 15.79 Tn by FY 2028 and US$ 18.23 Tn by 2030. The changing lifestyle and preferences of consumers, the proliferation of B2B and B2C e-commerce platforms and the globalization of trade and commerce are the principal driving factors behind this phenomenal growth.

This industry is on the cusp of transformation as the advent of state-of-the-art technologies such as the Internet of Things (IoT), Machine Learning (ML), and Artificial Intelligence (AI) are

set to redefine business functions such as route optimization, warehouse management and inventory turnaround so as to reduce the costs drastically and increase the productivity exponentially.

LOGISTICS SECTOR IN THE MIDDLE EAST —

Most Middle Eastern economies have been traditionally centred on crude reserves. However, with the gears shifting towards energy transition and the adoption of green fuels, these countries have been gradually moving away from oil and engaging in exports of a wide range of products and services.

Geopolitical unrest not-withstanding, the Middle Eastern economies are growing at a rapid pace. The rapid rise in export-import trade in this region has attracted enhanced visibility for foreign direct investments especially for logistics and warehousing facilities in the region. Access to low-cost fuel and cheaper modes of transport has caused elevated demand for road transport. To reinforce this strategic advantage further, they need to build supply chains with superior capabilities. Investing in reliable logistics service providers offering single-window shipping and other supply chain solutions will maximize their trading forte.

LOGISTICS IN INDIA

India has set its foot on this path to become the economic, political and military superpower in the 21st century. Rightfully, the Central Government is directing sufficient measures for framing and implementing the correct policy initiatives in this direction. The combined force of government impetus, technology adoption and automation herald a decade of transformation and robust growth ahead for the Indian logistics industry which is estimated to grow at an impressive CAGR of around 7.85% from the present US$ 282.3 Bn to US$ 563 Bn by 2030

As per the World Banks Logistics Performance Index Report (2023): Connecting to Compete 2023 report, India has moved up by six places from 44th position in 2018 to 38th position in 2023 out of 139 countries in this index. As India sets its eyes on the goal of becoming a US$ 5 Tn economy by 2030, logistics remains at the forefront of the sectors that can bring about this achievement for the nation.

The logistics and supply chain industry is expected tap into a huge opportunity for efficiency as the logistics cost as a percentage share of GDP remains the highest in India as against the other major economies.

Revolutionizing Logistics in India: Tod Trends Driving Business ^SoUrCe: Operations in 2023

India is changing at a break-neck speed and so are its peoples lifestyles, requirements, expectations and the way they carry out their businesses. Logistics is one such industry that brings together different parts of our world, be it Business to Business (B2B), Business to Consumer (B2C) or Business to government (B2G) and vice-versa. Hence, Logistics is adapting itself to match the evolving needs of various segments of society.

IMAGINING INDIA @100: LOGISTICS DEVELOPMENT PLAN FOR 2047

Logistics costs in India are among some of the highest in the world. The Government has envisioned to reduce logistics costs as a share of GDP between 8% - 10%, by 2030 from the current 14%. Also, under its VISION 2047 for VIKSIT BHARAT, the Government of India aims to revamp the logistics sector in India by augmenting the transport network across all the vital modes of transport. Some of such ambitious targets are as follows:

A Birds Eye-View of Strategic Policy Initiatives by The Government of India

According to the National Logistics Policy, 22 Mn people in India are employed in the logistics sector. The logistics industry shall create an additional 1.2 Mn jobs by 2025. A sector this large and so crucial to support Indias plan to join the ranks of developed nations by 2047, necessitates a framework of coordinated Government initiatives so as to reduce wastage and attain goals in a timely and sustainable manner. The following section presents the gist of some of the leading initiatives implemented by the Government of India for the same.

PM Gati Shakti and National Master Plan (NMP)

Launched in October 2021, PM Gati Shakti National Master Plan (NMP) addresses the need for integrated infrastructure development and network planning for multimodal connectivity across various economic zones in the nation. This plan identifies seven engines for economic growth and aims to promote sustainable development through logistics synergy, faster implementation, adoption of innovative technology and financing. These seven engines of growth are as follows:

National Logistics Policy (NLP) and Comprehensive Logistics Action Plan (CLAP)

Launched in September 2022, NLP targets to reduce the cost of logistics in India; improve Indias ranking in the Logistics Performance Index ranking and; create a supportive ecosystem for an efficient logistics industry. To achieve these targets, the Comprehensive Logistics Action Plan (CLAP) was launched as a part of the NLP covering eight action areas viz.

A total of 1,300 infrastructure projects are envisaged as part of this initiative across diverse Ministries/Departments for comprehensive infrastructure planning in India. As of December 2023, the progress under PM Gati Shakti is remarkable.

o Onboarding of 39 individual line Ministries uploading of 1,463 data layers on the NMP web portal

o The Ministry of Textiles has mapped eight sanctioned PM Mitra Parks.

o The Department of Pharmaceuticals reported the successful completion of 129 Pharma clusters and 23 medical device cluster projects

Production Linked Incentive (PLI) Schemes

In its pursuit of becoming a US$ 5 Tn economy, India - the fifth largest economy in the world - is raring to ignite the engines of its export manufacturing prowess to the fullest.

The manufacturing sector presently contributes 17% to Indias GDP and employs over 27.3 Mn workers. India is being envisaged as a formidable alternative to China in terms of production capabilities under the India Plus One strategy is gaining traction on the global economic platform. The path to realizing this vision is through the development of a robust manufacturing sector and export

Source: 03 FY2024 Manufacturing Report \ Amicus Growth Advisors

Bharatmala

Dedicated Railways Freight Corridors

The establishment of Dedicated Freight Corridors (DFCs) aims to lower logistics costs, develop new industrial hubs and connect terminals under the Gati Shakti plan seamlessly. The following table encapsulates the status of the development of various DFCs in India:

The Bharatmala Pariyojana is a broad-based initiative by the Government of India to develop about 26,000 km length of Economic Corridors, along with Golden Quadrilateral (GQ) and North-South and East-West (NS-EW) Corridors to carry a majority of the Freight Traffic on roads.

Indias freight corridors	Current Status
Eastern Dedicated Freight Corridor	1,873 km (the entire corridor is operational)
East-West Dedicated Freight Corridor	Received Approval
East Coast Dedicated Freight Corridor	Received Approval
Western Dedicated Freight Corridor	1,506 km (1,015 km operational)
North-South Dedicated Freight Corridor	Announced
Southern Dedicated Freight Corridor (Proposed)	Proposed

Sagarmala

This is the flagship program of the Ministry of Ports, Shipping and Waterways to heighten the use of waterways in multimodal transport and create career opportunities in ports and the maritime sector.

Cargo Transportation on Waterways

To facilitate the growth of traffic on national waterways, fairway development works have been undertaken to ensure a Least Available Depth (LAD) on NW-1 under the Jal Marg Vikas Project (JMVP). Services by Ro-Ro /Ro-Pax vessels were inaugurated by the Honble Prime Minster Shri Narendra Modi in February 2021 between the following routes:

o Neamati and Kamalabari (Majuli)

o Guwahati and North Guwahati

o Dhubri and Fakirganj (U/S Hatsingimar)

o Wellingdon Island and Bolghaty

As of July 2023, various development initiatives on 20 NWs have been undertaken. The Inland Waterways Authority of India (IWAI) has identified 26 new NWs for developing navigable waterways for transportation purposes. Also, to promote ease of doing business, the following digital platforms have been launched by IWAI:

o CAR-D (Cargo Data) Portal

o PANI (Portal for Asset & Navigation Information)

Open Network for Digital Commerce (ONDC) is an initiative by DPIIT seeking to promote open networks for all aspects of the exchange of goods and services over digital or electronic networks. ONDC network across 600+ cities with the active participation of over 5 Lac+ sellers, service providers and MSMEs hailing from sectors such as Grocery, Mobility, Fashion, Beauty & Personal Care, Home & Kitchen, Electronics & Appliances, Health & Wellness and B2B.

Aiming to promote sustainability across the infrastructure, logistics and transportation network, the National Green Hydrogen Mission was launched. under this mission, an agreement is signed between Green Hydrogen NGEL and SMP, Kolkata to set up a Green Hydrogen Hub in Kolkata. A Memorandum of Understanding (MoU) has been signed with Saudi Arabia for the green hydrogen supply chain and power grid interconnection.

India-Middle East-Europe Economic Corridor

The India-Middle East-Europe Economic Corridor (IMEEC) is an ambitious action plan to enhance connectivity across the continents. It was announced in September 2023 during the G20 summit in New Delhi between the leaders of India, the US, the United Arab Emirates (UAE), Saudi Arabia, Italy, France, Germany and the European Commission.

As these economies generate almost half of the global GDP, this project shall be critical in terms of developing strong and resilient global supply chains, furthering digital connectivity, transitioning to green fuels and ultimately, creating a mutually beneficial ecosystem through economic integration.

Unified Logistics Interface Platform (ULIP)

The Unified Logistics Interface Platform (ULIP) has been launched along with NLP for digital integration in the logistics sector and to facilitate using just one single sign to traders using multiple modes of transport. ULIP amalgamates 34 logistics- related digital systems /portals across Ministries / Departments, in addition to integration of GST data. It leverages emerging technologies for data collection, data analysis and prediction, enabling paperless processes for logistics in India by facilitating one nation - one permit

e-SANCHIT

To enhance the ease of doing business in India, the Department of Revenue has launched an e-SANCHIT web portal as a part of its initiative called the Single Window Interface for Facilitating Trade (SWIFT) that seeks to reduce the dependencies on government officials and expedite the process.

e-SANCHIT facilitates the paperless handling of documents pertaining to Customs clearance and makes the consignment clearance process completely contactless, paperless and virtual.

COMPLEX TERRAIN OF THE INDIAN LOGISTICS INDUSTRY

The Indian logistics industry has set itself a lofty goal of becoming a US$ 563 Bn by 2030. The path to this target is peppered with obstacles that must be tackled with concerted efforts from the government and industry participants by deploying strategic and technical solutions. Some of the foremost challenges that may hinder the growth potential of the Indian logistics sector are:

RESHAPING THE INDIAN LOGISTICS INDUSTRY WITH EMERGING TECHNOLOGIES

in the dynamic realm of the logistics industry, transformative elements such as robotics, Al, and Logistics 4.0 are making a profound impact. From the emergence of virtual supply chain twins to the adoption of industry 4.0 principles, logistics and supply chain management are witnessing remarkable innovation and digitalization. Amidst shifts like remote work culture and environmental awareness, these technologies optimize operations and cater to evolving client demands. The ensuing trends and technologies spearhead the transformative wave, carrying forward the logistics and supply chain sector.

Industry 4.0

Industry 4.0 is the rise of digital industrial technology. Industry 4.0 transformations allow us to work alongside machines in new, highly productive ways.

As Industry 4.0 has entered the global manufacturing arena, it has become imperative for all industries, especially manufacturing and production organizations; to integrate the following nine technologies in their production and operations. These technologies are the bridge that would connect with their target market and equip them to serve the rapidly shifting consumer demands.

Logstics 4.0

Logistics 4.0 decodes the logistics and supply chain functions in the context of Industry 4.0. This implies developing an ecosystem where some of the autonomous decision-making powers are shifted to intelligent or Smart machines and the entire value chain functions as a synergistic setup of technology and human endeavor.

Digitalization in Logistics

Digitalization in Logistics 4.0 is the application of pillar technologies such as big data and AI analytics, digital twins, robots, cybersecurity and IIoT in logistics business processes for increased efficiency, cost reduction and heightened customer satisfaction. These digitial technologies have a protracted adoption timeline, with each technology taking its owntime to mature and get implemented. The impact of adopting these digital technologies can be assessed from the Whitepaper by the World Econmic Forum. The emerging digital technologies can be categorised in 4 Key categories and "Logistics Value at Stake" for each innovation can be calculated - both from the perspective of the Logistics Industry and well as the society as a whole.

Generative AI can integrate with multiple business applications and management systems for orders, workflows, partners, products & services catalogues and CMS & CRMs, smoothening the handshaking process for 3PL/4PL operations, leading to logistical efficiencies and increasing customer satisfaction. Relationship Management and Account Based Marketing, can promote cross-selling, upselling and repeat orders by estimating the buying preferences and calculating re-ordering Economic Order Quantity.

Adoption of Generative AI

Generative AI based on Large Language Models (LLMs), predominantly GPT 4.0 & Gemini which have ability to process not just text but also images & videos, would benefit Integrated multimodal logistics players across multiple time-consuming and labour-intensive functions like operations, invoicing, documentation etc. by reducing wastage and improving turnaround times. As human intervention in repetitive tasks will be minimal, it will reduce overall logistics costs.

Asset Maintenance covering the wear & tear faced by warehouses, vehicles, ships, aircraft, and material handling equipment can be addressed with near perfection on a realtime basis due to the elimination of human bias & errors and the application of the predictive analysis by the LLMs. The image processing capabilities can enhance quality control by real-time monitoring of packaging, loading, unloading and stockpiling/ stacking of cargo, thereby ensuring appropriate vehicle capacity utilization as well as reducing damages. Delivery inspections and damage claim surveys can also be automated. Real-time image monitoring & alarm system integrations may lead to a significant reduction in the number of accidents.

One more path-breaking area of application can be the dynamic market analysis that these LLMs can perform by crunching huge data sets. Collaborating with Big Data, Predictive, and Preventive Analytics, Generative AI can acquire, analyse, aggregate, and deliver accurate results so executives can make informed decisions.

An implementation system with clear checks and balances, a cautious approach towards leveraging the platform and protective measures against hacking and external manipulation shall enable the logistics industry to solve some of its most fundamental problems, proving to be a gamechanger for the industry and the nation.

B2B Sourcing Marketplaces

The high demand in B2C created an even broader demand- supply ratio for the B2B sector. The leading players in this segment are Amazon Business, Udaan, Indiamart, Jio Mart and Flipkart Wholesale. Given the shift in consumption behaviour and hugely reduced turnover time due to digitalization, supply chains and logistics shall play a crucial role in achieving this goal which are highly unstandardized and fragmented in India at present. If the marketplaces can manage entire transactions through a full-stack approach, it would enable them to exercise stronger control over supply and lead to improved customer experience and retention.

Virtual Twin Technology in Logistics

Virtual twin technology has transformed the logistics sector through the seamless integration of robotics and automation, elevating operational efficiency, safety, and precision across the supply chain. The use of virtual twins offers a comprehensive platform for designing, visualizing, monitoring, optimizing, and maintaining assets.

The virtual twin of a supply chain emerges as a dynamic platform for collaboration among various stakeholders involved in both strategic functions and day-to-day operations. Decisionmaking is supported throughout the lifecycle of the facility by simulation of flows and processes, thus enhancing productivity and investment optimization.

Virtual twins can be strategically deployed at various touchpoints, encompassing factories, warehouses, retailers, shopkeepers and the company itself.

The key challenge that B2B marketplaces in India face is the highly unstandardized and fragmented nature of supply chains. Here, technology adoption in supply chains would play a crucial role in ensuring error-free, faster deliveries and returns while meeting requisite quality standards. If the marketplaces can manage entire transactions through a full-stack approach, it would enable them to exercise stronger control over supply and lead to improved customer experience, retention and enhanced brand value. Inclusive digital ecosystems shall play a vital role in enabling startups and small B2B eCommerce marketplaces to expand their footprints globally. By onboarding such businesses onto a sophisticated, digitized marketplace; they shall be empowered to offer a more diverse range of products and services on a global scale.

Marketplace routes to market

Marketplaces allow for inclusion of several players across the value chain by digitizing interactions between buyers and sellers, thereby reducing friction and removing inefficiencies Various types of Marketplaces are now emerging sich as-

Warehousing Transformation

The Indian warehouse market is estimated to grow to US$34.99 Bn by 2027, with a CAGR of 15.64% from 2022. As per records, Grade-A Warehousing stock in the country is 177 Mn sq. ft as of Q3 2023-24. However, the demand outpaces the supply by 1.4 times due to rising consumer demand because of increasing population and elevated income levels, swift adoption of quick commerce by the digital native GenZ and warehousing being a key component of the logistics and supply chain operations. Eight primary markets of India comprising Mumbai, Pune, Ahmedabad, Chennai, Hyderabad, Kolkata, Bengaluru and NCR hold around 412 Mn sq. ft of the total warehousing stock as of 2023.

The shift from brick-and-mortar retail to online shopping is driving the need for a complete transformation in the retail supply chain right from sourcing to warehousing, dispatching and last-mile delivery. Rapid order fulfilment is becoming a necessity due to the growing popularity of quick-commerce and warehouses are investing in large-scale automation to meet these demands.

Rapid technological adoption in warehousing includes robotics, machine learning, AI and the Industrial Internet of Things (IIoT). The global warehouse automation market is estimated to grow at a CAGR of 14%, reaching a value of US$30 Bn by 2026. The market size for mobile robots is expected to reach over US$334 Bn between 2032 and 2042. Robots can perform various warehousing functions such as sorting, picking, packaging, batching, transportation, fulfilment, security, and inspection.

Grade A warehousing

The demand for larger, smart and automated warehouses where spaces are measured not only in square feet but also cubic feet is on the rise in Tier I, II and III cities of India the behavioural shift of consumers to online shopping and quick commerce especially in retail, grocery, pharmacy, electronics and food delivery segments is driving a need for easy storage and retrieval-based points of distribution.

The insistence towards more and more digitalization and contactless operations; the shift from the Just in Time method of inventory management to the Just in Case method; and the growing demand for green warehousing practices with increasingly fewer carbon footprints are the factors dictating the demand for Grade A warehouses in India.

Green Warehousing:

A sustainable warehouse, a green warehouse is designed minimising environmental impact while maximising resource efficiency and operational effectiveness. The momentum is slowly shifting towards development of certified green warehouses. Certification agencies like IGBC, LEED and IFC Edge have developed dedicated certification programs for sustainable warehouses. The demand for sustainable warehouses is set to increase because of global push and rising awareness among foreign investors on rising cost of resources (energy, water, materials etc).

Key characteristics of a sustainable warehouse include energy efficiency features, water conservation methods, waste management, green building design, landscaping/green area provisions and maintenance (with specific emphasis on selection of drought tolerant/ native species), use of sustainable/alternate materials transportation & logistics optimisation, employee comfort & well-being.

A sustainable warehouse offers significant savings as compared to a non-sustainable warehouse when it comes to energy consumption, water consumption and total embodied energy. When all these parameters were converted to per sqm of construction area, the percentage savings and average payback period on ROI were as follows:

more value added activities. While cobots offer numerous advantages, they also come with a heavy upfront investment & training costs. However, in the long term, the advantages outweigh these implementation challenges. With the righ balance between human expertise and & robotic efficiency, the collaboration between employees & cobots holds the key to a faster, smarter and safer fulfilment process.

COBOTs as the Future of Fulfilment Centers:

In the ever evolving landscape of Retail, the race of efficiency, speed and safety in fulfilment processes has led to the integration of cutting edge technologies. Amongst these innovation, Collaborative Robots (COBOTs) are emerging as the game changer in the retail industry. Cobots are designed to work seamlessly alongside humans, enhancing productivity and safety while reshaping the future of order fulfilment. Adept at handling repetitive tasks such as picking & packing items, these robots free up the human workforce to focus on

Emergence Of Elastic Logistics

The concept of elastic logistics is the ability to be agile and flexible in the face of the changing demands of Supply Chain

4.0. The introduction of new channels of communication with customers and unstable production demand have led companies to make their logistics systems more elastic, adapting to those changing needs to be more competitive.

Logistics 4.0. has not only brought with it the consolidation of multiple technologies in the warehouse, but also new consumer trends. Challenges such as last-mile delivery have been compounded by the adjustment to a more agile and flexible supply chain.

Elastic logistics is the perfect solution for such changing environments as Supply Chain 4.0. These are the main benefits of elastic logistics:

o Elimination of storage cost overruns o Effective management of new orders o Agility and flexibility in warehouse operations o Product control and traceability

On the other hand, new consumer trends such as product seasonality and reverse logistics have brought with them imbalances in logistics planning, which can be detrimental to very rigid organizations. In fact, e-commerce has opened the door to new business models such as drop shipping, where the customer places an order to the warehouse without it being previously stored in its facilities. This is one more example of why elasticity, agility, and flexibility are essential in Logistics 4.0.

Zero Emission Trucking

Recognizing the need to shift towards net-zero carbon emissions as a part of their social and environmental responsibility, many logistics and supply chain businesses, FMCG players and E-commerce ventures are moving towards Zero Emissions Trucking (ZET). Major Original Equipment Manufacturers (OEMs) are ramping up their production of electric Medium-Duty Trucks (MDTs) and Heavy-Duty Trucks (HDTs) under their plans for the electrification of their fleet to meet the growing demand.

Production of a range of MDTs and HDTs capable of accommodating various duty cycles and operational requirements is underway to cater to the unique requirements of the Indian freight businesses. For the successful deployment of ZETs in India, an entire ecosystem of deployment of such vehicles in high-density road freight clusters, shared charging and refueling as well as vehicle servicing mechanisms should be created to benefit multiple corporate, transport and government stakeholders.

Agri-Tech

The logistics requirements in the agriculture industry have increased due to technological innovations (Agritech) and organized practices. Integrated Supply Chains are being designed for the distribution of Agri inputs and assist in implementing farm2fork concepts. Also, Near farm infra is a trend gaining dominance due to government-induced and public sector-led investments. State governments are expected to play an important role in mobilizing resources for enablement of cold chains for horticulture, fresh produce and cash crops.

Quick Commerce

To manage demands for frequent and prompt deliveries in the quick-commerce segment, there is a requirement to go hyperlocal for distribution. Hence, there is a strategy shift towards setting up more distribution centers or re-localizing.

Dairy Products & Processed Food

This industry is vulnerable to wastage, and demand-supply imbalances occurring from logistical disruptions and ineffective handling and processing of the goods. Deploying robotics, data analytics, AI and advanced tracking systems is expected to help address these issues. Development of Cold chain infrastructure will further solve the distribution related challenges especially in tier 2 & tier 3 towns.

Also, there is a need to integrate an inventory management system with the e-commerce platforms to manage the returns or reverse logistics operations on an efficient and sustainable basis.

Retail Warehousing

EPR and Batteries

Electric vehicle (EV) batteries are critical components of an EVs total value. With the global push towards achieving net zero emissions, theres a heightened focus on ensuring the security of the supply chain for critical minerals and metals essential for battery production. As demand for EVs rises, existing supply chains face increasing pressure to meet the growing requirements. Robust supply chains incorporating elements of EPR and sustainable practices such as extensive recycling are the need of the hour.

Aero- Space & Defense

The unavailability of critical raw materials, parts from Original Equipment Manufacturers (OEM) or materials for repairs and overhauling at the right time has been a key issue in this industry due to constant supply chain disruptions. Trade barriers, restrictions on imports and the critical nature of the cargo further exacerbate the problem. Exploring alternate sources of supply through trusted logistics partners, creation of a digital twin of the supply chain, heightened automation and options like cross-border manufacturing and friendshoring can tackle the issue.

Solar Power

India, standing at fourth position in global solar capacity, is a dominant player in solar power generation. The PLI Scheme for the National Programme on High-Efficiency Solar PV Modules with an outlay of ? 24,000 Crores has been introduced to boost domestic manufacturing of High-Efficiency Solar PV modules and accelerate solar power generation. According to CIIs Global Champions For Advancing Renewable Energy Innovation And Manufacturing, in September 2023; as of March 2022, Indias combined PV module manufacturing capacity stood at approximately 18 GW. This capacity reached around 38 GW by March 2023, marking an impressive addition of over 100%.

To build a globally competitive position in this critical industry, a robust and resilient logistics and supply chain ecosystem has to be built to ensure timely and uninterrupted supply of raw materials such as PV-grade quartz, charcoal, limestone, low- ash coal and ancillaries such as solar glass, MOSFET and IGBT components for inverters, etc.

Semiconductors Manufacturing

Semiconductors are the vital foundation of todays global digital economy, projected to reach a valuation of US$588 Bn in 2024. With semiconductors powering virtually every modern device, including smartphones, and electric vehicles, nations possessing access to cutting-edge semiconductor technology stand to gain a significant edge in developing innovative products.

India has recently shifted its focus towards semiconductor manufacturing, particularly in semiconductor fabrication and post-production assembly, testing, and packaging. It enjoys a competitive advantage fueled by government policies like the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), cost efficiencies, and a skilled talent pool.

This section needs green and efficient logistics for high-value goods and fragile, temperature sensitive components.

ABOUT TRANSPORT CORPORATION OF INDIA LIMITED: BUSINESS OVERVIEW

Founded in 1958, Transport Corporation of India Limited (TCI) continues to be a leading player within the evolving Indian logistics landscape. Backed by our C.O.R.E. (Customer Focus, Ownership, Responsive, Empathy) values, TCI has exhibited resilience and strategic foresight, not only adapting to evolving industry trends but also pioneering innovative business practices as a comprehensive logistics and supply chain solutions provider. With a rich legacy of over six decades, TCI offers a comprehensive suite of solutions for all logistics & supply chain needs and strives to extend unparalleled connectivity to every nook and corner of India and beyond.

Control Tower Lead Operations

The Belgian company dealing in Inorganic material especially Sulphur based products and Non-Ferrous Metal derivatives, needed an Integrated Logistics Services Provider for outsourcing their end-to-end Logistics operations which were NonCore to their main business. They needed a bespoke solution to manage the complexity of operations, flexible, optimized deliveries and reduced TCO (Total Cost Of Ownership)

ESG: NURTURING SUSTAINABLE STEWARDSHIP •

As an integrated logistics company, TCI is working to connect and simplify our customers supply chains. Every day, we facilitate and impact trade by offering end-to-end logistics solutions across oceans, ports, air and on land. Our vast network enables people countries to trade with anyone, anywhere - ultimately creating opportunities for people and communities to thrive, and for businesses to grow

AT TCI we believe that our development, accomplishments and evolution goes beyond balance sheets or conservative fiscal indices. As a responsible corporate citizen, we conduct our business ethically with diligence and transparency. In adherence to the Indian cultural values, the guiding principle of inclusivity has been the beacon of light for all our social contributions. We

respect diversity and acknowledge the rights of individuals across cultures and nations.

Moreover, we are committed to giving back to the communities we serve while minimizing our environmental footprint through our operations. Through our sustainability initiative as a part of "Janbhagidari" campaign, TCI has been making significant contributions for moving towards a socially responsible world. Through TCI Foundation, we have been working towards the upliftment living standards of the common people to ensure "Equality and better life for all". TCI has been #MakingTheDifference in the remotest locations from Ladakh to Andaman, serving the most neglected and marginalized sections of the society

ENVIRONMENT:

COLLABORATING FOR A GREENER PLANET

As a logistics services provider, we recognize our responsibility to contribute to environmental preservation and conservation. To this end, we actively engage in promoting green logistics, raising awareness through ESG campaigns, and integrating sustainable practices into our daily operations.

Our commitment to sustainability is reflected in various initiatives, including the adoption of Green trucks, energy conservation measures, optimized warehouse management and comprehensive water and waste management strategies.

Throughout our journey spanning over a decade, we have seized industry opportunities while prioritizing environmental conservation. This has led us to implement innovative solutions such as transitioning from road to rail and coastal multimodal transportation across our operations. By doing so, we not only enhance operational efficiencies but also embed sustainability into every aspect of our processes.

TCI-IIMB COLLABORATION: ADVANCING SUPPLY CHAIN SUSTAINABILITY

TCI Group and IIM Bangalore have launched the TCI-IIMB Supply Chain Sustainability Lab in collaboration, to champion sustainable supply chain practices. This center of excellence is a thought leadership initiative to promote knowledge sharing about sustainable supply chain methodologies through active research and advocacy efforts.

The TCI-IIMB Supply Chain Sustainability Lab aims to spearhead research initiatives focusing on critical areas such as decarbonization, circular economy and sustainable procurement as well as producing insightful white papers on various sustainable supply chain management aspects. Furthermore, the lab aims to provide consultancy services encompassing carbon-related mapping, measurement, mitigation and management. Plans to offer certification and assessment services, including supplier sustainability evaluations are also being considered. Partnerships with esteemed organizations such as WRI India and Herbal Life, among others, have already been initiated, along with building

up momentum through research projects, white paper publications and case studies.

Precise emission measurement becomes paramount to combat Indias significant emission problem, particularly from industries like transportation and energy generation. The lab has launched TEMT (Transport Emissions Measurement Tool) - an online GHG emission measurement tool as its concrete offering to help alleviate this problem. Efficient tracking of the emissions will be the first step in the process of reducing the same. Against the backdrop of varied operator & vehicle-specific data as well as a lack of credible statistics as to emissions measurement, this multilingual tool has been generating industry-wide interest and gaining widespread acceptance.

AtTCIL, the social responsibility is seamlessly woven into the business model and processes to render maximization of welfare for all the stakeholders as an integrated business objective, one that is met through endeavors across all the verticals and levels of management hierarchy. This commitment also stands true along the lines of 17 Sustainable Development Goals (SDGs) adopted by the UN in 2015 for the peace and welfare of the people and the planet. Conscious attempts are being made at TCIL to meet the following four SDGs in particular:

CREATING EQUAL OPPORTUNITIES

To ensure a sustainable, all-round development of any community, empowering its women is a critical first step. Maximizing their welfare through appropriate education, health and economic initiatives shall pave the way for the creation of a community or a country that is well-balanced and sensitive towards the needs of all the stakeholder groups including the environment.

At TCI, a wide range of programs has been implemented in various parts of the country so as to make a meaningful contribution to the lives of women and enable them to become equally equipped and competent members of a productive society.

Project Anokhee

In order to help rural women of India tackle the personal hygiene issues and social taboos concerning menstruation, TCI Foundation has established a Self-Help Group for rural women in the Kara Block area of Jharkhand. The project, known as Project Anokhee, to offer high-quality, low- cost sanitary napkins is being run by this group, directly assisting adolescent girls aged 10 to 19, as well as women aged 20 to 50. It extends its benefits to women and girls in neighboring villages, such as Jamhar Village in the Khunti District. Furthermore, the initiative generates employment opportunities and fosters economic growth among tribal women engaged in the manufacturing process. Through entrepreneurial training, the project empowers these women, granting them respect, confidence and independence. Currently, this initiative employs five women.

Sewing Centre

TCI has set up a Sewing Center in TCI DAV school, giving vocational training to the tribal women in Jharkhand enabling them to showcase the rich cultural heritage of Jharkhand State to the world, through their creativity. in 2023 five sewing machines have been provided and certificates of training completion have been given to 36 women, while the third batch of 30 women continues with their training.

The JHARKRAFT Program

In collaboration with the Government of Jharkhand undertaking JHARKRAFT, TCI Foundation has launched the Handloom Weavers Program at the TCI Foundation Skill Development Center to offer developmental opportunities to the people of tribal and underprivileged communities across the state. We place special emphasis on the inclusion of a maximum number of women, aiming to enhance their financial independence and social status within the community.

UPSKILLING WORKFORCE

To meet the requirements of the future thats constantly evolving and the needs of the industry continuously changing,

TCI Institute of Logistics

With the aim of providing professional employment to underprivileged youth, TCI Institute of Logistics has set up nine centers in Tier III and IV towns of India viz. Jhunjhunu, Churu, Hisar, Sitapur, Prayragraj, Varanasi, Satna, Patna, Muzaffarpur. It conducts the following certificate courses:

Certificate Programs

a. Transport System Management

b. Warehouse Operations

c. Cargo Operations

d. Courier Delivery

NSDC Program

a. Data Feeder

b. Documentation Executive

The institute has had a total of 12,881 trainees (including 16 women) since inception from across the states of Rajasthan, Haryana, Uttar Pradesh, Bihar and Madhya Pradesh. Out of these trainees: 10,763 trainees have successfully secured placements in various corporate entities across the industry, including TCI group companies. In FY 2023-24, 1,828 trainees were enrolled for these courses.

Trade Skill Development Center

As part of our skill development mission to address the increasing demand for skilled manpower across sectors and bridge the gap between skill demand and supply in India, TCI Foundation has established the Skill Development Center at Village Jamhar, District Khunti in Jharkhand.

IT Skilling Center

In association with the NIIT Foundation, TCI Foundation has initiated a program aimed at providing computer education and training to underprivileged youth. This comprehensive initiative encompasses the training and certification of computer education teachers, as well as preassessments, post-assessments and certification of enrolled students. The program ensures that both teachers and students are equipped with the latest competitive modules, proven effective in the current industry requirements. Upon successful completion of the course, students receive certification from the NIIT Foundation, significantly enhancing their prospects for placement opportunities across the country. In FY 2023-24, three batches of 79 students have completed their training while the 4th batch of 20 students is in progress. To date since inception, a total of 352 students (243 boys and 109 girls) have availed benefits under this program.

PROMOTING ROAD SAFETY THROUGH TCI SAFE SAFAR

In alignment with the National Road Safety Mission aimed at enhancing road safety across India, TCI has been actively conducting the TCI Safe Safar campaign for the past five years. This initiative operates with a three-fold objective:

o Driving Awareness for Road Safety: Through various activities and campaigns, we strive to raise awareness about road safety measures among the drivers

o Social Upliftment: We are committed to sensitizing, coaching and empowering the driver community, thereby contributing to their social upliftment & respect for driving as a profession

o Grassroots Implementation of ESG in the logistics domain: By integrating Environmental, Social and Governance (ESG) principles into the logistics industry at grassroots levels, we aim to promote sustainable practices & respect for driving as a profession

Through our engaging and entertaining Nukkad Nataks, TCI Safe Safar aims to cultivate environmental consciousness among drivers. We educate them about the importance of avoiding single-use plastic, transitioning to alternative energy sources, obtaining insurance coverage and embracing digital lifestyles. By sensitizing the transport community to the realities of climate change, we encourage them to pledge towards building a sustainable future.

This initiative receives widespread support & encouragement from various corporates and associations in the form of grants and letters of appreciation. We have garnered several awards and accolades, including:

o James Tye Award at the International Safety Awards by British Safety Council (FY 2019-20)

o FICCI Road Safety Awards in the category Innovative Educational Program in Road Safety (FY 2018-19)

o Innovation in Sustainability & Corporate Social Responsibility at AIMAs 8^th

EDUCATION FOR ALL

Education is the foundational pillar of any strong society and progressive nation. It enables the citizens to lead prosperous and fulfilling lives, in addition to furthering the overall development of the society. Recognizing this, TCI directs its efforts towards the development of schools in remote areas, aiming to educate and empower young minds. Through this initiative, TCI contributes to nurturing the future leaders of tomorrow and lays the foundation of a resilient, advanced and self-sufficient society.

TCI DAV School

Affiliated with CBSE, TCI DAV Public School in Jharkhand endeavors to make education accessible and affordable for tribal communities. Through technical collaboration with the DAV College Management Committee Delhi, the school prioritizes holistic development of students in academics, sports and culture with a slew of state-of-the- art, modern facility featuring:

o Modern classroom furniture o Smartboards

o New PA system & CCTV for the safety of the students and staff I o Upgrades in Science Labs : o Sports Equipment&Junior Playschool lo Computer Lab for digital literacy O New School Bus

1 o Upskilling Centre for Rural Empowerment

Total number of students in FY 2023-24 were 487, comprising 213 girls and 274 boys. The following new facilities were added during the same period:

o New swings have been provided in school o A medical room has been created o We have received permission to raise the NCC wing o Solar panels costing approximately ? 7 Lakhs have been installed in the school

o Many students of various age categories won medals at cluster and state level D.A.V Sports tournaments o To continue encouraging the students, new sports equipment including jerseys and tracksuits worth ? 2.50 Lakhs were provided to the school

Transystem Educational Grant-in-Aid

The Transystem Educational Grant-in-Aid has been established to provide financial assistance to students who demonstrate excellence in academics or sports and come from economically disadvantaged backgrounds. This grant is specifically aimed at students enrolled in TCI-DAV School located in Jamhar District, Khunti, Jharkhand.

BUILDING A HEALTHIER SOCIETY: TCI FOUNDATION

TCI prioritizes the well-being of communities across India. Beyond immediate medical needs, we deliver essential healthcare services and champion vital research initiatives. Notably, our focus extends to the health and well-being of long-distance truck drivers - a critical demographic needing essential healthcare services.

Project Kavach

To address general health and medical care needs of long-distance truck drivers specifically with respect to communicable, non-communicable diseases, occupational ailments and vision corrections; three health centers and three vision centers have been established on the national highways adjacent to Belagavi (Karnataka), Krishnagiri (Tamil Nadu) and Bilaspur (Haryana).

Khushi Clinics

Government Project for Targeted Interventions on Bridge Population & Composite Populations

TCI Foundation, in close collaboration with the Government of India, is dedicated to improving the health and well-being of underpriviledged composite populations across India. We recognize that these communities face a heightened risk of illness due to their close proximity to high-risk groups. This commitment is reflected in the vital services provided by Khushi clinics. Located in Chandigarh, Ludhiana, Haridwar, Rudrapur, Jalgaon, Haldia, Delhi, Raebareli, and Manipuri, these clinics have delivered healthcare to over 421,123 individuals.

Project in Association with GAIL

We understand that driver healthcare is not merely a one-time intervention but an ongoing endeavor to enhance their quality of life and address the underlying socioeconomic factors contributing to poor health. TCI Foundation has established Khushi Clinic in collaboration with PSU-GAIL at the GAIL plant in Uttar Pradesh. The clinic renders medical services to the truckers (drivers and helpers) visiting the GAIL plant daily. In addition, the clinic also serves the village communities around the plant by conducting medical camps in respective villages. This initiative has served 13,981 truckers (drivers and helpers) this fiscal.

Project GUARD

In collaboration with USAID, TCI Foundation has undertaken Project Guard to provide COVID-19 vaccinations to marginalized sections of society; coordinating closely with State Governments Health Departments, District Health Authorities and District Administrations to ensure effective coordination and implementation. During FY 2023-24, 1.6 million individuals have been vaccinated and awareness has been created among more than 5 million individuals across 18 states and 105 districts under this program.

TCI-Jaipur Foot & Rehabilitation Center

Supported by the renowned prosthetic manufacturer Jaipur Foot, TCI Foundation has established the TCI Jaipur Foot & Rehabilitation Center in Patna, operating under the UN theme of Break Barriers, Open Doors. Since the fiscal year 2007-08, the center has been dedicated to offering free clinical examinations, prostheses and physical aids to underprivileged individuals with disabilities across the country. Equipped with a mobile prosthesis workshop housed in a specially designed ambulance, the center extends its charitable services to inaccessible areas, ensuring that assistance reaches the doorstep of those in need. Beneficiaries served this fiscal include a total of 1,442 individuals including 891 for artificial limbs, 219 for calipers and 32 crutches plus camps.

Project Saksham

o Developed nine training modules for nine cadres of health staff in India

o Developed a cadre of 283 malaria elimination specialists and 36 lab-technicians for nationwide malaria elimination o Imparted technical and medical training on malaria elimination to 13,296 ASHAs, 180 Lab Technicians, 23 Entomologists and 169 Medical Officers at NCVBDC o Procured and installed 582 electronic microscopes at center, state and district levels

o Technically supported the national malaria elimination program in 10 high malaria endemic states o Disseminated integrated awareness on malaria and COVID-19 using IEC & BCC modalities across 12 states, 1,307 sub-centers and 6,535 villages in India

With successful completion as on 31st March 2024, project Saksham aimed to strengthen nationwide Malaria Elimination Program across 36 states and UTs of India in coordination with the Ministry of Health and Family Welfare (MoHFW). Milestone achievements under this project included:

o Establishment state-of-the-art National Training Centre at the National Center for Vector Borne Diseases Control (NCVBDC) under MoHFW

o Establishment of Regional Training Centers in 12 regions including Delhi, Ahmedabad, Bangalore, Chennai, Chandigarh, Hyderabad, Jaipur, Imphal, Kolkata, Lucknow, Patna, Shillong & Bhuvneshwar

o Strengthened National Reference Laboratory at NCVBDC MoHFW.

o Strengthened National Entomology Laboratory at NCVBDC MoHFW.

o Developed a unique e-Learning Management System for NCVBDC MoHFW by taking the services of MeITY NeGD Government of India

NURTURING TALENT: URMILA SPORTS ACADEMY

Through our initiative Shourya, we have established the Urmila Sports Academy in Nyangal Bari village, Rajgarh Tehsil, Churu District, Rajasthan, with the primary aim of nurturing Indian talent in the realm of sports. Affiliated with the Rajasthan State Government, Khelo India and the Sports Authority of India Ministry of Youth Affairs and Sports, the academy is dedicated to providing training to aspiring and established athletes in disciplines such as wrestling, weightlifting and boxing.

With the guidance of qualified coaches, the academy has already witnessed remarkable achievements. Notably, the talented sports persons trained at the academy have proudly unfurled the national flag 48 times in various competitions and secured 30 Gold Medals, nine Silver Medals and six Bronze Medals in Weightlifting; one Gold Medal in Wrestling; and one Silver Medal and one Bronze Medal in Boxing in FY 2023-24. This accomplishment stands as a testament to the academys commitment to excellence and the development of sporting talent in the region.

GOVERNANCE:

ETHICAL FOUNDATIONS WITH INTEGRITY AT THE CORE

TCI has built its outstanding legacy of stellar logistical operations and solutions catering to the needs of various industries and segments of the society for more than six decades basis its core values of Trust, Empathy, Dependability and Care for the Communities. In a fastpaced and ever-changing world, these values have remained constant, serving as our compass in navigating through the complexities of the logistics industry.

At TCI, we understand the importance of balancing the needs of all stakeholders - from our employees and customers to our shareholders and the communities in which we operate. This delicate balance is what drives us to create a workplace that fosters growth, innovation and inclusivity. We believe that every individual, regardless of their role within the organization, should feel valued, respected and empowered to reach their full potential. For the business to grow as a wholesome part of the nation, it is imperative to install a strong sense of transparency and accountability within the organizational system that will not only serve, balance and enhance the interests of different stakeholder groups but withstand the business during challenging times to emerge as a leader. Our business processes support accountability and responsibility towards the social, regulatory & market dynamics. We believe in transparent and impeccable corporate governance has been the corner stone of our stability, profitability and desired growth outcomes. The importance of Governance has further intensified, owing to ever-growing competition in businesses across all economic sectors, both at National & International levels.

CORPORATE GOVERNANCE FRAMEWORK

o Strengthening Independence, transparency & diversity of the Board of Directors

o Rendering our services in compliance with current legislation and following our values o Conducting Business with ethics & transparency o Maintaining the independence of auditors o Business Continuity Planning o Internal Financial Controls o Risk Management & Diversification o Maintaining a balance between economic & social goals

RESPECT FOR HUMAN RIGHTS

o Equitable treatment and rights of shareholders. o Maintaining ethical culture within & outside of the organization

o Development of a long-term performance-linked remuneration system o Sustainable supplier relations

GOVERNANCE GOALS AT TCI*

With our Comprehensive Corporate Governance Framework, we have set up the following governance goals for the coming fiscals:

o Foster a diverse and accountable governance model o Diversity in leadership positions o Strict Adherence to the Code of Conduct o Maintain Data and cybersecurity

* Refer Corporate Governance Report for more details,

ENHANCING TRANSPARENCY THROUGH TECH-ADOPTION

o Decision Support Systems o IT Infrastructure & Database for improved services o Cybersecurity & Business continuity o Configuration & Integration for Tracking & Visibility o Business Processes for Operational Excellence o Tools for nurturing value-based relationships

RISK MANAGEMENT FRAMEWORK

TCI acknowledges the critical importance of effective risk management in achieving its strategic business objectives. The Company has established a mature enterprise risk management framework, governed by a Risk Management Committee (RMC) established by the Board of Directors. This framework employs a structured process, seamlessly integrating risk management into TCIs core business operations. The Board-approved risk management policy outlines its key objectives, including:

o Identification, assessment, quantification, mitigation, minimization and management of key risks

o Establishment of a framework for the Companys risk management process and ensuring its effective implementation

o Development of risk policies and strategies for the timely evaluation, reporting and monitoring of key business risks

TCI leverages comprehensive internal audits and a corporate risk assessment and mitigation system to proactively address potential risks. Risk evaluation and management are continuous processes within the organization. At the beginning of each fiscal year, a comprehensive annual survey is conducted, encompassing input from all business units and departmental leaders. This survey identifies and prioritizes the most significant risks based on their potential impact and likelihood of occurrence. Risks are evaluated according to a standardized matrix considering both severity and likelihood.

Mitigation steps are planned and executed based on systematic data inputs to determine the residual score, generating a risk heatmap. This information is recorded in the risk register and a regular review framework is established. Risks at TCI are categorized under -

o Corporate risks (such as HR, Compliance, IT & Cybersecurity, Brand & Reputation, Dynamic Business Conditions, and Natural Calamities) and,

The updated risk register and risk heatmap are presented to the Risk Management Committee of the Board. It reviews them along with the management and approves the same after deliberation. This exercise is conducted twice during the financial year.

TCI adopts a balanced approach to risk management, prioritizing the mitigation of risks to an acceptable level within established tolerances. This approach safeguards TCIs reputation and brand while simultaneously supporting the achievement of both operational and strategic goals. The Board of Directors remains confident that there are no currently identified risks that pose a material threat to the Companys continued existence.

o Division-specific risks for Freight, SCS, and Seaways divisions

INTERNAL FINANCIAL CONTROLS —

BUSINESS CONTINUITY FRAMEWORK

CAUTIONARY STATEMENT •

Statements in this Report describing the Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable laws and regulations that involve risks and uncertainties. Such statements represent the intention of the management and the efforts being put into place by them to achieve certain goals. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances. Therefore, the investors are requested to make their independent assessments and judgments by considering all relevant factors before making any investment decision.

TCI maintains a comprehensive Internal Financial Control (ICFR) framework aligned with the requirements of the Companies Act, 2013. These controls are commensurate with our size and the nature of our operations, ensuring they provide reasonable assurance for:

o Recording and providing reliable financial and operational information.

o Complying with applicable statutes.

o Safeguarding assets from unauthorized use.

o Executing transactions with proper authorization.

o Ensuring compliance with corporate policies.

Our framework encompasses a wide range of well-established and documented policies and procedures, both manual and automated. This includes sub-delegation of powers for financial and operational functions, and the use of IT applications like ERP systems to approve and record transactions.

We adhere to established guidelines, processes and structures to implement these controls across the organization, ensuring

In todays complex and fast-changing global risk landscape, characterized by technological, geopolitical, societal, economic and environmental factors, a companys reputation hinges on its resilience and its ability to manage business disruptions. TCI prides itself in having a robust business continuity and disaster management framework, overseen by the Audit and Risk function, headed by the Chief Audit & Risk Officer. We adhere to a comprehensive Business Continuity Plan (BCP) meticulously designed to minimize the impact of disruptions at every level.

Our BCP plan is crafted to ensure the seamless continuity of business operations while prioritizing the safety of our employees and organizational assets, all while meeting the expectations of our customers. It includes detailed risk assessments, contingency plans and response procedures for a range of scenarios, such as equipment failures, supply chain interruptions, natural disasters or industrial accidents. It outlines clear responsibilities for personnel and establishes communication protocols to ensure timely dissemination of information. A dedicated team oversees the maintenance of our business continuity plans, conducts

efficient and orderly business conduct. Our control systems are deemed adequate and are functioning effectively, with appropriate review and control mechanisms in place.

The Companys system of continuous internal audits, conducted by the internal audit team headed by the Chief Internal Auditor, ensures that laid down processes and practices are followed and complied with. Financial discipline is emphasized at all levels of the business. Regular reviews of the framework are conducted by management, internal auditors and statutory auditors. Findings from these reviews, along with the results of periodic internal audits, are presented to the Audit Committee for evaluation and action. Based on this comprehensive review process, the framework is strengthened to ensure its continued adequacy and effectiveness in safeguarding our internal financial controls. Our overall growth continues to put pressure on our internal systems and processes. Therefore, its crucial that these systems continually adapt to keep pace with our business growth, and that our policies remain relevant in the ever-changing business landscape.

regular drills and proactively identifies potential threats and risks that may impede business continuity.

To facilitate swift recovery from disruptions, we conduct thorough business impact analyses to identify critical activities requiring continuous monitoring and restoration within defined timeframes. Additionally, alternative arrangements and Standard Operating Procedures (SOPs) are established to ensure the uninterrupted continuation of critical activities across verticals in the event of any disruption.

Our team also oversees IT Disaster Recovery (ITDR) efforts, including data recovery, safety protocols, and access management in the event of unforeseen disasters. Continuous training initiatives are implemented for all employees and stakeholders to ensure a seamless resumption of operations in the face of disruptions. Furthermore, we have implemented Disaster Recovery (DR) capabilities for critical infrastructure and bolstered data leakage prevention measures. This comprehensive framework seamlessly integrates into our Enterprise Risk Management program.