UFO Moviez India Ltd Management Discussions

Presented below is an analysis of the performance of theCompany for the Financial Year ended March 31, 2024 andthe outlook for the Financial Year 2024-25. UFO Moviez IndiaLimited and its subsidiaries have been collectively referred to as"UFO or Company".

I. Overview of the Indian Economy

In 2023, the global economy faced both resilience and challenges. Despite events like collapse of Silicon Valley Bank and the U.S. hitting its debt ceiling, and ongoing geopolitical conflicts, economic activity continued to grow, albeit at a slower pace. Factors such as high inflation, monetary policy tightening, and rising interest rates contributed to this slowdown. Overall, global growth was 3.23% in 2023.

Amidst these challenges, the Indian economy exhibited remarkable resilience and emerged as one of the fastest-growing major economies globally. With a growth rate of 7.8% in 2023 (FY24), the country continued to attract investors, highlighting its capacity for large-scale operations, a vast pool of skilled professionals, and prowess in technological and innovative advancements.

While the International Monetary Fund (IMF) projected the global economy to grow at 3.2% in 2024 and 2025, slightly below the historical annual average of 3.8% (2000-19), India is projected to grow at 6.8% in 2024 (FY25) and 6.5% in 2025 (FY26), contributing approximately 16% of the global growth. Besides IMF, the Asian Development Bank (ADB) have forecasted Indias GDP growth to 7% for FY25, up from its earlier forecast of 6.7%. India is also projected to be the driver for global growth in the foreseeable future.

These forecasts indicates Indias economic prospect to be bright, laying the groundwork for further acceleration in the coming years due to buoyant domestic demand, rising working age population, robust public and private investments and a strong services sector.

Sources: IMF Reports 2024, ADB Bank data

II. Overview of the Indian Film Entertainment Industry

The Indian Film Entertainment Industry experienced approximately 15% growth, reaching a revenue of Rs 19,700 Crore, up from Rs 17,200 Crore in the previous year and Rs 19,100 Crore in pre-pandemic CY19. In CY23, India surpassed its pre-pandemic peak in box office collections, while other significant markets like the U.S., Japan, China, and South Korea remained below their respective pre- COVID levels. Domestic Theatrical revenue, amounting to Rs 12,000 Crore, was the largest contributor to the Indian Film Entertainment Industry, showing a 14% growth over Rs 10,500 Crore revenue in 2022 and exceeding the prepandemic figures of Rs 11,520 Crore in 2019. This surge was to an extent fueled by the success of Hindi movies.

Out of Rs 12,000 Crore of domestic theatrical revenue, Hindi films contributed Rs 5,300 Crore, marking a 51% growth compared to the CY22 revenue of Rs 3,500 crore and a 7% increase from CY19 revenue of Rs 4,954 crore. While the contribution from Southern films Rs 5,200 Crore remained steady on YOY basis, though reflecting a ~33% growth from CY19 revenue of Rs 3,900 crore.

Throughout the year, the industry witnessed a total of 2,079 movie releases across various languages and versions, showing 12% increase from CY22. Southern languages had 1,061 releases, followed by Hindi at 215, and other languages at 803. Of these releases, 36 movies achieved box office collections exceeding Rs 100 Crore, with 17 Hindi films among them.

During CY23, the count of direct-to-digital releases (excluding dubbed versions) dipped to 57 from 105 in CY22. Whereas, the number of theatre first and subsequently on OTT releases (excluding dubbed versions) have gone up from 217 in CY22 to 359 in CY23, signaling a shift towards conducive growth of theatrical business. This emphasizes that success of the theatrical release helps in establishing the value of the movie, thereby creating equity which results in better revenue monetization of rights such as satellite, music, digital, etc.

Sources: FICCI Frames 2024

III. Overview of the Indian Advertisement Industry

The Indian advertising industry witnessed a modest growth of 7% in CY23, surpassing Rs 1.1 Lac Crore in total ad spends. Traditional media platforms, such as Television, Print, Radio, Cinema, and Out of Home advertising, contributed 48% of the total advertising spends, with digital accounting for the remaining 52%. The industry shows promising signs of further expansion, with projections indicating a 10% growth in CY24 and a compound annual growth rate (CAGR) of 9% until CY26. Factors such as increasing per capita income, rural outreach, expanding middle-class demographics, and a rising base of SME advertisers are expected to drive this growth.

In-cinema advertising, which comprised 0.9% of total traditional advertising in 2022, experienced an increase, reaching a ~1.4% share in 2023. This segment generated revenue of Rs 750 crore in CY23, showcasing over 65% growth from Rs 450 crore in CY22, and nearly reaching prepandemic revenue levels of CY19. This growth was largely driven by successful content releases across languages.

Looking ahead, the in-cinema advertising segment is expected to continue its growth momentum, supported by anticipated increase in footfalls and a steady slate of theatrical releases.

Sources: FICCI Frames 2024

IV. Opportunities and Initiatives Screen Growth

Due to pandemic, the Indian film exhibition industry was severely impacted, resulting in a closure of numerous theaters, temporarily or permanently, over the last few years. However, in 2023, India witnessed an increase in the number of movie screens for the first time in five years, marking a milestone in post-pandemic recovery. The total number of screens grew by ~4% to 9,742 screens compared to 9,382 screens in 2022, surpassing prepandemic levels of 9,527 screens in 2019.

However, the screen density in India continues to be significantly lower than other countries, with less than 7 screens per million population, compared to 132 per million in the USA and 57 per million in China. As per an internal exercise, there are over 16,500 PIN Codes in India without any cinema screens, offering a great opportunity to add new screens and make cinemas more accessible across the country.

UFO is working towards bridging this gap through its wholly owned subsidiary, Nova Cinemaz Private Limited (NOVA), which aims to create entertainment and utility centers (EUC) in semi-urban and rural areas of India. These centers will offer a blend of cinema screens, retail outlets, cafeterias, digital utilities, and various other services, all conveniently housed under one roof. The company intends to operationalize few EUCs in FY25.

Looking ahead, the cinema industry is poised for further growth, driven by initiatives such as investments in affordable cinema infrastructure including EUC and the inclusion of modern cinema complexes in smart city projects. With increasing disposable income and lack of affordable out-of-home entertainment avenues, cinema exhibition is poised for growth in coming years.

UFO Moviez is well-positioned to capitalize on these opportunities, further expanding its service offerings to growing screens and solidifying its position in the market.

Advertisement Inventory Utilization

UFOs in-cinema advertising business has substantial headroom/opportunity for growth since the average inventory utilization of UFO is at ~4.2 minutes/screen/ show in FY24 as against average availability of around 20 minutes. The current utilization of ~4.2 minutes/screen/ show is significantly lower than the minutes utilized by major multiplex chains. With audiences returning to movie theaters, and a steady flow of content, the demand for cinema advertising is expected to increase.

Distribution Business

As reported earlier, UFO continues its role in the film distribution landscape. UFO has helped South and other regional movies to get a wider release across India, thereby providing steady flow of content to the screens especially

in Non-South markets. With 24 regional offices and a large network of screens, UFOs Pan-India presence makes it easier to identify potential markets for such movies and ensure their widespread release.

Till date, UFO had distributed over 140 movies in different circuits and markets. Some of the prominent movies distributed during FY24 includes "Jailer" (Hindi, Tamil, and Telugu), "Eagle" (Telugu and Hindi), "Garudan" (Malayalam), "Bhagavanth Kesari" (Telugu) among others.

Operating Performance

In-Cinema Advertising Business

UFO is a leading provider of in-cinema advertising having advertising rights in 3,859 screens (including screens of TSR films) as of March 31, 2024, comprising of 2,492 PRIME Screens (multiplexes and Hollywood release centers) and 1,367 POPULAR Screens (standalone screens and mass appeal screens) with presence across 1,410 cities and towns across India. Its high-impact advertising platform offers advertisers an opportunity to connect with a captive audience in both Premium and Mass Market segments.

On January 23, 2024, UFO announced a tie up with TSR Films, securing exclusive advertising screen rights across TSRs extensive network of over 400 screens. This collaboration, is expected to enhance the product mix of the company and strengthen its offerings in lucrative South-Indian Markets.

UFOs In-cinema advertising platform has benefited fragmented exhibitors as they now effectively monetize their advertisement inventory through UFO, which they were earlier unable to do due to their limited scale and reach.

In addition to the benefits of being a high impactadvertising platform, the advantages of using UFOs incinema advertising platform are:

• Targeted advertising - reaching desired demographics

• High levels of transparency - data logs of the actual advertisements played

• Remote capability - allows for last minute scheduling and content changes

• Advanced technology - enables multi-lingual support and subtitling,

Thereby making it a highly effective means of marketing.

Following the pandemic, advertisers approached in-cinema advertising cautiously until last year. However, towards the latter part of FY23, the situation improved as the mix of successful Hindi and Regional movie releases prompted advertisers to increase their spends towards in-cinema advertisement, leading to an uptick in advertisement revenues.

In FY24, UFO generated advertisement revenue of Rs 12,202.86 Lacs, as compared to the previous years revenue of Rs 7,549.97 Lacs and Rs 15,469.80 Lacs in FY20. The corporate advertisement revenue amounted to Rs 7,965.96 Lacs, as compared to the previous years revenue of Rs 5,673.04 Lacs and Rs 9,723.70 Lacs in FY20, staging 82% recovery compared to FY20 levels. However, challenges persisted in government advertisement revenue, particularly with reduced central government spending across mediums though the state governments and PSUs have started allocating budgets towards incinema advertising. The government advertisement revenue amounted to Rs 3,197.67 Lacs in FY24, compared to the previous years revenue of Rs 1,729.50 Lacs and Rs 5,086.70 Lacs in FY20.

Additionally, Caravan, the companys mobile talkies venture, secured a rate contract agreement in the month of July for empanelment with the Central Bureau of Communications, Ministry of Information and Broadcasting. After the empanelment, it successfully executed a few campaigns in the current year. The company is optimistic about growth of this vertical in coming years.

Overall, the in-cinema advertising business during the year demonstrated notable growth and stability.

Theatrical Business

Reflecting upon the theatrical business in FY24, the industry witnessed a mix of film releases across languages and genres. The year commenced with big-budget movies like "Kisi Ka Bhai Kisi Ki Jaan," "PS 2," "Satya Prem Ki Katha," and "Adipurush," alongside regional successessuch as "Bushirt T-shirt" (Gujarati), "Carry on Jatta 3" (Punjabi), and "Baipan Bhaari Deva" (Marathi), as well as sleeper hits like "The Kerala Story" and "Zara Hatke Zara Bachke" in the first quarter. The second quarter continued the trend with blockbuster hits like "Rocky and Rani ki Prem Kahani," "Jailer", "OMG 2," "Gadar 2," and "Jawan".

The second half of the financial year started with the distraction of the cricket world cup, accompanied by releases like "Mission Raniganj" and "Ganpath", which failed to leave a mark at the box office. However, films like "12th Fail," "Leo," and "Tiger 3" performed well. December proved to be a game-changer, witnessing a surge in successful releases like "Animal," "Sam Bahadur," "Hi Nanna," "Dunki," and "Salaar," marking the best quarter of the year. The final quarter also saw notable successes like "Hanuman", "Fighter", "Shaitaan" along with "Teri Baaton Mein Aisa Uljha Jiya", "Article 370", "The Crew" and sleeper hits like "Madgaon Express" and "Manjummel Boys".

While the year witnessed many successful releases, it also faced some setbacks. Several big-budget movies underperformed, including "Kisi Ka Bhai Kisi Ki Jaan," "Adipurush," "Tiger 3," "Dunki," and "Yodha." Whereas, titles like "Ghoomer," "The Great Indian Family," "The Vaccine War," "Ganapath," "Tejas," "Merry Christmas," and "Main Atal Hoon," failed to make an impact.

For the current financial year, the companys theatrical revenue, Content Delivery Charges (CDC), amounts to Rs 8,642.28 Lacs, compared to Rs 8,794.92 Lacs in FY23. Overall, FY24 presented a mixed bag of content, culminating in a recovery of 72% compared to prepandemic levels.

Revenue Analysis

UFO receives revenues primarily from three sets of stakeholders. i.e.

(i) Advertisers, for in-cinema advertising,

(ii) Producers and Distributors, for secured delivery and screening of movies (Content Delivery Charges - CDC / VPF) and

(iii) Exhibitors, for equipment rentals and sales of digital cinema equipment and consumables.

Particulars	31-Mar-24 Rs in Lacs	31-Mar-23 Rs in Lacs	Growth Rs in Lacs	% Growth
A. Revenue from operations
I. Advertisement revenue	12,202.86	7,549.97	4,652.89	61.63%
II. Revenue from Content Owners	11,778.57	13,312.84	-1,534.27	-11.52%
Content Delivery Charges (CDC)	8,642.28	8,794.92	-152.64	-1.74%
VPF Service Revenue	1,494.35	2,429.35	-935.00	-38.49%
Digitisation Income	1,641.94	2,088.57	-446.63	-21.38%
III. Revenue from Exhibitors	14,543.07	14,419.24	123.83	0.86%
Lease rental income	5,722.86	5,468.95	253.91	4.64%
Sale of Products	8,820.21	8,950.29	-130.08	-1.45%
IV. Other Operating Revenue	2,299.43	4,309.87	-2,010.44	-46.65%
A. Revenue from operations (I to IV)	40,823.93	39,591.92	1,232.01	3.11%
B. Other income	183.89	183.40	0.49	0.27%
Total Income (A+B)	41,007.82	39,775.32	1,232.50	3.10%

Expense Details

The following table gives an overview of the consolidated expenses of UFO.

Particulars	31-Mar-24	31-Mar-23	Growth	% Growth
	Rs in Lacs	Rs in Lacs	Rs in Lacs
Operating direct costs	17,653.97	18,826.65	-1,172.68	-6.23%
Employee benefit expenses	9,231.50	9,843.83	-612.33	-6.22%
Other expenses	7,362.40	7,716.77	-354.37	-4.59%
Total Expenses	34,247.87	36,387.24	-2,139.37	-5.88%

Operating direct costs

Operating direct costs in financial year ended March 31, 2024 decreased by Rs 1,172.68 Lacs to Rs 17,653.97 Lacs from Rs 18,826.65 Lacs in financial year ended March 31, 2023 primarily on account of (i) decrease in distribution expenses by Rs 1,240.88 as the revenue recognized in FY23 was on gross basis and following the contextual changes, it is accounted on net basis in FY24. (ii) Advertisement revenue share paid to exhibitors was higher by Rs 923.04 Lacs from Rs 4,450.39 Lacs to Rs 5,373.43 Lacs. (iii) decrease in content delivery charges (CDC/VPF) sharing by Rs 669.07 Lacs from Rs 1,685.09 Lacs during the financial year ended March 31, 2023 to Rs 1,016.02 Lacs during the financial year ended March 31, 2024. (iv) Decrease in repair and maintenance by Rs 107.75 Lacs from Rs 2,196.45 Lacs during the financial year ended March 31,2023 to Rs 2,088.70 Lacs during the financial year ended March 31, 2024.

Employee benefit expenses

Employee benefit expenses during the financial year ended March 31, 2024 was lower by Rs 612.33 Lacs to Rs 9,231.50 Lacs in financial year ended March 31,2024 from Rs 9,843.83 Lacs in financial year ended March 31, 2023.

Other expenses

Other expenses in financial year ended March 31, 2024 were lower by Rs 354.37 Lacs to Rs 7,362.40 Lacs from Rs 7,716.77 Lacs in financial year ended March 31, 2023 primarily on account of (I) decrease in legal, professional and consultancy charges by Rs 837.21 Lacs from Rs 2,523.68 Lacs during the financial year ended March 31, 2023 to Rs 1,686.47 Lacs during the financial year ended March

31, 2024, (ii) commission on advertisement revenue was higher by Rs 990.92 Lacs from Rs 857.94 Lacs during the financial year ended March 31, 2023 to Rs 1,848.86 Lacs during the financial year ended March 31, 2024, (iii) decrease in freight and forwarding charges by Rs 105.41 Lacs from Rs 754.35 Lacs during the financial year ended March 31, 2023 to Rs 648.94 Lacs during the financial year ended March 31, 2024, (iv) lower commission on other revenue by Rs 117.97 Lacs from Rs 152.26 Lacs during the financial year ended March 31,2023 to Rs 34.28 Lacs during the financial year ended March 31, 2024, (v) onetime loan write off of Rs 266.34 Lacs during the financial year ended March 31, 2023 contributed to other expenses.

Earnings before interest, tax, depreciation and amortization (EBITDA)

Consolidated EBITDA stood at Rs 6,759.95 Lacs in the financial year ended March 31, 2024 compared to Rs 3,388.08 Lacs in the financial year ended March 31, 2023.

Profit/ (Loss) before tax

Consolidated profit/ (loss) before tax stood at Rs 2,269.83 Lacs in the financial year ended March 31, 2024 compared to Rs (1,447.21) Lacs in the financial year ended March 31, 2023.

Profit/ (Loss) for the year attributable to equity shareholders of UFO

Consolidated profit/ (Loss) for the year attributable to equity shareholders of UFO stood at Rs 1,636.04 Lacs in the financial year ended March 31,2024 compared to Rs (1,320.82) Lacs in the financial year ended March 31, 2023.

Key Financial Ratios

Particulars (Consolidated)	Unit	31-Mar-24	31-Mar-23
Debt Equity Ratio	Times (x)	0.18	0.30
EBITDA Margin	Percentage (%)	16.48	8.50
Net Profit Margin	Percentage (%)	3.99	(3.30)
Interest Coverage Ratio	Times (x)	3.81	(2.15)
Inventory Turnover Ratio	Days	32.93	43.68
Debtors Turnover Ratio	Days	72.50	46.24
Current Ratio	Times (x)	1.69	1.03

In accordance with the SEBI (Listing Obligations and Disclosures Requirements 2018) (Amendment) Regulation 2018, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios.

Explanation for ratios where there has been a change of 25% or more from March 31,2023 to March 31, 2024:

The EBITDA Margin, Net Profit Margin, Interest Coverage Ratio and Inventory Turnover Ratio have improved on account of overall better performance, which has led to increase in revenues and improved profitability at EBITDA level.

Debtors Turnover Ratio has increased primarily on the account of increase in revenues.

The increase in Current Ratio is primarily on account of receipt of Income Tax Refund.

Debt Equity Ratio has improved on account of repayment of loan and increased profitability.

The Companys consolidated Return on Net Worth stood at 5.69% in the financial year ended March 31, 2024 compared to (4.92%) in the financial year ended March 31, 2023. Return on Net Worth is calculated as Net Profit divided by Total Equity.

VI. Outlook

In the upcoming fiscal year, the film industry presents promising opportunities for growth and innovation, with Hindi cinema embracing mass-market storytelling and advanced technologies to enhance the cinematic experience for audiences. This, along with the rising per capita income and investments in affordable cinema infrastructure, sets the stage for expansion. Both film exhibition and advertising sectors are poised for growth, benefiting from these trends. Consequently, this creates a conducive environment for revenue generation for the company.

A consistent flow of diverse content across languages and the growing middle class, boost advertiser confidence. With advertising projected to grow at a healthy 9% CAGR over the next 3 Years till the end of 2026 and increasing spending from the growing SME advertiser base, UFO is well-positioned to seize emerging opportunities. Overall, the Companys performance is expected to improve as both the theatrical and advertising business revenues are expected to experience healthy growth.

Furthermore, the company is actively exploring opportunities in the distribution business and the exhibition business through its subsidiary, Nova Cinemaz Private Limited, to further strengthen its industry position. The exhibition business holds strong prospects in underserved semi-urban and rural markets, and Novas asset-light business model is favorably positioned to capitalize on this opportunity through strategic partnerships and diversified services.

With a solid foundation in place and the industrys recovery gaining momentum, the business of UFO Moviez India Limited is on track to deliver positive results, setting the stage for a successful/better tomorrow.

VII. Threats / Risks and Concerns

Any uncertainties in the macro-economic environment, changes in the advertising market, natural disasters, epidemics, pandemics, forced measures, etc. could impact UFOs performance. The duration of advertisements played and spending by advertisers is seasonal and episodic and reflects overall economic conditions, as well as the advertisers budgets and spending patterns. It is difficult to predict when these changes occur and whether they will have a transient impact or are long-term trends. These changes could be on account of increased competition from television, print, radio, major multiplex chains, cinema advertisement aggregators or new advertising platforms like digital, online, over-the-top (OTT) media services, etc. The advertisement performance could also be impacted by factors that could reduce viewership on the advertisement network, which could result from the release of movies on other media platforms/OTT along with or before its theatrical release, reduction in exclusive theatrical release windows, increase in the average cinema ticket prices as compared to other avenues of entertainment, lower disposable income on discretionary spending and decline in the gross box office collections. Box office collections could also be impacted by lower audience interest due to the quality of available movie content and the marketing efforts of movie producers. Any such reduction in viewership may affect the attractiveness of UFOs advertisement platform to advertisers. Advertisement spending is greatly influenced by the availability of a measurement metric and the outcomes of measurement of audiences on a media platform.

The COVID-19 pandemic has resulted in movies getting released on other platforms such as OTT due to the closure of social entertainment avenues like cinema screens. This could result in changes in release patterns such as simultaneous release of movies in Cinemas and OTT going forward and/or narrowing of the release window on OTT after theatrical release. There could also be a change in consumer behavior like increased consumption of new movies on OTT, if available, resulting in lower cinema footfalls and thereby impacting theatrical revenues and incinema advertisement spends.

VIII. Risk Management

Similar to any other business, UFO is exposed to various risks that can affect its operating performance, cash flows, financial performance and sustainability. In order to mitigate these risks and maintain a smooth flow of operations while complying with strict regulations, UFO has established a robust risk management framework that involves identifying, assessing, monitoring, and mitigating potential risks. Effective implementation of risk management strategies is vital to ensure the creation, protection, and enhancement of value for stakeholders and shareholders of the company. Additionally, UFOs risk management framework is regularly reviewed and updated to address emerging risks and changing market conditions, demonstrating the companys commitment to maintaining a sustainable business model.

Overall, UFO has emerged as an organization that has a strong focus on improving processes, reducing operational risks, enhances service quality and improving overall performance.

IX. Internal Controls

The Company has in place adequate controls, procedures and policies that ensure orderly and efficient conduct of its business, including adherence to its policies, safeguarding of its assets, prevention and detection of fraud and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information. Our internal control system is commensurate with the size, scale, and complexity of its operations. During the year, such controls were assessed and no reportable material weakness in the design or operations were observed.

UFO has engaged an independent firm of Chartered Accountants as its Internal Auditor. The scope of Internal Audit includes a review of the efficacy of business processes and a review of the procedures and policies in place as designed by the management across all functional areas and assessing the internal controls in all areas. Also, the Internal Audit findings are discussed with the process owners and corrective action is taken as necessary.

The Audit and Risk Management Committee reviews reports submitted by internal and statutory auditors and meets the auditors to ascertain, their views on the adequacy of the internal control system and apprises the Board of Directors from time to time.

Based on the recommendation of the Audit and Risk Management Committee, the Board of Directors have concluded that as of March 31, 2024, its internal financial controls were adequate and operating effectively. The same is also confirmed by auditors through their report on Internal Financial Control.

X. Human Resources and Industrial Relations

Human Resources efforts in FY24 were dedicated to nurturing talent, fostering a culture of inclusivity, and prioritizing employee well-being. In this pursuit, the primary focus remained on enhancing positive experiences for everyone. This guiding principle underpinned all our initiatives as we continued to build upon our strong foundation, emphasizing pillars of well-being, development, connectedness, and engagement.

To promote employee well-being, Health Check-up camps and virtual wellness workshops were organized across Mumbai and Bhiwandi offices, benefiting 224 employees. Periodic virtual wellness workshops with wellness partners were also arranged to equip employees with the right knowledge in their health journey. Additionally, development initiatives, including Executive Coaching and Learning Programs, reached 361 individuals, empowering them with essential skills. Also, following the successful launch of Lets Connect last year, the program was expanded with additional sessions, anonymous surveys and capsule conversation sessions, ensuring every voice was heard and valued. The Unwind employee engagement initiatives were more innovative than ever before with dedicated activities and events, focusing on collaboration, diversity appreciation, and fun.

As of March 31, 2024, our total employee strength, including group companies, stood at 541.

Looking ahead, the guiding principle remains "Empowerment Within." Leveraging eLearning, the company strives to equip colleagues with the necessary skills and tools to make a lasting impact. There is a committed to providing diverse learning opportunities for individual and organizational growth.

Material developments in human resources:

Recruitment and Selection:

UFO has a talented pool of employees and prides itself in providing effective and efficient services to its clients. The focused recruitment and selection process followed by the Company ensures that it hires the best talent for the job aligning with the overall goals of the organization. UFO takes pride in having a stable manpower strength coupled with a low rate of attrition that gives it a strategic advantage in realizing its long-term business objectives.

Training and Development:

The Company from time to time plans and arranges for the training of its employees for their overall development to achieve its long-term business objectives.

Industrial Relations:

UFO believes in maintaining cordial and friendly relations with its employees and resolves conflict, controversies and disputes, if any, between the employees and management in an amicable manner.

Cautionary Statement

Certain Statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations or predictions, estimates and others may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Important factors that could make a significant difference to the Companys operations are demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of their dates.

	For and on behalf of the Board of Directors
	Sanjay Gaikwad	Rajesh Mishra
Place: Mumbai	Managing Director	Executive Director & Group CEO
Date: May 23, 2024	DIN: 01001173	DIN: 00103157