Valiant Laboratories Ltd Management Discussions

Economy Overview

Global Economy¹

The global economy in CY 2024 exhibited steady advancement, demonstrating resilience amid persistent geopolitical and macroeconomic uncertainties. The global economy expanded by 3.3%, reflecting a year of steady recovery. This growth was primarily propelled by Emerging Market and Developing Economies (EMDEs), which posted a robust 4.3% growth, while advanced economies registered a more subdued 1.8%. In terms of market exchange rates, world output was estimated at $110.5 trillion, while in Purchasing Power Parity (PPP) terms, it reached $196.1 trillion, reflecting sustained economic resilience. Overall, these figures reaffirm the resilience of the global economy and also highlight recalibration of growth dynamics towards emerging economies, which continue to anchor the pace of worldwide expansion.

Global inflation continued its descent in CY 2024, with headline levels easing to 5.7%. Emerging and developing economies recorded inflation at 5.5%, showing signs of price stabilisation. Global trade volumes expanded despite uncertainties around US tariff interventions on crucial imports. While these measures introduced uncertainty in global trade, major economies adapted well, contributing to overall economic stability and moderate economic progress.

Outlook

Global economic growth is anticipated to moderate to 2.8% in CY 2025, before slightly improving to 3.0% in CY 2026, indicating a phase of cautious optimism as the world economy recalibrates to evolving adjustments. Emerging Markets and Developing Economies (EDMEs) are expected to remain the primary drivers of growth, with expansion forecasts of 3.7% in CY 2025 and 3.9% in CY 2026. This performance is envisioned to be supported by resilient domestic demand and investment momentum. Conversely, advanced economies are likely to expand at a more measured pace, with projections of 1.4% and 1.5% in the same period, as they continue to navigate the effects of tight monetary policies and shifting trade dynamics.

Global inflation is expected to ease further, declining to 4.3% in CY 2025 and to 3.6% in CY 2026, driven by stabilising commodity prices and improved supply chain conditions. Advanced economies are forecasted to record lower inflation levels compared to emerging markets.

Although geopolitical uncertainties persist as potential headwinds, government investments, fiscal discipline and improving market confidence will support economic stability and promote a more balanced and resilient global growth trajectory.

Indian Economy²

The economy of India registered a robust 6.5% growth in FY25, fuelled by steady domestic demand, favourable agricultural conditions and monsoon, a rebound in manufacturing industries and sustained growth in services sector. Government expenditure in infrastructure coupled with the sound financial health of banks and corporates provided additional economic momentum. Retail inflation declined to 4.6% in FY25, marking the third consecutive year of decline, reflecting the judicious monetary stance of the Reserve Bank of India and the governments focused interventions to provide price stability.

Outlook

Indias real GDP growth for FY26 is projected at 6.5%, with a slight improvement to 6.7% in FY27, assuming a normal monsoon and no major disruptions. This outlook is driven by steady rural demand, improving urban consumption and rising investments. Financing activities are expected to stay strong, supported by high-capacity utilisation, robust financial health of the banking sector and continued government spending on infrastructure. Inflation is expected to stay stable at around 4.0% in FY26, aligning with RBIs target. Moderating crude oil prices, balanced demand-supply dynamics and supportive policy measures are anticipated to keep inflationary pressures under control.

Industry Overview

Pharmaceutical Industry

Global³

The global pharmaceutical market, valued at an estimated $1.6 trillion in 2024, is foreseen to climb to $2.4 trillion by 2030, driven by an aging population, heightened incidence of chronic illnesses and advancements in biopharma. Growth will also be supported by personalised medicine and the expanding generics segment, which is set to grow from $460 billion to $790 billion as key patents expire and demand for affordable options rises. Artificial Intelligence (AI) and Machine Learning (ML) are reshaping the industry by expediting drug discovery and reducing time-to-market. Emerging economies like India are strengthening their role in global supply chains and exports. Despite regulatory hurdles and pricing pressures, the sectors adaptability and commitment to sustainability are expected to reinforce its long-term growth and its contribution to global healthcare.

Indian⁴

Indias pharmaceutical industry, valued at $58 billion in 2025, is the worlds largest producer of generic medicines, supplying 20% of global demand and 40% of the US market. With 3,000 drug companies, 10,000 manufacturing units and upwards of 650 USFDA-approved facilities, India is recognised as the ‘Pharmacy of the World. The sector has robust capabilities in manufacturing, R&D, biotechnology and complex generics and its exports reached $27 billion in 2023. It is expected to further grow to $120–130 billion by 2030 and $400–450 billion by 2047, driven by rising incidence of lifestyle diseases, personalised medicine and an aging population. Policy support through PLI schemes and FDI-friendly regulations is bolstering self-reliance and exports, while advancements in biotechnology, AI-driven drug discovery and telemedicine are opening new pathways to growth. With these developments, India aims to capture 5% of the global pharma market by 2030, further consolidating its role as a global healthcare leader.

India is the third-largest nation in terms of pharma exports by volume

Note: Data for relevant 6-digit India Trade Classification Harmonized System (ITC-HS) codes pertaining to active pharmaceutical ingredients (APIs), formulations, biosimilars, and vaccines taken based on India exports data to enable like-for-like comparison Source: Trade Map

Source: Bain & Company Report⁵

Growth Drivers⁶

Resilient Supply Networks: India is strengthening its domestic manufacturing ecosystem to reduce over-reliance on single-source suppliers. Initiatives such as Make in India and the PLI scheme are promoting self-sufficiency and are minimising risks associated with supply chain disruptions.

R&D Excellence and Quality Focus: The industry is intensifying investments in research and development to create advanced medicines, even as it adheres to rigorous global quality standards to remain competitive in international markets.

Evolution to High-value CDMO/CRO Models: Companies are progressively shifting from generics-centric approach to premium, innovative and specialised products. This is being facilitated by establishing partnerships with CDMOs and CROs for drug development and research services.

Regulatory Alignment and Simplification: Efforts are being made to streamline complex regulatory frameworks and expedite approval processes. This is enabling Indian pharmaceuticals to enter global markets in a prompt manner.

Surge in Pharmaceutical Investments: Rising private equity and venture capital interest is channelling significant funds into pharma and biotech research, propelling innovation and expansion in advanced medicines.

AI-Powered Digital Transformation: Artificial Intelligence and digital tools are being utilised to accelerate drug discovery, enhance efficiency in research and optimise large-scale pharmaceutical operations.

Sustainability and ESG Leadership: The industry is embedding eco-friendly and socially responsible practices to meet global ESG (Environmental, Social and Governance) standards, ensuring long-term sustainable growth.

Active Pharmaceuticals Ingredients (API) Industry

Global⁷

The global Active Pharmaceutical Ingredients (API) market is witnessing rapid expansion, fuelled by ascending healthcare demand, rising incidence of chronic diseases and sustained pharmaceutical innovation. Heightened R&D investments have improved the efficiency, quality and sustainability of API production, while regulatory reforms are accelerating approvals and broadening access to medicines. Valued at $232.13 billion in 2025, the market is expected to reach about USD 328.94 billion by 2030, growing at a 7.22% CAGR.

Key growth drivers include the rising demand for biologics and biosimilars to treat complex diseases, alongside the expansion of generic APIs with key drug patents expiring. The Asia-Pacific region, led by India and China, is emerging as a global production hub due to government support and healthcare investments. North America and Europe remain strong markets for APIs for advanced therapies and precision medicine.

With technological progress, supportive regulations and greater global collaboration, the API industry is set to play a crucial role in augmenting medicine accessibility and shaping sustainable healthcare worldwide.

Indian⁸

The Indian Active Pharmaceutical Ingredients (API) industry, estimated at $14.77 billion in 2025 and projected to reach $22.02 billion by 2030 at a CAGR of 8.31%. This trajectory of growth is expected to be facilitated by rising healthcare demand, the growing incidence of chronic ailments and strong global reliance on affordable, high-quality generics. Equipped with advanced manufacturing facilities, a skilled talent pool and robust R&D capabilities, India has cemented its position as a global leader. The nations critical role was highlighted during the COVID-19 pandemic when its contribution in the global supply chain came to the fore. India is also advancing in high-value APIs for treatments, such as oncology, cardiovascular and anti-infective diseases, strengthening both generic and specialty segments. Favourable policies, FDIs and the PLI scheme are further driving local production and reducing import dependence. In addition, investments in sustainable practices such as green chemistry, along with digital manufacturing, AI-driven drug discovery and biopharmaceutical innovations, are shaping the industrys future. With its focus on innovation, quality and sustainability, India is well-positioned to lead the next phase of global pharmaceutical growth.

Growth Drivers

Rising Chronic Diseases: The rising incidence of long-term illnesses, such as diabetes, cardiovascular disorders and cancer continues to fuel demand for specialised APIs in treatments.

Growth of Generic Medicines: The expiry of major drug patents is driving the production of affordable generic APIs worldwide.

Advancements in Biologics and Biotechnology: The surge in biologics and complex biologic drugs is creating a need for sophisticated API manufacturing, thereby expanding the market.

Government Support and Regulatory Reforms: Favourable policies and streamlined approvals help accelerate innovation and global market access.

Technological Innovations: Use of AI, digital tools and advanced manufacturing improves efficiency, quality and speeds up drug development.

Paracetamol Industry in India⁹

The paracetamol industry in India is a rapidly growing and vital part of the countrys pharmaceutical sector, valued at USD 1.36 billion in 2024 and projected to reach USD 1.75 billion by 2030, with a CAGR of 4.46% during 2025-2030. Globally, the paracetamol market volume was approximately 275 thousand tonnes in 2024 and is anticipated to grow at a CAGR of 4.53% through 2035,¹⁰ reflecting strong continued demand worldwide. In India, paracetamol is widely used for pain relief and fever reduction, driven by common ailments such as headaches, arthritis, and fevers, alongside a growing trend of self-medication with over-the-counter (OTC) products. The industrys growth is supported by expanding healthcare infrastructure, increased health awareness, rising disposable incomes, and better access to pharmacies and online health platforms, especially in tier II and III cities and rural areas. North India leads in production due to its well-developed manufacturing infrastructure and proximity to raw material suppliers, while technological advances, such as cost-effective manufacturing processes and digital health innovations are enhancing Indias self-reliance in paracetamol production. The sector faces challenges including price sensitivity among consumers, cost pressures on manufacturers and regulatory needs to ensure quality and safe use amid intense competition and raw material supply vulnerabilities.

Chemical Sector

Global¹¹

The global chemical industry is set to grow from USD 6,182 billion in 2024 to USD 6,324 billion by 2025, spurred by growing demand for innovative and advanced materials that support the energy transition, including battery chemicals, lightweight composites and sustainable feedstocks. Critical industries, such as automotive, construction and electronics, remain crucial drivers of demand. The Asia-Pacific region, especially China, is leading growth, while Europe navigates structural challenges. Looking ahead, specialty chemicals are poised to play an increasingly critical role across sectors such as automotive, electronics, agriculture, pharmaceuticals and personal care. Breakthroughs in biodegradable products, bio-based chemicals and sustainable manufacturing are shaping a greener, more efficient future. Companies embracing digitalisation, sustainability and resilient supply chain strategies are expected to thrive and strengthen the industrys global influence.

Indian¹²

Currently valued at an estimated $250 billion, Indias chemical industry remains a crucial pillar of sectors, such as agriculture, pharmaceuticals, textiles and construction. As the sixth-largest producer in the world, it is envisioned to grow to $300 billion by 2025 and $383 billion by 2030, driven by strong domestic demand, rising exports, supportive government policies and new technologies. National initiatives, such as the PLI scheme, Make in India and Aatmanirbhar Bharat are enhancing competitiveness and attracting capital inflows. With a sharper focus on innovation, green chemistry and digitalisation, the sector is unlocking new opportunities, while positioning India more prominently on the global stage. By 2040, the industry aims to reach $1 trillion in market size, growing at a 9.3% CAGR. This momentum is expected to be fuelled by higher consumption, diverse industrial uses, expansion into new markets and R&D excellence. Investments through PCPIRs (Petroleum, Chemicals and Petrochemical Investment Regions) and plastic parks are set to catalyse this this trajectory. In parallel, the industry is embracing sustainability, decarbonisation and circular economy practices. With its strategic location, skilled workforce and cost advantages, India is set to become a major global chemical hub, delivering solutions that resonate worldwide.

Growth Drivers

Demand for Innovative Materials: Growing requirement for advanced materials, such as battery chemicals, lightweight composites and sustainable feedstocks is fuelling industry growth.

Expansion in Key Industries: Notable growth in automotive, construction, electronics, agriculture, pharmaceuticals and personal care sectors continues to strengthen market traction.

Focus on Sustainability: Innovation in biodegradable products, bio-based chemicals and sustainable manufacturing practices are steering the sector towards a greener future.

Digitalisation and Supply Chain Innovation: Deployment of digital technologies and advanced supply chain solutions is enhancing efficiency and competitiveness.

Strong Asia-Pacific Growth: The Asia-Pacific region, led by China and India, continues to be a major growth hub due to investments and favourable policies.

Specialty Chemical Industry

Global¹³

The global specialty chemicals industry, with a valuation of $780.3 billion in 2024, represents a critical segment of the broader chemical industry. Unlike bulk chemicals, specialty chemicals are manufactured in relatively smaller volumes yet command higher value owing to their distinctive functionalities. They enhance manufacturing efficiency and elevate product performance across diverse sectors, such as agriculture, automotive, aerospace, pharmaceuticals, food and beverages, electronics and personal care. Projected to expand to $1,054.7 billion by 2033 at a CAGR of 3.23%, the markets growth is being propelled by surging demand for customised, high-performance solutions and a growing preference for eco-friendly alternatives. Intensified R&D investments by companies are enabling the production of innovative, tailor-made products that advance sustainability, diversify portfolios and reinforce their presence around the world.

Indian

The specialty chemical sector in India is experiencing substantial growth. This performance can be attributed to the ascending demand in personal care, construction and pharmaceuticals, coupled with rapid urbanisation and improved living standards. The governments thrust on R&D initiatives and infrastructure development is providing further momentum. The sectors portfolio includes agrochemicals, dyes, pigments and pharmaceutical ingredients, which are indispensable to multiple value chains. Looking ahead, opportunities are abundant, provided the industry strengthens innovation through greater R&D investments and leverages its cost-efficient manufacturing base. Challenges such as dependence on imported raw materials remain, yet favourable polices, the ‘China plus one strategy and government initiatives in technology and innovation are steering greater production of high-value specialty chemicals. With escalating global demand in areas, such as electric vehicles, green energy and digital infrastructure, the nation is poised to expand its footprint and establish itself as a major player in the international specialty chemical landscape.

Growth Drivers

Increasing Demand Across Industries: Heightened demand across agriculture, automotive, aerospace, pharmaceuticals, food and beverages, electronics and personal care are elevating specialty chemical consumption.

Shift Towards Eco-Friendly Solutions: A pronounced shift towards biodegradable and sustainable chemicals, spurred by environmental imperatives is promoting innovation market growth.

Customisation and Innovation: Companies are investing heavily in R&D to develop high-performance, tailor-made chemicals that meet specific industry requirements.

Technological Advancements: Integration of cutting-edge technologies is improving product quality, manufacturing efficiency and widening the scope of applications.

Global Expansion and Market Penetration: Rising demand in emerging economies and global expansion strategies strengthening market presence and competitiveness.

Company Overview

Valiant Laboratories Limited, a part of the distinguished Aarti Group, is a leading name in the Indian Pharmaceutical landscape. Established in 1980, the Company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), with a main focus on Paracetamol. Over the past four decades, the Company has earned a reputation as a reliable supplier in the industry.

The Company operates an advanced manufacturing facility at Tarapur Industrial Estate, Maharashtra. The facility benefits from proximity to major ports, ensuring efficiency in exports. Valiant Laboratories is known for its strong research and development, which helps it innovate and grow. Backed by a skilled team of 79 employees, the Company continues to deliver steady revenue growth, while expanding and channelling its investments towards new projects.

Strengths and Opportunities

Strengths

Experienced leadership and strategic vision: Valiant Laboratories Limited is steered by a leadership team with over four decades of experience in the chemical and pharmaceutical sectors. The promoters vision has empowered the Company to remain agile in a dynamic environment, make sound strategic choices and effectively navigate industry regulations. This wealth of experience the formation of strategic alliances, drives operational excellence and upholds high standards of product quality, leading to long-term, sustainable growth and profitability.

Focus on domestic sourcing and reliable supply chain:

By prioritising domestic sourcing, the Company reduces its dependence on volatile global supply chains, while strengthening ties with local vendors. Additionally, this strategy builds resilience in its operations, helps maintain quality and supports the broader Indian manufacturing ecosystem.

Commitment to R&D and innovation: Guided by a vision for sustainable progress, Valiant Laboratories consistently invests in research and development to stay ahead of industry trends, discover new molecules and improve existing products. Through its subsidiary Valiant Advance Sciences Pvt. Ltd., the Company has spent considerable amount on development of new chemistries that is essential for diversification. This commitment positions the Company for continued growth and value creation, as highlighted in its stated dedication to "future-ready growth and enhanced value creation".

Strong corporate values and governance: The Companys emphasis on ethical practices, excellence and stakeholder value is reflected in its transparent corporate governance and responsible management. These values reinforce its standing as a dependable partner within the industry, building confidence among customers, partners and investors.

Opportunities

Rising demand for Paracetamol: Valiant Laboratories can benefit from increasing demand for paracetamol APIs by ramping up production and expanding its market reach. As consumers increasingly seek effective and accessible pain relief medication, the Company is well-positioned to capture a larger share of this expanding demand and consolidate its presence in the pharmaceutical landscape.

Favourable government support: The Company stands to benefit from favourable policy measures including the Production Linked Incentive scheme, which aim to promote API production in India. By actively engaging in such initiatives, the Company gains access to financial incentives and infrastructure support that can expedite its growth.

Complete Backward Integration: Complete backward integration, with both major key starting materials manufactured within the Group companies, will not only reduce exposure to supply chain risks but also strengthen customer confidence, encouraging higher business volumes.

Growth Strategies

Diversification into new chemistries and sectors: Valiant Laboratories, through its subsidiary, is establishing a state of the art facility in Gujarat to manufacture specialty chemicals such as ketene and diketene derivatives. These products will cater to a wide range of industries, such as agrochemicals, pharmaceuticals, dyes, pigments and fragrances. This strategic diversification reduces dependence on a single product line while opening access to a broader customer base.

Expanding market share: As the demand for paracetamol and other OTC and self-care medicines continues to rise, Valiant Laboratories strives to increase its presence in the domestic API market. By building new customer relationships and nurturing existing ones, the Company aims to capture a greater market share and leverage the ongoing positive pricing momentum.

Boosting efficiency through backward integration: The Company is enhancing its operational efficiency by producing critical raw materials, such as acetic anhydride, in-house, while also supplying surplus volumes to external buyers. This approach strengthens quality control, lowers costs, reduces supply chain risks and reduces reliance on external suppliers, thereby driving more effective operations.

Strengthening international footprint: Valiant Laboratories is intensifying its global expansion, with a particular focus on regulated markets. The Company aims to become a preferred API supplier for international pharmaceutical companies. Through timely certifications and strategic overseas partnerships, the Company aspires to cement its position in export markets. The Companys ISO 9001:2015 certified manufacturing facility and ongoing market research support sustained growth domestically and internationally.

Future-ready commitment and value creation: Valiant Laboratories remains committed to future-ready growth, sustained innovation and enhanced value creation for stakeholders. Guided by an experienced leadership team, the Company stays agile and well-positioned to leverage emerging opportunities in the pharmaceutical sector.

Financial Performance

The total revenue of the Company decreased from Rs.1,820.52 million in FY24 to Rs.1,333.62 in FY25. The PBT decreased from Rs.(7.53) million in FY24 to Rs.(14.48) million in FY 25, resulting in a margin of -1.09%. The PAT decreased from Rs.3.40 million in FY24 to Rs.(21.50) million in FY25, with a margin of -1.61%

Particulars	FY25	FY24	FY23	FY22
Total Revenue	1,333.62	1,820.52	3,339.10	2,915.23
Revenue growth (in %)	-27.00%	-45.00%	14.54	59.85
EBITDA	7.52	12.73	350.91	423.18
EBITDA Margin (%)	0.56%	0.70%	10.51	14.52
Profit Before Tax (PBT)	-14.48	-7.53	381.36	417.04
PBT Margin (%)	-1.09%	-0.41%	11.42	14.31
Profit After Tax (PAT)	-21.50	3.40	289.98	274.96
PAT Margin (%)	-1.61%	0.19%	8.56	9.37
Capital Employed	2,963.34	2,983.65	1,622.39	1,323.85
ROCE (%)	-0.43%	-0.29%	22.76	35.75
ROE (%)	-0.91%	0.20%	33.73	34.36
Debt to equity ratio	0.25	0.36	0.59	0.85
Operational Parameters
Top 3 customers (in J million)	229.29	215.17	698.37	476.84
Top 5 customers (in J million)	336.35	328.87	989.55	682.26
Total Quantity sold (MT)	4,960.30	5,640.21	5,932.84	4,212.49
Average Revenue per Quantity sold (in Rs. per MT)	2,53,072.82	317,386.55	562,816.80	692,044.00

Risk Management

Risk	Impact	Mitigation Strategy
Competition and pricing pressure.	Profits may decline and some products might become unviable.	Adds new and advanced products, cuts costs, updates portfolio to stay competitive.
Economic or political instability	Uncertainty and potential risks may intensify in regions experiencing political unrest.	Regularly reviews situations in various economies; secures payments ahead of time if needed.
Not following quality standards or regulations	May result in fines, compliance notices, or damage to reputation.	Checks rules regularly, builds a strong quality culture and upgrades processes.
Lawsuits over intellectual property or taxes	May affect the launch of new products due to patent issues; possible legal/tax challenges.	Reviews possible patent issues first, follows all legal rules carefully.
Big swings in raw material prices	May result in sudden elevation in costs, hurting profits and planning.	Regularly checks raw material markets and finds ways to manage price fluctuations.
Delays in getting product approvals	Slows entry into markets, hurting sales and growth.	Closely reviews approvals process and ensures prompt response to regulatory questions.
Currency and international business risks	Profits and investments may be impacted due to currency fluctuations.	Implements hedging to mitigate risks arising from currency swings.
Cyber security threats	Cyber-attacks can cause financial and reputation loss.	Strengthens cyber systems and addresses new risks in a prompt manner.
Supply chain disruptions	Rising costs or inability to meet customer needs if supplies are delayed/disrupted.	Monitors key supplies, engages with local suppliers where possible and finds alternatives.
Failure in big projects	Missed targets can cut profits and slowdown investment returns.	Evaluates projects carefully, monitors progress and keeps strict controls.

Quality Control

The Company places significant emphasis on quality across every facet of its operations. Its management systems, both at the manufacturing facility and at the head office are certified to meet ISO 9001:2015 standards. The Company also holds a Good Manufacturing Practices (GMP) certification for production and export of bulk drugs and APIs, highlighting its adherence to global benchmarks of quality.

Quality checks are implemented at every stage of operations– from procuring raw materials, during production, to storing the final products. The Companys advanced laboratory equipped with advanced analytical tools, ensures that each product is scrutinised with precision before reaching the market. These measures enable the Company consistently deliver safe and reliable products to its customers.

Human Resource

In FY25, the Company continued to nurture a workplace that values diversity, promotes talent and cultivates a culture of collaboration and inclusivity. The Company has expanded its employee development initiatives, offering comprehensive training programmes that encompass advanced product and process expertise, behavioural and sales skill enhancement, self-management and robust fraud and risk management modules.

By leveraging sophisticated HR analytics, the Company ensures smooth leadership transitions through strategic succession planning, with a strong focus on aligning leadership capabilities with organisational goals. Employee engagement has been enriched through diverse platforms, such as quarterly newsletters, interactive virtual sessions, workshops and confluences designed to build connection with business leaders. These initiatives provide a stage to showcase talent and strengthens bonds by involving the families of employees.

To support talent retention and motivation, the Company provides competitive compensation packages paired with attractive long-term incentives, reinforcing its commitment to building a high-performance and future-ready workforce.

Permanent Employees on the payroll of the Company as on 31st March, 2025

Internal Control Systems and Adequacy

The Company has in place strong internal control procedures commensurate with its size and operations. The Company believes that safeguarding of assets and business efficiency can be prolonged by exercising adequate internal controls and standardising operational processes. The internal control and risk management system is structured and applied in accordance with the principles and criteria established in the corporate governance code of the organisation. It is an integral part of the general organisational structure of the Company and Group and involves a range of personnel who act in a coordinated manner while executing their respective responsibilities. The Board of Directors offers its guidance and strategic supervision to the Executive Directors and management, monitoring and support committees.

Cautionary Statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand-supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the government regulations, tax laws and other statutes and other incidental factors.