Veeram Securities Ltd Management Discussions

GLOBAL ECONOMIC OVERVIEW

The global economy continues to show signs of resilience amid persistent challenges and shifting macroeconomic conditions. According to the latest World Economic Outlook, global growth is now projected at 3.0% for 2025, with a further uptick to 3.1% in 2026. This upward revision from earlier forecasts reflects several positive developments, including the frontloading of demand ahead of anticipated tariff adjustments, more favourable financial conditions, lower effective tariff rates, and fiscal expansion in key economies.

While these factors are contributing to improved short-term momentum, the medium-term global outlook remains marked by caution. Global inflation is gradually easing, a trend that offers some relief for both consumers and businesses. However, inflation in the United States one of the largest consumer markets for gold and luxury goods is expected to remain above the Federal Reserves target range, suggesting continued vigilance in monetary policy. Persistent inflationary pressures in such mature markets could influence consumer spending behaviour, particularly in discretionary segments such as luxury jewellery.

Despite the improved growth projections, downside risks remain prominent. Rising protectionist sentiments have raised concerns around potentially higher tariffs, particularly across sectors sensitive to global trade dynamics. Additionally, geopolitical tensions, especially in resource-rich regions, and elevated economic policy uncertainty in major economies continue to weigh on investor and consumer confidence.

In this context, restoring economic predictability, policy coordination, and global trade stability has become a priority for policymakers worldwide. For the gold jewellery industry, which is intricately linked to both global commodity trends and consumer sentiment, these macroeconomic factors present a mixed landscape. On one hand, the stabilisation of inflation and stronger economic growth can support demand for luxury products; on the other, the volatility in gold prices, currency fluctuations, and shifting import/export regulations require businesses to remain agile and proactive in their strategic planning.

Looking ahead, the industry will need to closely monitor not only consumer confidence and disposable income trends but also geopolitical developments and trade policies that could directly affect raw material sourcing, production costs, and cross-border sales.

World Economic Outlook Growth Projections

(Real GDP, annual percent change)	2024	2025	2026
World Output	3.3	3.0
Advanced Economies	1.8	1.5
United States	2.8	1.9	2.0
Euro Area	0.9	1.0	1.2
Germany	-0.2	0.1	0.9
France	1.1	0.6	1.0
Italy	0.7	0.5	0.8
Spain	3.2	2.5	1.8
Japan	0.2	0.7	0.5
United Kingdom	1.1	1.2	1.4
Canada	1.6	1.6	1.9
Other Advanced Economies	2.2	1.6	2.1
Emerging Market and Developing Economies	4.3	4.1	4.0
Emerging and Developing Asia	5.3	5.1	4.7
China	5.0	4.8	4.2
India	6.5	6.4	6.4
Emerging and Developing Europe	3.5	1.8	2.2
Russia	4.3	0.9	1.0
Latin America and the Caribbean	2.4	2.2	2.4
Brazil	3.4	2.3	2.1
Mexico	1.4	0.2	1.4
Middle East and Central Asia	2.4	3.4	3.5
Saudi Arabia	2.0	3.6	3.9
Sub-Saharan Africa	4.0	4.0	4.3
Nigeria	3.4	3.4	3.2
South Africa	0.5	1.0	1.3
Memorandum
Emerging Market and Middle-Income Economies	4.3	4.0	3.9
Low-Income Developing Countries	4.0	4.4	5.0

INDUSTRY OVERVIEW

The gold jewellery industry is one of the most significant segments within the Indian economy, not only in terms of its contribution to GDP but also because of its cultural, social, and economic importance. India is the largest consumer of gold jewellery globally, with demand deeply rooted in traditions, festivals, weddings, and as a preferred form of investment. The industrys scale and diversity span from large organized retailers and branded chains to numerous small-scale artisans and unorganized players, reflecting a complex and multifaceted market landscape.

Over the last decade, the industry has witnessed transformational shifts driven by economic growth, changing demographics, and evolving consumer preferences. Rising urbanization and the emergence of a young, aspirational middle class have been significant growth drivers, leading to increased demand for contemporary and lifestyle jewellery, beyond the traditional heavy and ornate designs. This demographic is also more tech-savvy, seeking convenience and transparency, which has accelerated the adoption of digital channels and e-commerce in the jewellery space.

The regulatory landscape has also played a pivotal role in shaping the industrys evolution. The Government of Indias initiatives like mandatory hallmarking, introduction of the Goods and Services Tax (GST), and restrictions on gold imports have enhanced transparency and encouraged formalization within the sector. These measures have benefited organized players by creating a level playing field and fostering consumer confidence in quality and purity standards.

Furthermore, the global gold market dynamics, including price volatility influenced by geopolitical factors, currency fluctuations, and macroeconomic conditions, continue to impact the Indian jewellery industry. Despite these challenges, gold remains a preferred asset class in

India due to its historical and cultural significance, which tends to insulate demand from short-

term disruptions.

Emerging trends such as ethical sourcing, sustainable practices, and traceability are gaining momentum globally and beginning to influence Indian consumers buying behavior. Increasingly, customers are demanding assurance that their jewellery is sourced responsibly, sparking innovation in supply chain transparency and certification processes.

The rise of organized retail, branded jewellery chains, and technology adoption has also shifted

competitive dynamics. Customers today expect not only product variety and quality but also exceptional service, customization options, and omnichannel experiences blending physical and digital touchpoints. Retailers investing in advanced design technologies like Computer- Aided Design (CAD), 3D printing, and augmented reality (AR) virtual try-ons are better positioned to capture evolving market segments.

Additionally, the sector is witnessing increased collaboration between traditional craftsmanship and modern design sensibilities, enabling the creation of unique products that appeal to a broader audience, including millennials and younger consumers who prioritize individuality and style.

Looking ahead, the Indian gold jewellery industry is poised for sustained growth, supported by rising incomes, expanding urbanization, increasing female workforce participation, and evolving consumer lifestyles. However, players must remain agile and innovative to navigate regulatory complexities, price fluctuations, and shifting consumer expectations to harness the full potential of this vibrant market.

Indian Jewelry Market

second-largest consumer of gold globally, the demand for both traditional and contemporary jewellery remains resilient despite macroeconomic headwinds.

The post-pandemic recovery, rising disposable incomes, and increased urbanization have significantly contributed to the rebound in consumer sentiment, especially in Tier 2 and Tier 3 cities. The organized retail segment continues to expand rapidly, driven by brand trust, hallmarking regulation, and evolving consumer preferences.

The Indian gems and jewellery industry continue to benefit from progressive government initiatives aimed at boosting domestic consumption and exports. The Union Budget 2025-26 brought significant relief to the industry:

Reduction in Customs Tariff: The customs duty on jewellery was reduced from 25% to 20%, making gold and diamond jewellery more affordable and thereby supporting domestic demand. For platinum-based jewellery components, particularly platinum findings, the duty was slashed from 25% to 5%, potentially lowering production costs and increasing design diversity in the premium jewellery segment.

These policy changes reflect the governments recognition of the jewellery sector as a vital contributor to employment, exports, and MSME growth.

In January 2024, Honble Prime Minister Shri Narendra Modi inaugurated the Bharat Ratnam Mega Common Facilitation Centre (CFC) at SEEPZ SEZ, Mumbai. The project, developed collaboratively by the Ministry of Commerce & Industry, GJEPC India, and SEEPZ SEZ Authority, is positioned as a socio-economic growth driver for Indias jewellery manufacturing sector.

The facility offers world-class infrastructure, R&D support, and access to advanced technology for MSMEs, artisans, and exporters.

It promotes skill development, innovation, and global competitiveness, aligning with the Aatmanirbhar Bharat (Self-Reliant India) vision.

The Mega CFC is expected to significantly boost exports, facilitate ease of doing business, and nurture a robust jewellery manufacturing ecosystem.

The commendation of this initiative by Union Minister Shri Piyush Goyal in June 2024 further reinforces its strategic importance in enhancing Indias global positioning in the gems and jewellery value chain.

Product-wise Demand

Jewellery Category	Approx. Demand Share	Growth / Trend Insights
Plain Gold Jewellery	80-85% (by volume)	Steady, wedding & rural demand; lighter designs
Studded Gold & Polki/Kundan	15-20% (with 60-70% diamond-set)	Rising among branded collections, weddings
Bridal Jewellery (gold+diamond)	50-55% volume share	Price-inelastic segment maintaining demand
Daily-wear / Fashion Gold	35% daily, 10% fashion	Lightweight, modern designs preferred
Diamond & Studded Jewellery	Rapidly growing (6.6 % CAGR)	Engagement pieces, rings, necklaces in demand
Lab-grown Diamond Jewellery	Growing share (17% globally)	Attracting younger, price-sensitive buyers

Plain gold jewellery (22K/18K) dominates the Indian market, accounting for approximately 80-85% of demand by volume.

Studded gold jewellery including pieces set with diamonds or semi-precious stones such as Polki, Kundan, Jadau makes up around 15-20% of the gold jewellery segment, with 60-70% of those pieces set with diamond.

Despite rising prices, demand in rural and wedding segments remains resilient, powered by need-based purchases; overall gold jewellery volume slipped 25%, yet value demand rose 3% in early 2025.

The diamond jewellery segment is growing faster than gold, projected at 6.6% CAGR from 2024-2030. Within the studded segment, items with diamond settings form a major sub-category—especially engagement rings, earrings, necklaces and pendants. Globally, rings are the top product type in diamond jewellery, followed by necklaces, earrings, bracelets and custom pieces. Indian buyers show strong preference towards diamond rings and bridal sets, particularly for weddings and engagements; this is consistent with traditional gifting and emotional investment.

Opportunities, Risk, Threats and Concern Opportunities

Growing Demand in Tier 2 and Tier 3 Cities:

With increasing urbanization and rising disposable income in smaller towns and rural areas, theres a significant opportunity to expand retail presence in these high-potential markets.

Digital Transformation and E-commerce Growth:

The surge in online shopping has opened up new avenues for jewellery retail through e- commerce platforms, mobile apps, and social media marketing. Virtual try-on technology, video consultations, and home delivery services can attract tech-savvy and convenience- oriented customers.

Rising Preference for Certified Jewellery:

Consumers are increasingly opting for jewellery with hallmark certification and transparent billing. This shift offers organized players an opportunity to capture greater market share from the unorganized sector.

Customization and Personalization:

Customers, particularly millennials, are looking for unique, customized jewellery pieces that reflect their personality. Offering made-to-order designs and bespoke services can enhance customer loyalty and margins.

Increased Role of Women in Purchase Decisions:

The growing financial independence of women and their influence on household spending is driving demand for self-purchased and fashion-oriented jewellery, especially lightweight and daily-wear segments.

Product Diversification:

Expansion into adjacent segments such as platinum, diamonds, fusion jewellery, or corporate gifting offers new revenue streams and allows for customer base diversification. These segments cater to evolving consumer preferences for premium, contemporary, and personalized products. They also enhance brand appeal across different age groups and income segments. This diversification reduces reliance on traditional gold jewellery and strengthens market presence.

Strengthening Supply Chain and Inventory Management:

Enhancing procurement strategies and inventory controls helps minimize wastage and prevent stock-outs, ensuring timely availability of high-demand designs. This leads to improved customer satisfaction, optimized working capital, and better cost efficiency. Streamlined operations also support faster response to market trends and seasonal demand.

Jewellery as a Lifestyle and Fashion Accessory:

Over the past few years, jewellery has transcended its traditional role as a store of value and is increasingly being viewed as a lifestyle and fashion accessory. Consumers are now looking for jewellery pieces that not only symbolize wealth but also reflect their personal style and preferences. This trend is especially prominent among younger generations, who view jewellery as a way to express individuality. As a result, the demand for innovative, stylish, and contemporary jewellery is growing. Our company, with its diverse portfolio of traditional, modern, and Indo-Western designs, is well-positioned to capitalize on this shift in consumer behavior.

Seasonal and Festival Demand:

Capitalizing on key buying seasons such as weddings, festivals, and auspicious occasions through targeted marketing and exclusive collections can significantly boost sales. These periods see heightened consumer spending, and tailored offerings enhance customer engagement. Strategic promotions during these peak times also strengthen brand recall and drive footfall.

Collaboration with Local Artisans and Designers:

Partnering with skilled craftsmen and local designers enables the creation of exclusive regional collections that resonate with cultural preferences and local aesthetics. This approach enhances product uniqueness, strengthens brand authenticity, and appeals to specific customer segments seeking traditional yet distinctive designs.

Sustainability and Ethical Sourcing Initiatives:

Communicating a commitment to ethically sourced gold and hallmark certifications strengthens brand credibility and builds consumer trust across both online and offline channels. It reassures customers about product authenticity and quality, enhancing the brands reputation in a competitive market.

Loyalty and CRM Programs:

Strong customer relationship management, loyalty rewards, and after-sales services foster long-term customer retention and drive recurring revenue. These initiatives enhance customer satisfaction, encourage repeat purchases, and strengthen emotional connections with the brand.

Threats

Gold Price Volatility:

Fluctuations in gold prices can impact customer demand and profit margins, making pricing strategies and inventory management challenging.

Intense Competition from Unorganized and Local Jewellers:

Smaller, local jewellers often compete on price and credit terms, maintaining a loyal local customer base difficult to penetrate. The Indian jewellery market is highly fragmented, with a mix of unorganized players and established brands competing for market share. Local jewelers often compete on price, while branded players differentiate themselves through quality, design, and customer service. The increasing penetration of organized retail and e-commerce platforms means that even smaller players can now reach a national and global audience. In this highly competitive landscape, it becomes crucial to differentiate the brand effectively, build strong customer loyalty, and offer unique value propositions to stay ahead of the competition.

Regulatory Changes and Compliance Burden:

The jewellery sector is subject to various government regulations, including those related to taxes, customs duties, and trade policies. Changes in tax structures or import/export restrictions could significantly affect operational costs and pricing strategies. For example, any increase in the Goods and Services Tax (GST) on gold or jewellery products could lead to higher prices, potentially reducing demand. Additionally, more stringent regulations on the quality or certification of jewellery could lead to higher compliance costs. Monitoring regulatory developments and maintaining a flexible strategy will help navigate these challenges.

Evolving Consumer Preferences:

The fast-changing tastes of younger consumers can render traditional inventory outdated quickly, requiring companies to constantly innovate in design and assortment. The jewellery industry is highly dynamic, with consumer tastes shifting frequently based on trends, fashion, and cultural influences. The growing inclination towards minimalist, contemporary, and customizable jewellery designs may pose a challenge to traditional jewellery makers. Additionally, with the rise of online platforms, consumer expectations for faster delivery and greater convenience are also increasing. Companies that fail to adapt to these fast-changing preferences risk losing market share to more agile competitors who can quickly respond to trends. Continuous innovation and staying attuned to consumer needs will be crucial in navigating this threat.

Economic Slowdowns Impacting Discretionary Spending:

The jewellery industry is closely tied to the broader economy. Economic downturns, fluctuations in disposable income, and changes in consumer sentiment can negatively affect jewellery sales. When the economy slows down, consumers tend to spend less on luxury items such as jewellery, prioritizing essential goods and services. While the jewellery market tends to be resilient over the long term, short-term economic disruptions can impact sales and profitability. To mitigate this risk, its essential to diversify product offerings, engage in cost optimization, and focus on building a loyal customer base that can sustain demand even during challenging times.

Supply Chain Disruptions:

Dependence on gold imports and logistics can expose the company to delays, increased costs, or shortages.

Counterfeit and Imitation Products:

The growing demand for jewellery, especially in the online space, has led to an increase in the circulation of counterfeit products. Fake or substandard jewellery can undermine consumer trust in the industry as a whole. Moreover, counterfeit products, often sold at lower prices, can erode the market share of legitimate businesses. Ensuring authenticity, offering guarantees, and educating consumers about the value of purchasing from trusted, certified brands will help mitigate this threat. Moreover, implementing robust anti-counterfeit measures will safeguard the integrity of the brand.

High Operational Costs of Physical Stores:

Retail outlets incur fixed costs such as rent, utilities, and staffing, which may pressure profitability, especially in slower sales periods. Premium retail spaces in high-traffic areas of cities are limited and costly, making it challenging to expand the physical presence of jewellery brands in prime locations. As urbanization continues and consumer demand shifts towards modern retail experiences, securing quality retail space becomes increasingly competitive. Additionally, rising rental costs for commercial spaces in metropolitan areas can squeeze profit margins. Companies must look for alternative retail strategies, such as partnerships with established retail chains, popup stores, or leveraging online platforms to expand their market footprint.

Security Risks:

Physical stores face risks related to theft, burglary, or fraud, necessitating stringent security measures that add to operational expenses.

Talent Acquisition and Retention:

Hiring and retaining knowledgeable sales staff and store managers, who can deliver personalized service, remains a key challenge.

Outlook

The gold jewellery industry is on the cusp of significant transformation, shaped by changing consumer expectations, evolving cultural narratives, and the gradual shift towards experiential retail. While gold has always symbolized tradition and trust, todays consumers increasingly seek meaning, personalization, and seamless service in their jewellery purchases.

Looking ahead, the Company envisions positioning itself not merely as a jewellery retailer but as a curator of experiences that blend heritage with modernity. This means going beyond transactions to build emotional connections with customers through storytelling, craftsmanship, and personalized service. Our retail spaces will evolve into destinations where customers can explore, learn, and celebrate the artistry behind each piece. Recognizing the demographic shifts and rising purchasing power in emerging urban and semi-urban centres, the Company plans to strategically expand its physical presence with carefully crafted stores that reflect local culture while maintaining consistent brand standards. This expansion will be supported by community engagement initiatives that foster loyalty and trust.

In product development, the Company will emphasize innovation anchored in tradition introducing collections that speak to contemporary lifestyles yet honour timeless craftsmanship. Customization will play a key role, allowing customers to co-create jewellery that embodies their unique stories and aspirations.

The Company also acknowledges the importance of sustainability and ethical practices as integral to future growth. By aligning with responsible sourcing and transparent hallmarking, we aim to build deeper consumer confidence and contribute positively to the broader ecosystem.

Though online sales are not currently part of our model, we are keenly observing how digital tools can augment offline experiences from virtual consultations and design previews to appointment scheduling and customer engagement to create a cohesive, omni-channel approach without compromising our core focus on personalized, face-to-face service.

In a landscape marked by volatility and change, agility and customer-centricity will be our guiding principles. By continuously listening to our customers, adapting to market trends, and investing in people and processes, the Company is poised to not only navigate challenges but also seize emerging opportunities for sustainable and meaningful growth.

Internal control systems and their adequacy

The Company is committed to maintaining a robust internal control framework to ensure the integrity of financial reporting, safeguard assets, and promote operational efficiency. Our

internal control systems are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with applicable accounting standards.

Governance and Oversight

The Board of Directors, supported by the Audit Committee, oversees the establishment and maintenance of the internal control system. Management is responsible for the design, implementation, and monitoring of these controls to mitigate risks and achieve business objectives.

Financial Controls

We have implemented comprehensive financial controls to ensure accurate and timely recording of transactions. These include:

• Segregation of Duties: Critical functions such as authorization, recording, and custody of assets are performed by different individuals to prevent errors and fraud.

• Authorization and Approval: All transactions are subject to appropriate authorization levels to ensure compliance with company policies.

• Reconciliations: Regular reconciliations of bank accounts, inventory, and other key balances are performed to detect and correct discrepancies promptly.

Operational Controls

Operational controls are in place to ensure efficient and effective operations:

• Standard Operating Procedures (SOPs): Detailed SOPs govern key business processes, including procurement, sales, and inventory management, to ensure consistency and quality.

• Physical Controls: Access to physical assets is restricted, and surveillance systems are employed to prevent unauthorized access and theft.

• Performance Monitoring: Regular performance reviews and audits are conducted to assess the effectiveness of operational controls and identify areas for improvement.

Compliance and Regulatory Controls

The Company is committed to complying with all applicable laws and regulations:

• Regulatory Compliance: We adhere to industry-specific regulations, including hallmarking standards, tax laws, and anti-money laundering requirements.

• Internal Audits: An independent internal audit function assesses compliance with policies and procedures, identifies potential risks, and recommends corrective actions.

• Training and Awareness: Regular training sessions are conducted to ensure employees are aware of regulatory requirements and company policies.

Information Technology Controls

While operating primarily in the offline retail space, we recognize the importance of information technology in supporting business operations:

• System Access Controls: User access to information systems is restricted based on roles and responsibilities to prevent unauthorized access.

• Data Security: Measures are in place to protect sensitive information from unauthorized access, alteration, or destruction.

• Backup and Recovery: Regular backups of critical data are performed, and recovery plans are established to ensure business continuity.

Risk Management

A proactive approach to risk management is integral to our internal control systems:

Risk Assessment:

Regular assessments are conducted to identify and evaluate risks that could impact the achievement of business objectives.

Mitigation Strategies:

Appropriate strategies are developed and implemented to mitigate identified risks.

Monitoring and Reporting:

Ongoing monitoring of risk management activities ensures that risks are effectively managed, and reports are provided to the Board for review.

Internal Audit and Continuous Improvement

The internal audit function plays a crucial role in evaluating the effectiveness of internal controls:

• Audit Plan: An annual audit plan is developed based on risk assessments and approved by the Audit Committee.

• Audit Findings: Audit findings are communicated to management, and corrective actions are tracked to closure.

• Continuous Improvement: Feedback from audits and monitoring activities is used to enhance the internal control framework continually.

Key developments in Human Resource

The Company remained committed to nurturing a performance-oriented and inclusive workplace culture, guided by its core values of excellence, agility, and accountability. Acknowledging that a competent and motivated workforce is essential for long-term success especially in the trust-driven and customer-centric jewellery industry. Human Resource development continued to be a key strategic priority throughout the year.

Talent Development and Capability Building

During the year under review, focused efforts were made to strengthen employee capabilities in line with evolving business requirements. Training initiatives were conducted across functions, with particular emphasis on customer engagement, sales effectiveness, product knowledge (including hallmarking standards), and ethical conduct. These programs were aimed at equipping employees with the skills and confidence to deliver a superior customer experience and uphold the Companys reputation.

Workforce Composition and Industrial Relations

As of 31st March 2025, the Company maintained a headcount of 5 employees across its corporate and retail functions. The workforce mix reflected a balanced distribution of experienced professionals and young talent, ensuring both stability and dynamism within the organization.

The Company maintained cordial industrial relations throughout the year, with no reported disruptions to operations. Open communication channels and structured feedback mechanisms were further strengthened to address employee concerns and improve workplace engagement. Regular town halls, grievance redressal forums, and internal surveys were utilized to gauge employee sentiment and act on constructive feedback.

Culture and Performance

The Company reinforced a high-performance culture through transparent goal-setting, regular performance evaluations, and reward mechanisms linked to individual and team achievements.

Emphasis was placed on accountability, ownership, and continuous learning, aligning the workforce closely with strategic business objectives.

Financial Performance

The financial year 2024-2025 unfolded amidst a dynamic business environment, shaped by evolving consumer sentiment, fluctuating gold prices, and inflationary cost pressures. Despite these challenges, the Company remained focused on its core strategy- delivering value through quality, trust, and consistent customer engagement in the offline gold jewellery retail space.

For the financial year ended 31st March 2025, the Company achieved a Total Income of ?2,648.20 lakhs, reflecting a increase from ?1952.30 lakhs in the previous year. This increase was primarily attributed to a significant increase in revenue from operations, which increased from ? 1933.01 lakhs to ?2648.20 lakhs in FY 2024-25.

Revenue Trends/ Profitability and Cost Structure

During the financial year 2024-25, the Company delivered a strong financial performance, marked by a significant increase in revenue and profitability. Revenue from operations grew by 22.4% to ?2,364.47 crore as compared to ?1,933.01 crore in the previous year, driven by improved business volumes and operational execution. Total revenue, including other income, rose to ?2,648.20 crore from ?1,952.30 crore, reflecting a substantial increase in other income during the year.

Total expenses stood at ?2,197.62 crore, as against ?1,622.65 crore in FY 2023-24, primarily due to higher purchase costs and increased employee benefit expenses. Despite the rise in expenses, the Company achieved a notable improvement in profitability, with profit before tax increasing by 36.6% to ?450.58 crore from ?329.65 crore in the previous year. Profit after tax stood at ?340.89 crore, registering a growth of 38.5% over the previous years ?246.17 crore. The Companys performance during the year reflects its continued focus on growth, operational efficiency, and financial discipline.

Earnings Per Share (EPS)

The EPS (Basic and Diluted) stood at ?2.25, increased from ^ 1.63 in FY 2023-24, reflecting the increase in net earnings.

Accounting treatment

In the preparation of its financial statements for the financial year, The Company has followed all applicable Indian Accounting Standards (Ind AS) as prescribed under the Companies Act, 2013. There has been no deviation or alternative treatment adopted in the accounting of any transaction that differs from the prescribed standards.

Accordingly, no disclosure is required regarding any alternate accounting treatment, as the financial statements present a true and fair view of the state of affairs of the Company in full compliance with the applicable accounting framework.

Cautionary Statement

Statements in the Management Discussion and Analysis (MD&A) that describe the Companys objectives, expectations, forecasts, or predictions may be deemed to be "forward-looking statements" within the meaning of applicable securities laws and regulations. These forwardlooking statements are based on certain assumptions and expectations of future events, and are subject to a number of known and unknown risks, uncertainties, and other factors—many of which are beyond the Companys control that could cause actual results, performance, or achievements to differ materially from those projected.

Such factors include, but are not limited to, changes in macroeconomic conditions, fluctuations in market demand, changes in government policies and regulations, technological developments, competitive dynamics, and geopolitical events. The Company does not undertake to update any forward-looking statements to reflect future events or circumstances, except as required by law.