Shivalik Bimetal Controls Ltd

It is with great pleasure that I present the Chairman's Letter for Shivalik Bimetal Controls Ltd. (SBCL) as part of our Annual Report for

FY24. This letter aims to provide a comprehensive overview of our strategic advancements, technological innovations, financial stability, commitment to sustainable growth, and our relentless pursuit of long-term value creation.

FY24 has been a testament to SBCL's resilience. Despite a challenging global economic environment, our steadfast commitment to empowering energy management has driven us to new heights. As the world accelerates towards electrification, our diverse portfolio of electrical components has positioned us as a pivotal player in this transformative era, ensuring efficient and reliable energy management across various industries and homes.

Our dedication to innovation remains resolute. By fostering strong partnerships with Original

Equipment Manufacturers (OEMs) and leveraging state-of-the-art welding technologies, we have reinforced our reputation as a trusted partner in advanced applications such as Battery Management Systems (BMS) and smart metering. Our collective expertise and continuous drive for excellence enable us to pioneer solutions that shape the future of electrical components.

SBCL's products are integral to numerous sectors, including smart metering, switchgear, automotive applications, consumer electronics, telecommunications, and renewable energy systems. The rapid advancement towards smart metering technologies, the growth of the switchgear industry, and the electrification of automotive systems underscore the vital importance of our offerings. Our unwavering commitment to innovation, customer satisfaction, and robust partnerships has reinforced our status as a preferred supplier, driving efficiency, reliability, and safety across these industries.

Our technological edge, particularly in advanced welding techniques like Electron Beam Welding and Hot/ Cold Diffusion Bonding, distinguishes us in the industry. These innovative methods enable us to integrate diverse materials and alloys, resulting in durable and reliable electrical components. SBCL's intellectual capital, comprising a skilled workforce and specialized domain knowledge, further enhances our competitive advantage. By embracing advancements in automation, data analytics, and digitalization, we are poised to remain at the forefront of engineering innovation, continuously refining our manufacturing processes.

Financially, SBCL has maintained a robust balance sheet, reflecting our commitment to good governance, financial capital management. Our tangible fixed assets have grown steadily, reaching 125 crore in FY24, compared to 115 crore in FY23.

This increased capital expenditure

(CapEx) has enabled us to expand our manufacturing infrastructure, boost our research and development capabilities, and strengthen our market position. Our net worth has also shown consistent growth, reaching 342 crore in FY24, underscoring our dedication to long-term value creation for our shareholders.

This year, we also signed a significant

Memorandum of Understanding

(MoU) with a leading swiss electrical contacts manufacturer. The initation of this MoU aims to analyse how we can strengthen our electrical contacts business by leveraging their expertise in precious metals and advanced materials. The collaboration can enhance our product offerings in the electrical contacts segment, solidifying it as a strong third pillar of growth alongside the bimetal and shunt resistor segments. We anticipate that this alliance could lead to the development of high-performance electrical contacts, expanding our market presence and driving substantial growth.

Sustainable growth is a core principle at SBCL. We are dedicated to minimizing our environmental impact and fostering positive social change. Through continuous improvement initiatives, we optimize energy consumption, reduce waste generation, and adopt environmentally friendly practices across our operations. We actively engage with local communities, contributing to their well-being through various social initiatives, education programs, and skill development opportunities. Education remains a key focus, with significant investments in promoting and supporting educational initiatives through our trusted partners. andprudent

Healthcare initiatives are also a priority. We have allocated resources to promote healthcare, including preventive measures. Our initiatives have significantly contributed to community well-being and the improvement of healthcare facilities. These projects are part of our diverse CSR outreach, reflecting our commitment to making a positive impact on education, healthcare, employment, and rural development.

Looking ahead, we are optimistic about the recovery of the North

American and European markets as the Electric Vehicles (EV) segment gains momentum.

The growing demand for EVs presents significant opportunities for SBCL, and we are well-positioned to capitalize on this trend with our advanced components and technological prowess.

In conclusion, I extend my heartfelt gratitude to our shareholders, customers, employees, and business partners for their unwavering support and trust. Together, we will continue to drive SBCL's growth, deliver long-term value, and forge a brighter future.

Our commitment to technological excellence, financial prudence, and sustainable growth will remain steadfast as we navigate the evolving landscape and create shared value for all stakeholders.

Warm regards,