Precision Electronics Ltd

Dear Members,

Your Directors have pleasure in presenting the 45^fhAnnual Report on the business and operations of the Company along with the Audited Statements of Accounts for the Financial Year ended March 31, 2024.

FINANCIAL HIGHLIGHTS

Your Company's performance during the year as compared with that during the previous year is summarized below:

(Rs. in million)

*Revenue is net of Goods and Services Tax.

MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION

There have been no material change(s) and commitment(s), except elsewhere provided in this report, affecting the financial position of the Company between the end of the financial year of the Company i.e. March 31, 2024, and the date of this report.

CHANGE IN THE NATURE OF BUSINESS

There has been no change in the nature of business of the Company during the financial year ended on March 31, 2024. DIVIDEND

In view of conservation of financial resources of the Company, no dividend is recommended for the financial year under review.

TRANSFER TO RESERVES

Details of amount which the Company carries to reserves are provided in Note No. 18 to the Financial Statements. OPERATIONAL HIGHLIGHTS AND STATE OF COMPANY'S AFFAIRS

Overall revenue of the Company for the year ended March 31, 2024, was recorded at about Rs. 476.4million which is 31.71 % higher as compared to previous Financial Year 2022-23 revenue of Rs. 361.7 million. Precision Electronics Limited ("PEL") was able to earn the profit of Rs 14.57 million for the year ended March 31,2024 as against the profit of Rs. 0.08 million in the previous Financial Year 2022-23.

The Company is structured in four business verticals detailed below. These verticals represent your Company's focus and efforts.

1 Masts & Pedestals:

Revenue for the year ended March 31, 2024 is Rs. 131.90 million as against Rs. 76.6 million in the previous year FY 2022-23. Dedicated efforts are being made in this segment to address the Domestic as well as Export market of Defence & Security customers. Manufacturing plant is located at Noida, Gautam Budh Nagar, U.P. 201301.

2 Electro-Mechanical Manufacturing:

Revenue for the year ended March 31, 2024 is Rs. 77.00 million as against Rs. 112.5 million in the previous year FY

2022-23. Revenues were hit due reduced off-take of Power Distribution Units by the Healthcare sector. Manufacturing plant is located at Noida, Gautam Budh Nagar, U.P. 201301.

3 ICT (Information and Communication Technology) Solutions:

Revenue for the year ended March 31, 2024 is Rs. 151.70 million as against Rs 54.3 million in the previous year FY 2022-23. Your Company has enhanced its portfolio and with sustained business development.

4 Engineering Services:

Revenue for the year ended March 31, 2024 is Rs. 112.50 million as against Rs. 112.1 million in the previous year FY 2022-23. Engineering Services includes Turnkey Installation & Commissioning, Warranty-AMC Services and Lab Testing Services.

(I) INDUSTRY STRUCTURE AND DEVELOPMENTS

A. MAKE IN INDIA: Indian MOD and MHA is increasingly procuring Indian products and technologies when it comes to Small Arms, Electro-Optics, Military Communications, Drones and Anti-Drones. The recipients of MOD contracts are also typically finding success in Export markets. PEL's Tactical Infrastructure solutions and/or Manufacturing solutions are already in the Supply Chain of several such OEMs.

B. DEFENCE MANUFACTURING: The market for manufacturing of articles that require a Defence Industrial license has greatly risen in India and is highly relevant for Defence Exports as well. GOI aims to triple annual defence production to Rs. 3Lakh Cr and double the exports to Rs.50,000 Cr by 2028-29. In addition, it has set a goal of 70% self-sufficiency in weaponry by 2027. MoD and MEA are supporting Indian Exporters via their Embassies in 45 targeted countries to provide a Government umbrella for lead generation, evaluation and contract closure. PEL was one of the earliest recipients of two (2) Defence Industrial Licenses.

C. DRONE & ANTI-DRONE MARKET: Modern warfare globally utilizes Drones and Anti-Drones in a major way. Not only Militaries but also Homeland Security and Critical Infrastructures are mandatorily required to protect themselves from rogue Drones, thereby creating a need for PEL's Tactical Infrastructure products. Our ever enhancing product range of Masts, Tripods and Pedestals is most relevant for Drones (mid-long range) as well as Anti-Drones of all types.

D. AGILE INFRASTRUCTURE: As a one-stop shop for Telescopic Masts, Tripods, Pedestals, Power Electronics and Active Interconnectivity, PEL provides innovative turnkey solutions for Border Forces, Police Forces, Critical Infrastructures, Military, 4G/5G Cellular, Disaster Management and Construction industry. PEL is recognized as a Center of Excellence in India for Tactical Infrastructure and frequently sought after by end-users to provide feasibility and develop solutions for emerging use cases.

E. ALTERNATE TO CHINA SOURCING: Western countries are looking for non-Chinese sources in the Supply Chain of the solutions they are procuring, and this has opened up several opportunities for PEL for Manufacturing Services for Mechanics and Electro-Mechanics.

(II) SEGMENT-WISE/ PRODUCT-WISE OUTLOOK

The Company has structured its revenue streams as follows:

A. Telescopic Masts & Pedestals: PEL customers for its portfolio of Telescopic Masts, Tripods and Pedestals that are designed, developed and manufactured in-house are OEMs of ground based Radars, Signal Intelligence, Jammers, RF communications, Electro-Optics; and Systems Integrators dealing with ground based Anti-Drone, Electronic Warfare, Border/ Perimeter Security and TACCOMS. Global Market size is > US$500M out of which PEL addressable market based on domestic as well as limited international market is > US$50M. This product line has a lot of relevance for the Export Market and PEL expects 35% of its overall revenues to come from this segment.

B. Electro-Mechanical Manufacturing: Your Company has unique multi-disciplinary strengths in Production Engineering, Fabrication and Assembly of turnkey Box builds including Electronics (RF, Power, Mixed Signal

and Digital), Electricals (Wiring, Panels) and Metal Forming (CNC Milling, CNC Turning, Sheet Metal and Casting). Your Company is embarking on a strategy to go after major OEMs in Defence & Aerospace, Telecom (5G), Automotive, E-Mobility, Healthcare and Industrial sectors for business of Metal Parts, Cable Harnesses, Power Distribution Units and turnkey Box Builds. PEL's addressable market is 500cr for this segment which includes a significant Export component and PEL expects 35%% of its overall revenues to emanate from here.

C. ICT Solutions: Your Company has been an ICT (Information and Communication Technology) specialist for the last 30+ years in India, serving customers in Telecom, Railways, Oil & Gas, Defence, Homeland Security (HLS), Government (Non-Defence/ Non-HLS) and Critical Infrastructures. Our capabilities for Product Development, Production, Complex Integration and Engineering Services all come together to provide turnkey solutions for:

The solutions above are targeted for the Government, Public Enterprises and Critical Infrastructures in India. PEL works with several best in class technology partners to obtain Prime Contracts directly from end users. This segment represents 20% of overall revenues.

D. Engineering Services: PEL provides Comprehensive Engineering Services to Critical Infrastructures and Government customers in the areas of Tactical Networks, Strategic Networks, Electronic Warfare, Critical Infrastructure Protection, Airfield Modernization and Cyber Security. Engineering Services are inclusive of:

• SITIC (Supply, Install, Test, Integrate and Commission): inclusive of erstwhile Works/ EPC contracts

• Warranty & AMC Depot: to support serviceability of Telecom, RF, Power, Digital Electronics, Cable Harnesses and Motor/ Drive based systems

This segment targets large Domestic/ Foreign OEMs and Domestic/ Foreign Systems Integrators that require in-country support for highly sophisticated technologies and represents 10% of overall revenues.

(III) SWOT ANALYSIS STRENGTHS

1. 45 years of TRUST built in the industry

2. PEL products deployed PAN-India in National Telecom Networks and Defence/ Paramilitary Forces

3. Licenses, Approvals and Clearances from Govt/ Institutional/ Export customers in place WEAKNESSES

1. Shortage of high quality talent as well as vendor ecosystem to deliver high quality materials in short timelines

2. PEL brand is relatively unknown in US/ Europe which has the lion's share of Global market of Tactical Infra and Manufacturing

OPPORTUNITIES

1. MAKE IN INDIA in Indian A&D sector creating many opportunities for good Indian manufacturers

2. Focus of Indian Govt on Defence & Telecom Exports

3. China+1 OR "Other than China" a serious opportunity for India for high-tech manufacturing

THREATS

1. Future Geopolitics could negatively influence India's exports

2. Availability of Capital needed to quickly scale

(IV) INTERNAL FINANCIAL CONTROL & OTHERS

The Company has in place adequate internal financial controls with reference to financial statements and such internal financial controls are operating effectively. Your company has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and competence of the accounting records, and timely preparation of reliable financial disclosures.

(V) HUMAN RESOURCE DEVELOPMENT

Your Company believes that employees are the most valuable assets of an organization and the optimum utilization of the skill, knowledge and attitude they possess are instrumental to the growth of the organization. Your Company has lived and encouraged meritocracy, entrepreneurship, teamwork and performance driven culture. The focus has been on creating reserves through cross functional and interdisciplinary exposure at all levels to ensure redundancy and robustness in the organization. The total number of employees of the Company as on 31st March 2024 stood at 134.

(VI) SIGNIFICANT KEY FINANCIAL RATIOS Ratio Analysis (2023-24)

DEPOSITS

The Company has not invited or accepted any deposits during the year under review, falling within the ambit of section 73 of the Companies Act, 2013 ("the Act") and the Companies (Acceptance of Deposit) Rules, 2014.

SHARE CAPITAL

The Company's Authorised share capital during the financial year ended March 31, 2024, remained at Rs. 20,00,00,000/- (Rupees Twenty Crores only). The paid up share capital of the Company is Rs.13,84,87,620/- (Rupees Thirteen Crore Eighty Four Lakhs Eighty Seven Thousand Six Hundred and Twenty Only) comprising of 1,38,48,512

fully paid up equity shares of Rs.10/- each amounting to Rs.13,84,85,120/- and Rs.2500/- on account of forfeited equity shares.

RELATED PARTY TRANSACTIONS

During the year under review, all related party transactions (RPTs) entered into by the Company, were approved by the audit committee and were at arm's length and in the ordinary course of business. Prior omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and on an arm's length basis.

Regulation 23(4) of the Securities and Exchange Board of India (Listing Obligations And Disclosure Requirements) Regulations, 2015 ("Listing Regulations") states that all RPTs with an aggregate value exceeding Rs. 1000 crore or 10% of annual consolidated turnover of the Company as per the last audited financial statements of the Company, whichever is lower, shall be treated as Material Related Party Transaction ("MRPTs") and shall require approval of shareholders by means of ordinary resolution.

The disclosure of related party transactions as required under section 134(3)(h) of the Companies Act, 2013 in the Form AOC-2 is not applicable to the Company for Financial year 2023-24 and hence does not form part of this report. The related party transaction policy of the Company can be accessed on the Company's website at www.pel-india.in.

Details of related party transactions entered into by the Company have been disclosed in the notes to statements forming part of this report.

The Company has obtained the approval of shareholders for entering into MRPTs, with Victora Auto Pvt. Ltd. and Victora Automotive Pvt. Ltd., to be entered during the financial year 2024-25.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS BY COMPANY

During the year under review, there was no transaction of loan, guarantee or investment, by the Company, within the ambit of Section 186 of the Act.

SUBSIDIARIES/ JOINT VENTURES/ ASSOCIATE COMPANIES

The Company does not have any subsidiary/ joint venture/ associate company. Further, no Company has become or ceased to be subsidiary/joint venture/associate company of the Company during the year under review. Hence, Form AOC- 1 containing salient features of the subsidiary/joint venture/associate Company is not required.

DISCLOSURE OF AGREEMENTS ENTER BETWEEN THE COMPANY AND ITS SHAREHOLDERS/ PROMOTERS/ DIRECTORS/ KMP

As per regulation 30A read with clause 5A to para A of part A of schedule III of Listing Regulations, the Company has not entered into any agreement with its Shareholders, Directors or KMPs during the financial year which would impact the management or control of the listed entity.

DETAILS OF DEVELOPMENTS, ACQUISITION, AND ASSIGNMENTS OF MATERIAL INTELLECTUAL PROPERTY RIGHTS

During the period under review, the company has not made any developments, acquisition, or assignments in respect of any material intellectual property rights.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Your Company recognizes the benefits of having diverse Board, and increasing diversity at the Board level is viewed as an essential element in maintaining a competitive advantage. Your Company believes that a diverse Board will leverage differences in thought, perspective, knowledge, skill, industry experience, cultural and geographical backgrounds, which will ensure that the Company retains its competitive advantage.

Your Company believes that a diverse Board contributes towards driving business results, make corporate governance more effective, enhance quality and responsible decision making capability, ensure sustainable development and enhance the reputation of the Company.

Board of Directors:

1. Based on the recommendations of Nomination and Remuneration Committee ("NRC"), the Board approved the appointment of Lt. Gen. (Dr.) Rajesh Pant (Retd.) as an Additional Director and Non-Executive Chairman of the Company w.e.f August 11, 2023, to hold office upto Annual General Meeting ("AGM") of the Company, subject to the approval of shareholders. Subsequently, the shareholders of the Company, approved his appointment as Non-Executive Director cum Chairman of the Company w.e.f August 11, 2023, in the AGM held on September 25, 2023.

2. On the recommendations of NRC, the Board, subject to the approval of the shareholders, has approved the appointment of Mr. Deepto Roy as an Additional Director in the category of Independent Director for a second term of 5 years, w.e.f May 2, 2024. Subsequently, the shareholders of the Company by way of postal ballot on June 30, 2024, approved his appointment as an Independent Director of the Company for a second term of 5 years w.e.f May 2, 2024.

3. The term of appointment of Mr. Ashok Kumar Kanodia as Managing Director, will come to an end on August 13, 2024 and he wished to step down from the position of Managing Director. Thus, on the recommendations of NRC, the Board, subject to the approval of the shareholders, has approved his appointment as Whole Time Director to be designated as "Executive Chairman" of the Company w.e.f August 14, 2024 for a term of 3 years.

4. The term of appointment of Mr. Nikhil Kanodia as Whole Time Director cum President will come to an end on August 11, 2024 and pursuant to succession plan and pursuant to recommendations of NRC, the Board, subject to the approval of the shareholders, has approved his appointment as Managing Director w.e.f August 12, 2024 for a term of 5 years.

5. On the recommendations of NRC, the Board, subject to the approval of the shareholders, has approved the appointment of Mr. Dinesh Kumar Batra as an Additional Director in the category of Independent Director for a term of consecutive 5 years, w.e.f August 7, 2024.

6. Lt. Gen. (Dr.) Rajesh Pant (Retd.) resigned from the position of Non-Executive Director cum Chairman of the Company w.e.f close of business hours of August 13, 2024. The Board in its meeting held on August 7, 2024, places on record its deep appreciation for the contributions and guidance provided by him during his tenure with the Company.

The Board recommends the appointments of Mr. Ashok Kumar Kanodia, as Whole Time Director to be designated as "Executive Chairman" of the Company w.e.f August 14, 2024 for a term of 3 years, Mr. Nikhil Kanodia, as Managing Director w.e.f August 12, 2024 for a term of 5 years and Mr. Dinesh Kumar Batra, as Independent Director for a term of consecutive 5 years, w.e.f August 7, 2024.

Retirement by Rotation:

In accordance with the provisions of section 152 of the Act, Mr. Nikhil Kanodia, is retiring by rotation at the ensuing AGM of the Company and is eligible for re-appointment. Your Board recommends the re-appointment of Mr. Nikhil Kanodia, as Director of the Company.

The particulars in respect of Mr. Nikhil Kanodia, Mr. Ashok Kumar Kanodia, and Mr. Dinesh Kumar Batra, as required under Regulation 36(3) of Listing Regulations and Secretarial standards - 2 are mentioned in the notice of AGM.

Key Managerial Personnel:

Ms. Vrinda Mohan Gupta, Company Secretary cum Compliance Officer, resigned w.e.f February 1, 2024 and in terms of section 203 of the Act, Ms. Veenita Khurana has been appointed as the Company Secretary cum Compliance Officer w.e.f February 9, 2024,

BOARD EVALUATION

The Board of Directors has carried out an annual evaluation of its own performance, the performance of the Directors individually as well as the evaluation of the various committees of the Board, forming part of the Corporate Governance Report.

DECLARATION BY INDEPENDENT DIRECTORS

The Company has received declarations from each of the Independent Directors that they, respectively, meet the criteria of independence prescribed under section 149 read with schedule IV of the Act and rules made thereunder, as well as Regulations 16 and 25(8) of the Listing Regulations. Based on the declarations received, the Board considered the independence of each of the Independent Directors in terms of above provisions and is of the view that they fulfill the criteria of independence and are independent from the management.

In the opinion of the Board, there has been no change in the circumstances which may affect their status as Independent Directors of the Company and is Board is satisfied of the integrity, expertise and experience (including proficiency, in terms of section 150(1) of the Act and applicable rules thereunder) of all Independent Directors on the Board. In terms of section 150 of the Act read with rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended, all Independent Directors have enrolled themselves on the Independent Directors databank maintained with the Indian Institute of Corporate Affairs.

MEETINGS OF THE BOARD AND COMMITTEES

The Board of Directors met 4 (four) times during the period under review. The details of number of meetings of the Board and various committees of the Board of the Company are set out in the Corporate Governance Report, which forms part of this report.

SECRETARIAL STANDARDS:

The Directors state that the applicable secretarial standards i.e. SS-1 and SS-2, relating to meetings of the Board of Directors and General Meetings have generally been duly followed by the Company.

REMUNERATION POLICY

In accordance with the provisions of section 178 of the Act and part D of schedule II of the Listing Regulations, the policy on nomination and remuneration of Directors, KMPs, and senior management of your Company is uploaded on the website of the Company and, may be accessed at www.pel-india.in. During the year under review, there has been no change to the policy.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

In terms of the provisions of Section 197(12) of the Act read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules and the disclosures relating to remuneration and other details, is annexed as Annexure A to this Report.

STATUTORY AUDITORS

In terms of Section 139 of the Act, read with rules made thereunder M/s Nemani Garg Agarwal & Co., Chartered Accountants were appointed as Statutory Auditors of the Company to hold office for a period of five years from the conclusion of 43rd AGM till the conclusion of 48th AGM.

The statutory auditors have confirmed that they are not disqualified from continuing as the auditors of the Company.

The statutory auditors have issued an unmodified opinion on the Company's financial statements for the financial year ended March 31, 2024 and the auditor's report for the year under review does not contain any qualification, reservation, adverse remark or disclaimer.

The notes on financial statements referred to in the Auditor's report are self-explanatory and do not call for any further comments.

There are no instances of any fraud reported by the Statutory Auditors to the Audit Committee or the Board pursuant to section 143(12) of the Act.

SECRETARIAL AUDITORS

M/s Munish K Sharma & Associates, Company Secretaries were appointed to conduct the Secretarial Audit for the financial year 2023-24. The Secretarial Audit Report for the financial year ended March 31, 2024 is annexed herewith as Annexure B and the management reply to the reservations/ observations / adverse remark is annexed herewith as Annexure C to this Report.

MAINTENANCE OF COST RECORDS:

In terms of Section 148 of the Act read with Companies (Cost Records and Audit) Rules, 2014, as amended from time to time, the Company is not required to maintain the cost records.

RISK MANAGEMENT

The Company has in place a robust risk management framework which identifies and evaluates business risks and opportunities. The Company recognizes that the applicable risks need to be managed and mitigated to protect the interests of the shareholders and stakeholders, to achieve business objectives and enable sustainable growth. The risk management framework is aimed at effectively mitigating the company's various business and operational risks, through strategic and tactical actions. The factors that affect the Company's profitability and operations are regularly monitored.

CORPORATE SOCIAL RESPONSIBILITY(CSR)

During the year under review, the provision of Section 135 of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, are not applicable to the Company

SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:

No significant material order(s) have been passed by the regulators/ courts which would impact the going concern status of the Company and its future operations during the period under review.

DIRECTOR'S RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Act, your Directors states that:

a) in the preparation of the annual accounts for the Financial Year ended March 31, 2024, the applicable Accounting Standards and schedule III of the Act, have been followed and there are no material departures from the same;

b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the Profit and Loss of the Company for the year under review;

c) the Directors have taken proper and sufficient care for the maintenance of adequate Accounting Records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a 'going concern' basis;

e) the directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and

f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO

The particulars relating to conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed under Section 134(3)(m) of the Act read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed herewith as Annexure D to this Report.

ANNUAL RETURN

In accordance with the provisions of Section 92 and 134(3)(a) of the Act, read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return in e-form MGT-7, for the financial year ended March 31, 2024 has been uploaded on the website of the company at www.pel-india.in.

CORPORATE GOVERNANCE

Your Company is committed to achieve the highest standards of corporate governance and adhere to the corporate governance requirements set out by the Securities and Exchange Board of India.

The report on corporate governance as stipulated under the Listing Regulations for the financial year 2023-24 and a certif?cate issued by M/s Munish K Sharma & Associates, Company Secretaries confirming compliance with the conditions of the Corporate Governance in annexed herewith as Annexure-E to this report.

VIGIL MECHANISM

A vigil mechanism of the Company which includes whistle blower policy pursuant to section 177(9) & (10) of the Act, has been established and can be accessed at Company's website www.pel-india.in.

PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

In adherence to the Sexual harassment of women at workplace (Prevention, prohibition and Redressal) Act, 2013 and the rules made thereunder, your Company has constituted an Internal Complaints Committee to redress complaints regarding sexual harassment. No case was reported and/or filed during the year under the aforesaid Act.

ENVIRONMENTAL PROTECTION, HEALTH AND SAFETY

The Safety & Health of employees and external stakeholders are embedded in the core organizational values of the Company. This aims to ensure safety of public, employees, plant & equipment, ensure compliance with all statutory rules and regulations, imparting training to its employees, carrying out safety audits of its facilities, and promoting eco - friendly activities.

The Company continues to maintain excellent track record on safety. The site had no accidents during the year 2023-24. PEL also has a Workman Safety Committee under section 41G of Factories Act 1948. This Committee meets at regular intervals to take measures for worker's protection in order to make PEL a safe place to work.

DISCLOSURE UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

There was no application made by the Company initiating insolvency proceedings against any other entity nor are any proceedings pending against the Company under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year under review.

DIFFERENCE IN VALUATION IN THE CASE OF ONE TIME SETTLEMENT OF LOAN FROM BANK OR FINANCIAL INSTITUTION

There was no one time settlement of loan from banks or financial institutions by the Company during the under review. Accordingly, there are no details regarding difference between the amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or financial institutions.

CAUTIONARY STATEMENT

Statements in the Board's report and the Management Discussion and Analysis describing the Company's objectives, expectations, or forecasts, may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Company's operations include global and domestic demand and supply conditions, input availability and prices, changes in government regulations, tax laws, economic developments within the country and other related factors.

ACKNOWLEDGMENTS:

Your Directors wish to place on record their appreciation for the sincere Services rendered by the Company's staff and workers at all levels. Also, they wish to place on record their appreciation and gratitude for the valuable support received from Bankers, its Customers, Business Associates, Government Departments and Shareholders and look forward to similar support and co-operation in future. The Directors also commend the continuing commitment and dedication of the employees at all levels, which has been critical for Company's success. The Directors look forward to their continued support in future.