Rico Auto Industries Ltd

Dear Valued Shareholders,

In an era marked by unprecedented global challenges, this has been a pivotal year with the global economy showing signs of resilience. The economic upturn was driven by several factors such as the post-pandemic supply-side expansi?n, employment growth and easing of ?nflationary pressures.

The global economic trend bodes well for India. Driven by strong fundamentals and a positive growth momentum, India, in fact, remains the fastest-growing economy with an estimated 8.2% real GDP growth for 2023-24.

India has emerged as a leading player in automotive manufacturing, producing over 21 million two-wheelers annually and ranking high in car, truck and tractor production. The Hybrid and EV market is expanding as well, with India projected to become the third-largest player by 2025. All of these aspects augur well for the country and go a long way in building significant ?nvestment opportunities.

At Rico Auto, we are well-poised to capitalize on these exciting trends, leveraging our technological expertise to lead the way in this evolving landscape. In the year gone by, we successfully navigated numerous macroeconomic challenges, including fluctuations in raw material pricing and supply chain disruptions, while continuing to meet customer requirements and uphold our commitments. Our EBITDA levels saw an improvement driven by various cost reduction initiatives.

As we look towards the future, we are optimistic about the opportunities that lie ahead. While the global automotive market is set for a remarkable transformaron with advancements in autonomous driving, electrificaron, and connectivity, we are also well equipped to ride this wave.

Going forward, the company is working on expanding its capacity for customers. We have added new customers such as Knorr-Bremse, Case New Holland, and Piaggio. We have been awarded new businesses from BMW, Toyota, Aisin, GKN and other customers, further boosting our revenue streams in coming years. Given the growth potential of the Hybrid and Electric vehicle market, we have an unwavering focus on the segment. In fact, our efforts in this direction are already showing promising progress, with having secured substantial orders from industry leaders. We are confident of achieving revenue growth at 15% CAGR in the coming years.

RICO is committed to reduce its carbon footprint and aims to achieve carbon neutrality by 2050. We are consistently strengthening our processes, product innovations, usage of renewable energy sources, supply chain management, community engagement, diversity and inclusion.

I would like to take this opportunity to extend a warm thank you to all our stakeholders. All our efforts towards these achievements would not have been possible without the support and commitment received from our shareholders, customers, and employees. I am confident that together, we will navigate challenges and seize the opportunities that lie ahead, ensuring sustained growth for your company.