IRM Energy Ltd

Dear Shareholders,

It is a pleasure to share my thoughts with you at the culmination of an eventful financial year. As we continue our journey forward, we deeply cherish the trust and support of all our customers and stakeholders.

Despite global economic uncertainty, geopolitical tensions in Europe and the Middle East, climate change and supply chain disruptions that created a challenging operating environment, the Indian economy remained resilient. We persevered through volatilities to deliver robust financial performance for the year under review and remained steadfast to serve customers and create value for our stakeholders.

Taking into consideration the growing emissions from the energy sector and its impact on the environment, countries all over the world are resorting to cleaner and greener sources of fuel. Natural gas has continued to be a preferred choice for leading a sustainable change.

It is considered to be an economical, convenient, safe and environment-friendly alternative to non-renewable sources of energy. The Indian government has also undertaken an ambitious plan to significantly boost the country's natural gas consumption by three-fold, to about 500 MMSCMD by 2030, up from the current 185 MMSCMD. We realise the immense potential lying in this space and our consistent efforts to make a difference has enabled us to take a leading role in contributing towards this transformation.

The enthusiasm with which our Initial Public Offering (IPO) was received in the market underscores the strength of our company. It also underlines our continued commitment to our customers, investors, shareholders and not in the least our young employees including a strong core team, who have

I strengthen the foundations of the edifice on which we have built a robust organisation, designed for continuing and sustainable business growth.

We continue to improve our reach in authorised GAs to provide access to clean, efficient and cost-effective natural gas to a wide range of customers.

While we continue to strengthen our core business of setting up Compressed Natural Gas (CNG) stations for automobiles, laying pipeline for supplying piped natural gas (PNG) to households, commercial establishments and industrial units and construction of city gate stations to receive natural gas from transmission pipelines, we also remain focused on improving our geographic footprint. We currently operate in Gujarat, Punjab, Tamil Nadu and the Union Territory of Daman and Diu.

During the financial year, we have reported a gross turnover of 79,565.40 million against 710,391.35 million in FY23. Our consolidated PAT also saw a significant rise, increasing from 7631.36 million in FY23 to 7856.63 million in FY24. The consolidated earnings per share stood at 724.47 for FY 2024 in comparison to 721.18 in FY 2023. Besides, our net worth has surpassed 79,300 million at the end of FY24, showcasing the strength and resilience of our business model. These impressive figures are a testament to our unwavering commitment to operational excellence, strategic decision-making and a relentless focus on delivering value to our stakeholders even in the face of challenging market conditions.

By leveraging our core strengths of building infrastructure for natural gas pipelines to exploring better sourcing opportunities, we have focused on strengthening our foothold in the industry with exceptional service and high standards of safety. We hold exclusive rights for the distribution of CNG and PNG within our authorised geographical areas, as per authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB). It made it possible for us to realise our vision of inclusive, sustainable growth.

In its seventh year of operation, our company successfully transitioned to a publicly listed entity, marking a significant milestone. This achievement underscores the dedication, integrity, and managerial acumen of our leadership team including the KMPs and SMPs. Their unwavering commitment has been instrumental in creating substantial value forthe organization, earning the trust and confidence of public investors.

At the outset, I would like to thank all of them for their contribution to the success of the IPO, which opened on October 18,2023, to an excellent response and was oversubscribed 27.05 times. This overwhelming response will enable us to further enables us to ensure uninterrupted supply of natural gas to customers.

We have also adopted cutting-edge technologies to enhance operational efficiency across our CNG and PNG distribution networks. By implementing SCADA automation at CNG stations and RFID systems for improved safety, we optimise processes and reduce risks. Our collaborations with industry leaders such as ShizGas and Mindra EV highlight our commitment to innovation, energy efficiency and sustainability. This comprehensive approach reinforces our commitment to making sustainable energy solutions easily accessible for a large section of the population where we operate.

At IRM Energy, our commitment to foster a better tomorrow encourages us to preserve the environment and improve lives through education, skill development and community development initiatives. As a responsible corporate entity, we are committed to consistently reducing our environmental footprint, safeguarding the best interests of our stakeholders and adhering to the highest standards of corporate governance. Through our collaboration with the Indrashil Kaka Ba and Kala Budh Public Charitable Trust, we showcase our commitment to promoting education and improving educational facilities, thereby contributing to the creation of an environment that fosters quality education and empowers students to excel in their chosen fields.

In conclusion, I would like to extend my heartfelt gratitude to all our stakeholders for your support and encouragement. Looking ahead, we seek to pave the path for a sustainable energy future where ecological alternatives are easily available and accessible.

Warm Regards,

Maheswar Sahu Chairman

Our Presence

By leveraging strategic pipeline connectivity and efficient gas sourcing, coupled with strong financial performance, we embody resilience, innovation, and market leadership in the energy sector.

Q ^ Exclusivity in CNG and PNG I Supply

We hold exclusive rights for the distribution of CNG and PNG within our authorised geographical areas (GAs) awarded to us, as per the authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB). This exclusivity is time-bound, ensuring that we are the sole distributor in these regions during the specific period. Additionally, we have been granted a 25-year network exclusivity for infrastructure development across all our GAs. This includes the construction and maintenance of pipelines and CNG infrastructure. These rights enable us to establish a robust infrastructure, ensuring an uninterrupted supply of natural gas and fostering customer loyalty.

^ Diverse Customer Portfolio and Robust Distribution Network

We have cultivated strong relationships with a diverse customer base, spanning across industrial, commercial, and domestic sectors, through collaborative efforts and competitive offerings. By leveraging technology, we continuously upgrade our services to meet evolving customer needs. Our extensive distribution network for CNG and PNG, supported by a dynamic business model, ensures adaptability and resilience, providing a natural hedge against market instability across different industries and locations.

Successful Development and ? Operation of CGD Business

We have effectively developed and managed our City Gas Distribution (CGD) business in the geographical areas (GAs) awarded to us. Our accomplishments include constructing an extensive network of pipelines and CNG stations, demonstrating our strong in-house project management capabilities. These operations are supported by robust maintenance processes and a solid relationship with vendors, suppliers, and contractors, enabling us to expand our network efficiently and cost-effectively.

Our commitment to health and safety is evident through the implementation of rigorous safety management systems, ensuring the safe, reliable, and uninterrupted distribution of natural gas. Governance and operational efficiency are maintained through stringent internal monitoring processes and systems, overseen by our skilled management team.

m Strong Parentage and Experienced Leadership

We benefit from the robust support of Cadila Pharmaceuticals Limited, an Indian multinational with over three decades of experience in the pharmaceutical industry. This partnership offers us strategic and financial advantages, aiding us in overcoming entry barriers such as significant investment requirements. Our experienced board of directors offers strategic guidance, while our senior management team brings extensive expertise in the natural gas and petroleum industries. Additionally, our technically proficient execution team is dedicated to quality and expansion, driving our growth and operational excellence.

7 Technology Adoption for Operational Efficiency

We have strategically adopted cutting-edge technologies to enhance operational efficiency across our CNG and PNG distribution networks. By implementing SCADA automation at CNG stations and RFID systems for improved safety, we optimize processes and reduce risks. Our collaborations with industry leaders such as ShizGas and Mindra EV underscore our commitment to innovation, energy efficiency and sustainability. Furthermore, digital solutions, including GIS planning and 24x7 customer support, streamline operations, ensuring agility and excellence in service delivery driving cost savings.

Strategic Pipeline 7 w Connectivity and

Gas-Sourcing Efficiency

Our strategic acquisition of GAs with direct access to crosscountry gas pipelines minimizes transportation costs and ensures efficient gas sourcing. By leveraging pipelines such as GAIL's Dadri-Bawana Nangal and GSPL's network, coupled with mid to long-term GSPAs with suppliers such as GAIL and RIL, we secure gas at competitive prices. This enables us to offer industrial PNG customers cost-effective alternatives, fostering their transition to natural gas while enhancing market competitiveness and operational viability.

Strong financial performance with consistent growth and profitability supported by ^7^ healthy operating efficiency / and favourable regulations

We have achieved consistent revenue growth over the years, supported by healthy year-on-year growth in volume.This success is driven by our infrastructure augmentation and increased penetration in the Banaskantha and Fatehgarh Sahib GAs.

Through optimized distribution channels, technological adoption, vertical integration, strategic gas sourcing, and successful PNGRB bidding processes, we are committed to enhancing operational efficiency, customer value, and sustainable growth, solidifying our position as a leading energy solution provider.

Our strategy involves expanding our presence in both existing and new GAs by optimizing our captive distribution channels. We prioritise the use of DODO and COCO Stations for CNG distribution, capitalising on cost-saving advantages and reinforcing our corporate identity through branding. These stations will also serve as energy retailers for a variety of fuels including CNG, biofuel, LNG, EV charging, and battery swap services.

To enhance efficiency and reduce billing costs, we are implementing pre-paid meters for PNG domestic customers and AMR systems for commercial and industrial segments, ensuring better cash flow management.

Leveraging technical expertise from partners like ShizGas, we aim to facilitate seamless transitions to natural gas and optimize consumption. Strategically located LCNG stations further optimize operational efficiency. Our strategic acquisitions and planned expansions are designed to meet growing demand and geographic synergies.

Our strategic focus on vertical integration aims to diversify and drive robust business growth, enhancing revenue streams through investments in complementary ventures. With equity holdings in Farm Gas, Venuka Polymers, and Ni Hon Cylinders, we strengthen our position as a complete energy solution provider, fostering synergies across diverse sectors. This approach facilitates the in-house development of allied products, reduces reliance on third-party vendors, and opens avenues for renewable energy projects like CBG/ Bio-CNG and solar energy initiatives. Collaborative efforts with industry leaders like ShizGas further enrich our capabilities, allowing us to explore opportunities in international LNG procurement and domestic distribution. This reinforces our commitment to sustainable energy solutions.

Our commitment to technological advancement, exemplified by SCADA implementation for unmanned CNG operations, underscores our focus on efficiency and accuracy. By leveraging technologies such as SCADA, GIS, and AMR Systems, we optimize operational costs while enhancing service quality. Collaborating with industry leaders like ShizGas enables us to further innovate, implementing best practices in distribution, system engineering, and energy conservation. These efforts ensure sustained value for our customers and stakeholders.

Our persistent approach to gas procurement emphasizes index linkages, diversified contracts, and efficient cost management. Leveraging agreements with industry leaders like GAIL, RIL, and potential collaboration with ShizGas for LNG imports, we ensure reliable and competitively priced gas sourcing. Exploration of bilateral contracts and gas exchange platforms further enhances our flexibility and market presence, optimizing our position in the natural gas sector.

Obtaining PNGRB authorization involves submitting technical and financial bids and adhering to the regulations for city gas distribution networks. Following evaluation, successful applicants proceed to submit financial bids, with the highest composite score securing the GA. Our successful bids, spanning multiple rounds, have led to infrastructure development and operational commencement in various GAs. Notable projects in Banaskantha, Fatehgarh Sahib, Diu & Gir Somnath, and Namakkal &Tiruchirappalli exemplify our commitmentto expanding CGD networks across our GAs.

Expediting the development of the CGD network in Namakkal & Tiruchirappalli districts, Tamil Nadu, requires focused infrastructure establishment. Given the dense urban population, there is significant potential for PNG conversion, particularly from LPG. By leveraging this opportunity, we aim to facilitate the transition of industrial and residential customers to natural gas, enhancing both economic and environmental sustainability.

To strengthen customer relations and prioritize complaint management, we have established a 24x7 call centre across all our Geographical Areas (GAs). Staffed by a dedicated team, the call centre ensures real-time logging and timely resolution of customer complaints.

We have installed EVC-cum-Data Loggers equipped with modems at all our District Regulation Stations (DRS). These devices communicate critical parameters such as upstream and downstream pressure, temperature, flow rate, corrected volume, uncorrected volume, and threshold alarms to a web portal via the GSM network daily.

Our Preventive Maintenance Module (PMM) is developed on our Geographic Information System (GIS) platform.

This module schedules, performs, and monitors regular preventive maintenance activities for our various gas assets. An android-based application supports the PMM by capturing geo-tagged points, gas assets, and their attributes in near realtime, ensuring quick integration into the GIS system and generating asset commissioning reports promptly.

For all commissioned customers using industrial PNG across all GAs, we have installed an automatic meter reading system. These devices provide daily consumption logs and hourly flow data through the GSM network to a centralized computer system at the master control room, enhancing the monitoring of critical parameters.

We have introduced handheld billing devices for spot meter reading and billing for our PNG domestic customers. These readings are integrated into the ERP system through an API link for realtime data pooling and recording.

We have implemented SCADA at our CNG stations for meter reading, improving system efficiency and accuracy, and leading to operational cost savings.

We have developed an online and android-based Incident Reporting and Management System (IRMS) to facilitate real-time reporting, monitoring, network analysis, and incident resolution within our stations. The GIS system captures all incident information, logs, and geocoordinates, sending SMS and in-app notifications to field operators for a swift response.