Kranti Industries Ltd

I hope this letter finds you in good health and high spirits. As we reflect upon the recent developments in the global economy and the Indian automobile industry, I wanted to take a moment to express my deepest gratitude to you your invaluable support and contribution as a stakeholder of Kranti Industries Limited. The past year has been marked by unprecedented inflationary pressures. geopolitical due to ongoing war and supply chain constraints. As stated in the IMF World Economic Outlook, the global economy has faced substantial headwinds, with adverse shocks impacting various nations. Despite these circumstances, your unwavering commitment and collaboration have been instrumental in navigating through these trying times.

In the face of economic uncertainties,the Indian economy has displayed remarkable resilience. As highlighted by the Asian Development Bank, India's economic growth rate has outpaced many peer economies, thanks to robust domestic consumption and lesser dependence on global demand. The Government of India's initiatives, such as the Gati Shakti project and increased capital expenditure, have further propelled industrial growth in various sectors, including the yourautomobile industry. Kranti, esteemed guidance, has emerged as a to leading manufacturer of advanced auto components, dedicated to innovation and cutting-edge technology. Your in our capabilities and your continued support have been the driving force behind our success. We take great pride in our state-of-the-art facilities, which boast the latest machinery and a team of skilled professionals. Our commitment to quality and precision The is unwavering. We have continuously invested in enhancing our capabilities and expanding our production capacity. With a range of advanced machining centers and inspection facilities, we ensure that every component meets the highest quality standards. This dedication uncertainties to excellence has not only earned us the trust of renowned original equipment manufacturers but also positioned us as a reliable partner in the domestic and international markets. The Indian automobile industry, including the commercial vehicle and electric vehicle segments, has witnessed economy, resilient significant growth. The demand for automobiles has been fuelled by factors such as increasing disposable income, improved accessibility to vehicle financing, and infrastructure tion.destina development. Kranti Industries has been at the forefront of this growth, supplying precision machined components that contribute to the performance and safety of vehicles. Moreover, our focus on import substitution and higher outsourcing by OEMs in India has played a pivotal role in strengthening the domestic auto component industry. As the demand for Indian automobiles and auto components continues we see immense opportunities for exports and increasing self-reliance in this sector.

The world is looking at India as a manufacturing destination. India most Board is reverberating Rooms of global conglomerates. This is happening owing to two important factors. 1) growing geopolitical stresses have mandated global players to diversify their sourcing bases, and 2) the aging population in China and increasing costs will dent their competitive advantage over the next 5-7 years. India, on the other hand, continues to allure with a promising talent pool, strong domestic supply chains and the spirit of Make in India and an Atmanirbhar Bharat while spreading its wings to achieve the global dream of being an ideal manufacturing

Many first movers have already established their manufacturing footprint in India. This trend has gained considerable momentum in the recent past. For me, this, in essence, is the China-plus policy playing out on the ground. Currently, India's Achilles heel is the scale of operation which is minuscule compared to China. And is mirrored in India's share of the global manufacturing GDP at only about 5%. The Government along with the private sector is working hard to correct this anomaly with considerable success. India's contribution to global manufacturing is on the rise, a trend which should sustain over the medium term. Kranti is poisedtogain efficiency. Our from this change. The future is exhilarating. a burning desire in the nation to finally reclaim its the global manufacturing space. This will open incredible opportunities for the manufacturing companies like ours. our emploYees ed to adhering to

At our organization, in our commitment to invest in our people and improve our people processes, as we recognize the crucial role our human capital plays in driving our organization's success. Attracting, developing, and retaining the right talent continues to be a strategic imperative for us. To address this, we have dedicated to recruitment, successfully bringing on board new professionals at various levels within our organization.Currently, we have a dedicated workforce of over 275 employees working directly and indirectly for our company.

Our management is wholeheartedly devoted to creating that is conducive and supportive, allowing our employees to excel in their roles. We strongly believe in equipping our workforce with the necessary tools, technology, and techniques to unlock their full potential individual and group performance. In pursuit of this, the HR department regularly organizes training and development programs that aim to sharpen skills, update concepts, and expand knowledge. Additionally, our criticalfunctional heads have undergone external technical training to ensure their readiness for upcoming projects. The safety and well-being of our employees are of paramount importance to us. We prioritize occupationalsafety in all areas of work, including our manufacturing zones. By fostering a other expenses, promote personal and professional profit before growth among our employees. We emphasize the significance of de-stressing techniques and maintaining a growth mindset, firmly believing that content and exceptionally well.

the year that waS.while our deferred

To say the world was in uncharted waters regulations would be an understatement. The adverse impact of a mix of the lingering indirect effect of the pandemic and other health-related issues, armed conflict and climate change has exposed the fragility of the global system that we had primarily considered as having competently learned how to manage itself. This capacity to rebound became harder to model or predict as the crises drivers became harder to anticipate and increasingly intermingled. But the overarching takeaway is that despite global instability, India fared better than almost any other major nation.We take great pride in having made a meaningful contribution to India's economic progress by continuing few notches higher. I am pleased to share with you our financial performance for the year ended March 31, 2023. Despite the challenging business environment, ourconsolidated t revenue from operationsstood at INR 9,323.73 Lacs, which is a marginal decrease of 0.51% compared to the previous year. Despite the slight decrease, our basic value to all stakeholders. We and diluted earnings per share of INR 1.95 demonstrate our ability to generate exemplifies our consistent returns for our investors. Throughout the fiscalyear 2023, we Our team has strategically focused on optimizing costs and efficiently allocating resources mitigate the impact of rising material costs, resulting in a modest 0.95% increase in expenses for the category of Cost of

Material, Operation,

Additionally, we achieved a notable 9.28% reflectingour ongoing efforts to enhance operational exceptional items and tax experienced a positive growth of 13.96%, showcasing our resilience and ability to navigate challenges while maintaining profitability.individuals However, the tax expense increased by 13.88%, primarily driven by current tax obligations, tax decreased by 47.54%. We remain

while actively seeking opportunities for tax optimization. Overall, these financial indicators underscore our dedicationto financial stability and sustainable growth in an ever-evolving market landscape.

Diversity. This single word encapsulates our business strategy in all our business segments. efforts As committed, we have inaugurated our new state of the art manufacturing facility (Plant -3) in Pirangut, on 15th May 2023, which happens to be the Birth Anniversary of our Founder Late Shri Subhash K. Vora. This plantto scale our performance a was Inaugurated by the workenvironment hands of Dr. Balaji Gopalan (Managing Director Carraro India Limited) in the presence of top management of our valued customers and Industry leaders. Thisnewfacilityrepresents investment in the future of our company. With cutting-edge infrastructure, and a talented team, we are well-positioned to needs of our customers and deliver exceptional are proud to have established a state-of-the-art facility that commitment to sustainability, safety, and innovation. tirelessly to ensure that this plant not to only meets the highest standards of quality but also reflects our values as a responsible corporate citizen. In addition to this facility Kranti andIncidentalCost. has acquired a controlling stake in M/s Preciso Metall Pvt Ltd. in April 2023. Its state-of-the-art facility in the Shell moulding casting foundry with the latest equipment and complementing technologies is a perfect fit for Kranti. will strengthen the Company's presence in the non-automotive other engineering segment. We will focus on leveraging the synergies from our recent acquisition, which will appreciably strengthen our presence in the foundry business which is primarily dovetailed to the non-t in our automotive segment. I am confident that this strategic inorganic organic initiative will emerge as a strong growth lever over the coming years.

Today we stand at the edge of massive change, with the world around us rapidly evolving to embrace the next normal. Paradigmatic shifts every layer of our existence, and the manufacturing industry is no stranger to these changing tides. Respect for the Earth is not an add-on for us now. It is embedded in the way we think, in our value system and culture. Yes, the focus is now sharper and more integrated, with consumers and other stakeholders beginning to value their association organisationsand with brands that are responsible. As the global market aligns with changing consumer preferences and demands, we continue to thrive with our visionary approach and agile technologies. Our investments in new facilities green technologies that will reduce our carbon footprint and enable us to help our customers oundry withmeet their sustainability commitments.

The central message I wish to send to shareholders is that Kranti is firmly poised to accelerate its growth. It indicates a sense of preparedness. It indicates the proactive aggregation of competencies required to address future markets. I am optimistic take deeper root within, the quality of our business will evolve, translating into even better financial outcomes and Itstakeholder value.

As we move forward, we remain committed to pushing the boundaries of innovation and craftsmanship, ensuring that our customers receive the highest standards of quality, precision, and reliability. With your support and partnership, we are ability to shape the future of the auto component industry, both in India and on a global scale. Before signing off, I sincerely thank all our stakeholders for their trust and support. I am confident that we will script an exciting growth journey ahead. Once again, I extend my heartfelt gratitude to you. have redefined

Sincerely,

Chairman & Managing Director

Kranti Industries Limited