Demonstrating resolute strength and unwavering determination

Dear Stakeholders,

It is my privilege to present to you Rakan Steel's Annual Report for FY 2022-23. I hope this letter finds you and your families well and safe. The macro-economic volatility and geo-political factors have dominated the global business environment during FY2022-23. Looking ahead, global growth is poised to slow down to 2.8% in 2023 (from 3.4% in 2022), led by a pronounced slowdown in developed markets. In contrast, emerging markets, led by India, will provide some cushion.

India's growth continues to be resilient, underpinned by the Government's capital outlay and buoyant private consumption. India's GDP is estimated to have registered a growth of 6.8% in FY2022-23 and is expected to continue to be the fastest growing large economy for the third consecutive year. From a steel industry perspective, the impact of the tepid global Economic recovery led to easing of global steel production. However, India was a notable exception, overcoming uncertain demand-supply dynamics, volatile raw material prices and residual effects of the pandemic. India's steel consumption grew by over 10% to 117 million tonnes in FY 2022-23. Given the current stage of development of the Indian economy and the focus on infrastructure development, steel demand growth in India is expected to keep pace with the GDP growth over the next decade. Demand from key steel consuming sectors such as construction, capital goods, railways, and automotive is expected to remain robust. The financial performance in FY 2022-23 was impacted by higher cost structure due to elevated energy and emission related costs and raw material price volatility. Furthermore, it is noteworthy to state that Rakan (Private) I.T.I falls under the umbrella of Rakan Group of Institutions, which was established with the objective of instilling technological proficiency in the younger generation to empower them for rewarding employment opportunities through technical and vocational education. Additionally, the institution aims to enhance productivity in both the formal and non-formal sectors of the economy by fostering close collaboration with the industry. With great pride and unwavering conviction, we express our heartfelt appreciation to the management team of I.T.I. for their unparalleled commitment and unwavering dedication in elevating the institution to unprecedented heights, thereby establishing it as a renowned brand. Numerous distinguished companies and industries have partnered with our institution to recruit exceptionally talented and skilled youth, thus fulfilling our ambition of becoming the foremost I.T.I. establishment in the city.

In Rakan Steel, we responded with agility and sharpened our focus on managing the volatility by raising the bar on managing risks arising from sharp changes in underlying trading conditions especially given our long supply chain. Despite the challenging circumstances, Rakan Steels Limited is diligently understanding the situation and devising innovative strategies to enhance growth prospects and counter the decline in revenue. The Company asserts the employees to be its most valuable assets. We adhere to a "People First" philosophy. Our focus is on nurturing our workforce, fostering a conducive environment that inspires our employees to realise their full potential and maintaining a high level of engagement. Furthermore, achieving this would be impossible without the trust and confidence of our esteemed shareholders. I express my heartfelt gratitude to my colleagues at Rakan Steels Limited, the Board, and investors for standing by us and assisting us in navigating through numerous challenges towards new horizons. Looking forward, I maintain a positive outlook on the opportunities arising from the work we are undertaking for our clients and sincerely hope that we accomplish all the cherished aims and goals we have consistently pursued.