Cera Sanitaryware Ltd

To

The Members,

The Directors have pleasure in submitting the 27^th Annual Report together with the Audited financial statements of your Company for the year ended 31^st March, 2025.

Performance

The summary of your Company's financial performance on Standalone basis is given below: (Rs. in Lakhs)

The summary of your Company's financial performance on Consolidated basis is given below: (Rs. in Lakhs)

Transfer to Reserves

The Company has transferred a sum of Rs. 6,113.35 Lakhs to General Reserve in the current year (previous year Rs. 5462.66 Lakhs).

Highlights / Performance of the Company

Revenue from Operations of the Company for the year increased by 2.4% (Rs. 1,91,525.12 Lakhs in FY 2024-25 as compared to Rs. 1,87,123.47 Lakhs in FY 2023-24).

EBITDA for the year decreased by 0.6% (Rs. 35,322.73 Lakhs in FY 2024-25 as compared to Rs. 35,543.07 Lakhs in FY 2023-24).

Profit after Tax for the year increased by 3% (Rs. 24,648.43 Lakhs in FY 2024-25 as compared to Rs. 23,916.90 Lakhs in FY 2023-24).

Exceptional Item:

The Company acquired share capital worth Rs. 806 Lakhs for 26% stake in M/s Milo Tile LLP ("Milo") in FY 2018-19. During FY 2022-23 Milo had been unable to maintain product quality parameters which has forced the Company to discontinue procuring tiles from Milo, and raise claims based on inferior quality products supplied by Milo.

Subsequently, the matter was referred to arbitration in accordance with the terms of the agreement between the parties. However, during the mediation process, both parties agreed to an amicable settlement in March 2025 whereby CERA retired from the LLP without any claim on its capital or share of profits in the LLP and also paid an amount of Rs. 160.00 Lakhs as full and final settlement against the Trade Payables due to Milo.

Pursuant to this settlement, the entire investment of Rs. 806 lakhs in Milo Tile LLP was not recoverable, hence written off by adjusting against the impairment Loss provided (Rs. 500.00 Lakhs in FY 2022-23, Rs. 155.57 Lakhs in FY 2023-24 and remaining amount of Rs. 150.43 Lakhs in March 2025 quarter) and disclosed as an exceptional item in the respective periods.

Dividend

Your Directors recommended a dividend of Rs. 65/- per share (1300%) on 1,28,97,541 Equity Shares of Rs. 5/- each fully paid for the year ended 31^st March, 2025 [Previous year Dividend of Rs. 60/- per share (1200%) on 1,30,05,874 Equity Shares of Rs. 5/- each fully paid], to be paid subject to the approval of the members at the ensuing Annual General Meeting.

Pursuant to the requirements of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations'), the Dividend Distribution Policy of the Company is available on the Company's website at https:// www.cera-india.com/policy-and-statutory-documents/ dividend-distribution-policy

During the year, the unclaimed dividend pertaining to the financial year ending 2016-17 were transferred to the Investor Education and Protection Fund.

Buyback of Equity

During the year under review the Company has bought back 1,08,333 fully paid-up equity shares having a face value of Rs. 5/- each at a price of Rs. 12,000/- per equity share through tender offer route. The said Buyback offer remain opened from 22^nd August, 2024 to 28^th August, 2024. The Buyback offer subscribed 82.69 times of the maximum number of Equity Shares proposed to be bought back. The settlement of bids was completed on 4^th September, 2024 and the payment consideration to eligible shareholders for buyback was also executed on the same day. The extinguishment of 1,08,333 Equity Shares completed on 10^th September, 2024, all of which are in dematerialized form. Out of 1,08,333 equity shares, 67,379 equity shares from Promoters and 40,954 equity shares from Public shareholders were brought back under Buyback offer. Pursuant to the Buyback the Promoters and Promoter Group holding marginally decline from 54.48% to 54.41% (% of post buyback paid up capital).

Sanitaryware Unit

Your Company has aligned the production in response to the market demand, leveraging all available resources effectively.

The active collaboration between workers and staff in implementing new initiatives focused on safety, quality, delivery and cost has yielded significant improvements. This concerted effort has led to enhanced product yield and ensure timely delivery of products. Substantial portion of land parcel was acquired for our greenfield expansion project of Sanitaryware unit.

Your Company is adhering to the best manufacturing practices to cultivate a culture of Continuous Improvement through activities such as waste elimination, small improvements like Kaizen, dedicated projects aimed at cost-saving and sustainability, there has been a notable enhancement in the utilization of deployed resources.

Your company remains steadfast in its commitment to pioneering new and innovative product designs, such as the one-piece symphonic EWC, high-end rimless Wall Hung EWC, innovative colours and Lustre series products, through its dedicated New Product Development (NPD) team. By institutionalizing various knowledge-sharing forums, review mechanisms, process controls, and standard operating procedures, we have successfully achieved repeatability and reproducibility across new SKUs. In line with these priorities, your company has also commissioned a CNC router, which will significantly reduce the time required for delivering NPDs while enhancing dimensional accuracy and functional performance.

The active participation of workmen in diverse activities such as sports Event, counselling sessions, reward and recognition programs, and various continuous improvement initiatives is fostering a culture of positivity and trust-building at the shop floor. This engagement not only promotes employee well-being but also enhances morale and strengthens the bond between the workforce and the Company.

Your company remains dedicated to delivering high-quality products to our valued customers in accordance with demand, while ensuring optimal utilization of resources. This commitment underscores our focus on meeting customer expectations while maximizing efficiency across our operations.

Faucetware Unit

Your Company has shown growth, yet another year in terms of production and sales volume, which lead the company to reach to the higher level of achievements. Company has

the culture of continual improvements and shall continue achieving the same through various debottlenecking projects, implementation of latest technologies and automation of the processes.

Your Company expects even higher growth in the coming times in its Faucets business. With this in view, as you know, company had launched new colour faucet designs in line with the changing customer preferences and market need. We have now further launched 84 additional new products in 3 ranges which has come to total launch of more than 450 new colour SKUs. We have developed strong capability to supply the rising demand in less than 60 days.

Your company has completed expansion to operate at the total capacity of 4.8 Million Pcs per annum. The factory holds strong Zero Liquid Discharge status which keep it separate and unique. To further strengthen effluent treatment, we have added "Ozonater" treatment technology.

Your company remains dedicated to deliver high-quality products and has enhanced its world class manufacturing technology with new additions of Japanese CNC technology. Your company is committed to focus on customer expectations while maximizing operational excellence.

Your company is committed to focus on conservation of natural resources. Company will also emphasis the development and sale of WATER saving products which are very crucial for the sustenance of environment and preservation of ecosystem. There are close to 48% of products offering in the portfolio which can also be offered as water saving products.

Bathware Unit

Your company continued to expand its product portfolio, catering to a diverse spectrum of consumers.

Senator

With the luxury segment gaining traction, your company was successful in positioning Senator in the Luxury space and now the brand has a complete offering of products, which includes the Wellness Bathtubs, Electronic Toilets, Designer Art Basins, Fine Fire Clay Basins, Thermostatic High Performance Diverters, LED Showers and much more. These additions are designed to elevate customer experience and satisfaction.

CERA Luxe

Last year, we have introduced CERA Luxe—a portfolio of high-end SKUs designed to elevate our product offering. With elegant designs and premium aesthetics, CERA Luxe is tailored for the modern consumer's refined tastes.

CERA Luxe provides a complete premium series of Sanitaryware (Water Closets, Basins) and Faucets; all designed to match evolving consumer preferences. Modern, refined, and perfectly coordinated for premium bathroom spaces.

CERA

Cera continues to innovate with new product categories, including Bathroom Vanity Cabinets and also added new colours Coffee, Beige and Grey in the Lustre collection. These additions aim to enhance the bathroom decor and provide more choices to the customers.

Highest Share of voice in Media

Our brand visibility and presence have always been stronger, and your company continues to invest in strategic marketing initiatives to reinforce our leadership position.

CERA TV Campaign was live across PAN-INDIA on News channels during the Lok Sabha and Delhi Elections, with 40+ channels , more than 10,000 spots covering HSM and regional markets.

One strategic initiative we have taken last year was to associate with Bigg Boss OTT, a popular show with a strong youth viewership. This collaboration enables us to create a deeper connection with our target audience.

Your company additionally, continues to invest in Tamil Nadu market by associating with Bigg Boss Tamil, on Star Vijay hosted by the superstar Vijay Sethupathi. The objective was to ensure consumer awareness and drive long-term business growth.

Brand CERA in Digital Media

Your company have taken high traffic , high visibility airports - Hyderabad , Goa , Delhi , Kolkatta , Indore and Mumbai across the country to create visibility and top of mind recall.

Your company also participated in the biggest spiritual gathering the Maha Kumbh Mela. With an influx of millions of people from across India and beyond, your company strategically executed a strong advertising campaign that ensured high impact and visibility throughout the event. This campaign has been a testament to the power of strategic branding at cultural mega-events. Your company not only gained significant brand recognition but also established a deeper connect with our consumers.

Your company have also used trade magazines to promote brand, these magazines are widely read by industry professionals and potential customers. In addition to traditional ads, your company have also leveraged advertorials —editorial-style advertisements designed to educate and inform readers about our products in a more engaging and persuasive way.

Together, these efforts enhance brand awareness, establish credibility, and drive interest in our products among the right audience.

Your company have also effectively leveraged social media by creating engaging, product-centric short reels featuring our brand ambassador, Kiara Advani. These reels not only highlight our products but also resonate with our audience, generating significant consumer appreciation and engagement.

Your company believe that true brand advocacy comes from those who shape the industry-architects and interior designers. That's why your company have invested in creating a wealth of short-format content, endorsed by industry experts, to bring our brand and products closer to the people who matter most.

Like past years, last year also your company launched the digital contest with the name #CeramoodMatch, inviting consumers to participate and showcase their creativity. The response has been phenomenal, with engagement on our page skyrocketing multifold.

The world is evolving, and so is the way customers engage with brands. Convenience, accessibility, and seamless experiences are at the heart of modern commerce. Recognizing this, your company have taken a significant step forward by launching e-commerce through our website.

With this platform, customers can now explore our wide range of products, select what they need, and place orders from anywhere, at any time, with just a few clicks. However, what truly sets our e-commerce model apart is that it is designed to benefit our channel partners. We are proud to share that we have already onboarded 200+ channel partners on this journey and we are just getting started. With this initiative, your company is confident that we will not only expand our reach but also create alternate new revenue opportunities for our channel partners.

Your company has launched Lead Management System. The system gathers potential consumer leads from various sources (website, social media, landing pages, events, etc.). A call centre team qualifies and filters out unqualified leads. Meaningful leads are passed on to your Channel partners for conversion.

Your company have also invested for Channel Partners in Hyperlocal Marketing which is a game changer in consumer engagement. By investing in this initiative, your company is driving more consumers to the channel partner showrooms and enhancing their experience.

Trade expansion and development with brand stores

Your company have aggressively expanded the retail footprint to strengthen the distribution network across. A complete transformation of CERA brand stores was carried out to enhance the consumer experience, and your company successfully launched 350 new stores in the last financial year. 20 New Senator Showrooms were launched last year, with plans to open 50 more in the upcoming financial year. Additionally, for CERA Luxe, your company aims to expand its presence with 50 new exclusive stores in the next financial year.

Your company have significantly expanded the reach by opening Company-Owned, Company-Managed CERA Style Studios across all key markets in the country - Mohali,

Jaipur, Pune and Lucknow. With this addition the company now own 13 experience centres across the country.

These state-of-the-art experience centres are designed to showcase our entire premium product portfolio, especially our smart toilets , powder room faucets and wellness range, in a way that truly brings our innovations to life. Now, our channel partners have the perfect place to direct their customers, where they can explore and experience our offerings firsthand.

Your company strongly believe that this initiative will empower our partners to close leads more effectively and drive higher conversions.

Your company have actively participated in key industry events and exhibitions - IIID Natcon (Nashik), Architectural Festival (Lucknow), The Hindu Home Expo (Kochi and Thiruvananthapuram), CONWOO, (Siliguri), CREDAI Exhibition (Vijayawada), MES-BAI (Coimbatore), BUILDTEC 2024 (Karnataka) and others, giving our brand strong visibility and positioning. These platforms have helped us reach the right audience and showcase our wide range of products effectively.

This not only strengthens our market presence but also drives consumer interest, creating more opportunities for the brand. Your company remain committed to such initiatives to ensure continued growth and success

Loyalty Program

The CERA Superstar Retailer program has seen strong participation with 24,400 retailers enrolled, while the CERA Star Plumber initiative successfully onboarded 52,556 plumbers.

After the successful launch of these programmes the CERA Star Mason program is also gaining traction, with more than 4,500 masons already onboarded.

Awards

CERA won the most affiliated awards such as "Super Brand 2025" and Reader's Digest Trusted Brand 2024.

Tiles Unit

In CERA tiles, your company have expanded the portfolio and now we have more than 1,800+ designs, covering a wide range of categories and sizes: from 18x12 inches to 180x120 inches, all reflecting the latest trends in surface finishes. Last year, we have introduced six different finishes in the 600x1200 mm category, and the response from the market was overwhelming. Our 600x1200 porcelain tiles launched last year saw remarkable acceptance, and sales of 1200x1800 slabs have doubled year-on-year. We're set to introduce even more innovative surfaces in 600x1200 GVT, including Shrinker High Gloss, DG Matt, Shape Sheed Finish, and Cool Roof Tiles. Also, our Construction Chemicals segment has been doing quite well & growing at an impressive YOY growth of 50%.

CERA rigorously conduct training sessions to upskill the knowledge of plumbers and masons. This enables them to get better wages, resolve customer query satisfactorily and install products hassle free. CERA thrives to bring One Culture One Communication among all employees in the organisation, hence various training sessions organised for workers and employees on One culture.

Packaging Unit

CERA holds a 51% stake in its joint venture, Packcart Packaging LLP, which manufactures corrugated boxes. The unit has now reached full production capacity, delivering products on a just-in-time basis, precisely tailored to the Company's specifications.

Polymer Unit

The joint venture unit for polymer products, Race Polymer Arts LLP—where CERA holds a 51% stake—has achieved optimal production capacity during the year. The unit has steadily increased capacity utilization, and high-quality seat covers and cisterns are now consistently available.

Green Energy Unit

As a part of national policy and green energy initiative, Cera has initiated renewable energy capabilities in 1995. The Company has energy security and stabilized power cost by generation of electricity through renewable sources for captive use through windfarms and solar. The current installed capacity of renewable energy through windfarms and solar stands to 10.325 M.W. During the year the Company has produced 114.46 Lakhs KWH power through renewal sources for captive use.

Conservation of energy, technology absorption and foreign exchange earnings and outgo:

Conservation of energy

The Company has two sources of its main energy, viz. Natural Gas- GAIL and Sabarmati Gas Ltd., for operating its Sanitaryware facility. The pricing of both sources differs, as GAIL sources gas from isolated wells in and around Cera's manufacturing facility and is able to contract gas at a price lower than prevailing market price. Medium term contracts with these suppliers were renewed last financial year. For energy conservation, the company has installed fuel efficient burners to control gas consumption and in addition to this, every effort is made by the company to adapt any technological developments in energy conservation.

Energy Conservation Project in the Existing System

Significant efforts were undertaken to enhance energy efficiency across operations.

> A key focus was the utilization of kiln waste heat for drying greenware and moulds, contributing to considerable energy savings.

> Standardization of gas pipelines and pressure regulators enabled efficient operation at reduced gas pressure levels.

> Overall plant efficiency was improved, resulting in reduced energy consumption.

> Savings were achieved by introducing area-wise weekly offs, replacing staggered weekly offs, which optimized energy use during casting drying.

> The implementation of a closed heating system for casting also helped reduce drying time and energy usage significantly

The second energy, viz. electricity, required for running the machineries, is supplied by the local Discom. To compensate the energy consumption by way of electricity, your Company has an installed capacity of Wind Turbines of 8.325 MW and Solar Plants of 2.00 MW which generates about most of the Company's electricity requirement, and this gets offset against monthly consumption of the energy bill.

> Slip ring induction motors replaced with High efficiency motors (IE-3)

> Energy efficient ceiling fan replaced 100% across SW and FW plant.

> LED and Optimization senser light across the plant (SW&FW).

> Timer controlled electrical equipment operations like HF Plant, Water coolers, ACs, Street light etc.

> Improvement in power factor (Installation of Automatic power factor Bank).

> Installation of energy efficient imported electric furnace in FW division

> Periodic audit of air and energy consumption. Basis the outcome of audit both plant took corrective actions in PW divisions

> Installation of energy efficient air compressor machines.

> Installation of new LED lights and replacement of All CFL lights.

Technology absorption and foreign exchange earnings and outgo

The information on technology absorption and foreign exchange earnings and outgo stipulated under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as a separate Annexure- II.

Environmental Social Governance (ESG)

Cera adopted a holistic approach to Environmental, Social, and Governance (ESG) matters, placing great importance on the trust placed in it by stakeholders including customers, the communities it serves, and society at large and remains dedicated to safeguarding and advancing their interests.

Cera is highly committed to ensuring zero environmental impact due to its operations. The Company stringently adheres to norms governing reduction of emissions, pollution control and other environmental aspects. Some of the broad initiatives undertaken by the Company include:

> Installation of a rooftop solar power system (one of the largest in the Kadi region), which has gone a long way in substantially reducing the carbon footprint.

> Reduction in fresh water intake from 2.5 liter per Pc to less than one litre in the FW division.

> Achieved 30% reduction in hazardous solid waste (ETP) generation per SKU in FY 2024-25 in Faucet ware Division.

> Substantial reduction in the use of Chemical in the treatment of wastewater at FW division

> Improved plant efficiency impacted lower waste generation in SW

> Safety culture through, Incident investigations, Safety training,near miss reporting and hazard identification.

> Cera has managed to stabilize power cost by generating electricity through non-conventional sources (wind and solar) for captive use. As of FY25, its total installed non- conventional energy capacity stood at 10.325 MW, which produced 114.46 lakh units. Maximum of its energy needs are met through renewable energy.

> By successfully developing a fully functional rainwater- harvesting system, Cera has managed to reduce dependence on ground water usage. Further, by recycling water used for the manufacturing process the Company has reduced the water intensity of its operations.

> Cera Faucet ware has upgraded the Zero Liquid discharge plant to meet the requirement of higher norms of the government.

> Under the initiative of ‘Waste Minimization and Waste Utilization', the Company has been undertaking numerous measures. Some of these measures include recycling of solid and liquid and ZLD (zero liquid discharge), high energy efficient rated machines, compliance to pollution norms and awareness generation among employees etc. Majority of the waste generated in the Company's operations is recycled and the balance is disposed-off safely. The Company has also installed a Effluent Treatment Plant at both of its facilities.

Corporate Social Responsibility and Social dimension at Cera

Cera Sanitaryware Limited continues its commitment to sustainable development for society through its Corporate Social Responsibility (CSR) initiatives in Kadi (Gujarat), Kolkata (West Bengal), and surrounding areas. Your Company has always laid emphasis on progress with social commitment. We believe strongly in our core values of

empowerment and betterment of not only the employees but also our communities. CERA believes that real progress occurs when privileges are balanced with the responsibilities towards society. Following this principle, Late Mr. Vidush Somany, our Company's Executive Director had laid the foundation of a comprehensive approach towards promoting and facilitating various aspects of nearby communities. The Board has approved a policy for Corporate Social Responsibility and same has been uploaded on the website i.e.https://www.cera-india.com/policy-and-statutory- documents/corporate-social-responsibility-policy

During the financial year 2024-25, CERA spent Rs. 469.29 Lakhs on various CSR initiatives in the areas of Education, Healthcare, Rural & Urban Development, Women Empowerment, Poverty Alleviation, and Technological Innovation.

As part of its environment protection efforts, CERA initiated a plantation drive of more than 12,000 trees, creating an Oxygen Park—the first of its kind in Kadi—using the globally recognized Miyawaki method. This dense green forest contributes to enriching oxygen in the air and aims to provide a cleaner and healthier environment for future generations.

In the healthcare sector, CERA launched Gujarat's first maternity tracking project using tablets in Mehsana district. 10 tablets were provided to health supervisors across 10 talukas to monitor pregnant women and malnourished children. In addition, ECG machines, baby warmers, a sonography machine, laparoscopy machine, C-arm machine, CBC analyser, digital BP monitors, HbA1c kits, Hemodialysis for Behala Balannanda Hospital, Echo Doppler machine, and Panchkarma wellness equipment were donated to rural health centers, Hospitals and Ayurvedic institutions. Ventilator Servo-C and Ventilator Servo-U for Institute of Neuro science, Kolkata.

A unique and impactful initiative was undertaken to support underprivileged children with Type-1 Juvenile Diabetes, wherein domestic refrigerators were provided to 20 children to store insulin safely. This effort was widely appreciated by Mr. Rushikesh Patel, Health Minister of Gujarat, during a health program in Visnagar.

CERA also contributed to education and innovation, supporting infrastructure development in Irana, Budasan, and Adundara villages, including construction of classrooms, labs, mid-day meal kitchens to Annamrita Foundation, computer rooms, and water facilities. Solar systems were installed at Gokul Residential Primary School, and bedding kits were distributed to tribal hostel students. In collaboration with Amrut Mahesana Startup & Innovation Mission, CERA supported a "New Age Education Centre" for promoting startups and entrepreneurship, which was inaugurated in the presence of Mehsana District Collector Mr. M. Nagarajan.

Under rural development, CERA developed a 11-km road divider from Kadi to Chhatral to enhance road safety and environmental awareness, which was praised by the former Deputy Chief Minister of Gujarat. Wall paintings and

motivational slogans were created on the newly constructed underbridge in Kadi to raise civic consciousness. To support local governance, a Xerox-cum-printer was donated to the Kadi Taluka Mamlatdar Office, benefiting 110 villages for efficient delivery of public welfare schemes.

Recognizing the cultural diversity of migrant workers, CERA constructed a Chhath Puja Ghat in Kadi, providing a dignified space for cultural celebration and social integration.

CERA's consistent efforts in community upliftment, health, education, environmental sustainability, and administrative support have once again earned appreciation from government officials and local administration, reinforcing its role as a responsible and people-centric organization.

Annual Report on Corporate Social Responsibility (CSR) Activities as per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as a separate Annexure- III.

Governance at Cera

The Company believes in the values of transparency, professionalism and accountability. The best Corporate Governance practices have been a strong endeavor of the Company since its inception. The organization strongly believes that there is a direct association between good corporate governance practices and stakeholder value enhancement. The Company recognizes the accountability of the Board and the importance of its decisions on its customers, dealers, employees, shareholders and with every individual, who comes in contact with the Company.

Its policy relating to ethics, bribery and corruption serves as the guiding philosophy for its employees. The Company also has a whistle blower policy in place, which provides a platform to all employees, vendors and customers to report any suspected fraud or error or confirmed incident of fraud / misconduct. CERA always seeks to ensure that it attains performance goals with integrity. Corporate Governance has indeed been an integral part of the way CERA has done business.

Going ahead, the Company aspires to continue deepening its focus towards the environmental social governance (ESG) aspect in the organization and create a sustainable future for all its stakeholders.

Subsidiary

The Company has two Subsidiary LLPs namely Packcart Packaging LLP & Race Polymer Arts LLP.

There are no associate companies within the meaning of Section 2(6) of the Companies Act, 2013 ("Act"). Further there has been no material change in the nature of business of the subsidiary. The Company does not have any material subsidiary. The Policy on Material Subsidiary framed by the Board of Directors of the Company is available on Company's website at the link https://www.cera-india.com/policy-and- statutory-documents

Those Shareholders who are interested in obtaining a copy of the audited annual financial statements of the subsidiary may write to the Company. The Audited financial statements of subsidiaries are available on the website of the Company www.cera-india.com

Pursuant to the provisions of Section 129, 134 and 136 of the Companies Act, 2013 with rules made thereunder and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has prepared consolidated financial statements of the Company and salient features of the financial statement of the subsidiaries is set out in the prescribed form AOC-1 forming part of this Annual Report.

Particulars of contracts or arrangements with related parties

All transactions entered with Related parties as defined under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 during the financial year were in the ordinary course of business and on an arm's length basis, the details of which are included in the notes forming part of the financial statements.

There were no material related party transactions entered during the year. Accordingly, information in form AOC - 2 is not annexed. Further no materially significant related Party transactions were made by the Company with Directors, Key Managerial Personnel or other Designated Persons, which may have a potential conflict with the interest of the Company at large. All related party transactions were placed before the Audit Committee and also the Board as applicable for approval. The Company has framed a policy on RPTs for the purpose of identification, approval and monitoring of such transactions. The policy on Related Party Transactions is hosted on the Company's website at https://www.cera- india.com/policy-and-statutory-documents/related-party- transaction

Directors

During the year under review, upon the recommendation of Nomination and Remuneration Committee Mrs. Deepshikha Khaitan has been re-appointed as Vice Chairman and Joint Managing Director of the Company w.e.f. 1^st April, 2025 for the term of 5 years. Her appointment was also approved by the members of the Company through Postal ballot process on 22^nd March, 2025.

The Board is comprising of three Executive Directors and four Independent Directors namely, Mr. Surendra Singh Baid, Ms. Akriti Jain, Mr. Ravi Bhamidipaty and Mr. Anandh Sundar. Independent Directors are not liable to retire by rotation. All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances which may affect their status as Independent director during the year under review and have also confirmed that they are not aware of any circumstance or

situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence. The Company keeps informed independent directors about changes in the Companies Act, 2013 and rules and other related laws from time to time and their role, duties and responsibilities.

Mr. Anupam Gupta Executive Director (Technical) is due to retire at the ensuing Annual General Meeting and being eligible, offers himself for reappointment. Brief resume of the Director who is proposed to be reappointed at the ensuring Annual General meeting, as required as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard is provided in the notice convening this Annual General Meeting of the Company.

There was no change in the Key Managerial Personnel during the year under review.

Number of Meetings of the Board

The Board of Directors, during the financial year 2024-25 duly met 6 times on 8^th April 2024, 13^th May 2024, 5^th August

2024, 12^th August 2024, 12^th November, 2024 and 11^th February

2025, in respect of these meetings, proper notices were given, and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose.

Audit Committee

The Company has constituted Audit Committee in terms of the requirements of the Act and rules framed thereunder and applicable listing regulations. For details please refer Corporate Governance Report attached as a separate Annexure-VI.

Directors' Responsibility Statement

In compliance of Section 134(5) of the Companies Act, 2013, the Directors of your Company confirm:

> that in the preparation of annual accounts, the applicable accounting standards have been followed and there are no material departures;

> that such accounting policies have been selected and applied 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 as on 31^st March, 2025 and of the Profit of the Company for the year ended on that date;

> that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

> that the annual accounts have been prepared on a going concern basis;

> that internal financial controls have been laid down to be followed by the company and that such internal financial controls are adequate and were operating effectively;

> that proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Board Evaluation

Pursuant to the provisions of the Companies Act, 2013 and Rules made thereunder, Schedule - IV of the Act and SEBI (LODR) Regulations, 2015, the Board has carried the evaluation of its own performance, individual directors, its committees and Key Managerial Personnel, on the basis of attendance, contribution and various criteria as recommended by the Nomination and Remuneration Committee of the Company.

Separate meeting of the Independent Directors was held on 28^th March, 2025. The Chairperson of meeting of Independent Directors briefed the Board that the Independent Directors have carried out the performance evaluation of the Board as a whole, its committees, the Non-Independent Directors, Chairman and flow of information between the management and the Board. Pursuant to above, the Board expressed the satisfaction on the functioning of the Committees and performance of Individual Directors.

Policy on Directors appointment and remuneration

Criteria determining the qualifications, positive attributes and independence of Directors.

Independent Directors

• Qualifications of Independent Director.

An Independent director shall possess appropriate skills, qualifications, experience and knowledge in one or more fields of finance, law, management, marketing, administration, corporate governance, operations or other disciplines related to the Company's business.

• Positive attributes of Independent Directors.

An independent director shall be a person of integrity, who possesses knowledge, qualifications, experience, expertise in any specific area of business, integrity, level of independence from the Board and the Company etc. Independent Directors are appointed on the basis of requirement of the Company, qualifications & experience, expertise in any area of business, association with the Company etc. He / She should also devote sufficient time to his/her professional obligations for informed and balanced decision making; and assist the Company in implementing the best corporate governance practices.

• Independence of Independent Directors.

An Independent director should meet the requirements of Section 149(6) of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015 and give declaration to the Board of Directors for the same every year.

Other Directors and Senior Management

The Nomination and Remuneration Committee shall identify and ascertain the qualifications, expertise and experience of the person for appointment as Director or at senior management level and recommend to the Board for his / her appointment.

The Company shall not appoint or continue the employment of any person as Whole-time Director or Senior Management Personnel if the evaluation of his / her performance is not satisfactory. Other details are disclosed in the Corporate Governance Report under the head Nomination and Remuneration Committee and details of Remuneration (Managing Director / Whole Time Director(s) and Non- Executive Directors) are attached as a separate Annexure- VI to this Report.

Familiarisation Programme for

Independent Directors

The Independent Directors have been updated with their roles, rights and responsibilities in the Company with necessary documents, reports and internal policies to enable them to familiarise with the Company's procedures and practices. The Company endeavours, through presentations at regular intervals, to familiarise the Independent Directors with the strategy, operations and functioning of the Company and also with changes in the regulatory environment having a significant impact on the operations of the Company and issues faced by the ceramic industry. The Independent Directors also meet with senior management team of the Company in formal/informal gatherings. The details of Familiarisation programmes provided to the Independent Directors of the Company are available on the Company's website https://www.cera-india.com/policy-and-statutory- documents/familiarization-programme

Remuneration / Commission from Holding or Subsidiary Company

Managing Director or Whole Time Director are not receiving any remuneration / commission from any Holding Company or Subsidiary Company.

Remuneration Policy

This Nomination and Remuneration Policy ("Policy") provides the framework and key guiding principles to be followed in for appointment and determination of remuneration of Directors, Key Managerial Personnel and Senior management personnel.

This Policy is to establish and govern the procedure applicable:

a) To evaluate the performance of the members of the Board.

b) To ensure remuneration to Directors, KMP and Senior Management involves a balance between fixed and incentive pay reflecting short and long-term performance objectives appropriate to the working of the Company and its goals.

c) To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage.

The said Policy is available on the website of the Company https://www.cera-india.com/policy-and-statutory- documents

Managerial Remuneration and Employees

Details required pursuant to Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 are enclosed separate as an Annexure IV.

Details of employees required pursuant to Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as a separate Annexure, however it is not being sent along with this annual report to the members of the Company in line with the provisions of Section 136 of the Companies Act, 2013 and rules made there under. Members who are interested in obtaining these particulars may write to the Company Secretary at the Registered Office of the Company. The aforesaid Annexure is also available for inspection by members at the Registered Office of the Company, 21 days before and up to the date of the ensuing Annual General Meeting during the business hours on working days.

Employee Stock Option Scheme ("ESOS")

The Board of Directors believes that Equity-based compensation schemes are effective tools to attract, retain, motivate, and reward the critical talents working exclusively with the Company. With the objective to motivate key employees for their contribution to the corporate growth on sustained basis, to create an employee ownership culture, to retain the best talent in the competitive environment and based on recommendation of Nomination and Remuneration Committee, the Board of Directors of the Company at its meeting held on 8^th April, 2024 approved the introduction and implementation of ‘Cera Sanitaryware - Employee Stock Option Scheme 2024' ("ESOS 2024" or "Scheme") by the primary issuance/secondary acquisition of the shares through trust route or both in one or more tranches by Cera Sanitaryware Employees Welfare Trust. The aforesaid ESOS 2024 was also approved by the Members of the Company through postal ballot process on 16^th May, 2024.

The ‘CERA Sanitaryware Employees Welfare Trust' (Trust) was set-up and bring into existence in due compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI SBEB Regulations") and provisions of the Applicable Laws including the Indian Trusts Act, 1882, with a view to administer Scheme through the Trust. This trust is managed

by Qapita Equitytech Ltd (Formerly Known as KP Corporate Solutions Ltd.) as an Independent Trustee.

During the year under review the Trust has purchased 3739 Equity shares of the Company from open Market. The Nomination and remuneration Committee of the Company have granted 14,950 Options to 24 eligible employees of the Company on 4^th June, 2024 in accordance with Scheme.

Disclosure required under regulation 14 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and Section 62(1)(b) of the Companies Act 2013, read with Rule 12(9) of the Companies (Share Capital and Debentures) Rules, 2014 are set out in Annexure V to this report. The details are also available on the website of the Company at the weblink: https://www.cera-india.com/esos-disclosures

Necessary certificate as required to be given by secretarial auditors of the company that the scheme has been implemented in accordance with regulations of SEBI (Share Based Employee Benefits And Sweat Equity) Regulations, 2021 and in accordance with the resolution will be made available to shareholders at ensuing general meeting at link https://www.cera-india.com/esos-disclosures

Company has not sanctioned loan to any of its employees for purchase of Company's shares under any scheme.

Corporate Governance and Management Discussion and Analysis

Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, report on Corporate Governance and Management discussion and Analysis have been included in this Annual Report per separate Annexure- VI and Annexure-I respectively.

Business Responsibility and Sustainability Report ("BRSR")

As required under Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, Business Responsibility and Sustainability Report forms part of the Directors' Report and is enclosed as separate Annexure-VII.

Annual Return

Pursuant to Section 134(3)(a) and Section 92(3) of the Act, the Copy of Annual Return of the Company for the financial year ended 31^st March, 2025 will be placed on the Company's website at www.cera-india.com

Particulars of Loans, guarantees or investments u/s 186.

No loan, guarantee or security has been provided by the Company during the year under review. Details of Investments covered u/s 186 of the Companies Act, 2013 are given in the notes to the Financial Statements.

Risk Management Policy

The Board has approved and implemented Risk Management Policy of the Company including identification and element of risks. Pursuant to amendments in SEBI (Listing Obligations and Disclosure Requirements Regulations), 2015, the Board of Directors of the Company has constituted the Risk Management Committee having its scope and functions as per Risk Management policy. The Company has in place the Risk Management Policy to ensure effective responses to strategic, operational, financial and compliance risks faced by the Organisation. The risk management system is designed to safeguard the organisation from various risks through adequate and timely action. It is designed to anticipate, evaluate and mitigate risks in order to minimise its impact on the business.

The Risk Management system is also overseen by the Board of Directors/Audit Committee/ Risk management Committee of the Company on a continuous basis. The major risks identified by the businesses are systematically addressed through mitigation actions on a continual basis.

Internal Control System and its adequacy

The Company has internal control system commensurate with the size, scale and complexity of its business operations. The scope and functions of Internal Auditor are defined and reviewed by the Audit committee. The Internal Auditor assesses opportunities for improvement of business processes, systems and controls, to provide recommendations, which can add value to the organization.

Share Capital

The paid up Equity Share Capital as on 31^st March, 2025 was Rs. 644.88 Lakhs divided into 1,28,97,541 Equity Shares of Rs. 5/- each fully paid. During the year under review the Company has brought back 1,08,333 equity shares under Buyback Offer from the eligible shareholders. No shares with differential voting rights, were issued by the Company during the year under review.

During the year the Company has transferred 4460 Equity Shares to Investor Education and Protection Fund, pursuant to the provisions of sections 124 & 125 of the Companies Act, 2013 and Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016.

Deposits

The Company has not accepted any deposits falling within the ambit of Section 73 of the Companies Act, 2013 and The Companies (Acceptance of Deposits) Rules, 2014.

Finance

During the year under review, the Company does not have any long term loans/debts from Financial Institutions and Banks. The Company is availing Working Capital facility from State Bank of India.

During the year there is no default in payment of loan facility availed from Bank or Financial Institution, therefore details of difference between amount of valuation done at the time of one time settlement and valuation done while taking loan from bank or financial institutions is not applicable.

Statutory Auditors and their Observations

Singhi & Co., Chartered Accountants are the statutory auditors of the Company. They are appointed for a period of five years, from the conclusion of 24^th AGM till the conclusion of the 29^th AGM (AGM of financial year 2026-27). The Auditors' Report to the members for the financial year under review does not contain any qualification, reservation or adverse remark or disclaimer.

Cost Records and Cost Auditors

In terms of Section 148 of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, your Company duly maintain the cost accounts and records. K.G. Goyal & Co., as Cost Auditors has carried out the cost audit for applicable businesses during the year under review. The Company has appointed K.G. Goyal & Co., as Cost Auditors for conducting cost audit for the year 2025-26. As required by the Companies Act, 2013, a resolution seeking ratification of the remuneration payable to M/s. K.G. Goyal & Co., as approved by the Audit Committee and Board is included in the Notice convening the Annual General Meeting of the Company.

Secretarial Audit

Pursuant to provisions of Section 204 of Companies Act, 2013 and rules made there under, the Company had appointed Parikh Dave & Associates, Practicing Company Secretaries, a peer reviewed firm to undertake the Secretarial Audit of the Company for the year 2024-25. The Secretarial Audit Report for the year 2024-25 given by Parikh Dave & Associates, Company Secretaries in practice is attached as a separate Annexure VIII. The Secretarial Audit Report do not contain any qualification, reservation or adverse remark.

Further, in terms of amendment in Regulation 24A of SEBI Listing Regulations, the Company is required to appoint a Secretarial Auditor for period of 5 (five) years with the approval of its shareholders. The Board of Directors on the recommendation of the Audit Committee, appointed M/s. Parikh Dave & Associates as the Secretarial Auditor of the Company for period of five financial years from FY 2025-26 to FY2029-30 and recommended their appointment to shareholders by placing resolution in the notice of ensuing AGM.

Reporting of Frauds

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditors have not reported any instances of fraud committed in the Company by its Officers

or Employees to the Audit Committee and / or Board under section 143(12) of the Act.

Secretarial Standards

The Company is complying with the applicable Secretarial Standards.

Insurance

Your Company has adequately insured all its properties including Plant and Machinery, Building and Stocks.

Industrial Relations

The Company had executed bilateral agreement for duration of four year with workmen with detailed quantification of fixed and variable wages. A similar agreement on completion of the previous agreement's tenure was signed under section 2(p) 18(1) of Industrial Disputes Act, 1947, for 4 years with workers Union on 4^th August, 2021 which became effective from 1^st September, 2021. The new wage agreement was executed in harmonious environment.

The Company has adequate skilled & trained workforce for its various areas of operations and the skills upgradation of which is being done on continuous basis for improving the plant operations and quality process.

The Company has taken sufficient measures to maintain Industrial Health and Safety at its workplace for employees as laid in the Gujarat State Factories Rules, 1963. Qualified Full time Factory medical officer has been appointed. The Company is also complying and maintaining all applicable Industrial and Labour laws / rules.

The Company has in place a Policy against Sexual Harassment at workplace in line with the requirement of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committees have been set up to redress complaints received regarding sexual harassment. The Company has not received any complaints during the year under the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013. The Company has organized 2 workshops under the said Act during the year under review. In FY 2024-25 two sessions has been arranged for Internal Complaint committee members for deeper understanding on POSH Act and practical aspects of Act. One in month of December 2024 and one in Month of March 2025.

Material changes affecting financial position of the Company

No material changes or commitments, affecting the financial position of the Company have occurred between the end of the financial year of the Company to which the financial statements relate, i.e. 31^st March, 2025 and the date of the Board's Report.

There is no application pending under the Insolvency and Bankruptcy Code 2016 against the Company.

Change in nature of business

No changes have been made in nature of business carried out by the Company during the financial year 2024-25.

Orders passed by Regulatory Bodies or Courts

No regulatory body or court or tribunal has passed any significant and material orders impacting the going concern status and operations of the Company.

Vigil Mechanism

The Company has implemented Vigil Mechanism. For details please refer Corporate Governance Report attached as a separate Annexure-VI.

Appreciation

Your Directors thanks the Bankers for extending timely assistance in meeting the financial requirements of the Company. They would also like to place on record their gratitude for the co-operation and assistance given by State Bank of India and various departments of both State and Central Governments.

management discussion and analysis

Global economic review

Overview: Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably.

The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023).

On the positive side, global inflation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and labour supply improvements. The monetary policies announced by governments the world over helped keep inflation in check as well.

The end of the calendar year was marked by the return of Donald Trump as the new US President. The new US government threatened to impose tariffs on countries exporting to the US unless those countries lowered tariffs for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Performance of the major economies, 2024 United States: Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023.

China: GDP growth was 5.0% in 2024 compared to 5.2% in 2023.

United Kingdom: GDP growth was 0.8% in 2024 compared to 0.4% in 2023.

Japan: GDP growth was 0.1% in 2024 compared with 1.9% in 2023.

Germany: GDP contracted by 0.2% in 2024 compared to a 0.3% decline in 2023.

(Source: CNBC, China Briefing, ons.gov.uk, Trading Economics, Reuters)

Outlook: The global economy has entered a period of uncertainty following the imposition of tariffs of products imported into the USA and some countries announcing reciprocal tariffs on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to conflicts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7% for 2025 and 2026, factoring the various economic uncertainties. (Source: IMF, United Nations)

Indian economic review Overview

The Indian economy grew at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the world's fifth-largest economy.

India's nominal GDP (at current prices) was Y330.68 trillion in FY 2024-25 (Y301.23 trillion in FY 2023-24). The nominal GDP per capita increased from T2,15,936 in FY 2023-24 to Y2,35,108 in FY 2024-25, reflecting the impact of an economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at Y85.47 on the last trading day of FY25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar).

Inflationary pressures eased, with CPI inflation averaging 4.63% in FY 2024-25, driven by moderating food inflation and stable global commodity prices. Retail inflation at 4.6% in FY 2024-25, was the lowest since the pandemic, catalysing savings creation.

India's foreign exchange reserves stood at a high of $676 billion as of April 4, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualized rating upgrade rate 14.5% exceeded the decade- long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).

Gross foreign direct investment (FDI) into India rose 13.6% to $81 billion during the last financial year, the fastest pace of expansion since 2019-20. The increase in the year was despite a contraction during the fourth quarter of 2024-25 when inflows on a gross basis declined 6% to $17.9 billion due to the uncertainty caused by Donald Trump's election and his assertions around getting investments back into the US.

Growth of the Indian economy

E: Estimated

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024-25

(Source: The Hindu, National Statistics Office)

The banking sector continued its improvement, with gross non-performing assets (NPA) for scheduled commercial banks (SCBs) declining to 2.6% as of September 2024, down from 2.7% in March 2024. The capital-to-risk-weighted assets ratio for SCBs stood at 16.7% as of September 2024, reflecting a strong capital position.

India's exports of goods and services reached $824.9 billion in FY 2024-25, up from $778 billion in the previous fiscal year. The Red Sea crisis impacted shipping costs, affecting price-sensitive exports. Merchandise exports grew 6% YoY, reaching $374.1 billion.

India's net GST collections increased 8.6%, totalling %19.56 lakh crore in FY 2024-25. Gross GST collections in FY 2024-25 stood at ^22.08 lakh crore, a 9.4% increase YoY.

On the supply side, real gross value added (GVA) was estimated to expand 6.4% in FY 2024-25. The industrial sector grew by 6.5%, supported by growth in construction activities, electricity, gas, water supply and other utility services.

India's services sector grew at 8.9% in FY25 (9.0% in FY24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY25, compared to 8.6% in FY24. Meanwhile, the construction sector expanded at 9.4% in FY25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY25, with growth at 4.5%, which was lower than 12.3% in FY24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY25, compared to 8.1% in FY24.

The agriculture sector grew at 4.6% in 2024-25 (1.4% in 2023-24). Trade, hotel, transport, communication and services related to broadcasting segment were estimated to grow at 6.4% in 2024- 25 (6.3% in 2023-24).

From a demand perspective, the private final consumption expenditure (PFCE) exhibited robust growth, achieving 7.2% in FY 2024-25, surpassing the previous financial year's rate of 5.6%.

The Nifty 50 and SENSEX recorded their weakest annual performances in FY 25 in two years, rising 5.3% and 7.5% during the year under review respectively. Gold rose 37.7% to a peak of $3,070 per ounce, the highest increase since FY 2007-08, indicating global uncertainties.

Total assets managed by the mutual fund (MF) industry jumped 23% or Rs 12.3 lakh crore in fiscal 2025 to settle at Rs 65.7 lakh crore. At close of FY25, the total number of folios had jumped to nearly 23.5 crore, an all-time peak. During last fiscal, average monthly systematic investment plan (SIP) contribution jumped 45% to Rs 24,113 crore.

Foreign portfolio investments (FPIs) in India experienced high volatility throughout 2024, with total inflows into capital markets reaching approximately $20 billion by year- end. However, there was significant selling pressure in the last quarter, influenced by new tariffs announced by the new US government on most countries (including India).

Outlook

India is expected to remain the fastest-growing major economy. Initial Reserve Bank of India estimates have forecast India's GDP growth downwards from 6.7% to 6.5% based on risks arising from US tariff levies on India and other countries. The following are some key growth catalysts for India in FY26.

Tariff-based competitiveness: India identified at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the US' high tariffs give New Delhi a competitive advantage in the American market over other suppliers. While India faced a 10% tariff after the US suspended the 26% additional duties for 90 days, the levy remained at 145% on China, the biggest exporter to the US. China's share of apparel imports into the US was 25%, compared with India's 3.8%, a large opportunity to address differential (Source: Niti Aayog).

Union Budget FY 2024-25: The Union Budget 2025-26 laid a strong foundation for India's economic trajectory, emphasizing agriculture, MSMEs, investment, and exports as the four primary growth engines. With a fiscal deficit target of 4.4% of GDP, the government reinforced fiscal prudence while allocating H1.21 lakh crore for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 Budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 1, 2025, individuals earning up to H2 lakh annually will be fully exempt from income tax. Economists estimate that the resulting H lakh crore in tax savings could boost

consumption by ^3-3.5 lakh crore, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current t:200 lakh crore.

Free trade agreement: In a post-Balance Sheet development, India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear, and gems & jewellery sectors. About 99% of Indian exports to UK will enjoy zero- duty access tariff cuts; India will cut tariffs on 90% of tariff lines and 85% could become fully duty-free within 10 years.

Pay Commission impact: The 8^th Pay Commission's awards could lead to a significant salary revision for nearly ten million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7^th Pay Commission more than tripled its monthly salaries, raising the range from t:7,000 to t:90,000 to %18,000 to %12.5 lakh, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an ‘above normal' monsoon in 2025. This augurs well for the country's farm sector and a moderated food inflation outlook.

Easing inflation: India's consumer price index-based retail inflation in March 2025 eased to 3.34%, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of FY 2025-26. Besides, India's CPI inflation is forecasted at 4% for the fiscal year 2025-26.

Lifting credit restrictions: In November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritized restoring credit flow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times)

Global sanitaryware market

The sanitaryware market size was estimated at USD 57.28 billion in 2025 (projected to reach USD 79.93 billion by 2030, at a CAGR of 6.89% during the period between 2025 and 2030).

The sanitaryware industry is experiencing a significant transformation driven by rapid urbanization and changing consumer preferences. Global urbanization indicates marked regional variations, with North America leading at

82%, followed by Latin America at 79%, while Asia stands at 52%, creating diverse opportunities.

The industry is witnessing a shift towards sustainable development, with manufacturers increasingly focusing on water-efficient bathroom products and eco-friendly manufacturing processes.

The increasing income levels of consumers in developing countries are driving a significant rise in demand for high- quality sanitaryware products. Between 2020 and 2030, there is expected to be an annual increase of 112 million consumers and $2.4 trillion in spending, reflecting a rise in purchasing power per individual. This trend presents a significant opportunity for the sanitaryware industry, as both the growing consumer base and their enhanced purchasing capacity create a favourable environment for the demand for premium, innovative products.

The global sanitaryware market is expected to be driven by growth factors a rising demand for real estate, booming tourism sector, urbanisation, increasing income levels and enhanced living standards among others. (Source: Mordor Intelligence, GII Global information, Brookings)

Indian sanitaryware industry

The Indian sanitaryware sector is estimated to reach a market size of $948.5 million by 2025, growing at a CAGR of 7.9% from 2024 to 2029.

The rise in disposable income and shifting lifestyles boosted the demand in Indian sanitaryware industry. Consumers are investing in premium, eco-friendly products, with a focus on water conservation and space-saving designs. The increasing focus on sanitation and hygiene has enhanced demand for lifestyle products such as private spas, saunas and larger showers.

There are mostly two types of companies that manufacture sanitaryware in India. One of them is organized companies whereas the other one is unorganised companies. Organized companies address premium market segments on the other hand unorganised companies primarily serve the masses. Around 60% of the market is ruled by organized companies whereas the unorganized industry contributes to less than 40% of the market. India is emerging as one of the popular manufacturing hubs for this industry owing to lower labour costs and availability of raw materials. This has led many MNCs to set up their manufacturing facilities in India.

With 600 million Indians,—40% of the population expected to live in urban areas by 2030, India is experiencing one of the fastest urbanization rates globally. India is experiencing a profound shift towards urban living, with millions of people moving to cities and towns in search of better opportunities. This urbanization has spurred the construction of residential and commercial properties, leading to increased demand for modern and aesthetically pleasing sanitaryware products.

The Indian real estate sector is projected to reach a market size of US$ 1 trillion by 2030, up from US$ 200 billion in 2021, and is expected to contribute 13% to the country's GDP by 2025. This booming sector, which includes both residential and commercial construction, has been a key driver of the sanitaryware market. Developers and builders are increasingly focused on incorporating high-quality bathroom fittings to attract potential buyers and tenants, further fuelling demand for premium sanitaryware products. (Source: MMR, Business Standard, ASD Reports, IBEF, MEPS international, Kadence international)

Government policy initiatives Capital expenditure: For FY 2025-26, the Indian government allocated INR 11.20 trillion for capital expenditure, reflecting a 9.8% increase from the previous year, highlighting the government's commitment towards infrastructure development as a catalyst for economic growth and job creation. This rapid infrastructure expansion, including the construction of airports, hotels, hospitals, and educational institutions, is driving significant demand for sanitaryware products tailored to the unique needs of these sectors.

Swachh Bharat Abhiyan (Clean India Campaign): The

Union Budget 2025 had allocated Rs. 5,000 crore specifically for the Swachh Bharat Mission in urban areas, emphasizing the government's focus on improving urban sanitation and infrastructure development. These financial commitments reflect a strategic approach in enhancing sanitation facilities, which is expected to positively impact public health, environmental sustainability, and the overall quality of life for citizens.

The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme: It aims at improving essential infrastructure for underprivileged populations. It received 10% out of the total allocation of INR 96,777 crore for the Ministry of Housing and Urban Affairs.

The Pradhan Mantri Awas Yojana (PMAY): It is a pivotal initiative aimed at providing affordable housing with essential amenities, including toilets. In the fiscal year 2024-25, the PMAY-G (Gramin) component received an allocation of Rs. 3.06 lakh crore to construct 2 crore additional rural houses. This initiative encourages the development of houses equipped with basic sanitation facilities, thereby improving the quality of life for residents and ensuring better living conditions, particularly in rural areas.

UDAN (Ude Desh ka Aam Naagrik): The UDAN scheme and airport infrastructure development program aim to enhance regional air connectivity by developing airports, including greenfield ones, across India. For 2025, the UDAN scheme has been allocated Rs 540 crore, which is 32% lower compared to the previous year's allocation of Rs 800 crore. The scheme primarily caters to regional travellers and airline companies looking to expand services to underserved areas. By making air travel affordable and accessible to the general public, the scheme promotes economic growth, enhances employment opportunities, and contributes to the overall development of underserved regions, boosting the demand for infrastructure, including sanitaryware products. (Source: ASDReports, Economic Times, Reuters, IBEF, Financial Express)

Growth drivers of the indian sanitaryware market

Rising disposable incomes: India's per capita disposable income rose from US$ 2.11 thousand in 2019 to US$ 2.54 thousand in 2023 and is projected to reach US$ 4.34 thousand by 2029. Consumers prioritize design, aesthetics, and functionality when selecting bathroom fixtures. This trend is driving the demand for modern, designer ceramic sanitaryware products such as water-saving toilets, elegant washbasins and innovative shower panels.

High population growth: As of February 2025, India's population stood at 145,918.84 lakhs, up from 145,093.58 lakhs in 2024. With the global population continuing to rise, there is an increasing demand for new housing units, schools, hospitals, and other public facilities, which in turn drives the need for sanitaryware products such as toilets, sinks, and bathtubs. This growth is especially noticeable in urban areas housing 37.1% of the population, where the influx of people is leading to a greater focus on modernizing and upgrading existing infrastructure. As a result, the demand for innovative, high-quality sanitaryware products is rising to meet the needs of rapidly expanding urban populations.

Growing technological advancements: In recent years, technological advancements have introduced smart features, such as sensor-activated faucets and self-cleaning toilets, which enhance user convenience and hygiene. These advancements improve functionality and efficiency of sanitaryware products and offer a modern, high- tech aesthetic that attracts a broader consumer base. As technology continues to evolve, it propels the development of more sophisticated and sustainable sanitaryware solutions, fostering market growth.

Growing demand for green and sustainable products:

Rising consumer awareness about the environmental impact of products has driven demand for eco-friendly sanitaryware. Consumers are increasingly opting for sanitaryware products made from sustainable materials with low water consumption. This shift has prompted the development of innovative and environmentally conscious products within the industry.

Growing demand for wellness: In 2023, the Indian spa market generated $1,691.2 million in revenue. India accounted for 5.5% of the Asia-Pacific spa market. With wellness becoming a central focus in home design, consumers are increasingly looking to transform their bathrooms into personal spa retreats. This is expected to boost the demand for high-end, stylish sanitaryware products such as designer bathtubs, wellness-focused shower systems and hydrotherapy solutions that offer a luxurious and relaxing experience.

(Source: Orient Ceramic, Data bridge Market Research, IBEF, Economic Times, Credence Research, IMARC, Globaldata)

Company overview

Cera Sanitaryware having its 45^th year of operations, India's fastest growing home solutions provider having

its Headquartered in Kadi Dist. Mehsana. The company's vision is to be a leading provider of bathroom solutions that prioritizes sustainability, delivers value to stakeholders and enhances customer experience. Its mission is to deliver innovative, high-quality bathroom solutions that embrace sustainability, cutting-edge technology, and emerging trends, while fostering customer-centricity, enhancing brand equity and achieving significant growth in both mass and luxury markets.

Risks and concerns

Economic risk: A slowdown in economic growth could impact the Company's cash flows and profitability.

Mitigation: India is projected to remain the world's fastest- growing economy, with a steady growth rate of 6.7% in FY26 and FY27, significantly outpacing the global growth rate of 2.7% in 2025-26. (Source: pib.gov.in)

Regulatory risk: Stricter environmental regulations may require substantial investments in new technologies or limit operational capacity.

Mitigation: The Company's strong compliance framework, strategic investments, and employee training initiatives have led to a reduced carbon footprint and reinforced its reputation as a responsible corporate entity.

Competition risk: Intensifying market competition could impact the Company's market position.

Mitigation: Increased investments in brand development, marketing, distribution, and digital transformation have enhanced the Company's market responsiveness and competitive edge.

Fraud risk: Weak internal controls could expose the Company to fraudulent activities.

Mitigation: The Company has implemented stringent checks and controls, including a centralized payment system, dual authorization, and enhanced financial oversight, to prevent fraud and malpractices.

Inflation risk: Rising inflation that cannot be fully passed on to consumers could impact profitability.

Mitigation: The Company will continue to optimize economies of scale, cost management, and logistics efficiencies to maintain its competitive position.

Gas price risk: A sustained increase in gas prices could negatively impact profitability.

Mitigation: The Company's weighted average cost of gas was lower than the industry average, helping mitigate the impact of price fluctuations.

Outlook

This year performance was marked by a challenging market slowdown characterized by subdued demand across key markets. Despite these challenges, the Company remains confident in its strong fundamentals and maintains optimism in its overall growth outlook. Our commitment to strategic initiatives, particularly the focus on premiumization, played

a pivotal role in navigating this period. We remain dedicated to optimizing our operations and fostering growth in the face of varying market conditions. We are excited about this new addition to our infrastructure, which underscores our dedication to expanding our portfolio of value-added products. These products will be exclusively manufactured within our facility, leveraging advanced technical capabilities and adhering to rigorous quality standards. As we move forward, CERA is strategically positioned to capitalize on its strengths, ensuring they not only navigate macro-led challenges but also foster sustained growth for all stakeholders.

Key financial ratios: (in times/%)

* The increase in debt equity ratio and Interest coverage ratio is on account of rise in the Lease liabilities which is recognised as per "Ind AS 116 - Leases", wherein all lease contracts are to be recognised as Right-of-use Assets and Lease liabilities. Interest is to be recognised on the lease liabilities over the period of lease.

Financial overview

Analysis of the profit and loss statement revenues: Revenues from operations reported a 2.4% growth from Rs. 1,87,123 Lakhs in 2023-24 to reach Rs. 1,91,525 Lakhs in 2024-25.

Expenses: Total expenses increased by 3.3% from Rs. 1,61,662 Lakhs in 2023-24 to Rs. 1,67,015 Lakhs due to the significant rise in material and procurement costs, driven by higher business volumes and elevated input prices, which led to an increase in the cost of goods sold. The employee benefit expenses increased due to annual increments and higher headcount in line with business growth, contributing further to the overall rise in operating costs.

Raw material costs, accounting for a 12.9% share of the company's revenues. Employees expenses accounting for a 12.6% share of the company's revenues increased by 6.2% from Rs. 22,755 Lakhs in 2023-24 to Rs. 24,154 Lakhs in 2024-25 due to annual merit increase and employee share option (ESOS) expenses.

Analysis of the balance sheet sources of funds: The capital employed by the company increased 1.7% from Rs. 1,44,465 Lakhs as on 31^st March, 2024 to Rs. 1,46,987 Lakhs as on 31^st March, 2025 was primarily driven by a significant rise in non-current lease liabilities, reflecting new long- term lease commitments. Return on capital employed, a

measurement of returns derived from every rupee invested in the business decreased by 80 basis points from 22.2% in 2023-24 to 21.4% in 2024-25 mainly due to increase in capital employed and a marginal decrease in EBIT. The net worth of the company increased 0.6% from Rs. 1,34,254 Lakhs as on 31^st March, 2024 to Rs. 1,35,034 Lakhs as on 31^st March, 2025. The increase in net worth was primarily driven by the company's profitability. As on 31^st March, 2025, the company had Rs. 4,009 Lakhs of long term debt comprising of non- current lease liabilities. Finance costs of the company increased by 34.3% from Rs. 530 Lakhs in 2023-24 to Rs. 712 Lakhs in 2024-25 mainly due to increase in interest on lease liabilities towards recognition of long-term lease contracts as lease liabilities. The company's debt/equity ratio stood at

0.05x at the close of 2024-25 (0.03x at the close of 2023-24).

Applications of funds: Fixed assets (gross) of the company increased by 3.1% from Rs. 58,406 Lakhs as on 31^st March 2024 to Rs. 60,191 Lakhs as on 31^st March, 2025. In FY25, total net investments increased by Rs. 1,784 Lakhs primarily driven by enhanced investments in buildings and plant & equipment. Depreciation on tangible assets increased by 7% from Rs. 2,617 Lakhs in 2023-24 to Rs. 2,792 Lakhs in 2024-25 on account of routine capital expenditure.

Investments: Non-current investments of the company were Rs. 3,158 Lakhs in 2023-24 and Rs. 2,995 Lakhs in 2024-25.

Working capital management: Current assets of the company decreased by 0.4% from Rs. 1,41,551 Lakhs as on 31^st March, 2024 to Rs. 1,40,977 Lakhs as on 31^st March, 2025 due to major reduction in investments on account of buy back, which is offset by increase in inventories & trade receivables. The current and quick ratios of the Company stood at 3.8 and 2.7, respectively at the close of 2024-25 compared to 3.7 and 2.8, respectively at the close of 2023-24. Inventories including raw materials, work-in-progress and finished goods among others increased by 13.1% from Rs. 35,864 Lakhs as on 31^st March, 2024 to Rs. 40,582 Lakhs as on 31^st March, 2025 due to product portfolio building for Senator & CERA Luxe brand and some increase in existing inventory due to lower demand. The inventory cycle increased from 72 days of turnover equivalent in 2023-24 to 73 days of turnover equivalent in 2024-25. Trade receivables increased by 33.1% from Rs. 20,134 Lakhs as on 31^st March, 2024 to Rs. 26,796 Lakhs as on 31^st March, 2025 due to extended credit period offered to dealer to meet out current market challenges and the revision in the cash discount policy. The company managed its debtor turnover cycle within 38 days of turnover equivalent in 2024-25 compared to 32 days in 2023-24, trade payables days 56 in FY 2024-25 and 66 days in FY 2023-24.

Margins: The EBITDA margin of the company for 2024-25 was 17.9% as against 18.4% in 2023-24 while the net profit for 2024-25 was 12.5% as against 12.4% in 2023- 24.

Material developments in human resources, industrial relations, environment, health and safety

The company has focused on talent development through ongoing training programs. It has consistently invested in the training and development of its employees, organizing various programs periodically to enhance their skills. CERA's manpower strength as on 31^st March, 2025 stands at 2474. The more details have been provided in the Business Responsibility and Sustainability Report forms part of the Directors' Report enclosed as Annexure-VII. The Company is ISO9001, 14001 and BS 18001 certified. The Company is also a member of Indian Green Building Council (IGBC), promoted by Confederation of Indian Industry (CII). The company also works closely with influencers and their associations like IIA (Indian Institute of Architects), IIID (Institute of Indian Interior Designers) and IPA (Indian Plumbing Association).

Internal control systems and their adequacy

CERA has robust internal control framework commensurate with its size, scale, and complexity of its operations. The Company has well defined policies and procedures, system automations, authorization protocols, access controls, segregation of duties and physical security to ensure compliance with applicable statutes, safeguarding assets from unauthorised use and to enhance overall corporate governance. The Company has laid down internal financial controls as detailed in the Companies Act, 2013. The design and operating effectiveness of controls is reviewed by an in- house Internal control team which was further validated by an independent Internal Auditors engaged by the Company. The statutory auditors have also independently audited the internal financial controls over financial reporting as of 31^st March, 2025 and have opined that such controls were operating effectively. The Company has an Audit Committee of the Board of Directors, the details of which have been provided in the corporate governance report. The Audit Committee reviews audit reports submitted by the Independent Internal auditors on quarterly basis.

Disclosure of particulars with respect to Information on Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules 2014 and forming part of the Report of the Board of Directors for the year ended 31^st March, 2025.

A. Energy Conservation

Discussed in main report

B. Technology Absorption Research and Development (R & D)

1. Specific areas in which R & D is carried out:

The Company's Research & Development Unit, recognized by the Department of Scientific and Industrial Research (DSIR), Government of India since 1989, has consistently focused on enhancing the quality of Company's products. Its efforts include reducing costs through the adoption of alternative and more affordable raw materials, utilizing waste materials, revising quality standards, minimizing production waste and losses, recycling both unfired and fired production waste, and implementing pollution control measures. These initiatives have helped the company maintain a competitive edge in the market. During the reporting year, several innovative R&D projects were successfully developed and transitioned into commercial production.

> New state-of-the-art R&D centre developed at Kadi factory premises. The centre boasts of advanced test equipment for material science and ceramic technology. This Centre of Excellence is designed to keep the R&D activity as a strategic initiative. This will help us keep at the fore front of innovations in the Sanitaryware Industry worldwide. This centre is DSIR, Govt. of India, approved.

> Use of refire pitcher powder in production.

> Development of new Snow-white glaze with better glaze surface and also cost effective.

> Development of Alumina Body for thin rim TT Wash Basin.

> Development of indigenous Plaster of Paris which is equivalent to imported Plaster of Paris with cost effective.

> Developed 3 new matt colour glaze.

> Developed Grog Body for refire support which is cost effective.

> Installation of Casting Bay wise sliding Gates for battery drying of casted ware and waste heat recovery.

> Development of Refire glaze for recovery and Productivity.

> Reinforcing its commitment to adopting advanced technology and modern equipment, the Company has recently commissioned an XRF machine. This addition will significantly reduce raw material testing time, enhance precision and accuracy, and minimize variations—ensuring the use of consistently high-quality materials in production.

> Development of Gold decorative pieces by electroplating process.

> Development of suitable pressure casting body.

> Development of Suitable pressure casting body slip with Domestic China clay.

> Ramp up Robotic Glazing System in production. This gives us more controlled and uniform glaze coating on the sanitary ware as compared to manual glazing. This type of uniform glaze coating provides better aesthetic look of final products. Robotic glazing reduces dependence on manual labour. These are the highly advanced robotic systems with sophisticated control mechanism.

> Development of chemicals (Deflocculants for slip) for casting quality improvement

> Development of Single Ball clay in place of multi ball clays for casting slip and this has helped ESG.

> Strengthening of ZLD through reuse of process water.

> Development of biscuit fired shrinkage plate tiles. These tiles reduce squat, undulation, foot crack of critical items by loading on it. Especially quality of wall hung products has improved significantly by using this.

> Siphonic new design one piece product development (first time in cera)

> Developed stick up casting method for new product development like Cliption.

> Our Faucetware unit has implemented cutting- edge, best -in-class automation, setting a new standard across the industry

> Installed CNC router to enhance production accuracy, reduce material waste, and increase manufacturing efficiency through automated precision cutting.

> Our Zamak plating technology in Faucetware has set a new industry bench mark for the durability, aesthetics' and performance.

> Faucetware unit has consistently supplied products that align with the highest industry bench mark

> Faucet Robotic Surface Grinding, helps in uniform coat of chromium plating that will lead to surface endurance also installed Faucet Peeling Machine for For impeccable body finish.

> Designed and developed invisible waste out-clean reverse flow was basin.

> Also, in final product quality, Company has introduced automatic leakage detection test and overflow test. These tests help to improve functional quality of final products.

> Introduced different colours of silk glazes which enhance uniqueness as well as verity and versatility.

> Under the initiative of ‘Waste Minimization and Waste Utilization', numerous measures have been taken. This includes recycling of solid and liquid, ZLD (zero liquid discharge) plant, high energy efficient rated machines, compliance to pollution norms, awareness-generation among employees etc.

> In keeping with eco-friendly tradition, the Company has developed 04 Liters flushing system with same effectiveness as 06 Liters flushing system. By 30% reduction in water consumption, this technology will help to save precious water. The company also reduced its water dependence on state supply by recycling full water requirement of manufacturing process. The company developed a fully functional rain-water-harvesting system.

> Product Certifications: All company's products are ITC (Institute for Testing and Certification, Czech Republic) certified. The company have completed IAPMO (USA Certification Agency) for almost half of company's products and are in process to get more products under this certification. The company have also started its product certification from SGS (Emirates Authority for standardization and Metrology).

Company's all products are CE (Conformite Europeenne) certified from QVC Certification. company has completed IAPMO (USA Certification Agency) for almost half of the products and are in process to get more products under this certification. Company's Products have GRIHA (Green Rating for Integrated Habitat Assessment) Certification and company is getting more products under this certification. All the Qualified products are Green Pro certified from CII.

2. Benefit derived as a result:

The use of new and more economical raw materials from alternative sources, along with the substitution of imported raw materials, colors, and other inputs, is expected to further lower production costs.

3. Future plan of action:

> As part of its eco-friendly initiatives, the Company aims to enhance the use of renewable energy sources—primarily solar energy, which is already in place. Additionally, plans are underway to redesign the glaze spray system to maximize glaze recovery and recycling.

> The Company is focused on enhancing its manufacturing capabilities to accommodate more complex product designs. To support this, it has planned additional Bench-to-Battery casting conversions, which offer improved efficiency and productivity. The Battery Casting method is also more ergonomic, contributing positively to workers' health. Furthermore, the Company has introduced advanced semi-automatic casting techniques such as pearl casting, vertical casting, and beam casting into its production processes.

> The Company shall keep increasing product portfolio of the colour and keep adding new product as per increasing demand of the customers.

> The Company is set to enhance its capability and capacity to produce high-value products featuring ergonomic and aesthetically appealing designs. These products will be larger in size with a premium appearance. Advanced surface technologies such as stain-free, antimicrobial, and self-cleaning coatings will be incorporated. Additionally, new finishes including metallic and copper glazes are planned for introduction.

> In line with its focus on automation, the Company intends to deploy additional robots across the manufacturing process. Furthermore, an automatic gas pressure regulation system is planned for implementation in the firing process to improve efficiency and control.

4. Expenditure on R & D:

C. Foreign Exchange earnings and outgo

The Company has continued to maintain focus and avail of export opportunities based on economic considerations. Foreign exchange used and earned by the Company during the year is as under: