MANAGEMENT DISCUSSION AND ANALYSIS

2021-22 (FY2022) continued to be dominated by Covid. In India, the second wave proved far more deadly than the first. After a late start, the roll-out of vaccines began in earnest. The nation-wide vaccination programme has been a great success. In fact, the vaccination drive played no mean a role in minimising the effects of the third wave. The economy, too, was not locked down as in the first wave. Consequently, the negative impact on GDP was less than anticipated.

However, the economy has not recovered as much as expected. The second advance estimates of national income for FY2022 released by the Central Statistics Office (CSO) on 28 February 2022 have pegged GDP growth at 8.9%. If that were to happen it would be on the back of a contraction of 6.6% in FY2021.

Charts A and B plot the Company’s financial performance

Let us now discuss the Company’s performance across business units

Motorcycles (Domestic)

As far as domestic sales of motorcycles are concerned, after two years of impressive growth in FY2018 and FY2019, the market crashed. Between FY2019 and FY2022, domestic motorcycle sales for the industry as a whole has fallen by almost 34% in terms of volume.

In this environment, Bajaj Auto has been able to arrest its decline in sales and raise market share from 18.0% in FY2021 to 18.2% in FY2022 (see Table 1).

Below is the segment-wise analysis.

M Segment The milage or M segment accounts for by far the highest unit-wise sale of motorcycles in India. Bajaj Auto is represented here by the CT, Platina and the Pulsar 125.

• In FY2022, this segment de-grew by 8%.
• However, Bajaj Auto’s sales in the segment increased by 2.8% to an average of 101,606 units per month in FY2022.
• Consequently, our market share has increased from 15.2% in FY2021 to 17.0% in FY2022.
• Our stellar performer in this segment has been the Pulsar 125. Successfully introduced in FY2021, this sleek model has created a big buzz. On an average, we sold over 37,500 Pulsar 125 per month in FY2022.

S Segment The sports or S segment is represented by the Company with the high end Pulsar family, the Avenger and the Dominar.

• The industry as a whole saw a sharp drop in demand with domestic sales falling by 19% in FY2022, to an average of 150,885 units per month.
• Bajaj Auto’s sales fell as well. From an average monthly sale of 51,820 units in FY2021, it dropped by 33% to 34,469 units per month. Consequently, the Company’s market share in the segment reduced from 28% in FY2021 to 23% in FY2022. Even so, Bajaj Auto has the second largest market share in this category.

Three-Wheelers (Domestic)

Bajaj Auto is the world’s largest manufacturer and seller of three-wheelers. Compared to the previous year, FY2022 was a good year for Bajaj Auto. Our performance in this segment is in Table 2.

• For the industry, domestic sale of three-wheelers crashed by 66% to 216,197 units in FY2021. It has since increased by 21% to 260,995 units in FY2022.
• Bajaj Auto’s domestic sale for FY2022 has seen a 47% increase to 160,599 units. Consequently, Bajaj Auto’s domestic market share of three-wheelers (passenger and goods) increased by 10.9 percentage points to 61.5% in FY2022.
• This superior performance was seen across all segments – passenger and cargo.

Our three-wheelers are CNG compatible. Given the growing importance of CNG as a fuel, going forward, we expect to outperform the industry.

International Business

It is our product quality, size and reach of our international business that makes Bajaj Auto The World’s Favourite Indian. Here are some of the stellar achievements on the export front.

In FY2022

• We crossed 2.5 million vehicle milestone. This is the first ever in the history of Bajaj Auto.
• Motorcycle exports touched new highs – at almost 2.2 million units, showing a growth of 22% over FY2021.
• In 10 of the 12 months, BAL exported more than 200,000 units every month.
• All regions have shown strong growth in FY2022.

Table 3 gives the export data.

Regarding motorcycles:

• Our Sports motorcycle portfolio grew at 24% versus the previous year. Our Dominar brands — both 250cc and 400cc — are now exported to 26 countries; and these grew at 69% in FY2022 over and above 91% growth in FY2021.
• We recorded highest ever volumes in many key markets, such as Mexico, Guatemala, Nicaragua, Honduras, Bangladesh, Nepal and Iraq.
• We continued our dominance in Africa, where we exported over 1.2 million motorcycles — which exceeded 1 million units for the third year in a row. We had our highest ever volumes in all our key markets: Nigeria, Uganda and Democratic Republic of Congo.

As far as commercial vehicles were concerned:

• The business grew at 21% versus FY2021, in spite of the fear of Covid.
• Focus on new markets like Iraq and new segments like cargo paid rich dividends. Iraq grew by 65% in FY2022 and crossed 50,000 units, while cargo volumes grew 86%.
• All regions had positive growth. Volumes exported to the ASEAN markets more than doubled as Covid restrictions started easing out and demand for public transport began to increase.

Chart C plots our export performance over the years, both in value and as a percentage of the Company’s total net sales.

As Chart C shows, in FY2017, exports as a percentage of Bajaj Auto’s net sales stood at 36.9%. Since then it has been rising every year. In FY2022, it crossed 50% to post 52.7% of net sales. No auto company in India is close to this ratio.

Urbanite (Chetak EV)

Last year, we re-introduced this legendary brand as a best-in-class electric scooter. With a streamlined classic design and perfect detailing, it encompasses the best of beauty and aesthetics, and represents the future of mobility.

With a horseshoe shaped LED headlight, daytime running lamps, feather touch activated electronic switches and sequential scrolling rear LED blinkers, and a digital console that displays key vehicle information, the Chetak is a thing of beauty.

The Chetak offers a fully-connected riding experience. It is embedded with mobility solutions like data communication, security and user authentication. And the Chetak mobile app gives riders a comprehensive overview of all aspects of the vehicle and its ride history.

The excitement to own a Chetak was across-the-board. When bookings were first rolled out in early 2020, it had to be stopped on account of Covid. When we re-started online bookings on 13 April 2021, we had to stop 48 hours later, owing to overwhelming demand. For FY2022, sold 8,187 units.

Initially, the Chetak was sold from two locations: Pune and Bengaluru. Seeing the enthusiastic demand for this iconic model, the Company has increased the touchpoints to 20 locations in FY2022. This is expected to grow to 75 in FY2023.

Probiking (KTM)

After several years of excellent performance, KTM sales in India dropped in FY2022. This was partly on account of Covid-related demand uncertainties; but much more so due to lack of supply of essential semiconductors. Chart D plots the sales of KTMs in India over the last 10 years.

The probiking business now comprises two brands — KTM and Husqvarna. There are nine models of KTMs, ranging from the Duke 125 to the Duke 390, the RC’s and the Adventures. And there are two variants of the Husqvarna: the Svartpilen (Black) 250 and the Vitpilen (White) 250. The KTM Duke 200 was re-launched in its second generation form; and the Duke 250 was upgraded with even more premium features. The KTM super sport RC series launched next generation RC 200 and RC 125 bikes with new frames and vehicle specifications inspired by KTM cult MotoGP bike.

R&D

Despite the waves of Covid that hit Pune in FY2022, Bajaj Auto’s R&D kept driving its programs by ensuring high attendance at office while taking care of social distancing. But this was not the only challenge that had to be dealt with. R&D had to work rapidly on counteracting the rapidly increasing costs of precious metal used in catalysts; react to the sudden proposal (under finalisation) by Government of India to advance the complete BS6 OBD 2 package to 1 April 2023; and to deal with the acute semiconductor shortage.

N250 and F250 – The Pulsar reborn:

Bajaj Auto’s most successful motorcycle brand Pulsar has been a leader not just in India but in all its export markets. It has been consistently upgraded over the years to keep it in sync with changing times. However, with the new competition that it had to face, R&D had to get back to the drawing board to redefine the Pulsar for the new world.

• Style: The Pulsar was always big and bold. The new gen Pulsar was designed to ooze aggression and have a commanding presence. It comes in two iconic forms — as a brutish Naked and an aerodynamic Faired version.
• Technology: The two bikes are the biggest displacement Pulsars ever built. These use highly refined, brand new 250cc oil cooled engines which are capable of meeting future norms. These provide class leading 24.5 Ps peak power. They employ gas charged Mono suspension for superior comfort. Both bikes have brilliant class D LED projector head lamps that are bi-functional.

These two bikes herald the arrival of a new range of Pulsar. These are modern yet are steeped in the values of democratising the sports bike and bringing performance to the masses.

Dominar 400 UG:

The Dominar 400 has become a popular touring bike due to its solid 40 PS performance with a linear torque delivery. Its long wheelbase provides it rock solid stability at high speeds. Its powerful LED headlamp gives it brilliant visibility in night. The Dominar’s Siberian odyssey has further cemented the D400’s touring credentials.

Seeing the strong position that Dominar was creating for itself, R&D designed a comprehensive upgrade for the D400, with a specialised touring package. It consists of new taller visor for wind protection, higher handlebars, new mobile/GPS holder, a USB charging socket to power the mobile/GPS, a new engine guard, new rear cast aluminium rack with pillion back support and new pannier stays for both sides. This new package has found great favour with the target audience.

New Gen RC:

The KTM RC range has been refreshed with new style and features. The bike has been styled with inspiration of the race winning KTM MotoGP bikes. It presents new technology like ride by wire, quick shifter, traction control and cornering ABS. These offer superior performance and class-leading safety under difficult weather conditions.

R&D Projects

Countering the rise in Platinum Group Metals (PGM) costs

FY2022 saw drastic increases in the cost of the precious metals. The PGM loading on the three-way catalytic convertor (CAT) helps in catalysing reactions to neutralise the emissions from the engine. The presence of the PGM in the catalyst in conjunction with the closed loop frequency intelligence (FI) control is essential to meet the stringent BS6 norms.

Bajaj Auto’s R&D ran two complete loops of emission development for almost all its models to optimise the cost of the catalysts. This exercise should help achieve the targeted cost reductions on its models.

Dealing with semiconductor shortages

Covid has impacted semiconductor supplies which, in turn, has affected the automotive industry. All advanced technology components like the ABS system, FI systems, advanced displays like thin film transistors (TFT), telematics and critical sensors have been affected. R&D is working hard to create alternate configurations and homologating these as soon as possible.

Realigning resources to meet BS6 OBD2

In November 2021, the Government of India suddenly decided to advance the implementation of the OBD 2 for two-and three-wheelers as a single stage from 1 April 2023 — instead of the previously agreed introduction in two stages, first for OBD 2A from 1 April 2023 and the second of OBD 2B from 1 April 2025. Effectively, the norms were to be implemented ahead of Euro 5 OBD 2B norms but with no time to achieve mature calibration.

OBD 2B involves CAT monitoring — the calibration of which needs over two years of durability testing and monitoring after the implementation of OBD 2A. The Society of Indian Automobile Manufacturers (SIAM) has represented the two-and three-wheeler industry and sought implementation of OBD in two stages as previously planned. However, Bajaj Auto’s R&D is taking no risks. It has drastically re-allocated its resources and program priorities to tool up and calibrate the huge range of two-and three-wheelers that Company manufactures. This involves a huge task of re-homologation of its entire range within a short period from the implementation of BS6 norms.

Operations

TPM

Bajaj Auto’s ‘back end’ consists of its Manufacturing, Engineering, Development and Materials functions. The principles and philosophy of TPM guide these in achieving excellence both individually and collectively. ‘The TPM way’ has been successfully extended to include Bajaj Auto’s vendors, dealers and distributors with an aim to create a work culture of achieving across-the-board excellence.

Bajaj Auto’s TPM at Operations

Bajaj Auto is ‘first-in-the-industry’ in having all its manufacturing plants certified for the ‘Special Award for TPM Achievement’ by Japan Institute for Plant Maintenance (JIPM). In FY2020, the BAL Chakan plant was also conferred with the “Advance Special Award for TPM achievement”. We continued our TPM journey and have adopted ‘TPM Next’-Deepening, Widening and Evolving.

• Through ‘Deepening’, we focus on increasing the strength in standard TPM pillar activity and the creation of new pillars based on business needs.
• With ‘Widening’, we have expanded the scope of TPM pillar activity across the supply chain including vendors, dealers and distributors.
• With ‘Evolving’, we adapt the TPM way to be future-ready to face the challenges ahead. Under Evolving TPM, we have taken up various management themes for focused improvement.

For continuous improvement in operations parameters, BAL is adopting smart manufacturing tools for production and process management. Further, to sustain all improvements and excel, we are working to develop and practice the “Bajaj Production System (BPS)” aimed at ‘Better Flow with Better Quality’.

Vendor TPM Activities

BAL believes that a company alone cannot be sustainable, unless it takes along its supply chain. We support our vendors to become globally competitive in terms of safety, quality, production, delivery, cost and human development. The TPM concept is pervasive at Tier I vendors’ end with the help of BAVA (Bajaj Auto Vendors Association). In addition, BAL’s TPM practicing Tier I vendors have extended TPM practices down the supply chain to their vendors.

Under the Safety, Health and Environment pillar of BAL’s TPM and in alignment with the ‘Green Purchase Policy’, 70% of our vendors have been certified for ISO 14001 and OHSAS 18001 as on 31 March 2022.

We have also taken up a drive to maximise supplies to all our plants from vendors within the plant cluster. This has substantially reduced our supply chain length and the carbon footprint with almost 87% of supplies for all plants being made by vendors within the respective clusters.

TPM in After-Sales Service

TPM methodologies are being continuously spread across our domestic dealership and international distributor networks. As on 31 March 2022, we had 690 dealerships practicing TPM; and we have extended the TPM initiative to our sub-dealers. We have also started recognising our dealerships for bringing in a culture of excellence through TPM. As on 31 March 2022, there are 168 dealerships awarded with the coveted ‘BAL TPM Award’.

TPM at Overseas Distributor Plants

The culture of kaizens is very well spread across our dealers and distributors We started the implementation of TPM at our international distributor plants. In FY2022, 16 distributor plants have been practicing TPM for over a year. Consequently, these are now experiencing sound improvement in manpower productivity, production rate, first-time-right quality and reduction in cost parameters. In FY2022, four of our distributor plants were evaluated for the qualification criterion of ‘BAL TPM Award’. DAG Nigeria, Hulas Autocraft Nepal, Nish Auto Uganda and Auto Industries Kenya have been conferred this award. All of them have experienced more than 30% growth in their KPI parameters.

Women Employment

Our women employee strength has grown more than four times from 148 in FY2014 to 667 in FY2022. Almost 64% of women are working in manufacturing plants and in engineering.

Capacity and Employee Strength

As on 31 March 2022, BAL’s employee strength stood at 10,134.

Human Resource

Over the last few years, Bajaj Auto has focused on 3 areas, leadership development, performance management and employee well-being.

As part of leadership development, we have invested, developed and promoted internal talent and also attracted key external talent for the leadership role. With focused efforts we have been able to build a strong leadership and management cadre over the last few years. We also provide employees with necessary tools and resources that has helped them enhance their skills, improve their overall efficiency and productivity.

Our lateral hiring process focusses on hiring talent with new age skills like electrical, electronics, software, app development, etc.

Our performance management system has been refined to be in sync with our philosophy of differential rewards for differentiated performance. Grade broad banding, standardisation of salary components, differentiation of performance thru ranking clusters have further strengthened our approach.

To add to this, we have focused on the well-being initiatives of our employees. This has been done by way of reviewing and launching policies that support employees by way of

1. Corporate Health Benefits Scheme, Top-up policies, Voluntary Parental Mediclaim Scheme, Compassionate Benefits policy, etc.
2. Supporting employees during the unprecedented times of COVID, by way of providing free Vaccinations to employee as well as their family, driving De-stress activities during lockdown, etc. and
3. Partnering with agencies to focus on employees’ physical and mental well-being.

Waking up every morning with enthusiasm and zest translates to good health. This led the Company to set up Utsah.

Utsah is a wellness centre spread across 6.5 acres.

Utsah is a state-of-the-art, world-class infrastructure with exemplary amenities built to foster the recreational and wellness needs of our employees. Conceptualised, as the name goes, to bring exuberance and joy, Utsah is designed to help employees grow and evolve.

The Indoor Games area has an Air hockey facility, Pool table, Foosball table, Table-Tennis area, Carrom area and Board games. Utsah’s amphitheatre can accommodate 600 people. There are gazebos for collaborations and meaningful conversations. Its Multipurpose Hall has facilities for Badminton, Basketball, Futsal, Volleyball, Handball and Rock-climbing. The gym at Utsah has imported Technogym equipment used by Olympic athletes.

These initiatives have led us to feature amongst India’s Top 25 Coolest Workplaces by Business Today in the year 2021.

Awards

The Company’s products, people and processes have been very well recognised and awarded. Some of the awards received during the year are given below.

Product

Human Resource

Business Today:

• India’s Top 25 Coolest Workplaces! for the year 2021

The Great Manager Awards:

• Companies with Great Managers Award 2021
• The Great Manager Awards 2021
• T A Pai Young HR Leader Award 2021

CII National HR Excellence Award Confluence 2021-22:

• Significant Achievement in HR Excellence

Plant

• 2 Gold Awards in ‘TPM Circle Competition’ organised by CII – Chakan Plant
• Gold Medal Award for ‘Productivity Improvement’ organised by IIIE – Chakan Plant
• Platinum Medal Award in ‘TPM Circle Competition’ organised by CII – Chakan Plant
• Jury Champion Award in ‘TPM Circle Competition’ organised by CII – Chakan Plant
• Super Challenger Award in ‘TPM Circle Competition’ organised by CII – Chakan Plant
• First Prize Winner in ‘Safety, Health and Environment Category’ organised by The Machinist Super Shopfloor (a subsidiary of The Times of India Group) – Chakan Plant
• First Prize Winner in ‘Green Manufacturing Category’ organised by The Machinist Super Shopfloor(a subsidiary of The Times of India Group) – Chakan Plant
• 2 Gold Medal Winners in ‘Quality Circle Competition’ organised by QCFI – Waluj Plant
• First Prize Winner of ‘The Champions Trophy 2021 for Quality’ organised by CII – Pantnagar Plant
• First Prize Winner in ‘National Convention’ organised by QCFI – Pantnagar Plant

Financials

Our surplus funds are invested in (i) fixed income securities rated A1+ and equivalent for short term investments, (ii) AA+ and above rated securities for long term investments, and (iii) fixed deposits with banks and finance companies.

As required for listed companies by the Securities and Exchange Board of India (SEBI), Table 6 gives the key ratios.

Subsidiaries

Bajaj Auto International Holdings BV (BAIH BV)

Bajaj Auto International Holdings BV (BAIH BV) is a 100% Netherlands based subsidiary of Bajaj Auto Ltd.. Over the years 2007 to 2013, through this subsidiary, Bajaj Auto has invested a total of €198.1 million (₹ 1,219 crore) and held approximately 48% stake in KTM AG of Austria (KTM), the fastest growing motorcycle brand in the world.

On 29 September 2021, BAIH BV swapped 46.5% stake in KTM AG for 49.9% stake in Pierer Bajaj AG (PBAG). 50.1% in PBAG is held by Pierer Group.

Pierer Bajaj AG (formerly PTW Holding AG) holds 73.3% stake in Pierer Mobility AG. Pierer Mobility AG (PMAG) is Europe’s leading “Powered Two-wheeler” manufacturer with focus on highly innovative sports motorcycles and electric mobility-E bicycles, E motorcycles, etc. With KTM, HUSQVARNA and GASGAS motorcycle brands, it is a leading premium motorcycle manufacturer in Europe. With conventional and E bicycles under Ramon, Husqvarna, Gas Gas and Felt brands, it is a strong player in this fast growing segment.

With this re-structuring in September, Bajaj Auto and Pierer Group now partner in all Mobility businesses that Pierer Group engages in. The resultant gain in fair value of ₹501.23 crore is shown as an exceptional item in consolidated results.

Subsequently, KTMAG announced a buy back program on 5 November 2021. BAIHBV tendered the balance 161,939 shares (1.49% stake in KTM AG left after the swap explained above) in this buy back. The resultant gain of ₹74.90 crore is shown as Other income in consolidated results.

In the year 2021, PMAG recorded a strong performance in Motorcycles, with sale of 332,881 units and in bicycles with sale of 102,753 units (of which 76,916 were e-bicycles) and registered a record top-line of over €2 billion.

Chetak Technology Ltd.

The electric vehicle (EV) market, while still nascent, is constantly witnessing new developments. Two-wheelers are expected to be the early mover to the electric vehicle space, especially given the push from the Government of India and various state governments, through their various incentive schemes.

Given the stakes and likely impact of EVs on its business, Bajaj Auto wants to be ahead of this curve. For effectively engaging in this domain, Bajaj Auto felt the need to form a new Company: a 100% subsidiary called Chetak Technology Ltd.

The new subsidiary was formed on 4 October 2021 with initial paid-up equity share capital of ₹ 5 crore and additional capital of ₹ 45 crore is being infused by way of Rights issue in April 2022. Plans have also been drawn to set up a new state of the art manufacturing facility at Akurdi.

To give prime focus to the EV space and to develop new technologies and products, the Company now intends to house all its EV related activities – R&D of new technologies, R&D for product development, manufacturing, sales, after-sales and customer centric experience — to this newly formed 100% subsidiary.

Bajaj Auto (Thailand) Ltd.

Bajaj Auto (Thailand) Ltd. was incorporated as a wholly owned subsidiary in Thailand with an issued and subscribed share capital of Thai Baht (THB) 45 million (₹ 10 crore). The intent being to set up an International Business Centre (IBC) to oversee sales in the ASEAN region and an Engineering Design Centre (EDC) under this subsidiary. This marks a new beginning for Bajaj Auto’s R&D expanding its design center to trend-defining markets around the globe.

Bajaj Auto (Thailand) has obtained all necessary approvals from local authorities. The EDC is operational and international designers are working from this new facility in Bangkok. Full scale operations including IBC will commence in the coming year.

Bajaj Auto Spain S.L.

Bajaj Auto Spain S.L. was incorporated as a wholly owned subsidiary in Barcelona, Spain with an issued and subscribed share capital of €600K (₹ 5 crore). The intent being to setup an Engineering Design Centre.

The EDC has just started operations and is expected to be fully operational in the coming year.

Bajaj Auto Consumer Finance Ltd. (BACFL)

Financing is key to every automobile business. In India, nearly 65% of two-wheelers and 85% of three-wheelers retailed are financed. To increase geographic coverage and expand financing options for the retail customers of Bajaj Auto Ltd. and Chetak Technology Ltd., a wholly owned captive financing company was formed.

This new subsidiary with an initial paid-up equity share capital of ₹ 5 crore has applied to RBI for an NBFC license and is drawing up plans to set up a new organisation, infrastructure and processes for the proposed NBFC.

Even after the new NBFC is formed and fully operational, Bajaj Auto would continue to offer financing options to its business partners and retail customers through other lenders in the market.

Bajaj Do Brasil Comercio De Motocicletas Ltda

To address the motorcycle market in Brazil, Bajaj Auto has set up a wholly owned subsidiary on 31 March 2022. The process to obtain necessary approvals for introduction of equity share capital and setting up operations in Brazil is currently underway. Full scale operations are likely to commence in the coming year.

Consolidation of accounts and segment reporting

Outlook

It is fair to say that Bajaj Auto has overcome the challenges posed by Covid-19 in FY2021 and has turned the corner. Our operational and financial results for FY2022 have been significantly superior to those of the previous year. Indeed, these could have been even better had we not faced the crippling semiconductor shortage that seriously constrained the production of our entire range of sports and super-sports bikes as well as the Chetak. Thanks to the R&D work being carried out at a high pace, we may overcome this semiconductor constraint in the course of the year, and then target even higher growth — driven by the new models of our sports and super-sports bikes.

Our export performance has been outstanding. And the concentrated way in which we focus on foreign markets gives us reasons to believe that years of excellent exports will continue.

Three-wheelers have turned around after the devastating impact that Covid had on mobility. We have sound reasons to believe that Bajaj Auto will continue to grow three-wheeler sales, both in India and elsewhere. In the domestic front, our suite of CNG three-wheelers should become the preferred choice of purchasers in the years to come.

Moreover, we are committed to the development of electric vehicles (EVs). Chetak is the first example. The setting up of Chetak Technology Ltd. as a fully owned subsidiary of Bajaj Auto will aid in the research, development, production and sale of EVs. These are the vehicles of tomorrow, and we want to be an active player in this space.

As of now, the only fly in the ointment is the serious shortage of semiconductors. It is a global problem. Our R&D is working on this, while we are actively searching for alternate sources. Hopefully, this will be a thing of the past, sooner rather than later.

All said and done, there are good reasons to believe that Bajaj Auto will perform even better in FY2023. We hope that this forward-looking statement turns out to be true.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Company’s objectives, projections, estimates and expectations may be ‘forward looking’ within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Company’s operations include global economy, political stability, stock performance on stock markets, changes in government regulations, tax regimes, economic developments and other incidental factors. Except as required by law, the Company does not undertake to update any forward-looking statements to reflect future events or circumstances. Investors are advised to exercise due care and caution while interpreting these statements.