2.3 During the year under review, your company achieved revenue from operations of 2489 Crore despite facing very challenging circumstances and technical issues, compared to the revenues of 2817 Crore in the previous year. The main reasons for the revenue shortfall were, delays in receiving imported electronic items and critical explosive materials from Foreign Original Equipment Manufacturer (OEM), design changes in the production of naval products and delays in receiving MR-SAM kits from OEM, which resulted in non-completion of production. Your company is expected to recover from this shortfall in the current financial year 2023-24. Despite the aforementioned technical issues, your company performed well and achieved a turnover of 2489 Crore and a production value of 2508 Crore. The profit before tax (PBT) was 482 Crore, a decrease from the previous year?s 710 Crore. The profit after tax amounted to 352 Crore, down from 500 Crore in the previous year. The EBITDA margin was 16.40%, a decrease from 25.77%. This decrease in margin is mainly attributed to a decline in manufacturing activities and changes in the product mix.

2.4 The major products executed during the year are ATGMs, Akash-SAM, Varunastra and MR-SAM. The order book position of the company as on 01 April 2023 is about 20054 Crore (Net).

2.5 future Outlook:

Your company expects significant growth in the coming years, considering its consolidated order book position, which has reached a staggering figure of 20054 Crore as of April 1, 2023. The order book position is expected to further increase as several orders are in various stages of finalization. Your company is also actively promoting its products in the international market and has successfully converted some export leads into orders with friendly foreign countries.

In recent years, your company has forged alliances with various foreign and Indian companies through Memorandums of Understanding (MoUs) across a range of business interests. These alliances include Thales, Naval Group, MBDA Missile Systems Ltd, Rafael Advanced Defence System Ltd (Naval Division), Dassault Aviation Pvt Ltd, Defence Research and Development Organisation (DRDO), Larsen and Toubro (L&T), Ashok Leyland Defence Systems Ltd, Newspace Technologies Pvt Ltd, IIT-Madras, and Tamilnadu Industrial Development Corporation Ltd (TIDCO). These partnerships will create new opportunities for manufacturing state-of-the-art weapon systems by your company in India, catering to both domestic and international markets. Your company is confident that these alliances will elevate its standing in the coming years. Your company will continue its efforts to make the Indian Armed Forces Atmanirbhar (self-reliant) by reducing dependency on imported arms in the future. In this direction, your company has placed a strong emphasis on the concept of indigenization across all its programmes. It has commenced the indigenization of components and subassemblies that were previously imported and successfully achieved indigenization of 47 critical items over the past four years, resulting in significant foreign exchange savings. With an average indigenization percentage ranging between 80-90%, your company?s philosophy has led to reduced import costs and increased the ability to offer competitively priced products to the Indian Armed Forces. The Government of India, in its continuous pursuit of self-reliance in defence manufacturing under the ‘Aatmanirbhar Bharat Abhiyan?, has periodically issued a Positive Indigenization list of sub-systems/assemblies/sub-assemblies/components. As a result, the future outlook for your company appears promising buoyed by a robust order book position. With decades of experience, your company is well-prepared to face upcoming challenges.

3. fiXeD DePOSitS fROM PUBLiC:

The Company did not accept any fixed deposits from Public during the year, and there was no outstanding Fixed Deposits at the beginning/end of the year. Accordingly, there was no default in payment of deposits/interest thereon.

4. DiViDeND & tRANSfeR tO GeNeRALReSeRVe:

Your Company has a consistent track record of Dividend Payment. The Board has recommended a Final Dividend of 1.20/- per equity share of 10/-each amounting to 21.99 Crore for the year 2022-23. Further, your Company has paid interim dividend of 8.15 per share amounting to 149.37 Crore in February, 2023. An amount of 150 Crore is being transferred to General Reserve for the year 2022-23.

Commodore Siddharth Mishra (Retd), the then Chairman & Managing Director, BDL presented the cheque for 111.9203 Crore, being the interim dividend pertaining to the Government of India shareholding in BDL, to Shri. Rajnath Singh, Hon?ble Raksha Mantri at New Delhi. Shri. Giridhar Aramane, Secretary (Defence Production), Shri. T. Natarajan, Additional Secretary (Defence Production), Ministry of Defence and Shri. Nuka Srinivasulu, Director (Finance) from BDL were present on the occasion.

5. CapItalstru Cture:

The paid up capital of the Company as on 31st March, 2023 stood at 183.28 Crore (18,32,81,250 equity shares of 10/- each). The Authorized Capital of the Company is 200 Crore (20,00,00,000 equity shares of 10/- each) as on 31st March 2023. As on 31 March 2023, the Govt. of India shareholding in the Company stands at 74.93% (representing 137,325,527 equity shares of 10/- each).

6. PeRfORMANCe AGAiNSt MoU:

Your Company signs a Memorandum of Understanding (MoU) every year with the Ministry of Defence, Government of India. The performance of the Company for the year 2021-22 was rated as "Very Good" and the performance for the year 2022-23 is under evaluation.

7. MODeRNiZAtiON & UPGRADAtiON:

During the year, an amount of 113.91 Crore has been spent towards Capital Expenditure (CAPEX) programme for the modernization of Plant & Machinery and other infrastructure development. The majority of this amount was dedicated to establishing the Warhead building, RF Seeker facility, Storage facility, and firefighting systems. Additionally, your company has planned to spend approximately 100 Crore during the current financial year 2023-24 on various CAPEX programmes, including Phase-II infrastructure development at Ibrahimpatnam and for enhancing the integration facility at Vizag.

Your company is making determined efforts to increase the indigenization content in the manufacturing of ATGMs, SAMs, Air to Air Missiles, and Torpedoes. This objective aims to enhance self-reliance and reduce dependence on

8. ReSeARCh & DeVeLOPMeNt:

9. PROCUReMeNtfROM MSMes:

In compliance with the Procurement Policy of the Government of India, your company has surpassed the mandated procurement requirement of 25% from Micro, Small, and Medium Enterprises (MSMEs). During the year 2022-23, your company procured 29.82% of goods and services, amounting to approximately 487.98 crore, from MSMEs out of its total procurement of 1636.61 crore. By achieving the mandated target of 25% from MSMEs, your company has demonstrated its commitment in supporting and promoting the growth of these enterprises.

Vendor Development:

Your company endeavors to expand its vendor base through special drives and by offering free registration in certain cases and on specific occasions. Throughout the year, your companyconducted7 resultingin over 1000 registered vendors meets, as of the current date. Furthermore, your company has implemented an updated Integrity Pact in accordance with the directives of the Central Vigilance Commission?s latest circular issued on 25th January 2022, and adheres to the Standard Operating Procedure outlined therein.

Government e Market Place (GeM):

Your company registered as both a Buyer and Seller with the Government e-Marketplace (GeM). GeM is utilized for procuring common items and services. Throughout the year, your company has successfully procured common goods and services worth approximately 125 crore through GeM. This demonstrates your company?s active engagement and utilization of GeM for streamlined procurement processes.

11. eXPORtS:

Your company has placed significant emphasis on the export of Weapon Systems. To explore the export potential of its products, identify potential markets, and pursue export opportunities, an export cell has been established within the Business Development Division of BDL. The products offered by your company are state-of-the-art, designed indigenously, competitively priced, and not heavily reliant on any foreign Original Equipment Manufacturers (OEMs). With existing facilities, your company is well-prepared to meet both domestic and export demands.

Several leads have been received from various friendly foreign countries for the export of products such as the Akash Weapon System, ATGMs, Air to Air Missile (Astra), Smart Anti-Airfield Weapon, Helina (Air-to-Surface Weapons), Light Weight Torpedo, Heavy Weight Torpedo (Underwater weapons), Counter Measures Dispensing System, and Anti-Submarine Warfare Suite (Counter Measure Systems) etc.. These leads are actively being pursued by the export cell, which is engaged in interactions with overseas customers to achieve export targets. As a result, your company has secured orders for the export of Light Weight Torpedoes, Counter Measures Dispensing System, ATGM, and Akash Weapon System from friendly foreign countries. Channel Partners/Agents have been appointed in several countries to promote your company?s exportable products. Your company has also participated in various Foreign Defence Exhibitions to showcase its products and facilitate participants from the Armed Forces/Ministries of Defence of other countries.

To strengthen international engagement, BDL is working closely with Indian Embassies/Defence Attaches to arrange meetings and visits with stakeholders from foreign countries. Furthermore, plans are underway to open Representative Offices in three foreign countries.

During the year, your company received its highest-ever export order of USD 255.4 million for SAMs and USD 27 million for ATGMs from friendly foreign countries. As of April 1, 2023, the total export order book of BDL stands at 2586 Crore, reflecting the growing success in the international market

12. AtMA NiRBhAR BhARAt & iNDeGiNiSAtiON:

As part of its contribution to the creation of an Atmanirbhar Bharat (Self-Reliant India), your company has been focused on indigenizing technology from the moment a contract is signed. Your company manufactures missiles under Technology Transfer (ToT) agreements with DRDO and with Foreign Original Equipment Manufacturers (OEMs). The ToT for foreign OEM designed products is only 60%, however your company has achieved indigenization levels of more than 80% to 90% in many of its products through its indigenization initiatives. In the case of DRDO-designed products, most of them have achieved indigenization levels of more than 90%. Your company is putting forth maximum efforts to achieve higher levels of indigenization for all its products. The "Make in India" initiative is an ongoing process, and under this scheme a number of initiatives were taken by GoI/MoD. Your company?s new product under development falls under the Make-II project category of the Indian Indigenously Designed Developed and Manufactured (Indian IDDM) classification in the Defence Procurement Procedure. Successful completion of this project will establish India as self-reliant in manufacturing 3rd generation ATGMs.

Furthermore, the Ministry of Defence has issued a Positive List of Indigenization on December 27, 2021, as part of the continuous effort towards self-reliance in defence manufacturing under the ‘Aatmanirbhar Bharat Abhiyan?. This list includes 2500 items that have already been indigenized, along with 351 items that will be procured from the Indian industry within specified timelines.

Out of the total 2851 items, 50 items belong to BDL, and as of now, your company has achieved indigenization for 37 of these items.

Additionally, on March 28, 2022, the Ministry of Defence issued a 2nd Positive Indigenization list of 107 Line Replacement Units (LRUs)/sub-systems for indigenization by Defence Public Sector Undertakings (DPSUs), with an embargo on imports beyond the indicated timelines. Out of these 107 items, 4 items belong to BDL, providing an opportunity for your company to scale up its operations.

Furthermore, on August 28, 2022, the Ministry of Defence issued a 3rd Positive Indigenization list of 780 Line Replacement Units (LRUs)/sub-systems for indigenization by DPSUs, with an embargo on imports beyond the specified timelines.Out of these 780 items, 2 items belong to BDL, presenting another opportunity for your company to expand its operations.

13.1 The Company has been following Presidential Directives of the Government with regard to reservation of posts for SCs/ STs/OBC/EWS in recruitments.

13.2 Total manpower strength as on 31 March 2023 is at 2560 (including four functional directors). Of the total strength, 85 are ex-servicemen, 503 are of Schedule Caste, 209 are of Scheduled Tribes and 781 are of OBC category. The percentage of Scheduled Caste and Scheduled Tribes in respect of Employees is at 19.65% and 8.16% respectively.

*excluding four functional directors & CVO.

13.5 employment of Women:

13.6 Persons with Disabilities (pwd) as on 31 March 2023:

14. human resourCe deVelopment:

During the year under review, your company conducted training programmes to enhance the knowledge, skills, and development of its employees. A total of 839 executives and 393 non-executives participated in these training programmes, covering topics that were knowledge-based, development-oriented, and tailored to meet the company?s specific needs. The training programs were conducted both in-house and at external agencies? premises to address both present and future requirements. In total, 6,063 man-days were devoted to training during the financial year 2022-23.

In addition to the regular training programs, your company organized several special training initiatives during the year:

1) Mid-Career Development Programme (MCDP): A two-week programme named "Abhyudaya" was launched for mid-level executives who have completed 15 years of service in the company. The programme aimed to transform operational managers into tactical managers. The training content incorporated a Preventive Vigilance Module in line with CVC guidelines. Sessions on missile technology and Industry 4.0 were conducted to align with the company?s adoption of Industry 4.0 practices. Furthermore, sessions on "Healthy lifestyle to reduce stress" and "Yoga" were organized to encourage executives to adopt a balanced approach for overall well-being. A total of 81 mid-level executives were trained in the MCDP in two batches during the year 2022-23.

2) Induction-cum-Orientation Programme for Management Trainees (MTs): A four-month programme named "Parichay" was organized for the batch of 2022, consisting of 34 MTs. The programme aimed to introduce MTs to the organization and equip them with the necessary knowledge and skills to excel as executives and contributetowardsachievingorganizationalgoals. The programme covered various aspects of operations and included interactions with internal and external stakeholders. This comprehensive training nurtured the MTs to become key contributors to the company?s success.

Additionally, 25 Technical MTs underwent specialized training at the Defence Institute of Advanced Technology (DIAT), Pune, focusing on missile technology, underwater weapons, sonars, rocket launchers, and related areas.

3) On the International Day of Disabled Persons in 2022, an in-house workshop with the theme "UDAAN-Unleashing the power within" was organized for all Persons with Disabilities (PwBDs) at BDL. The workshop were specially-abled achievers in their respective fields. It aimed to motivate and inspire PwBDs to excel in their duties.

4) A total of 53 women employees received training on "Women Empowerment and Awareness Programme on POSH Act" during the year 2022-23, focusing on promoting gender equality and creating awareness about the Prevention of Sexual Harassment (POSH) Act.

5) The Department of Defence Production (DDP), Ministry of Defence (MoD), initiated MISSION RAKSHA GYAN SHAKTI with the primary objective of promoting an intellectual property (IP) culture and encouraging the creation of IP in the defence production sector. In alignment with this initiative, BDL trained 150 employees through a customized online training (COLT) module during 2022-23. The programme, with a duration of approximately 16 hours, concluded with a final assessment consisting of 30 questions to assess understanding and award a course completion certificate. A minimum score of 60% was required to obtain the certificate. These training initiatives highlight your company?s commitment to continuous learning, development, and fostering a conducive work environment that empowers employees to excel in their roles.

15. PARtiCULARS OfeMPLOYeeS:

There were no employees of the Company who received remuneration in excess of the limits prescribed under Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Further, in accordance with Ministry of Corporate Affairs Notification No. GSR 463(E) dated June 05, 2015, Government Companies are exempt from Section 197 of the Companies Act, 2013 and its rules thereof.

16. fOReiGN ViSitS:

Your Company incurred an expenditure of around 2.44 Crore during the year under report towards foreign travel for business trips.

17. iNDUStRiAL ReLAtiONS AND eMPLOYee WeLfARe:

Your company maintains cordial and harmonious industrial relations, thanks to the cooperation and support of all employee sections, including the Recognized Trade Union, associations representing SC, ST, OBC, Ex-Servicemen, and Officers. Statutory and non-statutory committees such as the Works Committee, Safety Committee, Canteen Managing Committee, and Welfare Committee contribute to maintaining discipline in the workplace.

Secret Ballot Elections were conducted simultaneously in all units of Bharat Dynamics Limited on May 6, 2022, by the Labour Department (Central) in Hyderabad to verify the membership of Trade Unions. In the elections, Bharat Dynamics Employees Trade Union Congress (BDETUC) Regd. No. A-4511 secured the majority of votes. Following the recommendations of the Ministry of Labour & Employment, the management has recognized Bharat Dynamics Employees Trade Union Congress (BDETUC) as the representative Union for the workers of the company for a period of two years starting from June 24, 2022.

Your company meticulously follows compliance with statutory welfare provisions. A Post Superannuation Medical Benefit Scheme is in place to address the medical needs of retired employees and their family members. The Recognized Trade Union, along with all the associations, extends full support to the management for the smooth functioning of the organization.

18. SeCURitY:

The Central Industrial Security Force (CISF) is responsible for providing security and fire services at both the Kanchanbagh and Bhanur Units. Throughout the year, CISF has played a crucial role in ensuring the security and protection of the company?s property. The CISF team has implemented robust security measures, combining physical measures and advanced technology to maintainthesecurityofhighly To oversee the security arrangements and the implementation of Intelligence Bureau (IB) guidelines, the Plant Security Council is in place. Regular security review meetings are conducted by both the management and CISF to enhance In addition to computerized photo identity cards, a Biometric Access Control System has been implemented to prevent unauthorized entry. CCTV cameras are installed throughout the factory premises to expand the coverage of CCTV surveillance. Door frames, metal detectors, and X-ray baggage machines are also utilized. Barricades, boom barriers, and mochas are provided to reinforce physical security measures.

Regular security awareness programs are conducted, along with the observation of Security Week and Fire Week. Employees are sensitized to security threats and educated on the appropriate actions to be taken during emergencies and fire accidents.

19. SAfetY:

Your company places a strong emphasis on maintaining Safety, Health, and Environment (SHE) standards. The Industrial Safety Committee and Explosive Safety Committee meet regularly to monitor SHE carried out in compliance with the Factories Act of 1948, while explosive safety strictly adheres to the regulations set by the Storage & Transport of Explosive Committee (STEC-2017) under the Centre for Fire, Explosive & Environment Safety (CFEES), Ministry of Defence, New Delhi. The safety committee meetings are held periodically to ensure adherence to statutory norms, and any safety-related issues are reviewed by the General Manager/Unit Head for compliance.

Industrial safety audits are conducted by the Joint Chief Inspector of Factories, Telangana State, and any observations made are duly addressed. Annual explosive safety audits are conducted by the Centre for Fire, Explosive & Environment Safety (CFEES) in New Delhi, and necessary actions are taken based on their observations. The company successfully completed the external Environmental Management System (EMS) certification audit in March 2023, without The 52nd National Safety Day Campaign was observed from March 4 to March 11, 2023. Various activities were conducted throughout the week, including the administration of safety pledges at workstations, distribution of safety badges, display of safety day banners, and competitions such as safety slogans, essays, and elocutions in Hindi, Telugu, and English. Safety quizzes and demonstrations on basic first aid and firefighting were also organized as part of safety promotional activities In terms of training programs, both in-house and external training sessions are regularly conducted for employees on industrial and explosive safety. Special medical check-ups are carried out for employees working in Electroplating and Canteen areas, while periodic medical check-ups are conducted for employees in other departments. Fire mock drills are performed at regular intervals to ensure preparedness for firefighting situations.

The Safety Engineering Department maintains regular communication with the Inspector of Factories, the Telangana State Pollution Control Board (TSPCB), and the Centre for Fire, Explosive & Environment Safety (CFEES) at the Ministry of Defence, New Delhi, to stay updated on any guidelines or updates for necessary compliance.

20. eNViRONMeNt AND POLLUtiON CONtROL:

As per the company?s environmental policy, your company is committed to manufacturing and supplying defence products to the Indian armed forces in an environmentally friendly manner. The key environmental commitments include:

Protectingtheenvironmentandpreventingalltypesof pollution.

Fulfilling compliance obligations.

Conserving natural resources.

Continually improving to enhance environmental performance.

All three units of BDL, namely Kanchanbagh, Bhanur, and Visakhapatnam, have been recommended for ISO 14001:2015 (EMS) certification. External auditors conducted an audit from March 6th to March 11th, 2023, to assess pollution levels and compliance with legal requirements as part of the re-certification process. The company has issued a circular to discourage the use of plastics, and e-waste and hazardous waste are disposed of through agencies registered with the Pollution Control Board. Solid waste, such as ferrous and non-ferrous metals, is disposed of through M/s MSTC, a government undertaking. Biomedical waste is also appropriately disposed of through an agency registered with the Pollution Control Board, and proper housekeeping practices are maintained on the premises.

Your company has implemented a Zero Liquid Discharge system, wherein treated water from the effluent treatment plant undergoes additionaltreatment through reverse osmosis (RO). The RO treated water is then utilized in the Demineralized Water (DM) plant for producing DM Water, which is used in the Electroplating Shop, CNC machines, and flow forming machines in the Workshops. Treated water from the sewage treatment plant is also utilized for gardening purposes within the premises. Internal audits and surveillance audits are conducted at regular intervals by certification bodies for all units. The disposal of solid and hazardous waste is carried out through certified agencies, and environmental parameters, including ambient air quality, stack quality of DG sets/venturi scrubbers, sewage treatment plants, effluent treatment plants, and noise levels, are tested as per specified frequencies. Additionally, water quantity is monitored using separate water meters, and also electricity consumption is monitored to comply with consent conditions. its commitment to environmental sustainability and compliance Byimplementing with environmental regulations.

Celebration of WORLDeNViRONMeNt DAY 2022:

World Environment Day 2022 was celebrated with great enthusiasm at all the units of BDL. To mark the occasion, banners highlighting the importance of environmental conservation were displayed at prominent locations, and saplings were planted on June 6, 2022. Slogan, essay writing, and quiz competitions were organized, focusing on the theme "Only One Earth - Care and Conserve," which emphasizes the need to live sustainably in harmony with nature. Prizes were awarded to the winners during the valedictory function.

As part of the celebrations, Dr. G.V. Ramanjaneyulu, Executive Director from the Centre for Sustainable Agriculture, delivered a guest lecture. The lecture covered various topics related to environmental awareness, such as environment and sustainable agriculture, organic and natural farming practices, building community marketing systems that connect farmer cooperatives directly with consumers, the relationship between food and the environment, climate change emergencies, and managing productive resources.

The celebration of World Environment Day served as a platform to raise awareness about environmental issues and promote sustainable practices, with a focus on preserving and protecting our planet for future generations

21. QUALitY:

All production divisions/units including Akash, CP-IGMP, Design & Engineering, Electronics Division of Kanchanbagh Unit, Bhanur, and Visakhapatnam Units are certified with AS 9100D, an aerospace quality management system standard. Kanchanbagh, Bhanur, and Visakhapatnam Units are also certified with ISO 14001:2015 (EMS), which is an environmental management system standard. The Corporate Office is certified with ISO 9001:2015 (QMS), which focuses on quality management systems. The Material Testing Lab, Electronics Lab, and Standard Labs are certified with ISO/IEC 17025:2017, which pertains to the competence of testing and calibration laboratories. The Electronics Division is certified with AFQMS (Air Force Quality Management System). Furthermore, BDL holds the ISO/IEC 27001:2013 certification for information security management systems (ISMS). Internal audits for all ISO/AS certified divisions are conducted by the company?s own internal auditors, while surveillance audits are carried out by certification bodies as per the prescribed frequency. Akash Division of the Kanchanbagh unit has recently been re-certified with the Aerospace standard (AS9100:2016) by M/s Novo Star Management Systems Solutions India Pvt. Ltd., Bengaluru.

In addition to these certifications, your company is committed to continuously improving customer satisfaction through customer meets and interactions with users. Corrective actions are implemented wherever necessary to drive improvement in processes and meet customer expectations.

22. OffiCiAL LANGUAGe (OL) iMPLeMeNtAtiON:

Implementation of the Official Language (OL) Act-1963 (as amended 1967) and its rules are strictly followed by the company. Quarterly OLIC (Official Language Implementation Committee) meetings are regularly held under the Chairmanship of the CMD and Directors, and quarterly progress reports on the use of the official language are submitted to the relevant authorities. In compliance with the OL Act and Presidential Orders, all papers presented before the Parliament, the Annual Report of the Company, MoU with MoD, and briefs for various Parliamentary Committees and delegations are prepared in bilingual form and submitted.

The First Sub-Committee of the Parliamentary Committee on Official Language inspected and reviewed the OL implementation in BDL-Bhanur Unit on 12th November 2022. The committee, headed by Ramchandra Jangada, appreciated BDL?s efforts in implementing the OL.

Inspections on OL implementation in the Bhanur Unit were conducted by the Assistant Director (OL) and Senior Translation Officer from the DDP, MoD on 19th October 2022. The reports received acknowledged the efforts made by BDL. Hindi Fortnight was celebrated from 14th to 27th September 2022 at the Corporate Office and its units. Various competitions were conducted during the fortnight for the officers and employees of the Corporate Office, Kanchanbagh Unit, Bhanur Unit, and Visakhapatnam Unit. The valedictory program of the Hindi Fortnight was conducted on 27th September 2022 under the chairmanship of the CMD, BDL. Cash awards were presented to the competition winners, as well as to officers and employees who made significant contributions in Hindi throughout the year The Town Official Language Implementation Committee of PSUs (TOLIC), Hyderabad, which consists of 48 member offices, was honored with the "Kshetriya Rajbhasha Puraskar" under Region ‘C? for best implementation of the official language for the years 2020-21 and 2021-22. The award, which includes the "Rajbhasha Shield," was received by Shri P Radhakrishna, Director (Production), BDL, on behalf of the CMD, BDL and Chairman of TOLIC (U). Shri Homnidhi Sharma, Dy. General Manager (HR-OL) and Member Secretary of TOLIC (U), also received a certificate of merit for his outstanding contribution.

BDL is assigned with the functioning of TOLIC (U) with 48 member offices. Regular half-yearly meetings are organized in May and October. During these meetings, the 19th issue of ‘PATHIK,? the house journal of the committee, was released, and TOLIC

Shield/Trophy/Cup and Best Magazine awards for the year 2021-22 were presented. The meetings were chaired by the CMD of BDL and Chairman of TOLIC (U).

Under the auspices of TOLIC (U), an orientation program on OL was organized for office heads, administrative heads, Hindi officers, and staff members of member offices on 24th December 2022. A joint Hindi workshop for small member offices of the Town Official Language Implementation Committee was organized on 20th January 2023. Additionally, a special online lecture on " " (Lost and found in Translation) was organized on 29th March 2023, with guest speaker Dr. Shrinarayana Singh, a retired director.

On the occasion of the visit of the Hon?ble Raksha Mantri to BDL-Bhanur Unit on 2nd July 2022, all product literature, promotional material, and banners were prepared and made available in bilingual form. Shri Homnidhi Sharma, DGM (HR-OL), served as the master of ceremonies for the programme. During Republic Day, Independence Day celebrations, Vigilance Awareness Week, Swachhata Pakhawada, and Constitution Day, the CMD of the organization addressed the audience in and the pledge was taken in both languages.

The company?s website in Hindi is regularly updated in compliance with the directives of the Government of India. Officers and employees of the organization participate in Inter PSU Competitions conducted by TOLIC (U) and have won six prizes. To promote and propagate Hindi and encourage reading habits among the officers and employees, various Hindi magazines and newspapers are regularly subscribed to, and popular Hindi books on all subjects are purchased annually, as per the directives of the Department of Official Language (DOL).

23 ViGiLANCe:

23.1 Preventive/ proactive vigilance has been the primary objective of Vigilance Department of the Company. As a part of its proactive vigilance measure, the department has issued 25 Systemic Improvement Suggestions in the areas of e-reverse auction, Recruitment, Departmental Promotion, Reservation, Sensitive Area Rotation, Civil works and Service Contracts, Township Administration etc. and of which many have been implemented by the Management during the year under report. Brief of all the Systemic Improvements have been hosted on BDL website https://bdl-indiain .

23.2 In furtherance of its preventive vigilance approach, as directed by Hon?ble CVC for institutionalizationof preventive vigilance module in PSUs, a 15 days ‘mid-career training program? for executives spanning three weeks in the mid-management level has been incorporated into the training calendar of the company for the year under report. A part of this, two batches of executives (each batch consisting 40) have been trained in areas of Preventive Vigilance, Financial Management, Strategic Management, Human Resources, Negotiation Skills, Data Analysis, Preventive Vigilance and Outbound Model Village visit among others.

23.3 Being an extended arm of the Central Vigilance Commission (CVC), New Delhi, the department has submitted Various reports (e.g. Monthly, Quarterly, Annual & CTE Type) to the Commission and also to Ministry of Defence and to the Board of the Company. The Department has also issued vigilance clearances to employees in cases of Recruitment, Promotion, Absorption, Confirmation, Foreign visits, for postings in sensitive areas etc. The department has also accorded priority handling the complaints as per the complaint handling policy of the CVC.

23.4 Observation of Vigilance Awareness Week is an integral part of the Vigilance department. As directed by the Central Vigilance Commission, Vigilance Awareness Week (VAW)-2022 with the theme " ; Corruption-free India for a Developed Nation" was observed across units of Bharat Dynamics Limited from 31.10.2022 to 06.11.2022. The observance of VAW-2022 commenced with Director(Production) Shri.P.Radhakrishna administering ‘integrity pledge for citizens? at 11 AM on 31.10.2022 at Visakhapatnam Unit and Ibrahimpatnam Unit participated in the ceremony through video-conference and took integrity pledge. This was followed by reading out messages of Hon?ble President of India, Hon?ble Vice-President of India, Hon?ble Prime Minister of India by Directors and message of CVC by CVO to the august gathering. The program was live across units of the Company through video conference. A total of 2725 employees of BDL have taken the Integrity Pledge during observance of vigilance awareness week.

23.5 In order to create awareness on vigilance and the importance of it in day-to-day life, various competitions such as Essay Writing, Elocution, Slogan Writing, Poster/Collage making on issues relating to Anti-corruption were conducted in online mode for employees, spouse and children of employees during the Vigilance Awareness Week-2022.

23.6 As a part of Vigilance Awareness Week 2022, Sensitization programsforemployeesonmattersrelatingto the Role of

CVC, CVO and Vigilance, Complaint Policy of CVC, Disciplinary Proceedings procedure and procurement procedure etc. were conducted across units of the company during the Vigilance Awareness Week-2022. To spread awareness on the theme of " ; Corruption-free India for a Developed Nation" and to sensitize employees of BDL and public at large, banners on the theme were displayed at conspicuous places across units of the Company and in public places too. To promote citizens to take CVC ‘e-integrity pledge?, a link of CVC website was hosted in the BDL website. Short telephonic messages were sent to all employees encouraging to be a part of "Vigilance Awareness Week-2022" and to take integrity pledge clicking the link http://pledge.cvc.nic.in

23.7 In order to spread awareness about the ill-effect of corruption on society and the importance of self-reliance & integrity in life, a Gram Sabha was conducted on 02.11.2022 at Yadgarpally Village, Keesara Mandal, Telangana wherein 300 citizens including farmers, workers of MGNREGA, women, school students were present. Dr. Upender Vennam, CVO administered ‘integrity pledge for citizens? to the gathering in Telugu language and spoke about the importance of observance of Vigilance Awareness Week. Village Sarpanch, Shri P. Raju spoke on this occasion and emphasized on the responsibility of citizens towards nation building. Other Gram Panchayat members present in the Gram Sabha also addressed the gathering. A Skit with anti-corruption message was organized during the event.

23.8 A Vendor Meet was organized by Corporate Commercial Dept. of BDL on 01.11.2022 at Bhanur Unit, wherein, vendors from across India were invited to be a part of business prospects of BDL and more than 175 vendors were participated. Shri P Radhakrishna, Director (Production) inaugurated the meet and spoke on the importance of contribution of vendors in the success of BDL. Company?s Independent External Monitors Shri J K Khanna, IPS (Retd.) and Shri A Seshagiri Rao, IRSSE (Retd.) participated in the meet through video-conferencing and addressed the gathering. On this occasion, CVO, Dr. Upender Vennam administered ‘integrity pledge for citizens? to vendors and emphasized on Multiple Vendor Development to reduce dependency, increase competitiveness and to ensure transparency and accountability. ED (Head-Bhanur Unit), GM (VU), GM (Head-KBU), GM (TSD & REF) were present in the meet and addressed the gathering. An online vendor payment module was also launched by Director (Production) during the meet.

23.9 A Walkathon was organized by Bhanur Unit at Bulkapur village on 01.11.2022 to spread the messages to public on anti-corruption. CVO, Dr. Upender Vennam and Cmde G R Pradhan (Retd.), ED (Bhanur Unit) flagged off the walkathon at Bulkapur along with village representatives and participated in the walkathon. A Grama sabha was organized in the village and public were apprised of the need to ensure integrity in their day-to-day life. Placards and banners with slogans on ill-effects of corruption were displayed.

"CHETANA??- annual vigilance newsletter released during valedictory function of VAW-2022 by Chief Guest Shri Mahesh Bhagwat, IPS, Commissioner of Police, Rachakonda Police Commissionerate, Telangana 23.10 The observance of Vigilance Awareness Week-2022 concluded with a valedictory function organized on 07.11.2022 at Kanchanbagh Unit of the Company. Shri Mahesh Bhagwat, IPS, Commissioner of Police, Rachakonda Police Commissionerate, Telangana graced the occasion as Chief Guest and delivered a key note address to the employees. Shri Mahesh Bhagwat shared his experience with the audience and emphasized on how un-checked corrupt activities ruin entire country. The program was attended by Directors, CVO and other senior executives. The dignitaries motivated the employees to practice ethical behavior at all times and contribute towards Organization and Nation building.

24. ANti-BRiBeRY AND ANti-CORRUPtiON POLiCY:

Your company has zero tolerance approach to bribery and corruption. Your company prohibits all forms of bribery and corruption whether involving, but not limited to GovernmentOfficialsor a Private Sector persons or Company and whether directly or indirectly. The Board of Directors had approved a policy on Anti-Bribery and Anti-Corruption and the same was hosted on in/sites/default/files/2023-01/2023-02/ACAB%20Policy.pdfwebsiteoftheCompanyhttps://bdl-india.

25.1 The Board of Directors of the Company comprises Functional Directors, Government Nominee Directors and Independent Directors (i.e Non Official Part Time Directors) who are appointed by the Government of India from time to time. Further, the tenure and remuneration of Functional Directors including Chairman and Managing Director are decided by the Government of India through Public Enterprises Selection Board/Search Committee. The Government communication also indicates the detailed terms and conditions of their appointment including a provision for the applicability of the relevant rules of the Company.

25.2 The Government Nominee Directors are not entitled to any remuneration/sitting fee. The Independent Directors (i.e. Non Official Part Time Directors) are entitled to sitting fees for attending the Board/Committee meetings as approved by the Board, in line with the government directives, statutory acts, rules and regulations.

25.3 independent Directors (i.e. Non Official Parttime Directors)

The Ministry of Defence, Government of India vide its letter No. No.DDP-M0001(11)/1/2018/D(BDL) dated 24.02.2023 appointed one new Independent Director viz., Shri. Jashwant Lal as Part-time Non-Official Directors w.e.f 24 February 2023 for a period of three years or until further orders whichever is the earliest.

Statement on declaration byindependent Directors:

Independent Directors have given declarations u/s 149(7) of the Companies Act, 2013 that they meet the criteria of independence as laid down u/s 149 (6) of the said Act.

25.4 During the year, the Ministry of Defence, Department of Defence Production, Government of India, through its Office Memorandum No.8 (32)/2019-D (Coord/DDP) dated 14.09.2022, appointed Shri. Anurag Bajpai, JS (DIP), as the Part- on the Board of the Company, replacing Shri. Chandraker Bharti. The Board TimeOfficial acknowledges and appreciates the valuable contributions made by Shri. Chandraker Bharti during his tenure.

25.5 During the year, Shri. N.P Diwakar, Director (Technical), superannuated on 31 August 2022, and his term as Director on the Board of BDL concluded upon his superannuation. The Board expresses its gratitude for the valuable contributions made by him during his tenure. The Ministry of Defence, Department of Defence Production, Government of India, through its Office Memorandum No.DDP-M0001(11)/04/2021-D(BDL) Pt.1 dated 29.12.2022, appointed Cmde A. Madhavarao as Director (Technical) in place of Shri. N.P. Diwakar. Cmde. A. Madhavarao assumed the position of Director (Technical) with effect from 02 January 2023.

25.6 Cmde.Siddharth Mishra, Chairman & Managing Director, superannuated on 31 March 2023, and his term as Director on the Board of BDL concluded upon his superannuation. The Ministry of Defence, Department of Defence Production, Government of India, through its Office Memorandum No.M0001(24)/1/2022-D(BDL) dated 31.03.2023, assigned the additional charge of CMD, BDL to Shri. P. Radhakrishna, Director (Production) w.e.f 01 April 2023 to 30 June 2023. The Board expresses its appreciation for the valuable contributions made by Cmde. Siddharth Mishra during his tenure. 25.7 In accordance with the provisions of Section 152 of the Companies Act, Shri. N. Srinivasulu, Director (Finance), retires by rotation at the ensuing Annual General Meeting and, being eligible, offers himself for reappointment.

25.8 Number of Meetings of Board :

During the year 2022-23, Six (6) Board Meetings were held on 26 May 2022, 12 August 2022, 26 September 2022, 11 November 2022, 07 February 2023 and 31 March 2023.

25.7 Performance evaluation:

The provisions of Section 134(3)(p) of the Companies Act, 2013 relating to to your Company since necessary exemptions are provided to all government granted to your Company by Securities Exchange Board of India (SEBI) under the provisions of SEBI (Listing Obligations Disclosure Requirements {LODR}) Regulations, 2015 vide their letter No. SEBI/HO/CFD/DIL1/OW/P/2018/1679/1 dated January 17, 2018.

26. DiReCtORS? ReSPONSiBiLitY StAteMeNt:

As per Section 134(3)(C) and 134(5) of the Companies Act, 2013 as amended, the Directors state that:

(i) In the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.

(ii) The Directors had selected such accounting policies and applied them consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2023 and of the profit of the Company for the year ended on that date.

(iii) Directors have taken proper and sufficient care 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.

(iv) Directors have prepared the annual accounts on a going concern basis.

(v) Directors have laid down internal financial controls which are being followed by the Company and that such internal financial controls were adequate and operating effectively and (vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

27. SiGNifiCANt AND MAteRiAL ORDeRS:

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company?s operations in future.

28. eVeNtS SUBSeQUeNt tO the DAte OffiNANCiAL StAteMeNtS: the financial position Materialchangesandcommitmentsaffecting of the company which have occurred between 31 March 2023 and date of signing of this Report are - Nil.

29. AUDit COMMittee:

During the year 2022-23, Four Audit Committee meetings were held to review internal control systems and their adequacy, including coverage of Audit functions. Details of composition, terms of reference, etc., are covered in Governance.

30.1 Pursuant to the provisions of Section 135 of the Companies Act, 2013 and The Companies (Corporate Social Responsibility) Rules, 2014 read with various clarifications/amendments issued by Ministry of Corporate Affairs & DPE guidelines, the Company has undertaken various activities as per the CSR Policy. The line with the Schedule-VII of the Companies Act-2013, which are duly incorporated in CSR policy and forms the guiding principle for all our programmes. The Board of Directors of your Company has Board Level Committee on Corporate Social Responsibility and Sustainable Development (CSR & SD) (please refer Corporate Governance Report) in line with the provisions of Section 135 of the Companies Act, 2013. The Committee has formulated and recommended CSR Policy to the Board indicating the projects/activitiesto be undertaken by the Company as specified in Schedule VII of Act, 2013.

30.2 Your Company has been very conscious about its responsibilities towards society. Your Company has also ventured into backward/ under developed areas in Andhra Pradesh and Telangana to undertake Corporate Social Responsibility (CSR) activities by sponsoring various schemes.

30.3 The core areas of focus under CSR are Health Care, Nutrition, Education & Literacy, Skill Development & Sustainable Livelihoods, Sanitation, Safe Drinking Water etc. Your company also adopted villages in Andhra Pradesh and Telangana State under Corporate Social Responsibility initiative and the focus is on the necessities of human life health, water and other conveniences.

30.4 The CSR and SD activities are monitored periodically by the Committee and a detailed annual report on activities undertaken during the year 2022-23 is enclosedas Annexure-i. 30.5 During the year 2022-23, the CSR & SD obligation was 1212.14 lakh. Against the target, the company has incurred an expenditure of 1319.32 lakh and achieved 100% CSR target amount required under the provisions of Companies Act, 2013. CSR activities being undertaken are placed on Company?s websitehttps://bdl-india.in/sites/default/files/2022-09/ CSR.pdf

31. RiSK MANAGeMeNt:

The Company has a Board approved Risk Management Policy. The policy aims at elimination or reduction of risk exposures through identification and analysis of various types of risks and facilitating timely action for taking risk mitigation measures. The policy envisages that all programs, project reviews will highlight the progress of risk mitigation plans till the closure and signing off the mitigation plans.

Pursuant to the Reg. 21 of SEBI (LODR) Regulations, 2015, the Company has constituted a Risk Management Committee. The details of Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report.

32. ANNUAL RetURN:

In accordance with the provisions of the Companies Act, 2013, Annual Return of the Company for the year under report is available on the Company?s website https://bdl-india.in/annual-reports

33. ReLAteD PARtY tRANSACtiONS:

There are no materially significant related party transactions during the year under review which may have a potential conflict with the interest of the Company at large. Thus, disclosure in Form AOC-2 is not required. Members may refer to the notes to the accounts for details of related party transactions. The policy for related party transaction has been uploaded on the Company?s website https://bdl-india.in/sites/default/ files/2023-06/Policy%20on%20Related%20Party%20Transactions.pdf

34. PARtiCULARS Of LOANS, GUARANteeS OR iNVeStMeNtS:

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statement

35. iNteRNAL CONtROL SYSteMS:

Your Company had put in place all required internal controls and systems to meet the canons offinancial propriety. External audit firms are appointed to ensure their adequacy and report thereon. Detailed analysis of reports of Internal Audit Firms as well as reports of Internal Audit Department of your Company is placed before the Audit Committee for its review and advice. The adequacy of internal control procedures are reviewed and reported by Statutory Auditors in their Audit Report. The necessary disclosures have been made in Notes to Accounts. Your Company being a Government Company is subject to Government Audit also.

36 . audItors:

Statutory Auditor:

M/s.G.Natesan & Co., Chartered Accountants, Hyderabad were appointed as Statutory Auditors of the Company for the financial Year 2022-23 by the Comptroller & Auditor General of India. The Auditors have audited the Accounts and does not contain any qualification, reservation or adverse remarks The Auditors? Report on the financial statements for the financial year 2022-23 and the Comments of Comptroller and Auditor General of India (C&AG) under Section 143 (6) of the Companies Act, 2013 are appended to the Annual Report.

Cost Auditor:

Your Company appointed M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad as Cost Auditors for the FY 2022-23 for the audit of the cost records of the Company. The Company maintains cost records as specified by the Central Government under section 148(1) of the Companies Act, 2013 in respect of its manufacturing activities.

Secretarial Auditor:

Pursuant to theprovisionsofSection204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014 (as amended), the Company has appointed M/s.Narender & Associates, Practicing Company Secretaries (PCS Registration No.5024) for the financial year 2022-23 to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is enclosed as Annexure-ii.

37. CeO / CfO CeRtifiCAtiON:

As per the requirements of SEBI Listing Regulations and DPE Guidelines, the CEO/CFO certificate has been obtained and placed before the Audit Committee and the Board.

38. RePORtiNG Of fRAUDS BY AUDitORS:

During the year, neither the Statutory Auditor nor the Secretarial Auditor have reported to the Audit Committee/Board under Section 143(2) of the Companies Act, 2013, any instance of fraud committed against the Company by its officers or employees, the details of which needs to be mentioned in the Board?s Report.

39. MANAGeMeNt DiSCUSSiON AND ANALYSiS RePORt:

Management Discussion and Analysis Report required under the SEBI (LODR) Regulations, 2015 and also under the DPE

Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report as Annexure iii. 40. CORPORAte GOVeRNANCe: 40.1 Corporate Governance is about application of best management practices, compliance of laws and adherence to ethical standards to achieve Company?s objective of enhancing stakeholders? value and discharge of social responsibility. 40.2 The Company has a well-established, transparent and fair administrative set up to provide for professionalism and accountability.

40.3 As per the guidelines on Corporate Governance for CPSEs issued by DPE vide its OM No. 18 (8)/2005-GM, dated 14 May 2010 and in terms of the SEBI (LODR) Regulations, 2015, Report on Corporate Governance along with Certificate on compliance of conditions on Corporate Governance from a Practicing Company Secretary are attached to this report as

40.4 Quarterly and Yearly compliance reports on Corporate Governance are being forwarded to Stock Exchanges and MoD in the prescribed format. Your Company received "Excellent" rating from MoD for compliance of Corporate Governance under DPE Guidelines for the year 2022-23.

41. DiSCLOSURe UNDeR the SeXUAL hARASSMeNt Of WOMeN At WORKPLACe (PReVeNtiON, PROhiBitiON & ReDReSSAL) ACt, 2013:

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been notified in the Company. In line with the Guidelines received from time to time, necessary actions have been taken to prevent Sexual Harassment of Women at Workplace. The BDL CDA Rules applicable to Officers and the Certified Standing Orders applicable to Workmen have the required provisions in this regard. The Internal Complaints Committees as per Section 4 of the Act have been put in place. During the year 2022-23, your Company has not received any Sexual harassment complaints.

42. COMPLiANCe UNDeR the RiGht tO iNfORMAtiON ACt, 2005:

The information required to be provided to citizens under Section 4(1)(b)of Right to Information Act, 2005 is placed on Company?s Website https://bdl-india.in/sites/default/files/2023-05/Information%20on%20BDL%20Mandatory%20disclosures%20in%20 Accordance%20with%20RTI%20May%202023.pdf. It contains general information of the Company, functions, powers and duties of employees/officers, decisions making process, rules, regulations, manuals and records held by the Company, directory of the Company?s Officers, pay scales of officers/ employees and procedure for seeking information and inspection of records. The Company has nominated a Central Public Information Officer of Senior Manager Level to attend to queries and appeals. Further, during the year 2022-23 Company received 190 applications/queries, out of which 188 applications are disposed-off expect for 2 (Two) RTI queries which are under process. Further 18 appeals are received and disposed-off by Final Appellate Authority.

43. ViGiL MeChANiSM/ WhiStLe BLOWeR POLiCY:

Pursuant to the provisions of the Section 177(9) of the Companies Act, 2013 read with Rule (7) of the Companies (Meeting of the Board & its Power) Rules, 2014 (as amended) and DPE Guidelines for CPSEs, the Board of Directors had approved the policy on Whistleblower/Vigil Mechanism and the same was hosted on website of the Company https://bdl-india.in/sites/default/ files/2020-01/Whistle%20blower%20Policy%20%26%20Vigil%20Mechanism_0.pdf. The policy inter-alia provides a direct access to the Chairman of the Audit Committee. Employees are encouraged to raise any of their concerns by way of whistle blowing and none of the employees have been denied access to the Audit Committee.

44. BUSiNeSS ReSPONSiBiLitY AND SUStAiNABiLitY RePORt:

The Securities and Exchange Board of India (SEBI) has mandated inclusion of Business Responsibility and Sustainability Report ("BRSR report") as part of the Annual Report based on market capitalization. In terms of amendment to regulation 34 (2) (f) of LODR Regulations vide Gazette notification no. SEBI/LAD-NRO/GN/2021/22 dated May 05, 2021, SEBI has introduce new reporting requirements on ESG parameters called the Business Responsibility and Sustainability Report (BRSR). Your Company has prepared a comprehensive policy framework for BRSR report, after studying the SEBI (LODR) Regulations, 2015 requirements and keeping in view the business and governance environment in which BDL as a Defence PSU operates. The Company?s BRSR report for the financial year 2022-23 is appended to the Annual Report.

45. DiViDeND DiStRiBUtiON POLiCY:

In terms of SEBI (LODR) Regulations,2015 (as amended), dividend distribution policy has been adopted by your company to set out the parameters and circumstances that will be taken into account by the Board in determining the distribution of dividend to its shareholders and/or retaining the profit into the business. The policy is available on the BDL?s websitehttps://bdl-india.in/ sites/default/files/2020-01/Dividend%20Distribution%20Policy_0.pdf

46 . aCKnowledgement:

46.1 Your Directors gratefully acknowledge and express their appreciation for the cooperation extended and guidance provided by various Government Agencies, including the Ministry of Defence, DPSUs, Department of Defence Production, DRDO

Laboratories, Central Government Departments, State Governments of Telangana and Andhra Pradesh, Quality Assurance Agencies of the Government of India, and other PSUs. Their support has been invaluable to the Company, and your Directors are grateful for the assistance received from them on various occasions.

46.2 The Company would like to extend its sincere appreciation to the Comptroller & Auditor General of India, the Principal Director of Commercial Audit & Ex-officio Member, Audit Board, Statutory Auditors, Bankers, and Suppliers for their cooperation, support, and guidance. Their contributions have been instrumental in ensuring the smooth functioning and financial integrity of the Company.

46.3 The Directors take this opportunity to express their deep appreciation cooperationof the forthevaluablecontributionsand employees at all levels. Their dedication, hard work, and commitment have played a crucial role in propelling the Company to greater heights and sustaining its growth trajectory. The Directors recognize and acknowledge the employees? efforts and extend their gratitude for their continued support in the future.