Dear Shareholders,

I am pleased to present 77th Annual Report of Kirloskar Electric Company Ltd for financial year 2023-24 on behalf of our Board of Directors. Despite a challenging operating environment, we have delivered positive financial results and continued to create value for all Stakeholders. As the Chairman of your Company, it is my privilege to reflect on our achievements, challenges and the path forward in this dynamic industry.

Similar to numerous other sectors, our industry is also undergoing a swift progression and novelty in technology. Throughout the year, even in the face of uncertain economic conditions we have overcome obstacles with tenacity and flexibility. The dynamic landscape of digitalization presents us with opportunities and challenges, encouraging us to adapt and advance. We upgrade the technology for our products from time to time to meet the market requirements and to keep our standing in the industry.

Three main pillars were at the center of these efforts: (1) enhanced capacity utilization; (2) cost optimization; and (3) stepping up our export focus. These pillars shaped our decisions and actions over the course of FY 2023–24. This year, we have improved capacity utilization and drastically optimized production costs for motors, transformers and switchgear.

One of our key achievements this year has been the successful supply of various transformers through EPCs for Bihar Water Supply Schemes and Punjab Water Supply Schemes, under Government of India's prestigious initiative viz, 'Jaljeevan Mission'. Besides this, we have successfully conducted short circuits tests in CPRI, on various transformers including 40MVA, 33/11.5kV, 16MVA, 11/3.45kV and supplied to various power projects including IOCL, NTPC, SAIL, Sikkim Power etc. Our notable achievements also include, the supply of our various products in association with leading EPCs, OEMs and OEAs catering to diverse applications and customer requirements strengthening our market position and driving sustained growth.

This year, we anticipate a dynamic growth trajectory fuelled by a number of key strategic considerations. Above all, our strong and robust order book for both customized product orders and standard products order establishes a solid groundwork for long-term expansion. These tailored solutions secure a consistent revenue stream, create long-lasting relationships and match our customers' needs.

Our product reach in the mobility sector is wide and constantly expanding. India's emphasis on domestic manufacturing and technological innovation offers us chances to expand and support the global mobility revolution. India's EV market has experienced a sharp increase in business this year. As the demand for EVs increase, there is a great opportunity for our business to grow and for us to contribute to the success of the EV ecosystem in India. Your Company is in a perfect position to take advantage of the revolutionary changes occurring globally and ride the waves. Your Company's proven manufacturing capabilities and preparedness for market competition put it in a strong position to take advantage of energy transition opportunities as they present themselves.

Establishing a work environment that fosters individual development, inclusivity and diversity is our goal as we strive to be the one of the best place to work for people who share our enthusiasm and values.

As we look ahead, our vision directs us and pushes us to achieve new standards of excellence, our objective keeps us grounded in providing all of our stakeholders with sincere and committed services, while our vision guides us forward by encouraging us to achieve even greater heights of excellence. Together, we will overcome obstacles, take advantage of chances and leave a lasting impression to ensure our success and prosperity on this life-changing journey.

I would like to conclude by sincerely thanking all of our stakeholders, including our esteemed bankers, suppliers, customers, dealers, channel partners, service providers, shareholders, employees and board members for their unwavering support, faith, and belief in our business. With our combined efforts, I have no doubt that we will keep breaking records, surpassing goals and leaving an enduring legacy.

Again, I want to thank you for your support and confidence.