MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The core business of PTC Industries Limited is manufacture of castings, machined components and fabricated parts for critical and super-critical applications across the world. The management discussion and analysis report has been included in adherence to the spirit enunciated in the code of Corporate Governance approved by the Securities and Exchange Board of India.

The management herewith brsents the Economic Overview, Forward Looking Statements, Industry Structure and Developments, Highlights and Key Events, Opportunities and Threats, Outlook, Risks and Concerns, Internal Control Systems and their adequacy, Financial Performance with respect to operational performance, Segment-wise performance, Material Developments in Human Resources and Industrial Relations. The outlook is based on assessment of the current business environment and it may vary due to future economic and other developments, both in India and abroad.  

Economic Overview

India has emerged among the few large economies with encouraging economic outlook, amidst the mood of pessimism and uncertainties that engulf a number of advanced and emerging economies. Brighter prospects in India are mainly due to the fact that the economy seems to be on the path of being relieved of the vulnerabilities associated with an economic slowdown: persistent inflation, elevated fiscal deficit, slackening domestic demand, external account imbalances, and oscillating value of the rupee. The government's "Make in India" drive has also provided a much needed boost for the manufacturing sector. The country's GDP was recorded at above 6 per cent for the second consecutive year in 2014-15, at 7.4 per cent i.e. a humble growth of 0.5 per cent from 6.9 per cent in 2013-14. The change in base year and revision in the methodology of computation of GDP by aligning it with international practices, has captured the growth estimates of the Indian economy.

It is being estimated that India's growth rate will remain high in the year 2015-16, supported by a revival in investment. Further, decline in oil prices shall reduce brssure on the current account deficit and inflation. India is expected to overtake China to become the world's fastest growing economy in the current fiscal year.  

Forward Looking Statements

The report contains forward-looking statements, identified by words like 'plans', 'expects', 'will', anticipates', 'believes', 'intends', 'projects', 'estimates' and so on. All statements that address expectations or projections about the future, but not limited to the Company's strategy for growth, product development, market position, expenditures and financial results, are forward looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Company's actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or eve

Industry Structure and Developments

Background

The metal casting industry makes parts from molten metal according to an end-user's specifications. Facilities are typically categorized as casting either ferrous or nonferrous products. Foundries and die casters that produce ferrous and nonferrous castings generally operate on a job or order basis, manufacturing castings for sale to others companies. In addition, many facilities do further work on castings such as machining, assembling and coating.

Most of these castings are produced from recycled metals. There are thousands of cast metal products, many of which are incorporated into other products. Almost 90 percent of all manufactured products contain one or more metal castings. Automobiles and other transportation equipment use 50 to 60 percent of all castings produced. The defence industry also uses a large portion of the castings produced in the world. Some of other common castings include: pipes and pipe fittings, valves, pumps, brssure tanks, manhole covers, etc.

Depending on the desired properties of the product, castings can be formed from many types of metals and metal alloys. Gray and Ductile Iron make up almost 75 percent of all castings (ferrous and nonferrous) by weight. Malleable iron foundries produce only about two percent of all castings (ferrous and nonferrous). Steel castings make up about 10 percent of all castings (ferrous and nonferrous). In general, steel castings have better strength, ductility, heat resistance, durability and weldability than iron castings. There are a number of different classes of steel castings based on the carbon or alloy content, with different mechanical properties. A large number of different alloying metals can be added to steel to increase its strength, heat resistance, or corrosion resistance.

Global Trends

Global casting production grew in 2013, but other than large gains in China, total tonnage increased by less than half-million metric tons. After an imbrssive 15.1% boost in total production in 2012, the US market increased at a more modest pace. While the global economy continues to steady itself in the years after the recession, economic volatility means big losses and gains for certain countries. Smaller producers were more likely to experience losses or gains in double digits, while the majority of the world's largest producers reported only steady growth or slight contraction.

The Ferrous Metal Foundry Products Industry revenue is projected to grow over the five years to 2016. Despite significant gains following the economic downturn, industry growth has decelerated in recent years. The economic slowdown in emerging markets, such as China, and debt issues in developed countries, such as the United States and Europe, have weakened demand and prices for ferrous metals worldwide. The operating context for the year was challenging, given the backdrop of a market slowdown, a volatile input cost environment and heightened competitive intensity. Your Company's performance for the year 2014-15 has to be viewed in the context of aforesaid economic and market environment.

PTC believes that winning with customers is a key enabler for winning in the marketplace and has a strong customer agenda in place to deliver quality products to the customers. The industry is faced with the challenge of realising tailored customer solutions that have to be developed quickly and produced cost-effectively. These requirements manifest the need for efficient operations management and optimisation of costs.

Forecasts for the coming year are very conservative ranging from slow growth to risk of another downturn. The problems in the Euro zone are leveling and turning slightly up. At best, it will be a slow growth as there are no drivers pushing for fast growth.

Indian Industry

The Indian Metal Casting Industry is well established. According to the recent World Census of Castings by Modern Castings, India ranks as the third largest casting producer, producing an estimated 9.81 Million MT of various grades of castings as per international standards. The various types of castings which are produced are ferrous, non-ferrous, aluminum alloy, graded cast iron, ductile iron, steel. etc. for application in Automobiles, Valves and Pumps, Railways, Engines, Construction machinery, Power, Paper and Textile machinery, and castings for more critical applications like Aerospace, etc. However, grey iron castings have the major share (approximately 70 %) of the total castings produced. There are roughly 4,600 units out of which 80% can be classified as Small Scale units and 10% as Medium and 5% as Large Scale un

The Company continues to derive sustainable benefit from its strong foundation and long tradition of research, which differentiates it from many others. New products, processes and metallurgies flow from work done in the PTC research and development centre. With world class facilities and superior technologies, the Company is able to maintain its position in the world market and provide a significant technology differentiation in its products and processes

Casting Industry

The Indian metal casting industry forms the crux of the country's industrial growth. It has come a long way from the days when it was brdominantly used for die-casting in the automobile industry and a few electronic goods. Today, it manufactures various types of castings comprising ferrous and non-ferrous, which include nickel and aluminium alloys, graded cast iron, ductile iron, steel etc.

Global metal casting production was still led by China, the US and India. China was the top global producer, with 44.5 million metric tons. The boost rebrsents a large majority of the overall increase in global production, and China continued to increase its share of the global market. The US remains the world's second largest producer by producing 12.25 million metric tons followed by India which strengthened its position by producing 9.81 million metric tons. India's production capacity has grown by growth rate of 12 per cent in last decade as against a world average of around 3.6%.

The growth of industry is expected to rise at the accelerated pace keeping in view of develop being brought in infrastructure and projects around the world. Indian Foundry Industry is expected to grow driven by an increase in automation, availability of c The Indian government has also stepped up infrastructure spending from the current 5 per cent of gross domestic product (GDP) to 10 per cent by 2017.

India is committed to investing US$ 1 trillion in th infrastructure during the 12 Five Year Plan (2012–17), th from US$ 428 billion in the 11 Five-Year Plan. With this initiative, the prolonged demand of good infrastructure is likely to met but there are also several nagging issues that the industry will need to overcome if sustained, stable and long-term growth is to be attained.

The export of castings by Indian foundries has declined slightly from USD 2,174.34 Crores in 2012-13 to USD 2,128.19 Crores in 2013-14. This slowdown is due to weak demand but apparently not too important keeping in view the recent developments in global economy and the strengthening of Indian foundries. With Indian manufacturers penetrating various global markets, it is apparent that by the year 2015-2016 India's share in exports of casting will go up to USD 3.6-3.8 billion. India's manufacturing sector grew gradually in 2014-15. In the year 2015-16, it is expected that lower inflation, easier financial conditions and positive government policy shall support a gradual pick-up in the growth cycle of the cou

Highlights and key events

PTC's strength in the global and domestic market has been built up over five decades. It has transformed itself from a modest small scale industry to one of the leading suppliers of high brcision castings for critical and supercritical component requirements across the world.

In the year, 2014-15, PTC Industries demonstrated its resilience with its determined leadership and committed workforce, which enabled the company to sustain its market strength, financial performance and operational efficiency without derailing its long term strategic plans.  In the reporting period, the Company strengthened its product portfolio, research and technology edge, and worked on increasing its penetration of the overseas market and expanding its customer base. Various cost reduction measures were undertaken by the company to ensure stability of performance, the benefits of which are likely to be derived in the future.

Some of the achievements of the company during the period are:

Advanced Manufacturing and Technology Centre (AMTC) a new state-of-the art facility is being set-up in Lucknow, which will be a one-of-its-kind unit with the most advanced technologies, state-of the- art automation and robot assisted manufacturing. This new plant shall also have  Titanium casting capability for the first time in India.

PTC Industries Limited has been featured as one of the '16 Hidden Gems' of India by Forbes India magazine.

The company also marked its brsence in 'Hannover Messe', the world's biggest industrial fair held in Hannover, Germany where a large number of visitors from around the world apbrciated its focus on innovation and technology. The Honorable Chief Minister of Uttar Pradesh, Mr. Akhilesh Yadav and the Secretary of the Department of Industrial Policy and Promotion (DIPP), Mr. Amitabh Kant visited the PTC stand and interacted with Mr. Sachin Agarwal, Managing Director.

The Company listed its shares on the Bombay Stock Exchange thereby keeping its promise to provide a trading platform to its shareholders.

The Company has maintained its EBITDA levels despite a fall in turnover in the year 2014-15 as it brpared for a major capability and capacity expansion.

The PTC Foundation was formed to undertake the Corporate Social Responsibility objectives of the Company.

PTC's imbrssive facilities are constantly transformed through upgrades in technology and automation. In the last three years, amidst the global crisis, PTC has reinforced its position globally and emerged stronger than ever with strong customer relationships coupled with specialized manufacturing abilities. Our relentless focus on technology and innovation has opened up opportunities and has transformed the company into a globally recognized casting brand. PTC endeavors in building for the future with technology.  

OUTLOOK

The foundry industry is passing through a visibly sluggish phase now as it rides on the manufacturing sector, which has been facing its own growth challenges. There are about 5,000 foundries in India, largely in the MSME sector, sbrad across clusters, from Punjab in the north to Coimbatore in the south. The industry produces 10 million tonnes of cast components worth about $18 billion, which is nearly 10% of global production by weight. With a sustainable growth plan in place, this global share can go up to 20% in five years. The industry exports castings worth $2.2 billion a year. This can potentially go up to $8-10 billion with greater productivity, value addition and market exp

The 'Make in India' campaign augurs well for the foundry industry as it is a key feeder to engineering and manufacturing. Demand for the foundry industry is estimated to grow three-fold in the ten years, which will throw up new opportunities and challenges, too. New niche markets will open for the industry, such as application of light weight and specially alloyed metal castings for reduced energy consumption. The advancements in downstream industry are creating requirements for metal castings that can withstand critical applications in nuclear and ultra-critical mega power plants, railways, aerospace and defence sectors. At the same time there could be several challenges such as the need for investments in modern manufacturing/ design tools, balanced automation, and up-scaling of IT.  These will create skilling opportunities for the future, which must be met by timely interventions by all stakeholders.

The industry needs to take upon itself the mantle of scaling up production to 25-30 million tonnes per annum, which entails a 100% improvement in productivity through balanced automation, skill development, application of modern manufacturing/design tools and IT, and reduced consumption of natural resources by efficient management, recycling and waste reduction. The country's new manufacturing policy envisages a manufacturing share of 25% in the GDP and creating 100 million jobs in ten years. Since most sectors use metal castings in manufacturing, it is difficult to meet this goal without a corresponding growth of the foundry sector.

PTC is ideally positioned to take advantage of the promising growth in the foundry sector. PTC has successfully developed and indigenized world class technologies and processes. It has created systems based on robotics and automation leading to remarkable quality and consistency in its products. With this investment in capacity and capability, PTC shall offer state-of-the-art facilities for manufacture of metal components and parts for critical and super-critical applications for a wide spectrum of industries like aerospace, power, oil & gas, railways, etc. which will make it the supplier of choice both in the domestic as well as export markets.

The medium to long-term outlook for the sectors to which the Company caters is quite positive, but the domestic as well as export markets in the current period are still sluggish. In line with its long term strategy, the Company is in the process of construction of its new "Advanced Manufacturing & Technology Centre" in Lucknow, Uttar Pradesh. Significant investments are being made in building manufacturing capabilities and capacity, making technology enhancements, developing product platforms and putting together manpower upgrades for sustenance and enhancement of growth. The Company is investing in all these areas to seize the considerable opportunity that is evident both at the domestic and international level in the future.

OPPORTUNITIES AND THREATS

In recent times, India saw some slowdown in casting production due to its heavy export orientation. However, internal growth of the automotive industry has driven some recent upturns in production levels. Indian foundries face some problems in supply of castings due to the infrastructure issues related to raw materials and energy supplies. The Indian foundries are also hampered by cumbersome regulations and very high energy costs.

However, India is now poised to become the fastest growing economy in the world. The growth is due to internal demand coupled with international companies shifting production from China to India. Production costs in India are now lower than China. It has about 4,600 foundries that produce about 9 million metric tons per year with 500,000 direct employees. India has seen major increases in internal demand competing for capacity that have moderated in the last year. With the new 'Make in India' campaign being pushed by the Prime Minister, the foundry industry is expected to bounce back. It is brdicted that in the coming ten years the demand for the foundries will go up by three folds. The India Foundrymen Association estimates that India needs to double its casting capacity in the next five years to meet projected demand. This is bound to bring in new challenges and opportunities for the foundries. 

The Company is expected to gain a steady growth again and use the opportunity available in the industry. The combination of effective manufacturing costs with the good quality system and automation would give an edge to the Company in terms of pricing, quality and demands. The Company has added facilities which shall make it more competent than others competing in market. Forthcoming projects in various sectors viz. steel, oil & shore and power etc. are such that your company shall have more chances to take advantage of these projects, due to its expertise in that field. The slow cash flow and sluggish domestic market is a great threat as it may increase the overheads. Growing environmental concerns regarding pollution emitted by foundries may bring legal complication.

The existing units are being modernized/expanded and some new entrants have also come up in different parts of the country based on modern, cost effective, state of the- art technologies. In the last few years, the rapid and stable growth of the demand side has also prompted domestic entrebrneurs to set up fresh projects in different states of the country. As the axis of growth is gradually shifting from the developed economies to developing economies in Asia, due to high consumption pattern and thereby inducing better investment, the foundry market is expected to grow strongly in the near future.

Some of the key factors that define the environment in which the Company must find, grow and protect its profits are summarised below:

Customer Bargaining Power

A key question is how easy is it for customers to drive the price down in the industry? This is driven by a number of factors, such as the number of buyers, the importance of any one customer to the business, the total cost of switching, and the ability to switch to substitute products, and so on.

Consolidation of casting-consuming OEMs is perhaps the single biggest development of the past decade which gives casting buyers the upper hand. It is estimated that more than 50% of all castings, by value, are consumed by less than 200 companies and their major tier suppliers, globally. Hence, generally customers of castings have very high bargaining power overall in the industry.

However, with its superior manufacturing capabilities coupled with lower operational costs, PTC also has significant advantages in the current market scenario.

Supplier Bargaining Power  

As raw materials, consumables, and specialized equipment are key requirements for the metal casting industry, the suppliers also have significant bargaining power. In addition, the bargaining power is a influenced by availability, unique performance attributes, and service capabilities, to name a few factors. Suppliers of commodity metals, scrap, alloys, and the like, price and supply on a global basis. Often other sectors drive the pricing of these materials, as foundry consumption is small in comparison. Hence, it seems fair to say that suppliers to foundries have high bargaining power overall.

Again, PTC has significantly mitigated this threat by introducing recycling measures for direct and indirect materials and replacing traditional sand casting methods with Replicast® and Rapid Cast™ technologies.

Intensity of Competition

Some metal casters do have such a well-developed, differentiated, and protectable position that they have few competitors. However, in slow growth markets, there has been shut down of a number of foundries and consolidation of players as well. This can, and has, led to less competitive rivalry. On the other hand, the consolidation of the customer base, coupled with a proliferation of low cost countries has kept competitive rivalry high for foundries.

Again, PTC has maintained its competitive edge by investing in research and the latest and most advanced technologies which differentiate PTC from its competition.

Substitute Products

There is, and always will be substitution of one material for another, for example plastics instead of metal, for some components. Likewise, there will always be the rivalry offered between metal choices. Alternatives to making a metal component via machining and weldments, via forging, via powdered metals, etc. are part of the strategic discussion for metal casters. Fortunately, PTC has been at the forefront of adopting new technologies and processes, while most metal casters take time to pro-actively adjust. Additionally ,there are ample opportunities that are being pursued by PTC to counter substitution, such as converting forgings to castings through the newly developed forge CAST™ .

RISKS AND CONCERNS

PTC employs a vigilant approach to continuously identify, analyse and monitor the risks associated with its business. The procedure for identification, reduction and mitigation of risks has been institutionalized by Company. The Company's structured risk management policies help in swift response and necessary action in order to mitigate the risks. The management aims to provide confidence to the stakeholders that the Company's risks are known and well managed.

Risk Management comprises three key components which are Risk Identification, Risk Assessment and Mitigation & Risk Monitoring and Assurance. Your Company has identified the following aspects as the major risks for its operated

Strategic Risks

 These include market risks like uncertainties in the global economic scenario and declining demand in domestic sectors like power and infrastructure. Prolonged unfavourable conditions in the market result in delay or cancellation of projects. The Company's diverse portfolio has helped it to shift focus to other industries, customers and geographies. Hence, while a decline was witnessed in the domestic market, the Company has been able to offset this by sustaining profitability in the export makte  

Operational Risks

The rapid evolution of technologies and the natural ageing of existing facilities pose the risk of the current production facilities becoming obsolete and uneconomic. There is also a saturation on the capacity to expand in the current unit, especially in Lucknow. Hence, the Company has deployed the latest best-in-class technologies like Replicast® and RapidCast™ and is constructing of the new state-of the- art "Advanced Manufacturing & Technology Centre" to enhance the capacity and capability of its operations. The operational efficiencies that shall be built into the new plant shall also substantially reduce the operating costs while improving the safety of operating conditions. A number of processes, for which the company was dependent on outside vendors, are also being developed in house which shall lead to further reduction in cost and improvement in operations.

The Company also has a history of good relationships with dealers, excellent labour relations and an efficient and devoted staff due to which the level of risk relating operational instabilities are also minimized  

Financial Risk

 Financial risks include, amongst others, exposure to movements in interest rates and foreign exchange rates. The Company is exposed to fluctuating dollar and euro prices. While a majority of the Company's purchases are local, the Company is exposed to currency risk where the realisation of sales proceeds is in local currencies. During the year, the extreme volatility in the exchange rates led to an adverse effect on the profitability of the Company.  The Company has mitigated risks on its foreign currency borrowings by hedging them partially. However, at any point of time, PTC's exports are higher than its foreign currency borrowings there by giving it a natural hedge. In view of the Company's constant expansion activities, it needs to brserve a financial framework in order to maintain an appropriate level of liquidity and financial capacity. Last year, PTC raised Rupees forty crores during the year in the form of equity in order to partially fund the expansion of its manufacturing facilities

l· Compliance Risk

Due to the recent events in the corporate wor subject of corporate governance has gained significant importance. The change in the regulatory environment in the country has resulted in increased regulatory scrutiny that raises minimum standards required for corporate entities. This requires the alignment of corporate performance objectives, whilst ensuring compliance with regulatory requirements. PTC's management is committed to the establishment of systems, processes and principles to ensure that the Company is governed in the best interests of its members. Hence, it will:

-make efforts to understand the changing regulatory requirements so as to incorporate and integrate these in its business strategy, and  

-drive business performance through the convergence of risk, compliance processes and control mechanisms to ensure continued operational efficiency and effectiveness.

The risk mitigation plans are reviewed regularly by the Audit Committee of the Company. The Company's contingent liabilities, are disclosed in Note 2.30 Contingent Liabilities of Notes to Accounts

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has in place an adequate system of internal controls, with documented procedures covering major corporate functions. Systems of Internal Controls are designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable laws and regulations. Adequate internal control measures are in the form of various policies and procedures issued by the Management covering critical and important activities of Manufacturing Operations, Environment and Safety etc. These policies & procedures are reviewed and updated from time to time and compliance is monitored.

The Company continues its efforts to align all its processes and controls with global best practices. The effectiveness of internal controls is reviewed through the internal audit process. The focus of these reviews is as follows:

Identify weaknesses and areas of improvement

Compliance with defined policies and processes

Safeguarding of tangible and intangible assets

Management of business and operational risks

Compliance with applicable statutes

Compliance with the Code of Conduct

The Audit Committee of the Board oversees the adequacy of the internal control through regular reviews of the audit findings and monitoring implementations of internal audit recommendation

The Company witnessed a decline in revenue from operations by 15% to Rs. 100.77 crores from Rs. 119.06 crores in the brvious year. This is primarily due to a general economic slowdown and the Company's concentration on trials and research for its new facility.

The EBITDA in number terms declined by Rs. 2.21 crores to Rs. 19.06 crores from Rs. 21.27 crores in the brvious year but as a percentage of revenue rose to 19% from 18% last year.

The failure of the power sector to regain its strength has led to decline in revenues from Plant 2, leading to a decline in net domestic sales by approximately 14%. Export sales (including incentives) also fell by 16% to Rs. 78.45 crores as against Rs. 92.96 crores during the brvious year as the environment in Europe remained subdued.

Consumption of ferrous and non ferrous alloys increased while consumption of all other materials declined. This is due to a shift in the product mix towards higher alloy castings and also an overall decline in sales in the domestic market, which includes the alloy and non-alloy products. Overall, the consumption has declined by 12% due to low volumes, drop in metal prices and overall efficiencies.

HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS

At the core of PTC's Human Resource Management (HRM) policy is the underlying belief that employees are our primary source of competitiveness. Hence the focus is on enriching the quality of life of its employees, developing their potential and maximising their productivity. The unique attributes of our policy are climate of openness, equity, fairness and respect for the individual, freedom to experiment, mutual trust, and teamwork. PTC Industries is an equal opportunity employer and strives to attract the best available talent and ensure diversity in its workforce. Diversity and Inclusion are important aspects of sustainable business growth and this is referred to as 'winning balance'. Over the last three years, the Company has focused on this aspect through creation of better opportunities and environment for its manpower and greater leadership involvement and engagement.

The development and growth of employees has always been the focal point of human resource functions at PTC which is imbibed in the culture of care for people. The Company has held the view that people are its greatest asset. It is, therefore, endeavouring to adopt the best standards for employee well-being and quality of life. This year, there has also been a special emphasis on working towards the well-being of our own workers as well as those of our suppliers.

During the year, the Company continued its HR policy improvements, particularly on rules related to their health and safety. PTC has continued to support employee welfare with the continuation of the 'Family Support' scheme for the employees of Lucknow Plant 1 and their families to provide support in case of medical emergencies.

Several technical and other soft skills training programs were organised across different levels. Schemes have also been put in place for rewarding employees at all levels, based on the Company's overall performance, as measured by several br-set performance parameters.

These schemes have been extremely helpful in uniting the interest of the Company and its employees. The work environment gives employees the freedom to learn and improve their proficiency. The Company believes in talent acquisition and retention, to augment its plan of making its brsence more prominent in global markets. The Company has developed a HRD Plan with the parameters to achieve excellent results. The steps have been taken to create a sense of belonging in the minds of the employees, which in turn gives maximum contribution per employee while gearing them to face business challenges and achieve the desired results. This intellectual resource is integral to the Company's ongoing operations and enables it to deliver superior performance year after year

The efforts continued on capability building of employees at all levels in order to build organisational capability in functional and project management areas, fulfill the technical skill requirement arising out of advanced mechanisation and brparing bench strength of skilled manpower for critical positions in existing operations as well as for foreseen future requirements.

Being a global and knowledge-based Company, in a rapidly changing industrial scenario, PTC believes in the need to develop and foster its human resources. The management believes that the business cannot grow until and unless the full potential of employees is utilized effectively in its operations.

PTC has always targeted zero injuries and incidents. Safety is a critical aspect for the Company in delivering responsible products, and hence, it conducts its operations considering safety of its employees, suppliers and vendors, as well as the communities in which it operates. A fully equipped and well-qualified EHS structure is in place providing necessary governance, documentation and EHS assutance.

PTC would not have been where it is today without its people and their commitment, innovation, engagement, strive for excellence and a strong sense of belongingness to the organisation. A strong industrial harmony of over five decades bears testimony to strong people practices of the Company.

Industrial relations during the year have been cordial and are expected to continue in the future. The Company has excellent co-operation and support from the entire hierarchy of well-trained and experienced personnel. The total strength of employees on the roll at the end of the year was 680

STATUTORY COMPLIANCE

The Managing Director makes a declaration at each Board Meeting regarding the compliance with provisions of various statutes after obtaining confirmation from all the units of the Company. The Company Secretary ensures compliance with the SEBI regulations and provisions of the Listing Agreement. The Executive Directors and Company Secretary as the Compliance Officer ensure compliance with the guidelines for brvention of insider trading.