Walchandnagar Industries Ltd. (WIL)

Corporate Presentation

Apurva SharmaStrategy Implementation

2012

Contents

WIL- An Overview

Key Highlights

Manufacturing Capabilities

Annexure - Select Turnkey EPC Projects Completed- Select Components Manufactured by SPD

Pedigree of Walchand Group

One of the renowned industrialist of pre-independence India, who promoted and established

multiple business ventures in various sectors

• Ranging from automobile manufacturing, civil engineering, construction of dams, bridges,

barrages and hume pipes, aircraft manufacturing, ship building, to maritime shipping

SETH WALCHAND HIRACHAND(1882 - 1953)

Founder

Founder…Hindustan Aircraft Company…Pioneer in Aircraft Manufacturing

Founder…Hindustan Shipyard Vizag…Pioneer in Shipbuilding Industry

Founder…Walchandnagar IndustriesLtd (WIL)…One of India’s leading

heavy engineering and projectexecution company

Founder… Scindia Steam NavigationCompany…Pioneer in Maritime Shipping

Established many new venturesIn various core sectors likeAutomobile Civil Engineering

Construction of Dams, Bridges,Barrages & Hume Pipes`

“Walchand Hirachand was a dreamer, a visionary, a great builder, a great leader of industry. Above all, he was apatriot, and in his own way, he was an inspiring leader of our struggle for freedom. I salute his memory.”

“When we celebrate the life of an entrepreneur like Walchand Hirachand, we must draw the correct lessons fromhis life. The lesson I draw is that the ultimate spur to growth and development is individual creativity andenterprise”

Dr.Manmohan Singh, Prime Minister Of India

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WIL…Building Engineering Excellence For Over 100 Years

A Snapshot

WIL is one of India’s leading heavy engineering and project

execution company with a strong history

Diversification across products, sectors and geographies through its

business offerings

Manufacturing and EPC- Focus on Energy, Mining & Minerals,

Cement, Sugar, Oil & Gas, etc.

Special Products- Focus on Defense, Nuclear Power and

Aerospace

Engineering- Walchand Technology Group (WTG)

Other Businesses- Foundry, Precision Instrumentation,Gears (for variety of applications)

Continued strong engineering & project management capabilities,

backed by its technological strength and an able work force

Shareholding Pattern

Key Institutional ShareholdersOther Public

37.5% Name % Holding

Promoter &Promoter Group

Evolution over the Years…

Poised for strong growth in the years to come

Professionally managed with growth orientedcorporate structure

Evolved into a multi divisional, multi locationcompany

Became among the first few Indian companies tomanufacture critical components for a nuclearpower project managed by BARC and to be associatedwith ISRO for India’s space research programme

Commenced the heavy engineering & machinerymanufacturing business in early 1960s

Initial business of an integrated sugar manufacturingat Walchandnagar (near Pune)

Changed its name to Walchandnagar Industries Ltd. in1944

55% LIC of India

Oriental InsuranceIns titutional Company Ltd.

7.5%

5.55

Incorporated in 1908 under the name Marshland and1.54 Price Company Ltd.

Founded by the visionary industrialist, Seth WalchandHirachand

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Manufacturing & EPC Business

Sugar & Energy Mining & Bulk

Design, engineering,procurement and construction of mineralprocessing projects andbulk material handling equipments

Projects include calcinationplants and machinery for extraction of metals,mine backfill projects etc.

MOU with P&H, Kawasaki,Earth Technica for LDC,FDC, Crusher respectively

Cement

Design, manufacturingand supply of completecement projects up to capacity of 1 MTPA onturnkey basis

Executed over 70cement plant projects atvarious domestic andinternational locations

Tie up with ATEC Austriato enable in bidding forlarger size projects andin new geographies

Range of products include ball mills, slide shoe mills, kilns etc

Tie up with UBE Japan for VRM manufacturing

Oil & Gas

Providing products andservices for onshoreand offshore oil and gasprojects

Manufacturing of critical components for offshore / onshore exploration & production, refineries, petrochemical plant & other onshore facilities

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Manufacturing ofindustrial Boilers & Steam generators. Technology from Foster Wheeler USA

Power plant projects on a turnkey basis. Executed captive as well as independent power projects. Currently has capacity to execute power projects up to 100 MW

India’s first Sugar machinery manufacturer & exporter. Capabilities up to 26000 TCD with Cogen.

Best in class Centrifugal Mills & Diffuser Technology

Project execution capabilities includes execution of onshore oil & gas processing facilities, refineries, petrochemical companies & other process plants on EPC or pure construction basis

Special Products Business

Defence

Associated with the Ministry ofDefence, for more than 35 yrs

Recently supplied critical coreequipment for “INS Arihant” India’s 1st ever indigenously built nuclear submarine

Major Equipments supplied fordefense applications includenaval gear boxes, combustionchambers, missile casings,air booster casing, static andmobile launchers etc

Nuclear

Accredited with pre-qualificationsfrom the BARC and NPCIL forsupplying nuclear components

Undertakes site installation andintegration activities of nuclearpower reactors

Supplying major core equipmentfor various nuclear power plantsfor both 235 MW and 500 MWprojects

MOU with Atomenergomashand Atomstroyexport Russia

Aerospace/ Missile

Associated with ISRO since itsinception, for manufacturingcritical components for spaceresearch projects

Company has manufactured andsupplied booster motor casingsand nozzles for the satellitelaunch vehicles, including theASLV, PSLV and now GSLV

Regularly working with exotic materials such as maraging steel, cladded steel, inconel, etc.

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Supplied certain critical components for ‘ChandrayaanMission’, India’s maiden moon mission

Major critical components for India’s ICBM program “Agni V”

Engineering and Other Businesses

Walchand Technology Group(WTG)

The group focuses on theresearch & development ofengineering applications for thepotential business opportunitiesbeing pursued by the Company

Employs technology professionalsqualified engineers in severaldisciplines of engineering

Provides comprehensive Designand Engineering servicesseveral fields such as NuclearPower, Oil & Gas, Aerospace, Thermal,Non-conventional Energy etc.

Foundry

Operates a grey and ductile ironfoundry with capability to handlehighly intricate castings forspecialized applications

Key business focus on wind mill,industrial machinery, automotiveand oil & gas sectors

Range of products includecasting in grey cast & ductileiron, castings for manufacture ofautomotive dies etc.

Ability to handle single pieceweight of 13 tonnes of grey castiron and 8 tonnes of ductile iron

PrecisionInstruments

Manufacturer of precisioninstruments such as pressuregauges, temperature gauges,sector mechanisms etc.

Key industry focus isautomotive, wide range ofprocess industry, power projectsetc.

Used in variety of industrialapplications such as CNG kits,refineries, air-conditioning,refrigeration equipment etc

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Office and Plant Locations

Details of offices and plant locations

Registered Office- MumbaiOil and Gas Division- Mumbai

Regional Offices- Delhi, Kolkata, Hyderabad and Chennai

Precision Instruments Division- Dharwad

Foundry- Satara

Marketing & Projects Office- PuneWalchand Technology Group- Pune

Heavy Engineering Manufacturing Plant- Walchandnagar

Delhi

WestBengal

Maharashtra

AndhraPradesh

Karnataka

Tamil Nadu

WIL’s manufacturing facilities are based out of Mahrashtra and Karnataka... Presence in key cities through its

regional and marketing offices

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New shore based manufacturing facility planned at Dahej on the Western coast of India

PLANNED LAYOUT

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Select Business Achievements of WIL

9 Independent power project based on municipal solid waste in India

9 Amongst the first few exporters of a complete cement plant

9 Indigenously built sugar project in India way back in 1960s

9 Amongst the first few exporters of sugar machinery and complete turnkey project from India

Manufacturer of …

9 Critical components for nuclear reactor

9 Main gear boxes for Indian built Naval frigates

9 Components for satellite launch vehicle for ISRO

9 Critical components for 235MW and 500 MW nuclear power project

9 One of the largest optical telescope in India

9 Major critical components for India’s first mission to moon “CHANDRAYAAN”

9 Critical core components for “INS ARIHANT” India’s first nuclear submarine

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9 Largest number of sugar plants projects completed in India & Abroad.

9 Major critical components for ICBM “Agni V”

Recognition and Accreditations

Technology Absorption Award From Govt. of India

Indian Nuclear Society “ Industrial Excellence Award” for the year 2006

Best Performance In Exports on Number of Occasions

Excellent Employee Relation Award from Govt. of Maharashtra

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Note : WIL follows Sept. Year end

Economic Overview• The Financial Year October 2010 - September 2011, (Year 2010-11), started with the potential of a good

economic recovery after the global slowdown of 2008 and 2009• But, rising inflation in the country has become a big point of worry for the Government and the Finance Ministry

& the RBI decided to increase interest rates substantially to stem the impact of inflation.• This rise in interest rates has resulted in a complete slowdown in credit off-take for infrastructure projects, as

these projects struggle to show viability to their bankers.

Growth in Order Book (INR mn) over the years…

CAGR (FY-07 – 11) : @23%

Industry review• As WIL is in the Capital Goods space, this

slowdown in infrastructure projects has adirect impact on the new order booking for theCompany.

• Cement business continued to be lean ascustomers were not able to arrange for financefor their projects.

• The business in Aerospace, Defence andNuclear Power segment also got impacted; dueto delay in clearances and long manufacturingcycles of these products

Financial year 2010-11 in retrospective

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Total Income (INR mn)

CAGR (FY-07 – 11) : @11%

Highest revenue of Rs 964 crores with exports ofRs 137 crores in FY 10-11

Growing demand pull from customers, especiallyin the sugar, boiler and power project business.

The strong sales performance in the year 2010–2011 has given the Company reasons to havefavorable outlook for the next year:

Strong Order book as on September 30,2011, which stands at Rs. 2205 Crores.

Strong business outlook in the Aerospace,Defence and Nuclear power segment. Thisbusiness lends long term sustainability to therevenue model of the Company.

Since Dollar is becoming strong, value ofRupee realization from exports will beremunerative and Company will be givingthrust for export market.

Continued focus & efforts to build on thecurrent strong order book position of theCompany.

Note : WIL follows Sept. Year end

Strong financial performance over the years

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Corporate Social Responsibility (CSR) Practices by WIL

CSR activities practiced by WIL way back since 1934…

The Walchandnagar Township Named after the founder, Walchandnagar is a well designed township having all

civic amenities Spread over 157 acres of land which includes 50 acres of factory area A cosmopolitan set-up with a population of approx. 15,000 Well established infrastructure

Runs primary schools in each Agricultural Estate and a high schoolestablished in Walchandnagar

A 70 bedded modern hospital Sports facilities Senior citizen park, children play park Banks/ATM centers etc.

WIL has initiated, implemented and actively practices many welfare activities for the society

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Contents

WIL- An Overview

Key Highlights

Manufacturing Capabilities

Annexure - Select Turnkey EPC Projects Completed- Select Components Manufactured by SPD

WIL- Key Highlights

1

An end to end turnkey solutionsprovider…ability to provide

engineering, manufacturing andconstruction services

5 2

Successful track record inBenefits of experienced Indian nuclear, defense and

management team aerospace…area witnessinghuge traction

4 3

Execution strength & Strong order book…capabilities backed by increased visibility andmarquee partnerships momentum for the future

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1. An End to End Turnkey Solutions Provider

To Manufacturing…

Offers state of the artmanufacturing facilities Ability to manufactures diverse

range of products Industrial boilers, materialhandling equipments, critical andcore equipment for aerospace,defence and nuclear powerbusiness, core equipment forcement plant, gear boxes etc.

Total manpower of 1,866managerial and skilled workers

From Design & Engineering…

Offers complete in-house basic,manufacturing & detailengineering services

Ability to provide process systemdesign, plant layout design,analytical studies and systemintegration

Over 370 qualified andexperienced engineers

…To Execution

Offer turnkey projects forindependent power projects &cement plants sugar plants boilersand steam generating plants

EPC projects for mining, bulkmaterial handling, mineralprocessing, oil & gas sector

Significant number ofturnkey/semi turnkey/EPCprojects completed

WIL’s presence in diversified yet synergetic businesses makes it a successful integrated turn key solutions provider

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2. Successful Track Record in Indian Defense, Nuclear & Aerospace

Defense Associated with the Ministry of Defense (GoI) for more than 35 years

Major equipments include Naval gear boxes, combustion chambers, missile casings, air booster casing static

and mobile launchers, Karthik bridges etc.

Supplied critical equipment for “INS Arihant” India’s 1st ever indigenously built nuclear submarine

Nuclear

Associated with the Department of Atomic Energy (GoI), NPCIL , BARC for over four decades now

Supplies core equipment such as Calandria, End shield, Moderator heat exchangers etc. for 700 MW,

500 MW, 235 MW nuclear power plant

Pioneer in the private sector to manufacture moderator heat exchangers, dump tanks and fuel magazines

Recently awarded a EPC piping contract for a 700 MW power project by NPCIL

Aerospace

Associated with ISRO for over three decades now

Supplied certain critical components for ISRO’s Polar Satellite Launch Vehicle and the ‘2008 Chandrayaan

Mission’, India’s maiden moon mission

Indian defense, nuclear & aerospace is witnessing huge traction…WIL plans to strengthen its position in

these high potential areas

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Major critical components for India’s Inter- Continental Ballistic Missile (ICBM) program “Agni V”

3. Strong Order Book…Visibility and Momentum for the Future

Growth in Order Book (INR mn) over the years…

14,632

12,195

10,000 9,687

4,500

Sept 11- Order Book Break Up

OtherBusinesses

10%

SPD27%

Mfg. & EPC63%

Sep-07 Sep-08 Sep-09 Sep-10 Sep-11

WIL’s execution strength and capabilities have resulted in continued growth in order book

Consistency in providing quality output…validated by zero cancellations of orders in the last two years

Focus on strengthening its ability to bid for larger sized power and cement projects

Focus on garnering larger market share in defense, nuclear and aerospace segments…potential high growth areas

WIL’s strong order book with an average tenure of 18-20 months...an assurance for future revenue growth

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CAGR (FY-07 – 11) : @23%

4. Strong Execution Capabilities Backed by Marquee Partnerships

Select Technology Partnerships...Engineering Capabilities

Ability to provide designing, detail engineering to system integration

…variety of design softwares available

Over 370 experienced engineers and technical staff

Manufacturing CapabilitiesFully equipped modern manufacturing facilities at Walchandnagar…ability to

manufacture diverse range of products, handle variety of raw material andcapability in precision welding, fabrication and machining equipments forspecial products and cement businesses

Boilers, material handling equipments, gear boxes, core & critical

Project Management Capabilities

Project manager for every project

Well versed in modern project management tools

Large support base of prequalified partners

Construction Management Capabilities

Dedicated separate in-house construction management team… qualified

engineers in the field of mechanical, electrical, instrumentation

Completed large number of projects on turnkey/ semi turn key / EPC basis

A-Tec Production Services GmBH, UBE Japan

Products and services relating to the cementindustry

P&H MinePro Services, Kawasaki, Earthtechnica

Technical assistance in mining and bulkcrushing related activities

Foster Wheeler North America Corporation

Technology relating to manufacture of high pressureTravel grate steam boilers

Atomenergomash and Atomstroyexport Russia

Technical assistance for manufacturing of Nuclear Power equipments.

WIL leverages its inhouse core skill sets and competencies, supported by marquee global partnerships, to address

a wider section of industry and end applications

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5. Key Management Team - Strengths and Accomplishments

Holds M.S. in Operations research & Industrial Engineering from U.S.A

Chakor L. Doshi Renders valuable advise to the company in the matters of strategic planning, organisation building, new

Chairmanbusiness initiatives etc.

Holds the position of chairman since 1998 before that he has served as MD of the company for 10 years. Holds board position in other Indian public limited companies and private limited companies

Holds B.A (Economics) from University of Michigan, USA and M.B.A. from INSEAD Institute Paris

Chirag C. Doshi Managing Director of WIL since November 25,2007.Managing Director

Extensively worked on various growth initiatives, business development and exploring new business ventures for WIL

Holds a bachelor of Engineering (Mechanical)J. L. Deshmukh

Joined WIL in 2004 as executive director and currently serves as MD & CEO of the company.Managing Director

& CEO Worked for more than 30 years at Cummins India Ltd, with long stint on various board positions including

Managing Director

Alumnus of BITS Pilani in Instrumentation EngineeringGK Pillai Illustrious career in the private and public sectors

COO Last assignment was as CMD of Heavy Engineering Corporation where he anchored turnaround of the PSU

to a profitable venture

The Corporate management is supported by a strong team involving professionals with long standing

experience in several fields

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Strategy Going forward…

Leverage core strength to address wide cross section of industry and endapplication

Focus on attainingprominence in EPC

Deeper engagement inNuclear Power Business

Building EngineeringExcellence

Continuous up gradation in skill sets in technology, project management andpeople capability

Move up the value chain in offering:

— High pressure boilers and large turnkey plants

— Large capacity cement plants

WIL is already a recognized supplier of core nuclear power equipment

Nuclear power segment has significant potential growth opportunities

— India is expected to increase nuclear energy collaboration with US and othercountries

Leverage the present position to strengthen future growth

Establishment of WTG, a dedicated engineering centre with adequate qualified engineers in diverse applications

Focus on research in engineering field for existing and potential business areas beingpursued by the company

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Contents

WIL- An Overview

Key Highlights

Manufacturing Capabilities

Annexure - Select Turnkey EPC Projects Completed- Select Components Manufactured by SPD

Walchandnagar Plant

Key Highlights Area under crane: 56,000 sq mtr

Fully equipped with modern manufacturing facilities- CNC horizontal and vertical boring machines with multi axis control, lathes,plate bending machine, milling machines, gear cutting & grinding machines etc

Manufacturing of boiler drum 130mm thick with ASME material SA302 & WIL Associates having manufacturing facilities for Membranepanel and carbon steel/alloy steel tube bending, up to 150 MW with super heater temperature up to 5400C

Sophisticated Automatic Welding Systems capable of precision welding of exotic materials

Dust Free Halls for critical assembly and precision welding related to Aerospace, Defence and Nuclear equipment Large sized Furnaces with Data Acquisition Systems Optical tooling & measuring instruments for precision measurements Crane capacity up to 150 tonnes

Birds eye view of Walchandnagar Plant

Selectfacilities

Large capacity turning facility Heavy machine shop area

Heavy equipment fabrication area Heavy duty vertical boring machine

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Fabrication of components complying to various codes of conformance such as A.S.M.E, Sec.VIII Div.I, A.S.M.E, Sec.VIII Div. II, A.S.M.E. Sec. III NB, A.S.M.E. Sec.III NC, A.S.M.E Sec.III ND, A.S.M.E. Sec.III NF, I.B.R. Act 1948, ISO, DIN, Customer Codes etc.

Welding procedures and welders are qualified under the various third party inspection surveillances such as I.B.R., N.P.C.I.L, V.S.S.C, E.I.L, L.R.I.S, A.B.S., P.D.I.L, Bax Council, T.E.I.L, B.V., DNV, D.R.DL, Holtec etc.

Complying with various codesComplying with various codes

Special Products Division

Cladded Steel (Stainless Steel, Titanium Cladding), Alloy Steel (Including varieties of Cr, Mo Steels), Stainless Steels ( Austinetic, Martensitic & Super Duplex Types), High Strength Maraging Steel &Vanadium Steel, Inconel, Monel & Incoloy, Titanium Alloys, Aluminum Alloys, Cobalt Alloy, etc

Critical materials handled

Manufacturing Capabilities

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• ASME Certificate for NB, R, S, PP & U stamps

Certifications

• For over a decade WIL holds ISO certification• QMS has been specially designed to maintain and

improve organization’s quality standards. • Adherence to QMS has helped WIL to improve

business performance and take it a step towards becoming the World Class Organization.

• Preparations are on for ISO 14000 & OHSAS Certifications.

ISO 9001: 2008 Certified entity

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• WIL is committed to have healthy, safe andenvironment friendly workplace for all itsstakeholders

• There is constant promotion & education ofhealth, safety & environment practices amongststakeholders and their participation isencouraged

• By Continually improving the health, safety &environment management system, WIL wants toachieve its aim of zero accidents, good health &pollution free environment

• Preparations are on for ISO 14000 & OHSASCertifications.

Health, Safety and Environment policy

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Contents

WIL- An Overview

Key Highlights

Manufacturing Capabilities

Annexure - Select Turnkey EPC Projects Completed- Select Components Manufactured by SPD

Select Turnkey EPC Projects completed by WIL (1/2)

Kager Sugar Ltd Tanzania- Sugar Plant Meghalaya Cements- Cement Plant

Vedanta Group- Zinc Roaster Plant Gem Sugars- 5000 TPD Cane Sugar Plant

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Select Turnkey EPC Projects completed by WIL (2/2)

15 MW Cogen Plant 6.6 MW Municipal Waste Power Plant

Waste Heat Recovery Boilers 25 MW Biomass Power Plant

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Select Equipments Manufactured by Special Products Division

Gearbox for Corvettes Gearbox for LST (L)

Nuclear Fabrication- End Shield Calandria for 500MW projects

(1/2)

Core Support Structure for500MW PFBR

Intermediate Heat Exchanger

32

Select Equipments Manufactured by Special Products Division

Manufacture of space launch vehicle support material by WIL..

SLV-3

(2/2)

PSLV-C2: End segmentand nozzle

manufactured

33

Thank You !

Disclaimer

This presentation has been prepared by Walchandnagar Industries Limited (the “Company”) solely for providing informationabout the company. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner.

This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in Indiaor by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. Thispresentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability inrespect of the contents of, or any omission from, this presentation is expressly excluded

This presentation has been prepared by the Company based on information and data which the Company considers reliable.However, no representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness,accuracy, completeness or correctness of such information or opinions contained herein. Neither the company nor any of itsrespective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any losshowsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

The information contained in this presentation is only current as of its date. Certain statements made in this presentation maynot be based on historical information or facts and may be “forward-looking statements”, including those relating to theCompany’s general business plans and strategy, its future financial condition and growth prospects, and future developments inits industry and its competitive and regulatory environment. Actual results may differ from these forward-looking statements dueto a number of factors, including future changes or developments in the Company’s business, its competitive environment,information technology and political, economic, legal and social conditions in India and worldwide. The Company undertakes noobligation to update forward looking statements to reflect events or circumstances after the date thereof.

This presentation and any information presented herein are not intended to be and shall not be construed as an offer to sell orsolicitation of or an offer to buy the Company’s equity shares or any of its other securities and shall not constitute an offer,solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notifyany person of such revision or changes.