Carborundum Universal : 70th Annual Report 2023 – 2024

GRIT.

GLORY.

GROWTH.

Carborundum Universal Limited

Annual Report 2023-24

Contents

Corporate overview

02 Corporate snapshot

06 FY 24 awards and recognitions

1. 70 splendid years of grit, glory and growth

1. CUMI leaders in the last seven decades

1. Chairperson's messages over the decades

1. Members of the Board over the years

1. CUMI in the news over the years

1. CUMI's global footprint

1. CUMI's India presence

1. What CUMI does

1. CUMI's solutions matrix

1. Chairman's message

1. Performance highlights
2. How CUMI has grown over the years

46 The global materials science sector is at the cusp of a new growth wave

1. Business segments

1. ESG and CUMI
2. Product innovations at CUMI

1. Research and development at CUMI
2. Talent management at CUMI

1. Corporate Social Responsibility (CSR) at CUMI

1. Road ahead for CUMI

1. Board of Directors

1. CUMI's senior leadership team

1. Financial highlights

1. Corporate information

Our growing numbers

46,282

H Million, consolidated revenue in FY 24

70	4,613
Years of global		H Million, PAT
	in FY 24
experience
40+
Countries, where
our products
are sold

Management reports

97 Director's Report

170 Corporate Governance Report

Financial statements

198 Independent Auditor' Report on Consolidatded Financial Statements

206 Consolidatded Financial Statements

291 Independent Auditor' Report on Standalone Financial Statements

300 Standalone Financial Statements

Online Annual report

www.cumi-murugappa.com

Forward-looking statement

In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically, 'projects', 'intends', 'plans', 'believes' and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we make, contain forward-looking statements that set out anticipated results based on the management's plans and assumptions. We have tried wherever possible to identify such statements by using words such as 'anticipates', 'estimates', 'expects' believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Grit.

Glory.

Growth.

At Carborundum Universal Limited, three words have encapsulated the enduring journey across 70 years.

Grit. Drawing reference to the sustained perseverance and investment across market cycles.

Glory. Represents the achievement and recognition from the journey so far.

Growth. Global opportunities in the materials science sector that provides an impetus for growth.

The company is optimistic that the interplay of these attributes across a widening global footprint will enhance even bigger value for all the company's stakeholders in a sustainable way.

Corporate snapshot

Carborundum Universal Limited.

One of the most respectedknowledge- driven materials science engineering companies.

An international entity with a manufacturing presence in 5 countries with products sold across 40+ countries.

CUMI power tools are used in metal working, construction, wood working and interior decoration. The Company's strong brand image and well established marketing network provide good synergies for this product line with abrasives.

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Corporate overview

Management Reports

Financial statements

A coming together of four businesses that lie at the core of sectors across nations.

A company driven by global scale, translating into enhanced economies, competitiveness and the ability to design, co-create and deliver products and solutions.

A company driven by a global mindset comprising employees from 12 nationalities across 6 continents.

Making the Company a global citizen.

Annual Report 2023-24 I 3

Purpose

Making a material difference

Vision

Mission

We will be a globally admired company driving innovations in materials science towards sustained value creation for people and our planet.

We design, co-create and deliver sustainable solutions to make a significant positive difference to all our stakeholders.

The Spirit of the Murugappa Group

These five lights guide us as we navigate through professional and personal decisions.

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Company overview

Corporate overview

Management Reports

Financial statements

CUMI, a part of the 124-year-old Murugappa Group, began as an abrasives company in 1954. Through value chain integration, CUMI has evolved into a mines-to-market company with operations encompassing mining, power generation, fusion, manufacturing, marketing and distribution.

With a legacy of over seven decades, CUMI has cultivated and expanded its businesses

across various geographies and cultures. Operating as a 'glocal' player, CUMI maintains a global vision while preserving local ethos, reflecting a commitment to fostering environments and opportunities that allow local regions to thrive. This vision and commitment have enabled CUMI to build enduring relationships and networks, establishing it as a leading materials science engineering company.

CUMI's extensive network provides employees with opportunities to experiment, learn, innovate, and contribute to business and communities. The Company is dedicated to being a world-class solutions provider in abrasives, electrominerals, industrial ceramics, super refractories, and energy storage materials. Central to CUMI's mission is the commitment to 'Making a material difference.'

Among the largest global producers of silicon carbide grains.

Leading market player in abrasives in India and Russia.

Major global producer of a full range of electrominerals.

Second-largestglobal producer of metallised cylinders.

Credit rating

CUMI was rated at CRISIL AA+/ Stable

• CRISIL A1+ for bank facilities and debt instruments. The ratings reflected the healthy business risk profile of the Company supported by strong market positions in key products, revenue diversity and integrated operations.

Listing

Listed on the Bombay Stock Exchange (BSE) Limited and National Stock Exchange (NSE) Limited, CUMI was valued on the NSE at H241,313 Million and on the BSE at H240,970.8 Million as of 31st March 2024. As of 31st March 2024, the promoters held 41.23% of the Company's equity capital.

Employees

As of 31st March 2024, the Company employed 10,620 individuals comprising permanent and contractual staff.

CUMI is committed to enhancing its R&D capabilities, reinforcing its position as a highly technological materials science company with a robust team of technical experts. The R&D department comprises 103 technical professionals, including

26 PhDs with an average of 11 years of experience, 36 post-graduates holders with an average of 14 years of experience, and 41 graduates with an average of 15 years of experience. Our talented team has significantly contributed to the field, collectively authoring or co-authoring approximately 156 patents and 403 papers in their careers. This wealth of expertise and innovation underscores CUMI's dedication to leading advancements in materials science.

Certifications

ISO 9001:2015		ISO/IEC
	45001:2018
ISO 14001:2015		ISO 3834-2
AS9000:		oSa Certification
Composites for		- Rhodius, CUMI
Aerospace
	Standalone
		- Maraimalai
TPM (Total
	Nagar and
Productive
	Uttrakhand Plant
Maintenance)
certified by JIPM

IATF 16949:2016 - International		Ecovadis:		Ecovadis: Bronze
Automotive Task Force for Auto		Silver medal		medal
components Standard			- Industrial		- Electrominerals
					Ceramics, Hosur
						Division
ISO 13485 - for			ASME Sec IX,		EN9100:2018		EN13236:2019
MiraCradle			ISO 15614, AS		- Aerospace		- Safety
(Medical Device			1554.1 & AS		Standard		Requirements of
Certification)			3992, PED, AS				Super Abrasive
			1554.6: Welding				Products
			Qualifications				standard

Annual Report 2023-24 I 5

FY 24 awards and recognitions

CUMI

Honoured with the prestigious 'Best Managed Companies' award by Deloitte. Presented by Mr. Romal Shetty, CEO - Deloitte South Asia (1st from right) and Mr. Challa Sreenivasulu Setty, MD - SBI (2nd from right)

CUMI Abrasives

Recognised as a 'Manufacturing Champion' in the Merit category in Total Cost Management.

CUMI Abrasives

Abrasives division plants in Maraimalar Nagar and

Uttarakhand awarded the oSa certification in FY24.

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Corporate overview

Management Reports

Financial statements

MMTCL

Won the 'Carbon reduction of the year' award in transformance at the 2nd edition of India Sustainability Conclave 2023.

WENDT INDIA

Recognised in the CFO 100 Roll of Honour 2024 by CFO Collective, IMA India.

Won the ICAI Awards for Excellence in ESG-BRSR FY22-

23 Silver Award, Small cap Manufacturing Sector market capitalisation less than H30,000 Million.

Won the first prise in the ICMAI Awards for Excellence in Cost Management, Manufacturing

Private Small Companies (turnover less than H5,000 Million).

Won the ICAI Sustainability Reporting Award, Silver Award, Excellence in BRSR Small Cap Manufacturing Sector.

Annual Report 2023-24 I 7

CUMI Electrominerals

Honoured with the National Energy Management Award by Dr. Ashok Kumar, DG of Bureau of Energy Efficiency, Delhi.

CUMI Industrial

Ceramics

Received the Autodesk

Imagine's 'Industry Disruptor'

Award.

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