You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Draft Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 25 which discusses several factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year ("Fiscal Year") are to the twelve-month period ended March 31 of that year.
The financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI ICDR Regulations and restated as described in the report of our auditors dated May 27, 2024 which is included in this Draft Red Herring Prospectus under the section titled "Restated Financial Information" beginning on page 155 of this Draft Red Herring Prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements. This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 25 and 18 respectively, and elsewhere in this Draft Red Herring Prospectus Accordingly, the degree to which the financial statements in this Draft Red Herring Prospectus will provide meaningful information depend entirely on such potential investors level of familiarity with Indian accounting practices. Please also refer to section titled "Presentation of Financial, Industry and Market data" beginning on page 16 of this Draft Red Herring Prospectus.
OUR BUSINESS
Our Company was originally incorporated as Aditya Ultra Steel Private Limited on 27th July, 2011 under the provisions of Companies Act, 1956 in the State of Gujarat by Mr. Dipen Rameshbhai Faldu, Mr. Pramodkumar Madhavjibhai Makadia, Mr. Yogesh Premji Bhai Suvariya and Mr. Chirga Lakhani. During the year 2016 -2017 Mr. Varun Manojkumar Jain and Mrs. Varuna Jain acquired all the equity shares of the Company from existing shareholders and the control over the Company. Subsequently, our Company was converted into a Public Limited Company and the name was changed to "Aditya Ultra Steel Limited" vide fresh Certificate of Incorporation dated 26th July, 2018 issued by the Registrar of Companies, Gujarat at Ahmedabad. The Corporate Identification Number of Our Company is U27100GJ2011PLC066552.
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. We have a history of more than 12 (Twelve) years in manufacturing of TMT bars industry. We design and manufacture TMT bars and sell it on B2B Basis. Our customer base in mainly spread across the State of Gujarat and also to certain customers in the State of Madhya Pradesh, State of Punjab & Haryana, State of Rajasthan, State of Uttar Pradesh and State of Maharashtra. We have our manufacturing plant located in Survey No-48, Wankarner Boudry, Bhalgam, National Highway 8-A, Wankaner, Rajkot, Wankaner, Gujarat-363621, India which is equipped with testing laboratories, workers accommodation, canteen and well-connected transport facilities.
Within a short span of time, our Company has carved a niche for itself in the steel industry, which is witnessed by growth in operational revenue from 145 Crore in FY 2017-18 to 530.45 Crore in FY 2023-24 showing CAGR of approximately 40%. For the year ended on March 31, 2024, March 31, 2023 and March 31, 2022, our Company has earned revenue from operations of 58,780.08 Lakhs, 53,044.78 Lakhs, 51,535.53 Lakhs respectively. Our Earnings Before Interest, Taxes, Depreciation and Amortisation ("EBITDA") for the year ended on March 31, 2024, March 31, 2023 and March 31, 2022 was 1,801.39 Lakhs , 986.79 Lakhs, 1,091.53 Lakhs respectively.
FINANCIAL SNAPSHOT
The financial performance of the Company for the last three years as per restated financial Statement:
| For the Year ended on March 31 | |||
| Particulars | 2024 | 2023 | 2022 |
| Revenue from Operations ( in Lakhs) | 58,780.08 | 53,044.78 | 51,535.53 |
| Growth in Revenue from Operations (%) | 10.81 | 2.93 | NA |
| EBITDA ( in Lakhs) | 1801.39 | 986.79 | 1091.53 |
| EBITDA Margin (%) | 3.06 | 1.86 | 2.12 |
| Profit After Tax ( in Lakhs) | 792.34 | 277.66 | 488.90 |
| PAT Margin (%) | 1.35 | 0.52 | 0.95 |
| RoE (%) | 23.92 | 10.18 | 21.33 |
| RoCE (%) | 18.75 | 10.76 | 14.33 |
| Net Fixed Asset Turnover (In Times) | 18.35 | 16.90 | 14.52 |
| Net Working Capital Days | 16 | 11 | 12 |
| Operating Cash Flows ( in Lakhs) | 912.59 | 841.14 | (618.20) |
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO LAST AUDITED BALANCE SHEET:
After the date of last Audited accounts i.e., March 31, 2024, the Directors of our Company confirm that, there have not been any significant material developments except mentioned below;
Note:
The Board of Directors in their meeting held on April 24, 2024 approved resolution, for issuing 200000 Preferential shares and subsequently approved by members of Company in the extra- ordinary general meeting held on April 30, 2024. Pursuant to which our Company has allotted 200000 Equity Shares on May 15, 2024.
FACTORS AFFECTING OUR FUTURE RESULTS OF OPERATIONS:
Our Companys future results of operations could be affected potentially by the following factors:
OUR SIGNIFICANT ACCOUNTING POLICIES:
For Significant accounting policies please refer Significant Accounting Policies and Notes to accounts, "Annexure IV" beginning under Chapter titled "Restated Financial Information" beginning on page 155 of this Draft Red Herring Prospectus.
RESULTS OF OUR OPERATION
| Years | |||
| Particulars | 31.03.2024 | 31.03.2023 | 31.03.2022 |
| Revenue from operations | 58,780.08 | 53,044.78 | 51,535.53 |
| Total Revenue from Operation | 58,780.08 | 53,044.78 | 51,535.53 |
| % of growth | 10.81% | 2.93% | |
| Other Income | 76.21 | 4.13 | 62.81 |
| % of growth | 1744.46% | (93.42%) | |
| Total income | 58,856.29 | 53,048.92 | 51,598.33 |
| % of growth | 10.95% | 2.81% | |
| Expenses | |||
| Cost of Material consumed | 38,099.45 | 49,284.74 | 45,570.43 |
| % Increase/(Decrease) | (22.70%) | 8.15% | |
| Purchase of stock in trade | 15,424.26 | 599.47 | 800.06 |
| % Increase/(Decrease) | 2472.97% | (25.07%) | |
| Manufacturing Expense | 1579.80 | 2149.82 | 2232.61 |
| % Increase/(Decrease) | (26.51%) | (3.71%) | |
| Changes in Inventories of work-in-progress | (337.18) | (2,175.51) | (300.17) |
| % Increase/(Decrease) | (84.50%) | 624.75% | |
| Employee benefits expense | 819.95 | 838.35 | 820.24 |
| % Increase/(Decrease) | (2.19%) | 2.21% | |
| Finance Costs | 643.94 | 463.03 | 297.50 |
| % Increase/(Decrease) | 39.07% | 55.64% | |
| Depreciation and amortisation expenses | 161.47 | 149.37 | 141.26 |
| % Increase/(Decrease) | 8.10% | 5.75% | |
| Other expenses | 1392.42 | 1361.12 | 1320.83 |
| % Increase/(Decrease) | 2.30% | 3.05% | |
| Total Expenses | 57,784.11 | 52,670.39 | 50,882.75 |
| % to total revenue | 98.18% | 99.29% | 98.61% |
| Profit/(Loss) Before Extra-Ordinary Items and Tax | 1,072.18 | 378.53 | 715.58 |
| % to total revenue | 1.82% | 0.71% | 1.39% |
| Exceptional Items | 0.00 | 0.00 | 0.00 |
| Profit before Tax | 1,072.18 | 378.53 | 715.58 |
| Total tax expense | 279.84 | 100.86 | 226.68 |
| % Increase/(Decrease) | 177.45% | (55.51%) | |
| Profit and Loss after tax for the Year as Restated | 792.34 | 277.66 | 488.90 |
| % to total revenue | 1.35% | 0.52% | 0.95% |
| Profit and Loss for the period as Restated | 792.34 | 277.66 | 488.90 |
| % Increase/(Decrease) | 185.36% | (43.21%) | |
COMPARISON OF FY 2023-24 WITH FY 2022-23: REVENUE: Revenue from operations
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. The Total Revenue from operations for the year ended on FY 2023-24 was 58,780.08 Lakh as compared to 53,044.78 Lakh during the FY 2022-23. Revenue from Operations mainly includes revenue from Manufacturing of TMT Bars and other Products such as Scrap, Billets and other by products. Revenue from operations increased by 10.81%.
Other Income:
Other income of the Company was 76.21 lakhs and 4.13 lakhs for FY 2023-24 and FY 2022-23 respectively. Other Income consists of Interest Income, Profit on sale of fixed asset and Miscellaneous Income. Increase in Other Income was mainly due to Profit on sale of fixed asset of 76.21 lakhs in FY 2023-24.
EXPENDITURE:
Cost of materials consumed.
Our cost of materials consumed decreased by 22.70% from 49,284.74 lakhs in FY 2022-23 to 38,099.45 lakhs in FY
2023-24.
Purchase of Stock in trade
During the year ended on March 31, 2024, and March 31, 2023 our purchase amounted to 15,424.26 Lakhs, and 599.47
Lakhs, respectively, which is increased by 2472.97% as compared to previous year.
Manufacturing Expense
Manufacturing expenses incurred by the Company fall by 26.51% from 2149.82 lakhs in FY 2022-23 to 1579.80 lakhs in FY 2023-24. Manufacturing expenses consists of Power, Fuel & Utilities, Coal & Gas Consumption and Store and Spares Consumed, Water Expense and Repair and Maintenance Expenses. Manufacturing expenses have mainly reduced due to reduction on Power, Fuel & Utilities expenses.
Changes in inventories of Finished Goods, Work in Progress and Stock in Trade
Our opening stock of finished goods and Binding Wires was 4,727.13 lakhs as at April 1, 2023, while it was 2,466.83 lakhs as at April 1, 2022. Our closing stock of finished goods and work-in-progress was 5,047.58 lakhs as at March 31,
2024, while it was 4,727.13 lakhs as at March 31, 2023. The changes in inventories of finished goods and work-in-progress to negative 320.45 lakhs in FY 2023-24 from negative 2,260.30 lakhs in FY 2022-23.
Employee Benefit Expenses
Employee Benefit expenses decreased to 819.95 Lakhs for FY 2023-24 from 838.35 Lakh for FY 2022-23 showing a decreased of 2.19%. Employee Benefit Expenses mainly includes Salary and wages, Gratuity Expense, contribution to Provident fund and Staff welfare expenses.
Finance Cost
Finance expense were 643.94 Lakhs for FY 2023-24 as against 463.03 Lakhs in FY 2022-23 showing an increase of 39.07% Finance Cost mainly includes Interest on Term Loan, Interest on Cash Credit, Interest on Working Capital and Other Borrowing cost.
Depreciation and amortisation expenses
The Depreciation and amortization expense for FY 2023-24 was 161.47 Lakh as against 149.37 Lakhs for FY 2022-23 showing an increase of 8.10%.
Other Expenses
Other Expenses increased to 1392.42 Lakh for FY 2023-24 from 1361.12 Lakh for FY 2022-23 showing an increase of 2.30%. Other expense mainly includes Royalty (Licence Fees), Outward freight charges, Professional & Consultancy Fees, Rent, Rates & Taxes, Advertisement Expenses, Audit fees, Conveyance & Petrol Expense, Repair & maintenance, Sales Promotion, Electric Expense, Travelling Expenses, Sundry Balance Written Off, Insurance expenses and other miscellaneous expenses.
Profit before Extra-Ordinary Items and Tax
The Profit before Extra-Ordinary Items and Tax for the FY 2023-24 was 1.82% of the Total revenue from operations and it was 0.71% of Total revenue from operations for the FY 2022-23. The Profit before Extra-Ordinary Items and Tax has an increased to 1,072.18 Lakh in FY 2023-24 from 378.53 Lakh in FY 2022-23.
Profit after Tax (PAT)
PAT Increased to 792.34 Lakh in FY 2023-24 from 277.66 Lakh in the FY 2022-23. PAT was 1.35% and 0.52% of Total Revenue of our Company for the year ended on March 31, 2024 and March 31, 2023 respectively.
COMPARISON OF FY 2022-23 WITH FY 2021-22: REVENUE: Revenue from operations
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. The Total Revenue from operations for the year ended on FY 2022-23 was 53044.78 Lakh as compared to 51535.53 Lakh during the FY 2021-22. Revenue from Operations mainly includes revenue from Manufacturing TMT Bars. Revenue from operations increased by 2.93%.
Other Income:
Other income of the Company was 4.13 Lakhs and 62.81 Lakhs for FY 2022-23 and FY 2021-22 respectively. Other Income mainly consists of Interest Income and Miscellaneous Income.
EXPENDITURE:
Cost of materials Consumed.
Our cost of materials consumed Increased by 6.28% from 45,570.43 lakhs in FY 2021-22 to 49,284.74 lakhs in FY
2022-23.
Purchase of Stock in trade
During the year ended on March 31, 2023, our purchase amounted to 599.47 Lakhs, which represents 1.13% of our total income for the period.
Manufacturing Expense
Manufacturing expenses incurred by the Company and declined by 3.71% from 2232.61 lakhs in FY 2021-22 to
2149.82 lakhs in FY 2022-23. Manufacturing expenses consists of Power, Fuel & Utilities, Coal & Gas Consumption and Store and Spares Consumed, Water Expense and Repair and Maintenance Expenses.
Changes in inventories of Finished Goods, Work in Progress and Stock in Trade
Our opening stock of finished goods and Binding Wires was 2,466.83 lakhs as at April 1, 2022, while it was 2,183.10 lakhs as at April 1, 2021. Our closing stock of finished goods and work-in-progress was 4,727.13 lakhs as at March 31,
2023, while it was 2,466.83 lakhs as at March 31, 2022. The changes in inventories of finished goods and work-in-progress to negative 2,260.30 lakhs in FY 2022-23 from negative 283.74 lakhs in FY 2021-22.
Employee Benefit Expenses
Employee Benefit expenses an Increased to 838.35 Lakhs for FY 2022-23 from 820.24 Lakh for FY 2021-22 showing an Increase of 2.21%. Employee Benefit Expenses mainly includes Salary and wages, contribution to Provident fund and Staff welfare expenses.
Finance Cost
Finance expense were 463.03 Lakhs for FY 2022-23 as against 297.50 Lakhs in FY 2021-22 showing an Increase of 55.64%. Finance Cost mainly includes Interest on Term Loan, Interest on Cash Credit and Other Borrowing cost.
Depreciation
The Depreciation and amortization expense for FY 2022-23 was 149.37 Lakh as against 141.26 Lakhs for FY 2021-22.
Other Expenses
Other Expenses increased to 1361.12 Lakh for FY 2022-23 from 1320.83 Lakh for FY 2021-22 showing an increase of 3.05%. Other expense mainly includes Royalty (Licence Fees), Outward freight charges, Professional & Consultancy Fees, Rent, Rates & Taxes, Advertisement Expenses, Audit fees, Conveyance & Petrol Expense, Repair & maintenance, Sales Promotion, Electric Expense, Travelling Expenses, Sundry Balance Written Off, Insurance expenses and other miscellaneous expenses.
Profit before Extra-Ordinary Items and Tax
The Profit before Extra-Ordinary Items and Tax for the FY 2022-23 was 0.71% of the Total revenue from operations and it was 1.39% of Total revenue from operations for the FY 2021-22. The Profit before Extra-Ordinary Items and Tax has decreased to 378.53 Lakh in FY 2022-23 from 715.58 Lakh in FY 2021-22.
Profit after Tax (PAT)
PAT decreased to 277.66 Lakh in FY 2022-23 from 488.90 Lakh in the FY 2021-22. PAT was 0.52% and 0.95% of Total Revenue of our Company for the year ended on March 31, 2023 and March 31, 2022 respectively.
DISCUSSION ON THE STATEMENT OF CASH FLOWS
The table below summaries our cash flows from our Audited Financial Information for the financial year ended March 31, 2024, 2023 and 2022:
| For the year ended March 31 | |||
| Particulars | 2023-24 | 2022-23 | 2021-22 |
| Net cash generated from / (used in) Operating activities | 912.59 | 841.14 | (618.20) |
| Net cash generated from / (used in) Investing activities | (238.24) | (131.58) | (22.28) |
| Net cash generated from / (used in) from Financing activities | (317.66) | (712.56) | (316.29) |
| Net Increase / (decrease) in Cash & Cash Equivalents | 356.69 | (3.00) | (956.77) |
| Cash and cash equivalents at the beginning of the year | 18.08 | 21.09 | 977.86 |
| Cash and cash equivalents at the end of the year | 374.78 | 18.08 | 21.09 |
Operating Activities
In Financial Year 2023-24, net cash generated in operating activities was 912.59 Lakhs. This comprised of the profit before tax of 1,072.18 Lakhs, which was primarily adjusted for depreciation and amortization expenses of 157.62 Lakhs, finance cost of 532.51 Lakhs, Profit on sell of capital asset of 61 Lakhs of and Interest & Other income of 8.88 lakhs. The resultant operating profit before working capital changes was 1,692.43 Lakhs, which was primarily adjusted for an Increase in Inventories of 458.25 Lakhs and Loans & Advances of 384.26 Lakhs, trade receivables 3,669.30., Increase in Short term borrowings of 328.08 Lakhs, Trade payables of 2,528.63 Lakhs and other current liabilities of 1,013.77 Lakhs.
In Financial Year 2022-23, net cash generated in operating activities was 841.14 Lakhs. This comprised of the profit before tax of 378.53 Lakhs, which was primarily adjusted depreciation and amortization expenses of 149.37 Lakhs, finance cost of 449.97 Lakhs, Interest & Other income of 0.82 lakhs. The resultant operating profit before working capital changes was 977.05 Lakhs, which was primarily adjusted for an Increase in Inventories of 1,159.83 Lakhs, trade receivables of 284.64 Lakhs, Short-term loans and advances of 843.85 Lakhs, Increase in other current liabilities of 124.18 Lakhs and trade payables of 21.14Lakhs and decrease in short term provision of 138.66 Lakhs.
In Financial Year 2021-22, net cash used from operating activities was 618.20Lakhs. This comprised of the profit before tax of 715.58 Lakhs, which was primarily adjusted depreciation and amortization expenses of 141.26 Lakhs and finance cost of 278.04 Lakhs, Interest & Other income of 31.61 lakhs, loss on sell of capital assets amounting to 30.76 Lakhs and writing of miscellaneous balances of 89.71 Lakhs. The resultant operating profit before working capital changes was
1,180.64 Lakhs, which was primarily adjusted for an Increased in Inventories of 1240.53 Lakhs, trade receivables of 391.54 Lakhs and Short-term loans and advances of 872.57 Lakhs. Increase in trade payables of 10.34 Lakhs, short term borrowings of 1124.08 Lakhs. Decrease in other current liabilities of 294.40 lakhs.
Investing Activities
In Financial Year 2023-24, net cash used in investing activities was 238.24 Lakhs, which primarily comprised of cash used for the purchase of fixed assets of 327.90 Lakhs, Sale proceeds from fixed assets of 80.78 Lakhs and Interest and other income of 8.88 Lakhs.
In Financial Year 2022-23, net cash used in investing activities was 131.58 Lakhs, which primarily comprised of cash used for the purchase of fixed assets of 128.83 Lakhs, increase in non current assets of 3.57 Lakhs and Income from Interest and other income of 0.82 Lakhs.
In Financial Year 2021-22, net cash used in investing activities was 22.28 Lakhs, which primarily comprised of cash used for the purchase of fixed assets of 98.30Lakhs, Sale proceeds from fixed asset of 44.41 Lakhs and Interest and other income of 31.61 Lakhs.
Financing Activities
In Financial Year 2023-24, net cash used in financing activities was 317.66 Lakhs, which predominantly comprised an Increased of long-term borrowings of 114.85 Lakhs, issue of equity shares amounting to 100.01 Lakhs and finance cost paid of 532.51 Lakhs.
In Financial Year 2022-23, net cash used in financing activities was 712.56 Lakhs, which predominantly comprised
Repayment of borrowings of 262.59 Lakhs and finance cost paid of 449.97 Lakhs.
In Financial Year 2021-22, net cash generated in financing activities was 316.29 Lakhs, which predominantly comprised Repayment of long-term borrowings of 38.25 Lakhs and finance cost paid of 278.04 Lakhs.
RELATED PARTY TRANSACTIONS
For further information, please refer "Note AC - Related Party Transactions" on page 182 under section "Restated Financial Information" beginning from page no. 155 of this Draft Red Herring Prospectus.
FINANCIAL MARKET RISKS
We are exposed to financial market risks from changes in borrowing costs, interest rates and inflation.
INTEREST RATE RISK
We are currently exposed interest to rate risks to the extent of outstanding loans. However, any rise in future borrowings may increase the risk.
EFFECT OF INFLATION
We are affected by inflation as it has an impact on the operating cost, staff costs etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.
INFORMATION REQUIRED AS PER ITEM (11) (II) (C) (iv) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS, 2018:
1. Unusual or infrequent events or transactions
Except as described in this Draft Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".
2. Significant economic changes that materially affected or are likely to affect income from continuing operations. Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page no. 25 of the Draft Red Herring Prospectus. To our knowledge, except as we have described in the Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.
Apart from the risks as disclosed under Section titled "Risk Factors" beginning on page no. 25 in this Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.
Our Companys future costs and revenues will be determined by demand/supply situation, government policies and other economic factor.
5. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. Increases in revenues are largely linked to increase in volume of products of our Company.
6. Total turnover of each major industry segment in which the issuer company operated.
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. Relevant Industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page no. 97 of this Draft Red Herring Prospectus.
7. Status of any publicly announced new products or business segment.
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. Otherwise as stated in the Draft Red Herring Prospectus and in the section "Our Business" appearing on page no. 104, our Company has not publicly announced any new business segment till the date of this Draft Red Herring Prospectus.
8. The extent to which business is seasonal.
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. Hence, our business is not subject to seasonality.
9. Any significant dependence on a single or few suppliers or customers.
Our Company is engaged in the business of manufacturing of rolled steel product i.e. TMT bars under the Kamdhenu brand catering mainly to the construction industry and for infrastructure development. Our Company manufactures TMT bars from billets through reheating furnace and rolling mill. Contribution of our customers and suppliers, as a percentage of total revenue and cost, respectively, for the periods indicated below: Contribution of our customers and suppliers, as a percentage of total revenue and cost, respectively, for the periods indicated below:
| Top Customers as a percentage (%) of revenue from operations | |||
| Particulars | FY 2023-24 | FY 2022-23 | FY 2021-22 |
| Top 1 | 56.84% | 47.50% | 41.63% |
| Top 3 | 83.38% | 79.45% | 78.66% |
| Top 5 | 90.93% | 93.09% | 92.03% |
| Top 10 | 94.27% | 95.63% | 94.11% |
The percentage of contribution of our Companys supplier vis-?-vis the Cost of material consumed respectively for the year ended on March 31, 2024, March 31, 2023 & March 31, 2022 are as follows:
| Top Suppliers as a percentage (%) of revenue from operations | |||
| Particulars | FY 2023-24 | FY 2022-23 | FY 2021-22 |
| Top 1 | 21.72% | 13.46% | 11.10% |
| Top 3 | 43.37% | 36.57% | 28.01% |
| Top 5 | 57.88% | 50.07% | 41.27% |
| Top 10 | 70.91% | 72.91% | 65.98% |
10. Competitive conditions:
We face competition from existing and potential competitors which is common for any business. We have, over a period, developed certain competitors who have been discussed in section titles "Our Business" beginning on page no. 104 of this Draft Red Herring Prospectus.
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