Apana Logistics Ltd Management Discussions

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page no. Error! Bookmark not defined. You should also read the section titled "Risk Factors" on page no Error! Bookmark not defined. and the section titled "Forward Looking Statements" on page no Error! Bookmark not defined. of this Draft Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.

Our 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 auditor which is included in this Draft Prospectus under "Financia l Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

Business Overview

Our Company is engaged in the business of providing logistics support for handling and transportation of containers, wherein the fleet is inclusive of reach stackers, forklifts, truck-trailers (TT). Our service offering is diversified and includes, Container handling at CFS/ICD/port, road transportation, cargo handling at third-party warehouses, and operation & maintenance of trucks-trailers (TT).

Our Company also holds experience in operations and maintenance services to ensure efficient handling of reach stackers. Our key services include container handling, operation and management of truck-trailers. We serve some of the top leading CFS/ICD/Port Operators in India.

Our long-standing relationships with CFS, ICDs and Ports and our experience in container handling through reach stackers, cargo handling and understanding of customers supply chain, regional market dynamics for transportation, enables us to deliver cos t and time effective solutions for our customers. Our experienced management team has required skills, which enable us to provide these services to our customer efficiently. As on August 31, 2025, we have maintained and owned fleet size of Thirty-Three (33) truck-trailers and five (05) reach stackers.

Our promoter and management have combined industry experience of more than Thirty Three (33) years in logistics industry. Their knowledge, guidance and experience in this industry have been invaluable for the growth and development of the Company.

FINANCIAL SNAPSHOT

The following table sets forth a breakdown of our revenue from operations, as well as other key performance indicators, for the periods indicated:

	For the financial year ended
Particulars	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from Operations(i)	2143.50	2009.64	2714.18
Revenue CAGR (%)(ii)		(7.57)
Total Income(iii)	2161.08	2033.12	2727.63
EBITDA(iv)	615.28	463.13	310.32
EBITDA Margin (%)(v)	28.70%	23.05%	11.43%
EBITDA CAGR (%)(vi)		25.63%

 

	For the financial year ended
Particulars	March 31, 2025	March 31, 2024	March 31, 2023
EBIT(vii)	521.47	411.04	200.89
ROCE (%)(viii)	26.57%	29.00%	20.09%
Current Ratio(ix)	1.00	1.75	1.55
Operating Cash Flow(x)	820.96	256.17	163.96
PAT(xi)	310.64	300.31	130.06
PAT Margin (%)(xii)	14.49%	14.94%	4.79%
ROE/ RONW (%)(xiii)	23.64%	28.96%	15.71%
Net Worth(xiv)	1440.78	1187.01	886.70
EPS (Basic & Diluted)(xv)	2.63	2.54	1.10
Debt/ Equity Ratio(xiv)	0.56	0.78	0.20
Revenue vertical wise
Container handling at CFS/ICD/port	1380.56	903.01	115.81
Road transportation	427.36	428.81	850.86
Cargo handling at third-party warehouses	110.69	368.71	333.88
Operation & maintenance of trucks and trailers	224.88	321.28	403.26

Source: The Figure has been certified by our Peer review auditors M/s Amit Ray & Co., Chartered Accountants vide their certificate dated September 26, 2025 vide UDIN: 25177655BMMHGP7322.

Notes:

i. Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

ii. Revenue CAGR: The three-year compound annual growth rate in Revenue. [(Ending Value/Beginning Value) ^A (1/N)]-1.

iii. Total Income means the Total Income as appearing in the Restated Financial Statements.

iv. EBITDA is calculated as profit for the period / year, plus tax expenses (consisting of current tax, deferred tax and current taxes relating to earlier years), Interest Expenses and depreciation and amortization expenses minus other Income.

v. EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations.

vi. EBITDA CAGR (%) means: The three-year compound annual growth rate in EBITDA. [(Ending Value/Beginning Value)A (1/N)]-1

vii. EBIT is calculated as profit for the period / year, plus tax expenses (consisting of current tax, deferred tax and current taxes relating to earlier years), Interest Expenses minus other Income.

viii. RoCE (Return on Capital Employed) (%) is calculated as earnings before interest and taxes divided by average capital employed. Capital Employed includes Equity Shares, Reserves and surplus, Long- Term Borrowing.

ix. Current Ratio: Current Asset over Current Liabilities.

x. Operating Cash Flow: Net cash inflow from / (used in) operating activities.

xi. Profit After Tax Means Profit for the period/year as appearing in the Restated Financial Statements.

xii. PAT Margin (%) is calculated as Profit for the period/year divided by Revenue from Operations.

xiii. RoE (Return on Equity) (%) is calculated as net profit after tax for the period/ year divided by Average Shareholder Equity.

xiv. Net Worth means the aggregate value of the paid-up share capital and reserves and surplus of the company.

xv. EPS: Earning per share is calculated as PAT divide by Weighted No. of equity shares

xvi. Debt Equity Ratio means total debt/ equity shareholders fund or networth at the end of respective period.

Explanation for KPI metrics

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps assess the overall financial performance of our Company and size of our business.
Revenue CAGR %	Revenue CAGR informs the management of compounded annual growth rate i.e. Rate at which Companys revenue are growing on annual basis.
Total income	Total income is used by the management to track revenue from operations and other income.
EBITDA	EBITDA provides information regarding the operational efficiency of the business
EBITDA Margin (%)	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
EBITDA CAGR %	EBITDA CAGR indicate our compounded growth of the business
ROCE %	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.
Current Ratio	Current ratio indicates the companys ability to bear its short-term obligations
Operating Cash Flow	Operating cash flow shows whether the company is able to generate cash from day-to-day business
PAT	Profit after Tax is an indicator which determine the actual earning available to equity shareholders
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of the business.
Net Worth	Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity.
ROC/RONW	ROC/RONW (%) is an indicator which shows how much company is generating from its available shareholders funds
EPS	Earning per shares is the companys earnings available of one share of the Company for the period

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Note 2 of Restated Financial Statements beginning on page no Error! Bookmark not defined. of this Draft Prospectus.

Factors Affecting our Results of Operations

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled "Risk Factors" on page no Error! Bookmark not defined. of this Draft Prospectus. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations:

1. Any adverse changes in central or state government policies;

2. Any qualifications or other observations made by our statutory auditors which may affect our results of operations;

3. Loss of one or more of our key customers and/or suppliers;

4. An increase in the productivity and overall efficiency of our competitors;

5. Our ability to maintain and enhance our brand image;

6. Our reliance on third party suppliers for our raw materials;

7. General economic and business conditions in the markets in which we operate and in the local, regional and national economies;

8. Changes in technology and our ability to manage any disruption or failure of our technology systems;

9. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

10. The performance of the financial markets in India and globally;

11. Occurrences of natural disasters or calamities affecting the areas in which we have operations;

12. Market fluctuations and industry dynamics beyond our control;

13. Our ability to compete effectively, particularly in new markets and businesses;

14. Changes in foreign exchange rates or other rates or prices;

15. Inability to collect our dues and receivables from, or invoice our unbilled services to, our customers, our results of operations;

16. Other factors beyond our control;

17. Our ability to manage risks that arise from these factors;

18. Changes in domestic and foreign laws, regulations and taxes and changes in competition in our industry;

19. Termination of customer contracts without cause and with little or no notice or penalty; and

20. Inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals or noncompliance with and changes in, safety, health and environmental laws and other applicable regulations, may adversely affect our business, financial condition, results of operations and prospects.

Result of Operations

The following table sets forth select financial data from restated profit and loss accounts for the financial year(s) ended on March 31, 2025, March 31, 2024 and March 31, 2023 and the components of which are also expressed as a percentage of total income for such periods.

Particulars	For the Year Ended March 31, 2025	% of Total Revenue	For the Year Ended March 31, 2024	% of Total Revenue	For the Year Ended March 31, 2023	% of Total Revenue
Revenue from Operations	2143.50	99.19%	2009.64	98.85%	2714.18	99.51%
Other Income	17.58	0.81%	23.48	1.15%	13.45	0.49%
Total Income	2161.08	100.00%	2033.12	100.00%	2727.63	100.00%
Operating Expenses	1113.29	51.94%	1152.49	57.35%	1901.63	70.06%
Employee Benefits Expense	309.97	14.46%	299.10	14.88%	376.29	13.86%
Finance Costs	102.89	4.80%	34.07	1.70%	35.37	1.30%
Depreciation and Amortization Expense	93.81	4.38%	52.09	2.59%	109.43	4.03%
Other Expenses	104.46	4.87%	84.07	4.18%	119.92	4.42%
Total Expenses	1724.42	80.45%	1621.81	80.70%	2542.64	93.68%
Profit Before Tax	436.66	20.37%	411.30	20.47%	184.99	6.82%
Tax Expense:
Current Tax	91.54	4.27%	92.19	4.59%	31.08	1.15%
MAT Credit	-	-	3.49	0.17%	32.19	1.19%
Deferred Tax Expense/(Income)	34.47	1.61%	15.32	0.76%	(8.35)	(0.31)%
Profit After Tax	310.64	14.49%	300.31	14.94%	130.06	4.79%

Main Components of our Profit and Loss Account Revenue from operations:

Revenue from operations mainly consists of revenue from providing logistics and allied services.

Other Income:

Our other income primarily consists of Interest Income, rental income, interest on income tax refund, dividend income and miscellaneous income.

Expenses:

Companys expenses consist of operating expenses, Finance Cost, Employee benefits expense, Depreciation expenses and other expenses.

Employee benefits expense:

Our employee benefits expense primarily comprises of Salaries and Wages, Staff Welfare Expenses, Ex-gratia Expenses, Gratuity Expenses, Provident Fund and Employee State Insurance Expense, Leave Salary and Directors Remuneration.

Finance Cost:

Finance cost consists of Interest and other borrowing expenses.

Depreciation and Amortization Expenses:

Depreciation includes depreciation calculated on furniture and fixtures, computers and printers, vehicles and office equipments. Other Expenses:

Our other expenses consist of auditors fees, legal and professional charges, general and business expense, postal and telephonic charges, printing and stationary expenses, rates, taxes and fine, rent and electricity, tender expenses, conveyance and travelling expenses, repair and maintenance expenses, licensing and compliance expenses.

RESULTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2025

Total Income:

During FY 24-25, Total income for the period starting from April 1, 2024 to March 31, 2025 stood at Rs2161.08 Lakhs. The total income consists of revenue from operations and other income.

Revenue from Operations

During FY 24-25, revenue from operation of our Company stood at Rs2143.50 Lakhs. The main contribution to the revenue from operations is from providing logistics and allied services.

Other Income:

During FY 24-25, other income of our Company stood at Rs 17.58 Lakhs. The main components of other income are interest income, rental income, scrap income etc.

Employee benefits expense:

During FY 24-25, our employee benefits expense was Rs 309.97 Lakhs for the year ended March 31, 2025, which included salaries and wages of Rs 278.33 Lakhs, Directors remuneration of Rs 12.00 Lakhs and staff welfare expenses Rs 1.54 Lakhs, gratuity expenses of Rs4.59 Lakhs and PF and ESI of Rs13.52 Lakhs.

Depreciation and Amortization Expenses:

During FY 24-25, Depreciation and amortization charges of our Company stood at Rs 93.81 Lakhs.

Other Expenses:

Our other expenses for the year ended March 31, 2025 amounted to Rs 104.46 Lakhs, which majorly includes rent and electricity expenses of Rs 37.67 Lakhs, Legal and professional expense of Rs15.90 Lakhs, general and business expense of Rs12.87 Lakhs, License and compliance expense of Rs13.32 Lakhs and other expenses of Rs24.69 Lakhs.

Tax Expense

During the FY 24-25 provision for Income Tax has been created for Rs 91.54 Lakhs computed as per the tax liability arising for the year as per Income tax act 1961.

Restated profit after tax:

Our restated profit after tax for the FY 24-25 after adjusting the Income tax provision computed as per Income tax Act 1961 stands as Rs 310.64 Lakhs.

FISCAL 2025 COMPARED WITH FISCAL 2024

Set forth below is a discussion of our results of operations for financial year ended March 31, 2025 over March 31, 2024 Total Income:

Total income increased from Rs 2033.12 Lakh in year ended March 31, 2024 to Rs 2161.08 Lakhs in year ended March 31, 2025 with a resultant increase of 6.29% in year ended March 31, 2025 mainly due to increase in normal course of business.

Revenue from Operations:

Total revenue from operations increased from Rs 2009.64 Lakh in year ended March 31, 2024 to Rs 2143.50 Lakhs in year ended March 31, 2025 with a resultant increase of 6.66% in year ended March 31, 2025 mainly due to increase in normal course of business.

Other Income:

Other Income decreased from Rs23.48 Lakhs in year ended March 31, 2024 to Rs 17.58 Lakhs in year ended March 31, 2025 with a resultant decrease of 25.14% in year ended March 31, 2025.

Operating Expenses:

Our Operating Expenses decreased from Rs 1152.49 Lakhs in year ended March 31, 2024 to Rs 1113.29 Lakhs in year ended March 31, 2025 with a resultant decrease of 3.40% in year ended March 31, 2025 which is mainly due to decrease in trailer, transportation expenses during the year.

Employee benefits expense:

Employee Benefit Expenses increased from Rs 299.10 Lakhs in year ended March 31, 2024 to Rs 309.97 Lakhs in year ended March 31, 2025 with a resultant increase of 3.63% in year ended March 31, 2025 mainly due to incremental jump in salaries and wages which increased from Rs 271.85 lakhs in FY23-24 to Rs 278.33 Lakhs in FY 24-25 giving an increased jump of 2.38% during FY 24-25, incremental jump in PF & ESI expense which increased from Rs 7.46 lakhs in FY23-24 to Rs 13.52 Lakhs in FY 24-25 giving an increased jump of 81.23% during FY 24-25. This is attributed to certain incremental salaries to the existing staff and also hiring some new staff to streamline the business process to handle more effectively and efficiently.

Finance Cost Expenses

Finance Cost Expenses increased from Rs 34.07 Lakhs in year ended March 31, 2024 to Rs 102.89 Lakhs in year ended March 31, 2025 with a resultant increase of 202.03% in year ended March 31, 2025 mainly due to increase in interest expenses which increased from Rs 23.21 lakhs in FY23-24 to Rs 102.39 Lakhs in FY 24-25 giving an increase of 341.15% during FY 24-25.

Depreciation and Amortization Expenses:

Depreciation and amortization increased from Rs 52.09 Lakhs in year ended March 31, 2024 to Rs 93.81 Lakhs in year ended March 31, 2025 with a resultant increase of 80.10% in year ended March 31, 2025 due to increase in the asset base of the company i.e. purchase of furniture and fixtures, computer and printers, heavy vehicles and office equipments.

Other Expenses:

Other expenses increase from Rs 84.07 Lakhs in year ended March 31, 2024 to Rs 104.46 Lakhs in year ended March 31, 2025 with a resultant increase of 24.26% in year ended March 31, 2025. The other expenses primarily includes legal and professional expenses, general and business expenses, rent and electricity expenses, license and compliance expenses.

Restated profit after tax:

Net Profit after tax increased from Rs 300.31 Lakhs in year ended March 31, 2024 to Rs 310.64 Lakhs in year ended March 31, 2025 with a resultant increase of 3.44% in year ended March 31, 2025. The increment in profit is due to increase in revenue from operations.

FISCAL 2024 COMPARED WITH FISCAL 2023

Set forth below is a discussion of our results of operations for financial year ended March 31, 2024 over March 31, 2023 Total Income:

Total income decreased from Rs 2727.63 Lakh in year ended March 31, 2023 to Rs 2033.12 Lakhs in year ended March 31, 2024 with a resultant decrease of 25.46% in year ended March 31, 2024 as company has not renewed contracts / agreement with some of the existing customers due to late payments and has not entered into new contracts / agreements.

Revenue from Operations:

Total revenue from operations increased from Rs 2714.18 Lakh in year ended March 31, 2023 to Rs 2009.64 Lakhs in year ended March 31, 2024 with a resultant decrease of 25.96% in year ended March 31, 2024 as company has not renewed contracts / agreement with some of the existing customers due to late payments and has not entered into new contracts / agreements.

Other Income:

Other Income increased from Rs13.45 Lakhs in year ended March 31, 2023 to Rs 23.48 Lakhs in year ended March 31, 2024 with a resultant increase of 74.54% in year ended March 31, 2024.

Operating Expenses:

Our Operating Expenses decreased from Rs 1901.63 Lakhs in year ended March 31, 2023 to Rs 1152.49 Lakhs in year ended March 31, 2024 with a resultant decrease of 39.39% in year ended March 31, 2024 which is mainly due to decrease in trailer, transportation expenses during the year.

Employee benefits expense:

Employee Benefit Expenses decreased from Rs 376.29 Lakhs in year ended March 31, 2023 to Rs 299.10 Lakhs in year ended March 31, 2024 with a resultant decrease of 20.51% in year ended March 31, 2024 mainly due to decrease in salaries and wages which decreased from Rs 338.52 lakhs in FY22-23 to Rs 271.85 Lakhs in FY 23-24 giving an decrease in 19.69% during FY 23-24.

Finance Cost Expenses:

Finance Cost Expenses decreased from Rs 35.37 Lakhs in year ended March 31, 2023 to Rs 34.07 Lakhs in year ended March 31, 2024 with a resultant decrease of 3.68% in year ended March 31, 2024 mainly due to decrease in interest expenses which decreased from Rs 29.36 lakhs in FY22-23 to Rs 23.21 Lakhs in FY 23-24 giving an decrease in 20.95% during FY 23-24.

Depreciation and Amortization Expenses:

Depreciation and amortization decreased from Rs 109.43 Lakhs in year ended March 31, 2023 to Rs 52.09 Lakhs in year ended March 31, 2024 with a resultant decrease of 52.40% in year ended March 31, 2024 due to change in Accounting Estimate as per Schedule II of Companies Act, 2013, due to which life of an Asset has been increased.

Other Expenses:

Other expenses decrease from Rs 119.92 Lakhs in year ended March 31, 2023 to Rs 84.07 Lakhs in year ended March 31, 2024 with a resultant decrease of 29.90% in year ended March 31, 2024. The other expenses primarily includes legal and professional expenses, general and business expenses, rent and electricity expenses, license and compliance expenses.

Restated profit after tax:

Net Profit after tax increased from Rs 130.06 Lakhs in year ended March 31, 2023 to Rs 300.31 Lakhs in year ended March 31, 2024 with a resultant increase of 130.91% in year ended March 31, 2024. The increment in profit is due to decrease in expenses in year ended March 31, 2024.

CASH FLOWS

The following table sets forth certain information relating to our cash flows in the periods indicated:

Particulars	For the financial year ended March 31,
	2025	2024	2023
Net Cash generated from Operating Activities	820.96	256.17	163.96
Net Cash from/(used in) Investing Activities	(609.52)	(763.42)	(47.59)
Net Cash from/ (used in) Financing Activities	(288.26)	569.28	(221.61)
Net Increase/(Decrease) in Cash and Cash Equivalents	(16.82)	62.03	(105.24)
Cash and Cash Equivalents at the beginning of the year	155.06	93.03	198.27
Cash and Cash Equivalents at the end of the year	138.24	155.06	93.03

Cash Flows from Operating Activities For Financial Year Ended March 31, 2025

Net cash generated from operating activities was Rs 820.96 Lakhs in March 31, 2025. Profit before tax was Rs 436.66 Lakhs in March 31, 2025. Adjustments primarily consisted of Depreciation of Rs 93.81 Lakhs, Prior period adjustment of Rs (56.86) Lakhs, Finance cost of Rs 102.89 Lakhs and Interest income of Rs (14.79) Lakhs.

Our operating cash flow before working capital adjustments was Rs 561.70 Lakhs in March 31, 2025. The working capital adjustments in March 31, 2025 included, increase in trade receivable of Rs (46.05) Lakhs, decrease in short term loans and advances of Rs 173.24 Lakhs, increase in trade payables of Rs 59.57 Lakhs, increase in Other Current liabilities of Rs 112.03 Lakhs, increase in provisions of Rs 57.73 Lakhs. The adjustment of Direct Taxes paid was Rs (97.25) Lakhs.

For Financial Year Ended March 31, 2024

Net cash generated from operating activities was Rs 256.17 Lakhs in March 31, 2024. Profit before tax was Rs 411.30 Lakhs in March 31, 2024. Adjustments primarily consisted of Depreciation of Rs 52.09 Lakhs, Finance cost of Rs 34.07 Lakhs and Interest income of Rs (15.77) Lakhs.

Our operating cash flow before working capital adjustments was Rs 481.69 Lakhs in March 31, 2024. The working capital adjustments in March 31, 2024 included, increase in trade receivable of Rs (116.06) Lakhs, decrease in other current assets of Rs12.00 Lakhs, increase in short term loans and advances of Rs (155.63) Lakhs, decrease in trade payables of Rs (39.99) Lakhs, increase in Other Current liabilities of Rs 149.65 Lakhs, increase in provisions of Rs 20.19 Lakhs. The adjustment of Direct Taxes paid was Rs (95.67) Lakhs.

For Financial Year Ended March 31, 2023

Net cash generated from operating activities was Rs 163.96 Lakhs in March 31, 2023. Profit before tax was Rs 184.99 Lakhs in March 31, 2023. Adjustments primarily consisted of Depreciation of Rs 109.43 Lakhs, Finance cost of Rs 35.37 Lakhs and Interest income of Rs (1019) Lakhs and dividend income of Rs (0.77) Lakhs.

Our operating cash flow before working capital adjustments was Rs 318.82 Lakhs in March 31, 2023. The working capital adjustments in March 31, 2023 included, decrease in trade receivable of Rs 30.51 Lakhs, decrease in other current assets of Rs70.56 Lakhs, decrease in short term loans and advances of Rs 9.61 Lakhs, decrease in trade payables of Rs (165.19) Lakhs, decrease in Other Current liabilities of Rs (84.11) Lakhs, increase in provisions of Rs 38.67 Lakhs. The adjustment of Direct Taxes paid was Rs (54.93) Lakhs.

Cash Flows from Investment Activities For Financial Year Ended March 31, 2025

Net cash used for investing activities for the year ended March 31, 2025 was Rs (609.52) Lakhs. This was primarily due to purchase of property, plant & equipment of Rs (290.76) Lakhs, Interest Income of Rs 14.79 Lakhs, increase in other non current assets of Rs (337.85) Lakhs and decrease in long term loan and advances of Rs 4.30 Lakhs.

For Financial Year Ended March 31, 2024

Net cash used for investing activities for the year ended March 31, 2024 was Rs (763.42) Lakhs. This was primarily due to purchase of property, plant & equipment of Rs (800.10) Lakhs, Interest Income of Rs 15.77 Lakhs, increase in other non current assets of Rs (8.34) Lakhs and increase in long term loan and advances of Rs (49.87) Lakhs and decrease in non current investments of Rs70.78 Lakhs.

For Financial Year Ended March 31, 2023

Net cash used for investing activities for the year ended March 31, 2023 was Rs (47.59) Lakhs. This was primarily due to dividend income of Rs 0.77 Lakhs, Interest Income of Rs 10.19 Lakhs, increase in other non current assets of Rs (9.65) Lakhs and decrease in long term loan and advances of Rs 9.15 Lakhs and increase in non current investments of Rs (67.70) Lakhs.

Cash Flows from Financing Activities

For Financial Year Ended March 31, 2025

Net cash used for financing activities for the year ended March 31, 2025 was Rs (288.80) Lakhs, primarily due to Repayment of Long Term Borrowings Rs (185.91) Lakhs, Interest Expense of Rs (102.89) Lakhs.

For Financial Year Ended March 31, 2024

Net cash used flow from financing activities for the year ended March 31, 2024 was Rs 569.28 Lakhs, primarily due to proceeds from Long Term Borrowings Rs 603.35 Lakhs and Interest Expense of Rs (34.07) Lakhs.

For Financial Year Ended March 31, 2023

Net cash used for financing activities for the year ended March 31, 2023 was Rs (221.61) Lakhs, primarily due to Repayment of Long Term Borrowings Rs (186.24) Lakhs, Interest Expense of Rs (35.37) Lakhs.

Related Party Transactions

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relates to remuneration, salary, loan and Issue of Equity Shares. For further details of related parties kindly refer chapter titled "Financial Statement as Restated" beginning on page no Error! Bookmark not defined. of this Red Herring Prospectus.

Financial Market Risk

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risk

We are currently exposed to interest to rate risks to the extent of outstanding loans. However, any rise in the 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:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent" . For further information on potential risks arising from certain non-recurring or infrequent transactions, please refer to Risk Factor Any future unusual or infrequent events or transactions may adversely affect our financial performance. on page no .... of this Draft Prospectus.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

Our business has been subject to, 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 Factor

‘If inflation rises in India, increased costs may result in a decline in the profits of our Company. Inflation rates in India have been volatile in recent years and such volatility may continue in the future. under chapter titled Risk Factor beginning on page no of the Draft Prospectus. To our knowledge, except as we have described in the Draft Prospectus, there are no other 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 in this Draft 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.

For further information, please refer to Risk Factor ‘ Changing laws, rules and regulations and legal uncertainties, including adverse application of corporate and tax laws, may adversely affect our business, results of operations, financial condition, and prospectus. on page no of this Draft Prospectus.

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, researches in technology, government policies and other economic factor.

For further information, please refer to Risk Factor no- ‘Political, economic or other factors that are beyond our control may have an adverse effect on our business and results of operations. under chapter titled Risk Factor beginning on page no of the

Draft Prospectus.

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.

Other than as disclosed in this section and in "Our Business" on page no we have not announced and do not expect to announce in the near future any new business segments.

6. Total turnover of each major industry segment in which our Company operates

The Company is the manufacturer and supplier of aluminium extrusion products like aluminium railing and stainless steel glass railing products in India. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page no .... of the Draft Prospectus.

7. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.

8. Seasonality of business

Our Companys business is not seasonal in nature. Hence, our business is not subject to seasonality or cyclicality.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page nos and respectively of this Draft Prospectus.

10. Details of material developments after the date of last balance sheet i.e., March 31, 2025.

After the date of last Balance sheet i.e., March 31, 2025, no material events have occurred after the last audited period.