Associated Coaters Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our Financial Statements as Restated which is included in this Draft Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Financial Statements as Restated, for the period ended September 30, 2023 and for the years ended March 31, 2023, 2022 and 2021 including the related notes and reports, included in this Draft Prospectus is prepared in accordance with requirements of the Companies Act, 2013 and restated in accordance with the SEBI (ICDR) Regulations, 2018, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited statutory financial statements. Accordingly, the degree to which our Financial Statements as Restated will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.

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 chapters titled "Risk Factors" and "Forward Looking Statements" beginning on pages 24 and 19, respectively of this Draft Prospectus.

Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

Our Company was incorporated on December 22, 2017 under the Companies Act, 2013 (18 of 2013) and that the company is limited by shares. The Corporate Identity Number of the company is U28129WB2017PTC224001. Our company is converted into public company on December 19, 2023 and fresh certificate of incorporation was issued bearing Corporate Identification Number U28129WB2017PLC224001.

We are into providing specialized services in the pre-treatment and of Powder Coating of aluminium Extrusions. The Services Offered by us includes Powder Coating, PVDF Coating, Wood Film Coating, Industrial Fabrication, etc. Our Company is an ISO 9001:2015 certified organization for Quality Management System. We are committed to provide quality work to our customers that meets the project standards and specifications for materials, workmanship, schedules and public service while maintaining profitability and competitiveness. Our Company has achieved a long standing customer base, which includes renowned private entities. We served various Companies like Infosys, Shyam Steel, Bandhan Bank, Merlin Elements, Ambey Gateways via our fabricators. While, we offer majority of our services in eastern India, however we gradually intend to expand our business operations domestically and internationally. We plan to diversify and expand our presence in other Indian states for the growth of our business.

Significant developments subsequent to the last financial year

In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Draft Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the previous twelve months except:

> The company increased itss Authorised equity share capital from ^10,00,000/- to ^50,00,000/- vide resolution passed in its members meeting dated July 26, 2023.

> The Board of our Company has approved to raise funds through initial public offering in the Board meeting held on December 13, 2023.

> The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the extra ordinary general meeting held on December 18, 2023.

> Our Company was converted from a private limited company to public limited company vide resolution passed in its members meeting dated October 24, 2023 and a fresh certificate of incorporation consequent to conversion was issued on December 19, 2023 by the Registrar of Companies, Kolkata bearing Corporate Identification Number U28129WB2017PLC224001

> The Company issued 9,00,000 bonus Equity Shares in the proportion of 30:1 (Thirty) fully paid equity share of ^10.00 each allotted against 1(One) Equity Shares of ^10.00 each vide resolution passed in its members meeting dated December 18, 2023.

Factors affecting our results of operations

Our companys future results of operations could be affected potentially by the following factors:

1. Strong execution capabilities with industry experience

2. Existing client relationship

3. Quality Assurance

4. Experienced management team

The following table set forth certain key performance indicators for the years indicated: Key Performance Indicators of Our Company

Key Financial Performance	For Period ended September 30, 2023	FY 2022-23	FY 2021-22	FY 2020-21
Revenue from operations(1)	232.96	358.94	139.41	0.00
EBITDA(2)	51.62	81.48	22.42	(0.14)
EBITDA Margin(3)	22.16%	22.70%	16.08%
PAT	33.22	54.30	13.67	(0.14)
PAT Margin(4)	14.26%	15.13%	9.80%
Networth(5)	103.57	70.34	16.05	2.38
RoE %(6)	38.21%	125.69%	148.34%	(5.55)%
RoCE% (7)	32.44%	91.11%	70.66%	(5.27)%

Notes:

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

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income

(3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

‘PAT Margin is calculated as PAT for the period/year divided by revenue from operations.

5 Net worth means the aggregate value of the paid-up share capital and reserves and surplus of the company less deferred tax assets.

(6) Return on Equity is ratio of Profit after Tax and Average Shareholder Equity

(7 Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus long term borrowings.

Explanations for KPI Metrics

KPI	Explanation
Revenue from Operation	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business in key verticals
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
PAT	Profit after tax provides information regarding the overall profitability of the business
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of our 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.
RoE%	RoE provides how efficiently our Company generates profits from Shareholders Funds
RoCE%	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.

STATEMENT OF SIGNIFICANT POLICIES Corporate Information:

The company was originally formed & incorporated as a Private Limited Company at Kolkata, West Bengal under the Companies Act, 2013 under the name of "Associated Coaters Private Limited" vide certificate of incorporation dated December 22, 2017 bearing Corporate Identity Number U28129WB2017PTC224001 issued by the Registrar of Companies, Kolkata, West Bengal. Subsequently, our company was converted into Public Limited Company vide special resolution passed by our shareholders at the Extra Ordinary General Meeting held on October 25th, 2023 and the name of the company was changed to "Associated Coaters Limited" pursuant to issuance of Fresh Certificate of Incorporation dated December 19th, 2023 by Registrar of Companies, Kolkata, West Bengal. The Corporate Identification Number of our company U28129WB2017PLC224001.

The company is mainly engaged in the business specializing in the pretreatment, powder coating, wood coating & PVDF coating on Metals, majorly being aluminium extrusions.

Note 1- Significant Accounting Policies:

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the applicable Accounting Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 under historical cost convention on accrual basis .All the assets and liabilities have been classified as current or non-current as per Companys normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of activities, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

1.2 Use of Estimates

The preparation of the financial statements is in conformity with Indian GAAP (Generally Accepted Accounting Principles) which requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities as on the date of the financial statements. The estimates and assumptions made and applied in preparing the financial statements are based upon managements best knowledge of current events and actions as on the date of financial statements. However, due to uncertainties attached to the assumptions and estimates made actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Revenue Recognition

(a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(b) Sales are recognized on accrual basis, and only after transfer of goods or services to the customer.

(c) Dividend on Investments are recognized on receipt basis.

(d) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.4 Property, Plant & Equipment and Intangible Assets & Depreciation

Property, plant and equipment are stated at historical cost less accumulated depreciation, and accumulated impairment loss, if any. Historical cost comprises of the purchase price including duties and non-refundable taxes, borrowing cost if capitalization criteria are met, directly attributable expenses incurred to bring the asset to the location and condition necessary for it to be capable of being operated in the manner intended by management and initial estimate of decommissioning, restoring and similar liabilities. Subsequent costs related to an item of property, plant and equipment are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are recognized in statement of profit and loss during the reporting period when they are incurred.

1.5 Depreciation of T angible Assets

Depreciation on tangible property, plant & equipment is charged on written down value of the asset as per the Companies Act, 2013. Depreciation on assets purchased/acquired during the year is charged from the date of purchase/acquisition of the asset or from the day the asset is ready for its intended use. Similarly, depreciation on assets sold/discarded during the year is charged up to the date when the asset is sold/discarded

1.6 Investments

Non- Current/ Long-term Investments are stated at cost. Provision is made for diminution in the value of the investments, if, in the opinion of the management, the same is considered to be other than temporary in nature. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. Current investments are carried at lower of cost and fair value determined on an individual basis. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss. .

1.7 Impairment of Assets

Assessment is done at each Balance Sheet date as to whether there is any indication that a tangible asset might be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash flows from other assets or other group of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of asset/ cash generating unit is made. Assets whose carrying value exceeds their recoverable amount are written down to recoverable amount. Recoverable amount is higher of an assets or cash generating units net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting period may no longer exist or may have decreased.

1.8 Inventories

Inventories of traded goods are valued at lower of cost and net realizable value. Cost comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost formula used is FIFO.Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale.

1.9 Investments

Investments classified as long-term investments are stated at cost. Provision is made to recognize any diminution other than temporary in the value of such investments. Current investments are carried at lower of cost and fair value.

1.10 Employee Benefit Expenses

1) Short term employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of Profit and loss for the year which includes benefits like salary, wages, bonus and are recognized as expenses in the period in which the employee renders the related service.

2) (a) Defined Contribution Plan:

The Company has Defined Contribution Plans for Post-employment benefits in the form of Provident Fund for all employees which are administered by Regional Provident Fund Commissioner. Provident Fund and Employee State Insurance are classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Companys contributions to Defined Contribution plans are charged to the Statement of Profit and Loss as and when incurred.

(b) Defined Benefit Plan:

Unfunded Plan the Company has a defined benefit plan for post-employment benefit in the form of Gratuity. Liability for the above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

1.11 Borrowing Cost

Borrowing costs are interest, commitment charges and other costs incurred by an enterprise in connection with Short-Term/ Long-Term borrowing of funds. Borrowing cost directly attributable to acquisition or construction of qualifying assets are capitalized as a part of the cost of the assets, up to the date the asset is ready for its intended use. All other borrowing costs are recognized in the Statement of Profit and Loss in the year in which they are incurred.

1.12 T axes on Income

Tax expense for the year comprising current tax & deferred tax are considered in determining the net profit for the year. Provision is made for current tax and based on tax liability computed in accordance with relevant tax laws applicable to the Company. Provision is made for deferred tax for all timing difference arising between taxable incomes & accounting income at currently enacted or substantively enacted tax rates, as the case may be. Deferred tax assets (other than in situation of unabsorbed depreciation and carry forward losses) are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. Deferred tax assets, in situation of unabsorbed depreciation and carry forward losses under tax laws are recognized only to the extent that where is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be recognized. Deferred Tax Assets and Deferred Tax Liability are been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liability and where the Deferred Tax Asset and Deferred Tax Liability relate to Income taxes is levied by the same taxation authority.

1.13 Earnings per Share (EPS)

The earnings in ascertaining the Companys EPS comprises the net profit after tax attributable to equity shareholders and includes the post-tax effect of any extraordinary items. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax attributable to Equity Shareholders (including the post-tax effect of extra ordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period.

1.14 Prior Period Items

Prior Period and Extraordinary items and Changes in Accounting Policies having material impact on the financial affairs of the Company are disclosed in financial statements.

1.15 Provisions, Contingent Liabilities and Contingent Assets Provisions:

A provisions is recognized when the Company has a present obligation as a result of past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation.

Contingent Liability:

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets:

Contingent Assets are neither recognized nor disclosed in the financial statements.

1.16 Segment Reporting

The Company is operating in only one segment. Hence Segment reporting is not applicable.

1.17 Cash and Cash Equivalents

Cash & cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amount of cash to be cash equivalents.

1.18 Changes in Accounting Policies in the Period/Years Covered in The Restated Financial Statements There is no change in significant accounting policies adopted by the Company.

1.19 Other Notes on Restated Financial statements

a) The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements/information may not necessarily be same as those appearing in the respective audited financial statements for the relevant years.

b) Contingent liabilities and commitments (to the extent not provided for) - A disclosure for a contingent liability is also made when there is a possible obligation that may, require an outflow of the Companys resources.

c) Figures have been rearranged and regrouped wherever practicable and considered necessary.

d) The management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required to be provided for.

e) The balances of trade payables, trade receivables, loans and advances are unsecured and considered as good are subject to confirmations of respective parties concerned.

f) Realizations: In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets and loans and advances are approximately of the same value as stated.

g) Contractual liabilities: All other contractual liabilities connected with business operations of the Company have been appropriately provided for.

h) Amounts in the restated standalone financial statements: Amounts in the restated standalone financial statements are rounded off to nearest Lakhs. Figures in brackets indicate negative values

Discussion on Results of Operation

The following discussion on results of operations should be read in conjunction with the Audited Financial Results of our Company for the period ended September 30,2023 and year ended on March, 31 2023, 2022 and 2021.

Results of Our Standalone Operations

The following table sets forth select financial data from our financial statements as restated of profit and loss for the period ended September 30,2023 and financial years ended on March 31, 2023, 2022 and 2021 the components of which are also expressed as a percentage of total revenue for such periods:

Particulars	30-09 2023	% of total income	31-03 2023	% of total income	31 03 2022	% of total incom e	31 03 202 1	% of total inco me
Revenue from Operations	232.96	100.00%	358.94	100.00%	139. 41	100.0 0%	-	-
Other income		0.00%	-	0.00%	-	0.00%	-	-
Total Revenue (A)	232.96	100.00%	358.94	100.00%	139. 41	100.0 0%	-	-
Expenses:
Cost of Material Consumed	161.91	69.50%	236.57	65.91%	103. 57	74.29 %	-	-
Employee benefits expense	5.53	2.38%	22.17	6.18%	10.3 6	7.43%	-	-
Other expenses	13.89	5.96%	18.73	5.22%	3.07	2.20%	0.14	-
Total Expenses (B)	181.34	77.84%	277.46	77.30%	117.	83.92	0.14	-
					00	%
Earnings Before Interest,	51.62	22.16%	81.48	22.70%	22.4	16.08	(0.1	-
Taxes, Depreciation & Amortization(C=A-B)					1	%	4)
Finance costs (D)	0.03	0.01%	0.54	0.15%	0.01	0.00%	-	-
Depreciation and amortization expenses (E)	6.69	2.87%	7.56	2.11%	3.94	2.82%	-	-
Profit before exceptional	44.90	19.27%	73.37	20.44%	18.4	13.25	(0.1	-
items, extraordinary items and tax (F=C-D-E)					7	%	4)
Exceptional Items		0.00%	-	0.00%	-	0.00%	-	-
Profit before tax (F=C-D-E)	44.90	19.27%	73.37	20.44%	18.4	13.25	(0.1	-
					7	%	4)
Tax Expenses		0.00%		0.00%		0.00%		-
- Current Tax	11.87	5.09%	19.11	5.32%	4.84	3.47%	-	-
- Deferred Tax	(0.20)	(0.08)%	(0.03)	(0.01)%	(0.0	(0.03)	-	-
					4)	%
Tax Expense For The Year	11.67	5.01%	19.08	5.31%	4.80	3.44	-	-
(GI						%
Profit after tax (H=F-G)	33.22	14.26%	54.30	15.13%	13.6	9.80	(0.1	-
					6	%	4)

Overview of Revenue and expenditure Revenue and Expenditure

Total Revenue: Our total revenue comprises of revenue from operations.

Revenue from operations: Our revenue from operations comprises of Sale of Product.

Expenses: Our expenses comprise of Cost of Operation, Employee Benefit Expenses, Finance Cost, Depreciation and Amortisation Expenses and Other Expenses.

Cost of Operation: Our Cost of Operation comprises of purchases and direct expenses.

Employee Benefit Expenses: Our employee benefit expense consists of Salaries, Wages & Bonus, Directors Remuneration, Keyman Insurance, Contribution to ESI, Contribution to EPF, Gratuity Expenses Current Year and Employee Welfare Expenses.

Finance Cost: Our finance costs comprise of Bank Charges, Interest on Loan and Loan Process Charges.

Depreciation and amortisation expenses: Tangible assets are depreciated over periods corresponding to their estimated useful lives. Depreciation includes depreciation charged on tangible assets.

Other expenses: Other expenses includes Advertisement Expenses, Auditors Remuneration, Carriage Outward, Preliminary Expenses Written off, Professional Tax, Office Expenses, Round off, Transportation Charges, Interest and Late Fees, Insurance Expenses, Legal and Professional Fees, Printing & Stationery, Rates and Taxes, Repairs and Maintenance, Accounting Charges, Telephone Expenses, Travelling and Conveyance Expenses and Other General Expenses.

Exceptional Items: There are no exceptional items.

Provision for Tax: Income taxes are accounted for in accordance with Accounting Standard - 22 on "Accounting for Taxes on Income" ("AS-22"), prescribed under the Companies (Accounting Standards) Rules, 2006. Our Company provides for current tax, as well as deferred tax, as applicable.

Provision for current taxes is made at the current tax rates after taking into consideration the benefits available to our Company under the provisions of the I. T. Act.

Deferred tax arises from the timing differences between book profits and taxable profits that originate in one period and are capable of reversal in one or more subsequent periods and is measured using the tax rates and laws applicable as of the date of the financial statements. Our Company provides for deferred tax asset / liability on such timing differences subject to prudent considerations in respect of deferred tax assets.

DISCUSSION OF PERIOD ENDED SEPTEMBER 30, 2023

Income

Our total revenue is ^232.96 Lakh for the period ended September 30, 2023 which comprises of Revenue from Operations. Revenue from operations

Our revenue from operations is ^232.96 Lakhs for the period ended September 30, 2023.

Other Income

There is no Other Income for the period ended September 30, 2023.

Expenses

Our total expenses excluding finance cost, depreciation and tax expenses is Rs. 181.34 Lakhs for the period ended September 30, 2023 due to the factors described below: -

Cost of Material Consumed

Our Cost of Material Consumed is Rs. 161.91 Lakhs for the period ended September 30, 2023 comprising of Purchase of Raw Material & Consumable and Other Manufacturing Expenses.

Employee benefits expenses

Our employee benefit expenses are ^5.53 Lakhs for the period ended September 30, 2023 comprising of Salaries and Wages, Directors Remuneration, Contribution to provident and other funds, Staff Welfare Expenses and Gratuity Expenses.

Finance costs

Our finance cost is Rs.0.03 Lakhs for the period ended September 30, 2023 comprising of Bank Charges.

Depreciation and amortization expense

Our depreciation for the period ended September 30, 2023 is Rs.6.69 Lakhs.

Other expenses

Our other expenses incurred during the period ended September 30, 2023 is Rs. 13.89 Lakhs which comprises of Advertisement Expenses, Auditors Remuneration, Carriage Outward, Professional Tax, Office Expenses, Interest and Late Fees, Insurance Expenses, Legal and Professional Fees, Printing & Stationery, Repairs and Maintenance, Accounting Charges, Travelling and Conveyance Expenses and Other General Expenses.

Exceptional Items

There are no exceptional items for the period ended September 30, 2023.

Profit before tax

Our profit before tax stands at Rs. 44.90 Lakhs for the period ended September 30, 2023.

Tax expenses

Our tax expenses for the period ended September 30, 2023 amounted to Rs. 11.67 Lakhs which includes current tax and deferred tax expenses.

Profit After Tax

Our profit after tax stands at Rs. 33.22 Lakhs for the period ended September 30, 2023.

COMPARISON OF FY 2022-23 WITH FY2021-22 Income

Our total revenue increased by Rs. 219.53 Lakhs or 157.47 % to ^358.94 Lakh for the financial year 2022-23 from ^139.41 Lakh for the financial year 2021-22 due to the factors described below:

Revenue from operations

Our revenue from operations is ^358.94 Lakhs for the financial year 2022-23 as compared to ^139.41 Lakhs for the financial year 2021-22 representing an incline of 157.47% on account of increase in expansion of business.

Other Income

There were no Other Income in Financial Year 2022-23 and 2021-22.

Expenses

Our total expenses excluding finance cost, depreciation and tax expenses is ^277.46 Lakhs for the financial year 2022-23 as compared to ^117.00 Lakhs for the financial year 2021-22 representing an increase of 137.14% due to the factors described below : -

Cost of Material Consumed

Our Total Cost of Material Consumed is ^236.57 Lakhs for the financial year 2022-23 as compared to ^103.57 Lakhs for the financial year 2021-22 representing an increase of 128.41% due to increase in our scale of operation.

Employee benefits expenses

Our employee benefit expenses are Rs.22.17 Lakhs for the financial year 2022-23 as compared to ^10.36 Lakhs for the financial year 2021-22 representing an increase of 113.96% due to increase in Salaries and Wages , Directors Remuneration, Contribution to Provident Fund and ESIC, Gratuity Expenses.

Finance costs

Our finance cost is Rs.0.54 Lakhs for the financial year 2022-23 as compared to Rs.0.01 Lakhs for the financial year 2021-22 representing an increase in Bank Charges.

Depreciation and amortization expense

Our depreciation increased by 92.14% to Rs.7.56 Lakhs for the financial year 2022-23 from Rs.3.94 Lakhs for the financial year 2021-22 due to Purchase and time proportion of assets.

Other expenses

Our other expenses increased by 509.59% to ^ 18.73 Lakhs for the financial year 2022-23 from Rs.3.07 Lakhs for the financial year 2021-22, which is 5.22% and 2.20% of the total revenue of respective years. The increase was mainly due to increase in Advertisement Expense, Office Expenses, Transportation Charges, Legal & Professional Fees, Printing & Stationery Expenses, Repairs and Maintenance, Accounting Charges, Travelling & Conveyance Expenses, Other General Expenses which was partially set off with Decrease in Expenses Written off, Professional Tax, Insurance Expenses, Rates & Taxes .

Profit before tax

Our profit before tax increased by 297.31% to ^73.37 Lakhs for the financial year 2022-23 from ^18.47 Lakhs for the financial year 2021-22. The increase was mainly due to the factors described above.

Tax expenses

Our tax expenses for the financial year 2022-23 amounted to ^19.08 Lakhs as against tax expenses of Rs.4.80 Lakhs for the financial year 2021-22. The net increase of ^14.27 is on account of increase in Current tax and Deferred Tax.

Profit After Tax

Our profit after tax increased by 297.34% to ^54.30 Lakhs for the financial year 2022-23 from ^13.66 Lakhs for the financial year 2021-22, reflecting a net increase of ^40.63 Lakhs due to aforementioned reasons.

COMPARISON OF FY 2021-22 WITH FY 2020-21

Income

There increase of ^ 139.41 Lakhs in Total Income in financial year 2021-22 as compared to no income in financial year 2020-21 due to the factors described below:

Revenue from operations

Our revenue from operations in financial year 2020-21 was Rs.0 Lakhs which was further increased to ^139.41 Lakhs in financial year 2021-22 due to expansion of business.

Other Income

There were no Other Income in both the years.

Expenses

Our total expenses excluding finance cost, depreciation and tax expenses is ^ 117.00 Lakhs for the financial year 2021-22 as compared to Rs.0.14 Lakhs for the financial year 2020-21 representing an increase of 85931.52% due to the factors described below:-

Cost of Material Consumed

Our Cost of material consumed is ^103.57 Lakhs for the financial year 2021-22 as compared to nil for the financial year 2020-21. The net increase of ^103.57 Lakhs was due to Increase in operations.

Employee benefits expenses

Our employee benefit expenses is ^10.36 Lakhs for the financial year 2021 -22 as compared to Rs.0 Lakhs for the financial year 2020-21 due to Increase Salaries & wages, Contribution to provident and ESIC, Gratuity Expenses, Directors Remuneration.

Finance costs

Our Finance Cost for financial year 2021-22 is Rs.0.01 Lakhs and 2020-21 is nil.

Depreciation and amortization expense

Our depreciation increased to Rs.3.94 Lakhs for the financial year 2021-22 from nil for the financial year 2020-21 due to Increase in Assets of the company.

Other expenses

Our other expenses increased by 2158.88% to Rs.3.07 Lakhs for the financial year 2021-22 from Rs.0.14 Lakhs for the financial year 2020-21. The increase was mainly due to increase in Advertisement Expense, Auditors Remuneration, Office Expenses, Professional Tax, Insurance Expenses, Legal & Professional Fees, Printing & Stationery Expenses, Rates and Taxes, Repairs and Maintenance, Accounting Charges, Telephone Expenses, Travelling & Conveyance Expenses, Other General Expenses.

Exceptional Items

There are no exceptional item of in the financial year 2020-21 & 2021-22.

Profit before tax

Our profit before tax increased by 13678.96% to ^18.47 Lakhs for the financial year 2021 -22 from Rs.(0.14) Lakhs for the financial year 2020-21. The increase was mainly due to the factors described above.

Tax expenses

Our tax expenses for the financial year 2021-22 amounted to Rs.4.80 Lakhs as against tax expenses of Rs.0 Lakhs for the financial year 2020-21. The net increase is on account of increase in Current tax and Deferred Tax.

Profit After Tax

Our profit after tax increased by 10147.71% to ^13.66 Lakhs for the financial year 2021 -22 from Rs.(0.14) Lakhs for the financial year 2020-21 due to aforementioned reasons.

Changes in Cash Flows

The table below summaries our cash flows from our Restated Financial Statements for the period ended September 30, 2023 and financial years ended March 31, 2023, 2022 and 2021:

Particulars	For the year ended September 30, 2023	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
Net cash (used in)/ generated from operating Activities	20.74	62.81	51.56	-
Net cash (used in)/ generated from investing Activities	(46.45)	(3.33)	(55.97)	-
Net cash (used in)/ generated from financing Activities	24.97	(0.74)	9.89	-
Net increase/ (decrease) in cash and cash Equivalents	(0.73)	58.73	5.48	-
Cash and Cash Equivalents at the beginning of the period	66.87	8.14	2.65	2.65
Cash and Cash Equivalents at the end of the Period	66.14	66.87	8.14	2.65

Operating Activities

Period ended September 30, 2023

Our net cash generated in operating activities was ^20.74 Lakhs for the period ended September 30, 2023. Our operating profit before working capital changes was ^51.63 Lakhs for the period ended September 30, 2023 which was primarily adjusted against increase in Inventories ^25.22, decrease in trade receivables by Rs.1.67 Lakhs, decrease in Short Term Loans & Advances Rs.4.49 Lakhs, increase in Other Current Assets by ^16.31 Lakhs, increase in Trade payable ^11.93 Lakhs, decrease in other current liabilities by Rs.1.06 Lakhs which was further decreased by payment of Income Tax of Rs.6.97 Lakhs.

Financial year 2022-23

Our net cash generated in operating activities was ^62.81 Lakhs for the period ended March 31, 2023. Our operating profit before working capital changes was ^81.49 Lakhs for the financial year 2022-23 which was primarily adjusted against increase in Inventories ^ 1.08, increase in trade receivables by ^15.04 Lakhs, increase in Short Term Loans & Advances Rs.19.55 Lakhs, increase in Other Current Assets by Rs.4.10 Lakhs, increase in Trade payable Rs.4.01 Lakhs, increase in other current liabilities by ^21.13 Lakhs which was further decreased by payment of Income Tax of Rs.4.68 Lakhs.

Financial year 2021-22

Our net generated used in operating activities was Rs. 51.56 Lakhs for the period ended March 31, 2022. Our operating profit before working capital changes was ^22.85 Lakhs for the financial year 2021 -22 which was primarily adjusted against increase in inventories by Rs.2.85 Lakhs, increase in trade receivables by ^ 135.87 Lakhs, increase in Short Term Loans & Advances by Rs. 0.02 Lakhs, increase in Other Current Assets by Rs.2.86 Lakhs, increase in trade payables by ^97.62 Lakhs, increase in other current liabilities by ^72.70 Lakhs.

Financial year 2020-21

Our net cash used in operating activities was Rs.0 Lakhs for the period ended March 31, 2021. Our operating profit before working capital changes was Rs.(0.06) Lakhs for the financial year 2020-21 which was primarily adjusted against increase in other current liabilities by Rs.0.06 Lakhs.

Investing Activities

Period ended September 30, 2023

Our net cash used from investing activities was ^(46.45) Lakhs for the period ending September 30, 2023. These were on account of Purchase of Property, Plant & Equipment of ^46.45 Lakhs

Financial year 2022-23

Our net cash used from investing activities was Rs.(3.33) Lakhs for the financial year 2022 -23. These were on account of Purchase of Property, Plant & Equipment of Rs.3.33 Lakhs

Financial year 2021-22

Our net cash used from investing activities was Rs.(55.97) Lakhs for the financial year 2021 -22. These were on account of Purchase of Property, Plant & Equipment of ^55.97 Lakhs.

Financial year 2020-21

There was no net cash from investing activities in financials in 2020-21

Financing Activities

Period ended September 30, 2023

Net cash used in financing activities for the period ending September 30, 2023 was ^24.97 Lakhs which was primarily on account of Finance cost Rs.(0.03) and Increase in Long Term Borrowings by ^25.00 Lakhs

Financial year 2022-23

Net cash used in financing activities for the financial year March 31, 2023 was Rs.0.74 Lakhs which was primarily on account of Finance cost Rs.0.54 Lakhs and repayment of Long-Term Borrowings of Rs.0.20 Lakhs.

Financial year 2021-22

Net cash used in financing activities for the financial year March 31, 2022 was Rs.9.89 Lakhs which was on account of Finance Cost of Rs.0.01 Lakhs and increase in Long Term Borrowings of Rs.9.90 Lakhs.

Financial year 2020-21

There was no net cash used in financing activities for the financial year March 31, 2021.

Other Key Ratios

The table below summaries key ratios in our Restated Financial Statements for the period ended September 30, 2023 and financial years ended March 31, 2023, 2022 and 2021:

Particulars	For the year ended September 30, 2023	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
Fixed Asset Turnover Ratio	2.66	7.51	2.68	-
Current Ratio	1.23	1.16	0.85	18.94
Debt Equity Ratio	0.34	0.14	0.63	0.08
Inventory Turnover Ratio	9.79	69.85	72.78	-

Fixed Asset Turnover Ratio: This is defined as revenue from operations divided by total fixed assets based on Financial Statements as Restated.

Current Ratio: This is defined as current assets divided by current liabilities, based on Financial Statements as Restated.

Debt Equity Ratio: This is defined as total debt divided by total shareholder funds. Total debt is the sum of long-term borrowings, short-term borrowings and current maturities of long-term debt, based on Financial Statements as Restated.

Inventory Turnover Ratio: This is defined as average inventory divided by cost of goods sold based on Financial Statements as restated.

Financial Indebtedness

As on September 30, 2023, the total outstanding borrowings of our Company is Rs. 34.90 Lakhs. For further details, refer to the chapter titled "Statement of Financial Indebtedness" beginning on page 153 of this Draft Prospectus.

Particulars	As at September 30, 2023
Loans from Banks & Financial Institutions	25.00
Unsecured Loans from directors	9.90
Total	34.90

Related Party Transactions

Related party transactions with our promoters, directors and their entities and relatives primarily relate to purchase and sale of products and services. For further information, please refer to the chapter titled "Financial Statements as Restated" on page 137 of this Draft Prospectus.

Off-Balance Sheet Items

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

Qualitative Disclosure about Market Risk

Financial Market Risks

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

Our financial results are subject to changes in interest rates, which may affect our debt service obligations and our access to funds.

Effect of Inflation

We are affected by inflation as it has an impact on the raw material cost, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

Credit Risk

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

Reservations, Qualifications and Adverse Remarks

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on page 137 of this Draft Prospectus, there have been no reservations, qualifications and adverse remarks.

Details of Default, if any, including therein the Amount Involved, Duration of Default and Present Status, in Repayment of Statutory Dues or Repayment of Debentures or Repayment of Deposits or Repayment of Loans from any Bank or Financial Institution.

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on 137 of this Draft Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

FACTORS THAT MAY AFFECT THE RESULTS OF THE OPERATIONS Unusual or infrequent events or transactions

There are no transactions or events, which in our best judgment, would be considered unusual or infrequent that have significantly affected operations of the Company.

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

There are no significant economic changes that materially affected Companys operations or are likely to affect income from continuing operations. Any slowdown in the growth of Indian economy or future volatility in global commodity prices, could affect the business including the future financial performance, shareholders funds and ability to implement strategy and the price of the Equity Shares.

Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations

Other than as disclosed in the chapter titled "Risk Factors"" beginning on 24 of this Draft Prospectus to our knowledge, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

Future changes in relationship between costs and revenues in case of events such as future increase in labour or material cost or prices that will cause material change

According to our knowledge, there are no future relationship between cost and income that would be expected to have a material adverse impact on our operations and revenues. However, increase in the cost of the goods in which the Company deals, will affect the profitability of the Company. Further, the Company may not be able to pass on the increase in prices of the services to the customers in full and this can be offset through cost reduction.

The extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased prices

The increase in revenue is by and large linked to increase in volume of all the activities carried out by the Company. Total turnover of each major industry segment in which the Issuer Company operates

The company is mainly engaged in the business specializing in the pretreatment, powder coating, wood coating & PVDF coating on Metals, majorly being aluminium extrusions. Relevant industry data, as available, has been included in the chapter titled "Industry Overview"" beginning on 82 of this Draft Prospectus.

Competitive Conditions

We have competition with Indian and international manufacturing companies and our results of operations could be affected by competition in the manufacturing industry in India and international market in the future. We expect competition to intensify due to possible new entrants in the market, existing competitors further expanding their operations and our entry into new markets where we may compete with well-established unorganized companies/ entities. This we believe may impact our financial condition and operations. For details, please refer to the chapter titled "Risk Factors" beginning on 24 of this Draft Prospectus.

Increase in income

Increases in our income are due to the factors described above in in this chapter under "Factors Affecting Our Results of Operations" and chapter titled "Risk Factors" beginning on 24 of this Draft Prospectus.

Status of any Publicly Announced New Business Segments

Except as disclosed elsewhere in the Draft Prospectus, we have not announced and do not expect to announce in the near future any new business segments.