Austere Systems Ltd Management Discussions

OPERATIONS

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

Our Company was incorporated as a Private Limited Company under the name "Austere Systems Private Limited" on under the provisions of the Companies Act, 2013 with the Registrar of Companies, Pune. Founded in 2015, our company specializes in an extensive array of services, including software development, Software as a Service (SaaS), mobile application development, information technology solutions, database management, IT-enabled services, training and development, web development, web and portal operations, e-commerce platforms, ERP and MIS solutions, Data Analytics and AI Services, Process automation, Digital Transformation as well as data and document management storage. We also engage in reselling software products and providing business process outsourcing and knowledge management solutions, alongside IT consulting and advisory services. Strategically, we focus on global and Indian clients in which we serve both private and in government sector, in which we serve the largely underserved rural markets in India—an area often overlooked by other IT firms. By forging collaborative partnerships with state governments and gram panchayats across various regions, we are dedicated to delivering customized IT solutions that effectively address the unique needs and challenges faced by these communities. Our Company is an AWS public partner to provide cloud services to our clients.

We have consistently grown in terms of our revenues In the past three (3) years our revenues from operation were Rs. 15,35,882.18 hundreds in F.Y. 2022-23, Rs. 18,56,571.23 hundreds in F.Y. 2023-24 and Rs. 18,62,051.23 hundreds in F.Y. 2024-25. Our Net Profit after tax for the above-mentioned periods were Rs. 1,76,984.12 hundreds, Rs. 4,14,526.71 hundreds and Rs. 4,01,325.53 hundreds respectively.

FINANCIAL KPIs OF THE COMPANY		Rs. In Hundreds
Particulars	For the	; year ended March 31,
	2025	2024	2023
Revenue from Operations (1)	18,62,051.23	18,56,571.23	15,35,882.18
Growth in Revenue from Operations (%)	0.30%	20.88%	NA
Total Income(2)	18,86,167.09	18,65,442.16	15,39,508.26
EBITDA (3)	6,04,777.88	6,28,023.44	2,87,516.14
EBITDA Margin (%)(4)	32.06%	33.67%	18.68%
Profit After Tax (5)	4,01,325.53	4,14,526.71	1,76,984.12
PAT Margin (%)(6)	21.55%	22.33%	11.52%
Net worth (7)	16,27,151.98	8,99,832.46	4,85,305.75
Return on Equity ("RoE") (%)(8)	31.76%	59.85%	44.33%
Return on Capital Employed("RoCE") (%)(9)	33.12%	60.05%	42.80%
Debt- Equity Ratio(10)	0.03	0.05	0.16

Notes

1. Revenue from Operations: This represents the income generated by the Company from its core operating operation. This gives information regarding the scale of operations.

2. Other Income is the income generated by the Company from its non core operations.

3. EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year /period and adding back interest cost, depreciation, and amortization expense.

4. EBITDA margin is calculated as EBITDA as a percentage of Total Income.

5. Profit for the year/period represents the restated profits of the Company after deducting all expenses.

6. PAT Margin (%) is calculated as Profit for the year/period as a percentage of Revenue from Operations.

7. Net worth is calculated as sum of share capital and reserves & surplus.

8. Return on Equity is calculated as Profit after tax, as restated, attributable to the owners of the Company for the year/ period divided by average equity. Average equity is calculated as average of opening and closing balance of total equity (Shareholders funds) for the year.

9. Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end ofrespective period/year. (Capital employed calculated as the aggregate value of tangible net worth, total debt and deferred tax liability)

10. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and shortterm borrowings. Total equity is the sum of share capital and reserves & surplus.

Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

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

2. Any change in government policies resulting in increases in taxes payable by us;

3. Increased competition in the industry in which we operate;

4. Ability to grow the business;

5. Changes in laws and regulations that apply to the industries in which we operate;

6. Companys ability to successfully implement its growth strategy and expansion plans;

7. Ability to keep pace with rapid changes in technology;

8. Ability to maintain relationships with domestic as well as foreign vendor

9. Inability to successfully obtain registrations in a timely manner or at all;

10. General economic, political, and other risks that are out of our control;

11. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

12. Any adverse outcome in the legal proceedings in which we are involved;

13. The performance of the financial markets in India and globally

Significant Developments after March 31, 2025 that may affect our Future Results of Operations

The Directors confirm that there have been no other events or circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus which materially or adversely affect or is likely to affect the business or profitability of our Company or the value of our assets, or our ability to pay liabilities within next twelve months.

i. Basis of preparation

The restated summary statement of assets and liabilities of the company as at March 31, 2025, March 31, 2024 and March 31, 2023 and the related restated summary statement of profit and loss and cash flows for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 (herein collectively referred to as ("Restated Summary Statements") have been compiled by the management from the audited financial statements of the company for the year ended on March, 2025, March 31, 2024 and March 31, 2023 approved by the Board of Directors of the Company. Restated Requirements)ents have been prepared to comply in all material respects with the provisions of Part 1 of Chapter III of the Companies Act , 2013 ("the Act") read with Companies (Prospectus and Allotment of securities) Rules, 2014 , Securities and Exchange Board of India ( Issue of Capital and Disclose Requirements ) Regulations, 2018 ("ICDR Regulation") issued by SEBI and Guidance note on Reports in Companies Prospectus (Revised 2019) ("Guidance Note"). Restated Summary Statements have been prepared specifically for inclusion in offer document to be filled by the Company with the exchange in connection with its proposed SME IPO. The Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act,2013 for the purpose of restated Summary Statements.

The financial statements of the company have been prepared to comply in all material respects with the Notified Accounting Standards by Companies Accounting Standards Rules, 2014 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company. The accounting policies in the preparation of financial statements are consistent with those followed in the previous year. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles in India.

All assets and liabilities have been classified as current and non-current as per the companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of the products and the time between the acquisition of assets for processing and realization in cash and cash equivalents, the company has determined its operating cycle as twelve months for the purpose of current noncurrent classification of assets and liabilities.

ii. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates. Differences between actual amounts and estimates are recognized in the period in which they materialize.

iii. Property, Plant & Equipment and depreciation

(i) Property, Plant & Equipment are stated at cost of acquisition or construction, net of impairment loss if any, less depreciation/ amortization. Assessment of indication of impairment of an asset is made at the year end and impairment loss, if any, recognized. Intangible assets are stated at cost less accumulated depreciation.

(ii) Depreciation/Amortization:

a) Depreciation on Property, Plant & Equipment is provided on the written down method at the rates specified in Schedule II to the Companies Act, 2013.

(iii) Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the Company measures its value in use on the basis of undiscounted cash flows of next five years projections estimated based on current prices.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

The following useful lives are applied:

Asset category	Useful life
Land	Treated as Freehold Land
Buildings :
- Factory Buildings	30 Years
- Building (other than factory buildings)	30 Years
Plant and Equipment including Project tools	5- 15 Years
Furniture and Fittings	10 Years
Motor Vehicles
- Hire Purchase & Owned	08 Years
Office Equipment	05 Years
Computers
- Servers and networks	03 - 06 Years
- End user devices viz. desktops, laptops, etc.	03 Years

Intangible Assets:

Intangible assets with finite useful life are stated at cost of acquisition, less accumulated depreciation/ amortization and impairment loss, if any. The cost of Intangible Assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities). Computer software held for use for business purpose is amortised over an estimated useful life or the period of licenses, whichever is lower Estimated useful lives of the finite-life intangible assets are as follows:

Assets	Useful Life
Computer Software	3 years
Trade Name, patterns, designs and other commercial rights.	10 years

Capital work in progress is stated at cost less impairment losses, if any. Cost comprises of expenditures

incurred in respect of capital projects under development and includes any attributable / allocable cost and other incidental expenses. Revenues earned, if any, from such capital project before capitalization are adjusted against the capital work in progress.

iv. Investments

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis. Current investments are carried at cost or fair value whichever is lower. The company has followed category wise evaluation of cost VS fair value of investments. Provision of diminution in the value of investments has been recorded wherever there is decline in fair value of investments.

Profit or loss on sale of investments is determined as difference between the sale price and the carrying value of investments, determined individually for each investment. Cost of investment sold is arrived using average method

v. Cash and cash equivalents

Cash and cash equivalents include cash in hand, bank balances in saving/current accounts and demand deposits with original maturities if three months or less.

Cash Flow Statement:- Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

vi. Foreign Currency Transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

Conversion

Foreign currency monetary items are reported using the closing rate.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting companys monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as Expenses in the year in which they arise.

vii. Revenue Recognition

Revenue is recognized on accrual basis. Income is not reckoned unless there is a reasonable certainty of the realization thereof.

(i) Sale of services at the time when services are rendered, consideration may be received at the time of rendering of services or in future.

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

viii. Retirement benefits

Employee benefits include provident fund, employee state insurance scheme and gratuity. Employee benefits such as salaries, allowances, provident fund and other funds, which fall due for payment within a period of twelve months after rendering service, are charged as expense in the Statement of Profit and Loss in the period in which the service is rendered. Leave encashment and Gratuity liability is accounted for on accrual basis as per actuarial valuation.

ix. Income and Deferred Taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes- down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it becomes reasonably certain that sufficient future taxable income will be available.

x. Earnings per share

i. Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

ii. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares, if any.

xi. Contingencies and Events Occurring after the Balance Sheet Date

Accounting for contingencies (gains or losses) arising out of contractual obligations are made on the basis of mutual acceptance. Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts, wherever material.

xii. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of any Qualifying Asset are capitalized

as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

Interest on borrowings is recognized on a tie proportion basis taking into account the amount outstanding and the rate applicable on the borrowings.

xiii. Provisions and Contingent Liability

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past event, 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 the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. Contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements

xiv. Cost of purchase and accounting for Input Tax Credit:

Cost of raw materials, consumable Stores and fixed assets purchased is accounted for in the books of account net of available Input Tax Credit of Goods and Service Tax and other taxes, if any as per Provisions of Law.

RESULTS OF OUR OPERATIONS

Particulars	For the year ended 31st March, 2025	% of Total**	For the year ended 31st March, 2024	% of Total**	For the year ended 31st March, 2023	% of Total**
Revenue
I. Revenue from operations	18,62,051.23	98.72%	18,56,571.23	99.52%	15,35,882.18	99.76%
II. Other income	24,115.86	1.28%	8,870.93	0.48%	3,626.08	0.24%
III. Total Income (I+II)	18,86,167.09	100.00%	18,65,442.16	100.00%	15,39,508.26	100.00%
IV. Expenses:
(a) Employee benefits expense	5,39,788.68	28.62%	5,98,263.74	32.07%	5,16,383.36	33.54%
(b) Finance costs	15,221.69	0.81%	9,681.50	0.52%	2,437.87	0.16%
(c) Depreciation and Amortization expense	51,295.65	2.72%	65,853.82	3.53%	49,191.85	3.20%
(d) Other expenses	7,41,491.07	39.31%	6,37,404.59	34.17%	7,34,888.80	47.74%
Total expenditure	13,47,797.09	71.46%	13,11,203.65	70.29%	13,02,901.88	84.63%
V. Profit before tax (III-IV)	5,38,370.00	28.54%	5,54,238.51	29.71%	2,36,606.39	15.37%
VI. Tax expense:
(i) Current tax	1,44,576.79	7.67%	1,44,424.35	7.74%	62,999.69	4.09%
(ii) Deferred tax	(4,800.29)	(0.25%)	(4,712.55)	(0.25%)	(3,377.42)	(0.22%)
(iii) Income Tax Earlier Year	(2,732.02)	(0.14%)	-	-	-	-
Net tax expense / (benefit)	1,37,044.47	7.27%	1,39,711.80	7.49%	59,622.27	3.87%
VII. Profit after tax for the year (V-VI)	4,01,325.53	21.28%	4,14,526.71	22.22%	1,76,984.12	11.50%

**Total refers to Total Revenue

Components of our Profit and Loss Account Income

Our total income comprises of revenue from operations and other income.

Revenue from Operations

The Revenue from operations as a percentage of our total income was 98.72%, 99.52% and 99.76% for the Financial Years ended March 31, 2025, March 31, 2024, and March 31, 2023 respectively.

(Amount Rs. in hundreds)

Particulars	Year ended 31 March 2025	Year ended 31 March 2024	Year ended 31 March 2023
Sale of goods	-	-	-
Sale of services	18,62,051.23	18,56,571.23	15,35,882.18
TOTAL	18,62,051.23	18,56,571.23	15,35,882.18

Other Income

Our other Income consists of interest income and Misc Income.

Particulars	Year ended 31 March 2025	Year ended 31 March 2024	Year ended 31 March 2023
Interest income
-From Deposits	5,865.37	2,278.71	601.96
-From others	-	1,292.22	1,169.24
Gain on reversal of leave encashment expense	-	1,837.18	-
Other Income	18,250.49	3,462.82	1,854.88
TOTAL	24,115.86	8,870.93	3,626.08

Expenditure

Our total expenditure primarily consists of employee benefit expenses, finance costs, Depreciation & Amortisation expense and Other Expenses.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries and wages, Staff Welfare, Contribution to provident fund and ESIC and Gratuity and Leave encashment expense.

Finance costs

Our Finance cost expenses comprise of Interest Expenses and Bank charges.

Other Expenses

Other expenses primarily comprise of Audit Fees, Conveyance and Travelling, Insurance expense, Legal expense, Professional expenses, Web Hosting & IT Charges, Miscellaneous expense, Office expenses and Rent expenses.

(Amount Rs. in hundreds)

Particulars	Year ended	Year ended	Year ended
	31 March 2025	31 March 2024	31 March 2023
Advertisement and Business promotion expenses	-	110.40	421.71
Audit Fees	4,293.00	3,093.00	3,630.00
Bad Debts	100.00	352.82	-
Car Running & maintenance Expenses	1,672.29	2,812.48	1,094.34
Brokerage Charges	1,300.00	-	-
Conveyance and Travelling	11,135.77	21,605.01	16,197.26
Courier Expenses	111.88	127.68	71.88
Fees and subscription	4,459.76	379.52	119.78
Foreign Exchange Gain/Loss	192.91	486.80	-
Insurance expense	7,504.95	11,648.49	5,328.78
Legal expenses	856.80	532.30	-
Professional expenses	5,26,780.86	4,94,102.76	5,95,632.42
Office expenses	5,259.77	6,267.24	6,529.59
Printing and Stationery	2,526.61	357.34	464.52
Rates and taxes	2,944.18	1,941.03	22,758.18
Rent	54,682.18	12,006.00	13,165.51
Telephone expenses	2,781.31	3,350.32	4,605.84
Corporate Social Responsibility (CSR) Expense	7,500.00	-	-
Water and electricity expenses	6,275.03	5,338.62	5,812.79
Web Hosting & IT Charges	82,664.24	56,874.48	30,215.72
Repairs & maintenance expenses	13,662.66	10,928.65	8,812.67
Internet Expenses	3,350.00	1,080.86	992.72
Power & Fuel	1,380.00	-	-
Miscellaneous expense	56.84	4,008.78	19,035.11
Total	7,41,491.07	6,37,404.59	7,34,888.80

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

Fiscal 2025 compared with Fiscal 2024

Income:-

• Revenue from Operations

The Revenue from Operations of our company for Fiscal year 2025 was t 18,62,051.23 hundreds against t 18,56,571.23 hundreds Revenue from Operations for Fiscal year 2024. An increase of 0.30% in revenue from operations. This increase was due to more workflow from existing clients and acquisitions of new clients.

• Other Income

The other income of our company for Fiscal year 2025 was t 24,115.86 hundreds against t 8,870.93 for Fiscal year 2024. The increase of 171.85% in other income. This constitutes interest income from deposits, liabilities no longer payable and rental income. The increase was due to addition of rental income during the year.

• Total Income

The total income of the company for Fiscal year 2025 was t 18,86,167.09 hundreds against t 18,65,442.16 hundreds of total income for Fiscal year 2024 with an increase of 1.11% in total income. This increase was due to the reasons mentioned for increase in revenue and other income.

Expenditures

• Employee Benefit Expenses

In Fiscal 2025, the Company incurred employee benefit expenses t 5,39,788.68 hundreds against t 5,98,263.74 hundreds expenses in Fiscal 2024. A decrease of 9.77%. This decrease was due to minor decrease in the number of employees.

• Finance Costs

The finance costs for the Fiscal 2025 were t 15,221.69 hundreds while it was t 9,681.50 hundreds for Fiscal 2024. An increase of 57.22%. This increase was due to interest on statutory dues incurred during the year.

• Other Expenses

In Fiscal 2025, our other expenses were t 7,41,491.07 hundreds and t 6,37,404.59 hundreds in Fiscal 2024. The increase of 16.33%. This increase was due to a increase in professional fees paid to consultants during the year.

• Profit before Tax

Our Company had reported a profit before tax for the Fiscal 2025 of t 5,38,370.00 hundreds against profit before tax of t 5,54,238.51 hundreds in Fiscal 2024. A decrease of 2.86%. This decrease was due to increase in finance cost and increase in other expenses.

• Profit after Tax

Profit after tax for the Fiscal 2025 were at t 4,01,325.53 hundreds against profit after tax of t 4,14,526.71 hundreds in Fiscal 2024. A decrease of 3.18%. This decrease was due to increase in finance cost and increase in other expenses.

Fiscal 2024 compared with Fiscal 2023 Income:

• Revenue from Operations

The Revenue from Operations of our company for Fiscal year 2024 was t 18,56,571.23 hundreds against t 15,35,882.18 hundreds Revenue from Operations for Fiscal year 2023. An increase of 20.88% in revenue from operations. This increase was due to increase in revenue from existing clients and acquiring new clients.

• Other Income

The other income of our company for Fiscal year 2024 was t 8,870.93 hundreds against t 3,626.08 for Fiscal year 2023. The increase of 144.64% in other income. This constitutes interest income from deposits and liabilities reversed. The increase was due to liabilities were reversed this year and increase in deposits.

• Total Income

The total income of the company for fiscal year 2024 was Rs. 18,65,442.16 hundreds against Rs. 15,39,508.26 hundreds of total income for Fiscal year 2023 with an increase of 21.17% in total income. This increase was due to the reasons mentioned for increase in revenue and other income.

Expenditure:

• Employee Benefit Expenses

In Fiscal 2024, the Company incurred employee benefit expenses Rs. 5,98,263.74 hundreds against Rs. 5,16,383.36 hundreds of employee benefit expenses in fiscal 2023. An increase of 15.86%. This increase was due to increase in annual salaries even though number of employees slightly reduced.

• Finance Costs

The finance costs for the Fiscal 2024 were Rs. 9,681.50 hundreds while it was Rs. 2,437.87 hundreds for Fiscal 2023. An increase of 297.13%. This increase was due to increase in short term and long-term borrowings during FY2023.

• Other Expenses

In Fiscal 2024, our other expenses were Rs. 6,37,404.59 hundreds and Rs. 7,34,888.80 hundreds in Fiscal 2023. The decrease of 13.27%. This decrease was due to a significant decrease in consulting expenses.

• Profit before Tax

Our Company had reported a profit before tax for the Fiscal 2024 of Rs. 5,54,238.51 hundreds against profit before tax of Rs. 2,36,606.39 hundreds in Fiscal 2023. An increase of 134.24%. This increase was due to better efficiency achieved as a result of internal research.

• Profit after Tax

Profit after tax for the Fiscal 2024 were at Rs. 4,14,526.71 hundreds against profit after tax of Rs. 1,76,984.12 hundreds in Fiscal 2023. An increase of 134.22%. This increase was due to increase in operational efficiency and increase in revenue.

Cash Flows

(Amount Rs. in hundreds)

Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
Net Cash Flow from / (used in) Operating Activities	51,114.14	2,72,830.38	(599.26)
Net Cash Flow from / (used in) Investing Activities	23,799.43	(13,117.03)	(1,08,593.15)
Net Cash Flow from / (used in) Financing Activities	3,26,322.83	(42,668.19)	76,576.35

Cash Flows from Operating Activities

1. For the year ended March 31, 2025, net cash flow from operating activities was Rs. 51,114.14 hundreds. This comprised of the net profit before tax of Rs. 5,38,370.00 hundreds, which was primarily adjusted for Interest Cost of Rs. 3,649.01 hundreds, Gratuity Expenses of Rs. 14,306.69 hundreds, Interest Income of Rs. 5,865.37 hundreds, Depreciation and Amortisation Expense of Rs. 51,295.65 hundreds, Liabilities written back of Rs. 8,733.59 hundreds, Unrealised Foreign Exchange Gain of Rs. 72.09 hundreds, GST expense of Rs. 562.64 hundreds, bad debts of Rs. 100.00

hundreds and Reversal of leave encashment by Rs. 4,390.08 hundreds. The resultant operating profit before working capital changes was Rs. 5,89,222.86 Hundreds, which was primarily adjusted for an increase in Non Current Assets of Rs. 52,090.93 hundreds, Trade receivables of Rs. 1,97,201.46 hundreds, Other Current Assets and advances of Rs. 48,030.69 hundreds, Other Non current Liabilities of Rs.5,345.70, Provisions of Rs. 1,844.01 hundreds and decrease in Trade Payables of Rs. 24,356.30 hundreds and other current liabilities of Rs. 64,935.92 hundreds.

Cash Generated from Operations was Rs. 2,09,797.27 hundreds which was reduced by Income tax paid for Rs. 1,58,683.13 hundreds resulting into net cash flow from operating activities of Rs. 51,114.14 hundreds.

2. For the year ended March 31, 2024, net cash flow generated from operating activities was Rs. 2,72,830.38 hundreds. This comprised of the net profit before tax of Rs. 5,54,238.51 hundreds, which was primarily adjusted for Interest Cost of Rs. 7,232.10 hundreds, Gratuity Expenses of Rs. 594.39 hundreds, Interest Income of Rs. 3,570.93 hundreds, Depreciation and Amortisation Expense of Rs. 65,853.82 hundreds, Liabilities written back of Rs. 2,620.50 hundreds, Unrealised Foreign Exchange Gain of Rs. 1,437.78 hundreds, Bad debts of Rs. 352.82 hundreds and Reversal of Leave encashment by Rs. 1,837.18 hundreds. The resultant operating profit before working capital changes was Rs. 6,18,805.26 Hundreds, which was primarily adjusted for an increase in Trade Receivables of Rs. 2,27,851.52 hundreds, Other Non Current Assets of Rs. 5,767.79 hundreds, Provisions of Rs. 2,403.64 hundreds, and decrease in other current assets and advances of Rs. 8,077.58 hundreds, Trade Payables of Rs. 21,695.66 hundreds and Other current liabilities of Rs. 3,196.98 hundreds.

Cash Generated from Operations was Rs. 3,70,774.52 hundreds which was reduced by Income tax paid for Rs. 97,994.14 hundreds resulting into net cash flow from operating activities of Rs. 2,72,830.38 hundreds.

3. For the year ended March 31, 2023, net cash used in operating activities was Rs. 599.26 hundreds. This comprised of the net profit before tax of Rs. 2,36,606.39 hundreds, which was primarily adjusted for Interest Cost of Rs. 1,618.88 hundreds, Gratuity Expenses of Rs. 4,825.14 hundreds, Interest Income of Rs. 1,771.20 hundreds, Depreciation and Amortisation Expense of Rs. 49,191.85 hundreds, Liabilities written back of Rs. 87.84 hundreds, Unrealised Foreign Exchange Gain of Rs. 661.30 hundreds and GST Expense of Rs. 6,317.90 hundreds. The resultant operating profit before working capital changes was Rs. 2,96,039.81 hundreds, which was primarily adjusted for an increase in Trade Receivables of Rs. 2,96,280.73 hundreds, Other non current assets of Rs. 10,111.24 hundreds, other current assets and advances of Rs. 16,668.49 hundreds, Trade Payables of Rs. 28,057.87 hundreds, Other Current Liabilites of Rs. 70,728.46 hundreds and decrease in provisions of Rs. 3,995.90 hundreds.

Cash Generated from Operations was Rs. 67,769.80 hundreds which was reduced by Income tax paid for Rs. 68,369.05 hundreds resulting into net cash used in operating activities of Rs. 599.26 hundreds.

Cash Flows from Investment Activities

1. In FY 2025, net cash generated from investing activities was Rs. 23,799.43 hundreds, which primarily comprised of cash used for Purchase of property, plant & equipment and intangible assets of Rs. 18,565.48 hundreds, proceeds from Loans and advances of Rs. 38,934.03 hundreds and Interest income of Rs. 3,430.88 hundreds.

2. In FY 2024, net cash used in investing activities was Rs. 13,117.03 hundreds, which primarily comprised of cash used for Purchase of property, plant & equipment and intangible assets of 15,450.25 hundreds, proceeds from Loans and advances of Rs. 54.51 hundreds and Interest income of Rs. 2,278.71 hundreds.

3. In FY 2023, net cash used in investing activities was Rs. 1,08,593.15 hundreds, which primarily comprised of cash used for Purchase of property, plant & equipment and intangible assets of Rs. 1,09,195.11 hundreds and Interest income of Rs. 601.96 hundreds.

Cash Flows from Financing Activities

1. In FY 2025, net cash generated from financing activities was Rs. 3,26,322.83 hundreds, which primarily comprised of Proceeds from Issue of share capital of Rs. 3,25,993.99 hundreds, Proceeds from borrowings Rs. 17,980.74 hundreds, Repayment of borrowings of Rs. 14,002.89 hundreds and Interest paid of Rs. 3,649.01 hundreds.

2. In FY 2024, net cash used in financing activities was Rs. 42,668.19 hundreds, which primarily comprised of cash used for Repayment of borrowings of Rs. 35,436.08 hundreds and Interest paid of Rs. 7,232.10 hundreds.

3. In FY 2023, net cash flow from financing activities was Rs. 76,576.35 hundreds, which primarily comprised of cash used for Interest paid of Rs. 1,618.88 hundreds and proceeds from borrowings taken of Rs. 78,195.23 hundreds.

1. Unusual or infrequent events or transactions

Except COVID-19 or any such kind of pandemic and as described in this 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

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations," beginning on Page 154 and 159 respectively of this Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

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

Apart from the risks as disclosed under Chapter titled "Risk Factors" beginning on page no. 32 in this 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, both of the end products/services as well as the raw materials, 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.

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

6. Total turnover of each major industry segment in which the issuer company operated.

Relevant Industry data and, as available, has been included in the chapter titled "Industry Overview" beginning on page no. 93 of this Red Herring Prospectus.

7. Status of any publicly announced new products or business segment.

Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Red Herring Prospectus

8. The extent to which business is seasonal.

Our business does not depend to a certain extent on the seasonal, environmental and climate changes. Hence, our business is not seasonal in nature.

9. 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 chapter titles "Business Overview" beginning on page no. 100 of this Red Herring Prospectus