Avana Electrosystems Ltd Management Discussions

RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 209 of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.

You should read the following discussion of our financial condition and results of operations together with our Restated Financial Statements included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page no. 31 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Avana Electrosystems Ltd., our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 included in this Draft Red Herring Prospectus beginning on page no. 209.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" 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 in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

BUSINESS OVERVIEW

Our Company was incorporated as a private limited company under the name and style of ‘Avana Electrosystems Private Limited under the Companies Act, 1956, pursuant to a certificate of incorporation dated July 16, 2010 issued by the Deputy Registrar of Companies, Karnataka (RoC). Pursuant to a special resolution passed by our Shareholders in the Extra Ordinary General Meeting held on December 09, 2024. our Company has been converted into a public limited company and the name of our Company was changed to ‘Avana Electrosystems Limited and a fresh certificate of incorporation dated December 17, 2024 has been issued to our Company by the Central Processing Centre. The Corporate Identification Number of our Company is: U31400KA2010PLC054508.

Our Company is promoted by Anantharamaiah Panish, Gururaj Dambal, S Vinod Kumar and K N Sreenath, each of whom has an experience of over two decades.

Broadly, we are engaged in the manufacturing of:

A. Control and Relay Panels, and B. Relays

We are a manufacturer of customised Control and Relay Panels ranging from 11kv to 220kv for Power System Monitoring, Control and Protection Applications Transmission Lines, Power Transformers, Bus Bar, Capacitor Bank, etc, for both indoor and outdoor usage, MV and LV Panels, Protection Relays and Substation Automation Systems. These panels are used across various sectors and industries to facilitate the transmission and distribution of electrical power such as in solar power plants, wind power farms, other power generation plants, power transmission stations, electricity board substations, power utilities companies etc.

We also manufacture relays, which is a device used in electrical systems to detect faults and protect equipment by analysing electrical parameters and executing protective actions.

We are an ISO 9001:2015 certified company.

For further details, please refer chapter titled "Our Business" beginning on page 140 of this Draft Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD i.e., MARCH 31, 2025

In the opinion of the Board of Directors of our Company, except as stated below, there have not occurred any significant development since the date of the last audited period, 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 next twelve months.

The Board of Directors of our Company have approved vide resolution dated August 19, 2025, to issue and allot 1,66,75,344 Bonus Equity shares of Face Value of 10/- in the ratio of 21:1.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 31, of this Draft Red Herring Prospectus. Our Companys future results of operations could be affected potentially by the following factors:

1. The facility on which we intend to set up our new unit and for which the IPO proceeds is proposed to be used is subject to certain conditions and in case we fail to meet these stipulated conditions, we may lose the right to utilise the land and this could have an adverse negative impact on our business and financial condition.

2. We are subject to strict quality requirements and any product defect issues or failure by us or our raw material suppliers to comply with quality standards may lead to the cancellation of existing and future orders and recalls.

3. Demand for our Relays and our Control and Relay Panels business is dependent on growth in the power generation, transmission and distribution industry & infrastructure, that may contribute to fluctuations in our results of operations and financial condition.

4. We depend on the State-Owned Power Distribution Companies, EPC service providers and public utilities for selling of our products which may affect our revenue from operation and profits.

5. Our Company has not yet awarded the civil work contract for the proposed new manufacturing facility and any delay in awarding the civil work contract may result in time and cost overruns, and may affect our profitability.

6. Product designing is very important part for our equipment for which we rely on our team. Any loss or error by these employees may have an adverse effect on our equipment and operations.

SIGNIFICANT ACCOUNTING POLICIES

For significant accounting policies please refer Significant Accounting Policies, "Annexure VII" beginning under

"Restated Financial Statements" on page 209 of this Draft Red Herring Prospectus. Set out below are a few key performance indicators:

Financial Key Performance Indicators of our Company

		For the financial year ended March 31,
Particulars	Units	2025	2024	2023
Revenue from Operations(1)	( in lakhs)	6,148.58	5,298.77	2,840.65
Growth in Revenue from Operations(2)	(YoY%)	16.04%	86.53%	36.66%
Gross Profit(3)	( in lakhs)	2,939.28	2,054.99	1,216.13
Gross Profit Margin(4)	(%)	47.80%	38.78%	42.81%
EBITDA(5)	( in lakhs)	1,251.96	741.97	192.04
EBITDA Margin(6)	(%)	20.36%	14.00%	6.76%
Profit After Tax(7)	( in lakhs)	831.23	402.41	92.29
PAT Margin(8)	(%)	13.52%	7.59%	3.25%
RoCE(9)	(%)	53.71%	40.02%	15.31%
RoE(10)	(%)	47.11%	35.07%	10.25%
Return on Assets(11)	(%)	19.00%	12.09%	3.80%
Operating Cash Flows(12)	( in lakhs)	676.66	94.77	(31.75)
Net Fixed Asset Turnover(13)	(in times)	17.90	18.67	14.39

The above figures have been certified by our Statutory Auditors Vasanth & Co., Chartered Accountants pursuant to their Certificate dated September 19, 2025.

Notes:

(1) Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

(2) Growth in revenue from operations(yoy%) is calculated by subtracting the previous periods revenue from the current periods revenue, and then dividing that number by the previous periods revenue

(3) Gross Profit is the Revenue from Operations of the Company as reduced by the cost of materials consumed and Changes in Inventories of finished goods, work in progress and stock-in-trade (4) Gross Profit Margin (%) is Gross Profit divided by Revenue from Operations (5) EBITDA is calculated as Profit before tax + Depreciation + Interest Cost - Other Income (6) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations (7) Profit After Tax (PAT) is calculated as Profit before tax Tax Expenses.

(8) PAT Margin is calculated as PAT for the year divided by revenue from operations.

(9) Return on Capital Employed (ROCE) is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus long-term borrowings deducted by intangible assets.

(10) Return on Equity (ROE) is ratio of Profit after Tax and average Shareholder Equity

(11) Return on Assets (ROA) is equal to PAT / average total assets deployed wherein average total assets deployed = (Opening total assets + Closing total assets)/2 (12) Operating cash flow is extracted from Cash Flow Statement in Restated Financial Statements (13) Net Fixed Asset Turnover is equal to net revenue from operations/average fixed assets wherein average fixed assets = (Opening fixed assets + Closing fixed assets)/2

DETAILS OF THE REVENUE RECOGNITION METHOD ADOPTED BY THE ISSUER AND ITS BASIC PARAMETERS

Revenue is generally recognized when all significant contractual obligations have been satisfied and collection of the resulting receivable is reasonably assured. Revenue from Sale of products is recognized when the risks and rewards of ownership are passed on to the customers, generally, at the time of delivery and acceptance and after consideration of all the terms and conditions of the customer contract. The Company reports revenues net of taxes. Interest is recognized using the time-proportion method, based on rates implicit in the transaction.

COMPONENTS OF INCOME AND EXPENDITURE

Total Income

Our total income is divided into

Revenue from operations: Revenue from operations consists of Sale of Products and Sale of Services wherein Sale of Products comprises of Domestic Sales

Other income: Other income consists of Interest on Term Deposits against BG and LC and other non-recurring income.

Total Expenses

Our total expenses comprise of -

Cost of materials consumed;

Changes in Inventories of finished goods;

Work-in-progress;

Stock-in-Trade;

Employee benefits expenses;

Finance costs;

Depreciation and amortisation expense; and

Other expenses.

Cost of materials consumed

Cost of materials consumed includes opening stock of raw material plus purchase of raw materials and consumables less closing stock of raw materials.

Changes in Inventories of finished goods, work-in-progress and Stock-in-Trade

It includes Changes in inventories of finished goods and work in progress, wherein closing stock of inventories of finished goods and WIP is deducted by opening stock of inventories of finished goods and WIP.

Employee benefits expenses

Employee benefits expenses comprise of Salaries & wages, Leave encashment, Staff Welfare Expenses, Contributions to Gratuity Fund and Labour Welfare Fund.

Finance Costs

Finance costs include Interest Expenses (including Interest on OD and Interest on Term Loan) and Other Charges (including L C Interest & Discounting charges and Bank Charges).

Depreciation and Amortization Expenses

Depreciation and amortization expenses comprise of Depreciation on property, plant & equipment, and Amortization of intangible assets.

Other Expenses

Other expenses include

Selling & Distribution Expenses like - Marketing, Consultancy & Exhibition Charges, Clearing, Forwarding & Freight and Sales Promotion Expenses; and

Operating, Administrative & Other Expenses like Labour Charges, Legal & Professional Charges, Installation

& Commissioning Charges, Warranty Expenses, Travelling Expenses, Security Service Charges, Power & Electricity, Insurance Expenses, Rental Expenses, Liquidated Damage Charges, Rates & Taxes, Conveyance Expenses, Repairs & Maintenance, Office Maintenance, Communication Expenses, Printing & Stationery, CSR Contribution and Bad Debts written off.

RESULTS OF OPERATION

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023.

Particulars	Fiscal 2025 ( )	% of Total Income	Fiscal 2024 ( )	% of Total Income	Fiscal 2023 ( )	% of Total Income
A. Revenue
Revenue from
	6,148.58	97.70%	5,298.77	99.50%	2,840.65	99.38%
Operations
Other Income	144.81	2.30%	26.80	0.50%	17.86	0.62%
Total Income	6,293.39	100.00%	5,325.57	100.00%	2,858.51	100.00%
B. Expenses
Cost of materials consumed	3,311.35	52.62%	3,262.81	61.27%	1,842.12	64.44%
Changes in Inventories of finished goods, work- in-progress and Stock-in-Trade	(102.06)	(1.62)%	(19.03)	(0.36)%	(217.61)	(7.61)%
Employee benefits expense	886.46	14.09%	588.70	11.05%	477.37	16.70%
Finance costs	91.25	1.45%	111.19	2.09%	80.29	2.81%
Depreciation and Amortisation	75.63	1.20%	35.00	0.66%	12.16	0.43%
Expense
Other Expenses	800.87	12.73%	724.33	13.60%	546.72	19.13%
Total Expenses	5,063.50	80.46%	4,702.99	88.31%	2,741.05	95.89%
Profit Before
Exceptional and Extraordinary	1,229.88	19.54%	622.58	11.69%	117.46	4.11%
Items and Tax
Exceptional Items	0.00	0.00%	0.00	0.00%	0.00	0.00%
Profit Before
Extraordinary	1,229.88	19.54%	622.58	11.69%	117.46	4.11%
Items and Tax
Extraordinary Items	0.00	0.00%	0.00	0.00%	0.00	0.00%
Profit Before Tax	1,229.88	19.54%	622.58	11.69%	117.46	4.11%
Tax Expense:
(1) Current tax	325.70	5.18%	163.95	3.08%	31.10	1.09%
(2) Current tax expense relating to prior years	(0.82)	(0.01)%	0.00	0.00%	0.00	0.00%
(3) Deferred tax	(2.24)	(0.04)%	19.67	0.37%	(6.19)	(0.22)%
Prior Period Items
Gratuity and leave encashment adjustment	76.02	1.21%	36.55	0.69%	0.26	0.01%
Profit/(Loss) for the period	831.23	13.21%	402.41	7.56%	92.29	3.23%

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2025 WITH FINANCIAL YEAR ENDED MARCH 31, 2024.

Components of Balance Sheet

Particulars	Fiscal 2025	Fiscal 2024	Increase/Decrease	% increase/decrease
Long-term Borrowings	126.16	291.55	(165.39)	(56.73)%
Short Term Borrowings	442.35	635.75	(193.39)	(30.42)%
Trade Payables	927.17	676.29	250.88	37.10%
Other Current Liabilities	463.50	317.71	145.79	45.89%
Short-term Provisions	802.93	537.35	265.58	49.42%
Property, Plant and Equipment	317.26	369.66	(52.40)	(14.17)%
Inventories	1470.95	1193.31	277.64	23.27%
Trade Receivables	2119.08	1483.64	635.44	42.83%
Cash and Cash Equivalents	530.71	378.33	152.38	40.28%
Short-term Loans and Advances	358.15	246.17	111.98	45.49%
Other Current Assets	96.35	57.17	39.18	68.53%

Long-Term Borrowings

Long-Term Borrowings have decreased by 56.73% from 291.55 lakhs in FY 2024 to 126.16 lakhs in FY 2025. The decrease was primarily due to repayment of term loans during FY 2025.

Short-Term Borrowings

Short-Term Borrowings have decreased by 30.42% from 635.75 lakhs in FY 2024 to 442.35 lakhs in FY 2025. This decline is because of less utilisation of working capital limit by the Company.

Trade Payables

Trade Payables have increased by 37.10% from 676.29 lakhs in FY 2024 to 927.17 lakhs in FY 2025. Payables to other creditors increased substantially due to higher procurement volumes in FY 2025. This increase is in line with the growth in revenue from operations from 5,298.77 Lakhs in FY 2024 to 6,148.58 Lakhs in FY 2025.

Other Current Liabilities

Other Current Liabilities have increased by 45.89% from 317.71 lakhs in FY 2024 to 463.50 lakhs in FY 2025. This increase was mainly on account of the following reasons :

a) increase in statutory dues payable from 25.68 Lakhs in FY 2024 to 276.76 Lakhs in FY 2025. Statutory dues payable reflects the GST payable by the Company outstanding to the tune of 248.72 lakhs for the month of March 2025. b) there has been a reduction in advances from customers from 217.05 Lakhs to 109.17 Lakhs.

Short-Term Provisions

Short-Term Provisions have increased by 49.42 % from 537.35 lakhs in FY 2024 to 802.93 lakhs in FY 2025 due to higher revenue and operating activities, requiring enhanced provisions for expenses like warranty, employee benefit expenses and income tax (net off TDS).

Property, Plant and Equipment

Property, Plant and Equipment reduced by 14.17% from 369.66 lakhs in FY 2024 to 317.26 lakhs in FY 2025, due to depreciation during the year of 75.63 lakhs. Property, Plant and Equipment added during the year amounted to 20.32 lakhs.

Inventories

Inventories have increased by 23.27% from 1,193.31 lakhs in FY 2024 to 1,470.95 lakhs in FY 2025. Inventory levels increased in line with revenue growth and higher operational scale. To cater to increase customer demand and adequate stock availability, additional inventory was maintained.

Trade receivables

Trade receivables have increased by 42.83% from 1,483.64 lakhs in FY 2024 to 2,119.08 lakhs in FY 2025. This increase is due to corresponding growth in revenue from operations from 5,298.77 Lakhs in FY 2024 to 6,148.58 Lakhs in FY 2025.

Cash and Cash Equivalents

Cash and Cash Equivalents have increased by 40.28% from 378.33 lakhs in FY 2024 to 530.71 lakhs in FY 2025. The increase in cash balances is because of realisation of higher cash flow from operations during FY 2025.

Short Term Loans and Advances

Short Term Loans and Advances have increased by 45.49% from 246.17 lakhs in FY 2024 to 358.15 lakhs in FY 2025. This is primarily due to increased operational activity resulting in higher the GST input balance from 18.42 lakhs as at March 31, 2024 to 103.44 lakhs as at March 31, 2025.

Other Current Assets

Other Current Assets have increased by 68.53% from 57.17 lakhs in FY 2024 to 96.35 lakhs in FY 2025. The increase was primarily due to higher accrued interest on Fixed Deposits for margin money against borrowings, guarantee and deferred IPO expenses of 30.30 lakhs.

Components of Profit and Loss

Income

Total Income

Our total income was increased by 18.17 % from 5,325.57 Lakhs in FY 2024 to 6,293.39 Lakhs in FY 2025 due to the factors described below:

Revenue from Operations

Our Revenue from Operations increased by 16.04 % in the year FY 2025. The amount increased from 5,298.77 Lakhs in FY 2024 to 6,148.58 Lakhs in FY 2025. This is because of:

1) Revenue from - Existing Customers

During the FY ended 2025, we have received increased order from our existing customers. The increase in revenue from our top 5 customers is as below:

Existing customer	Sales ( in Lakhs)		Variance
Name	FY 2025	FY 2024	( in Lakhs)
Customer-1	392.79	343.21	49.58
Customer-2	330.07	199.49	130.59
Customer-3	269.82	193.65	76.16
Customer-4	236.07	180.73	55.34
Customer-5	150.00	121.67	28.33
Total	1,378.76	1,038.76	340.00

As per the certificate dated September 20, 2025 issued by Vasanth & Co., Chartered Accountants.

2) Revenue from - New Customers:

During the financial year ended March 31, 2025, we have received orders from new customers which have led to the increase in the total revenue from operations of our Company. Revenue from our top new customers is as below:

Name	FY 2025 ( in Lakhs)
Customer-1	224.75
Customer-2	160.00
Customer-3	130.35
Customer-4	103.65
Total	618.75

As per the certificate dated September 20, 2025 issued by Vasanth & Co., Chartered Accountants.

Other Income

Other income increased by 440.39 % from 26.80 Lakhs in FY 2024 to 144.81 Lakhs in FY 2025 because of the following reasons:

a) Write back & write off of long outstanding advances from customers and for EMD provided to a few Electricity boards. b) Increase in interest income Interest earned on term deposits increased from 24.62 Lakhs in FY 2024 to 29.21 Lakhs in FY 2025 due to increase in BG and respective Margin Money deposits.

Expenditure

Total Expenses

Our total expenses increased by 7.67 % from 4,702.99 Lakhs in Fiscal 2024 to 5,063.50 Lakhs in Fiscal 2025 due to higher revenue from operations generated by the Company.

Purchase of Stock-in-Trade

Purchases of stock-in-trade decreased by 4.91%, from 3,666.80 Lakhs in FY 2024 to 3,486.93 Lakhs in FY 2025. We had an opening inventory of raw materials to the tune of 880.09 Lakhs in FY 2025 as against an opening inventory of 476.10 Lakhs in FY 2024 which was 84.85% more and hence lower purchase of raw materials was made in FY 2025.

(Increase)/Decrease in Stock-In-Trade:

Our (Increase)/Decrease in Stock-in-trade improved by 436.34 %, from (19.03) Lakhs in FY 2024 to (102.06) Lakhs in FY 2025. The variance in changes in inventories of finished goods, work-in-progress, is primarily on account of higher inventory build-up during FY 2024-25 as compared to FY 2023-24. The Company has increased its production volume in anticipation of higher demand and to ensure uninterrupted supply to customers.

Employee Benefit Expenses

The Employee Benefit Expense increased by 50.58 % from 588.70 Lakhs in FY 2024 to 886.46 Lakhs in FY 2025. This increase was primarily because of the following reasons:

a) Directors were paid higher remuneration to the tune of 72.48 lakhs (i.e. from 112.92 Lakhs in FY 2024 to 185.40 Lakhs in FY 2025). b) Workforce expansion and annual increments. c) Company has not provided for gratuity, leave encashment in the past years., and the same has been provided for in the current year.

Finance Costs

Our Finance Costs decreased by 17.93% from 111.19 Lakhs in FY 2024 to 91.25 Lakhs in FY 2025. The decrease was driven by lower interest expenses on overdraft facilities ( 5.17 Lakhs in FY 2025 vs. 10.66 Lakhs in FY 2024), decline in term loan interest ( 59.38 Lakhs in FY 2025 vs. 69.02 Lakhs in FY 2024), reduction in LC interest and discounting charges ( 17.37 Lakhs in FY 2025 vs. 19.67 Lakhs in FY 2024), and lower bank charges ( 9.33 Lakhs in FY 2025 vs. 11.84 Lakhs in FY 2024). The reduction in interest on loan was due to repayment of long-term loan to the tune 165.39 Lakhs and repayment of short-term loan to the tune of 193.39 Lakhs thereby impacting the interest expenses.

Depreciation and amortisation expense

The Depreciation and Amortization expenses increased by 116.11% from 35.00 Lakhs in FY 2024 to 75.63 Lakhs in FY 2025. This was due to capitalization of new assets during the year. Assets worth 20.32 Lakhs were added at the beginning of the year , leading to depreciation being charged for the full year. Capital WIP assets to the tune of 201.94 Lakhs was capitalized in the FY 2024. The full year depreciation on the same was charged during the FY ended 2025.

Other expenses

Other expenses increased by 10.57 % from 724.33 Lakhs in FY 2024 to 800.87 Lakhs in FY 2025. This was mainly due to:

a. Legal & Professional Charges

Legal and professional charges increased from 26.69 Lakhs in FY 2024 to 40.20 Lakhs in FY 2025, mainly due to higher consultancy-related expenses. During FY 2025, the Company engaged external experts to support business and compliance requirements.

b. Travelling Expenses

Travelling expenses increased from 34.81 Lakhs in FY 2024 to 73.32 Lakhs in FY 2025. The rise was mainly in line with overall business growth and higher operational activities, including greater customer interactions and vendor coordination.

c. Insurance Expenses

Insurance expenses increased from 21.28 Lakhs in FY 2024 to 37.60 Lakhs in FY 2025. The rise was mainly due to the Company availing a new life insurance policy of 10.00 Lakhs for the directors during the current year, in addition to regular renewals of existing policies. This step was taken to strengthen risk coverage and provide enhanced protection for employees and business operations.

d. Corporate Social Responsibility (CSR) Expenses

CSR expenses amounted to 4.95 Lakhs in FY 2025 as against Nil in FY 2024. This was incurred as the provisions of Section 135 of the Companies Act, 2013 became applicable to the Company during the current year, requiring allocation of funds towards CSR initiatives. Provision is created against the same during the FY 2025.

e. Labour Charges

Labour charges decreased from 134.89 Lakhs in FY 2024 to 121.79 Lakhs in FY 2025, primarily because a few workers who were earlier engaged on a contractual basis were moved to the Companys payroll. This reclassification shifted part of the expense from "Labour Charges" to "Employee Benefits Expense," thereby reducing the cost under this head.

f. Installation & Commissioning Charges

Installation and commissioning charges reduced from 32.00 Lakhs in FY 2024 to 30.74 Lakhs in FY 2025.

g. Warranty Expenses

Warranty expenses decreased as a percentage of revenue, despite a nominal increase in absolute value from 133.82 Lakhs in FY 2024 to 122.97 Lakhs in FY 2025.

Profit before Tax

Our profit before tax increased by 97.55 % from 622.58 lakhs for the FY 2024 to 1,229.88 Lakhs for the FY 2025. This was mainly due to increase in revenue from operations from Rs 5,298.77 Lakhs in FY 2024 to 6,148.58 Lakhs in FY 2025. Additionally, the increase in other income from 26.80 lakhs in FY 2024 to 144.81 lakhs in FY 2025 also resulted in the increase in PBT during FY 2025.

Tax Expenses

Our total tax expense increased by 75.71% from 183.62 Lakhs in FY 2024 to 322.64 Lakhs in the FY 2025. This was due to the increase in Current Tax from 163.95 lakhs in FY 2024 to 325.70 lakhs in FY 2025 on account of increase in PBT from 622.58 lakhs in FY 2024 to 1,229.88 lakhs in FY 2025.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 106.56 % from 402.41 Lakhs in FY 2024 to 831.23 Lakhs in FY 2025. This was majorly due to:

a) Increase in revenue from operations from Rs 5,298.77 Lakhs in FY 2024 to 6,148.58 Lakhs in FY 2025. The gross margin of 52.91 % on the additional sale of Rs 849.80 Lakhs have mainly contributed to the increase in Profit for the period in FY 2025. b) Increase in Other Income by 118.01 lakhs from 26.80 lakhs in FY 2024 to 144.81 lakhs in FY 2025. c) Increase in Current Tax Expense from 163.95 lakhs in FY 2024 to 325.70 lakhs in FY 2025 due to increased PBT in FY 2025.

d) Finance Cost reduced by 19.93 lakhs in FY 2025.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2024 TO FINANCIAL YEAR ENDED MARCH 31, 2023.

Components of Balance Sheet

Particulars	Fiscal 2024	Fiscal 2023	Increase/Decrease	% increase/decrease
Long-term Borrowings	291.55	237.09	54.46	22.97%
Short Term Borrowings	635.75	496.10	139.65	28.15%
Trade Payables	676.29	575.65	100.64	17.48%
Other Current Liabilities	317.71	334.13	(16.42)	(4.92)%
Short-term Provisions	537.35	262.70	274.66	104.55%
Property, Plant and Equipment	369.66	198.00	171.66	86.70%
Deferred Tax Assets (net)	5.15	24.82	(19.67)	(79.24)%
Inventories	1193.31	770.29	423.02	54.92%
Trade Receivables	1483.64	1115.56	368.09	33.00%
Cash and Cash Equivalents	378.33	310.14	68.19	21.99%
Short-term Loans and Advances	246.17	360.08	(113.91)	(31.63)%
Other Current Assets	57.17	40.53	16.64	41.07%

Long-Term Borrowings

Long-term borrowings increased by 22.97% from 237.09 lakhs as at March 31, 2023 to 291.55 lakhs as at March 31, 2024. The increase was primarily due to higher term loans availed from banks and NBFCs to support capital expenditure and capacity expansion. This reflects the Companys strategy of strengthening infrastructure and funding growth initiatives through long-term sources.

Short-Term Borrowings

Short-Term Borrowings have increased by 28.15 % from 496.10 lakhs in FY 2023 to 635.75 lakhs in FY 2024. The rise was mainly on account of increased utilization of cash credit facilities from banks and the impact of current maturities of long-term debt. The higher borrowings were necessitated by increased working capital requirements arising from growth in receivables and inventory.

Trade Payables

Trade Payables have increased by 17.48% from 575.65 lakhs in FY 2023 to 676.29 lakhs in FY 2024. Payables to MSMEs increased by 182.24%, from 125.20 lakhs in FY 2023 to 353.37 lakhs in FY 2024, mainly due to higher procurement from suppliers in line with business expansion and diversification of the vendor base.

Other Current Liabilities

Other Current Liabilities decreased by 4.92% from 334.13 lakhs in FY 2023 to 317.71 lakhs in FY 2024. This was primarily because of the decrease in advances from customers which reduced from 247.61 lakhs in FY 2023 to 217.05 lakhs in FY 2024, decrease in GST Payable to 13.54 lakhs in FY 2024 from 18.65 lakhs in FY 2023. Outstanding liabilities rose from 56.52 lakhs in FY 2023 to 69.98 lakhs in FY 2024 owing to higher accruals of operating expenses.

Short-Term Provisions

Short-Term Provisions increased by 104.55 % from 262.70 lakhs in FY 2023 to 537.35 lakhs in FY 2024. This was mainly due to increase in provision for warranty from 175.21 lakhs in FY 2023 to 309.02 lakhs in FY 2024 as a result of increased sales and increase in provision for income tax (net of TDS) from 3.08 lakhs in FY 2023 to 102.84 lakhs in FY 2024.

Property, Plant and Equipment

Property, Plant and Equipment increased by 86.70% from 198.00 lakhs in FY 2023 to 396.66 lakhs in FY 2024. The increase was due to additions in office equipment amounting to 64.41 lakhs, vehicles amounting to 101.52 lakhs, plant & machinery amounting to 11.52 lakhs and computers amounting to 11.24 lakhs, reflecting the Companys focus on capacity expansion and infrastructure strengthening.

Deferred Tax Asset (Net)

Deferred Tax Asset has decreased by 79.24 % from 24.82 lakhs in FY 2023 to 5.15 lakhs in FY 2024. The decrease is mainly attributable to lower timing differences on gratuity provisions, leave encashment and bonus ( 12.72 lakhs vs. negative 67.27 lakhs in FY 2023), offset by differences in depreciation between book and tax purposes ( 33.19 lakhs vs. 31.34 lakhs in FY 2023). The reduction reflects normalization of provision-related timing differences and higher capitalization during the year.

Inventories

Inventories have increased by 54.92% from 770.29 lakhs in FY 2023 to 1,193.32 lakhs in FY 2024. Inventory levels increased in line with revenue growth and higher operational scale. The increase ensured adequate stock availability to meet customer demand and support business expansion.

Trade receivables

Trade receivables have increased by 33.00 % from 1,115.56 lakhs in FY 2023 to 1,483.63 lakhs in FY 2024. This increase is in line with the growth in revenue from operations from 2,840.65 Lakhs in FY 2023 to 5,298.77 Lakhs in FY 2024.

Cash and Cash Equivalents

Cash and Cash Equivalents increased by 21.99% from 310.14 lakhs in FY 2023 to 378.33 lakhs in FY 2024. The rise was driven by improved operating cash flows and efficient working capital management, despite higher investments in inventories and receivables.

Short Term Loans and Advances

Short Term Loans and Advances have decreased by 31.63% from 360.08 lakhs in FY 2024 to 246.17 lakhs in FY 2025. This is mainly due to reduction in advances to suppliers to 0.13 lakhs in FY 2024 as compared to 133.28 lakhs in FY 2023.

Other Current Assets

Other Current Assets have increased by 41.07 % from 40.53 lakhs in FY 2023 to 57.17 lakhs in FY 2024. The increase was mainly due to higher prepaid expenses 35.02 lakhs in FY 2024 as compared to 26.71 lakhs in FY 2023, reflecting advance payments for insurance, rentals and services, and higher accrued interest on fixed deposits to 22.15 lakhs in FY 2024 as compared to 13.82 lakhs in FY 2023.

Components of Profit and Loss

Income

Total Income

Our total income increased by 86.31 % from 2,858.51 Lakhs in FY 2023 to 5,325.57 Lakhs in FY 2024 due to the factors described below:

Revenue from Operations

Our Revenue from Operations increased by 86.53 % in the year FY 2024. The amount increased from 2,840.65 Lakhs in FY 2023 to 5,298.77 Lakhs in FY 2024. The growth was primarily on account of the following:

a) Onboarding of new customers during FY 2024, contributing to incremental revenue. Revenue derived from few new customers is as follows:

Particulars	FY 2024 ( in Lakhs)
Customer-1	132.07
Customer-2	121.15
Customer-3	108.00
Customer-4	81.50
Total	442.72

b) Higher repeat orders from some of the existing customers is outlined below:

Existing customers	Sales ( in Lakhs)		Variance
Particulars	FY 2024	FY 2023	( in Lakhs)
Customer-1	237.65	57.96	179.69
Customer-2	252.46	73.13	179.33
Customer-3	200.50	36.63	163.87
Customer-4	219.88	86.34	133.54
Customer-5	140.16	10.83	129.33
Total	1,050.65	264.89	785.75

c) Due to increase in volume of sales of relays by 101.81% from 36,481 units in FY 2023 to 73,621 units in FY

2024.

Other Income

Other income increased by 50.03 % from 17.86 Lakhs in FY 2023 to 26.80 Lakhs in FY 2024 because of the following reasons:

The increase was mainly driven by interest on term deposits, which stood at 24.62 lakhs in FY 2024 as against 16.73 lakhs in FY 2023. This rise was attributable to margin money deposits placed with banks towards Bank Guarantees (BGs), which led to higher outstanding term deposit balances and consequent interest accrual.

Expenditure

Total Expenses

Our total expenses increased by 71.58 % from 2,741.05 Lakhs in FY 2023 to 4,702.99 Lakhs in FY 2024 due to the factors described below:

Cost of Materials Consumed

The cost of materials consumed was 3,262.81 lakhs in FY 2024 as compared to 1,842.12 lakhs in FY 2023, an increase of 77.12% where the rise is in line with rise of Revenue from operation which increased by 86.53% in FY 2024, reflecting marginal improvement in material efficiency.

The increase in absolute cost was primarily due to:

a) Higher purchases of raw materials and consumables, which increased to 3,666.80 lakhs in FY 2024 from 1,853.78 lakhs in FY 2023, on account of growth in scale of operations.

b) An increase in closing stock of raw materials to 880.09 lakhs in FY 2024 as against 476.10 lakhs in FY 2023, reflecting procurement planning to support future demand.

(Increase)/Decrease of Stock-In-Trade

Changes in inventories of finished goods and work-in-progress decreased by 19.03 lakhs in FY 2024 as compared to a decrease of 217.61 lakhs in FY 2023. This was primarily on account of: a) An increase in closing stock of finished goods to 283.68 lakhs in FY 2024 from 256.61 lakhs in FY 2023, in line with higher scale of operations. b) A decrease in work-in-progress inventory to 29.53 lakhs in FY 2024 from 37.58 lakhs in FY 2023, reflecting improved production efficiency and faster conversion. c) A higher level of opening inventories in FY 2024 amounting to 294.19 lakhs as compared to FY 2023 amounting to 76.58 lakhs, which reduced the extent of net decrease during the year.

Employee benefit expenses

The Employee Benefit Expenses increased by 23.32 % from 477.37 Lakhs in FY 2023 to 588.70 Lakhs in FY 2024. As a percentage of revenue, employee costs declined to 11% in FY 2024 from 17% in FY 2023, reflecting improved cost efficiency due to revenue growth.

The increase in absolute cost was mainly due to:

a) Salaries and wages, which increased from 463.97 lakhs in FY 2023 to 566.86 lakhs in FY 2024, on account of higher headcount from 92 to 112 employees and average annual incremental of around 10%.

b) Staff welfare expenses, which increased from 12.34 lakhs in FY 2023 to 38.14 lakhs in FY 2024, owing to expanded welfare programs and employee engagement initiatives.

c) Leave encashment provision, which decreased to 2.93 lakhs in FY 2024 from 18.69 lakhs in FY 2023.

Finance Costs

Our Finance Costs increased by 38.49% from 80.29 Lakhs in FY 2023 to 111.19 Lakhs in FY 2024. The increase was driven by:

a) Term loan interest of increased by 42.2% to 69.02 Lakhs in FY 2024 from 48.53 Lakhs due to higher loan utilisation. b) Overdraft interest increased by 10.27 Lakhs reflecting short-term working capital needs. c) LC interest and discounting charges increased by 94.2% in FY 2024 owing to higher trade volumes.

This was partly offset by 44.3% reduction in bank charges to 11.84 Lakhs in FY 2024 from 21.24 Lakhs in FY 2023 due to rationalisation of banking arrangements.

Depreciation and amortisation expense

The Depreciation and Amortization expenses increased by 187.86 % from 12.16 Lakhs in FY 2023 to 35.00 Lakhs in FY 2024. The increase in depreciation expense was primarily attributable to significant additions to property, plant and equipment during the year, particularly in vehicles amounting to 101.52 Lakhs, office equipment amounting to 64.41 Lakhs, plant and machinery amounting to 11.52 Lakhs and computers amounting to 11.24 Lakhs. Intangible assets (software) also increased by 11.08 Lakhs in FY 2024. These additions resulted in a higher depreciable base as compared to the previous year.

Other expenses

Other expenses increased by 32.49% from 546.98 Lakhs in FY 2023 to 724.72 Lakhs in FY 2024. The movement was primarily driven by the following major expense heads:

a) Labour Charges

Labour charges stood at 134.89 Lakhs in FY 2024 as against 62.49 Lakhs in FY 2023, an increase of 72.40 Lakhs (115.8%). This increase is in line with the growth in revenue from operations from 2,840.65 Lakhs in FY 2023 to 5,298.77 Lakhs in FY 2024. The increase was on account of higher deployment of contract labour to support expanded operational activities and increased service requirements during the year.

b) Warranty Expenses

Warranty expenses increased to 133.82 Lakhs in FY 2024 from 93.50 Lakhs in FY 2023, an increase of 40.32 Lakhs (43.1%). The increase corresponds with higher turnover during the year and aligns with the Companys customer-centric approach. This warranty claim is in line with the Revenue from the operations.

c) Legal & Professional Charges

Legal and professional expenses increased to 26.69 Lakhs in FY 2024 from 19.44 Lakhs in FY 2023, an increase of 7.25 Lakhs (37.3%). This increase was primarily attributable to higher engagement of professional & Technical Consultancy undertaken during the year.

d) Travelling Expenses

Travelling expenses rose to 34.81 Lakhs in FY 2024 from 6.47 Lakhs in FY 2023, an increase of 28.34 Lakhs (438.1%). This increase is in line with the growth in revenue from operations from 2,840.65 Lakhs in FY 2023 to 5,298.77 Lakhs in FY 2024. The rise was largely attributable to intensified business development, client meetings, and industry events. A notable one-time expense was the business trip to a foreign country, where travel and stay costs of about 3.22 Lakhs were incurred, contributing to the overall increase.

Profit before Tax

Our profit before tax increased by 430.03 % from 117.46 Lakhs for the FY 2023 to 622.58 Lakhs for the FY 2024. This was mainly due to increase in revenue from operations from Rs 2,840.65 Lakhs in FY 2023 to 5,298.77 Lakhs in FY 2024. The gross margin increased by 838.86 Lakhs during the FY 2024 as compared to FY 2023 and other expenses increased by 361.50 Lakhs which is in line with increase in revenue from operations for FY 2024 as compared to FY 2023.

Tax Expenses

Our total tax expense increased by 637.06% from 24.91 Lakhs in FY 2023 to 183.62 Lakhs in the FY 2024. This was primarily due to the increase in Current Tax from 31.10 Lakhs in FY 2023 to 163.95 Lakhs in FY 2024 and the increase in deferred tax from (6.19) Lakhs in FY 2023 to 19.67 Lakhs in FY 2024. This increase in tax is hence on account of increase in PBT from 603.50 Lakhs in FY 2024 to 1,125.50 Lakhs in FY 2025.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 336.04 % from 92.92 Lakhs in FY 2023 to 402.41 Lakhs in FY 2024. This was majorly due to:

a) Increase in revenue from operations from Rs 2,840.65 Lakhs in FY 2023 to 5,298.77 Lakhs in FY 2024. The gross margin increased by 838.86 Lakhs during the FY 2024 as compared to FY 2023 and other expenses increased by 361.50 Lakhs which is in line with increase in revenue from operations for FY 2024 as compared to FY 2023 b) Increase in Other Income by 8.94 Lakhs from 17.86 Lakhs in FY 2023 to 26.80 Lakhs in FY 2024. c) Increase in Current Tax Expense from 31.10 Lakhs in FY 2023 to 3163.95 Lakhs in FY 2024 due to increased PBT in FY 2024. d) Employee Benefit Expenses increased by 111.33 Lakhs in FY 2024 e) Depreciation and Amortization Expenses increased by 22.84 Lakhs in FY 2024 f) Finance Cost increased by 30.90 Lakhs in FY 2024.

CASH FLOWS

The table below is our cash flows for the financial years ended on March 31, 2025, March 31, 2024, and March 31, 2023:

	For the Financial Year ended on March 31,
Particulars	2025	2024	2023
Net Cash generated from/(utilised in) operating activities	676.66	94.77	(31.75)
Net Cash generated from/(utilised in) investing activities	(74.24)	(109.50)	(119.32)
Net Cash generated from/(utilised in) financing activities	(450.04)	82.92	231.46

Cash Flows from Operating Activities

For the year ended on March 31, 2025

Our net cash generated from operating activities was 676.66 Lakhs for the Fiscal 2025. Our net profit before tax of 1,229.88 Lakhs for the Fiscal 2025 which was primarily adjusted against Depreciation and amortization of 75.63 Lakhs, Prior Period Items of (76.02) Lakhs, Finance Cost of 91.25 Lakhs and Interest & Dividend Income of 29.21 Lakhs. Operating profit before working capital changes was 1,291.54 Lakhs for the Fiscal 2025. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Inventories of 277.64 Lakhs, (ii) Increase in trade receivables of 635.44 Lakhs, (iii) Increase in other current assets of 39.18 Lakhs, (iv) Increase in trade payables 250.88 Lakhs (v) Increase in short term provisions of 265.58 Lakhs (vi) Increase in current liabilities of 145.79 Lakhs. Tax paid for the Fiscal 2025 amount to 324.88 Lakhs.

For the year ended on March 31, 2024

Our net cash generated from operating activities was 94.77 Lakhs for the Fiscal 2024. Our net profit before of 622.58 Lakhs for the Fiscal 2024 which was primarily adjusted against Depreciation and amortization of 35.00 Lakhs, Prior Period Items of (36.55) Lakhs, Finance Cost of 111.19 Lakhs and Interest & Dividend Income of (24.62) Lakhs. Operating profit before working capital changes was 707.60 Lakhs for the Fiscal 2024. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Inventories of 423.02 Lakhs, (ii) Increase in trade receivables of 368.09 Lakhs, (iii) Increase in other current assets of 16.64 Lakhs, (iv) Increase in trade payables 100.64 Lakhs (v) Increase in short term provisions of 274.66 Lakhs (vi) Decrease in current liabilities of 16.42 Lakhs. Tax paid for the Fiscal 2024 amount to 163.95 Lakhs.

For the year ended on March 31, 2023

Our net cash utilised in operating activities was 31.75 Lakhs for the Fiscal 2023. Our net profit before tax of 117.46 Lakhs for the Fiscal 2023 which was primarily adjusted against Depreciation and amortization of 12.16 Lakhs, Finance Cost of 80.29 Lakhs and Interest & Dividend Income of 16.73 Lakhs. Operating profit before working capital changes was 192.92 Lakhs for the Fiscal 2023. The adjustments to operating profit before working capital changes included adjustments for (i) Increase in Inventories of 229.27 Lakhs, (ii) Increase in trade receivables of 420.49 Lakhs, (iii) Decrease in other current assets of 13.42 Lakhs, (iv) Increase in trade payables 279.98 Lakhs (v) Increase in short term provisions of 82.85 Lakhs (vi) Increase in current liabilities of 79.95 Lakhs. Tax paid for the Fiscal 2023 amount to 31.10 Lakhs.

Cash Flows from Investing Activities

For the year ended on March 31, 2025

Net cash flow used in investing activities for the Fiscal 2025 was 74.24 Lakhs. This was primarily on account of purchase of Tangible / Intangible Assets of 23.47 Lakhs and increase in Short-Term Loans and Advances Lakhs and Interest income of 29.21 Lakhs.

For the year ended on March 31, 2024

Net cash flow used in investing activities for the Fiscal 2024 was 109.50 Lakhs. This was primarily on account of purchase of Tangible Assets / Intangible Assets 213.02 Lakhs and Increase in Other Current Assets of 35 Lakhs and interest income of 24.62 Lakhs.

For the year ended on March 31, 2023

Net cash flow used in investing activities for the Fiscal 2023 was 119.32 Lakhs. This was primarily on account of purchase of Tangible Assets / Intangible Assets 13.76 Lakhs and Increase in Short-Term Loans and Advances of 122.29 Lakhs and interest income of 16.73 Lakhs.

Cash Flows from Financing Activities

For the year ended March 31, 2025

Net cash flow utilised in financing activities for the Fiscal 2025 was 450.04 Lakhs. This was primarily on account of repayment of long-term borrowings of 165.39 Lakhs; repayment of short-term borrowings of 193.39 Lakhs and Interest paid of 91.25 Lakhs.

For the year ended March 31, 2024

Net cash flow generated from financing activities for the Fiscal 2024 was 82.92 Lakhs. This was primarily on account of Interest paid of 111.19 Lakhs and proceeds from Short Term Borrowings of 139.65 Lakhs.

For the year ended March 31, 2023

Net cash flow generated from financing activities for the Fiscal 2023 was 231.46 Lakhs. This was primarily on account of Interest paid of 80.29 Lakhs and proceeds from Long Term Borrowings of 232.08 Lakhs.

RELATED PARTY TRANSACTIONS

Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Financial Statements" beginning on page 209 of this Draft Red Herring Prospectus.

OFF-BALANCE SHEET ITEMS

Except for the contingent liabilities mentioned in Note 29 of Restated Financial Statements, 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.

QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN THE RESTATED FINANCIAL STATEMENTS

The Restated Financial Statements do not contain any qualifications which have not been given effect in the restated financial statements.

QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our exposure to the risk of changes in market interest rates relates primarily to our long-term debt obligations with floating interest rates. We manage our interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. For further information, see "Financial Indebtedness" on page 246.

Effect of Inflation

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

Credit Risk

Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from our receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. We assess the credit quality of the counterparties, taking into account their financial position, past experience and other factors. We limit exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. We review the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.

Our Company conducts an extensive financial and credibility check on the landlords before taking any property on lease and our Company has no instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period of rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the nonrealization risk. Our Company foresees no credit risks on deposits with regulatory authorities

Liquidity risk

Liquidity risk is the risk that we will not be able to meet our financial obligations as they become due. We manage liquidity risk by ensuring, that we will always have sufficient liquidity to meet our liabilities when due.

OTHER MATTERS

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 "Restated Financial Statements" beginning on page 209 of this Draft Red Herring 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.

Material Frauds

There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.

Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered "unusual" or "infrequent".

Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect our income from continuing operations identified above in ‘Managements Discussion and Analysis of Financial Condition and Results of Operations -Significant factors affecting our financial condition and results of operations and the uncertainties described in ‘Risk Factors on pages 251 and 31 respectively.

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

Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on page 31 and 250 of this Draft Red Herring Prospectus respectively 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 relationship between Costs and Income

Other than as described in the section titled "Risk Factors" beginning on page 31 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

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

Changes in revenue in the last three financial years are as explained in the part "Comparison of financial year ended March 31, 2025 to financial year ended March 31, 2024 and Comparison of financial year ended March 31, 2024 to financial year Ended March 31, 2023" above.

Total turnover of industry segments

Our Company is engaged into manufacturing of custom-built Control and Relay Panels from 11kv to 220kv for Power System Monitoring, Control and Protection Applications Transmission Lines, Power Transformers, Bus Bar, Capacitor Bank, etc, for both indoor and outdoor usage, MV and LV Panels, Relays and Control and Relays Panels and Substation Automation Systems. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 117 of this Draft Red Herring Prospectus.

Status of any publicly announced new products or business segments

Please refer to the chapter titled "Our Business" beginning on page 140 of this Draft Red Herring Prospectus for new products or business segments.

The extent to which the business is seasonal

Our business is not seasonal in nature.

Competitive Conditions

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 117 and 140 respectively of this Draft Red Herring Prospectus.