B. D. Industries Pune Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATION

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 GAAP 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.

OVERVIEW

Industry Overview

Annual global plastic production reached a high of 390.7 million metric tons in 2021, having experienced a compound annual growth rate (CAGR) of 5.8 percent since 2009. In recent years, China has emerged as the leading producer of plastics, accounting for roughly 32 percent of global production. Despite the economic impacts of the pandemic, the production of plastic products in China has consistently produced around seven million metric tons of plastic products every month. In comparison, plastic production in Europe experienced a decline in 2020 before once again experiencing an increase to 57.2 million metric tons in 2021. North America (NAFTA) is the second-largest producer, with plastic production in the United States amounting to approximately 56.9 million metric tons in 2022.

The Indian plastic industry is one of the leading sectors in the countrys economy. The history of the plastic industry in India dates back to 1957 with the production of polystyrene. Since then, the industry has made substantial progress and has grown rapidly. The industry is present across the country and has more than 2,500 exporters. It employs more than 4 million people in the country and constitutes 30,000 processing units; among these, 85-90% belong to small and medium enterprises. India manufactures various products such as plastics and linoleum, houseware products, cordage, fishnets, floor coverings, medical items, packaging items, plastic films, pipes, raw materials, etc. The country majorly exports plastic raw materials, films, sheets, woven sacks, fabrics, and tarpaulin. The Government of India intends to take the plastic industry from a current level of Rs. 3 lakh crore (US$ 37.8 billion) of economic activity to Rs. 10 lakh crore (US$ 126 billion) in 4-5 years.

10 Plastic Parks have been approved in the country by The Department of Chemicals and Petrochemicals. Among these, six plastic parks have received final approval from the following states Madhya Pradesh (two parks), Assam (one park), Tamil Nadu (one park), Odisha (one park), and Jharkhand (one park). These parks are intended to boost employment and attain environmentally sustainable growth.

Our Business

Our journey began with the production of high-quality rotomolded battery boxes and water tanks. Over time, we have expanded our capabilities to manufacture a wide range of plastic components for automotive and industrial applications, establishing ourselves as a leading player in the industry.

Currently, we are engaged in the business of manufacturing and trading of Plastic Products for varied industries. The split of its Revenue from Operations between Manufacturing, Trading and Service income is as per table pasted below:

			( in Lakhs)
	Consolidated	Standalone
Particulars	FY 2024-25	FY 2023-24	FY 2022-23
Manufactured Goods	7,903.08	4,693.83	4,704.29
Trading Goods	329.41	731.19	757.01
Service Income	-	-	-
Other Operating Revenue	5.35	-	-
Revenue from Operations	8,237.85	5,425.02	5,461.30

In the automotive sector, our key products include fuel tanks for off-road vehicles, urea tanks, fenders, hydraulic tanks, air ducts, mudguards, and cabin roofs. Beyond automotive, our rotomolded plastic products serve diverse industries, including road & highway safety, material handling & storage, water management & disposal, marine, renewable energy, healthcare, and custom moulding.

With a commitment to innovation and quality, we continue to deliver durable, high-performance solutions that meet the evolving needs of our customers across various sectors.

*Our group operate three manufacturing facilities strategically located across India to support our diverse production/customer needs. Zaheerabad plant is under construction and no manufacturing activity is being carried out at the date of filing of DRHP.

1. Pune Facility: Gat No. 999, Sanaswadi, Tal. Shirur, Dist. Pune, Maharashtra

2. Telangana Facility: Plot No. 66/A, Industrial Park, Buchinelly, Zaheerabad Mandal, Medak District, Telangana (measuring 6047 Sq. Mtrs)

3. Madhya Pradesh Facility: Plot No. 36B, Industrial Area No. 1, A.B. Road, Dewas, Madhya Pradesh

4. Punjab Facility: 15 K 1 M K No. 26/4(7-1) ETC Dheha Alias, Ram Nagar, Hoshiarpur Land, Punjab

*Out of the four manufacturing facilities stated above, only Pune facility is with B. D. Industries (Pune) Limited and rest three facilities are with its wholly owned subsidiary B.D. Industries (India) Private Limited.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

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

Volatility in the prices of raw materials

Volatility in the prices of raw materials and availability of the raw materials can have significant implications for our business. For the stub period and financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, cost of raw material consumed were 3,361.46 lakhs and 3,768.44 lakhs respectively which is 61.96% and 69.00% of revenue from operations respectively. Fluctuations in these costs can impact our profitability, operational efficiency, and overall financial stability. When raw material prices experience volatility, it directly affects our production costs. If prices increase, it can lead to higher expenses for sourcing and acquiring the necessary materials. This can squeeze profit margins and potentially result in increased product prices for our customers. On the other hand, if prices decrease, it may create opportunities for cost savings and improved profitability. To manage the impact of price volatility, we employ various strategies. These include closely monitoring market trends, engaging in strategic sourcing practices, and implementing hedging or forward contracting strategies wherever applicable. While we cannot control or predict market fluctuations, we strive to proactively manage the risks associated with raw material pricing and availability to ensure the long-term sustainability and profitability of our business.

Unexpected loss, shutdown or slowdown of operations at any of our manufacturing facilities

An unexpected loss, shutdown, or slowdown of operations at any of our facilities can have significant implications for our business. It can disrupt our production processes, impact our ability to meet customer demand, and potentially result in financial losses. Firstly, such an event can lead to a decrease in our overall production capacity, which may result in delays in fulfilling customer orders. This can lead to dissatisfied customers, potential loss of business, and damage to our reputation. Additionally, the interruption of operations can cause a disruption in our supply chain, affecting the availability of raw materials or components needed for production. This can further exacerbate delays and impact our ability to meet customer demands in a timely manner. Furthermore, a loss, shutdown, or slowdown of operations can have financial implications. It may result in increased costs associated with repairs, maintenance, or finding alternative facilities to continue operations. It can also lead to a decrease in revenue due to the inability to generate sales during the downtime. To mitigate the impact of such events, it is important for us to have contingency plans in place. Our Company has taken various measures for protection against such accidents in future. This includes implementing robust risk management strategies, regularly assessing the condition of our facilities, and having backup plans for alternative production sites if necessary. By taking proactive measures, we aim to minimize the potential disruptions and financial impact caused by unexpected loss, shutdown, or slowdown of operations at any of our facilities.

Dependence on third parties for our suppliers, logistics and transportation needs

Our dependence on stable and reliable logistics and transportation infrastructure is crucial for the smooth operation of our business. Any disruptions or failures in this infrastructure can have significant impacts on our operations, supply chain, and overall business performance. Firstly, a reliable logistics and transportation infrastructure ensures the timely and efficient movement of goods and materials throughout our supply chain. It allows us to receive raw materials on time, transport finished products to customers, and manage inventory effectively. Any disruptions in this process can lead to delays in production, increased costs, and potential customer dissatisfaction. Moreover, a stable logistics and transportation infrastructure enables us to meet customer expectations in terms of delivery times and service levels. It helps us maintain a competitive edge in the market by ensuring that our products reach customers in a timely manner. Any interruptions or failures in this infrastructure can result in missed delivery deadlines, loss of customer trust, and potential loss of business. Additionally, a reliable transportation network is essential for expanding our market reach and entering new markets. Dependence on unstable or unreliable infrastructure can limit our ability to expand and tap into new customer bases. To mitigate the risks associated with dependence on logistics and transportation infrastructure, we actively monitor and assess the reliability of our logistics partners and transportation providers. We establish contingency plans to address potential disruptions, such as identifying alternative routes or modes of transportation. By prioritizing stable and reliable infrastructure, we aim to minimize the potential impact on our business operations and ensure smooth supply chain management.

Our ability to successfully implement its strategy and its growth and business expansion plans

Our inability to successfully implement the strategies may have several consequences for our Company. Firstly, it could hinder our growth and limit our ability to reach new markets or serve a larger customer base. This could result in missed opportunities for revenue generation and potential loss of market share to competitors who are able to expand successfully. Additionally, the failure to implement the strategies may impact our reputation and credibility in the industry. Stakeholders, including investors, partners, and customers, may question our ability to execute strategic initiatives effectively, which could lead to a loss of trust and potential negative impact on future business relationships. Furthermore, the inability to successfully implement the strategies may have financial implications. It is important to address the challenges and obstacles that are preventing the successful implementation of the strategies. By identifying and addressing these issues, we can mitigate the potential negative impacts and work towards finding alternative solutions or strategies to achieve our expansion goals.

Developments in the competitive environment in the Plastic industry

Developments in the competitive environment and increase in our competitors in the Plastic industry, can have both direct and indirect effects on our organization. Here are a few potential impacts:

1. Increased competition: Consolidation among competitors may result in larger and more powerful players in the market. This could intensify competition as they may have greater resources, economies of scale, and market influence. We may need to adapt our strategies to effectively compete in this changing landscape.

2. Pricing pressure: Increase in competition can lead to decreased pricing power for larger competitors, potentially putting downward pressure on prices in the industry. This may impact our profitability and require us to find ways to maintain competitiveness while managing costs.

3. Market share dynamics: If our competitors gain a larger market share, it could impact our position and market presence. We may need to reassess our market positioning and explore ways to differentiate ourselves to maintain or grow our market share.

5. Collaboration opportunities: Consolidation can also create opportunities for collaboration or partnerships. It may be beneficial to explore potential alliances or strategic partnerships with other players in the industry to leverage synergies and strengthen our competitive position.

It is crucial for us to closely monitor and analyze the developments in the competitive environment, including consolidation among our competitors. By staying informed and proactive, we can adapt our strategies, identify new opportunities, and mitigate any potential risks or challenges that may arise. Further, below mentioned factors can also affect our revenue:

Regulatory Environment: Development in compliance with environmental laws ensures smooth operations and prevents legal penalties. Investments in circular economy models (e.g., recycling and reuse) enhance brand reputation.

Economic Factors: Global trade policies and raw material price fluctuations impact development strategies. Investments in alternative materials safeguard against regulatory risks.

Consumer Trends: Growing awareness of environmental concerns influences demand for eco-friendly plastics. Development in product design and material innovation aligns with changing consumer preferences.

Technological Advancements: Investment in new machinery and automation improves production efficiency, reduces waste, and enhances product quality. Adoption of sustainable and biodegradable plastic solutions helps meet environmental regulations and customer demand.

SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation of Restated Financial Statements:

"These financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in India under the historical cost convention on the accrual basis of accounting. These financial statements have been prepared to comply in all material aspects with the accounting standards specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 2013 (hereinafter together referred to as the Act) and Schedule III of the Act.

The restated financial information has been prepared for inclusion in the Draft Red Hearing Prospectus ("DRHP" or "offer document") to be filed by the Company with the Securities and Exchange Board of India (‘SEBI) in connection with proposed Initial Public Offering of 42,00,000 equity shares of face value of Rs 10 each of the Company (the "Issue"), in accordance with the requirements of: a) Section 26 of part I of Chapter III of the Act

b) relevant provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements Regulations, 2018, issued by the Securities and Exchange Board of India (SEBI) as amended in pursuance of the Securities and Exchange Board of India Act, 1992; and

c) Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI").

The Restated financial information has been compiled from:

a) the audited financial statement of the Company for the stub period and as at March 31, 2025 which have been approved by the Board of Directors at their meeting held on

b) the audited financial statement of the Company as at March 31, 2024 which have been approved by the Board of Directors at their meeting held on September 05, 2024.

c) the audited financial statement of the Company as at March 31, 2023 which have been approved by the Board of Directors at their meeting held on September 05, 2023.

There were no qualifications in the Audit Reports issued by Statutory Auditor(s) for the year ended March 31, 2025, March 31, 2024, March 31, 2023.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year."

b) Use of estimates and judgements

The preparation of financial statements in conformity with Indian GAAP (Generally accepted accounting principles) requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based upon Managements best knowledge of current events and actions, uncertainty about these assumption and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c) Going Concern

The financial accounts of the Company are prepared on the assumption of going concern concept.

d) Current versus non-current classification

"The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification.

An asset is classified as current when it satisfies any of the following criteria:

It is expected to be realized or intended to be sold or consumed in normal operating cycle It is held primarily for the purpose of trading It is expected to be realized within twelve months after the reporting period, or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

A liability is current when it satisfies any of the following criteria:

It is expected to be settled in normal operating cycle It is held primarily for the purpose of trading

It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

Current liabilities include the current portion of long-term financial liabilities. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle."

e) Inventories

"Inventories are carried at the lower of cost or net realisable value. Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. In determining the cost, FIFO method is used. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The proportionate amount of additional duty of customs paid on finished goods imported for trading and lying unsold as at the year-end has been included in the value of the finished goods stock. The comparison of cost and net realisable value is made on an item-by-item basis"

f) Property, Plant and Equipment

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises its acquisition price, including import duties and other non-refundable taxes or levies, any directly attributable cost of bringing the asset to its working condition for its intended use, pre-operative expenses including financial charges and adjustments on account of foreign exchange fluctuations, wherever applicable; any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures related to an item of fixed asset should be capitalised only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance otherwise expenditure should be written off.

g) Depreciation and Amortization

"Depreciation on property, plant and equipment is provided on written down value method over the useful lives of assets estimated by the management which are equal to the useful lives prescribed under Schedule II of the Companies Act, 2013. The useful lives estimated by the management are mentioned below:

Plant and Machinery	08 years
Office Equipment	05 years
Furniture and Fixtures	10 years
Vehicles	08 years
Computer Equipment	03 years
Electrical Installation	10 years
Buildings	30 years
Computer Software	03 years

The useful lives are reviewed by the management periodically and revised, if appropriate. In case of a revision, the unamortized depreciable amount is charged over the revised remaining useful life. Depreciation is provided on a pro-rata basis i.e. from the date on which asset is ready for use. Property, Plant and Equipment is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal."

h) Intangible assets

"Intangible assets that are acquired by the company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortization and accumulated impairment loss (if any).

Subsequent expenditure is capitalized only when it increases the future economic benefits to the specific assets to which it relates.

Intangible assets are amortized in Statement of Profit and Loss over their estimated useful lives, from the date that they are available for use based on the expected pattern of consumption of economic benefits of the assets. Accordingly, at present these are being amortized on written down value method over a period of three years based on the useful economic life.

Amortization method and useful lives are reviewed at each reporting date. If the useful life of an asset is estimated to be significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern. An intangible asset is derecognized on disposal or when no future economic benefit is expected from its use and disposal.

Losses arising from retirement and gains or losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the assets, and are recognized in the Statement of Profit and Loss."

i) Impairment of assets

The carrying values of assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the recoverable amount of asset is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each reporting date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized. j) Recognition of Revenue and Expenses

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. The following specific recognition criteria must be also met before revenue is recognized:

k) Sale of goods:

Revenue in respect of service income is recognized on an accrual basis in accordance with the terms of specific contracts, provided the consideration is reliably determinable and no significant uncertainty exists regarding the collection. The amount recognized as revenue is net of applicable taxes.

l) Income from services:

Revenue in respect of service income is recognized on an accrual basis in accordance with the terms of specific contracts, provided the consideration is reliably determinable and no significant uncertainty exists regarding the collection. The amount recognized as revenue is net of applicable taxes.

m) Expenses:

Expenses are accounted for on accrual basis and provision is made for all known losses and expenses.

n) Transactions in foreign currency

Foreign exchange transactions are recorded at the exchange rates prevailing on the date of such transactions. Realized gains and losses on foreign exchange transactions during the year are recognized in the statement of profit and loss. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognized in the statement of profit and loss.

o) Lease Accounting

Assets acquired under leases other than finance leases are classified as operating leases. The total lease rentals (including scheduled rental increases) in respect of an asset taken on operating lease are charged to the Statement of

Profit and Loss on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the benefit.

p) Employee benefits

"Short term employee benefits

It includes salaries, short term compensated absences (such as paid annual leave) where the absences are expected to occur within twelve months after the end of the period in which the employees render the related employee service, profit sharing and bonuses payable within twelve months after the end of the period in which the employees render the related services and non-monetary benefits (such as medical care) for current employees are estimated and measured on an undiscounted basis.

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The Company makes specified monthly contributions towards Employee Provident Fund to Government administered Provident Fund scheme which is a defined contribution plan. The Companys contribution is recognized as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service."

Gratuity

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit (PUC) method made at the end of each financial year.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

The date of the plan amendment or curtailment, and

The date that the Company recognizes related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation as an expense in the statement of profit and loss: Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

Net interest expense or income

Compensated Absences

Employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.

Other long-term benefits

The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Company records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method."

q) Segment Reporting

The Company operates in a single primary business segment. Hence, there are no reportable segment as per AS 17 Segment Reporting.

r) Earnings per share

Basic Earnings per Share (EPS) is computed by dividing the net profit after tax for the year attributable to the equity shareholders by the weighted average number of shares outstanding during the year. The Company does not have any potentially dilutive securities in any of the years presented to calculate diluted EPS and hence the diluted EPS is the same as basic EPS.

s) Provisions, contingent liabilities and contingent assets

Provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation on the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A disclosure for a contingent liability is made when there is a present obligation that may, but probably will not, require an outflow of resources. Disclosure is also made in respect of a present obligation as a result of past event that probably requires an outflow of resource, where it is not possible to make a reliable estimate of the outflow. Possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company are also included in the disclosure of the contingent liability. Where there is a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

t) Cash and Cash equivalents

Cash and cash equivalents comprise cash on hand and balance with banks on current accounts. The Company considers all highly liquid investments, including bank deposits with an original maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. Further, bank deposits having maturity of more than 12 months have also been disclosed separately by the company under this head. Moreover, the cash flow statement is prepared using indirect method.

u) General

Accounting policies not specifically referred to, are consistent with the Indian Generally Accepted Accounting Principles and are followed consistently.

RESULTS OF OPERATIONS

The following table sets forth selected information from our results of operations as a percentage of total income for Fiscals 2025, 2024 andf 2023:

( in Lakhs)

	Consolidated			Standalone
Particulars	Year ended March 31, 2025	% of Total Income	Year ended March 31, 2024	% of Total Income	Year ended March 31, 2023	% of Total Income
INCOME:
Revenue from Operations	8,237.85	97.91%	5,425.02	98.05%	5,461.30	99.12%
Other Income	175.43	2.09%	108.13	1.95%	48.59	0.88%
Total Income (A)	8,413.28	100.00%	5,533.15	100.00%	5,509.89	100.00%
EXPENSES:
Cost of Materials Consumed	4,303.33	51.15%	3,361.46	60.75%	3,768.44	68.39%
Employee benefit expenses	702.74	8.35%	412.62	7.46%	374.98	6.81%
Finance costs	249.85	2.97%	83.99	1.52%	67.63	1.23%
Depreciation and amortization	190.74	2.27%	54.15	0.98%	51.66	0.94%
Other expenses	1,848.95	21.98%	1,180.12	21.33%	1,045.07	18.97%
Total Expenses (B)	7,295.61	86.72%	5,092.34	92.03%	5,307.78	96.33%
Net Profit / (Loss) before tax	1,117.67	13.28%	440.81	7.97%	202.11	3.67%
Less: Tax expense
(i) Current tax	308.31	3.66%	130.08	2.35%	51.03	0.93%
(iii) Deferred tax	(28.24)	(0.34) %	(7.27)	(0.13) %	1.86	0.03%
(b)Short/ Excess Tax provision for earlier periods	22.77	0.27%	-	-	-	-
Total Tax Expense	302.84	3.60%	122.81	2.22%	52.89	0.96%
Net Profit / (Loss) after tax	814.83	9.68%	318.00	5.75%	149.22	2.71%
Pre-operative Profit/Loss	(54.28)	(0.65) %	-	-	-	-
Net Profit transferred o reserves	760.54	9.04%	318.00	5.75%	149.22	2.71%

FOR THE PERIOD ENDED

Total Revenue

Revenue from operations

Our revenue from operations for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 was 8,237.85,

5,425.02 lakhs and 5,461.30 lakhs which was, 98.05% and 99.12% of our total income.

Other income

Our other income for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 was 175.43 lakhs, 108.13 lakhs and 48.59 lakhs which was 2.09%, 1.95% and 0.88% of our total income for the same period. The components of our other income were Interest income, foreign exchange gain, Sundry balances written back and profit on sale of fixed assets and investments.

Total Expenses

Raw materials consumed

Our cost of raw materials consumed for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 was 4,303.33 lakhs, 3,361.46 lakhs and 3,768.44 lakhs which was 51.15% 60.75% and 68.39% respectively of our total income for the same period.

Employee benefit expenses

Our employee benefit expenses for the year ended March 31, 2025,March 31, 2024 and March31, 2023 were 702.74 lakhs, 412.62 lakhs and 374.98 lakhs which was 8.35%, 7.46% and 6.81% respectively of our total income for the same period.

Finance Cost

Our Finance cost expenses for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 were 249.85 lakhs,

83.99 lakhs and 67.63 lakhs which was 2.97%, 1.52% and 1.23% respectively of our total income for the same period.

Depreciation and amortization

Our depreciation and amortization for the year ended 31 March 2025, 31 March 2024 and 31 March 2023 was 190.74 lakhs, 54.15 lakhs and 51.66 lakhs which was 2.27%, 0.98% and 0.94% of our total income for the same period.

Other expenses

Our other expenses for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 were 1,848.95 lakhs, 1,180.12 lakhs and 1,045.07 lakhs which was 21.98%, 21.33% and 18.97% of our total income for the same period. Our other expenses primarily consist of rent, labour expenses, freight expenses, and insurance.

Tax expenses

Our current tax expenses for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 was 308.31 lakhs, 130.08 lakhs and 51.03 lakhs respectively which was 3.66%, 2.35% and 0.93% of our total income for the same period.

Profit for the year

Our profit for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 was 760.54 lakhs, 318.00 lakhs and 149.22 lakhs which is 9.04%, 5.75% and 2.71% of our total income for the same period.

FISCAL 2025 COMPARED TO FISCAL 2024

Total revenue

Revenue from operations

Revenue from operation has increased by 51.85% to 8,237.85 lakhs in Fiscal 2025 from 5,425.02 lakhs in Fiscal 2024. Such increase was primarily attributable to Consolidation of our wholly owned Subsidiary Company. Revenue from operations from our holding and subsidiary company is 4,714.28 lakhs and 3,523.57 lakhs respectively.

Other income

Other income increased by 62.24% to 175.43 lakhs in Fiscal 2025 from 108.13 lakhs in Fiscal 2024. Such increase was primarily attributable to Consolidation of our wholly owned Subsidiary Company. Other income from our holding and subsidiary company is 65.30 lakhs and 110.13 lakhs respectively. There is a decrease in other income on the standalone basis due to reduction in the sundry balances written back.

Total expenses

Raw materials consumed

The cost of materials consumed increased by 28.02% to 4,303.33 lakhs in Fiscal 2025 from 3,361.46 lakhs in Fiscal 2024. This increase was primarily attributable to higher sales due to Consolidation of wholly owned Subsidiary Company. The cost of raw materials consumed from our holding and subsidiary Company is 2,340.82 lakhs and 1,962.51 lakhs respectively. Such decrease in cost of raw materials consumed on standalone basis is attributable to lower sales and higher inventory levels.

Employee benefit expenses

Employee benefits expenses increased by 70.31% to 702.74 lakhs in Fiscal 2025 from 412.62 lakhs in Fiscal 2024. This was predominantly due to Consolidation of our wholly owned subsidiary Company. Employee benefit expense from our holding and subsidiary Company is 392.29 lakhs and 310.45 lakhs respectively. Such decrease in Employee benefit expense on standalone basis is attributable to decrease in directors remuneration.

Finance Cost

Finance cost expense increased by 197.48 % to 249.85 lakhs in Fiscal 2025 from 83.99 lakhs in Fiscal 2024. Such increase was due to Consolidation of our wholly owned subsidiary Company. Finance cost from our holding and subsidiary Company is 122.40 lakhs and 127.45 lakhs respectively. Such increase in Finance cost on standalone basis is attributable to increase in interest cost on working capital loan and term loan.

Depreciation and amortization expense

Depreciation and amortization expense increased by 252.24 % to 190.74 lakhs in Fiscal 2025 from 54.15 lakhs in Fiscal 2024. Such increase was due to Consolidation our wholly owned subsidiary Company.

Other Expenses

Other expenses increased by 56.67 % to 1,848.95 lakhs in Fiscal 2025 from 1,180.12 lakhs in Fiscal 2024. Our other expenses primarily increased due to Consolidation our wholly owned subsidiary Company. Other expenses from our holding and subsidiary Company are 923.51 lakhs and 925.44 lakhs respectively. Such decrease on standalone basis is attributable to decrease in freight and transportation expenses.

Tax expenses

Our current tax expenses increased to 308.31 lakhs in 2025 from 130.08 lakhs in 2024. This was predominantly attributable to an increase in profit for the year due to consolidation of our wholly owned subsidiary Company.

Profit for the year

Our profit for the year increased by 139.16 % to 760.54 lakhs in Fiscal 2025 from 318.00 lakhs in Fiscal 2024. This increase is primarily attributable to a consolidation of our wholly owned subsidiary Company.

FISCAL 2024 COMPARED TO FISCAL 2023

Total revenue

Revenue from operations

Revenue from operation has decreased by 0.66% to 5,425.02 lakhs in Fiscal 2024 from 5,461.30 lakhs in Fiscal 2023. Such small decrease was primarily attributable to a decrease in sale of our manufactured products.

Other income

Other income increased by 122.54% to 108.13 lakhs in Fiscal 2024 from 48.59 lakhs in Fiscal 2023. Such increase was primarily attributable to an increase in sundry balance written back and foreign exchange gain.

Total expenses

Raw materials consumed

The cost of materials consumed decreased by 10.80% to 3,361.46 lakhs in Fiscal 2024 from 3,768.44 lakhs in Fiscal

2023. This decrease was primarily due to the normalization of raw material prices, which had surged after COVID-19 but gradually declined thereafter. As a result, the cost of raw materials consumed in Fiscal 2024 was lower than in the previous period.

Employee benefit expenses

Employee benefits expenses increased by 10.04% to 412.62 lakhs in Fiscal 2024 from 374.98 in Fiscal 2023. This was predominantly due to increase in workforce along with increase in salaries, wages, director remuneration, contribution to provident and other funds and staff welfare expenses. This was consequent to an increase in our number of employees, growth in annual salaries as well as an incremental rise in minimum wages.

Finance Cost

Finance cost expense increased by 24.19% to 83.99 lakhs in Fiscal 2024 from 67.63 lakhs in Fiscal 2023.

Depreciation and amortization expense

Depreciation and amortization expense increased by 4.82% to 54.15 lakhs in Fiscal 2024 from 51.66 lakhs in Fiscal 2023.

Other Expenses

Other expenses increased by 12.92% to 1,180.12 lakhs in Fiscal 2024 from 1,045.07 lakhs in Fiscal 2023. Our other expenses primarily increased due to increase in Freight & Transportation expense and Labour charges.

Tax expenses

Our current tax expenses increased to 130.08 lakhs in 2024 from 51.03 lakhs in 2023. This was predominantly due to an increase in profit for the year.

Profit for the year

Our profit for the year increased by 113.22% to 318.00 lakhs in Fiscal 2024 from 149.22 lakhs in Fiscal 2023. This increase is primarily attributable to a decrease in raw material consumption, as explained above, and lower tax expenses. The reduction in raw material costs led to an improvement in the Companys margins, resulting in a higher Profit After Tax.

DISCUSSION ON THE STATEMENT OF CASH FLOWS

The following table sets forth certain information relating to our Companys statement of cash flows for the periods indicated:

	Consolidated	Standalone
Particulars	FY 2025	FY 2024	FY 2023
Net cash flows from operating activities	1,009.55	(134.01)	(66.13)
Net cash flows from investing activities	(842.33)	(100.89)	21.34
Net cash flows from financing activities	(153.26)	201.26	(114.46)

Operating activities

In Fiscal 2025, net cash generated from operating activities was 1,009.55 lakhs. This comprised of Profit before tax of 1,117.67 lakhs which was adjusted for depreciation and amortization expense of 190.74 lakhs, Interest income of 8.78 lakhs, net sundry balance written back 144.15 lakhs and Finance Cost of 249.85 lakhs. The resultant operating profit before working capital changes was 1,405.33 lakhs, which was further adjusted for working capital changes.

In Fiscal 2024, net cash generated from operating activities was (134.01) lakhs. This comprised of the profit before tax of 440.81 lakhs, which was primarily adjusted for depreciation and amortization expenses of 54.15 lakhs, interest income of 4.13 lakhs, net sundry balance written back 92.20 lakhs and Finance Cost of 83.99 lakhs. The resultant operating profit before working capital changes was 482.62 lakhs, which was further adjusted for working capital changes.

In Fiscal 2023, net cash generated from operating activities was (66.13) lakhs. This comprised of the profit before tax of 202.11 lakhs, which was primarily adjusted for depreciation and amortization expenses of 51.66 lakhs, interest income of 5.73 lakhs, net sundry balance written back 32.53 Lakhs, gain on sale of mutual funds of 1.58 Lakhs and Finance Cost of 67.63 lakhs. The resultant operating profit before working capital changes was 281.56 lakhs, which was further adjusted for working capital changes.

Investing activities

In Fiscal 2025, net cash used in investing activities was 842.33 lakhs, which primarily comprised of addition to property, plant, and equipment (net of capital work in progress) of 185.82 lakhs, interest income of 8.78 lakhs and investment in subsidiary of 665.29 lakhs.

In Fiscal 2024, net cash used in investing activities was 100.89 lakhs, which primarily comprised of addition to property, plant, and equipment (net capital work in progress) of 105.02 lakhs and interest income of 4.13 lakhs.

In Fiscal 2023, net cash generated from investing activities was 21.34 lakhs, which primarily comprised of addition to property, plant, and equipment (net of capital work in progress) of 36.20, Proceeds from sale of mutual funds of 51.81 lakhs and interest income of 5.73 lakhs.

Financing activities

In Fiscal 2025, net cash used in financing activities was 153.26 lakhs which comprised of repayment of long term borrowings of 100.39 lakhs, proceeds of short-term borrowings of 196.99 lakhs and Finance cost of 249.85 lakhs.

In Fiscal 2024, net cash generated from financing activities was 201.26 lakhs which comprised of proceeds of long term and short-term borrowings of 69.86 lakhs and 215.39 lakhs respectively and Finance cost of 83.99 lakhs.

In Fiscal 2023, net cash used in financing activities was 114.46 lakhs which comprised of repayment of long term and short-term borrowings of 30.89 lakhs and 15.93 lakhs respectively and Finance cost of 67.63 lakhs.

Contingent Liabilities

As on March 31, 2025, the Company does not have any contingent liabilities.

OTHER MATTERS

1. Significant economic changes that materially affect 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 pages.54 and 191 respectively of Red Herring Prospectus respectively, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

2. 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 chapter titled "Risk Factors" and "Managements Discussion and Analysis of

Financial Conditions and Result of Operations", beginning on page 26 and 191 respectively of Red Herring Prospectus, best 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.

3. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" beginning on page 26 of Red Herring Prospectus, best 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.

4. Any significant dependence on single or few suppliers or customers

The income from top ten customers comprises of 75.83% 96.39% and 97.60% of our Revenue from Operation for the year ended March 31, 2025, March 31, 2024 and March 31 2023 respectively. The purchases from top ten supplier comprises of 80.45%, 85.06% and 86.15% of our total purchases for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively. For further details, please refer chapter "Risk Factors" beginning on page 26 of Red Herring Prospectus.