Bhavik Enterprises Ltd Management Discussions

OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the Financial Years 2025, 2024 and 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 192 of this Prospectus. Our Restated Financial Statements have been derivedfrom our auditedfinancial statements and restated in accordance with the SEBIICDR Regulations and the ICAI Guidance Note. Our restated financial statements are prepared in accordance with applicable accounting standards.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Prospectus. You should also read the section titled “Risk Factors” beginning on page 28 of this 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 Bhavik Enterprises Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements” for the Financial Years 2025, 2024 and 2023 included in this Prospectus beginning on page 192.

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 and overseas market in which we operate, changes in government regulations, tax laws and other statutes and incidental factors.

OVERVIEW

Incorporated on September 15, 2008, we are engaged in trading of polymers primarily in Polyethylene (PE) and Polypropylene (PP) which has a wider usage and application in various industries such as packaging, infrastructure, agriculture and many more. We provide a broad range of products to our customers which increases the scope of our customers and our ability to cater to a diversified clientele base. Our comprehensive product portfolio under Polyethylene (PE) includes LLDPE, LDPE, HDPE and MLLDPE. Under Polypropylene (PP), our product portfolio consists of Homo polymer, Impact Co-polymer and Random Co-polymer. Our companys business model emphasizes "Stock & Sale" catering to small, medium and large customers as per their requirement. We are presently engaged in the domestic B2B trading of polymer, wherein we import the material and store the same at our warehouses and depots and sell them thereafter to manufacturer of plastic product. These end use customers include manufacturers of pressure pipes, non-pressure pipes, drip pipe, shrink film, lamination film, mulch film, greenhouse films, CPP films, liners, EPE foam, woven sack bags, spun bond nonwoven fabric, paint pails, crates, houseware products, suitcases, thin wall containers.

Polyethylene (PE) and Polypropylene (PP) are two of the most consumed thermoplastic components in the world. PE is the most commonly produced and consumed polymer compound globally. If finds application in a wide range of products, ranging from every day usage products to niche products. Some of the uses of PE include usage in manufacture of PET bottles, bags & food containers, pipes & pipe fittings. Flexible packaging films, and medical implants, to name a few. The popularity of polypropylene stems from its unique blend of properties including flexibility, moisture resistance, superior impact strength, insulation properties, and the smallest impact¹ on environment amongst all popular thermoplastics. These unique properties & attributes has led to its usage as mouldings, fibers, tape, foam, and film. In these separate forms PP is used across a wide range of industries including automotive, plastic packaging, technical textiles, and plastic parts used in machinery/equipments. This widespread usage pattern of PP in its various forms across multiple industries has given the commodity a strong and varied demand base. (Source: D&B Reports)

Our Company is an authorized distributor of Borouge Pte Ltd to market and sell “Borouge” products in India. Borouge Pte Ltd is a Singapore based multinational company which is engaged in manufacturing and distribution of Polyethylene (PE) and Polypropylene (PP) and related compounds. We also share business relation with another petrochemical multinational company i.e., Basell International Trading FZE, a Dubai based Company from whom we are regularly importing the “LyondellBasell” products and sell it in India. Basell International Trading FZE is the producers of versatile plastic resins,

such as polypropylene, polypropylene compounds and polyethylene. We import the products from these overseas suppliers and sell it in domestic market as per prevailing market price.

Following is our revenue bifurcation on the basis of our products category for the financial years ending March 31, 2025 and the preceding two fiscals:

(€ in lakhs)

Product / Vertical	FY 2024-25*		FY 2023-24*		FY 2022-23*
	Revenue from Operations	%	Revenue from Operations	%	Revenue from Operations	%
Polypropylene	23,514.83	44.60%	21,265.45	43.04%	23,481.87	48.19%
Polyethylene	29,211.88	55.40%	28,146.92	56.96%	25,244.70	51.81%
Total	52,726.71	100%	49,412.37	100%	48,726.56	100%

*As certified by our Auditors, by way of their certificate dated September 01, 2025.

Our business in polymers industry has been established four decades ago. Our promoter, Mr. Mukesh Natverlal Thakkar has started his carrier with the trading business of plastic raw material in the year of 1977 through his proprietorship firm “M/s. Emmen Plastics”. Further a partnership firm “M/s Bhavik Enterprises” has been established in the year of 1984 by one of our promoters, Mrs. Purnima Mukesh Thakkar which was dealing in all kind of plastic powder and allied lines. In the year of 1992, Mr. Mukesh Natverlal Thakkar has joined the said partnership firm through Mukesh N Thakkar HUF. Our Company was incorporated on September 15, 2008, as a public Limited Company in the name of “Bhavik Enterprises Limited under the provisions of the Companies Act, 1956 with the Registrar of Companies, Mumbai, Maharashtra. Subsequently our Company has acquired the entire running business of “M/s. Emmen Plastics” and “M/s Bhavik Enterprises” on a going concern basis, along with all its assets and liabilities, through a Business Transfer Agreement dated January 22, 2009.

Currently we are supplying our products in various states of India includes Gujarat, Maharashtra, Rajasthan, Diu-daman, Uttar Pradesh, Telangana, Chhattisgarh, Madhya Pradesh, Haryana, Delhi. A majority of our sales are derived from the states of Maharashtra, Gujarat, Rajasthan, and the Union Territory of Diu and Daman. For the financial years ended March 31, 2025, 2024, and 2023, our sales from these four regions amounted to Rs47,685.27 Lakhs, Rs41,940.1 Lakhs and Rs41,350.2 Lakhs respectively, constituting 90.44%, 84.88% and 84.87%, of our Revenue from Operations for the respective periods. We gradually intend to expand our business operations to other states of the country as well as into global markets also. We focus on maintaining a seamless supply chain by leveraging our expertise in logistics, procurement, pricing and ensuring timely deliver to our customers. For the financial year ended March 31, 2025, 2024 and 2023, we have supplied 54,247.63 metric tons, 50,300.90 metric tons and 44,524.10 metric tons respectively of polymers, underscoring our operational scale and growth trajectory.

Our Company is certified with ISO 9001:2015, committed to ensuring traceability in our supply chain, which has become increasingly important in the global trade of polymers. By adhering to good practices in procurement, storage, and transportation, we ensure that our product is delivered to the customers in timely manner. Our operations are also guided by our focus on sustainability and ethical trading. Our Company works closely with its alliance to adopt practices that align with environmental and social governance principles. This includes ensuring fair practices in sourcing and distribution. By integrating sustainability into our business model, we aim to contribute positively to the communities we operate in, while addressing the evolving expectations of our stakeholders.

We are led by our promoters Mr. Mukesh Natverlal Thakkar, Mr. Bhavik Mukesh Thakkar and Mrs. Purnima Mukesh Thakkar. Mr. Mukesh Natverlal Thakkar and Mrs. Purnima Mukesh Thakkar are having more than four-decade experience in the plastic polymers Industry. Mr. Bhavik Mukesh Thakkar has more than 15 years of experience in the plastic polymers Industry. Our Promoters remains deeply involved in the day-to-day operations, bringing their business acumen and leadership to our Company, which has been instrumental in sustaining our business operations and growth. We attribute our market position to the vision and experience of our Promoters, KMPs and also senior management who have demonstrated their ability to anticipate and capitalize on changing market trends. For further details of our promoters and our management, please see chapter titled “Our Promoters and Promoter Group” and “Our Management” on pages 184 and 169 of this Prospectus.

KEY FINANCIAL PERFORMANCE

The table below sets forth the key performance indicators of our business as of/for the periods indicated:

(Rs in Lakhs)

Key Financial Performance	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from Operations (1)	52,726.71	49,412.37	48,726.56
EBITDA (2)	393.84	482.72	1,746.01
EBITDA Margin (%) (3)	0.75%	0.98%	3.58%
PAT (4)	568.19	789.12	1,555.97
PAT Margin (%) (5)	1.08%	1.60%	3.19%
Return on Equity (%) (6)	5.97%	8.93%	20.30%
Return on Capital Employed (7)	7.84%	11.55%	24.70%
Debt to Equity Ratio (times) (8)	NA	NA	NA
Net Fixed Asset Turnover Ratio (9)	456.80	366.08	316.11
Current Ratio (times) (10)	2.15	2.91	2.04

Notes: As certified by our Auditors, by way of their certificate dated September 01, 2025.

Explanation of KPIs:

1) Revenue from operation means revenue from sales and other operating revenues

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

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

4) PAT is calculated as Profit before tax - Tax Expenses

5) PA T Margin is calculated as PA T for the year divided by revenue from operations

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

7) Return on Capital Employed is ratio of EBIT and Capital Employed, where Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax Liability

8) Debt to Equity ratio is calculated as Long Term Debt + Short Term Debt divided by equity

9) Net Fixed asset turnover is calculated as revenue from operations divided by the sum of tangible and intangible assets

10) Current Ratio is calculated by dividing Current Assets to Current Liabilities

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025 THAT MAY AFFECT OUR FUTURE RESULTS OF OPERATIONS

Except as discussed below and elsewhere in this Prospectus, in the opinion of the Board of Directors of our Company, since the date of the stub period as disclosed in this Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

• Our Company has approved the Audited Financial Statements for the financial years ended on March 31, 2025 pursuant to a resolution passed by the Board of Directors at their meeting held on August 01, 2025 and through ordinary resolution passed by the Shareholders of our Company at their Annual General Meeting dated August 23, 2025.

• Our Company has approved the Restated Financial Information for the financial years ended on March 31, 2025, March 31, 2024 and March 31, 2023, respectively, by the Board of Directors pursuant to a resolution passed at their meeting held on September 01, 2025.

• The Board of the Company has approved Draft Prospectus and Prospectus in the board meeting held on April 25, 2025 and September 18, 2025 respectively.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our financial performance and results of operations are influenced by a number of important factors, some of which are beyond our control, including without limitation, intense domestic competition, general economic conditions, changes in conditions in the regional markets in which we operate, changes in costs of raw materials and supplies and evolving government regulations and policies. Some of the more important factors are discussed below, as well as in the section titled “Risk Factors" beginning on page 28 of this Prospectus. Our Companys future results of operations could be affected potentially by the following factors:

• We derive our revenue from trading of polymers for which we are dependent on certain suppliers for our operations and an increase in the cost of, or a shortfall in the availability or quality of such products could have an adverse effect on our business, financial condition and results of operations;

• Termination or non-renewal of the distribution agreements by Borouge Pte Ltd. or any material modification to the existing terms under such agreements adverse to our interest will materially and adversely affect our ability to continue our business and operations and our future financial performance

• Our ability to successfully implement our growth strategy and expansion plans;

• We derive our revenue from the domestic market and substantial portion of revenue from the western region of India i.e. Gujarat Maharashtra, Rajasthan and the Union Territory of Dadra and Nagar Haveli and Daman and Diu i.e. Daman & Silvassa. Any adverse developments affecting our operations in western region could have an adverse impact on our revenue and results of operations;

• Any disruption at the ports in western region of India may adversely affect our business and operational performance

• Our ability to attract and retain personnel;

• Restrictions on import may adversely impact our business, cash flows and results of operations;

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

• Changes in government policies and regulatory actions that apply to or affect our business;

• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;

• The occurrence of natural disasters or calamities;

• Our inability to maintain or enhance our brand recognition;

• Other factors beyond our control; and

• Our ability to manage risks that arise from these factors.

SIGNIFICANT ACCOUNTING POLICIES

For Significant accounting policies please refer “Significant Accounting Policies to the Restated Financial Statements",

under Section titled “Financial Information" beginning on page 192 of the Prospectus.

KEY COMPONENTS OF COMPANYS BALANCE SHEET

The following table sets forth select financial data derived from our restated statement of Balance Sheet as at Fiscal 2025,

2024 and 2023:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Liabilities
Trade Payables	7,471.64	4,098.78	7,016.23
Other current liabilities	24.17	258.82	135.70
Assets
Property, plant and equipment	115.43	134.98	154.14
Long Term Loan and Advances	1,077.86	657.68	657.68
Inventories	6,691.66	2,798.75	4,449.23
Trade receivables	6,017.21	3,465.52	4,157.22
Cash and Bank Balance	2,660.17	6,109.72	6,123.46
Short Term Loan and Advances	745.38	352.78	109.89

COMPARISON OF FISCAL 2025 TO FISCAL 2024 Trade Payables

239

Particulars	Fiscal 2025	Fiscal 2024
Total outstanding dues to micro and small enterprises	123.77	46.11
Total outstanding dues of creditors other	7,347.87	4,052.67
Total	7,471.64	4,098.78

Trade payables have increased from Rs4,098.78 lakhs in Fiscal 2024 to Rs7,471.64 lakhs in Fiscal 2025 as company has increased its total purchases from Rs46,188.51 lakhs in Fiscal 2024 to Rs56,394.53 lakhs in Fiscal 2025.

Other current liabilities

Particulars	Fiscal 2025	Fiscal 2024
Other current liabilities	24.17	258.82

Other current liabilities primarily include Statutory remittance (GST Payable) and Advance from customers. It has decreased from Rs258.82 lakhs in Fiscal 2024 to Rs24.17 lakhs in Fiscal 2025 as Statutory remittance (GST Payable) have decreased to Nil in Fiscal 2025 from Rs181.20 lakhs in Fiscal 2024.

Property, plant and equipment

Particulars	Fiscal 2025	Fiscal 2024
Property, plant and equipment	115.43	134.98

Property, plant and equipment have decreased from Rs134.98 lakhs in Fiscal 2025 to ^115.43 lakhs in Fiscal 2024 majorly on account of depreciation charged of Rs20.28 lakhs.

Long Term Loan and Advances

Particulars	Fiscal 2025	Fiscal 2024
Long Term Loan and Advances	1,077.86	657.68

Long term loans and Advances primarily includes Advances paid against property. It has increased from Rs657.68 lakhs in Fiscal 2024 to Rs1,077.86 lakhs in Fiscal 2025 primarily due to Rs300.00 lakhs advances paid against a property in Fiscal 2025.

Inventories

Particulars	Fiscal 2025	Fiscal 2024
Inventories	6,691.66	2,798.75

Inventories include Finished Goods and Goods in Transit. Inventories have increased from Rs2,798.75 lakhs to Rs6,691.66 lakhs as company has increased its total purchases from Rs46,188.51 lakhs in Fiscal 2024 to Rs56,394.53 lakhs in Fiscal 2025. Companys Inventory turnover ratio has also decreased from 12.96 times in Fiscal 2024 to 10.57 times in Fiscal 2025.

Trade receivables

Particulars	Fiscal 2025	Fiscal 2024
Trade receivables	6,017.21	3,465.52

Trade receivables of the company has increased from Rs3,465.52 lakhs Fiscal 2024 to Rs6,017.21 lakhs in Fiscal 2025. The sales of the company have also increased from Rs49,412.37 lakhs in Fiscal 2024 to Rs52,726.71 lakhs in Fiscal 2025. Companys Trade Receivable turnover ratio has also decreased from 12.96 times in Fiscal 2024 to 11.12 times in Fiscal 2025.

Cash and Bank Balance

Particulars	Fiscal 2025	Fiscal 2024
Cash and Bank Balance	2,660.17	6,109.72

Cash and Bank Balances includes Cash on hand, Balances with Banks in current account and Term deposits. Companys Cash and Bank Balances have decreased as company has utilised its to purchase inventory which has increased from Rs2,798.75 lakhs in Fiscal 2024 to Rs6,691.66 lakhs in Fiscal 2025.

Short Term Loan and Advances

Particulars	Fiscal 2025	Fiscal 2024
Short Term Loan and Advances	745.38	352.78

Short Term Loan and Advances have increased Rs352.78 lakhs in Fiscal 2024 to Rs745.38 lakhs in Fiscal 2025 primarily due to increase in Balances with Government Authorities (GST credit) which has increased from Nil in Fiscal 2024 to Rs550.01 lakhs.

COMPARISON OF FISCAL 2024 TO FISCAL 2023 Trade Payables

Particulars	Fiscal 2024	Fiscal 2023
Total outstanding dues to micro and small enterprises	46.11	40.58
Total outstanding dues of creditors other	4,052.67	6,975.64
Total	4,098.78	7,016.23

Trade payables have decreased from Rs7,016.23 lakhs in Fiscal 2023 to Rs4,098.78 lakhs in Fiscal 2024. Companys average Trade payables turnover ratio has also increased from 7.71 times in Fiscal 2023 to 8.31 times in Fiscal 2024.

Other current liabilities

Particulars	Fiscal 2024	Fiscal 2023
Other current liabilities	258.82	135.70

Other current liabilities primarily include Statutory remittance (GST Payable) and Advance from customers. It has increased from Rs135.70 lakhs in Fiscal 2023 to Rs258.82 lakhs in Fiscal 2024 as Statutory remittance (GST Payable) have increased to Rs181.20 in Fiscal 2024 from Rs43.50 lakhs in Fiscal 2023.

Property, plant and equipment

Particulars	Fiscal 2024	Fiscal 2023
Property, plant and equipment	134.98	154.14

Property, plant and equipment have decreased from Rs154.14 lakhs in Fiscal 2024 to Rs134.98 lakhs in Fiscal 2023 majorly on account of depreciation charged of Rs20.34 lakh.

Long Term Loan and Advances

Particulars	Fiscal 2024	Fiscal 2023
Long Term Loan and Advances	657.68	657.68

Long term loans and Advances primarily includes Advances paid against property. It has remained constant during the year.

Inventories

Particulars	Fiscal 2024	Fiscal 2023
Inventories	2,798.75	4,449.23

Inventories include Finished Goods and Goods in Transit. Inventories have decreased from Rs4,449.23 lakhs to Rs2,798.75 lakhs. Companys Inventory turnover ratio has also increased from 12.85 times in Fiscal 2023 to 12.96 times in Fiscal 2024.

Trade receivables

Particulars	Fiscal 2024	Fiscal 2023
Trade receivables	3,465.52	4,157.22

Trade receivables of the company has decreased from Rs4,157.22 lakhs Fiscal 2024 to Rs3,465.52 lakhs in Fiscal 2024. Companys Trade Receivable turnover ratio has also increased from 12.35 times in Fiscal 2023 to 12.96 times in Fiscal 2024.

Cash and Bank Balance

Particulars	Fiscal 2024	Fiscal 2023
Cash and Bank Balance	6,109.72	6,123.46

Cash and Bank Balances includes Cash on hand, Balances with Banks in current account and Term deposits. Companys Cash and Bank Balances have remained constant during the year.

Short Term Loan and Advances

Particulars	Fiscal 2024	Fiscal 2023
Short Term Loan and Advances	352.78	109.89

Short Term Loan and Advances have increased Rs109.89 lakhs in Fiscal 2023 to Rs352.78 lakhs in Fiscal 2024 primarily due to increase in Advances recoverable in cash or kind (includes Custom duty paid) which has increased from Rs93.78 in Fiscal 2023 to Rs343.67 lakhs in Fiscal 2024.

DISCUSSION ON RESULTS OF OPERATION

The following table sets forth select financial data from restated profit and loss accounts for the financial year ended on March 31, 2024, March 31, 2023 and March 31, 2022 and the components of which are also expressed as a percentage of total income for such periods.

(Z in Lakhs)

Particulars	For the year ended March 31, 2025		For the year ended March 31, 2024		For the year ended March 31, 2023
	RsIn Lakhs	%	Rs In Lakhs	%	Rs In Lakhs	%
Income
Revenue from operations	52,726.71	99.21%	49,412.37	98.76%	48,726.56	99.22%
Other income	419.31	0.79%	622.40	1.24%	382.28	0.78%
Total income (I + II)	53,146.02	100.00%	50,034.76	100.00%	49,108.85	100.00%
Expenses
Purchase Cost	53,394.53	100.47%	46,188.51	92.31%	45,621.65	92.90%
Operating Cost	1,739.54	3.27%	1,483.31	2.96%	1,317.92	2.68%
Changes in inventories of Stock in Trade	(3,233.78)	(6.08%)	795.05	1.59%	(417.79)	(0.85%)
Employee benefit expense	225.10	0.42%	172.96	0.35%	162.03	0.33%
Finance costs	24.34	0.05%	19.08	0.04%	34.18	0.07%
Depreciation and amortisation expense	20.28	0.04%	20.34	0.04%	7.23	0.01%
Other expenses	207.48	0.39%	289.82	0.58%	296.75	0.60%
Total expenses (IV)	52,377.49	98.55%	48,969.06	97.87%	47,021.96	95.75%
Profit before tax (III - IV)	768.53	1.45%	1,065.70	2.13%	2,086.89	4.25%
Tax expense
Current tax	203.50	0.38%	278.79	0.56%	529.86	1.08%
Deferred tax expense/ (credit)	(3.17)	(0.01%)	(2.20)	Negligible	1.05	Negligible
Total tax expense (VI)	200.34	0.38%	276.59	0.55%	530.91	1.08%
Profit for the year (V -VI)	568.19	1.07%	789.12	1.58%	1,555.97	3.17%

Note: (%) column represents percentage of total income.

KEY COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS BASED ON OUR RESTATED FINANCIAL STATEMENTS INCOME

Total Income

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

Revenue from operations

Revenue from operations mainly consists from Sale of Products & Freight charges recovered.

Other Income

Other income includes foreign fluctuation gain, interest income & License Discount.

Expenditure

Our total expenditure primarily consists of Purchase Cost, Operating Expenses, Changes in inventories of Stock in Trade, Employee Benefit Expenses, Finance costs, Depreciation and amortization expense & Other expenses

Purchase Cost

Purchase cost is the aggregate of Purchases during the year, Custom Duty, Rebate received on purchases, Social Welfare Surcharge, Remission of Duty and Freight Charges & Insurance.

Operating Cost

Operating cost is the aggregate of Clearing & Forwarding Charges, Container Mover Charges, Loading & Unloading Charges & Transportation.

Changes in inventories

Changes in inventories comprises of increase/decrease in stock in trade.

Employee Benefit Expenses

Employee benefit expenses include Contribution to Salaries, Wages and Bonus, Directors Remuneration & Bonus, Sitting Fees paid to Directors, Gratuity Expenses and Staff welfare expenses.

Finance Costs

Our finance cost includes Bank Charges/Commission, Interest on TDS, GST, Customs and Income tax, & Interest Expense others.

Depreciation & Amortization

Depreciation & amortization includes depreciation on tangible assets.

Other Expenses

Other Expenses includes Advertisement Expenses, Auditors Remuneration, Bad Debt, insurance expenses, legal and professional fees, office expenses, rent, repairs and maintenance, Software and IT related expense, trade discount, telephone expenses, travelling expenses, website expenses etc.

Total Tax expense

Total Tax Expense includes Current Tax & Deferred tax expense. Current tax is computed in accordance with relevant tax regulations. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date.

COMPARISON OF FINANCIAL YEAR ENDED MARCH 31, 2025 TO FINANCIAL YEAR ENDED MARCH 31, 2024

Income

Total Revenue

Our total revenue increased by 6.22% to Rs53,146.02 Lakhs for Fiscal 2025 from Rs50,034.76 Lakhs for Fiscal 2024. Revenue from Operations

Our revenue from operations increased by 6.71% to Rs52,726.71 Lakhs for Fiscal 2025 from Rs49,412.37 Lakhs for Fiscal 2024. The companys revenue increased marginally because it has depleted its internal funds, reaching a point where growth from owned capital is no longer possible. As a result, the company now requires external capital to finance its working capital needs, which has led to a stagnation in revenue growth.

Other Income

During the Fiscal 2025 the other income of our Company decreased to ^419.31 Lakhs as against Rs622.40 Lakhs in the Fiscal 2024 representing a decrease of 32.63%. The main reason of decrease was due to decrease in Gain on fluctuation in foreign currency which decreased to Rs172.90 Lakhs as against Rs335.29 Lakhs in the Fiscal 2024.

Expenditure

Purchase Cost

The purchase expense increased by 15.60% to Rs53,394.53 Lakhs for Fiscal 2025 from Rs46,188.51 Lakhs for Fiscal 2024. The company has increased its inventory Rs2,798.75 lakhs in Fiscal 2024 to 6,691.66 lakhs in Fiscal 2025 and its operations have also increased marginally by 6.71%, both of these factors have contributed to increase in purchase cost in Fiscal 2025.

Operating Cost

The operating cost increased by 17.27% to Rs1,739.54 Lakhs for Fiscal 2025 from ^1,483.31 Lakhs for Fiscal 2024. This was primarily attributable to increase in clearing & forwarding charges and increase in Container Mover charges.

Changes in inventories

Change in inventory was (Rs3,233.78) Lakhs during the Fiscal 2025 as compared to Rs795.05 Lakhs in the Fiscal 2024. The change of (506.74)% was due to increase in closing stock of inventories.

Employee Benefit Expenses

The employee benefits expense increased by 30.15% to Rs225.10 Lakhs for Fiscal 2025 from Rs172.96 Lakhs for Fiscal 2024. This was primarily attributable to increase in Salaries, wages and bonus & Directors Remuneration & Bonus as compared to the previous year.

Finance costs

These costs for the financial Year Fiscal 2025 increased to Rs24.34 Lakhs as against Rs19.08 Lakhs during the Fiscal 2024. The increase of 27.57% was due to increase in Bank Charges/commission.

Depreciation & Amortization

Our depreciation decreased by 0.28% to Rs20.28 Lakhs for Fiscal 2025 from Rs20.34 Lakhs for Fiscal 2024. This decrease was due to WDV method of depreciation followed by the company.

Other Expenses

Our other expenses has decreased by 28.41% to Rs207.48 Lakhs for Fiscal 2025 from Rs289.82 Lakhs for Fiscal 2024. The principal reason for the decrease in expenses was decrease in Business Promotion expenses & Travelling and Conveyance Expenses in current year.

Tax Expense

Our Tax Expense decreased from Rs276.59 lakhs in Fiscal 2024 to Rs200.34 lakhs for Fiscal 2025, primarily due to decrease in Profit before Tax.

Profit after tax

Profit after tax has decreased substantially by 28.00% from Rs789.12 lakhs for Fiscal 2024 to Rs568.19 lakhs for Fiscal 2025. The companys profits have decreased in Fiscal 2025 compared to Fiscal 2024 and its margins have also decreased from 8.55% in Fiscal 2024 to 5.80% Fiscal 2025. This has decreased mainly on account of decrease in average selling price of products of the company as it has decreased from Rs98,233.56 per Metric Ton in Fiscal 2024 to Rs97,196.33 per Metric Ton in Fiscal 2025 details of which are given below:

Particulars	Fiscal 2025	Fiscal 2024
Revenue from operations (Rs in Lakhs)	52,726.71	49,412.37
Metric Ton Supplied	54,247.63	50,300.90
Average Selling price per Metric Ton (Rs)	97,196.33	98,233.56

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

Income

Total Revenue

Our total revenue increased marginally by 1.89% to Rs50,034.76 Lakhs for Fiscal 2024 from Rs49,108.22 Lakhs for Fiscal 2023.

Revenue from Operations

Our revenue from operations increased marginally by 1.41% to Rs49,412.37 Lakhs for Fiscal 2024 from Rs48,726.56 Lakhs for Fiscal 2023. The companys revenue has not increased significantly because it has depleted its internal funds, reaching a point where growth from owned capital is no longer possible. As a result, the company now requires external capital to finance its working capital needs, which has led to a stagnation in revenue growth.

Other Income

During the Fiscal 2024 the other income of our Company increased to Rs622.40 Lakhs as against Rs382.28 Lakhs in the Fiscal 2023 representing a increase of 62.81%. The main reason of increase was due to increase in Gain on fluctuation in foreign currency which increased to Rs335.29 Lakhs as against ^113.49 Lakhs in the Fiscal 2023.

Expenditure

Purchase Cost

The purchase expense increased marginally by 1.24% to Rs46,188.51 Lakhs for Fiscal 2024 from Rs45,621.65 Lakhs for Fiscal 2023. This was primarily attributable to increase in custom duty.

Operating Cost

The operating cost increased by 12.55% to ^1,483.31 Lakhs for Fiscal 2024 from t1,317.92 Lakhs for Fiscal 2023. This was primarily attributable to increase in clearing & forwarding charges and increase in Container Mover charges.

Changes in inventories

Change in inventory was t795.05 Lakhs during the Fiscal 2024 as compared to t(417.79) Lakhs in the Fiscal 2023. The change of (290.30) % was due to decrease in closing stock of inventories.

Employee Benefit Expenses

The employee benefits expense increased by 6.75% to t172.96 Lakhs for Fiscal 2024 from t162.03 Lakhs for Fiscal 2023. This was primarily attributable to increase in Salaries, wages and bonus as compared to the previous year.

Finance costs

These costs for the financial Year Fiscal 2024 decreased to t19.08 Lakhs as against t34.18 Lakhs during the Fiscal 2023. The decrease of 44.18% was due to decrease in Bank Charges/commission.

Depreciation & Amortization

Our depreciation increased by 181.32% to t20.34 Lakhs for Fiscal 2024 from t7.23 Lakhs for Fiscal 2023. This was primarily due to purchase of vehicle of t 43.92 lakhs in later part of Fiscal 2023 on which depreciation of full year was charged in Fiscal 2024.

Other Expenses

Our other expenses increased has decreased by 2.33% to t289.82 Lakhs for Fiscal 2024 from t296.75 Lakhs for Fiscal

2023. The principal reason for the decrease in expenses was decrease in trade discount in current year.

Tax Expense

Our Tax Expense decreased from t530.91 lakhs in Fiscal 2023 to t276.59 lakhs for Fiscal 2024, primarily due to decrease in Profit before Tax.

Profit after tax

Profit after tax has decreased substantially by 49.28% from t1,555.97 lakhs for Fiscal 2023 to t789.12 lakhs for Fiscal

2024. The companys profits have decreased in Fiscal 2024 compared to Fiscal 2023 due to the exceptional performance in the previous year. In Fiscal 2023, profit margins were significantly higher, driven by increased prices in domestic markets and the companys ability to source materials at lower costs from foreign suppliers, as it is an authorized distribut or for “Borouge Pte Ltd”. With international rates being lower, the company was able to sell goods at higher margins, which boosted profits. However, this favorable situation has reverted to normal in Fiscal 2024, resulting in a reduction in profit margins.

CASH FLOWS

Cash Flows

(Z in lakhs)

Particulars	March 31, 2025	March 31, 2024	March 31, 2023
Net Cash from Operating Activities	(3,295.93)	(276.74)	1,435.80
Net Cash from Investing Activities	(153.47)	265.50	(146.11)
Net Cash from Financing Activities	(0.14)	(2.51)	(0.68)

Cash Flows from Operating Activities

For the financial year ended March 31, 2025

Our net cash used in operating activities was t3,295.93 Lakhs for the financial year ended March 31, 2025. Our operating profit before working capital changes was t561.62 Lakhs for the financial year ended March 31, 2025 which was primarily adjusted against increase in trade receivables by t2,551.69 Lakhs, increase in inventories by t1,650.48 Lakhs, increase in

Short term loans & advances by Rs392.61 Lakhs, decrease in trade payables by Rs3,359.27 Lakhs, decrease in provision by Rs43.67 Lakhs and direct tax paid of Rs198.37 Lakhs.

For the financial year ended March 31, 2024

Our net cash used in operating activities was U276.74 Lakhs for the financial year ended March 31, 2024. Our operating profit before working capital changes was Rs869.82 Lakhs for the financial year ended March 31, 2024 which was primarily adjusted against decrease in trade receivables by Rs691.70 Lakhs, decrease in inventories by Rs1650.48 Lakhs, increase in Short term loans & advances by U242.88 Lakhs, decrease in trade payables by Rs2,961.65 Lakhs, decrease in provision by Rs191.05 Lakhs and direct tax paid of Rs178.32 Lakhs.

For the financial year ended March 31, 2023

Our net cash generated from operating activities was Rs1,435.80 Lakhs for the financial year ended March 31, 2023. Our operating profit before working capital changes was Rs1,803.51 Lakhs for the financial year ended March 31, 2023 which was primarily adjusted against increase in trade receivables by Rs421.98 Lakhs, increase in inventories by Rs1,863.31 Lakhs, decrease in Short term loans & advances by Rs54.72 Lakhs, increase in trade payables by Rs2,269..98 Lakhs, increase in provision by Rs132.86 Lakhs and direct tax paid of Rs602.33 Lakhs.

Cash Flows from Investment Activities

For the financial year ended March 31, 2025 For the financial year ended March 31, 2025

Our net cash outflow from investing activities was Rs153.47 lakhs. This was mainly on account of Purchases of Fixed Assets of Rs0.73 lakhs, Advance given against Property Purchase of Rs400.00 lakhs and interest income of U244.50 lakhs.

For the financial year ended March 31, 2024

Our net cash from investing activities was U265.50 lakhs. This was on account of Purchases of Fixed Assets of Rs1.17 lakhs, and interest income of U266.67 lakhs.

For the financial year ended March 31, 2023

Our net cash invested in investing activities was Rs146.11 lakhs. This was mainly on account of Purchases of Fixed Assets of Rs46.04 lakhs, Advance given against Property Purchase of Rs324.30 lakhs and interest income of U217.90 lakhs.

Cash Flows from Financing Activities

For the financial year ended March 31, 2025

Our net cash outflow from financing activities was Rs0.14 lakhs. This was on payment of interest of Rs0.14 lakh.

For the financial year ended March 31, 2024

Our net cash outflow from financing activities was U2.51 lakhs. This was on payment of interest of U2.51 lakh.

For the financial year ended March 31, 2023

Our net cash outflow from financing activities was Rs0.68 lakhs. This was on payment of interest of Rs0.68 lakh.

INFORMATION REQUIRED AS PER ITEM 11 (II) (C) (IV) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS

Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. There are no unusual or infrequent events or transactions in our Company. The transactions are as per usual business operations.

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 arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled “Risk Factors beginning on page 28 of this Prospectus. To our knowledge, except as we have described in this Prospectus, there are no known factors which we expect to bring about significant economic changes.

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

Apart from the risks as disclosed under chapter titled “Risk Factors” beginning on page 28 of this Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

Extent to which material increases in net sales or revenue are due to increase in products

Changes in revenue in the last three financial years are as explained in the part “Financial Year 2024-25 compared with financial year 2023-24 and Financial Year 2023-24 Compared with Financial Year 2022-23” above.

Significant dependence on a single or few Suppliers or Customers

Significant proportion of our total revenue have historically been derived from a limited number of customers. Our top ten customers for the Fiscals 2025, 2024 and 2023 Rs 12,549.81 lakhs, ^11,107.44 lakhs and Rs15,144.04 lakhs accounted for 23.80%, 22.48% and 31.08% of our revenue from operations for the respective year.

Significant proportion of our purchases have historically been derived from a limited number of suppliers. Our top 10 suppliers for the Fiscals 2025, 2024 and 2023 is Rs 53,360.85 lakhs, Rs43,219.60 lakhs and Rs42,709.08 lakhs accounted for 99.94%, 99.97% and 99.90% of our purchases for raw materials for respective years.

Status of any publicly announced new products or business segment.

Please refer to the chapter titled “Our Business” beginning on page 130 of this Prospectus for new products or business segments.

Seasonality of business

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 96 and 130 respectively of this Prospectus.