Bio Medica Laboratories Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the financial period ended March 31, 2025, financial year ended March 31, 2024, and for the financial year ended March 31, 2023. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Information" on page 244 of the Draft Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 28 of this Draft Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 19 of this Draft Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-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 Bio Medica Laboratories Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for Financial Years 2025 & 2024, 2023 included in this Draft Red Herring Prospectus beginning on page 244 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company is engaged in the of manufacturing of Pharmaceutical Parenteral Formulations. We manufacture variety of products, comprising ethical drugs, generic drugs and over the-counter drugs (OTC) in the form of injectables namely Liquid Injections and Dry Powder Injections. These injectables are available in both single dose and multi dose forms, catering both human and veterinary needs. Our products address a wide range of medical needs and preferences.

Our Company operates on a B2B business model through contract manufacturing and does not deal directly with the end users. Our company manufacture formulations for various companies according to their specific requirements and specifications for the type of formulation needed. Additionally, we enter into agreements with them, allowing their name and address to be displayed on the packaging as "Technical Collaborator" or

"marketed by" alongside our Companys name as the manufacturer.

Our Company holds Good Manufacturing Practices (GMP) certificate issued by Food & Drugs Administration, Madhya Pradesh, for complying with established GMP standards and guidelines. Our company maintain stringent quality control standards throughout the entire manufacturing process. This ensures that our products consistently meet relevant quality standards before they reach the market.

We also possess a Good Laboratory Practices (GLP) certificate issued by the Food & Drugs Administration, Madhya Pradesh, demonstrating our commitment in maintaining standards of quality and compliance in laboratory operations. Our in-house laboratory is equipped with various instruments, such as HPLC (High-Performance Liquid Chromatography), GC (Gas Chromatography), UV-Vis (Ultraviolet-Visible Spectrophotometer), polarimeter, and other advanced equipments and instruments. This comprehensive array of tools enables us to conduct a wide range of tests and analyses efficiently and accurately. For more information regarding our plant and machinery, please refer to page 179 of this Draft Red Herring Prospectus.

Further, our Company continues to benefit from the various initiatives extended by the government to support the MSME segment. Under the MSME Incentive Scheme 2021. For more information, please refer to the chapter titled "Restated Financial Information" on page 244 of the Draft Red Herring Prospectus.

Our company manufactures pharmaceutical formulations based solely on formulas and processes that are publicly available and not protected by any patent rights. As a result, we do not require acquiring patents or maintaining an in-house research and development department. Additionally, we ensure that all required standards and environmental conditions, including the appropriate temperature, are maintained throughout the manufacturing process until the product is dispatched.

Our laboratory is well equipped for physical testing, effective process controls, stability studies, and more. These capabilities ensure comprehensive evaluation and validation of products and processes, enabling us to maintain high standards of quality within the industry.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR AND STUB PERIOD

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Draft Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

The Board of Directors of our Company has approved and passed a resolution on June 10, 2025, to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

The Shareholders of our Company has approved and passed a resolution on June 12, 2025, to authorize the issue by way of Initial Public Offering.

The Shareholders of our company appointed Mr. Pradeep Mehta as Managing Director w.e.f. October 28, 2024, in the Extra- Ordinary General Meeting held on November 11, 2024.

The Shareholders of our Company appointed Mr. Mukesh Mehta as Whole Time Director w.e.f. October 28, 2024, in the Extra- Ordinary General Meeting held on November 11, 2024.

The Shareholders of our Company appointed Ms. Divya Khandelwal and Sumeet Bansal as an Independent Directors w.e.f. October 28, 2024, in the Extra-Ordinary General Meeting held on November 11, 2024.

The board of directors, in its meeting held on October 28, 2024, appointed Santosh Kale as Chief Financial Officer of the Company.

The board of directors, in its meeting held on July 21, 2025, appointed Mr. Rahul Kumar as Company Secretary & Compliance officer of the Company w.e.f. July 22, 2025.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled

"Risk Factor" beginning on page 28 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

Companys results of operations and financial performance;

Performance of Companys competitors;

Significant developments in Indias economic and fiscal policies;

Failure to adapt to the changing needs of industry and in particular Sector may adversely affect our business and financial condition;

Volatility in the Indian and global capital market;

S. No. Particulars	For the Period ending 31 March, 2025	% of total income	For the Period ending 31 March, 2024	% of total income	For the Period ending 31 March, 2023	% of total income
1 Income
(a) Revenue from operations	3,819.52	99.66%	1,524.94	99.38%	1,622.82	99.87%
(b) Other income	12.98	0.34%	9.49	0.62%	2.14	0.13%
Total income	3,832.50	100.00%	1,534.42	100.00%	1,624.96	100.00%
2 Expenditure
(a) Cost of material consumed	1,914.63	49.96%	660.52	43.05%	1,098.17	67.58%
(b) Purchases of stock-in-trade	12.22	0.32%	77.69	5.06%	60.54	3.73%
(c) Manufacturing expense	117.26	3.06%	96.85	6.31%	81.51	5.02%
(d) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(17.37)	(0.45)%	(71.23)	(4.64)%	(11.89)	(0.73)%
(e) Employee benefit expenses	195.73	5.11%	171.62	11.18%	183.86	11.31%
(f) Finance cost	119.51	3.12%	96.58	6.29%	77.15	4.75%
(g) Depreciation & amortization expense	100.54	2.62%	111.00	7.23%	49.67	3.06%
(h) Other expenses	75.72	1.98%	26.36	1.72%	40.75	2.51%
Total expenses	2,518.24	65.71%	1,169.38	76.21%	1,579.75	97.22%
3 Profit/(Loss) before exceptional and extra-ordinary item	1,314.27	34.29%	365.04	23.79%	45.21	2.78%
4 Profit/(Loss) before tax (2-4)	1,314.27	34.29%	365.04	23.79%	45.21	2.78%
5 Tax expense:
(a) Tax expense for current year	343.52	8.96%	124.83	8.14%	12.33	0.76%
(b) Deferred tax	(8.74)	(0.23)%	(9.65)	(0.63)%	(0.47)	(0.03)%
(c) Short/(excess) of previous years
Net current tax expenses	334.78	8.74%	115.18	7.51%	11.86	0.73%
6 Profit/(Loss) for the period from continuing operations (5-6)	979.49	25.56%	249.87	16.28%	33.35	2.05%

Our Significant Accounting Policies

For Significant accounting policies please refer Significant Accounting Policies", under Chapter titled Financial Statements beginning on page 244 of the Draft Red Herring Prospectus.

Overview of Revenue & Expenditure

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the Financial Year 2024-25, Financial Year 2023-24 & Financial Year 2022-23. Our revenue and expenses are reported in the following manner:

Revenues

Revenue of operations

The production of pharmaceutical formulations is the main source of income for our company. We manufacture various kinds of goods, including generic medications, ethical medications, and over-the-counter (OTC) medications in injectable form, such as dry powder and liquid injections. These injectables meet the demands of both humans and animals and come in single-dose and multi-dose formats. Numerous medical demands and preferences are catered to by our products.

Other Income

Other Income includes interest income, discount and rebates, exchange rate difference and consultancy and supervision receipt.

Expenditure

Our total expenditure primarily consists of various expenses necessary for smooth operations of the company.

Cost of material consumed

Since we are into manufacturing of pharmaceutical formulations, the cost of material consumed includes the cost of raw material, packaging etc.

Purchase of stock-in-trade

Purchase of stock in trade include the goods purchased for trading purpose.

Employee benefit expense

The Employee benefit expense Salaries & Wages, Directors Remuneration, Staff Welfare Expenses, Provision for Leave Encashment, Provision for Gratuity.

Manufacturing Expense

Manufacturing expense includes various expenses like power and fuel expense, freight and cartage expense, testing expense, factor expense, design and packaging expense.

Changes in inventories of finished goods, work-in-progress and stock-in-trade

Change in inventories of finished goods, work-in-progress and stock-in-trade includes work in progress goods and finished goods.

Employee benefit expense

Employee benefit expense include salary, wages, bonus and other benefits, Contribution to provident fund & Other funds, Remuneration to Directors and Gratuity Expenses.

Depreciation and Amortization Expenses

Depreciation and Amortization Expenses majorly includes depreciation on Property, Plant & Equipment.

Other Expenses

Other Expenses include various expenses like ROC expense, Interest on taxes and late fees, Legal and Professional Expense among other expenses.

Fiscal Year Ended March 31, 2025, compared with the Fiscal Year Ended March 31, 2024 (Based On Restated Financial Statements)

Revenues

Total Income

Total Income for FY25 stood at Rs. 3,832.50 lakhs whereas in FY24 it was Rs. 1,534.42 representing an increase of 149.77%.

Reason: The increase is mainly due to an increase in manufacturing activity due to an addition of a new unit and a slight increase in other income also contributed to the overall increase.

Revenue from operations

Revenue from operation for FY25 stood at Rs. Rs. 3,819.52 lakhs whereas in FY24 it was Rs. 1,524.94 lakhs representing an increase of 150.47%.

Reason: The main reason for the increase is because of Unit 2, a recent addition, operated satisfactorily throughout FY 25. This has helped achieve favorable results in FY 25, which has increased output and generated more income. Also, on August 8, 2022, the business received its first license for a single product. Throughout FY24, the company received FDA approvals for almost 50 items. Furthermore, we received licenses from the FDA for 14 more novel items for Unit 2 in FY25. As can be seen in the below table, the company was able to successfully manufacture additional items as a result, increasing turnover.

	For the period ended 31st March 2025		For the period ended 31st March 2024
Molecular Name	Quantity	Amount (Rs.	Quantity	Amount (Rs.
		In Lakhs)	In Lakhs)
Piperacillin And Tazobactam	4,64,400.00	412.29	0.00	0.00
Meropenem	3,12,900	344.19	0.00	0.00
Multi Vitamin	56,25,578	520.27	75,43,188	342.58
Ceftriaxone	11,10,838	507.11	98,860	18.30
Amikacin	13,62,932	636.44	0.00	0.00
Total	88,76,648	2,420.30	76,42,048	360.87

Other Income

Other Income for FY25 stood at Rs. 12.98 lakhs whereas in FY24 it was Rs. 9.49 lakhs representing an increase of 36.78%.

Reason: The increase was due to additional Consultancy& Supervision receipts in FY25

(Amount in Lakhs)

Particulars	For the period ended 31st March 2025	For the period ended 31st March 2024
Interest Income	0.20	0.79
Discount and Rebate	-	1.87
Exchange Rate Difference	0.32	0.33
Consultancy& Supervision receipt	12.45	6.50
Total	12.98	9.49

Expenditure

Total Expenses

Total Expenses for the FY25 was standing at Rs. 2,518.24 lakhs and in FY24 it was at Rs. 1,169.38 lakhs representing an increase of 115.35%.

Reason: The increase was due an increase in revenue which in turn causing a proportional increase in operational expenses as well.

Cost of material consumed

The cost of material consumed for FY25 stood at Rs. 1,914.63 lakhs whereas in FY24 it was standing at Rs.660.52 lakhs representing an increase of 189.87%.

Reason: The cost of raw material includes the cost of raw material and the cost of packaging material purchased. During FY25, the sale of manufactured good increased by approximately 163.80% due to which the cost of material consumed also increased. Additionally, throughout the year, the company placed emphasis on the sale of high-value products and introduced new products. In order to manufacture these high value products different mix of raw material and packaging material were used which leads to increase in cost of material consumed.

(Amount in Lakhs)

Particulars	For the period ended 31st March 2025	For the period ended 31st March 2024
Cost of Raw Material	982.06	325.84
Cost of Packing material	932.58	334.68
Total	1,914.63	660.52

Purchase of stock-in-trade

Stock-in trade was Rs. 12.22 Lakhs in FY25 whereas in FY24 it was standing at Rs. 77.69 lakhs representing a decrease of 84.27%.

Reason: The sale of trading goods largely depends upon the demand for that period. Therefore, due to decrease in demand for that period a decrease was seen.

Manufacturing Expense

Manufacturing expense stood at Rs. 117.26 lakhs in FY25 whereas in FY24 it stood at Rs. 96.85 lakhs representing an increase of 21.07%.

Reason: The increase was due to an increase in our operations. In FY 25, testing expenses were increased due to company has developed some new products which include expenses incurred for lab testing.

(Amount in Lakhs)

Particulars	For the period ended 31st March 2025	For the period ended 31st March 2024
Power and fuel expenses	94.06	80.40
Freight & cartage expenses	9.75	5.88
Testing Expenses	7.07	2.16
Factory Expenses	2.64	5.03
Design Charges	0.54	1.77
Packaging Charges	3.20	1.61
Total	117.26	96.85

Changes in inventories of finished goods, work-in-progress and stock-in-trade

The change in inventory stood at Rs. (17.37) lakhs in FY25, whereas in FY24 it was at Rs. (71.23) lakhs representing increase of (75.62) %.

Reason: The change in inventory from FY24 to FY25 reduced from 71.23 lakhs to 17.37 lakhs primarily due to lower accumulation of finished goods and work-in-progress, indicating increased sales dispatches in FY25 as compared to FY24.

Employment Benefit Expenses

Employment Benefit Expenses for the financial year ended 31st March 2025, stood at Rs. 195.73 lakhs and for the financial year ended 31st March 2024 it was at 171.62 lakhs representing a 14.05% increase from the previous year.

Reason: In FY25, increased production led to a rise in the workforce and annual salary increments resulted in higher employee benefit expenses.

Finance Cost

Finance cost for the financial year ended 31st March 2025 stood at Rs. 119.51 lakhs whereas for the financial period ended 31st March 2024 it was 96.58 lakhs representing an increase of 23.74%.

Reason: In FY25 there is an increase in total borrowing which contributing to the major reason for the increase in finance cost in FY25.

(Amount in Lakhs)

Particulars	For the period ended 31st March 2025	For the period ended 31st March 2024
Total Borrowings	1,501.44	1,048.99
Finance Cost	119.51	96.58

Depreciation and Amortization Expenses

Depreciation and Amortization Expenses for the financial period ended 31st March 2025 was Rs. 100.54 Lakhs where as for the financial year ended 31st March 2024 it was Rs. 111.00 Lakhs representing a decrease of 9.42 %.

Reason: In FY 2024-25, depreciation amounted to 100.54 lakhs, reflecting a decrease of 9.42% compared to 111 lakhs in the previous year.. This reduction is mainly due to two reasons, first, capital investment subsidy of 29.05 lakhs was received from the MSME department for plant and machinery, which reduced the depreciation charge and second, two old machines were not moved to the new unit and have been classified as "held for sale" in the balance sheet, so no depreciation was charged on them resulting in a reduced depreciation being charged.

(Amt in Rs. Lakhs)

Particulars	For the period ended 31st March 2025	For the period ended 31st March 2024
Opening Balance	872.72	831.15
Addition	24.43	152.57
Less: Subsidy Received	(29.05)	-
Less: Held for sale	(21.50)	-
Less: Depreciation	(100.54)	(111.00)
Closing balance	746.05	872.72

Other Expenses

Other expenses for the financial year ended 2025 were Rs.75.72lakhs and for the financial year ended 2024 it was Rs.26.36 lakhs representing an increase of 187.25%.

Reason: The increase was due to multiple reasons including ROC fees paid, rate and tax expense legal and professional expense and etc.

(Amount in Lakhs)

Particulars	For the period ended 31st March 2025	For the period ended 31st March 2024
Audit remuneration	2.50	0.30
Roc expense	15.76	-
Interest on taxes and late fees	15.91	-
Legal and Professional Expense	14.54	0.67
Rate and Taxes	8.86	1.01
Repair & Maintenance Machine and	5.56	3.50
Others

Restated Profit before Tax

Restated profit before tax for the financial year ended 31st March 2025 was Rs. 1,314.27 lakh and for the financial year ended 31st March 2024 it was Rs. 365.04 lakhs representing an increase of 260.03%.

Reason: The increase in profit before tax is mainly due to the reason that we were able to save our cost on packing material due the in-house production of packing material and changes in the packaging strategy that helped in decreasing the expenses, therefore increasing the profit before tax.

Tax Expense

Tax Expense for the period ended 31st March 2025, stood at Rs. 334.78 lakhs and for the period ended 31st March 2024 it was Rs. 115.18 lakhs representing an increase of 190.66%.

Reason: The Tax expense increase in FY25 due to an increase in the profit before tax for the financial period ended 2025.

Restated Profit after Tax

The profit after tax for the period ended 31st March 2025 stood at Rs. 979.49 lakhs whereas in the financial year 2024 it was at Rs. 249.87 lakhs representing an increase of 292.00%.

Reason: The reason for the increase is given below:

1. Increase in revenue:

In FY 2024-25, Unit 2 became fully operational, resulting in increased production capacity, higher revenue, and improved profit margins. In FY 2023-24, the company had received FDA approvals for around 50 products. Building on that, an additional 14 product licenses were granted by the FDA for Unit 2 in FY 2025. This enabled the company to manufacture high-value products, as listed in the table above, for which approvals had been secured in earlier years contributing significantly to growth in both turnover and profitability

Comparison of products sold in FY 2024-25 and FY 2023-24

Particulars	For the period ended 31st March 2025			For the period ended 31st March 2024
Unit Name	Qty	Rate (In Rs.)	Amount (Rs. In Lacs)	Qty	Rate (In Rs.)	Amount (Rs. In Lacs)
Ampoule	3,35,50,293.00	2.44	819.84	3,07,84,425.00	2.38	734.12
Vials	1,23,90,051.00	23.93	2965.49	85,23,926.00	7.69	655.26
Other
	-	-		-	-
Products			21.10			53.56
Trading
	-	-		-	-
Products			13.09			82.00
Total	4,59,40,344.00	Total	3,819.52	3,93,08,351.00	Total	1,524.94

2. Decrease in expenses

During the FY 25, indirect expenses such as employee benefits, finance costs, depreciation & amortization expenses, and other expenses accounted for 12.82% of total income, while in FY 24, this percentage was 26.43%, marking a significant decrease of 13.61%.

Due to the above factors the PAT margin was increased to 25.66% from 16.39% in FY24.

Comparison of expenses in FY 2024-25 and FY 2023-24

Particulars	FY 2024-25 (% of Total Income)	FY 2023-24 (% of Total Income)
Employee benefit expenses	5.11%	11.18%
Finance cost	3.12%	6.29%
Depreciation & amortization expense	2.62%	7.23%
Other expenses	1.98%	1.72%
Total	12.82%	26.43%

FISCAL ENDED MARCH 31, 2024, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total Income for the Financial Year 31st March 2024, stood at Rs. 1,534.42 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs 1,624.96 Lakhs representing a decrease of 5.57%.

Reason: The main reason for decrease in total income is decrease in revenue from operation.

Revenue of operations

Net revenue from operations for the Financial Year 31st March 2024, stood at Rs 1,524.94 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 1,622.82 Lakhs representing a decrease of 6.03%.

Reason: On the 7th of June 2023, an inspection was conducted by the CDCSCO (National Drug Regulator) in accordance with Schedule M of Drugs and Cosmetics Act Of 1940 at our Unit-1. It was noted that the Unit-1 factory did not meet the requirements of Schedule M during their inspection. Subsequently, they issued instructions to stop manufacturing at Unit no. 1 in their letter dated August 28, 2023, which we received on August 30, 2023. As a result, the company halted manufacturing at Unit 1 from September 1, 2023. Consequently, we were only able to generate sales of Rs.810.94 lacs from Unit 1 in FY 24, as compared to Rs.1526.75 lacs in FY 23, representing a 47% decrease in sales due to the stop of manufacturing at Unit -1. However, this decline was partially mitigated by the part commencement of companys manufacturing operations at Unit-2, a new unit that is compliant with Schedule M and commenced partial production in FY-24. As a result, the company achieved sales of Rs.632 lacs at Unit-2.

Other Income

Other Income for the Financial Year 31st March 2024, stood at Rs. 9.49 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs. 2.14 Lakhs represent an increase of 343.46%.

Reason: The increase in other income was due to Consultancy& Supervision receipt of Rs. 6.50 lakhs in FY24.

(Amt in Rs. Lakhs)

Particulars	For the period ended 31st March 2024	For the period ended 31st March 2023
Interest Income	0.79	2.08
Discount and Rebate	1.87	0.06
Exchange Rate Difference	0.33	-
Consultancy& Supervision receipt	6.50	-
Total	9.49	2.14

Expenditure

Total Expenses

Total Expenses for the Financial Year 31st March 2024, stood at Rs. 1,169.38 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs 1,579.75 Lakhs representing a decrease of 25.98%.

Reason: The expenses in FY24 decreased due to a halt in Unit-1 which also reduced the total expenses

Cost of material consumed

The cost of material consumed for FY24 was at Rs. 660.52 lakhs and in FY23 it was Rs. 1,098.17 lakhs representing a decrease of 39.85%

Reason: The cost of materials consumed in FY24 declined primarily due to an operational halt following the temporary closure of Unit-1, resulting in reduced procurement of both raw materials and packaging materials. Furthermore, a strategic shift in packaging such as selling products like ampoules in loose packs significantly lowered costs associated with outer and inner boxes and savings due to reduction in packaging material prices. Additionally, the advanced, fully automated machinery installed in Unit-2 contributed to a reduction in PVC roll consumption and less purchase of blister foil and minimized wastage, further optimizing material usage.

Particulars	For the period ended 31st March 2024	For the period ended 31st March 2023
Cost of Raw Material	325.84	412.30
Cost of Packing material	334.68	685.87
Total	660.52	1,098.17

Purchase of stock in trade

The purchase of stock in trade was Rs. 77.69 lakhs in FY24, whereas in FY23 it was Rs. 60.54 lakhs representing an increase of 28.33%.

Reason: The reason for increase in stock in trade due to an increase in the trading activity because of higher demand in that period.

Manufacturing Expense

The manufacturing expense for the financial year ended 31st March 2024 was Rs. 96.85 lakhs and for the financial year ended 31st March 2023 it was Rs. 81.51 lakhs representing an increase of 18.83%.

Reason: The manufacturing expense in the FY24 saw an increase even when the revenue saw a decline because of the fixed cost that was incurred during that period.

Changes in inventories of finished goods, work-in-progress and stock-in-trade

Change in inventories of finished goods, WIP and stock-in-trade for the period ended 31st March 2024 Rs. (71.23) and for the period ended 31st March 2023 it stood at Rs. (11.89) representing a decrease of 498.99%.

Reason: The reason for increase is due to a higher closing inventory of work in progress and finished goods.

Employee benefit expense

The Employee benefit expense for the Financial Year 31st March 2024, stood at Rs. 171.62 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 183.86 Lakhs representing a decrease of 6.66%.

Reason:

1. Unit-1 was temporarily closed on August 23 due to non-compliance with Schedule M. Consequently, there was a reduction in the number of factory workers/employees in Unit-1 during the latter half of the year, leading to a decrease in employee benefit expenses.

2. Unit-2 is equipped with cutting-edge technology and Level-3 automation, resulting in a reduced need for employees. Additionally, it was in the trial phase for many products and not fully operational.

(Amounts in Lakhs)

Particulars	For the period ended 31st March 2024	For the period ended 31st March 2023
Salaries, Wages, Bonus and Other benefits	118.44	130.59
Contribution to provident fund & Other funds	2.18	2.64
Remuneration to Directors	48.00	48.00
Gratuity Expenses	3.01	2.63
Total	171.62	183.86

Finance Cost

The Finance Cost for the Financial Year on 31st March 2024, stood at Rs. 96.58 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs 77.15 Lakhs representing an increase of 25.17% from the previous years.

Reason: The increase in borrowing was due to an overall increase in the borrowings as show in the below table.

Particulars	For the period ended 31st March 2024	For the period ended 31st March 2023
Total Borrowings	1,048.99	960.67
Finance Cost	96.58	77.15

Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 31st March 2024, stood at Rs. 111.00 Lakhs whereas in the Financial Year 31st March 2023 it stood at Rs. 49.67 Lakhs representing an increase of 123.47%.

Reason: In FY 24, fixed assets addition was made for Rs.152.57 lacs therefore depreciation was increased in FY24 as compared to FY23.

(Amount in Lakhs)

Particulars	As at 31 March 2024	As at 31 March 2023
Opening Balance	831.15	709.86
Addition	152.57	170.96
Less: Depreciation	(111.00)	(49.67)
Closing balance	872.72	831.15

Other Expenses

The Other Expenses for the Financial Year March 31, 2024, stood at Rs26.36 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 40.75 Lakhs representing a decrease of 35.31%.

Reason: The main reason for decrease was due to fall in import and documentation charges because during the financial year 2023, the cost of imports remained high due to the impact of COVID-19 and the global shortage of vessels and containers and less expenses incurred on repair and maintenance on machinery. However, by financial year 2024 container prices returned to normal, and charges were charged accordingly.

(Amount in Lakhs)

Particulars	For the period ended FY2024	For the period ended FY2023
Import and documentation Charges	4.15	11.11
License Fees	0.31	4.25
Repair & Maintenance Machine and	3.50	6.33
Others

Restated Profit before Tax

The restated profit before tax for the Financial Year 31st March 2024, stood at Rs. 365.04 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs. 45.21 Lakhs representing an increase of 707.43%.

Reason: The increase in profit before tax is mainly due to the reason that we were able to save our cost on packing material due the in-house production of packing material and changes in the packaging strategy that helped in decreasing the expenses, therefore increasing the profit before tax.

Tax Expense

Tax Expense for the Financial Year 31st March 2024, stood at Rs. 115.18 lakhs whereas for the financial year 31st March 2023 it was Rs. 11.86 lakhs, representing an increase of 871.42%.

Reason: The tax expenses increased over the financial year due to an increase in profit before tax therefore more tax expenses made in the financial year 2023-24 as compared to the financial year 2022-23.

Profit after Tax

The profit after tax for the Financial Year 31st March 2024, stood at Rs. 249.87 Lakhs whereas in Financial Year 31st March 2023 it stood at Rs 33.35 Lakhs representing an increase of 649.24%.

Reason: The increase in profit after tax for the FY24 was mainly due to reduction of expense.

An operational halt following the temporary closure of Unit-1, resulting in reduced procurement of both raw materials and packaging materials. Furthermore, a strategic shift in packaging such as selling products like ampoules in loose packs significantly lowered costs associated with outer and inner boxes and saving due to reduction in packaging material prices. Additionally, the advanced, fully automated machinery installed in Unit-2 contributed to a reduction in PVC roll consumption and less purchase of blister foil and minimized wastage, further optimizing material usage.

(Amount in lakhs, except %)

Particulars	For the period ended FY2024	For the year ended FY2023
Revenue from sale of manufacturing products	1,442.94	1,559.86f
Packaging material consumed	334.68	685.87
Packaging material consumed as a percentage of revenue from sale of manufacturing products	23.19%	43.97%
Difference	(20.78) %
Raw material consumed	325.84	412.30
Raw material consumed as a percentage of revenue from sale of manufacturing products	22.58%	26.43%
Difference	(3.85) %

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

1. Unusual or infrequent events or transactions

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

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

Other than as described in the section titled "Risk Factors" beginning on page 28 of this Draft Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

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

Other than as described in this Draft Red Herring Prospectus, particularly in the sections "Risk Factors" and

"Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 28 and 246, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations.

4. Income and Sales on account of major product/main activities

The income and sales of our Company on account of major activities derives from the business is carrying and forward activities.

5. Future changes in the relationship between costs and revenues, in case of events such as future increase in cost of service and freight & forwarding expenses that will cause a material change are known.

Our Companys future costs and revenues can be indirectly impacted by an increase in the cost of services and freight & forwarding expenses.

6. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation, interest rates quoted by banks & others.

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

Increases in our revenues are by and large linked to increases in the volume of business.

8. Total turnover of each major industry segment in which the issuer company operates.

The Company operates in the Pharmaceutical Industry. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 121 of this Draft Red Herring Prospectus.

9. Status of any publicly announced new products or business segments.

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

10. The extent to which the business is seasonal.

Our business is not seasonal in nature.

11. Competitive Conditions

We face competition from existing and potential competitors, which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in the section titled "Our Business" on page 165 of this Draft Red Herring Prospectus.