BMW Ventures Ltd Management Discussions

OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations, and our assessment of the factors that may affect our prospects and performance in future periods, together with our Restated Financial Statements for the Financial Years 2025, 2024 and 2023 including the notes thereto and reports thereon, each included in this Red Herring Prospectus. Unless otherwise stated, financial information used in this section is derived from the Restated Financial Statements.

This section includes a discussion of financial results for the Financial Years 2025, 2024 and 2023 which were prepared under Ind AS. The Restated Financial Statements, prepared and presented in accordance with Ind AS and in accordance with the requirements of Section 26 of the Companies Act, the SEBI ICDR Regulations and the Guidance Note on Reports in Company Prospectus (Revised 2019) issued by the ICAI.

Ind AS differs in certain material respects from Indian GAAP, IFRS and U.S. GAAP. Accordingly, the degree to which our financial statements will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Ind AS. As a result, the Restated Financial Statements may not be comparable to our historical financial statements.

This discussion and analysis contain forward-looking statements that reflect our current views with respect to future events and our financial performance, which are subject to numerous risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements. You should also read Forward-Looking Statements and Risk Factors on pages 20 and 33, respectively, which discuss a number of factors and contingencies that could affect our business, financial condition and results of operations. Our Financial Year ends on March 31 of each year and accordingly, references to Financial Year, are to the 12-month period ended March 31 of the relevant year.

Unless the context otherwise requires, in this section, references to we, us, our, the Company or our Company refers to BMW Ventures Limited.

Unless otherwise indicated, industry and market data used in this section has been derived from industry publications, in particular, the report titled Assessment of steel industry in Bihar (the CRISIL Report), prepared and issued by CRISIL and exclusively commissioned and paid for by us in connection with the Issue. Unless otherwise indicated, financial, operational, industry and other related information derived from the CRISIL Report and included herein with respect to any particular year refers to such information for the relevant calendar year. For more information, see Risk Factor No.69 - This Red Herring Prospectus contains information from an industry report prepared by CRISIL, commissioned by us for the purpose of the Issue for an agreed fee on page 33. Also see, Currency Conventions, Currency of Presentation, Use of Financial Information, Industry and Market Data on page 16.

Business Overview

Our company is engaged in trading/Distribution of steel products, tractor engines and spare parts, manufacturing of PVC pipes and roll forming, and the fabrication of pre-engineered buildings (PEB) and steel girders. Over the years, we have established a strong dealers distributorship network in both long and flat steel products, tractor engine, roll forming and PVC. Further, PEB and steel girder are institutional sales.

Our company specializes in the distribution of long and flat steel products across Bihar, India. We have developed a business model focused on delivering high-quality products and ensuring timely deliveries to our network of dealers. As the exclusive distributor for our primary supplier, we supply steel products through 1,299 dealers as on March 31, 2025 dealers spanning 29 of the 38 districts in Bihar.

Our Business Verticals
Distributorship (Steel Product)	Distributorship (Tractor Engine)	Manufacturing (PVC & Roll Forming)	Fabrication (PEB, Steel Girder)
Our company is Distributor of steel product in Bihar since 1996. Product portfolio includes long and flat steel product like TMT bars, GC sheet, HR & CR sheet, Wire rods, Galvanized Color Coated sheet, Doors, GP sheet, Pipes, Hollow Sections, Screw and more.	Our company is involved in the distribution of tractor engine and spare parts Bihar since 2007.	PVC pipe manufacturing started in August 2018, company manufacture and sells PVC pipe under brand name of BMW Polytube. Roll forming was started in January 2022 to produce GP Blue Diamond colour sheet	We are also engaged in fabrication business. Our fabrication product includes Pre Engineered Building (PEB) and Steel Girders. Our PEB fabrication was started in November 2022, where as Steel Girder fabrication is RDSO approved and production was started in July 2023.

Our long products include TMT Bars, Wire - Galvanized wires and Structura - Rectangular, Square and Circular Steel Hollow Sections. Flat steel product portfolio comprises of GC Sheet -Galvanized Corrugated Sheets, GP Sheet - Galvanized Sheets, HR Sheet - Hot Rolled Sheets & Coils, GC Sheet - Colour Coated, CR Sheet - Cold rolled Sheets & Coil, Others steel product includes Agrico -Hoes, shovels, sickles, crowbars, pickaxes and hammers and Door - Residential & Commercial doors and windows.

For further details refer Our Business page 202 of the Red Herring Prospectus.

Basis of Preparation of Restated Financial Statement

a. Statement of Compliance:

These financial statements have been prepared in accordance with Ind AS as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act, 2013 (the Act). The financial statements were authorised for issue by the Board of Director on August 27, 2025. These financial statements are presented in Indian Rupees, which is the Companys functional currency. All amounts have been rounded -off to the nearest lakhs (Rs.), as per the requirements of Schedule III of the Act, unless otherwise stated.

b. Basis of measurement:

The financial statements have been prepared on a historical cost convention, except for certain financial assets and financial liabilities that are measured at fair value as required under relevant Ind AS.

c. Significant accounting judgements, estimates and assumptions

The preparation of the companys financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods affected.

d. Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.

i. Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

ii. Employee benefit plans

The cost of the defined benefit gratuity plan, other post-employment benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

iii. Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events.

iv. Property Plant and Equipment

Useful life and residual values are determined by the management at the time the asset is acquired and reviewed at each financial year end. The life is based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

Significant Accounting Policies

a. Property, Plant & Equipments

Recognition and initial measurement: Property, plant and equipment are stated at their cost of acquisition or construction less accumulated depreciation and impairment, if any. Freehold land is measured at cost and is not depreciated. Cost comprises purchase price, non recoverable taxes and duties, labour cost, direct overhead for self constructed assets, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognized in statement of profit or loss as incurred.

Subsequent measurement (depreciation and useful life): Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Depreciation on property, plant and equipment has been provided using written down value method using rates determined based on managements assessment of useful economic life of the asset.

Followings are the estimated useful life of various category of assets used which are aligned with useful life defined in schedule II of Companies Act,2013:

Office Building	30 Years
Plant & Machinary	15 Years
Furniture & Fixture	10 Years
Vehicles	8 Years
Office Equipment	5 Years
Computers	3 Years
Solar	35 Years

The residual values, useful life and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Derecognition: An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in the statement of profit and loss, when the asset is de-recognized.

Capital work-in-progress (CWIP): Cost of property, plant and equipment not ready for use as at the reporting date are disclosed as capital work-in progress. Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its intended use.

b. Investment Property

Investment property is property (land or building, or part of a building, or both) held to earn rentals or for capital appreciation or both, rather than for:

> use in the production or supply of goods or services or for administrative purposes; or

> sale in the ordinary course of business.

Recognition and Measurement

Investment property is initially recognised at cost, including transaction costs. The cost of a self-constructed investment property comprises the cost of materials, direct labour, and other costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequent to initial recognition, investment property is carried at cost less accumulated depreciation and accumulated impairment losses, if any, in accordance with Ind AS 16 - Property, Plant and Equipment.

Depreciation

Depreciation on investment property is provided on a straight-line basis over the estimated useful lives prescribed in Schedule II to the Companies Act, 2013, or based on technical assessment where applicable.

Retirement or Disposal

An investment property is derecognised upon disposal or when it is permanently withdrawn from use and no future economic benefits are expected from its disposal. Any gain or loss arising on derecognition is recognised in the Statement of Profit and Loss in the period of derecognition.

Transfers

Transfers to, or from, investment property are made when there is a change in use, evidenced by commencement or cessation of owner-occupation, or commencement of development with a view to sale.

c. Leases

At inception of a contract, the Company assesses whether a contract is, or contain a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

• The contract involves the use of an identified asset -this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substation right, then the asset is not identified;

• The Company has the right to substantially all of the economic benefits from the use of the asset throughout the period of use; and

• The Company has the right to direct the use of the asset. The Company has this right when it has the decision making rights that are most relevant to changing how and for what purposes the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:

- The Company has the right to operate the asset; or

- The Company designed the asset in a way that predetermines how and for what purposes it will be used.

As a practical expedient, Ind AS 116 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has not used this practical expedient. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and estimated dilapidation costs, less any lease incentives received. The right-of-use asset is subsequently amortised using the straight-linemethod over the shorter of the useful life of the leased asset or the period of lease. If ownership of the leased asset is automatically transferred at the end of the lease term or the exercise of a purchase option is reflected in the lease payments, the right-of-use asset is amortised on a straight line basis over the expected useful life of the leased asset. The lease liability is initially measured at the present value of the lease payments that are not paid at commencement date, discounted using, the Companys incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is re measured when there is a change in future lease payments.

Lease payments include fixed payments, i.e. amounts expected to be payable by the Company under residual value guarantee, the exercise price of a purchase option if the Company is reasonably certain to exercise that option and payment of penalties for terminating the lease if the lease term considered reflects that the Company shall exercise termination option. The Company also recognises a right of use asset which comprises of amount of initial measurement of the lease liability, any initial direct cost incurred by the Company and estimated dilapidation costs. Payment made towards short term leases (leases for which non-cancellable term is 12 months or lesser) and low value assets (lease of assets worth less than 0.03 crore) are recognised in the statement of Profit and Loss as rental expenses over the tenor of such leases.

The following amounts are included in the Balance Sheet:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Non current	-	-	368.38
Current	-	-	60.00
Total	-	-	428.38

The following amounts are recognised in the statement of profit and loss:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Interest Expenses on Lease Liabilities	-	-	35.81
Total	-	-	35.81

d. Other Intangible Assets

Recognition of Intangible Assets: Intangible assets purchased are measured at cost or fair value as on the date of acquisition less accumulated amortisation and impairment, if any.

Subsequent Measurement: Amortisation is provided on a straight-line basis over estimated useful life of the intangible assets, for Software estimated usefull life is 6 years.

The amortisation period for intangible assets with finite useful life is reviewed at each year-end. Changes in expected useful life is treated as changes in accounting estimates.

Derecognition of intangible assets: An item of intangible assets is derecognized on disposal or when fully amortized and no longer in use. Any gain or loss arising from derecognition of an item of intangible assets is included in profit or loss.

e. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading.

• Expected to be realised 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

A liability is current when:

• 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.

The operating cycle is the time between the acquisition of assets and their realisation in cash and cash equivalents.

The Company has identified twelve months as its operating cycle.

f. Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication of impairment exists, then the assets recoverable amount is estimated. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash generating units (CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised 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. Such a reversal is made only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

g. Inventories

Inventories are valued at the lower of cost and net realisable value. Cost of raw materials, components and consumables are ascertained on a FIFO basis. Cost, including fixed and variable production overheads, are allocated to working-progress and finished goods determined on a full absorption cost basis. 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.

h. Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and highly liquid investments with an original maturity of up to three months that are readily convertible into cash and which are subject to an insignificant risk of changes in value.

i. Provisions, Contingent Liabilities and Contingent Assets

Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Company expects some or all of a provision to be reimbursed, reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost in respective expense.

Contingent Liabilities and Contingent Assets

Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

j. Tax

Income tax: Income tax expense comprises current tax and deferred tax.

Current tax: Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax: Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxation authority.

k. Revenue Recognition

The Company recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

A 5-step approach is used to recognise revenue as below:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Sale of Product

The Company recognises revenues on the sale of products, net of discounts, sales incentives, customer bonuses and rebates granted, when products are delivered to dealers or customers.

The Company offers sales incentives in the form of variable marketing expense to customers, which vary depending on the timing and customer of any subsequent sale of the vehicle. This sales incentive is accounted for as a revenue reduction and is constrained to a level that is highly probable not to reverse the amount of revenue recognised when any associated uncertainty is subsequently resolved. The Company estimates the expected sales incentive by market and considers uncertainties including competitor pricing, ageing of retailer stock and local market conditions.

Convesion charges (Job Work Charges)

Revenue is recognized either over time, where the customer simultaneously receives and consumes the benefits of the services or controls the asset as it is being processed, or at a point in time, when the job work is c ompleted and the processed goods are delivered to the customer. The transaction price is measured at the fair value of the consideration received or receivable, net of GST and other applicable taxes.

Freight Services

Revenue from services rendered is recognised in proportion to the stage of completion of the transaction at the reporting date when the outcome of the transaction can be estimated reliably.

Revenue is measured at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government which are levied on services such as Goods and service tax

Interest income

Interest income on financial asset is recognised using the effective interest rate (EIR) method.

l. Employee Benefits

Short-term Employee Benefits:

Employee benefit liabilities such as salaries, wages and bonus, etc. that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognised in respect of employees services up to the end of the reporting period and are measured at an undiscounted amount expected to be paid when the liabilities are settled.

Post-employment benefit plans:

Defined Contribution Plans: State governed Provident Fund Scheme and Employees State Insurance Scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees render the related services.

Defined benefit plans: A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Companys gratuity scheme is a defined benefit plan. Currently, the Companys gratuity scheme is unfunded. The Company recognises the defined benefit liability in Balance sheet. The present value of the obligation under such defined benefit plan and the related current service cost and, where applicable past service cost are determined based on an actuarial valuation done using the Projected Unit Credit Method by an independent actuary, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the estimated future cash flows. Re-measurements, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) is reflected immediately in Other Comprehensive Income in the Statement of Profit and loss. All other expenses related to defined benefit plans are recognised in Statement of Profit and Loss as employee benefit expenses. Re-measurements recognised in Other Comprehensive Income will not be reclassified to Statement of Profit and Loss hence it is treated as part of retained earnings in the Statement of Changes in Equity.

m. Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to/ by the Company.

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either directly or indirectly.

Level 3: Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

n. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i. Financial Assets:

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement:

For purposes of subsequent measurement, financial assets are classified in five categories:

• Debt instruments at amortised cost

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

• Equity instruments measured at fair value through profit and loss (FVTPL)

• Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost:

A debt instrument is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

• After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation and losses arising from impairment are recognised in the Statement of Profit & Loss. The amortised cost of the financial asset is also adjusted for loss allowance, if any.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as accounting mismatch). Company has not designated any such debt instrument as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit & Loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any gain or loss on derecognition is recognised in the Statement of Profit and Loss.

Impairment of financial assets

In accordance with Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

Financial assets that are debt instruments, and are measured at amortised cost e.g. Loans and trade receivables.

The company follows simplified approach for recognition of impairment loss allowance on Trade receivables that do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

ii. Financial liabilities:

Initial recognition and measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at fair value deducted by, in the case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.

Subsequent measurement

Financial liabilities are classified as measured at amortised cost using the effective interest method. The Companys financial liabilities include trade payables, borrowings and other financial liabilities.

Under the effective interest method, the future cash payments are exactly discounted to the initial recognition value using the effective interest rate. The cumulative amortization using the effective interest method of the difference between the initial recognition amount and the maturity amount is added to the initial recognition value (net of principal repayments, if any) of the financial liability over the relevant period of the financial liability to arrive at the amortized cost at each reporting date. The corresponding effect of the amortization under effective interest method is recognized as expense over the relevant period of the financial liability in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the Derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount presented in the Balance Sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.

o. Earnings per share

Basic earnings per share is computed using the net profit for the year attributable to the shareholders and weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed using the net profit for the year attributable to the shareholders and weighted average number of equity shares.

p. Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

q. Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets up to the assets are substantially ready for their intended use. The loan origination costs directly attributable to the acquisition of borrowings (e.g. loan processing fee, upfront fee) are amortised in the year in which they occur.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

r. Dividend

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets up to the assets are substantially ready for their intended use. The loan origination costs directly attributable to the acquisition of borrowings (e.g. loan processing fee, upfront fee) are amortised in the year in which they occur Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

s. Foreign Travel Expenses

Sales promotion expenses also include costs incurred on foreign tours offered to dealers as incentives under schemes introduced by the Company for achieving specified sales targets. These expenses are charged to the Statement of Profit and Loss in the year of incurrence.

Principal Component of Income and Expenditure: • Total Income/Revenue

Total income comprises of (i) Revenue from Operations and (ii) Other Income The table set forth shows mix of Total Revenue/Income of our company for the given period. (Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from Operations	206,203.52	193,819.63	201,509.72
As % of Total Revenue	99.74%	99.80%	99.85%
Increase/(Decrease) in %	6.39%	-3.82%	28.88%
Other Income	529.69	383.52	302.51
As % of Total Revenue	0.26%	0.20%	0.15%
Increase/(Decrease) in %	38.11%	26.78%	6.16%
Total Income/Revenue	206,733.21	194,203.15	201,812.23

Our company has generated to the total income of Rs. 206,733.21 lakhs, Rs. 194,203.15 lakhs and Rs. 201,812.23 lakhs for Fiscal 205, Fiscal 2024 and Fiscal 2023 respectively.

This includes, Revenue from operations of Rs. 206,203.52 lakhs, Rs. 193,819.63 lakhs and Rs. 201,509.72 lakhs for Fiscal 205, Fiscal 2024 and Fiscal 2023 respectively. Revenue from operations constitutes 99.74%, 99.80% and 99.85% for Fiscal 205, Fiscal 2024 and Fiscal 2023 respectively. While, other income is reported to be Rs. 529.69 lakhs, Rs. 383.52 lakhs and Rs. 302.51 lakhs for Fiscal 205, Fiscal 2024 and Fiscal 2023 respectively.

• Revenue from Operations

Revenue is combination of revenue from Trading Products, Manufacturing/Fabrication Products and Other Operating Income.

The following is the mix of revenue from operations of our Company for different products:

(Rs. in lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from Operation
Trading Products	204,118.09	190,820.76	200,180.67
As % of Revenue from Operations	98.99%	98.45%	99.34%
As % of Total Revenue	98.74%	98.26%	99.19%
Increase/(Decrease) in %	6.97%	-4.68%	28.73%
Manufacturing Products	1,088.40	2,040.35	823.12
As % of Total Revenue from Operations	0.53%	1.05%	0.41%
As % of Total Revenue	0.53%	1.05%	0.41%
Increase/(Decrease) in %	-46.66%	147.88%	94.23%
Other Operating Income	997.04	958.52	505.92
As % of Total Revenue from Operations	0.48%	0.49%	0.25%
As % of Total Revenue	0.48%	0.49%	0.25%
Increase/(Decrease) in %	4.02%	89.46%	16.46%
Total Revenue from Operation	206,203.52	193,819.63	201,509.72

Revenue from operations consists of revenue from Trading Product, Manufacturing Products and Other Operating Income.

Revenue from Trading Product was reported at Rs. 204,118.09 Lakhs, Rs. 190,820.76 lakhs and Rs. 200,180.67 lakhs for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. As percent of revenue from operations, it is 98.99%, 98.45%, and 99.34% for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Revenue from Manufacturing Product was reported at Rs. 1,088.40 lakhs, Rs. 2,040.35 lakhs and Rs. 823.12 lakhs for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively As percent of revenue from operations, it is 0.53%, 1.05% and 0.41% for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively

Other Operating income for Fiscal 2025, Fiscal 2024 and Fiscal 2023 was reported at Rs. 997.04 lakhs, Rs. 958.52 lakhs, and Rs. 505.92 lakhs respectively. As percent of revenue from operations, it is 0.48%, 0.49%, 0.25% and 0.25% for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

• Other Income

Other Income consist of various non-operating income,

(i) Commission,

(ii) Energy Generation Charges,

(iii) Installation & Maintenance Charges,

(iv) Interest Received,

(v) Profit on sale of Fixed Assets,

(vi) Sales Promotion,

(vii) Rent/Establishment Charges Received,

(viii) Balance W/Off,

(ix) Insurance Claim Received,

(x) Rent Income,

(xii) Gain on Cancellation of Lease contract,

(xiii) Gain on Debtor Impairment,

(xiv) Interest on Deposits (INDAS),

(xv) Fair Market Value gain on Investment, (xvi) Profit from Partnership Firm.

The following is the mix of Other Income:

(Rs. in lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Commission	-	0.91	20.03
As % of Total Other Income	-	0.24%	6.62%
Energy Generation Charges	8.45	10.23	10.93
As % of Total Other Income	1.59%	2.67%	3.61%
Installation & Maintenance Charges	-	-	7.74
As % of Total Other Income	-	-	2.56%
Interest Received	123.66	119.75	89.79
As % of Total Other Income	23.34%	31.23%	29.68%
Profit on sale of Fixed Assets	2.70	-	2.28
As % of Total Other Income	0.51%	-	0.75%
Sales Promotion	59.95	71.47	20.62
As % of Total Other Income	11.32%	18.64%	6.82%
Rent/Establishment Charges Received	2.58	4.68	18.42
As % of Total Other Income	0.49%	1.22%	6.09%
Balance W/Off	2.48	-	0.22
As % of Total Other Income	0.47%	-	0.07%
Insurance Claim Received	2.10	2.69	-
As % of Total Other Income	0.40%	0.70%	-
Rent Income	135.74	132.65	128.80
As % of Total Other Income	25.63%	34.59%	42.58%
Gain on Cancellation of Lease contract	-	37.41	-
As % of Total Other Income	-	9.76%	-
Gain on Debtor Impairment	168.82	-	-
As % of Total Other Income	31.87%	-	-
Interest on Income tax Refund	0.89	-	-
As % of Total Other Income	0.17%	-	-
Interest on Deposits (IND AS)	-	-	3.70
As % of Total Other Income	-	-	1.22%
Fair Market Value gain on Investment	22.11	3.72	-
As % of Total Other Income	4.17%	0.97%	-
Profit from Partnership Firm	0.22	-	-
As % of Total Other Income	0.04%	-	-
Total Other Income	529.69	383.52	302.51

Company has reported the Other income of Rs. 529.69 lakhs, Rs. 383.52 lakhs and Rs. 302.51 lakhs for Fiscal 2025, 2024, Fiscal 2024 and Fiscal 2023 respectively. As percent of total income, it is 0.26%, 0.20% and 0.15% for Fiscal 2025, Fiscal 2024, Fiscal 2023 and Fiscal 2022 respectively.

• Expenses

Total Expenses includes

(i) Cost of Material Consumed,

(ii) Purchase of stock in Trade,

(iii) Changes in Inventories,

(iv) Employee Benefit Expenses,

(v) Finance costs

(vi) Depreciation and Amortization, and

(vii) Other expenses.

The following is the Mix of Expenses to the Total Expenditure

(Rs. in lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Total Income/Revenue	206,733.21	194,203.15	201,812.23
EXPENDITURE
Cost of materials consumed	793.47	1,780.50	662.11
As a % of Total Revenue	0.38%	0.92%	0.33%
Purchase of stock in Trade	183,289.05	183,847.15	197,426.61
As a % of Total Revenue	88.66%	94.67%	97.83%
Changes in Inventories	1,933.35	(8,575.21)	(11,296.27)
As a % of Total Revenue	0.94%	-4.42%	-5.60%
Employee Benefit Expenses	2,061.74	2,014.64	1,902.14
As a % of Total Revenue	1.00%	1.04%	0.94%
Finance costs	3,778.75	2,799.27	2,065.15
As a % of Total Revenue	1.83%	1.44%	1.02%
Depreciation and Amortization	499.09	419.69	395.51
As a % of Total Revenue	0.24%	0.22%	0.20%
Other expenses	9,916.30	7,880.40	6,333.05
As a % of Total Revenue	4.80%	4.06%	3.14%
Total Expenditure	202,271.74	190,166.44	197,488.29
As a % of Total Revenue	97.84%	97.92%	97.86%

Company has reported the total expenditure of Rs. 202,271.74 lakhs, Rs. 190,166.44 lakhs and Rs. 197,488.29 lakhs for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Major part of total expenses in Purchase of stock in trade which accounted for 97.84%, 97.92% and 97.86% of the total revenue for Fiscal 2025, Fiscal 2024 and Fiscal 2023 espectively.

• Profit/(Loss) Before Tax

Company has reported the profit before tax of Rs. 4,461.46 lakhs, Rs. 4,036.70 lakhs and Rs. 4,323.94 lakhs for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

• Tax Expenses

Total tax expenses were Rs. 1,179.13 lakhs, 1,043.16 lakhs and Rs. 1,058.08 lakhs for for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Tax expenses constitutes of Current Tax and Deferred Tax.

• Profit/(Loss) After Tax

Company has reported the profit after tax of Rs. 3,283.33 lakhs, Rs. 2,993.54 lakhs and Rs. 3,265.86 lakhs for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. As percent of total income, it is 1.59%, 1.54% and 1.62% for F iscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Result of Operations

The table set forth shows the revenue and expenses of our company for the given period.

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
INCOME
Revenue from Operations	206,203.52	193,819.63	201,509.72
As a % of Total Revenue	99.74%	99.80%	99.85%
Other Income	529.69	383.52	302.51
As a % of Total Revenue	0.26%	0.20%	0.15%
Total Income/Revenue	206,733.21	194,203.15	201,812.23
EXPENDITURE
Cost of materials consumed	793.47	1,780.50	662.11
As a % of Total Revenue	0.38%	0.92%	0.33%
Purchase of stock in Trade	183,289.05	183,847.15	197,426.61
As a % of Total Revenue	88.66%	94.67%	97.83%
Changes in Inventories	1,933.35	(8,575.21)	(11,296.27)
As a % of Total Revenue	0.94%	-4.42%	-5.60%
Employee Benefit Expenses	2,061.74	2,014.64	1,902.14
As a % of Total Revenue	1.00%	1.04%	0.94%
Finance costs	3,778.75	2,799.27	2,065.15
As a % of Total Revenue	1.83%	1.44%	1.02%
Depreciation and Amortization	499.09	419.69	395.51
As a % of Total Revenue	0.24%	0.22%	0.20%
Other expenses	9,916.30	7,880.40	6,333.05
As a % of Total Revenue	4.80%	4.06%	3.14%
Total Expenditure	202,271.74	190,166.44	197,488.29
As a % of Total Revenue	97.84%	97.92%	97.86%
Profit Before Tax	4,461.46	4,036.70	4,323.94
As a % of Total Revenue	2.16%	2.08%	2.14%
Tax expense :
Current Tax	974.82	947.95	1,045.83
Tax provisions for earlier year	-	-	-
Deferred Tax	204.30	95.22	12.24
Total Tax Expenses	1,179.13	1,043.16	1,058.08
As a % of Total Revenue	0.57%	0.54%	0.52%
Profit After Tax	3,282.33	2,993.54	3,265.86
Other Comprehensive Income	1.59%	1.54%	1.62%
Items that will not be reclassified to profit or loss in subsequent periods:
Re-measurement (loss) / gain on defined benefit plans	11,172	39,525	(66,513)
Share of other comprehensive loss of an associate	(2,812)	(9,948)	16,740
Total Other Comprehensive Income	8.36	29.58	(49.77)
Total Comprehensive Income	3,290.69	3,023.12	3,216.09
Earnings Per Share (In Rs)
Basic	5,184	4,728	5,158
Diluted	5,184	4,728	5,158

Fiscal 2025 Compared with Fiscal 2024 Total Income/Revenue

Our company has achieved a total income of Rs. 206,733.21 lakhs, which has increased by Rs. 12,530.06 lakhs and by 6.45% compared to total income of Rs. 194,203.15 lakhs in fiscal 2024. Increase in total income was resulted from surge in Revenue from Operations, from Rs. 193,819.63 lakhs in fiscal 2024 to Rs. 206,203.52 lakhs in fiscal 2025, this shows the increase of 6.39% in revenue from operations.

Revenue from Operations

Revenue from operations in fiscal 2025 was amounted to Rs. 206,203.52 lakhs which increased by Rs. 12,383.89 lakhs and by 6.39% against Rs. 1,93,819.63 lakhs in fiscal 2023. Revenue from operation comprised of Trading revenue of Rs. 204,118.09 lakhs which increased by 6.97%, Revenue from Manufacturing products of Rs. 1,088.40 lakhs which increased by 46.66% and Other Operating Income of Rs. 997.04 lakhs which increased by 4.02%. Increase in revenue from operation was resulted from increase in sale of TMT bars which contributed 66.80% to the revenue from operations. Overall revenue from distribution of steel product has increased by 7.33%.

Other Income

Other income was reported at Rs. 529.69 lakhs which constituted 0.26% of the Total Income. Other income comprised of Energy Generation Charges of Rs. 8.453 lakhs, Interest Received of Rs. 123.66 lakhs, Sales Promotion of Rs. 59.95 lakhs, Rent/Establishment Charges Received of Rs. 2.58 lakhs, Insurance Claim Received of Rs. 2.10 lakhs, Rent Income of Rs. 135.74 lakhs, Gain on debtor impairment of Rs. 168.82 lakhs, and Fair Market Value gain on Investment of Rs. 22.11 lakhs.

Cost of Material Consumed

Cost of Material Consumed was amounted to Rs. 793.47 lakhs, representing 0.38% of the Total Income. At the start of the period company has Rs. 355.31 lakhs as raw material and company has purchased Rs. 834.87 lakhs of raw material fiscal 2025. Also the closing inventory was valued at Rs. 396.71 lakhs for the said period.

Purchase of stock in Trade

Purchase of stock in Trade was Rs. 183,289.05 lakhs, representing 88.66% of the Total Income. Major part of Purchases was towards purchase of Iron & steel Product that amounted to 182,869.56 lakhs, which has fallen by 1.12% compared to fiscal 2024. Overall Purchase have declined by Rs. 558.10 lakhs and by 0.30% compared to fiscal 2024.

Change in Inventories

Change in inventories amounted to Rs. 1,933.35 lakhs were reported for fiscal 2025, Company has opening inventory of Rs. 31,712.15 lakhs at the start of the period and closing inventory was reported amounting to Rs. 29,778.80 lakhs. The net decrease in inventories was primarily on account of decrease in inventory of Steel product by Rs. 2,455.75 lakhs.

Employee Benefit Expenses

Employee Benefit Expenses amounted to Rs. 2,061.74 lakhs, representing 1.00% of the Total Income. Major part of employee expenses was Salary of Rs. 823.76 lakhs, Wages of Rs. 439.49 lakhs, Incentive to Employee of Rs. 321.97 lakhs, Staff & Labour Welfare expenses of Rs. 122.23 lakhs, and Contribution to ESI and P. F. of Rs. 22.97 and Rs. 115.56 lakhs. Collectively these major expenses accounted for 89.54% to the total employee expenses. Also, Employee expenses in fiscal 2024 has increased by Rs. 47.09 lakhs and by 2.34% compared to fiscal 2024.

Finance Cost

The finance cost for the period amounted to Rs. 3,778.75 lakhs, representing 1.83% of the total income. It comprises interest expenses, including Rs. 3,055.70 lakhs on cash credit (CC) and term loans from banks, Rs. 696.27 lakhs on channel financing, and Rs. 26.77 lakhs on unsecured loans. Interest on CC and term loans accounted for 80.87% of the total finance cost. This was primarily driven by increase in cash credit from banks by Rs. 3,219.30 lakhs, reaching to Rs. 29,939.06 lakhs in fiscal 2025, Company has also availed channel finance of Rs. 8,467.83 lakhs during fiscal 2025. Overall finance cost has increased by Rs. 979.48 lakhs and by 34.99% compared to fiscal 2024.

Depreciation and Amortization

Depreciation and amortization was amounted to Rs. 499.09 lakhs representing 0.24% of the Total Income in fiscal 2025. Under Property, plant and equipment, depreciation charged on Buildings was Rs. 179.39 lakhs, Plant and equipment was Rs. 146.28 lakhs, Solar plant was Rs. 4.80 lakhs, Furnitures & Fittings was Rs. 4.80 lakhs, on vehicles was Rs. 38.78 lakhs, Office Equipments was Rs. 25.85 lakhs, Electrical Installation was Rs. 11.07 lakhs, Computers was Rs. 8.48 lakhs, Equipments for Rental was Rs. 55.30 lakhs. Also, Under Investment in Properties, Depreciation charged on Free Hold Land was Rs. 13.44 lakhs and Rs. 0.32 lakhs on Electrical Installations, which collectively amounted to Rs. 13.76 lakhs.

Other Expenses

For the fiscal 2025, Other expenses amounted to Rs. 9,916.30 lakhs, representing 4.80% of the Total Income. Other expenses have increased by Rs. 2,035.90 lakhs and by 25.83% compared to fiscal 2024. Major parts of Other expenses were, Packing Material of Rs. 171.22 lakhs, PEB & Railway Manufacturing Expenses of Rs. 535.06 lakhs, Dealers Conference, Seminar & Sales Promotion of Rs. 3,532.49 lakhs, Directors Remuneration of Rs. 324.00 lakhs, Electrical Charges & Expenses of Rs. 147.86 lakhs, Computer & Internet Expenses of Rs. 47.03 lakhs, Professional & Consultancy Charges of Rs. 70.66 lakhs, Rent of Rs. 490.64 lakhs, Repair & Maintenance of 195.10 lakhs, Transportation , Loading & Unloading Charges of Rs. 3,107.59 lakhs, Travelling & Conveyance of Rs. 252.74 lakhs. These expenses collectively accounted to 90.45% of the Total Other Expenses.

Total Expenditures

For fiscal 2024, Total Expenditure amounted to Rs. 202,271.74 lakhs, representing 97.84% of the Total Income. Total expenditure comprised of Cost of Material Consumed Rs. 793.47 lakhs, Purchase of stock in Trade of Rs. 183,289.05 lakhs, Changes in Inventories of Rs. 1,933.35 lakhs, Employee Benefit Expenses of Rs. 2,061.74 lakhs, Finance costs of Rs. 3,778.75 lakhs, Depreciation and Amortization of Rs. 499.09 lakhs, Other expenses of Rs. 9,916.30 lakhs. Total Expenditure increased by 6.37% and by Rs. 12,105.30 lakhs compared to fiscal 2024.

Profit Before Tax (PBT)

For fiscal 2024, Company has reported the Profit Before Tax of Rs. 4,461.46 lakhs. Profit before Tax as percent of total income or PBT Margin stood at 2.16%. PBT increased by Rs. 424.76 lakhs and by 10.52% compared to fiscal 2024. Total expenditure as percent of total income which has gone down from 97.92% in fiscal 2024 to 97.84% in fiscal 2025.

Tax Expenses

Tax expenses for the fiscal 2025 was amounted to Rs. 1,179.13 lakhs, which comprised of Current Tax of Rs. 974.82 lakhs, and Deferred Tax of Rs. 204.30 lakhs. Tax expenses increased by Rs. 135.97 lakhs and by 13.03% compared to fiscal 2024.

Profit After Tax (PAT)

Profit after tax for fiscal 2025 amounted to Rs. 3,282.33 lakhs. Profit after Tax as percent of total income or PAT Margin stood at 1.59% compared to 1.54% in fiscal 2024. Also profit after tax has increased by Rs. 288.79 lakhs and by 9.65% compared to fiscal 2024.

Fiscal 2024 Compared to Fiscal 2023 Total Income/Revenue

Our company has achieved a total income of Rs. 194,203.15 lakhs, which has declined by Rs. 7,690.08 lakhs and by 3.77% compared to total income of Rs. 2,01,812.23 lakhs in fiscal 2023. Decline in total income was resulted from fall in Revenue from Operations, from Rs. 2,01,509.72 lakhs in fiscal 2023 to Rs. 1,93,819.63 lakhs in fiscal 2024, this shows the decline of 3.82% in revenue from operations.

Revenue from Operations

Revenue from operations in fiscal 2024 was amounted to Rs. 1,93,819.63 lakhs which declined by Rs. 7,690.09 lakhs and by 3.82% against Rs. 2,01,509.72 lakhs in fiscal 2023. Revenue from operation comprised of Trading revenue of Rs. 190,820.76 lakhs which declined by 4.68%, Revenue from Manufacturing products of Rs. 2,040.35 lakhs which increased by 147.88% and Other Operating Income of Rs. 958.52 lakhs which increased by 89.46%. Decline in revenue from operation was resulted from fall in sale of TMT bars which contributed 66.64% to the revenue from operations and Average realization per ton on TMT has also fallen by 9.48% in fiscal 2024, Revenue from TMT fell by 6.46% to Rs. 129,163.54 lakhs compared to Fiscal 2023 and average realization per ton declined by 9.48% to Rs. 62,670.46 per MT in fiscal 2024 compared to Fiscal 2023. Also, average realization on flat products collectively have gone down by 2.30% to Rs. 77,413.92 in fiscal 2024 compared to Rs. 79,233.15 in fiscal 2023.

Other Income

Other income was reported at Rs. 383.52 lakhs which constituted 0.20% of the Total Income. Other income comprised of Commission of Rs. 0.91 lakhs Energy Generation Charges of Rs. 10.23 lakhs, Interest Received of Rs. 119.75 lakhs, Sales Promotion of Rs. 71.47 lakhs, Rent/Establishment Charges Received of Rs. 4.68 lakhs, Insurance Claim Received of Rs. 2.69 lakhs, Rent Income of Rs. 132.65 lakhs, Gain on Cancellation of Lease Contract of Rs. 37.41 lakhs, and Fair Market Value gain on Investment of Rs. 3.72 lakhs.

Cost of Material Consumed

Cost of Material Consumed was amounted to Rs. 1,780.50 lakhs, representing 0.92% of the Total Income. At the start of the period company has Rs. 322.14 lakhs as raw material and company has purchased Rs. 1,813.67 lakhs of raw material fiscal 2024. Also the closing inventory was valued at Rs. 355.31 lakhs for the said period.

Purchase of stock in Trade

Purchase of stock in Trade was Rs. 183,847.15 lakhs, representing 94.67% of the Total Income. Major part of Purchases was towards purchase of Iron & steel Product that amounted to 189,808.99 lakhs, which has fallen by 5.57% compared to fiscal 2023. Overall Purchase have declined by Rs. 13,579.46 lakhs and by 6.88% compared to fiscal 2023 due to lower demand primarily from TMT bars.

Change in Inventories

Change in inventories amounted to Rs. (8,575.21) lakhs were reported for fiscal 2024, Company has opening inventory of Rs. 23,136.94 lakhs at the start of the period and closing inventory was reported amounting to Rs. 31,712.15 lakhs. The net increase in inventories was primarily on account of increase in inventory of Steel product by Rs. 8,224.58 lakhs.

Employee Benefit Expenses

Employee Benefit Expenses amounted to Rs. 2,014.64 lakhs, representing 1.04% of the Total Income. Major part of employee expenses was Salary of Rs. 611.40 lakhs, Wages of Rs. 418.93 lakhs, Incentive to Employee of Rs. 289.85 lakhs, Staff & Labour Welfare expenses of Rs. 112.99 lakhs, and Contribution to P. F. of Rs. 111.04 lakhs. Collectively these major expenses accounted for 87.98% to the total employee expenses. Also, Employee expenses in fiscal 2024 has increased by Rs. 112.51 lakhs and by 5.91% compared to fiscal 2023.

Finance Cost

The finance cost for the period amounted to Rs. 2,799.27 lakhs, representing 1.44% of the total income. It comprises interest expenses, including Rs. 2,548.38 lakhs on cash credit (CC) and term loans from banks, Rs. 201.28 lakhs on channel financing, and Rs. 9.75 lakhs on unsecured loans and interest to suppliers of Rs. 39.86 lakhs. Interest on CC and term loans accounted for 91.04% of the total finance cost. This was primarily driven by increase in cash credit from banks by Rs. 3,242.75 lakhs, reaching to Rs. 26,719.76 lakhs in fiscal 2024, Company has also availed channel finance of Rs. 6,946.40 lakhs during fiscal 2024. Overall finance cost has increased by Rs. 734.12 lakhs and by 35.55% compared to fiscal 2023.

Depreciation and Amortization

Depreciation and amortization was amounted to Rs. 419.69 lakhs representing 0.22% of the Total Income in fiscal 2024. Under Property, plant and equipment, depreciation charged on Buildings was Rs. 147.57 lakhs, Plant and equipment was Rs. 122.75 lakhs, Solar plant was Rs. 4.80 lakhs, Furnitures & Fittings was Rs. 2.88 lakhs, on vehicles was Rs. 33.07 lakhs, Office Equipments was Rs. 22.21 lakhs, Electrical Installation was Rs. 8.01 lakhs, Computers was Rs. 12.01 lakhs, Equipments for Rental was Rs. 42.10 lakhs. Also, Under Investment in Properties, Depreciation charged on Free Hold Land was Rs. 13.44 lakhs and Rs. 0.28 lakhs on Electrical Installations, which collectively amounted to Rs. 13.72 lakhs.

Other Expenses

For the fiscal 2024, Other expenses amounted to Rs. 7,880.40 lakhs, representing 4.06% of the Total Income. Other expenses have increased by Rs. 1,547.35 lakhs and by 24.43% compared to fiscal 2023. Major parts of Other expenses were, Packing Material of Rs. 178.33 lakhs, PEB & Railway Manufacturing Expenses of Rs. 339.52 lakhs, Dealers Conference, Seminar & Sales Promotion of Rs. 2,147.13 lakhs, Directors Remuneration of Rs. 240.00 lakhs, Rent of Rs. 390.04 lakhs, Repair & Maintenance of Rs. 178.55 lakhs, Transportation, Loading & Unloading Charges of Rs. 2,853.00 lakhs, and Travelling & Conveyance of Rs. 327.76 lakhs. These expenses collectively accounted to 84.44% of the Total Other Expenses.

Total Expenditures

For fiscal 2024, Total Expenditure amounted to Rs. 190,166.44 lakhs, representing 97.92% of the Total Income. Total expenditure comprised of Cost of Material Consumed, Purchase of stock in Trade, Changes in Inventories, Employee Benefit Expenses, Finance Costs, Depreciation Expense and Other Expenses, amounting to Rs. 1,780.50 lakhs, Rs. 183,847.15 lakhs, Rs. (8,575.21) lakhs, Rs. 2,014.64 lakhs, Rs. 2,799.27 lakhs, Rs. 419.69 lakhs, and Rs. 7,880.40 lakhs, respectively. Total Expenditure declined by 3.71% and by Rs. 7,321.85 lakhs compared to fiscal 2023.

Profit Before Tax (PBT)

For fiscal 2024, Company has reported the Profit Before Tax of Rs. 4,036.70 lakhs. Profit before Tax as percent of total income or PBT Margin stood at 2.08%. PBT declined by Rs. 287.24 lakhs and by 6.64% compared to fiscal 2023. Increase in Total expenditure as percent of total income which has gone up from 97.86% in fiscal 2023 to 97.92% in fiscal 2024 and lower sales in value and fall in average realization collectively resulted to lower profitability.

Tax Expenses

Tax expenses for the fiscal 2024 was amounted to Rs. 1,043.16 lakhs, which comprised of Current Tax of Rs. 947.95 lakhs, and Deferred Tax of Rs. 95.22 lakhs.

Profit After Tax (PAT)

Profit after tax for fiscal 2024 amounted to Rs. 2,993.54 lakhs. Profit after Tax as percent of total income or PAT Margin stood at 1.54% compared to 1.62% in fiscal 2023. Also profit after tax has decreased by Rs. 272.32 lakhs and by 8.34% compared to fiscal 2023.

Comparison of Cash Flow Statement

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Net Cash Flow from Operating Activities	5,022.80	(5,304.89)	(8,350.46)
Net Cash Flow from Investing Activities	(2,412.64)	(2,651.17)	(2,120.35)
Net Cash Flow from Financing Activities	(1,419.59)	7,980.98	9,912.25
Net increase/(Decrease) in Cash & Cash Equivalent	1,190.57	24.92	(558.56)
Cash and cash equivalents as at beginning of the Period	29.80	4.88	563.44
Cash and cash equivalents as at end of the Period	1,220.36	29.80	4.88

Cash Flow from Operating Activities

Fiscal 2025: Operating profit before working capital change was Rs. 8,594.79 lakhs, the same has been adjusted for decrease in inventories of Rs. 1,891.95, decrease in loans of Rs. 98.12 lakhs, increase in trade receivables of Rs. 2,310.89 lakhs, increase in other financial assets by Rs. 14.50 lakhs and decrease in other assets by 565.79 lakhs, these adjustments have collectively resulted in cash inflow of Rs. 230.47 lakhs which was offset by payment o trade payables by Rs. 2,356.65 lakhs, increase in other financial liabilities by Rs. 482.06 lakhs, decrease in other liabilities by Rs. 952.81 lakhs and fall in provisions of Rs. 45.26 lakhs. Post payment of taxes of Rs. 929.81 lakhs, the net cash generated from operating activities was Rs. 5,022.80 lakhs.

Fiscal 2024: Operating profit before working capital change was Rs. 7,134.30 lakhs, the same have been adjusted for increase in inventories of Rs. 8,608.38 lakhs, increase in loans of Rs. 2,623.97 lakhs, increase in trade receivables of Rs. 3,106.95 lakhs, decrease in other financial assets of Rs. 25.01 lakhs, decrease in other assets by Rs. 162.78 lakhs, collectively cash outflow on account of current assets have increased by Rs. 14,151.51 lakhs which was offset by increase in trade payables by Rs. 1,859.71 lakhs, decrease in other financial liabilities by 790.95 lakhs, increase in other liabilities by 1,501.33 lakhs and decrease in provision by Rs. 5.08 lakhs. Post payment of taxes of Rs. 852.69 lakhs, the net cash used for operating activities amounted to Rs. 5,304.89 lakhs.

Fiscal 2023: Operating profit before working capital change was Rs. 6,626.02 lakhs, the same have been adjusted for increase in inventories of Rs. 11,028.79 lakhs, decrease in loans of Rs. 36.65 lakhs, increase in trade receivables of Rs. 226.46 lakhs, increase in other financial assets of Rs. 5.51 lakhs, increase in other assets by Rs. 866.69 lakhs, collectively cash outflow on account of current assets have increased by Rs. 12,090.81 lakhs which was offset by increase in trade payables by Rs. 231.89 lakhs, decrease in other financial liabilities by 1,654.89 lakhs, decrease in other liabilities by Rs. 474.33 lakhs and increase in provision by Rs. 53.37 lakhs. Post payment of taxes of Rs. 1,041.72 lakhs, net cash used for operating activities amounted to Rs. 8,350.46 lakhs.

Cash Flow from Investing Activities

Fiscal 2025: During this period company has net purchase of Property Plant and Equipment of Rs. 2,347.02 lakhs, funds invested in fixed deposits of Rs. 30.19 lakhs, interest received of Rs. 123.66 lakhs and purchase of investments of Rs. 159.09 lakhs. Collectively, this has resulted in cash used in investing activities amounted to Rs. 2,412.64 lakhs.

Fiscal 2024: During this period company has Purchase of Property Plant and Equipment of Rs. 2,697.63 lakhs, funds used in fixed deposits of Rs. 23.11 lakhs, interest received of Rs. 119.75 lakhs and purchase of investments of Rs. 50.18 lakhs. Collectively this resulted in cash used in investing activities amounted to Rs. 2,651.17 lakhs.

Fiscal 2023: During this period company has Purchase of Property Plant and Equipment of Rs. 2,108.84 lakhs, funds received from Sale of Property Plant and Equipment of 8.91 lakhs, funds received from fixed deposits of Rs. 2.89 lakhs, interest received of Rs. 89.78 lakhs and purchase of investments of Rs. 113.10 lakhs. Collectively, this resulted in cash used in investing activities amounted to Rs. 2,120.35 lakhs.

Cash Flow from Financing Activities

Fiscal 2025: During this period company has received funds from net borrowings of Rs. 3,308.89 lakhs, paid the interest amounted to 3,778.75 lakhs and paid dividend of Rs. 949.73 lakhs. This collectively resulted to cash used in financing activities amounted to Rs. 1,419.59 lakhs.

Fiscal 2024: During this period company has increased the borrowings by Rs. 11,171.22 lakhs and paid the interest amounted to Rs. 2,799.27 lakhs, repayment of finance lease obligation of Rs. 390.97 lakhs. This collectively resulted to cash generated from financing activities amounted to Rs. 7,980.98 lakhs.

Fiscal 2023: During this period company has increased the borrowings by Rs. 12,029.85 lakhs and paid the interest amounted to Rs. 2,065.15 lakhs, repayment of finance lease obligation of Rs. 52.45 lakhs. This collectively resulted to cash generated from financing activities amounted to Rs. 9,912.25 lakhs.

Disclosures Regarding Market and Other Risks Financial risk management objectives and policies

The Companys principal financial liabilities comprise borrowings, security deposits, trade and other payables, etc. The main purpose of these financial liabilities is to finance the Companys operations. The Companys principal financial assets include trade receivable, security deposit, cash and cash equivalents, etc. that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The management oversees the management of these risks. The management is responsible for formulating an appropriate financial risk governance framework for the Company and periodically reviewing the same. The management ensures that financial risks are identified, measured and managed in accordance with the Companys policies and risk objectives. The management reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: interest rate risk, foreign currency risk and Equity price risk.

• Interest Rate Risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has borrowings based on fixed rate and floating rate, therefore Company is exposed to such risk on borrowings with floating rates.

(Rs. in Lakhs)

Sensitivity Analysis of the Interest Rate	Fiscal 2025	Fiscal 2024	Fiscal 2023
Impact of the change in Interest rate
Interest cost for the reporting Period	3,751.98	2,749.66	2,011.30
Impact due to increase/Decrease of 1.00%	428.39	395.30	283.58

• Equity Price Risk: The fair value of some of the Companys investments measured at fair value through statement of Profit and loss exposes the Company to equity price risks. These investments are subject to changes in the market price of securities.

(Rs. in Lakhs)

Sensitivity Analysis of the Equity investment	Fiscal 2025	Fiscal 2024	Fiscal 2023
Impact of the change in Interest rate
Fair Market Value of Investment	0.04	0.11	0.08
Impact due to increase/Decrease of 10.00%	0.00	0.01	0.01

a) Credit Risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the balance sheet.

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Trade receivables	16,411.18	14,100.29	10,993.34
Other financial assets	190.82	137.00	526.64

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

Credit risk arises mainly from loans, trade receivables and financial assets. The Company maintains a defined credit policy and monitors the exposures to these credit risks on an on-going basis.

On adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the expected credit loss for trade receivables has been provided which has been in note 10 of the financial Statements.

The carrying amount of financial assets represents the maximum credit exposure. The Company monitors credit risk very closely both in domestic and export market. The Management impact analysis shows credit risk and impact assessment as low. b) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.

The following are the contractual maturities of the financial liabilities, including estimated interest payments as at 31 st March 2025:

(Rs. in Lakhs)

Particulars	Carrying amount	Contractual Cash Flows
		0-1 year	1-5 years	>5 years	Total
Borrowings	42,838.55	39,719.35	3,119.20	-	42,838.55
Trade Payables	30.83	30.83	-	-	30.83
Other Financial Liabilities	1,462.73	1,462.73	-	-	1,462.73
Total	44,332.10	41,212.91	3,119.20	-	44,332.10

The following are the contractual maturities of the financial liabilities, including estimated interest payments as at March 31, 2024:

(Rs. in Lakhs)

Particulars	Carrying amount	Contractual Cash Flows
		0-1 year	1-5 years	>5 years	Total
Borrowings	39,529.66	35,025.70	4,503.96	-	39,529.66
Trade Payables	2,387.48	2,387.48	-	-	2,387.48
Other Financial Liabilities	995.66	995.66	-	-	995.66
Total	42,912.80	38,408.84	4,503.96	-	42,912.80

The following are the contractual maturities of the financial liabilities, including estimated interest payments as at March 31, 2023:

(Rs. in Lakhs)

Particulars	Carrying amount	Contractual Cash Flows
		0-1 year	1-5 years	>5 years	Total
Borrowings	28,358.44	24,212.95	4,145.49	-	28,358.44
Trade Payables	527.77	527.77	-	-	527.77
Other Financial Liabilities	1,781.61	1,781.61	-	-	1,781.61
Total	30,667.82	26,522.33	4,145.49	-	30,667.82

Capital management

The management policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain future development of the business. The Companys management monitor the return on capital employed.

The Following table summarize the capital of the Company:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Short Term Debt	39,719.35	35,025.70	24,212.95
Long Term Debt	3,119.20	4,503.96	4,145.49
Total Debt	42,838.55	39,529.66	28,358.44
Equity	21,011.78	18,670.81	15,647.70
Total Capital	63,850.33	58,200.48	44,006.14