Boss Packaging Solutions Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with the Restated Financial Statements as of and for the five months period ended August 31, 2023 and for the Fiscals 2023, 2022 and 2021 including the notes and significant accounting principles thereto and the report thereon, which appear beginning on page 146 of this Draft Prospectus. Our Restated Financial Statements differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries, and our assessment of the factors that may affect our prospects and performance in future periods. Accordingly, the degree to which our Restated 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 GAAP. These regulations may also vary with

ICDS, which may be material to an investors assessment of our results of operations and financial condition.

Our fiscal year ends on March 31 of each year, so all references to a particular Fiscal or fiscal year are to the twelve-month period ended March 31 of that year.

The following discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those set forth in the chapter titled "Risk Factors" and "Forward Looking statements" on page 23 and 17 respectively of this Draft Prospectus and elsewhere in this Draft Prospectus.

Some of the information contained in this section, including information with respect to our strategies, contain forward- looking statements that involve risks and uncertainties. You should read the chapter titled "Forward-

Looking Statements" beginning on page 17 of this Draft Prospectus for a discussion of the risks and uncertainties related to those statements and also the chapter titled "Risk Factors" and "Our Business" beginning on pages

23 and 103 respectively, of this Draft Prospectus for a discussion of certain factors that may affect our business, results of operations and financial condition. The actual results of the Company may differ materially from those expressed in or implied by these forward-looking statements.

Unless otherwise stated, references to "the Company", "our Company", "we", "us", and "our" are to Boss

Packaging Solutions Limited.

Overview

Our company well-equipped machine manufacturing facilities along with registered office at 11-C, Survey No. 56/1/2/3, Ramdev Estate, Near Siddipura Estate, Opposite Ramol Mehmdabad Highway, Vinzol Road, Ahmedabad, Gujarat 38225 which is spread over approx 500 sq yards. From a single type equipment manufactured to facilitate filling and sticker labeling machine in 2012, we have expanded our equipment portfolio to wide range of packaging machines which includes a comprehensive range of packaging machinery such as, industrial packaging machines with Semi-Automatic or automatic Liquid Filling Machines, Semi-Automatic or Automatic Screw or ROPP Capping machine, Pick and Place Screw Capping Machines. Wide range of Self-Adhesive Sticker Labelling Machines, Hologram Applicator Machines, Shrink Sleeve Applicator Machine, Conveyors and Turn Tables, Air Jet Cleaning Machine, Semi-Automatic or automatic shrink-wrapping machines (Web Sealer), Electric Tunnels and Winder, Rewinder and customized atomization to cater to diverse customer requirements.

For the five months period ended August 31, 2023, Fiscal 2023, Fiscal 2022 and Fiscal 2021, our total revenue was 258.97 lakhs, 1,034.71 lakhs, 548.21 lakhs and 534.75 lakhs, respectively, and our profit after tax for the year was 34.18 lakhs, 100.51 lakhs, 41.77 lakhs and 11.38 lakhs, respectively. Our EBITDA for the five month period ended August 31, 2023 and for the Fiscal 2023, Fiscal 2022 and Fiscal 2021 was 54.19 lakhs, 143.69 lakhs, 69.19 lakhs and 25.85 lakhs, respectively.

Principal Factors Affecting our Results of Operations:

We have applied the following accounting policies in preparing our financial statements for Fiscal 2023:

i. Significant Accounting Policies

For details in respect of Statement of Significant Accounting Policies, please refer to Annexure V of Restated

Financial Statements under chapter titled "Restated Financial Statements" beginning on page 146 of this Prospectus.

KEY PERFORMANCE INDICATORS OF OUR COMPANY

( in lakhs,except for ratios and percentages)

Particulars	Five months	Fiscal Year ended March 31,
	period ended August 31, 2023	2023	2022	2021
EBITDA(1)	54.19	143.69	69.19	25.85
EBITDA Margin in % (2)	20.93	13.90	12.64	4.84
PAT Margin in % (3)	13.20	9.72	7.63	2.13
*ROE in % (4)	9.01	49.75	41.14	19.03
Capital Employed(5)	457.20	205.74	121.26	111.81
*ROCE in % (6)	11.36	67.35	53.26	20.13
Debt(7)	77.92	3.70	19.73	52.02
Net Debt(8)	211.14	306.07	164.26	195.11
Debt-Equity Ratio (9)	0.21	0.02	0.19	0.87
*Net Debt-EBITDA Ratio(10)	3.90	2.13	2.37	7.46
Net Tangible Assets(11)	379.28	202.04	101.53	59.80
Monetary Assets (12)	9.79	28.01	13.42	10.44
%of Monetary Assets to Net Tangible Assets (13)	2.58	13.86	13.22	17.45
Net Worth (14)	379.28	202.04	101.53	59.77
*Return on Net Worth in % (15)	9.01	49.75	41.14	19.03
Pre-Tax Operating Profit(16)	51.86	137.74	63.77	22.10
1. Net Asset Value per Equity Share(17)	11.96	2020.44	1015.33	597.65
No. of customers	19	61	56	47
Sales to customers (19)	13.63	16.95	9.78	11.36
Gross Profit (20)	(76.04)	360.04	208.29	179.86
Gross Profit Margin in % (21)	(29.37)	34.82	38.05	33.68

Notes:

2. EBITDAiscalculatedasthesumof(i)profitbeforetaxandpriorperioditemsfortheperiod/year, (ii)depreciation and amortization expenses, and (iii) finance costs.

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

4. PAT Margin is calculated as profit for the period/year divided by Revenue from Operations.

5. ROE is calculated as profit for the period/year divided by total equity.

6. Capital Employed is calculated as total equity, plus non-current borrowings, plus current borrowings, less current investments, less cash & cash equivalents, less bank balances other than cash & cash equivalents.

7. ROCE is calculated as earnings before interest and taxes divided by Capital Employed.

8. Debt is calculated as the sum of current borrowings and non-current borrowings.

9. Net Debt is calculated as total liabilities less cash & cash equivalents and bank balances.

10. Debt-Equity Ratio is calculated as Debt divided by total equity. 11. Net Debt-EBITDA Ratio is calculated as Net Debt divided by EBITDA.

12. Net Tangible Assets is calculated as the sum of all the assets of our Company excluding, right of use assets and other intangible assets as reduced by total liabilities

of our Company.

13. Monetary Assets is calculated as cash and cash equivalents and bank balances and excluding bank deposits with remaining maturity of more than twelve months and

fixed deposits held as margin money.

14. % of Monetary Assets to Net Tangible Assets is calculated as Monetary Assets divided by Net Tangible Assets, expressed as a percentage.

15. Net Worth is calculated as the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account and debit or

credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.

16. Return on Net Worth is calculated as profit for the period/year divided by Net Worth.

17. Pre-Tax Operating Profit is calculated as profit before tax and prior period items for the period/year, excluding other income, finance costs .

18. Net Asset Value per Equity Share is calculated as Net Worth divided by the weighted average number of equity shares for the period/year as adjusted for bonus issue.

Weighted average number of equity shares is the number of equities shares outstanding at the beginning of the year/period adjusted by the number of equity shares issued during the year/period multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year/period.

19. Sales to Customers is calculated as Revenue from Operations divided by number of customers.

20. Gross Profit is calculated as the difference between Revenue from Operations and the cost of finished goods produced (i.e. sum of: (i) cost of materials consumed; (ii) purchase of stock-in-trade; and (iii) changes in inventories of finished goods, semi- finished goods and stock-in-trade).

21. Calculated as Gross Profit divided by Revenue from Operations.

Overview of Revenue and Expenditure

The following descriptions set forth information with respect to key components of our income statement.

Revenue

Revenue from operations

Revenue from operations comprises income from: a. Sale of manufacturing products such as Labelling machine, Filling machine, Full packaging line and others.

Other income

Other income primarily comprises interest income, amongst others.

Expenditure

Our expenditure comprises the following:

1. Cost of materials consumed: Cost of materials consumed comprises (i) the cost of raw materials used in the manufacture of our products; and (ii) the cost of other materials. Our raw materials include SS 304 sheets and pipe, M.S. Plate, Aluminium round bars, M S round bar, Bearings, Nut bolts, Tools, Valves. Amongst others.

2. Changes in inventories of finished goods: Expenses accounted for pursuant to an (increase)/decrease in inventories of finished goods.

3. Employee benefit expenses: Employee benefit expenses comprises of salaries, wages, and staff welfare expenses.

4. Finance costs: Finance costs comprises interest expenses on borrowings, and other borrowing cost.

5. Depreciation and amortization expenses: Depreciation and amortization expenses comprises depreciation of tangible assets including our plant and machinery, building, factory equipment, computer equipment, office and other equipment, furniture and fixture, amongst others; and amortization of intangible assets including computer software and others.

6. Other expenses: Other expenses comprise primarily of rents, repairs and maintenance expenses, insurance, Sundry balance written off & Discount, travelling and conveyance, transportation & ROC & Compliance fees, amongst others.

Geographic information

The following table sets forth a breakdown of our revenue including GST, Material Handling & transportation from operations by geography for the periods indicated:

( in lakhs)

Name of Products	August 31, 2023	As % of Revenue from Operations	March 31, 2023	As % of Revenue from Operations	March 31, 2022	As % of Revenue from Operations	March 31, 2021	As % of Revenue from Operations
Domestic	305.48	100.00	1221.00	99.39	646.43	98.24	653.00	100
-West	207.92	68.06	917.00	74.59	403.64	61.35	503.00	77.04
-North	24.55	8.04	98.00	7.97	107.04	16.27	87.00	13.38
-South	62.65	20.51	191.00	15.53	75.41	11.46	45.00	6.96

Name of Products	August 31, 2023	As % of Revenue from Operations	March 31, 2023	As % of Revenue from Operations	March 31, 2022	As % of Revenue from Operations	March 31, 2021	As % of Revenue from Operations
-East	10.36	3.39	16.00	1.29	60.34	9.17	17.00	2.61
Exports	0.00	0.00	8.00	0.61	11.55	1.76	0.00	0.00
Total	305.48	100.00	1229	100	657.98	100	653.00	100

Results of Operations

The following table sets forth our income statement data, the components of which are expressed as a percentage of total income for the periods indicated, for our operations for the five month period ended on August 31, 2023 Fiscal 2023, Fiscal 2022 and Fiscal 2021.

Particulars	For the five		For the year ended March 31,
	months period ended August 31, 2023			2023		2022		2021
	( in lakhs)	% of Total Income	( in lakhs)	% of Total Income	( in lakhs)	% of Total Income	( in lakhs)	% of Total Income
Income
Revenue from operations	258.88	99.97	1033.89	99.92	547.40	99.85	534.03	99.87
Other income	0.09	0.03	0.82	0.08	0.81	0.15	0.72	0.13
Total income	258.97	100.00	1,034.71	100.00	548.21	100.00	534.75	100.00
Expenses:
Cost of materials consumed	334.92	129.33	673.85	65.12	339.11	61.86	354.17	66.23
Changes in inventories of finished goods and work-in- progress	(206.98)	(79.92)	0.00	0.00	0.00	0.00	0.00	0.00
Employee benefits expense	55.40	21.39	147.48	14.25	102.36	18.67	85.20	15.93
Finance costs	6.16	2.38	3.95	0.38	8.52	1.55	7.09	1.32
Depreciation and amortization expenses	2.24	0.86	5.13	0.50	4.61	0.84	3.32	0.62
Other expenses	21.44	8.28	69.69	6.74	37.55	6.85	69.23	12.95
Total expenses	213.18	82.32	900.10	86.99	492.15	89.77	518.98	97.05
Profit before tax	45.79	17.68	134.61	13.01	56.06	10.23	15.77	2.95
Tax expenses:
Current tax	11.52	4.45	34.40	3.32	14.55	2.65	4.10	0.77
Deferred tax	0.09	0.03	(0.30)	0.00	(0.26)	(0.05)	(0.03)	(0.01)
current tax of earlier years	0.00	0.00	0.00	0.00	0.00	0.00	0.32	0.06
Total tax expenses	11.61	4.48	34.10	3.30	14.29	2.61	4.39	0.82
Profit for the year	34.18	13.20	100.51	9.71	41.77	7.62	11.38	2.13

REVIEW OF OPERATION FOR THE PERIOD ENDED AUGUST 31, 2023 Income: Total Revenue

Our total revenue amounted to 258.97 Lakhs for the period ended which is on account of revenue from operations as described below:

Revenue from Operations

Our revenue from operations for the period ended August 31, 2023 amounted to 258.88 Lakhs which is about

99.97 % of the total revenue which comes from sale of our products.

Expenditure:

Total Expenses

Total expenses for the period ended August 31, 2023 amounted to 213.18 Lakhs constituting 82.32 % of the total revenue.

Cost of Materials Consumed

The cost of materials consumed for the period ended August 31, 2023 amounted to 334.92 Lakhs which is about

129.33 % of the total revenue.

Employee Benefits Cost

The employee benefits expenses for the period ended August 31, 2023 amounted to 55.40 Lakhs which is about 21.39 % of the total revenue.

Finance Cost

The finance cost for the period ended August 31, 2023 amounted to 6.16 Lakhs which is about 2.38 % of the total revenue.

Depreciation and Amortization Expenses

Depreciation for the period ended August 31, 2023 amounted to 2.24 Lakhs which is about 0.86 % of the total revenue.

Other Expenses

Other Expenses for the period ended August 31, 2023 amounted to 21.44 Lakhs which is about 8.28 % of the total revenue.

Tax expense

Our total tax expenses for the period ended August 31, 2023 amounted to 11.61 Lakhs which is about 4.48 % of the total revenue.

Our tax expenses comprised (i) current tax amounting to 11.52 Lakhs, and (ii) deferred tax amounting to 0.09 Lakhs.

Profit after Tax

Profit after tax for the period ended August 31, 2023 is 34.18 Lakhs which is about 13.20 % of the total revenue.

Financial Year 2023 compared to Financial Year 2022

( in lakhs) >

Particulars	For the year ended March 31,			Change (%)
	2023		2022
Income
Revenue from operations	1033.89		547.40	88.87
Other income	0.82		0.81	1.23
Total revenue	1034.71		548.21	88.74
Expenses
Cost of materials consumed	673.85		339.11	98.71
Particulars		For the year ended March 31,		Change (%)
		2023	2022
Changes in inventories of finished goods		0.00	0.00
				0.00
and work-in-progress
Employee benefits expenses		147.48	102.36	44.08
Finance costs		3.95	8.52	(53.68)
Depreciation and amortization expenses		5.13	4.61	11.28
Other expenses		69.69	37.55	85.60
Total expenses		900.10	492.15	82.89
Profit before tax		134.61	56.06	140.12
Tax expenses:
Current tax		34.40	14.55	136.43
Deferred tax		(0.30)	(0.26)	0.00
current tax of earlier years		0.00	0.00	0.00
Total tax expenses		34.10	14.29	138.63
Profit for the year		100.51	41.77	140.63

Total Revenue

Total Revenue increased by 88.74 % to 1034.71 lakhs for the Financial Year 2023 from 548.21 lakhs for the

Financial Year 2022 primarily due to increase in revenue from operations.

Revenue from operations

Revenue from operations increased by 88.87 % to 1033.89 lakhs for the Financial Year 2023 from 547.40 lakhs for the Financial Year 2022 primarily due to an increase in revenue from sale of products, which was mainly attributable to the overall demand in the market and increase in production. Our domestic sales increased to 1025.89 lakhs for the Financial Year 2023 from 535.85 lakhs for the Financial Year 2022, which was primarily driven by increased in business in west and south zone by having aggressive marketing and business development by our sales team.

Other Income

Our other income increased by 1.23 % from 0.81 lakhs in Fiscal 2022 to 0.82 lakhs in Fiscal 2023.Such increase in other income was primarily due to interest income.

Total expenses.

Total expenses increased by 82.89 % to 900.10 lakhs for the Financial Year 2023 from 492.15 lakhs for the Financial Year 2022 primarily due to increases in costs of materials consumed, employee benefits expense, other expenses, depreciation and amortization expenses.

Cost of Materials Consumed

Our cost of materials consumed increased by 98.71 % from 339.11 lakhs in Fiscal 2022 to 673.85 lakhs in

Fiscal2023, primarily due to an increase in consumption of raw materials with increase in production of products.

Employee Benefits Expense

Our employee benefits expense increased by 44.08% from 102.36 lakhs in Fiscal 2022 to 147.48 lakhs in Fiscal 2023 due to an increase in staff benefits and incentives as increases in production during the year.

Finance Costs

Our finance costs decreased by 53.68% from 8.52 lakhs in Fiscal 2022 to 3.95 lakhs in Fiscal 2023, primarily due to decrease in interest expenses on borrowings and other borrowing costs.

Depreciation and Amortization Expenses

Our depreciation and amortization expense increased marginally by 11.28 % from 4.61 lakhs in Fiscal 2022 to

5.13 lakhs in Fiscal 2023, primarily due to an increase in depreciation on tangible assets.

Other expenses

Our other expenses increased by 85.60 % from 37.55 lakhs in Fiscal 2022 to 69.69 lakhs in Fiscal 2023, generally in line with the increase in our production volume. Specifically, the increase was driven by (i) advertising and publicity to 11.88 lakhs for the Fiscal 2023 from 4.83 lakhs for the Fiscal 2022; and (ii) office and miscellaneous expenses to 13.65 lakhs for the Financial Year 2023 from 7.29 lakhs for the Financial Year 2022; (iii) travelling and conveyance expenses to 9.36 lakhs for the Financial Year 2023 from 1.46 lakhs for the Financial Year 2022.

Profit before tax

As a result of the foregoing, we recorded an increase of 140.12% in our profit before tax, which amounted to 134.61 lakhs in Fiscal 2023, as compared to 56.06 lakhs in Fiscal 2022.

Tax expenses

Our tax expenses (current, deferred and current tax of earlier years) increased by 138.63 % from 14.29 lakhs in Fiscal 2022 to 34.10 lakhs in Fiscal 2023. This was primarily due to an increase in current tax by 136.43 % from14.55 lakhs in Fiscal 2022 to3 4.40 lakhs in Fiscal 2023.

Restated Profit for the period

As a result of the foregoing, we recorded an increase of 140.63 % in our profit for the year from 41.77 lakhs in Fiscal 2022 to 100.51 lakhs in Fiscal 2023.

Financial Year 2022 compared to Financial Year 2021

( in lakhs)

Particulars	For the year ended March 31,		Change (%)
	2022	2021
Income
Revenue from operations	547.40	534.03	2.50
Other income	0.81	0.72	12.50
Total revenue	548.21	534.75	2.52
Expenses
Cost of materials consumed	339.11	354.17	(4.25)
Changes in inventories of finished goods	0.00	0.00	0.00
and work-in-progress
Employee benefits expenses	102.36	85.20	20.14
Finance costs	8.52	7.09	20.70
Depreciation and amortization expenses	4.61	3.32	38.86
Other expenses	37.55	69.20	(45.77)
Total expenses	492.15	518.98	(5.17)
Profit before tax	56.06	15.77	255.49
Tax expenses:
Current tax	14.55	4.10	254.88
Deferred tax	-0.26	-0.03	766.67
current tax of earlier years	0.00	0.32	(100.00)
Total tax expenses	14.29	4.07	225.51
Profit for the year	41.77	11.38	267.21

Total Revenue increased by 2.52 % to 548.21 lakhs for the Financial Year 2022 from 534.75 lakhs for the

Financial Year 2021 due to increase in revenue from operations.

Revenue from operations

Revenue from operations marginally increased by 2.50 % to 547.40 lakhs for the Financial Year 2022 from 534.03 lakhs for the Financial Year 2021 primarily due to an increase in revenue from sale of products, which was mainly attributable to the overall demand in the market and increase in production. Our domestic sales increased to 535.85 lakhs for the Financial Year 2022 from 534.03 lakhs for the Financial Year 2021, which was primarily driven by increase in sales volumes

Our export sales was 11.55 lakhs for the Financial Year 2022 from Nil in FY 2021.

Other Income

Ourotherincomeincreasedby12.50 %from 0.72 lakhs in Fiscal2021to 0.81 lakhs in Fiscal 2022.Such increase in other income.

Total expenses.

Total expenses decreased by 5.17% to 492.15 lakhs for the Financial Year 2022 from 518.98lakhs for the Financial Year 2021 primarily due to increases in costs of materials consumed, employee benefits expense, depreciation and amortization expenses, other expenses, partially offset by changes in inventories of finished goods and work-in-progress.

Cost of Materials Consumed

Our cost of materials consumed decreased by 4.25% from 354.17 lakhs in Fiscal 2021 to 339.11 lakhs in Fiscal2022, primarily due to increase in volume in purchases of material.

Employee Benefits Expense

Our employee benefits expense increased by 20.14% from 85.20 lakhs in Fiscal 2021 to 102.36 lakhs in Fiscal 2022 due to an increase in employee cost, welfare and incentives.

Finance Costs

Our finance costs increased by 20.70 % from 7.09 lakhs in Fiscal 2021 to 8.52 lakhs in Fiscal 2022, primarily due to increase in interest expense as borrowing has increased.

Depreciation and Amortization Expense

Our depreciation and amortization expense increased by 38.86 % from 3.32 lakhs in Fiscal 2021 to 4.61 lakhs in Fiscal 2022, primarily due to increase in computers and furniture.

Other expenses

Our other expenses decreased by 45.77 % from 69.20 lakhs in Fiscal 2021 to 37.55 lakhs in Fiscal 2022, generally in line with the increase in our production volume. Specifically, the increase was driven by (i) repairs and maintenance to 3.45 lakhs for the Fiscal 2022 from 7.93 lakhs for the Fiscal 2021; and (ii) travelling and conveyance to 1.46 lakhs for the Financial Year 2022 from 7.13 lakhs for the Financial Year 2021; (iii) Sundry bal w/off & Discount to 0.69 lakhs for the Financial Year 2022 from 1.60 lakhs for the Financial Year 2021.

Profit before tax

As a result of the foregoing, we recorded an increase of 255.49 % in our profit before tax, which amounted to 56.06 lakhs in Fiscal 2022, as compared to 15.77 lakhs in Fiscal 2021.

Tax expenses

Our tax expenses (current, deferred and current tax of earlier years) increased by 225.51 % from 14.29 lakhs in Fiscal 2022 to 4.39 lakhs in Fiscal 2021. This was primarily due to change in current tax by 254.88 % from4.10 lakhs in Fiscal 2021 to 14.55 lakhsinFiscal2022.

Restated Profit for the period

As a result of the foregoing, we recorded an increase by 267.21 % in our profit for the year from 11.38 lakhs in Fiscal 2021 to 41.77 lakhs in Fiscal 2022.

CASH FLOWS

The following table summarizes our cash flows for the Fiscal 2023, Fiscal 2022 and Fiscal 2021:

( in lakhs)

Particulars	For the five months	For the year ended March 31,
	period ended August 31, 2023	2023	2022	2021
Net Cash generated from	(224.85)	38.34	49.35	(11.32)
Operating Activities
Net Cash (Used in) Investing	(4.49)	(3.78)	(5.57)	(2.87)
Activities
Net Cash from/ (Used in)	211.11	(19.97)	(40.80)	(0.66)
Financing Activities
Net Increase/(Decrease) in	(18.22)	14.59	2.98	(14.82)
Cash and Cash Equivalents
Cash and Cash Equivalents at the beginning of the year	28.01	13.42	10.44	25.26
Cash and Cash Equivalents at the end of the year	9.79	28.01	13.42	10.44

Cash flows generated from operating activities

Net cash outflow from operating activities in for the five months period August 31, 2023 was (224.85) lakhs.

Our operating profit before working capital changes was Rs 54.19 lakhs, which was primarily adjusted by decrease in short term loans and advances, inventories, trade payables and other current liabilities.

Net cash outflow from operating activities in for the period March 31, 2023 was 38.34 lakhs. Our operating profit before working capital changes was Rs 142.61 lakhs, which was primarily adjusted by increase in short term loans and advances, other current assets, trade payables and other current liabilities.

Net cash outflow from operating activities in for the period March 31, 2022 was 49.35 lakhs. Our operating profit before working capital changes was 68.12 lakhs, which was primarily adjusted by increase in trade receivables, short term provisions and other current liabilities.

Net cash outflow from operating activities in for the period March 31, 2021 was (11.32) lakhs. Our operating profit before working capital changes was 25.39 lakhs, which was primarily adjusted by increase in short term loans and advances, other current assets, trade payables and other current liabilities.

Cash flows used in investing activities

Net cash used in investing activities was (4.49) lakhs in August 31, 2023, primarily on account of purchase of fixed assets.

Net cash used in investing activities was (3.78) lakhs in Fiscal 2023, primarily on account of purchase of fixed assets and interest income.

Net cash used in investing activities was (5.57) lakhs in Fiscal 2022, primarily on account of primarily on account of purchase of fixed assets and interest income.

Net cash used in investing activities was (2.85) lakhs in Fiscal 2021, primarily on account of purchase of fixed assets and interest income.

Cash flows generated from / (used in) financing activities

Net cash used in investing activities was 211.11 lakhs in August 31, 2023, primarily on account of Proceeds from issue of Share Capital, repayment of borrowing and interest and finance cost.

Net cash generated from financing activities in Fiscal 2023 amounted to (19.97) lakhs, which primarily consists of repayment of borrowing and interest and finance cost.

Net cash generated from financing activities in Fiscal 2022 amounted to (40.80) lakhs, which primarily consisted consists of repayment of borrowing and interest and finance cost.

NetcashusedinfinancingactivitiesinFiscal2021amountedto (0.66) lakhs, which primarily consisted of consists of repayment of borrowing and interest and finance cost.

Contingent Liabilities

There are no contingent liabilities of the Company for the five months period ended August 31, 2023 and financial year ended March 31, 2023. March 31, 2022 and March 31, 2021.

Details of material developments after the date of last balance sheet i.e., March 31, 2023.

After the date of last Balance sheet i.e., August 31, 2023, the following material events have occurred:

1. Our Company has approved the Restated Financial Statements for the financial year ending March 31, 2023, March 31, 2022 and March 31, 2021 in the Board meeting dated November 20, 2023.

2. Our Company has approved the Draft Prospectus vide resolution in the Board Meeting dated December 7, 2023.

AUDITOR OBSERVATIONS

There are no qualifications, reservations and adverse remarks by our Statutory Auditors in our Restated Financial Statement.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given here under:

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, to our knowledge, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.

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

Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in "Factors Affecting our Results of Operations" and the uncertainties described in the chapter entitled "Risk Factors" beginning on page 23 of this Draft

Prospectus. To our knowledge, except as we have described in this Draft Prospectus, there are no known factors which we expect to bring about significant economic changes.

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.

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in "Managements Discussion and Analysis of Financial

Position and Results of Operations Significant Factors Affecting our Results of Operations and

Financial Condition" and the uncertainties described in the chapter titled "Risk Factors" beginning on page 187 and 12 respectively of this Draft Prospectus. To our knowledge, except as discussed in this Draft Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the chapter titled "Risk Factors", "Our Business" and "Managements

Discussion and Analysis of Financial Condition and Results of Operations" on page 23, 103 and 187 to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Status of any publicly announced New Products or Business Segment

Except as set out in this Draft Prospectus, we have not announced and do not expect to announce in the near future any new business segments.

6. Seasonality of business

Our Companys business is not seasonal in nature or cyclicality. For more details, please refer to chapter titled "Industry Overview" and "Our Business" beginning on pages 93 and 103 respectively of this Draft Prospectus.

7. Competitive conditions

Competitive conditions are as described under the chapters titled "Industry Overview" and "Our Business" beginning on pages 93 and 103 respectively of this Draft Prospectus.

8. Any significant dependence on a single or few customers.

The proportion of our revenues have historically been derived from the number of customers. The % contribution of our Company customer vis a vis the revenue from operations and direct expenses purchased for the financial year ended March 31, 2023, for the financial year ended March 31, 2022 and for the financial year ended March 31, 2021 are tabulated as follows:

Particulars	For the period ended as on				As at
	August 31, 2023		March 31, 2023		March 31, 2022		March 31, 2021
	( in Lakhs)	%s	( in Lakhs)	%	( in Lakhs)	%	( in Lakhs)	%
Top 10 customers	194.62	75.18	658.52	63.69	370.24	67.63	385.29	72.14
Top 10 suppliers	254.29	98.23	557.83	53.95	259.63	47.43	298.11	55.82