Connplex Cinemas Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 23 and "Forward Looking Statements" beginning on page 16, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations.

The following discussion of our financial condition and results of operations should be read in conjunction with our restated financial statements for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 including the schedules and notes thereto and the reports thereto, which appear in the section titled "Financial Information of our company" on Page No. 194 of the Red Herring Prospectus.

The financial statements presented and discussed herein have been prepared to comply in all material respects with the notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act and SEBI (Issue of Capital and Disclosure Requirements) Regulations. Our fiscal year ends on March 31 of each year. Accordingly, all references to a particular fiscal year/financial year are to the twelve-month period ended on March 31 of that year. The forward-looking statements contained in this discussion and analysis is subject to a variety of factors that could cause actual results to differ materially from those contemplated by such statements.

OVERVIEW

Connplex Cinemas Limited is an entertainment company. The company is engaged in the business of development of theatres, entering into the franchise agreements specializing for exhibition and distribution of films, sharing revenue of screening of movies, sale of food & beverages and Sharing of Revenue from sale of Food & Beverages & advertisements at Various Franchised Cinema, and other related business under the Brand name "CONNPLEX" and other Brands registered under the name of Company.

We operate a network of Cinema offering a diverse range of cinematic experiences that cater to various audience preferences. Our business is built on three main pillars: A) Making / Developing of Cinema Theatres, B) film exhibition & film distribution (Including Event Hosting), and C) Revenue Sharing / Sale of Food and Beverages and Other Revenue incl. advertisement Sharing.

Additionally, we collaborate with filmmakers and studios to distribute films across our theatres and digital platforms, focusing on strategic marketing to maximize audience reach. Beyond regular screenings, we also provide event spaces for private screenings, corporate events, and community gatherings, creating additional revenue streams and engaging our local communities.

Our Company was originally formed as "Fohatron Power Limited" vide registration no. 284745 under the provisions of Companies Act

2013 pursuant to Certificate of Incorporation dated September 1, 2015 issued by Registrar of Companies, Delhi. Further, the name of our Company was changed to VCS Industries Limited pursuant to fresh certificate of incorporation issued by Registrar of Companies, Delhi on February 16, 2018. The Registered office of our Company was shifted from Delhi to Gujarat w.e.f. November 18, 2019. Further, the name of our Company was changed to Connplex Cinemas Limited pursuant to fresh certificate of incorporation issued by Registrar of Companies, Central Processing Centre on August 14, 2024.

We are distinguished by our customer experience which includes cinema making, film distribution, programming and latest technologies. Our strategic locations and theater technologies give us a edge in attracting and retaining audiences. We cater to a diverse audience, including families, young adults, and cinema enthusiasts, with programming designed to engage these segments through a mix of mainstream blockbusters, art films, and themed events.

We have redefined cinema experiences by strategically focusing on under-served markets in Tier 2, 3, and 4 cities, as well as expanding in metro locations including tier 1 cities across India. Our mission has always been to bring entertainment to regions where such experiences were previously unavailable or inaccessible.

By introducing a cinema model that blends convenience, and affordability, we have broken traditional barriers, allowing audiences from various regions to enjoy a premium movie-going experience without the prohibitive costs typically associated with large multiplex chains.

Our cinemas are constructed and designed with a deep understanding of customer preferences and regional nuances. With majority of recliner seating, sound systems, and high-definition projection technology, we ensure that every aspect of the movie experience is elevated.

The smaller, boutique-style cinemas offer an intimate and private yet upscale environment, catering to local audiences who previously had limited access to cinemas. This approach allows us to build strong connections with our communities, providing them not only with a place to watch films but also with a venue for private events such as corporate screenings, birthday parties, and special premieres.

In addition to enhancing the movie-watching experience, we have prioritized developing multiple revenue streams that extend beyond ticket sales. Our food and beverage (F&B) services are a key part of our business model. We offer a wide variety of snacks and beverages.

Our partnership with delivery partners allows customers to enjoy cinema-quality popcorn, nachos, beverages and other snacks from the comfort of their homes.

We are also in providing advertising solutions within our cinemas. Our venues offer both on-screen and off-screen advertising opportunities, giving brands a direct platform to engage with captive audiences. Whether it is through movie trailers, interactive digital displays, or custom brand integrations, we help companies maximize their exposure to key demographics.

Our Promoters and key managerial personnel have been instrumental in the growth of our business and actively advise us on corporate strategy and planning. We have a strong management team with significant industry experience. Our Managing Director, Mr. Anish Tulshibhai Patel and Joint Managing Director, Mr. Rahul Kamleshbhai Dhyani have 06 years of experience each in this industry, thus experience of the Directors has been instrumental in determining the vision and growth strategies for our Company.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Restated Standalone Financial Statements under chapter titled "Restated Financial Statements" beginning on page 194 of this Red Herring Prospectus.

Factors Affecting our Results of Operations

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 23 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

RESULTS OF OUR OPERATION

			For The Year Ended 31st March
Particulars	2025		% of Total Revenue			2024	% of Total Revenue			2023	% of Total Revenue
Revenue:
Revenue from Operations	9,560.96		98.79%			6,029.74	99.12%			2,536.91	99.07%
Other income	117.22		1.21%			53.53	0.88%			23.90	0.93%
Total revenue	9,678.18		100.00%			6,083.27	100.00%			2,560.81	100.00%
Cost of services	-		-			-	-			-	-
Purchases of stock-in-trade	3,658.33		37.80%			3,156.20	51.88%			953.96	37.25%
Change in Inventories of Finished
	(298.81)		(3.09) %			(236.14)	(3.88%)			(190.46)	(7.44%)
Goods & WIP
Professional Charge & Direct
		2,089.74		21.59%	1,509.15			24.81%	976.43			38.13%
Expense
Employee benefits expense		524.59		5.42%	354.54			5.83%	200.61			7.83%
Finance costs		11.14		0.12%	5.65			0.09%	3.94			0.15%
Depreciation and amortisation
		156.00		1.61%	115.88			1.90%	64.29			2.51%
expense
Other expenses		959.56		9.91%	626.53			10.30%	333.51			13.02%
Total Expenses		7,100.54		73.37%	5,531.80			90.93%	2,342.28			91.47%
Profit before exceptional and
		2,577.64		26.63%	551.47			9.07%	218.53			8.53%
extraordinary items and tax
Exceptional Items		-		-	-			-	-			-
Profit before extraordinary items
		2,577.64		26.63%	551.47			9.07%	218.53			8.53%
and tax
Extraordinary items		-		-	-			-	-			-
Profit before tax		2,577.64		26.63%	551.47			9.07%	218.53			8.53%
Tax expense:
Current tax		677.36		7.00%	143.39			2.36%	24.20			0.95%
Short/(Excess) provision of tax for
		-		-	-			-	-			-
earlier years
Deferred Tax		(0.71)		(0.01%)	(0.67)			(0.01%)	29.48			1.15%
Total Tax Expenses		676.65		6.99%	142.72			2.35%	53.69			2.10%
Profit (Loss) for the period from
		1,900.99		19.64%	408.75			6.72%	164.84			6.44%
continuing operations

Review of Restated Financials

Key Components of Companys Profit and Loss Statement

Revenue from operations:

Revenue from operations mainly consists from Sales of services.

Other Income:

Other Income Consist of Interest Income, Profit on Sale of Fixed Assets, Sundry Creditors W/O, Short term Capital Gain on overnight fund collection a/c & Other Income etc.

Expenses:

Companys expenses consist of, purchase of stock in trade, Changes in Inventories of Finished Goods WIP, Professional Charge & Direct Expense, Depreciation and amortization expense, Employee Benefit Expenses, Finance Cost & Other Expenses.

Purchase of stock in trade:

Purchase & Distributor Charges.

Changes in inventories of Finished Goods & WIP:

Changes in inventories of Finished Goods & WIP consist of difference between opening & closing Value of Stock.

Professional Charge & Direct Expense:

professional charge and direct tax expenses includes Cosmic Eye Expenses, Franchisee Share, Professional Fees Movie Distributor, right to use Server Expense, Movie Booking Charges & Projector Lamp Expense.

Employee Benefits Expense:

Employee benefit expenses include Salaries and Wages, Directors Remuneration, Professional Tax Expense, Bonus & Incentive Expenses, Ex Gratia Payment, Contribution of Provident & Other Funds, Gratuity Expenses & Staff Welfare Expenses etc.

Finance Cost:

Finance Cost includes Interest paid on borrowings, Bank Charges, Interest & Late Fees On TDS, EDC Swipe charges & Credit Card charges

Depreciation and Amortization Expense:

We recognize Depreciation and Amortization expense on a WDV Basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable.

Other Expenses:

Other expenses includes Administrative expense, Advertisement Expense, Audit Fees, Paytm Commission Expense, Commission Expense, Electricity Expense, Insurance Expense, Interior Decoration Charges, Marketing Expense, Material for Science City, Office Expense, Office Maintenance Expense, Office Rent Expense, Rent of cinema properties, Packing And Forwarding Charges, Petrol Expense, Printing and Stationery, Professional Fees & Consultancy fees, Legal Fees, Rate & Taxes, Repairs & Maintenance, ROC Professional Fees and Gov. Fees, Software Expense, Transportation Expense, Travelling Expense etc.

Fiscal 2025 compared with Fiscal 2024

Revenue from Operations

Revenue from operations increased significantly by 58.56% from 6,029.74 lakhs in Fiscal 2024 to 9,560.96 lakhs in Fiscal 2025. This growth was primarily attributable to higher income from setting up cinema operations (including franchisee fees), which increased from

2,719.05 lakhs to 4,895.89 lakhs, alongside notable increases in ticket sales and advertisement revenue, indicating expanded operations and enhanced monetization across screens.

Justification for increase in Revenue of the Company in FY25 as compared to FY24.

The revenue growth from 6,029.74 lakhs in FY 2023-24 to 9,560.96 lakhs in FY 2024-25 were primarily driven by the full-year operational performance of existing screens, including earnings from ticket sales and food & beverage (F&B) sales, along with revenue generated from the development of new cinemas.

During this year, the company added a total of 17 new cinemas, further strengthening its market presence. A major contributor to this growth of revenue was the Rs. 4895.89 lakhs earned specifically from cinema development, which significantly enhanced overall revenue.

Other Income

Other income rose by 118.98% to 117.22 lakhs in Fiscal 2025 from 53.53 lakhs in Fiscal 2024. The surge was mainly due to a profit of 58.33 lakhs on sale of fixed assets and higher short-term capital gains from overnight fund collections.

Purchases of Stock-in-Trade

Purchases increased by 15.91%, from 3,156.20 lakhs in Fiscal 2024 to 3,658.33 lakhs in Fiscal 2025. This was driven by increased distributor charges and project volume, reflecting higher film and content acquisition aligned with expansion.

Changes in Inventories

Inventory change reported a higher negative adjustment of (298.81) lakhs in Fiscal 2025 versus (236.14) lakhs in Fiscal 2024, owing to increased year-end work-in-progress inventory levels, suggesting a buildup of in-process installations and expansion-linked stock holding.

Professional Charges & Direct Expenses

This cost head increased by 38.47% to 2,089.74 lakhs from 1,509.15 lakhs, primarily due to higher franchisee share payouts and increased right-to-use server expenses, reflecting scaling of operations and digital platform costs.

Employee Benefit Expenses

Employee cost rose by 47.96%, from 354.54 lakhs to 524.59 lakhs, attributed to increased workforce engagement and salary increments in line with operational growth.

Finance Costs

Finance costs almost doubled to 11.14 lakhs from 5.65 lakhs, driven by higher interest on MSME creditors and other financial charges associated with increased business volume.

Depreciation and Amortization

Depreciation expense increased by 34.62% to 156.00 lakhs from 115.88 lakhs, largely due to capitalization of assets linked to new screens and technological upgrades.

Other Expenses

Other expenses saw a 53.16% rise to 959.56 lakhs from 626.53 lakhs, led by increased rent of cinema properties, marketing expenses, legal and professional consultancy charges, and administrative costs associated with expanded operations.

Total Expenses

Overall, total expenses rose by 28.36% from 5,531.80 lakhs in Fiscal 2024 to 7,100.54 lakhs in Fiscal 2025, in line with operational scaling and cost structure expansion.

Profit Before Tax

Profit before tax increased substantially by 367.41%, from 551.47 lakhs in Fiscal 2024 to 2,577.64 lakhs in Fiscal 2025, driven by strong top-line growth and relatively slower expense growth.

Tax Expenses

Tax expenses increased from 142.72 lakhs to 676.65 lakhs, in line with higher profitability. Deferred tax adjustments remained negligible.

Profit After Tax

Net profit increased sharply from 408.75 lakhs in Fiscal 2024 to 1,900.99 lakhs in Fiscal 2025, reflecting operational leverage and improved business performance.

Fiscal 2024 compared with Fiscal 2023

Revenue from Operation

Revenue from operations had increased by 137.68 % from 2536.91 lakhs in Fiscal 2023 to 6029.74 lakhs in Fiscal 2024 was due to increase in sales of products and other operating revenue during the year.

Justification for increase in Revenue of the Company in FY24 as compared to FY23.

The revenue growth from Rs. 2,536.91 lakhs in FY 2022-23 to Rs. 6,029.74 lakhs in FY 2023-24 were primarily driven by the full-year operational performance of existing screens, including earnings from ticket sales and food & beverage (F&B) sales, along with revenue generated from the development of new cinemas.

During this year, the company added a total of 25 new screens, further strengthening its market presence. A major contributor to this growth of revenue was the Rs. 2,719.05 lakhs earned specifically from cinema development, which significantly enhanced overall revenue.

For FY 2021-22 was a transitional period for the company, during which revenue from cinema development did not fully translate into earnings from ticket bookings and food & beverage (F&B) sales, as most screens became operational only toward the end of the financial year. Consequently, the financial impact of these new screens was not fully realized in that year.

However, in FY 2022-23, the company experienced a notable increase in revenue due to the full-year operation of screens that had been launched late in FY 2021-22.

This allowed the company to maximize earnings from ticket sales and F&B, resulting in stronger financial performance. Additionally, despite the growth in revenue, operating expenses remained relatively stable during this period. This operational efficiency played a key role in improving profitability, leading to a higher PAT (Profit After Tax)-to-sales ratio.

Other Income

Other income had increased by 123.97 % from 23.90 lakhs in Fiscal 2023 to 53.53 lakhs in Fiscal 2024 majorly due to Increase in interest on FDR which increased from 16.21 lakhs in Fiscal 2023 to 38.27 Lakhs in Fiscal 2024, Increase in other incomes which increased from 6.01 lakhs in Fiscal 2023 to 11.43 Lakhs in Fiscal 2024, Increase in profit on sale of fixed assets which increased from nil in Fiscal 2023 to 2.92 Lakhs in Fiscal 2024,

Purchase of stock in trade

Purchase of stock in trade had increased by 230.85 % from 953.96 lakhs in Fiscal 2023 to 3156.20 lakhs in Fiscal 2024. This increase was primarily due to Increase in Purchases which increased from Rs. 381.98 Lakhs in Fiscal 2023 to Rs. 2106.10 Lakhs in Fiscal 2024 & increase in distributers charges which increased from Rs. 571.98 Lakhs in Fiscal 2023 to Rs.1134.95 Lakhs in Fiscal 2024.

Changes in Inventories of Finished Goods & WIP

Changes in Inventories of Finished Goods, WIP & Stock in Trade had increased by 23.98 % from (190.46) lakhs in Fiscal 2023 to

(236.14) lakhs in Fiscal 2024. This decrease was primarily due to higher closing inventories during the year.

Changes in Inventories of Finished Goods and WIP to be read along with purchase of stock in trade and Revenue Earned. Overall total Cost of Changes in Inventories and Cost of purchase of stock in trade has increased to 48 % of total revenue earned during Fiscal Year 2024 as against 29.81 % in Fiscal Year 2023. Since the increase in cost was not passed on to the consumers.

Professional Charge & Direct Expense:

Professional Charge & Direct Expense had increased by 54.56% from 976.43 lakhs in Fiscal 2023 to 1509.15 lakhs in Fiscal 2024. This increase was primarily due to increase Franchisee Share which increased from Rs. 920.01 Lakhs in Fiscal 2023 to Rs.1406.97 Lakhs in Fiscal 2024, Professional Fees Movie Distributor which increase from 28.52 Lakhs in Fiscal 2023 to Rs. 31.84 Lakhs in Fiscal 2024, Right to use Server Expense from Rs. 22.66 Lakhs in Fiscal 2023 to 53.58 Lakhs in Fiscal 2024, increase in Movie Booking Charges from Rs. nil Lakhs in Fiscal 2023 to Rs. 5.84 Lakhs in Fiscal 2024, increase in Projector Lamp Expense from Rs. 5.24 Lakhs in Fiscal 2023 to Rs. 10.91 Lakhs in Fiscal 2024

Employee Benefit Expenses

Employee benefit expenses had increased by 76.73 % from 200.61 lakhs in Fiscal 2023 to 354.54 lakhs in Fiscal 2024. This increase was primarily due to increase Salaries and wages Expenses which increased from Rs. 75.71 Lakhs in Fiscal 2023 to Rs. 212.95 Lakhs in Fiscal 2024, Staff Welfare Expenses which increase from 5.48 Lakhs in Fiscal 2023 to Rs. 12.33 Lakhs in Fiscal 2024, Ex Gratia Payment from Rs. nil in Fiscal 2023 to 8.50 Lakhs in Fiscal 2024, Gratuity from Rs. nil in Fiscal 2023 to 10.77 Lakhs in Fiscal 2024 etc & Decrease in Directors Remuneration from Rs. 110.70 Lakhs in Fiscal 2023 to Rs. 108 Lakhs in Fiscal 2024. Bonus & Incentive Expenses from Rs. 8.72 Lakhs in Fiscal 2023 to Rs.2 Lakhs in Fiscal 2024

Finance Cost

Finance Cost had increased by 43.40 % from 3.94 lakhs in Fiscal 2023 to 5.65 lakhs in Fiscal 2024. This increase was primarily due to increase in Interest expenses Rs. 0.92 Lakhs in Fiscal 2023 to Rs. 2.54 lakhs in Fiscal 2024, EDC Swipe charges from Rs. 1.08 Lakhs in Fiscal 2023 to Rs. 2.04 lakhs in Fiscal 2024 & Interest & Late Fees on TDS from Rs. 0.82 Lakhs in Fiscal 2023 to Rs. 0.89 lakhs in Fiscal 2024

Depreciation and Amortization Expenses

Depreciation had increased by 80.24 % from 64.29 lakhs in Fiscal 2023 to 115.88 lakhs in Fiscal 2024. This increase is mainly due to addition in tangible fixed assets by 279.19 lakhs during the fiscal 2024.

Other Expenses

Other expenses had increased by 87.86 % from 333.51 lakhs in Fiscal 2023 to 626.53 lakhs in Fiscal 2024. The increase was mainly due to increase in Administrative expense from 44.41 lakhs in fiscal 2023 to 80.03 in fiscal 2024, Marketing Expense from 21.64 lakhs in fiscal 2023 to 44.77 lakhs in fiscal 2024, Office Expense from 20.85 lakhs in fiscal 2023 to 31.44 lakhs in fiscal 2024 , Rent of cinema properties from nil in fiscal 2023 to 229.01 lakhs in fiscal 2024, Professional Fees & Consultancy fees from 39.80 lakhs in fiscal 2023 to 74.55 lakhs in fiscal 2024. Software Expense from 7.12 lakhs in fiscal 2023 to 22.13 lakhs in fiscal 2024.

Tax Expenses

The Companys tax expenses had increased by 166 % from 53.69 lakhs in the Fiscal 2023 to 142.72 lakhs in Fiscal 2024. This was primarily due to increase in current tax expenses during the year.

Tax Expenses are directly proportional to Profit Before tax which is increased from 218.53 lakhs in the fiscal 2023 to 551.47 in fiscal 2024.

Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of 408.75 lakhs in Fiscal 2024 as compared to a net profit of 164.84 lakhs in Fiscal 2023.

Reasons for the increase in Profit after Tax is mainly due to the increase in revenue from operations from 2536.91 lakhs in fiscal 2023 to 6029.74 lakhs in fiscal 2024.

Justification for increase in PAT of the Company in FY24 as compared to FY23.

The Profit After Tax (PAT) grew from Rs. 164.84 lakhs in FY 2022-23 to Rs. 408.75 lakhs in FY 2023-24, primarily driven by the expansion of operations while fixed costs remained relatively stable until additional expenses were required. Additionally, there is typically a time lag between the launch of new cinemas and the realization of full-year earnings from ticket sales and food & beverage (F&B) revenue.

Some screens may be set up in one financial year, generating revenue from cinema development, but they may not operate for the entire year, delaying the full revenue impact from ticket bookings and F&B sales until the following year. This staggered effect in revenue realization significantly contributed to the increase in PAT. Furthermore, during this period, 25 new screens were developed with higher profit margins, further enhancing overall profitability.

Cash Flows

( in lakhs)

Particulars	March 31, 2025	March 31, 2024	March 31, 2023
Net Cash from Operating Activities	280.29	402.46	882.68
Net Cash from Investing Activities	(460.89)	(439.26)	(616.41)
Net Cash used in Financing Activities	33.63	(10.66)	23.47

Cash Flows from Operating Activities

Net cash from operating activities for fiscal 2025 was at 280.29 lakhs as compared to the Profit Before Tax at 2577.64 lakhs while for fiscal 2024 Net cash from operating activities was at 402.46 lakhs as compared to the Profit Before Tax at 551.47 Lakhs. This was primarily due to adjustments against adjustments against, changes in Working Capital & Income Tax Paid.

Net cash from operating activities for fiscal 2024 was at 402.46 lakhs as compared to the Profit Before Tax at 551.47 lakhs while for fiscal 2023 Net cash from operating activities was at 882.68 lakhs as compared to the Profit Before Tax at 218.53 Lakhs. This was primarily due to adjustments against adjustments against, changes in Working Capital & Income Tax Paid.

Cash Flows from Investment Activities

In fiscal 2025, the net cash invested in Investing Activities was (460.89) lakhs. This was mainly on account of Purchases of Fixed Asset and increase in long term loans and advances for purpose of business

In fiscal 2024, the net cash invested in Investing Activities was (439.26) lakhs. This was mainly on account of Purchases of Fixed Assets and investment in non-current assets.

In fiscal 2023, the net cash invested in Investing Activities was (616.41) lakhs. This was mainly on account of Purchases of Fixed Assets and investment in non-current assets.

Cash Flows from Financing Activities

In fiscal 2025, the net cash from financing activities was 33.63 lakhs. This was on account of proceeds of long term and short-term borrowings.

In fiscal 2024, the net cash used in financing activities was (10.66) lakhs. This was on account of repayment of long-term borrowings and interest paid.

In fiscal 2023, the net cash from financing activities was 23.47 lakhs. This was on account of proceeds of long-term Borrowings and interest paid.

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 hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity.

There are no Unusual or infrequent events or transactions in our Company. The transactions are as per usual business operations.

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

Except for any change in economic policy affecting our industry in India, there are no other significant economic changes that may materially affect or likely to affect income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 23 in the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by growth of industry in which we operate.

5. Increases in net sales or revenue and Introduction of new products or services or increased sales prices

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

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

Our Company has not announced any new Product.

7. Seasonality of business

Our Business is not seasonal in Nature but the sales is fluctuated due to festive season.

8. Dependence on few customers/ clients

The percentage of contribution of our Companys Top Customers/Clients for the year ended March 31, 2025 is as follows:

Particulars	Customers
Top Ten (%)	30.79%

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Business Overview" beginning on pages 100 and 123 respectively of the Red Herring Prospectus.

10. Details of material developments after the date of last balance sheet i.e. March 31, 2025

After the date of last Balance sheet i.e. March 31, 2025, no material events have occurred after the last audited period.

Particulars	Pre-Issue As at 31/03/2025	Post Issue*
Debt :
Long Term Debt#	57.65	57.65
Short Term Debt#	14.06	14.06
Total Debt	71.71	71.71
Shareholders Funds
Equity Share Capital#	1,400.00	[?]
Reserves and Surplus#	1,043.98	[?]
Total Shareholders Funds	2,443.98	[?]
Long Term Debt/ Shareholders Funds	0.02	[?]
Total Debt / Shareholders Fund	0.03	[?]

* The corresponding post-Issue capitalization data is not determinable at this stage pending the completion of the Book Building process and hence have not been furnished. To be updated upon finalization of the Issue Price. # These Terms shall carry the meaning as per Schedule III of The Companies Act, 2013.

1. Short term Debts represent which are expected to be paid/payable within 12 months and includes installment of term loans repayable within 12 months. 2. Long term Debts represent debts other than short term Debts as defined above but excludes installment of term loans repayable within 12 months. 3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at 31.03.2025. 4. Company has allotted 1,35,00,000 Bonus Equity Shares on 21-11-2024 in the ratio of 27:1 i.e. 1 Bonus equity shares for every 1 equity shares held on 21-11-2024