OPERATIONS.
The following discussion and analysis of our financial condition and results of operations for the financial years ended on 2025, 2024 and 2023 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 189 of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.
You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on 31 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.
In this section, unless the context otherwise requires, any reference to "we", "us" or "oui" refers to Coreintegra Consulting Services Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the financial years ended on 2025, 2024 and 2023 included in this Draft Red Herring Prospectus beginning on page 189 of this Draft Red Herring Prospectus.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.
BUSINESS OVERVIEW
We are one of the very few integrated players offering staffing, payroll outsourcing, labour law compliance, and proprietary HR-Tech solutions under a single umbrella. (Source: Ken Research Report). We are a comprehensive human resource solutions provider, offering end-to-end services tailored to meet the evolving needs of businesses across diverse industries. Our human resource services offer targeted support in recruitment, staffing, payroll processing, HR advisory including labour compliances, licenses and registration, policy drafting, just in time hiring solutions, retainership and assurance services which are designed to support regulatory compliance for businesses. We also offer tech- driven solutions to streamline and digitize human resource management through our proprietary platforms CoreX and Core Pay under HR Tech, and Ctrl-F and Core -PFT under Reg Tech. Our technology platforms provide mechanisms for evaluating employee competencies, enhancing learning experiences, managing employee lifecycle, upskilling, ensuring regulatory compliance, and fostering workforce engagement. In addition to human resource service provider, we also provide vendor management services.
We offer a range of solutions under our five key verticals: HR Services, Vendor Management Services, Compliance and Advisory, Reg Tech and HR Tech Solutions. During the Fiscal 2023 to Fiscal 2025, we have successfully provided our diverse range of services to more than 500 customers across more than 30 industries, spanning presence 20 states by serving more than 1500 client locationinin through the network of 7 branch offices and during this period, we achieved a CAGR of 10.75% in revenue from operations, underscoring the scalability and sustained demand for our integrated workforce and compliance solutions.
For more details, please refer chapter titled "Our Business" beginning on page 128 of this Draft Red Herring Prospectus.
SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025
In the opinion of the Board of Directors of our Company, since the date of the stub period in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months. However, following material events have occurred after the last audited period:
Following material events have occurred after the last audited period:
1. Pursuant to a resolution passed by our Board and our Shareholders on May 15, 2025, our Company has increased the authorized share capital from existing Rs.5,00,000/- (Rupees five lakh) divided into 50,000 Equity Shares of Rs.10 each to ^25,00,00,000/- (Rupees twenty-five crores) divided into 2,50,00,000 Equity shares of Rs.10 each.
2. Pursuant to a resolution passed by our Board on July 28, 2025 and our Shareholders on August 01, 2025 our Company has issued bonus shares in the ratio of 500:1 ie.; for every 01 shares held, 500 bonus equity shares has been issued.
FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our business is subject to various risks and uncertainties, including those discussed in the section titled "Risk Factors" on page 31 beginning of this Draft Red Herring Prospectus.
Our Companys future results of operations could be affected potentially by the following factors:
Regulatory Environment for the Labor Market in India
Labour and employment laws in India are enacted both by the Centre and the State. India thus has a very comprehensive set of legislations with reference to labour and employment. These laws and regulations include the CLRA Act, the ESI Act, the Payment of Wages Act, the Minimum Wages Act, the Payment of Bonus Act, the Employees Provident Fund and Miscellaneous Provisions Act, the Payment of Gratuity Act, the Equal Remuneration Act, the Employees Compensation Act, the Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, the Maternity Benefit Act, the Inter State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, the Industrial Disputes Act, Industrial Employment (Standing Orders) Act, the Child and Adolescent Labour (Prohibition and Regulation) Act, the Apprentices Act, the relevant labour welfare fund legislations and the shops and commercial establishments legislations, which vary from state to state in India and are subject to change. These laws and regulations sometimes limit the size and growth of the HR solutions markets. Additionally, the Gol has introduced the (a) the Code on Wages, 2019 ("Wages Code"); (b) the Code on Social Security, 2020 ("Social Security Code"); (c) the Occupational Safety, Health and Working Conditions Code, 2020; and (d) the Industrial Relations Code, 2020 which consolidate, subsume and replace numerous existing central labour legislations. While the rules for implementation under these codes have not been notified, we are yet to determine the impact of all or some such laws on our business and operations which may restrict our ability to grow our business in the future
General economic factors and the regulatory environment
Demand for our services is significantly affected by the general level of economic activity and economic conditions in the various geographies of India and the sectors in which we operate. Deterioration in economic conditions in any of the key geographies or sectors that we operate in may lead to lower demand for our services. Any deterioration in global markets may also have a corresponding effect on our operations as some of our top clients are multinational corporations with operations in India. Any decision by our multi-national clients to reduce or exit their emerging markets operations may significantly impact our financial condition. In addition, the services we provide in India are subject to complex laws and regulations, which vary from state to state in India and are subject to change. Changes in laws or government regulations may result in the prohibition or restriction of certain types of employment services we are permitted to offer or the imposition of new or additional benefits, licensing or tax requirements that could reduce our revenues and earnings. Alternatively, labour law reforms can expand the market for our services and have a favourable effect on our results of operations.
Demand for staffing solutions especially is significantly affected by the general level of economic activity and economic conditions in the various regions and sectors which we serve. An economic downturn in a region or sector which we serve may adversely affect our operations, as the use of temporary employees may decrease or fewer permanent employees may be hired. Many of our clients are multi-national corporations, and we may be affected by a downturn in the global markets as well. When economic activity increases, temporary employees or contract workers are often engaged before full-time employees are hired. During periods of economic downturn, however, many companies reduce their use of temporary employees before laying off full-time employees. However,it is also possible that during periods of temporary economic downturn, companies choose to engage temporary workforce as opposed to permanent employees. We could experience more competitive pricing pressure during periods of economic downturn.
Retention of Talent
Our HR Services primarily depends on our ability to attract and retain qualified Deputees who possess the skills and experience necessary to meet the staffing requirements of our clients. As of March 31, 2025, 2024 and 2023, our Deputee count was 10,103, 8,605 and 8,882 respectively. We rely on Deputees to provide services to our clients. Our professional staffing and value staffing HR Services are dependent upon the performance of our Deputees. Accordingly, our results of operations depend on our ability to recruit deputees on time and in the right volumes to meet the demand of our clients. Further, as we serve a diverse client base in a wide range of industries, it is also critical for us to identify, attract and retain deputees with requisite skills, including sector-specific expertise, to satisfy the requirements of our clients. If any of our Deputees do not perform in accordance with the instructions or standards established by the customers or agreed by us, and our customers become dissatisfied with the performance of our Deputees, our reputation and ability to maintain or expand our client base may be adversely affected.
Maintaining our customer relationship
During Fiscals 2025, 2024 and 2023, we served more than 500 customers. Across our entire solutions offerings, we have a diverse customer base from a variety of industries including IT/ ITES and infrastructure and agriculture. Additionally, the average years of relation with our top 5 is 7.8 years . Furthermore, the growing wallet sizes of certain of our customers and/ or customer groups between Fiscals 2025 and 2023. Our comprehensive suite of technology-driven human resources solutions has helped us develop long standing relationships with clients and has brought us repeat business over the years. We believe that our shift towards technology-driven solutions has helped strengthen client relationships, improved client retention and created a strong pipeline of future business.
We believe our ability to offer diverse solutions that cater to the needs of our customers across business verticals has allowed us to deepen our relationships with our customers and enabled us to target a greater share of their requirements thereby leading to recurring business. The loss of all or a significant portion of sales to any of our top 10 customers, for any reason (including the loss of contracts or inability to negotiate favourable terms, failure to meet their quality specification, technological changes, a decline in market share of these customers in their respective industries or high growth segments, disputes with these customers, adverse changes in their financial condition, insolvency or bankruptcy of these customers, decrease in their sales, facility closures, any action undertaken by the government affecting business of these customers, or labour strikes affecting their production), could have an adverse impact on our business, financial condition, results of operations, and cash flows
HR Technology Platforms
Our in-house technology team has developed proprietary HR Tech Platforms, which include CoreX and Core Pay under HR Tech, and Ctrl-F and Core-PFT under Reg Tech. These platforms form the backbone of our service delivery, enabling us to improve efficiency, ensure regulatory compliance, provide integrated HR solutions, and scale our operations across diverse client requirements. Since these platforms are developed and controlled internally, we are able to directly manage their design, upgrades, and enhancements without dependency on third- party vendors. This independence allows us to respond quickly to changing client requirements and evolving industry practices. However, our reliance on technology also exposes us to certain risks. During the financial years 2025, 2024 and 2023, our server hosting expenses were Rs. 76.49 Lakhs, Rs. 75.67 Lakhs and Rs. 45.22 Lakhs, respectively. While continued investment in technology is critical, it also brings risks such as limited adoption or ineffective use of these platforms by clients or internal teams could reduce the intended benefits in terms of efficiency, scalability, and profitability. Any malfunction, downtime, or delay in platform performance could disrupt payroll processing, compliance reporting, or staffing operations, resulting in delayed disbursements, client dissatisfaction, or financial penalties. As these platforms handle sensitive client and employee data, cybersecurity threats, data breaches, or hacking attempts could lead to reputational damage, regulatory scrutiny, and financial liabilities. The HR and payroll technology landscape continues to evolve rapidly, with increasing adoption of AI, automation, and analytics; failure to update or innovate in line with industry developments may make our platforms less competitive and impacting client retention. Further, regular amendments to labor, payroll, and tax regulations require timely incorporation into our platforms; delays or errors in updates could expose us to compliance risks, penalties, or loss of client confidence.
The staffing solutions industry in India is highly fragmented. We faces competition from both organized and unorganized players, depending on the nature and location of the services provided. Many industries the Company operates in have low entry barriers, resulting in competition from both the unorganized segment and established players with substantial marketing and financial resources. Additionally, the Company faces competition from regional firms that may have a better understanding of local markets and advantages in regional and language- specific contexts. We competes based on factors such as its network of offices, client relationships, technological and operational excellence, and both organic and inorganic growth and integration. The Indian workplace is undergoing a significant transformation, with traditional office spaces giving way to a more distributed workforce model. This trend has fueled the rapid adoption of HR tech solutions, providing ground for several players to emerge offering various types of HR solutions. Our continued success depends on our ability to compete effectively by providing high-quality service levels and developing strong relationships and value-added services to our existing and future clients.
SIGNIFICANT ACCOUNTING POLICIES
For Significant accounting policies please refer Significant Accounting Policies, "Annexure VII" beginning under "Restated Financial Statements" on page 189 of this Draft Red Herring Prospectus.
The scale of our operations and vast distribution network along with our customers confidence have had a significant impact on our revenues and profitability. Set out below are a few key performance indicators
| Particulars | For the Period/Year ended on | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
| Revenue from Operations (in t Lakhs) (1) | 40,263 | 36,638 | 31,590 |
| Total Revenue (in t Lakhs) (2) | 40,439 | 36,844 | 31,675 |
| EBITDA (in t Lakhs) (3) | 422 | 582 | 402 |
| EBITDA Margin (%) (4) | 1.05% | 1.59% | 1.27% |
| PAT (in t Lakhs) (5) | 353 | 483 | 317 |
| PAT Margin (%) (6) | 0.87% | 1.31% | 1.00% |
| Net Worth (in t Lakhs) (7) | 2,291 | 1,938 | 1,455 |
| Capital Employed (in t Lakhs) (8) | 2,291 | 1,938 | 1,455 |
| Return on Equity (ROE) (%) (9) | 16.72% | 28.49% | 24.40% |
| Return on Capital Employed (RoCE) (%)
(10) |
19.85% | 35.50% | 26.83% |
| Net Working Capital (in t Lakhs) (11) | 1,294 | 763 | 932 |
| Net Working Capital Days (12) | 9 | 8 | 7 |
As certified by Surana Naveen Vikash & Co, Independent Chartered Accountant by their certificate dated September 05, 2025
Notes:
1
Revenue from operations means the revenue from operations as appearing in the restated statement of profit & loss for the relevant year/period2
Total Revenue means the revenue from operations plus other income as appearing in the restated statement of profit & loss for the relevant year/period3
EBITDA is calculated as profit before tax and exceptional items for the period / year, plus finance costs and depreciation and amortization expenses minus other Income4
EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations5
Profit after Tax (PAT) Means Profit for the period/year as appearing in the Restated financial Statements6
PAT Margin (%) is calculated as Profit for the year/period as a percentage of Total Revenue7
Net Worth has been defined under Regulation 2(l)(hh) of the SEBIICDR Regulations to mean 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 ofprofit and loss account, after deducting the aggregate value of the accumulated losses, preliminary expense, revaluation reserve, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include write-back of depreciation and amalgamation8
Capital Employed means Long Term Funds deployed in the business for the year/period9
Return on Equity (ROE) (%) is calculated Profit after tax/Average Shareholders Equity10
Return on Capital Employed (RoCE) (%) is calculated as Earnings before Interest and Taxes and exceptional items / Average Capital Employed11
Net Working Capital means Total Current Assets minus Total Current Liabilities for the year/period12
Net Working Capital Days is calculated by dividing Average Net Working Capital by Revenue from Operations multiplied by number of days in the year/periodOperational KPIs of Our Company:
| Particulars | For the Period/Year ended on | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
| Active Proprietary Platform Clients (%) (1) | 76.64% | 83.83% | 84.28% |
| Client Retention Rate (%) (2) | 87.50% | 87.57% | 89.52% |
| New Client Acquisition Rate (%)
(3) |
17.39% | 25.09% | 31.08% |
| Revenue per Employee (In INR)
(4) |
4,23,239 | 4,07,825 | 3,55,602 |
| EBITDA per Employee (In INR)
(5) |
4,522 | 6,478 | 4,438 |
| Cost per Client acquisition (In INR) (6) | 96,160 | 1,16,927 | 96,411 |
| Trade Receivable turnover ratio (In times) (7) | 19.27 | 20.67 | 20.78 |
Notes
Active Proprietary Platform Clients means clients using Proprietary Platforms divided by the total number of clients for the period multiplied by 100.
(2)
Client Retention Rate means clients retained in the financial year divided by the clients at the beginning of the financial year multiplied by 100.3
New Client Acquisition Rate means new clients added in the financial year divided by the clients at the beginning of the financial year multiplied by 100.(4)
Revenue per Employee means revenue from operations in the financial year divided by the average number of employees.5
EBITDA per Employee means EBITDA in the financial year divided by the average number of employees. Cost per client acquisition means total cost of sales and marketing and business development divided by the new number of clients acquired in the financial year.Trade Receivable turnover ratio means revenue from operations for the financial year divided by the average receivables.
DETAILS OF THE REVENUE RECOGNITION METHOD ADOPTED BY THE ISSUER AND ITS BASIC PARAMETERS.
Revenue is recognized to the extent probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Income from compliance business is recognised in accordance with the Service Agreement. Revenue from staffing services is recognised at the gross value of the consideration receivable as per the substance of the agreement on the basis of rendering of the services.
COMPONENTS OF INCOME AND EXPENDITURE
Total Revenue
Our total revenue is divided into revenue from operations and other income.
Revenue from operations consists of Rendering of services, Reimbursement and Professional Fees where Rendering of services are divided into Compliance and Staffing Services.
Other income consists of Advance received from customers written back, Interest on fixed deposits, Interest on income tax refund, Interest Received on ICD, Unpaid expenses written back, Discount received and Gain/(Loss) on Sale of property, plant and equipment.
Total Expenses
Our total expenses comprise of Employee benefits expenses, Finance costs, Depreciation and amortisation expense and Other expenses.
Employee benefits expenses
Employee benefit expenses comprise of Salaries, bonus and allowances, Contribution to PF, ESIC & other funds, Leave encashment, Gratuity, Gratuity provision under managed services and Staff welfare.
Finance Costs
Finance costs includes Interest on OD against FD and Interest on late payment of statutory dues.
Depreciation and Amortization Expenses
Depreciation and amortization expenses primarily includes Depreciation on property, plant & equipment and Amortization of intangible assets.
Other Expenses
Other expenses include Client reimbursable expense, Expenses related to reimbursement, Professional fees, Payment to auditors, Rent, Insurance, Brokerage, Travelling expenses, Bad debts written-off, Server Charges, Hire charges, Electricity expenses, Printing & stationery, Telephone expenses, Repairs & maintenance, Office expenses, Corporate social responsibility expenses, Courier Expenses, Bank charges, Statutory dues paid, Miscellaneous expenses and Exchange loss on Foreign Currency.
RESULTS OF OPERATIONS
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the financial years ended on 2025, 2024 and 2023:
| Particulars | Fiscal 2025 (Rs.) | % of Total Income | Fiscal 2024 (Rs.) | % of Total Income | ALIGN=CENTER>Fiscal 2023 (Rs.) | % of Total Income |
Revenue |
||||||
| Revenue from Operations | 40,262.74 | 99.56% | 36,638.02 | 99.44% | 31,589.90 | 99.73% |
| Other Income | 176.08 | 0.44% | 206.28 | 0.56% | 84.98 | 0.27% |
Total Income |
40,438.82 | 100.00% | 36,844.30 | 100.00% | 31,674.88 | 100.00% |
Expenses |
||||||
| Cost of Goods Sold | - | - | - | |||
| Purchases of Stock in Trade | - | - | - | |||
| Changes in inventories of finished goods | - | - | - | |||
| Employee Benefit expenses | 26,841.13 | 66.37% | 24,224.01 | 65.75% | 22,622.88 | 71.42% |
| Financial Costs | 3.58 | 0.01% | 4.36 | 0.01% | 3.51 | 0.01% |
| Depreciation and amortisation expense | 178.64 | 0.44% | 186.09 | 0.51% | 137.90 | 0.44% |
| Other expenses | 12999.40 | 32.15% | 11832.01 | 32.11% | 8565.26 | 27.04% |
Total expenses |
40,022.76 | 98.97% | 36,246.47 | 98.38% | 31,329.56 | 98.91 |
Profit before tax |
416.06 | 1.03% | 597.83 | 1.62% | 345.32 | 1.09% |
Tax expense |
||||||
| Current tax | 18.95 | 0.05% | 95.10 | 0.26% | 23.06 | 0.07% |
| Deferred tax (credit)/charge | 43.66 | 0.11% | 19.50 | 0.05% | 5.02 | 0.02% |
| Earlier Year Taxes | - | - | - | |||
Profit for the period / year |
353.45 | 0.87% | 483.23 | 1.31% | 317.24 | 1.00% |
COMPARISON OF FINANCIAL YEAR ENDED 2025 TO FINANCIAL YEAR ENDED 2024
Components of Balance sheet
Trade receivables;
Trade receivables have increased by 22.57%, this is due to Due to increase in Labour Compliance Clients having a payment terms of 30-90 days.
Trade Payables:
Trade payables have decreased by 95.84%, this is mainly due to restated adjustments.
Loans and Advances:
Long term Loans and Advances have increased by 21.91%, this increase is due to his pertains to TDS deducted by clients increase in on account of increase in revenue.
Short term Loans and Advances have increased by 190.21%, this increase is due to advance to channel partners client activity.
Income
Total Income:
Our total income was increased by 9.76 % from Rs. 36,844.30 Lakhs in FY 2024 to Rs. 40,438.82 Lakhs in FY 2025 due to the factors described below:
Revenue from Operations:
Our Revenue from Operations was increased by 9.89 % in the year FY 2025. The amount increased from Rs. 36,638.02 Lakhs in FY 2024 to Rs. 40,262.74 Lakhs in FY 2025. This was because of increase in number of customers served in FY 25 from FY 24 by 101 customers and higher ticket size of mandates, more spread of market share and new clients contributed to increased revenue.
Other Income
Other income decreased by 14.64 % from Rs. 206.28 Lakhs in FY 2024 to Rs. 176.08 Lakhs in FY 2025 because there was decrease in miscellaneous income in FY 25.
Expenditure
Total Expenses:
Our total expenses increased by 10.42 % from Rs. 36,246.47 Lakhs in Fiscal 2024 to Rs. 40,022.76 Lakhs in Fiscal 2025 due to the factors described below:
Employee benefit expenses
The Employee Benefit Expenses increased by 10.80% from Rs. 24,224.01 Lakhs in FY 2024 to Rs. 26,841.13 Lakhs in FY2025. This increase was mainly due to increase in employees from 8715 employees in FY 24 to 10290 employees in FY 25.
Financial Costs
Our Financial Costs decreased by 17.71% from Rs. 4.36 Lakhs in FY 2024 to Rs. 3.58 Lakhs in FY 2025. Depreciation and amortisation expense
The Depreciation and Amortization expenses was decreased by 4.00% from Rs. 186.09 Lakhs in FY 2024 to Rs. 178.64 Lakhs in FY 2025. This was because This was because this is due to yearly depreciation on the existing assets and there was addition in the next at the end of the year.
Other expenses
Other expenses increased by 9.87% from Rs. 11,832.01 Lakhs in FY 2024 to Rs. 12,999.40 Lakhs in FY 2025. This was on account of due to increase in aggregator income due which corresponding expenses also increased and increase in channel partner payments.
Profit before Tax
Our profit before tax decreased by 30.40 % from Rs.597.83 for the FY 2024 to Rs. 416.06 Lakhs for the FY 2025. Tax Expenses
Our total tax expense decreased by 45.37% from Rs. 114.60 Lakhs in FY 2024 to Rs. 62.61 Lakhs in the FY 2025. Profit after Tax
After accounting for taxes at applicable rates, our Profit after Tax decreased by 26.86% from Rs. 483.23 Lakhs in FY 2024 to Rs. 353.45 Lakhs in FY 2025. This decline is primarily attributable to a significant increase in employee benefit expenses by 10.80%. As part of our strategic growth initiatives, we have been actively expanding our workforce, particularly by onboarding senior-level personnel across key functions to strengthen our leadership and operational capabilities. Additionally, we incurred higher costs associated with the establishment and operationalization of new branch offices in multiple states. These investments are aimed at supporting our longterm growth objectives, enhancing regional presence, and ensuring a seamless transition as we scale operations across diverse geographies.
COMPARISON OF FINANCIAL YEAR ENDED 2024 TO FINANCIAL YEAR ENDED 2023 Components of Balance Sheet
Trade receivables
Trade receivables have increased by 12.54%, this is due to increase in Labour Compliance Clients having a payment terms of 30-90 days
Trade Payables:
Trade payables have increased 11.40%, this is mainly due to restated adjustments.
Loans and Advances:
Long term Loans and Advances have increased by 29.35%, this pertains to TDS deducted by clients increase in on account of increase in revenue.
Short term Loans and Advances have Decreased by 16.93%, this increase is due to majorly advances against the invoice raised by our channel partner.
Income
Total Income:
Our total income was increased by 16.32% from Rs. 31,674.88 Lakhs in Fiscal 2023 to Rs. 36,844.30 Lakhs in Fiscal 2024 due to the factors described below:
Revenue from Operations:
Our income from Revenue from Operations was increased by 15.98% from Rs. 31,589.90 Lakhs in Fiscal 2023 to Rs. 36,638.02 Lakhs in Fiscal 2024. This was increased due to increase in number of customers served in FY 24 from FY 23 by 31 customers and higher ticket size of mandates, more spread of market share and new clients contributed to increased revenue.
Other Income
Other income increased by 142.74 % from Rs. 84.98 Lakhs in Fiscal 2023 to Rs. 206.28 Lakhs in Fiscal 2024 because there was increase in miscellaneous income.
Expenditure
Total Expenses:
Our total expenses increased by 15.69 % from Rs. 31,329.56 Lakhs in Fiscal 2023 to Rs. 36,246.47 Lakhs in Fiscal 2024 due to the factors described below:
Employee benefit expenses
The Employee Benefit Expenses increased by 7.08 % from Rs. 22,622.88 Lakhs in FY 2023 to Rs. 24,224.01 Lakhs in FY2024. This increase was mainly due to increase in number of employees during the year.
Financial Costs
Our Financial Costs increased by 23.96 % from Rs. 3.51 Lakhs in FY 2023 to Rs. 4.36 Lakhs in FY 2024. This was mainly because there was increase in interest on overdraft facility.
Depreciation and amortization expense
The Depreciation and Amortization expenses was increased by 34.95 % from Rs. 137.90 Lakhs in FY 2023 to Rs. 186.09 Lakhs in FY 2024. This was because corresponding increase in fixed assets during the year.
Other expenses
Other expenses increased by 38.14% from Rs. 8565.26 Lakhs in FY 2023 to Rs. 11832.01 Lakhs in FY 2024. This was because of significant increase in professional fees, expenses related to reimbursement and rent.
Profit before Tax
Our profit before tax increased by 73.12 % from 345.32 Lakhs for the FY 2023 to Rs. 597.83 Lakhs for the FY 2024.
Tax Expenses
Our total tax expense increased by 308.18% from Rs. 28.08 Lakhs in FY 2023 to Rs. 114.60 Lakhs in the FY 2024. Profit after Tax
After accounting for taxes at applicable rates, our Profit after Tax increased by 52.32% from Rs. 317.24 Lakhs in FY 2023 to Rs. 483.23 in FY 2024. This was due to corresponding increase in revenue from operations by 15.98% and total income by 16.32% offset by increase in employee benefit expense by 7.08% and increase in other expense by 38.14%.
CASH FLOWS
The table below is our cash flows for the financial years ended on 2025, 2024 and 2023:
| Particulars | For the financial year ended on March 31, | ||
| 2025 | 2024 | 2023 | |
| Net cash (used)/from operating activities | 560.77 | 285.72 | 841.70 |
| Net cash (used)/from investing activities | (1,066.73) | (37.48) | (1,069.74) |
| Net cash (used)/from financing activities | (1.83) | (4.36) | (3.51) |
Cash Flows from Operating Activities
For the year ended on March 31, 2025
Our net cash generated in operating activities was Rs. 560.77 Lakhs for the Fiscal 2025. Our net profit before tax of Rs. 416.06 Lakhs for the Fiscal 2025 which was primarily adjusted against Depreciation and amortization of Rs. 178.64 Lakhs, Interest paid of Rs. 1.83 Lakhs, Gain on sale of assets of Rs.2.47 Lakhs, Gain on sale of Mutual Fund Rs. 23.63Lakhs and Interest Income of ^118.72 Lakhs. Operating profit before working capital changes was Rs. 451.71 Lakhs for the Fiscal 2025.
The adjustments to operating profit before working capital changes included adjustments for (i) Decrease in trade payables of Rs.504.47 Lakhs, (ii) Increase in other current liabilities of Rs. 901.23 Lakhs, (iii) Increase in short term provisions of Rs. 0.09 Lakhs, (iv) Decrease in long term provisions Rs. 89.27 Lakhs (v) Increase in trade receivables of Rs. 423.75 Lakhs (vi) Increase in short term loans & advances of Rs. 136.32 Lakhs (vii) Decrease in other noncurrent assets of Rs. 441.80 Lakhs (viii) Increase in in other current assets Rs. 4.54 Lakhs . Tax paid for the Fiscal 2025 amount to Rs. 75.70 Lakhs
For the year ended on March 31, 2024
Our net cash generated in operating activities was Rs. 285.72 Lakhs for the Fiscal 2024. Our net profit before of Rs. 597.83 Lakhs for the Fiscal 2024 which was primarily adjusted against Depreciation and amortization of Rs. 186.09 Lakhs, Interest Paid of Rs. 4.36 Lakhs and Interest Income of Rs. 106.97 Lakhs. Operating profit before working capital changes was Rs. 681.30 Lakhs for the Fiscal 2024.
The adjustments to operating profit before working capital changes included adjustments for (i) Increase in trade payables of Rs. 53.88 Lakhs, (ii) Increase in other current liabilities of Rs. 414.45 Lakhs, (iii) Decrease in short term provisions of Rs. 11.58 Lakhs, (iv) Decrease in long term provisions Rs. 11.63 Lakhs (v) Increase in trade receivables of Rs. 209.14 Lakhs (vi) Decrease in short term loans & advances of Rs. 14.61 Lakhs (vii) Increase in other noncurrent assets of Rs. 475.83Lakhs (vii) Increase in other current assets Rs. 16.48 Lakhs . Tax paid for the Fiscal 2024 amount to Rs. 153.86 Lakhs
For the year ended on March 31, 2023
Our net cash generated in operating activities was Rs. 841.70 Lakhs for the Fiscal 2023. Our net profit before tax of Rs.345.32 Lakhs for the Fiscal 2023 which was primarily adjusted against Depreciation and amortization of Rs.137.90 Lakhs, Interest Paid of Rs. 3.51 Lakhs and Interest Income of Rs. 53.60 Lakhs. Operating profit before working capital changes was Rs. 433.13 Lakhs for the Fiscal 2023.
The adjustments to operating profit before working capital changes included adjustments for (i) Increase in trade payables of Rs. 420.13 Lakhs, (ii) Decrease in other current liabilities of Rs. 33.82 Lakhs, (iii) Decrease in short term provisions of Rs. 14.51Lakhs (iv) Decrease in long term provisions Rs. 9.38 Lakhs (v) Increase in trade receivables of Rs. 296.19 Lakhs (vi) Increase in short term loans & advances of Rs. 44.20Lakhs (vii) Decrease in other non - current assets of Rs. 321.10 Lakhs (vii) Increase in other current assets Rs. 0.50 Lakhs . Tax paid for the Fiscal 2023 amount to Rs. 65.94 Lakhs
Cash Flows from Investing Activities
For the year ended on March 31, 2025
Net cash flow used in investing activities for the Fiscal 2025 was Rs. 1,066.73 Lakhs. This was primarily on account of purchase of Tangible / Intangible Assets of Rs. 344.23 Lakhs and Placement of fixed deposit Rs. 920.96 Lakhs. This was partially offset by Sale of tangible assets Rs. 6.10 Lakhs, Sale of investments Rs. 73.63 Lakhs and Interest income of Rs. 118.72 Lakhs.
For the year ended on March 31, 2024
Net cash flow used in investing activities for the Fiscal 2024 was Rs. 37.48 Lakhs. This was primarily on account of purchase of Tangible Assets / Intangible Assets Rs. 311.78 Lakhs. This was partially offset by Placement of fixed deposit Rs. 167.33 Lakhs and Interest income of Rs. 106.97 Lakhs.
For the year ended on March 31, 2023
Net cash flow used in investing activities for the Fiscal 2023 was Rs. 1,069.74 Lakhs. This was primarily on account of purchase of Tangible Assets / Intangible Assets Rs. 284.97 Lakhs and Placement of fixed deposit Rs. 838.37 Lakhs. This was partially offset by Interest income of Rs. 53.60 Lakhs
Cash Flows from Financing Activities
For the year ended March 31, 2025
Net cash flow used in financing activities for the Fiscal 2025 was Rs. 1.83 Lakhs. This was primarily on account of Loan repaid to Director of Rs. 55.00 Lakhs, Repayment of borrowing of Rs.7,022.61 Lakhs and Interest paid of Rs. 1.83 Lakhs. This was partially offset by Loan taken from Director of Rs. 55.00 Lakhs and Proceeds from borrowings of Rs. 7,022.61 Lakhs.
For the year ended March 31, 2024
Net cash flow used in financing activities for the Fiscal 2024 was Rs. 4.36 Lakhs. This was primarily on account of Interest paid of Rs.4.36 Lakhs.
For the year ended March 31, 2023
Net cash flow used in financing activities for the Fiscal 2023 was Rs. 3.51 Lakhs. This was primarily on account of Interest paid of Rs. 3.51 Lakhs.
RELATED PARTY TRANSACTIONS
Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Financial Statements" beginning on page 189 of this Draft Red Herring Prospectus.
OFF-BALANCE SHEET ITEMS
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN THE RESTATED FINANCIAL STATEMENTS
The Restated Financial Statements do not contain any qualifications which have not been given effect in the restated financial statements.
QUALITATIVE DISCLOSURE ABOUT MARKET 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. Our exposure to the risk of changes in market interest rates relates primarily to our longterm debt obligations with floating interest rates. We manage our interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. For further information, see "Financial Indebtedness" on page 237.
Effect of Inflation
We are affected by inflation as it has an impact on the salary, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.
Credit Risk
Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from our receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. We assess the credit quality of the counterparties, taking into account their financial position, past experience and other factors. We limit exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. We review the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.
Our Company conducts an extensive financial and credibility check on the landlords before taking any property on lease and our Company has no instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period of rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the nonrealization risk. Our Company foresees no credit risks on deposits with regulatory authorities
Liquidity risk
Liquidity risk is the risk that we will not be able to meet our financial obligations as they become due. We manage liquidity risk by ensuring, that we will always have sufficient liquidity to meet our liabilities when due.
OTHER MATTERS
Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of statutory dues or repayment of debentures or repayment of deposits or repayment of loans from any bank or financial institution
Except as disclosed in chapter titled "Restated Financial Statements" beginning on page 189 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.
Material Frauds
There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.
Unusual or infrequent events or transactions
Except as described in this Draft Red Herring Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered "unusual" or "infrequent".
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 that materially affect or are likely to affect our income from continuing operations identified above in ‘Managements Discussion and Analysis of Financial Condition and Results of Operations -Significant factors affecting our financial condition and results of operations and the uncertainties described in ‘Risk Factors on pages 240 and 31 respectively.
Known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations
Other than as described in the section titled "Risk Factors" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations", beginning on page 31 and 240 of this Draft Red Herring Prospectus respectively to our knowledge 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.
Future relationship between Costs and Income
Other than as described in the section titled "Risk Factors" beginning on page 31 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.
The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new products or services or increased prices
Changes in revenue in the last three financial years are as explained in the part "Financial Year 2025-24 compared with financial year 2024-23 and Financial Year 2023-24 compared with Financial Year 2022-23" above.
Total turnover of industry segments
Our Company is engaged into comprehensive Human Resource service provider. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 112 of this Draft Red Herring Prospectus.
Significant dependence on a single or few Suppliers or Customers
Significant proportion of our total revenue have historically been derived from a limited number of Customers. The % of Contribution of our Customers vis a vis the revenue from operations for the financial year ended March 31, 2025, 2024 and 2023 are as follows:
| Period | Revenue from Largest Customer (Rs. in Lakhs) | % Contribution of largest customer to revenue from operations | Revenue from Top 5 Customers (Rs. in Lakhs) | % Contribution of top 5 to revenue from operations |
| Fiscal 2025 | 21,766.93 | 54.06% | 35,445.43 | 88.03% |
| Fiscal 2024 | 21,701.15 | 59.23% | 33,030.85 | 90.15% |
| Fiscal 2023 | 18,084.66 | 57.25% | 28,941.53 | 91.62% |
Status of any publicly announced new products or business segments
Please refer to the chapter titled "Our Business" beginning on page 128 of this Draft Red Herring Prospectus for new products or business segments.
The extent to which the business is seasonal
Our business is not seasonal in nature.
Competitive Conditions
Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business" beginning on pages 112 and 128 respectively of this Draft Red Herring Prospectus.
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