Digilogic Systems Ltd Management Discussions

BUSINESS OVERVIEW:

Digilogic Systems Limited has positioned itself as niche player serving as one stop solution for critical testing, measurement and simulation solutions, its software and maintenance services (Source: KEN Research report). We are a technology-led company engaged in the design, development, integration, manufacturing, assembly, supply and support of test systems, simulators, application software, and signal processing solutions. Our offerings cater primarily to the defence and aerospace industry, with a limited portion of our business being generated from clients, in electronics, semiconductor and automation industries. We operate a system integration facility in Hyderabad, supported by a dedicated testing facility and marketing office in Bengaluru, and our operations are certified to AS9100D and ISO 9001:2015 standards.

We are one of the companies in critical defence and space sector that are active across the value chain - from providing core technological solutions and hardware platforms to delivering software development, testing, and maintenance support services. Our comprehensive capabilities across avionics systems, radar testing, automated test equipment, and simulation testing, as reflected in the heat map, enable us to serve critical defence and space sectors like the Defence, Aerospace and DRDO/ISRO efficiently. (Source: KEN Research report).

KEY PERFORMANCE INDICATORS

(Z in lakhs, except otherwise specified)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Y-o-Y growth in Revenue from Operations %	39.76%	(7.87%)	39.39%
Revenue from Operations	7,205.98	5,155.93	5,596.23
EBITDA	1,303.83	551.63	528.53
EBITDA %	18.09%	10.70%	9.44%
PAT	776.49	245.32	218.17
PAT %	10.78%	4.76%	3.90%
ROE %	33.24%	19.92%	21.82%
ROCE %	33.32%	19.40%	20.72%
Debt to Equity (in times)	0.40	0.60	0.98
Return on Networth %	33.24%	19.92%	21.82%
Interest Coverage Ratio (in times)	11.63	3.86	3.94
Net Working Capital (Days)	111	34	26

KPI - Formulas

KPI	Formula
Y-o-Y growth in Revenue from Operations	(Revenue from operations of relevant year - Revenue from operations of preceding year) / Revenue from operations of preceding year * 100
Revenue from operations	This amount is Revenue from Operations as appearing in the Restated Financial Statements
EBITDA	Profit Before Tax + Interest Expense on borrowings + Depreciation & Amortisation cost - Other Income
EBITDA %	EBITDA / Revenue from Operations
PAT	Profit for the period/year as appearing in the Restated Financial Statements
PAT %	PAT / Revenue from Operations
ROE %	Net Profit After Tax / Average Shareholders Funds
ROCE %	Earnings Before Interest and Taxes / Average Capital Employed where Capital Employed = Total Shareholders funds + Long Term Borrowings + Short Term Borrowings.
Debt to Equity	Total Debt / Shareholders Funds where Total Debt = Long Term borrowings + Short Term borrowings
Return on Networth %	Net Profit After Tax / Average Networth where Networth = Paid-up share capital + Securities premium + Surplus in Profit & Loss
Interest Coverage Ratio (times)	Earnings Before Interest and Taxes / Interest Expense on Borrowings, Where Earnings Before Interest and Taxes = Profit before tax + Interest expense on borrowings (excluding interest capitalised) - Other income
Net Working Capital (Days)	(Current Assets - Current Liabilities)*365/ Revenue from operations

KPI Description

KPI	Description
Y-o-Y growth in Revenue from Operations	Year-on-Year (Y-o-Y) growth in Revenue from Operations measures the percentage increase or decrease in revenue during a financial year compared to the previous financial year.
Revenue from operations	Revenue from Operations is used by Management to track the performance and growth of the company.
EBITDA	EBITDA gives a comprehensive view of the health of the company as it considers all sources of Operating Income. Its the aggregate of the restated profit before tax, depreciation and amortisation expense and finance costs, less other income, for the relevant year
EBITDA %	EBITDA Margin is a financial ratio that measures the profitability of the company as a percentage of its Revenue from Operations
PAT	Profit after Tax gives the overall profitability of business.
PAT %	PAT Margin is a ratio that measures the profitability of the company as a percentage of its Total Revenue
ROE %	Return on Equity is an indicator of our efficiency as it measures our profitability. It shows how efficiently we generate profits from our shareholders.
ROCE %	Return on capital employed provides how efficiently the Company generates earnings from the capital employed in the business
Debt to Equity (in times)	Debt to Equity is a financial leverage ratio that indicates the proportion of a companys net debt relative to its shareholders equity.
Return on Networth %	Return on Net Worth (RoNW) represents the percentage of Net profit after deducting minority interest on the Average of Net Worth. This ratio measures the return on Shareholders funds
Interest Coverage Ratio	The Interest Coverage Ratio measures a companys ability to pay its interest obligations from its operating earnings.
Net Working Capital (Days)	Net Working Capital (Days) indicates how many days of operating revenue are tied up in working capital. It reflects the efficiency of managing current assets and liabilities.

* As approved by resolution of the Audit Committee of our Board dated 21.08.2025 and as certified by M/s. B. Srinivasa Rao & Co., the Statutory Auditor of our Company pursuant to their certificate dated 21.08.2025.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For detailed Statement of Significant Accounting Policies, please refer to ‘Annexure - D to the Restated Financial Statements beginning on page 243

RESULT OF OUR OPERATION

(All amounts are in Rs lakhs unless stated otherwise)

Particulars	Fiscal 2025	% of total income	Fiscal 2024	% of total income	Fiscal 2023	% of total income
Revenue from Operations	7,205.98	99.82%	5,155.93	99.70%	5,596.23	99.73%
Other income	13.35	0.18%	15.37	0.30%	15.33	0.27%
Total Income (A)	7,219.33	100.00%	5,171.30	100.00%	5,611.56	100.00%
Expenses:
Cost of materials consumed	5,091.41	70.52%	3,007.35	58.15%	3,998.07	71.25%
Changes in inventories of finished goods, WIP and stock-in-trade	(569.71)	(7.89)%	537.08	10.39%	115.56	2.06%
Employee benefits expenses	840.25	11.64%	608.60	11.77%	534.05	9.52%
Finance costs	143.41	1.99%	130.94	2.53%	124.58	2.22%
Depreciation and amortization expenses	170.59	2.36%	128.15	2.48%	149.99	2.67%
Other expenses	494.24	6.85%	429.98	8.31%	391.51	6.98%
Total Expenses (B)	6,170.19	85.47%	4,842.10	93.63%	5,313.76	94.69%
Profit before exceptional items, extraordinary items and tax (C=A-B)	1,049.13	14.53%	329.20	6.37%	297.80	5.31%
Exceptional Items (D)	-	0.00%	-	0.00%	-	0.00%
Profit before tax (E=C-D)	1,049.13	14.53%	329.20	6.37%	297.80	5.31%
Tax Expenses
- Current Tax	277.82	3.85%	87.68	1.70%	85.33	1.52%
- Deferred Tax	(11.81)	(0.16)%	(3.80)	(0.07)%	(9.72)	(0.17)%
- Prior Period Taxes	6.63	0.09%	-	0.00%	4.01	0.07%
Total Tax Expense (F)	272.64	3.78%	83.87	1.62%	79.63	1.42%
Profit after tax (G=E-F)	776.49	10.76%	245.32	4.74%	218.17	3.89%

REVIEW OF RESTATED FINANCIAL STATEMENT Fiscal 2025 compared with Fiscal 2024 Revenue from operations:

Revenue from operations increased by 39.76% from Rs5,155.93 Lakhs in Fiscal 2024 to Rs7,205.98 Lakhs in Fiscal 2025, due to increase in orders and timely execution of orders planned during Fiscal 2025. There is also an impact on account of spillover from Fiscal 2024 to Fiscal 2025 due to delay in receiving the supply orders which were originally planned for Fiscal 2024.

Other Income:

Other income had decreased by 13.17%, from Rs15.37 lakhs in Fiscal 2024 to Rs13.35 lakhs in Fiscal 2025, primarily o n account of absence of a one-time income of Rs3.10 lakhs from "Profit on sale of assets" recorded in Fiscal 2024 and decrease of "Profit on Exchange Rates fluctuation".

Cost of Material Consumed:

Cost of material consumed increased by 69.30%, from Rs3,007.35 lakhs in Fiscal 2024 to Rs5,091.41 lakhs in Fiscal 2025, primarily due to a change in the order mix and an increase in revenue from operations.

Changes in inventories of work-in-progress andfinished goods

Change in inventories of work-in-progress and finished goods moved from Rs537.08 lakhs in Fiscal 2024 to a Rs (569.71) lakhs in Fiscal 2025, primarily due to an increase in closing stock at the end of Fiscal 2025.

Employee Benefit Expenses:

Employee benefit expenses increased by 38.06% from Rs608.60 lakhs in Fiscal 2024 to Rs840.25 lakhs in Fiscal 2025, primarily due to salary revisions and the addition of new employees. The number of employees increased from 85 in Fiscal 2024 to 104 in Fiscal 2025.

Finance Cost:

Total borrowings costs increased by 9.52%, from Rs130.94 lakhs in Fiscal 2024 to Rs143.41 lakhs in Fiscal 2025, primarily due to an increase in the quantum of bank guarantees during Fiscal 2025, partially offset by the full repayment of certain loans in the same period.

Depreciation and Amortization Expenses:

Depreciation and Amortization Expenses increased by 33.11%, from Rs128.15 lakhs in Fiscal 2024 to Rs170.59 lakhs in Fiscal 2025, primarily due to addition of Rs220.76 lakhs to the gross block of Property, Plant & Equipment and Intangibles assets during the year.

Other Expenses:

Other expenses primarily comprise travelling and conveyance expenses, professional and consultancy charges, office maintenance, selling and distribution expenses, repairs and maintenance, tender fees, rent, liquidated damages, miscellaneous expenses, and others. Other expenses increased by 14.95%, from Rs429.98 lakhs in Fiscal 2024 to Rs494.24 lakhs in Fiscal 2025, primarily due to increase in miscellaneous expenses on account of loss due to cyber-attack theft of Rs45.17 lakhs and an increase of Rs41.42 lakhs in travelling expenses on account of manpower deployment for training and handover.

Tax Expenses:

Tax expenses increased by 225.07% from Rs83.87 lakhs in Fiscal 2024 to Rs272.64 lakhs in Fiscal 2025, primarily due to an increase in taxable profits.

Profit after tax:

After accounting for taxes, the net profit increased by 216.52% from Rs245.32 lakhs in Fiscal 2024 to Rs776.49 lakhs in Fiscal 2025, primarily due to higher revenue, as detailed above, and effective expense management resulting in improved profitability.

Fiscal 2024 compared with Fiscal 2023 Revenue from operations:

Revenue from operations decreased by 7.87% from Rs5,596.23 Lakhs in Fiscal 2023 to Rs5,155.93 Lakhs in Fiscal 2024, primarily due to delay in receipt of supply orders which were planned for Fiscal 2024, resulting in a spillover to Fiscal 2025 from Fiscal 2024.

Other Income:

Other income had increased by 0.30%, from Rs15.33 lakhs in Fiscal 2023 to Rs15.37 lakhs in Fiscal 2024, primarily on account of addition of a one-time income of Rs3.10 lakhs from "Profit on sale of assets" recorded in Fiscal 2024 and decrease of "Profit on Exchange Rates fluctuation".

Cost of Material Consumed:

Cost of material consumed had decreased by 24.78%, from Rs3,998.07 lakhs in Fiscal 2023 to Rs3,007.35 lakhs in Fiscal 2024 on account of dip in revenue recognised.

Changes in inventories of work-in-progress and finished goods

Change in inventories of work in progress and finished goods moved from ^115.56 lakhs in Fiscal 2023 to Rs537.08 lakhs in Fiscal 2024, primarily due to a decrease in closing stock at the end of Fiscal 2024.

Employee Benefit Expenses:

Employee benefit expenses increased by 13.96% from Rs534.05 lakhs in Fiscal 2023 to Rs608.60 lakhs in Fiscal 2024, primarily due to salary revision and the addition of new employees. The number of employees increased from 70 in Fiscal 2023 to 85 in Fiscal 2024.

Other Expenses:

Other expenses primarily comprise travelling & conveyance expenses, professional and consultancy charges, Office maintenance, selling & distribution expenses, repair & maintenance, tender fees, rent, Liquidated Damages, Miscellaneous expenses, and others. Other expenses have increased by 9.82% from t391.51 lakhs in Fiscal 2023 to t429.98 lakhs in Fiscal 2024, primarily due to an increase of t57.36 lakhs in professional and consultancy charges, a decrease of t58.26 lakhs in sales commission, and an increase of t15.61 lakhs in advertisement expenses.

Finance Cost:

Total finance costs increased by 5.11%, from t124.58 lakhs in Fiscal 2023 to t130.94 lakhs in Fiscal 2024, primarily due to increase in interest costs on account of working capital requirements to support business operations.

Depreciation and Amortization Expenses:

Depreciation and Amortization Expenses decreased by 14.56%, from t149.99 lakhs in Fiscal 2023 to t128.15 lakhs in Fiscal 2024, primarily due to a decrease in net block of Property, Plant & Equipment and Intangibles assets.

Tax Expenses:

Tax expenses increased by 5.33% from t79.63 lakhs in Fiscal 2023 to t83.87 lakhs in Fiscal 2024, primarily due to an increase in taxable profits.

Profit after tax:

After accounting for taxes, the Net Profit increased by 12.45% from ^218.17 lakhs in Fiscal 2023 to t245.32 lakhs in Fiscal 2024, primarily due to effective expense control resulting in improved profitability.

Financial Condition:

Cash flows

The table below sets forth our net cash flows with respect to operating activities, investing activities and financing activities for the periods indicated:

(t in Lakh)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Net cash flow from / (used in) operating activities	(1,051.46)	549.45	(665.32)
Net cash flow from / (used in) investing activities	(512.59)	(137.31)	(62.68)
Net cash flow from / (used in) financing activities	1,562.99	(410.66)	407.82
Cash and Cash equivalents at end of the year	0.95	2.00	0.52

Cash flows from operating activities:

For fiscal year ending March 31, 2025, net cash used in operating activities was t 1,051.46 lakhs. The main reason being that the operating profit before working capital changes of t 1,350.35 lakhs was largely offset by increase in trade receivables amounting to t 2,405.84 lakhs

For fiscal year ending March 31, 2024, net cash flow from operating activities was t 549.45 lakhs This was mainly due to operating profit before working capital changes of t 576.49 lakhs partially offset by net decrease in working capital of t 35.65 lakhs

For fiscal year ending March 31, 2023, net cash used in operating activities was at t 665.32 lakhs. The main reason being that the operating profit before working capital changes of t 564.95 lakhs was largely offset by increase in trade receivables amounting to t 1,059.70 lakhs.

Cash flow from Investment activities:

For fiscal year ending March 31, 2025,Net cash used in investing activities for Fiscal 2025 was Rs512.59 lakhs, primarily on account of:

(i) purchase of property, plant and equipment and intangible assets of Rs 220.76 lakhs;

(ii) capital advance paid of Rs 248.16 lakhs;

(iii) increase in term deposits with banks of Rs 82.96 lakhs; and

(iv) security deposits given of Rs 0.36 lakhs. These were partly offset by:

(v) sale proceeds of property, plant and equipment of Rs 26.91 lakhs; and

(vi) interest income received of Rs 12.75 lakhs.

For fiscal year ending March 31, 2024 Net cash used in investing activities for Fiscal 2024 was Rs 137.31 lakhs, primarily on account of:

(i) purchase of property, plant and equipment and intangible assets of Rs 91.08 lakhs;

(ii) capital advance paid of Rs 78.39 lakhs; and

(iii) security deposits given of Rs 2.00 lakhs. These were partly offset by:

(iv) sale proceeds of property, plant and equipment of Rs 6.39 lakhs;

(v) decrease in term deposits with banks of Rs 19.06 lakhs; and

(vi) interest income received of Rs 8.70 lakhs.

For fiscal year ending March 31, 2023, Net cash used in investing activities for Fiscal 2023 was Rs 62.68 lakhs, primarily on account of:

(i) purchase of property, plant and equipment of Rs 33.68 lakhs;

(ii) increase in term deposits with banks of Rs 33.49 lakhs; and

(iii) security deposits given of Rs 2.93 lakhs. These were partly offset by:

(iv) interest income received of Rs 7.42 lakhs.

Cash flow from Financing activities:

For fiscal year ending March 31, 2025, Net cash generated from financing activities for Fiscal 2025 was Rs 1,562.99 lakhs, primarily on account of

(i) proceeds from issue of equity shares (including securities premium) of Rs 1,186.21 lakhs;

(ii) proceeds from short-term borrowings of Rs 717.99 lakhs; and

(iii) proceeds from long-term borrowings of Rs 169.53 lakhs. These were partly offset by:

(iv) repayment of long-term borrowings of Rs (264.25) lakhs;

(v) repayment of short-term borrowings of Rs (100.00) lakhs; and

(vi) interest and other finance costs (including capitalised costs) of Rs (146.49) lakhs.

For fiscal year ending March 31, 2024, Net cash used in financing activities for Fiscal 2024 was Rs (410.66) lakhs, primarily on account of:

(i) repayment of long-term borrowings of Rs (453.30) lakhs;

(ii) repayment of short-term borrowings of Rs (50.00) lakhs; and

(iii) interest and other finance costs (including capitalised costs) of Rs (129.66) lakhs. These were partly offset by:

(iv) proceeds from long-term borrowings of Rs 172.30 lakhs

For fiscal year ending March 31, 2023, Net cash generated from financing activities for Fiscal 2023 was Rs 407.82 lakhs, primarily on account of:

(i) proceeds from short-term borrowings of Rs 697.16 lakhs; and

(ii) proceeds from long-term borrowings of Rs 80.00 lakhs. These were partly offset by:

(iii) repayment of long-term borrowings of Rs (147.17) lakhs;

(iv) repayment of short-term borrowings of Rs (100.00) lakhs; and

(v) interest and other finance costs including capitalised costs of Rs (122.17) lakhs.

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

Except as described in this Draft Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

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 in the section "Factors Affecting our Results of Operations and the uncertainties described in the section titled "Risk Factors" beginning on page 39 of this Draft Red Herring Prospectus. Except as disclosed in this Draft Red Herring Prospectus, we are not aware of any other factors that have materially affected or are likely to materially affect our 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 titled "Risk Factors" beginning on page 39 in this Draft 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, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Apart from the risks as disclosed under Section titled "Risk Factors beginning on page 39 in this Draft Red Herring Prospectus, there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

5) Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or increased sales prices.

Material increases in our revenue are primarily attributable to increased sales volumes, execution of large orders, and an expansion in our customer base. In certain cases, improvements in operational efficiency, better pricing strategies, and the introduction of new or upgraded solutions have also contributed to revenue growth.

6) Total turnover of each major industry segment in which the issuer company operated.

Our Company is engaged in the design, development, assembly, and servicing of advanced test systems, simulators, embedded software, and signal processing tools. Our offerings cater primarily to defence, aerospace, and industrial clients. We operate in a single primary segment. The relevant industry information, to the extent available, is included in the chapter titled "Industry Overview beginning on page 131 of this Draft Red Herring Prospectus.

7) Status of any publicly announced new products or business segment.

Except as otherwise disclosed in this Draft Red Herring Prospectus, particularly under the section " Our Business" beginning on page 172, our Company has not publicly announced any new products or business segments as of the date of this Draft Red Herring Prospectus.

8) The extent to which business is seasonal.

Our business is not subject to seasonality. However, the timing of order execution, particularly for defence sector contracts, may vary depending on government procurement cycles and project milestones.

9) Any significant dependence on a single or few suppliers or customers.

The percentage of contribution of our Companys customer vis-a-vis the total revenue from operations on restated basis respectively for the Fiscal year 2025, 2024 and 2023 is as follows:

Particulars	% contribution to revenue from operations
	Fiscal 2025	Fiscal 2024	Fiscal 2023
Top 1 Customer	31%	32%	29%
Top 3 Customers	55%	65%	71%
Top 5 Customers	72%	76%	85%
Top 10 Customers	88%	94%	95%

The percentage of contribution of our Companys supplier vis-a-vis the total purchases on restated basis respectively for the Fiscal year 2025, 2024 and 2023 is as follows:

Particulars	% contribution to Purchases
	Fiscal 2025	Fiscal 2024	Fiscal 2023
Top 1 Supplier	42%	47%	40%
Top 3 Suppliers	73%	64%	60%
Top 5 Suppliers	79%	68%	69%
Top 10 Suppliers	88%	74%	81%

10) Competitive conditions:

We operate in a competitive environment and face competition from both existing players and potential new entrants. The nature and intensity of competition may vary based on technological capabilities, quality standards, pricing, customer relationships, and past performance in project execution. Over the years, we have identified and developed certain key competitors, details of which are provided in the section titled "Our Business" beginning on page 172 of this Draft Red Herring Prospectus.

FINANCIAL INDEBTEDNESS

For information on our indebtedness, refer to section titled "Financial Indebtedness" beginning on page 287 of this Draft Red Herring Prospectus.

COMMITMENTS AND CONTINGENCIES

Except as stated below, our Company did not have any capital commitments or contingent liabilities for the fiscal year 2025, 2024 and 2023:

(Rs in Lakh)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Contingent Liabilities	-	-	-
Commitments	948.33	182.90	-

For further information on commitments and contingencies refer to section titled "Financial Information " beginning on page 243 of this Draft Red Herring Prospectus.

RELATED PARTY TRANSACTIONS

We enter into transactions with related parties in the ordinary course of our business. These transactions are conducted at arms length and in accordance with applicable laws and regulations. Typical related party transactions include, among others Remuneration and salaries paid to directors and key managerial personnel, Payment of professional and consultancy charges, Sales commissions, Reimbursement of expenses, Interest income or expense on loans, and Advances paid and recovered, and loans received and repaid. All related party transactions are reviewed and approved by our Board of Directors or Audit Committee, as applicable, to ensure compliance with applicable laws and ensure that such transactions are in the best interests of the Company. For further details on our related party transactions, please refer to the section titled "Related Party Transactions" on page 241 of this Draft Red Herring Prospectus.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements.

DETAILS OF MATERIAL DEVELOPMENTS AFTER THE DATE OF LAST BALANCE SHEET I.E. MARCH 31, 2025

1. The Company has converted from a private limited company to a public limited company pursuant to the special resolution passed by shareholders on 18^th June, 2025. A fresh Certificate of Incorporation reflecting the new name, Digilogic Systems Limited", was issued by the Registrar of Companies on 1^st July, 2025.

2. The Company has increased its Authorised share capital from Rs.600.00 lakhs to Rs.1,000.00 lakhs pursuant to the approval of shareholders vide resolution dated 18^th June, 2025.

3. The Company has sub-divided its equity shares from a face value of Rs10 each to Rs2 each, pursuant to the approval of the shareholders vide special resolution on 25^th July, 2025. Necessary filings have been made with the Registrar of Companies, and the revised capital structure has taken effect from 25^th July, 2025.

4. The Company has been sanctioned new term loan facilities amounting to Rs4,000.00 lakhs by Indian Bank, vide sanction letter dated 19^th June, 2025, for setting up of a new manufacturing unit at Plot no.6/2, TGIIC Hardware Park PH-II, Rangareddy District.

5. The Company has appointed Mr. Balasubramanyam Danturti; Mr. Madadi Ugender Reddy and Dr. Sesha Rama Srinivasa Sastry Pullela as the Independent Directors of the Company pursuant to the approval of the shareholders vide special resolution dated 25^th July, 2025.

6. The Company has been allotted land admeasuring 2.06 acres by the Telangana State Industrial Infrastructure Corporation (TGIIC) vide allotment letter dated 01.08.2025, for the Proposed New Facility. An Agreement of Sale in respect thereof was entered by the company with TGIIC Ltd. on 3rd September 2025 and the same was registered with the Sub-Registrar, Saroor Nagar on 9th September 2025.