Diksha Polymers Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATION

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with GAAP and other applicable provisions of the Companies Act. Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" 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.

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be "Forward looking statement" 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.

INDUSTRY OVERVIEW

The global PET bottle market size reached USD 45.50 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 60.30 Billion by 2033, exhibiting a growth rate (CAGR) of 3.2% during 2025-2033. The rising demand for PET bottles in the beverage industry, extensive product utilization in the personal care industries, and the growing environmental consciousness among the masses represent some of the key factors driving the market.

India is projected to reach a GDP of Rs. 4,26,45,000 crore (US$ 5 trillion) by 2027 and is on course to surpass Germany by 2028. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months. Indias economy grew by 6.5% in FY25. With a 7.4% growth rate in Q4 FY25, the RBI has revised Indias GDP growth forecast for FY26 upwards to 6.8% from earlier estimate of 6.5%. Indias comparatively strong position in the external sector reflects the countrys positive outlook for economic growth and rising employment rates.

BUSINESS OVERVIEW

Our Company is engaged in business of manufacturing of plastic products such as PET bottles/ containers and PET Preforms. We sell our products in Business-to-Business Model (B2B), to the manufacturer/traders who use our product as packaging materials for their products. We operate through three manufacturing facilities located at Gwalior, Madhya Pradesh. Our facilities spans 26,879 sq. ft on total basis and are equipped with the latest technology and has state of the art machinery. Our presence in these locations allows us to have easy access to raw materials and end users both which helps us overcome significant entry barriers in comparison with our competitors.

Our total income as restated were Rs 5,127.34 lakhs, Rs 4,272.80 lakhs and Rs 1,972.37 lakhs Financial Year 2025-26, 202425 and 2023-24 respectively. Further, our Profit after Tax had been recorded at Rs 411.74 lakhs, Rs 263.10 lakhs and Rs 101.15 lakhs financial year 2025-26, 2024-25 and 2023-24 respectively.

Significant Developments after March 31, 2026 that may affect our Future Results of Operations

The Directors confirm that there have been no events or circumstances since the date of the last financial statements as disclosed in the Prospectus which materially or adversely affect or is likely to affect the profitability of our Company, or the value of our assets, or our ability to pay liabilities within next twelve months.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Economic conditions in the markets in which we operate

Our results of operations are dependent on the overall economic conditions in the markets in which we operate, including India. Any change in macro-economic conditions in these markets, including changes in interest rates, government policies or taxation and political, economic or other developments could affect our business and results of operations. The plastic industry in India may perform differently and be subject to market and regulatory developments that are dissimilar to the markets in other parts of the world. While stronger economic conditions tend to result into higher demand for our products, weaker economic conditions tend to result into lower demand. Change in demand in the market segments we currently supply or improvement/deterioration in the market or a change in regulations, customs, taxes or other trade barriers or restrictions could affect our operations and financial condition.

Relationship with key customers

We have historically derived, and may continue to derive, a significant portion of our income from our top 5 customers. F.Y. 2025-26, 2024-25 and F.Y. 2023-24 our top 5 customers represented 73.57%, 77.33% and 75.60% of our total revenues from operations respectively in such periods. Any reduction in orders from our top five customers would adversely affect our income. The demand from our key customers, in particular our top 5 customers, determines our revenue levels and results of operations, and our sales are directly affected by the production and inventory levels of our customers. Our customers in turn are dependent on budget, economic condition of country, demand and growth in plastic industry sector. Over the years, we have developed strong relationships with a number of domestic and international corporations through which we have been able to expand our product offerings and also our geographic reach. Our business depends on the continuity of our arrangements with these customers. Our sales to such customers are typically conducted on the basis of purchase orders that they place with us from time to time.

Our ability to successfully implement its strategy and its growth and business expansion plans

Our revenue and our business operations have grown in recent years. Although we plan to continue to expand our scale of operations, we may not be able to sustain these rates of growth in future periods due to a number of factors, including, among others, our execution capability, our ability to retain, maintain & enter into new distribution agreement, our ability to maintain customer satisfaction, our ability to mobilise sufficient working capital, macroeconomic factors beyond our control such as decline in global economic conditions, availability of cheaper imported / domestic products / brands, competition within each product category from players in the organized and unorganized segments, the greater difficulty of growing at sustained rates from a larger revenue base, our inability to control our expenses and the availability of resources for our growth. There can be no assurance that we will not suffer from capital constraints, operational difficulties or difficulties in expanding existing business operations. Our strategy and revenue plan may not work and might have adverse effect on financials.

Significant accounting policies

For details in respect of Statement of Significant Accounting Policies, please refer to Restated Financial Statements under chapter titled “Restated Financial Statements” beginning on page 140 of this Prospectus.

RESULTS OF OUR OPERATIONS

(Rs in lakhs)

Particulars	For the year ended 31st March 2026	% of Total Income	For the year ended 31st March 2025	% of Total Income	For the year ended 31st March 2024	% of Total Income
Income
Revenue from operations	5,127.34	100.00%	4,272.20	99.99%	1,972.37	100.00%
Other income	-	-	0.59	0.01%	-	0.00%
Total Income (I)	5,127.34	100.00%	4,272.80	100.00%	1,972.37	100.00%
Expenses
Cost of Material Consumed	4,163.32	81.20%	3,814.86	89.28%	1,847.32	93.66%
Changes in inventories of finished goods	29.65	0.58%	(156.14)	(3.65)%	(98.99)	(5.02)%
Employee benefits expense	43.28	0.84%	38.17	0.89%	16.36	0.83%
Finance costs	104.96	2.05%	68.03	1.59%	32.57	1.65%
Depreciation and amortization expense	68.40	1.33%	63.60	1.49%	14.71	0.75%
Other expenses	155.95	3.04%	99.28	2.32%	25.23	1.28%
Prior period item	-	-	3.54	0.08%	-	0.00%
Total expenses (II)	4,565.53	89.04%	3,931.34	92.01%	1,837.20	93.15%
Profit/(Loss) before extraordinary and exceptional items	561.81	10.96%	341.46	7.99%	135.17	6.85%
Exceptional item	-	-	-	-	-	-
Profit/(Loss) Before Tax	561.81	10.96%	341.46	7.99%	135.17	6.85%
Tax expense:
Current tax	140.00	2.73%	82.00	1.92%	33.94	1.72%
Short/Excess provision	9.68	0.19%	-	-	-	-
Deferred tax	0.36	0.01%	(3.64)	(0.09) %	0.08	0.00%
Total Tax	150.04	2.93%	78.36	1.83%	34.02	1.72%
Profit (Loss) for the period (III-IV)	411.77	8.03%	263.1	6.16%	101.15	5.13%

Main Components of our Profit and Loss Account Income

Our total income comprises of revenue from Sale of Products and Other income.

Revenue from Operations

Our revenue from operations as a percentage of total income was 100.00% 99.99% and 100.00% Financial year ended 2025-26, 2024-25 and 2023-24 respectively.

Other Income

Our other income comprises of interest income.

Expenditure

Our total expenditure primarily consists of cost of raw material consumed, change in inventories, employee benefit expenses, finance cost, depreciation expenses, other expenses and prior period expenses.

Cost of Raw Material Consumed

It consists of cost of raw materials consumed and other direct expenses.

Change in Inventories

It comprises of changes in finished goods.

Employee Benefit Expenses

Employee benefit expenses comprise of salaries, director remuneration, employee welfare expenses, contribution to ESIC.

Depreciation and Amortization Cost

Depreciation and Amortization Expenses consist of depreciation on the Tangible assets of our company i.e. Buildings, Furniture & Fixtures, Plant & Machinery, Computer and Office Equipments.

Finance costs

Finance cost includes Interest on Borrowings and processing expenses.

Other Expenses

Other expenses include Power and Fuel expenses, professional expenses, repair and maintenance, travelling and Miscellaneous expenses.

Provision for Tax

The provision for current tax is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

Details of rise in percentage term for the key financial indicators are as below:

Our Company has been able to consistently achieve abnormal growth in business, revenue, profit and Net Worth with its dedication to serve the best and dive deeper into plastic industry each year Details of rise in percentage term for the key financial indicators are as below:

Particulars	F.Y 2025-26	F.Y 2024-25
Revenue from Operation	5,127.34	4,272.20
Percentage rise in Revenue from Operation year on year	20.02%
EBITDA	731.85	470.84
Percentage rise in EBITDA year on year	55.44%

 

Particulars	F.Y 2024-25	F.Y 2023-24
Revenue from Operation	4,272.20	1,972.37
Percentage rise in Revenue from Operation year on year	116.60%
EBITDA	470.84	180.45
Percentage rise in EBITDA year on year	160.92%

Rationale for increase in PAT and PAT margin in FY 2026 and FY 2025

In F.Y 2025-26, our total income increased by Rs 855.14 lakhs or 20.02%, to Rs 5,127.34 lakhs from Rs 4,272.20 lakhs in F.Y 2024-25. In F.Y 2024-25, our total income increased by Rs 2,299.83 lakhs or 116.60%, to Rs 4,272.20 lakhs from Rs 1,972.37 lakhs in F.Y 2023-24. We have also seen a rise in the PAT and PAT margin from Rs 101.15 (5.13%) in F.Y. 2023-24 to Rs 411.74 (8.03%) in F.Y. 2025-26.

> Our financial performance relies heavily on the volume of business, with increase in sales over the years, has directly added to profit earnings.

> This significant growth in revenue is due to capacity expansion during the year 2024-25 through the Business transfer Agreement with Diksha Packaging. This improvement is primarily due to the addition of inhouse production and sale of PET Preforms.

> (Rs in lakhs)

Particulars	F.Y. 2025-26		F.Y. 2024-25		F.Y. 2023-24
	Revenue	%	Revenue	%	Revenue	%
PET bottles/ containers	3,656.01	71.30%	3,424.61	80.16%	1,812.94	91.92%
PET Preforms	1,323.17	25.81%	777.39	18.20%	67.47	3.42%
Caps	8.90	0.17%	21.43	0.50%	4.22	0.21%
Others	139.26	2.72%	48.76	1.14%	87.74	4.45%
Sub Total	5,127.34	100.00%	4,272.20	100.00%	1,972.37	100.00%

> Major raw material used for manufacturing PET Containers is PET Preforms. With the acquisition of machines through BTA, we have started manufacturing PET Preforms inhouse, which has results in reduction of cost of our raw materials, positively impacting our profits.

> With the bulk purchase orders to the vendors, our Company was able to source raw materials at a cheaper rate resulting in lower cost of material consumed.

> Details of cost as a percentage of revenue are as below:

(Rs in lakhs)

Particulars	F.Y 2025-26	F.Y 2024-25	F.Y 2023-24
Cost of Material consumed (a)	4,163.32	3,814.86	1,847.32
Change in Inventories (b)	29.65	(156.14)	(98.99)
Total Cost (a+b)	4,192.97	3,658.72	>1,748.33
Revenue from Operations	5,127.34	4,272.20	1,972.37
Particulars	F.Y 2025-26	F.Y 2024-25	F.Y 2023-24
Cost as a % of Revenue	81.78%	85.63%	88.64%

Thus, the above factors have led to increase in revenue over the years and the companys profit margins increased despite increase in employee benefits, finance cost, statutory depreciation and other expenses.

Components of Balance Sheet

Long term Borrowings

The Long-term Borrowings consist of secured term loans. During the F.Y 2025-26, the Company has availed the term loan from Axis Bank and therefore there is an increase in loans to Rs. 150.63 lakhs as compared to previous year.

Short-term Borrowings

The Short-term Borrowings consist of current maturity of secured loans and cash credit loans from Bank. The increase of 5.45% is due to increase in secured loan utilized during F.Y 2025-26.

Trade Payables

Trade payables have decreased by Rs. 39.34 lakhs. This is mainly due to corresponding increase in lesser credit purchases during the year. With the increase in companys operations there is more requirement of raw materials, goods, or services to meet growing demand.

Trade Receivables

The significant increase of Rs. 213.90 lakhs in trade receivables during F.Y 2025-26 as compared to F.Y 2024-25 is attributed in terms that the Company has grown in terms of revenue year on year with more addition in credit sales and thereby there is increase debtors. The company has offered more flexible payment terms to its customers to retain customers, attract new customer, fetch more orders and thereby increase in revenue.

Inventories

The Inventories has risen by 29.94% during F.Y 2025-26 as compared to F.Y 2024-25 and the increase of 105.00% during F.Y 2024-25 as compared to F.Y 2023-24 is attributed with increase in revenue orders, purchases made during the year. With the increase in revenue, the inventories level has risen to meet the customer demands and ensure timely delivery. Further, the nature of our manufacturing industry and products we deal, we may not always rely on just-in-time inventory systems, as delays in procuring raw materials could halt production.

F.Y 2025-26 compared with F.Y 2024-25

Income

In F.Y 2025-26, our total income increased by Rs 855.14 lakhs or 20.02%, to Rs 5,127.34 lakhs in F.Y 2025-26 from Rs4,272.20 lakhs in F.Y 2024-25. The increase in the year 2025-26 was due to increase in the orders, business growth for our products received and delivery of products as compared to last year.

Other income decreased by Rs 0.59 lakhs in F.Y 2025-26 as there was no interest income.

Cost of Material Consumed

Cost of material consumed increased by Rs 348.46 lakhs or 9.13% to Rs 4,163.32 lakhs in F.Y 2025-26 from Rs3,814.86 lakhs in F.Y 2024-25 as we purchased bulk quantity of raw materials to meet the requirement of production house and there was increase in closing stock of raw materials.

Change in Inventories of Work in Progress and Finished Goods

Change in Inventories were Rs 29.65 lakhs in F.Y 2025-26 as compared to Rs (156.14) Lakhs in F.Y 2024-25.

Employee Benefit Expenses

Employee Benefit Expenses increased by Rs 5.11 lakhs or 13.39 % to Rs 43.28 lakhs in F.Y 2025-26 from Rs 38.17 lakhs in F.Y 2024-25. This increase was mainly due to increase in salaries, bonus and staff welfare expenses.

Finance Costs

Finance Costs increased by Rs 36.93 lakhs or 54.28% to Rs 104.96 lakhs in F.Y 2025-26 from Rs 68.03 lakhs in F.Y 202425. This increase was mainly due to increase in borrowing and interest cost on loans during the year.

Depreclatlon Expenses

Depreciation expenses were Rs 68.40 lakhs in F.Y 2025-26 as compared to Rs 63.60 Lakhs in F.Y 2024-25.

Other Expenses

Other expenses increased by Rs 56.67 lakhs or 57.08% to Rs 155.95 lakhs in F.Y 2025-26 from Rs 99.28 lakhs in F.Y 202425. The increase majorly consisted of power fuel expenses, repair and maintenance, Madhya Pradesh Pollution control charges interest on statutory dues and miscelleneous expenses incurred during the year.

Profit/ (Loss) before Tax

The increase in scale of operations has led to increase in our Profit before tax by Rs 220.35 lakhs or 64.53% to Rs 561.81 lakhs in F.Y 2025-26 from 341.46 lakhs in F.Y 2024-25.

Tax Expenses

The Companys tax expenses had increased by Rs 71.68 lakhs to t150.04 lakhs in the F.Y 2025-26 from Rs 78.36 lakhs in F.Y 2024-25 as tax liability increases with rise in profits earned during the year.

Profit/ (Loss) after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by Rs 148.67 lakhs or 56.51 % to Rs 411.77 lakhs in F.Y 2025-26 from Rs 263.10 lakhs in F.Y 2024-25.

F.Y 2024-25 compared with F.Y 2023-24

Income

In F.Y 2024-25, our total income increased by Rs 2,299.83 lakhs or 116.60%, to Rs 4,272.20 lakhs in F.Y 2024-25 from t1,972.37 lakhs in F.Y 2023-24. The increase in the year 2024-25 was due to increase in the orders, business growth for our products received and delivery of products as compared to last year.

Other income increased by Rs 0.59 lakhs in F.Y 2024-25 as we recorded interest income.

Cost of Material Consumed

Cost of material consumed increased by Rs 1,967.54 lakhs or 106.51% to Rs 3,814.86 lakhs in F.Y 2024-25 from t1,847.32 lakhs in F.Y 2023-24 as we purchased bulk quantity of raw materials to meet the requirement of production house and there was increase in closing stock of raw materials.

Change in Inventories of Work in Progress and Finished Goods

Change in Inventories of Work in Progress and Finished Goods were Rs (156.14) lakhs in F.Y 2024-25 as compared to Rs (98.99) Lakhs in F.Y 2023-24.

Employee Benefit Expenses

Employee Benefit Expenses increased by Rs 21.81 lakhs or 133.31 % to Rs 38.17 lakhs in F.Y 2024-25 from Rs 16.36 lakhs in F.Y 2023-24. This increase was mainly due to increase in salaries, bonus and staff welfare expenses.

Finance Costs

Finance Costs increased by Rs 35.46 lakhs or 108.87% to Rs 68.03 lakhs in F.Y 2024-25 from Rs 32.57 lakhs in F.Y 202324. This increase was mainly due to increase in borrowing and interest cost on loans during the year.

Depreciation Expenses

Depreciation expenses were Rs 63.60 lakhs in F.Y 2024-25 as compared to Rs 14.71 Lakhs in F.Y 2023-24.

Other Expenses

Other expenses increased by Rs 74.05 lakhs or 293.47% to Rs 99.28 lakhs in F.Y 2024-25 from Rs 25.23 lakhs in F.Y 202324. The increase majorly consisted of power fuel expenses, repair and maintenance, office expenses and interest on statutory dues incurred during the year.

Prior period item

It consists of sales tax demand paid during 3.54 lakhs.

Profit/ (Loss) before Tax

The increase in scale of operations has led to increase in our Profit before tax by Rs 206.28 lakhs or 152.61 % to Rs 341.46 lakhs in F.Y 2024-25 from 135.17 lakhs in F.Y 2023-24.

Tax Expenses

The Companys tax expenses had increased by Rs 44.34 lakhs to t78.36 lakhs in the F.Y 2024-25 from Rs 34.02 lakhs in F.Y 2023-24 as tax liability increases with rise in profits earned during the year.

Profit/ (Loss) after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by t161.95lakhs or 160.11% to Rs 263.10 lakhs in F.Y 2024-25 from Rs 101.15 lakhs in F.Y 2023-24.

Cash Flows

(Rs in lakhs)

Particulars	For the year ended March 31
	2026	2025	2024
Net Cash from Operating Activities	(377.20)	68.09	8.50
Net Cash from Investing Activities	(287.66)	(196.06)	(6.06)
Net Cash used in Financing Activities	113.88	775.72	0.10
Net Increase / (Decrease) in Cash and Cash equivalents	(550.98)	647.74	2.54

Cash Flows from Operating Activities

Net cash used in operating activities for the year ended March 31, 2026 was Rs 377.20 lakhs as compared to the Profit Before Tax of Rs 561.78 lakhs for the same period. This difference is primarily on increase in trade and other receivables, inventories and short-term loans and advances and other payables.

Net cash generated in operating activities for the year ended March 31, 2025 was Rs 68.09 lakhs as compared to the Profit Before Tax of Rs 341.46 lakhs for the same period. This difference is primarily on increase in trade and other receivables, inventories and short-term loans and advances.

Net cash generated in operating activities for the year ended March 31, 2024 was Rs 8.50 lakhs as compared to the Profit Before Tax of Rs 135.17 lakhs for the same period. This difference is primarily on increase in inventories, payment of trade and other payables.

Cash Flows from Investment Activities

For the year ended March 31, 2026 the net cash used in investing activities was Rs 287.66 lakhs. This was majorly on account of addition in plant and machinery. We have done significant capex during the year ended March 31, 2026 to revamp our machineries by changing old parts which necessarily does not result in increasing our installed manufacturing capacity.

For the year ended March 31, 2025 the net cash used in investing activities was Rs 196.06 lakhs. This was majorly on account of addition in furniture and fixtures, plant and machinery and we had acquired few machines through BTA with Diksha Packaging during this period.

For the year ended March 31, 2024 the net cash used in investing activities was Rs 6.06 lakhs. This was majorly on account of addition in plant and machinery.

Cash Flows from Financing Activities

Net cash generated from financing activities in for year period ended March 31, 2026 was Rs 113.88 lakhs. This was on account of proceeds from borrowings and finance cost incurred during the year.

Net cash generated from financing activities for the year ended March 31, 2025 was Rs 775.72 lakhs. This was on account of proceeds from secured loans.

Net cash generated from financing activities in for the year ended March 31, 2024 was Rs 0.10 lakhs. This was on account of proceeds from borrowings and finance cost incurred during the year.

OTHER MATTERS

i. Unusual or infrequent events or transactions

Except, the Business Transfer Agreement for acquiring the running business of the proprietorship firm, M/s. Diksha Packaging, proprietor concern of Anjana Mandelia entered on September 18, 2024 and as described in this Prospectus, during the years under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

ii. Significant economic changes that materially affected or are likely to affect income from continuing Operations

Other than as described in the Section titled “Financial Information” and chapter titled “Managements Discussion and Analysis of Financial Conditions and Results of Operations” on page no. 140 and 163 respectively of this Prospectus respectively, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

iii. 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 chapter titled “Risk Factors” and “Managements Discussion and Analysis of Financial Conditions and Result of Operations” on page no. 19 and 239 respectively of this Prospectus respectively, best 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.

iv. Future relationship between Costs and Income

Other than as described in the chapter titled “Risk Factors” on page no. 19 of this Prospectus, best 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.

v. The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new services or increased prices

Increase in revenues is by and large linked to increase in volume of business activity thereby, completing and receiving more orders for our products.

vi. Status of any publicly announced new services or business segments

Please refer to the chapter titled “Our Business” on page no. 94 of this Prospectus.

vii. The extent to which the business is seasonal.

Our business is not seasonal in nature.

viii. Any significant dependence on a single or few suppliers or customers

For F.Y 2025-26, the revenue from our top 5 and top 10 customers constituted approximately 73.57% and 88.93% respectively of the revenue from operations. For F.Y 2025-26, the purchases from our top 5 and top 10 suppliers constituted approximately 96.75% and 99.67% respectively of the total purchases.

For F.Y 2024-25, the revenue from our top 5 and top 10 customers constituted approximately 77.33% and 92.67% respectively of the revenue from operations. For F.Y 2024-25, the purchases from our top 5 and top 10 suppliers constituted approximately 95.06 % and 98.30 % respectively of the total purchases. For further details, please refer chapter “Our Business" on page no. 94 of this Prospectus.

ix. Competition Conditions

We face competition from various domestic and other players in the market. Further, there are no entry barriers in this industry and any expansion in capacity of existing market players would further intensify competition. Many of our competitors have substantially large capital base and resources than we do and offer broader range products. We intend to continue competing rigorously to capture more market share and manage our growth in an optimal way. We expect that our commitment to quality, past record of timely execution and transparency will provide us with an edge over our competitors. Further we believe that our competition also depends on several factors which include changing business framework, government policy, competitive price, delivery at given timeline and established relationship with suppliers, brand recognition etc.

CAPITALISATION STATEMENT ANNEXURE-VII CAPITALISATION STATEMENT

The following table sets forth the Companys capitalization as at March 31, 2026, derived from our Restated Financial Statements, and as adjusted for the Offer. This table should be read in conjunction with the sections titled “Risk Factors”, “Financial Statements” and “Managements Discussion and Analysis of Financial Condition and Results of Operations" respectively.

(in Rs lakhs)

Particulars	Pre offer as at March 31, 2026	As adjusted for the proposed Offer
Borrowings:
Long term borrowings (including current maturity) (a)	189.73	-
Short term borrowings (b)	1,320.10	45.43
Total borrowings (c= a+b)	1,509.83	45.43
Eauitv:
Equity share capital	359.82	519.66
Reserves and surplus	492.27	2,122.64
Total equity (d)	852.09	2,642.30
Ratio: Short term borrowing (b)/ Total equity (d)	1.55	0.02
Ratio: Long term borrowing (b)/ Total equity (d)	0.22	-
Ratio: Total borrowings (c)/ Total equity (d)	1.77	0.02

FINANCIAL INDEBTEDNESS

The Company avails loan and financing facilities in the ordinary course of business for meeting working capital, capital expenditure and business requirements.

The details of the indebtedness of the Company as on March 31, 2026 is provided below:

(Rs in lakhs)

Nature of Borrowings	Amount as on March 31, 2026
Secured Borrowings (Fund Based)	1,509.83
Total	1,509.83

Secured Borrowings:

(Rs in lakhs)

Sr. No.	Amount sanctioned	Sanction date	Amount outstanding as at March 31, 2026	Rate of interest (%)	Tenure as per Sanction letter	Nature of facility
1	1,200.00	June 13, 2025	1,281.64	8.00% p.a	12 Months	Cash Credit
2	100.00	March 13, 2026			30 days	Temporary Overdraft
3	46.00	June 13, 2025	39.10	8.00% p.a	71 Months	Term Loan
4	100.00	June 13, 2025	96.15	8.00% p.a	84 Months	Term Loan
5	100.00	June 13, 2025	92.93	8.00% p.a	84 Months	Term Loan
Total	1,546.00		1,509.83

Note 1: Above secured borrowings are from Axis Bank.

Note 2: Primary Security for Cash Credit Loan: Exclusive Hypothecation of entire Current assets of the borrower both present and future.

Primary Security for Term Loans (2,3 and 4): Exclusive Hypothecation of entire movable fixed assets of the borrower, both present and future.

Security Collateral for both loans:

Sr No	Details
1	Industrial Property situated at part of Plot No 62, Industrial Area, Maharajapura. Tehsil & Dist Gwalior M.P.
2	Industrial Property situated at part of part of Plot No. 32( 1) Sector B Industrial Area, Maharajapur, tehsil & Dist Gwalior M.P.
3	Leased industrial property having land & building bearing part of Plot no. 33, behind Double Trishul atta factory, Industrial Area, Pinto Park, maharajpura, Gwalior M.P.

Note 3: Personal Guarantor/s: Mr. Vipin Mandelia, Smt. Hemlata Mandelia, Mr. Vivek Mandelia, Mrs. Anjana Mandelia and Mrs. Sarita Mandelia

Note 4: Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net Borrowings to EBITDA ratio and debt service coverage ratio.