Effwa Infra & Research Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the period ended on December31, 2023 andfor the Fiscal Years 2023, 2022, and 2021 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 171 of this 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. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Red Herring Prospectus. You should also read the section titled “Risk Factors” beginning on page 27 of this Red Herring Prospectus, which discusses a number offactors, 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 “our” refers to Effwa Infra & Research Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements” for the Financial Years 2024, 2023, and 2022 included in this Red Herring Prospectus beginning on page 171 of this 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

Our company, “Effwa Infra & Research Limited”, (“EIRL”) is engaged in the business of engineering, consultancy, procurement, construction and integrated project management services in water pollution control, encompassing sewage and industrial effluent treatment, solid waste treatment and disposal, ventilation systems, hazardous waste management, and water treatment plants. Additionally, we also function as consultants and advisors, providing a range of services encompassing project organization, management, equipment procurement, funding, and project execution. Our expertise spans the entire project lifecycle, from registration and design to implementation, supervision, and finalizing contract terms.

Our company “EIRL” is ISO 9001:2015 Certified focussing on Engineering, Procurement, Construction, Commissioning, Operation & Maintenance Services for Effluent and Sewage Treatment with Recycling, Water Treatment, Integrated Municipal Solid Waste Management, Hazardous Waste Incineration & Bioremediation of Lakes. Our Company also offers end-to-end project management solutions towards environmental preservation. Our focus lies in ensuring environmentally friendly waste processing practices, including Effluent Treatment Plant management (ETP), Sewage Treatment and Reclamation (STP), Water Treatment and Distribution (WTP) and Hazardous Wate Management.

Our company has acquired the running business of M/s. Effwa Infra & Research, a Partnership firm of our promoters, Mr. Subhash Ramavtar Kamal and Dr. Varsha Subhash Kamal vide Take Over Agreement dated July 10, 2014 entered by and between our promoter and our company.

Our Company works on the concept revolving around 4R i.e., Reducing, Recycling, Reusing and Rehabilitation to provide technological solutions for a range of industries, thus, enabling them to achieve Zero Liquid Discharge through recovery and recycling of water from effluent streams. We cater to the following industries such as textile, leather, paper, food processing, dairy, chemicals, dyes and intermediates, steel, mining, power, pharmaceutical and bulk drugs, sugar, distilleries, fertilizers, pesticides, ceramics, petrochemicals, and many others. Furthermore, our emphasis on achieving ZLD demonstrates a commitment to minimizing environmental impact and maximizing resource efficiency, which can be attractive to environmentally conscious businesses and regulatory bodies.

Our company EIRL offers comprehensive services across various industries and sectors, covering the entire project lifecycle from “concept to commissioning”. Our services include the preparation of project feasibility reports, technology selection, project management, process design, basic and detailed engineering, procurement, inspection, supply chain management, cost engineering, planning and scheduling, facilitation of statutory and regulatory approvals for Indian projects, construction management, and commissioning. Additionally, we provide services such as equipment design, environmental engineering services, materials and maintenance services, plant operation, and safety services.

We acquire projects through transparent competitive bidding process undertaken by the state government institution, central governments institution, public sector undertakings and other private institution. We participate in tenders for projects for Effluent Treatment Plant, Sewage Treatment Plant and Reclamation, Industrial Wastewater Treatment and Distribution, with ZLD (Zero Liquid Discharge) System.

The infrastructure for water management project includes designing of project, construction, procurement of raw materials which includes installation of jack wells including pump houses, laying of pipeline, electro-mechanic works, on-site execution with overall project management until the commissioning of projects. Post commissioning, we also provide operations and maintenance services for the projects for a certain period of time (typically, ranging from three to five years). We also have a separate AMC team personnel who are focused on operations and maintenance of completed projects of our Company.

Our company operates in the Domestic Market as well as International Market, across Eight States including a Special Economic Zone. These regions include Andhra Pradesh, Chhattisgarh, Gujarat, Maharashtra, Odisha, West Bengal, Madhya Pradesh, Rajasthan, and the Special Economic Zone includes Adani Port based on sales made for the financial year March 31, 2024, 2023 and 2022.

Our company is promoted by Mr. Subhash Ramavtar Kamal and Dr. Varsha Subhash Kamal, who collectively possess more than a two decades of experience in the water and wastewater treatment industry, respectively. Their vision and growth strategies influence our company, enabling us to anticipate, guide, manage, develop, and control major aspects of our business operations, as well as leverage customer relationships, for further details, please see the chapter titled, “Our Management” and “Our Promoter and Promoter Group” on page 151 and 165 of this Red Herring Prospectus. We attribute our success to their sustained efforts over the years in key areas of our business, including project management, process improvements and the expansion of our operational scale. We believe that the collective experience of our management team, coupled with their deep understanding of industry dynamics, regulatory affairs, sales, marketing, and finance, positions us to capitalize on current and future market opportunities.

Our primary focus is to strengthen our prospects in executing Effluent Treatment Plant with Recycling, Effluent Treatment Plant with Zero Liquid Discharge System and Sewage Treatment Plant Projects. We have started with 3 MLD size of project & increased our capacity to 135 MLD. Our Company has proven its execution capabilities in large EPC contracts such as the construction of a 135 MLD plant for water treatment at Odisha for the Sukinda Mine Plant. The average period for the execution for EPC projects is between 18 to 24 months. The average period for execution varies between one year and five years for O&M projects.

Our company has successfully completed over 45 water management infrastructure projects as on March 31, 2024, catering to a diverse clientele including public sector undertakings (PSUs), municipal corporations, state governments, and private enterprises. Over the years, we have cultivated a specialized team comprising 12 engineers dedicated to the design, engineering, and construction of Wastewater Treatment & Recycling Systems, focusing on Zero Liquid Discharge system with conveyance systems for secondary treated sewage water and fresh water. In addition to our design team, we have a workforce of 76 engineers spanning Civil, Mechanical, and Electrical Instrumentation & Automation, Piping, Safety & Quality Control Disciplines, tasked with the seamless execution of projects. Recognizing the importance of adhering to stringent compliance and quality standards mandated by government agencies, we collaborate with third-party consultants and industry experts as needed, ensuring that our projects meet regulatory requirements.

Key Performance Indicators of our Company.

As per Restated Financial Statements

in T nbVtc n fh/jvm > i vn

Key Financial Performance	March 31, 2024	March 31, 2023	March 31, 2022
Revenue from Operations (1)	14515.93	11509.57	10436.67
EBITDA (2)	2099.05	910.90	710.40
EBITDA Margin (%) (3)	14.46%	7.91%	6.81%
PAT	1380.06	513.04	459.99
PAT Margin (%) (4)	9.51%	4.46%	4.41%
Return on equity (%) (5)	45.46%	24.44%	28.35%
Return on capital employed (%) (6)	40.99%	22.89%	24.76%
Debt-Equity Ratio (times) (7)	0.38	0.69	0.56
Net fixed asset turnover ratio (times)(8)	229.25	232.75	307.25
Current Ratio (times) (9)	1.68	1.52	1.59
Revenue split between domestic and exports
In India (Including SEZ)	14515.93	10669.36	10007.05
Key Financial Performance	March 31, 2024	March 31, 2023	March 31, 2022
Outside India	0.00	840.21	429.62
Domestic Market (%)	100.00%	92.70%	95.88%
Export Market (%)	0.00	7.30%	4.12%

*As certified by M/s. AY & Co, Chartered Accountants, by way of their certificate dated June 22, 2024.

Notes:

1) Revenue from operation means revenue from sale of our products

2) EBITDA is calculated as Profit before tax + Depreciation + Finance Costs - Other Income

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

4) PAT Margin is calculated as PAT for the period/year divided by revenue from operations

5) Return on Equity is calculated by comparing the proportion of net income against the amount of average shareholder equity

6) Earnings before interest and taxes (EBIT) / Capital employed

7) Debt to Equity ratio is calculated as Total Debt divided by equity

8) Revenue from operation/Net fixed Asset

9) Current Ratio is calculated by dividing Current Assets to Current Liabilities

SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2024

In the opinion of the Board of Directors of our Company, since the date of the stub period as disclosed in this 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.

1. The status of the Company was changed to public limited and the name of our Company was changed to “Effwa Infra & Research Limited” vide Special Resolution passed by the Shareholders at the Extra Ordinary General Meeting of our Company held on March 05, 2024. The fresh certificate of incorporation consequent to conversion was issued on May 02, 2024 by Assistant Registrar of Companies/ Deputy Registrar of Companies/ Registrar of Companies, Centralised Processing Centre. ²

2. The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the EOGM held on May 03, 2024.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

A. COMPANY INFORMATION

Our Company was originally formed as a Private Limited under the provisions of The Companies Act, 2013 in the name and style of “Effwa Infra & Research Private Limited” pursuant to certificate of incorporation was issued by the Registrar of Companies, Maharashtra on January 6, 2014. Effwa Infra & Research Private Limited was thereafter converted to a Public Limited Company under Part I chapter XXI of the Companies Act, 2013 with the name and style of “Effwa Infra & Research Limited” and received a Certificate of Incorporation from the Registrar of Companies, Maharashtra dated May 2, 2024. The Corporate Identity Number of our Company is U90001MH2014PLC251793.

SIGNIFICANT ACCOUNTING POLICIES:

1. Accounting Convention

The financial statements are prepared under the historical cost convention on the “Accrual Concept” and Going Concern assumption of accountancy in accordance with the accounting principles generally accepted in India and comply with the accounting standards as prescribed by Companies (Accounting Standard) Rules, 2006 or 2001 as may be applicable and with the relevant provisions of the Companies Act, 2013 and rules made there under.

2. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which results are known/materialized.

3. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation. Cost comprises of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly attributable to the acquisition /construction are included in the cost of fixed assets. Adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

In case of new projects / expansion of existing projects, expenditure incurred during construction / preoperative period including interest and finance charge on specific / general purpose loans, prior to commencement of commercial production are capitalized. The same are allocated to the respective t on completion of construction / erection of the capital project / fixed assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future economic benefits from the existing asset beyond its previously assessed standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the Balance Sheet as “Capital Work in Progress.”

4. Impairment of Assets

At each balance sheet date, the Company reviews the carrying amount of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an assets net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the assets.

5. Depreciation

All fixed assets, except capital work in progress, are depreciated on WDV Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to / deletions from fixed assets made during the period is provided on pro-rata basis from / up to the date of such addition /deletion as the case may be.

6. Investments

Investments are classified into current investments and non-current investments. Current investments i.e. investments that are readily realizable and intended to be held for not more than a year valued at cost. Any permanent reduction in the carrying amount or any reversals of such, reductions are charged or credited to the Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision for diminution in the value of these investments is made only if such decline is other than temporary, in the opinion of the management.

7. Inventories

As per (AS) 2, The inventories are physically verified at regular intervals by the management. Raw Material Inventories are valued at the lower of cost and net realizable value.

Finished goods, Stock-in-Trade and Work-in-Progress are valued at lower of cost and net realizable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

Consumable stores and spares are valued at the lower of cost and net realizable value, as estimated by the management. Obsolete, defective, unserviceable and slow/non-moving stocks are duly provided for.

8. Revenue Recognition

Sales revenue is recognized when property in the goods with all significant risk and rewards as well as the effective control of goods usually associated with ownership are transferred to the buyer. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue from sale of goods or services are recognized on delivery of the products or services, when all significant contractual obligations have been satisfied, the property in the goods is transferred for price, significant risk and rewards of ownership are transferred to the customers and no effective ownership is retained.

In the financial statement, revenue from operation does not include Indirect taxes like Sales Tax And/ Or Goods & Service Tax.

Sale of Goods

Sales are recognized, net of returns and trade discounts, on transfer of significant risk and rewards of ownership to the buyer, which generally coincide with the delivery of goods to the customers. The Company collects Goods and Service Tax (GST) and / or Tax Collected at source on behalf of the government and, therefore, these do not form a part of economic benefits flowing to the Company.

Hence, they are excluded from revenue.

Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Service Income

Income from service rendered is recognised based on the terms of the agreements as and when services are rendered and are net of Goods and Service Tax (GST)/ Service tax.

Dividend Income

Dividend income from investments, if any, is accounted on the receipt basis.

Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

9. Borrowing Cost

Borrowing cost that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

10. Employee Benefits

Short - term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

Post-employment and other long term employee benefits are recognized as an expense in the profit & loss account for the year in which the liabilities are crystallized/accrued.

11. Taxes on Income

Income tax expenses for the year comprises of current tax and deferred tax. Current tax provision is determined on the basis of taxable income computed as per the provisions of the Income Tax Act. Deferred tax is recognized for all timing differences that are capable of reversal in one or more subsequent periods subject to conditions of prudence and by applying tax rates that have been substantively enacted by the balance sheet date.

12. Foreign Currency Translation

a) Transaction denominated in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the year end are restated at closing rate.

b) Any exchange difference on account of settlement of foreign currency transaction and restatement of monetary assets and liabilities denominated in foreign currency is recognized in the statement of Profit & loss Account.

13. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

B. NOTES ON ACCOUNTS

1. The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements/information may not necessarily be same as those appearing in the respective audited financial statements for the relevant years.

2. Segment Reporting

The Company at present is engaged in the Business of providing effluent treatment and recycling, sewage treatment and recycling, water treatment and distribution, restoration of water bodies, hazardous waste incineration etc. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

3. Provisions, Contingent Liabilities and Contingent Assets (AS 29)

Contingent liabilities and commitments (to the extent not provided for). There are no contingent liabilities as on March 31, 2024, March 31, 2023 & March 31, 2022 except as mentioned in Annexure-H, for any of the years/ stub period covered by the statements.

4. Related Party Disclosure (AS 18)

Related party transactions are reported as per AS-18 of Companies (Accounting Standards) Rules, 2006 or 2001 as may be applicable, as amended, in the Annexure - J of the enclosed financial statements.

5. Accounting for Deferred Taxes on Income (AS 22)

in lakhs)

Particulars	As at 31st March
	2024	2023	2022
WDV as per Companies Act, 2013 (A)	63.32	49.45	33.97
WDV as per Income tax Act, 1961 (B)	88.04	68.71	56.28
Difference in WDV (A-B)	(24.72)	(19.26)	(22.31)
Timing Difference due to Provision for Gratuity (DTA) (C)	20.24	18.51	14.98
Total Timing Difference (D)	(44.96)	(37.77)	(37.29)
Deferred Tax (Asset)/ Liability (E)	(11.32)	(9.51)	(9.39)
Restated Closing Balance of Deferred Tax (Asset)/ Liability (E)	(11.32)	(9.51)	(9.39)
Deferred Tax (Assets)/ Liability as per Balance sheet of Previous Year	(9.51)	(9.39)	—
Deferred Tax (Assets)/ Liability charged to Profit & Loss	(1.81)	(0.12)	(9.39)

6. Post Employment Benefits: The Company has valued its obligations related to Gratuity as follows:

I. ASSUMPTIONS	For the Period Ended on March 31, 2024	For the Period Ended on March 31, 2023	For the Period Ended on March 31, 2022
Discount Rate	7.25%	7.50%	7.10%
Expected Rate of Salary Increase	6.00%	6.00%	6.00%
Withdrawal Rate	10.00%	10.00%	10.00%
Mortality	IALM 2012-14	IALM 2012-14	IALM 2012-14
Retirement	60 Years	60 Years	60 Years
II. CHANGE IN THE PRESENT VALUE OF DEFINED BENEFIT OBLIGATIONS	For the Period Ended on March 31, 2024	For the Period Ended on March 31, 2023	For the Period Ended on March 31, 2022
Defined Benefit Obligation at beginning of the year	18.51	14.98	11.25
Current Service Cost	6.21	5.56	4.38
Interest cost	1.39	1.06	0.76
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial Assumptions	(5.32)	(3.09)	(0.79)
Actuarial (Gains)/Losses on Obligations - Due to Experience Adjustment	0.00	0.00	0.00
Benefits Paid	(0.55)	0.00	(0.62)
Defined Benefit Obligation as at end of the year	20.24	18.51	14.98
III. AMOUNT RECOGNIZED IN THE BALANCE SHEET:	For the Period Ended on March 31, 2024	For the Period Ended on March 31, 2023	For the Period Ended on March 31, 2022
Net liability as at beginning of the year	18.51	14.98	11.25
Net expense recognized in the Statement of Profit and Loss	2.28	3.53	4.35
Benefits Paid	(0.55)	0.00	(0.62)
Net liability as at end of the year	20.24	18.51	14.98
IV. EXPENSE RECOGNIZED:	For the Period Ended on March 31, 2024	For the Period Ended on March 31, 2023	For the Period Ended on March 31, 2022
Current Service Cost	6.21	5.56	4.38
Interest Cost	1.39	1.06	0.76
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial Assumptions and Due to Experience Adjustment	(5.32)	(3.09)	(0.79)
Expense charged to the Statement of Profit and Loss	2.28	3.53	4.35
V. BALANCE SHEET RECONCILIATION:	For the Period Ended on March 31, 2024	For the Period Ended on March 31, 2023	For the Period Ended on March 31, 2022
Opening net liability	18.51	14.98	11.25
Expense as above	2.28	3.53	4.35
Provision Related to Previous Year booked as Prior Period Items	0.00	0.00	0.00
Return on Plan Assets	0.00	0.00	0.00
Benefits Paid	(0.55)	0.00	(0.62)
Net liability/(asset) recognized in the balance sheet	20.24	18.51	14.98

MATERIAL ADJUSTMENT TO THE RESTATED FINANCIAL STATEMENT

1. Material Regrouping:

Appropriate adjustments have been made in the Restated Financial Statements of Assets and Liabilities, Profit and Losses and Cash Flows, wherever required, by reclassification of the corresponding items of income, expenses, assets and liabilities in order to bring them in line with the regroupings as per the audited financial statements of the company and the requirements of SEBI Regulations.

2. Material Adjustments:

The Summary of results of restatement made in the Audited Financial Statements for the respective period/years and its impact on the profit/ (loss) of the Company is as follows:

Particulars	For the Period Ending 31st March
	2024	2023	2022
(A) Net Profits as per audited financial statements (A)	1390.46	514.38	436.73
Add/(Less): Adjustments on account of -
Particulars	For the Period Ending 31st March
	2024	2023	2022
1) Difference on Account of Calculation in Provision for Income Tax	(29.89)	(0.89)	(2.24)
2) Difference on Account of Calculation in Deferred Tax	(3.63)	0.12	9.39
3) Difference on account of Calculation in Gratuity	18.51	(3.53)	(3.72)
4) Adjustment of Prior Period Items	-	0.03	8.84
5) Adjustment on account of Prepaid Expenses	4.61	2.94	10.99
Total Adjustments (B)	(10.40)	(1.34)	23.25
Restated Profit/ (Loss) (A+B)	1380.06	513.04	459.98

3. Notes on Material Adjustments pertaining to prior years

(1) Difference on Account of Provision for Current tax: Since the Restated profit has been changed so that the Provision for current tax is also got changed

(2) Difference on Account of Change in Deferred Tax: Deferred tax is calculated on the difference of WDV as per

Companies Act & income tax Act in Restated financials but in Audited financials the same has been calculated between difference of Depreciation. Further Deferred Tax has been calculated on Timing difference arises due to Provision for Gratuity which was not considered in Audited Financial Statements

(3) Difference on Account of Provision for Gratuity: Provision for Gratuity is provided in Restated Financials Statement which was not provided in Audited Financial Statements

(4) Difference on Account of Prior Period Items: Prior Period Items has been transferred to that particular period to which they relate hence difference arises

(5) Difference on Account of Change in Prepaid Expenses: Expenses Related to Next Accounting Period is transferred to Prepaid Expenses

Reconciliation Statement between Restated Reserve & Surplus affecting Equity due to Adjustment made in Restated Financial Statements:

R in lakhs)

Particulars	As at March 31
	2024	2023	2022
(A) Total Equity as per audited financial statements (A)	3723.41	2,354.08	1,839.70
Add/(Less): Restatement in Profit/Loss	(8.59)	1.81	3.15
Total Adjustments (B)	0.23	--	--
Total Equity as per Restated Financial Statements (A+B)	3714.83	2,355.89	1,842.85

7. Trade Payable Ageing Summary

31.03.2024

Particulars	Outstanding for following periods from due date of payment / Invoice date				Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
(i) MSME	1599.18	-	-	-	1599.18
(ii) Others	745.36	80.20	-	-	825.56
(iii) Disputed dues - MSME	-	-	-	-	-
(iv) Disputed dues - Others	-	-	-	-	-
Total	2344.54	80.20	-	-	2424.74
31.03.2023
Particulars	Outstanding for following periods from due date of payment / Invoice date				Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
(i) MSME	938.72	-	-	-	938.72
(ii) Others	984.31	48.70	14.31	-	1047.32
(iii) Disputed dues - MSME	-	-	-	-	-
(iv) Disputed dues - Others	-	-	-	-	-
Total	1923.03	48.70	14.31	-	1986.04

31.03.2022

Particulars	Outstanding for following periods from due date of payment / Invoice date				Total
	Less than 1 year	1-2 years	2-3 years	More than 3 years
(i) MSME	796.51	-	-	-	796.51
(ii) Others	736.90	-	-	-	736.90
(iii) Disputed dues - MSME	-	-	-	-	-
(iv) Disputed dues - Others	-	-	-	-	-
Total	1533.41	-	-	-	1533.41

8. Trade Receivable Ageing Summary

Particulars	Outstanding for following periods from due date of payment
	Less than 6 months	6 months - 1 year	1-2 years	2-3 years	More than 3 years	Total
31.03.2024
Undisputed Trade Receivable - considered good	4934.65	457.45	803.72	496.32	0.00	6692.15
Undisputed Trade Receivable - considered doubtful	-	-	-	-	-	-
Disputed Trade Receivable - considered good	-	-	-	-	-	-
Disputed Trade Receivable - considered doubtful	-	-	-	-	-	-
Total	4934.65	457.45	803.72	496.32	0.00	6692.15
31.03.2023
Undisputed Trade Receivable - considered good	4379.23	788.28	-	-	-	5167.51
Undisputed Trade Receivable - considered doubtful	-	-	-	-	-	-
Disputed Trade Receivable - considered good	-	-	-	-	-	-
Disputed Trade Receivable - considered doubtful	-	-	-	-	-	-
Total	4379.23	788.28	-	-	-	5167.51
31.03.2022
Undisputed Trade Receivable - considered good	2540.80	580.48	-	-	-	3121.28
Undisputed Trade Receivable - considered doubtful	-	-	-	-	-	-
Disputed Trade Receivable - considered good	-	-	-	-	-	-
Disputed Trade Receivable - considered doubtful	-	-	-	-	-	-
Total	2540.80	580.48	-	-	-	3121.28

9. Restated Statement of Accounting Ratios:

Sr. No. Particular	Numerator	March 31, 2024	March 31, 2023	March 31, 2022	Reason for Movements
	Denominator
(a) Current Ratio	Current Assets	1.75	1.52	1.59	Reason is not required to be disclosed since movement is not more than 25%.
	Current Liabilities
(b) Debt-Equity Ratio	Debt	0.38	0.69	0.56	Reason is not required to be disclosed since movement is not more than 25% in 2023. The ratio decreased in 2024, due to increase in Share Capital.
	Equity
(c) Debt Service Coverage Ratio	Net Operating Income	1.39	0.59	0.71	The Operating income has been increasing year on year but the Debt has been increased in 2023 and decreased in 2024, thus the increase in 2024 in ratio is justified.
	Total Debt Service
(d) Return on Equity Ratio	Profit After Tax	46.22%	24.44%	27.67%	This ratio is decreased during 2023 but the change is less than 25%. It further increased in 2024 due to increase in Average shareholder equity getting increased in the same ratio as profits.
	Average Shareholders Equity
(e) Trade Receivables turnover ratio (in times	Net Credit Sales	2.45	2.78	3.54	Reason is not required to be disclosed since movement is not more than 25%.
	Average Trade Receivables
(f) Trade Payable Turnover Ratio (in times)	Net Credit Purchases	20.41	10.27	18.52	This ratio is increased significantly in 2024 due to increase Purchases.
	Average Trade Payables
(g) Net capital turnover ratio (in times)	Turnover	4.69	5.75	6.64	Reason is not required to be disclosed since movement is not more than 25%.
	Net Working Capital
(h) Net profit ratio	Profit After Tax	9.71%	4.46%	4.30%	The ratio has been increasing due to increase in Profits Year on year and exponentially increase in 2024.
	Total Sales
(i) Return on Capital employed	Operating Profit	40.75%	22.89%	24.37%	This ratio is increased in the year 2024 due to higher Profits.
	Total Capital Employed
(j) Interest Service Coverage Ratio	EBIT	10.54	4.64	7.50	This ratio is decreased in 2023 due to increased Interest cost. Further during 2024, it got increased due to higher EBIT
	Total Interest Service

10. Misc. Disclosures:

Sr. No. Particulars	Note in financial statements
(i) Title deeds of Immovable Property not held in the name of the Company:	The Company do not have any Immovable property which is not held in the name of Company.
(ii) Loans or advances to specified persons	The Company has not provided any Loan or Advances to specified persons.
(iii) Details of Benami Property held	The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(iv) Borrowings secured against current assets	The Company has availed facilities from banks on the basis of security of current assets.
(v) Wilful Defaulter	The Company is not declared Wilful Defaulter by any Bank or any Financial Institution.
(vi) Relationship with Struck off Companies	The Company do not have any transactions with struck-off companies.
(vii) Undisclosed income	The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) Details of Crypto Currency or Virtual Currency	The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

RESULTS OF OUR OPERATION

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 2024, 2023 and 2022:

R in lakhs)

Particulars	For the Year Ended 31st March
	2024	% of Total Revenue	2023	% of Total Revenue	2022	% of Total Revenue
Revenue:
Revenue from Operations	14515.93	99.76%	11509.57	99.72%	10436.67	99.76%
Other income	35.53	0.24%	31.79	0.28%	25.00	0.24%
Total revenue	14551.46	100.00%	11541.36	100.00%	10461.67	100.00%
Expenses:
Cost of Material Consumed	10690.35	73.47%	9161.56	79.38%	8524.76	81.49%
Employees Benefit Expenses	932.11	6.41%	731.83	6.34%	649.47	6.21%
Office & Admin Expenses	95.01	0.65%	75.85	0.66%	49.73	0.48%
Selling & Distribution Expenses	92.68	0.64%	85.46	0.74%	69.54	0.66%
Finance costs	199.11	1.37%	196.48	1.70%	93.26	0.89%
Depreciation and Amortization	18.63	0.13%	12.27	0.11%	11.80	0.11%
Other expenses	642.26	4.41%	575.76	4.99%	457.77	4.38%
Total Expenses	12670.16	87.07%	10839.20	93.92%	9856.33	94.21%
Profit before exceptional and extraordinary items and tax	1881.30	12.93%	702.15	6.08%	605.34	5.79%
Exceptional Items
Profit before extraordinary items and tax	1881.30	12.93%	702.15	6.08%	605.34	5.79%
Extraordinary items
Profit before tax	1881.30	12.93%	702.15	6.08%	605.34	5.79%
Tax expense:
Current tax	503.05	3.46%	189.23	1.64%	154.74	1.48%
Deferred Tax	-1.81	-0.01%	-0.12	0.00%	-9.39	-0.09%
Net Total Tax Expenses	501.24	3.44%	189.11	1.64%	145.36	1.39%
Profit /(Loss) for the period from continuing operations	1380.06	9.48%	513.04	4.45%	459.99	4.40%

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factors” beginning on page 27 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

1. Disruption in our business process.

2. Our ability to successfully implement our strategy, our growth and expansion, technological changes.

3. Fail to attract, retain and manage the transition of our management team and other skilled & unskilled employees;

4. Our ability to protect our intellectual property rights and not infringing intellectual property rights of other parties;

5. Ability to respond to technological changes;

6. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

7. General economic and business conditions in the markets in which we operate and in the local, regional and national economies;

8. Our ability to effectively manage a variety of business, legal, regulatory, economic, social and political risks associated with our operations;

9. Recession in the market;

10. Changes in laws and regulations relating to the industries in which we operate;

11. Effect of lack of infrastructure facilities on our business;

12. Our ability to meet our capital expenditure requirements;

13. Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;

14. Failure to obtain any approvals, licenses, registrations and permits in a timely manner;

15. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

16. Occurrence of natural disasters or calamities affecting the areas in which we have operations;

17. Conflicts of interest with affiliated companies, the promoter group and other related parties;

18. The performance of the financial markets in India and globally;

19. Any adverse outcome in the legal proceedings in which we are involved;

20. Our ability to expand our geographical area of operation;

21. Concentration of ownership among our Promoters.

KEY COMPONENTS OF COMPANYS PROFIT AND LOSS STATEMENT Revenue from operations: Revenue from operations mainly consists from Sales of products.

Other Income: Other Income Consist of duty drawback claim, foreign exchange gain, other income and Interest Income.

Expenses: Companys expenses consist of, Cost of goods sold, Employee Benefit Expenses, Office & Admin Expenses, Selling & Distribution Expenses, Finance Cost, Depreciation Expenses & Other Expenses.

Cost of Goods Sold: Cost of Goods Sold consist of Opening Stock, Purchases and Direct Expenses & Closing Stock.

Employee Benefits Expense: Employee benefit expenses includes Salaries and Wages, Directors Remuneration & Contribution to Statutory Funds, staff welfare, other allowances, Gratuity Expenses etc.

Office & Admin Expenses: Office & Admin Expenses includes Electricity charges, Insurance, Printing & Stationery Expenses, Repair & Maintenance etc.

Selling & Distribution Expenses: Selling & Distribution Expenses includes Business Promotion expenses, Marketing Expenses, Rent Expenses, Tour & Travel Expenses etc.

Finance Cost: Finance Cost includes Interest paid on borrowings & Bank Charges.

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

Other Expenses: Other expenses include Labour Charges, Transportation Charges, Site Expenses, Hiring Charges, Computer Software expenses, Office Rent, Professional & Consultancy Charges etc.

FISCAL 2024 COMPARED WITH FISCAL 2023

Revenue from Operation

Revenue from operations had increased of 26.12% from Rs. 11,509.57 lakhs in Fiscal 2023 to Rs. 14515.93 lakhs in Fiscal 2024.

Rational for Increase in the Revenue from Operation for the financial year ended March 31, 2024:

1. Focus on Zero Liquid Discharge Services: The emphasis on providing services for effluent treatment plants with zero liquid discharge has been particularly lucrative, generating 60% of the total revenue. This specialized service likely commands higher margins compared to other services offered by company, contributing significantly to the increase in profits.

2. Expansion into Higher-Value Projects: By targeting projects above INR 8,000.00 Lakhs and incorporating advanced membrane-based technologies, such as Zero Liquid Discharge Systems, company has been able to increase its revenue and margins. This indicates a successful strategy to pursue projects with higher financial and technical requirements.

Other Income

Other income had increased from Rs31.79 lakhs in Fiscal 2023 to Rs35.53 lakhs in Fiscal 2024 due to increase in interest on deposits. The companys interest on deposits in the year 2023 was Rs17.45 lakhs which increased in the year 2024 to Rs35.53 lakhs.

Cost of Goods Sold

Cost of Goods Sold had increased by 16.69% from Rs9161.56 lakhs in Fiscal 2023 to Rs10690.35 lakhs in Fiscal 2024. This increase is due to corresponding increase in sales during Fiscal 2024.

Employee Benefit Cost

Employee benefit expenses had increased by 27.37% from Rs 731.83 lakhs in Fiscal 2023 to Rs 932.11 lakhs in Fiscal 2024. This increase was primarily due to increase in salaries & wages from Rs377.82 lakhs in Fiscal 202 3 to Rs 527.56 lakhs in Fiscal 2024, increase in directors remuneration from Rs320.00 lakhs in Fiscal 2023 to Rs360.00 lakhs in Fiscal 2024 & increase in Employers Contribution to PF from Rs12.49 lakhs in Fiscal 2023 to Rs23.15 lakhs in Fiscal 2024.

Office & Admin Expenses

Office & Admin expenses had increased by 25.27% form Rs75.85 lakhs in Fiscal 2023 to Rs95.01 lakhs in Fiscal 2024. This increase was primarily due to increase in Repair & Maintenance from Rs17.42 lakhs in Fiscal 2023 to Rs25.50 lakhs in Fiscal 2024, office expenses from Rs4.05 lakhs in Fiscal 2023 to Rs13.28 lakhs in Fiscal 2024 and printing & Stationery expenses from Rs9.58 lakhs in Fiscal 2023 to Rs18.91 lakhs in Fiscal 2024.

Selling & Distribution Expenses

Selling & Distribution Expenses had increased by 8.45% form Rs85.46 lakhs in Fiscal 2023 to Rs92.68 lakhs in Fiscal 2024. This increase was primarily due to increase in Marketing Expenses from Rs0.17 lakhs in Fiscal 2023 to Rs3.10 lakhs in Fiscal 2024 and Business promotion expenses from Rs5.70 lakhs in Fiscal 2023 to Rs13.89 lakhs in Fiscal 2024.

Finance Cost

Finance Cost had increased by 1.34% from Rs196.48 lakhs in Fiscal 2023 to Rs199.11 lakhs in Fiscal 2024. This increase was primarily due to increase in Interest on unsecured borrowings from Rs27.30 lakhs in Fiscal 2023 to Rs55.02 lakhs in Fiscal 2024.

Depreciation and Amortization

Depreciation had increased by 51.89% from Rs12.27 lakhs in Fiscal 2023 to Rs18.63 lakhs in Fiscal 2024. This was primarily due to capex of Rs32.50 lakhs made by company during Fiscal 2024.

Other Expenses

Other expenses had increased by 11.55% from Rs575.76 lakhs in Fiscal 2023 to Rs642.26 lakhs in Fiscal 2024. The increase was primarily due to increase in transportation expenses by Rs67.56 lakhs, hiring charges by Rs10.41 lakhs, labour charges by Rs125.84 lakhs, computer software expenses by Rs13.73 lakhs etc. in Fiscal 2024.

Tax Expenses

The Companys tax expenses had increased by ^312.13 lakhs from Rs189.11 lakhs in the Fiscal 2023 to Rs501.24 lakhs in Fiscal 2024. This was primarily due to increase in current tax expenses during the year which got increased from Rs189.23 Lakhs in the year 2023 to Rs503.05 lakhs in the year 2024.

Profit After Tax

After accounting for taxes at applicable rates, our Company reported a net profit of Rs1,380.06 lakhs in Fiscal 2024 as compared to a net profit of Rs513.04 lakhs in Fiscal 2023 which got increased due to higher revenue from operation at increased margins and reduction in operating expenses due to increased operational efficiency during the year.

Rational for Increase in the Profit after Tax for the financial year ended March 31, 2024:

1. Focus on Zero Liquid Discharge Services: The emphasis on providing services for effluent treatment plants with zero liquid discharge has been particularly lucrative, generating 60% of the total revenue. This specialized service likely commands higher margins compared to other services offered by company, contributing significantly to the increase in profits.

2. Expansion into Higher-Value Projects: By targeting projects above INR 8,000.00 Lakhs and incorporating advanced membrane-based technologies, such as Zero Liquid Discharge Systems, company has been able to increase its revenue and margins. This indicates a successful strategy to pursue projects with higher financial and technical requirements.

3. Improved Bargaining Power: With higher project values, companys bargaining power has strengthened, allowing for better negotiation of supplies and contract values. This has resulted in a further increase in margins.

4. Efficient Design and Engineering Team: Having an in-house team that is both efficient and effective in design and engineering has helped in reducing costs, thereby contributing to higher margins.

5. Lower Finance Costs: By optimizing the utilization of credit limits (CC limits), company has managed to reduce finance costs, further enhancing profitability.

FISCAL 2023 COMPARED WITH FISCAL 2022

Revenue from Operation

At the outset of FY 22-23, although the company possessed a very promising order book, including export orders, there was only marginal growth in revenue from operations in Fiscal 2023 compared to Fiscal 2022. This was primarily attributed to two factors:

1. Increased utilization of available banking limits as bank guarantees for project commitments: Despite the absence of a corresponding increase in the banks sanctioned guarantee limit, the company managed to effectively leverage its existing bank guarantee limit. This allowed the company to bid for projects and secure commitments, thereby contributing to the growth in revenue.

2. Delays in the sanction of additional limits for project execution by the bank due to internal issues: The company was able to maintain growth, however at a reduced rate, as the available banking limits remained the same as FY 21 - 22 at 33.6 Cr. The bank enhanced the limits to 47 Cr at the end of FY 22-23 (on 28th March 2023).

Although the rate of growth was marginal in FY 22-23, the company has further increased its order book for the next year due to its technical eligibility. By bidding for high-value projects beyond 10,000.00 lakh single project value, with

advanced membrane technologies and Zero Liquid Discharge Systems with high-profit margins, the company has been able to execute projects with high margins in FY 23-24, leading to increased PAT margins.

This trend is expected to continue in the years to come, considering the increase in eligibility criteria of the company, allowing it to bid for projects with values over 25,000.00 Lakhs, and the increase in banking limits through the addition of a new bank to the existing.

Other Income

Other income had increased from Rs25.00 lakhs in Fiscal 2022 to ^31.79 lakhs in Fiscal 2023 due to increase in interest on deposits and foreign exchange gain. The companys interest on deposits in the year 2022 was Rs14.83 lakhs which increased in the year 2023 to Rs17.45 lakhs. Further in the year 2023 the company had earned foreign exchange gain amounting to Rs14.31 lakhs which was Rs2.04 lakhs in the fiscal year 2022.

Cost of Goods Sold

Cost of Goods Sold had increased by 7.47% from Rs8,524.76 lakhs in Fiscal 2022 to Rs9,161.56 lakhs in Fiscal 2023. This increase is due to corresponding increase in sales during Fiscal 2023.

Employee Benefit Expenses

Employee benefit expenses had increased by 12.68% from Rs649.47 lakhs in Fiscal 2022 to Rs731.83 lakhs in Fiscal 2023. This increase was primarily due to increase in salaries & wages from Rs293.06 lakhs in Fiscal 2022 to Rs377.82 lakhs in Fiscal 2023, increase in directors remuneration from Rs316.00 lakhs in Fiscal 2022 to Rs320.00 lakhs in Fiscal 2023 & increase in Employers Contribution to PF from Rs8.50 lakhs in Fiscal 2022 to Rs12.49 lakhs in Fiscal 2023.

Office & Admin Expenses

Office & Admin expenses had increased by 52.53% form Rs49.73 lakhs in Fiscal 2022 to Rs75.85 lakhs in Fiscal 2023. This increase was primarily due to increase in Repair & Maintenance from Rs8.12 lakhs in Fiscal 2022 to Rs17.42 lakhs in Fiscal 2023 and Electricity charges from Rs9.32 lakhs in Fiscal 2022 to Rs12.80 lakhs in Fiscal 2023.

Selling & Distribution Expenses

Selling & Distribution Expenses had increased by 22.89% form Rs69.54 lakhs in Fiscal 2022 to Rs85.46 lakhs in Fiscal 2023. This increase was primarily due to increase in Traveling Expenses from Rs27.08 lakhs in Fiscal 2022 to Rs55.43 lakhs in Fiscal 2023 and Lodging & Boarding from Rs7.32 lakhs in Fiscal 2022 to Rs12.00 lakhs in Fiscal 2023.

Finance Cost

Finance Cost had increased by 110.68% from Rs93.26 lakhs in Fiscal 2022 to Rs196.48 lakhs in Fiscal 2023. This increase was primarily due to increase in Interest on borrowings from Rs54.18 lakhs in Fiscal 2022 to Rs108.59 lakhs in Fiscal 2023 and increase in the bank charges from Rs29.74 lakhs in Fiscal 2022 to Rs81.41 lakhs in Fiscal 2023.

Depreciation and Amortization Expenses

Depreciation had increased by 3.97% from ^11.80 lakhs in Fiscal 2022 to Rs12.27 lakhs in Fiscal 2023. This was primarily due to capex of Rs27.75 lakhs made by company during Fiscal 2023.

Other Expenses

Other expenses had increased by 25.90% from Rs457.77 lakhs in Fiscal 2022 to Rs575.76 lakhs in Fiscal 2023. The increase was primarily due to increase in transportation expenses by Rs66.54 lakhs, hiring charges by Rs26.62 lakhs, computer software expenses by Rs8.95 lakhs, donations by Rs8.70 lakhs etc. in Fiscal 2023.

Tax Expenses

The Companys tax expenses had increased by Rs43.76 lakhs from Rs145.36 lakhs in the Fiscal 2022 to Rs189.11 lakhs in Fiscal 2023. This was primarily due to increase in current tax expenses during the year which got increased from Rs15 4.74 Lakhs in the year 2022 to Rs189.23 lakhs in the year 2023.

Profit after Tax

After accounting for taxes at applicable rates, our Company reported a net profit of Rs513.04 lakhs in Fiscal 2023 as compared to a net profit of Rs459.99 lakhs in Fiscal 2022 which got increased due to higher revenue from operation at increased margins and reduction in operating expenses due to increased operational efficiency during the year.

CASH FLOWS

Cash Flows

Particulars	March 31, 2024	March 31, 2023	March 31, 2022
Net Cash from Operating Activities	511.96	(466.97)	445.97
Net Cash from Investing Activities	(90.12)	(240.10)	(368.46)
Net Cash from Financing Activities	(415.68)	400.42	55.38

Cash Flows from Operating Activities

For the financial year ended March 31, 2024

Our net cash used from operating activities was ^511.96 Lakhs for the financial year ended March 31, 2024. Our operating profit before working capital changes was Rs 2,044.89 Lakhs for the financial year ended March 31, 2024 which was primarily adjusted against income tax of Rs188.89 Lakhs, decrease in inventories Rs 126.68 Lakhs, increase in trade receivables Rs (1,524.64) Lakhs, decrease in short term loans & advances Rs 46.01 Lakhs, increase in other current assets Rs (357.36) Lakhs, increase in trade payables Rs 438.70 Lakhs, decrease in other current liabilities Rs (73.43) Lakhs.

For the financial year ended March 31, 2023

Our net cash used from operating activities was Rs (466.97) Lakhs for the financial year ended March 31, 2023. Our operating profit before working capital changes was Rs 896.98 Lakhs for the financial year ended March 31, 2023 which was primarily adjusted against income tax of Rs152.53 Lakhs, decrease in inventories Rs14.79 Lakhs, increase in trade receivables Rs (2,046.23) Lakhs, decrease in short term loans & advances Rs 20.04 Lakhs, decrease in other current assets Rs 119.83 lakhs, increase in trade payables Rs 452.63 Lakhs, increase in other current liabilities Rs 227.51 Lakhs.

For the financial year ended March 31, 2022

Our net cash used from operating activities was Rs 445.97 Lakhs for the financial year ended March 31, 2022. Our operating profit before working capital changes was Rs 699.75 Lakhs for the financial year ended March 31, 2022 which was primarily adjusted against income tax of Rs 49.28 Lakhs, increase in inventories Rs (309.05) Lakhs, increase in trade receivables Rs (346.78) Lakhs, decrease in short term loans & advances Rs 87.10 Lakhs, increase in other current assets Rs (305.27) lakhs, increase in trade payables Rs 806.78 Lakhs, decrease in other current liabilities Rs (137.28) Lakhs.

Cash Flows from Investment Activities

For the financial year ended March 31, 2024

Our net cash flow from investing activities was Rs (90.12) lakhs. This was mainly on account of Purchase of fixed assets of Rs (32.50) lakhs, interest received of Rs 35.53 lakhs, increase in non-current investments by Rs (82.12) and increase in noncurrent assets by Rs (11.03).

For the financial year ended March 31, 2023

Our net cash flow from investing activities was Rs (240.10) lakhs. This was mainly on account of Purchase of fixed assets of Rs (27.75) lakhs, interest received of Rs 17.45 lakhs, increase in non-current investments by Rs (197.61) and increase in non-current assets by Rs (32.19).

For the financial year ended March 31, 2022

Our net cash flow from investing activities was Rs (368.46) lakhs. This was mainly on account of Purchase of fixed assets of Rs (12.46) lakhs, interest received of Rs 14.83 lakhs, increase in non-current investments by Rs (251.68) and increase in non-current assets by Rs (119.15).

Cash Flows from Financing Activities

For the financial year ended March 31, 2024

Our net cash flow from financing activities was t (415.68) lakhs. This was on account of repayment of Long-Term borrowings of t (216.57) and interest paid of t (199.11) lakhs.

For the financial year ended March 31, 2023

Our net cash flow from financing activities was t 400.42 lakhs. This was on account of proceeds from Long Term borrowings of t 596.90 lakhs and interest paid of t (196.48) lakhs.

For the financial year ended March 31, 2022

Our net cash flow from financing activities was 55.38 lakhs. This was on account of proceeds from Long Term borrowings of t 148.64 lakhs and interest paid of t (93.26) 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 171 of this 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

There are no qualifications in the audit report that require adjustments in the Restated Financial Statements.

QUALITATIVE DISCLOSURE ABOUT MARKET RISK Financial Market Risks

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risk

Our financial results are subject to changes in interest rates, which may affect our debt service obligations in future and our access to funds.

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

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

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 “RestatedFinancial Statements” beginning on page 171 of this 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 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

Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Companys operations or are likely to affect income from continuing operations except as described in chapter titled “Risk Factors beginning on page 27 of this Red Herring Prospectus.

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 27 and 174 of this 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 27 of this 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 2023-24 compared with financial year 2022-23 and Financial Year 2022-23 Compared with Financial Year 2021-22” above.

Significant dependence on a single or few Suppliers or Customers

Significant proportion of our purchases have historically been derived from a limited number of suppliers. The % of Contribution of our suppliers vis a vis the total purchases for the financial year ended March 31, 2024, 2023 and 2022 are as follows:

(Z in Lakhs, otherwise mentioned)

Particulars	Suppliers
	March 31, 2024		March 31, 2023		March 31, 2022
	Amount	%	Amount	%	Amount	%
Top 5	2,634.64	24.94	1,231.55	14.17	3,396.33	40.09
Top 10	4007.37	37.94	1,858.76	20.32	4,253.90	48.15

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 total revenue for the financial year ended March 31, 2024, 2023 and 2022 are as follows:

(Z in Lakhs, otherwise mentioned)

Particulars	Customer
	March 31, 2024		March 31, 2023		March 31, 2022
	Amount	%	Amount	%	Amount	%
Top 5	12,696.43	87.47	8,256.04	71.73	9,000.57	86.23
Top 10	14,245.31	98.14	11,091.96	96.37	10,303.75	98.71

Status of any publicly announced new products or business segments

Please refer to the chapter titled “Our Business” beginning on page 117 of this 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

We operate in a competitive atmosphere. Some of our competitors may have greater resources than those available to us. While product quality, brand value, distribution network, etc are key factors in client decisions among competitors, however, reliability and competitive pricing is the deciding factor in most cases. We face fair competition from both organized and unorganized players in the market.

We believe that our experience, and reliability record with our customers will be key to overcome competition posed by such organized and unorganized players. Although, a competitive market, there are not enough number of competitors offering services similar to us. We believe that we are able to compete effectively in the market with our quality of services and our reputation. We believe that the principal factors affecting competition in our business include client relationships, reputation, and the relative quality and price of the services.