Elfin Agro India Ltd Management Discussions

OF FINANCIAL CONDITIONS AND

RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements for the financial year ended on 31^st March 2025, 31^st March 2024 and 31^st March 2023 including the notes and significant accounting policies thereto and the reports thereon, which appear elsewhere in this Draft prospectus. You should also see the section titled "Risk Factors" beginning on page 23 of this Draft prospectus, which discusses a number of factors and contingencies that could impact our financial condition and results of operations. The following discussion relates to our Company, unless otherwise stated, is based on restated audited financial statements.

These financial statements have been prepared in accordance with Ind GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated September 27, 2025 which is included in this Draft prospectus under the section titled "Financial Information as Restated" beginning on page 190 of this Draft prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 23 and 15 respectively, and elsewhere in this draft prospectus

Accordingly, the degree to which the financial statements in this draft prospectus will provide meaningful information depends entirely on such potential investors level offamiliarity with Indian accounting practices. Our F.Y. ends on March 31 of each year; therefore, all references to a particular fiscal are to the twelve-month period ended March 31 of that year. Please also refer to section titled "Certain Conventions, Use of Financial, Industry and Market Data and Currency Presentation" beginning on page 13 of this draft prospectus.

BUSINESS OVERVIEW

Our company was originally incorporated as a Private Limited Company under the name "Ravija Sulz Private Limited" on July 28, 2009, in accordance with the Companies Act, 1956 bearing Corporate Identification Number U17119RJ2009PTC029463 issued by Registrar of Companies - Rajasthan. Subsequently the name of our company was changed to "Elfin Agro India Private Limited" vide a fresh Certificate of Incorporation consequent upon Change of Name dated June 05, 2012 bearing Corporate Identification Number U15132RJ2009PTC029463 issued by Registrar of Companies - Rajasthan. Subsequently on November 18, 2024, our company got converted into a public limited company, resulting in a name change to "Elfin Agro India Limited" vide a fresh Certificate of Incorporation consequent upon conversion from Private Company to Public Company bearing Corporate Identification Number U15132RJ2009PLC029463, issued by the Registrar of Companies, Central Processing Centre. Our Company has a vision of establishing a prominent presence in the food processing sector across India. Guided by the expert leadership of Mr. Vimal Kumar Daga and Mr. Deepak Pal Daga, with assistance from Mr. Ayush Daga, our Company has earned a reputation for excellence in product quality, customer satisfaction, and operational efficiency.

Our Company is primarily engaged in the business of manufacturing of Chakki Atta (High fibre whole wheat flour), R Atta (Refined whole wheat flour), Tandoori Atta (Specialized flour), Sooji (Semolina flour), Maida (Refined Flour) and yellow mustard oil. As on the date of this draft prospectus, our Company has two manufacturing units that are situated at Bhilwara, Rajasthan:

(iii) Flour Processing Unit that houses two divisions viz., Chakki Atta (High fibre whole wheat flour) division and a separate division, i.e., Refined Flour division for manufacturing and processing of R Atta (Refined whole wheat flour), Tandoori Atta (Specialized flour), Maida (Refined Flour) and Sooji (Semolina flour); and

(iv) Mustard oil Processing Unit for manufacturing and processing of Mustard Oil

We sell processed wheat flour under our brand "Shiv Nandi" and "ELFINS Shri Shyam BHOG" to wholesalers and retailers across Rajasthan, Uttar Pradesh, Gujarat, etc. We meticulously select premium quality wheat as our raw material in our Flour Processing unit. Our Company is also engaged in the extraction, filtering and manufacturing of Edible mustard oil from raw mustard seeds, being the raw material used for its production. Edible mustard oil is sold under our brand "Shiv Nandi".

We also engage in the trading of certain agro-products, including Chana, Maize, Soyabean Refined Oil, Rice Bran Refined Oil, Wheat, cattle feed, groundnut oil etc based on the prevailing market conditions. This not only allows us to augment our revenues and minimize product and inventory wastage but also enables us to capitalize on market opportunities by selling goods for which certain consumers are willing to pay premium prices. Our Company aims at achieving minimal wastage in our manufacturing units, wherein waste material/ or the by-products viz., wheat bran generated during the manufacturing process from our flour processing unit is sold as cattle feed and Mustard Seed Oil Cake is sold to nearby De-Oiled Cake (DOC) plants. Wheat Bran generated at our Flour Processing Unit is primarily sold in the states of Uttar Pradesh, Uttarakhand, Haryana, Rajasthan, Gujarat and Punjab and the Union Territory of Chandigarh while mustard oil cakes generated at our Mustard oil Processing Unit are sold to de-oiled plants located in the states of Rajasthan and Gujarat. Therefore, in this manner we commercialise all the by-products as well as waste material generated at our Manufacturing Units. Further, leftover bags in which the raw material is packed and dispatched to us, are either re-used by our Company in its manufacturing operations or for packing of finished products. However, if the aforementioned bags are torn or are unfit for reuse, we sell such bags to ensure effective waste management. Some of the activities carried out at our processing units including but not limited to, loading, un-loading, packaging, etc. are outsourced to contractors who charge us on a per head basis of the labourers deployed by them at our facilities. We also procure groundnut oil in bulk tankers form third part suppliers and repackage it into smaller containers. This strategic initiative has been undertaken to enhance brand visibility and diversify our range of edible oil products.

In the Financial Years 2024 and 2025, our Company had entered into an agreement, wherein our Company undertook manufacturing of Atta under the label "Bharat Atta" for National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and supplying the same to its various Government Institutional buyers and NAFED specified delivery points.

Our company emphasizes high-quality manufacturing and adheres to various standards. We believe that we have established our brands as the preferred home consumption brands for wheat flour, refined flour and various edible oils. We have a successful track record which has enabled us to develop an effective business model with stringent control over processes, including raw material procurement, manufacturing operations, inventory management and management of distribution logistics. We adhere to stringent product quality standards and closely track consumer preferences across segments from cross-section of markets.

Our Flour processing unit at F-250 and F-251 RIICO Growth Centre, Bhilwara, ("RIICO Land") started operating in the financial year 2013. Our Company had an initial installed capacity of upto 36,500 MTPA for flour processing. Later on, in the year 2023, 1 Roller Flour Mill Machine was installed with an installed capacity of 10,950 MTPA. Presently the total installed capacity of the unit is 47,450 MTPA.

In the year 2019, our Company had purchased a Dal Processing Unit at Plot No. G1-407 & G1-408, RIICO Growth Centre, Bhilwara ("RIICO Land") vide an auction conducted by Bank of Baroda and had commenced commercial production in the financial year 2020. Our Company has discontinued operations in the said Mill since 2022 on account of low margins.

Further in the year 2022 our Company had installed the Mustard oil Processing Unit at F-252 and F-253 RIICO Growth Centre, Bhilwara, ("RIICO Land"). The commercial production in the said unit commenced in the year 2023 and has been operating with an installed capacity of 18,250 MTPA till date.

Our facilities, i.e., Flour processing unit at F-250 and F-251 RIICO Growth Centre, Bhilwara, and Mustard oil Processing Unit at F-252 and F-253 RIICO Growth Centre, Bhilwara also serves as our registered office. Having both manufacturing units in close proximity within the same complex is highly advantageous, providing us with significant cost-efficiencies both logistically and commercially. This setup allows for streamlined operations and effective resource management. Our facilities, i.e., Flour processing unit at F-250 and F-251 RIICO Growth Centre, Bhilwara, and Mustard oil Processing Unit at F-252 and F-253 RIICO Growth Centre, Bhilwara also serves as our registered office. Having both manufacturing units in close proximity within the same complex is highly advantageous, providing us with significant cost-efficiencies both logistically and commercially. This setup allows for streamlined operations and effective resource management. Our facilities are strategically located to optimise the sourcing of our raw materials and to enable efficient logistics management. Our facilities are highly automated, equipped with the necessary tools, machineries, other equipments and amenities, to support a seamless and hassle-free production process of cleaning, drying, grading, grinding, storage, packaging, Quality testing, etc., thereby helping us significantly increase production efficiencies while ensuring quality of our products.

As on the date of this draft prospectus, our clientele is spread across 8 states which include Gujarat, Haryana, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand and 2 Union Territories which include

Chandigarh and Delhi. Our Company adopts a diversified network through which it markets and sells its products. Our customer/distributor base is divided into four categories namely, B2B Clients, wholesalers retailers and direct consumers.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD

In the opinion of the Board of Directors of our Company, since the date of the last audited period i.e. March 31, 2025 as disclosed in this Draft Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as follows:

1. The Board of Directors have decided to get their equity shares listed on SME Platform of BSE Limited and pursuant to Section 62(1)(c) of the Companies Act 2013, by a resolution passed at its meeting held on September 11, 2025 proposed the Issue, subject to the approval of the shareholders and such other authorities as may be necessary.

2. The shareholders of the Company have, pursuant to Section 62(1)(c) of the Companies Act 2013, by a special resolution passed in the Extra Ordinary General Meeting held on September 15, 2025 authorized the Initial Public Offer.

KEY FACTORS AFFECTING OUR RESULTS OF OPERATION

• Changes in laws and regulations relating to the Sectors in which we operate;

• Political instability or changes in the Government in India or in the government of the states where we operate could cause us significant adverse effects;

• Our operations are dependent on the supply of raw materials. Inadequate or interrupted supply and price fluctuation of our raw materials and packaging materials could adversely affect our business, results of operations, cash flows, profitability and financial condition. Any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse effect on our business and results of operations, and seasonable variations could also result in fluctuations in our results of operations;

• Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;

• Any failure to comply with the financial and restrictive covenants under our financing arrangements;

• Our ability to retain and hire key employees or maintain good relations with our workforce;

• Impact of any reduction in sales of our products;

• Increased competition in industries/sector in which we operate;

• Our ability to expand our geographical area of operation;

• Any slowdown or interruption to our manufacturing operations or under-utilization of our existing or future manufacturing facilities may have an adverse impact on our business and financial performance;

• The improper handling, processing or storage of raw materials or products, or spoilage of and damage to such raw materials and products, or any real or perceived contamination in our products, could subject us to regulatory and legal action, damage our reputation and have an adverse effect on our business, results of operations and financial condition;

• Our business is dependent on our distribution network. An inability to expand or effectively manage our distribution network, or any disruptions in our distribution network may have an adverse effect on our business, results of operations, financial condition and cash flows;

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

• We are required to obtain licenses and approvals under several legislations. Our inability to obtain or renew such permits, approvals and licenses in the ordinary course of our business may adversely affect our business, financial

condition and results of operations;

• Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition;

• Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability;

• The performance of the financial markets in India and globally; and

• Global distress due to pandemic, war or by any other reason.

FINANCIAL KPIS OF THE COMPANY:

( in lakhs except percentage and ratios)

Particulars	31-03-2025	31-03-2024	31-03-2023
Total Income	14,643.97	12,471.04	10,145.27
Growth (%)	17.42%	22.92%	59.78%
Revenue from Operation	14,586.34	12,445.92	10,139.02
EBITDA (Operating Profit)	753.66	582.46	311.33
EBITDA Margin (%)	5.17%	4.68%	3.07%
PAT	507.79	367.66	180.72
Growth (%)	38.11%	103.44%	90.68%
PAT Margin (%)	3.48%	2.95%	1.78%
EPS (Basic & Diluted) - (As per end of Restated period)	3.60	26.08	12.82
EPS (Basic & Diluted) - (Post Bonus with retrospective effect)	3.60	2.61	1.28
Total Borrowings	1218.76	759.81	722.59
Total Net Worth (TNW)	1377.80	870.01	502.35
RONW (%)	36.86%	42.26%	35.98%
ROCE(%)	47.93%	52.13%	31.14%
Debt Equity Ratio (Total Borrowing/TNW)	0.88	0.87	1.44

SUMMARY OF THE RESULTS OF OPERATION:

The following table sets forth select financial data from restated profit and loss accounts for the financial years ended on 31st March 2025, 31st March 2024 and 31st March 2023 and the components of which are also expressed as a percentage of total income for such periods.

(Z in lakhs except as otherwise mention)

	For the period ended
Particulars	As at 31-03-2025	% of Total Turnover	As at 31-03-2024	% of Total Turnover	As at 31-03-2023	% of Total Turnover
Income
Revenue from Operations	14,586.34	99.61%	12,445.92	99.80%	10,139.02	99.94%
Other Income	57.64	0.39%	25.12	0.20%	6.24	0.06%
Total Income	14,643.97	100.00%	12,471.04	100.00%	10,145.27	100.00%
Expenditure
Cost of Material Consumed	10,117.53	69.09%	9,387.85	75.28%	6,738.83	66.42%
Purchase of Stock-in-Trade	2,956.59	20.19%	1,739.41	13.95%	2,382.61	23.48%
Change in Inventories	39.32	0.27%	(35.05)	-0.28%	(55.24)	-0.54%
Employee Benefit Expenses	94.45	0.64%	103.76	0.83%	114.38	1.13%
Other Expenses	622.87	4.25%	666.69	5.35%	645.59	6.36%
Total Expenses	13,830.76	94.45%	11,862.65	95.1 2%	9,826.18	96.85%
Profit Before Interest, Depreciation and Tax	813.21	5.55%	608.38	4.88%	319.09	3.15%
Depreciation & Amortisation Expenses	48.70	0.33%	40.40	0.32%	27.86	0.27%
Profit Before Interest and Tax	764.51	5.22%	567.99	4.55%	291.24	2.87%
Financial Charges	85.91	0.59%	72.10	0.58%	32.42	0.32%
Profit before Taxation	678.60	4.63%	495.89	3.98%	258.81	2.55%
Provision for Taxation	160.02	1.09%	123.45	0.99%	68.71	0.68%
Provision for Deferred Tax	10.79	0.07%	4.78	0.04%	9.38	0.09%
Total	170.81	1.17%	128.22	1.03%	78.09	0.77%
Profit After Tax but Before Extraordinary Items	507.79	3.47%	367.66	2.95%	180.72	1.78%
Extraordinary Items	-	-	-	-	-	-
Net Profit after adjustments	507.79	3.47%	367.66	2.95%	180.72	1.78%
Net Profit Transferred to Balance Sheet	507.79	3.47%	367.66	2.95%	180.72	1.78%

In the Fiscal 2025, Fiscal 2024 and Fiscal 2023, we generated total income of RS. 14,643.97 Lakhs, RS. 12,471.04 Lakhs and RS. 10,145.27 Lakhs respectively, EBITDA (operating profit) of RS. 753.66 Lakhs, RS. 582.46 Lakhs and RS. 311.33 Lakhs respectively and net profit after tax of RS. 507.79 Lakhs, RS. 367.66 Lakhs and RS. 180.72 respectively. We have

reported Return on Net Worth of 36.86%, 42.26% and 35.98% for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Revenue from operations grew from RS. 10,139.02 Lakhs in FY 2022-23 to RS. 14,586.34 Lakhs in FY 2024-25, marking an increase of RS.4,447.31 Lakhs (43.86% for the said period). Correspondingly, Profit After Tax (PAT) surged from RS.180.72 Lakhs to RS.507.79 Lakhs, as per the restated financial statements. This strong performance was mainly due to increase in demand of our products among different customers across multiple states, this has been a key factor driving the overall growth in both revenue and profitability. These factors are discussed in detail in this chapter.

Details of Revenue from Operations:

(Z in lakhs)

Particulars	March 31, 2025		March 31, 2024		March 31, 2023
	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
Sale from Manufacturing Activities	11,600.56	79.53%	10,324.44	82.95%	7,459.59	73.57%
Sale from Trading Activities	2,985.78	20.47%	2,121.48	17.05%	2,679.44	26.43%
Sale from Service Activities	-	-	-	-	-	-
Total	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%

Details of Product wise Revenue:

( in lakhs)

	March 31, 2025		March 31, 2024		March 31, 2023
Particulars	Amount	% of Total Turnover	Amount	% of Total Turnove r	Amount	% of Total Turnover
Sale from Manufacturing Activities
Aata	2,613.69	17.92%	2,374.50	19.08%	1,070.22	10.56%
Bran	2,141.09	14.68%	2,001.56	16.08%	1,605.96	15.84%
Chana	-	0.00%	6.02	0.05%	476.08	4.70%
Maida	3,987.27	27.34%	3,652.50	29.35%	3,301.42	32.56%
Mustard Oil	1,912.83	13.11%	1,171.20	9.41%	465.83	4.59%
Mustard Oil Cake	642.20	4.40%	584.94	4.70%	192.36	1.90%
Sooji	303.48	2.08%	377.47	3.03%	347.72	3.43%
Wheat Daliya	-	0.00%	156.23	1.26%	-	0.00%
Total Sale from Manufacturing Activities	11,600.56	79.53%	10,324.44	82.95%	7,459.59	73.57%
Sale from Trading Activities
Chana	1,216.45	8.34%	899.71	7.23%	1,815.30	17.90%
Makka	4.71	0.03%	9.43	0.08%	-	0.00%
Mustard Seeds	-	0.00%	9.81	0.08%	56.42	0.56%
Packing Material	3.66	0.03%	6.77	0.05%	1.20	0.01%
Refined Oil	276.33	1.89%	92.63	0.74%	-	0.00%
Wheat	1,126.07	7.72%	1,084.20	8.71%	806.52	7.95%
Groundnut Oil	183.18	1.26%	-	0.00%	-	0.00%
Mustard Oil	175.38	1.20%	-	0.00%	-	0.00%
Cattle Feed	-	0.00%	18.95	0.15%	-	0.00%
Total Sale from Trading Activities	2,985.78	20.47%	2,121.48	17.05%	2,679.44	26.43%
Total Turnover	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%

Details of Geography-wise Revenue

( in lakhs)

	March 31, 2025		March 31, 2024		March 31, 2023
Particulars	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
Domestic	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%
Exports	-	0.00%	-	0.00%	-	0.00%
Total	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%

Details of Country-wise Turnover

(Z in lakhs)

	March 31, 2025		March 31, 2024		March 31, 2023
Country	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
India	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%
Total of Revenue	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%

Details of State-wise Turnover

( in lakhs)

	March 31, 2025		March 31, 2024		March 31, 2023
State	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
Rajasthan	8,880.69	60.88%	6,968.42	55.99%	4,046.66	39.91%
Gujarat	3,356.90	23.01%	3,029.22	24.34%	1,950.78	19.24%
Uttar Pradesh	1,053.61	7.22%	1,428.48	11.48%	1,309.24	12.91%
Haryana	794.54	5.45%	301.04	2.42%	935.25	9.22%
Madhya Pradesh	308.35	2.11%	144.07	1.16%	406.05	4.00%
Maharashtra	151.22	1.04%	533.47	4.29%	1,059.23	10.45%
Delhi	23.14	0.16%	-	-	412.76	4.07%
Uttarakhand	17.87	0.12%	19.39	0.16%	-	-
Chandigarh	-	-	3.44	0.03%	-	-
Jammu & Kashmir	-	-	-	-	-	-
Punjab	-	-	18.39	0.15%	19.04	0.19%
Total	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%

Details of Sector-wise Turnover

( in Lakhs)

	March 31, 2025		March 31, 2024		March 31, 2023
	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
Government	48.46	0.33%	-	-	-	-
Private	14,537.88	99.67%	12,445.92	100.00%	10,139.02	100.00%
Total of Revenue	14,586.34	100.00%	12,445.92	100.00%	10,139.02	100.00%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT Total Income

Our total income comprises of Revenue from Operations and Other Income.

Revenue from Operations

Our operational revenue is primarily generated from the Sales from manufacturing and trading activities of products like Aata, Bran, Chana, Maida, Mustard Oil, Mustard Oil Cake, Sooji, Wheat Daliya, Makka, Mustard Seeds, Packing Material, Refined Oil, Wheat, Groundnut Oil, Mustard Oil, Cattle Feed etc.

Other Income

Our other income comprises of Other Interest Income, GST Subsidy, Income From Rent and Electricity duty subsidy RIPS.

Expenditure

Our total expenditure primarily consists of Cost of Materials Consumed, Purchase of Stock-In-Trade, Change in Inventory of Traded Goods, Employees Benefit Expenses, Other Expenses, Depreciation & Amortization Expenses and Financial Charges.

Cost of Materials Consumed

Cost of Material Consumed consists of cost of material consumed, purchases of raw materials and closing stock. Purchases of Stock-in-trade

Purchases of Stock-in-trade comprises of Purchase of Stock In trade.

Changes in Inventories

Changes in Inventories comprises of difference in opening and closing balance of Finished Goods & WIP.

Employee Benefit Expenses

Employee benefit expenses comprise of Salary and Wages and Other Allowances, Director Remuneration, Contribution to EPF, Contribution to ESI, Staff Welfare Expenses and Provision/ (reversal of provision) for Gratuity (As per Actuary Valuation).

Financial Charges

Financial Charges comprises of Bank Charges, Interest on Term Loan, Interest on CC/OD and Interest to Others.

Depreciation and Amortization Expenses

Depreciation and Amortization Expenses comprises of depreciation on the Tangible/Intangible assets of our company.

Other Expenses

Other Expenses comprises of Power and Fuel, Repair and Maintenance -Building, Repair and Maintenance -Plant and Machine, Labour Charges, Transportation Charges, Dami Expenses, Chemical Expenses, Total of Direct Manufacturing Expenses, Administrative Expenses, Printing & stationary, Licence Fees, Postage Expenses, Telephone & Mobile Expenses, Travelling Expenses, Office Expenses & Misc. Expenses, Legal & Professional expenses, Audit Fees, Insurance Expenses, Conveyance, Rent, Water Expenses, Petrol & Diesel, Toll Expenses, Web Services, TDS/TCS, Interest, GST Penalty, Round Off, GST reversal Expenses, Sitting Fees, Solar Inspection Charges, Total of Administrative Expenses, Selling & Distribution Expenses, Agency Commission, Cash Discount, Advertisement and Conference Exp., Freight & Forwarding & Weight Shortage Expenses.

Provision for Taxation

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.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2025 WITH FISCAL 2024

Particulars	For the year ended 31-03-2025	% of Total Income	For the year ended 31-03-2024	% of Total Income	Total Increase/ (Decrease) in comparison to previous FY	% Increase/ (Decrease)	Reasons/Justi fication for increase/(decr ease)
Income
Revenue from Operations	14,586.34	99.61%	12,445.92	99.80%	2,140.42	17.20%	Refer Note-1
Other Income	57.64	0.39%	25.12	0.20%	32.52	129.44%	Refer Note-2
Total Income	14,643.97	100.00%	12,471.04	100.00%	2,172.94	17.42%	Refer Note-3
Expenditure
Cost of Material Consumed	10,117.53	69.09%	9,387.85	75.28%	729.68	7.77%	Refer Note-4
Purchase of Stock-in-Trade	2,956.59	20.19%	1,739.41	13.95%	1,217.19	69.98%	Refer Note-5
Change in Inventories	39.32	0.27%	(35.05)	-0.28%	74.36	-212.18%
Employee Benefit Expenses	94.45	0.64%	103.76	0.83%	(9.31)	-8.97%	Refer Note-6
Other Expenses	622.87	4.25%	666.69	5.35%	(43.82)	-6.57%	Refer Note-7
Total Expenses	13,830.76	94.45%	11,862.65	95.1 2%	1,968.11	16.59%
Profit/(Loss) Before Interest, Depreciation, Exceptional & Extraordinary Items and Tax	813.21	5.55%	608.38	4.88%	204.83	33.67%
Depreciation & Amortisation Expenses	48.70	0.33%	40.40	0.32%	8.30	20.56%	Refer Note-8
Profit/(Loss) Before Interest, Exceptional & Extraordinary Items and Tax	764.51	6.13%	567.99	4.55%	196.53	34.60%
Financial Charges	85.91	0.59%	72.10	0.58%	13.81	19.1 5%	Refer Note-9
Profit/(Loss) before Exceptional & Extraordinary Items and Tax	678.60	4.63%	495.89	3.98%	182.72	36.85%
Exceptional Item	-	-	-	-	-	-
Extraordinary Item	-	-	-	-	-	-
Profit before Taxation	678.60	4.63%	495.89	3.98%	182.72	36.85%	Refer Note-10
Provision for Taxation	160.02	1.09%	123.45	0.99%	36.57	29.62%
Provision for Deferred Tax	10.79	0.07%	4.78	0.04%	6.02	125.96%
Total	170.81	1.17%	128.22	1.03%	42.59	33.21%	Refer Note-11
Profit After Tax	507.79	3.47%	367.66	2.95%	140.13	38.11%	Refer Note-12

Note:1 -

The reason for increase in revenue from operation was mainly due to the higher demand across the Company s product portfolio in both manufacturing and trading segments, especially Mustard Oil, Chana and Refined Oil. The Company also witnessed a notable expansion in its customer base across multiple states, further contributing to revenue growth. Additionally, the Utilization% of our Mustard Oil Processing Unit increased from 16.79% to 22.85% in the current fiscal thus, enabling us to generate high revenue.

Note:2 -

The increase in Other Income in FY 2025, as compared to FY 2024 is due to the increase in interest income and GST Subsidy during the current financial year as compared to the previous financial year.

Note:3 -

The increase in Total Income in FY 2025 is primarily due to an increase in Revenue from Operations during the current fiscal year as discussed above.

Note:4 -

The increase in cost of materials consumed is due to the increase in Purchase of Raw Material and Packing Material during the current fiscal 2025 as compared to the previous year, in line with the growth in operational volume in the current fiscal, as reflected in the revenue from operations above.

Note:5 -

The increase in purchase of stock-in-trade is due to an increase in Purchase of stock in trade in the current fiscal, in line with higher revenue from Trading Activities.

Note:6 -

The reduction in Employee Benefit Expenses during the current fiscal was largely on account of lower salary outgo arising from the departure of certain employees.

Note:7 -

Other expenses decreased primarily due to the decrease in various expenses during the fiscal compared to the previous year as a result of the effective cost management.

Note:8 -

This rise was due to the capital expenditure incurred during the fiscal year.

Note:9 -

This increase was mainly due to increase in interest on loan as per their utilization.

Note:10 -

While sales revenue has risen significantly, the corresponding expenses also increased in proportion to total income, despite this, the company ability to successfully manage costs effectively led to enhanced profitability.

Note:10 -

While sales revenue has risen significantly, the corresponding expenses also increased in proportion to total income, despite this, the company ability to successfully manage costs effectively led to enhanced profitability.

Note:11 -

This increase was mainly due to increase in Profit before Tax as explained above.

Note:12 -

This increase was mainly due to increase in Profit before Tax as explained above.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2024 WITH FISCAL 2023

Particulars	For the year ended 31-03-2024	% of Total Income	For the year ended 31-03-2023	% of Total Income	Total Increase/ (Decrease) in comparison to previous FY	% Increase/ (Decrease)	Reasons/Justificati on for increase/(decrease)
Income
Revenue from Operations	12,445.92	99.80%	10,139.02	99.94%	2,306.89	22.75%	Refer Note-1
Other Income	25.12	0.20%	6.24	0.06%	18.88	302.35%	Refer Note-2
Total Income	12,471.04	100.00%	10,145.27	100.00%	2,325.77	22.92%	Refer Note-3
Expenditure
Cost of Material Consumed	9,387.85	75.28%	6,738.83	66.42%	2,649.01	39.31%	Refer Note-4
Purchase of Stock-inTrade	1,739.41	13.95%	2,382.61	23.48%	(643.21)	-27.00%	Refer Note-5
Change in Inventories	(35.05)	-0.28%	(55.24)	-0.54%	20.19	-36.55%
Employee Benefit Expenses	103.76	0.83%	114.38	1.13%	(10.62)	-9.28%	Refer Note-6
Other Expenses	666.69	5.35%	645.59	6.36%	21.10	3.27%	Refer Note-7
Total Expenses	11,862.65	95.12%	9,826.18	96.85%	2,036.48	20.73%
Profit/(Loss) Before Interest, Depreciation, Exceptional & Extraordinary Items and Tax	608.38	4.88%	319.09	3.15%	289.29	90.66%
Depreciation & Amortisation Expenses	40.40	0.32%	27.86	0.27%	12.54	45.02%	Refer Note-8
Profit/(Loss) Before Interest, Exceptional & Extraordinary Items and Tax	567.99	4.55%	291.24	2.87%	276.75	95.03%
Financial Charges	72.10	0.58%	32.42	0.32%	39.68	122.37%	Refer Note-9
Profit/(Loss) before Exceptional & Extraordinary Items and Tax	495.89	3.98%	258.81	2.55%	237.07	91.60%
Exceptional Item	-	-	-	-	-	-
Extraordinary Item	-	-	-	-	-	-
Profit before Taxation	495.89	3.98%	258.81	2.55%	237.07	91.60%	Refer Note-10
Provision for Taxation	123.45	0.99%	68.71	0.68%	54.74	79.67%
Provision for Deferred Tax	4.78	0.04%	9.38	0.09%	(4.60)	-49.08%
Total	128.22	1.03%	78.09	0.77%	50.14	64.20%	Refer Note-11
Profit After Tax	367.66	2.95%	180.72	1.78%	186.94	103.44%	Refer Note-12

Note:1 -

The increase in Revenue from Operations was primarily driven by higher demand for key products, particularly Atta, Bran, Mustard Oil and Mustard Oil Cake. Further, it can also be attributed to the successful sale of a variety of products, viz., Wheat Daliya, Refined Oil, Makka and Cattle feed which were not offered in the previous year. The Company also witnessed a notable expansion in its customer base across multiple states, further contributing to revenue growth.

Note:2 -

The increase in Other Income in FY 2024, as compared to FY 2023 is due to the increase in GST Subsidy during the current financial year as compared to the previous financial year.

Note:3 -

The increase in Total Income in FY 2024 is primarily due to an increase in Revenue from Operations during the current fiscal year as discussed above.

Note:4 -

The increase in cost of materials consumed is due to the increase in Purchase of Raw Material and Packing Material during the current fiscal 2024 as compared to the previous year, in line with the growth in operational volume in the current fiscal, as reflected in the revenue from operations above.

Note:5 -

The decrease in purchase of stock-in-trade is due to a decrease in Purchase of stock in trade in the current fiscal, in line with overall lower revenue from Trading Activities in the current fiscal as compared to the previous year.

Note:6 -

The reduction in Employee Benefit Expenses during the current fiscal was largely on account of lower salary outgo arising from the departure of certain employees.

Note:7 -

Other expenses decreased primarily due to an overall increase in various expenses during the fiscal compared to the previous year.

Note:8 -

This rise was due to the capital expenditure incurred during the fiscal year.

Note:9 -

This increase was mainly due to increase in interest on loan as per their utilization.

Note:10 -

The increase in Proft Before Tax in the current fiscal as compared to the previous financial year was driven by higher sales and favourable product margins, supported by effective cost management.

Note:11 -

This increase was mainly due to increase in Profit before Tax as explained above.

Note:12 -

This increase was mainly due to increase in Profit before Tax as explained above.

AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE IS GIVEN HEREUNDER:

1. Unusual or infrequent events or transactions

Except as described in this Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

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

There are no significant economic changes that may materially affect or likely to affect income from continuing operations. However, Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.

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

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

4. Expected Future changes in relationship between costs and revenues

Our Company s future costs and revenues will be determined by demand/supply situation, inflation, Government Policies and Taxation and Currency fluctuations.

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

Changes in revenue in the last financial years are as explained in the part "Comparison of the Financial Performance" of above.

6. Total turnover of each major industry segment in which our Company operates

The Company is primarily engaged in the business of manufacturing of Chakki Atta (High fibre whole wheat flour), R Atta (Refined whole wheat flour), Tandoori Atta (Specialized flour), Sooji (Semolina flour), Maida (Refined Flour) and yellow mustard oil. The company is also engaged in the trading of certain agro-products, including Chana, Maize, Soyabean Refined Oil, Rice Bran Refined Oil, Wheat, cattle feed, groundnut oil etc based on the prevailing market conditions.

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

Our Company has not announced any new product other than disclosed in this Draft Prospectus.

8. Seasonality of business

Our business is seasonal in nature as per the type of products we manufacture and trade.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 96 and 109 respectively of the Draft Prospectus.

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

Except as mentioned in this Draft Prospectus/ Prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the Prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months.