OPERATIONS
Some of the information in this section, including information with respect to our business plans and strategies, contain forward-looking statements that involve risks and uncertainties. Prospective investors should read Forward-Looking Statements beginning on page 23 for a discussion of the risks and uncertainties related to those statements along with Risk Factors, Industry Overview, Financial Information and Managements Discussion and Analysis of Financial Condition and Results of Operations beginning on pages 42, 195, 380 and 453, respectively, for a discussion of certain factors that may affect our business, financial condition or results of operations. Our actual results may differ materially from those expressed in or implied by these forward-looking statements.
Our Companys Fiscal commences on April 1 and ends on March 31 of the immediately subsequent year, and references to a particular fiscal year are to the 12 months ended March 31 of that particular year. Unless otherwise indicated or the context otherwise requires, the financial information for the Fiscals 2025, 2024 and 2023, included herein is based on or derived from our Restated Consolidated Financial Information included in this Red Herring Prospectus. For further information, see Restated Consolidated Financial Information beginning on page 380. Please also refer to Definitions and Abbreviations on page 1 for certain terms used in this section. The Restated Consolidated Financial Information is based on our audited financial statements and is restated in accordance with the Companies Act, 2013, and the SEBIICDR Regulations. Our audited financial statements are prepared in accordance with Indian Accounting Standards, which differs in certain material respects with IFRS and US GAAP. For details, see Risk Factor No. 57 - Significant differences exist between Ind AS and other accounting principles, such as US GAAP and International Financial Reporting Standards (IFRS), which investors may be morefamiliar with and consider material to their assessment of ourfinancial condition. on page 83.
Unless the context otherwise requires, in this section, references to we, us, our our Company or the Company refers to EPack Prefab Technologies Limited and its Subsidiary on a consolidated basis.
Unless otherwise indicated, industry and market data used in this section has been derived from the industry report titled Assessment of pre-fabricated building, pre-engineered steel building, construction and expanded polystyrene markets in India dated August, 2025, (the CRISIL Report , and the date of the CRISIL Report, the Report Date ) which is exclusively prepared for the purpose of the Offer and issued by CRISIL Limited ( CRISIL ) and is exclusively commissioned for an agreed fee and paid for by our Company in connection with the Offer. CRISIL was appointed pursuant to an engagement letter entered into with our Company dated October 16, 2024. CRISIL is not related in any other manner to our Company. The data included herein includes excerpts from the CRISIL Report and may have been re-ordered by us for the purposes ofpresentation. Further, the CRISIL Report was prepared on the basis of information as of specific dates and opinions in the CRISIL Report may be based on estimates, projections, forecasts and assumptions that may be as of such dates. CRISIL has prepared this study in an independent and objective manner, and it has taken all reasonable care to ensure its accuracy and has further advised that it has taken due care and caution in preparing the CRISIL Report based on the information obtained by it from sources which it considers reliable. Unless otherwise indicated, financial, operational, industry and other related information derived from the CRISIL Report and included herein with respect to any particular year refers to such information for the relevant calendar year. A copy of the CRISIL Report is available on the website of our Company at https://epackprefab.com/investor-relations/investor- information/. from the date of this Red Herring Prospectus until the Bid/ Offer Closing Date. Further, the CRISIL Report is not a recommendation to invest or disinvest in any company covered in the report. Prospective investors are advised not to unduly rely on the CRISIL Report. The views expressed in the CRISIL Report are that of CRISIL. For more information and risks in relation to commissioned reports, see Risk Factor No. 16 - Certain sections of this Red Herring Prospectus contain information from the CRISIL Report which we commissioned and purchased and any reliance on such information for making an investment decision in the Offer is subject to inherent risks on page 57. Also see, Certain Conventions, Presentation of Financial, Industry and Market Data -Industry and Market Data on page 21.
OVERVIEW
We were incorporated in the year 1999 and have a legacy of over 25 years, operating into two business verticals,
i. e. (i) Pre-Fab Business, wherein we provide complete solutions to customers on turnkey basis which includes designing, manufacturing, installation and erection of pre-engineered steel buildings, pre-fabricated structures and its components in India and overseas (Pre-Fab Business); and (ii) manufacturing of expanded polystyrene sheets and blocks (also referred as EPS Block Molded products and EPS Shape Molded products) for various industries such as construction, packaging, and consumer goods in India (EPS Packaging Business).
Based on the CRISIL Report, among our evaluated peers, in the last three Fiscals:
• We are the fastest growing in terms of revenue from operations, registering a compounded annual growth
rate ( CAGR ) of 41.79% between FY22-24 and our revenue from our Pre-Fab Business registered a CAGR
of 55.48% between FY22-24. The pre-engineered steel buildings industry expanded at a CAGR of ~8.3% over fiscals 2019 and 2025, growing from Rs 130 billion in in 2019 to Rs 210 billion in fiscal 2025. . The medium-term outlook is optimistic, with the industry expected to clock a CAGR of 9.5-10.5% between fiscals 2025 and 2030 to Rs 330-345 billion.
• We registered the second highest CAGR in earnings before interest, taxes, depreciation and amortisation (OPBDIT) between FY22-24 at 56.45%;
• We registered the third highest return on equity (RoE) of 29.12% in FY24;
• We registered the third highest return on capital employed (RoCE) of 27.21%in FY24;
• We have the third largest production capacity in the pre-engineered steel building (PEB) industry;
The table below shows the revenue contribution by the Pre-Fab Business and the EPS Packaging Business for Fiscals 2025, 2024 and 2023:
| (in f million) Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount | Percentage of Revenue from Operations | Amount | Percentage of Revenue from Operations | Amount | Percentage of Revenue from Operations | |
| Pre-Fab Business | 9,532.31 | 84.07% | 7,378.43 | 81.54% | 4,754.66 | 72.40% |
| EPS Packaging Business | 1,806.86 | 15.93% | 1,670.59 | 18.46% | 1,812.95 | 27.60% |
| Total (Revenue from Operations) | 11,339.17 | 100.00% | 9,049.02 | 100.00% | 6,567.61 | 100.00% |
Our Promoters have industry knowledge and managerial experience in this sector. Our Promoters have a track record and a demonstrated ability to create, build, and grow businesses, including that of our Company and our group companies, EPACK Durable Limited, and EPack Petrochem Solutions Private Limited. We credit the experience and leadership of our Promoters as having played a key role in the growth of our Company. In addition, we are led by a qualified and experienced management team, who are supported by a qualified team of managers and other employees.
Pre-Fab Business
As a part of our Pre-Fab Business, we offer pre-engineered steel buildings, pre-fabricated modular building structures, light gauge steel frames ( LGSF ), Sandwich Insulated Panels and other standard modular solutions to our customers. We also undertake projects on turnkey basis, wherein we provide complete pre-fabricated structures that involves estimation, designing, engineering, manufacturing, transportation, installation and erection of pre-fabricated structures at the site of the customer. As on March 31, 2025, our total installed capacity at our three manufacturing facilities situated at Greater Noida (Uttar Pradesh), Ghiloth (Rajasthan) and Mambattu (Andhra Pradesh) is 1,26,546 MTPA of pre-engineered capacity and 5,10,000 SQM of Sandwich Insulated Panel capacity. In addition to our manufacturing facilities, we also have three design centres located at Noida (Uttar Pradesh), Hyderabad (Telangana) and Vishakhapatnam (Andhra Pradesh). Our focus on process innovation through continuous engineering, as well as our deployment of modern technology, has been instrumental in the growth of our business and improved our ability to customize products for our customers. This focus on cost competitiveness allows us to deliver customised prefab solutions that meet both economical and functional
requirements.
EPS Packaging Business
In our EPS Packaging Business, we provide a variety of EPS Shape Molded and EPS Block Molded products, including EPS Sheets, packaging boxes for electronic goods, and hand-molded packaging box. As on March 31, 2025, we had a capacity of 8,400 MTPA. These are tailored to meet the specific packaging needs of our customers. Our EPS Packaging Business products are known for their lightweight, insulating properties, impact resistance, making them ideal for various industries such as construction, packaging, and consumer durables.
We sell our Pre-Fab Business products under the brand name EPACKPREFAB and EPS Packaging Business products under the brand name EPACK PACKAGING.
Set out below is a graphical representation of the events and milestones of our Company:
EPACK
R R EE FA B
Started as a manufacturer
of PUF Panels for telecom
2018
2022
Set up Ghilot Rajasthan plant for manufacturing
built up section. (UNIT-3)
2023
Achieved annual turnover of INR 500 Cr+
In stalled a steam turbine
Set up 2nd design and detailing team in Hyderabad
Set up Mambatu plant (Unit 4) in Andhra Pradesh
2024
Set up 3rd design and detailing office in Vishakhapatn
Set up branch office in Chennai and Ahmedabod
Achieved annual turnover of INR 700cr+
2025
Achieved annual turnover of INR 1 OOOcr+
We have been awarded certificate of excellence from Golden Book of World Records for fastest erection of preengineered factory building at Mambattu (Andhra Pradesh). For further details regarding awards received by us, please refer to the section History and Certain Other Corporate Matters beginning at page 329. We are also accredited with ISO 9001:2015 certification and ISO 14001:2015 certifications. For further details regarding the accreditation received by us, please refer to Our Business- Quality Control, Testing and Certifications, on page 313.
There is a good reduction in carbon emissions between a PEB building as compared to an RCC one. A study was
conducted by Conserve Consultants Private Limited ( Conserve ) in the year 2024 to calculate and compare through simulations the embodied and operational carbon emissions of a proposed pre-engineered factory building of built-up area of around 22,660 SQM, compared to an RCC baseline.
Key Findings and Insights of said study are as follows:
• The proposed PEB design achieved a 52% reduction in embodied carbon emissions compared to the RCC baseline. Lower impact materials, contributed to reduced GWP for the PEB Model. While a high carbon intensity of the baseline RCC Model is due to significant use of concrete quantity and steel reinforcement for the same design requirements of the proposed building.
• The PEB Model achieved a reduction of 6.5% in GHG emissions, when compared to RCC model, excluding process loads. The analysis highlights that there is a reduction in the operational carbon emission as well. By improving the building envelope, thermal comfort improves, reducing HVAC load requirements.
SIGNIFICANT FACTORS AFFECTING OUR RESULT OF OPERATIONS
The results of our operations and our financial conditions are affected by numerous factors and uncertainties, many of which may be beyond our control, including as discussed in Our Business and Risk Factors , beginning on pages 272 and 42. Set forth below is a discussion of certain factors that we believe may be expected to have a significant effect on our financial condition and results of operations:
Ability to effectively execute and expand our Order Book
Our revenue may be materially impacted if the time taken or amount payable for completion of any ongoing order of our Company exceeds the contractual estimate. The growth of our Order Book is a cumulative indication of the revenues that we expect to recognise in future periods with respect to our existing contracts. We cannot assure you that the income anticipated in our Order Book will be realised or if realised, will be realised on time or resulting profits. While none of our customers have cancelled or terminated in its entirety prematurely during the Fiscals 2025, 2024 and 2023, there can be no assurance that the orders will not be cancelled or terminated prematurely in the future, and our Company will receive any applicable termination payments in time or at all or that the amount paid will be adequate to enable our Company to recover its investments in respect of the prematurely cancelled order. In such events, we may have to bear the actual costs for such production incurred by us which may exceed the agreed work as a result of which, our future earnings may be lower from the amount of the Order Book and if any of the forgoing risks materialize, our cash flow position, revenues and earnings may be adversely affected.
Under utilisation of our manufacturing capacities over extended periods in the short-term, could materially and adversely impact our business, growth prospects and future financial performance including revenues, cash flows, and profitability. Our revenues and, consequently, our profits are dependent on, inter alia, our ability to optimise and maximise our capacity utilisation which has helped us meet the demands of our customers and deliver our products and services in an efficient, reliable and timely manner.
Cost and availability of raw materials
Our business is significantly affected by the availability, supply, cost and quality of raw materials. Our primary raw material is steel in various descriptions and thickness i.e; PPGI, GP Coil and MS Steel. Steel which is the key raw material for the manufacturing under our Pre-Fab Business is a commodity and is subject to fluctuations in commodity prices. Our cost of materials consumed are generally impacted by geo political conditions, import policy of Government, coal and electricity rate, market demand and supply and war. We procure our raw material including steel from third parties based on purchase order and do not have continuous arrangement with our supplier. We procure our raw materials primarily from domestic suppliers. We have established relationships with suppliers who provide high-quality steel that meets our requirements. Since steel is a commodity and prices fluctuate, long-term contracts for the supply of raw materials are generally not feasible. Therefore, based on our needs, we procure steel through purchase orders, which specify the terms and conditions related to pricing, scheduling, and delivery details.
The table below sets out the cost of materials incurred together with such cost as percentage of our total expenses in Fiscals 2025, 2024 and 2023:
| (in f million, except, for percentages) Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amount | Percentage of total expenses | Amount | Percentage of total expenses | Amount | Percentage of total expenses | |
| Cost of material consumed* | 7,446.34 | 70.40% | 6,126.61 | 72.26% | 4,563.31 | 72.69% |
* Cost of material consumed is inclusive of changes in inventory offinished goods, Stock in trade and WIP.
We do not have continuing agreements for the supply of our key raw material and procure our raw material based on purchase orders, from third parties, and generally do not have firm commitments from our suppliers for quantity or price under our arrangements with our suppliers. The absence of continuing contracts at fixed prices and the need to maintain a continued supply of raw materials may make it difficult to resist price increases imposed by our suppliers or we may be required to pay prevailing market prices for such raw materials and inputs. While in case of price fluctuations, we endeavour to re-negotiate our purchase orders with our vendors for price amendment and scheduling, we may not always succeed in passing on the effects of such price fluctuations to our customers. Furthermore, with strict quality requirements specified by customers, the risk of being unable to make alternative arrangements is exacerbated. Further, some of the raw materials that we consume comprise, such as, steel of different specifications for our Pre-Fab Business and EPS Packaging Business, are subject to price fluctuations. While in case of price fluctuations, we endeavour to re-negotiate our purchase orders with our vendors for price amendment and scheduling, we may not always succeed in passing on the effects of such price fluctuations to our customers.
The prices for our raw materials can be volatile and depend on commodity prices in the international markets, which in turn depend on changes in global economic conditions, industry cycles, supply-and-demand including other market dynamics. A rise in raw material costs can lead to higher prices for our customers products, which may reduce demand for those products and, in turn, decrease demand for the products we supply for them. While our Company maintains a higher inventory of raw materials than required, a failure to maintain a continuous supply of raw materials at stable prices may result in our inability to manufacture and supply products to our customers in accordance with the respective contract and on a timely basis which could have a material and adverse effect on our business, results of operations and financial condition. Also please refer to Risk Factor No. 14 - Our business and profitability are substantially dependent on the availability and the cost of our raw materials and components consumed, including steelfor Pre-Fab Business and EPS beads for EPS Packaging Business for which we rely on third parties. Any disruption in timely and adequate supply of the raw materials, or volatility in the prices of raw materials or failure to maintain cordial relations with our suppliers may adversely impact our business, results of operations, financial condition and cash flows. and Risk Factor No. 15 - We depend on third-party erectors for the timely execution and completion of our projects in Pre-Fab Business. Any delay on the part of these third parties in project execution, failure to meet design and stability criteria may lead to collapse of buildings installed by us. Any such collapse of building on account offailure of third-party erectors to comply with design and stability criteria could materially and adversely impact our business operations, future prospects, andfinancial performance. both on page 56.
Details of our Order Book for our Pre-Fab Business for Fiscals 2025, 2024, and 2023, respectively, are set forth below:
| (f in million) Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Net Order Book of our PreFab Business during the period | 12,092.35 | 9,444.70 | 7,041.23 |
| Pre-Fab Business Order Book pending* | 9,169.63 | 6,302.11 | 4,485.15 |
*Our Order Book pending as of a particular date is calculated based on the aggregate contract value of our ongoing projects as of such date reduced by the value of work invoiced by us until such date.
The growth of Order Book is a cumulative indication of the revenue that we expect to recognise in future periods with respect to our existing Pre-Fab Business. However, we cannot guarantee that the income anticipated in our order will be realised, or if realised will done on time and results in profits. The completion of our orders involves various execution risks due to natural or manmade disasters, workforce disruptions, fire explosions, failure of any machinery, or any social, political or economic disturbances, civil unrest in and around the areas where we operate or our executing our projects which may make us unable to complete our orders within the scheduled time including order delays, modifications in the scope or cancellations may occur from time to time, due to delay in payments by our customers or due to our own defaults, incidents of force majeure, cash flows problems, regulatory delays and any other factor beyond our control. In view of the above, orders can remain in our Order Book for extended periods of time because of the nature of the order and the timing of the services required by our customers. Delays in the completion of an order may lead to cost overruns and delay in payments from our customers subsequently impacting our revenue, cash flows and financial conditions. As we expand our Order Book, the modified terms of payment for new projects may necessitate higher working capital requirements and therefore impact our financial performance. Also see Risk Factor No. 32 - We operate in a working capitalintensive business, and our ability to sustain optimal working capital levels is critical to our operations. Any failure to effectively manage our working capital requirements could adversely impact our business prospects, operational results, andfinancial condition. on page 64.
Competition
We operate in an increasingly competitive market. We face competition from domestic as well as overseas companies which either operate in the same line of business as us or offer similar products and services. Traditional RCC construction which holds 95-97% of construction business poses a strong competition as well. The fragmented nature of the industry coupled with lack of undifferentiated product and services provide high bargaining power to customers which increases competition amongst the various players in the industry posing sensitivity on our pricing and profitability. Our competition varies by market, geographic areas and type of product or service. We obtain a part of our business through a competitive bidding process in which we compete for projects based on, among other factors, pricing, technological capabilities, and performance, as well as reputation for quality, experience, past track record, and financing capabilities. Further, many of our competitors, specifically multinational companies, may have significant competitive advantages, including greater brand recognition and greater access to financial, research and development, marketing, distribution and other resources, larger product offerings and greater specialization than us. Additionally, certain of our competitors may specialise in the same line of business as us and hence, may be able to dedicate significantly larger resources towards developing and manufacturing technologically superior equipment than us and their brands may gain greater visibility within those product verticals. Our competitors may further, enter into business combinations or alliances that strengthen their competitive positions or prevent us from taking advantage by entering into such business combinations or alliances. Increasing competition may result in pricing pressures or decreasing profit margins or lost market share or failure to improve our market position, any of which could substantially harm our business and results of operations. We will be required to compete effectively with our existing and potential competitors, to maintain and grow our market share and in turn, our results of operations. For further details in relation to the competition we face and our significant competitors, see Industry Overview and Our Business - Competition on pages 195 and 319, respectively.
Non-generally accepted accounting policies financial measures
Certain measures included in this Red Herring Prospectus, for instance Growth in Revenue from Operations, EBITDA Margin, EBIT Margin, Return on Equity, Return on Capital Employed, Total Asset Turnover ratio, Fixed Asset Turnover ratio, Net Working Capital Days, Net Debt to EBITDA, Number of manufacturing facilities related to Pre-Fab Business, Installed capacity for EPS Packaging Business at Unit 1, Sandwich Insulated Panel Capacity (SQM), Pre-Fab Business Order Book during the period, Pre-Fab Business Order Book pending ( Non- GAAP Measures ), presented in this Red Herring Prospectus are supplemental measures of our performance and liquidity that are not required by, or presented in accordance with Ind AS, IFRS or U.S. GAAP. Furthermore, these Non-GAAP Measures, are not a measurement of our financial performance or liquidity under Indian GAAP, IFRS or U.S. GAAP and should not be considered as an alternative to net profit/loss, revenue from operations or any other performance measures derived in accordance with Ind AS, IFRS or U.S. GAAP or as an alternative to cash flow from operations or as a measure of our liquidity. These Non-GAAP Measures and other statistical and other information relating to operations and financial performance should not be considered in isolation or construed as an alternative to cash flows, profit/(loss) for the years/period or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS or U.S. GAAP. In addition, these Non-GAAP Measures and other statistical and other information relating to operations and financial performance, are not standardised terms and may not be computed on the basis of any standard methodology that is applicable across the industry and therefore, may not be comparable to financial measures of similar nomenclature that may be computed and presented by other companies and are not measures of operating performance or liquidity defined by Ind AS and may not be comparable to similarly titled measures presented by other companies. Further, they may have limited utility as a comparative measure. Although such Non-GAAP financial measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance. See Risk Factor No. 56 - We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance that may vary from any standard methodology that is applicable across our industry. on page 83. Further, for a reconciliation of the above Non-GAAP Measures used by us to the most directly comparable financial measure prepared in accordance with Ind AS, see Other Financial Information - Non-Generally Accepted Accounting Principles Financial Measures- Reconciliation of Non-GAAP Measures on page 452.
MATERIAL ACCOUNTING POLICIES
1. Basis of compliance:
The Restated Consolidated Financial Information of the Group comprises of the Restated Consolidated Statement of Assets and Liabilities as at 31 st March 2025, 31st March 2024 and 31st March 2023, the Restated Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Restated Consolidated Statement of Changes in Equity and the Restated Consolidated Statement of Cash Flows for the years ended 31 st March 2025, 31st March 2024, and 31st March 2023 and the Material Accounting Policies and other explanatory information relating to such financial periods (referred to collectively as Restated Consolidated Financial Information).
These Restated Consolidated Financial Information have been prepared by the Management of the Company as required under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ( ICDR Regulations ) issued by the Securities and Exchange Board of India ( SEBI ), in pursuance of the Securities and Exchange Board of India Act, 1992, for the purpose of inclusion in the Draft Red Herring Prospectus ( DRHP ) in connection with the proposed Initial Public Offering of equity shares of face value of Rs. 2 each of the Company comprising a Fresh issue and an offer for sale of equity shares held by the selling shareholders (the Offer), prepared by the Company in terms of the requirements of:
(a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the Act);
(b) ICDR Regulations;
(c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI) (the Guidance Note); and
The Restated Consolidated Financial Information of the Group have been prepared to comply in all material respects with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time), presentation requirements of Division II of Schedule III of the Act, as applicable to the financial statements and other relevant provisions of the Act.
The Restated Consolidated Financial Information of the Group were authorized for issue by the Board of Directors at their meeting held on September 2, 2025.
These Restated Consolidated Financial Information of the Group have been compiled from:
(a) Audited Ind AS Consolidated Financial Statements of the Group as at and for the year ended 31st March 2025 prepared in accordance with recognition and measurement principles under Ind AS as specified under section 133 of the Act and other accounting principles generally accepted in India and presentation requirements of Division II of Schedule III of the Act which have been approved by the Board of Directors at their meeting held on 7th July 2025.
(b) Audited Special Purpose Ind AS Consolidated Financial Statements of the Group as at and for the year ended 31st March 2024 and 31st March 2023 which were prepared by the Company after taking into consideration the requirements of the ICDR Regulations and were approved by the Board of Directors at their meeting held on December 18, 2024.
The Group had adopted 31 st March 2025 as reporting date for voluntarily first-time adoption of Indian Accounting Standards as notified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended by Companies (Indian Accounting Standards) Rules, 2016 and other relevant provisions of the Act and consequently 1 st April 2023 as the voluntarily transition date for preparation of its Statutory Ind AS
Consolidated Financial Statements for the year ended 31st March 2025. For periods up to and including the year ended 31st March 2024, the Company prepared its consolidated financial statements in accordance with Accounting Standards (Indian GAAP) notified under section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014.
The Audited Special Purpose Ind AS Consolidated Financial Statements for the year ended 31 st March 2024 and 31 st March 2023 have been prepared after making suitable adjustments to the accounting heads from their Indian GAAP values following the accounting policy choices (both mandatory exceptions and optional exemptions availed as per Ind AS 101) as at the transition date and as per the presentation, accounting policies and grouping/classifications followed as at and for the year ended on 31 st March 2025. Adjustments made to the previously issued Indian GAAP Financial Statements to comply with Ind AS have been audited by Talati and Talati LLP. The basis of preparation for specific items where exemptions have been applied and reconciliation between Indian GAAP and Ind AS has been disclosed in Note 01.
In pursuance to the ICDR Regulations, for the purpose of Audited Special Purpose Ind AS Consolidated Financial Statements of the Group as at and for the year ended 31st March 2024 and 31st March 2023, the transition date is considered as 1 st April 2021. These Special Purpose Ind AS Consolidated Financial Statements as at and for the year ended 31 st March 2024 and 31 st March 2023 are not the statutory consolidated financial statements under the Companies Act, 2013.
The accounting policies have been consistently applied by the Company in preparation of the Restated Consolidated Financial Information and are consistent with those adopted in the preparation of Audited Ind AS Consolidated Financial Statements as at and for the year ended 31 st March 2025.
These Restated Consolidated Financial Information have been prepared on a going concern basis.
These Restated Consolidated Financial Information does not reflect the effects of events that occurred subsequent to the respective dates of the board meeting held for the approval of the Consolidated Financial Statements as at and for the years ended 31 st March 2025, 31 st March 2024 and 31 st March 2023 as mentioned above.
The Restated Consolidated Financial Information:
(a) Have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in the financial years ended 31st March 2024 and 31st March 2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the year ended 31st March 2025.
(b) Do not require any adjustment for modification as there is no modification in the underlying audit reports; and
(c) Have been prepared in accordance with the Act, ICDR Regulations, the Guidance Note and the SEBI e-mail.
All amounts included in the Restated Consolidated Financial Information are presented in Indian Rupees (INR or ?), which is also the Companys functional currency and all values are stated as INR or ? million rounded of up to two decimals, except when otherwise indicated.
2. Basis of preparation and presentation:
Historical cost convention:
The Restated Consolidated Financial Information have been prepared on historical cost convention, except for the following assets and liabilities which have been measured at fair value:
i. Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments) and;
ii. Defined Benefits Plan - Plan Assets are measured at Fair Value.
Current versus non-current classification:
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is treated as current when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle; or
- Held primarily for the purpose of trading; or
- Expected to be realized within twelve months after the reporting period; or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle; or
- It is held primarily for the purpose of trading; or
- It is due to be settled within twelve months after the reporting period; or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Group has identified twelve months as its operating cycle.
3. Key accounting judgments, estimates and assumptions:
The preparation of the Restated Consolidated Financial Information in conformity with Ind AS requires management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Restated Consolidated Financial Information and the reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgements and the use of assumptions in these Restated Consolidated Financial Information have been disclosed in the notes below:
A. Judgments:
In the process of applying the Groups accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the Restated Consolidated Financial Information.
(a) Leases:
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
The Group applies judgment in evaluating whether it is reasonably certain whether to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).
B. Estimates and assumptions:
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, are described below. Accounting estimates could change from period to period. Actual results could differ from these estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Restated Consolidated Financial Information in the period in which changes are made and if material, then effects are disclosed in the notes to the Restated Consolidated Financial Information.
(a) Taxes:
Uncertainties exist with respect to the interpretation of tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.
(b) Defined benefit plans:
The cost of defined benefit plans (i.e. gratuity benefit) is determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The same is disclosed in Note 40, Employee Benefit Expense.
(c) Fair value measurement of financial instruments:
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow (DCF) model, which involve various judgements and assumptions.
(d) Property, plant and equipment:
Property, plant and equipment represents significant portion of the asset base of the Group. The charge in respect of periodic depreciation is derived after determining an estimate of assets expected useful life and expected value at the end of its useful life. The useful life and residual value of Groups assets are determined by management at the time asset is acquired and reviewed periodically including at the end of each reporting period. The useful life is based on historical experience with similar assets, in anticipation of future events, which may have impact on their life such as change in technology or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.
Material Accounting Policies:
4. Basis / Principles of Consolidation
Subsidiary :
A subsidiary is an entity that is, directly or indirectly, controlled by the Company. Controls exists when the Company, directly or indirectly, has power over the investee, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity.
Consolidation of a subsidiary begins when the Company, directly or indirectly, obtains control over the subsidiary and ceases when the Company, directly or indirectly, loses control of the subsidiary. Income and expenses of a subsidiary acquired or disposed of during the year are included in the Restated Consolidated Statement of Profit and Loss from the date the Company, directly or indirectly, gains control until the date when the Company, directly or indirectly, ceases to control the subsidiary.
The Restated Consolidated Financial Information relating to EPACK PREFAB TECHNOLOGIES LIMITED (Formerly known as EPACK PREFAB TECHNOLOGIES PRIVATE LIMITED and EPACK POLYMERS PRIVATE LIMITED) (the Company ) and its subsidiaries and Associates have been prepared on the following basis:
(a) The Restated Consolidated Financial Information of the Company and its subsidiary are combined on a line- by-line basis by adding together items of assets, liabilities, equity, incomes, expenses and cash flows, after fully eliminating intra-group balances and intragroup transactions resulting in unrealised Profit / (Loss) in accordance with the Ind AS 110 Consolidated Financial Statements. The accounting policies of subsidiary
have been harmonised to ensure consistency with the policies adopted by the Company.
(b) Profits or losses resulting from intra-group transactions that are recognized in assets, such as Inventory, are eliminated in full.
(c) The Restated Consolidated Financial Information have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the Companys Special Purpose Ind AS Standalone Financial Statements.
(d) The carrying amount of the Companys investment in each subsidiary is offset (eliminated) against the Companys portion of the equity in each subsidiary.
(e) Non-controlling interest represents that part of the total comprehensive income and net assets of subsidiary attributable to interests that are not owned, directly or indirectly, by the Company.
(f) Loss of Control:
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the Group loses control over a subsidiary, it:
i. Derecognises the assets (including goodwill) and liabilities of the subsidiary.
ii. Derecognises the carrying amount of any non-controlling interests.
iii. Derecognises the cumulative translation differences recorded in equity.
iv. Recognises the fair value of the consideration received.
v. Reclassifies the parents share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities.
vi. Recognises the fair value of any investment retained.
vii. Recognises any surplus or deficit in profit or loss.
Associates
Investment in entities in which there exists significant influence but not a controlling interest are accounted for under the equity method i.e. the investment is initially recorded at cost, identifying any goodwill/ capital reserve arising at the time of acquisition, as the case may be, which will be inherent in investment. The carrying amount of the investment is adjusted thereafter for the post acquisition change in the share of net assets of the investee, adjusted where necessary to ensure consistency with the accounting policies of the Group. The Restated Consolidated statement of profit and loss includes the Groups share of the results of the operations of the investee.
5. Business Combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any noncontrolling interests in the acquiree. For each business combination, the Group elects whether to measure the noncontrolling interests in the acquiree at fair value or at the proportionate share of the acquirees identifiable net assets. Acquisition-related costs are expensed as incurred. At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at their acquisition date fair values. For this purpose, the liabilities assumed include contingent liabilities representing present obligation and they are measured at their acquisition fair values irrespective of the fact that outflow of resources embodying economic benefits is not probable.
6. Property, plant and equipment:
Recognition and measurement:
An item of property, plant and equipment that qualifies as an asset is measured on initial recognition at its cost. Following the initial recognition, all items of property, plant and equipment are measured at cost, less accumulated depreciation, and accumulated impairment losses, if any.
The cost of an item of property, plant and equipment comprises of its purchase price, including import duties and non-refundable purchase taxes or levies, directly attributable cost of bringing the item to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Such cost also includes the cost of replacing part of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. Other indirect expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered as pre-operative expenses and disclosed under capital work-in-progress.
Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalised at cost and depreciated over their useful life.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. The Group has carried out technical analysis for identification of significant components with different useful life with that of useful life of the original assets to which it belongs. However, based on technical analysis carried out by the plants technical personnel, it has been observed that the useful lives of significant components are approximately equivalent to those of the original assets to which they belong. Consequently, separate useful lives are not assigned to significant components. All the significant components are depreciated based on the same useful life with that of original assets to which it belongs.
Subsequent Expenditure:
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group and cost of the item can be measured reliably.
Depreciation:
Depreciation on items of property, plant and equipment of Company is provided to the extent of depreciable amount on the Straight Line Method (SLM) however the EPack Petrochem Solutions Private Limited provides the Depreciation on Written Down Value (WDV) Method. Depreciation is provided by the Group based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 Freehold land is not depreciated. Useful life considered for calculation of depreciation for various classes of assets are as under:
| Sr. No. | Asset class | Useful life (years) |
| 1. | Building | 30 |
| 2. | Computers | 3 |
| 3. | Furniture and Fittings | 10 |
| 4. | Vehicle/ Motor Cars | 8-10 |
| 5. | Office Equipment | 10 |
| 6. | Electrical Installation (Fittings) / Plant and Machinery | 10/15 |
The useful lives, residual values of each part of an item of property, plant and equipment and the depreciation methods are reviewed at the end of each reporting period. If any of these expectations differs from previous estimates, such change is accounted for as a change in an accounting estimate and adjusted prospectively.
De-recognition:
The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use or disposal.
Gains or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognised.
7. Capital work-in-progress:
Projects under which tangible assets are not yet ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing costs. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as other non-current assets (Capital Advances) and not included as a part of capital work-in-progress.
Costs incurred during the period of implementation of a project, till it is commissioned, is accounted as capital work-in-progress and after commissioning the same is transferred/allocated to the respective item of property, plant and equipment.
8. Investment property:
Recognition and measurement:
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as investment property. Policies with respect to depreciation, useful life and de-recognition are followed on the same basis as stated for property, plant and equipment above.
Though the Group measures investment property using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an external independent valuer.
Transfer of property from investment property to the property, plant and equipment is made when the property is no longer held for long term rental yields or for capital appreciation or both at carrying amount of the property transferred.
9. Intangible assets:
Recognition and Measurement:
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent Expenditure:
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in statement of profit and loss in the period in which expenditure is incurred.
Amortisation:
Intangible assets with finite lives are amortised over the estimated useful economic life using the Straight Line Method (SLM). The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss. The estimated useful life of intangible assets as determined by the Group is mentioned as below::
| Sr. No. | Asset class | Useful life (Years) |
| 1. | Computer Software | 8-15 |
10. Leases:
The Group evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment.
The Group uses judgment in assessing whether a contract (or part of contract) include a lease, the lease term (including anticipated renewals), the applicable discount rate, variable lease payments whether are in-substance fixed. The judgment involves assessment of whether the asset included in the contract is a fully or partly identified asset based on the facts and circumstances, whether the contract include a lease and non-lease component and if so, separation thereof for the purpose of recognition and measurement, determination of lease term basis, inter alia the non-cancellable period of lease and whether the lessee intends to opt for continuing with the use of the asset upon the expiry thereof, and whether the lease payments are fixed are variable or a combination of both.
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Right of Use Assets:
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of lease.
Lease Liabilities:
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification, a change in the lease term, or a change in the lease payment.
Short-term leases and leases of low-value assets:
The Group applies the short-term lease recognition exemption to its short-term leases /rent (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). In addition, these leases also meet the criteria for the low-value asset lease recognition exemption, as the constituent components are deemed to be of low individual value. Lease payments on short-term leases and leases of low- value assets are recognized as expense on a straight-line basis over the lease term.
11. Financial instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
The Group determines the classification of its financial assets and liabilities at initial recognition. The classification depends on the Groups business model for managing the financial assets and the contractual terms of the cash flows.
A. Financial assets:
Initial recognition and measurement:
All financial assets are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.
Subsequent measurement:
(a) Financial assets measured at amortised cost:
A financial asset is subsequently measured at amortised cost if it meets the following criteria:
i) the asset is held within a business model whose objective is to hold the asset in order to collect contractual cash flows, and
ii) the contractual terms of the financial asset give rise on a specified date to cash flows that are solely payments of principal and interest on the principal outstanding.
(b) Financial assets measured at fair value through other comprehensive income (FVTOCI):
A financial asset is measured at FVTOCI if it meets the following criteria:
i) the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and
ii) the contractual terms of the financial asset give rise on specified dates to cash flows that represents solely payments of principal and interest on the principal amount outstanding
The Group has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model.
On de-recognition of such financial assets, cumulative gain or loss previously recognised in other comprehensive income is not reclassified from the equity to statement of profit and loss.
(c) Financial assets measured at fair value through profit or loss (FVTPL):
A financial asset which is not classified in any of the above categories are measured at FVTPL.
Financial assets are reclassified subsequent to their recognition, if the Group changes its business model for managing those financial assets. Changes in business model are made and applied prospectively from the reclassification date which is the first day of immediately next reporting period following the changes in business model in accordance with principles laid down under Ind AS 109 - Financial Instruments.
(d) Investment in subsidiaries, associates and joint ventures:
The Group has accounted for its investments in subsidiaries, associates and joint ventures at cost less impairment loss (if any) in accordance with Ind AS 27 - Separate Financial Statements.
(e) Other equity investments:
All other equity investments are measured at fair value, with value changes recognised in statement of profit and loss, except for those equity investments for which the Group has elected to present the value changes in other comprehensive income. However, dividend on such equity investments is recognised in statement of profit and loss when the Groups right to receive payment is established.
Impairment of financial assets:
In accordance with Ind AS 109, the Group uses Expected Credit Loss (ECL) model, for evaluating impairment of financial assets other than those measured at Fair Value Through Profit and Loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to:
• The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or
• Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
For trade receivables the Group applies simplified approach which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Group uses historical default rates to determine impairment loss on the portfolio of trade receivables. At each reporting date these historical default rates are reviewed and changes in the forward-looking estimates are analysed.
For other assets, the Group uses 12-months ECL method to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk, full lifetime ECL method is used.
B. Financial liabilities:
Initial recognition and measurement:
All financial liabilities are recognised at fair value and in case of borrowings, net of directly attributable cost. Fees of recurring nature are directly recognised in the statement of profit and loss as finance cost.
Subsequent measurement:
Financial liabilities are carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
C. De-recognition of financial instruments:
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognize the financial asset and the proceeds received are recognized as borrowing.
A financial liability (or a part of a financial liability) is derecognised from the balance sheet when the obligation specified in the contract is discharged or cancelled or expired.
D. Offsetting:
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Group has a legally enforceable right to set off the amount and it intends, either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
12. Fair value measurement:
The Group measures financial instruments, such as, investments, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability,
• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorized within the fair value hierarchy, described as follows, which gives highest priority to quoted prices in active markets and the lowest priority to unobservable inputs.
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 — Valuation techniques for inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly.
Level 3 — Valuation techniques for inputs that are unobservable for the asset or liability.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
13. Impairment of non-financial assets:
The Groups non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated.
For impairment testing, assets that do not generate independent cash inflows are grouped together into cash generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.
The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).
The Groups corporate assets (e.g., central office building for providing support to various CGUs) do not generate independent cash inflows. To determine impairment of a corporate asset, recoverable amount is determined for the CGUs to which the corporate asset belongs.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss except for properties previously revalued with the revaluation surplus taken to other comprehensive income. For such properties, the impairment is recognised in other comprehensive income up to the amount of any previous revaluation surplus. An impairment loss in respect of assets for which impairment loss has been recognised in prior periods, the Group reviews at each reporting date whether there is any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. Such a reversal is made only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
14. Foreign currencies transactions and translation:
Functional and Presentation Currency:
Items included in the Restated Consolidated Financial Information are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The Groups Restated Consolidated Financial Information are presented in Indian Rupee (INR) which is also the Groups functional and presentation currency.
Initial recognition:
On initial recognition, transactions in foreign currencies entered by the Group are recorded in the functional currencies, by applying to the foreign currency rate, the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss.
Measurement of foreign currency items at reporting date:
Foreign currency monetary items (monetary assets and liabilities) of the Group are translated at the closing exchange rates. Non-monetary items that are measured at historical cost in a foreign currency, are translated using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency, are translated using the exchange rates at the date when the fair value is measured.
Exchange differences arising out of these translations are recognised in the statement of profit and loss.
15. Cash and cash equivalents:
The Group considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
16. Provisions, contingent liabilities and contingent assets:
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A contingent liability is-
(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or
(b) a present obligation that arises from past events but is not recognised because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of amount cannot be made.
A contingent asset is a possible asset that arises from the past events and whose existence will be confirmed only by the occurrence or non- occurrence of one or more of uncertain future events not wholly within the control of the entity. Contingent assets are disclosed in the Restated Consolidated Financial Information by way of notes to accounts when an inflow of economic benefits is probable.
17. Revenue recognition (Revenue from Contracts with Customers):
The Group derives revenue primarily from sale of manufactured products being EPS (Expanded Polystyrene) Packaging and Pre-engineered and Prefabricated Building Solutions. Revenue from contracts with customers is recognised when the control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services.
(a) Sale of goods and services:
Revenue from sale of goods (including cartage) / services are recognised at the point of time when control of the promised goods/services are transferred to the customer, generally on dispatch/delivery of the goods/services except in case of export sales, which are recognised on the basis of bill of lading on satisfaction of performance obligation and transfer of control.
Sale of goods/services are recognised net of sales returns and trade discounts. Sales excludes amounts of indirect taxes on sales.
Sale of Pre-engineered steel and Prefabricated Building Contracts:
In respect of Pre-engineered steel and Pre-fabricated Building Contracts, revenue is recognised over a period of time using the input method (equivalent to percentage-of-completion method) of accounting with contract costs incurred determining the degree of completion of the performance obligation.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers on behalf of the government.
Contracts are combined when the Group believes the underlying goods and services are a single performance obligations, single commercial objectives or the consideration in one contract depends on another. Otherwise, contracts are separated.
With respect to contracts where revenue is recognised over time, the Group measures the value of services for which control is transferred to the customer over time based on certification of work completed.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense in the Statement of Profit and Loss in the period in which such probability occurs. Due to the uncertainties attached, the revenue on account of extra claims are accounted for at the time of acceptance / settlement by the customers.
Liquidated Damages represents the expected claim which the Group may need to pay for non-fulfilment of certain commitments as per terms of respective sales contracts. These are determined on case to case basis considering the dynamics of each contracts and factors relevant to that sale.
Installation Services:
The Group provides installation services that are bundled together with the sale of products to a customer. Contracts for bundled sale of products and installation services are considered as one performance obligations because company believes underlying goods and services are a single performance obligations single commercial objectives or the consideration in one contract depends on another. Hence the installation services has been considered as a part of Sale of Pre-engineered building contracts.
Sale of Building Materials:
Revenue from sale of Building Materials are recognised at a point in time when control of the asset is transferred to the customers generally on delivery of goods/materials. The payment terms depend upon each contract entered into with the customer.
Variable Consideration:
If the consideration in a contract includes a variable amount, the Group estimate the amount of consideration to which it will be entitled in exchange for transferring the goods to the customers. The variable consideration is estimated at the contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved.
Significant Financing Component:
The Group applies the practical expedient for short term advances received from customers. That is, the promised amount of consideration is not adjusted for the effects of a significant financing component if the year between the transfer of the promised goods or service and the payment is one year or less.
(b) Contract Balances:
i) Contract Assets:
Revenue earned but not billed to customers against erection and sale of goods and services is reflected as Contract Assets because the receipt of consideration is conditional on Groups performance under the contract (i.e. transfer control of related goods or services to the Customers). On completion of installation and acceptance by the customer, the amount recognised as contract asset is reclassified to Trade Receivables.
Contract Assets are subject to impairment assessment (refer material accounting policies related to impairment of financial assets).
ii) Contract Liabilities:
A contract liability is recognised if a payment is received or payment is due (whichever is earlier) from a contract before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the Group performs under the contract (i.e. transfers control of the related goods or services to the customers).
(c) Dividend and interest income:
Dividend income from investments is recognised when the Groups right to receive the payment has been established, which is generally when shareholders approve the dividend.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on time basis, by reference to the principal outstanding and at the effective interest rate applicable.
For all debt instruments measured either at amortised cost or at fair value through other comprehensive income (FVTOCI), interest income is recorded using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. Interest income is included in other income in the statement of profit and loss.
(d) Rental income:
Rental income from investment property is recognised in the statement of profit and loss over the term of the lease.
(e) Insurance claims:
Claims receivable on account of insurance are accounted for to the extent no significant uncertainty exists for the measurement and realisation of the amount.
Insurance claims, other than claim filed against fire accident, have been booked on receipt basis.
(f) Miscellaneous income:
All other income is recognized on an accrual basis, when there is no uncertainty in its ultimate realization/collection.
18. Government grants, subsidies and export incentives:
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.
Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.
Government grants/subsidies relating to the purchase of property, plant and equipment are deducted from the Carrying amount of the Assets. The Grant is recognised in the Statement of Profit and Loss over the useful life of the depreciable assets.
19. Inventories:
Inventories have been valued on the following basis:
| Nature of inventories | Basis of inventories valuation |
| Raw material stock | Inventories of raw materials are valued at the lower of cost and net realisable value. Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis. Cost of raw material excludes all taxes and duties. |
| Semi-finished (WIP) goods stock | Semi-finished (WIP) goods stocks are valued at cost plus appropriate overheads directly attributable to manufacturing activity. |
| Finished goods stock | Inventories of finished goods are valued at the lower of cost and net realisable value. Cost represents material, labour and manufacturing expenses and other incidental costs to bring the inventory in present location and condition. |
| Packing material stock | Packing material stocks are valued at cost. | |
| Stores & spares Consumables Stock | and | Stores & spares and Consumables stocks are valued at cost. |
| Stock in transit | Stock in transit stocks are valued at material cost. | |
Further imported goods received and laying at port as at balance sheet date and the same is received in factory during the subsequent month has been included in Inventories as goods in transit as at balance sheet date.
The comparison of cost and net realisable value is made on an item-by item basis. Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and estimated costs necessary to make the sale.
20. Employee benefits expense:
Short-Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognised in the period in which the employee renders the related services. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.
Post-Employment Benefits
Defined contribution plans:
The Groups contribution paid/payable during the period to Provident fund, Superannuation Fund and Pension Scheme and other welfare funds are considered as defined contribution plans.
Recognition and measurements of defined contribution plan:
The contribution paid/payable under those plans are recognised as an expense, in the statement of profit and loss during the period in which the employee renders the services.
If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash refund.
Defined benefit plans:
The Group pays gratuity to the employees who have completed five years of service with the Group at the time of resignation superannuation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972.
Recognition and measurements of defined benefit plan:
The liability in respect of gratuity and other post-employment benefits is calculated using the projected unit credit method and spread over the period during which the benefit is expected to be derived from employees services.
Actuarial gains and losses are recognised immediately in other comprehensive income.
21. Tax expenses:
The tax expenses for the period comprises of current tax and deferred income tax. Tax is recognised in statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income, in which case, the tax is also recognised in other comprehensive income.
(a) Current tax:
Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Indian Income Tax Act, 1961.
Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be recovered from or paid to the taxation authorities.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the income tax authorities, based on tax rates and laws that are enacted at the balance sheet date.
(b) Deferred tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Restated Consolidated Financial Information and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilised. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits of part or all of such deferred tax assets to be utilised.
(c) Minimum alternate tax (MAT):
Minimum Alternate Tax (MAT) credit is recognised if there is convincing evidence that the Group will pay normal tax after the tax holiday period and the resultant asset can be measured reliably. The excess tax paid under MAT provisions, being over and above regular tax liability, can be carried forward for a period of the years from the year of recognition and is available for set off against future tax liabilities computed under regular tax provisions, to the extent MAT liability.
(d) Presentation of current and deferred tax:
Current and deferred tax are recognised as income or an expense in the statement of profit and loss, except when they relate to items that are recognised in other comprehensive income, in which case, the current and deferred tax income/expense are recognised in other comprehensive income.
The Group offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Group has a legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Group.
22. Borrowing costs:
Borrowing costs includes interest & exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset which necessarily take a substantial period of time to get ready for their intended use or sale are capitalized as part of the cost of that asset. All other borrowing costs are recognised as an expensed in the period in which they occur.
23. Earnings per share:
Basic earnings per share is computed by dividing the profit or loss attributable to equity shareholders of the Group by the weighted average number of equity shares outstanding during the period.
Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving the basic earnings per share and the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
24. Segment Reporting (Operating Segment):
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions for which discrete financial information is available.
The Group identifies operating segments based on the dominant source, nature of risks and return and the internal organisation and management structure and for which discrete financial information is available. The CODM monitors the operating results of the segments for the purpose of making decisions about resource allocation and performance assessment.
The Group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Group as a whole.
The operating segment has been identified and reported taking into account its internal financial reporting, performance evaluation and organizational structure of its operations. Operating segment is reported in the manner evaluated by board, considered as chief operating decision maker under Ind AS 108 Operating Segments.
The Group has two segment of activity, namely EPS (Expanded Polystyrene) Packaging and Pre-engineered and Prefabricated Building Solutions, in accordance with the definition of Segment covered under Indian Accounting Standards (Ind AS) 108 on operating segments.
25. Cash flow statement:
Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Group are segregated based on the available information.
26. Events occurred after the balance sheet date:
Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Restated Consolidated Financial Information. Otherwise, events after the balance sheet date of material size or nature are only disclosed.
PRINCIPAL COMPONENTS OF INCOME AND EXPENDITURE
The following descriptions set forth information with respect to the key components of our profit and loss statements.
Income
Our total income consists of: (a) revenue from operations; and (b) other income.
Revenue from operations
Our revenue from operations comprises revenue from sale of our products and sale of services domestically and through exports such as revenue from pre-fabricated (pre-engineered) building contracts, sale of build materials and revenue from sale of goods (EPS Packaging Business). Further, our revenue from operations also included other operating income such as income from scrap sale and job work, support services provided to related party.
Other income
Our other income comprises of interest income, gain on foreign currency transaction, electricity duty refund, profit on sale of land rights, liabilities written back, gain/ loss in investment shares, profit on sale of fixed assets, EPF under PMRPY, gain on loss of significant influence in EPack Petrochem Solutions Private Limited and fair value gain of mutual funds.
Expenses
Expenses consist of cost of materials consumed, purchase of traded goods, change in inventories of finished goods, stock-in-trade and work-in-progress, employee benefits expense, finance costs, depreciation and amortisation expenses and other expenses.
Cost of materials consumed.
Cost of material consumed comprises of the opening stock of raw material at the beginning of the year, increased by the purchases and the closing stock of such raw materials at the end of the year and also includes direct expenses (services charges related to erection). Our raw materials primarily comprise of steel of different sizes and specification, EPS Beads, ISO & Polyol Chemicals.
Purchase of stock-in-trade
Expenses accounted pursuant to increase/ decrease in inventories of our stock-in-trade.
Changes in inventories of finished goods, stock-in-trade and work-in-progress
Changes in inventories of finished goods, stock-in-trade and work-in-progress comprise net increases or decreases in stock of finished goods, stock-in-trade and work in progress.
Employee benefits expense
Employee benefits expenses comprise salaries, wages, bonus and other allowances, contribution to provident funds, family pension and ESIC, gratuity and leave encashment expenses, workmen and staff welfare expenses and medical reimbursement expense.
Finance costs
Finance costs comprises of interest and other borrowing cost on borrowings from banks, bank charges, net interest on net defined benefit liability, interest expense - others on unsecured loans, hire charges, LC discounting charges, interest on lease liability, interest on statutory payments, interest on delayed payment to MSME and processing charges on loan.
Depreciation and amortization expense
Depreciation and amortization expenses comprises of depreciation on property, plant and equipment, depreciation on investment property, amortisation of intangible assets and amortisation on right of use assets.
Other expenses
Our other expenses include consumption of packing material, consumption of stores and spares, power and fuel expenses, rent paid, repair and maintenance of building, plant and machinery and others, rates and taxes, insurance, freight and cartage, audit fees of statutory auditor, CSR obligation, travelling and conveyance, bad debts, loss on sale of asset, rejection and breakage, professional and consultancy charges, lease rent, legal expense, expected credit loss, miscellaneous expenses.
Profit before tax
Profit before tax is calculated by reducing total expense from total income and adjusted for loss of associate.
Tax expense
Total tax expense consists of current tax, deferred tax and taxation in respect of earlier year.
Profit after tax
Profit after tax is calculated after reducing the total tax expense from the profit before tax.
OUR RESULTS OF OPERATIONS
The following tables set forth our selected financial data from our restated consolidated statement of profit and loss for the Fiscals 2025, 2024 and 2023, the components of which are also expressed as a percentage of total income for such years:
| (in f million, except percentage) Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Amounts | Percentage of Total Income (%) | Amounts | Percentage of Total Income (%) | Amounts | Percentage of Total Income (%) | |
| Income | ||||||
| Revenue from operations | 11,339.17 | 99.42% | 9,049.02 | 99.84% | 6,567.61 | 99.44% |
| Other income | 65.74 | 0.58% | 14.73 | 0.16% | 37.32 | 0.56% |
| Total Income | 11,404.91 | 100.00% | 9,063.75 | 100.00 % | 6,604.92 | 100.00 % |
| Expenses | ||||||
| Cost of materials consumed | 7,575.60 | 66.42% | 6,524.18 | 71.98% | 4,750.79 | 71.93% |
| Purchase of traded goods | - | - | - | - | - | - |
| Changes in inventories of finished goods, stock-in-trade and work-inprogress | (129.26) | (1.13)% | (397.56) | (4.39) % | (187.48) | (2.84) % |
| Employee benefit expenses | 1,009.55 | 8.85% | 649.54 | 7.17% | 393.81 | 5.96% |
| Finance costs | 242.47 | 2.13% | 172.66 | 1.90% | 123.27 | 1.87% |
| Depreciation and amortisation expense | 173.06 | 1.52% | 126.68 | 1.40% | 102.16 | 1.55% |
| Other expenses | 1,705.34 | 14.95% | 1,402.94 | 15.48% | 1,095.18 | 16.58% |
| Total expenses | 10,576.77 | 92.74% | 8,478.43 | 93.54 % | 6,277.74 | 95.05 % |
| Restated profit/ (loss) before share of profit/ (loss) of associate and exceptional items and tax | 828.15 | 7.26% | 585.32 | 6.46 % | 327.19 | 4.95 % |
| Share of profit/ (loss) of associate | (19.22) | (0.17)% | (0.57) | (0.01) % | (0.21) | 0.00% |
| Restated profit before exceptional item and tax | 808.93 | 7.09% | 584.75 | 6.45 % | 326.98 | 4.95 % |
| Exceptional item | - | - | - | - | - | - |
| Profit/ (loss) before tax | 808.93 | 7.09% | 584.75 | 6.45 % | 326.98 | 4.95 % |
| Tax expense | ||||||
| Current tax | 196.07 | 1.72% | 141.69 | 1.56% | 80.12 | 1.21% |
| Deferred tax charge/ (credit) | 15.18 | 0.13% | 13.48 | 0.15% | 5.98 | 0.09% |
| Tax in respect of earlier years | 4.45 | 0.04% | - | - | 1.15 | 0.02% |
| Restated profit/ (loss) for the year from continuing operations | 593.22 | 5.20% | 429.59 | 4.74 % | 239.72 | 3.63 % |
Fiscal 2025 compared to Fiscal 2024 Income
Our total income increased by ?2,341.16 million i.e. 25.83% to ^11,404.91 million in Fiscal 2025 from ?9,063.75 million in Fiscal 2024. This increase was primarily attributable to the following:
Revenue from Operations
Our revenue from operations increased by ? 2,290.15 million i.e. 25.31% to ? 11,339.17 million in Fiscal 2025 from ? 9,049.02 million in Fiscal 2024. This increase was primarily driven by an increase in sales in the Pre-Fab Business, which increased by ? 2,153.88 million i.e. 29.19%, to ? 9,532.31 million in Fiscal 2025 from ?7,378.43 million in Fiscal 2024. The increase was also attributable to increase in revenue in the EPS Packaging Business by ?136.27 million i.e.8.16% to 1,806.86 million in Fiscal 2025 from 1,670.59 million in Fiscal 2024.
Other income
Our other income increased by ?51.01 million i.e. 346.30% to ?65.74 million in Fiscal 2025 from ?14.73 million in Fiscal 2024. The increase was primarily attributable to increase in interest income on bank deposit and gain realised from the loss of significant influence over EPack Petrochem Solutions Private Limited ( EPPL ) which was previously an associate of our Company and as on the date of this Red Herring Prospectus, our Company hold less than 10.00% equity shares in EPPL.
Expenses
Our total expenses increased by ?2,098.34 million i.e. 24.75% to ?10,576.77 million in Fiscal 2025 from ?8,478.43 million in Fiscal 2024. The increase in our total expenses was primarily attributable to the following:
Cost of materials consumed
Our cost of materials consumed increased by ?1,051.42 million i.e. 16.12% to ?7,575.60 million in Fiscal 2025 from ?6,524.18 million in Fiscal 2024. The increase was primarily attributable to corresponding increase in the revenue from operations.
Change in inventories of finished goods, stock-in-trade and work-in-progress
The change in inventories of finished goods, stock-in-trade and work-in-progress increased by ?268.30 million, or 67.49%, to ?(129.26) million in Fiscal 2025 from ?(397.56) million in Fiscal 2024. This increase was primarily on account of maintaining inventory levels in accordance with business requirements and prevailing industry trends. In Fiscal 2025, we aligned our inventory levels with business requirements, reflecting revenue growth of 25.31%, which was lower than the 37.78% growth recorded in Fiscal 2024. Consequently, inventory levels were aligned with these revenue trends, and adjustments were made accordingly.
Employee benefit expenses
Our employee benefit expenses increased by ?360.01 million i.e. 55.43% to ?1,009.55 million in Fiscal 2025 from ?649.54 million in Fiscal 2024. The increase was primarily attributable to salaries and wages, bonus and other allowances, contribution to provident fund, family pension, and ESIC, gratuity and leave encashment expense, workmen and staff welfare expenses.
Financial costs
Our finance costs increased by ?69.81 million i.e. 40.43% to ?242.47 million in Fiscal 2025 from ?172.66 million in Fiscal 2024. The increase was primarily attributable to interest on borrowing from bank, interest expense and other charges and other charges including bank guarantee charges, LC discounting charges, and interest on lease liability.
Depreciation and amortisation expenses
Our depreciation and amortisation expenses increased by ?46.38 million i.e. 36.61% to ?173.06 million in Fiscal 2025 from ?126.68 million in Fiscal 2024. The increase was primarily attributable to increase in depreciation on setting up of new line in our manufacturing unit at Mambattu (Andhra Pradesh) during the year.
Other expenses
Our other expenses increased by ?302.40 million i.e. 21.55% to ?1,705.34 million in Fiscal 2025 from ?1,402.94 million in Fiscal 2024. The increase was primarily attributable to increase in consumption of stores & spares and other business expenses during the year owing to increase in the business.
Profit Before Tax
For the reasons discussed above and due to share of loss of associate of ?(19.22) million, profit before tax was ?808.93 million in Fiscal 2025 compared to profit before tax of ?584.75 million in Fiscal 2024.
Tax Expenses
Current tax increased to ? 196.07 million in Fiscal 2025 compared to ? 141.69 million in Fiscal 2024 due to the increase in profit. Deferred tax also increased to ?15.18 million in Fiscal 2025 compared to ?13.48 million in Fiscal 2024. The tax in respect of earlier years was ?4.45 million in Fiscal 2025.
Profit After Tax
For the various reasons discussed above, we recorded a profit for the year of 1 593.22 million in Fiscal 2025 compared to profit for the year of ?429.59 million in Fiscal 2024
Fiscal 2024 compared to Fiscal 2023
Income
Our total income increased by ?2,458.83 million i.e. 37.23% to ?9,063.75 million in Fiscal 2024 from ?6,604.92 million in Fiscal 2023. This increase was primarily attributable to the following:
Revenue from Operations
Our revenue from operations increased by ? 2,481.41 million i.e. 37.78% to ? 9,049.02 million in Fiscal 2024 from ? 6,567.61 million in Fiscal 2023. This increase was primarily driven by an increase in the Pre-Fab Business, which increased by ? 2,623.76 million i.e. 55.18%, to ? 7,378.43 million in Fiscal 2024 from ?4,754.66 million in Fiscal 2023. The increase in the Pre-Fab Business was attributable to a higher Order Book resulting from growing demand for pre-engineered steel buildings, enhanced capacity, and the timely and qualitative execution of projects.
However, our EPS Packaging Business revenue decreased by ?142.36 million, or 7.85%, from ?1,812.95 million in the Fiscal 2023 to ?1,670.59 million in the Fiscal 2024. This decline was primarily attributable to a reduction in our pricing, which was driven by a decrease in raw material prices and conversion prices during the Fiscal 2024.
Other income
Our other income decreased by ?22.59 million i.e. 60.52% to ?14.73 million in Fiscal 2024 from ?37.32 million in Fiscal 2023. The decrease was primarily attributable to non-receipt of an electricity duty refund during the Fiscal 2024, compared to ^11.99 million of electricity refund in the Fiscal 2023. Additionally, the decrease in other income was also attributable to the decrease in the liabilities written back and interest income during the Fiscal 2024.
Expenses
Our total expenses increased by ?2,200.69 million i.e. 35.06% to ?8,478.43 million in Fiscal 2024 from ?6,277.74 million in Fiscal 2023. The increase in our total expenses was primarily attributable to the following:
Cost of materials consumed
Our cost of materials consumed increased by ?1,773.38 million i.e. 37.33% to ?6,524.18 million in Fiscal 2024 from ?4,750.79 million in Fiscal 2023. The increase was primarily attributable to corresponding increase in the revenue from operations.
Change in inventories of finished goods, stock-in-trade and work-in-progress
Our change in inventories of finished goods, stock-in-trade and work-in-progress decreased by U210.08 million i.e. 112.05% to ? (397.5) million in Fiscal 2024 from ? (187.48) million in Fiscal 2023. The increase was primarily attributable to increase in our manufacturing capacity at Mambattu (Andhra Pradesh) and increase in work-inprogress for catering the pending Order Book.
Employee benefit expenses
Our employee benefit expenses increased by ?255.73 million i.e. 64.94% to ?649.54 million in Fiscal 2024 from ?393.81 million in Fiscal 2023. The increase was primarily attributable to salaries and wages, bonus and other allowances, contribution to provident fund, family pension, and ESIC, gratuity and leave encashment expense, workmen and staff welfare expenses.
Financial costs
Our finance costs increased by ?49.39 million i.e. 40.06% to ?172.66 million in Fiscal 2024 from ?123.27 million in Fiscal 2023. The increase was primarily attributable to interest on borrowing from bank, interest expense and other charges and other charges including higher charges, LC discounting charges, and interest on lease liability.
Depreciation and amortisation expenses
Our depreciation and amortisation expenses increased by ?24.52 million i.e. 24.00% to ?126.68 million in Fiscal 2024 from ?102.16 million in Fiscal 2023. The increase was primarily attributable to increase in depreciation on setting up of new manufacturing unit at Mambattu (Andhra Pradesh) during the year and annualised impact of depreciation on the manufacturing unit located at Ghiloth (Rajasthan) during the Fiscal 2023.
Other expenses
Our other expenses increased by ?307.76 million i.e. 28.10% to ?1,402.94 million in Fiscal 2024 from ?1,095.18 million in Fiscal 2023. The increase was primarily attributable to increase in consumption of stores and spares, consumption of packaging material, freight & cartage, consultancy charges, etc.
Profit Before Tax
For the reasons discussed above, profit before tax was ?584.75 million in Fiscal 2024 compared to profit before tax of ? 326.98 million in Fiscal 2023.
Tax Expenses
Current tax increased to ? 141.69 million in Fiscal 2024 compared to ? 80.12 million in Fiscal 2023 due to the increase in profit. Deferred tax also increased to ?13.48 million in Fiscal 2024 compared to ?5.98 million in Fiscal 2023 due to timing differences in depreciation expenses between income tax calculations and financial reporting.
Profit After Tax
For the various reasons discussed above, we recorded a profit for the year of ?429.59 million in Fiscal 2024 compared to profit for the year of ?239.72 million in Fiscal 2023.
LIQUIDITY AND CAPITAL RESOURCES
Historically, our primary liquidity and capital requirements have been to finance our capital expenditure to meet out working capital requirements to ensure smooth running of our business operations. We have met these requirements through cash flows from operations, and borrowings. As of March 31, 2025, we had ? 793.56 million in cash and cash equivalents, ? ? 769.80 million in other bank balances other than cash and cash equivalents and ? 2,053.33 million in trade receivables. We believe that after taking into account the expected cash to be generated from operations, our borrowings and the proceeds from the Offer, we will have sufficient liquidity for our present requirements and anticipated requirements for capital expenditure and working capital for the next 12 months.
CASH FLOWS
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Cash (used in)/ generated from operating activities | 622.87 | 716.54 | 15.20 |
| Cash (used in)/ generated from investing activities | (1,509.87) | (947.93) | (338.51) |
| Cash (used in)/ generated from financing activities | 1,664.73 | 231.14 | 332.82 |
| Cash and cash equivalents at the end of the year | 793.56 | 15.83 | 16.08 |
| Bank balances other than cash and cash equivalent | 769.80 | 141.09 | 116.92 |
The following table summarise our cash flows data for the years indicated:
(in f million)
Operating Activities
Fiscal 2025
Cash generated from operating activities for the Fiscal 2025 was ?622.87 million. Though our restated profit before exceptional items and tax was ?808.93 million, we had operating profit before working capital changes of ?1,190.29 million, primarily due to adjustments for depreciation and amortisation expense of ?173.06 million, finance costs on borrowings and lease liability of ?242.47 million, share of loss in associate of ?19.22 million, ESOP expense of ?3.02 million, interest income of ?(32.56) million, fair valuation of investments through profit and loss of ?(0.05) million, remeasurements of net defined benefit plans of ?(4.47) million, gain on loss of significant influence of ?(20.00) million and loss on sale of fixed assets (net) of ?0.67 million.
This was further adjusted for working capital adjustments, which primarily consisted of increase in trade receivables of ?(788.04) million, increase in inventories of ?(135.99) million, increase in other financial assets of ?(30.31) million, decrease in short term loans of ?(35.29) million, increase in long term provisions of ?17.30 million, increase in trade and other payables of ?309.64 million, increase in short term provisions of ?50.87 million, increase in other current liabilities of ?135.71 million, increase in other financial liabilities of ?34.26 million and increase in other long term financial liabilities of ?56.62 million. As a result, cash generated from operations for the Fiscal 2025 was ?768.94 million before adjusting for direct taxes paid (net of refunds) of ?(146.07) million.
Fiscal 2024
Cash generated from operating activities for the Fiscal 2024 was ?716.54 million. Though our restated profit before exceptional items and tax was ?584.75 million, we had operating profit before working capital changes of ?871.55 million, primarily due to adjustments for depreciation and amortisation expense of ?126.68 million, finance costs on borrowings and lease liability of ?172.66 million, share if loss in associate of ?0.57 million, interest income of ?(12.97) million, remeasurements of net defined benefit plans of ?(1.30) million and loss on sale of fixed assets of ?1.16 million.
This was further adjusted for working capital adjustments, which primarily consisted of increase in trade receivables of ?(63.77) million, increase in inventories of ^(561.33) million, decrease in other financial assets of ?20.95 million, decrease in other non-current assets of ?104.51 million, increase in bank balance other than cash and cash of ?(24.18) million, increase in short term loans of ?(51.02) million, increase in other current assets of ?(409.67) million, increase in long term provisions of ?7.38 million, increase in trade and other payables of ?580.75 million, decrease in short term provisions of ?(6.78) million, increase in other current liabilities of ?226.96, decrease in other financial liabilities of ?(12.04) million and increase in other long term financial liabilities of ^114.86 million. As a result, cash generated from operations for the Fiscal 2024 was ?798.17 million before adjusting for direct taxes paid (net of refunds) of ?(81.63) million.
Fiscal 2023
Cash generated from operating activities for the Fiscal 2023 was ?15.20 million. Though our restated profit before exceptional items and tax was ?326.98 million, we had operating profit before working capital changes of ?542.05 million, primarily due to adjustments for depreciation and amortisation expense of t102.16 million, finance costs on borrowings and lease liability of t123.27 million, share if loss in associate of t0.21 million, interest income of t(7.56) million, remeasurements of net defined benefit plans of t0.19 million, gain on loss of subsidiary of t(2.54) million and profit on sale of fixed assets of t(0.66) million.
This was further adjusted for working capital adjustments, which primarily consisted of increase in trade receivables of t(543.58) million, increase in inventories of t(267.77) million, increase in other non-current financial assets of t(1.02) million, decrease in other financial assets of t7.25 million, increase in other noncurrent assets of t(129.62) million, increase in bank balance other than cash and cash of t(52.02) million, increase in short term loans of t(4.96) million, increase in other current assets of t(188.32) million, increase in long term provisions of t3.30 million, increase in trade and other payables of t432.96 million, increase in short term provisions of t2.23 million, increase in other current liabilities of t270.36, decrease in other f inancial liabilities of t(36.07) million and increase in other long term financial liabilities of t17.06 million. As a result, cash generated from operations for the Fiscal 2023 was t51.85 million before adjusting for direct taxes paid (net of refunds) of t(36.65) million.
Investing Activities
Fiscal 2025
Cash used in investing activities during the Fiscal 2025 was t(1,509.87) million primarily on account of interest received of t32.56 million, other non-current assets of t5.83 million, investment in fixed deposits of t(640.86) million, purchase of property, plant and equipment/ intangible assets of t(871.06) million, loan to related parties of t (41.62) million, additions of right of use assets of t6.78 million and purchase of investments of t(1.50) million.
Fiscal 2024
Cash used in investing activities during the Fiscal 2024 was t(947.93) million primarily on account of sale proceeds of property, plant and equipment of t2.13 million, interest received of t12.97 million, purchase of property, plant and equipment of t(824.93) million, purchase of intangible assets of t(5.8 2) million and additions of right of use assets of t(132.29) million.
Fiscal 2023
Cash used in investing activities during the Fiscal 2023 was t(338.51) million primarily on account of payments for sale proceeds of property, plant and equipment of t2.59 million, purchase of investment/ loss of control of t(41.03) million, interest received of t7.56 million, purchase of property, plant and equipment of t(282.39) million, purchase of intangible assets of t(0.23) million, additions of right of use assets of t(5.12) million and purchase of investments of t(19.90) million.
Financing Activities
Fiscal 2025
Cash generated from financing activities during the Fiscal 2025 was t1,664.73 million primarily on account of proceeds from issue of shares of t1,256.80 million, proceeds from long term borrowing t216.98 million, proceeds from short term borrowings of t432.21 million, increase/ decrease in lease liability of t1.20 million, finance cost on lease liability of t(4.50) million and finance cost on borrowing of t(237.97) million.
Fiscal 2024
Cash generated from financing activities during the Fiscal 2024 was t231.14 million primarily on account of proceeds from long term borrowings of t187.28 million, proceeds from short term borrowings of t206.51 million, increase/ decrease in lease liability of t10.01 million, finance cost on lease liability of t(3.53) million and finance cost of borrowing of t(169.13) million.
Fiscal 2023
Cash generated from financing activities during the Fiscal 2023 was t332.82 million primarily on account of proceeds from long term borrowings of U286.93 million, proceeds from short term borrowings of ?172.32 million, increase/ decrease in lease liability of ^(3.15) million, finance cost on lease liability of ?(3.26) million and finance cost of borrowing of ?(120.01) million.
CAPITAL EXPENDITURE
| The details of capital expenditure incurred by us during the Fiscals 2025, 2024 and 2023: (in f million) Capital Expense | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Purchase of property, plant and equipment | (871.06) | (824.93) | (282.39) |
| Purchase of intangible assets | - | (5.82) | (0.23) |
FINANCIAL INDEBTEDNESS
As of July 31, 2025, we had total borrowings of ? 5,730.97 million. For further information on our indebtedness, see Financial Indebtedness on page 488.
CONTINGENT LIABILITIES
The following table sets forth the principal components of our contingent liabilities as per the Restated Consolidated Financial Information:
| (in f million) Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| In respect of Bank Guarantees and LCs issued by banks on behalf of the Group | 2,481.06 | 1,914.51 | 1,043.86 |
| In respect of Income Tax Liability that may arise for which the Group is in appeal | 14.29 | 11.94 | 5.37 |
| In respect of sales tax/ VAT/ GST | 8.85 | 6.58 | 4.87 |
| In respect of corporate guarantees | 1,403.01* | 1,250.00 | - |
| Claims against the group not acknowledged as debt | 4.84 | - | - |
| In respect of Others (HR related) | 2.11 | - | - |
| In respect of custom duty | 0.51 | - | - |
| Total Contingent Liabilities | 3,914.67 | 3,183.03 | 1,054.10 |
* As at March 31, 2025, our Company had extended the corporate guarantees to Yes Bank amounting to f 500 million and to HDFC Bank amounting to f 903.01 million (i.e. total of f 1403.01 million) on behalf of credit facilities availed by one of our Group Company - EPack Petrochem Solutions Private Limited. Subsequent to the reporting date, during August 2025, both the above corporate guarantees have been waived / released by the respective banks and accordingly, our Company stands discharged of its obligations under these guarantees.
For further information, see Restated Consolidated Financial Information -Note 42 -Contingent Liabilities and Commitments on page 419.
OFF-BALANCE SHEET COMMITMENTS AND ARRANGEMENTS
We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements.
The estimated amount of contracts remaining to be executed on capital accounts and not provided for the last three Fiscals 2025, 2024 and 2023 are as follows.
| (in f million) Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Capital commitments | |||
| - Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance) | 22.84 |
QUANTITATIVE AND QUALITATIVE ANALYSIS OF MARKET RISKS
We are exposed to various types of risks during the normal course of business. The risks we are exposed to include credit risk, liquidity risk, interest rate risk, foreign currency risk and commodity price risk:
Credit Risk
Credit risk is the risk of financial loss to our Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The exposure to credit risk on account of receivables and amounts due from related parties is monitored on an ongoing basis by the management and these are considered recoverable by our Companys management. Accounts receivables were outstanding from few customers and hence our Company has concentration of accounts receivables and consequent risk to that extent. Our Company measures the expected credit loss of trade receivables based on historical trends, industry practices and the business environment in which our Company operates. Loss rates are based on actual credit loss experience and past trends. Our Company also maintains its cash and cash equivalents, bank deposits and investment with reputed banks, financial institutions, and corporates. The credit risk on these instruments is limited because the counterparties are banks and high credit rated financial institutions and corporates assigned by credit rating agencies.
Liquidity Risk
Liquidity risk is the risk that our Company will face in meeting its obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. Our Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. Our Company have cash credit limit, working capital demand loan limit and other non-fund based limit with banks to support any temporary funding requirements.
Commodity Risk
Exposure to market risk with respect to commodity prices primarily arises from our Companys purchases and sales of pharmaceutical ingredients, including the raw material components for such pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. Cost of raw materials forms the largest portion of our Companys cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2025, March 31, 2024, and March 31, 2023, our Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.
Foreign Currency Risk
Our Company undertakes transactions (e.g. sale of goods, purchase of capital goods, etc.) denominated in foreign currencies and thus is exposed to exchange rate fluctuations. Our Company is therefore, exposed to foreign currency risk principally arising out of foreign currency movement against the Indian currency. Our Company evaluates its exchange rate exposure arising from foreign currency transactions and manages the same based upon approved risk management policies.
RECENT ACCOUNTING PRONOUNCEMENTS
As of the date of this Red Herring Prospectus, there are no recent accounting pronouncements, which would have a material effect on our financial condition or results of operations.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in our accounting policies during the Fiscals 2025, 2024, and 2023.
SUMMARY OF RESERVATIONS OR QUALIFICATION OR ADVERSE REMARKS OR MATTERS OF EMPHASIS BY THE AUDITORS
Emphasis of Matter
For Fiscal 2025
The subsidiary Epack Prefab Solutions Private Limited has a negative net worth as of March 31 st 2025. The negative net worth amounts to f 7.07 million. The financial statements of the subsidiary have been prepared on a going concern basis as the parent company has committed to providing the necessary financial and operational support. This situation does not affect the overall solvency or operations of the Group. The substantial part of the liabilities of the subsidiary is towards its Holding Company only. The management of the Parent Company does not see any financial crisis on the subsidiary.
For Fiscal 2024
The subsidiary EPack Prefab Solutions Private Limited has a negative net worth as of March 31 st , 2024. The negative net worth amounts to f 7.75 million. The financial statements of the subsidiary have been prepared on a going concern basis as the parent company has committed to providing the necessary financial and operational support. This situation does not affect the overall solvency or operations of the Group. The substantial part of the liabilities of the subsidiary is towards its Company only. The management of the Parent Company does not see any financial crisis on the subsidiary.
Fiscal 2023
The subsidiary EPack Prefab Solutions Private Limited has a negative net worth as of March 31 st , 2023. The negative net worth amounts to f 8.53 million. The financial statements of the subsidiary have been prepared on a going concern basis as the parent company has committed to providing the necessary financial and operational support. This situation does not affect the overall solvency or operations of the Group. The substantial part of the liabilities of the subsidiary is towards its Company only. The management of the Parent Company does not see any financial crisis on the subsidiary .
UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS
Except as disclosed in this Red Herring Prospectus, to our knowledge, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.
SIGNIFICANT ECONOMIC CHANGES
Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations. See Risk Factors on page 42.
KNOWN TRENDS OR UNCERTAINTIES
Our business has been subject, and we expect it to continue to be subject, to the trends identified above in - Significant Factors Affecting our Results of Operations and the uncertainties described in Risk Factors , beginning on pages 456 and 42, respectively. Further, except as disclosed in this Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on our revenues.
FUTURE RELATIONSHIP BETWEEN COST AND REVENUE
Other than as described in Risk Factors , Our Business and above in - Significant Factors Affecting our Results of Operations beginning on pages 42, 272 and 456, respectively, to our knowledge, there are no known factors that may adversely affect our business prospects, results of operations and financial condition
EXTENT TO WHICH MATERIAL INCREASES IN NET SALES OR REVENUE FROM OPERATIONS ARE DUE TO INCREASED SALES VOLUME, INTRODUCTION OF NEW PRODUCTS OR SERVICES OR INCREASED SALE PRICES
Changes in revenue from operations are as described in Management Discussion and Analysis -Fiscal 2025 compared to Fiscal 2024 on page 478 and Management Discussion and Analysis - Fiscal 2024 compared to
SEGMENT REPORTING
Our business activity falls within two operating segment namely, (i) EPS Packaging Business; and (ii) EPack PreFab Business. For further information, see Restated Consolidated Financial Information -Note 45 - Segment Reporting on page 431.
NEW PRODUCTS OR BUSINESS SEGMENTS
Presently, we have only discontinuous Sandwich Insulated Panel capacity at our Unit 2 and does not have the capacity to manufacture continuous Sandwich Insulated Panels. Our Company is intending to manufacture continuous Sandwich Insulated Panels and other ancillary accessories including Hi-Rib single skin sheets/deck sheets and other accessories. Continuous Sandwisch Insulated Panel line will help us to manufacture large span panels at proposed new manufacturing facility proposed at Ghiloth (Rajasthan). Our Company is also undertaking a brownfield expansion at Unit 4 for manufacturing of continuous Sandwich Insulated Panels. For further details please refer to Our Business on page 272. In case, we fail to manufacture the abovementioned products or develop new products as per customers or industrys demand, it may impact our business.
SEASONALITY OF BUSINESS
Some of our customers have businesses which are seasonal in nature and a downturn in demand for our products by such customers could reduce our revenue during such periods. Our operations may also be affected in monsoon season. Typically, such climatic conditions do not have any material impact on our revenue from operations, abnormally rainy monsoon could have a material impact. Typically, our quarter wise net sales figures are lower during the monsoon period, i.e., June to September in comparison to the other quarters.
SIGNIFICANT DEPENDENCE ON CUSTOMERS AND SUPPLIERS
While we do not have any concentration of suppliers or customers in our Pre-Fab Business, however, we have customer as well as supplier concentration in our EPS Packaging Business.
SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025, THAT MAY AFFECT OUR FUTURE RESULTS OF OPERATIONS
As on the date of this Red Herring Prospectus, except as disclosed below, there has been no developments that have come to our attention since the date of the Restated Consolidated Financial Information that could materially and adversely affect or are likely to affect, our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next 12 months:
1) We have undertaken an expansion by setting up a new manufacturing facility at Mambattu, Tirupati District, Andhra Pradesh. The new facility becomes operational and commenced production on June 6, 2025.
2) We had extended the corporate guarantees to banks amounting to total of ? 1403.01 million on behalf of credit facilities availed by one of our Group Company - EPack Petrochem Solutions Private Limited. Subsequent to the reporting date, during August 2025, both the above corporate guarantees have been waived / released by the respective banks and accordingly, we stand discharged of our obligations under these guarantees.
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