Gurunanak Agriculture India Ltd Management Discussions

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

These financial statements have been prepared in accordance with Ind GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated August 28, 2025 which is included in this prospectus under the section titled "Financial Information as Restated" beginning on page 185 of this prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 23 and 16 respectively, and elsewhere in this prospectus

Accordingly, the degree to which the financial statements in this prospectus will provide meaningful information depends entirely on such potential investors level of familiarity with Indian accounting practices. Our F.Y. ends on March 31 of each year; therefore, all references to a particular fiscal are to the twelve-month period ended March 31 of that year. Please also refer to section titled "Certain Conventions, Use of Financial, Industry and Market Data and Currency Presentation" beginning on page 14 of this prospectus.

BUSINESS OVERVIEW

Our company was originally incorporated as a Private Limited Company under the name "Gurunanak Agriculture India Private Limited" on February 05, 2010, under the provisions of the Companies Act, 1956 bearing Corporate Identification Number U29253UP2010PTC039470 issued by Registrar of Companies- Uttar Pradesh & Uttarakhand. Subsequently, the registered office of our Company was shifted to the from Uttar Pradesh to Chhattisgarh state and a fresh Certificate of Registration for Change of State was issued by the Registrar of Companies, Chhattisgarh on October 08, 2024 bearing a new Corporate Identification number U29253CT2010PTC016944. Subsequently, our company converted into a public limited company, resulting in a name change to "Gurunanak Agriculture India Limited" under the Companies Act, 2013 vide a fresh Certificate of Incorporation dated December 05, 2024, bearing Corporate Identification Number U29253CT2010PLC016944, issued by the Registrar of Companies, Central Processing Centre.

Gurunanak Agriculture India Limited, is engaged the manufacturing of agricultural machinery, including Threshers, Harvesters, Reapers, Rotavators, Cultivators, and more. Our company has consistently focused on delivering innovative solutions to meet the needs of the farming community. Our range of products includes Paddy Thresher, Groundnut Thresher, Wheat Thresher, Maize Thresher, Multi-crop Thresher, Harvester, Reaper, Rotavator, and others. Recently, our company has launched Combined Harvester which has not only met but exceeded customer expectations, quickly gaining widespread popularity in the market due to its advanced features, superior efficiency, and reliability. The overwhelming demand for the Combined Harvester highlights the trust and satisfaction our customers place in our brand.

To capitalize on this success and address the escalating market demand, we are embarking on a strategic expansion of our production capabilities. The cornerstone of this project is the development of a robust manufacturing infrastructure that will enable the cumulative annual production of 300 harvesters and 4,000 threshers and 4,000 units for other products (such as rotavators, reapers, cultivators, etc). This enhancement aligns with our vision of becoming a market leader in agricultural machinery by ensuring to meet the demand efficiently while maintaining our commitment to high quality and innovation.

The decision to upscale our production is rooted in a detailed analysis of market trends, customer feedback, and operational capabilities. By increasing our manufacturing capacity, we aim to not only cater to the current demand but also position ourselves to seize future opportunities in the rapidly evolving agricultural sector. The investment in this expansion reflects our confidence in the long-term growth potential of the industry and our ability to deliver cutting-edge solutions.

Innovation remains a key pillar of our growth strategy. In addition to scaling production, we are committed to fostering a culture of continuous research and development. This commitment ensures that we remain at the forefront of technological advancements, enabling us to introduce new and improved products that address emerging challenges and customer needs. Our R&D efforts will not only focus on enhancing the performance and efficiency of our existing product lines but also on developing bespoke machinery tailored to specific customer requirements.

This dual approach scaling production and driving innovation positions Gurunanak Agriculture India Ltd. for sustainable growth. As part of this initiative, we aim to strengthen our relationships with suppliers, optimize our operational processes, and invest in skill development for our workforce. These efforts will ensure that we maintain our competitive edge in the market and continue to deliver value to our customers.

In summary, this project is a critical step toward achieving our strategic objectives. By enhancing our production capacity and prioritizing innovation, we are not only addressing immediate market needs but also laying a solid foundation for future growth.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD

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

KEY FACTORS AFFECTING OUR RESULTS OF OPERATION

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

2. Our ability to keep pace with the rapid technological advancements;

3. Companys ability to successfully implement its growth strategy and expansion plans;

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

5. Increased competition in industries/sector in which we operate;

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

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

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

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

10. Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability; and 11. Covid-19 pandemic and such other contagious diseases.

SIGNIFICANT ACCOUNTING POLICIES:

Our significant accounting policies are described in the section entitled "Financial Statements as Restated" beginning from page no. 185 of the prospectus.

FINANCIAL KPIs OF THE COMPANY:

in lakhs except percentage and ratios

Particulars	31-03-2025	31-03-2024	31-03-2023
Total Income	4,395.42	4,409.42	3,916.96
Growth (%)	-0.32%	12.57%	-4.64%
Revenue from Operation	4,385.65	4,401.68	3,897.24
EBITDA (Operating Profit)	975.07	536.84	252.67
EBITDA Margin (%)	22.23%	12.20%	6.48%
PAT	605.52	245.39	60.71
Growth (%)	146.76%	304.21%	17.42%
PAT Margin (%)	13.81%	5.57%	1.56%
EPS (Basic & Diluted) - (As per end of Restated period)	7.42	48.12	11.90
EPS (Basic & Diluted) - (Post Bonus with retrospective effect)	7.42	3.01	0.74

 

Particulars	31-03-2025	31-03-2024	31-03-2023
Total Borrowings	466.05	1059.18	665.94
Total Net Worth (TNW)	1227.48	621.96	376.57
RONW (%)	49.33%	39.45%	16.12%
ROCE (%)	63.88%	47.46%	26.29%
Debt Equity Ratio (Total Borrowing/TNW)	0.38	1.70	1.77

SUMMARY OF THE RESULTS OF OPERATION:

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

( in lakhs except as otherwise mention)

			For the year ended
Particulars	31-03-2025	% of Total Turnover	31-03-2024	% of Total Turnover	31-03-2023	% of Total Turnover
Income
Revenue from Operations	4,385.65	99.78%	4,401.68	99.82%	3,897.24	99.50%
Other Income	9.77	0.22%	7.74	0.18%	19.72	0.50%
Total Income	4,395.42	100.00%	4,409.42	100.00%	3,916.96	100.00%
Expenditure
Cost of Material Consumed	2,836.79	64.54%	3,136.14	71.12%	2,652.25	67.71%
Changes in Inventories	(115.33)	-2.62%	(35.09)	-0.80%	41.54	1.06%
Employee Benefit Expenses	492.27	11.20%	492.40	11.17%	576.38	14.72%
Other Expenses	188.58	4.29%	271.39	6.15%	374.40	9.56%
Total Expenses	3,402.31	77.41%	3,864.84	87.64%	3,644.57	93.05%
Profit Before Interest, Depreciation and Tax	993.11	22.59%	544.58	12.36%	272.39	6.95%
Depreciation & Amortisation Expenses	70.32	1.60%	96.42	2.19%	86.32	2.21%
Profit Before Interest and Tax	922.79	20.99%	448.16	10.17%	186.07	4.74%
Financial Charges	88.28	2.01%	116.58	2.64%	95.75	2.44%
Profit Before Extra-ordinary Items and Tax	834.51	18.98%	331.58	7.53%	90.32	2.30%
Exceptional Item (Loss on sale of Babina Unit)	8.27	0.19%	-	-	-	-
Profit Attributable to Minority Shareholders	-	-	-	-	-	-
Profit before Taxation	826.24	18.79%	331.58	7.53%	90.32	2.30%
Provision for Taxation	219.20	4.99%	88.29	2.00%	25.05	0.64%
Provision for Deferred Tax	(6.70)	-0.15%	(4.27)	-0.10%	(1.82)	-0.05%
Earlier Year Tax Arrears	8.22	0.19%	2.18	0.05%	6.37	0.16%
Total	220.72	5.03%	86.19	1.95%	29.61	0.75%
Profit After Tax	605.52	13.76%	245.39	5.58%	60.71	1.55%
Net Profit Transferred to Balance Sheet	605.52	13.76%	245.39	5.58%	60.71	1.55%

As certified by our statutory auditor having peer review certificate M/s. Rajendra Prasad, Chartered Accountant vide their examination report dated August 28, 2025.

In the Fiscal 2025, Fiscal 2024 and Fiscal 2023, we generated total income of 4,395.42 Lakhs, 4,409.42 Lakhs and

3,916.96 Lakhs respectively, EBITDA (operating profit) of 975.07 Lakhs, 536.84 Lakhs and 252.67 Lakhs respectively and net profit after tax of 605.52 Lakhs, 245.39 Lakhs and 60.71 respectively. We have reported Return on Net Worth of 49.33%, 39.45% and 16.12% for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Revenue from operations grew from 3,897.24 Lakhs in FY 2022-23 to 4,385.65 Lakhs in FY 2024-25, marking an increase of 488.41 Lakhs (12.53% for the said period). Correspondingly, Profit After Tax (PAT) surged from 60.71 Lakhs to 605.52 Lakhs, as per the restated financial statements. These factors are discussed in detail in this chapter.

Our Product-Wise Revenue Bifurcation:

in lakhs

		March 31, 2025		March 31, 2024		March 31, 2023
Product Head	Product Name	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Thresher	Paddy Thresher	2,619.19	59.72%	119.49	2.71%	1,157.02	29.69%
	Paddy Multi Crop Thresher	1,032.22	23.54%	904.64	20.55%	999.70	25.65%
	Other Threshers	44.06	1.00%	3,155.72	71.70%	1,578.83	40.51%
Harvester	Combined Harvester	107.50	2.45%	-	0.00%	-	0.00%

 

		March 31, 2025		March 31, 2024		March 31, 2023
Product Head	Product Name	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Others	Reaper, Rotavator, Animal Driven Harrow & Seed drill, Hand Operated Winnowing Fan, Paddy Harrow, Elevator, Hopper, Paddy Transplanter, Cultivator, Spare Parts, Scrap etc.	582.68	13.29%	221.83	5.04%	161.69	4.15%
	Total of Revenue	4,385.65	100.00%	4,401.68	100.00%	3,897.24	100.00%

 

						in lakhs
	March 31, 2025		March 31, 2024		March 31, 2023
Particulars	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Andhra Pradesh	160.49	3.66%	162.81	3.70%	290.52	7.45%
Chhattisgarh	3,183.34	72.60%	2,888.20	65.62%	2,222.62	57.04%
Delhi	18.05	0.41%	-	-	-	-
Haryana	-	-	3.41	0.08%	5.90	0.15%
Jharkhand	1.83	0.04%	-	-	0.55	0.01%
Karnataka	26.90	0.61%	10.02	0.23%	-	-
Madhya Pradesh	426.48	9.72%	503.58	11.44%	401.97	10.31%
Maharashtra	27.88	0.64%	8.63	0.20%	33.77	0.87%
Odisha	429.48	9.79%	332.89	7.56%	218.15	5.60%
Punjab	1.19	0.03%	2.58	0.06%	2.43	0.06%
Rajasthan	10.73	0.24%	1.52	0.03%	-	-
Telangana	10.96	0.25%	-	-	13.62	0.35%
Uttar Pradesh	34.79	0.79%	460.78	10.46%	287.58	7.38%
West Bengal	34.58	0.79%	15.21	0.35%	12.59	0.32%
Total	4,366.70	99.57%	4,389.63	99.73%	3,489.70	89.54%

 

Export Sales
						in lakhs
	March 31, 2025		March 31, 2024		March 31, 2023
Particulars	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Bhutan	14.65	0.33%	-	-	-	-
Ghana	-	-	-	-	26.49	0.68%
Nepal	-	-	-	-	15.45	0.40%
Nigeria	-	-	-	-	49.13	1.26%
South Africa	-	-	-	-	5.20	0.13%
Sri Lanka	4.30	0.10%	12.05	0.27%	-	-
Sudan	-	-	-	-	259.63	6.66%
Uganda	-	-	-	-	51.64	1.33%
Total	18.95	0.43%	12.05	0.27%	407.54	10.46%

 

Country-Wise Sales
						in lakhs
Particulars	March 31, 2025			March 31, 2024	March 31, 2023
	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Bhutan	14.65	0.33%	-	-	-	-
Ghana	-	-	-	-	26.49	0.68%
India	4,366.70	99.57%	4,389.63	99.73%	3,489.70	89.54%
Nepal	-	-	-	-	15.45	0.40%
Nigeria	-	-	-	-	49.13	1.26%

 

Particulars	March 31, 2025		March 31, 2024		March 31, 2023
	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
South Africa	-	-	-	-	5.20	0.13%
Sri Lanka	4.30	0.10%	12.05	0.27%	-	-
Sudan	-	-	-	-	259.63	6.66%
Uganda	-	-	-	-	51.64	1.33%
Total of Country-wise Turnover	4,385.65	100%	4,401.68	100%	3,897.24	100%

Our Segment-Wise Revenue Bifurcation

in lakhs

	March 31, 2025		March 31, 2024		March 31, 2023
Particulars	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Through Mahindra & Mahindra	1,309.87	29.87%	1,027.23	23.34%	989.27	25.38%
Through Dealership Network	2,564.89	58.48%	2,117.17	48.10%	1,837.18	47.14%
Through Retail Sales	510.89	11.65%	1,257.28	28.56%	1,070.79	27.48%
Total	4,385.65	100.00%	4,401.68	100.00%	3,897.24	100.00%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT

Total Income

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

Revenue from Operations

Our operational revenue is primarily generated from the manufacturing and selling of agricultural machineries and equipment i.e. Threshers, Harvesters, Reapers, Rotavators, Cultivators, and more.

Other Income

Our other income comprises of Interest Income, Duty drawback Export, Profit on Sale of Vehicle, Subsidy Refund, Profit on Foreign Exchange Translation and GST Refund.

Expenditure

Our total expenditure primarily consists of Cost of Material Consumed, Purchases of Stock-in-trade, Changes in inventories, Employee Benefit Expenses, Financial charges, Depreciation & Amortisation Expenses, Other Expenses.

Cost of Material Consumed

Cost of Material Consumed consists of cost of material consumed and purchases of raw materials.

Changes in Inventories

Changes in Inventories comprises of difference in opening and closing balance of Semi-Finished and Finished Goods.

Employee Benefit Expenses

Employee benefit expenses comprise of Directors Remuneration, Salary and wages, PF & ESIC Contributions and Provision for Gratuity.

Financial Charges

Financial Charges comprises of Interest on secured and unsecured loan.

Depreciation and Amortization Expenses

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

Other Expenses

Other Expenses comprises of Direct Manufacturing Expenses, Administrative & Other Expenses and Selling & Distribution Expenses.

Provision for Taxation

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

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2025 WITH FISCAL 2024

Total Revenue:

The total revenue, comprising both revenue from operations and other income, has reduced to 4,395.42 lakhs in FY 2024-25 from 4,409.42 lakhs in FY 2023-24. This represents a decrease of 14.00 lakhs, or 0.32% for the said period, mainly due to lower Revenue from Operations in the current fiscal as compared to the last.

Revenue from Operations:

The net revenue from operations i.e. excluding inter-branch transfer has decreased to 4,385.65 lakhs (99.78% of the total revenue) in FY 2024-25, from 4,401.68 lakhs (99.82% of the total revenue) in FY 2023-24. This represents a decrease of 16.03 lakhs, or 0.36% for the said period. This marginal decrease is primarily on account of the sale of the Babina Unit during the current fiscal. However, sales from the continuing unit increased significantly from 2,589.46 lakhs in FY 2023-24 to 4,385.65 lakhs in FY 2024-25, representing a growth of 1,796.19 lakhs or 69.37%. This substantial increase is attributable to higher demand for the Companys diversified product range across various states. Further, export sales increased to 18.95 Lakhs in FY 24-25 as compared to 12.05 Lakhs in FY 23-24.

Other Income:

The other income of the company for FY 2024-25 increased to 9.77 Lakhs (0.22% of the total revenue) from 7.74 Lakhs (0.18% of the total revenue) in the FY 2023-24 i.e. Other Income increased by 2.03 Lakhs (26.23% for the said period).

This increase was primarily due to the Profit on Foreign Exchange Translation.

Total Expenses

The total expenses (excluding Depreciation & Amortization Expenses, Financial Charges and provision for tax) for the FY 2024-25 were decreased to 3,402.31 Lakhs (77.41% of total revenue) as against 3,864.84 Lakhs (87.64% of total revenue) in the FY 2023-24 i.e., total expenses decreased by 462.53 lakhs (11.97% for the said period). This decrease was primarily due to the sale of the Babina unit which has led to lower operating costs from the ongoing unit. In addition, the Companys strategic focus on developing lighter-weight products contributed to further cost efficiencies and overall expense reduction.

Cost of Material Consumed:

The total cost of material consumed have decreased to 2,836.79 lakhs (64.54% of the total revenue) in FY 2023-24 from 3,136.14 lakhs (71.12% of the total revenue) in FY 2023-24 i.e. the above expenses decreased by 299.35 lakhs (9.55% for the said period). This fall was primarily driven by lower purchases during the current fiscal year.

Changes in Inventories:

The total Changes in Inventories of finished goods and semi-finished goods changed to (115.33) lakhs in FY 2024-25 from

(35.09) lakhs in FY 2023-24.

Employee Benefit Expenses:

The Employee Benefit Expenses for the FY 2024-25 was marginally decreased to 492.27 Lakhs (11.20% of the total revenue) from 492.40 Lakhs (11.17% of the total revenue) in the FY 2023-24 i.e., employee benefit expenses decreased by 0.13 lakhs (0.03% for the said period). This marginal decrease can be attributed to cost savings arising due to the unit sold, coupled with the Companys efficient utilization of its existing workforce and strategic management of casual labour requirements.

Other Expenses:

The Other Expenses for the FY 2023-24 was decreased to 188.58 Lakhs (4.29% of the total revenue) from 271.39 Lakhs (6.15% of the total revenue) in the FY 2023-24 i.e., other expenses decreased by 82.81 lakhs (30.51% for the said period).

This decrease is mainly due to decrease in manufacturing expenses and Other administrative expenses.

Depreciation and Amortisation Expenses:

The Depreciation and Amortisation expenses for FY 2024-25 decreased to 70.32 Lakhs (1.60% of the total revenue) from 96.42 Lakhs (2.19% of the total revenue) in the FY 2023-24 i.e., depreciation decreased by 26.10 lakhs (27.07% for the said period). This fall was primarily due to the elimination of assets during the fiscal year.

Financial Charges:

The Financial Charges for the FY 2024-25 decreased to 88.28 (2.01% of the total revenue) Lakhs from 116.58 (2.64% of the total revenue) in the FY 2023-24 i.e., financial charges decreased by 28.30 lakhs (24.27% for the said period). This decrease was mainly due to the lower interest, in line with the reduced borrowings in the current fiscal as compared to the last.

Profit/ (Loss) Before Tax:

The restated Profit before Tax for FY 2024-25 was increased to 826.23 Lakhs (18.79% of total income) as against 331.58 Lakhs (7.53% of total income) in the FY 2023-24 i.e., profit before tax increased by 494.65 Lakhs (149.18% for the said period). The increase in Profit Before Tax (PBT) for the current fiscal year was primarily driven by effective cost reduction measures, including rationalization of operating expenses and improved production efficiencies. Further, higher sales from the continuing unit and favourable foreign exchange fluctuation also resulted in higher profits.

Total Tax Expenses:

The total tax expense for FY 2024-25 increased to 220.72 Lakhs (5.03% of total income) as against 86.19 Lakhs (1.95% of total income) in the FY 2023-24. This increase was mainly due to increase in Profit before Tax as mentioned above.

Profit/ (Loss) After Tax:

The restated Profit after Tax for FY 2024-25 increased to 605.52 Lakhs (13.76% of total income) as against 245.39 Lakhs (5.58% of total income) in the FY 2023-24. This increase was mainly due to increase in Profit before Tax as explained above.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2024 WITH FISCAL 2023

Total Revenue:

The total revenue, comprising both revenue from operations and other income, has risen to 4,409.42 lakhs in FY 2023-24, up from 3,916.96 lakhs in FY 2022-23. This represents an increase of 492.46 lakhs, or 12.57% for the said period, mainly driven by a growth in domestic revenue from the companys operations.

Revenue from Operations:

The net revenue from operations i.e. excluding inter-branch transfer has increased to 4,401.68 lakhs (99.82% of the total revenue) in FY 2023-24, up from 3,897.24 lakhs (99.50% of the total revenue) in FY 2022-23. This represents an increase of 504.44 lakhs, or 12.94% for the said period. The Domestic sales have grown to 4,389.63 lakhs in FY 2023-24, up from 3,489.70 lakhs in FY 2022-23, while export sales have dropped to 12.05 lakhs in FY 2023-24, down from 407.54 lakhs in FY 2022-23. The growth was primarily driven by a strong focus on the Indian market. Export sales saw a significant decline due to geopolitical challenges, particularly in Sudan, which was severely affected by civil war. This led to a sharp drop in international sales. In response, the company strategically shifted its attention to the Indian market, where there were better opportunities, ensuring overall revenue growth despite the fall in exports. The increase in turnover was further driven by higher sales volumes of both threshers and other products, along with a rise in the price compared to FY 2023, significantly contributing to the revenue growth.

Other Income:

The other income of the company for FY 2023-24 decreased to 7.74 Lakhs (0.18% of the total revenue) as against 19.72 Lakhs (0.50% of the total revenue) in the FY 2022-23 i.e. Other Income decreased by 11.98 Lakhs (60.76% for the said period). This decrease was primarily due to the reduction in duty drawback resulting from lower exports.

Total Expenses

The total expenses (excluding Depreciation & Amortization Expenses, Financial Charges and provision for tax) for the FY 2023-24 were increased to 3,864.84 Lakhs (87.64% of total revenue) as against 3,644.57 Lakhs (93.05% of total revenue) in the FY 2022-23 i.e., total expenses increased by 220.27 lakhs (6.04% for the said period). This increase was primarily due to higher Cost of Material Consumed, Employee Benefit Expenses and Other Expenses all of which resulted from an increase in operational volume during the fiscal year, as highlighted in the revenue from operations above.

Cost of Material Consumed:

The total cost of material consumed have increased to 3,136.14 lakhs (71.12% of the total revenue) in FY 2023-24 from 2,652.25 lakhs (67.71% of the total revenue) in FY 2022-23 i.e. the above expenses increased by 483.89 lakhs (18.24% for the said period). This rise was primarily driven by higher purchases during the current fiscal year, in line with the growth in operational volume, as reflected in the revenue from operations above.

Changes in Inventories:

The total Changes in Inventories of finished goods and semi-finished goods changed to (35.09) lakhs in FY 2023-24 from 41.54 lakhs in FY 2022-23. The change was mainly due to a higher closing stock, which resulted from increased production to meet future demand and strategic inventory buildup to mitigate potential supply disruptions. Despite higher revenue, these factors led to a larger stock at the end of the fiscal year.

Employee Benefit Expenses:

The Employee Benefit Expenses for the FY 2023-24 was decreased to 492.40 Lakhs (11.17% of the total revenue) as against 576.38 Lakhs (14.72% of the total revenue) in the FY 2022-23 i.e., employee benefit expenses decreased by

83.98 lakhs (14.57% for the said period). This decrease was mainly because the company optimized its use of existing resources and strategically managed casual labour costs to further contribute to the cost savings.

Other Expenses:

The Other Expenses for the FY 2023-24 was decreased to 271.39 Lakhs (6.15% of the total revenue) as against 374.40

Lakhs (9.56% of the total revenue) in the FY 2022-23 i.e., other expenses decreased by 103.01 lakhs (27.51% for the said period). This decrease is mainly due to decrease in expenses related to export and Other administrative expenses.

Depreciation and Amortisation Expenses:

The Depreciation and Amortisation expenses for FY 2023-24 increased to 96.42 Lakhs (2.19% of the total revenue) as against 86.32 Lakhs (2.21% of the total revenue) in the FY 2022-23 i.e., depreciation increased by 10.10 lakhs (11.70% for the said period). This rise was primarily due to the capital expenditure incurred during the fiscal year.

Financial Charges:

The Financial Charges for the FY 2023-24 increased to 116.58 (2.64% of the total revenue) Lakhs as against 95.75 Lakhs (2.44% of the total revenue) in the FY 2022-23 i.e., financial charges increased by 20.83 lakhs (21.76% for the said period).

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

Profit/ (Loss) Before Tax:

The restated Profit before Tax for FY 2023-24 was increased to 331.58 Lakhs (7.53% of total income) as against 90.32 Lakhs (2.30% of total income) in the FY 2022-23 i.e., profit before tax increased by 241.26 Lakhs (267.13% for the said period). The increase in Profit Before Tax (PBT) for the current fiscal year can be attributed to several factors. There was a decrease in export-related expenses due to comparatively lower export volumes. Additionally, the company enhanced its resource utilization and strategically managed costs, leading to savings, as reflected in lower other expenses and employee-related costs. Furthermore, favourable pricing of raw materials and higher selling prices contributed to the overall increase in profit.

Total Tax Expenses:

The total tax expense for FY 2023-24 increased to 86.19 Lakhs (1.95% of total income) as against 29.61 (0.75% of total income) Lakhs in the FY 2022-23. This increase was mainly due to increase in Profit before Tax as mentioned above.

Profit/ (Loss) After Tax:

The restated Profit after Tax for FY 2023-24 increased to 245.39 Lakhs (5.58% of total income) as against 60.71 Lakhs

(1.55% of total income) in the FY 2022-23. This increase was mainly due to increase in Profit before Tax as explained above.

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

1. Unusual or infrequent events or transactions

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

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

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

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

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

4. Expected Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by demand/supply situation, Government Policies and

Taxation and Currency fluctuations.

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

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

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

The Company is mainly engaged in manufacturing and selling of agricultural machineries and equipment i.e. Threshers, Harvesters, Reapers, Rotavators, Cultivators, and more and all the activities of the business revolve around this main business. Therefore, there are no separate reportable segments.

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

Apart from the recent business initiatives discussed in "Our Business" on page 124, we currently have no plans to develop new products or establish new business segments.

8. Seasonality of business

We consider our business to be seasonal, as the manufacturing and sale of our agricultural machinery and equipment are closely tied to the harvesting and sowing seasons of different agricultural crops. Our income and profits may vary from quarter to quarter depending on factors including change in weather, outbreak of viral and seasonal diseases.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 99 and 124 respectively of the prospectus.

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

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