Horizon Reclaim India Ltd Management Discussions

(II> Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.

Except as otherwise stated in this Red Herring Prospectus and the Risk Factors given in the Red Herring Prospectus, there are no other factors that could cause actual results to differ materially from the expectations.

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

The restated summary statement of assets and liabilities of the Company as at March 31, 2026, March 31, 2025 and March 31, 2024 and the related restated summary statement of profits and loss and cash flows for the year ended March 31, 2026, March 31, 2025 and March 31, 2024 (herein collectively referred to as (“Restated Summary Statements”) have been compiled by the management from the audited Financial Statements of the Company for the year ended March 31, 2026, March 31, 2025 and March 31, 2024 approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the “Act”) read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”) issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019) (“Guidance Note”). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the BSE in connection with its proposed SME IPO. The Company’s management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements.

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current - non-current classification of assets and liabilities.

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

All Property, Plant & Equipment are recorded at cost including taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

Depreciation on fixed assets is calculated on a Written - Down value method using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013.

Intangible assets including software are amortized on straight line method basis over 3 years in pursuance of provisions of AS- 26.

Inventories comprise of Raw Material, Finished Goods and Stock-in-Trade.

Raw materials are measured at the lower of cost and net realisable value. The cost of raw materials is based on the first-infirst-out method principle. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Finished goods are valued at lower of cost and net realizable value. The cost of finished goods includes raw material costs (net of recoverable taxes), direct cost of conversion and proportionate allocation of indirect costs incurred in bringing the inventories to their present location and condition.

Stock-in-trade are valued at lower of cost and net realizable value. The cost of stock-in-trade is based on the first-in-first-out method principle.

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis.

Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method.

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Any income or expense on account of exchange difference either on settlement or on translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it arises.

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

Sale of Goods:

Revenue is recognised when the significant risks and rewards of ownership of goods are transferred to the buyer, the amount of revenue can be reliably measured and it is reasonable to expect ultimate collection. Gross revenue is recognised net of trade discounts, rebates and Goods and Services Tax (GST).

Other Operating Income:

Income from sale of EPR credits is recognised when the credits are duly generated, verified and transferred to the buyer, and when significant risks and rewards related to such credits are transferred, the amount of consideration is measurable with reasonable certainty, and collection is probable.

The revenue is measured at the fair value of consideration received or receivable, net of applicable taxes and levies.

Any costs directly attributable to generation of EPR credits are recognised as expenses in the period in which the related income is recognised.

Interest Income on fixed deposit is recognized on time proportion basis. Other Income is accounted for when right to receive such income is established.

Income taxes are accounted for in accordance with Accounting Standard (AS-22) - “Accounting for taxes on income”, notified under Companies (Accounting Standards) Rules, 2021. Income tax comprises of both current and deferred tax.

Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date.

Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Basic earnings per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the statement of profit and loss.

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employee. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service without any monetary limit. Vesting occurs upon completion of five years of service. Provision for gratuity has been made in the books as per actuarial valuation done as at the end of the year/period.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

Our total income comprises of revenue from operations and other income.

The Revenue from operations as a percentage of our total income was 98.82%, 99.53% and 99.47% for the Financial Years ended March 31, 2026, March 31, 2025 and March 31, 2024 respectively.

(Amount f in Lakhs)

Our other Income primarily consists of Interest on Deposits, Gain on Foreign Exchange, Interest on Income tax refund & Electricity Security, Discount received, Profit on sale of Fixed Assets, Reversal of Leave enhancement & Miscellaneous income.

(Amount f in Lakhs)

Our total expenditure primarily consists of Cost of material consumed, Direct expenses, Employee benefit expenses, finance costs, Depreciation and Other Expenses.

Our cost of material consumed comprises of Purchases of materials.

Our direct expenses primarily comprise of Power & Fuel, Labour expenses, Packaging charges, Custom Duty expenses, Freight expense, Electricity charges, License fees, Testing, Clearing and other charges.

Our employee benefits expense comprises of Salaries and wages, Staff Welfare, Directors Remuneration, Contribution to Provident fund & ESIC, Leave Enhancement Expenses and Provision for Gratuity.

Our Finance cost expenses comprise of Interest Expenses, bank Charges and Interest on delayed payment of GST, Income Tax, TDS.

Our other expenses primarily comprise of Auditors remuneration, Rates & Taxes, Legal and Professional Charges, Insurance, Building Repair and Maintenance, Sales Commission, Security charges, Miscellaneous Expenses, etc.

(Amount f in Lakhs)

The provision for current taxation 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 certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

The Revenue from Operations of our company for fiscal year 2026 was Rs. 4,942.08 Lakhs against Rs. 3,621.61 Lakhs for Fiscal year 2025. An increase of 36.46% in revenue from operations. This increase was due to higher sales volume during the year, driven by increased demand for the Company’s products and expansion in business operations. The growth in sales was supported by improved market penetration, strengthening of customer relationships, and efficient execution of sales strategies. Further, the Company benefited from better capacity utilisation and enhanced operational efficiencies, which enabled it to cater to the growing market requirements effectively.

The other income of our company for fiscal year 2026 was Rs. 58.99 Lakhs against Rs. 17.24 for Fiscal year 2025. The increase of 242.17% in other income. This increase is primarily attributable to foreign exchange fluctuation gains and discounts received during the year.

The total income of the company for fiscal year 2026 was Rs. 5,001.07 Lakhs against Rs. 3,638.85 Lakhs of total income for Fiscal year 2025 with an increase of 37.44% in total income. This was primarily due to the combined impact of higher sales revenue, foreign exchange gains, and discounts received during the year.

The growth in revenue from operations was driven by increased sales volume and improved business performance, which significantly contributed to the overall rise in total income. Additionally, favourable foreign exchange fluctuations on business transactions and higher discounts/incentives received from suppliers and business associates further strengthened the Company’s income during the year.

In Fiscal 2026, cost of material consumed were t 2,855.05 Lakhs against t 2,058.44 Lakhs of Cost of material consumed in fisc al 2025. An increase of 38.70%. This increase was due to higher production and sales volumes during the year in line with the growth in business operations.

The rise in cost was mainly driven by increased procurement of raw materials to support enhanced operational activities and fulfil higher customer demand. Further, fluctuations in prices of key raw materials, transportation costs, and overall market conditions also contributed to the increase in material consumption cost during the year.

In Fiscal 2026, Purchase of Stock-in-Trade was t 28.46 Lakhs against t 26.07 Lakhs of Purchase of Stock-in-Trade in fiscal 2025. An increase of 9.17%. This increase was due to higher trading activities and increased business requirements during the year.

In Fiscal 2026, the Company incurred Direct expenses of t 748.40 Lakhs against t 393.41 Lakhs of Direct expenses in fiscal 20 25. An increase of 90.23%. The increase in direct expenses was primarily attributable to higher power and fuel expenses, clearing and forwarding charges, customs duty expenses, and carriage and loading charges incurred during the year.

The rise in these expenses was mainly driven by increased production and business activities, resulting in higher consumption of utilities and greater logistics and transportation requirements. Further, increased import-related activities and higher freight and handling costs contributed to the rise in customs duty and clearing & forwarding expenses.

In Fiscal 2026, the Company incurred employee benefit expenses of t 138.24 Lakhs against t 86.96 Lakhs expenses in fiscal 2025. An increase of 58.97%. This increase was due to the increase in employee benefit expenses was primarily attributable to higher salaries and wages, bonus payments, recognition of gratuity and leave encashment liabilities, and an increase in staff welfare expenses during the year.

The rise in employee-related costs was mainly driven by expansion in workforce, annual increments, and increased operational activities undertaken by the Company. Further, provisioning towards employee retirement and long-term benefits such as gratuity and leave encashment, along with enhanced employee welfare initiatives, also contributed significantly to the increase in expenses.

The finance costs for the Fiscal 2026 were t 119.79 Lakhs while it was t 21.81 Lakhs for Fiscal 2025. An increase of 449.24%. This was due to higher borrowings during the year, which resulted in an increase in interest expenses.

The increase in borrowings was mainly undertaken to support the Company’s expanding business operations, working capital requirements, and capital expenditure plans. Consequently, the associated interest burden on term loans, working capital facilities, and other borrowings increased during the year.

In fiscal 2026, our other expenses were t 146.06 Lakhs and Rs. 70.55 Lakhs in fiscal 2025. An increase of Rs.107.03%. This increas e was due to higher provision for bad and doubtful debts, CSR expenditure, exhibition expenses, duties and taxes, business promotion expenses, sitting fees paid to Independent Directors, legal and professional charges, and insurance expenses incurred during the year.

The increase in these expenses was mainly driven by the expansion of business operations and the Company’s continued focus on strengthening its business development and corporate governance framework. Higher legal and professional fees were incurred in connection with compliance, advisory, and business-related activities, while increased exhibition and business promotion expenses were aimed at enhancing market presence and customer outreach.

Our Company had reported a profit before tax for the Fiscal 2026 of Rs. 1,428.79 Lakhs against profit before tax of Rs. 972.41 La khs in Fiscal 2025.An increase of 46.93%. This increase was due to significant growth in revenue from operations, supported by higher sales volumes and improved business performance during the year.

The increase in profitability was further aided by higher other income, particularly foreign exchange gains and discounts received, which contributed positively to the overall financial performance of the Company. Despite the increase in operational, employee, finance, and other expenses in line with business expansion, the Company was able to maintain healthy margins through improved operational efficiencies, better capacity utilisation, and effective cost management practices.

Profit after tax for the Fiscal 2026 were at Rs. 1,050.06 Lakhs against profit after tax of Rs. 706.72 Lakhs in fiscal 2025, An Increase of 48.58%. This increase was due to increase in PBT.

The Revenue from Operations of our company for fiscal year 2025 was Rs. 3,621.61 Lakhs against Rs. 2,032.71 Lakhs for Fiscal year 2024. An increase of 78.17% in revenue from operations. This increase was primarily due to eligibility and monetization of EPR credits which became available for sale from FY 24-25. The EPR credit sale accrued over earlier periods and realized during the year. This increase was also due to improved capacity utilization which resulted in more efficient absorption of fixed manufacturing overheads. As a consequence of improved capacity utilization, the company achieved an operational scale up with production & sales volume increasing during the year and increased production is also due to installation of new machineries.

The other income of our company for fiscal year 2025 was Rs. 17.24 Lakhs against Rs. 10.89 for Fiscal year 2024. The increase of 58.31% in other income. This increase was due to profit on sale of Fixed Assets, increase in interest income and Discount is also received in this period which results in increase in other income.

The total income of the company for fiscal year 2025 was Rs. 3,638.85 Lakhs against Rs. 2,043.60 Lakhs of total income for Fiscal year 2024 with an increase of 78.06% in total income. This increase was due to cumulative effect of increase in Revenue from operations & Other Income.

In Fiscal 2025, cost of material consumed were Rs. 2,058.44 Lakhs against Rs. 1,603.46 Lakhs of Cost of material consumed in fisc al 2024. An increase of 28.37%. The increase was primarily driven by higher scale of operations and increased production volumes during the year. Additionally, the Company transitioned towards procurement from registered and consistent suppliers to ensure better quality and operational reliability, which may have led to relatively higher input costs.

The Purchase of Stock-in-Trade of our company was Rs. 26.07 Lakhs against Nil in fiscal 2024. This was due to scrap was imported in 2025 only.

In Fiscal 2025, the Company incurred Direct expenses of Rs. 393.41 Lakhs against Rs. 196.29 Lakhs of Direct expenses in fiscal 20 24. An increase of 100.42%. The increase was primarily due to higher production levels, leading to increased consumption of power and fuel. Additionally, import-related costs, including freight, carriage, and handling charges, contributed to the rise in direct expenses.

In Fiscal 2025, the Company incurred employee benefit expenses of Rs. 86.96 Lakhs against Rs. 80.43 Lakhs expenses in fiscal 2024. An increase of 8.12%. The increase was primarily due to higher manpower requirements for operating newly installed machinery and

increased production levels. Additionally, statutory contributions such as PF and ESIC were recognized during the year.

The finance costs for the Fiscal 2025 were Rs. 21.81 Lakhs while it was Rs. 0.16 Lakhs for Fiscal 2024. An increase of 13,531.25%. This increase was due to secured borrowings in the form of Term Loan, DLOD and Cash Credit made from ICICI bank that resulted in increased financial cost.

In fiscal 2025, our other expenses were Rs. 70.55 Lakhs and Rs. 55.30 Lakhs in fiscal 2024. An increase of 27.58%. This increase was majorly attributable to the increase in direct costs.

Our Company had reported a profit before tax for the Fiscal 2025 of Rs. 972.41 Lakhs against profit before tax of Rs. 95.09 Lakhs in Fiscal 2024. An increase of 922.62%. This increase was due combined effect of process standardization, improved raw material quality, better capacity utilization, favorable product mix, operating leverage & cost optimization initiatives.

Profit after tax for the Fiscal 2025 were at Rs. 706.72 Lakhs against profit after tax of Rs. 71.14 Lakhs in fiscal 2024, An Incr ease of 893.42%. The increase in PAT was primarily attributable to the significant growth in Profit Before Tax, along with stable effective tax rates.

(Amount f in lakhs)

1. For the year ended March 31, 2026, net cash flow from operating activities was Rs. 1,009.34 Lakhs. This comprised of the net profit before tax of Rs. 1,428.79 Lakhs, which was primarily adjusted for Depreciation and Amortisation expense of Rs. 90.02 Lakhs, Interest Cost of Rs. 113.33 Lakhs, Interest income of Rs. 1.72 Lakhs, Gratuity Provision of Rs. 8.84 Lakhs, Unrealised Foreign Exchange gain of Rs. 1.07 Lakhs, Leave Encashment Provision of Rs. 0.26 Lakhs, Interest on Income tax refund of Rs. 2.22 Lakhs Sundry balance written off of Rs. 0.10 Lakhs and Fixed asset balance written off of Rs. 0.13 Lakhs. The resultant operating profit before working capital changes was Rs. 1,636.42 Lakhs, which was primarily adjusted for an increase in Inventories of Rs. 622.52 Lakhs, Loans and Advances of Rs. 22.42 Lakhs, Other assets of Rs. 85.98 Lakhs, Trade Payables of Rs. 112.04 Lakhs and Other liabilities & provisions of Rs. 106.06 Lakhs. Additionally, there was a decrease in Trade Receivables of Rs. 200.02 Lakhs.

Cash generated from operations was Rs. 1,323.62 Lakhs, which was further reduced by direct tax paid for Rs. 314.28 Lakhs, resulting into net cash flow from operating activities of Rs. 1,009.34 Lakhs.

2. For the year ended March 31, 2025 net cash flow from operating activities was Rs. 171.31 Lakhs. This comprised of the net profit before tax of Rs. 972.41 Lakhs, which was primarily adjusted for Depreciation and Amortisation expense of Rs. 54.88 Lakhs, Interest Cost of Rs. 19.00 Lakhs, Interest income of Rs. 3.33 Lakhs, Gratuity provision of Rs. 3.16 Lakhs, Unrealised Foreign Exchange gain of Rs. 1.33 Lakhs, Leave encashment provision of Rs. 0.28 Lakhs, Interest on Income tax refund of Rs. 0.15 Lakhs, Profit on Sale of fixed assets of Rs. 12.35 Lakhs and Asset balance written off of Rs. 2.58 Lakhs. The resultant operating profit before working capital changes was Rs. 1,035.15 Lakhs, which was primarily adjusted for an increase in Inventories of Rs. 252.82 Lakhs, Trade Receivables of Rs. 300.61 Lakhs, Other Assets of Rs. 0.97 Lakhs, Loans and Advances of Rs. 56.13 Lakhs and Other Liabilities & Provisions of Rs. 77.81 Lakhs. Additionally, there was a decrease in Trade Payables of Rs. 25.47 Lakhs.

Cash generated from operations was Rs. 476.96 Lakhs, which was reduced by direct tax paid of Rs. 305.65 Lakhs, resulting into net cash flow from operating activities of Rs. 171.31 Lakhs.

3. For the year ended March 31, 2024 net cash flow from operating activities was Rs. 148.95 Lakhs. This comprised of the net profit before tax of Rs. 95.09 Lakhs, which was primarily adjusted for Depreciation and Amortisation expense of Rs. 21.70 Lakhs, Interest Cost of Rs. 0.11 Lakhs, Interest income of Rs. 2.01 Lakhs, Gratuity provision of Rs. 3.81 Lakhs, Leave encashment reversal of Rs. 0.07 Lakhs, Profit on Sale of fixed assets of Rs. 8.81 Lakhs. The resultant operating profit before working capital change was Rs. 109.82 Lakhs, which was primarily adjusted for an increase in Loans and Advances of Rs. 9.86 Lakhs and Trade Payables of Rs. 24.04 Lakhs. Additionally, there was a decrease in Inventories of Rs. 3.14 Lakhs, Trade Receivables of Rs. 68.35 Lakhs, Other Assets of Rs. 0.80 Lakhs and Other Liabilities & Provision of Rs. 22.01 Lakhs.

Cash generated from operations was Rs. 174.28 Lakhs, which was reduced by direct tax paid of Rs. 25.33 Lakhs, resulting into net cash flow from operating activities of t 148.95 Lakhs.

1. For the year ended March 31, 2026, net cash used in investing activities was Rs. 3,464.81 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs. 3,466.53 Lakhs and Interest income received of Rs. 1.72 Lakhs.

2. For the year ended March 31, 2025, net cash used in investing activities was Rs. 1,174.02 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs. 1,191.21 Lakhs, Interest income received of Rs. 3.33 Lakhs and Sale of property, plant & equipment of Rs. 13.86 Lakhs.

3. For the year ended March 31, 2024, net cash used in investing activities was Rs. 171.90 Lakhs, which primarily comprised of cash used for purchase of property, plant & equipment and intangible assets of Rs. 184.62 Lakhs, Interest income received of Rs. 2.01 Lakhs and Sale of property, plant & equipment of t 10.71 Lakhs.

1. For the year ended March 31, 2026, net cash flow from financing activities was t 2,460.06 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs. 3,247.96 Lakhs, Repayment of borrowing of Rs. 675.16 Lakhs and Interest cost paid of Rs. 112.74 Lakhs.

2. For the year ended March 31, 2025, net cash flow from financing activities was Rs. 983.86 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs. 1,756.15 Lakhs, Repayment of borrowing of Rs. 753.29 Lakhs and Interest cost paid of Rs. 19.00 Lakhs.

3. For the year ended March 31, 2024, net cash used in financing activities was Rs. 0.11 Lakhs, which primarily comprised of Proceeds from Borrowing of Rs. 256.20 Lakhs, Repayment of borrowing of Rs. 256.20 Lakhs and Interest cost paid of Rs. 0.11 Lakhs.

Except COVID-19 or any such kind of pandemic and as described in this Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as “unusual” or “infrequent”.

Other than as described in the Section titled “Financial Information” and chapter titled “Management’s Discussion and Analysis ofFinancial Conditions and Results of Operations,” beginning on Page 172 and 183 respectively of this Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

Apart from the risks as disclosed under Chapter titled “Risk Factors” beginning on page no. 23 in this Red Herring 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.

Our Company’s future costs and revenues will be determined by demand/supply situation, both of the end services as well as the government policies and other economic factors.

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

Our Company is operating in rubber industry. Relevant Industry data and, as available, has been included in the chapter titled “Industry Overview” beginning on page no. 107 of this Red Herring Prospectus.

Except as disclosed elsewhere in the Red Herring Prospectus, we have not announced any new products or business segments.

Our business is not seasonal in nature.

Our business is dependent on few clients. Our top 10 customers contributed 35.20%, 43.21%, and 50.03% of revenue from operations for F.Y. ending on March 31, 2026, March 31, 2025 and March 31, 2024 respectively.