HRS Aluglaze Ltd Management Discussions

OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Draft Red Herring Prospectus. You should also read the section entitled “Risk Factors” beginning on page 30 this Draft Red Herring Prospectus which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. The following discussion relates to our Company and is based on our restated financial statements, which have been prepared in accordance with the applicable Accounting Standards, the Companies Act and the SEBI Regulations. Portions of the following discussion are also based on internally prepared statistical information and on other sources.

Our financial statements have been prepared in accordance with the applicable Accounting Standard, the Companies Act and the ICDR Regulations and restated as described in the report of our auditor dated August 27, 2025,which is included in this Draft Red Herring Prospectus under “Financial Statements”. The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS.

Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelvemonth period ended March 31 of that year.

Overview of the Company

Our Company was originally incorporated as “HRS Aluglaze Private Limited” on March 30, 2012, in Ahmedabad, Gujarat under the Companies Act, 1956. Later, following approvals from the Board on August 5, 2024, and the Shareholders on August 7, 2024, the Company was converted into a Public Limited Company under the Companies Act, 2013. Upon conversion, the name of the Company was changed to “HRS Aluglaze Limited”, and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Central Processing Centre, on October 8, 2024.

Our Company is engaged in the business of design, manufacturing, and installation of a wide range of aluminium products, including windows, doors, curtain walls, cladding, and glazing systems. These solutions are carefully tailored to meet the specific requirements of builders, contractors, architect, and institutions, with both standard and customized options and requirements and our Company also provide material supply and procurement support. With years of expertise, it has earned a stellar reputation for delivering tailored solutions to architects, builders, institutions, and corporations. HRS provides distinctive and modern designs for standard to high-end living for all preferences of diversified consumers. HRS offers unique & contemporary designs for upscale living. Our items are made in India with consideration for the climate in territorial region.

Over the years, our Company have evolved capability of providing good quality architectural systems, delivering reliable and customized solutions for commercial, residential, industrial, and institutional projects including hospitals.

Our company is ISO 9001:2015 certified for the supply and installation of facade works, aluminium doors and windows, and related solutions for residential, commercial, and industrial structures, reflecting our strong focus on quality and service. We have also been awarded the MSME ZED Bronze Certification by the Ministry of Micro, Small and Medium Enterprises, recognizing our commitment to delivering high-quality, defect-free work with minimal environmental impact. This enhances our credibility, improves our eligibility for government projects, and encourages ongoing operational improvements. Backed by the sound experience of our promoters in the aluminium fabrication and facade industry. Their combined expertise in manufacturing, distribution, and installation of architectural products has played a vital role in expanding our presence across diverse market segments.

In terms of revenue, there has been a significant jump in the last three years. The business turnover in the year 2023 was Rs.2,255.28 lakhs which increased in the year 2024 to Rs.2,669.02 lakhs & later the same has increased in the year 2025 to Rs.4,210.85 lakhs. The real estate market and public infrastructure in Ahmedabad serves as an opportunity for the Company While primarily a geographical business, the Company are now working on projects Pan-India.

Our manufacturing facility is located in Village Rajoda, Taluka Bavla, Ahmedabad, Gujarat, and currently spans approximately 11,176 square meters of area. To support our long-term growth strategy and cater to the rising demand for our products and services. With in-house infrastructure, CNC precision machinery, and powder coating facilities and anodizing, we maintain good quality standards across all operations. We have proposed an expansion of approximately 13,714 square meters adjoining to current facility area. Equipped with CNC machinery for fabrication and assembly, the facility supports efficient production process. Strict quality control measures are embedded throughout to maintain consistently high standards.

Our Company has successfully completed several projects across commercial complexes, residential towers, industrial facilities, and government infrastructure. As of the date of this Draft Red Herring Prospectus, we have a strong pipeline of 26 active projects, which together are expected to contribute approximately Rs.6,958.58 Lakhs (Rs.69.59 crores). This success underscores its commitment to excellence, sustained growth, and a dedication to delivering exceptional results for clients, making it an attractive prospect for potential investors. We believe in gaining customer satisfaction through process enhancements and constant innovation in our services.

For more information on our Companys business, please refer to chapter titled “Our Business” on page 148 of this Draft Red Herring Prospectus.

Significant Developments Subsequent to the period ending on March 31, 2025

After the date of last audited accounts i.e. March 31, 2025, the Directors of our Company confirm that, there have not been any significant material developments which materially and adversely affect or is likely to affect within the next twelve months for the trading or profitability of the Company, the value of its assets or its ability to pay its liability.

Key Operational and Financial Performance Indicators:

The business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factor” beginning on page 30 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

The KPIs disclosed below have been used historically by our Company to understand and analyse the business performance, which in result, help us in analysing the growth of the Company.

Our Company confirms that it shall continue to disclose all the KPIs included in this section on a periodic basis, at least once in a year (or any lesser period as determined by the Board of our Company), for a duration of one year after the date of listing of the Equity Shares on the Stock Exchange or till the complete utilisation of the proceeds of the Fresh Issue as per the disclosure made in the Objects of the Issue Section, whichever is later or for such other duration as may be required under the SEBI ICDR Regulations.

The KPIs of our Company have been disclosed in the sections titled “Our Business” and “Managements Discussion and Analysis of Financial Position and Results of Operations” on page 148 and 270, respectively. We have described and defined the KPIs as applicable in “Definitions and Abbreviations” on page 1of this Draft Red Herring Prospectus.

(Rs. in Lakh, except percentages Sq. FT and Ratio)

Particulars	FY 2025	FY 2024	FY 2023
Revenue from Operations (Rs. in Lakh) (1)	4,210.85	2,669.02	2,255.28
Total Revenue (Rs. in Lakh)(2)	4,214.46	2,697.37	2,268.84
EBITDA (Rs. in Lakh) (3)	1,070.47	353.38	174.82
EBITDA Margin (%) (4)	25.42	13.24	7.75
Profit After Tax (Rs. in Lakh) (5)	514.64	178.65	86.81
Net profit ratio (%) (6)	12.22	6.69	3.85
RoE (%) (7)	34.24	19.71	18.92
Debt To Equity Ratio(8)	1.92	2.45	2.19
RoCE (%)(9)	15.97	10.58	6.88
Current Ratio (10)	0.92	0.84	0.88
Sq. FT Sold in Year (11)	7,27,433	5,73,314	4,29,512

As certified by M/s Shah & Patel, Chartered Accountants pursuant to their certificate dated August 14, 2025. The Audit committee in its resolution dated September 08, 2025 has confirmed that the Company has not disclosed any KPIs to any investors at any point of time during the three years preceding the date of this Draft Red Herring Prospectus other than as disclosed in this section.

1) Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial information.

2) Total Revenue means the Revenue from operations plus other Income.

3) EBITDA refers to earnings before interest, taxes, depreciation, amortisation and exceptional items. EBITDA excludes other income.

4) EBITDA Margin refers to EBITDA during a given period as a percentage of revenue from operations during that period.

5) Profit After Tax provides information regarding the overall profitability of the business/company.

6) Net Profit Ratio quantifies our efficiency in generating profits from revenue from operations and is calculated by dividing net profit after taxes but before other comprehensive income by revenue from operations.

7) Return on equity (RoE) is equal to Net profit after taxes divided by average shareholders equity excluding preference share capital.

8) Debt to equity ratio is calculated by dividing Total debt by Shareholders Equity (excluding preference share capital) and where total debt refers to sum of current & non-current borrowings including preference share capital.

9) RoCE (Return on Capital Employed) (%) is calculated as profit before tax plus finance costs divided by sum of total equity, non-current borrowings and current borrowings as at the year end.

10) Current Ratio is a liquidity ratio that measures our ability to pay off its short-term obligations (those which are due within one year) using its current assets (those which are convertible to cash within one year) and is calculated by dividing the current assets by current liabilities.

11) Sq.Ft sold in a year means total square footage (area) of fabricated material sold and delivered during a financial year.

The KPIs disclosed above have been approved by a resolution of our Audit Committee dated September 08, 2025 and the members of the Audit Committee have verified the details of all KPIs pertaining to the Company. Further, the members of the Audit Committee have confirmed that there are no KPIs pertaining to our Company that have been disclosed to any investors at any point of time during the three years period prior to the date of filing of this DRHP. Further, the KPIs herein have been certified by M/s Shah & Patel, Chartered Accountants, by their certificate dated September 02, 2025.

Key factors affecting our results of operations

Our business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factors” beginning on page 30of this Draft Red Herring Prospectus. Our Results of Operations and financial conditions are affected by numerous factors including the following:

• Our effectiveness in securing and delivering projects

• Project Timeliness and seasonal patterns

• Input cost volatility and labour-intensive nature

• Availability of cost-effective funding sources

• Competition from existing and new entrants

• Technological adaptability

• General economic and demographic changes

• Changes in laws and regulations that apply to the industry in which we operate Our Significant Accounting Policies:

For Significant accounting policies please refer Significant Accounting Policies, in the section titled “ Financial Information” on page 224 of this Draft Red Herring Prospectus.

Discussion on Results of Operations:

The following discussion on results of operations should be read in conjunction with the restated financial results of our Company for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023.

Main Components of our Profit and Loss Account

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

Revenue from Operations- Our Revenue from Operations includes Domestic sale of goods, Sale of services and other operating revenue. This mainly includes works contract income, labour work income and material sale.

Other Income - Other Income majorly comprises of Interest Income, Income from Investment, Lease Rental Income, Foreign Exchange Gain, etc.

Expenses - Our total expenses primarily consists of Cost of Materials Consumed, Change in inventories of WIP, finished goods or stock in trade, Employees Benefit Expenses, Finance Costs, Depreciation and Amortization Expenses and Other Expenses.

Cost of Materials Consumed - Cost of Materials Consumed includes purchase of Raw Materials and difference between the Closing & Opening stock of the Raw Materials.

Changes in Inventories of WIP, Finished Goods or stock in trade - Changes in Inventory primarily consist of difference between Inventories at end of the year and beginning of the year.

Employees Benefit Expenses- Our Employees Benefits Expense comprises of Salaries, Wages and Incentives, Remuneration to Directors, Contribution to Provident Fund & Gratuity and Staff Welfare Expenses.

Finance costs- Finance costs include the Interest cost on Borrowings, Bank charges & other Finance cost.

Other Expenses - Other Expenses primarily include Labour expenses, Freight & Transport expenses, Rent expenses, Power & Fuel expenses, Professional fees & Legal charges, Repairs & Maintenance, Travel and Conveyance, General expense, etc.

Provision for Tax - The provision for current taxation is computed in accordance with relevant tax regulations. 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 certain that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

RESULTS OF KEY OPERATIONS

(Rs. in Lakhs, except percentages)

	For the year ended on
Particulars	March 31, 2025	% of Total Revenue	March 31, 2024	% of Total Revenue	March 31, 2023	% of Total Revenue
Revenue from Operations	4,210.85	99.91%	2,669.02	98.95%	2,255.28	99.40%
Other income	3.61	0.09%	28.35	1.05%	13.56	0.60%
Total Revenue	4,214.46	100.00%	2,697.37	100.00%	2,268.84	100.00%
Cost of Material Consumed	2,443.77	57.99%	1,608.10	59.62%	1,504.35	66.30%
Change in Inventories of WIP	(516.13)	(12.25)%	(206.63)	(7.66)%	(17.91)	(0.79)%
Employees Benefit Expenses	380.50	9.03%	171.05	6.34%	124.76	5.50%

 

	For the year ended on
Particulars	March 31, 2025	% of Total Revenue	March 31, 2024	% of Total Revenue	March 31, 2023	% of Total Revenue
Finance costs	251.35	5.96%	122.78	4.55%	58.30	2.57%
Depreciation and Amortization	135.08	3.21%	18.49	0.69%	8.85	0.39%
Other expenses	832.24	19.75%	743.12	27.55%	469.26	20.68%
Total Expenses	3,526.81	83.68%	2,456.92	91.09%	2,147.61	94.66%
Profit before tax	687.65	16.32%	240.46	8.91%	121.23	5.34%
Tax expense	173.01	4.11%	61.81	2.29%	34.42	1.52%
Profit (Loss) for the year	514.64	12.21%	178.65	6.62%	86.81	3.83%

COMPARISON OF FY 2025 WITH FY 2024

Revenue from Operations:

In FY 2025, Revenue from Operations increased by 57.77% to Rs.4,210.85 lakhs from Rs.2,669.02 lakhs in FY 2024. The overall increase is primarily attributed to execution of more number of projects & high value projects. In FY 2024, Revenue from Operations was generated from Gujarat & Telangana. However, in FY 2025, Revenue from Operations was generated from Gujarat, Telangana & Maharashtra. The Company is gradually expanding its wings across Pan India.

The Company executed 70 projects in FY 2025 as compared to 65 projects in FY 2024.

(Rs. In Lakh, except percentage)

States	As at March 31, 2025		As at March 31, 2024
	Revenue*	% of Revenue#	Revenue*	% of Revenue#
Gujarat	3,671.01	87.18%	2639.83	98.91%
Telangana	143.81	3.42%	29.19	1.09%
Maharashtra	396.03	9.41%	-	-
Total	4,210.85	100.00%	2669.02	100.00%

a Revenue from Operations from the Restated Financial Information # as a percentage of Revenue from Operations from the Restated Financial Information

Revenue - Other Income:

Other income decreased by 87.28% to Rs.3.61 lakhs in FY 2025 from Rs.28.35 lakhs in FY 2024. The other income in FY 2024 includes non-recurring item of Profit on sale of Investments/Fixed Assets amounting to Rs.22.28 lakhs and Interest Income amounting to Rs.5.93 lakhs. The other Income in FY 2025 includes Interest Income amounting to Rs. 2.97 lakhs.

Cost of Materials Consumed:

Cost of Materials consumed increased for the FY 2025 by 51.97% to Rs. 2,443.77 lakhs from Rs. 1,608.10 lakhs in FY 2024. This increase was primarily due to increase in raw material consumption in our business operations. The increase in purchase of raw materials in FY 2025 was by 77.96% to Rs. 2,923.73 lakhs from Rs. 1,642.95 lakhs in FY 2024.

Changes in inventory of WIP:

Changes in inventory of WIP for the FY 2025 was Rs. (516.13) lakhs from Rs. (206.63) lakhs for FY 2024 in accordance with increase in the number of projects.

Employee Benefits Expenses:

Employee benefit expenses increased by 122.45% in FY 2025, rising to Rs. 380.50 lakhs from Rs.171.05 lakhs in FY 2024. The increase was mainly driven by higher Directors remuneration, an increase in salaries and wages and contribution to Provident fund & other funds, reflecting an expanded workforce during the year.

Finance Cost:

Finance cost increased by 104.72% in the FY 2025, rising to Rs. 251.35 lakhs from Rs.122.78 lakhs in FY 2024. Total Borrowings including long term & short term increased to Rs.3,865.59 lakhs in FY 2025 from Rs.2,435.49 lakhs in FY 2024. This increase in Finance cost was mainly due to increase in the Borrowings amount & the Borrowing costs.

Depreciation and Amortisation Expenses:

Depreciation and amortization in the FY 2025 increased to Rs. 135.08 lakhs from Rs. 18.49 lakhs in FY 2024 stemming from addition to tangible assets from Rs.2,719.12 lakhs in FY 2024 to Rs.4,607.77 lakhs in FY 2025.

Other Expenses:

Other expenses in the FY 2025 increased by 11.99%, reaching Rs. 832.24 lakhs in FY 2025 from Rs. 743.12 lakhs incurred in the FY 2024. The increase in other expenses was primarily attributed to Rent expenses, Power & Fuel expense, Freight & Transport expenses and Professional Fees & Legal charges. Rent expenses increased from Rs. 38.06 lakhs in FY 2024 to Rs. 91.88 lakhs in FY 2025. Power & Fuel expense increased from Rs. 11.55 lakhs in FY 2024 to Rs. 32.39 lakhs in FY 2025. Freight & Transport expense increased from Rs. 11.15 lakhs in FY 2024 to Rs. 34.53 lakhs in FY 2025. Labour Expense was reduced from Rs. 535.14 lakhs in FY 2024 to Rs. 440.54 lakhs in FY 2025. Professional Fees & Legal charges increased from Rs. 11.88 lakhs in FY 2024 to Rs. 45.77 lakhs in FY 2025.

Tax Expenses:

Tax expenses increased to Rs. 173.01 lakhs in the FY 2025 from Rs. 61.81 lakhs in the FY 2024. This notable increase in tax expenses is primarily attributed to rise in current taxes attributed on the improved business operations. Profit after Tax (PAT).

Due to the aforementioned factors, Profit After Tax (PAT) for the FY 2025 reached Rs. 514.64 lakhs from Rs. 178.65 lakhs in the FY 2024 resulting in increased profitability primarily driven by the execution of more number of projects.

COMPARISON OF FY 2024 WITH FY 2023:

Revenue from Operations:

In FY 2024, Revenue from Operations increased by 18.35% to Rs. 2,669.02 lakhs from Rs. 2,255.28 lakhs in FY 2023. This overall growth was driven by a combination of completion of existing projects and obtaining new projects. In FY 2023, Revenue from Operations was generated only from Gujarat. However, in FY 2024, Revenue from Operations was generated from Gujarat & Telangana.

The Company executed 65 projects in FY 2024 as compared to 60 projects in FY 2023.

(Rs. In Lakh, except percentage)

States	As at March 31, 2024		As at March 31, 2023
	Revenue*	% of Revenue#	Revenue*	% of Revenue#
Gujarat	2639.83	98.91%	2,255.28	100%
Telangana	29.19	1.09%	0.00	-
Total	2669.02	100.00%	2,255.28	100.00%

a Revenue from Operations from the Restated Financial Information # as a percentage of Revenue from Operations from the Restated Financial Information

Revenue - Other Income:

Other Income in the FY 2024 increased by 109.03% to Rs. 28.35 lakhs as compared to Rs. 13.56 lakhs in the FY 2023. The Other Income in FY 2023 includes Lease Rental Income amounting to Rs. 11.39 lakhs and Interest Income amounting to Rs. 1.93 lakhs. The Other income in FY 2024 includes non-recurring item of Profit on sale of Investments/Fixed Assets amounting to Rs.22.28 lakhs and Interest Income amounting to Rs.5.93 lakhs.

Cost of Materials Consumed:

Cost of Materials consumed marginally increased for the FY 2024 by 6.90% to Rs. 1,608.10 lakhs from Rs. 1,504.35 lakhs in FY 2023. This increase was primarily due to increase in raw material consumption in our business operations. The increase in purchase of raw materials in FY 2024 was by 13.45% to Rs. 1,642.95 lakhs from Rs. 1,448.21 lakhs in FY 2023.

Changes in inventory of WIP:

Changes in inventory of WIP for the FY 2024 was Rs. (206.63) lakhs from Rs. (17.91) lakhs for FY 2023 in accordance with increase in the number of projects.

Employee Benefits Expenses:

Employee benefit expenses in FY 2024 increased by 37.10%, rising to Rs.171.05 lakhs from Rs.124.76 lakhs in FY 2023. The increase was primarily driven by increase in average employee salaries.

Finance Cost:

Finance cost increased by 110.59% in the FY 2024, rising to Rs. 122.78 lakhs from Rs.58.30 lakhs in FY 2023. Total Borrowings including long term & short term increased to Rs.2,435.49 lakhs in FY 2024 from Rs.1,790.50 lakhs in FY 2023.This increase was mainly due to availing of Cash Credit Facility in FY 2024 amounting to Rs.475.21 lakhs.

Depreciation and Amortisation Expenses:

Depreciation and amortization in the FY 2024 increased to Rs. 18.49 lakhs from Rs. 8.85 lakhs incurred in the FY 2023 as a result of increase in tangible assets from Rs. 338.75 lakhs in FY 2023 to Rs. 2,719.12 lakhs in FY 2024.

Other Expenses:

Other expenses in the FY 2024 increased by 58.36%, reaching Rs. 743.12 lakhs in FY 2024 from Rs. 469.26 lakhs incurred in the FY 2023. The increase in other expenses was primarily attributed to Labour expenses. Rent expenses increased slightly from Rs. 36.00 lakhs in FY 2023 to Rs. 38.06 lakhs in FY 2024. Power & Fuel expense increased from Rs. 5.63 lakhs in FY 2023 to Rs. 11.55 lakhs in FY 2024. Freight & Transport expense decreased from Rs. 16.07 lakhs in FY 2023 to Rs. 11.15 lakhs in FY 2024. Labour Expense was increased from Rs. 272.39 lakhs in FY 2023 to Rs. 535.14 lakhs in FY 2024. Professional Fees & Legal charges decreased from Rs. 26.53 lakhs in FY 2023 to Rs. 11.88 lakhs in FY 2024. General Expense was increased from Rs. 22.51lakhs in FY 2023 to Rs. 30.48 lakhs in FY 2024.

Tax Expenses:

Tax expenses have increased to a total of Rs. 61.81 lakhs in the FY 2024 from Rs. 34.42 lakhs in the FY 2023. This increase in tax expenses is primarily attributed to rise in current taxes attributed to the revenue of the Company.

Profit after Tax (PAT):

Due to the aforementioned factors, Profit After Tax (PAT) for the FY 2024 reached Rs. 178.65 lakhs from Rs. 86.81 lakhs in the FY 2023 resulting in increased profitability primarily driven by the execution of improved margins.

CASH FLOW

The table below summaries our cash flows from our Restated Financial statements for the financial years ended in 2025, 2024, and 2023:

(Rs. in lakhs)

Particulars	FY 2025	FY 2024	FY 2023
Net cash (used in)/ Generated from operating activities	288.74	145.92	(206.57)
Net cash (used in)/ Generated from investing activities	(1,962.21)	(674.36)	(1,709.86)
Net cash (used in)/ Generated from finance activities	1,684.22	520.88	1,914.42
Net increase/ (decrease) in cash and cash equivalents	10.75	(7.55)	(2.00)
Cash and Cash Equivalents at the beginning of the year	1.54	9.09	11.09
Cash and Cash Equivalents at the end of year	12.29	1.54	9.09

Cash Flow from/(used in) Operating Activities

Net cash generated from operating activities in the FY 2025 was Rs.288.74 lakhs and our profit before tax that period was Rs.687.65 lakhs. The difference was primarily attributable to depreciation of Rs.135.08 lakhs, Finance cost of Rs.251.35 lakhs.

Operating profit before working capital changes was Rs.1,071.18 lakhs. Changes in working capital for FY 2025 primarily consisted of working capital adjustments to inventory of Rs.(996.08) lakhs, trade receivables of Rs.(868.95) lakhs, short term loans and advances of t(74.10) lakhs, long term loans and advances of Rs.(54.36) lakhs, other current assets of Rs.(10.53) lakhs, other non-current assets of Rs.(0.78) lakhs, trade payables of Rs.509.87 lakhs, other current liabilities of Rs.736.45 lakhs, long term provisions of Rs.13.53 lakhs and other short term provisions of Rs.3.59 lakhs. Cash generated from operating activities was Rs.(741.38) lakhs, Income taxes paid was Rs.(41.06) lakhs.

Net cash generated from operating activities in the FY 2024 was Rs.145.92 lakhs and our profit before tax that period was Rs.240.46 lakhs. The difference was primarily attributable to depreciation of Rs.18.49 lakhs, Finance cost of Rs.122.78 lakhs, Profit on sale of Fixed Assets/Investments of Rs.(22.28) lakhs.

Operating profit before working capital changes was Rs.353.52 lakhs. Changes in working capital for FY 2024 primarily consisted of working capital adjustments to inventory of Rs.(241.47) lakhs, trade receivables of Rs.(154.90) lakhs, short term loans and advances of t22.48 lakhs, long term loans and advances of Rs.288.20 lakhs, other current assets of Rs.(39.26) lakhs, other non current assets of Rs.(34.17) lakhs, trade payables of Rs.226.40 lakhs, other current liabilities of Rs.(256.23) lakhs, long term provisions of Rs.4.59 lakhs and other short term provisions of Rs.2.39 lakhs. Cash generated from operating activities was Rs.(181.96) lakhs, Income taxes paid was Rs.(25.64) lakhs.

Net cash generated from operating activities in the FY 2023 was Rs.(206.57) lakhs and our profit before tax that period was Rs.121.23 lakhs. The difference was primarily attributable to depreciation of Rs.8.85 lakhs, Finance cost of Rs.58.30 lakhs.

Operating profit before working capital changes was Rs.186.83 lakhs. Changes in working capital for FY 2023 primarily consisted of working capital adjustments to inventory of Rs.38.23 lakhs, trade receivables of Rs.(99.79) lakhs, short term loans and advances of t(107.80) lakhs, long term loans and advances of Rs.(414.95) lakhs, other current assets of Rs.6.79 lakhs, other non current assets of Rs.(9.44) lakhs, trade payables of Rs.213.98 lakhs, other current liabilities of Rs.7.37 lakhs, long term provisions of Rs.2.42 lakhs and other short term provisions of Rs.9.73 lakhs. Cash generated from operating activities was Rs.(353.45) lakhs, Income taxes paid was Rs.(39.96) lakhs.

Cash Flow from/(used in) Investing Activities

In the FY 2025, net cash used in investing activities was Rs.(1,962.21) lakhs which was due to increase in Purchase of Fixed Assets Rs.(1,965.18) lakhs and Interest Income Rs.2.97 lakhs.

In the FY 2024, net cash used in investing activities was Rs.(674.36) lakhs which was due to increase in Purchase of Fixed Assets Rs.(1,020.29) lakhs set off by Inflow on sale of Investments of Rs.340.00 lakhs and Interest Income t5.93 lakhs.

In the FY 2023, net cash generated from investing activities was Rs.(1,709.86) lakhs which was due to increase in Purchase of Fixed Assets Rs.(1,393.68) lakhs, Purchase of Investments of Rs.(317.72) lakhs and Interest Income t1.55 lakhs.

Cash Flow from/(used in) Financing Activities

In the FY 2025, net cash used in financing activities was Rs. 1,684.22 lakhs resulting from inflow of proceeds of long term borrowings Rs. 1,114.83 lakhs, proceeds of short term borrowings Rs. 609.44 lakhs, proceeds from issue of share capital Rs. 500.00 lakhs set off by outflow of repayment of long-term borrowings Rs. (294.16) lakhs, Interest cost paid on borrowings Rs. (245.89) lakhs.

In the FY 2024, net cash used in financing activities was Rs. 520.88 lakhs resulting from inflow of proceeds of long term borrowings Rs. 990.98 lakhs, proceeds of short-term borrowings Rs. 455.21 lakhs set off by outflow of repayment of long term borrowings Rs. (801.20) lakhs, Interest cost paid on borrowings Rs. (124.10) lakhs.

In the FY 2023, net cash used in financing activities was Rs. 1,914.22 lakhs resulting from inflow of proceeds of long term borrowings Rs. 2,212.67 lakhs, proceeds from issue of share capital Rs. 630.00 lakhs set off by outflow of repayment of long term borrowings Rs. (858.45) lakhs, repayment of short term borrowings Rs. (11.49) lakhs, Interest cost paid on borrowings Rs. (58.30) lakhs.

Information required as per Item 11 (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations: Unusual or infrequent events or transactions

To our knowledge there have been no unusual or infrequent events or transactions that have taken place during the last three years.

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

Our business has been subject to, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled “Risk Factors” beginning on page 30of this Draft Red Herring Prospectus. To our knowledge, except as we have described in this Draft Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.

Income and Sales on account of major product/main activities

The company is engaged in the business of aluminium fabrication & glazing and facade works which is its core business from where it derives its revenues under the brand name HRS Aluglaze Limited.

Whether the company has followed any unorthodox procedure for recording sales and revenues

Our Company has not followed any unorthodox procedure for recording sales and revenues. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or transportation costs or prices that will cause a material change are known.

Other than as described in “Risk Factors”, “Our Business” and “Managements Discussion and Analysis of Financial Condition and Results of Operations” on pages 30, 148 and 270respectively, to our knowledge there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

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 titled “Risk Factors” beginning on page 30 in this Draft 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.

Increases in revenues are by and large linked to increases in volume of business.

The Company is in the business of manufacturing of goods. The relevant industry data, as available, has been included in the chapter titled “Industry Overview” beginning on page 127 of this Draft Red Herring Prospectus.

The Company has not announced any new services or business services.

The extent to which business is seasonal.

The Companys business is not seasonal.

Any significant dependence on a single or few suppliers or customers.

The % of contribution of our Companys suppliers vis-a-vis the total purchases from operations respectively as of for the FY 2025, 2024 and 2023 is as follows:

(except percentages, Rs. in lakhs)

	FY 2025		FY 2024		FY 2023
Particulars	Amount	% of total Purchase#	Amount	% of total Purchase#	Amount	% of total Purchase#
Top - 1	969.50	33.16%	710.98	43.27%	426.90	29.48%
Top - 3	1,400.75	47.91%	1,051.17	63.98%	758.48	52.37%
Top - 5	1,673.96	57.25%	1,167.97	71.09%	933.72	64.47%
Top - 10	2,087.52	71.40%	1,328.33	80.85%	1,100.39	75.98%

# as a percentage of total purchases from Restated Financial Information.

The % of contribution of our Companys customers vis-a-vis the total revenue from operations respectively for the FY 2025, 2024 and 2023 is as follows:

(except percentages, Rs. in lakhs)

Particulars	FY 2025		FY 2024		FY 2023
	Amount*	% of Revenue from Operations#	Amount*	% of Revenue from Operations#	Amount*	% of Revenue from Operations#
Top - 1	613.63	14.57%	1,390.67	52.10%	816.03	36.18%
Top - 3	1,548.88	36.78%	1,784.40	66.86%	1,679.96	74.49%
Top - 5	2,363.27	56.12%	1,965.90	73.66%	1,897.33	84.13%
Top - 10	3,328.92	79.06%	2,244.15	84.08%	2,086.69	92.52%

^ Revenue from Operations from the Restated Financial Information.

# as a percentage of Revenue from Operations from the Restated Financial Information

Competitive conditions.

Competitive conditions are as described under the Chapters titled “Industry Overview and “Our Business beginning on pages 127and 148 respectively of this Draft Red Herring Prospectus.