Icon Facilitators Ltd Management Discussions

OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

You should read the following discussion in conjunction with our restated standalone financial statement ("RestatedFinancials Statements") attached in the chapter titled "RestatedFinancial Statements" beginning on page 189. You should also read the chapter titled "Risk Factors" beginning on page 27 and the chapter titled "Forward Looking Statements " beginning on page 17, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Standalone Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated June 05, 2025 which is included in this Red Herring Prospectus under the chapter titled "Restated Financials Statements " beginning on page 212. 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 twelve-month period ended March 31 of that year.

Our Company was incorporated on September 20, 2013, as ‘Icon Facilitators Private Limited, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation bearing CIN U93000DL2013PTC258273 issued by the Registrar of Companies, NCT of Delhi & Haryana.

Subsequently, pursuant to a resolution passed by the Shareholders in an Extra-Ordinary General Meeting held on February 17, 2024, our Company was converted from a private limited company to a public limited company and a fresh certificate of incorporation bearing CIN U93000DL2013PLC258273 was issued by the Registrar of Companies, NCT of Delhi and Haryana ("RoC") on June 05, 2024.

For further details on the change in the name and the registered office of our Company, please refer to the chapter titled "Our History and Certain Other Corporate Matters" beginning on page 181.

We are engaged in business of providing technical facilities management services such as (i) Electrical System Management Operation (ii) Captive Power Management (iii) STP/ETP and Water Treatment (iv) HVAC Management (v) Business Management System (BMS) (vi) Fire & Safety Equipments (vii) Elevators Escalators Operations & Maintenance. We provide complete bouquet of solutions to all commercial, retail, industrial and residential clients. For more details on business refer to the chapter titled "Our Business" beginning on page 156.

In the opinion of the Board of Directors of our Company, there have not arisen, since the date of the last financial statements disclosed in this Red Herring Prospectus i.e., March 31, 2025, any significant developments or any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

Our business is subjected to various risks and uncertainties, including those discussed in the chapter titled "Risk Factors" beginning on page 27. Our results of operations and financial conditions are affected by numerous factors including the following:

• Important factors that could cause actual results to differ materially from our expectations include, among others:

• Increased competition in Facility Management Industry.

• Fluctuations in operating costs;

• Ability to attract and retain best talent.

• Our failure to keep pace with rapid changes in technology;

• Our ability to meet our capital expenditure requirements;

• Our dependence on our key personnel, including our Directors;

• Our ability to successfully implement our business strategy and plans;

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

• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;

• Changes in government policies and regulatory actions that apply to or affect our business;

• Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

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

• The occurrence of natural disasters or calamities;

• Other factors beyond our control;

• Our ability to manage risks that arise from these factors.

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

Principal Components of Statement of Profit and Loss

Income

Our total income comprises revenue from operations & other income as mentioned below:

Revenue from Operations

Our revenue from operations primarily includes sale of service of Technical Facility Management. We are engaged in business of providing technical facilities management services such as (i) Electrical System Management Operation (ii) Captive Power Management (iii) STP/ETP and Water Treatment (iv) HVAC Management (v) Business Management System (BMS) (vi) Fire & Safety Equipments (vii) Elevators Escalators Operations & Maintenance.

Other Income

Other income includes Interest Income on Refund.

Expenses

Our total expenses include the below mentioned expenses:

Cost of Service Consumed

The Cost of Service Consumed primarily includes expenses related to purchases of uniform of on-site employee, tools and equipments for repair and maintenance & outstanding consultation fees.

Employee benefit expenses

Our employee benefit expense primarily includes Salaries, Wages, Bonus and Staff Welfare Expenses, Contribution to Provident and Other Funds, Provision for Gratuity and Directors Remuneration.

Finance Cost

Our finance costs primarily include interest on short term and long-term borrowing and other borrowing cost.

Depreciation and Amortization Expense

Our depreciation and amortization primarily include depreciation of Motor Vehicle, Air Conditioner, Furniture & Fixture, Generator, Computer & Laptop, Tools & Electric Equipments, Mobile Phones & Television and Printer.

Other Expenses

Our other expenses primarily include expenditure incurred on KPI Expenses, Legal and Professional Fees, Office Expense, Printing and Stationary Expenses, Repair & Maintenance Expense, Onsite Expenses, Tour & Travelling Expenses, Electricity &Water Bill Exp etc.

Tax Expense

Our tax expenses primarily include current tax and deferred tax.

Results of Operations based on Restated Standalone Financial Statement

The following table sets forth select financial data from our restated statement of profit and loss & the components of which are also expressed as a percentage of total income.

Particulars	For the financial year ended 31st March, 2025	% of Total Income	For the financial year ended 31st March, 2024	% of Total Income	For the financial year ended 31st March, 2023	% of Total Income
I) Incomes
Revenue from Operations	5,806.39	100.00%	4,984.21	99.99%	4,296.30	100.00%
Other Income	0.16	0.00%	0.61	0.01%	-	-
II) Total revenue	5,806.55	100.00%	4,984.82	100.00%	4,296.30	100.00%
III) Expenses
Cost of Service Consumed	50.78	0.87%	49.62	1.00%	52.02	1.21%
Employee Benefit Expense	4,893.24	84.27%	4,391.70	88.10%	3,765.58	87.65%
Finance Costs	31.37	0.54%	43.42	0.87%	33.89	0.79%
Depreciation and amortisation Expense	21.04	0.36%	8.64	0.17%	11.64	0.27%
Other Expenses	207.45	3.57%	253.54	5.09%	167.14	3.89%
Total Expenses	5,203.88	89.62%	4,746.92	95.23%	4,030.27	93.81%
Profit Before Tax	602.67	10.38%	237.90	4.77%	266.03	6.19%
Tax Expense
Current Tax	152.51	2.63%	64.89	1.30%	79.51	1.85%
Deferred Tax	3.14	0.05%	(3.23)	(0.06%)	(5.78)	(0.13%)
Total Taxes	155.65	2.68%	61.66	1.24%	73.73	1.72%
Profit for the Period	447.02	7.70%	176.24	3.54%	192.30	4.48%

FISCAL 2025 COMPARED TO FISCAL 2024 Income

The table below sets forth details in relation to our revenue for Fiscal 2025 and Fiscal 2024:

The Company earns primarily earns its revenue from sale of service i.e. technical facility management services.

Unbilled Revenue: The Company bill its service in the current month for the service delivered in the previous month. Hence, service delivered in the month of March is billed in the subsequent month, April, however as per the accrual concept of accounting revenue is booked in the current month as the unbilled revenue.

Our revenue from operations increased by Rs. 822.18 lakhs or 16.50% to Rs. 5,806.39 lakhs for Fiscal 2025 as compared to Rs. 4,984.21 lakhs for Fiscal 2024. This increase in revenue from operations was primarily due to addition of new clients. In the Financial Year 2025, our Company revenue from new customer is Rs. 461.31 lakhs which is 7.94% of the revenue from operation as per the restated financial statements.

Other income decreased by Rs. 0.45 lakhs or 73.77% to Rs. 0.16 lakhs for Fiscal 2025 compared from Rs. 0.61 lakhs for Fiscal 2024. This decrease in other income was primarily due decrease in interest income.

Expenses

The table below sets forth details in relation to our total expenses for Fiscal 2025 compared to our total expenses for Fiscal 2024:

Particulars	Fiscal 2025 (Rs. in Lakhs)	Fiscal 2024 (Rs. in Lakhs)	% Increase/(decrease)
Cost of Service Consumed	50.78	49.62	2.33
Employee Benefit Expense	4,893.24	4,391.70	11.42
Finance Costs	31.37	43.42	(27.75)
Depreciation and amortisation Expense	21.04	8.64	143.52
Other Expenses	207.45	253.54	(18.18)
Total Expenses	5,203.88	4,746.92	9.63

Our total expenses increased by Rs. 456.96 lakhs or 9.63% to Rs. 5,203.88 lakhs for Fiscal 2025 compared to Rs. 4,746.92 lakhs for Fiscal 2024. This was primarily attributable to:

Cost of Service Consumed

Our cost of service consumed increased by Rs. 1.16 lakhs or 2.34% to Rs. 50.78 lakhs for Fiscal 2025 compared to Rs. 49.62 lakhs for Fiscal 2024. The Cost of Service Consumed primarily includes expenses related to purchases of uniform of on-site employee, tools and equipments for repair and maintenance & outstanding consultation fees.

Employee benefit expense

Our employee benefit expense increased by Rs. 501.54 lakhs or 11.42% to Rs. 4,893.24 lakhs for Fiscal 2025 from Rs. 4,391.70 lakhs for Fiscal 2024. The employee benefit expense is the major cost for our Company constituting 94.03% of the total expenses in Fiscal 2025 as compared to 92.52% in Fiscal 2024. The below table shows bifurcation of the employee benefit expense for the Fiscal 2025 and Fiscal 2024.

Particulars	Fiscal 2025 (Rs. in Lakhs)	Fiscal 2024 (Rs. in Lakhs)	% Increase/(decrease)
Director Remuneration	109.37	96.60	13.22
Salaries, wages and bonus	4,238.87	3,800.42	11.54
Contribution to Funds	504.47	462.68	9.03
Provision for Gratuity	5.58	7.91	(29.46)
Staff welfare Expenses	34.96	24.09	45.12
Total Expenses	4,893.24	4,391.70	11.42

The increase in the employee benefit expenses is primarily due to increase in the salary, wages and bonus of our on-site employee as shown above in the table. The company total employees which primarily include on-site employee were 2,030 in the Fiscal 2025 compared to 1,853 employees in the Fiscal 2024. The increase in the employee benefit expenses is in line with the increase in the revenue from operations.

Our Company is statutorily obligated to give minimum wages to the employee deployed on various client sites depending on the location. These wages are periodically revised by the government to account for inflation, which directly impacts our overall costs. Additionally, our Company contribute to statutory fund such as Provident Fund and Employees State Insurance Fund.

The cost for provision for gratuity is accounted for only for the employee working in our Company Corporate Office / Branch Office. The cost for gratuity is compensated by our clients for the onsite employees as and when incurred, hence it does not become the part of the employee benefit expense. Our Company employed 37 and 28 employees in the Fiscal 2025 and 2024 respectively in Company Corporate Office / Branch Office.

Other expenses

Our other expenses decreased by Rs. 46.09 lakhs or 18.18% to Rs. 207.45 lakhs for Fiscal 2025 as compared to Rs. 253.54 lakhs for Fiscal 2024. This decrease was primarily due to decrease in KPI Expenses, Legal and Professional Fees, Office Expenses and ROC Fees. Further, as a percentage of our revenue from operations, the other expenses also decreased to 3.57% in Fiscal 2025 from 5.09% in Fiscal 2024.

EBITDA

For the reasons described below, our EBITDA increased by Rs. 365.57 lakhs, or 126.34% to Rs. 654.93 lakhs for Fiscal 2025 from Rs. 289.35 lakhs for Fiscal 2024.

Finance costs

The table below sets forth details in relation our finance cost for the periods indicated below:

Particulars	Fiscal 2025 (Rs. in Lakhs)	Fiscal 2024 (Rs. in Lakhs)	% Increase/(decrease)
Long Term Interest Expense	27.43	31.45	(12.78)
Short Term Interest Expense	1.17	9.86	(88.13)
Other Borrowing Cost	2.77	2.11	31.28
Finance cost	31.37	43.42	(27.75)

Our finance costs decrease by Rs.12.05 lakhs or 27.75% to Rs. 31.37 lakhs for Fiscal 2025 compared to Rs. 43.42 lakhs for Fiscal 2024. This decrease was primarily due to lesser utilization of overdraft facility during the Fiscal 2025.

Depreciation and Amortisation Expense

Our depreciation and amortisation expense increased by Rs. 12.40 lakhs or 143.52% to Rs. 21.04 lakhs for Fiscal 2025 compared to Rs. 8.64 lakhs for Fiscal 2024. In Fiscal 2025, our Company added Furniture & Fixture amounting to Rs. 13.41 lakhs and Tools & Electric Equipments amounting to Rs. 29.09 lakhs.

Profit before Tax

Our profit before tax increased by Rs. 364.77 lakhs or 153.33% to Rs. 602.67 lakhs for Fiscal 2025 as compared to Rs. 237.90 lakhs for Fiscal 2024. This increase was on account of higher revenue from operation and operational efficiency.

Tax Expenses

Our tax expenses increase by Rs. 93.99 lakhs or 152.43% to Rs. 155.65 lakhs for Fiscal 2025 compared to Rs. 61.66 lakhs for Fiscal 2024. The increase in tax expenses during Fiscal 2025 is mainly on account of increase in current tax by Rs. 87.62 lakhs or 135.03% to Rs. 152.51 lakhs for Fiscal 2025 from Rs. 64.89 lakhs for Fiscal 2024. The increase in current tax was primarily on account of increase in taxable income for Fiscal 2025.

Profit for the Year

As a result of the foregoing factors, our profit for the year increased by Rs. 270.78 lakhs or 153.64% to Rs. 447.02 lakhs for Fiscal 2025 compared to Rs. 176.24 lakhs for Fiscal 2024.

• Increase in Revenue from Operations: The Company Revenue from Operations increased by Rs. 822.18 lakhs or 16.50% to Rs. 5,806.39 lakhs in Fiscal 2025 from Rs. 4,984.21 lakhs in Fiscal 2024.

• Decrease in Employee Benefit Expense: The primary cost of our company is Employee Benefit Expense which constituted 84.27% and 88.11% of the revenue from operation in Fiscal 2025 and Fiscal 2024 respectively. Our company had 2,030 employees in Fiscal 2025 as compared to 1,853 in Fiscal 2024. Due to effective manpower management the Company saved cost which helped to increase margins.

• Increase in Profit Margins: The Company undertook repair and maintenance assignments that are shortterm and project-based in nature. These assignments allow the Company to deploy limited manpower for a defined period, enabling efficient resource utilization and timely reallocation of personnel to other projects. Due to their short duration, these projects typically yield higher profit margins. The profit margins increased to 7.70% in Fiscal 2025 from 3.54% in Fiscal 2024.

• Decrease in Other Expenses: The other expense decreased by Rs. 46.09 lakhs or 18.18% to Rs. 207.45 lakhs for Fiscal 2025 as compared to Rs. 253.54 lakhs for Fiscal 2024. The decrease in other expenses is mainly due to decrease in KPI Expenses, Legal and Professional Fees, Office Expenses and ROC Fees as represented in table shown below:

(Rs. in Lakhs)

Particulars	Fiscal 2025	Fiscal 2024	Decrease as compared to the previous year	% Decrease
Legal and Professional Fees	58.15	67.00	8.85	13.21
KPI Expenses	61.39	98.37	36.98	37.59
Office Expenses	2.80	9.68	6.88	71.07
ROC Fees	-	10.26	10.26	100.00

Income

The table below sets forth details in relation to our revenue for Fiscal 2024 and Fiscal 2023:

The Company earns primarily earns its revenue from sale of service i.e. technical facility management services.

Unbilled Revenue: The Company bill its service in the current month for the service delivered in the previous month. Hence, service delivered in the month of March is billed in the subsequent month, April, however as per the accrual concept of accounting revenue is booked in the current month as the unbilled revenue.

Our revenue from operations increased by Rs. 662.25 lakhs or 16.47% to Rs. 4,684.05 lakhs for Fiscal 2024 as compared to Rs. 4,021.80 lakhs for Fiscal 2023. This increase in revenue from operations was primarily due to addition of new clients. In the Financial Year 2024 our Company revenue from new customer is Rs. 896.10 Lakhs which is 17.98% of the revenue from operation as per the Restated standalone financial statements.

Other income increased by Rs. 0.61 lakhs or 100.00% to Rs. 0.61 lakhs for Fiscal 2024 compared from nil for Fiscal 2023. This increase in other income was primarily due to one-time refund of interest income.

Expenses

The table below sets forth details in relation to our total expenses for Fiscal 2024 compared to our total expenses for Fiscal 2023:

Particulars	Fiscal 2024 (Rs. in Lakhs)	Fiscal 2023 (Rs. in Lakhs)	% Increase/(decrease)
Cost of Service Consumed	49.62	52.02	(4.61)
Employee Benefit Expense	4,391.70	3,765.58	16.63
Finance Costs	43.42	33.89	28.12
Depreciation and amortisation Expense	8.64	11.64	(25.77)
Other Expenses	253.54	167.14	51.69
Total Expenses	4,746.92	4,030.27	17.78

Our total expenses increased by Rs. 716.65 lakhs or 17.78% to Rs. 4,746.92 lakhs for Fiscal 2024 compared to Rs. 4,030.27 lakhs for Fiscal 2023. This was primarily attributable to:

Cost of Service Consumed

Our cost of service consumed decreased by Rs. 2.40 lakhs or 4.61% to Rs. 49.62 lakhs for Fiscal 2024 compared to Rs. 52.02 lakhs for Fiscal 2023. The Cost of Service Consumed primarily includes expenses related to purchases of uniform of on-site employee, tools and equipments for repair and maintenance & outstanding consultation fees.

Employee benefit expense

Our employee benefit expense increased by Rs. 626.12 lakhs or 16.63% to Rs 4,391.70 lakhs for Fiscal 2024 from Rs. 3,765.58 lakhs for Fiscal 2023. The employee benefit expense is the major cost for our Company constituting 92.52% of the total expenses in Fiscal 2024 as compared to 93.43% in Fiscal 2023. The below table shows bifurcation of the employee benefit expense for the Fiscal 2024 and Fiscal 2023.

Particulars	Fiscal 2024 (Rs. in Lakhs)	Fiscal 2023 (Rs. in Lakhs)	% Increase/(decrease)
Director Remuneration	96.60	113.86	(15.16)
Salaries, wages and bonus	3,800.42	3,194.25	18.98
Contribution to Funds	462.68	416.32	11.14
Provision for Gratuity	7.91	17.47	(54.72)
Staff welfare Expenses	24.09	23.68	1.73
Total Expenses	4,391.70	3,765.58	16.63

The increase in the employee benefit expenses is primarily due to increase in the salary, wages and bonus of our on-site employee as shown above in the table. The company total employees which primarily include on-site employee were 1,853 in the Fiscal 2024 compared to 1,646 employees in the Fiscal 2023. The increase in the employee benefit expenses is in line with the increase in the revenue from operations.

Our Company is statutorily obligated to give minimum wages to the employee deployed on various client sites depending on the location. These wages are periodically revised by the government to account for inflation, which directly impacts our overall costs. Additionally, our Company contribute to statutory fund such as Provident Fund and Employees State Insurance Fund.

The cost for provision for gratuity is accounted for only for the employee working in our Company Corporate Office / Branch Office. The cost for gratuity is compensated by our clients for the onsite employees as and when incurred, hence it does not become the part of the employee benefit expense. Our Company employed 28 and 23 employees in the Fiscal 2024 and 2023 respectively in Company Corporate Office / Branch Office.

Other expenses

Our other expenses increased by Rs. 86.40 lakhs or 51.69% to Rs. 253.54 lakhs for Fiscal 2024 as compared to Rs. 167.14 lakhs for Fiscal 2023. This increase was primarily due to increase in KPI Expenses, Legal and Professional Fees, Rent Expense, ROC Fees and Onsite Expenses. Further, as a percentage of our revenue from operation, the other expenses also increased to 5.09% in Fiscal 2024 from 3.89% in Fiscal 2023.

EBITDA

For the reasons described below, our EBITDA decreased by Rs. 22.20 lakhs, or 7.13% to Rs. 289.35 lakhs for Fiscal 2024 from Rs. 311.56 lakhs for Fiscal 2023.

Finance costs

The table below sets forth details in relation our finance cost for the periods indicated below:

Particulars	Fiscal 2024 (Rs. in Lakhs)	Fiscal 2023 (Rs. in Lakhs)	% Increase/(decrease)
Long Term Interest Expense	31.45	21.63	45.40
Short Term Interest Expense	9.86	12.15	(18.85)
Other Borrowing Cost	2.11	0.11	1,818.18
Finance cost	43.42	33.89	28.12

Our finance costs increased by Rs. 9.53 lakhs or 28.12% to Rs. 43.42 lakhs for Fiscal 2024 compared to Rs. 33.89 lakhs for Fiscal 2023. This increase was primarily due to increase in the interest cost for long-term borrowing during the Fiscal 2024.

Depreciation and Amortisation Expense

Our depreciation and amortisation expense decreased by Rs. 3.00 lakhs or 25.77% to Rs. 8.64 lakhs for Fiscal 2024 compared to Rs. 11.64 lakhs for Fiscal 2023. In Fiscal 2024, our Company added Property, Plant and Equipment amounting to Rs. 42.91 lakhs. The decrease in depreciation is attributed to the addition of PPE in the fourth quarter of the fiscal year, as the depreciation on the closing written-down value (WDV) exceeded the depreciation on the newly added PPE.

Profit before Tax

Our profit before tax decreased by Rs. 28.13 lakhs or 10.57% to Rs. 237.90 lakhs for Fiscal 2024 as compared to Rs. 266.04 lakhs for Fiscal 2023. This decrease was on account of change in the treatment of unbilled revenue in the restated financial statements.

Tax Expenses

Our tax expenses decreased by Rs.12.07 lakhs or 16.37% to Rs. 61.66 lakhs for Fiscal 2024 compared to Rs. 73.73 lakhs for Fiscal 2023. The decrease in tax expenses during Fiscal 2023 is mainly on account of decrease in current tax by Rs.14.62 lakhs, or 18.39% to Rs. 64.89 lakhs for Fiscal 2024 from Rs. 79.51 lakhs for Fiscal 2023. The decrease in current tax was primarily on account of decrease in taxable income for Fiscal 2024.

Profit for the Year

After the introduction of e-invoicing in Fiscal 2022, the Company started billing in the subsequent month for the revenue earned in the previous year. For Example, the service delivered in the month of March was billed in the subsequent month i.e. April. However, the service delivered in the month of March must be in the same month as per the Accrual Concept of Accounting. Hence, service delivered in the month of March is accounted as Unbilled Revenue.

Our Company did not account for the service delivered in the month of March in Fiscal 2022 which resulted in under reporting of revenue by Rs. 51.25 lakhs, and the same in added in the subsequent Fiscal 2023.

Similarly, the revenue earned in the month of March in Fiscal 2023 amounting to Rs. 274.50 lakhs was added in the subsequent Fiscal 2024 resulting in under reporting of revenue by Rs. 223.25 lakhs (Revenue not booked in the Fiscal 2023- Revenue not booked in the Fiscal 2022 i.e. Rs. 274.50 Lakhs - Rs. 51.25 Lakhs).

Additionally, our company under reported revenue in the Fiscal 2024 amounting to Rs. 25.66 Lakhs (Revenue not booked in the Fiscal 2024- Revenue not booked in the Fiscal 2023 i.e. Rs. 300.16 Lakhs - Rs. 274.50 Lakhs).

Hence, to rectify the above-mentioned mistake in accounting of the revenue, the necessary adjustment has been made in Restated Financial Statements which is presented in the table shown below.

Particulars	For financial year ending March 31, 2024	For financial year ending March 31, 2023
Revenue from operations as per Audited Financial Statement	4,958.55	4,073.05
Add: Revenue not account in the current year	300.16	274.50
Less: Revenue recorded in the current year which belonged to previous year.	274.50	51.25
Revenue from operations as per Restated Financial Statement	4,984.21	4,296.30

As a result of under reporting of revenue, the profit of our Company is also under reported as shown in the table below:

Particulars	For financial year ending March 31, 2024	For financial year ending March 31, 2023
Profit after Tax as per Audited Financial Statement	295.49	48.42
Profit after Tax as per Restated Financial Statement	176.24	192.31

The Restated Financial Statement project a true and fair view of the financial position of our company. As per the Restated Financial Statement, our profit after tax decreased by Rs. 16.06 lakhs or 8.35% to Rs. 176.24 lakhs for Fiscal 2024 as compared to Rs. 192.31 lakhs for Fiscal 2023 due to the following reasons:

• Increase in Employee Benefit Expense: The primary cost of our company is Employee Benefit Expense which constitute 88.11% and 87.65% of the revenue from operation in Fiscal 2024 and Fiscal 2023 respectively. The primary increase in the Employee Benefit Expense is due to increase in number of employees and salary on account of inflation. Our company had 1,853 employees in Fiscal 2024 as compared to 1,646 employees in Fiscal 2023. The employee benefit expense increased by Rs. 626.12 lakhs or 16.63% to Rs. 4,391.70 lakhs for Fiscal 2024 as compared to Rs. 3,765.57 lakhs for Fiscal 2023.

• Increase in Other Expenses: The other expense increased by Rs. 86.40 lakhs or 51.69% to Rs. 253.54 lakhs for Fiscal 2024 as compared to Rs. 167.14 lakhs for Fiscal 2023. The increase in other expenses is mainly due to increase in KPI Expenses, Legal and Professional Fees, ROC Fees and Onsite Expenses as represented in table shown below:

(Rs. in Lakhs)

Particulars	Fiscal 2024	Fiscal 2023	Increase as compared to the previous year	% Increase
Legal and Professional Fees	67.00	27.28	39.72	145.60
KPI Expenses	98.37	78.00	20.37	26.12
ROC Fees	10.26	-	10.26	100.00
Onsite Expenses	17.34	12.67	4.67	36.86

CASH FLOW BASED ON RESTATED STANDALONE FINANCIAL STATEMENTS

	Fiscal
Particulars	2025		2023
Net cash generated from operating activities	(282.06)	436.75	(40.99)
Net cash (used in)/generated from investing activities	(43.00)	(42.91)	(15.60)
Net cash (used in)/generated from financing activities	288.90	(160.49)	74.38
Net change in Cash and cash equivalents at the end of the year	(36.15)	233.35	17.79

 

Ratios	March 31, 2025	March 31, 2024	March 31, 2023
Current Ratio	3.76	1.76	1.87
Debt-equity ratio	0.35	0.42	0.89
Debt service coverage ratio	16.53	5.03	6.74
Return on Equity	35.23%	29.63%	45.94%
Working capital turnover ratio	3.62	7.35	6.90
Net profit margin (%)	7.70%	3.54%	4.48%
Return on capital employed	37.09%	33.40%	37.95%

Methodology:

1. Current Ratio = Current Asset / Current Liability

2. Debt-Equity Ratio = Total Debt / Total Equity

3. Debt Service Coverage Ratio = Earnings available for debt service/ (Interest +Principal Repayment)

4. Return on Equity Ratio = Profit After Tax / Total Equity

5. Working Capital Turnover Ratio = Revenue from Operations / (Current Asset - Current Liability)

6. Net Profit Ratio = Profit After Tax / Revenue

7. Return on Capital Employed= EBIT/ (Ner Worth + Total Debt)

1. Unusual or infrequent events or transactions

Except as described in this Red Herring 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

Other than as described in the chapter titled "Risk Factors " beginning on page 27, to our knowledge there are no known significant economic changes that materially affected or are likely to affect income from continuing operations.

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

Other than as described in the chapter titled "Risk Factors" beginning on page 27, to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

4. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by multiple factors such as industry preferences, economic activity, government policies and demand of our products.

5. The extent to which material increase/decrease in net revenue are due to increase/decrease in sale of our products.

Increase/Decrease in revenues are by and large linked to increase/decrease in volume of business activities carried out by the Company.

6. Total turnover of each major industry segment in which the issuer company operates.

The Company is operating in Facility Management Industry and relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 115.

7. Status of any publicly announced new products or business segments

Our Company has not announced any segment, other than through this Red Herring Prospectus.

8. The extent to which the business is seasonal Our Company business is not seasonal in nature.

9. Any significant dependence on a single or few clients.

Our business is dependent on few clients. Our top five customers contributed 73.57%, 70.49% and 68.23% of total revenue from operations for Fiscal 2025, 2024 and 2023 respectively.

10. Competitive Conditions

We face competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in the chapter titled "Our Business" beginning on page 156.