Indo SMC Ltd Management Discussions

You should read the following discussion and analysis offinancial condition and results of operations together with our financial statements included in this Draft Red Herring Prospectus. The following discussion relates to our Company and is based on our restated financial statements. Our financial statements have been prepared in accordance with Indian GAAP, the accounting standards and other applicable provisions of the Companies Act.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be Forward looking statement within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factor

BUSINESS OVERVIEW

INDO SMC Limited is a company Incorporated on September 27, 2021 as INDO SMC Private Limited. The corporate identification number of the company is U31909GJ2021PLC125904. The company has been converted from Private limited company to Public limited company on August 07, 2024.

The business of the Company primarily comprises of (i) sheet moulding compound division, under which we manufacture enclosure box for energy meters, SMC sheet and SMC chequered plates, (ii) fiberglass reinforced plastic in which we manufacture grating plates and (iii) electrical component division where we manufacture HTCT, HTPT, LTCT, feeder pillars and other power distribution and circuit protection switchgears.

We have consistently grown in terms of our revenues over the past years our revenues from operation were ?729.55 lakhs in F.Y202223, ? 2,803.38 lakhs in the FY 202324 and 13,869.25 lakhs in the FY 202425. Our Net Profit after tax for the above mentioned periods are ?45.52 lakhs, ? 300.36 lakhs and 1,544.09 lakhs respectively.

FINANCIAL KPIs OF THE COMPANY:

(Amount in Lakhs except % and ratios)

	INDO SMC LIMITED
Performance	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from operations (1)	13,869.25	2,803.38	729.55
Growth in revenue from operations (%)	394.73%	284.26%	955.15%
Total Income (2)	13,877.92	2,805.90	729.55
EBITDA (3)	2,282.74	508.47	115.46
EBITDA Margin (%) (4)	16.45%	18.12%	15.83%
Profit After Tax (5)	1,544.09	300.36	45.52
PAT Margin (%) (6)	11.13%	10.71%	6.24%
Return on Equity (7)	74.45%	86.24%	48.24%
RoCE (%) (8)	31.39%	20.71%	7.97%
Debt Equity Ratio (9)	1.00	3.05	8.90

Notes:

(1 Revenue from operations represents the revenue from sale of service & product & other operating revenue of our Company as recognized in the Restated financial information.

(2 Total income includes revenue from operations and other income.

(3) EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year / period and adding back interest cost, depreciation, and amortization expense.

(4 EBITDA margin is calculated as EBITDA as a percentage of total income.

(5) Restated profit for the period / year.

( 6) pat Margin (%) is calculated as Profit for the year/period as a percentage of Revenue from Operations.

7 Return on Equity is calculated as Profit after tax, as restated, attributable to the owners of the Company for the year/ period divided by average equity. Average equity is calculated as average of opening and closing balance of total equity (Shareholde rs funds) for the year.

(8) Return on capital employed calculated as Earnings before interest and taxes divided by capital employed as at the end of respective period/year. (Capital employed calculated as the aggregate value of Tangible networth, total debt and deferred tax liabilities)

(9 Debt equity ratio is calculated by dividing total debt by total equity. Total debt represents longterm and shortterm borrowings. Total equity is the sum of share capital and reserves & surplus.

SIGNIFICANT DEVELOPMENTS SIGNIFICANT DEVELOPMENTS AFTER MARCH 31, 2025

Except for certain corporate actions, such as the issuance and allotment of fully paidup bonus shares and the authorization by the Board and shareholders to raise funds through an initial public offering, in the opinion of the Board of Directors, no circumstances have arisen since the date of the last financial statements disclosed in this Draft Red Herring Prospectus that materially or adversely affect, or are likely to affect, the business activities, profitability, asset values, or the Company s ability to meet its material liabilities over the next twelve months.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Except as otherwise stated in this Draft Red Herring Prospectus and the Risk Factors given in the Draft Red Herring Prospectus, the following important factors could cause actual results to differ materially from the expectations include, among others:

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

2. Any change in government policies resulting in increases in taxes payable by us;

3. Increased competition in the industry in which we operate;

4. Ability to grow the business;

5. Changes in laws and regulations that apply to the industries in which we operate;

6. Company s ability to successfully implement its growth strategy and expansion plans;

7. Ability to keep pace with rapid changes in technology;

8. Ability to maintain relationships with vendor

9. General economic, political, and other risks that are out of our control;

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

11. Any adverse outcome in the legal proceedings in which we are involved;

12. The performance of the financial markets in India and globally

13. Increase in price of raw materials and fuel cost

14. Adverse weather and climatic conditions in the region where we operate

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

2.01 Basis of Accounting and Preparation of Financial Statements

The Restated Summary Statements of assets and liabilities of the Company as at March 31 2025, March 31, 2024 and March 31, 2023 and the related Restated summary statements of profits and loss and cash flows for the year/period ended March 31,2025, March 31, 2024, and March 31, 2023 (herein collectively referred to as summary) have been compiled by the management from the Audited Financial Statements of the Company for the year ended on March 31, 2025, March 31, 2024, and March 31, 2023 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 read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the BSE Limited in connection with its proposed SME IPO. The management has recast the Financial Statements in the form required by Schedule III of the Companie s 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, unless otherwise stated. This Restated Financial Information has been prepared as going concern and comply, in all material respects, with the Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year(s).

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 noncurrent as per the 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 noncurrent classification of assets and liabilities.

2.02 Use of Estimates

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.

2.03 Property, Plant & Equipment and Intangible Assets

(i) Property, Plant & Equipment

All Property, Plant & Equipment are recorded at cost including unrecoverable taxes, duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use and stated at net of accumulated depreciation and accumulated impairment losses, if any.

(ii) Intangible Assets

Intangible Assets are recorded at acquisition cost. The cost of an intangible asset comprises its purchase cost including unrecoverable taxes and costs directly attributable to making any asset ready for their intended use, and stated at net of accumulated amortization and accumulated impairment losses, if any.

2.04 Depreciation and Amortization

Depreciation on Property, Plant & Equipment is provided on a Straightline 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 are amortized on straight line method basis over 3 years in pursuance of provisions of AS26. Depreciation on assets acquired /disposed of during the year is provided on prorata basis with reference to the date addition / disposal.

2.05 Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. 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 recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

2.06 Inventories

Inventories are valued after providing for obsolescence, as follows:

a) Raw Materials, Stores & Spare parts, and Packing & Assembly Materials are valued at lower of cost and net realizable value based on weighted average. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

b) WorkinProgress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a portion of manufacturing overheads based on normal operating capacity. Cost of finished goods includes all other costs incurred in bringing the inventories to their present location.

2.07 Revenue Recognition

a) Revenue on sales of products is recognized when risk and reward of ownership are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those products. Gross sales are net of trade discount, rebate and GST.

b) Revenue from contracts priced on time basis are recognized when services are rendered. Revenue from fixed fee contracts is recognized when milestones are achieved and no reasonable uncertainty as to its realization exists.

2.08 Other Income

a) Interest income is recognized on time proportion basis as determined by contractual rate of interest.

b) Dividend income is accounted for as and when it is actually received.

2.09 Foreign Currency Transactions

a) Transactions denominated in foreign currencies are recorded at the RBI exchange rate prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction in the reporting currency.

b) Monetary items denominated in foreign currencies outstanding at the yearend are translated at the RBI exchange rate prevailing on that date, and exchange gain or losses arising have been transferred to Statement of Profit and Loss.

c) Nonmonetary items denominated in foreign currencies are valued at the exchange rates prevailing on the date of transaction. Any gain or losses arising due to exchange difference on long term foreign currency monetary items are accounted for in the Statement of Profit and Loss.

d) Any gains or losses arising due to exchange differences at the time of settlement of payables are accounted for in the Statement of Profit and Loss.

2.10 Employee Benefits

a) Defined Contribution Plan. :

Employee benefits include Provident Fund, Employee State Insurance, and other employee benefit schemes applicable to the Company and are charged to the Statement of Profit and Loss on accrual basis.

b) Defined Benefit Plan. :

Liability towards gratuity is accrued based on actuarial valuation using the projected unit credit method at the Balance Sheet date. Actuarial Gains and Losses are recognized immediately in the Statement of Profit and Loss in the period in which they occur.

2.11 Cash Flow Statement

Cash flows are reported using the Indirect method as prescribed in Accounting Standard 3 Cash Flow Statement whereby profit before tax is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

2.12 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Costs are incurred in raising funds are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to Profit and Loss Statement.

2.13 Investments

Noncurrent investments are carried at cost less provision, if any, for permanent diminution in value of such investments. Current investments are carried at lower of cost or market value. Diminution in value is charged in the Statement of Profit and Loss.

Profit or Loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually of each investment.

2.14 Income Tax

a) The accounting treatment for the Income Tax in respect of the Company s income is based on the Accounting Standard on Accounting for Taxes on Income (AS22). The provision made for Income Tax in accounts comprises both, the current tax and deferred tax. Provision for current tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

b) Deferred Tax assets and liabilities are measured using the tax rates and tax laws that been enacted or substantially enacted at the Balance Sheet date on timing difference between accounting income and taxable income that originate in one year and are capable of being reversal in one or more subsequent year.

c) In respect of unabsorbed depreciation / carry forward of losses (if any) under the tax, laws deferred tax assets are recognized only to the extent that there is virtual certainty that future taxable income will be available against such deferred tax asset can be realized.

2.15 Earnings Per Share

a) The Company reports Basic and Diluted earnings per share in accordance with Accounting Standard 20 Earnings per share prescribed by the Companies (Accounting Standards) Rules, 2021.

b) Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of Equity shares outstanding during the period.

c) Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of Equity shares considered for deriving basic earnings per share and also the weighted average number of Equity shares that could have been issued upon conversion of all dilutive potential Equity shares.

2.16 Provisions, Contingent Liabilities and Contingent Assets

a) The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the AS 29. Provisions represent liabilities for which the amount or timing is uncertain. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not possible that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably and are disclosed by way of notes.

b) Contingent assets are neither provided nor disclosed in the financial statements.

c) Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

2.17 Cash and Bank Balances

Cash and cash equivalents comprise Cashinhand, Current Accounts, Fixed Deposits with banks. Cash equivalents are shortterm 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. Other Bank Balances are shortterm balance including those given as collateral or under Lien (with original maturity is more than three months but less than twelve months).

2.18 Extraordinary and Exceptional items

a) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the Financial Statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understandings of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

2.19 Government Grant/Subsidy

a) In case of depreciable assets, government grant/subsidy received in relation to purchase of Property, Plant and Equipment are adjusted with the cost of the identified assets. Grant related to specific fixed assets are deducted from gross value of the concerned assets in arriving at their book values.

b) Government Grant/Subsidy in the nature of revenue like interest subsidy etc. are treated as income in Profit & Loss Statement and reduced from the respective expenses account.

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RESULTS OF OUR OPERATIONS

Based on Financial Statements of Profit & Loss as Restated

(Amount % in lakhs)

Particulars	For the year ended 31st March, 2025	% of Total**	For the year ended 31st March, 2024	% of Total**	For the year ended 31st March, 2023	% of Total**
INCOME
Revenue from Operations	13,869.25	99.94%	2,803.38	99.91%	729.55	100.00%
Other Income	8.67	0.06%	2.52	0.09%
Total Revenue (A)	13,877.92	100.00%	2,805.90	100.00%	729.55	100.00%
EXPENDITURE
Cost of material consumed	9,890.90	71.27%	2,482.75	88.48%	775.96	106.36%
Changes in Inventories of WorkInProgress & Finished Goods	327.13	2.36%	(763.18)	(27.20%)	(362.96)	(49.75%)
Employee Benefits Expenses	327.61	2.36%	130.45	4.65%	76.53	10.49%
Finance Costs	355.01	2.56%	107.35	3.83%	39.24	5.38%
Depreciation & Amortisation Expenses	83.02	0.60%	40.16	1.43%	22.04	3.02%
Other Expenses	983.09	7.08%	439.24	15.65%	115.62	15.85%
Total Expenses (B)	11,966.76	86.23%	2,436.77	86.84%	666.43	91.35%
(C) Profit before tax (A B)	1,911.16	13.77%	369.13	13.16%	63.12	8.65%
(D) Tax Expense / (benefit)
(a) Current Tax Expense	417.67	3.01%	166.82	5.95%	10.78	1.48%
(b) Deferred Tax	(50.60)	(0.37%)	(98.05)	(3.49%)	11.55	1.58%
(c) MAT Credit Entitlement					(4.73)	(0.65%)
Net tax expense / (benefit)	367.07	2.64%	68.77	2.45%	17.60	2.41%
(E) Profit for the year (C D)	1,544.09	11.13%	300.36	10.70%	45.52	6.24%

**Total refers to Total Revenue Note: The above figures are based on the Audited Restated Financial Statements of the Company.

Income

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

Revenue from Operations

The Revenue from operations as a percentage of our total income was 99.94%, 99.91% and 100.00% for the Financial Years ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively.

(Amount f in Lakhs)

Particulars	For the year ended 31 March 2025	For the year ended 31 March 2024	For the year ended 31 March 2023
Revenue from Sale of Products	13,659.25	2,803.38	729.55
Consultancy Charges & Installation Income	210.00
TOTAL	13,869.25	2,803.38	729.55

Other Income

Our other Income consists of Interest Income, Duty Drawback and Foreign Exchange Currency Rate Difference.

(Amount f in Lakhs)

Particulars	For the year ended 31 March 2025	For the year ended 31 March 2024	For the year ended 31 March 2023
Interest Income	8.03	0.84
Duty Drawback	0.64
Foreign Exchange Currency Rate Difference		1.68
TOTAL	8.67	2.52

Expenditure

Our total expenditure primarily consists of Cost of Material Consumed, Changes in Inventories, Employee benefit expenses, Finance costs, Depreciation and Other Expenses.

Cost of Material Consumed

Our Cost of Material consumed comprises of Purchases and Changes in Raw Material Inventory.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries, Wages, Bonus & Other allowances, Staff Welfare, Directors Remuneration, Gratuity expense and Contribution to Provident and Other Funds.

Finance costs

Our Finance cost expenses comprise of Interest Expenses, Loan Processing Charges, Bank Charges and Other Finance Charges.

Other Expenses

Our other expenses primarily comprise of Direct expenses and Administrative and Other Expenses:

• Direct Expenses: It comprises of Factory Rent expense, Power and Fuel expense, Labour Charges, Freight & Transportation Expenses, Machinery Repairing Expenses and Other Production Expenses.

• Administrative and Other Expenses: It comprises of Auditors Remuneration, Legal & Professional Fees, Travelling, Conveyance & Vehicle Expenses, Advertisement & Marketing Expenses, Freight & Transportation Expenses and Other General Expenses.

(Amount f in Lakhs )

Particulars	For the year ended 31 March, 2025	For the year ended 31 March, 2024	For the year ended 31 March, 2023
Direct Expenses:
Machinery Repairing Exps.	22.43	7.71	3.05
Hydra Crene Working Exps.	13.40	6.47
Vehicle Rent	4.80	3.18
Freight & Transportation Exps.	11.88	33.61	3.88
Loading & Unloading Charges		0.15	0.21
Labour Charges	216.98	128.04	56.41
Import Duty & Import Charges	61.64	11.26
Power & Fuel Exps.	118.62	44.82	21.53
Factory Exps.	5.77
Factory Rent Expense	120.98	36.03	2.45
Testing Exps.	23.41	2.97	2.30
Other Production Exps.	13.98	0.71	2.61
Administrative and Other Expenses:
Auditors Remuneration
Statutory Audit	5.00	0.35	0.20
Tax Audit	1.25	0.15
Others		0.17	0.50
Legal & Professional Fees	29.56	15.49	0.67
Travelling, Conveyance & Vehicle Exps.	39.01	25.33	2.89
Printing & Stationary, Postage, Telephone Exps.	14.03	7.30	4.82
Export Charges	20.65
Bad Debts	3.59
Advertisement & Marketing Exps.	42.42	8.67	2.52
Commission	15.66
General Expenses	12.15	9.52	5.35
Power and Fuel Exps.	0.74	0.50	2.96
Freight & Transportation Exps.	157.11	80.55
Repair & Maintenance	10.43	1.81	2.26
Foreign Exchange Currency Rate Difference	6.01
Rent, Rate & Taxes	11.59	14.45	1.01
Total	983.09	439.24	115.62

Provision for Tax

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 certainly that sufficient future taxable income will be available against which such deferred tax assets can be reali zed in future.

Fiscal 2025 compared with Fiscal 2024 Revenue from Operations

The Revenue from Operations of our company for Fiscal 2025 was ?13,869.25 Lakhs against ?2,803.38 Lakhs for Fiscal 2024, reflecting a substantial increase of 394.73%. This increase was primarily due to following:

219

Expansion of our business operations into various states.

Successful allotment of new highvolume tenders, which significantly contributed to the revenue surge. Our focus on building strong relationships with clients and delivering highquality services played a crucial role in securing these tenders.

Expansion of our product portfolio, allowing us to cater to a broader range of customer needs and stay competitive in the market. Other Income

The Other Income of our company for Fiscal 2025 was t8.67 Lakhs against t2.52 Lakhs for Fiscal 2024, an increase of 243.39%. This increase was due to income of additional interest for the FD s that company had made for EMD.

Total Income

The total income of the company for Fiscal year 2025 was t 13,877.92 Lakhs against t 2,805.90 Lakhs of Total income for Fiscal year 2024 with an increase of 394.60% in total income. This increase was primarily due to significant increase in Revenue from Operations and other Income.

Expenditure

Cost of Material Consumed

In Fiscal 2025, Cost of Material Consumed were t 9,890.90 Lakhs against t 2,482.75 Lakhs of Cost of Material Consumed in Fiscal 2024. An increase of 298.38%. This increase was due to higher production undertaken to meet the completion of the tenders awarded.

Changes in Inventories

In Fiscal 2025, the Changes in Inventories amounted to t 327.13 Lakhs against t (763.18) Lakhs of changes in inventories in fiscal 2024.

Employee Benefit Expenses

In Fiscal 2025, the Company incurred employee benefit expenses of t 327.61 Lakhs against t 130.45 Lakhs expenses in Fiscal 2024. An increase of 151.14%. This increase was primarily on account due to hiring of new technical staff and increase in salary of existing senior staff of the company.

Finance Costs

The finance costs for the Fiscal 2025 were t 355.01 Lakhs while it was t 107.35 Lakhs for Fiscal 2024. An increase of 230.70 %. This increase was due to loans taken for purchase of new machinery and increase in working capital limits to cater the supply of the tendres.

Other Expenses

In Fiscal 2025, our other expenses were t 983.09 Lakhs against t 439.24 Lakhs in Fiscal 2024. An increase of 123.82%. This increase was due to increase in Selling & Distribution, marketing, Freight and professional charges.

Profit before Tax

Our Company had reported a profit before tax for the Fiscal 2025 of t 1,911.16 Lakhs against profit before tax of t 369.12 Lakhs in Fiscal 2024. An increase of 417.76%. This increase was primarily driven by significant increase in revenue.

Profit after Tax

Profit after tax for the Fiscal 2025 were at t 1,544.09 Lakhs against profit after tax of t 300.36 Lakhs in fiscal 2024, An Increase of 414.08%. This increase was primarily driven by increase in Profit Before Tax, as explained in the above paragraph.

Fiscal 2024 compared with Fiscal 2023 Revenue from Operations

The Revenue from Operations of our company for Fiscal year 2024 was t 2,803.38 Lakhs against t 729.55 Lakhs for Fiscal year 2023. An increase of 284.26% in revenue from operations. This increase was due to allotment of new tenders of higher value. Our

strategic focus on building strong relationships with clients and enhancing our service offerings enabled us to secure these new tenders, which have contributed substantially to our revenue growth.

Other Income

The other income of our company for Fiscal year 2024 was t 2.52 Lakhs against Nil for Fiscal year 2023. This was due to Interest on Fixed Deposit made for tenders

Total Income

The total income of the company for Fiscal year 2024 was t 2,805.90 Lakhs against t 729.55 Lakhs of total income for Fiscal year 2023 with an increase of284.61% in total income. This increase was primarily due to significant increase in Revenue from Operations and other Income.

Expenditure

Cost of Material Consumed

In Fiscal 2024, Cost of Material Consumed were t 2,482.75 Lakhs against t 775.96 Lakhs of Cost of Material Consumed in Fiscal 2023. An increase of 219.96%. This increase was due to higher production undertaken to meet the completion of the tenders awarded.

Changes in Inventories

In Fiscal 2024, the Changes in Inventories amounted to t (763.18) Lakhs against t (362.96) Lakhs of changes in inventories in fiscal 2023.

Employee Benefit Expenses

In Fiscal 2024, the Company incurred employee benefit expenses of t130.45 Lakhs against t76.53 Lakhs expenses in fiscal 2023. An increase of 70.45%. This increase was due to hiring of new technical staff.

Finance Costs

The finance costs for the Fiscal 2024 were t 107.35 Lakhs while it was t 39.24 Lakhs for Fiscal 2023. An increase of 173.54%. This increase was due to loans taken for purchase of new machineries and enhancement of working capital limits.

Other Expenses

In fiscal 2024, our other expenses were t 439.24 Lakhs and t 115.62 Lakhs in fiscal 2023. An increase of 279.91%. This increase was due to increase in Direct expenses, travel expenses and legal and professional fee.

Profit before Tax

Our Company had reported a profit before tax for the Fiscal 2024 of t 369.12 Lakhs against profit before tax of t 63.12 Lakhs in Fiscal 2023. An increase of 484.75%. This increase was primarily due to significant increase in revenue from operations.

Profit after Tax

Profit after tax for the Fiscal 2024 were at t 300.36 Lakhs against profit after tax of t 45.52 Lakhs in fiscal 2023, An increase of 559.82%. This increase was primarily due to increase in Profit Before Tax, as explained in the above paragraph.

Cash Flows

(Amount f in lakhs)

Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
Net Cash Flow from / (used in) Operating Activities	(1,374.73)	(577.84)	(290.14)
Net Cash Flow from / (used in) Investing Activities	(1,695.52)	(244.56)	(340.47)
Net Cash Flow from / (used in) Financing Activities	3,078.79	823.19	576.77

1. In Fiscal 2025, Net Cash used in Operating Activities was ?1,374.73 Lakhs. This comprised of the net profit before tax of ?1,911.16 Lakhs, which was primarily adjusted for Depreciation and Amortisation of ?83.02 Lakhs, Interest expense of ?288.56 Lakhs, Gratuity provision of ?7.42 Lakhs, Lease provision of ?5.14 Lakhs, Bad debts of ?3.59 Lakhs, Unrealised forex exchange gain of ?2.72 L akhs and Interest income of ?8.03 Lakhs. The resultant Operating Profit before Working Capital Changes was ?2,288.14 Lakhs, which was mainly adjusted for an increase in Trade Receivables of ?3,863.13 Lakhs, Loans and Advances of ?320.99 Lakhs, Other Noncurrent Assets of ?73.99 Lakhs and Other Current Assets (including other bank balances) of ?242.22 Lakhs, Inventories of ?185.89 Lakhs. Additionally, there was an increase in Trade Payables of ?933.45 Lakhs and in Other Current Liabilities & Provisions of ?411.28 Lakhs.

Cash used in operations was ? 1,053.35 Lakhs, which was further reduced by Income Tax paid of ?321.38 Lakhs, resulting in a n et cash used in operating activities of ? 1,374.73 Lakhs.

2. In Fiscal 2024, Net Cash used in Operating Activities was ?577.84 Lakhs. This comprised of the net profit before tax of ?369.13 Lakhs, which was primarily adjusted for Depreciation and Amortisation of ?40.16 Lakhs, Interest expense of ?99.18 Lakhs, Grat uity provision of ?2.37 Lakhs, Lease provision of ?4.52 Lakhs, MAT reversal of ?4.98 Lakhs, Unrealised forex exchange gain of ?3.7 6 Lakhs and Interest income of ?0.84 Lakhs. The resultant Operating Profit before Working Capital Changes was ?515.74 Lakhs, which was mainly adjusted for an increase in Inventories of ?1,058.39 Lakhs, Trade Receivables of ?722.32 Lakhs, Loans and Advances of ?140.04 Lakhs, Other Noncurrent Assets of ?17.71 Lakhs and Other Current Assets (including other bank balances) of ?22.55 Lakhs. Additionally, there was an increase in Trade Payables of ?934.66 Lakhs and in Other Current Liabilities & Provisions of ?32.04 Lakhs.

Cash used in operations was ?478.57 Lakhs, which was further reduced by Income Tax paid of ?99.27 Lakhs, resulting in a net cash flow used in operating activities of ?577.84 Lakhs.

3. In Fiscal 2023, Net Cash used in Operating Activities was ?290.14 Lakhs. This comprised of the net profit before tax of ?63.12 Lakhs, which was primarily adjusted for Depreciation and Amortisation of ?22.04 Lakhs, Interest expense of ?30.30 Lakhs and Gratuity provision of ?1.42 Lakhs. The resultant Operating Profit before Working Capital Changes was ?116.88 Lakhs, which was mainly adjusted for an increase in Inventories of ?437.26 Lakhs, Trade Receivables of ?64.51 Lakhs, Loans and Advances of ?58.82 Lak hs, Other Current Assets (including other bank balances) of ?16.01 Lakhs. Additionally, there was an increase in Trade Payables o f ?136.89 Lakhs and in Other Current Liabilities & Provisions of ?35.78 Lakhs.

Cash used in operations was ?287.05 Lakhs, which was further reduced by Income Tax paid of ?3.09 Lakhs, resulting in a net ca sh used in operating activities of ?290.14 Lakhs.

Cash Flows from Investment Activities

1. For the year ended March 31, 2025, net cash used in investing activities was ? 1,695.52 Lakhs, which primarily comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of ? 1,703.55 Lakhs and partly offset by cash inflow of ?8.03 Lakhs from interest income received.

2. For the year ended March 31, 2024, net cash used in investing activities was ? 244.56 Lakhs, which primarily comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of ? 255.40 Lakhs and partly offset by cash inflow of ?10.00 Lakhs from Subsidy received for plant & equipment and ?0.84 Lakhs for Interest Income received.

3. For the year ended March 31, 2023, net cash used in investing activities was ? 340.47 Lakhs, which comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of ? 340.47 Lakhs.

Cash Flows from Financing Activities

1. For the year ended March 31, 2025, Net cash flow from financing activities was ?3,078.79 Lakhs, which primarily comprised of proceeds from borrowings of ?2,955.20 Lakhs and proceeds from issue of shares (net of issue expenses) of ?1,445.02 Lakhs, partly offset by repayment of borrowings of ?1,148.39 Lakhs and finance cost paid of ?173.04 Lakhs.

2. For the year ended March 31, 2024, Net cash flow from financing activities was ?823.19 Lakhs, which primarily comprised of proceeds from borrowings of ?1,292.92 Lakhs and proceeds from issue of shares (net of issue expenses) of ?162.00 Lakhs, partly offset by repayment of borrowings of ?566.20 Lakhs and finance cost paid of ?65.53 Lakhs.

3. For the year ended March 31, 2023, Net cash flow from financing activities was ?576.77 Lakhs, which primarily comprised of proceeds from borrowings of ?912.89 Lakhs, partly offset by repayment of borrowings of ?311.58 Lakhs and finance cost paid of ?24.54 Lakhs.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except COVID19 or any such kind of pandemic and as described in this Draft 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 .

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

Other than as described in the Section titled Financial Information and chapter titled Management s Discussion and Analysis of Financial Conditions and Results of Operations , beginning on Page 204 and 212 respectively of this Draft Red Herring Prospectus, to our knowledge there are no 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

Apart from the risks as disclosed under Chapter titled Risk Factors beginning on page no. 33 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.

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known

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 factor.

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

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.

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

Relevant Industry data and, as available, has been included in the chapter titled Industry Overview beginning on page no. 111 of this Draft Red Herring Prospectus.

7. The extent to which business is seasonal.

Our business is dependent to a certain extent on the seasonal, environmental and climate changes. Hence, our business is seasonal in nature.

8. Any significant dependence on a single or few suppliers or customer

Our business is dependent on few clients. Our top 10 customers contributed 65.75 %, 75.92% and 87.97% of revenue from operations for F.Y. ending on 202425, 202324 and 2022 23 respectively.

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