Injecto Polymers Ltd Management Discussions

Long-term borrowings decreased by Rs.1,681.68 lakhs i.e. 54.16%, from Rs.3,104.99 lakhs in fiscal 2024 to Rs.1423.31 lakhs in fiscal 2025. This decline is due to the conversion of 1,800 0.1% Compulsory Convertible Debentures of face value of Rs.1,00,000/- each, amounting to Rs. 1,800 lakhs, carrying an interest cost of 0.1% per annum, into equity shares during the fiscal 2025 as per the terms of the compulsory convertible debentures agreed upon between the Company and the holders of the aforesaid debentures. This conversion reduced borrowings without cash outflow. Further, the company has repaid term loans to the tune of Rs. 236.33 lakhs during FY 2025 which led to a 25.05% reduction in long-term borrowings from banks and financial institutions as compared to FY 2024. However, there was an increase in additional borrowings from SIDBI to the tune of Rs.405.20 lakhs in FY 2025 for installation of 1Mwp Solar Power Plant.

Short-term borrowings increased by Rs.3,457.87 lakhs, a 66.11% rise from Rs.5,230.24 lakhs in Fiscal 2024 to Rs.8,688.11 lakhs in Fiscal 2025. This increase was driven by higher working capital requirements to support business operations. During FY 2025, the company borrowed an additional Rs.3,035.58 lakhs (net of repayment) from banks and financial institutions and Rs.265.12 lakhs from others, of which Rs.147.82 lakhs was from related parties and Rs.117.30 lakhs as intercorporate loans from unrelated parties. These borrowings have enabled the company to maintain liquidity, support operational growth.

Current maturities of long-term debt stood at Rs.520.65 lakhs in FY 2025, up by Rs.157.17 lakhs from Rs.363.48 lakhs in FY 2024, reflecting the portion of long-term borrowings due within one year.

Trade payables increased by Rs.286.65 lakhs, from Rs.1,271.44 lakhs in FY 2024 to Rs.1,558.09 lakhs in FY 2025, driven by higher procurement to support expanded production. The trade payables days fell sharply from 83 days in FY 2024 to 21 days in FY 2025, reflecting faster settlement of supplier obligations. This indicates that while the company is sourcing more to meet production needs, it is managing cash outflows.

Note: Trade Payable days = Average Trade Payables divided by Credit Purchases per day; No of days =365 days. Inventories:

As on March 31, 2025, the Companys total inventory stood at Rs.7,413.90 Lakhs as compared to Rs.3,949.57 Lakhs as of March 31, 2024, representing an increase of Rs.3,464.33 Lakhs or 87.71% year-on-year. The increase was on account of Finished Goods and Raw Materials, which together accounted for approximately 66.10% of the total increase. Despite higher inventory levels, the Company has improved operational efficiency, with holding periods for Raw Materials, Work- in-Progress, Finished Goods, and Trading Goods reducing to 9, 10, 42, and 34 days, respectively, resulting in a faster overall inventory turnover of 97 days versus 166 days in the previous year. The inventories are kept higher to support higher production and meeting anticipated demand etc.

(Rs. in Lakhs)

Receivables outstanding for a period exceeding six months declined from Rs.318.18 Lakhs as of March 31, 2024, to Rs.9.79 Lakhs as of March 31, 2025. This reduction is due to Companys focus on prudent credit policies, monitoring of receivables, and improved collection from customers.

Conversely, receivables outstanding for a period not exceeding six months increased to Rs.3,570.64 Lakhs as of March 31, 2025, from Rs.2,824.82 Lakhs in the previous year, which is in line with growth in business volumes. Trade receivable days in FY 2025 declined to 47 days against 103 days in FY 2024.

Detailed comparison of the principal components of the Statement of Assets and Liabilities for the financial year ended March 31, 2024 as against the financial year ended March 31, 2023 are provided below:

Long-term borrowings increased by Rs.50.22 lakhs i.e. 1.64%, from Rs.3,054.77 lakhs in Fiscal 2023 to Rs.3,104.99 lakhs in Fiscal 2024. Borrowings from Banks & Financial Institutions decreased by Rs.247.56 Lakhs in fiscal 2024 compared to fiscal 2023, representing 20.79% due to repayment of institutional borrowings while other borrowings increased by Rs.297.78, representing 15.98% increase in fiscal 2024 from the fiscal 2023.

Short-term borrowings increased by Rs.1,933.89 lakhs, representing a 58.67 % rise from Rs.3,296.35 lakhs in Fiscal 2023 to Rs.5,230.24 lakhs in Fiscal 2024. Secured Short Term Demand Loans from banks and financial institution rose by Rs. 2,434.60 Lakhs in FY 2024 to stand at Rs.4,023.80 Lakhs against Rs. 1,589.20 Lakhs in FY 2023, registering an increase of 153.20%. Unsecured term loans/demand loans declined by Rs. 76.54 Lakhs and Current maturities of long-term borrowings stood at Rs.363.48 lakhs in Fiscal 2024 as against Rs.787.65 lakhs in Fiscal 2023, representing a decline of Rs.424.17 lakhs, registering a fall of 53.85%.

The increase in short-term borrowings was on account of higher working capital requirements to support business expansion.

Trade payables decreased by Rs.1,389.87 lakhs, representing a 52.23% reduction from Rs.2,661.31 lakhs in Fiscal 2023 to Rs.1,271.44 lakhs in Fiscal 2024. Notably, trade payables in days also decreased from 91 days in FY 2024 to 83 days in FY 2023, reflecting faster settlement of supplier payments.

Note: Trade Payables days = Average Trade Payables divided by Credit Purchases per day; No of days =365 days Inventories:

The Companys inventory as at March 31, 2024 stood at Rs.3,949.57 lakhs as compared to Rs.3,556.94 lakhs as at March 31, 2023, representing an overall increase of Rs.392.63 lakhs.

As at March 31, 2024, the Companys total inventories stood at Rs.3,949.57 Lakhs, compared to Rs.3,556.94 Lakhs as at March 31, 2023, reflecting an increase of Rs.392.63 Lakhs. The increase was driven by trading goods, which accounted for approximately 134.92% of the total rise. The inventory period for raw material declined to 17 days, whereas the holding period of all other inventories have increased. Inventory Turnover period increased from 133 days to 166 days due to buildup of trading goods.

As of March 31, 2024, our trade receivables stood at Rs.3,143.00 lakhs, compared to Rs.3,038.51 lakhs as of March 31, 2023, representing an increase of 3.44% year-on-year. The increase in trade receivables reflects higher business volumes during the year.

Receivables outstanding for more than six months decreased from Rs.335.26 lakhs in FY 2023 to ^318.18 lakhs in FY 2024, a decline of Rs.17.08 lakhs, or 5.09%. This reduction reflects improved collection by the Company and tighter monitoring of overdue accounts. Conversely, receivables outstanding for a period not exceeding six months increased from Rs.2,703.25 lakhs in FY 2023 to Rs.2,824.82 lakhs in FY 2024, an increase of Rs.121.57 lakhs, or 4.50%, which is on account of growth in revenue during the year.

Trade receivable days, stood at 105 days as of March 31, 2024, compared to 115 days as of March 31, 2023, reflecting an improvement in collections and turnover efficiency.

Our total Income comprises of:

A. Revenue from operations: Revenue from operations consists of sale of products. Sale of products consists of traded goods and manufacturing goods. The other operational income is from commission the company receives for referral of clients to other companies for various works and recovery of sponsorship amount.

B. Other Income: Other income consists mainly of interest income, subsidy levied, foreign currency fluctuation etc.

Our total expenses comprise of Cost of material consumed, Purchase of Stock-In-Trade, Change in inventories, Employee Benefit Expense, Finance Costs, Depreciation & Amortization Expense and Other Expenses.

Cost of Material Consumed includes raw material consumed and purchase of stock in trade.

Purchase of Stock-In-Trade It includes purchases of trading stock.

Changes in inventories of Finished Goods, Work in Progress and Stock in Trade represents the changes between the opening and closing inventories of Finished Goods, Work in Progress and Stock in trade.

It includes Salaries and wages, Contribution of Provident, Provision for gratuity, ESI, and staff welfare Encashment. Interest Cost

It includes Interest expenses and other charges.

It includes Depreciation and amortisation expenses. We recognize Depreciation and Amortization expense on a SLM basis as per provisions of the Companies Act, 2013.

Other expenses include consumption of stores and spares, power and fuel, other factory overhead expenses, import related expenses, administrative expenses, Legal and Professional fees, rent, Rates and Taxes and Selling expenses.

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023:

Our total income has increased by 138.49% from Rs. 10,979.54 Lakhs in FY 2024 to Rs. 26,185.35 Lakhs in FY 2025 due to the factors described below:

Our Revenue from Operations increased by 139.78% in the year FY 2025 as compared to FY 2024. The amount increased from Rs. 10,904.79 Lakhs in FY 2024 to Rs. 26,147.73 Lakhs in FY 2025. Our Revenue from Operations consist of Revenue from manufacturing of PP Fabrics, Woven Sacks as well as trading activity of Plastic granules and PVC Resins.

Our revenue from operations increased by Rs.15,242.94 lakhs, or 139.78%, from Rs.10,904.79 lakhs in FY 2024 to Rs.26,147.73

lakhs in FY 2025. This growth was driven by strong performance across both manufacturing and trading verticals.

• Manufacturing Revenue, constituting 46.81% of total revenue in FY 2025 (vs. 72.35% in FY 2024), registered a growth of 55.13%, reflecting increased capacity utilization, process optimization, and steady demand across core product lines such as Polypropylene Woven Fabrics and Bags. During FY 2024-25, our Company entered into a leave and license agreement with Hind Polyfabs Private Limited, a group company and took over its manufacturing set-up, which resulted in a capacity expansion of 2,400 MT per annum, i.e. from 8,470 MT per annum to 10,870 MT. Further there was an increase in production from 6,730 MT in FY 2024 to 10,823 MT in FY 2025, resulting in an increase of utilisation of 60.81% YoY.

• While the trading segment exhibited a sharp increase in revenue, rising 361.29% YoY, this was driven by commodity demand cycles and expansion in the distribution of Plastic Granules and PVC Resins.

• Revenue from PP Fabrics and Woven Bags together contributed Rs.12,238.81 lakhs in FY 2025, up from Rs.7,889.58 lakhs in FY 2024 — a YoY growth of 55.13%.

o This growth is on account of increase in the Capacity of additional 2,400 MT and incremental capacity utilisation of 6,730 MT in FY 2024 to 10,823 MT in FY 2025, resulting in an increase of utilisation of 60.81% YoY.

o Enhanced order volumes from existing clients o Expanded customer base across new geographies

• The trading revenue from Plastic Granules & PVC Resins, showing significant increase of 361.29% to stand at Rs. 13,908.93 Lakhs in FY 2025 as against Rs. 3,015.21 Lakhs in FY 2024, is volume-driven with lower value addition.

Other income decreased by 49.67% from Rs. 74.75 Lakhs in FY 2024 to Rs. 37.62 Lakhs in FY 2025 because of the following reasons: -

i. No subsidy was received in the financial year ended March 31, 2025 as against Rs. 50.35 Lakhs received in the financial year ended March 31, 2024 as the Government of West Bengal (where the manufacturing facilities of the Company are situated) has withdrawn all subsidy schemes for our Industry.

ii. A one-time income of Rs. 6.30 lakhs from rate difference was registered in the financial year ended March 31, 2024.

iii. Interest on Fixed Deposits has increased to Rs. 31.16 lakhs in financial year ended March 31, 2025 as against Rs. 11.03 Lakhs in the financial year ended March 31, 2024.

The cost of material consumed and purchases of stock in trade are critical components of our total operating expenses. These reflect the input costs directly attributable to our manufacturing and trading operations. The following table sets forth the details for the fiscal years ended March 31, 2025, and March 31, 2024:

The cost of material consumed increased from Rs.5,187.65 Lakhs in Fiscal 2024 to ^11,031.31 lakhs in Fiscal 2025, reflecting an increase of Rs.5,843.66 lakhs i.e., 112.65%.

This increase is driven by:

• A 139.46% increase in purchases of raw materials, from Rs.4,842.40 lakhs in fiscal 2024 to Rs.11,595.76 lakhs in fiscal 2025.

• A comparatively lower closing stock in Fiscal 2025 of Rs.786.12 lakhs compared to purchases, indicating better inventory management.

• A decline in opening stock from Rs.566.92 lakhs in Fiscal 2024 to Rs.221.67 lakhs in Fiscal 2025, due to higher consumption of previously held inventory in Fiscal 2024 and replenishment in Fiscal 2025.

• An increase in manufacturing activity, due to a scale-up in operations because of increase in installed capacity.

The purchase of stock in trade rose sharply from Rs.3,840.40 lakhs in Fiscal 2024 to Rs.13,467.64 lakhs in Fiscal 2025, registering a growth of Rs.9,627.24 lakhs or 250.68% compared to fiscal 2024 due to our focus on capitalizing on procurement opportunities in the fiscal 2025.

(^ in Lakhs)

During the fiscal year 2025, the Company reported a negative change in inventories of Rs. 2,383.11 lakhs, as compared to a change of Rs. 388.74 lakhs in the fiscal year 2024. The increase in the inventory reflects a build-up in closing inventory levels, particularly in finished goods and WIP. The closing inventory increased by Rs. 2,383.11 lakhs in FY 2025, compared to a decline by Rs. 388.74 lakhs in Fiscal 2024, representing a 713.03% year-on-year increase in closing inventory for Fiscal 2025, which shows the confidence of our management in the companys growth trajectory and market positioning.

(Rs. in Lakhs)

During FY25, the Company reported closing inventories of Rs.2,394.39 Lakhs as compared to Rs.1,764.27 lakhs in FY24, representing a 35.72% increase year-on-year. Opening inventories for FY25 stood at Rs.1,764.27 Lakhs significantly higher than Rs.594.68 Lakhs in the pious year, reflecting the carryover of unsold stock from FY24.

The change in inventories for FY25 was Rs. (630.12) Lakhs, compared to ^(1,169.59) lakhs in FY24. While both years reflect an increase in inventories, the lower build-up in FY25 indicates improved sales absorption and better inventory management. This translated into a reduced negative impact on profitability as compared to FY24.

The moderation in inventory build-up suggests that demand conditions were stronger in FY25 relative to the previous year, enabling the Company to convert a larger proportion of production into sales. This not only supports reported profitability but also contributes positively to working capital efficiency.

(Z in Lakhs)

During the financial year ended March 31, 2025, the total employee benefits expense increased by Rs.63.39 lakhs or 42.91% to ^211.11 lakhs from Rs.147.72 lakhs in the previous financial year. This increase was primarily due to the following factors:

• Salaries and Wages, increased by Rs.60.90 lakhs or 44.77%, attributable to, expansion in workforce to support business growth, annual increments and performance-linked compensation.

(Z in Lakhs)

Total Interest Cost increased by Rs. 177.71 lakhs in fiscal 2025 compared to fiscal 2024, representing an increase of 33.23%.

This is mainly due to the following:

• Interest Cost on working capital facilities increased by Rs.144.00 lakhs in fiscal 2025 compared to fiscal 2024, representing an increase of 48.02% due to enhanced utilization of sanctioned limits to meet higher operational requirements, driven by capacity expansion during the year and incremental short-term borrowings to support the working capital requirements of the Company.

• Interest on term Loan increased by Rs.10.07 Lakhs, representing an increase of 6.18% in fiscal 2025 compared to fiscal 2024.

• Interest on unsecured loans increased by Rs.23.86 lakhs in fiscal 2025 compared to fiscal 2024, representing an increase of 34.11% as the Company has relied on short-term borrowings from group entities and financial institutions without collateral.

• Marginal decline in interest expenses on debentures was due to conversion of debentures on 24^th of March, 2025 into equity shares.

Depreciation and Amortization Expenses

Depreciation and amortization expenses has increased by Rs.37.57 lakhs in fiscal 2025 compared to fiscal 2024, clocking an increase of 19.52% due to rise in the depreciable base of assets in fiscal 2025. The increase is consistent with a growing asset base and reflects the companys ongoing investments in installed capacity.

Other Expenses

During the financial year ended March 31, 2025, our total operating expenses stood at Rs.2,194.02 Lakhs, representing a significant increase of 72.07% as compared to Rs.1,275.05 Lakhs in the previous financial year. The increase was broad- based across several expense categories, with certain heads showing growth due to operational scale-up and higher business activity.

Key expense movements are as follows:

• Consumption of Stores & Spares increased by 18.16% from Rs.482.89 Lakhs in FY 2024 to Rs.570.57 Lakhs in FY 2025. This increase was on account of higher production volumes and increased maintenance requirements.

• Power & Fuel expense rose by 20.71% i.e., Rs.719.23 Lakhs in FY 2025, from Rs.595.84 Lakhs in FY 2024, reflecting higher energy costs due to capacity utilization.

• Other Factory Overhead Expenses grew by 75.98% to Rs.60.15 Lakhs, driven by higher factory-level operational activities.

• Import Related Expenses witnessed an increase of 405.46% from Rs.21.05 Lakhs in FY 2024 to Rs.106.40 Lakhs in FY 2025, attributable to increased reliance on imported inputs and adverse foreign exchange fluctuations.

• Insurance Expenses increased to Rs.12.64 Lakhs, because of expansion in the asset base and higher insurance premium costs.

• Administration Expenses increased by 78.89% to Rs.26.69 Lakhs, in line with the scaling up of our business operations.

• Rent rose substantially by 443.79% to Rs.75.26 Lakhs in FY 2025, mainly due to taking of manufacturing facilities by the company from one of our Group Company - Hind Polyfabs Private Limited, Unit-II at Village Panchpara, P.O. Radhadasi, Andul Road, Howrah, West Bengal - 711317, which was taken on leave and license basis by the Company w.e.f. May 24, 2024.

• Rates & Taxes surged to Rs.66.63 Lakhs as against Rs.1.24 Lakhs in FY 2024, mainly due to statutory levies and assessments during the year. The Company has paid GST penalty of Rs. 61.0 Lakhs during FY 2025.

• Selling Expenses increased to Rs.536.08 Lakhs in FY 2025 from Rs.84.01 Lakhs in FY 2024, representing a growth of 538.11%, in line with higher sales volumes and expanded distribution network. This was mainly due to increase in unloading charges by Rs. 29.75 Lakhs (152.3%), transportation charges by Rs. 37.07 lakhs (68.68%), substantial increase in amount of discounts and claims provided to large customers by Rs. 368.17 Lakhs on accounts of incremental offtake by them and sales promotion expenses of Rs. 13.88 Lakhs (100%) in FY 2025.

• Legal & Professional Fees remained stable at Rs.19.37 Lakhs as compared to Rs.19.17 Lakhs in FY 2024.

• Auditors Remuneration was unchanged at Rs.1.00 Lakhs.

Going forward, the Company remains focused on operational efficiencies, prudent cost management, and optimizing resource utilization to ensure that expense growth remains aligned with revenue expansion.

Profit before Tax:

Our Profit Before Tax (PBT) increased to ^1,119.65 lakhs in Fiscal 2025 from Rs.494.02 lakhs in Fiscal 2024, representing an increase of Rs.625.63 lakhs or 126.64%. The increase in profits before tax is primarily attributable to the corresponding increase in revenue from operations, which registered a substantial growth of 139.78% in fiscal 2025.

Tax Expenses

Our total tax expenses for the fiscal year ended March 31, 2025, stood at Rs.308.69 lakhs, as compared to Rs.49.66 lakhs for the fiscal year ended March 31, 2024. This represents an increase of Rs.259.03 lakhs or 521.60% on a year-on-year basis. The rise in tax expenses is attributable to improved profitability during the year, leading to higher taxable income and consequently higher current tax liability.

Profit after Tax

Our Profit After Tax (PAT) increased to Rs.810.96 lakhs in fiscal 2025, compared to Rs.444.36 lakhs in fiscal 2024, reflecting strong growth in profitability. The key attributes for the growth in Profits After Tax are as follows:

1. Growth in Revenue from Operations

2. Efficient Cost Management

3. Improved Operating Margins

COMPARISON OF FINANCIAL YEAR ENDED 2024 TO FINANCIAL YEAR ENDED 2023 INCOME

The Total Income has increased by ^1317.73 Lakhs, representing 13.64% in Fiscal 2024 as compared to Fiscal 2023, comprising of a rise of 13.29% in Revenue from Operations and a significant rise of 104.63% in Other Income.

Revenue from Operations:

Our Revenue from Operations increased by 13.29% in the fiscal 2024 as compared to Fiscal 2023. The amount increased from Rs.9,625.28 Lakhs in Fiscal 2023 to Rs.10,904.79 Lakhs in Fiscal 2024. Our Revenue from Operations consist of Revenue from manufacturing of PP Fabrics, PP Fabric Bags and trading in Plastic Granules & PVC Resin.

The Revenue Mix from Operations for financial Year 2025 and Financial Year 2024 are as follows:

This growth was driven by improved performance across both manufacturing and trading verticals, with the manufacturing segment continuing to serve as the operational backbone of the business.

• Manufacturing Revenue increased by Rs. 541.66 lakhs, representing a marginal increase of 7.37%. The increase was attributable to higher demand from existing customers and enhanced production efficiencies.

• Trading Revenue, increased by Rs. 737.85 lakhs representing an increase of 32.40%. The increase was primarily due to expansion in product offerings, wider customer reach, and enhanced sourcing capabilities.

Details of Revenue from Operations (Major Products)

Total revenue from operations increased by 13.29% from Rs.9,625.28 lakhs in FY 2023-24 to Rs.10,904.79 lakhs in FY 202425. This growth demonstrates the business model of the Company and reflects the Companys ability to diversify revenue streams between manufacturing and trading segments.

a) Manufacturing

• PP Fabrics: Revenue declined by 31.49% to Rs.4,626.03 lakhs in FY 2024 compared to Rs.6,752.06 lakhs in FY 2023. During FY 2024, the Company has channelised a certain portion of PP Fabrics produced inhouse to manufacture PP Woven Bags, thereby recoding an increase in manufacturing of PP Woven Bags and a reduction in volume of PP Woven Fabrics available for outright sale in the markets.

• PP Woven Bags: Revenue increased substantially by 447.69%, reaching Rs.3,263.55 lakhs in FY 2024-25 as against Rs.595.87 lakhs in the previous year. This was driven by capacity expansion, improved utilization levels, and higher domestic demand from agro-based and industrial customers.

• Total Manufacturing Revenue: Improved by 7.37%, from Rs.7,347.93 lakhs in FY 2023-24 to Rs.7,889.58 lakhs in FY 2024-25, reflecting a balanced portfolio.

Other Income

Other income increased by 104.60% from Rs. 36.53 Lakhs in FY 2023 to Rs.74.75 Lakhs in FY 2024. The increase was primarily driven by: -

i. Higher subsidies received, which increased by Rs. 22.25 Lakhs, representing government or regulatory incentives linked to our operations.

ii. Increased interest income on fixed deposits, rising by Rs. 7.33 Lakhs, reflecting higher average deposit balances.

iii. Significant growth in rate difference & freight income, up from Rs. 0.08 Lakhs to Rs.6.30 Lakhs.

iv. Forex income also improved, increasing by Rs. 2.13 crore, due to favourable foreign exchange movements.

EXPENDITURE

Cost of Material Consumed and Purchase of Stock in Trade

The cost of material consumed and purchases of stock in trade are critical components of our total operating expenses. These reflect the input costs directly attributable to our manufacturing and trading operations. The following table sets forth the details for the fiscal years ended March 31, 2024, and March 31, 2023:

260

The cost of material consumed decreased significantly from Rs.6,398.73 Lakhs in Fiscal 2023 to Rs.5187.65 Lakhs in Fiscal 2024, reflecting a decline of ^1,211.08 lakhs, representing a decrease of 18.93%.

This decrease was primarily driven by:

• A 23.40% decline in purchases of raw materials, from Rs.6,321.29 lakhs in fiscal 2024 to Rs.4,842.40 lakhs in fiscal 2024, which was due to our improved procurement efficiency and partial softening of commodity prices.

• A comparatively lower closing stock in Fiscal 2024 of Rs.221.67 lakhs compared to purchases, indicating better inventory management.

• A decline in opening stock from Rs.644.36 lakhs in Fiscal 2023 to Rs.566.92 lakhs in Fiscal 2024, due to higher consumption of previously held inventory in Fiscal 2023 and replenishment in Fiscal 2024.

Conversely, the purchase of stock-in-trade increased by Rs.1,116.97 lakhs (approximately 41.01%) from Rs.2,723.43 lakhs in Fiscal 2023 to Rs.3,840.40 lakhs in Fiscal 2024. This increase was attributable to a strategic shift in product mix, enhanced focus on traded goods, and higher volume in our trading operations during the year.

The company has continued to maintain efficient inventory management, with moderate closing stock levels relative to total purchases, due to focus of the company on just-in-time procurement, minimizing holding costs while ensuring uninterrupted production.

Opening Inventories increased from Rs.1,325.25 Lakhs in FY 2023 to Rs.2,239.02 lakhs in FY 2024, registering a growth of 68.98% YoY. The increase was primarily attributable to higher procurement of raw materials and finished goods carried forward from the previous year to meet anticipated demand.

Closing Inventories decreased from Rs.2,239.02 Lakhs in FY 2023 to Rs.1,850.28 lakhs in FY 2024, a decline of 17.36% YoY. This decline was due to improved inventory turnover, rationalisation of stock levels, and better alignment of production schedules with market requirements.

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade stood at Rs.388.74 Lakhs in FY 2024 compared to (Rs.913.77) Lakhs in FY 2023, reflecting a 142.54% YoY change. This significant swing indicates a shift from

inventory build-up in the previous year to inventory release during FY 2024, positively contributing to operational cash flows.

During the financial year ended March 31, 2024, the Company recorded a notable movement in inventories.

• Opening Inventories stood at Rs.594.68 Lakhs as against Rs.158.49 Lakhs in FY 2023, reflecting a higher stock carried into the year.

• Closing Inventories increased substantially to Rs.1,764.27 Lakhs as against Rs.594.69 Lakhs in FY 2023, a 196.88% YoY growth.

• Changes in Inventories stood at an increase of Rs. 1,169.59 Lakhs as against an increase of Rs.436.20 Lakhs in FY23.

This substantial build-up of inventories highlights the Companys preparedness to meet anticipated demand, while also indicating a strategic stocking approach compared to the previous year.

During the financial year ended March 31, 2024, the total employee benefits expense increased by Rs.53.70 lakhs or 57.12% to Rs.147.72 lakhs from Rs.94.02 lakhs in the previous financial year. This increase was primarily due to the following factors:

• Salaries and Wages, increased by ^51.37 lakhs or 60.69%, attributable to expansion in workforce strength and annual salary revisions to retain and attract talent.

Total Interest expense increased by Rs. 186.19 lakhs in fiscal 2024 compared to fiscal 2023, representing an increase of

53.41%. This is mainly due to the following:

• Interest expenses on working capital facilities increased by Rs.152.54 lakhs in fiscal 2024 compared to fiscal 2023, representing an increase of 103.552% due to enhanced utilization of sanctioned limits to meet higher operational requirements, driven by capacity expansion during the year.

• Interest on unsecured loans increased by Rs.69.61 lakhs in fiscal 2024 compared to fiscal 2023, as the Company has relied on short-term borrowings from group entities and financial institutions.

• Interest expenses on debentures increased by 100% in fiscal 2024 compared to fiscal 2023.

• Interest on term loans declined by t37.91 lakhs in fiscal 2024 compared to fiscal 2023, representing a decrease of 18.86%.

in Lakhs)

The Depreciation and Amortization Expenses for the financial year ended March 31, 2024, stood at t192.49 crore as compared to t183.26 crore for the financial year ended March 31, 2023, representing an increase of t9.23 crore or 5.04%. The increase was on account of additions to fixed assets and the resultant higher depreciation in the current year.

For the fiscal year ended March 31, 2024, our total other expenses stood at t1,275.05 lakhs as compared to t964.76 lakhs in the previous year, representing an increase of t310.29 lakhs or 32.16% year-on-year. This increase is in line with the Companys growth in revenue and business operations, and reflects investments in capacity expansion and operational support functions. Below is a detailed breakdown and analysis of the key components of our operating expenses:

The Key Contributors to the increase in total other expenses are as follows:

• Consumption of Stores & Spares increased by 89.42% due to higher operational requirements and maintenance activities.

• Power & Fuel expenses rose by 12.50%, reflecting higher production volumes and resultant increase in energy costs.

• Import related expenses increased by 182.93%, attributable to higher reliance on imported raw materials and forex fluctuations.

• Selling Expenses grew by 28.20%, in line with enhanced marketing and distribution efforts. Our Commission expenses increased by t 3.84 Lakhs (225.13%) and Loading and Unloading Charges increased by t 13.42 Lakhs (219.08%).

Our Profit Before Tax (PBT) increased to t494.02 lakhs in Fiscal 2024 from t132.73 lakhs in Fiscal 2023, representing an increase of t361.29 lakhs or 272.20%. The significant increase in profits before tax is attributable to an increase in revenue from operations, which registered a growth of 13.64% in fiscal 2024 coupled with a decrease in Cost of Raw Material consumed by 18.93% and changes in inventories of finished goods, WIP and stock in trade by 42.26%

The Companys total tax expense for the year ended March 31, 2024, stood at Rs.49.66 lakhs, as against a net tax credit of Rs.73.87 lakhs in FY 2022-23. The shift from a net tax credit position in FY23 to a tax expense in FY24 is primarily attributable to the Companys improved profitability and the resulting impact on deferred and current tax provisions.

Our Profit After Tax (PAT) increased to Rs.444.36 lakhs in fiscal 2024, compared to Rs.206.60 lakhs in fiscal 2023, due to a corresponding increase in profitability, reflecting a 115.08% increase in Profit After Tax (PAT) as compared to FY23.The key attributes for the growth in Profit After Tax are as follows:

1. Growth in Revenue from Operations

2. Cost Management due to economies of scale

The table below is our cash flows for the financial years ended on March 31, 2025, 2024 and 2023:

Net cash used in operating activities was Rs.1,689.56 Lakhs, primarily driven by a substantial increase in working capital requirements, particularly increase in inventories by Rs.3,464.33 Lakhs & trade receivables by Rs.437.43 Lakhs and decrease in Trade payables by Rs.286.65 lakhs and other current liabilities by Rs. 89.15 Lakhs respectively. Further there was an increase in Bank Balances other than cash and cash equivalents by Rs.346.19 Lakhs. While the profit before tax improved to ^1,119.65 lakhs, and the operating profit before working capital changes stood at Rs.2,263.35 Lakhs, the elevated inventory build-up significantly impacted cash flows. The buildup in the inventories was primarily due to higher raw material procurement owing to manufacturing capacity expansion and stocking of traded goods in anticipation of higher future demand and pricing advantages.

Net cash used in operating activities was Rs.1,295.23 lakhs, primarily driven by an increase in working capital requirements, particularly increase in inventories by Rs.393.63 Lakhs, trade receivables by Rs.104.49 Lakhs and other current assets by Rs. 562.02 lakhs respectively. There is a marked decrease in Trade payables by Rs.1389.87 lakhs and a decrease in other current liabilities by Rs. 44.24 Lakhs respectively. Operating profit before working capital changes improved to Rs.1,298.53 lakhs, supported by improved profitability across both segments, viz trading and manufacturing. The build-up in inventories, Trade receivables and other current assets used up cash in FY 2024. However, this was significantly offset by the credits extended by the Creditors of the Company and a decline in other current liabilities.

Net cash used in operating activities for FY 2023 was Rs.229.81 Lakhs, driven by increase in inventories by Rs. 1428.85 Lakhs and Trade receivables by Rs. 232.59 Lakhs. Although profit before tax was relatively modest at Rs.132.73 Lakhs, operating profit before working capital changes amounted to Rs.827.14 Lakhs, driven by finance and depreciation-related adjustments. The key contributors were a significant increase in inventories by Rs.1,428.85 Lakhs, due to the commencement of higher trading activity and planned stock accumulation, increase in trade receivables (Rs.232.59 lakhs) on account of higher credit sales in both business segments and an increase in trade payables (Rs.806.49 Lakhs) due to extended credit support from suppliers, partially offsetting the cash burden.

Net cash used in investing activities during FY 2025 amounted to Rs.944.18 Lakhs, representing the highest capital outlay in the three-year period. Key components include: (i) Net outflow towards Purchase of property, plant, and equipment of Rs.1,002.32 lakhs, reflecting upon major capital expenditure towards capacity expansion, modernisation of manufacturing infrastructure and deployment of new technologies, (ii) Net inflow of Rs.50.48 Lakhs indicates capital projects reaching completion, with costs transferred to fixed assets and (iii) Interest income of ^31.16 lakhs was realized during the year, from fixed deposits maintained for margin/collateral purposes by the Company.

The substantial increase in capital expenditure aligns with the Companys broader growth strategy, aiming to strengthen manufacturing capacity and build an efficient trading backend. The completion of CWIP projects also suggests that earlier investments are transitioning into productive use, expected to yield revenue and operational benefits in subsequent years.

In FY 2024, net cash used in investing activities stood at Rs.291.64 Lakhs. The investment pattern during this year reflected upon the transitional capex phase, comprising both new investments and continuation of projects initiated earlier by the Company. Key components include:(i) Net outflow towards Purchase of property, plant, and equipment of Rs.283.44 lakhs, primarily toward expansion and maintenance capex in manufacturing operations, (ii) Net outflow of Rs.38.90 lakhs in CWIP owing to ongoing construction and equipment procurement for planned upgrades, and (iii) Interest income of Rs.11.03 lakhs fixed deposits from fixed deposits maintained for margin/collateral purposes by the Company.

FY 2024 was a bridge year for the Company, marked by moderate asset creation while we were preparing for accelerated growth in FY 2025. The mix of ongoing CWIP and asset additions reflects upon our strategy of active project management and phased deployment of investment capital.

Net cash used in investing activities in FY 2023 was Rs.253.89 Lakhs, driven mainly by asset build-up for foundational operations. The key components include: (i) CWIP additions of Rs.176.18 Lakhs for setting up or expanding facilities, (ii) Capex spending of Rs.113.80 lakhs, a majority of which relates to infrastructure development, including plant and machinery for core manufacturing lines, (iii) Capital advances of Rs.24.82 lakhs towards contracts and vendor mobilization for capex rollout and (iv) Interest income of: Rs.3.70 lakhs, derived from limited short-term investments.

FY 2023 marked the initiation of a long-term investment cycle for the Company to support its growth strategy, laying the physical and contractual foundation for scaling up operations. The large CWIP build-up reflects assets under development, which have been progressively capitalized in the following years.

Overall, the Companys cash flows from investing activities are a reflection of a strategically sequenced capex program, oriented toward long-term asset creation, operational scalability, and competitive readiness. The shift from heavy CWIP in FY 2023 to higher asset capitalization in FY 2025 demonstrates effective project execution and capital allocation. As these investments mature and become revenue-generating, they are expected to contribute to improved operational cash flows and return on capital employed.

Net cash generated from financing activities during FY 2025 stood at Rs.2,631.40 lakhs, the highest among the reported years, and primarily reflects the Companys strategy to fund its aggressive growth and working capital requirements. The key components were (i) Equity infusion of Rs.1,800.00 lakhs by conversion of 0.1% Compulsory Convertible debentures into equity shares, (ii) Increase in short-term borrowings by Rs.3,457.88 lakhs, reflecting upon the Companys reliance on short term funding for meeting its working capital requirements, (iii) reduction in long term borrowings by Rs. Rs.1,681.68 lakhs due to repayment, reflecting upon a shift toward reducing leverage duration by the Company and (iv) interest payment of Rs. Rs.944.80 Lakhs, which the company counts as financial cost of supporting expansion and aims to optimise over a period of time.

Net cash generated from financing activities during FY 2024 was Rs.1,584.10 Lakhs. The funding mix focused more on debt-led growth but also included modest equity infusion. The key components were (i) increase in short term borrowings by Rs. 1,933.89 lakhs to meet elevated working capital requirements and to settle outstanding trade payables, (ii) Equity infusion of Rs. 223.04 lakhs by private placement, (iii) increase in long term borrowings by Rs. 50.22 lakhs and (iv) Interest payment of Rs.623.05 lakhs.

Net cash generated from financing activities in FY 2023 was Rs.478.27 Lakhs, forming the foundation of the Companys financial structuring strategy during its early expansion phase. The key components were: (i) increase in short term borrowings by Rs. 1522.68 lakhs, (ii) Equity infusion of Rs. 318.12 lakhs by private placement, (iii) reduction in long term borrowings by Rs. 847.68 lakhs due to repayment of long-term loans and shifting towards short term borrowings and (iv) interest payment of Rs. 514.85 lakhs.

Related party transactions with our promoters, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled "Restated Financial Statements" beginning on page no. 194 of this Draft Red Herring Prospectus.

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

The Restated Financial Statements do not contain any qualifications which have not been given effect in the restated financial statements.

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Our financial results are subject to changes in interest rates, which may affect our debt service obligations in future and our access to funds.

We are affected by inflation as it has an impact on the salary, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

Except as disclosed in chapter titled "RestatedFinancial Statements " beginning on page no. 194 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Financial Years.

Except as described in this Draft Red Herring Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered "unusual" or "infrequent".

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect our income from continuing operations identified above in ‘Managements Discussion and Analysis of Financial Conditions and Results of Operations - Significant factors affecting our financial condition and results of operations and the uncertainties described in ‘Risk Factors on Page no. 247 and 29 respectively.

Other than as described above and in the section titled "Risk Factors " beginning on page no. 29 of this Draft Red Herring Prospectus, 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.

Other than as described in the section above and chapters titled "Risk Factors" and "Our Business" beginning on page No. 29 and 127 of this Draft Red Herring Prospectus, there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

Changes in revenue in the last three financial years are as explained in the part "Financial Year 2024-25 compared with financial year 2023-24 and Financial Year 2023-24 compared with Financial Year 2022-23" above.

Significant proportion of our purchases have historically been derived from a limited number of suppliers. The % of Contribution of our suppliers vis a vis the total purchases for the financial year ended March 31, 2025, 2024 and 2023 are as follows:

(Z in Lakhs)

Significant proportion of our sales have historically been derived from a limited number of customers. The % of Contribution of our customers vis a vis the total revenue from operations for the financial year ended March 31, 2025, 2024 and 2023 are as follows:

Please refer to the chapter titled "Our Business" beginning on Page No. 127 of this Draft Red Herring Prospectus for new products or business segments.

Our business is not subject to seasonal variations.

Competitive conditions are as described under the Chapters titled "Industry Overview" and "Our Business"" beginning on page no 121 and 127 respectively of this Draft Red Herring Prospectus.