Jainik Power & Cables Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for financial year ended March 31, 2025, March 31, 2024 and March 31, 2023. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Information" on page 185 of the Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors " on page 29 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 19 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Jainik Power Cables Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for Financial Years 2025, 2024 & 2023 included in this Red Herring Prospectus beginning on page 185.

BUSINESS OVERVIEW

Our Company was originally incorporated as a private limited Company under the Companies Act, 1956, in the name and style of "Jainik Enterprises Private Limited" bearing corporate identification number U27205DL2011PTC218425, dated May 02, 2011 issued by the Registrar of Companies, Delhi. Subsequently, the name of our company was changed to "Jainik Power and Cables Private Limited" pursuant to a shareholders resolution passed at Extra-Ordinary General Meeting held on February 15, 2024 and a fresh certificate of incorporation dated May 08, 2024, was issued by Registrar of Companies, Delhi bearing corporate identification number U27205DL2011PLC218425. The name of our company was subsequently changed to ‘Jainik Power Cables Limited and fresh certificate of incorporation was issued by the ROC dated April 08, 2025. For further details of change in name and change in registered office of our Company, please refer to section titled ‘Our History and Certain Other Corporate Matters beginning on page 150 of this Red Herring Prospectus.

Jainik is engaged in manufacturing aluminum wire rods from the year 2023, and its been more than a decade since the company has worked in the metal industry, before the manufacturing the company deals in the trading of aluminum rods. Our Company is a manufacturer and supplier of aluminum wire rods with quality practices and compliant with the Environmental, Health, and Safety (EHS) in the manufacturing industry as certified with the ISO Certificates held by the Company. The company has a Quality Assurance Department which ensures testing through spectrometers for purity checks and detects even hidden impurities.

Our manufacturing facility located in Sonipat, Haryana, has been certified with ISO 9001:2015 from Innovative Systemcert Pvt. Ltd. and ISO 14001:2015 from United Accreditation Foundation, a member of International Accreditation forum to maintain highest quality, environmental and safety practices. Our company has obtained certificate of authorization from Haryana State Pollution Control Board for generation, collection, storage, disposal of certain Hazardous Substance. The authorization allows the Company to use mineral/synthetic oil as lubricant in hydraulic systems or other applications.

The company started manufacturing on 01.04.2023. It purchased land in the financial year 2021-22 and immediately began construction of a building for its manufacturing facilities. The company also purchased

additional land in the financial year 2022-23 and incurred capital expenditure related to the existing manufacturing facility.

We supply our products across various states, mainly in states of Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand. For the Financial Years 2025, 2024 and 2023, the aggregate revenue from operations from these states were Rs 33,776.58, Rs 33,743.90 and Rs 6182.87 Lakhs respectively. We manage our sales and marketing activities through our registered office in Delhi, and factory premises. Presently our company manufactures aluminum wire rods of 9.5 mm for our customer base.

Our Company is led by our Promoters comprising our Managing Director, Mr. Shashank Jain, and our Director, Mr. Prateek Jain, who have a combined experience of approximately about 32 years in the metal industry. Each of our Promoters are involved in the critical aspects of our business, including expansion, process and plant, finance, sales and marketing.

SIGNIFICANT DEVELOPMENTS AFTER THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and Lead Manager, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

• Appointment of Mr. Shashank Jain as Managing Director of the Company w.e.f March 01, 2024

• Appointment of Ms. Priyal Agrawal as Company Secretary of the Company w.e.f. May 09, 2024.

• Appointment of Mr. Manish Wahi as the Independent Director of the Company w.e.f. May 11, 2024.

• Appointment of Mr. Sachin Goyal as the Independent Director of the Company w.e.f. May 11, 2024.

• The Board of Directors and the members of the Company approved the allotment of equity shares by way of Bonus Issue w.e.f. June 24, 2024.

• The Board of Directors and the members of the Company approved the allotment of equity shares by way of Private Placement w.e.f. July 27, 2024.

• Resignation of Ms. Priyal Agrawal as Company Secretary of the Company w.e.f October 26, 2024.

• Appointment of Ms. Kumari Sonal as Company Secretary of the Company w.e.f October 26, 2024.

• The Board of Director has passed the resolution dated April 01, 2025 for name change of company from ‘Jainik Power and Cables Limited to ‘Jainik Power Cables Limited.

• The Shareholders has passed the special resolution dated April 01, 2025 for name change of company from ‘Jainik Power and Cables Limited to ‘Jainik Power Cables Limited.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 29 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

• Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

• Companys results of operations and financial performance;

• Fluctuation in London Metal exchange data, which impacts the price for our company.

• Performance of Companys competitors;

• Significant developments in Indias economic and fiscal policies;

• Volatility in the Indian and global capital market;

• Changes in political and social conditions in India

• Inflation, deflation, unanticipated turbulence in interest rates,

• Fluctuations in operating costs may results volatility in Companys results of operations and financial performance;

• Our ability to meet our capital expenditure requirements and/or our failure to keep pace with rapid changes in technology;

• Our dependence on our key personnel, including our directors and senior management;

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

• The occurrence of natural disasters or calamities;

• Other factors beyond our control.

(Amount in Lakhs)

Particulars	For the year ended 31 March, 2025	%age of Total Income	For the year ended 31 March, 2024	%age of Total Income	For the year ended 31 March, 2023	%age of Total Income
Income
Revenue from Operations	35,168.95	99.80	33,862.12	99.82	6,738.40	99.85
Other Income	69.01	0.20	61.05	0.18	10.32	0.15
Total Income	35,237.96	100	33923.17	100	6748.73	100
Expenditure
Cost of material consumed	32,806.04	93.10	32,385.44	95.47	-	-
Purchases of Stock in Trade	-	-	900.15	2.65	6592.76	97.84
Changes in inventories	426.11	1.21	(568.32)	(1.68)	-	-
Employee benefits expenses	290.72	0.83	121.96	0.36	0.57	0.01
Other expenses	246.14	0.70	211.48	0.62	9.43	0.14
Total expenses	33,769.01	95.83	33,050.71	97.43	6,602.75	97.84
Profit Before Interest, Depreciation and Tax	1,468.95	4.17	872.47	2.57	145.97	2.16
Depreciation & Amortization Expenses	89.00	0.25	73.11	0.22	16.68	0.25
Profit Before Interest and Tax	1,379.95	3.92	799.36	2.36	129.30	1.92
Financial Charges (Finance cost)	142.71	0.40	125.19	0.37	109.69	1.63
Profit before Taxation & Exceptional Item	1237.24	3.51	674.17	1.99	19.60	0.29
Exceptional Item	0.00	0	0	0.00	0	0.00
Profit before Taxation	1237.24	3.51	674.17	1.99	19.60	0.29
Current Tax	316.92	0.90	171.33	0.51	4.62	0.07
Deferred Tax	(3.28)	(0.01)	0.97	0.00	0.32	0.00
Earlier Years Tax Expense	0.00	0	0	0.00	0	0.00
Profit After Tax but Before Extra-ordinary Items	923.60	2.62	501.86	1.48	14.66	0.22
Extraordinary Items

The product-wise revenue breakup of the Company is as follows:

(Amount in Lakhs)

Product	For the year ended March 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
Aluminium Ash	3.21	3.14	0.00
Aluminium Dross	550.03	544.95	0.00
Aluminium Ingot	0.00	0.00	0.00
Aluminium Throb	0.00	0.00	2,288.87
Aluminium Wire Ingot	0.00	0.00	820.02
Aluminium Wire Rod	34,613.46	33,084.52	1,175.33
All type of Metal at MCX	0.00	103.04	793.40
Others	0.00	0.00	45.81
Iron & Steel Scrap	2.24	23.21	0.00
Exim Script	0.00	103.26	1,615.09
Total	35,168.94	33,862.12	6,738.52

The Geographical Wise Revenue Breakup of the company is as follows:

(Amount in Lakhs)

State Name	For the year ended March 31, 2025	% of total revenue	For the year ended March 31, 2024	% of total revenue	For the year ended March 31, 2023	% of total revenue
Delhi	7,567.82	21.52	6,204.14	18.32	4,859.95	72.03
Haryana	3,279.96	9.33	2,195.39	6.48	1,008.31	14.94
Himachal Pradesh	1,006.78	2.86	-	-	-	-
Madhya Pradesh	-	-	65.09	0.19	-	-
Maharashtra	-	-	-	-	140.25	2.08
Punjab	385.58	1.10	61.25	0.18	159.59	2.37
Rajasthan	10,240.45	29.12	3,918.73	11.57	168.45	2.50
Uttar Pradesh	11,279.44	32.07	21,353.44	63.04	125.27	1.86
Uttarakhand	1,408.91	4.00	72.70	0.21	20.89	0.31
West Bengal	-	-	-	-	264.79	3.92
Total	35,168.94	100	33,870.74	100	6,747.50	100

For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled "Financial Statements" beginning on page 185 of the Red Herring Prospectus.

The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the Financial Year 2025, 2024 and 2023. Our revenue and expenses are reported in the following manner:

? Revenue of operations

Our Companys revenue is primarily generated from the business of selling of Aluminum wire rods mainly to cable conductor manufacturers.

? Other Income

Other Income includes Interest Income from Bank and others, dividend income, capital gain on sale of investment and Profit on Sale of Fixed Assets.

(A winnpit 7M T nkha\

Particulars	For the period ended March 31,
	2025	2024	2023
Income
Revenue from Operations	35,168.95	33,862.12	6,738.40
As a % of Total Income	99.80%	99.82%	99.85%
Other Income	69.01	61.05	10.32
As a % of Total Income	0.20%	0.18%	0.15%
Total Income	35,237.96	33,923.17	6,748.72

Our total expenditure primarily includes cost of material consumed, Employee benefit expenses, and Other Expenses. We also have incurred financial charges and depreciation as expenditure, which we have shown separately from total expenditure.

? Cost of material consumed

Our cost of material includes purchasing of Aluminium Scrap and Aluminium Ingots, factory costs such as rent, electricity and factory expenses along with Freight and cartage and custom and clearance charges as these all are direct cost.

? Cost of goods sold

Our cost of goods sold includes purchasing of Aluminium Scrap and Aluminium Ingots and selling it aluminium wire rode manufacturer including difference of closing and opening inventory of stock in trade.

? Change in Inventory

Our change in inventory includes difference between opening balance and closing balance of scrap material and finished stocks.

? Employment Benefit Expenses

Our employee benefits expense primarily comprises of Salaries, Wages & Bonus expenses, Contribution to Provident and Other Fund and Staff welfare expenses.

? Finance Cost

Our finance costs mainly include Bank interest, and interest on term and car loan.

? Depreciation and Amortization Expenses

Depreciation includes depreciation on Buildings, Plant & Machinery, Furniture & Fixtures, Computers, etc.

? Other Expenses

Other Expenses includes majorly Freight outward, Electricity, Insurance, Rates & Taxes, Audit Fee, Business Promotion Expenses, Commission, Security Expenses, Vehicle Running and Maintenance, Legal and professional expenses, Repair and maintenance of building and others, etc.

? Total Income

Total Income for the Financial Year 2024-25 stood at Rs. 35,237.96 Lakhs whereas in Financial Year 202324 it stood at Rs. 33,923.17 Lakhs representing an increase of 3.88%, which is nominal year on year growth for the company.

? Revenue of operations

Net revenue from operations for the Financial Year 2024-25 stood at Rs. 35,168.95 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs.33,862.12 Lakhs representing an increase of 3.86%. Marking the nominal growth rate for the company.

? Other Income

Other Income for the Financial Year 2024-25 stood at Rs. 69.01 Lakhs. Whereas for the Financial Year 202324, it stood at Rs.61.05 Lakhs representing an increase of 13.04%. This was due to interest income of Rs 38.46 lakhs earned during the year.

? Total Expenses

Total Expenses for the Financial Year 2024-25 stood at Rs. 34,000.72 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs.33,249.01 Lakhs representing an increase of 2.26%, which is in line with the increase in total turnover and other incomes.

? Cost of Material Consumed

Cost of material consumed for the Financial Year 2024-25 stood at Rs.32,806.04 Lakhs. Whereas for the Financial year 2023-24, it stood at Rs.32,385.44 Lakhs representing an increase of 1.30% representing a nominal increase as compared to that of revenue from operations.

? Cost of Goods Sold

Cost of Goods Sold for the Financial Year 2024-25 stood at Rs. Nil. Whereas for the Financial year 202324, it stood at Rs.900.15 Lakhs. It includes ^897.33 Lakhs as opening stock in trade and other direct expenses such as Godown rent and loading & unloading charges. As company shifted its business from trading to manufacturing, this cost became nil.

? Change in Inventory

Change in Inventory for the Financial Year 2024-25 stood at Rs. 426.11 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs. (568.32) Lakhs. The significant variance is attributable to the business transition from trading to manufacturing during FY 2023-24. As there was no opening stock at the beginning of FY 2023-24, the entire closing stock of ^568.33 Lakhs at year-end was recognized as a change in inventory. In contrast, FY 2024-25 reflects a more stabilized inventory movement aligned with ongoing manufacturing operations.

? Employment Benefit Expenses

Employee benefit expenses for the Financial Year 2024-25 stood at Rs.290.72 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs.121.96 Lakhs representing an increase of 138.37%. As company expanded its business in manufacturing, it hired more employees shifting from 65 employees in FY 202324 to 71 employees in FY 2024-25. This increased the salaries given and thus increasing the overall cost.

? Other Expenses

The Other Expenses for the Financial Year 2024-25 stood at Rs.246.14 lakhs whereas for the Financial Year 2023-24, it stood at Rs.211.48 Lakhs representing an increase of 16.39%, due to commodities hedging charges alongwith LC charges incurred due to increased imports in FY 2024-25.

? Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 2024-25 stood at Rs.89.00 Lakhs whereas in Financial Year 2023-24 it stood at Rs.73.11 Lakhs, which is calculated for the period and values, as per the utilization of assets for the Companys business.

? Finance Cost

Finance Cost for the Financial Year 2024-25 stood at Rs. 142.71 Lakhs whereas in Financial Year 2023-24 it stood at Rs.125.19 Lakhs representing an increase of 13.99%, due to increase in bank interest charged on the utilized cash credit limit during the year.

? Restated Profit before Tax

The restated profit before tax for the Financial Year 2024-25 stood at Rs.1,237.24 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs.674.16 Lakhs, representing an increase of 83.52%. It was improved due to the fact that as company established its holding in market FY 2023-24, it gained better negotiation power. Additionally, increase in capacity utilization by the company decreased its reheating cost, as machinery was working more efficiently. Thus, gaining better margins in profits.

? Restated Profit after Tax

The restated profit before tax for the Financial Year 2023-24 stood at Rs.923.60 Lakhs. Whereas for the Financial Year 2023-24, it stood at Rs.501.86 Lakhs, which is almost equivalent to 2.62% and 1.47% of the total income of the corresponding period respectively. In line with the profit before tax.

(Amount in lakhs)

Particulars	FY 2024-25	FY 2023-24
Revenue from Operations	35,168.95	33,862.12
PAT	923.60	501.86
PAT Margin	2.63%	1.48%

It had better margins in Financial Year 2024-25 due to the following reasons:

1. Better Negotiation Power: With a full year of manufacturing experience, the company developed greater expertise, strengthening its ability to negotiate effectively with suppliers. This resulted in procuring raw materials at comparatively lower costs, further enhancing profitability.

? Total Income

Total Income for the Financial Year 2023-24, stood at Rs. 33,923.17 Lakhs whereas in Financial Year 202223 it stood at Rs.6,748.73 Lakhs representing an increase of 402.66%. There is increase in income as compare to the last financial year mainly because of shift from trade centric business to manufacture centric business. They did forward integration with their product which changed their customer base from Aluminium manufacturers to cable conductor manufacturers as their stock in trade has now been converted to raw material.

? Revenue of operations

Net revenue from operations For the Financial Year 2023-24 stood at Rs.33,862.12 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 6,738.40 Lakhs representing an increase of 402.52%. Company has increased its revenue due to its venturing in manufacturing sector. This shifted its customer base, sales from the top two customers which are Customer A and Customer B in total is Rs. 19714.73 Lakhs which is 58.22% of the total revenue from operations. This indicates that change in customer base because of sale of different product has major impact in increase in revenue from operations.

? Other Income

Other Income for the Financial Year 2023-24 stood at Rs. 61.05 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 10.32 Lakhs representing an increase of 491.42%. This is mainly due to gain from sale of investment and availing cash discounts from our vendors.

? Total Expenses

Total Expenses for the Financial Year 2023-24 stood at Rs.33,249.00 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs.6729.11 Lakhs representing increase of 394.11 % generally in line with the increase in total turnover and other incomes.

? Cost of Material Consumed

Cost of material consumed for the Financial Year 2023-24 stood at Rs. 32,385.44 Lakhs. Whereas for the Financial year 2022-23, it stood as NIL. As in FY 2022-23 there was no manufacturing business for Jainik, hence there was no cost of material consumed.

? Cost of Good Sold

Cost of Good Sold for the Financial Year 2023-24 stood at Rs. 900.15 Lakhs. Whereas for the Financial year 2022-23, it stood at Rs. 6,592.76 Lakhs representing decrease of 86.35%. In FY 2023-24, it sold the remaining stock of trade, available with the company as on 1^st April, 2024 and shifted to manufacturing. Hence, it incurred lower cost of goods sold.

? Change in Inventory

Change in Inventory for the Financial Year 2023-24 stood at Rs. (568.32) Lakhs. Whereas for the Financial Year 2022-23, it stood as nil. As company started manufacturing aluminum wire rods, its inventory changed from stock in trade to stock of finished goods. Hence, change in business dynamics leads to the change in inventory. As stock of traded goods is included in cost of goods sold, there was no other inventory with the company in FY 2022-23.

? Employment Benefit Expenses

Employee benefit expenses for the Financial Year 2023-24 stood at Rs.121.96 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 0.57 Lakhs representing an increase of ^121.39 This was due to increase in number of employees and labour. Company has 65 full-time employees as on March 31,2024 which were 9 previously.

? Other Expenses

The Other Expenses for the Financial Year 2023-24 stood at Rs. 211.47 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 9.43 Lakhs representing an increase of 2143.56%, which is primarily due to enhanced rates and taxes, freight outwards, commission cost and other allied expenses. This is because of the shift in their revenue model which changed their customer base. This made them incur freight outwards of ^83.63 Lakhs which was not incurred in previous year. Similarly increase in revenue consecutively led to increase in tax and rates from Rs0.02 Lakhs to ^43.97 Lakhs. Along with repairs and maintenance and commission expenses, other expenses faced an increase of ^202.04 Lakhs.

? Depreciation and Amortization Expenses

The Depreciation and Amortization Expenses for the Financial Year 2023-24, stood at Rs.73.11 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 16.68 Lakhs, which is calculated for the period and values, as per the utilization of assets for the Companys business. Also increase of 338.38% is due to purchase of plant and machinery used in manufacturing.

? Finance Cost

Finance Cost for the Financial Year 2023-24, stood at Rs. 125.19 Lakhs whereas in Financial Year 202223 it stood at Rs. 109.69 Lakhs representing an increase of 14.13%, due to increase in interest to banks taken for short period of Rs. 500 Lakhs. Also, such change was not major as one would expect seeing the transition of the company because the business integration is majorly funded internally and from loans from directors and related corporates.

? Restated Profit before Tax

The restated profit before tax For the Financial Year 2023-24 stood at Rs. 674.17 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 19.60 Lakhs, representing an increase of 3340.47%, It is primarily because of the increase in scale of operations, increase in revenue.

? Restated Profit after Tax

The restated profit before tax For the Financial Year 2023-24 stood at Rs. 501.86 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 14.65 Lakhs, representing an increase of 3325.64%, in line with the increase in scale of operations, increase in revenue.

Rationale for increase in income and expenses:

CONCLUSION

1. Growth in Top Line: The companys revenue from operations increased due to expansion and vertical integration of the business line. From being trader of Aluminum scrap, now Company melt it and convert it into aluminium wire rods.

2. Increase in Customer base: Since the company has vertically integrated, its customer base shifted from the user of scrap material to the user of aluminium wire rods. This increased their customer base which led to increase in top line.

3. Commodity Rates (LME): Sale price and cost price of the Aluminium is derived from London Metal exchange, which fluctuates from the market forces such as demand and supply and other factors such as boom in automobile sector, fluctuation in energy prices such as coal and continuation of the Russo- Ukrainian war also exacerbated the fluctuation of LME aluminium prices.

More Detailed Reasons For Change in PAT Margin:

(Amount in lakhs)

Particulars	FY 2023-24	FY 2022-23
Revenue from Operations	33,862.12	6,738.40
PAT	501.86	14.66
PAT Margin	1.48%	0.22%

In FY 2023-24, the company undertook a strategic shift by transitioning to manufacturing, specifically focusing on Aluminum Wire Rod production. Manufacturing typically offers better operational efficiencies and higher margins compared to trading. This transition significantly boosted the companys financial performance:

• FY 2023-24: Revenue was increased drastically to Rs 33,862.12 lakhs, with a PAT of ^501.86 lakhs and a PAT margin of 1.48%.

1. Growth in Top Line: The companys revenue from operations increased due to expansion and vertical integration of the business line. From being trader of Aluminium scrap, now Company manufactured the aluminium wire rods.

2. Increase in Customer base: Since the company has vertically integrated, its customer base shifted from the user of scrap material to the user of aluminium wire rods. This increased their customer base which led to increase in top line.

Conclusion: The remarkable growth in both revenue and profitability in FY 2023-24 highlights the benefits of transitioning to manufacturing. The higher turnover, combined with the better profit margins inherent in the manufacturing sector, enabled us to achieve this significant improvement in our financial results.

This strategic evolution underscores our commitment to value creation and long-term growth by focusing on high-margin manufacturing operations over lower-margin trading activities.

The table below summarize our cash flows from our Restated Financial Information for the financial year ended on March 2025, 2024 and2023

(Rs in Lakhs)

Particulars	F.Y 2024-2025	F.Y 2023-2024	F.Y 20222023
Net cash (used in)/ generated from operating activities	(532.89)	672.34	343.83
Net cash (used in)/ generated from investing activities	(65.22)	(261.96)	(446.30)
Net cash (used in)/ generated from financing activities	830.33	(95.13)	110.57
Net increase/(decrease) in cash and cash equivalents	232.23	315.25	8.11
Cash and Cash Equivalents at the beginning of the period	335.24	19.98	11.87
Cash and Cash Equivalents at the end of the period	567.47	335.24	19.98

Net cash from/ (used in) Operating Activities

For fiscal 2025, to net cash flow generated from operating activities was ^(532.89) lakhs as compared to Profit Before Tax of Rs 1,237.24 lakhs. We had operating profit before working capital changes of Rs 1,422.75 lakhs primarily due to non-operating and non-cash expenses such as depreciation and amortization and finance cost of ^89.00 Lakhs and ^142.71 lakhs respectively as well as non-operating and non-cash incomes such as interest income ^46.06 lakhs.

For fiscal 2024, to net cash flow generated from operating activities was ^672.34 lakhs as compared to Profit Before Tax of ^674.16 lakhs. We had operating profit before working capital changes of ^866.72 lakhs primarily due to non-operating and non-cash expenses such as depreciation and amortization and finance cost of ^73.11 Lakhs and Rs 125.19 lakhs respectively as well as non-operating and non-cash incomes such as interest income Rs5.74 lakhs.

For fiscal 2023, to net cash flow generated from operating activities was at ^343.83 lakhs as compared to Profit Before Tax of Rs 19.60 lakhs. We had operating profit before working capital changes of Rs 136.97 lakhs primarily due to non-operating and non-cash expenses such as depreciation and amortization and finance cost of ^16.68 and 109.69 lakhs respectively as well as non-operating and non-cash incomes such as interest ad dividend income Rs9 lakhs.

Net cash from/ (used in) Investing Activities

For fiscal 2025, to net cash used in investing activities was Rs(65.22) lakhs due to investments made in fixed assets of Rs111.42 lakhs and interest and dividend income of ^46.20 lakhs.

For fiscal 2024, to net cash used in investing activities was ^(261.96) lakhs due to investments made in fixed assets of ^267.70 lakhs.

For fiscal 2023, net cash used investing activities was ^(446.30) lakhs due to investment in fixed assets of ^455.30 lakhs.

Net cash Flow from/ (used in) Financing Activities

For the fiscal 2025, net cash used in financing activities was ^830.33 lakhs due to proceeds from short-term borrowing of ^963.77 lakhs and from equity shares of H1.28 lakhs, repayment of long term borrowings of Rs2.01 lakhs and finance cost of Rs (142.71) lakhs.

For the fiscal 2024, net cash used in financing activities was Rs95.13 lakhs due to repayment of short-term borrowing of ^129.48 lakhs and finance cost of Rs (125.19) lakhs.

For fiscal 2023, net cash used in financing activities was ^110.57 lakhs due to decrease in short term borrowings and increase in long term liabilities of ^72.16 and H48.10 lakhs respectively along with finance cost of Rs (109.69) lakhs.

Please see "Financial Indebtedness" for a description of broad terms of our indebtedness on page 232 of this Red Herring Prospectus. The company has a record of servicing its debts and has consistently reduced its dependence on institutional finance, there are negligible chances of any default. In the event our lenders declare an event of default, such current and any future defaults could lead to acceleration of our obligations, termination of one or more of our financing agreements or force us to sell our assets, which may adversely affect our business, results of operations and financial condition.

We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements other than contingent liabilities as of March 31, 2025 as shown in table below:

(Rs in Lakhs)

Particulars	Amount
Goods and Services Tax	17.47
Income Tax Traces	0.02
Total	17.49

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 section titled Risk Factors beginning on page 29 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

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

Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and Management ‘s Discussion and Analysis of Financial Condition and Results of Operations on pages 29 and 218, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations

4. Income and Sales on account of major product/main activities

Income and sales of our Company on account of major activities derives from the business of selling Aluminum wire rods in FY 2023-24 and FY 2024-25. In previous financial years, income and sale of companies was from trading of scrap aluminium. This was due to change in their business model from trade centric to manufacturing centric.

5. 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 Companys future costs and revenues can be impacted by an increase in labour costs as the company newly started vertical integration, it may incur more labour cost to expand the business. Also, it will lead to setting of new machines and incurring further repair and maintenance of the old ones which may increase the cost to the company.

6. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation, Indian Government Policies, London metal exchange rates, foreign exchange rates and interest rates quoted by banks & others.

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

Increases in net sales is materially because Company has changed the segment from trading to manufacturing. Company has started the manufacturing of new product which impact the increase of net sales.

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

The Company is operating in Aluminium Sector. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 111 of this Red Herring Prospectus.

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

Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Red Herring Prospectus.

10. The extent to which the business is seasonal.

Our business is not seasonal in nature.

11. 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 section titled "Our Business" on page 120 of this Red Herring Prospectus.