Jay Bee Laminations Ltd Management Discussions

The following discussion and analysis of our financial condition and results of operations for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 209 of this Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI (ICDR) Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Red Herring Prospectus. You should also read the section titled "Risk Factors" beginning on page 27 of this Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-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 Jay Bee Laminations Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Statements" for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022 included in this Red Herring Prospectus beginning on page 209 of this Red Herring Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations, or prediction may be "Forward Looking Statements" 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 factors.

Business Overview

Established in 1988, Jay Bee Laminations Limited, currently manufactures and supplies range of products such as electrical laminations, slit coils, and assembled cores made of Cold Rolled Grain Oriented Silicon steel and Cold-Rolled Non-Grain-Oriented Steel for applications in transformers, UPS, and inverters, for end-use in power industry.

Our Companys manufacturing units are equipped with all in-house facilities for slitting, cutting, assembling, and testing of CRGO and CRNGO electrical steel cores spread across total area of 10,878 sq mt. We also have our in-house laboratory for raw material and finished goods sample testing and in-house tooling division for blade sharpening. Our production facilities emphasize on processing and manufacturing electrical steel cores to meet the quality standards of power and distribution transformers. Our current facilities are well equipped to serve customers manufacturing transformers up to 220 kV class. Additionally, we have used 83% of our capacity, as on March 31, 2024.

Presently, our Companys main focus is on supplying CRGO electrical steel cores solely to transformer manufacturers.

These materials necessitate a high level of expertise in manufacturing, handling, and processing due to their sensitivity to physical stresses and jerks, which is vital for ensuring the safety and quality of transformers. Adhering to strict quality requirements, all transformer core-related raw materials imported, purchased, and sold in India must conform to the standards set by the Bureau of Indian Standards (BIS).

Our clientele encompasses manufacturers producing Power and Distribution transformers in the range of 11kV to 220 kV class. The quality of these transformers relies significantly on the raw materials used in their manufacturing, with the core accounting for 25-30% of the transformers total cost depending on the size of the transformer. Additionally, the core plays a crucial role in reducing transmission and distribution (T&D) losses within the electricity supply infrastructure, highlighting its pivotal significance in the realm of power distribution.

Key Financial Performance

We utilize a set of financial indicators that our management reviews in evaluating the performance of our business. Our management believes that the presentation of these key performance indicators in this Red Herring Prospectus are important to understanding our performance from period to period and also have an impact on our results of operations. These key performance indicators may or may not be compatible with similarly titled metrics presented by others operating in our industry. These indicators are not intended to be a substitute for, or superior to, any measures of performance prepared in accordance with GAAP, and may not fully reflect our financial performance, liquidity, profitability, or cash flows. The following table sets forth our key financial and operational metrics as of or for the years indicated:

Key Performance Indicators of our Company

	For the Financial Years ended March 31
Key Financial Performance	2024	2023	2022
Revenue from Operations ( Lakhs)	30,290.97	24,666.47	14,125.12
Gross Profit ( Lakhs)	5,291.76	3,944.33	2,824.13
Gross Profit Margin (%)	17.47%	15.99%	19.99%
EBITDA ( Lakhs)	3,269.60	2,334.56	1,228.61
EBITDA Margin %	10.79%	9.46%	8.70%
PAT ( Lakhs)	1,935.27	1,360.00	595.17
PAT Margin %	6.39%	5.51%	4.21%
Net cash from operating activities ( Lakhs)	1,576.65	508.72	797.67
Net Worth ( Lakhs)	6,281.44	4,346.17	2,986.17
Total Debt ( Lakhs)	2,416.15	3,143.25	2,693.08
ROE %	36.42%	37.10%	21.76%
ROCE %	39.23%	34.55%	21.10%

As certified by M/s. A Y & Co., Chartered Accountants through their certificate dated Friday, August 16, 2024.

Explanation for the KPIs:

Sr. No.	KPI	Remark/Definition/Assumptions
1	Revenue from Operations	Revenue from Operations is used by the management to track the revenue profile of the business and in turn helps to assess the overall financial performance of the Company and volume of the business.
2	Gross Profit	The amount of money a company makes from its sales after subtracting the cost of goods sold (COGS).
3	Gross Profit Margin	A percentage that shows how much of each dollar of sales is gross profit. It is calculated by dividing gross profit by sales revenue and multiplying by 100.
4	EBITDA	EBITDA provides information regarding the operational efficiency of the business
5	EBITDA Margin	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
6	PAT	Profit after tax provides information regarding the overall profitability of the business
7	PAT Margin	PAT Margin (%) is an indicator of the overall profitability and financial performance of the business
8	Net cash from operating activities	The cash a company generates or spends through its core business operations, excluding investments and financing activities.
9	Net Worth	The difference between a companys total assets and total liabilities.
10	Total Debt	The sum of all outstanding borrowings a company has, including loans and bonds.
11	Return on Equity	Return on equity provides how efficiently our Company generates profits from shareholders funds
12	Return on Capital Employed	Return on capital employed provides how efficiently our Company generates earnings from the capital employed in the business

Description on the historic use of the KPIs by us to analyse, track or monitor our operational and/or financial performance in evaluating our business, we consider and use certain KPIs, as stated above, as a supplemental measure to review and assess our financial and operating performance.

The presentation of these KPIs is not intended to be considered in isolation or as a substitute for the Restated Financial Information. We use these KPIs to evaluate our financial and operating performance. These KPIs have limitations as analytical tools. Further, these KPIs may differ from the similar information used by other companies and hence their comparability may be limited. Therefore, these metrics should not be considered in isolation or construed as an alternative to GAAP measures of performance or as an indicator of our operating performance, liquidity, or results of operation. Although these KPIs are not a measure of performance calculated in accordance with applicable accounting standards, our management believes that it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies in our industry because it provides consistency and comparability with past financial performance, when taken collectively with financial measures prepared in accordance with GAAP. Investors are encouraged to review GAAP financial measures and to not rely on any single financial or operational metric to evaluate our business.

Significant Developments After March 31, 2024

In the opinion of the Board of Directors of our Company, since March 31, 2024, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.

Factors Affecting Our Results Of Operations

Our financial performance and results of operations are influenced by a number of important factors, some of which are beyond our control, including without limitation, intense global and domestic competition, general economic conditions, changes in conditions in the regional markets in which we operate, changes in costs of raw materials and supplies, COVID- 19-related effects on global and domestic economic conditions, and evolving government regulations and policies. Some of the more important factors are discussed below, as well as in the section titled "Risk Factors" on page 27 beginning of this Red Herring Prospectus.

Our Companys future results of operations could be affected potentially by the following factors:

Revenue generated from end use industry

Demand for our products is directly related to the production and sales of our end user industry.

Set out below are the revenues generated from various end-use industries and as a percentage of our revenue from sale of products:

	Restated Financial Information for the Financial Year Ended March 31
	2024		2023		2022
Sectors	Amount ( in Lakhs)	% of Total Revenue	Amount ( in Lakhs)	% of Total Revenue	Amount ( in Lakhs)	% of Total Revenue
Transformers	29,642	97.92%	24,194	98.12%	13,896	98.38%
Inverters/ UPS	32	0.11%	17	0.07%	0	0.00%
Others (Scrap etc)	598	1.98%	447	1.81%	229	1.62%
Total	30,272	100.00%	24,658	100.00%	14,125	100.00%

The production and sales of our end user industry for which we supply products are affected by a variety of other factors that are beyond our control, including changes in government policies, changes in consumer demand, product mix shifts favouring economic conditions, demographic trends, disruptions in these industries supply chain, labour relations, regulatory requirements, credit availability and cost of credit and general economic and industry conditions Currency fluctuations, government procurement schemes for customers products, government payments and policies.

It is difficult to forecast events which affect the profitability and liquidity of our customers or the success or sustainability of any strategies undertaken by any of our customers in response to ongoing economic or industry trends. Reduced demand in the industries we currently supply to, continued uncertainty and other unexpected fluctuations or change in regulations, customs, taxes or other barriers or restrictions adversely affecting the market, particularly those impacting our customers could have a material adverse impact on our business, results of operations, cash flows and financial condition.

Long-standing client relationships

We are dependent on certain of our key customers and the details of contribution of our top five and top 10 customers to our total revenue from operations Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, have been set out below.

	Restated Financial Information for the Financial Year Ended March 31
Particulars of Suppliers	2024		2023		2022
	Amount ( in Lakhs)	% of total Purchase	Amount ( in Lakhs)	% of total Purchase	Amount ( in Lakhs)	% of total Purchase
Top 5	19,572.74	75.34%	14,007.45	74.19%	9,014.93	63.92%
Top 10	23,062.39	88.77%	17,884.92	94.73%	11,847.72	84.01%

Additionally, certain customers have high and stringent standards for product quantity and quality as well as delivery schedules. Any failure to meet our customers expectations and specifications could result in the cancellation or non-renewal of purchase orders. There are also a number of factors, other than our performance that could cause the loss of a customer. Customers may demand, among others, price reductions, setoff any payment obligations, or replace their existing products with alternative products, any of which may have an adverse effect on our business, results of operations and financial condition.

Accordingly, we face the risk that our customers might not place any order or may even cancel existing orders or make change in their policies which may result in reduced quantities being manufactured by us for our customers. Cancellations, reductions or instructions to delay production or dispatch (thereby delaying delivery of products manufactured by us) by a significant customer could adversely affect our results of operations by reducing our sales volume, as well as by possibly causing delay in our customers paying us for the order placed for purchasing the inventory with us which we would have manufactured for them. If we are not able to find customers or purchasers for the surplus or excess capacity, we would be forced to incur a loss.

Further, in the event our major customers face any form of adverse effect due to exigent circumstances, resulting in a sustained decline in the demand for their products, could prompt them to reduce their production volumes, in turn affecting their demand for our products. The volume and timing of sales to our major customers may also adversely vary due to variation in:

(i) delay in or cancellation;

(ii) demand or requirements;

(iii) manufacturing strategy; and

(iv) growth strategy.

As we do not have firm commitment in the form of long-term supply agreements with our customers, there is no commitment on the part of our major customers to continue to place new purchase orders with us and as a result, our cash flow and consequent revenue may fluctuate significantly from time to time. Further, we may not be able to find any other customers for the surplus or excess capacity, in which case we may be forced to incur a loss.

In addition, we make significant decisions, including determining the levels of business that we will seek and accept, production schedules and other resource requirements, based on our estimates of customer orders. We make Raw material purchase plan and capacity utilization and manpower planning based on orders projections for 1-4 months. The changes in demand for their products (which are in turn manufactured by us) could reduce our ability to estimate accurately future customer requirements, make it difficult to schedule production and limit our ability to maximize utilization of our manufacturing capacity.

Additional factors that could significantly harm our customers as well as us, include:

• action undertaken by the government to tax our business, or that of our customers;

• recession in countries in which our key customers operate their businesses;

• slowdown and reduced spending in the industries in which our customers operate;

• our customers inability to effectively manage their operations;

• a change in their management which may results in us not being a preferred supplier to them; and

• changes in laws affecting our customers to operate profitably.

Raw Material Costs, Operating Costs and Operational Efficiencies

Our business, financial condition, results of operations and prospects are significantly impacted by the prices of raw materials purchased by us. Our cost of raw materials consumed and change in Finished Goods and work in progress, Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, was 24,999.22 Lakhs, 20,722.14 Lakhs, and 11,300.99 Lakhs, respectively, which represented 82.53%, 84.01%, and 80.01% of our revenue from operations for the respective Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022. Our financial condition and results of operations are significantly impacted by the availability and costs of raw materials. Raw material pricing can be volatile due to a number of factors beyond our control, including global demand and supply, general economic and political conditions, transportation and labour costs, labour unrest, natural disasters, competition, import duties, fuel prices and availability, power tariffs and currency exchange rates. This volatility in commodity prices can significantly affect our raw material costs. Further, our contracts with our customers generally provide for pass through of any variation in the raw material costs. However, our cash flows may still be adversely affected because of any gap in time between the date of procurement of those primary raw materials and date on which we can reset the product prices for our customers, to account for the increase in the prices of such raw materials.

Our ability to manage our operating costs and operations efficiencies is critical to maintaining our competitiveness and profitability. Our profitability is partially dependent on our ability to increase our productivity and reduce our operating expenses.

Availability of funds for capital expenditure

We continuously invest in machinery and equipment to expand our machining capacity to seize opportunities for growth in the market. The actual amount and timing of our future capital expenditure may deviate from initial estimates due to various factors. These factors include unforeseen delays or cost overruns, unanticipated expenses, regulatory changes, economic conditions, engineering design changes, technological advancements, and emerging market developments.

Long Term relation with Suppliers

Our results of operations depend upon our ability to obtain quality raw materials required for our products and other inputs regularly, at low prices and favourable terms. For timely supply of raw materials, we have to depend on certain third-party suppliers with whom we do not have any exclusive arrangements. Our inability to procure these raw materials on terms more favourable, or at all, may constrain our raw material supply, resulting in an adverse effect on our business, financial condition, and results of operations. As a result, the success of our business is significantly dependent on maintaining good relationships with our raw material suppliers. Absence of long-term supply contracts subject us to risks such as price volatility caused by various factors such as commodity market fluctuations, currency fluctuations, production and transportation cost, changes in domestic as well as international government policies, and regulatory and trade sanctions. In addition, we import certain raw materials for CRGO steel coils and CRNGO steel coils. We are also susceptible to the risks arising out of raw material price fluctuations as well as import duties, which could result in a decline in our operating margins.

Further, our operations and performance are directly related to and affected by the cost of various inputs including raw materials such as CRGO steel coils and CRNGO steel coils, power, and fuel, packing material, and freight and forwarding costs. Besides CRGO and CRNGO steel, we use packing material such as wood, polythene, plastic straps, and metal straps. Mild steel (MS) prices may affect the overall cost of assembled cores. If we cannot fully offset increases in raw material prices with increases in the prices for our products, we will experience lower margins, which will have a material adverse effect on our results of operations, financial condition, and cash flows. Similarly, we also face a risk of facing loss on inventory if raw material prices decrease thereby affecting our operating margins. In the absence of such contracts, we are also exposed to the risk of unavailability of certain raw materials in desired quantities and qualities, in a timely manner or at all.

In the last Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, other than the non-availability of raw material on account of COVID-19 from certain vendors who were unable to transport raw materials to us, we have not faced any issues with our suppliers. We have faced shortage of raw material due to shipping and logistics issues.

The table below sets forth share in our cost of raw materials from our top 5 and top 10 suppliers in the periods/years indicated:

	Restated Financial Information for the Financial Year Ended March 31
	2024		2023		2022
Particulars of Suppliers	Amount ( in Lakhs)	% of total Purchase	Amount ( in Lakhs)	% of total Purchase	Amount ( in Lakhs)	% of total Purchase
Top 5	19,572.74	75.34%	14,007.45	74.19%	9,014.93	63.92%
Top 10	23,062.39	88.77%	17,884.92	94.73%	11,847.72	84.01%

The table below sets forth our cost of raw materials and change in stock of finished goods and work in progress as a percentage of our revenue from operations in the periods/years indicated:

	Restated Financial Information for the Financial Year Ended March 31
	2024		2023		2022
Particulars of Customers	Amount ( in Lakhs)	% of Revenue from operations	Amount ( in Lakhs)	% of Revenue from operations	Amount ( in Lakhs)	% of Revenue from operations
Cost of raw materials and change in stock of finished goods and work in progress	24,999.21	82.53%	20,722.14	84.01%	11,300.99	80.01%

There can be no assurance that a particular supplier will continue to supply us with raw materials in the future. Further, we cannot assure you that we will be able to enter into new or renew our existing arrangements with suppliers on terms acceptable to us, which could have an adverse effect on our ability to source raw materials in a commercially viable and timely manner, if at all, which may impact our business and profitability.

In addition, as we generally have short-term arrangements for supply of our products to our business associates, non- availability of required raw materials or any other item of production in desired quantity and quality at the appropriate time, it may impact the production and sale of our products, which may consequently have an adverse effect on our business and results of operations.

Dependency on third-party transportation providers

Our success depends on the supply of various raw materials required for our manufacturing facilities and transport of our finished products from our manufacturing facilities to our clients, which are subject to various uncertainties and risks. We depend on various forms of transportation to either receive raw materials for our manufacturing purposes or to deliver the products to our clients, including for certain export sales. For these purposes, we typically rely on third-party transportation and logistics providers. We do not enter into agreements with transportation providers for the delivery of our products and are therefore dependent on transportation and logistics companies that we engage with. Although we have not encountered any significant disruption to the supply and transportation of raw materials and products in the past, the operating restrictions/ lockdown consequent to the outbreak of the COVID-19 pandemic temporarily affected our ability to procure raw materials and supply and transport of our finished products in the first quarter of Fiscal 2021. Any transport strikes and strikes and blockages on national highways such as farmers strikes can affect our transport of raw material and finished goods. There can be no assurance that any such disruption will not occur in the future as a result of these factors and that such disruptions will not be material.

The disruption of transportation services due to natural factors such as weather conditions particularly during monsoon or flood seasons, or man-made factors such as strikes, accidents, or other inadequacies in the transportation infrastructure, or any other factor that could impair the ability of our suppliers to deliver raw materials to us and our ability to deliver our products to our business associates and their ability to deliver products to the end retailer in a timely manner, which may adversely affect the sale of our glass products. Such raw materials and our products may get damaged, deteriorated, due to improper handling, negligence, transport strike or accidents, or any other force majeure events which may not be within our control. Further, the cost of our goods carried by such third-party transporters is typically much higher than the consideration paid for transportation, due to which it may be difficult for us to recover compensation for damaged, delayed, or lost goods. Additionally, if we lose one or more of our third-party transportation providers, there can be no assurance that we will be able to find new or alternative third-party transportation providers at all, or at terms as favourable as those which we have been in force with our current third-party transportation providers.

Further, our third-party transportation providers may not carry adequate insurance coverage and therefore, any losses that may arise during the transportation process may have to be claimed under our insurance policy, or marine insurance policy. There can be no assurance that we will receive compensation for any such claims in full amount in a timely manner or at all, and consequently, any such loss may adversely affect our business, financial condition, and results of operations. In addition, transportation costs have been steadily increasing. Any significant disruption in the distribution network could have an impact on our business and the results of operations.

Restrictions in import of raw materials

We currently import CRGO steel and CRNGO steel from China, Poland, USA, UAE, Japan, Germany, Czech Republic to manufacture our electrical steel products. Raw material imports are regulated by certain specific laws and regulations that permit concerned authorities to stop any import if it is deemed that the products proposed to be imported may cause major accidents or similar adverse incidents. While raw materials we import from foreign countries are not restricted, we cannot assure you that such regulations will not be made applicable to us, or that such regulations will not evolve into more stringent regulations, which would place onerous requirements on us and consequently restrict our ability to import raw materials.

In the event we are unable to import these materials, there can be no assurance that we will be successful in identifying alternate suppliers for raw materials or we will be able to source the raw materials at favourable terms in a timely manner or at all. Further, the supplier mills cannot supply to India unless they are authorized with BIS license. In an event where mills license is not renewed or deferred or cancelled, we are unable to procure raw material.

Fluctuation in Foreign Exchange

Since our imported raw material cost is not substantial compared to our overall cost of raw material, any foreign currency fluctuation in the ordinary course will not have a material impact on the cost of raw materials for us.

A small portion of our total revenues is denominated in currencies other than Indian Rupees. The table below sets forth details of our export sales in the periods indicated:

	Restated Financial Information for the Financial Year Ended March 31
	2024		2023		2022
Particulars	Amount ( in Lakhs)	% of Revenue from operations	Amount ( in Lakhs)	% of Revenue from operations	Amount ( in Lakhs)	% of Revenue from operations
Exports (Excluding SEZ Sales)	4,041.77	13.34%	3,461.90	14.03%	2,038.84	14.43%

Further, we also import certain equipment for our machinery. As on date, we have not undertaken any hedging transactions. As there is no hedging transaction, 100% Import Outstanding can be considered as unhedged. As on March 31, 2024, the Import Trade Payable was Nil. In addition, the policies of the RBI may also change from time to time, which may limit our ability to effectively hedge our foreign currency exposures and may have an effect on our results of operations and cash flows.

Government Regulations and Policies

Government regulations and policies in India can affect the demand of our products.

The production and sales of our end user industry for which we supply products are affected by a variety of other factors that are beyond our control, including changes in government policies, changes in consumer demand, product mix shifts favouring economic conditions, demographic trends, disruptions in these industries supply chain, labour relations, regulatory requirements, credit availability and cost of credit and general economic and industry conditions Currency fluctuations, government procurement schemes for customers products, government payments and policies.

Further, in recent years, the Government of India has taken measures to control inflation, which included tightening the monetary policy by raising interest rates. As such, any increase in interest rates may have an adverse effect on our business, results of operations, cash flows, and financial condition.

Similarly, changes in laws may require additional compliances and/or result in us incurring additional expenditure. For instance, the Government of India has notified four labour codes which are yet to come into force as of the date of this Red Herring Prospectus, namely, (i) the Code on Wages, 2019, (ii) the Industrial Relations Code, 2020; (iii) the Code on Social Security, 2020; and (iv) the Occupational Safety, Health, and Working Conditions Code, 2020. Such codes will replace the existing legal framework governing rights of workers and labour relations. Once these codes are in force, we may be required to incur additional expenditure to ensure compliance with them. We may incur increased costs and other burdens relating to compliance with such new requirements, which may also require significant management time and other resources, and any failure to comply may adversely affect our business, results of operations, and prospects. Uncertainty in the applicability, interpretation, or implementation of any amendment to, or change in, governing law, regulation or policy, including by reason of an absence, or a limited body, of administrative or judicial precedent, may be time consuming as well as costly for us to resolve and may impact the viability of our current businesses or restrict our ability to grow our businesses in the future.

Our manufacturing facilities

As of the date of this Red Herring Prospectus, we currently operate two manufacturing facilities located at Noida & Greater Noida, with commercial production of CRGO & CRNGO steel cores with applications in transformers, UPS & inverters.

Any disruption in our manufacturing operations involving the shutdown of our plant in any of our manufacturing facilities resulting from any factors beyond our control, including socio-economic, regulatory, policy or political developments, force majeure, natural calamities, or civil disruption, could result in a material adverse impact on our business operations and financial performance, particularly due to the long period of time required for rebuilding to resume production. Further, there can be no assurance that equipment in our manufacturing facilities will not malfunction, resulting in discontinuation of production. Any malfunction or shutdown of any of the plant would adversely impact production and could result in us incurring significant losses from shutdown of operations, capital expenditure to replace any malfunctioning furnace or other equipment, and thereby materially and adversely affecting our business, results of operations, financial condition, and cash flows.

The table below provides our actual production and capacity utilization for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022:

	For the Fiscal Years ended March 31
	2024		2023		2022
Particulars	Actual Production (Metric Tons per annum)	Capacity Utilization (%) *	Actual Production (Metric Tons per annum)	Capacity Utilization (%) *	Actual Production (Metric Tons per annum)	Capacity Utilization (%) *
Unit I	5,594	85.00%	4,491	68.00%	3,049	46.00%
Unit II	3,795	80.00%	2,917	61.00%	2,642	56.00%
Total Combined	9,389	83.00%	7,408	65.00%	5,691	51.00%

Our business is therefore dependent on our ability to ensure continued operations and production at optimal levels, which may be impacted by various operating risks, including industrial accidents, severe weather conditions, natural disasters, workforce productivity, regulatory developments and compliance, adequate and timely supply of raw materials, management of continuous operations, quality of products manufactured. Any significant malfunction or breakdown of our equipment may also entail significant repair and maintenance costs and cause delays in our operations. Further, we depend on third party suppliers of raw materials as well as equipment and services required for continuing operations. Our inability to effectively rectify any disruption, in a timely manner and at an acceptable cost, could lead to delays in the entire production cycle and an inability to comply with our clients requirements, thereby adversely impacting our business operations and future financial performance.

Significant Accounting Policies

Significant Accounting Policy And Notes To The Restated Financial Statements

A. Background

The Company was originally incorporated in 1988 as a Private Limited Company in the name of "Jay Bee Laminations Private Limited domiciled in India under the provisions of the Companies Act, 1956 and now governed by Provisions of Companies Act 2013. Subsequently, the company was converted from a Private Limited Company to Public Limited Company and the name of the company was changed to "Jay Bee Laminations Limited" having Company Incorporation

No. (CIN) U22222DL1988PLC031038. It is engaged in manufacturing of Cold Rolled Grain Oriented (CRGO) and Cold Rolled Non-Grain Oriented (CRNGO) Electrical Steel Cores.

B. Statement Of Significant Accounting Policies

1. Basis Of Preparation Of Financial Satements

The Restated Statement of Assets and Liabilities of the Company for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, and the Restated Statement of Profit and Loss and Restated Statements of Cash Flows for Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, and the annexure thereto (collectively, the "Restated Financial Statements" or "Restated Summary Statements") have been extracted by the management from the

Audited Financial Statements of the Company for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022.

The financial statements are prepared and presented under the historical cost convention and evaluated on a going-concern basis using the accrual system of accounting in accordance with the accounting principles generally accepted in India (Indian GAAP) and the requirements of the Companies Act, including the Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2014 as per section 133 of the Companies Act, 2013.

1. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the managements best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring material adjustment to the carrying amounts of assets or liabilities in future periods.

2. Property, Plant and Equipment and Depreciation

Property, Plant and Equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly attributable to the acquisition /construction are included in the cost of fixed assets. Adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

The company has adopted cost model for all class of items of Property, Plant and Equipment. In case of new projects / expansion of existing projects, expenditure incurred during construction / preoperative period including interest and finance charge on specific / general-purpose loans, prior to commencement of commercial production are capitalized. The same are allocated to the respective on completion of construction / erection of the capital project / fixed assets. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future economic benefits from the existing asset beyond its previously assessed standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection / installation are stated in the Balance Sheet as "Capital Work in Progress."

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal or external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

3. Foreign currency Transactions: Conversion

Foreign currency monetary items are reported using the closing rate.

Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

Exchange Differences

Exchange differences arising on the settlement or reporting of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous Standalone financial statement, are recognized as income or expense in the Statement of Profit and Loss.

4. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments. On disposal of an investment, the difference between it carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

5. Inventories

As per (AS) 2 the inventories are physically verified at regular intervals by the management. Raw material inventories are valued at the lower of cost and net realizable value.

Finished goods, Stock-in-trade and Work-in-progress are valued at lower of cost and net realizable value. Cost of inventories comprises of cost, of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing to their respective present location and condition.

Consumable stores and spares are valued at the lower of cost and net realizable value, as estimated by the management. Obsolete, defective, unserviceable, and silo / non-moving stocks are provided for.

6. Revenue Recognition

Revenue from the operations is recognized on generally accepted accounting principal and when it is earned and no significant uncertainty exists as to its ultimate collection and includes taxes, wherever applicable.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The capital gains on sale of investments if any are recognized on completion of transaction. No notional profit/loss are recognized on such investments. Interest income is recognized on time proportion basis when it is accrued and due for payment.

7. Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

8. Employee Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

Long Term Employee benefits (gratuity) are recognized and accounted in the books of account based on Valuation report of Actuary.

9. Taxes on Income

Income tax expenses for the year comprises of current tax and deferred tax. Current tax provision is determined on the basis of taxable income computed as per the provisions of the Income Tax Act. Deferred tax is recognized for all timing differences that are capable of reversal in one or more subsequent periods subject to conditions of prudence and by applying tax rates that have been substantively enacted by the balance sheet date.

10. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events, and it is probable that there will be an outflow of resources.

Conversion

Monetary assets and liabilities dominated in foreign currency are translated into rupees at exchange rate prevailing on the date of Balance Sheet.

Exchange Difference

Exchange differences in respect of borrowing costs are adjusted with inventories.

B. Notes To The Restated Financial Statements

1. Non-Adjustment Items:

No Audit qualifications for the respective periods which require any corrective adjustment in these Restated Financial Statements of the Company have been pointed out during the restated period.

2. Material Regrouping

3. Appropriate adjustments have been made in the restated summary statements of Assets and Liabilities, Profits and Losses and Cash flows wherever required by reclassification of the corresponding items of income expenses assets and liabilities in order to bring them in line with the requirements of the SEBI Regulations.

4. Material Adjustments In Restated Profit & Loss Account

	For the Financial Year ended March 31
Particulars	2024 ( in Lakhs)	2023 ( in Lakhs)	2022 ( in Lakhs)
Profit After Tax as per Books of Accounts	1,935.52	1,296.70	579.21
Adjustment for Gratuity Provision	111.31	(12.57)	(10.13)
Adjustment for provision of Depreciation	0.53	-	-
Adjustment for provision of Income Tax	(79.85)	72.71	-
Adjustment for provision of Deferred Tax	(32.25)	3.16	26.09
Total Adjustments	(0.25)	63.31	115.96
Net Profit before Tax as per Restated Accounts	1,935.27	1,360.00	595.17

5. Payable To Micro, Small And Medium Enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro and Small Enterprises.

Based on the information available with the Company in respect of MSME (as defined in the Micro, Small and Medium Enterprises Development Act, 2006) and as confirmed to us there are no delays in payment of dues to such enterprise during the year.

The identification of Micro, Small and Medium Enterprises Suppliers as defined under "The Micro, Small and Medium Enterprises Development Act, 2006" is based on the information available with the management. As certified by the management, the amounts overdue as for Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, to Micro, Small and Medium Enterprises on account of principal amount together with interest, aggregate to Nil.

I. Other figures of the previous years have been regrouped / reclassified and / or rearranged wherever necessary.

II. The balance of Sundry Creditors, Sundry Debtors, Loans Advances, Unsecured loans, and Current Liabilities are subject to confirmation and reconciliation.

6. Earnings In Foreign Currency

	For the Financial Year ended March 31
Particulars	2024 ( in Lakhs)	2023 ( in Lakhs)	2022 ( in Lakhs)
Exports (FOB Value)	4,041.77	3,461.90	2,038.84
Exports Realization	4,057.64	3,153.48	1,812.50

7. Expenditure In Foreign Currency

	For the Financial Year ended March 31
Particulars	2024 ( in Lakhs)	2023 ( in Lakhs)	2022 ( in Lakhs)
In respect of Business Promotion, Repair & Maintenance & Profession Consultancy & Other Misce Expenses	3.87	5.94	2.76
-In respect of Foreign Travelling	--	25.66	2.25
-Container Freight	--	--	--
Total	3.87	31.60	5.01

8. Managerial Remuneration

	For the Financial Year ended March 31
Particulars	2024 ( in Lakhs)	2023 ( in Lakhs)	2022 ( in Lakhs)
Remuneration to Directors	177.00	162.00	108.00
Total	177.00	162.00	108.00

9. Remuneration To Auditors

	For the Financial Year ended March 31
Particulars	2024 ( in Lakhs)	2023 ( in Lakhs)	2022 ( in Lakhs)
Auditors remuneration	5.00	4.88	4.88
Total	5.00	4.88	4.88

10. Trade Payable Ageing Summary

The trade payables ageing schedule for the period March 31, 2024, is as follows:

Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
MSME	36.63	-	-	-	36.63
Others	3,944.62	-	-	-	3,944.62
Disputed dues MSME	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-
Total	3,981.25	-	-	-	3,981.25

The trade payables ageing schedule for the period March 31, 2023, is as follows:

Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
MSME	-	-	-	-	-
Others	2,973.53	-	-	-	2,973.53
Disputed dues MSME	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-
Total	2,973.53	-	-	-	2,973.53

The trade payables ageing schedule for the period March 31, 2022, is as follows:

Particulars	Less than 1 year	1-2 years	2-3 years	More than 3 years	Total
MSME	-	-	-	-	-
Others	3,536.81	-	-	-	3,536.81
Disputed dues MSME	-	-	-	-	-
Disputed dues - Others	-	-	-	-	-
Total	3,536.81	-	-	-	3,536.81

11. Trade Receivables

The trade receivables ageing schedule for the period March 31, 2024, is as follows:

Particulars	Less than 6 months	6 Months 1 year	1-2 years	2-3 years	More than 3 years	Total
Undisputed
Trade receivables considered good	4,835.13	171.99	0.09	1.07	-	5,008.28
Trade receivables doubtful debt	-	-	-	-	-	-
Disputed
Trade receivables considered good	-	-	-	-	411.38	411.38
Trade receivables doubtful debt	-	-	-	-	-	-
Total	4,835.13	171.99	0.09	1.07	411.38	5,419.66

The trade receivables ageing schedule for the period March 31, 2023, is as follows:

Particulars	Less than 6 months	6 Months 1 year	1-2 years	2-3 years	More than 3 years	Total
Undisputed
Trade receivables considered good	4,634.00	0.07	139.35	335.09	89.51	5,198.02
Trade receivables doubtful debt	-	-	-	-	-	-
Disputed
Trade receivables considered good	-	-	-	-	-	-
Trade receivables doubtful debt	-	-	-	-	-	-
Total	4,634.00	0.07	139.35	335.09	89.51	5198.02

The trade receivables ageing schedule for the period March 31, 2022, is as follows:

Particulars	Less than 6 months	6 Months 1 year	1-2 years	2-3 years	More than 3 years	Total
Undisputed
Trade receivables considered good	2,121.98	160.06	384.12	39.81	38.42	2,744.39
Trade receivables doubtful debt	-	-	-	-	-	-
Disputed
Trade receivables considered good	-	-	-	-	-	-
Trade receivables doubtful debt	-	-	-	-	-	-
Total	2,121.98	160.06	384.12	39.81	38.42	2,744.39

Components Of Income And Expenditure

Total Revenue

Our total revenue is divided into revenue from operations and other operating income. Revenue from operations consists of revenue generated from the sale of CRGO and CRNGO Electrical Steel Cores.,

Our other operating income consists of Job Work.

Total Expenses

Our total expenses comprise of purchases of Stock-in-trade, cost of materials consumed, changes in inventories of work- in-progress and finished goods, employee benefits expenses, finance costs, depreciation and amortization expenses, and other expenses.

Cost of Material Consumed

Cost of Material Consumed includes opening stock of raw material at the beginning of the year add: material purchases, wages, factory expenses, power & fuel expenses, carriage inward expenses, water charges, import duty and expenses and less: closing stock of raw material at the end of the year.

Changes in Inventories

Changes in Inventories comprise of opening stock of finished goods, work-in-progress, Scrap and packing material at the beginning of the year less closing stock of finished goods, work-in-progress, Scrap and packing material at the end of the year.

Employee benefits expenses

Employee benefit expenses comprises of (i) Salaries and Wages (ii) Contribution to Provident Fund and ESIC, (iii) Staff & Labor Welfare expenses and (iv) Gratuity expenses (v) Directors Remuneration and (vi) Other Allowances.

Finance costs

Finance cost includes interest on borrowings from Banks, non-banking financial company, others, and interest, bank charges, and bank guarantee charges.

Depreciation and Amortization Expenses

Depreciation and amortization expenses primarily include depreciation expenses on our tangible assets, amortization of intangible assets and depreciation of right of use assets.

Other Expenses

Other expenses majorty comprise of freight outward, discount allowed, Fuel & Lubricant, Professional and Legal fees, Repairs and Maintenance, Security Service Charges, Miscellaneous Expenses, Rates and Taxes, Office Rent, Travelling expenses, Brokerage and Commission, CSR expenses, etc.

Results Of Operations

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022:

	For the Financial Year ended March 31,
	2024		2023		2022
Particulars	in Lakhs	% of Total Revenue	in Lakhs	% of Total Revenue	in Lakhs	% of Total Revenue
Revenue:
Revenue from Operations	30,290.97	99.81%	24,666.47	99.67%	14,125.12	99.70%
Other income	58.59	0.19%	82.39	0.33%	42.27	0.30%
Total revenue	30,349.56	100.00%	24,748.86	100.00%	14,167.39	100.00%
Expenses:
Cost of materials consumed & Manufacturing Expenses	25,640.91	84.49%	20,577.52	83.15%	11,306.40	79.81%
Purchase of stock- in-trade	0.00	0.00%	-	-	-	-
Changes in inventories of WIP, Finished goods and Stock- in -Trade	(641.69)	(2.11%)	144.61	0.58%	(5.41)	(0.04%)
Employees Benefit Expenses	1,013.35	3.34%	789.02	3.19%	610.02	4.31%
Finance Costs	595.48	1.96%	501.29	2.03%	420.11	2.97%
Depreciation and Amortization	127.22	0.42%	95.18	0.38%	106.03	0.75%
Other expenses	1,006.97	3.32%	809.24	3.27%	971.62	6.86%
Total Expenses	27,742.23	91.41%	22,916.87	92.60%	13,408.78	94.65%
Exceptional Items	(1.84)	(0.01%)	(11.52)	(0.05%)	(13.88)	(0.10%)
Profit before tax	2,607.33	8.59%	1,820.47	7.36%	744.74	5.26%
Tax expense:
Current tax	685.39	2.26%	463.40	1.87%	175.40	1.24%
Deferred Tax	(15.17)	(0.05%)	(2.92)	(0.01%)	(25.84)	(0.18%)
Income tax for Earlier Years	-	-	-		-
Profit/ (Loss) for the period from continuing operations	1,935.27	6.38%	1,360.00	5.50%	595.17	4.20%

Comparison Of Financial Year Ended 2024 To Financial Year Ended 2023

Income

Total Revenue: Our total revenue increased by 22.63% to 30,349.561 Lakhs for the Financial Year ended 2024 from 24,748.86 Lakhs for the Financial Year ended 2023. This increase was due to an increase in revenue from operations.

Revenue from Operations

Our revenue from operations was increased by 22.81% to 30,290.97 Lakhs for the Financial Year ended 2024 from 24,748.86 Lakhs for the Financial Year ended 2023 due to increase in revenue in the year Financial Year ended 2024 by 5,600.70 lakhs, primarily due to an increase in domestic sale of products to 26,053.12 Lakhs in Financial Year ended 2024 from 20,328.91 in Financial Year ended 2023, and increase in export sales of products to 4,218.83 Lakhs in Financial Year ended 2024 from 4,329.04 in Financial Year ended 2023.

The growth has been majorly observed due to-

1) Increase in domestic sale of products to 26,053.12 Lakhs in Financial Year ended 2024 from 20,328.91 in Financial Year ended 2023, which was mainly attributable to the growth of our business.

2) There has been significant growth in revenue contribution to end use industry of Transformers, UPS and Inverters.

3) Details of increase of production from 7,408 Metric Tons p.a. to 9,389 Metric Tons p.a.

4) Our region wise sale increase, especially in Eastern region to 2,286 Lakhs in Financial Year ended 2024 from 847 Lakhs Financial Year ended 2023, Northern Region to 14,415 Lakhs in Financial Year ended 2024 to 9,116 Lakhs in Financial Year ended 2023, and Southern region from 4,943 lakhs in Financial Year ended 2023 to 5,406 Lakhs in Financial Year ended 2024.

Other Income

Other income decreased by 40.62% to 58.59 Lakhs in Financial Year ended 2024 from 82.39 Lakhs in Financial Year ended 2023, primarily due to decrease in foreign exchange fluctuation to 14.07 Lakhs for the Financial Year ended 2024 from 48.83 Lakhs in Financial Year ended 2023.

Expenditure

Total Expenses: Our total expenses increase by 21.05% to 27,742.23 Lakhs for the Financial Year ended 2024 from 22,916.87 Lakhs for the Financial Year ended 2023 due to the factors described below:

Cost of materials consumed

Cost of Material Consumed increased by 24.61% to 25,640.91 Lakhs for the Financial Year ended 2024 from 20,577.52 Lakhs for Financial Year ended 2023 due to increase in material purchase by 6,6679.10 Lakhs.

Changes in Inventories

Changes in Inventories increased by (543.67%) to (641.59) Lakhs for the Financial Year ended 2024 from 144.61 Lakhs in Financial Year ended 2023.

Employee Benefit Expenses

Our employee benefits expenses increased by 28.43% to 1,013.35 Lakhs in Financial Year ended 2024 from 789.02 Lakhs in Financial Year ended 2023, primarily due to an increase mainly in the salaries, wages, allowances, and incentives to 682.85 Lakhs in Financial Year ended 2024 from 540.45 Lakhs in Financial Year ended 2023.

Finance Costs

The Financial costs increased by 18.79% to 595.48 Lakhs in Financial Year ended 2024 from 501.29 Lakhs in Financial Year ended 2023. This increase was mainly due to interest on borrowings from banks by 223.18 Lakhs.

Depreciation and Amortization Expenses

The Depreciation and Amortization expenses increased by 33.77% to 127.22 Lakhs in Financial Year ended 2024 from 95.18 Lakhs in Financial Year ended 2023.

Other Expenses

The Other expenses decreased by 24.43% to 1,006.97 Lakhs in Financial Year ended 2024 from 809.24 Lakhs in Financial Year ended 2023, primarily due to:

• an increase in packing expenses to 164.30 Lakhs in Financial Year ended 2024 from 119.56 Lakhs in Financial Year ended 2023;

• an increase in freight outward to 253.81 Lakhs in Financial Year ended 2024 from 198.51 Lakhs in Financial Year ended 2023, primarily due to increase in the sales and supporting activities;

Profit before Tax

Our profit before tax increased by 43.12% to 2,605.49 Lakhs for the Financial Year ended 2024 from 1,820.47 Lakhs for the Financial Year ended 2023. The increase was mainly due to the increase of sales as described above.

Tax Expenses

Our total tax expense also accordingly increased by 45.60% to 670.42 Lakhs in Financial Year ended 2024 from 460.48 Lakhs in Financial Year ended 2023 on account of increase in current tax by 221.99 Lakhs.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 42.29% to 1,935.27 Lakhs in Financial Year ended 2024 from 1,360.00 Lakhs in Financial Year ended 2023.

Comparison Of Financial Year Ended 2023 To Financial Year Ended 2022

Income

Total Revenue: Our total revenue increased by 74.69% to 24,748.86 Lakhs for the Financial Year ended 2023 from 14,167.39 Lakhs for the Financial Year ended 2022. This increase was due to an increase in revenue from operations.

Revenue from Operations

Our revenue from operations was increased by 74.63% to 24,666.47 Lakhs for the Financial Year ended 2023 from 14,125.12 Lakhs for the Financial Year ended 2022 due to increase in revenue in the year Financial Year ended 2023 by 10,541.35 lakhs, primarily due to an increase in domestic sale of products to 20,328.91 Lakhs in Financial Year ended 2023 from 12,086.28 in FY 2022 and increase in export sales of products to 4,329.04 Lakhs in FY 2023 from 2,038.84 in Financial Year ended 2022.

The growth has been majorly observed due to -

5) Increase in domestic sale of products to 20,328.91 Lakhs in Financial Year ended 2023 from 12,086.28 in Financial Year ended 2022 and increase in export sales of products to 4,329.04 Lakhs in Financial Year ended 2023 from 2,038.84 in Financial Year ended 2022, which was mainly attributable to the growth of our business.

6) There has been significant growth in revenue contribution to end use industry of Transformers, UPS and Inverters.

7) Details of increase of production from 5,691 Metric Tons p.a. to 7,408 Metric Tons p.a.

8) Our region wise sale increase, especially in Eastern region from 471 Lakhs in financial year ended 2022 to 847 Lakhs in financial year ended 2023, Western region from 2,847 Lakhs in financial year ended 2022 to 5,423 Lakhs in financial year ended 2023, Southern region from 1,657 lakhs in financial year ended 2022 to 4,943 Lakhs in financial year ended 2023 and Northern region from 7,111 Lakhs in financial year ended 2022 to 9,116 Lakhs in financial year ended 2023.

Other Income

Other income increased by 94.91% to 82.39 Lakhs in Financial Year ended 2023 from 42.27 Lakhs in FY 2022, primarily due to increase in gain on foreign exchange fluctuation to 48.83 Lakhs for the Financial Year ended 2023 from 15.87 Lakhs in FY 2022.

Expenditure

Total Expenses: Our total expenses increase by 70.91% to 22,916.87 Lakhs for the FY 2023 from 13,408.78 Lakhs for the FY 2022 due to the factors described below:

Cost of materials consumed

Cost of Material Consumed increased by 82.00% to 20,577.52 Lakhs for the Financial Year ended 2023 from 11,306.40 Lakhs for Financial Year ended 2022 due to increase in opening stock of raw material by 3,141.06 Lakhs, increase in material purchase by 4,854.21 Lakhs, and decrease in closing stock of raw material by 1,275.86 Lakhs in the Financial Year ended 2023.

Changes in Inventories

Changes in Inventories increased by (2,772.57%) to 144.61 Lakhs for the FY 2023 from ( 5.41) lakhs in Financial Year ended 2022.

Employee Benefit Expenses

Our employee benefits expenses increased by 29.34% to 789.02 Lakhs in FY 2023 from 610.02 Lakhs in Financial Year ended 2022, primarily due to an increase in the salaries, wages, allowances, and incentives to 540.45 Lakhs in Financial Year ended 2023 from 417.05 Lakhs for the Financial Year ended 2022.

Finance Costs

The Financial costs increased by 19.32% to 501.29 Lakhs in FY 2023 from 420.11 Lakhs in Financial Year ended 2022. This increase was mainly due to interest on borrowings from banks by 22.46 Lakhs, loan processing charges, bank charges and bank guarantee charges by 58.72 Lakhs in the Financial Year ended 2023.

Depreciation and Amortization Expenses

The Depreciation and Amortization expenses decreased by 10.24% to 95.18 Lakhs in Financial Year ended 2023 from 106.03 Lakhs in Financial Year ended 2022.

Other Expenses

The Other expenses decreased by 16.71% to 809.24 Lakhs in FY 2023 from 971.62 Lakhs in FY 2022, primarily due to:

• an increase in fees for professional and legal services to 29.53 Lakhs in FY 2023 from 13.32 Lakhs in FY 2022, primarily due to an increase in consultancy services;

• decrease in sundry balances written off to 20.49 Lakhs in FY 2023 from 447.45 Lakhs in FY 2022, primarily due to timely realization of payment from the customers;

• decrease in use of consumable stores to 23.40 Lakhs in FY 2023 from 40.17 Lakhs in FY 2022, primarily due to effective use of the consumable stores;

• an increase in freight outward to 198.51 Lakhs in FY 2023 from 114.45 Lakhs in FY 2022, primarily due to increase in the sales and supporting activities;

• an increase in tours and travelling expenses to 64.79 Lakhs in FY 2023 from 14.33 Lakhs in FY 2022, primarily due to increase in client visits for business promotion; and

• an increase in sales and business promotion to 26.64 Lakhs in FY 2023 from 4.35 Lakhs in FY 2022, primarily due to increase in sales promotion.

• Exceptional Items: The exceptional items include loss on sale of fixed assets amounting to 11.52 lakhs in FY 2023.

Profit before Tax

Our profit before tax increased by 144.44% to 1,820.47 Lakhs for the Financial Year ended 2023 from 744.74 Lakhs for the Financial Year ended 2022. The increase was mainly due to the factors described above.

Tax Expenses

Our total tax expense also accordingly increased by 166.00% to 460.48 Lakhs in FY 2023 from 173.11 Lakhs in the Financial Year ended 2022 on account of increase in current tax by 288 Lakhs and increase in deferred tax asset by 0.62 Lakhs.

Profit after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 137.92% to 1,360.00 Lakhs in FY 2023 from 595.17 Lakhs in Financial Year ended 2022.

Cash Flows

The table below is our cash flows for Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022 :

	For the Financial Years ended on March 31
Particulars	2024 ( in Lakhs)	2023 ( in Lakhs)	2022 ( in Lakhs)
Net cash (used)/from operating activities	1,576.65	508.72	797.67
Net cash (used)/from investing activities	(505.34)	(106.20)	(10.79)
Net cash (used)/from financing activities	(1,322.58)	(51.12)	(446.50)
Cash and Cash equivalents at the beginning of the year	823.19	471.79	131.42
Cash and Cash equivalents at the end of the year	571.91	823.19	471.79

Cash Flows from Operating Activities

For the period ended March 31, 2024

Our net cash generated from operating activities was 1,576.65 Lakhs for the period ended March 31, 2024. Our operating profit before working capital changes was 3,301.27 Lakhs for the period ended March 31, 2024, which was primarily adjusted against income tax of 596.35 Lakhs, increase in inventories 981.56, increase in trade receivables by 221.64 Lakhs, increase in loans and advances by 581.60 Lakhs and increase in other assets by 225.78 Lakhs, increase in trade payables by 1,007.72 Lakhs, increase in other liabilities by 125.40 Lakhs.

For the year ended on March 31, 2023

Our net cash generated from operating activities was 508.72 Lakhs for the financial year ended March 31, 2023. Our operating profit before working capital changes was 2,399.92 Lakhs for the financial year ended March 31, 2023, which was primarily adjusted against income tax of 463.40 Lakhs, increase in trade receivables by 2,453.63 Lakhs, decrease in loans and advances by 18.04 Lakhs and other assets by 21.81 Lakhs, decrease in trade payables by 563.28 Lakhs, increase in other liabilities by 128.80 Lakhs and decrease in inventories by 1,420.47 Lakhs.

For the year ended on March 31, 2022

Our net cash generated from operating activities was 797.67 Lakhs for the financial year ended March 31, 2022. Our operating profit before working capital changes was 1,257.02 Lakhs for the financial year ended March 31, 2022, which was primarily adjusted against income tax of 170 Lakhs, increase in trade receivables by 391.45 Lakhs, increase in loans and advances by 49.68 lakhs and other assets by 160.09 Lakhs, decrease in trade payables by 3,321.41 Lakhs, increase in other liabilities by 37.56 Lakhs and increase in inventories by 3,146.47 Lakhs.

Cash Flows from Investing Activities

For the period ended March 31, 2024

Net cash flow used in investing activities for the period ended March 31, 2024 was (505.34) Lakhs. This was primarily on account of purchases of fixed assets of (384.09)Lakhs, increase in long term loans and advances by 143.17 Lakhs, increase in non-current assets by 21.05 Lakhs ,increase in the sale of fixed asset of 1.84 Lakhs and increase in the receipt of interest of 41.14 lakhs

For the year ended on March 31, 2023

Net cash flow used in investing activities for the year ended March 31, 2023, was (106.20) Lakhs. This was primarily on account of purchases of fixed assets of 141.99 Lakhs, sales of the fixed assets of 8.75 Lakhs, increase in non-current assets by 2.56 lakhs and increase in the receipt of interest of 29.59 lakhs.

For the year ended on March 31, 2022

Net cash flow used in investing activities for the year ended March 31, 2022, was (10.79) Lakhs. This was primarily on account of purchases of fixed assets of 54.80 Lakhs, sales of the fixed assets of 18.83 Lakhs, decrease in non-current assets by 1.19 lakhs and increase in the receipt of interest of 23.99 lakhs.

Cash Flows from Financing Activities

For the period ended March 31, 2024

Net cash flow used in financing activities for the period ended March 31, 2024, was (1,322.58) Lakhs. This was primarily on account of interest payment of 595.48 Lakhs.

For the year ended March 31, 2023

Net cash flow used in financing activities for the year ended March 31, 2023, was ( 51.12) Lakhs. This was primarily on account of increase in long-term borrowing by 158.56 lakhs, increase in short-term borrowing by 291.61 Lakhs and interest payment of 501.29 Lakhs.

For the year ended March 31, 2022

Net cash flow used in financing activities for the year ended March 31, 2023, was ( 446.50) Lakhs. This was primarily on account of decrease in long-term borrowing by 48.77 Lakhs, increase in short-term borrowing by 22.37 Lakhs and interest payment of 420.11 Lakhs.

Qualitative Disclosure about Market Risk

Financial Market Risks

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Financial instruments affected by market risk include loans, borrowings, term deposits, and investments.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Effect of Inflation

We are affected by inflation as it has an impact on the raw material cost, wages, etc. In line with changing inflation rates, were working our margins so as to absorb the inflationary impact.

Credit Risk

Credit risk is the risk of financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the groups receivables from deposits with landlords and other statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The group assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The group limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. The management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The group does a proper financial and credibility check on the landlords before taking any property on lease and hasnt had a single instance of non-refund of security deposit on vacating the leased property. The group also in some cases ensure that the notice period rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the non-realization risk. The group does not foresee any credit risks on deposits with regulatory authorities.

Customer credit risk is managed by each business unit subject to the groups established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

Reservations, Qualifications and Adverse Remarks

Except as disclosed in chapter titled "Restated Financial Statements" beginning on page 209 of this Red Herring Prospectus, there have been no reservations, qualifications, and adverse remarks.

Details of Default, if any, including therein the Amount Involved, Duration of Default and Present Status, in Repayment of Statutory Dues or Repayment of Debentures or Repayment of Deposits or Repayment of Loans from any Bank or Financial Institution.

Except as disclosed in chapter titled "Restated Financial Statements" beginning on page Annexure I.8 on page F 11 of this 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.

Unusual or infrequent events or transactions.

Except as described in this Red Herring Prospectus, during the period under review there have been no events or transactions, which in our best judgement would consider unusual or infrequent on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.

Significant Economic Changes That Materially Affected or are likely to affect Income from Continuing Operations

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends and the uncertainties described in the section entitled "Risk Factors" beginning on page 27 of the Red Herring Prospectus.

To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes that could materially affect or are likely to affect income from continuing operations.

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

Except as mentioned above and other than as described in this Red Herring Prospectus, particularly in the section titled "Risk Factors" and this "Managements Discussion and Analysis of Financial Position and Results of Operations" beginning on page 27 and 217, respectively of this Red Herring Prospectus, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our sales, revenues or income from continuing operations.

Future relationship between cost and income

Our Companys future costs and revenues will be determined by demand/supply situation, government policies.

Increase in net sales or revenue and Introduction of new products or services or increased in sales prices.

Increase in revenue are by and large linked to increase in volume of business and inception of new varieties of products.

Total Turnover of each major industry segment in which Company operated.

Relevant Industry data, as available, has been included in the section titled "Industry Overview" beginning on page 129 of the Red Herring Prospectus.

Status of any publicly announced new products or business segment.

Our Company has not announced any new product and segment, except otherwise disclosed in this Red Herring Prospectus.

Seasonality of Business

Our Companys business is not seasonal in nature.

Significant Dependence on a Single or Few Customers

We are dependent on certain of our key customers and the details of contribution of our top five and top 10 customers to our total revenue from operations for the Financial Years ended March 31, 2024, March 31, 2023, and March 31, 2022, have been set out below.

	Restated Financial Information for the Financial Year Ended March 31
	2024		2023		2022
Particulars of Customers	Amount ( in Lakhs)	% of Revenue from operations	Amount ( in Lakhs)	% of Revenue from operations	Amount ( in Lakhs)	% of Revenue – from operations
Top 5	12,625.29	41.71%	9,446.00	38.30%	6,072.67	42.99%
Top 10	17,337.22	57.27%	13,611.00	55.18%	7,994.14	56.59%

Additionally, certain customers have high and stringent standards for product quantity and quality as well as delivery schedules. Any failure to meet our customers expectations and specifications could result in the cancellation or non-renewal of purchase orders. There are also a number of factors, other than our performance that could cause the loss of a customer. Customers may demand, among others, price reductions, setoff any payment obligations, or replace their existing products with alternative products, any of which may have an adverse effect on our business, results of operations and financial condition.

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 competitors who have been discussed in section titled "Our Business" beginning on page 165 of this Red Herring Prospectus.

Material Developments Subsequent to March 31, 2024 that may affect our Future Results of Operations

Except as disclosed in this Red Herring Prospectus, to our knowledge, no circumstances have arisen since the date of the last financial statements disclosed in this Red Herring Prospectus, which materially and adversely affect or are likely to affect our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next 12 months.