Jivial Industries Ltd Management Discussions

You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled "Financial Information of the Company" beginning on page no.99 You should also read the section titled "Risk Factors" on page no 31and the section titled "Forward Looking Statements" on page no 23 of this Draft Prospectus, which discusses a number of factors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us, and, unless otherwise stated or the context requires otherwise, is based on our Restated Financial Statements.

Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor which is included in this Draft Prospectus under "Financial Statements". The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year, and all references to a particular financial year are to the twelve-month period ended March 31 of that year.

Business Overview

Our Company was originally incorporated as a Private Limited Company under the name of "Jivial Industries Private Limited" on June 23, 2021 under the provisions of the Companies Act, 2013 with the Registrar of Companies, Ahmedabad. Further our Company was converted into Public Limited pursuant to resolution passed by our shareholders at Extra ordinary general meeting held on December 19, 2023 name of our company was changed from "Jivial Industries Private Limited" to "Jivial Industries Limited" and a fresh Certificate of Incorporation pursuant to conversion into public limited dated January 01, 2024 issued by the Registrar of Companies, Ahmedabad. For details of incorporation our Company, please refer to the section title "History and Corporate Structure" on page no. 165 of this Draft Prospectus.

Our journey began in 2018 as a Proprietorship firm under the name of "M/s Jivial Industries" which was subsequently acquired by our Company vide Business Transfer Agreement dated September 29, 2023

Our Company is Promoted by Mr. Anand Jitendrabhai Chovatiya and Mrs. Sheetalben Anand Chovatiya and is based in the Rajkot district of Gujarat, India.

Our Registered office-cum-Manufacturing Facility-Unit-I located at A-1/5, Aji GIDC, Road - C, Beside Dynamatic Forgings, Rajkot - 360003 has been certified with ISO 9001:2015 from Global Certification Services, 9001:2015 from ISO India, 14001:2015 from Royal Assessments Private Limited and 9001:2015 from Royal Assessments Private Limited. We manufacture finished aluminium railings and its fixtures from unfinished extruded aluminium railings and unfinished fixtures, as per the specifications and requirements of our customers. We engineer the aluminium railings and fixtures at our factory to hold glass for partitions, balconies, viewing windows, facade of buildings etc. We manufacture majorly two types of railings; (i) Continous Profiles, used for holding the glass at the bottom and; (ii) Handrails for holding the glass at the top along with design for hand support. Further, we manufacture several aluminium fixtures used in supporting the railings to hold glass, such as, spigot, conceal, bend, bracket, jointer, lock and endcap.

The aluminium railings and fixtures are manufactured by cutting, drilling, anodizing, buff polishing and powder coating as per the requirements of our customers. Our customers are mainly small and medium level construction companies, architects, interior designers, glass providers and fabricators. We cater to customers all over India but our majority revenues are generated from Gujarat, Maharashtra and Chhatisgarh which total to 72.87%, 67.82% and 62.55% of our total revenues in Financial Year ended 2025, 2024 and 2023 respectively.

Our registered office cum manufacturing facility unit-I is located at A-1/5, Aji GIDC, Road - C, Beside Dynamatic Forgings, Rajkot - 360003 spread over 6,500 square feet. All our products are currently manufactured in this manufacturing unit. Our proposed manufacturing facility unit-II is located at No. C-45/46, Survey No. 109, 110, 112, 118 Paikee 1/Paikee 2, Samadhiya, Rajkot, Gujarat. We have initiated our expansion and backward integration plans in manufacturing facility unit-II wherein we are expanding our capacity of manufacturing customised aluminium railings and are planning to set up aluminium extrusion machines by which we will be able to manufacture unfinished extruded aluminium

railings. Our raw material is indigenously available and the cost of materials consumed in our operations were 60.14%, 64.95% and 68.60% of revenue of operations for the Financial Year ended 2025, 2024 and 2023 respectively.

Our promoter Mr. Anand Jitendrabhai Chovatiya who serves as the Managing Director of our company, has been instrumental in the success of our business. He has more than 9 years of experience in the manufacturing of aluminium railings. His busine ss acumen and his hands-on experience has helped our company in our growth and development.

FINANCIAL SNAPSHOT

The following table sets forth a breakdown of our revenue from operations, as well as other key performance indicators, for the periods indicated:

(Amount in lakh, except EPS, % and ratios)

	Financial Year ended
Particulars	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from Operations?	1,200.61	1,105.73	839.93
Revenue CAGR (%)(ii)		12.65%
Total Income(iii)	1,206.79	1,105.73	839.93
EBITDA(iv)	374.93	307.78	142.47
EBITDA Margin (%)(v)	31.23%	27.84%	16.96%
EBITDA CAGR (%)(vi)		38.06%
EBIT(vii)	355.26	295.79	141.84
ROCE (%)(viii)	47.12%	77.72%	149.43%
Current Ratio(ix)	6.33	6.16	4.60
Operating Cash Flow(x)	95.29	(23.99)	16.78
PAT(xi)	297.15	241.31	116.69
PAT Margin (%)(xii)	24.75%	21.82%	13.89%
Net Worth(xiii)	871.69	574.54	153.26
ROE/ RONW (%)(xiv)	41.09%	66.31%	122.94%
EPS (Basic & Diluted)(xv)	8.98	10.18	7.73

Notes:

i. Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements.

ii. Revenue CAGR: The three-year compound annual growth rate in Revenue. [(Ending Value/Beginning Value) ^A (1/N)]-1.

iii. Total Income means the Total Income as appearing in the Restated Financial Statements.

iv. EBITDA is calculated as profit for the period /year, plus tax expenses (consisting of current tax, deferred tax and current taxes relating to earlier years), Interest Expenses and depreciation and amortization expenses minus other Income.

v. EBITDA Margin (%) is calculated as EBITDA divided by Revenue from Operations.

vi. EBITDA CAGR (%) means: The three-year compound annual growth rate in EBITDA. [(Ending Value/Beginning Value)A (1/N)]-1

vii. EBIT is calculated as profit for the period /year, plus tax expenses (consisting of current tax, deferred tax and current taxes relating to earlier years), Interest Expenses minus other Income.

viii. RoCE (Return on Capital Employed) (%) is calculated as earnings before interest and taxes divided by average capital employed. Capital Employed includes Equity Shares, Reserves and surplus, Long- Term Borrowing.

ix. Current Ratio: Current Asset over Current Liabilities.

x. Operating Cash Flow: Net cash inflow from / (used in) operating activities.

xi. Profit After Tax Means Profit for the period/year as appearing in the Restated Financial Statements.

xii. PAT Margin (%) is calculated as Profit for the period/year divided by Revenue from Operations.

xiii. RoE (Return on Equity) (%) is calculated as net profit after tax for the period/year divided by Average Shareholder Equity.

xiv. Net Worth means the aggregate value of the paid-up share capital and reserves and surplus of the company.

xv. EPS: Earning per share is calculated as PAT divide by Weighted No. of equity shares

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Note 2 of Restated Financial Statements beginning on page no 99 of this Draft Prospectus.

Factors Affecting our Results of Operations

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled "Risk Factors" on page no 31 of this Draft Prospectus. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations:

1. Any adverse changes in central or state government policies;

2. Any qualifications or other observations made by our statutory auditors which may affect our results of operations;

3. Loss of one or more of our key customers and/or suppliers;

4. An increase in the productivity and overall efficiency of our competitors;

5. Our ability to maintain and enhance our brand image;

6. Our reliance on third party suppliers for our raw materials;

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

8. Changes in technology and our ability to manage any disruption or failure of our technology systems;

9. Changes in political and social conditions in India or in countries that we may enter, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

10. The performance of the financial markets in India and globally;

11. Occurrences of natural disasters or calamities affecting the areas in which we have operations;

12. Market fluctuations and industry dynamics beyond our control;

13. Our ability to compete effectively, particularly in new markets and businesses;

14. Changes in foreign exchange rates or other rates or prices;

15. Inability to collect our dues and receivables from, or invoice our unbilled services to, our customers, our results of operations;

16. Other factors beyond our control;

17. Our ability to manage risks that arise from these factors;

18. Changes in domestic and foreign laws, regulations and taxes and changes in competition in our industry;

19. Termination of customer contracts without cause and with little or no notice or penalty; and

20. Inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals or noncompliance with and changes in, safety, health and environmental laws and other applicable regulations, may adversely affect our business, financial condition, results of operations and prospects.

Result of Operations

The following table sets forth select financial data from restated profit and loss accounts for the financial year(s) ended on March 31, 2025, March 31, 2024 and March 31, 2023 and the components of which are also expressed as a percentage of total income for such periods.

(Rs in Lakh, except for percentage)

Particulars	Financial Year ended March 31, 2025	% of Total Revenue	Financial Year ended March 31, 2024	% of Total Revenue	Financial Year ended March 31, 2023	% of Total Revenue
Revenue from Operations	1,200.61	99.49%	1,105.73	100.00%	839.93	100.00%
Other Income	6.17	0.51%	-	-	-	-
Total Income	1,206.79	100.00%	1,105.73	100.00%	839.93	100.00%
Cost of Material Consumed	722.07	60.14%	718.20	64.95%	576.19	68.60%
Particulars	Financial Year ended March 31, 2025	% of Total Revenue	Financial Year ended March 31, 2024	% of Total Revenue	Financial Year ended March 31, 2023	% of Total Revenue
Change in Inventories of Finished Goods and W ork-in-Progress	(49.83)	(4.15%)	(44.57)	(4.03%)	3.57	0.42%
Employee Benefits Expense	71.17	5.93%	55.86	5.05%	39.41	4.69%
Finance Costs	2.96	0.25%	1.93	0.17%	-	-
Depreciation and Amortization Expense	19.67	1.64%	11.99	1.08%	0.63	0.07%
Other Expenses	82.27	6.85%	68.26	6.17%	78.30	9.32%
Total Expenses	848.30	70.66%	811.67	73.41%	698.09	83.11%
Profit Before Tax	358.48	29.86%	294.06	26.59%	141.84	16.89%
Tax Expense:
Current Tax	62.76	5.23%	52.88	4.78%	25.12	2.99%
Deferred Tax Expense/(Income)	(1.42)	(0.12%)	(0.13)	(0.01%)	0.03	0.00%
Profit After Tax	297.15	24.75%	241.31	21.82%	116.69	13.89%

Main Components of our Profit and Loss Account Revenue from operations:

Revenue from operations mainly consists of revenue from manufacturing sale of Aluminium and related products.

Other Income:

Our other income primarily consists of Interest Income and income from Packing and Forwarding.

Expenses:

Companys expenses consist of Cost of materials Consumed, Purchase Cost, Change in Inventory, Finance Cost Employee benefits expense, Depreciation expenses and other expenses.

Cost of Material Consumed

Cost of Material consumed is arrived at by adjusting purchase of raw material during the year with opening and closing stock of inventories at the beginning of the year and at the end of the year respectively.

Changes In inventories of Finished Goods and Work in Progress.

Changes in Inventories of Finished Goods and Work in Progress implies increase/decrease in the carrying over position of finished goods and the work in progress at the beginning and at end of the year.

Employee Benefits Expense:

Our employee benefits expense primarily comprises of Salaries and Wages, Staff Welfare Expenses and Directors Remuneration.

Finance Cost:

Finance cost consists of Interest expenses and Bank charges.

Depreciation and Amortization Expenses:

Depreciation includes depreciation calculated on Electrical Installation and Equipment, Plant & Machinery, Motor Vehicle, Furniture & Fixtures and Computer and Data Processing Unit.

Other Expenses:

Our other expenses consist of two Main category of expenses one which can be directly relates to manufacturing being categorised as manufacturing expenses and second, those expenses which are administrative in nature being categorised as administrative expenses.

Manufacturing Expenses are broadly classified as Electricity, Power, Fuel & Water, Job Contract Expenses and other Manufacturing expenses.

Administrative Expense are categorised as Advertising, Marketing and Exhibition Expense, Auditors Remuneration, Commission Expense, Communication and Internet expense, Computer & Maintenance, Container Expense, Factory Expenses, Insurance Expense, Legal and Professional Expense, Office Expenses, Postage & Courier, Rent, Rates & Taxes Expense etc.

RESULTS OF OPERATIONS FOR THE PERIOD ENDED MARCH 31, 2025

Total Income:

During Financial Year ended 24-25, Total income for the period starting from April 1, 2024 to March 31, 2025 stood at Rs1,206.79 Lakhs. The total income consists of revenue from operations and other income.

Revenue from Operations

During Financial Year ended 24-25, revenue from operation of our Company stood at Rs1,200.61 Lakhs. The main contribution to the revenue from operations is from sale of Aluminium and related products and stainless steel and other metal works.

Other Income:

During Financial Year ended 24-25, other income of our Company stood at Rs 6.17 Lakhs. The main components of other income are interest income and income from packing and forwarding.

Employee benefits expense:

During Financial Year ended 24-25, our employee benefits expense was Rs 71.17 Lakhs for the year ended March 31, 2025, which included salaries and wages of Rs 43.66 Lakhs, Directors remuneration of Rs 27.00 Lakhs and staff welfare expenses of Rs 0.50 Lakhs.

Depreciation and Amortization Expenses:

During Financial Year ended 24-25, Depreciation and amortization charges of our Company stood at Rs 19.67 Lakhs.

Other Expenses:

Our other expenses for the year ended March 31, 2025 amounted to Rs 82.27 Lakhs, which majorly includes job contract expenses Rs 35.41 Lakhs, Electricity, Power, Fuel and Water expenses Rs 5.27 Lakhs, Other Manufacturing expenses Rs 7.18 Lakhs, Advertisement, Exhibition and Marketing Expense Rs 5.52 Lakhs, Auditors remuneration Rs 2.50 Lakhs etc, Rent rates & Taxes Rs 4.22 Lakhs, Tour & Travelling expenses of Rs 2.56 Lakhs, Legal & Professional Expenses of Rs 2.99 Lakhs and Office Expenses of Rs 2.39 Lakhs.

Tax Expense

During the Financial Year ended 24-25 provision for Income Tax has been created for Rs 62.76 Lakhs computed as per the tax liability arising for the year as per Income tax act 1961.

Restated profit after tax:

Our restated profit after tax for the Financial Year ended 24-25 after adjusting the Income tax provision computed as per Income tax Act 1961 stands as Rs 297.15 Lakhs.

FISCAL 2025 COMPARED WITH FISCAL 2024

Set forth below is a discussion of our results of operations for financial year ended March 31, 2025 over March 31, 2024 Total Income:

Total income increased from Rs 1,105.73 Lakh in year ended March 31, 2024 to Rs 1,206.79 Lakhs in year ended March 31, 2025 with a resultant increase of 9.14% in year ended March 31, 2025 mainly due to increase in normal course of business.

Revenue from Operations:

Total revenue from operations increased from Rs 1,105.73 Lakh in year ended March 31, 2024 to Rs 1,200.61 Lakhs in year ended March 31, 2025 with a resultant increase of 8.58% in year ended March 31, 2025 mainly due to addition of some new customers and also some increased orders from previous customers during the year ended March 31, 2025.

Other Income:

Other Income increased from RsNil Lakhs in year ended March 31, 2024 to Rs 6.17 Lakhs in year ended March 31, 2025 with a resultant increase of 617.00% in year ended March 31, 2025 which is due to interest income accrued during FY 2025 and also some part attributable to income generated from packaging and forwarding.

Cost of Material Consumed:

Our Cost of material consumed was Rs 718.20 Lakhs in year ended March 31, 2024 and we had achieved Rs 1105.73 of revenues from operations. Whereas, our cost of material consumed was Rs 722.07 Lakhs in year ended March 31, 2025 and we achieved Rs 1200.61 of revenues of operations. This was mainly due to decrease in the purchase price of our raw materials, efficient handling of production which resulted in reduction in wastage, better supply chain management, etc. These efforts resulted in decrease in cost of materials consumed compared to our revenues.

Changes in Inventories of Finished Goods and Work in Progress:

During the FY 24-25 change in Inventories to finished goods carried over to the balance sheet has increased from Rs 44.57 Lakhs in FY 23-24 to Rs 49.83 Lakhs in FY 24-25 giving a resultant increment of 11.80% during financial year ended March 2025. This was mainly done to be ready for revenue growth in future.

Further, our policies on inventory management and subsequently our continuous focus on increasing our revenues and follow up with the customers for payments has made possible to keep check on incremental pressure on operating cash flows due to increased inventory holdings in our book

Employee Benefits Expense:

Employee Benefit Expenses increased from Rs 55.86 Lakhs in year ended March 31, 2024 to Rs 71.17 Lakhs in year ended March 31, 2025 with a resultant increase of 27.41% which was mainly due to increase in number of employees as well as increment in salaries and wages.

Depreciation and Amortization Expenses:

Depreciation and amortization increased from Rs 11.99 Lakhs in year ended March 31, 2024 to Rs19.67 Lakhs in year ended March 31, 2025 which is a resultant increase of 64.10% due to increase in the asset base of the company i.e. purchase of Computer and Data Processing Unit, Electrical Installation and Equipment, Furniture and Fixtures and Plant and Machinery.

Other Expenses:

Other expenses increase from Rs 68.26 Lakhs in year ended March 31, 2024 to Rs 82.27 Lakhs in year ended March 31, 2025 with a resultant increase of 20.53% in year ended March 31, 2025. The other expenses primarily includes manufacturing expenses and administrative expenses. In the Financial Year ended 24-25 manufacturing expenses remained same and we have witnessed some gradual increment in administrative expenses which are self explanatory and essential for the running of the business.

Restated profit after tax:

Net Profit after tax increased from Rs 241.31 Lakhs in year ended March 31, 2024 to Rs 297.15 Lakhs in year ended March 31, 2025 with a resultant increase of 23.14% in year ended March 31, 2025. Our profit margin has increased due to lower procurement costs of raw materials compared with previous year March 31, 2024. Cost of material consumed and changes in inventory during the financial year ended 2025 reduced from 60.92% (in Financial Year ended 2024) to 55.95% giving a resultant increment of 4.97% in our margins during the financial year ended 2025.

Further, we have also added some new customers with some good business propositions during the financial year ended March 31, 2025 which also added to our overall margins.

FISCAL 2024 COMPARED WITH FISCAL 2023

Set forth below is a discussion of our results of operations for financial year ended March 31, 2024 over March 31, 2023 Total Income:

Total income increased from Rs 839.93 Lakh in year ended March 31, 2023 to Rs 1105.73 Lakhs in year ended March 31, 2024 with a resultant increase of 31.65% in year ended March 31, 2024. There was no other income and therefore our total income is same as revenue from operations.

Revenue from Operations:

Total income increased from Rs 839.93 Lakh in year ended March 31, 2023 to Rs 1105.73 Lakhs in year ended March 31, 2024 with a resultant increase of 31.65% in year ended March 31, 2024. The increase in Financial Year ended 2024 vis a vis with Financial Year ended 2023 is attributable to growth in business due to acquisition of new customers, increase in appointment distributors and other efforts to increase our revenues from operations. Further, we acquired proprietorship concern of our promoter which helped in boosting our revenues from operation.

Cost of Material Consumed:

Our Cost of material consumed increased from Rs 576.19 Lakhs in year ended March 31, 2023 to Rs 718.20 Lakhs in year ended March 31, 2024 with a resultant increase of 24.65% on year to year comparison. On comparison of our cost of material consumed vis a vis revenue from operations, in the Financial Year ended 2023 it was 68.60% and in the Financial Year ended 2024 it was 64.95%. This resulted in an increase of 3.56% in our profit margin.

Changes in Inventories of Finished goods and Work in Progress:

During the financial year ended 2024 change in Inventories to finished goods had increased by Rs 44.57 Lakhs. This incremental change in inventories was due to natural growth of business by volume.

Employee Benefits Expense:

Employee Benefit Expenses increased from Rs 39.41 Lakhs in year ended March 31, 2023 to Rs 55.86 Lakhs in year ended March 31, 2024 with a resultant increase of 41.75% in year on year comparison mainly due to increase in the salaries and wages and Directors remuneration.

Depreciation and Amortization Expenses:

Depreciation and amortization increased from Rs 0.63 Lakhs in year ended March 31, 2023 to Rs 11.99 Lakhs in year ended March 31, 2024 with a resultant increase of 1805.72% in year ended March 31, 2024 due to increase in the asset base of the company i.e. purchase of Computer and Data Processing Unit, Electrical Installation and Equipment, Furniture and Fixtures, Motor Vehicle and Plant and Machinery.

Other Expenses:

Other expenses decrease from Rs 78.30 Lakhs in year ended March 31, 2023 to Rs 68.26 Lakhs in year ended March 31, 2024 with a resultant decrease of 12.82% in year ended March 31, 2024. The decrease in this category is due to better negotiation in the rates with our job workers and also due to reduced dependence on job workers which resulted in decrease from Rs 57.24 lakhs in financial year ended FY 2023 to Rs 34.58 Lakhs in financial year 2024.

Restated profit after tax:

Net Profit after tax increased from Rs 116.69 Lakhs in year ended March 31, 2023 to Rs 241.31 Lakhs in year ended March 31, 2024 with a resultant increase of 106.80% in year ended March 31, 2024. The increase in profit available to shareholders is due to better negotiation from our suppliers of raw material where Cost of material consumed in respect to revenue came down by 4% in financial year ended 2024 from 69% in financial year ended 2023 to 65% in financial year ended 2024. Further, some portion of increment to profit after tax can also be co-related to better negotiation in Job work charges (other expenses) which went down from Rs 57.24 Lakhs in financial year ended 2023 to Rs 34.58 lakhs in financial year ended 2024.

CASH FLOWS

The following table sets forth certain information relating to our cash flows in the periods indicated:

(Rs in Lakhs)

Particulars	FY 2024-25	FY 2023-24	FY 2022-23
Net Cash Inflow from / (used in) Operating Activities	95.29	(23.99)	16.78
Net Cash Inflow from / (used in) Investing Activities	(75.12)	(112.28)	(10.63)
Net Cash Inflow from / (used in) Financing Activities	(8.46)	203.75	2.50
Cash and Cash Equivalents at Beginning of Period	82.62	15.15	6.50
Cash and Cash Equivalents at End of Period	94.33	82.62	15.15

Cash Flows from Operating Activities For Financial Year Ended March 31, 2025

Net cash generated from operating activities was Rs 95.29 Lakhs in March 31, 2025. Profit before tax was Rs 358.48 Lakhs in March 31, 2025. Adjustments primarily consisted of Depreciation of Rs 19.67 Lakhs, Interest Expense of Rs 2.96 Lakhs, Interest and Other Income of Rs (6.17) Lakhs.

Our operating cash flow before working capital adjustments was Rs 374.94 Lakhs in March 31, 2025. The working capital adjustments in March 31, 2025 included, Increase in Inventories Rs (228.05) Lakhs, Decrease in Trade Receivables Rs 2.27 Lakhs, Decrease in Short Term Loans & Advances Rs 23.95 Lakhs, Increase in Other Current Assets Rs (51.68) Lakhs, Increase in Other Non-Current Assets Rs (2.71) Lakhs, Increase in Trade Payables Rs 30.78 Lakhs, Increase in Other Current Liabilities Rs 27.17 Lakhs, Decrease in Short Term Provisions Rs (51.51) Lakhs. Our Cash generated from Operations was Rs 125.17 Lakhs in March 31, 2025. The adjustment of Direct Taxes paid was (29.87) Lakhs.

For Financial Year Ended March 31, 2024

Net cash used in operating activities was Rs (23.99) Lakhs in March 31, 2024. Profit before tax was Rs 294.06 Lakhs in March 31, 2024. Adjustments primarily consisted of Depreciation of Rs 11.99 Lakhs and Interest Expense of Rs 1.93 Lakhs.

Our operating cash flow before working capital adjustments was Rs 307.98 Lakhs in March 31, 2024. The working capital adjustments in March 31, 2024 included, Increase in Inventories Rs (153.32) Lakhs, Increase in Trade Receivables Rs (27.64) Lakhs, Increase in Short Term Loans & Advances Rs (31.35) Lakhs, Increase in Other Current Assets Rs (11.12) Lakhs, Increase

in Other Non-Current Assets Rs (87.00) Lakhs, Decrease in Trade Payables Rs (8.57) Lakhs, Increase in Other Current Liabilities Rs 12.32 Lakhs, Increase in Short Term Provisions Rs 19.70 Lakhs. Our Cash generated from Operations was Rs 21.01 Lakhs in March 31, 2024. The adjustment of Direct Taxes paid was Rs (45.00) Lakhs.

For Financial Year Ended March 31, 2023

Net cash generated from operating activities was Rs 16.79 Lakhs in March 31, 2023. Profit before tax was Rs 141.84 Lakhs in March 31, 2023. Adjustments primarily consisted of Depreciation of Rs 0.63 Lakhs.

Our operating cash flow before working capital adjustments was Rs 142.47 Lakhs in March 31, 2023. The working capital adjustments in March 31, 2023 included, Increase in Inventories Rs (36.52) Lakhs, Increase in Trade Receivables Rs (58.10) Lakhs, Increase in Short Term Loans & Advances Rs (21.40) Lakhs, Decrease in Trade Payables Rs (4.85) Lakhs, Increa se in Other Current Liabilities Rs 3.12 Lakhs, Decrease in Short Term Provisions Rs (8.74) Lakhs. Our Cash generated from Operations was Rs 15.98 Lakhs in March 31, 2023. The adjustment of Direct Taxes paid was Rs (0.80) Lakhs.

Cash Flows from Investment Activities

For Financial Year Ended March 31, 2025

Net cash used in investing activities for the year ended March 31, 2025 was Rs (75.12) Lakhs. This was primarily due to purchase of property, plant and equipment of Rs (81.29) Lakhs, Interest Income and Other Income 6.17 Lakhs.

For Financial Year Ended March 31, 2024

Net cash used in investing activities for the year ended March 31, 2024 was Rs (112.28) Lakhs. This was primarily due to purchase of property, plant & equipment of Rs (112.28) Lakhs.

For Financial Year Ended March 31, 2023

Net cash used in investing activities for the year ended March 31, 2023 was Rs (10.63) Lakhs. This was primarily due to purchase of Property, Plant & Equipment of Rs (10.63) Lakhs.

Cash Flows from Financing Activities

For Financial Year Ended March 31, 2025

Net cash used in financing activities for the year ended March 31, 2025 was Rs (8.46) Lakhs, primarily due to Repayment of Long Term Borrowings Rs (5.98) Lakhs, Proceeds from Short Term Borrowings Rs 0.48 Lakhs, Interest Expense of Rs (2.96) Lakhs.

For Financial Year Ended March 31, 2024

Net cash generated from financing activities for the year ended March 31, 2024 was Rs 203.75 Lakhs, primarily due to Proceeds from Long Term Borrowings Rs 21.16 Lakhs, Proceeds from Short Term Borrowings Rs 4.52 Lakhs, Issue of Share Capital Rs 180.00 Lakhs, Interest Expense of Rs (1.93) Lakhs.

For Financial Year Ended March 31, 2023

Net cash generated from financing activities for the year ended March 31, 2023 was Rs 2.50 Lakhs, primarily due to Proceeds from Long Term Borrowings Rs 2.50 Lakhs.

Related Party Transactions

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relates to remuneration, salary, loan and Issue of Equity Shares. For further details of related parties kindly refer chapter titled "Financial Statement as Restated" beginning on page no 99 of this Draft Prospectus.

Financial Market Risk

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

Interest Rate Risk

We are currently exposed to interest to rate risks to the extent of outstanding loans. However, any rise in the future borrowings may increase the risk.

Effect of Inflation

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

Information required as per Item (11) (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent" . For further information on potential risks arising from certain nonrecurring or infrequent transactions, please refer to Risk Factor - ‘Any future unusual or infrequent events or transactions may adversely affect our financial performance. on page no 31 of this Draft Prospectus.

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

Our business has been subject to, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entit led Risk Factor no. 52. ‘If inflation rises in India, increased costs may result in a decline in the profits of our Company. Inflation rates in India have been volatile in recent years and such volatility may continue in the future. under chapter titled Risk Factor beginning on page no.31 of the Draft Prospectus. To our knowledge, except as we have described in the Draft Prospectus, there are no other known factors which we expect to bring about significant economic changes.

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.

Apart from the risks as disclosed in this Draft Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

For further information, please refer to Risk Factor ‘Changing laws, rules and regulations and legal uncertainties, including adverse application of corporate and tax laws, may adversely affect our business, results of operations, financial condition, and prospectus. on page no 31 of this Draft Prospectus.

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

Our Companys future costs and revenues will be determined by demand/supply situation, researches in technology, government policies and other economic factor.

For further information, please refer to Risk Factor - ‘Political, economic or other factors that are beyond our control may have an adverse effect on our business and results of operations. under chapter titled Risk Factor beginning on page no. 31 of the Draft Prospectus.

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

Other than as disclosed in this section and in "Our Business" on page no. 132 we have not announced and do not expect to announce in the near future any new business segments.

6. Total turnover of each major industry segment in which our Company operates

The Company is the manufacturer and supplier of aluminium extrusion products like aluminium railing and stainless steel glass railing products in India. Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page no 105 of the Draft Prospectus.

7. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.

8. Seasonality of business

Our Companys business is not seasonal in nature. Hence, our business is not subject to seasonality or cyclicality.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page nos. 105 and 132 respectively of this Draft Prospectus.

10. Details of material developments after the date of last balance sheet i.e., March 31, 2025.

After the date of last Balance sheet i.e., March 31, 2025, no material events have occurred after the last audited period.