K. V. Toys India Ltd Management Discussions

OF FINANCIAL POSITION AND RESULTS OF OPERATIONS

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

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

BUSINESS OVERVIEW

Our Company was originally incorporated as a limited company under the Companies Act, 2013 in the name and style of ‘K. V. Toys India Limited vide certificate of incorporation dated April, 04, 2023, bearing Corporate Identification Number U32409MH2023PLC400074 issued by the Central Registration Centre on behalf of the jurisdictional Registrar of Companies. As a part of our business integration strategy, we have taken over the ongoing business of a sole proprietorship firm named M/s K. V. Impex of one of our Promoters, Ms. Namita Narang, through Business Transfer Agreement dated February 12, 2025, wherein assets and liabilities have been taken over by the company on a going concern basis with effect from January 31, 2025. M/s K. V. Impex was engaged in the business of contract manufacturing and sale of plastic moulded kids toys since 2009.

We are engaged in the business of contract manufacturing and sale of plastic-moulded and metal-based toys for children, covering both educational and recreational segments. Our diversified product portfolio includes friction-powered toys, soft bullet guns, ABS (Acrylonitrile Butadiene Styrene) toys, pull-back toys, battery-operated and electronic toys, press-and-go toys, die-cast metal vehicles, bubble toys, dolls, and other play-based products. We market several proprietary brands such as Alia & Olivia (doll range), Yes Motors (die-cast car range), Funny Bubbles (bubble toys), and Thunder Strike (soft bullet guns), each catering to specific segments of the childrens toy market.

We have consistently grown in terms of our revenues over the past years our revenues from operation were 7,395.12 lakhs in F.Y.2022-23 (KV Impex), 8,162.82 lakhs in the FY 2023-24 (KV Impex), 7,764.21 lakhs for the period ended January 31, 2025 (KV Impex), 6,285.77 (KV Toys) and 2,270.24 Lakhs for the Period from February 01, 2025 to March 31, 2025. Our Net Profit after tax for the above- mentioned periods are 201.06 lakhs, 319.12 lakhs and 105.12 lakhs, 324.72 lakhs and 131.03 lakhs respectively.

FINANCIAL KPIs OF THE COMPANY:

For Issuer Company (K. V. Toys India Limited)

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

Key Performance Indicator	For the period February 01, 2025 to March 31, 2025	For the period ended January 31, 2025	For the year ended March 31, 2024*
Revenue from Operations(1)	2,270.24	6,285.77	NA
Growth in Revenue from Operations (%)	NA	NA	NA
Total Income(2)	2,273.46	6,286.61	NA
EBITDA(3)	191.50	444.44	(14.28)
EBITDA Margin (%)(4)	8.42%	7.07%	NA
Restated Profit for the Year/Period(5)	131.03	324.72	(10.69)
Restated Profit for the Year/Period Margin (%)(6)	8.42%	5.17%	NA
Net Worth(7)	905.06	774.03	(0.69)
Return on Equity Ratio (8)	15.61%	83.98%	3098.55%
Return on Capital Employed(9)	5.92%	15.91%	(1.56%)
Debt-Equity Ratio(10)	2.52	2.61	(1,328.42)

*There was no business activity in FY 2024 under KV Toy; hence, the data for the said period has not been presented.

For erstwhile Proprietorship (KV Impex):

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

Key Performance Indicator	For the period ended January 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
Revenue from Operations(1)	7,764.21	8,162.82	7395.12
Growth in Revenue from Operations (%)	NA	10.38%	22.73%
Total Income(2)	7,770.47	8,184.33	7397.51
EBITDA(3)	232.06	532.06	394.89
EBITDA Margin (%)(4)	2.99%	6.50%	5.34%
Restated Profit for the Year/Period(5)	105.12	319.12	201.06
Restated Profit for the Year/Period Margin (%)(6)	1.35%	3.91%	2.72%
Net Worth(7)	995.26	1,422.81	325.95
Return on Equity Ratio (8)	10.56%	22.43%	61.68%
Return on Capital Employed(9)	22.20%	25.48%	25.02%
Debt-Equity Ratio(10)	NA	0.44	3.73

Notes:

1. Revenue from operations has been taken from the restated financial statements for the financial years/periods ended March 31, 2025, January 31, 2025, March 31, 2024 in case of Company (K. V. Toys India Limited) and for the financial years/periods ended January 31, 2025, March 31, 2024, March 31, 2023 in case of Proprietorship (K. V. Impex)

2. Total Income operations have been taken from the restated financial statements for the financial years/periods ended March 31, 2025, January 31, 2025, March 31, 2024 in case of Company (K. V. Toys India Limited) and for the financial years/periods ended January 31, 2025, March 31, 2024, March 31, 2023 in case of Proprietorship (K. V. Impex).

3. EBITDA for all the years is as disclosed in the restated financials for the financial years/periods ended March 31, 2025, January 31, 2025, March 31, 2024 in case of Company (K. V. Toys India Limited) and for the financial years/periods ended January 31, 2025, March 31, 2024, March 31, 2023 in case of Proprietorship (K. V. Impex)

4. EBITDA margin is calculated as EBITDA divided by total income.

5. Profit for the year/period has been taken from restated financial statements for the financial years/periods ended March 31, 2025, January 31, 2025, March 31, 2024 in case of Company (K. V. Toys India Limited) and for the financial years/periods ended January 31, 2025, March 31, 2024, March 31, 2023 in case of Proprietorship (K. V. Impex)

6. PAT margin is calculated as PAT divided by revenue from operations.

7. Net worth means aggregate value of the paid-up equity share capital and reserves & surplus has been taken from the restated financial statements for the financial years/periods ended March 31, 2025, January 31, 2025, March 31, 2024 in case of Company (K. V. Toys India Limited) and for the financial years/periods ended January 31, 2025, March 31, 2024, March 31, 2023 in case of Proprietorship (K. V. Impex).

8. Return on equity is calculated as Net profit after tax for the year/ period divided by average Net worth at the end of respective period/year for the K. V. Toys India Limited and Proprietors Capital in case of K. V. Impex.

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

10. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long-term and short-term borrowings. Total equity is the sum of share capital and reserves & surplus.

Explanation for the Key Performance Indicators:

KPIs	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of our business and in turn helps assess the overall financial performance of our Company and size of our business.
Total Income	Total Income is used by our management to obtain a comprehensive view of all income including revenue from operations and other income
EBITDA	EBITDA provides information regarding the operational efficiency of our business
EBITDA Margin	EBITDA Margin is an indicator of the operational profitability and financial performance of our business.
Net Profit for the Year	Net Profit for the year provides information regarding the overall profitability of our business
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of the Business
Net Worth	Net worth represents total shareholders funds including reserves and surplus
Return on Net Worth (in %)	Return on net worth is calculated as Restated profit for the year divided by Total net worth.
Return on Equity Ratio (%)	Return on equity provides how efficiently the Company generates profits from shareholders funds
Return on Capital Employed (in %)	Return on Capital Employed provides how efficiently our Company generates earnings from the capital employed in our business.
Debt-Equity Ratio (in times)	Debt- equity ratio is a gearing ratio which compares shareholders equity to company debt to assess our companys amount of leverage and financial stability.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL PERIOD

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

FACTORS AFFECTING OUR RESULT OF OPERATIONS

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

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

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

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

4. Ability to grow the business;

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

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

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

8. Ability to maintain relationships with vendor

9. Inability to successfully obtain registrations in a timely manner or at all; 10. General economic, political, and other risks that are out of our control;

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

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

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

14. Increase in price of raw materials and fuel cost

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

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The restated summary statement of assets and liabilities of the Company as at March 31, 2025, January 31, 2025, March 31, 2024 and the related restated summary statement of profits and loss and cash flows for the year/period ended March 31, 2025, January 31, 2025, March 31, 2024 (herein collectively referred to as ("Restated Summary Statements") have been compiled by the management from the audited Financial Statements of the Company for the year/period ended on March 31 2025, January 31, 2025, March 31, 2024 approved by the Board of Directors of the Company. Restated Summary Statements have been prepared to comply in all material respects with the provisions of Part I of Chapter III of the Companies Act, 2013 (the "Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") issued by SEBI and Guidance note on Reports in Companies Prospectuses (Revised 2019) ("Guidance Note"). Restated Summary Statements have been prepared specifically for inclusion in the offer document to be filed by the Company with the BSE in connection with its proposed SME IPO. The Companys management has recast the Financial Statements in the form required by Schedule III of the Companies Act, 2013 for the purpose of restated Summary Statements. The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles in India.

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of current non-current classification of assets and liabilities.

b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c) CURRENT & NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

(i) Assets:

An asset is classified as current when it satisfies any of the following criteria:

a) It is expected to be realised in, or is intended for sale or consumption in, the Companys normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is expected to be realised within 12 months after the reporting date; or

d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

(ii) Liabilities:

A liability is classified as current when it satisfies any of the following criteria:

a) It is expected to be settled in the Companys normal operating cycle;

b) It is held primarily for the purpose of being traded;

c) It is due to be settled within 12 months after the reporting date; or

d) The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

d) OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per the Companys normal operating cycle and other criteria set out above which are in accordance with the Schedule III to the Act. Based on the nature of services and the time between the acquisition of assets for providing of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current & non-current classification of assets and liabilities.

e) TAKEOVER OF PROPRIETORSHIP FIRM

The Company has acquired the business of a sole proprietorship concern as a going concern, including all its assets and liabilities. Such acquisition is accounted for by recording the assets and liabilities taken over at their respective carrying values as per the audited financial statements of the proprietorship, subject to adjustments, where necessary, to bring them in line with the accounting policies adopted by the Company. Any difference between the consideration paid and the net assets acquired is adjusted against Capital Reserve/Goodwill, as applicable. (Refer detailed disclosure in Annexure No. XLVI)

f) PROPERTY, PLANT & EQUIPMENT AND INTANGIBLE ASSETS

(i) Property, Plant & Equipment

All Property, Plant & Equipment are recorded at cost including taxes(Excluding recoverable in nature), duties, freight and other incidental expenses incurred in relation to their acquisition and bringing the asset to its intended use.

(ii) Intangible Assets

Intangible Assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any.

g) LEASES

Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of Profit and Loss on systematic basis over the lease term.

h) DEPRECIATION / AMORTISATION

Depreciation on fixed assets is calculated on a Written - Down value method using the rates arrived at based on the useful lives estimated by the management, or those prescribed under the Schedule II to the Companies Act, 2013. Individual assets cost of which doesnt exceed Rs. 5,000/- each are depreciated in full in the year of purchase.

Intangible assets including internally developed intangible assets are amortised over the year for which the company expects the benefits to accrue. Intangible assets are amortized on straight line method basis over 10 years in pursuance of provisions of AS-26.

i) INVENTORIES

Inventories comprises of Raw Material, Work-in-progress and Finished Goods. Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in, first-out principle. For the purpose of Work-in-progress and Finished Goods cost of inventory includes raw material cost (net of recoverable taxes), direct cost of conversion and proportionate allocation of indirect costs incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The provision for inventory obsolescence is assessed regularly based on estimated usage and shelf life of inventory.

j) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arms length transaction between knowledgeable, willing parties, less the costs of disposal. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of the recoverable value.

k) INVESTMENTS

Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis. Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment, determined individually for each investment. Cost of investments sold is arrived using average method.

l) FOREIGN CURRENCY TRANSLATIONS

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Any income or expense on account of exchange difference either on settlement or on translation at the balance sheet date is recognized in Profit & Loss Account in the year in which it arises.

m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are recognised in Statement of Profit and Loss in the period in which they are incurred.

n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement is 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. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

o) REVENUE RECOGNITION

Revenue is Recognised only when significant risk and rewards of ownership has been transferred to the buyer and it can be reliably measured and its reasonable to expect ultimate collection of it. Gross sales are of net trade discount, rebates, sales taxes and excise duties.

Revenue from services is recognized, when services have been performed as per terms of contract, amount can be measured and there is no significant uncertainty as to collection.

The Company adopts accrual concepts in preparation of accounts. Claims /Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

p) OTHER INCOME

Interest Income on fixed deposit is recognized on time proportion basis. Other Income is accounted for when right to receive such income is established.

q) TAXES ON INCOME

Income taxes are accounted for in accordance with Accounting Standard (AS-22) "Accounting for taxes on income", notified under Companies (Accounting Standards) Rules, 2021. Income tax comprises of both current and deferred tax. Current tax is measured on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using substantially enacted tax rates and tax regulations as of the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

r) CASH AND BANK BALANCES

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. Other Bank Balances are short-term balance ( with original maturity is more than three months but less than twelve months).

s) EARNINGS PER SHARE

Basic earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity share outstanding during the year. Diluted earning per share is computed by dividing the profit/ (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

t) EMPLOYEE BENEFITS

Defined Contribution Plan:

Contributions payable to the defined contribution plans are charged to the statement of profit and loss. Statutory requirements related to Provident fund and employees state insurance are applicable to company.

Defined Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service without any monetary limit. Vesting occurs upon completion of five years of service. Provision for gratuity has been made in the books as per actuarial valuation done as at the end of the year. Provision for gratuity is unfunded.

u) SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

RESULTS OF OUR OPERATIONS

Based on the Audited Restated Financial Statements of the Proprietorship (KV Impex).

(Amount in lakhs)

Particulars	For the period ended January 31, 2025 #	% of Total**	For the year ended 31st March, 2024	% of Total**	For the year ended 31st March, 2023	% of Total**
INCOME
Revenue from Operations	7,764.21	99.92%	8,162.82	99.74%	7,395.12	99.97%
Other Income	6.26	0.08%	21.51	0.26%	2.39	0.03%
Total Revenue (A)	7,770.47	100.00%	8,184.33	100.00%	7,397.51	100.00%
EXPENDITURE
Cost of Material Consumed	5,792.17	74.54%	6,809.78	83.21%	6,136.65	82.96%
Direct expenses	567.78	7.31%	622.70	7.61%	889.82	12.03%
Changes in Inventories of Work-In-Progress & Finished Goods	980.37	12.62%	(174.10)	(2.13%)	(313.46)	(4.24%)
Employee Benefits Expenses	102.77	1.32%	123.35	1.51%	77.16	1.04%
Finance Costs	77.73	1.00%	97.74	1.19%	121.30	1.64%
Depreciation & Amortisation Expenses	11.56	0.15%	10.05	0.12%	9.53	0.13%
Other Expenses	93.77	1.21%	265.17	3.24%	207.55	2.81%
Total Expenses (B)	7,626.15	98.14%	7,754.69	94.75%	7,128.55	96.36%
(C) Profit before tax (A B)	144.32	1.86%	429.64	5.25%	268.96	3.64%
(D) Tax Expense / (benefit)
(a) Current Tax Expense	36.95	0.48%	112.04	1.37%	68.33	0.92%
(b) Deferred Tax	2.25	0.03%	(1.52)	(0.02%)	(0.43)	(0.01%)
Net tax expense / (benefit)	39.20	0.50%	110.52	1.35%	67.90	0.92%
(E) Profit for the year (C D)	105.12	1.35%	319.12	3.90%	201.06	2.72%

**Total refers to Total Revenue

Components of our Profit and Loss Account

Income

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

Revenue from Operations

Revenue from operations constituted 99.92% of our total income for the period ended January 31, 2025, 99.74% and 99.97% for the financial year ended March 31, 2024 and March 31, 2023 respectively.

(Amount in Lakhs)

Particulars	For the year ended 31 March 2025	For the year ended 31 March 2024	For the year ended 31 March 2023
Sale of Goods	7,764.21	8,162.82	7,395.12
TOTAL	7,764.21	8,162.82	7,395.12

Other Income

Our other Income consists of Gain on foreign exchange fluctuation, Rent Income, Discount, Sundry balance written back and Miscellaneous income.

(Amount in Lakhs)

Particulars	For the year ended 31 March 2025	For the year ended 31 March 2024	For the year ended 31 March 2023
Gain on foreign exchange fluctuation	4.00	7.65	-
Rent On Moulds	1.16	3.06	1.72
Discount Received	0.28	-	0.67
Sundry balance written back	0.78	10.80	-
Miscellaneous income	0.04	-	-
TOTAL	6.26	21.51	2.39

Expenditure

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

Cost of Material Consumed

Our Cost of Material Consumed comprises of Purchases of Raw materials and Cost of raw material consumed.

Direct expenses

Our direct expenses comprise of Transportation and freight charges, Labour Charges, Custom Duty and import charges, Job work charges and Packing Charges.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries, Staff Welfare and Gratuity expense.

Finance costs

Our Finance cost expenses comprise of Interest Expenses and Bank Charges.

Other Expenses

Our other expenses primarily comprise of Auditors remuneration, Business Promotion Expenses, Repair & Maintenance Expense, Travelling & Conveyance, Rent expense, Rates & Taxes, Legal and Professional Charges, Office Expenses, Printing and Stationery, etc.

(Amount in Lakhs)

Particulars	For the period ended 31 January, 2025	For the year ended 31 March, 2024	For the year ended 31 March, 2023
Audit fees	1.00	0.75	0.75
Bad Debts written off	0.78	4.81	-
Internet and communication expense	1.53	0.57	0.36
Discount expense	0.15	18.53	23.46
Insurance Charges	5.04	14.62	0.08
Printing and Stationery	11.88	8.98	7.82
Legal and Professional Charges	10.98	11.17	5.30
Rent expense	15.00	38.10	34.88
Travelling Expenses	4.45	53.33	8.32
Loss on foreign Exchange Fluctuation	0.30	-	1.58
Courier Charges	3.77	16.04	2.25
Repair & Maintenance Expense	5.54	15.38	25.05
Membership Fees & Subscription charges	-	0.10	2.02
Rates & Taxes	-	0.63	4.90
Business promotion expense	15.15	28.49	-
Office expense	13.68	51.88	90.78
Fees & Subscription charges	4.52	1.79	-
TOTAL	93.77	265.17	207.55

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

For the period ended January 31, 2025

Revenue from Operations

The Revenue from operations of our company for the period ended January 31, 2025, was 7,764.21 Lakhs.

Other Income

The Other income of our company for the period ended January 31, 2025, was 6.26 Lakhs.

Total Revenue

The Total Revenue of our company for the period ended January 31, 2025, was 7,770.47 Lakhs.

Expenditure

Cost of Material Consumed

The Cost of Material Consumed of our company for the period ended January 31, 2025, was 5,792.17 Lakhs.

Direct expenses

The Direct expenses of our company for the period ended January 31, 2025, was 567.78 Lakhs.

Changes in Inventories of finished goods and work-in-progress

The Changes in Inventories of our company for the period ended January 31, 2025, was 980.37 Lakhs.

Employee Benefits Expenses

The Employee Benefits Expenses of our company for the period ended January 31, 2025, was 102.77 Lakhs.

Finance Costs

The Finance Cost of our company for the period ended January 31, 2025, was 77.73 Lakhs.

Depreciation & Amortisation Expenses

The Depreciation & Amortisation Expenses of our company for the period ended January 31, 2025, was 11.56 Lakhs.

Other Expenses

The Other Expenses of our company for the period ended January 31, 2025, was 93.77 Lakhs.

Profit before tax

The Profit before tax of our company for the period ended January 31, 2025, was 144.32 Lakhs.

Profit after tax

The Profit after tax of our company for the period ended January 31, 2025, was 105.12 Lakhs.

Fiscal 2024 compared with Fiscal 2023

Revenue from Operations

The Revenue from Operations of our company for Fiscal year 2024 was 8,162.82 Lakhs against 7,395.12 Lakhs for Fiscal year 2023. An increase of 10.38% in revenue from operations. The increase in revenue from operations was primarily driven by the addition of new Modern Trade (MT) parties to our distribution network and the continuous expansion of our product portfolio through the introduction of new SKUs. These initiatives enabled us to cater to a wider customer base, meet evolving consumer preferences, and enhance overall sales volumes, resulting in a 10.38% growth in revenue during Fiscal 2024 as compared to Fiscal 2023.

Other Income

The other income of our company for Fiscal year 2024 was 21.51 Lakhs against 2.39 for Fiscal year 2023. The increase of 800.00% in other income. The significant increase in other income during Fiscal 2024 was primarily on account of a sundry balance of 10.80 lakhs written back and foreign exchange gain of 7.65 lakhs. These one-time and incidental items contributed to the sharp rise of around 800% in other income as compared to Fiscal 2023.

Total Income

The total income of the company for Fiscal year 2024 was 8,184.33 Lakhs against 7,397.51 Lakhs of total income for Fiscal year 2023 with an increase of 10.64% in total income. This increase was primarily due to growth in revenue from operations driven by the addition of new Modern Trade (MT) parties and expansion of our product portfolio through the introduction of new SKUs, coupled with higher other income on account of sundry balance written back and foreign exchange gains.

Expenditure

Cost of Material Consumed

In Fiscal 2024, Cost of Material Consumed were 6,809.78 Lakhs against 6,136.65 Lakhs of cost of material consumed in Fiscal 2023. An increase of 10.97%. This increase was due to higher sales volumes to cater to the requirements of both Modern Trade and General Trade customers.

Direct Expenses

In Fiscal 2024, the Company incurred Direct expenses of 622.70 Lakhs against 889.82 Lakhs of Direct expenses in fiscal 2023. A decrease of 30.02%. This decrease was due to a reduction in job work charges. In Fiscal 2024, the Company began shifting from a job-work-based model to an OEM-based model, resulting in lower direct expenses. However, this shift also led to a corresponding increase in purchases.

Changes in Inventories of Work-In-Progress & Finished Goods

In Fiscal 2024, the Changes in Inventories amounted to (174.10) Lakhs against (313.46) Lakhs of changes in inventories in fiscal 2023.

Employee Benefit Expenses

In Fiscal 2024, the Company incurred employee benefit expenses of 123.35 Lakhs against 77.16 Lakhs expenses in fiscal 2023. An increase of 59.86%. The increase in employee benefit expenses during Fiscal 2024 was primarily due to expansion of operations, addition of new employees to support business growth, and higher compensation costs as compared to Fiscal 2023.

Finance Costs

The finance costs for the Fiscal 2024 were 97.74 Lakhs while it was 121.30 Lakhs for Fiscal 2023. A decrease of 19.42%. The decrease in finance costs during Fiscal 2024 was primarily due to repayment of borrowings availed in Fiscal 2023. During Fiscal 2023, the Company had raised borrowings to support working capital requirements arising from the onboarding of Modern Trade customers and to ensure smooth business operations. Upon realization of receivables, these borrowings were repaid, resulting in lower finance costs in Fiscal 2024..

Other Expenses

In fiscal 2024, our other expenses were 265.17 Lakhs and 207.55 Lakhs in fiscal 2023. An increase of 27.76%. The increase in other expenses during Fiscal 2024 was primarily due to higher business promotion activities, including participation in exhibitions, as well as increased travelling expenses related to product development initiatives and category expansion.

Profit before Tax

Our Company had reported a profit before tax for the Fiscal 2024 of 429.64 Lakhs against profit before tax of 268.96 Lakhs in Fiscal 2023. An increase of 59.74%. The increase in profit before tax during Fiscal 2024 was primarily due to higher revenue from operations driven by the addition of new Modern Trade customers and new SKUs, along with improved cost efficiencies, lower finance costs, and strategic management of direct and other expenses.

Profit after Tax

Profit after tax for the Fiscal 2024 were at 319.12 Lakhs against profit after tax of 201.06 Lakhs in fiscal 2023, An increase of 58.72%. The increase in profit after tax (PAT) during Fiscal 2024 was primarily due to higher profit before tax (PBT), which grew on account of increased revenue from operations driven by the addition of new Modern Trade customers and new SKUs, along with effective cost management, lower finance costs, and strategic control over direct and other expenses. The PAT growth of 58.72% mirrors the 59.74% increase in PBT, reflecting the overall improvement in the Companys operational and financial performance.

RESULTS OF OUR OPERATIONS

Based on the Audited Restated Financial Statements of the company (K. V. TOYS INDIA LIMITED).

(Amount in lakhs)

	FY 2024-25				FY 2023-24
Particulars	For the period ended from February 01, 2025 to March 31, 2025 #	% of Total**	For the Period ended January 31, 2025 $	% of Total**	For the period ended from April 04, 2023 to March 31, 2024	% of Total**
INCOME
Revenue from Operations	2,270.24	99.86%	6,285.77	99.99%	-	-
Other Income	3.22	0.14%	0.84	0.01%	-	-
Total Revenue (A)	2,273.46	100.00%	6,286.61	100.00%	-	-
EXPENDITURE
Cost of Material Consumed	2,130.10	93.69%	6,793.54	108.06%	-	-
Direct expenses	199.79	8.79%	251.83	4.01%	-	-
Changes in Inventories of Work-In- Progress & Finished Goods	(388.79)	(17.10%)	(1,563.67)	(24.87%)	-	-
Employee Benefits Expenses	44.29	1.95%	148.54	2.36%	-	-
Finance Costs	23.85	1.05%	11.32	0.18%	0.24	-
Depreciation & Amortisation Expenses	4.89	0.22%	0.34	0.01%	-	-
Other Expenses	92.36	4.06%	204.49	3.25%	14.04	-
Total Expenses (B)	2,106.49	92.66%	5,846.39	93.00%	14.28	-
(C) Profit before tax (A B)	166.97	7.34%	440.22	7.00%	(14.28)	-
(D) Tax Expense / (benefit)
(a) Current Tax Expense	43.56	1.92%	112.88	1.80%	-	-
(b) Deferred Tax	(7.62)	(0.34%)	2.62	0.04%	(3.59)	-
Net tax expense / (benefit)	35.94	1.58%	115.50	1.84%	(3.59)	-
(E) Profit for the year (C D)	131.03	5.76%	324.72	5.17%	(10.69)	-

# The financial information presented for the period from February 1, 2025 to March 31, 2025 represents the operations of K. V. TOYS INDIA LIMITED after the business takeover.

$ The financial information presented for the period up to January 31, 2025 represents the operations of the company before business takeover of K V Impex (Proprietorship).

** Total refers to Total Revenue

Components of our Profit and Loss Account

Income

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

Revenue from Operations

Revenue from operations constituted 99.86% of our total income for the period from February 01, 2025 to March 31, 2025, 99.99% for the period ended January 31, 2025 and NIL for the financial year ended March 31, 2024.

(Amount in Lakhs)

Particulars	For the Period from February 01, 2025 to March 31, 2025	For the Period ended January 31, 2025	For the period ended from April 04, 2023 to March 31, 2024
Sale of Goods	2,270.24	6,285.77	-
TOTAL	2,270.24	6,285.77	-

Other Income

Our other Income consists of Interest Income, Gain on foreign exchange fluctuation, Rent Income and Miscellaneous income.

(Amount in Lakhs)

Particulars	For the Period from February 01, 2025 to March 31, 2025	For the Period ended January 31, 2025	For the period ended from April 04, 2023 to March 31, 2024
Interest Income on fixed deposit	0.05	0.23	-
Gain Foreign Exchange Fluctuation	2.98	0.36	-
Miscellaneous Income	0.09	0.14	-
Rent On Moulds	0.10	0.11	-
TOTAL	3.22	0.84	-

Expenditure

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

Cost of Material Consumed

Our Cost of Material Consumed comprises of Purchases of Raw materials and Cost of raw material consumed.

Direct expenses

Our direct expenses comprise of Transportation charges, Labour Charges, Custom Duty and import charges, Job work charges, Mould Purchase and Packing Charges.

Employee Benefit Expenses

Our employee benefits expense comprises of Salaries, Directors Remuneration, Staff Welfare, Employer contribution to PF & ESIC, Staff Welfare Expenses and Gratuity expense.

Finance costs

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

Other Expenses

Our other expenses primarily comprise of Auditors remuneration, Repair & Maintenance Expense, Travelling & Conveyance, Rent expense, Rates & Taxes, Legal and Professional Charges, Office Expenses, Marketing Expense, Discount Expense, Printing and Stationery, etc.

(Amount in Lakhs)

Particulars	For the Period from February 01, 2025 to March 31, 2025	For the Period ended January 31, 2025	For the period ended from April 04, 2023 to March 31, 2024
Auditors Remuneration	0.25	1.25	0.20
Internet and communication charges	0.66	2.44	-
Insurance charges	0.80	6.71	-
Software charges	0.15	1.41
Printing and Stationery	5.92	8.22	-
Legal and Professional Charges	18.15	30.43	0.37
Rent expense	15.99	53.54	10.41
Travelling Expenses	4.67	16.70	-
Loss on Foreign Exchange Fluctuation	0.36	1.46	-
Postage and courier charges	1.01	1.55	-
Repair & Maintenance Expenses	2.06	1.11	-
Discount Expense	18.87	22.86	1.24
Rates & Taxes	-	-	0.32
Marketing Expense	10.13	17.48
Commission	-	12.63	1.00
Office Expenses	8.87	20.20	0.50
Subscription charges	4.47	6.50	-
Computer Expenses	-	-	-
Total	92.36	204.49	14.04

Provision for Tax

The provision for current taxation is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.

For the period ended from February 01, 2025 to March 31, 2025

Revenue from Operations

The Revenue from operations of our company for the period ended from February 01, 2025 to March 31, 2025 was 2,270.24 Lakhs.

Other Income

The Other income of our company for the period ended from February 01, 2025 to March 31, 2025 was 3.22 Lakhs.

Total Revenue

The Total Revenue of our company for the period ended from February 01, 2025 to March 31, 2025 was 2,273.46 Lakhs.

Expenditure

Cost of Material Consumed

The Cost of Material Consumed of our company for the period ended from February 01, 2025 to March 31, 2025 was 2,130.10 Lakhs.

Direct expenses

The Direct expenses of our company for the period ended from February 01, 2025 to March 31, 2025 was 199.79 Lakhs.

Changes in Inventories of Work-In-Progress & Finished Goods

The Changes in Inventories of our company for the period ended from February 01, 2025 to March 31, 2025 was (388.79) Lakhs.

Employee Benefits Expenses

The Employee Benefits Expenses of our company for the period ended from February 01, 2025 to March 31, 2025 was 44.29 Lakhs.

Finance Costs

The Finance Cost of our company for the period ended from February 01, 2025 to March 31, 2025 was 23.85 Lakhs.

Depreciation & Amortisation Expenses

The Depreciation & Amortisation Expenses of our company for the period ended from February 01, 2025 to March 31, 2025 was 4.89 Lakhs.

Other Expenses

The Other Expenses of our company for the period ended from February 01, 2025 to March 31, 2025 was 92.36 Lakhs.

Profit before tax

The Profit before tax of our company for the period ended from February 01, 2025 to January 31, 2025 was 166.97 Lakhs.

Profit after tax

The Profit after tax of our company for the period ended from February 01, 2025 to January 31, 2025 was 131.03 Lakhs.

For the period ended January 31, 2025

Revenue from Operations

The Revenue from operations of our company for the period ended January 31, 2025 was 6,285.77 Lakhs.

Other Income

The Other income of our company for the period ended January 31, 2025 was 0.84 Lakhs.

Total Revenue

The Total Revenue of our company for the period ended January 31, 2025 was 6,286.61 Lakhs.

Expenditure

Cost of Material Consumed

The Cost of Material Consumed of our company for the period ended January 31, 2025 was 6,793.54 Lakhs.

Direct expenses

The Direct expenses of our company for the period ended January 31, 2025 was 251.83 Lakhs.

Changes in Inventories

The Changes in Inventories of our company for the period ended January 31, 2025 was (1,563.67) Lakhs.

Employee Benefits Expenses

The Employee Benefits Expenses of our company for the period ended January 31, 2025 was 148.54 Lakhs.

Finance Costs

The Finance Cost of our company for the period ended January 31, 2025 was 11.32 Lakhs.

Depreciation & Amortisation Expenses

The Depreciation & Amortisation Expenses of our company for the period ended January 31, 2025 was 0.34 Lakhs.

Other Expenses

The Other Expenses of our company for the period ended January 31, 2025 was 204.49 Lakhs.

Profit before tax

The Profit before tax of our company for the period ended January 31, 2025 was 440.22 Lakhs.

Profit after tax

The Profit after tax of our company for the period ended January 31, 2025 was 324.72 Lakhs.

Cash Flows

Based on the Audited Restated Financial Statements of the K V Impex.

(Amount in lakhs)

Particulars	For the period ended January 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
Net Cash Flow from / (used in) Operating Activities	1,500.32	(86.19)	207.44
Net Cash Flow from / (used in) Investing Activities	(86.59)	(11.83)	(8.27)
Net Cash Flow from / (used in) Financing Activities	(1,234.73)	97.07	(202.00)

Cash Flows from Operating Activities

1. In the period ended January 31, 2025, Net Cash Flow from Operating Activities was 1,500.32 Lakhs. This comprised of the net profit before tax of 144.32 Lakhs, which was primarily adjusted for Interest expense of 76.18 Lakhs, Gratuity provision of 1.14 Lakhs, Sundry balances written back of 0.78 Lakhs, Bad debts written off of 0.78 Lakhs, and Depreciation and Amortisation expense of 11.56 Lakhs. The resultant Operating Profit before Working Capital Changes was 233.20 Lakhs, which was mainly adjusted for a decrease in Loans and Advances of 336.31 Lakhs, Inventories of 1,197.19 Lakhs, and Trade Receivables of 656.31 Lakhs, Other Assets of 0.40 Lakhs. Additionally, there was a decrease in Trade Payables of 900.28 Lakhs and an increase in Other Current Liabilities & Provisions of 128.01 Lakhs.

Cash generated from operations was 1,651.14 Lakhs, which was further reduced by Income Tax paid of 150.82 Lakhs, resulting in a net cash flow from operating activities of 1,500.32 Lakhs.

2. In Fiscal 2024, Net Cash used in Operating Activities was 86.19 Lakhs. This comprised of the net profit before tax of 429.64 Lakhs, which was primarily adjusted for Interest expense of 92.37 Lakhs, Gratuity provision of 7.35 Lakhs, Unrealised foreign exchange gain of 0.30 Lakhs, Sundry balances written back of 10.80 Lakhs, Bad debts written off of 4.81 Lakhs, and Depreciation and Amortisation expense of 10.05 Lakhs. The resultant Operating Profit before Working Capital Changes was 533.12 Lakhs, which was mainly adjusted for an increase in Loans and Advances of 169.10 Lakhs, Inventories of 289.54 Lakhs, and Trade Receivables of 385.83 Lakhs. Additionally, there was an increase in Trade Payables of 327.81 Lakhs and a decrease in Other Current Liabilities & Provisions of 11.85 Lakhs.

Cash generated from operations was 4.61 Lakhs, which was further reduced by Income Tax paid of 90.80 Lakhs, resulting in a net cash used in operating activities of 86.19 Lakhs.

3. In Fiscal 2023, Net Cash Flow from Operating Activities was 207.44 Lakhs. This comprised of the net profit before tax of 268.96 Lakhs, which was primarily adjusted for Interest expense of 116.40 Lakhs, Gratuity provision of 3.80 Lakhs and Depreciation and Amortisation expense of 9.53 Lakhs. The resultant Operating Profit before Working Capital Changes was 398.69 Lakhs, which was mainly adjusted for an increase in Loans and Advances of 141.06 Lakhs, Inventories of 327.07 Lakhs, and along with a decrease in Trade Receivables of 175.92 Lakhs, Other Assets of 7.62 Lakhs. Additionally, there was an increase in Trade Payables of 198.75 Lakhs and Other Current Liabilities & Provisions of 25.21 Lakhs.

Cash generated from operations was 338.07 Lakhs, which was further reduced by Income Tax paid of 130.63 Lakhs, resulting in a net cash flow from operating activities of 207.44 Lakhs.

Cash Flows from Investment Activities

1. For the period ended January 31, 2025, net cash used in investing activities was 86.59 Lakhs, which comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of 86.59 Lakhs.

2. For the year ended March 31, 2024, net cash used in investing activities was 11.83 Lakhs, which comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of 11.83 Lakhs.

3. For the year ended March 31, 2023, net cash used in investing activities was 8.27 Lakhs, which comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of 8.27 Lakhs.

Cash Flows from Financing Activities

1. For the period ended January 31, 2025, Net cash used in financing activities was 1,234.73 Lakhs, which primarily comprised of partly offset by repayment of borrowings of 627.95 Lakhs, Withdrawal from proprietors capital account of 532.66 Lakhs and interest paid of 74.12 Lakhs.

2. For the year ended March 31, 2024, Net cash flow from financing activities was 97.07 Lakhs, which primarily comprised of proceeds from borrowings of 284.03 Lakhs and Receipts from proprietors capital account 777.74 Lakhs, partly offset by repayment of borrowings of 872.38 Lakhs and interest paid of 92.32 Lakhs.

3. For the year ended March 31, 2023, Net cash used in financing activities was 202.00 Lakhs, which primarily comprised of Proceeds from Borrowings of 773.36 Lakhs, partly offset by repayment of borrowings of 832.17 Lakhs, Withdrawal from proprietors capital account of 26.80 Lakhs and interest paid of 116.40 Lakhs.

Based on the Audited Restated Financial Statements of the K.V. Toys India Limited.

Particulars	For the period from February 01, 2025 to March 31, 2025	For the period ended January 31, 2025	For the period ended from April 04, 2023 to March 31, 2024
Net Cash Flow from / (used in) Operating Activities	(250.76)	(1,563.43)	(13.51)
Net Cash Flow from / (used in) Investing Activities	178.63	(3.70)	(890.00)
Net Cash Flow from / (used in) Financing Activities	253.64	1,548.10	926.61

Cash Flows from Operating Activities

1. For the period from February 01, 2025 to March 31, 2025, Net Cash used in Operating Activities was 250.76 Lakhs. This comprised of the net profit before tax of 166.97 Lakhs, which was primarily adjusted for Interest expense of 19.64 Lakhs, Gratuity provision of 0.44 Lakhs, Interest income of 0.05 Lakhs, Unrealised Realised Forex Exchange Gain of 0.48 Lakhs, and Depreciation and Amortisation expense of 4.89 Lakhs. The resultant Operating Profit before Working Capital Changes was 191.41 Lakhs, which was mainly adjusted for an increase in Loans and Advances of 193.38 Lakhs, Inventories of 416.47 Lakhs, and decrease in Trade Receivables of 491.60 Lakhs, increase in Other Assets (Including Other Bank Balances) of 7.63 Lakhs. Additionally, there was a decrease in Trade Payables of 143.95 Lakhs and Other Current Liabilities & Provisions of 124.93 Lakhs.

Cash used in operations was 203.35 Lakhs, which was further reduced by Income Tax paid of 47.41 Lakhs, resulting in a net cash used in operating activities of 250.76 Lakhs.

2. For the period ended January 31, 2025, Net Cash used in Operating Activities was 1,563.43 Lakhs. This comprised of the net profit before tax of 440.22 Lakhs, which was primarily adjusted for Interest expense of 3.88 Lakhs, Gratuity provision of 4.09 Lakhs, Interest income of 0.23 Lakhs, Unrealised foreign exchange gain of 0.36 Lakhs and Depreciation and Amortisation expense of 0.34 Lakhs. The resultant Operating Profit before Working Capital Changes was 447.94 Lakhs, which was mainly adjusted for an increase in Loans and Advances of 318.44 Lakhs, Inventories of 1,794.07 Lakhs, and Trade Receivables of 1,385.40 Lakhs and increase in Other Assets (Including Other Bank Balances) of 25.82 Lakhs. Additionally, there was an increase in Trade Payables of 1,572.82 Lakhs and a increase in Other Current Liabilities & Provisions of 19.95 Lakhs.

Cash used in operations was 1,483.02 Lakhs, which was further reduced by Income Tax paid of 80.41 Lakhs, resulting in a net cash used in operating activities of 1,563.43 Lakhs.

3. For the Period ended from April 04, 2023 to March 31, 2024, Net Cash used in Operating Activities was 13.51 Lakhs. This comprised of the net loss before tax of 14.28 Lakhs, which was adjusted for increase in Loans and Advances of 0.77 Lakhs. Additionally, there was an increase in Trade Payables of 1.23 Lakhs and Other Current Liabilities & Provisions of 0.31 Lakhs, resulting in a net cash used in operating activities of 13.51 Lakhs.

Cash Flows from Investment Activities

1. For the period from February 01, 2025 to March 31, 2025, net cash generated from investing activities was 178.63 Lakhs, which comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of 1.03 Lakhs and Net Amount Received towards takeover of KV Impex (Net of Cash & Cash Equivalents Acquired) of 179.66 Lakhs.

2. For the period ended January 31, 2025, net cash used in investing activities was 3.70 Lakhs, which comprised of cash outflow in Purchase of property, plant & equipment and intangible assets of 3.70 Lakhs.

3. For the Period ended from April 04, 2023 to March 31, 2024, net cash used in investing activities was 890.00 Lakhs, which comprised of cash outflow in Payment towards takeover of KV Impex (Net of Cash & Cash Equivalents Acquired) of 890.00 Lakhs.

Cash Flows from Financing Activities

1. For the period from February 01, 2025 to March 31, 2025, Net cash flow from financing activities was 253.64 Lakhs, which primarily comprised of proceeds from borrowings of 263.25 Lakhs, partly offset by interest paid of 9.61 Lakhs.

2. For the period ended January 31, 2025, Net cash flow from financing activities was 1,548.10 Lakhs, which primarily comprised of proceeds from borrowings of 1,650.93 Lakhs, partly offset by repayment of borrowings of 100.00 Lakhs and interest paid of 2.83 Lakhs.

3. For the Period ended from April 04, 2023 to March 31, 2024, Net cash flow from financing activities was 926.61 Lakhs, which primarily comprised of Proceeds from Borrowings of 1,001.61 Lakhs and Fresh shares issued during the year/ period of 10.00 Lakhs, partly offset by repayment of borrowings of 85.00 Lakhs.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except COVID-19 or any such kind of pandemic and as described in this Draft Red Herring Prospectus, there have been no other events or transactions to the best of our knowledge which may be described as "unusual" or "infrequent".

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

Other than as described in the Section titled "Financial Information" and chapter titled "Managements Discussion and Analysis of Financial Conditions and Results of Operations," beginning on Page 171 and 176 respectively of this Draft Red Herring Prospectus, to our knowledge there are no significant economic changes that materially affected or are likely to affect income from continuing Operations.

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

Apart from the risks as disclosed under Chapter titled "Risk Factors" beginning on page 33 in this Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

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

Our Companys future costs and revenues will be determined by demand/supply situation, both of the end services as well as the government policies and other economic facto

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

Increases in revenues are by and large linked to increases in volume of business and also dependent on the price realization on our products/services.

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

Relevant Industry data and, as available, has been included in the chapter titled "Industry Overview" beginning on page 96 of this Draft Red Herring Prospectus.