Kalyani Cast-Tech Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our Financial Statements as Restated which is included in this Draft Red Herring Prospectus. The following discussion and analysis of our financial condition and results of operations is based on our Financial Statements as Restated, for the years ended March 31, 2023, 2022 and 2021 including the related notes and reports, included in this Draft Red Herring Prospectus is prepared in accordance with requirements of the Companies Act, 2013 and restated in accordance with the SEBI (ICDR) Regulations, 2018, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited statutory financial statements. Accordingly, the degree to which our Financial Statements as Restated will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.

This discussion contains forward looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these Forward-Looking Statements as a result of certain factors such as those described under chapters titled "Risk Factors" and "Forward Looking Statements" beginning on pages 28 and 22, respectively of this Draft Red Herring Prospectus.

Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

Our Company was originally incorporated on September 26, 2012 as a private limited Company under the name and style of "Kalyani Cast-Tech Private Limited" under the provisions of Companies Act, 1956 with the Registrar of Companies, National Capital Territory of Delhi & Haryana vide CIN U26990DL2012PTC242760. Pursuant to shareholders resolution passed at Extra Ordinary General Meeting held on 29th April, 2022, our Company was converted into a Public Limited Company and the name of the Company was changed to Kalyani Cast-Tech Limited vide a fresh Certificate of Incorporation dated June 03, 2022 issued by Registrar of Companies, Delhi. The Corporate Identification Number of our Company is U26990DL2012PLC242760.

Kalyani Cast-Tech Limited is a cargo container manufacturing Company. It manufactures a wide product range of castings, including finished components and are specialists in various types of cargo containers such as ISO containers 20, 25, 40, 42 and other special containers including dwarf containers, cuboid containers, special containers for parcel cargo and containers for two & three wheelers. With an unparalleled experience, technical know-how and a state-of-the- art manufacturing facility, Kalyani proves to be a reliable name for their clients. The company has adopted the no-bake system of moulding and having automatic sand plant starting from knock out, screening, cooling and mixing of sand.

Our Company, with its strong technical foundations and innovative excellence has had an eventful and successful journey. From the commissioning of first plant, we started pioneering breakthrough innovations in inline cargo in India. Within a span of almost a decade of operations, our organization has grown many folds and expanded in terms of product portfolio, manufacturing facility, inhouse designing and implementation excellence. As a result, we are able to have excellent clients list who are always happy with our professional services.

Our Company is led by Mr. Naresh Kumar, Promoter and Managing Director of the Company. He has worked in Indian Railways at lower and middle level of management. Designed and developed special containers for logistics industry including Indian Railways. Architecture for various innovative idea in multi modal viz running of double stack container trains and double stack dwarf container trains on IR network. Implemented use of FRP (Fiber Reinforced Plastic) flooring in containers for the first time in the world which is giving enhanced life with lower tare weights of containers.

Leading by example, our management is behind the tremendous progress achieved by our Company. With experience and knowledge of our professional managerial team, we have been able to grow in leaps and bounds. The strength of our company is converting any situation into an opportunity, thus moving ahead with strong spirit and enthusiasm.

Significant developments subsequent to the last financial year

In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the previous twelve months except:

> The company increased itss Authorised equity share capital from Rs.00,000/- to Rs.5,00,000/- vide resolution passed in its members meeting dated October 22, 2022.

> The Board of our Company has approved to raise funds through initial public offering in the Board meeting held on July 14, 2023.

> The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the extra ordinary general meeting held on July 17, 2023.

> Our Company was converted from a private limited company to public limited company vide resolution passed in its members meeting dated April 29th, 2022 and a fresh certificate of incorporation consequent to conversion was issued on June 03^rd, 2023 by the Registrar of Companies, Delhi bearing Corporate Identification Number U26990DL2012PLC242760.

Factors affecting our results of operations

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

1. Experienced Promoters and Management Team

2. Scalable Business Model

3. Large & Diverse Product Portfolio

4. Integrated Manufacturing Facility

5. Well Developed Distribution Network

6. Strong Sales, Marketing and Distribution Capabilities

7. Unique Brand Positioning

8. Quality Assurance & Control

The following table set forth certain key performance indicators for the years indicated:

Key Performance Indicators of our Company

Key Financial Performance	FY 2022-23	FY 2021-22	FY 2020-21
Revenue from operations(1)	6,327.01	4,945.34	1,120.01
EBITDA(2)	1,170.51	217.21	97.81
EBITDA Margin(3)	18.50%	4.39%	8.73%
PAT	803.79	117.33	35.36
PAT Margin(4)	12.70%	2.37%	3.16%
Networth(5)	1,424.10	620.22	502.89
RoE %(6)	78.64%	20.89%	7.68%
RoCE% (7)	67.56%	18.18%	5.60%

Notes:

(1)Revenue from Operations means the Revenue from Operations as appearing in the Restated Financial Statements

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income

(3) ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

(4) ‘pat Margin is calculated as PAT for the period/year divided by revenue from operations.

5 Net worth means the aggregate value of the paid-up share capital and reserves and surplus ofthe company less deferred tax assets.

(6)Return on Equity is ratio of Profit after Tax and Average Shareholder Equity

7 Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus long term borrowings.

Explanations for KPI Metrics

KPI	Explanation
Revenue from Operation	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business in key verticals
EBITDA	EBITDA provides information regarding the operational efficiency of the business
EBITDA Margin (%)	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
PAT	Profit after tax provides information regarding the overall profitability of the business
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of our business.
Net Worth	Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity.
RoE%	RoE provides how efficiently our Company generates profits from Shareholders Funds
RoCE%	ROCE provides how efficiently our Company generates earnings from the capital employed in the business.

STATEMENT OF SIGNIFICANT POLICIES

Corporate Information:

Kalyani Cast Tech Limited is now a "Public" company domiciled in India and incorporated on 26th day of September, 2012 under provisions of the Companies Act, 1956 applicable in India. Its authorized share Capital Rs. 7,15,00,000/- and paid-up share Capital is Rs. 5,01,45,000. The registered office of the Company is situated at B-144, 2nd Floor, DDA Shed, Okhla Industrial Area (O.I.A), Phase-1, Delhi-110020.

Kalyani Cast Tech Limited, a Company which was engaged in a business of Manufacturing of Container, Class of Foundry, Casting of Steel & Iron and Railway parts in India. At present, Company was mainly active in Container manufacturing like Cargo Containers, Double Stack Containers, Dwarf Containers, etc., and casting of Steel & Iron including finished components. It was actively working on improving its working ability, production and quality for strengthen & increase its market share with aim a to become leading company of India.

Note 1- Significant Accounting Policies:

1.1 Basis of preparation of financial statements

(a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company.

(b) The financial statements are prepared to comply in all material respects with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and provisions of Companies Act, 2013.

(c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialize.

1.2 Revenue Recognition

(a) Revenue is recognised to the extent that it is possible that, the economic benefits will flow to the company and the revenue can be reliably estimated and collectability is reasonably assured.

(b) Sales are recognized on accrual basis, and only after transfer of goods or services to the customer.

(c) Dividend on Investments are recognized on receipt basis.

(d) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

1.3 Property, Plant & Equipment and Intangible Assets & Depreciation

(a) Fixed Assets are stated at Cost less accumulated depreciation. The Company has capitalized all cost relating to the acquisition and installation of Fixed Assets.

(b) Depreciation is provided on Fixed Assets on Straight Line Method on the basis of Useful Life as prescribed under Part C of Schedule - II of the Companies Act, 2013.

(c) Cost of the fixed assets not ready for their intended use at the Balance Sheet date together with all related expenses are shown as Capital Work-in-Progress.

1.4 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the assets net selling price and value in use, which is determined by the present value of the estimated future cash flows.

1.5 Investments

Investments classified as long-term investments are stated at cost. Provision is made to recognize any diminution other than temporary in the value of such investments. Current investments are carried at lower of cost and fair value.

1.6 Inventories

Inventories consisting of Raw Materials, Finished Goods are valued at lower of cost and net realizable value.

1.7 Employee Benefits

(a) Defined Contribution Plan:

Contributions as per the Employees Provident Funds and Miscellaneous Provisions Act, 1952 towards provident fund and pension fund are charged to the Statement of Profit and Loss for the year when the contributions to the respective funds are due. There is no other obligation other than the contribution payable to the respective funds.

(b) Defined Benefit Plan:

Gratuity being unfunded and are provided based on actuarial valuation made at the end of each financial year using the projected unit credit method.

1.8 Borrowing Costs

(a) Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use.

(b) Other Borrowing costs are recognized as expense in the period in which they are incurred.

1.9 Taxes on Income

(a) Tax expense comprises of current tax and deferred tax.

(b) Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

(c) Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognized, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence

1.10 Earnings per Share (EPS)

(a) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

(b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.11 Prior Period Items

Prior Period and Extraordinary items and Changes in Accounting Policies having material impact on the financial affairs of the Company are disclosed in financial statements.

1.12 Provisions / Contingencies

(a) Provision involving substantial degree of estimation in measurements 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.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts.

1.13 Segment Reporting

A) Business Segments: Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the Company has only one reportable Business Segment, which is Sale of Goods and services relating to Containers, Foundary and Casting of Steel & Iron and Railway Parts. Accordingly, the figures appearing in these financial statements relate to the Companys single Business Segment.

B) Geographical Segments: The Company activities / operations are confined to India and as such there is only one geographical segment. Accordingly, the figures appearing in these financial statements relate to the Companys single geographical segment.

Discussion on Results of Operation

The following discussion on results of operations should be read in conjunction with the Restated Audited Financial Results of our Company for the year ended on March, 31 2023, 2022 and 2021.

Results of Our Standalone Operations

The following table sets forth select financial data from our financial statements as restated of profit and loss for the financial years ended on March 31, 2023, 2022 and 2021 the components of which are also expressed as a percentage of total revenue for such periods:

Particulars	For the year ended March 31, 2023	% of total income	For the year ended March 31, 2022	% Of total income	For the year ended March 31, 2021	% of total income
Revenue from Operations	6,327.01	99.85%	4,945.34	99.96%	1,120.01	98.66%
Other income	9.44	0.15%	1.78	0.04%	15.25	1.34%
Total Revenue (A)	6,336.46	100.00%	4,947.12	100.00%	1,135.26	100.00%
Expenses:
Cost of Material Consumed	5,212.04	82.25%	4,103.82	82.95%	1,365.58	120.29%
Changes in Inventories	-512.30	-8.08%	374.36	7.57%	-427.66	-37.67%
Employee benefits expense	103.32	1.63%	73.66	1.49%	38.59	3.40%
Other expenses	362.88	5.73%	178.08	3.60%	60.94	5.37%
Total Expenses (B)	5,165.94	81.53%	4,729.92	95.61%	1,037.45	91.38%
Earnings Before Interest, Taxes, Depreciation & Amortization(C=A-B)	1,170.51	18.47%	217.21	4.39%	97.82	8.62%
Finance costs (D)	17.76	0.28%	31.19	0.63%	27.33	2.41%
Depreciation and amortization expenses (E)	71.03	1.12%	60.53	1.22%	53.67	4.73%
Profit before exceptional items, extraordinary items and tax (F=C-D-E)	1,081.72	17.07%	125.49	2.54%	16.81	1.48%
Exceptional Items
CSR	-	0.00%	-	0.00%		0.00%
Prior period item- Depreciation for earlier years	-	0.00%	-	0.00%		0.00%
Profit before tax (F=C-D- E)	1,081.72	17.07%	125.49	2.54%	16.81	1.48%
Tax Expenses		0.00%		0.00%		0.00%
- Current Tax	278.97	4.40%	7.66	0.15%	-	0.00%
- Short/(Excess) Provision of Earlier Year		0.00%	-	0.00%	-	0.00%
MAT Credit Entitlement	-	0.00%	-		-	0.00%
- Deferred Tax	-1.04	-0.02%	0.50	0.01%	-18.55	-1.63%
Tax Expense for The Year (G)	277.93	4.39%	8.16	0.17%	-18.55	-1.63%
Profit after tax (H=F-G)	803.79	12.69%	117.33	2.37%	35.36	3.12%

Overview of Revenue and expenditure

Revenue and Expenditure

Total Revenue: Our total revenue comprises of revenue from operations and other income.

Revenue from operations: Our revenue from operations comprises of Sale of Products and Other Operating Revenue.

Other Income: Our other income comprises of Interest on Fixed Deposit, Interest on Security Deposits, Interest on Income Tax Refunds, Sundry Balances Written off and Foreign Exchange Fluctuations.

Expenses: Our expenses comprise of Cost of Operation, Employee Benefit Expenses, Finance Cost, Depreciation and Amortisation Expenses and Other Expenses.

Cost of Operations: Our Cost of Operations comprises of Purchase of Raw Materials, Change in inventory of Raw Materials and Manufacturing Expenses.

Change in Inventory of Raw Material and Finished Goods: Our change in inventories comprises of difference between opening and closing stock of inventory of Finished Goods and Work-in-progress.

Employee Benefit Expenses: Our employee benefit expense consists of Salaries and Wages, Bonus to Employees, Directors Remuneration, Contribution to ESI & EPF, Employee Welfare Expenses and Gratuity Expenses.

Finance Cost: Our finance costs comprise of Interest on Term Loan, Interest on CC Limit, Interest on Vehicle Loan and Interest on Unsecured Loan.

Depreciation and amortisation expenses: Tangible assets are depreciated over periods corresponding to their estimated useful lives. Depreciation includes depreciation charged on tangible and intangible assets.

Other expenses: Other expenses includes Auditors Remuneration, Bank Charges, Bad Debts, Business Promotion Expenses, Conveyance Expenses, Car Running & Maintenance Expenses, Donation, EDP Expenses, Factory License Expenses, Festival Expenses, Foreign Exchange Fluctuation (Loss), Freight & Carriage Outward, Generator Running & Maintenance, Inspection Charges, Insurance Expenses, Interest on TDS & TCS, Late Fees & Interest on GST, Late Fees on PF & ESI, Legal Expenses, Professional Fees, Material Rejected Fees, Miscellaneous Expenses, Registration Charges, Printing & Stationery Expenses, Prior Period Expenses, Radiography Expenses, Railway Recovering Expenses, Rent on Land, Plant & Machinery, Vehicle and Others, ROC Expenses, Statutory Payments (Under GST), Uniform Expenses, Warehouse Service Expenses, Website Expenses.

Exceptional Items: We do not have any Exceptional Items for the period under consideration.

Provision for Tax: Income taxes are accounted for in accordance with Accounting Standard - 22 on "Accounting for Taxes on Income" ("AS-22"), prescribed under the Companies (Accounting Standards) Rules, 2006. Our Company provides for current tax, as well as deferred tax, as applicable.

Provision for current taxes is made at the current tax rates after taking into consideration the benefits available to our Company under the provisions of the I. T. Act.

Deferred tax arises from the timing differences between book profits and taxable profits that originate in one period and are capable of reversal in one or more subsequent periods and is measured using the tax rates and laws applicable as of the date of the financial statements. Our Company provides for deferred tax asset / liability on such timing differences subject to prudent considerations in respect of deferred tax assets.

COMPARISON OF FY 2022-23 WITH FY 2021-22

Income

Total Revenue: Our total revenue increased by ^1,389.33 lakhs or 28.08% to Rs.6,336.46 Lakh for the financial year 202223 from Rs.4,947.12 Lakh for the financial year 2021-22 due to increase in Revenue from Operations and Other income.

Revenue from operations

Our revenue from operations is Rs.6,327.01 Lakhs for the financial year 2022-23 as compared to Rs.4,945.34 Lakhs for the financial year 2021-22 representing an increase of 27.94% on account of increase in sales due to expansion.

Other Income

Our Other Income was Rs.9.44 Lakhs for the financial year 2022-23 as compared to Rs.1.78 Lakhs for the financial year 2021-22 mainly due to increase in Interest on Fixed Deposit.

Expenses

Our total expenses excluding finance cost, depreciation and tax expenses is Rs.5,165.94 Lakhs for the financial year 202223 as compared to Rs.4,729.92 Lakhs for the financial year 2021-22 representing an increase of 9.22% due to the factors described below: -

Cost of Operations

Our Cost of Operations is Rs.5,212.04 Lakhs for the financial year 2022-23 as compared to Rs.4,103.82 Lakhs for the financial year 2021-22 representing an increase of 27.00% due to increase in purchases and manufacturing expenses.

Changes in Inventories of Stock-in-trade and Finished Goods

Our changes in inventories of stock-in-trade and finished goods is Rs. (512.30) Lakhs for the financial year 2022-23 as compared to Rs. 374.36 Lakhs for the financial year 2021-22 representing a change of (236.85)% due to increase in closing stock of finished goods and work-in-progress.

Employee benefits expenses

Our employee benefit expenses are Rs.103.32 Lakhs for the financial year 2022-23 as compared to Rs.73.66 Lakhs for the financial year 2021-22 representing an increase of 40.27% due to increase in Salaries & Wages, Bonus to Employees, Directors Remuneration, Contribution to ESI & EPF, Employee Welfare Expenses and Gratuity Expenses.

Finance costs

Our finance cost is Rs.17.76 Lakhs for the financial year 2022-23 as compared to Rs.31.19 Lakhs for the financial year 202122 representing a decrease of 43.06% due to decrease in principle borrowings amount and repayment of few loans.

Depreciation and amortization expense

Our depreciation increased by 17.36% to Rs.71.03 Lakhs for the financial year 2022-23 from Rs.60.53 Lakhs for the financial year 2021-22 due to wear and tear cost of additional assets purchased during the year.

Other expenses

Our other expenses increased by 103.77% to Rs.362.88 Lakhs for the financial year 2022-23 from Rs.178.08 Lakhs for the financial year 2021-22, which is 5.73% and 3.60% of the total revenue of respective years. The increase was mainly due to increase in Business Promotion Expenses, Car Running & Maintenance Expenses, Donations, Factory License Expenses, Foreign Exchange Fluctuation (Loss), Freight & Carriage Outward, Generator Running & Maintenance, Inspection Charges, Interest on TDS & TCS, Late Fees & Interest on GST, Late Fees on PF & ESI, Legal Expenses, Professional Fees, Miscellaneous Expenses, Registration Charges, Prior Period Expenses, Railway Recovering Expenses,

Rent on Land, Plant & Machinery, Vehicle and Others, ROC Expenses, Statutory Payments (Under GST), Uniform Expenses, Website Expenses which was partially set off against decrease in Bank Charges, Bad Debts, Conveyance Expenses, EDP Expenses, Festival Expenses, Insurance Expenses, Material Rejected Fees, Printing & Stationery Expenses, Radiography Expenses and Warehouse Service Expenses.

Exceptional Items

There are no exceptional items in F.Y 2022-23 and 2021-22.

Profit before tax

Our profit before tax increased by 761.98% to Rs.1081.72 Lakhs for the financial year 2022-23 from Rs.125.59 Lakhs for the financial year 2021-22. The increase was mainly due to increase in income and production of finished goods.

Tax expenses

Our tax expenses for the financial year 2022-23 amounted to Rs.277.93 Lakhs as against tax expenses of Rs.8.16 Lakhs for the financial year 2021-22. The net increase of Rs.269.77 is on account of increase in Current tax due to increase in profits which partially set off with Deferred Tax Assets.

Profit After Tax

Our profit after tax increased by 585.07% to Rs.803.79 Lakhs for the financial year 2022-23 from Rs.117.33 Lakhs for the financial year 2021-22, reflecting a net increase of Rs.690.62 Lakhs due increase in revenue and scale of operations.

COMPARISON OF FY 2021-22 WITH FY 2020-21

Income

Total Revenue: Our total revenue increased byRs.3,811.86 lakhs or 335.77 % lakh toRs.4947.12 Lakh for the financial year 2021-22 from Rs.1,135.26 Lakh for the financial year 2020-21 due to Revenue from Operations and Other incomes :

Revenue from operations

Our revenue from operations is Rs.4,945.34 Lakhs for the financial year 2021-22 as compared to Rs.1,120.01 Lakhs for the financial year 2020-21 representing a growth of 341.54 % on account of increase in sales due to expansion.

Other Income

Our Other Income was Rs.1.78 Lakhs for the financial year 2021-22 as compared to Rs.15.25 Lakhs for the financial year 2020-21 mainly due to decrease in Foreign Exchange Fluctuation Gain.

Expenses

Our total expenses excluding finance cost, depreciation and tax expenses is Rs.4,729.92 Lakhs for the financial year 202122 as compared to Rs.1,037.45 Lakhs for the financial year 2020-21 representing an increase of 355.92 % due to the factors described below:

Cost of Operations

Our Cost of operations is Rs.4,103.82 Lakhs for the financial year 2021-22 as compared to Rs.1,365.58 Lakhs for the financial year 2020-21 representing an increase of 200.52% due to increase in purchases and Manufacturing Cost.

Changes in Inventories

Our changes in inventories is Rs.374.36 Lakhs for the financial year 2021-22 as compared to Rs. (427.66) Lakhs for the financial year 2020-21 representing a change of (187.54)% due to decrease in closing stock of finished goods as a result of increased sales.

Employee benefits expenses

Our employee benefit expenses is Rs.73.66 Lakhs for the financial year 2021-22 as compared to Rs.38.59 Lakhs for the financial year 2020-21 representing an increase of 90.88 % due to increase in Salaries & Wages, Directors Remuneration, Contribution to ESI & PF, Gratuity Expenses and Employee Welfare Expenses.

Finance costs

Our finance cost is Rs.31.19 Lakhs for the financial year 2021-22 as compared to Rs.27.33 Lakhs for the financial year 202021 representing a decrease of 14.12 % due to decrease in principle borrowings amount and repayment of few loans.

Depreciation and amortization expense

Our depreciation increased by 12.78% to Rs.60.53 Lakhs for the financial year 2021 -22 from Rs.53.67 Lakhs for the financial year 2020-21 due to wear and tear cost of additional assets purchased during the year.

Other expenses

Our other expenses increased by 192.22% to Rs.178.08 Lakhs for the financial year 2021 -22 from Rs.60.94 Lakhs for the financial year 2020-21, which is 3.60% and 5.37% of the total revenue of respective years. The increase was mainly due to increase in Bank Charges, Bad Debts, Business Promotion Expenses, Conveyance Expenses, Car Running & Maintenance Expenses, EDP Expenses, Factory License Expenses, Festival Expenses, Foreign Exchange Fluctuation (Loss), Freight & Carriage Outward, Generator Running & Maintenance, Inspection Charges, Insurance Expenses, Late Fees & Interest on GST, Legal Expenses, Professional Fees, Material Rejected Fees, Printing & Stationery Expenses, Prior Period Expenses, Rent on Land, Plant & Machinery, Vehicle and Others, Statutory Payments (Under GST), Uniform Expenses, Website Expenses which was partially set off against decrease in Donation, Interest on TDS & TCS, Late Fees on PF & ESI, Miscellaneous Expenses, Registration Charges, Radiography Expenses, Railway Recovering Expenses, ROC Expenses and Warehouse Service Expenses.

Exceptional Items

There are no exceptional item in the financial year 2020-21 and 2021-22.

Profit before tax

Our profit before tax increased by 646.21 % to 125.49 Lakhs for the financial year 2021-22 from Rs.16.81 Lakhs for the financial year 2020-21. The increase was mainly due to increase in sales and expansion of business.

Tax expenses

Our tax expenses for the financial year 2021-22 amounted to Rs. 8.16 Lakhs as against tax expenses of Rs. (18.55) Lakhs for the financial year 2020-21. The net increase of Rs.26.71 Lakhs is on account of increase in Current tax which partially set off with Deferred Tax Asset.

Profit After Tax

Our profit after tax increased by 231.74% to Rs.117.33 Lakhs for the financial year 2021-22 from Rs.35.36 Lakhs for the financial year 2020-21, reflecting a net increase of Rs.81.96 Lakhs due to increase in sales and expansion of business post recovery from Covid-19 pandemic.

Changes in Cash Flows

The table below summaries our cash flows from our Restated Financial Statements for the financial years 2023, 2022 and 2021:

Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
Net cash (used in)/ generated from operating Activities	402.93	574.10	38.22
Net cash (used in)/ generated from investing Activities	(55.62)	(187.74)	(49.44)
Net cash (used in)/ generated from financing Activities	54.42	(259.86)	(21.75)
Net increase/ (decrease) in cash and cash Equivalents	401.73	126.50	(32.97)
Cash and Cash Equivalents at the beginning of the period	138.00	11.50	44.48
Cash and Cash Equivalents at the end of the Period	539.74	138.00	11.50

Operating Activities Financial year 2022-23

Our net cash used in operating activities was Rs. 402.93 Lakhs for the financial year ended March 31, 2023. Our operating profit before working capital changes was Rs.1166.99 Lakhs for the financial year 2022-23 which was primarily adjusted against increase in Inventories Rs.724.05, decrease in trade receivables by Rs.445.53 Lakhs, decrease in Long Term Loans & Advances by Rs.0.02 Lakhs, increase in Short Term Loans & Advances by ^71.51 Lakhs, increase in Other Current Assets by Rs.74.90 Lakhs, decrease in trade payables by Rs.157.82 Lakhs, decrease in other current liabilities by Rs.112.74 Lakhs which was further decreased by payment of Income Tax of Rs.68.58 Lakhs.

Financial year 2021-22

Our net cash used in operating activities was Rs.574.10 Lakhs for the financial year ended March 31, 2022. Our operating profit before working capital changes was Rs. 218.78 Lakhs for the financial year 2021-22 which was primarily adjusted against decrease in inventories by Rs.338.61 Lakhs, increase in trade receivables by Rs.374.21 Lakhs, decrease in Short Term Loans & Advances by Rs.15.85 Lakhs, decrease in Other Current Assets by Rs.43.08 Lakhs, increase in Long Term Loans & Advances by Rs.0.09 Lakhs, increase in trade payables by Rs.131.60 Lakhs and increase in other current liabilities by Rs.208.16 Lakhs which was further decreased by Income Tax of Rs.7.66 Lakhs.

Financial year 2020-21

Our net cash used in operating activities was Rs.38.22 Lakhs for the financial year ended March 31, 2020. Our operating profit before working capital changes was Rs.99.19 Lakhs for the financial year 2020-21 which was primarily adjusted against increase in inventories by Rs.1.43 Lakhs, decrease in trade receivables by Rs.82.05 Lakhs, increase in Short Term Loans & Advances Rs.24.53 Lakhs, decrease in Long term loans & advances by Rs. 12.06 Lakhs , decrease in Other Current Assets by Rs.23.11 Lakhs, decrease in trade payables by Rs.162.07 Lakhs and increase in other current liabilities by Rs.9.85 Lakhs..

Investing Activities Financial year 2022-23

Our net cash used in investing activities was Rs.55.62 Lakhs for the financial year 2022-23. These were on account of Purchase of Property, Plant & Equipment of Rs.45.16 Lakhs, expenditure incurred on Capital work in progress of Rs.19.87 Lakhs and Interest income Rs.9.41 Lakhs.

Financial year 2021-22

Our net cash used in investing activities was Rs.187.74 Lakhs for the financial year 2021-22. These were on account of Purchase of Property, Plant & Equipment of Rs.188.91 Lakhs and interest income of Rs.1.16 Lakhs.

Financial year 2020-21

Our net cash used in investing activities was Rs.49.44 Lakhs for the financial year 2020-21. These were on account of Purchase of Property, Plant & Equipment of Rs.49.44Lakhs.

Financing Activities

Financial year 2022-23

Net cash generated from financing activities for the financial year March 31, 2023 was Rs.54.42 Lakhs which was primarily on account of repayment of Long-Term Borrowings of Rs.38.18 Lakhs and Finance Cost of Rs. 17.76 Lakhs against increase in Short-Term Borrowings of Rs.110.36 lakhs.

Financial year 2021-22

Net cash used in financing activities for the financial year March 31, 2022 was Rs.259.86 Lakhs which was primarily on account of repayment of Short-Term Borrowings of Rs.185.35 Lakhs and Long-Term Borrowings of Rs. 43.31 Lakhs & Finance Cost of ^31.19 Lakhs.

Financial year 2020-21

Net cash used in financing activities for the financial year March 31, 2021 was Rs.21.75 Lakhs which was primarily on account of repayment of Short-Term Borrowings of Rs.49.44 Lakhs and Long-Term Borrowings of Rs.93.86 Lakhs and Finance Cost of Rs.27.33 Lakhs against proceeds from issue of shares of Rs.50.00 Lakhs.

Other Key Ratios

The table below summaries key ratios in our Restated Financial Statements for the financial years ended March 31, 2023, 2022 and 2021:

Particulars	For the year ended March 31, 2023	For the year ended March 31, 2022	For the year ended March 31, 2021
Fixed Assets Turnover Ratio	11.40	8.81	2.59
Current Ratio	2.32	1.36	1.54
Debt Equity Ratio	0.24	0.44	0.99
Inventory Turnover Ratio	9.65	8.45	52.35

Fixed Asset Turnover Ratio: This is defined as revenue from operations divided by total fixed assets based on Financial Statements as Restated.

Current Ratio: This is defined as current assets divided by current liabilities, based on Financial Statements as Restated.

Debt Equity Ratio: This is defined as total debt divided by total shareholder funds. Total debt is the sum of long-term borrowings, short-term borrowings including current maturities of long-term debt, based on Financial Statements as Restated.

Inventory Turnover Ratio: This is defined as average inventory divided by total turnover based on Financial Statements as restated.

Financial Indebtedness

As on March 31, 2023, the total outstanding borrowings of our Company is Rs. 342.05 Lakhs. For further details, refer to the chapter titled "Statement of Financial Indebtedness" beginning on page 169 of this Draft Red Herring Prospectus.

Particulars	For the year ended March 31, 2023
Loans from Banks & Financial Institutions	266.95
Unsecured Loans from Related Parties	75.10
Total	342.05

Related Party Transactions

Related party transactions with our promoters, directors and their entities and relatives primarily relate to purchase and sale of products and services. For further information, please refer to the chapter titled "Financial Statements as Restated" on page 155 of this Draft Red Herring Prospectus.

Off-Balance Sheet Items

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

Qualitative Disclosure about Market Risk

Financial Market Risks

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

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

Effect of Inflation

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

Credit Risk

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

Reservations, Qualifications and Adverse Remarks

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on page 155 of this Draft Red Herring Prospectus, there have been no reservations, qualifications and adverse remarks.

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

Except as disclosed in chapter titled "Financial Statements as Restated beginning on page 155 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

FACTORS THAT MAY AFFECT THE RESULTS OF THE OPERATIONS Unusual or infrequent events or transactions

There are no transactions or events, which in our best judgment, would be considered unusual or infrequent that have significantly affected operations of the Company.

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

There are no significant economic changes that materially affected Companys operations or are likely to affect income from continuing operations. Any slowdown in the growth of Indian economy or future volatility in global commodity prices, could affect the business including the future financial performance, shareholders funds and ability to implement strategy and the price of the Equity Shares.

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

Other than as disclosed in the chapter titled "Risk Factors" beginning on page 28 of this Draft Red Herring Prospectus to our knowledge, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

Future changes in relationship between costs and revenues in case of events such as future increase in labour or material cost or prices that will cause material change

According to our knowledge, there are no future relationship between cost and income that would be expected to have a material adverse impact on our operations and revenues. However, increase in the cost of the goods in which the Company deals, will affect the profitability of the Company. Further, the Company may not be able to pass on the increase in prices of the goods to the customers in full and this can be offset through cost reduction.

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

The increase in revenue is by and large linked to increase in volume of all the activities carried out by the Company. Total turnover of each major industry segment in which the Issuer Company operates

Our Company is primarily engaged in the business of manufacturing of containers and has manufacturing facilities in India and overseas. The Company primarily caters to the Indian market with customers overseas also.

Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 88 of this Draft Red Herring Prospectus.

Competitive Conditions

We have competition with Indian and international manufacturing companies and our results of operations could be affected by competition in the manufacturing industry in India and international market in the future. We expect competition to intensify due to possible new entrants in the market, existing competitors further expanding their operations and our entry into new markets where we may compete with well-established unorganized companies/ entities. This we believe may impact our financial condition and operations. For details, please refer to the chapter titled "Risk Factors" beginning on page 28 of this Draft Red Herring Prospectus.

Increase in Income

Increases in our income are due to the factors described above in in this chapter under "Factors Affecting Our Results of Operations" and chapter titled "Risk Factors" beginning on page 28 of this Draft Red Herring Prospectus.

Status of any Publicly Announced New Business Segments

Except as disclosed elsewhere in the Draft Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new business segments.