Kanishk Aluminium India Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our restated financial information as of and for the period ended August 31, 2025 and financial years ended March 31, 2025, 2024 and 2023, all prepared in accordance with the Companies Act and Indian GAAP and restated in accordance with the SEBI ICDR Regulations, including the schedules, annexures and notes thereto and the reports thereon, included in the section titled

-Restated Financial Statements beginning on page 200. Unless otherwise stated, the financial information used in this section is derived from the Restated Financial Statements of our Company.

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 set forth in the sections titled "Risk Factors" and "Forward-Looking Statements" starting on pages 22 and 15 respectively.

These financial statements have been prepared in accordance with Indian GAAP and the Companies Act. Indian GAAP differs in certain significant respects from U.S. GAAP, IFRS and Ind AS. We have neither attempted to quantify the impact of IFRS or U.S. GAAP on the financial data included in this Prospectus nor do we provide a reconciliation of our financial statements to those under U.S. GAAP or IFRS or Ind AS. Accordingly, the degree to which the Indian GAAP financial statements included in this Prospectus will provide meaningful information is entirely dependent on the reader s level of familiarity with the Companies Act, Indian GAAP and the SEBI ICDR Regulations. Any reliance on the financial disclosure in this Prospectus, by persons not familiar with Indian Accounting Practices, should accordingly be limited.

References to the "Company", "we", "us" and "our" in this chapter refer to Kanishk Aluminium India Limited, as applicable in the relevant fiscal period, unless otherwise stated.

Note: some of the statements in the Chapter describing our objectives, outlook, estimates, expectations or prediction may be the "Forward Looking Statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions that may be affecting demand/supply and price conditions, changes in Government Regulations, Tax Laws and other Statutes, geo political limitations, conditions & sanctions which may affect to business and incidental factors.

OVERVIEW OF OUR BUSINESS

We specialize in manufacturing a comprehensive range of aluminium extrusion products, including solid & hollow section profiles, solar profiles, railings, heatsinks and sliding/ fixed windows and doors profiles. Our products serve a diverse array of industries, such as electronics, automotive, mechanical, solar, furniture, transport, electrical, and architecture industries in India. The Company has manufacturing unit located in Jodhpur, Rajasthan, spans approximately 4,000 square meters. This facility is dedicated to producing precision aluminum extrusions according to the industry standards. The various variety of dies used in manufacturing are custom-made and owned by our Company. The main raw material is aluminium-based metal scrap, which it we source from domestic markets. Additionally, for Baari by Kanishk, we have established an experience centre in the heart of Jodhpur, providing customers with direct access to explore our premium offerings.

DISCUSSION OF RESULT OF OPERATION

As a result of the various factors discussed above that affect our income and expenditure, our results of operations may vary from period to period. The following table sets forth certain information with respect to our results of operations for the period August 31, 2025 and Fiscal Years 2025, 2024 and 2023 as derived from our restated financial statements:

Brief Key Financials of our Company:

( In Lakhs unless otherwise stated)

		As of and for the FY
Particular	August 31 2025	2025	2024	2023
Revenue from Operations (a)	2,917.97	5,978.22	5,930.46	5,915.96
Other Income (b)	7.38	35.00	23.43	52.29
Total Income(c)	2,925.35	6,013.22	5,953.89	5,968.25
EBITDA (d)	407.94	663.31	449.81	406.05
EBITDA Margin (%)(e)*	33.55	11.10	7.58	6.86
Profit After Tax (PAT)	214.83	304.13	152.29	176.37
PAT Margin (%) (f)*	17.62	5.09	2.56	2.96
Net worth (g)	1,872.02	1,657.20	1,353.07	600.78
Total Debt	2,555.44	2,273.96	2,084.45	2,644.59
Return on Equity (ROE) (%) (h)*	29.21	20.21	15.59	34.41
Return on Capital Employed (RoCE) (%)(i)*	19.92	14.61	10.95	10.78
EPS (in Rs.) (j)*	5.47	3.22	1.92	2.25
Book Value per Share (in Rs.) (k)	19.83	17.56	22.93	12.26
Debt To Equity Ratio (l)	1.37	1.37	1.54	4.40

Note: The above details have been confirmed by our Statutory Auditors, Mahaveer Gandhi and Associates, Chartered Accountants, vide their Certificate dated December 22, 2025

*Annualised

Note:

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

b) Other Income means the business income other than Revenue from Operations as appearing in the Restated Financial Statements.

c) Total Income refers to Revenue from Operations + Other Income.

d) EBITDA refers to earnings before interest, taxes, depreciation, amortization, gain or loss from discontinued operations and exceptional items. EBITDA is calculated as Profit before tax + Depreciation + Interest Cost

e) EBITDA Margin refers to EBITDA during a given period as a percentage of revenue from operations during that period.

f) PAT Margin i.e. Net Profit Ratio during a given period as a percentage of revenue from operations during that period. This margin quantifies our efficiency in generating profits from our revenue.

g) Net worth means the aggregate value of the paid-up share capital and reserves and surplus minus deferred expenses.

h) Return on equity (ROE) is profit after tax for the year divided by the average net worth during that period and is expressed as a percentage.

i) RoCE (Return on Capital Employed) is calculated as Earnings Before Interest and Tax (EBIT) (i.e., Profit before tax + Interest) divided by capital employed, which is defined as (Tangible net worth + total debt + Deferred tax liability).

j) EPS (Earning Per Share) is calculated as PAT divided by weighted average no. of Equity Shares .

k) Book Value per Share is calculated as net worth divided by no. of Equity Shares

l) Debt to Equity or Leverage ratio is calculated by dividing the debt by net worth.

Our Strengths:

Some of the qualitative factors and our strengths which form the basis of Issue Price are:

Diverse Product Portfolio

Ability to provide customized solutions tailored to client specifications

Stringent quality control mechanism ensuring standardized product quality

Strong knowledge and expertise of Senior management team

Strong existing client relationship

Prepared to grow and reap benefit of available huge potentials available in aluminum product end-users sectors.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section entitled "Risk Factors" starting on page 22. The following are certain factors that have been, and we expect will continue to have, a significant effect on our financial condition and results of operations:

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

Economy‘s changes in laws and regulations that apply to the industry;

Increasing competition in the industry;

Company‘s inability to successfully implement its future growth plans;

Our ability to retain our key clients;

Fluctuation in raw material price and our ability to pass it to the customers;

Our ability to retain our key managerial persons and other employees.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies have been applied consistently to the periods presented in the Restated Financial Statements. For details of our significant accounting policies, please refer section titled "Restated Financial Statements" starting 200.

RESULTS OF OUR OPERATIONS

As a result of the various factors discussed above that affect our income and expenditure, our results of operations may vary from period to period. The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of Company for the period ended August 31, 2025 and Fiscal 2025, 2024 and 2023:

(Amount in lakhs)

Particulars	For period ended August 31, 2025		Financial Year 2025		Financial Year 2024		Financial Year 2023
	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income
Revenue from Operations	2,917.97	99.75%	5,978.22	99.42%	5,930.46	99.61%	5,915.96	99.12%
Other Income	7.38	0.25%	35.00	0.58%	23.43	0.39%	52.29	0.88%
Total Income	2,925.35	100.00%	6,013.22	100.00%	5,953.89	100.00%	5,968.25	100.00%
Expenditure
Operating expenses	2,251.08	76.95%	4,908.09	81.62%	5,115.53	85.92%	5,170.23	86.63%
Employee Benefits expenses	93.92	3.21%	127.30	2.12%	71.45	1.20%	55.19	0.92%
Finance costs	86.59	2.96%	172.61	2.87%	209.65	3.52%	177.33	2.97%
Depreciation and Amortization expenses	31.06	1.06%	73.56	1.22%	64.35	1.08%	49.66	0.83%
Other Expenses	171.36	5.86%	311.53	5.18%	313.07	5.26%	330.30	5.53%
Total Expenses	2,634.01	90.04%	5,593.10	93.01%	5,774.05	96.98%	5,782.72	96.89%
Profit /(Loss) before tax	291.34	9.96%	420.12	6.99%	179.84	3.02%	185.53	3.11%
Tax expense:
- Current Tax	70.89	2.42%	95.53	1.59%	7.49	0.13%	0.02	0.00%
- Deferred Tax	5.62	0.19%	20.47	0.34%	20.06	0.34%	19.66	0.33%
-Short/Excess Provision of last year	-	-	-	-	-	0.00%	(10.52)	-0.18%
Net Tax expenses	76.51	2.62%	116.00	1.93%	27.55	0.46%	9.16	0.15%
Profit/(Loss) after tax	214.83	7.34%	304.13	5.06%	152.29	2.56%	176.37	2.96%

PRINCIPAL COMPONENTS OF OUR STATEMENT OF PROFIT AND LOSS ACCOUNT

Total Income

Our Total Income for period ended August 31, 2025 and financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, were amounting to 2,925.35, 6,013.22, 5,953.89 lakh, and 5,968. 25 lakh respectively. Following is the break-up of our total income for period ended August 31, 2025 and Fiscal 2025, 2024 and 2023

Our revenue comprises of:

Revenue from Operations

Our revenue from operations consists of revenue from aluminium extrusion products, including Aluminium facade solutions for modern architectural designs, Aluminium Profiles for Solar Panels, railings profile and sliding/ fixed windows profile and doors profiles, Profiles for medical equipment, Engineering Automation structure profiles, Aluminium Car Body Parts etc. Our revenue from operations as a percentage of total income was 99.75%, 99.42%, 99.61% and 99.12%, for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Other Income

Our other income mainly comprises of Duty drawback, insurance claim, Discount received, foreign exchange gain and Cartage income, as a percentage of total income was 0.25%, 0.58%, 0.39% and 0.88% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Total Expenses

Our total expenses comprise mainly Operating expense, Employee Benefits Expenses, Finance Costs and Depreciation & Amortization Expense and Other Expenses. Our total expenses are 90.04%, 93.01.%, 96.98% and 98.89% of the total income for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Our total expenses primarily consist of the following:

Operating Expense

Operating expenses comprises of Direct Material Consumed i.e. mainly cost of raw material purchases, Direct expenses and changes in inventory. Operating expenses, as a percentage of total income was 76.95%, 81.62%, 85.92% and 86.63% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Employee Benefit Expenses

Expenses in relation to employees‘ benefit expenses include Salary & Wages, Directors‘ remuneration, Staff welfare, Provident fund and Gratuity Expenses. Employee benefit expenses, as a percentage of total income was 3.21%, 2.12%, 1.20% and 0.92% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Finance costs

Finance cost primarily consists of interest payable on loans availed by our Company from lenders & other finance charges, if any. Finance cost, as a percentage of total income was 2.96%, 2.87%, 3.52% and 2.97% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Depreciation Expenses

Depreciation expenses consist of depreciation on mainly the tangible and intangible assets, if any, of our Company which includes building, Plant and Machinery, Computer, Furniture and Fixtures, Office Equipment, Vehicle etc. Depreciation expenses, as a percentage of total income was 1.06%, 1.22%, 1.08% and 0.83% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Other Expenses

Other expenses include Advertisement, Power & fuel, Office and General Expenses, Professional fees, Audit fees, rent, rates and taxes, donation, travelling, freight, loss on sale of land, conveyance, repair and maintenance, travelling expenses, printing & stationery and Insurance etc. Other expenses, as a percentage of total income was 5.86%, 5.18%, 5.26% and 5.53% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Provision for Tax

Income tax has been provided on the basis of current income tax rate on taxable income. Advance tax and TDS deducted has been set off against provisions for taxation at the time of finalization of Income tax assessment proceedings. The deferred tax assets are recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future. Provision for tax, as a percentage of total income was 2.62%, 1.93%, 0.46% and 0.15% for period ended August 31, 2025 and Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Financial Year 2025 compared to Financial Year 2024:

(Amount in lakhs)

Sr. No. Particulars	For Fiscal 2025	For Fiscal 2024	% Change
1 Revenue from Operation	5,978.22	5,930.46	0.81%
2 Other Income	35.00	23.43	49.38%
Total Income (1+2)	6,013.22	5,953.89	1.00%
3 Expenditure
(a) Operating Expenses	4,908.09	5,115.53	-4.06%
(b) Employee Benefit Expenses	127.30	71.45	78.17%
(c ) Finance Cost	172.61	209.65	-17.67%
(d) Depreciation & Amortization	73.56	64.35	14.31%
(e) Other Expense	311.53	313.07	-0.49%
4 Total Expenditure 3(a) to 3(e)	5,593.10	5,774.05	-3.13%
5 Profit/(Loss) Before Tax (1+2-4)	420.13	179.84	133.61%
6 Tax Expense:
(a) Current Tax	95.53	7.49	1175.43%
(b) Deferred Tax	20.47	20.06	2.04%
(c) Short/Excess Provision of last year		-	-ve
Net Current Tax Expenses	116.00	27.55	321.05%
7 Profit/(Loss) for the Period/Year (5-6)	304.13	152.29	99.70%

Revenue from Operation

Revenue from operations had increased by 0.81%, from 5,930.46 lakh in Fiscal 2024 to 5,978.22 lakh in Fiscal 2025. Increment is due to increase in Sales from new product line (i.e from Baari By Kanishk products).

Other Income

Other income had increased by 49.38%, from 23.43 lakh in Fiscal 2024 to 35.00 lakh in Fiscal 2025 was mainly on account of increase in duty drawback, since our export is increased. Other particulars are almost on same level.

Operating Expenses

Operating expenses had been decreased by 4.06%, from 5,115.53 lakh in Fiscal 2024 to 4,908.09 lakh in Fiscal 2025, on account of increase in production efficiency due to high capacity utilization as compare to Fiscal 2024.

Employee Benefit Expenses

Employee benefit expenses had been increased by 78.17%, from 71.45 lakhs in Fiscal 2024 to 127.30 lakhs in Fiscal 2025 on account of increase in number of employees and increment in wage rate. Also due to increment in Director‘s remuneration.

Finance Cost

Finance Cost had decreased by 17.67 % from 209.65 lakhs in Fiscal 2024 to 172.61 lakhs in Fiscal 2025. This is primarily due to borrowing of low interest rate loan from City Union Bank Ltd & repayment of high interest rate unsecured loans of other banks.

Depreciation and Amortization Expenses

Depreciation had increased by 14.31%, from 64.35 lakhs in Fiscal 2024 to 73.56 lakhs in Fiscal 2025 as a vehicle was purchased near to end of FY 2024 therefore depreciation was charged accordingly and in FY 2025 for full FY depreciation was charged. Also there were some addition in Plant and Machinery and other fixed assets

Other Expenses

Other expenses had decreased by 0.49% from 313.07 lakh in Fiscal 2024 to 311.53 lakh in Fiscal 2025. In FY 2025 less commission was paid due to Self-Sourced Clients/Customers.

Tax Expenses

The Company‘s tax expenses had increased by 321.05% from 27.55 lakh in the Fiscal 2024 to 116.00 lakh in Fiscal 2025. In FY 2023-24 we had adjusted brought forward depreciation losses which was not there in FY 2024-25. Also due to increase in PBT/Margin, tax expenses increased.

Profit after Tax

The Company‘s profit after tax had increased by 99.70% from 152.29 lakhs in the Fiscal 2024 to 304.13 lakhs in Fiscal 2025. This increase in Profit After Tax was mainly on account of introduction of new products line with high margins, increase in inventory, reduction in finance cost, reduction in power and fuel expense.

Financial Year 2024 compared to Financial Year 2023:

(Amount in lakhs)

Sr. No. Particulars	For Fiscal 2024	For Fiscal 2023	% Change
1 Revenue from Operation	5,930.46	5,915.96	0.25%
2 Other Income	23.43	52.29	-55.20%
Total Income (1+2)	5,953.89	5,968.25	-0.24%
3 Expenditure
(a) Operating Expenses	5,115.53	5,170.23	-1.06%
(b) Employee Benefit Expenses	71.45	55.19	29.47%
(c ) Finance Cost	209.65	177.33	18.22%
(d) Depreciation & Amortization	64.35	49.66	29.57%
(e) Other Expense	313.07	330.30	5.22%
4 Total Expenditure 3(a) to 3(e)	5,774.05	5,782.72	-0.15%
5 Profit/(Loss) Before Tax (1+2-4)	179.84	185.53	-3.07%
6 Tax Expense:
(a) Current Tax	7.49	0.02	37350%
(b) Deferred Tax	20.06	19.66	2.01%
(c) Short/Excess Provision of last year	-	(10.52)	-ve
Net Current Tax Expenses	27.55	9.16	200.76%
7 Profit/(Loss) for the Period/Year (5-6)	152.29	176.37	-13.65%

Revenue from Operation

Revenue from operations had increased by 0.25%, from 5,915.96 lakh in Fiscal 2023 to 5,930.46 lakh in Fiscal 2024. Company has successfully maintained its customer base in fiscal year 2024 also and which helps it to generate consistent revenue in fiscal 2024 with minor growth.

Other Income

Other income had decreased by 55.20%, from 52.23 lakh in Fiscal 2023 to 23.43 lakh in Fiscal 2024 was mainly on account of fall in discount income to 0.00 lakh in Fiscal 2024 compared to 23.41 lakh in Fiscal 2023.

Operating Expenses

Operating expenses had been decreased by 1.06%, from 5,170.23 lakh in Fiscal 2023 to 5,115.53 lakh in Fiscal 2024, as revenue from operation had been increased by 0.25%. This decrease was in line with increase in revenue from operation. Because there was not major fluctuation between change in revenue from operation ratio and operating expenses ratio.

Employee Benefit Expenses

Employee benefit expenses had been increased by 29.47%, from 55.19 lakhs in Fiscal 2023 to 71.45 lakhs in Fiscal 2024 on account of increase in salaries of employees and new recruitment which has resulted into increase in the cost of the Employee benefit expenses.

Finance Cost

Finance Cost had increased by 18.22% from 177.33 lakhs in Fiscal 2023 to 209.65 lakhs in Fiscal 2024. This is primarily due to increase in interest cost as our long-term and short term debt increased due to investment in plant & machinery in FY 2024 and higher working capital loans availed from the lender.

Depreciation and Amortization Expenses

Depreciation had increased by 29.57%, from 49.66 lakhs in Fiscal 2023 to 64.35 lakhs in Fiscal 2024 as fixed assets addition of 519.42 lakh at the end of Fiscal 2023 due to investment in fixed assets i.e. mainly in plant & machinery.

Other Expenses

Other expenses had decreased by 5.22% from 330.30 lakh in Fiscal 2023 to 313.07 lakh in Fiscal 2024. This is primarily due to decrease in repair and maintenance expense, office expenses, commission and insurance premium in Fiscal 2024.

Tax Expenses

The Company‘s tax expenses had increased by 200.76% from 9.16 lakh in the Fiscal 2023 to 27.55 lakh in Fiscal 2024. This is primarily due to decrease in earlier years excess tax deposit from 10.52 Lakh in Fiscal 2023 to 0 Lakh in Fiscal 2024.

Profit after Tax

The Company‘s profit after tax had decreased by 13.65% from 176.37 lakhs in the Fiscal 2023 to 152.29 lakhs in Fiscal 2024. This decrease in Profit After Tax was mainly on account of increased in power & fuel expenses from 142.58 lakhs in the fiscal 2023 to 170.83 lakhs in the fiscal 2024, Increased in Rates & Taxes expenses from 0.05 lakhs in the fiscal 2023 to 12.53 lakhs in the fiscal 2024, Decreased in earlier years tax refund from 10.52 lakhs in the fiscal 2023 to 0.00 lakhs in the fiscal 2024 and increased in current year income tax liability from 0.02 lakhs in the fiscal 2023 to 7.49 lakhs in the fiscal 2024.

Cash flows

The following table sets forth our cash flows with respect to operating activities, investing activities and financing activities for the period indicated: ( in lakh)

Particulars	August 31, 2025	Fiscal 2025	Fiscal 2024	Fiscal 2023
Net cash flow from/ (used in) operating activities	(200.06)	(176.30)	305.77	(205.86)
Net cash flow from/ (used in) investing activities	(1.40)	162.40	(130.65)	(263.35)
Net cash flow from/ (used in) financing activities	194.88	16.90	(169.79)	471.07
Net increase/(decrease) in cash and cash equivalents	(6.58)	3.00	5.33	1.86
Cash and cash equivalents at the beginning of the year	10.96	7.96	2.63	0.77
Cash and cash equivalents at the end of the year	4.38	10.96	7.96	2.63

Cash Flows from Operating Activities

The following is the Cash Flows from Operating Activities for the following periods

Period ended August 31, 2025

Our net cash flow from operating activities was (200.06) lakh for the period ended August 31, 2025 as compared to the Restated Profit Before Tax of 291.33 lakh for the same period. Our operating profit before changes in working capital was 409.39 lakh which was primarily adjusted against decrease in trade receivables, increase in inventory, increase in short term loans and advances, increase in other current assets, increase in trade payables and increase in short term provision, increase in long term provision, increase in other non-current assets and increase in other current liabilities.

Financial Year 2025

Our net cash flow from operating activities was (176.30) lakh for the Fiscal 2025 as compared to the Restated Profit Before Tax of 420.13 lakh for the same period. Our operating profit before changes in working capital was 681.18 lakh which was primarily adjusted against increase in trade receivables, increase in inventory, increase in short term loans and advances, increase in other current assets, increase in trade payables and increase in short term provision, increase in long term provision, increase in other non-current assets and increase in other current liabilities.

Financial Year 2024

Our net cash flow from operating activities was 305.77 lakh for the Fiscal 2024 as compared to the Restated Profit Before Tax of 179.84 lakh for the same period. Our operating profit before changes in working capital was 451.56 lakh which was primarily adjusted against increase in trade receivables, increase in inventory, decrease in short term loans and advances, decrease in other current assets, increase in trade payables and increase in short term provision, increase in long term provision, increase in other non-current assets and decrease in other current liabilities.

Financial Year 2023

Our net cash from operating activities was (205.86) lakh for the Fiscal 2023 as compared to the Restated Profit Before Tax of 185.53 lakh for the same period. Our operating profit before changes in working capital was 420.38 lakh which was primarily adjusted against increase in trade receivables, increase in inventory, decrease in short term loans and advances, decrease in other current assets, increase in trade payables and increase in short term provision, increase in long term provision, increase in other non-current assets and increase in other current liabilities.

Cash Flows from Investing Activities

Our net cash flow changes due to investing activities are significant compared to our cash flow from operating activities in the Fiscal 2023 on account of investment in fixed assets amounting 530.04 lakh and in the Fiscal 2025 on account of sale of fixed assets amounting 187.54 lakh. For period ended 31st August, 2025 and Fiscal 2024 our net cash flow changes due to investing activities are insignificant compared to our cash flow from operating activities for respective period.

Cash Flows from Financing Activities

Period ended August 31, 2025

Net cash flow from financing activities for the period ended August 31, 2025 was 194.88 lakh which was mainly on account of borrow short-term loans 364.28 Lakh and payment of finance cost of 86.60 Lakhs.

Financial Year 2025

Net cash flow from financing activities for the Fiscal 2025 was 16.90 lakhs which was mainly on account of borrow long-term loans 497.38 Lakh and payment of finance cost of 172.61 Lakhs.

Financial Year 2024

Net cash flow from financing activities for the Fiscal 2024 was (169.79) lakhs which was mainly on account of repayment of long-term loans 686.00 Lakh and payment of finance cost of 209.65 Lakhs.

Financial Year 2023

Net cash flow from financing activities for the Fiscal 2023 was 471.07 lakh which was mainly on account of increase in long-term loans amounting to 948.81 lakh, and payment of finance cost of 177.33 Lakhs.

PRINCIPAL COMPONENTS OF BALANCE SHEET

Financial Year 2025 compared to Financial Year 2024:

(Amount in lakhs)

Sr. No. Particulars	For Fiscal 2025	For Fiscal 2024	% Change
1. Long Term borrowing	701.37	487.85	43.77
2. Short Term borrowing	1,572.59	1,596.60	-1.50
3. Trade Payable	826.66	544.36	51.86
4. Trade Receivable	1,088.21	853.87	27.44
5. Inventories	2,449.48	1,660.46	47.52
6. Short Loans and Advances	108.80	2.72	3900.00

Long Term borrowing

Long Term borrowing outstanding had increased by 43.77%, from 487.85 lakh in Fiscal 2024 to 701.37 lakh in Fiscal 2025 was mainly on account of new term loan of 475 Lakhs was taken from City Union Bank Ltd on 31.12.2024.

Short Term borrowing

Short Term borrowing outstanding had decreased by 1.50%, from 1596.60 lakh in Fiscal 2024 to 1,572.59 lakh in Fiscal 2025 was mainly on account of reduction in outstanding value of current maturity of long term borrowing.

Trade Payable

Trade Payable had increased by 51.86%, from 544.35 lakh in Fiscal 2024 to 826.66 lakh in Fiscal 2025 was mainly on account of increased purchases in the month of March 2025 and the credit period is more than 30 days.

Trade Receivable

Trade Receivable had increased by 27.44%, from 853.87 lakh in Fiscal 2024 to 1088.21 lakh in Fiscal 2025 was mainly on account of an increase in the credit period to more than 30 days.and a slight increase in sales in Fiscal 2025.

Inventories

Inventories had increased by 47.52%, from 1,660.46 lakh in Fiscal 2024 to 2,449.48 lakh in Fiscal 2024 was mainly on account of increase in finished goods inventory by Rs 557.33 lakh and consumables inventory by Rs 364.69 lakh.

Short Loans and Advances

Short Loans and Advances had increased by 3900.00%, from 2.72 lakh in Fiscal 2024 to 108.8 lakh in Fiscal 2024 was mainly on account of 100 lakhs advance paid to RIICO against allotment of land SP2002 at boranada extension.

Financial Year 2024 compared to Financial Year 2023:

(Amount in lakhs)

Sr. No. Particulars	For Fiscal 2024	For Fiscal 2023	% Change
1. Long Term borrowing	487.85	680.29	-28.29
2. Short Term borrowing	1,596.60	1,964.30	-18.72
3. Trade Payable	544.35	327.40	66.26
4. Trade Receivable	853.87	486.73	75.43
5. Inventories	1,660.46	1,538.36	7.94
6. Short Loans and Advances	2.72	8.57	-68.26

Long Term borrowing

Long Term borrowing outstanding had decreased by 28.29%, from 680.29 lakh in Fiscal 2023 to 487.85 lakh in Fiscal 2024 was mainly on account of right issue of share for 600 lakhs and fall in loan requirement. Hence we had repaid loan amount to 686.00 lakh in Fiscal 2024 compared to borrowing of 463.00 lakh for the same period.

Short Term borrowing

Short Term borrowing outstanding had decreased by 18.72%, from 1964.30 lakh in Fiscal 2023 to 1,596.60 lakh in Fiscal 2024 was mainly on account of right issue of share for 600 lakhs and fall in loan requirement. Hence we had repaid loan amount to 465.26 lakh in Fiscal 2024 compared to borrowing of 125.12 lakh for the same period.

Trade Payable

Trade Payable had increased by 66.26%, from 327.40 lakh in Fiscal 2023 to 544.35 lakh in Fiscal 2024 was mainly on account purchase increased in the month of March 2024 and credit period is more than 30 days.

Trade Receivable

Trade Receivable had increased by 75.43%, from 486.73 lakh in Fiscal 2023 to 853.87 lakh in Fiscal 2024 was mainly on account sales increased in the month of March 2024 and credit period is more than 30 days.

Inventories

Inventories had increased by 7.94%, from 1,538.36 lakh in Fiscal 2023 to 1,660.46 lakh in Fiscal 2024 was mainly on account of increase in revenue from operation.

Short Loans and Advances

Short Loans and Advances had decreased by 68.26%, from 8.57 lakh in Fiscal 2023 to 2.72 lakh in Fiscal 2024 was mainly on account of reduction of advance to supplier.

Revenue generated from Related Parties

( In Lakhs unless otherwise stated)

Sr. No. Particulars	For the period ended on August 31, 2025	For the period ended on March 31, 2025	For the period ended on March 31, 2024	For the period ended on March 31, 2023
A Revenue from Operations	2,917.97	5,978.22	59,30.46	5915.96
B Revenue from Operations on transactions with related parties	1,185.87	2,226.52	3,160.83	2,316.98
C % of Revenue Operations generated from related parties [(B/A)*100]	40.64%	37.24%	53.30%	39.16%

Trade Receivable and Inventories in comparison to Revenue from operation

( In Lakhs unless otherwise stated)

Sr. No. Particulars	For the period ended on August 31, 2025	For the period ended on March 31, 2025	For the period ended on March 31, 2024	For the period ended on March 31, 2023
A Revenue from Operations	2,917.97	5,978.22	5,930.46	5,915.96
B Trade Receivable	949.76	1,088.21	853.87	486.73
C % of Revenue from Operations [(B/A)*100]	32.55%	18.20%	14.40%	8.23%
D Inventories	3,122.67	2,449.48	1,660.46	1,538.36
E % of Revenue from Operations [(C/A)*100]	107.02%	40.97%	28.00%	26.00%

Trade receivable was consistently raising from the fiscal 2023 to fiscal 2025 and for period ended August 31, 2025 in proportion to revenue from operation. It was mainly on account of higher revenue from operation in the last quarter of every financial year and stub period. Also because of more favourable terms given to our customers.

Total debt in comparison to free cash flow from business operation

( In Lakhs unless otherwise stated)

Sr. No. Particulars	August 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
A Total Debt	2,555.44	2,273.96	2,048.45	2,644.59
B free cash flow from business operation	(200.06)	(176.30)	305.77	(205.86)

Net cash flow from operation was (200.06) lakhs, (205.86) lakhs and (176.30) lakhs, in August 2025, fiscal 2023 and fiscal 2025 respectively. It was mainly on account of increase in trade receivables and inventories in fiscal 2023 and fiscal 2025 and on account of increase in inventories in stub period. In financial years 2024, cash flow from operation was comparatively higher.