Khyati Global Ventures Ltd Management Discussions

You should read the following discussion and analysis of financial condition and results of operations together with our financial statements included in this Draft 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 factors.

BUSINESS OVERVIEW

We are an Exporter and Re-packager of variety of FMCG products which include sub-categories of Food stuff, Non-food FMCG products, Household Products, Festive handicraft items and we also deal in the Pharmaceutical products.

Our business approach is to sell quality goods at competitive prices. The majority of products dealt by us are everyday products forming part of basic rather than di scretionary spending. Our Company purchases products from manufacturer directly while rest are purchased from vendors dealing in the product. While the local products such as flour, spices, grains, pulses of various types, etc are procured in bulk packaging and then are re packaged in customised pack.Repackaging work is mostly done by manufactures/ vendors wherein we send the packaging materials and labels to be used for re-packaged products while few repackaging is done at our warehouse. Our Company even provides private label facility on the products as required by our customers. We endeavor to minimise our operating costs in several ways such as entering into long-term lease arrangements for a warehouse, procuring goods directly from vendors and manufacturers, employing an efficient logistics and distribution system and maintaining a strong focus on product assortment to minimise inventory build-up, supported by efficient inventory planning.

Our total income as restated were 7,638.21 lakhs, 9,617.14 lakhs, 9,362.70 and 8,747.86lakhs for the period ended December 31, 2023 and for the fiscals 2023, 2022 and 2021 respectively. Further, Our Profit after Tax had been recorded at 171.44 lakhs, 205.66 lakhs, 149.66 and 126.66 lakhs for the period ended December 31, 2023 and for the fiscals 2023, 2022 and 2021.

Significant Developments after December 31, 2023 that may affect our Future Results of Operations

The Directors confirm that there have been no events or circumstances since the date of the last financial statements as disclosed in the Draft Prospectus which materially or adversely affect or is likely to affect the profitability of our Company, or the value of our assets, or our ability to pay liabilities within next twelve months.

RECENT DEVELOPMENT

Impact of COVID-19

The pandemic outbreak has caused an economic downturn on a global scale, including closures of many businesses and reduced consumer spending, as well as significant market disruption and volatility. The demand for our draft products is dependent on and directly affected by factors affecting industries where our products are supplied. Despite the impact of the COVID-19 Pandemic, our revenue from operations for the Fiscal 2022 and for Fiscals 2023 was Rs. 9,388.75 lakhs and Rs. 9,189.54lakhs respectively. We continue to closely monitor the impact that COVID-19 may have on our business and results of operations. It is difficult for us to predict the impact that COVID-19 will have on us, our customers or suppliers in the future.

FACTORS AFFECTING OUR RESULT OF OPERATIONS

Economic conditions in the markets in which we operate

Our results of operations are dependent on the overall economic conditions in the markets in which we operate, including India. Any change in macro-economic conditions in these markets, including changes in interest rates, government policies or taxation and political, economic or other developments could affect our business and results of operations. The FMCG sector in India may perform differently and be subject to market and regulatory developments that are dissimilar to the markets in other parts of the world. While stronger international economic conditions tend to result into higher demand for our products, weaker economic conditions tend to result into lower demand. Change in demand in the market segments we currently supply or improvement/deterioration in the market or a change in regulations, customs, taxes or other trade barriers or restrictions could affect our operations and financial condition.

Relationship with key customers

We have historically derived, and may continue to derive, a significant portion of our income from our top 5 customers. In Fiscals 2023, our top 5 customers represented 36.33%, of our total revenues from operations in such periods. Any reduction in orders from our top five customers would adversely affect our income. The demand from our key customers, in particular our top 5 customers, determines our revenue levels and results of operations, and our sales are directly affected by the production and inventory levels of our customers. Our customers in turn are dependent on budget, economic condition of world, demand and growth in FMCG sector.. Over the years, we have developed strong relationships with a number of domestic and international corporations through which we have been able to expand our product offerings and also our geographic reach. Our business depends on the continuity of our arrangements with these customers. Our sales to such customers are typically conducted on the basis of purchase orders that they place with us from time to time.

Our ability to successfully implement its strategy and its growth and business expansion plans

Our revenue and our business operations have grown in recent years. Although we plan to continue to expand our scale of operations, we may not be able to sustain these rates of growth in future periods due to a number of factors, including, among others, our execution capability, our ability to retain, maintain & enter into new distribution agreement, our ability to maintain customer satisfaction, our ability to mobilise sufficient working capital, macroeconomic factors beyond our control such as decline in global economic conditions, availability of cheaper imported / domestic products / brands, competition within each product category from players in the organized and unorganized segments, the greater difficulty of growing at sustained rates from a larger revenue base, our inability to control our expenses and the availability of resources for our growth. There can be no assurance that we will not suffer from capital constraints, operational difficulties or difficulties in expanding existing business operations. Our strategy and revenue plan may not work and might have adverse affect on financials.

RESULTS OF OUR OPERATIONS

( in lakhs)

	For the period ended December 31,				For the year ended March 31,
Particulars	2023	% of Total Income	2023	% of Total Income	2022	% of Total Income	2021	% of Total Income
INCOME:
Revenue from Operations	7,550.36	98.85%	9,388.75	97.63%	9,189.54	98.15%	8,622.75	98.57%
Other Income	87.84	1.15%	228.39	2.37%	173.16	1.68%	125.11	1.43%
Total Income (A)	7,638.21	100.00%	9,617.14	100.00%	9,362.70	100.00%	8,747.86	100%
EXPENSES:
Purchase of Stock-in-trade	6,481.16	84.85%	7,826.90	81.38%	7,261.14	77.71%	7,205.62	82.37%
Changes in inventories of finished goods	(3.31)	(0.04)%	(311.00)	(3.23)%	(40.60)	(0.43)%	210.60	2.41%
Employee benefit Expenses	209.93	2.75%	309.93	3.22%	194.61	2.08%	167.42	1.91%
Finance Cost	133.11	1.74%	127.25	1.32%	159.63	1.70%	159.72	1.83%
Depreciation and amortization expense	22.16	0.29%	32.63	0.34%	29.56	0.32%	22.32	0.26%
Other Expenses	551.93	7.23%	1,356.61	14.11%	1,563.59	16.73%	815.78	9.33%
Total Expenses (B)	7,394.98	96.82%	9,342.31	97.14%	9,167.93	97.92%	8,581.47	98.10%
Net Profit / (Loss) before tax	243.23	3.18%	274.83	2.86%	194.77	2.08%	166.40	1.90%
Less: Tax expense
(i) Current tax	(73.31)	(0.96)%	(72.05)	(0.75)%	(47.00)	(0.50)%	(39.00)	(0.45)%
(iii) Deferred tax	0.00	0.00%	(0.53)	(0.01)%	-	0.00%	-	0.00%
(b)Short/ Excess Tax provision for
	1.52	0.02%	3.41	0.04%	1.89	0.02%	(0.74)	(0.01)%
earlier periods
Total Tax Expense	(71.78)	(0.94)%	(69.17)	(0.72)%	(45.11)	(0.48)%	(39.74)	(0.45)%
Net Profit / ( Loss ) after tax	171.44	2.24%	205.66	2.14%	149.66	1.60%	126.66	1.45%

Main Components of our Profit and Loss Account

Income

Our total income comprises of revenue from Sale of Products and other income.

Revenue from Operations

Our revenue from operations as a percentage of total income was 98.85%, 97.63%, 98.35% and 98.57%, for the period ended December 31, 2023 and fiscals 2023, 2022 and 2021 respectively.

Other Income

Our other income comprises of interest income, foreign fluctuation income and excess balances written off. Other income, as a percentage of total income was 1.15%, 2.37%, 1.65% and 1.43%, for the period ended December 31, 2023 and fiscals 2023, 2022 and 2021 respectively.

Expenditure

Our total expenditure primarily consists of raw material consumed, employee benefit expenses, finance cost, depreciation expenses, other expenses and prior period expenses.

Cost of Raw Material Consumed

It consists of cost of good purchased and other direct expenses.

Employee Benefit Expenses

Employee benefit expenses comprises of salaries, employee welfare expenses, contribution to PF & Gratuity and gratuity.

Depreciation and Amortization Cost

Depreciation and Amortization Expenses consist of depreciation on the Tangible assets of our company i.e. Buildings, Furniture & Fixtures, Plant & Machinery, Computer and Office Equipment.

Finance costs

Finance cost includes Interest on Borrowings and processing expenses.

Other Expenses

Other expenses include Legal & professional expenses, Rent, Insurance expense, Telephone and Internet charges, Postage and courier charges, Auditors fees Bank charges and Miscellaneous expenses.

Prior period expenses

Prior period expenses include change in provision for gratuity expense.

Provision for Tax

The provision for current tax 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.

Review for the nine (9) months period ended Dec 31, 2023

Income

Our total income for the period ended Dec 31, 2023 was 7,638.21 lakhs. In the mentioned period, the revenue earned from operations was 98.85% and other income was 1.15% of the total income.

Purchase of stock – in - trade

The cost of materials consumed for the period ended Dec 31, 2023 was 6,481.16 lakhs. As a proportion of our total income, it was 84.85 %.

Employee Benefit Expenses

Employee Benefit Expenses for the period ended Dec 31, 2023 was (3.31) lakhs. As a proportion of our total income it was (0.04)%.

Financial Cost

Financial Cost for the period ended Dec 31, 2023 was 209.93 lakhs i.e. 2.75 % of the total income for the period

Depreciation cost

Depreciation for the period ended Dec 31, 2023 was 133.11 lakhs. As a proportion of total income it was 1.74 %.

Other Expenses

Other Expenses for the period ended Dec 31, 2023 was 22.16 lakhs. As a proportion of our total income it was 0.29%.

Other expenses

Other expenses for the period ended Dec 31, 2023 was 551.93 lakhs. As a proportion of our total income it was 7.23%.

Profit/ (Loss) before Tax

Profit before Tax for the period ended Dec 31, 2023 was 242.87lakhs. i.e. 3.18% of our total income.

Tax Expenses

Our companys tax expenses for the period ended Dec 31, 2023 was (71.78) lakhs consisting of current tax, which represented (0.94)% of the total income.

Profit/ (Loss) after Tax

Profit after Tax for the period ended Dec 31, 2023 was 171.09 lakhs i.e. 2.24 % of our total income.

Fiscal 2023 compared with fiscal 2022

Income

In fiscal 2023, our revenue increased by 199.22 lakhs or 2.17%, from 9,189.54 lakhs in fiscal 2022 to 9,388.75 lakhs in fiscal 2023. The increase in the year 2022 was due to increase in the delivery of products as compared to last year.

Other income increased by 55.23 lakhs or 31.89%, from 173.16 lakhs in fiscal 2022 to 228.39 lakhs in fiscal 2023 as we recorded gain on foreign fluctuation in Fiscal 2022.

Purchase of stock

Purchases increased by 565.76 lakhs or 7.79 %, from 7,826.90 lakhs in Fiscal 2023 to 7,261.14 lakhs in Fiscal 2022 as we purchased bulk quantity of stock to meet the requirement of sales order..

Change in Inventories

Change in Inventories were (40.60) lakhs in fiscal 2022 as compared to (311.00) Lakhs in fiscal 2023.

Employee Benefit Expenses

Employee Benefit Expenses increased by 115.31 lakhs or 59.25 %, from 309.93 lakhs in fiscal 2023 to 194.61 lakhs in fiscal 2022. This decrease was mainly due to increase in salaries, bonus and staff welfare expenses,

Finance Costs

Finance Costs decreased by 32.38 lakhs or 20.28%, from 159.63 lakhs in fiscal 2022 to 127.25 lakhs in fiscal 2023. This decrease was mainly due to decrease in borrowing from bank which reduced our interest cost during the year.

Depreciation Expenses

Depreciation expenses were 29.56 lakhs in fiscal 2022 as compared to 32.63 Lakhs in fiscal 2023.

Other Expenses

Other expenses decreased by 206.99 lakhs or 13.24% from 1,563.59 lakhs in fiscal 2022 to 1,356.61 lakhs in Fiscal 2023. The decrease majorly consisted of freight and forwarding charges, and professional fees paid during the year.

Profit/ (Loss) before Tax

The increase in scale of operations has led to increase in our Profit before tax by 80.06 lakhs or 41.11% from 194.77 lakhs in fiscal 2022 to 274.83 lakhs in fiscal 2023.

Tax Expenses

The Companys tax expenses had increased by 24.07 lakhs from45.11 lakhs in the Fiscal 2022 to 69.17 lakhs in Fiscal 2023 as tax liability increases with rise in profits earned during the year.

Profit/ (Loss) after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 55.99 lakhs or 37.41%, from 205.66 lakhs in fiscal 2023 to 149.66 lakhs in fiscal 2022.

Fiscal 2022 compared with fiscal 2021.

Income

In fiscal 2022, our revenue increased by 566.79 lakhs or 6.57%, from 8,622.75 lakhs in fiscal 2021 to 9,189.54 lakhs in fiscal 2022. The increase in the year 2021 was due to disruption in the supply and order book during Covid period.

Other income increased by 48.04 lakhs or 38.40%, from 125.11 lakhs in fiscal 2021 to 173.16 lakhs in fiscal 2022 as foreign fluctuation gain was recorded during Fiscal 2022.

Purchase of stock-in-trade

Purchases increased by 55.52 lakhs or 0.77 %, from 7,205.62 lakhs in Fiscal 2021 to 7,261.14 lakhs in Fiscal 2022 due to increase in purchases to fulfil the sale demand.

Change in Inventories

Change in Inventories were (40.60) lakhs in fiscal 2022 as compared to 210.60 lakhs in fiscal 2023. Employee Benefit Expenses

Employee Benefit Expenses increased 27.19 lakhs or 16.24 %, from 167.42 lakhs in fiscal 2021 to 194.61 lakhs in fiscal 2022 due to increase in salaries and wages..

Finance Costs

Finance Costs decreased by (0.09) lakhs or (0.06)%, from 159.72 lakhs in fiscal 2021 to 159.63 lakhs in fiscal 2022.

Depreciation Expenses

Depreciation expenses were 29.56lakhs in fiscal 2022 as compared to 22.32 lakhs in fiscal 2021.

Other Expenses

Other expenses decreased by 747.81 lakhs or 91.67 % from 1,563.59 lakhs in fiscal 2022 to 815.78 lakhs in Fiscal 2021. During Fiscal 2022 we booked significant amount of freight clearing and forwarding charges, business travel and promotion expenses with the increase in scale of operation its expenses increased as compared to last Fiscal.

Profit/ (Loss) before Tax

The increase in revenue from operations has led to increase in our Profit before tax by 28.37 lakhs or 17.05 % from 166.40 lakhs in fiscal 2021 to 194.77 lakhs in fiscal 2022.

Tax Expenses

The Companys current tax expenses had increased by 5.36 lakhs or 13.50% from 39.74 lakhs in the Fiscal 2021 to 45.11 lakhs in Fiscal 2022 due to increase in profit before tax.

Profit/ (Loss) after Tax

After accounting for taxes at applicable rates, our Profit after Tax increased by 23.01lakhs or 18.16%, from 126.66 lakhs in fiscal 2021 to 149.66 lakhs in fiscal 2022.

Cash Flows

( in lakhs)

Particulars	For the period ended	For the year ended March 31
	December 2023	2023	2022	2021
Net Cash from Operating Activities	(269.29)	(30.54)	31.51	287.55
Net Cash from Investing Activities	(47.35)	(57.33)	29.39	(151.83)
Net Cash used in Financing Activities	298.53	50.54	(2,1250)	(215.54)
Net Increase / (Decrease) in Cash and
	(18.11)	(37.33)	(151.60)	(79.82)
Cash equivalents

Cash Flows from Operating Activities

Net cash from operating activities for the period ended Dec 31, 2023 was (269.29) lakhs as compared to the PBT of 243.23 lakhs for the same period. This difference is primarily on increase in trade and other receivables, payment of trade and other payables, change in inventories and payment of other current liabilities.

Net cash from operating activities for the fiscal 2023 was (30.54) lakhs as compared to the PBT of 274.83lakhs for the same period. This difference is primarily on account of changes in trade and other receivables, change in current liability, short term loans and advances.

Net cash from operating activities in fiscal 2022 was 31.51 lakhs as compared to the PBT of 194.77 lakhs for the same year. This difference is primarily on account of changes in trade and other receivables, short-term loans and advances, other current liability and trade payables.

Net cash from operating activities in fiscal 2021 was 287.55 lakhs as compared to the PBT of 166.40lakhs for the same year. This difference is primarily on account of other current liability, other current asset short-term loans and advances and trade payables.

Cash Flows from Investment Activities

For the period ended Dec 31, 2023 the net cash invested in investing activities was 47.35 lakhs. This was majorly on account of purchase of investment.

In fiscal 2023the net cash used in investing activities was 57.33 lakhs from purchases of asset and investment.

In fiscal 2022, the net cash generated in investing activities was 29.39 lakhs from sale of investment and interest income..

In fiscal 2021, the net cash used in investing activities was 151.83 lakhs from purchases of investment.

Cash Flows from Financing Activities

Net cash generated from financing activities for the period ending Dec 31, 2023 was 298.53lakhs. This was on account of proceeds from unsecured long term loans.

Net cash used in financing activities in fiscal 2023 was 50.54lakhs. This was on account of repayment of short term borrowings and finance cost incurred during the year.

Net cash used from financing activities in fiscal 2022 was 212.50lakhs. This was on account of proceeds from long term loans.

Net cash used in financing activities in fiscal 2021 was 215.54 lakhs. This was on account of repayment of both short-term and long term borrowings and finance cost incurred during the year.

OTHER MATTERS

1. Unusual or infrequent events or transactions

Except as described in this Draft Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered 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" on page no. 145 and 171 respectively of this Draft Prospectus respectively, 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

Other than as described in the chapter titled "Risk Factors" and "Managements Discussion and Analysis of Financial Conditions and Result of Operations" on page no 23 and 171 respectively of this Draft Prospectus respectively, best 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.

4. Future relationship between Costs and Income

Other than as described in the chapter titled "Risk Factors" on page no. 23 of this Draft Prospectus, best to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.

5. The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new services or increased prices

Increase in revenues is by and large linked to increase in delivery of order book and volume of business activity thereby, completing and receiving more orders for our products.

6. Status of any publicly announced new services or business segments

Please refer to the chapter titled "Our Business" on page no 94 of this Draft Prospectus.

7. The extent to which the business is seasonal.

Our business is not seasonal in nature.

8. Any significant dependence on a single or few suppliers or customers

For fiscal 2023, the revenue from our top 5 and top 10 customers constituted approximately 36.33% and 53.47% respectively of the revenue from operations. For fiscal 2023, the purchases from our top 5 and top 10 suppliers constituted approximately 21.08% and 31.76% respectively of the revenue from operations. For further details, please refer chapter "Our Business" on page no. 94 of this Draft Prospectus.

9. Competition Conditions

We face competition from various domestic and international players in the market. Most of our competitors are at global level in FMCG products, Food and Handicraft Goods Industry. We intend to continue competing rigorously to capture more market share and manage our growth in an optimal way. We expect that our commitment to quality, past record of timely execution and transparency will provide us with an edge over our competitors. Further we believe that our competition also depends on several factors which include changing business framework, competitive price, delivery at given timeline and established relationship with suppliers, brand recognition etc.

FINANCIAL INDEBTEDNESS

The Company avails loan and financing facilities in the ordinary course of business for meeting working capital and business requirements.

The details of the indebtness of the Company as on December 31, 2023 is provided below:

(Rs in lakhs)

Nature of Borrowings	Amount
Secured Borrowings (Fund Based)	2,067.49
Unsecured Borrowings	59.41
Total	2,126.90

Secured Borrowings:

(Rs in lakhs)

Bank Name	Amount sanctioned as on September	Amount outstanding as on December 31, 2023	Interest Rate	Tenure	Nature of Borrowings
	15, 2023
	142.46	138.50	9.25%	40 months	GECL- Working
	75.49	44.03	9.25%	12 months	Capital Term Loan
	8.23	7.38	11.70%	46 months
					Term Loan
	12.00	11.55	11.70%	60 months
Yes Bank
				Renewed
	1,700.00	1,583.70	9.25%		Working Capital*
				annually
				Repayable
	300.00	250.00	9.25%		Adhoc Limit (TOD)
				on demand
DFS India Pvt.	53.50	32.33	6.86%	60 months	Vehicle Loan
Ltd.
Total	2,291.68	2,067.49

*The above facility is Post Shipment Credit – Foreign for working capital purpose.

Note1: Terms of secured borrowings from Yes Bank:

1. Exclusive charge by way of Hypothecation on all the present and future Current Assets and Movable Fixed

Assets.

2. Equitable / Registered Mortgage on Property situated at

(a) Commercial at Office no. 50 2nd Floor, Juhu Supreme Shopping Center Coop Society Ltd, Gulmohar

Cross Road 09,JVPD Scheme, Vile Parle, Mumbai, Maharashtra, 400049.

(b) Commercial at Unit No.11, 1st floor, Goldmohur, Princess street, Shamaldas Gandhi Marg, Mumbai,

Maharashtra, 400002 .

(c) Commercial at Office No. 59, 2nd Floor, Supreme Shopping Centre Co-operative Society Limited,

Gulmohar Cross Road No. 9, Juhu, Vile Parle West, Mumbai, Maharashtra, 400049 .

(d) Commercial at Office No. 54, 2nd floor, Juhu Supreme Shoppince Cross No. 9, Vile parle west, Mumbai,

Maharashtra, 400058

(e) Residential at Flat No. 1002, 10th floor, Platinum, Opp Satyanarayan Temple, Off. MG Road, Gujarat,

Porbunder, Gujarat.

(f) Commercial at Office No 58, 2nd Floor, Juhu Supreme Shopping Centre, Gulmohar Cross Road, JVPD

Scheme, Ville Parle, Mumbai, Mumbai, Maharashtra,400049.

3. Fixed Deposit

(i) FD of INR 7.00 MM to be under CAD lien marked

(ii) FD of INR 15.00 MM to be under CAD lien marked.

(iii) FD of INR 4.00MM to be under lien mark Cersai charged to be marked on FD.

4. Unconditional and Irrevocable Personal Guarantee of below guarantors till the tenor of facility-

Khyati Ramesh Rughani.

Note 2 : DFS India loan secured against the mercedes car

Unsecured Borrowings:

(Rs in lakhs)

Particulars	Amount outstanding as on December 31, 2023
A) Loan from Director
Chandrika Rughani	18.77
Sub-total (A)	18.77
B) Others
1. Kotak Mahindra Bank	36.11
2. Standard Chartered Bank	4.53
Sub-total (B)	40.64
Total (A+B)	59.41

Note 3: Our Company has availed unsecured loan from director aggregating to Rs.18.77 lakhs. The same is interest free and repayable on demand.

Note 4: Our Company has availed unsecured loan from above mentioned companies aggregating to Rs. 40.64 lakhs. The same carries an interest rate of 6.00% to 15.00% and is paid on EMI basis month on month.

Note 5: Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net Borrowings to EBITDA ratio and debt service coverage ratio.