Krupalu Metals Ltd Management Discussions

RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations together with our restated financial statements for the financial year ended on 31^st March, 2025,31^st March 2024 and 31^st March 2023 including the notes and significant accounting policies thereto and the reports thereon, which appear elsewhere in this prospectus. You should also see the section titled "Risk Factors" beginning on page 22 of this prospectus, which discusses a number of factors and contingencies that could impact our financial condition and results of operations. The following discussion relates to our Company, unless otherwise stated, is based on restated audited financial statements.

These financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated August 23, 2025 which is included in this prospectus under the section titled "Financial Information as Restated" beginning on page 168 of this prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.

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 "Risk Factors" and "Forward Looking Statements" beginning on pages 22 and 15 respectively, and elsewhere in this prospectus

Accordingly, the degree to which the financial statements in this prospectus will provide meaningful information depends entirely on such potential investors level of familiarity with Indian accounting practices. Our F.Y. ends on March 31 of each year; therefore, all references to a particular fiscal are to the twelve-month period ended March 31 of that year. Please also refer to section titled "Certain Conventions, Use of Financial, Industry and Market Data and Currency Presentation" beginning on page 13 of this prospectus.

BUSINESS OVERVIEW

Our Company was incorporated in the year 2009 as a Private Company under the name of "M/s. Krupalu Engineering Services Private Limited" founded by Mr. Jagdish Parsottambhai Katariya. Initially the Company was operating on a small scale and focused on civil engineering work for various industries according to their designs and specifications. In 2011, the company name was changed to "M/s. Krupalu Metals Private Limited", and the main objectives of the company were also revised. The Company then began operations as a manufacturer and supplier of sheets and other metal components. Further, in the year 2024, our company gets converted into Public Limited Company under the name of "M/s. Krupalu Metals Limited". For further details, please refer to "Our History and Certain Corporate Matters" beginning on page 141 of this Prospectus.

Krupalu Metals Limited is engaged in the manufacturing and trading of a wide range of metal products. The company specializes in producing brass and copper sheets and strips, metal components, and providing various job work services. These metal components include cutting components, inserts, pipe fittings, profiles, terminals, electrical components, bus bars, and many other customized products. In addition to its manufacturing capabilities, the company also trades raw materials, ensuring that it has access to a diverse range of metal products to meet the specific requirements of its customers across different industries.

The factory and registered office of our company is situated at Plot No. 4345, GIDC Phase-III, Dared Udhyognagar, Jamnagar, Gujarat, India, 361009. The premises, where the companys operations are based, are under a 99-year lease agreement between the Gujarat Industrial Development Corporation (GIDC) and Krupalu Metals Pvt Limited. This lease agreement is renewable with mutual consent between both parties, providing the company with long-term stability in terms of its manufacturing operations.

With over 13 years of experience in manufacturing and supplying metal sheets and components, our promoters bring deep industry knowledge and expertise to the company. Their understanding of market trends and demand has enabled the company to meet the needs of a wide array of industries. This industry insight, combined with the dedication of the companys skilled workforce, has allowed Krupalu Metals to expand significantly in its field. The companys growth is a direct result of the dynamic leadership and strategic vision of its promoters and directors, who continue to guide the company toward greater success.

Krupalu Metals is committed to maintaining the highest quality standards in its operations. As a testament to its commitment to quality, the company has earned ISO 9001:2015 certification for its Quality Management System (QMS). This certification recognizes the companys dedication to producing both ferrous and non-ferrous metals, raw materials, and components that consistently meet global quality standards, ensuring customer satisfaction and trust.

Due to increasing demand from its customers, our Company plans to broaden its product range by making a substantial investment of 581.05 lakhs in plant and machinery. This investment will allow the company to produce additional dimensions of brass and copper sheets at its existing manufacturing facility, thereby enhancing the production capacity for various metal components, including cutting components, inserts, pipe fittings, profiles, terminals, electrical components, bus bars, and a variety of other customized products.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD

In the opinion of the Board of Directors of our Company, since the date of the last audited period i.e. March 31, 2025 as disclosed in this Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities.

KEY FACTORS AFFECTING OUR RESULTS OF OPERATION

Changes in laws and regulations relating to the Sectors in which we operate;

Emergence of alternate products which may be technologically advanced and our inability to keep pace with the change

Political instability or changes in the Government in India or in the government of the states where we operate could cause us significant adverse effects;

Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;

Any failure to comply with the financial and restrictive covenants under our financing arrangements;

Our ability to retain and hire key employees or maintain good relations with our workforce;

Impact of any reduction in sales of our products;

Increased competition in industries/sector in which we operate;

Our ability to expand our geographical area of operation;

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

Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;

Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition;

Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability; and

COVID-19 pandemic and similar circumstances

SIGNIFICANT ACCOUNTING POLICIES:

Our significant accounting policies are described in the section entitled "Financial Statements as Restated" beginning from page 168 of the Prospectus.

FINANCIAL KPIs OF THE COMPANY:

( in lakhs except percentage and ratios)

Particulars	31-03-2025	31-03-2024	31-03-2023
Total Income	4,849.59	3,711.86	3,357.94
Growth (%)	30.65	10.54	(17.07)
Revenue from Operation	4,838.61	3,710.91	3,357.55
EBITDA (Operating Profit)	370.35	257.34	107.59
EBITDA Margin (%)	7.65%	6.93%	3.20%
PAT	215.09	154.72	41.85
Growth (%)	39.02%	269.75%	11.48%
PAT Margin (%)	4.45%	4.17%	1.25%
EPS (Basic & Diluted) - (As per end of Restated period)	5.38	6.45	1.74
EPS (Basic & Diluted) - (Post Bonus with retrospective effect)	5.38	3.87	1.05
Total Borrowings	837.21	956.77	744.42

 

Particulars	31-03-2025	31-03-2024	31-03-2023
Total Net Worth (TNW)	612.39	406.48	256.26
ROCE %	48.45%	36.28%	17.21%
RONW (%)	35.12%	38.06%	16.33%
Debt Equity Ratio (Total Borrowing/TNW)	1.37	2.35	2.90

SUMMARY OF THE RESULTS OF OPERATION:

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

( in lakhs except as otherwise mention)

		For the period/year ended
Particulars	31-03-2025	% of Total Turnover	31-03- 2024	% of Total Turnover	31-03- 2023	% of Total Turnover
Income
Revenue from Operations	4,838.61	99.77%	3,710.91	99.97%	3,357.55	99.99%
Other Income	10.98	0.23%	0.94	0.03%	0.39	0.01%
Total Income	4,849.59	100.00%	3,711.86	100.00%	3,357.94	100.00%
Expenses
Cost of Material Consumed	4,481.06	92.40%	3,773.91	101.67%	3,368.85	100.32%
Changes in inventories	(99.62)	-2.05%	(385.94)	-10.40%	(180.19)	-5.37%
Employee Benefit Expenses	41.57	0.86%	31.57	0.85%	33.24	0.99%
Other Expenses	45.25	0.93%	34.03	0.92%	28.06	0.84%
Total Expenses	4,468.27	92.14%	3,453.57	93.04%	3,249.96	96.78%
Profit/(Loss) Before Interest, Depreciation, Exceptional & Extraordinary Items and Tax	381.33	7.86%	258.29	6.96%	107.98	3.22%
Depreciation & Amortisation Expenses	15.67	0.32%	15.22	0.41%	15.06	0.45%
Profit/(Loss) Before Interest, Exceptional & Extraordinary Items and Tax	365.66	7.54%	243.07	6.55%	92.92	2.77%
Financial Charges	78.20	1.61%	55.28	1.49%	51.14	1.52%
Profit/(Loss) before Exceptional & Extraordinary Items and Tax	287.45	5.93%	187.79	5.06%	41.78	1.24%
Exceptional Item	-	-	-	-	-	-
Extraordinary Item (Investment written off)	0.15	0.00%	-	-	-	-
Profit before Taxation	287.30	5.92%	187.79	5.06%	41.78	1.24%
Provision for Taxation	(72.95)	-1.50%	(33.98)	-0.92%	-	0.00%
Provision for Deferred Tax	0.74	0.02%	0.91	0.02%	0.07	0.00%
Earlier Year Tax Arrears	-	-	-	-	-	-
Total Tax Expenses	(72.21)	-1.49%	(33.07)	-0.89%	0.07	0.00%
Profit After Tax	215.09	4.44%	154.72	4.17%	41.85	1.25%
Net Profit Transferred to Balance Sheet	215.09	4.44%	154.72	4.17%	41.85	1.25%

As certified by our statutory auditor M/s. K M Chauhan & Associates, Chartered Accountant having peer review certificate vide their examination report dated August 23, 2025.

In the Fiscal 2025, Fiscal 2024 and Fiscal 2023, we generated total income of 4,849.59 Lakhs, 3,711.86 Lakhs and 3,357.94 Lakhs respectively, EBITDA (operating profit) of 370.35 Lakhs, 257.34 Lakhs and 107.59 Lakhs respectively and net profit after tax of 215.09 Lakhs, 154.72 Lakhs and 41.85 respectively. We have reported Return on Net Worth of 35.12%, 38.06% and16.33% for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.

Revenue from operations grew from 3,357.55 Lakhs in FY 2022-23 to 4,838.61 Lakhs in FY 2024-25, marking an increase of 1,481.06 Lakhs (44.11% for the said period). Correspondingly, Profit After Tax (PAT) surged from 41.85 Lakhs to 215.09 Lakhs, as per the restated financial statements. This strong performance highlights the growing demand for our products in the domestic market, with revenue from domestic sales seeing a notable increase, which has been a key factor driving the overall growth in both revenue and profitability. These factors are discussed in detail in this chapter.

Details of Revenue from Operations:

in lakhs

	31-Mar-25		March 31, 2024			March 31, 2023
Particulars	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
Revenue from Sale of Products	4,764.19	98.46%	3,633.49	97.91%	3,271.31	97.43%
Revenue from Sale of Services	74.42	1.54%	77.42	2.09%	86.24	2.57%
Total	4,838.61	100.00%	3,710.91	100.00%	3,357.55	100.00%

 

						in lakhs
	31-Mar-25		March 31, 2024		March 31, 2023
Particulars	Amount	% of Total Turnover	Amount	% of Total Turnover	Amount	% of Total Turnover
Revenue from Manufacturing Activities (A)
- Domestic Sales	4,066.15	84.04%	2,583.84	69.63%	2,704.03	80.54%
- Export Sales	-	-	-	-	-	-
Total Revenue from Manufacturing Activities (A)	4,066.15	84.04%	2,583.84	69.63%	2,704.03	80.54%
Revenue from Trading Activities (B)
- Domestic Sales	698.05	14.43%	1,049.65	28.29%	567.28	16.90%
- Export Sales	-	-	-	-	-	-
Total Revenue from Trading Activities (B)	698.05	14.43%	1,049.65	28.29%	567.28	16.90%
Revenue from Service Activities (C)
- Domestic Sales	74.42	1.54%	77.42	2.09%	86.24	2.57%
- Export Sales	-	-	-	-	-	-
Total Revenue from Service Activities (C)	74.42	1.54%	77.42	2.09%	86.24	2.57%
Total Revenue from Operations (A+B+C)	4,838.61	100.00%	3,710.91	100.00%	3,357.55	100.00%

Details of Contribution from Customers

Particulars	For the year ended March 31, 2025	For the year ended March 31, 2024	For the year ended March 31, 2023
Turnover from Top 10 largest Customers	2,955.22	2,363.48	1,907.22
in % of Total Turnover	61.08%	63.69%	56.80%
Turnover from Related Party	973.89	1,259.12	583.66
in % of Total Turnover	20.13%	33.93%	17.38%

Our Product-Wise Revenue Bifurcation:

in lakhs

Particulars	March 31, 2025	% of total turnover	March 31, 2024	% of total turnover	March 31, 2023	% of total turnover
(A) Manufacturing
1. Sheets	3,009.45	62.20%	2,233.06	60.18%	2,557.19	76.16%
2. Metal Components	1,056.70	21.84%	349.67	9.42%	145.79	4.34%
3. Others (Slag/Ash)	-	-	1.11	0.03%	1.05	0.03%
Total of Manufacturing	4,066.15	84.04%	2,583.84	69.63%	2,704.03	80.54%

 

Particulars	March 31, 2025	% of total turnover	March 31, 2024	% of total turnover	March 31, 2023	% of total turnover
(B) Trading
Raw Materials	698.05	14.43%	1,049.65	28.29%	567.28	16.90%
Total of Trading	698.05	14.43%	1,049.65	28.29%	567.28	16.90%
(C) Services
Job Work	74.42	1.53%	77.42	2.09%	86.24	2.57%
Total of Services	74.42	1.54%	77.42	2.09%	86.24	2.57%
Total Revenue from Operations	4,838.61	100.00%	3,710.91	100.00%	3,357.55	100.00%

Our State-wise Revenue Bifurcation:

in lakhs

	March 31, 2025		March 31, 2024		March 31, 2023
Particulars	Amount	% of total turnover	Amount	% of total turnover	Amount	% of total turnover
Delhi	10.30	0.21%	11.20	0.30%	-	0.00%
Himachal Pradesh	14.73	0.30%	1.88	0.05%	3.48	0.10%
Karnataka	3.37	0.07%	3.07	0.08%	4.21	0.13%
Kerala	-	0.00%	-	0.00%	0.33	0.01%
Maharashtra	343.02	7.09%	296.24	7.98%	88.88	2.65%
Tamil Nadu	27.67	0.57%	7.87	0.21%	9.40	0.28%
Telangana	63.44	1.31%	98.45	2.65%	57.70	1.72%
Uttar Pradesh	-	0.00%	1.34	0.04%	-	0.00%
West Bengal	197.75	4.09%	8.13	0.22%	-	0.00%
Odisha	0.10	0.002%	-	0.00%	-	0.00%
Total	4,838.61	100.00%	3,710.91	100.00%	3,357.55	100.00%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT

Total Income

Our total income comprises of Revenue from Operations and Other Income.

Revenue from Operations

Our operational revenue is primarily generated from the manufacturing and supplying of brass and copper sheets and strips, metal components such as cutting components, inserts, pipe fittings, profiles, terminals, electrical components, bus bars, and many other customized products, and providing various job work services.

Other Income

Our other income comprises of Interest Income on Gas Deposit, Interest on Excise Refund, Insurance Claim received and Misc Income.

Expenditure

Our total expenditure primarily consists of Cost of Material Consumed, Changes in Inventories, Employee Benefits Expenses, Other Expenses, Depreciation & Amortisation Expenses and Financial Charges.

Cost of Material Consumed

Cost of Material Consumed consists of cost of material consumed, purchases of raw materials and Direct Manufacturing expenses.

Changes in Inventories

Changes in Inventories comprises of difference in opening and closing balance of Finished Goods & WIP.

Employee Benefit Expenses

Employee benefit expenses comprise of Salaries, Wages and Bonus, Directors Remuneration, Gratuity Expenses and Contribution to Employee Welfare Fund.

Financial Charges

Financial Charges comprises of Interest on loans.

Depreciation and Amortization Expenses

Depreciation and Amortization Expenses comprises of depreciation on the Tangible/Intangible assets of our company.

Other Expenses

Other Expenses comprises of Advertisement Expenses, Audit Fees, Bank Charges, Communication Expenses, Factory Rent Expenses, Factory Expenses, Insurance Charges, Legal, Professional & Consultancy Charges, Office and General Expenses, Rent Rates & Taxes, Printing and Stationery, Repairs & Maintenance, Deferred Revenue Expenditure Written off and Travelling and Conveyance Expense.

Provision for Taxation

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.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2025 WITH FISCAL 2024

Total Revenue:

The total revenue, comprising both revenue from operations and other income, has risen to 4,849.59 lakhs in FY 2024-25, up from 3,711.86 lakhs in FY 2023-24. This represents an increase of 1,137.74 lakhs, or 30.65% for the said period, mainly driven by a growth in revenue from the companys operations.

Revenue from Operations:

The net revenue from operations has increased to 4,838.61 lakhs (99.77% of the total revenue) in FY 2024-25, up from 3,710.91 lakhs (99.97% of the total revenue) in FY 2023-24. This represents an increase of 1,127.70 lakhs, or 30.39% for the said period. During the current fiscal 4,066.15 lakhs (84.04%) derived from manufacturing components, reflecting a significant improvement of 14.41% over the previous year. The growth was primarily attributable to increased demand for sheets and metal components, strengthening of the customer base, and improved operational efficiency, which collectively contributed to higher sales volumes. Furthermore, the company saw an expansion in its customer base across multiple states.

Other Income:

The other income of the company for FY 2024-25 increased to 10.98 Lakhs (0.23% of the total revenue) as against 0.94 Lakhs (0.03% of the total revenue) in the FY 2023-24 i.e. Other Income increased by 10.03 Lakhs (1,062.38% for the said period). This increase was primarily due to the interest received on the excise refund.

Total Expenses

The total expenses (excluding Depreciation & Amortization Expenses, Financial Charges and provision for tax) for the FY 2024-25 were increased to 4,468.27 Lakhs (92.14% of total revenue) as against 3,453.57 Lakhs (93.04% of total revenue) in the FY 2023-24 i.e., total expenses increased by 1,014.70 lakhs (29.38% for the said period). This increase was primarily due to higher Cost of Material Consumed and Other Expenses all of which resulted from an increase in operational volume during the fiscal year, as highlighted in the revenue from operations above.

Cost of Material Consumed:

The total cost of material consumed have increased to 4,481.06 lakhs (92.40% of the total revenue) in FY 2024-25 from 3,773.91 lakhs (101.67% of the total revenue) in FY 2023-24 i.e. the above expenses increased by 707.14 lakhs (18.74% for the said period). This rise was primarily driven by higher purchases during the current fiscal year, in line with the growth in operational volume, as reflected in the revenue from operations above.

Changes in Inventories:

The total Changes in Inventories of finished goods and semi-finished goods changed to (99.62) lakhs in FY 2024-25 from

(385.94) lakhs in FY 2023-24.

Employee Benefit Expenses:

The Employee Benefit Expenses for the FY 2024-25 was increased to 41.57 Lakhs (0.86% of the total revenue) as against 31.57 Lakhs (0.85% of the total revenue) in the FY 2023-24 i.e., employee benefit expenses increased by 10.00 lakhs

(31.70% for the said period). This increase was mainly due to increase in overall Salaries paid during the fiscal year.

Other Expenses:

The Other Expenses for the FY 2024-25 increased to 45.25 Lakhs (0.93% of the total revenue) as against 34.03 Lakhs (0.92% of the total revenue) in the FY 2023-24 i.e., other expenses increased by 11.22 lakhs (32.97% for the said period).

This increase is mainly due to increase in expenses like Legal, Professional & Consultancy Charges.

Depreciation and Amortisation Expenses:

The Depreciation and Amortisation expenses for FY 2024-25 increased to 15.67 Lakhs (0.32% of the total revenue) from 15.22 Lakhs (0.41% of the total revenue) in the FY 2023-24 i.e., depreciation increased by 0.45 lakhs (2.98% for the said period). This rise was due to the capital expenditure incurred during the fiscal year.

Financial Charges:

The Financial Charges for the FY 2024-25 increased to 78.20 (1.61% of the total revenue) Lakhs as against 55.28 Lakhs (1.49% of the total revenue) in the FY 2023-24 i.e., financial charges increased by 22.93 lakhs (41.47% for the said period).

This increase was mainly due to increase in interest on loan as per their utilization.

Profit/ (Loss) Before Tax:

The restated Profit before Tax for FY 2024-25 was increased to 287.30 Lakhs (5.92% of total income) as against 187.79 Lakhs (5.06% of total income) in the FY 2023-24 i.e., profit before tax increased by 99.51 Lakhs (52.99% for the said period). The rise was driven by higher sales and favourable product margins, supported by effective cost management.

Total Tax Expenses:

The total tax expense for FY 2024-25 increased to 72.21 Lakhs (1.49% of total income) as against 33.07 Lakhs (0.89% of total income) in the FY 2023-24. This increase was mainly due to increase in Profit before Tax as mentioned above.

Profit/ (Loss) After Tax:

The restated Profit after Tax for FY 2024-25 increased to 215.09 Lakhs (4.44% of total income) as against 154.72 Lakhs (4.17% of total income) in the FY 2023-24 i.e. Profit After Tax increased by 60.37 Lakhs. This increase was mainly due to increase in Profit before Tax as explained above.

COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2024 WITH FISCAL 2023

Total Revenue:

The total revenue, comprising both revenue from operations and other income, has risen to 3,711.86 lakhs in FY 2023-24, up from 3,357.94 lakhs in FY 2022-23. This represents an increase of 353.92 lakhs, or 10.54% for the said period, mainly driven by a growth in revenue from the companys operations.

Revenue from Operations:

The net revenue from operations has increased to 3,710.91 lakhs (99.97% of the total revenue) in FY 2023-24, up from 3,357.55 lakhs (99.99% of the total revenue) in FY 2022-23. This represents an increase of 353.36 lakhs, or 10.52% for the said period. The company experienced a general increase in sales across various product categories. In particular, it saw higher sales in metal components and trading products compared to the previous year, driving a significant rise in overall sales for the current fiscal year. Furthermore, the company expanded its market reach by attracting sales across multiple states.

Other Income:

The other income of the company for FY 2023-24 increased to 0.94 Lakhs (0.03% of the total revenue) as against 0.39 Lakhs (0.01% of the total revenue) in the FY 2022-23 i.e. Other Income increased by 0.55 Lakhs (141.76% for the said period). This increase was primarily due to the increase in miscellaneous income and insurance claim received.

Total Expenses

The total expenses (excluding Depreciation & Amortization Expenses, Financial Charges and provision for tax) for the FY 2023-24 were increased to 3,453.57 Lakhs (93.04% of total revenue) as against 3,249.96 Lakhs (96.78% of total revenue) in the FY 2022-23 i.e., total expenses increased by 203.61 lakhs (6.27% for the said period). This increase was primarily due to higher Cost of Material Consumed and Other Expenses all of which resulted from an increase in operational volume during the fiscal year, as highlighted in the revenue from operations above.

Cost of Material Consumed:

The total cost of material consumed have increased to 3,773.91 lakhs (101.67% of the total revenue) in FY 2023-24 from 3,368.85 lakhs (100.32% of the total revenue) in FY 2022-23 i.e. the above expenses increased by 405.07 lakhs (12.02% for the said period). This rise was primarily driven by higher purchases during the current fiscal year, in line with the growth in operational volume, as reflected in the revenue from operations above.

Changes in Inventories:

The total Changes in Inventories of finished goods and semi-finished goods changed to (385.94) lakhs in FY 2023-24 from (180.19) lakhs in FY 2022-23. The change was mainly due to a higher closing stock, which resulted from increased production to meet future demand and to mitigate potential supply disruptions.

Employee Benefit Expenses:

The Employee Benefit Expenses for the FY 2023-24 was decreased to 31.57 Lakhs (0.85% of the total revenue) as against 33.24 Lakhs (0.99% of the total revenue) in the FY 2022-23 i.e., employee benefit expenses decreased by 1.68 lakhs

(5.04% for the said period). This decrease was mainly because the company optimized its use of existing resources and strategically managed costs to further contribute to the cost savings.

Other Expenses:

The Other Expenses for the FY 2023-24 increased to 34.03 Lakhs (0.92% of the total revenue) as against 28.06 Lakhs (0.84% of the total revenue) in the FY 2022-23 i.e., other expenses increased by 5.98 lakhs (21.30% for the said period).

This increase is mainly due to increase in various expenses like rent, rate & taxes and repair & maintenance.

Depreciation and Amortisation Expenses:

The Depreciation and Amortisation expenses for FY 2023-24 increased to 15.22 Lakhs (0.41% of the total revenue) from 15.06 Lakhs (0.45% of the total revenue) in the FY 2022-23 i.e., depreciation increased by 0.16 lakhs (1.01% for the said period). This rise was due to the capital expenditure incurred during the fiscal year.

Financial Charges:

The Financial Charges for the FY 2023-24 increased to 55.28 (1.49% of the total revenue) Lakhs as against 51.14 Lakhs (1.52% of the total revenue) in the FY 2022-23 i.e., financial charges increased by 4.14 lakhs (8.10% for the said period).

This increase was mainly due to increase in interest on loan as per their utilization.

Profit/ (Loss) Before Tax:

The restated Profit before Tax for FY 2023-24 was increased to 187.79 Lakhs (5.06% of total income) as against 41.78 Lakhs (1.24% of total income) in the FY 2022-23 i.e., profit before tax increased by 146.01 Lakhs (349.49% for the said period). The companys selling price is influenced by fluctuations in demand and supply. In the current fiscal, the cost of procuring raw materials also decreased. Thus, contributing to an increase in profit compared to the previous year.

Total Tax Expenses:

The total tax expense for FY 2023-24 increased to 33.07 Lakhs (0.89% of total income) as against (0.07) (0.00% of total income) Lakhs in the FY 2022-23. This increase was mainly due to increase in Profit before Tax as mentioned above.

Profit/ (Loss) After Tax:

The restated Profit after Tax for FY 2023-24 increased to 154.72 Lakhs (4.17% of total income) as against 41.85 Lakhs (1.25% of total income) in the FY 2022-23 i.e. Profit After Tax increased by 112.88 Lakhs. This increase was mainly due to increase in Profit before Tax as explained above.

AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE IS GIVEN HEREUNDER:

1. Unusual or infrequent events or transactions

Except as described in this Prospectus, during the periods 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.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations. However, Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 22 in the Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Expected Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by demand/supply situation, inflation, Government

Policies and Taxation and Currency fluctuations.

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

Changes in revenue in the last financial years are as explained in the part "Comparison of the Financial Performance" of above.

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

The Company is mainly engaged in the manufacturing and supplying of brass and copper sheets and strips, metal components such as cutting components, inserts, pipe fittings, profiles, terminals, electrical components, bus bars, and many other customized products, and providing various job work services and all the activities of the business revolve around this main business. Therefore, there are no separate reportable segments.

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

Our Company has not announced any new product other than disclosed in this Prospectus.

8. Seasonality of business

Our business is not seasonal in nature.

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on page 95 and 112 respectively of the Prospectus.

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

Except as mentioned in this Prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the Prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months.