The following discussion is intended to convey the managements perspective on our financial condition and results of operations for the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023. Unless context requires otherwise, the financial information in this section has been derived from our Restated Financial Statements included in this Red Herring Prospectus. The following discussion should be read together with our Restated Financial Statements for the three-month period ended June 30, 2025 and Fiscals 2025, 2024 and 2023 and the schedules and notes thereto, which appear elsewhere in this Red Herring Prospectus. For further information, see "Financial Information " on page 280. Our Restated Financial Statements has been prepared in accordance with Ind AS. Ind AS differs in certain material respects from IFRS and US GAAP. See "Risk Factors - Significant differences exist between Indian accounting standard ("Ind AS") and other accounting principles, such as international financial reporting standards ("IFRS") and United States generally accepted accounting principles ("U.S. GAAP "), which may be material to investors assessments of our financial condition " on page 60. Our fiscal year ends on March 31 of each year, and references to a particular Fiscal are to the twelve months ended March 31 of that year.
Some of the information in the following discussion, including information with respect to our business plans and strategies, contain forward-looking statements that involve risks and uncertainties. You should read "Forward-Looking Statements" on page 18 for a discussion of the risks and uncertainties related to those statements and "Risk Factors" on page 28 for a discussion on certain factors that may affect our business, financial condition or results of operations. Our actual results may differ materially from those expressed in or implied by these forward-looking statements. The following information is qualified in its entirety by, and should be read together with, the more detailed financial and other information included in this Red Herring Prospectus, including the information contained in "Risk Factors", "Industry Overview", "Managements Discussion and Analysis ofFinancial Condition and Results of Operations " and "Financial Information - Restated Financial Statements " on pages 28, 137, 356 and 280, respectively.
Unless otherwise indicated, industry and market data used in this section has been derived from the report titled "Industry Research Report on Magnet Winding Wires Market in India" dated November 26, 2025 (the "CARE Report"), which is exclusively prepared for the purpose of the Offer and released by CARE Analytics and Advisory Private Limited and is exclusively commissioned for an agreed fee and paid for by us in connection with the Offer, pursuant to an engagement letter dated December 2, 2024. Any reference to the CARE Report must be read in conjunction with the full CARE Report and the full CARE Report will be made available on the website of our Company at https://kshinternational.com/investor- relations/industry-report/. The data included herein includes excerpts from the CARE Report and may have been re-ordered by us for the purposes ofpresentation. There are no parts, data or information (which may be relevant for the proposed Offer), that has been left out or changed in any manner. Unless otherwise indicated, financial, operational, industry and other related information derived from the CARE Report and included herein with respect to any particular calendar year/ Fiscal refers to such information for the relevant calendar year/ Fiscal. Further, the reference to "segments " in this section derivedfrom CARE Report refers to end-use sectors in accordance with the presentation, analysis and categorization in the CARE Report, and does not constitute segment classification under Ind AS 108, Operating Segments. Our segment reporting in our financial statements is based on the criteria set out in Ind AS 108, Operating Segments and we do not present such industry segments as operating segment. For more information, see "Risk Factors - Certain sections of this Red Herring Prospectus contain information from the CARE Report which has been commissioned by us and any reliance on such information for making an investment decision in this Offer is subject to inherent risks. " on page 40. Please also see, "Definitions and Abbreviations " on page 2 for certain terms and abbreviations used under this section.
Overview
We are the third largest manufacturer of magnet winding wires in India in terms of production capacity in Fiscal 2025 (Source: CARE Report). We are also the largest exporter of magnet winding wires from India in terms of export revenues in Fiscal 2025 (Source: CARE Report). We commenced our operations in 1981 by manufacturing magnet winding wires in Taloja, Raigad, in Maharashtra. Over the last four decades we have diversified our operations to include manufacturing various types of standard and specialized magnet winding wires which are tailored to customer specific requirements. Our key products include round enamelled copper/ aluminium magnet winding wires, paper insulted rectangular copper/ aluminium magnet winding wires, continuously transposed conductors, rectangular enamelled copper/ aluminum magnet winding wires and bunched paper insulated copper magnet winding wires. Our products are critical components of capital goods such as transformers, motors, alternators and generators. These products (transformers, motors, alternators and generators) find application in end-use industries such as power (generation, transmission and distribution), renewables, industrials, railways, automotives (EV and ICE), home appliances, refrigeration and air conditioning.
We market and sell our products through our brand ‘KSH, which we believe has developed a strong brand recall and reputation in the industry over the years. We had 122, 117 and 117 customers during the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. Further, during the three-month period ended June 30, 2025, we invoiced 93 customers. Our key customers are primarily OEMs, and include, Bharat Bijlee Limited, Virginia Transformer Corporation, Bharat Heavy
Electricals Limited, Georgia Transformer Corporation, Hitachi Energy India Limited, Siemens Energy India Limited, GE Vernova T&D India Limited, Hind Rectifiers Limited, Transformers and Rectifiers India Limited, Indo-Tech Transformers Limited, TBEA, Atlanta Electricals Limited, Toshiba Transmission & Distribution Systems (India) Private Limited, Meidensha Corporation, SGB-SMIT GmbH and Retrasib S.R.L., CG Power and Industrial Solutions Limited, Nidec Industrial Automation India Private Limited, Al Ahleia Switchgear Co. , Emirates Transformer & Switchgear Limited.
We are an approved supplier of insulated rectangular wires and CTC for certain entities, used in High Voltage Direct Current ("HVDC"), 765 kV extra high voltage ("EHV") transformers and reactors. The magnet winding wire industry presents significant barriers to entry, primarily due to stringent pre-qualification requirements imposed by corporate, state, central government, and international organizations during their procurement processes (Source: CARE Report). In this regard, the following organizations have approved our products for their usage in the transformers and reactors developed by them:
• Power Grid Corporation of India ("PGCIL") for supply of PICC and CTC Conductor for HVDC Converter Transformers and for transformers and reactors up to 765kV class;
• National Thermal Power Corporation of India ("NTPC") for supply continuous transposed conductor;
• Nuclear Power Corporation of India ("NPCIL") for supply of CTC up to 220kv class of power transformers; and
• Research Design Standards Organization ("RDSO") for supply of CTC conductors for 3 phase drive locomotive transformers.
We have a significant global footprint and are exporting our products to 24 countries as of June 30, 2025, including, amongst others, USA, UAE, Kuwait, Romania, Saudi Arabia, Germany, Oman, Spain, Bangladesh and Japan. The table below sets forth the details of exports for the periods indicated:
| Particulars | Three-month period ended June 30, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Amount (in Rs. million) | % of total revenue from
operations |
Amount (in Rs. million) | % of total revenue from
operations |
Amount (in Rs. million) | % of total revenue from
operations |
Amount (in Rs. million) | % of total revenue from
operations |
|
| Top five export countries * | 1,162.21 | 21.95% | 4,394.69 | 22.79% | 3,692.08 | 28.78% | 3,358.27 | 34.71% |
| Total export | 1,615.13 | 30.50% | 5,903.64 | 32.70% | 4863.35 | 37.91% | 4110.36 | 42.48% |
*Top five export countries include USA, UAE, Kuwait, Romania, Saudi Arabia
As of June 30, 2025, we operate three manufacturing facilities with a combined annual installed capacity of 29,045 MT. Two of these facilities are located in Chakan, Pune in Maharashtra and one in Taloja, Raigad in Maharashtra. Additionally, Phase I in the fourth facility is operational from September 2025 in Supa, Ahilyanagar (formerly Ahmednagar) in Maharashtra. For more details on the properties on which these facilities are located, see "Our Business - Property" on page 236.
We have been able to diversify our products range from manufacturing paper insulated rectangular copper magnet winding wire to various other types of standard and specialized magnet winding wires mainly due to our technological capabilities and our new product/ process development initiatives, which we benefit from. Our development team employs engineers, designers and technicians for engineering new products, modify and develop new processes and help in cost reduction. This technical support has enabled us to deliver tailored solutions across diverse industries by helping our sales and marketing teams better understand and meet customer requirements.
Our manufacturing facilities have obtained (a) ISO 9001:2015 accreditation for the certification and approval of the quality management system; (b) ISO 14001:2015 accreditation for environment management system; (c) ISO 45001:2018 certification for occupational health and safety management; and (d) IATF 16949:2016 certification for the certification and approval of the quality management system.
We benefit from the experience of one of our Individual Promoters, Kushal Subbayya Hegde, who has over four decades of experience in the magnet winding wires industry. Our Individual Promoters, Kushal Subbaya Hegde, Rajesh Kushal Hegde, Rohit Kushal Hegde are actively involved in the management and operations of the Company, bringing a combination of professional qualifications and a deep understanding of the industry. Our Individual Promoters have also played a pivotal role in establishing and maintaining global relationships with customers and partners across geographies.
Our Company is a part of the KSH group, a diversified business conglomerate, with presence in logistics, infrastructure, services, and distribution. Over the years, our commitment to quality, innovation, and customer satisfaction has been recognized by several of our key customers. In the past, we have received awards from companies such as Toshiba Transmissions and Distribution Systems (India) Private Limited, and GE Power Grid Solutions, Bharat Heavy Electricals Limited (BHEL) acknowledging the performance and reliability of our products. For further details in relation to the awards we have received, please see "History and Certain Corporate Matters" on page 243.
A list of our KPIs as of and for the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023 is set out below:
| Particulars | Unit | As at the three-month period ended June 30, 2025* | As at and for Fiscal | ||
| 2025 | 2024 | 2023 | |||
| Financial KPIs | |||||
| Revenue from Operations? | Rs. in million | 5,587.12 | 19,282.93 | 13,828.15 | 10,494.60 |
| Y-o-Y Revenue growth? | % | N.A. | 39.45% | 31.76% | N.A. |
| Total Income? | Rs. in million | 5,626.04 | 19,381.90 | 13,904.95 | 10,565.95 |
| EBITDA? | Rs. in million | 402.83 | 1,225.34 | 714.63 | 499.00 |
| EBITDA Margin? | % | 7.21% | 6.35% | 5.17% | 4.75% |
| Profit After Tax? | Rs. in million | 226.81 | 679.88 | 373.50 | 266.13 |
| Profit After Tax Margin? | % | 4.03% | 3.51% | 2.69% | 2.52% |
| roe(8) | % | 7.06% | 22.77% | 16.17% | 13.74% |
| roce(9) | % | 5.26% | 16.60% | 14.15% | 13.25% |
| Net Debt/ Equity(10) | times | 1.16 | 1.17 | 0.82 | 0.59 |
| Net Debt/ EBITDA(? | times | 9.27 | 2.85 | 2.65 | 2.28 |
| Fixed Asset Turnover Ratio(? | times | 4.46 | 15.19 | 10.42 | 10.66 |
| Net Working Capital Days(13) | Number of days | 72 | 80 | 76 | 73 |
| Revenue CAGR (FY 23 - FY25) (14) | % | N.A. | 35.55% | ||
| EBITDA CAGR (FY 23 - FY25) (15) | % | N.A. | 56.70% | ||
| PAT CAGR (FY 23 - FY25) (16) |
% | N.A. | 59.83% | ||
| Operating KPIs | |||||
| Production capacity1-? | MT | 29,045 | 29,045 | 28,436 | 25,265 |
| Magnet winding wires sales volume(18) | MT | 6,114 | 23,324 | 21,495 | 17,645 |
| Volume Growth(19) | % | N.A. | 8.51% | 21.82% | N.A. |
| Revenue from Exports(20) | Rs. in million | 1,615.13 | 5,903.64 | 4,863.35 | 4,110.36 |
* Not annualised
Notes:
(1) Revenue from Operation means revenue from operating activities.
(2) Growth in revenue from operations provides information regarding the growth of the business over the respective years.
(3) Total income is calculated as the sum of revenue from operations and other income.
(4) EBITDA is calculated as profit for the period minus other income plus finance costs, depreciation and amortisation and total tax expense.
(5) EBITDA Margin is calculated as EBITDA divided by revenue from operations.
(6) Profit available to equity shareholders after deducting all expenses, finance costs, depreciation, exceptional items, and taxes.
(7) Profit After Tax Margin is calculated as profit for the period divided by Total Income.
(8) Return on Equity is calculated as Profit After Tax divided by Total Equity. Total Equity is calculated as share capital plus reserves and surplus.
(9) Return on Capital Employed is calculated as earnings before interest and taxes ("EBIT") divided by capital employed. EBIT is calculated as profit before exceptional items and tax plus finance cost. Capital employed is calculated as tangible net worth plus net debt plus deferred tax liability. Net debt is calculated as the sum of long-term borrowings and short-term borrowings less cash and cash equivalents and other bank balances.
(10) Net Debt/ Equity is calculated as net debt divided by total equity. Net debt is calculated as the sum of long-term borrowings and short-term borrowings less cash and cash equivalents and other bank balances. Total equity is calculated as share capital plus reserves and surplus.
(11) Net Debt/ EBITDA is calculated as net debt divided by EBITDA. Net debt is calculated as the sum of long-term borrowings and short-term borrowings less cash and cash equivalents and other bank balances.
(12) Fixed Asset Turnover Ratio is calculated as Revenue from Operations divided by property, plant and equipment.
(13) Working capital days is computed as inventory days plus Trade receivable days minus trade payable days. Inventory days is calculated as inventory divided by Cost of goods sold ("COGS") from operations multiplied by 365 or 91 days. Trade receivables days is calculated as trade receivables divided by revenue from operations multiplied by 365 or 91 days. Trade payable days is calculated as trade payable divided by COGS multiplied by 365 or 91 days.
(14) Revenue CAGR provides information regarding growth in revenue over a period.
(15) EBITDA CAGR provides information regarding growth in EBITDA over a period.
(16) PAT CAGR provides information regarding growth in PAT over a period.
(17) Production capacity indicates the maximum output that can be produced.
(18) Magnet winding wires sales volume is used by the management to assess the overall market demand for the companys products and to evaluate the effectiveness of sales strategies across the product category.
(19) Growth in volumes provides information regarding the growth in market demand for the companys products across various product categories over the respective years.
(20) Revenue from Exports indicates the revenue generated outside the country of the company.
Significant Factors Affecting our Financial Condition and Results of Operations
Our financial condition and results of operations are affected by numerous factors and uncertainties, including those discussed in the section titled "Risk Factors" on page 28. The following is a discussion of certain factors that have had, and we expect will continue to have, a significant effect on our financial condition and results of operations.
Cost and availability of raw materials
One of the critical factors to develop and grow in our business is to possess the ability to source good quality raw materials at competitive prices. The essential raw materials used by our facilities for manufacturing our products are copper, aluminium, insulating material like enamel and paper. and packing material, among others. Copper being the main raw material is booked in back-to-back arrangement with suppliers against confirmed bookings, i.e., the customer prices the copper with our Company, and our Company does the same with its suppliers, thereby mitigating volatility of raw material prices to a large extent. Raw material like Copper and Aluminium is procured on advance and insulating material is procured on credit terms of 30 to 90 days from our suppliers. While we do not have any long-term agreements with any of our raw material suppliers, we have maintained long term relationships with most of our major suppliers. We have a mix of domestic and international raw material suppliers, and the top 10 suppliers account for Rs.5,062.32 million, Rs.17,646.92 million, Rs.12,167.70 million and Rs.9,315.30 million representing 98.91%, 98.45% 96.93% and 98.58%, of our total cost of raw materials and components purchased for the three- month period ended June 30, 2025 and for the Fiscals 2025, 2024 and 2023, respectively.
Our business depends significantly on the consistent supply of primary raw materials (i.e. copper and aluminium) and other raw materials (i.e. insulating, consumables and packaging materials), which are essential components in manufacturing our products.
In addition to the supply challenges, the costs of insulating materials are subject to market fluctuations driven by inflation, foreign exchange rate volatility, and changes in government policies, such as tariffs and environmental regulations The table below sets forth details of the suppliers from outside India and cost of expense towards such suppliers in the periods/ Fiscals indicated:
| Particulars | Three-month period ended June 30, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Amount (Rs. in million) | % of expenses | Amount (Rs. in million) | % of expenses | Amount (Rs. in million) | % of expenses | Amount (Rs. in million) | % of expenses | |
| Domestic suppliers |
2,800.29 | 54.97% | 10,671.66 | 61.27 | 9,837.40 | 78.61% | 6,472.40 | 68.49% |
| Suppliers from outside India | 2,294.06 | 45.03% | 6,746.51 | 38.73 | 2,676.70 | 21.39% | 2,977.16 | 31.51% |
| Total | 5,094.36 | 100.00% | 17,418.18 | 100.00% | 12,514.10 | 100.00% | 9,449.56 | 100.00% |
While we have a large network of suppliers, we purchase certain types of raw materials from a limited number of suppliers. There are a limited number of qualified suppliers of insulating materials such as enamel and paper due to criticality to maintain process composition, which further restricts the number of suppliers we can source such materials from. While we do not rely on any single source for the other raw materials and components required for our operations, however, if any of our suppliers fail to supply raw materials on a timely basis at reasonable prices, we may be unable to manufacture products for our customers or may be unable to ensure the timely delivery of the same. For details, please see "Risk Factors - Our business is dependent on suppliers to procure our raw materials (top 10 suppliers contributed to 98.91%, 98.45%, 96.93%, and 98.58% of our total cost of raw materials and components purchasedfor the three-month period ended June 30, 2025, and Fiscals 2025, 2024, and 2023, respectively). We have not entered into long-term agreements with these suppliers, and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on our business, financial condition, cash flows and results of operations" on page 30.
Further, the success of our operations also depends on, among other things, our ability to source raw materials at competitiv e prices. Raw materials are subjected to supply disruptions and price volatility caused by various factors such as commodity market fluctuations, the quality and availability of raw materials, currency fluctuations, consumer demand, changes in domestic as well as international government policies and regulatory sanctions.
Any increase in raw material prices may result in corresponding increases in our product costs and affect our gross margins. A failure to maintain our required supply of raw materials, and any inability on our part to find alternate sources for the procurement of such raw materials, on acceptable terms, could adversely affect our ability to deliver our products to our customers at competitive prices and consequently our gross margins and financial condition.
Capacity utilization and capacity expansion
Capacity utilization is affected by our product mix and the demand and supply balance, which in turn affects our gross profit margin. Our results of operations are directly affected by our sales volume, which in turn is a function of several factors, including our manufacturing capacity and market demand. We have three operational manufacturing facilities located in India with a combined annual installed capacity of 29,045 MT, as of June 30, 2025. Two of these facilities are located in Chakan, Pune in Maharashtra and one in Taloja, Raigad in Maharashtra. Additionally, a fourth facility in Supa, Ahilyanagar (formerly
Ahmednagar) in Maharashtra has commenced operations at its Phase I with effect from September 2025 with an annual installed capacity of 12,000 MT, and Phase II is under construction. For details, see "Objects of the Offer - Funding the capital expenditure requirements of our Company towards: (i) purchasing and setting up of new machinery for expansion at our Supa Facility ("Phase II Expansion at our Supa Facility"); and (ii) purchasing and setting up of new machinery at Unit 2 in Chakan, Pune in Maharashtra" on page 114. Our manufacturing facilities give us the in-house ability to manufacture 100% of our requirements for magnet winding wires. We intend to pursue backward integration by establishing in-house upcast copper rod manufacturing capabilities. We believe that our proposed in-house upcast copper rod manufacturing would be designed to meet the circular economy principles and sustainability goals, including the production of green copper rod. In the long term, we also plan to collect copper scrap from our customers, thereby contributing to reduced carbon emissions across the entire raw material-to-finished-product lifecycle.
Our commitment to continuously invest in property, plant and equipment has enabled us to increase our annual aggregate installed capacity from 25,265 MT as of March 31, 2023, to 29,045 MT as of March 31, 2025. In the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, our additions to our cost of plant and equipment were Rs.8.13 million, 17.06 million, Rs.258.32 million and Rs.86.39 million, respectively.
Any unscheduled, unplanned or prolonged disruption in our manufacturing facilities may result in delays or shutdowns of our production activities. While we perform regular scheduled and unscheduled maintenance services and employ other systems and processes such as power backups, employee training and productivity monitoring at each of our manufacturing facilities, these facilities are subject to various operating risks, such as the breakdown or failure of equipment, power supply or processes, productivity of our workforce, performance below expected levels of efficiency, obsolescence of equipment or machinery, timely availability of raw materials, labour disputes, strikes, natural disasters, industrial accidents, fire, severe weather conditions, any significant social, political or economic disturbances and infectious disease outbreaks resulting in unplanned slowdowns and/or shutdowns and the need to comply with the directives of relevant government and regulatory authorities.
For details of our capacity utilization of all our manufacturing facilities, calculated on the basis of total installed production capacity and actual production, please see "Our Business - Capacity and Capacity Utilisation" on page 230.
Customer relationships, sales and distribution network
We produce a wide range of magnet winding wires such as round enamelled copper magnet winding wires, paper insulated rectangular copper magnet winding wires, and continuously transposed conductors among others. Our products are critical components of capital goods such as transformers, motors, alternators and generators. These products (transformers, motors, alternators and generators) find application in end-use industries such as power (generation, transmission and distribution), renewables, industrials, railways, automotives (EV and ICE), home appliances, refrigeration and air conditioning.
Over the years, we have established long-standing relationships with several Indian and global customers. We had 122, 117 and 117 customers during the financial years ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. Further, during the three-month period ended June 30, 2025, we invoiced 93 customers. We believe that the strength of our customer relationships is attributable to our ability to customize to customer specifications and requirements, as well as our track record of consistent delivery of quality and cost-effective products over the years. As a result of our deep-rooted association with our customers, our Company often receives new product requirements from such customers which in turn, helps us to expand our product base. As on the three-month period ended June 30, 2025, we have supplied our products to customers across 24 countries in, including, in Japan, Kuwait, Germany, U.S.A., Spain, and U.A.E. We supply products directly OEMs through two distinct sales models: the outright sales model and the job work sales model.
We do not have firm commitments in the form of continuing or long-term supply agreements with some of our customers and instead rely on orders for manufacture of specific products on a purchase order basis, which governs the volume and other terms of the sale of our products. We need to maintain sufficient inventory levels of raw material to meet customer expectations at all times.
Our revenue from sale of these products is however, significantly impacted by the scale and expertise of our sales and marketing team. In addition to our sales team based out of Pune, we have resident sales network in West, North, and South of India, and in South America, USA, and Europe. As of June 30, 2025, our sales network comprised of 22 members. This team is responsible for a range of marketing and outreach initiatives, including participation in domestic and international trade exhibitions and industry events, to promote awareness of our products.
Fluctuations in Exchange Rates
We present our financial statements in Indian Rupees. However, given that we export our products to 24 countries as on June 30, 2025, a portion of our business transactions is denominated in foreign currencies. We are also the largest exporter of magnet winding wires from India in terms of export revenues in Fiscal 2025 (Source: CARE Report). Our revenue from sale of goods (exports), constituted Rs. 1,615.13 million, Rs. 5,903.64 million, Rs.4,863.35 million and Rs.4,110.36 million 30.50%, 32.70%, 37.91% and 42.48% of our total revenue from operations (excluding other operating revenue) in the three-month period June 30, 2025,
and Fiscals 2025, 2024, 2023, respectively. The exchange rates between the Indian Rupee and the US Dollar, Euro and Swedish Krona have fluctuated in the past and our results of operations have been impacted by such fluctuations and may be impacted by such fluctuations in the future. For further details in relation to RBI reference exchange rates for USD, Euro and Swedish Krona, see "Certain Conventions, Presentation of Financial, Industry and Market Data" on page 15. Further, our raw materials such as aluminium and copper are priced by reference to benchmarks quoted in US dollars, and hence, a significant component of our expenditures is largely influenced by the value of the US dollar.
Depreciation of the Indian Rupee against the U.S. Dollar, the Euro, Swedish Krona and other foreign currencies may adversely affect our results of operations by increasing the cost of our raw materials or any proposed capital expenditure in foreign currencies. Similarly, appreciation of the Indian Rupee may positively affect our results of operations by decreasing the cost of our raw materials or any proposed capital expenditure in foreign currencies. Although we generally seek to pass exchange rate fluctuations through to our customers through increases or decreases in our prices, we may not be able to do so immediately or fully, and hence significant volatility in the exchange rates can impact our revenue and profit.
While we have a foreign exchange risk management policy to identify, assess, monitor and manage foreign exchange risks, our measures may not adequately protect our business operations, financial conditions, results of operations and cash flows from the full effects of exchange rate fluctuations.
Government regulations and policies
We operate in an industry which is highly regulated and our operations, including manufacturing are subject to stringent laws and regulations. We are required to obtain and maintain a number of statutory and regulatory licenses, registrations, permits and approvals under central, state and local government rules in India, generally for carrying out our business and for our manufacturing facility, among other things, relating to occupational health and safety (including laws regulating the generation, storage, handling, use and transportation of waste materials, the emission and discharge of hazardous waste materials into soil, air or water, and the health and safety of employees) and mandatory certification requirements for our facilities and products. Our activities are subject to the environmental laws and regulations of India. For information regarding applicable health, safety and environmental laws and regulations, see "Key Regulations and Policies in India" on page 238. Hazardous waste, such as oil, waste enamel, waste thinner and empty oil and enamel containers, is handled in accordance with applicable environmental regulations and disposed of through authorized treatment facilities.
Our business and operations are subject to a number of approvals, licenses, registrations and permissions for construction and operation of our manufacturing facilities, warehouses, branch offices and regional offices, in addition to extensive government regulations for the protection of the environment and occupational health and safety. Further, our government approvals and licenses are subject to certain conditions, some of which are onerous and require us to make substantial compliance-related expenditure. For details, see "Government and Other Approvals" on page 393.
Competitive Landscape
We face significant competition in our business from other manufacturers and suppliers of magnet winding wires. The companies in magnet winding wires industry grapple with the diverse pace of innovations in product development. To keep up with innovations and competitions, companies have to continuously update their technology to compete in the market. Our competitors may possess wider product ranges, larger sales teams, greater intellectual property resources and broader appeal across various divisions. The magnet winding wire industry is characterized by intense competition, driven by the presence of established global and regional players, upcoming manufacturers, and a significant unorganized sector. (Source: CARE Report).
Further, many of our competitors may have competitive advantages, including greater brand recognition and greater access to financial, research and development, marketing, distribution and other resources and larger product offerings than us. Additionally, certain of our competitors may specialize in manufacturing winding wires within particular product verticals and hence, may be able to dedicate significantly larger resources towards developing and manufacturing technologically superior equipment than us and their brands may gain greater visibility within those product verticals. Our competitors may enter into business combinations or alliances that strengthen their competitive positions or prevent us from taking advantage by entering into such business combinations or alliances. Increasing competition may result in pricing pressures or decreasing profit margins or lost market share or failure to improve our market position, any of which could substantially harm our business and results of operations. We will be required to compete effectively with our existing and potential competitors, to maintain and grow our market share and in turn, our results of operations. Factors, such as the availability of our products, our competitiveness, manufacturing capabilities, technological advancement, brand recognition, the strength of our sales and distribution network, the quality and price of our goods and our after-sale service have an effect on our market share and our ability to win customers in competitive situations.
For further details in relation to the competition we face and our significant competitors, see "Industry Overview" and "Our Business - Competition" on pages 137 and 234, respectively.
Presentation of Restated Financial Statements
Our Restated Statement of Assets and Liabilities as on and for the three-month period ended June 30, 2025 and for the years ended March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statement of Profit and Loss Account (including other comprehensive income), the Restated Statement of Cash Flow, the Restated Statement of Changes in Equity, the Summary of Material Accounting Policies, and other explanatory information and other financial information, including the annexures, notes and schedules thereto, as listed in Annexure to this report, for the three-month period ended June 30, 2025 and for the years ended March 31, 2025, March 31, 2024 and March 31, 2023.
Critical Accounting Policies
Below is list of material accounting policy information applied by the Company in the preparation of its financial statements. Such accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise indicated.
(a) Basis of Preparation
The Restated financial statements of the company comprises of the restated balance sheet as at June 30, 2025, March 31, 2025, March 31, 2024 and March 31 2023, the restated statement of profit and loss (including other comprehensive income), the restated statement of changes in equity and the restated statement of cash flows for the period ended at June 30, 2025 and for the years ended March 31, 2025, March 31, 2024 and March 31 2023 and the statement of significant accounting policies, and other explanatory information relating to such financial periods (together referred to as "Restated Financial Statements").
The Restated Financial Statements have been prepared on a going concern basis. The accounting policies are applied consistently to all the periods presented in the Restated Financial Statements except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires change in accounting policy hitherto in use.
The Restated Financial Statements have been prepared for inclusion in the Offer Document to be filed by the Company with the Securities and Exchange Board of India ("SEBI") in connection with proposed Initial Public Offering of its equity shares, in accordance with the requirements of:
• Section 26 of part I of Chapter III of the Act;
• relevant provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), issued by the SEBI as amended in pursuance of the Securities and Exchange Board of India Act, 1992; and
• Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICA").
There were no changes in accounting policies during the year / period of these financial statements. There were no material amounts which have been adjusted for in arriving at profit of the respective periods; and there were no material adjustments for reclassification of the corresponding items of income, expenses, assets and liabilities, in order to bring them in line with the groupings as per the audited special purpose interim financial statements as at and for the period ended at June 30, 2025, March 31, 2025, March 31, 2024 and March 31 2023 and the requirements of the SEBI ICDR Regulations.
(b) Critical estimates and judgements
The preparation of financial statements in conformity with Ind AS, which requires management to make estimates, assumptions and exercise judgment in applying the accounting policies that affect the reported amount of assets, liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amounts of income and expenses during the year.
The Management believes that these estimates are prudent and reasonable and are based upon the Managements best knowledge of current events and actions. Actual results could differ from these estimates and differences between actual results and estimates are recognised in the periods in which the results are known or materialised.
This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.
Useful lives of Property plant and equipment (PPE), investment property and Intangible assets Property, plant and equipment represent a significant proportion of the asset base of the Company. Depreciation is provided as per the Straight Line Method over the estimated useful lives of assets. The Company depreciates its property, plant and equipment over the useful life in the manner prescribed in Schedule II to the Act. Refer note l(II)(c), (d), (e) and (f).
Valuation of deferred tax assets / liabilities
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. Significant judgment is involved in arriving at the deferred tax assets and liabilities, which is based on the Companys current operations and projections for the future.
Defined benefit obligation
The cost of post-employment benefits is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rate of return on assets, future salary increases and mortality rates. Due to the long-term nature of these plans such estimates are subject to significant uncertainty. The assumptions used are disclosed in Note 30.
Fair value measurements of financial instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including Discounted Cash Flow Model. The inputs to these models are taken from observable markets wherever possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risks, credit risks and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(c) Property plant and equipment
All items of Property, plant and equipment (other than freehold land) are stated at cost/deemed cost, less accumulated depreciation and accumulated impairment losses, if any. Freehold Land is carried at historical cost less any accumulated impairment losses. Cost includes all direct costs and expenditures incurred to bring the asset to its working condition and location for its intended use. Trial run expenses (net of revenue) are capitalised. Borrowing costs incurred during the period of construction are capitalised as part of cost of qualifying asset.
Items of property, plant and equipment that have been retired from active use and are held for disposal are stated at the lower of their net book value or net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the Statement of Profit and Loss. Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets, which are carried at cost, are recognised in the Statement of Profit and Loss.
Depreciation is provided on a pro -rata basis on the straight-line method based on useful life as estimated by the management and aligned to Schedule II to the Companies Act, 2013 in order to reflect the actual usage of assets. Depreciation on assets acquired under finance lease is spread over the lease period or useful life, whichever is shorter.
| Asset Class | Useful life followed by the Company | Useful life as per Schedule II to the Companies Act,2013 |
| Building | 30/60 Years | 30/60 Years |
| Electrical Installation | 10 Years | 10 Years |
| Plant & Machinery | 10 to 25 Years | 15 to 25 Years |
| Tools & Dies | 3 to 15 Years | 3 to 15 Years |
| Office Equipment | 5 Years | 5 Years |
| Computers End user Devices | 3 to 6 Years | 3 to 6 Years |
| Furniture & Fixtures | 10 Years | 10 Years |
| Vehicles | 8 Years | 8 Years |
Assets not yet ready for intended use are recognised as capital work-in-progress.
(d) Non-current assets classified as held for sale:
Assets that are available for immediate sale and where the sale is highly probable of being completed within one year from the date of classification are considered and classified as assets held for sale. Assets classified as held for sale are measured at the lower of carrying amount or fair value less costs to sell. The determination of fair value less costs to sell includes use of management estimates and assumptions. The fair value of asset held for sale has been estimated using observable inputs such as price quotations. Assets and liabilities classified as held for sale are presented separately from other items in the balance sheet.
(e) Intangible Assets (including intangibles under development)
Initial recognition and measurement
Intangible assets relating to product development are recorded at actual cost incurred on the development of products and are capitalised once the products receive approval from relevant authorities and the same are carried at cost less accumulated amortisation.
Subsequent measurement (amortisation and useful lives)
Intangible assets are amortised on a straight-line basis over their estimated useful lives. The amortisation period and the amortisation method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly.
Software and implementation costs including users license fees of the Enterprise Resource Planning (ERP) system and other application software costs are amortised over a period of three years. The amortisation expense on intangible assets with finite life is recognised in the statement of profit and loss under the head Depreciation and amortization expense.
Derecognition
An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss.
(f) Impairment of non-financial assets
The carrying amount of the non-financial assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal /external factors. An impairment loss is recognised, whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its fair value less disposal cost and its value in use. Impairment loss is recognised in the statement of profit and loss. After impairment, depreciation / amortisation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation / amortisation, if there were no impairment.
(g) Investments and financial assets Classification
The Company classifies its financial assets in the following measurement categories:
(i) those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
(ii) those measured at amortised cost.
The classification depends on the entitys business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in statement of profit and loss or other comprehensive income. For investments in debt instruments, this will depend on the business model, in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
The Company reclassifies debt investments when and only when its business model for managing those assets changes.
Initial recognition and measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.
However, trade receivables that do not contain a significant financing component are measured at transaction price. Measurement of debt instruments
Subsequent measurement of debt instruments depends on the Companys business model for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which the Company classifies its debt instruments:
(i) Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in statement of profit and loss, when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.
(ii) Fair value through other comprehensive income (FVTOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVTOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in statement of profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to statement of profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.
(iii) Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVTOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in statement of profit and loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Interest income from these financial assets is included in other income.
Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVTOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
For impairment of trade receivables, the Company applies the simplified approach, permitted by Ind AS 109 Financial Instruments. The Company chooses to apply practical expedient of providing expected credit loss based on provision matrix and does not require the Company to track changes in credit risk. Percentage of ECL under provision matrix is determined based on historical data as well as futuristic information.
De-recognition of financial assets
A financial asset is derecognised only when
(i) The Company has transferred the rights to receive cash flows from the financial asset or,
(ii) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
(h) Cash and cash equivalents
Cash and cash equivalents for the purpose of the cash flow statement comprise of the cash on hand and at bank and current investments with an original maturity of three months or less. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
(i) Borrowings and other financial liabilities
Borrowings and other financial liabilities are initially recognised at fair value (net of transaction costs incurred). Difference between the fair value and the transaction proceeds on initial is recognised as an asset / liability based on the underlying
reason for the difference. Subsequently all financial liabilities are measured at amortised cost using the effective interest rate method.
(j) Inventories
Inventories are stated at lower of cost and net realisable value. Cost is determined using the ‘average cost method. The cost of finished goods and work in progress comprises raw material, packing materials, direct labour, other direct costs and related production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Scrap generated during the manufacturing process is classified as raw material. Such scrap is valued at the prevailing London Metal Exchange (LME) rates, duly adjusted for applicable exchange rates as on the reporting date, after providing for appropriate reductions.
(k) Revenue recognition
Revenue from contracts with customers is recognised when the entity satisfies a performance obligation by transferring a promised good or service to customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Amounts disclosed as revenue net of returns, trade allowances, rebates and discounts, goods and service tax and applicable taxes, which are collected on behalf of the government or on behalf of third parties.
i) Revenue from Sale of Goods
Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer. The point-in-time is determined when the control of the goods or services is transferred which is determined based on when the significant risks and rewards of ownership are transferred to the customer. Apart from this, the Company also considers its present right to payment, the legal title to the goods, inco-terms the physical possession and the customer acceptance in determining the point in time where control has been transferred. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price for the sale of goods, the Company considers the effect of variable consideration, the existence of significant financing components, non-cash consideration, and consideration payable to the customer, if any
Contract balances
i) Trade receivables: A receivable represents the Companys right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).
ii) Contract liabilities: A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration in form of advance (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made. Contract liabilities are recognised as revenue when the Company performs the obligation as per the contract
iii) Export Incentives
Export incentive (government grant): Income from export incentives are accounted for on export of goods if the entitlements can be estimated with reasonable assurance and conditions precedent to claim are fulfilled.
iv) Other income
Interest income for all debt instruments is recognised using the effective interest rate method. Other revenue is recognised when it is received or when the right to receive payment is established.
(l) Employee Benefits
Provident fund: Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as "Defined Contribution Schemes", as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.
Gratuity fund: The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.
The Companys liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial gains / losses arising on the measurement of defined benefit obligation are credited / charged to other comprehensive income.
Employees state insurance scheme: The Company makes contribution to state plans namely Employees State Insurance Scheme and has no further obligation beyond making the payment to them.
Compensated absences: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year are treated as other long term employee benefits. The Companys liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses / gains are recognised in the statement of profit and loss in the year in which they arise.
Termination benefits: Termination benefits in the nature of voluntary retirement benefits are recognised in the statement of profit and loss, as and when incurred.
Share-based payments: 1. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using appropriate valuation model.
2. That cost is recognised, together with a corresponding increase in share-based payment reserve in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Companys best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the Statement of Profit and Loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.
Service and Non market conditions were not taken into account when determining the grant date fair value of ESOPs, but the likelihood of the conditions being met is assessed as part of the Companys best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an ESOP, but without an associated service requirement, are considered to be non-vesting conditions.
3. Non-vesting conditions are reflected in the fair value of an ESOP and lead to an immediate expensing of an ESOP unless there are also service and/or performance conditions. No expense is recognised for ESOPs that do not ultimately vest because non-market performance and/or service conditions have not been met. Where ESOPs include a market or nonvesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
(m) Income taxes
Income tax expense comprises current tax expenses and net change in the deferred tax assets or liabilities during the year. Current and deferred taxes are recognised in the Statement of profit and loss, except when they relate to item that are recognised in Other comprehensive income or directly in Equity, in which case, the current and deferred tax are also recognised in Other comprehensive income or directly in Equity respectively.
(i) Current income tax
The current income tax includes income tax payable by the Company, computed in accordance with the tax laws applicable in the jurisdiction in which the Company operates. Advance tax and provision for current income tax are presented in the Balance sheet after offsetting the advance tax paid and income tax provision arising in the same jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.
(ii) Deferred income tax
Deferred income tax is recognised using Balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of recognition.
Deferred tax assets are recognised to the extent that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow or part of deferred income tax assets to be utilised. At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(n) Leases
The Companys lease asset classes primarily consist of leases for Land and Buildings. The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether:
(i) the contract involves the use of an identified asset;
(ii) the Company has substantially all economic benefits from use of the asset through out the period of the lease; and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short term leases) and leases of low value assets. For these short term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight line basis over the term of the lease.
The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made. A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
(o) Foreign currency transactions
The functional and presentation currency of the Company is Indian rupee.
Transactions in foreign currency are recorded at exchange rate prevailing on the date of transaction. Foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the Balance sheet date and exchange gain or loss arising on settlement and restatement are recognised in the Statement of Profit and Loss.
Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated.
(p) Provisions, contingent liabilities and contingent assets
A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on management estimate of the amount required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company.
Contingent assets are not recognised in the financial statements. However, it is disclosed only when an inflow of economic benefits is probable.
(q) Earnings per share
Basic earning per share is computed by dividing net profit after tax (excluding other comprehensive income) by the weighted average number of equity shares outstanding during the year.
Diluted earning per share is computed by dividing net profit after tax (excluding other comprehensive income) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of shares considered for deriving basic earning per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share.
(r) Initial Public Offering Expense Accounting Policy
Expenses related to issue of Securities are adjusted against the share premium (securities premium) account as per section 52 of Companies Act, 2013.
I. Notes on effect of IND AS Transition
The Company has adopted IND AS with effect from 1st April,2022 with comparatives being restated. Accordingly, the impact of transition has been provided in the Opening Reserves as at 1st April, 2022. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirements of IND AS and Schedule III.
(a) To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act, 2013.
(b) Finance Lease Arrangements:
In respect of certain long-term arrangements, existing at the date of transition and identified to be in the nature of finance lease where the Company is lessee, the underlying assets and corresponding finance lease obligation determined at the inception of respective arrangements have been recognized on the date of transition with the adjustment of difference, if any, in the opening retained earnings, resulting into increase in finance cost and depreciation charge and reduction in the cost of goods/ services procured and valuation of underlying inventories. Such arrangements were recognized as per their legal form under the previous GAAP.
(c) Financial liabilities and related transaction costs:
Borrowings, and other financial liabilities, which were recognized at his historical cost under previous GAAP have been recognized at amortized cost under INDAS with the difference been adjusted to opening retained earnings. Under previous GAAP, transaction costs incurred in connection with borrowings were amortized equally over the tenure of the borrowings. Under INDAS, transaction cost are deducted from the initial recognition amount of the financial liability and charged over the tenure of borrowing using the effective interest method. Difference in the unamortized borrowing cost as per INDAS and previous GAAP on transition date, has been adjusted to the cost of asset under construction or opening retained earnings applicable.
(d) Financial assets at amortized cost:
Certain financial assets held with an objective to collect contractual cash flows in the nature of principal and interest have been recognised at amortized cost on transition date as against historical cost under the previous GAAP with the difference between the same adjusted to the opening retained earnings.
(e) Deferred tax as per balance sheet approach:
Under Indian GAAP, deferred taxes are recognised using income statement approach i.e. reflecting the tax effects of timing differences between accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e. reflecting the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes using the income tax rates enacted or substantively enacted at reporting date.
(f) Defined benefit liabilities:
Under IND AS, Remeasurements that is actual gains and losses and the return on plan assets excluding amounts included in the net interest expense on the defined liability are recognized in other comprehensive income instead of profit or loss in previous GAAP.
(g) Other comprehensive income:
Under IND AS all items of income and expense recognized in the period should be included in profit or loss for the period unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss and "other comprehensive income" includes remeasurements of defined benefit plans, foreign currency monetary item translation difference account, effective portion of gains and losses on cash flow hedging, instruments and fair value gain or losses on FVTOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.
(h) Prior Period items:
The effect of all the prior period expenses have been taken to the respective years in which the expense was incurred. Any expense pertaining to year before the implementation date have been adjusted in the opening reserve. Under the previous GAAP such expenses were debited to the Profit and Loss Statement in the year in which such expense were identified.
Changes in Accounting Policies
There have been no changes in our accounting policies during the three-month period ended June 30, 2025, and during the Fiscals 2025, 2024 and 2023.
Principal Components of Income and Expenditure
We report our income and expenditure in the following manner:
Our Income
Our total income consists of revenue from operations and other income.
Revenue from Operations
The components of our revenue from operations are: (i) sale of products both domestic and export; (ii) rendering of services which comprise of processing charges; and (iii) other operating revenue, which primarily consists of sale of scraps and income from RoDTEP (incentive scheme for export sales).
Set forth below is a breakdown of our revenue from operations, for the years/ period indicated, based on our Restated Financial Statements:
Other Income
The key components of our other income are (i) interest on term deposits; (ii) exchange variation on foreign currency transactions; (iii) other interest income; (iv) interest on security deposit (over financial assets measured at amortised cost); (v) profit on sale of property, plant and equipment; (vi) provisions/liabilities no longer required now written back; and (vii) interest on income tax refund.
Set forth below is a breakdown of our other income, for the years/ period indicated, based on our Restated Financial Statements:
| Other income | Three-month period ended June 30, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Amount (Rs. in million) | % of total income | Amount (Rs. in million) | % of total income (in%) | Amount (Rs. in million) | % of total income (in%) | Amount (in t million) | % of total income (in%) | |
| (a) Interest on term deposits | 0.12 | 0.00% | 0.65 | 0.00% | 2.31 | 0.02% | 1.85 | 0.02% |
| (b) Exchange variation on foreign currency transactions | 36.16 | 0.64% | 68.53 | 0.35% | 47.44 | 0.34% | 49.27 | 0.47% |
| (c) Other Interest Income | 1.99 | 0.04% | 13.27 | 0.07% | 10.73 | 0.08% | 12.21 | 0.12% |
| (d) Interest on security deposit (over financial assets measured at amortised cost) |
0.42 | 0.01% | 1.49 | 0.01% | 1.31 | 0.01% | 1.18 | 0.01% |
| (e) Profit on sale of property, plant and equipment | 0.00% | 0.00% | 12.46 | 0.09% | 0.54 | 0.01% | ||
| (f) Provisions/liabiliti es no longer required now written back | 0.23 | 0.00% | 15.03 | 0.08% | 0.51 | 0.00% | 6.30 | 0.06% |
| (g) Interest on Income tax refund | - | - | - | - | 2.04 | 0.01% | - | - |
| Total | 38.92 | 0.69% | 98.97 | 0.51% | 76.80 | 0.55% | 71.35 | 0.69 |
Our Expenses
Our expenses comprise; (i) cost of raw materials and components consumed; (ii) changes in inventories of finished goods and work-in-progress; (iii) employee benefit expenses; (iv) finance costs; (v) depreciation and amortisation expenses; and (vi) other expenses.
Set out below is a breakdown of our total expenses, for the periods indicated, based on our Restated Financial Statements;
| Total expenses | Three-month period ended June 30, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Amount (in Rs. million) | % of total expenses |
Amount (in Rs. million) | % of total expenses |
Amount (in Rs. million) | % of total expenses | Amount (in Rs. million) | %of total expenses | |
| Cost of raw materials and components consumed | 5,094.36 | 96.29% | 17,418.18 | 94.27% | 12,514.10 | 93.40% | 9,449.56 | 92.54% |
| Changes in inventories of finished goods and work-inprogress | (157.61) | (2.98%) | (274.23) | (1.48%) | (195.87) | (1.46%) | (79.45) | (0.78%) |
| Employee benefits expense |
112.65 | 2.13% | 397.15 | 2.15% | 337.29 | 2.52% | 238.27 | 2.33% |
| Finance costs | 73.13 | 1.38% | 279.99 | 1.52% | 175.70 | 1.31% | 133.74 | 1.31% |
| Depreciation and amortisation expenses |
33.30 | 0.63% | 140.02 | 0.76% | 109.54 | 0.82% | 81.91 | 0.80% |
| Other expenses | 134.89 | 2.55% | 516.49 | 2.80% | 458.01 | 3.42% | 387.22 | 3.79% |
| Total | 5,290.72 | 100.00% | 18,477.60 | 100.00% | 13,398.77 | 100.00% | 10,211.25 | 100.00% |
Cost of raw materials and components consumed
Cost of raw materials and components consumed primarily consists of the raw materials inventory of copper, aluminium, insulating materials like enamel, paper and packing material that we use in manufacturing of our products.
Changes in inventories of finished goods and work-in-progress
Changes in inventory of finished goods and work-in-progress is the difference between our opening stock and closing stock of inventory during a Fiscal.
Employees benefits expense
Employee benefits expenses primarily consist of salaries, wages and bonus and as well as contributions to provident and other funds, defined benefit plans, gratuity and staff welfare expenses.
Finance costs
Finance costs consist of (i) interest on term loans, (ii) interest on working capital facilities, (iii) interest on bill discounting and LC discounting, (iv) interest on lease liabilities, (v) bank charges and commission, and (vi) other interest costs such as interest on post shipment on exports.
Depreciation and amortisation expense
Depreciation and amortization expenses are primarily of depreciation on our property, plant and equipment, amortisation right of use assets and, amortisation of other intangible assets.
Other expenses
Other expenses, primarily consists of power and fuel, transportation expenses, general admin expenses, general selling and distribution expenses, repairs and maintenance, legal and professional fees, rent, rates and taxes, sales and promotion expenses, expected credit loss, CSR expenses, bank charges, factory expenses, insurance, auditors remuneration, bad debts written off, provision for bad and doubtful debts, sundry balances written off, and loss on sale of property, plant and equipment.
Results of operations based on our Restated Financial Statements
The following table sets forth selected financial data from our restated statement of profit and loss for the three-month period ended June 30, 2025, and for Fiscals 2025, 2024, and 2023, the components of which are expressed as a percentage of total income for such years:
| Particulars | Three-month period ended June 30, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| (Rs. in million) | % of total income | (Rs. in million) | % of total income |
(Rs. in million) | % of total income | (Rs. in million) | % of total income | |
| Revenue from operations | 5,587.12 | 99.31% | 19,282.93 | 99.49% | 13,828.15 | 99.45% | 10,494.60 | 99.32% |
| Other income | 38.92 | 0.69% | 98.97 | 0.51% | 76.80 | 0.55% | 71.35 | 0.68% |
| Total Income | 5,626.04 | 100.00% | 19,381.90 | 100.00% | 13,904.95 | 100.00% | 10,565.95 | 100.00% |
| Expenses: | ||||||||
| Cost of raw materials and components consumed | 5,094.36 | 90.55% | 17,418.18 | 89.87% | 12,514.10 | 90.00% | 9,449.56 | 89.43% |
| Changes in inventories of finished goods, and work- in progress | (157.61) | (2.80%) | (274.23) | (1.41%) | (195.87) | (1.41)% | (79.45) | (0.75)% |
| Employee benefits expense | 112.65 | 2.00% | 397.15 | 2.05% | 337.29 | 2.43% | 238.27 | 2.26% |
| Finance costs | 73.13 | 1.30% | 279.99 | 1.44% | 175.70 | 1.26% | 133.74 | 1.27% |
| Depreciation and amortisation Expenses | 33.30 | 0.59% | 140.02 | 0.72% | 109.54 | 0.79% | 81.91 | 0.78% |
| Other expenses | 134.89 | 2.40% | 516.49 | 2.66% | 458.01 | 3.29% | 387.22 | 3.66% |
| Total Expenses | 5,290.72 | 94.04% | 18,477.60 | 95.33% | 13,398.77 | 96.36% | 10,211.25 | 96.64% |
| Profit Before Tax (IE-TV) | 335.32 | 5.96% | 904.30 | 4.67% | 506.18 | 3.64% | 354.70 | 3.36% |
| Tax Expense: | ||||||||
| Current Tax | 91.34 | 1.62% | 235.79 | 1.22% | 133.79 | 0.96% | 84.72 | 0.80% |
| Deferred Tax expense (credit) | 17.17 | 0.31% | -11.37 | -0.06% | (110) | (0.01)% | 3.85 | 0.04% |
| Tax pertaining to earlier years | - | 0.00% | - | 0.00% | - | - | - | - |
| Total Tax Expenses | 108.51 | 1.93% | 224.42 | 1.16% | 132.69 | 0.95% | 88.57 | 0.84% |
| Profit for the period (V - VI) | 226.81 | 4.03% | 679.88 | 3.51% | 373.50 | 2.69% | 266.13 | 2.52% |
| Remeasurements gain/(loss) on defined benefit obligation | -0.65 | -0.01% | -5.19 | -0.03% | (0.79) | (0.01)% | 0.25 | 0.00% |
| Tax impact on above | 0.16 | 0.00% | 1.31 | 0.01% | 0.20 | 0.00% | (0.06) | (0.00)% |
| Other comprehensive income for The Year, Net of Income Tax | -0.49 | -0.01% | -3.88 | -0.02% | (0.59) | 0.00% | 0.19 | 0.00% |
| Total comprehensive income for the period (net of taxes) (VII + VIII) | 226.32 | 4.02% | 676.00 | 3.49% | 372.91 | 2.68% | 266.32 | 2.52% |
| Earnings per Equity Share | ||||||||
| Basic earnings per share (Rs.) | 3.99 | 0.07% | 11.97 | 0.06% | 6.57 | 0.05% | 4.68 | 0.04% |
| Diluted earnings per share HI |
3.99 | 0.07% | 11.97 | 0.06% | 6.57 | 0.05% | 4.68 | 0.04% |
Three-month period ended June 30, 2025
Total income
Our total income for the three-month period ended June 30, 2025, was Rs.5,626.04 million and comprised revenue from operations and other income.
Revenue from operations
Our revenue from operations were Rs.5,587.12 million for the three-month period ended June 30, 2025, and primarily comprised of sale of products of Rs.5,252.21 million (included domestic sales of Rs.3,637.09 million and export sales of Rs.1,615.13 million), processing charges of Rs.4 2.81 million and other operating revenue including sale of scraps of Rs.289.42 million and income from RoDTEP of Rs.2.67 million.
Other income
Our other income was Rs.38.92 million which primarily comprised of interest on term deposits of Rs.0.12 million, exchange variation of foreign currency transactions of Rs.36.16 million, other interest income of Rs.1.99 million, interest on security deposits (over financial assets at amortised cost) of Rs.0.42 million and other non-operating income including provisions/liabilities written back of Rs.0.23 million.
Expenses
Our total expenses were Rs.5,290.72 million for the three-month period ended June 30, 2025. This was primarily attributable to the following:
Cost of raw materials and components consumed
Cost of raw materials and components consumed was Rs.5,094.36 million for the three-month period ended June 30, 2025 comprised of raw material inventory at the beginning of the year Rs.898.11 million, purchases during the year of Rs.5,118.26 million. This was partially set off by closing stock of raw material inventory at the end of the year Rs.922.01 million.
Changes in inventories of finished goods and work-in-progress
Changes in inventories of finished goods and work-in-progress was Rs.(157.61) million for the three-month period ended June 30, 2025, primarily comprised of expenses of closing stock of finished goods of Rs.968.64 million, work-in-progress of Rs.401.07 million and opening stock of finished goods of Rs.889.46 million and work-in-progress of Rs.322.64 million.
Employee benefits expense
Our employee benefit expenses were ^112.65 million for the three-month period ended June 30, 2025, which primarily comprised of expenses of salaries, wages and bonus of Rs.106.46 million, contribution to provident and other funds of Rs.3.00 million, and staff welfare expenses of ^3.19 million.
Finance costs
Our finance cost was Rs.73.13 million as for the three-month period ended June 30, 2025, which primarily comprised of interest expenses on working capital facilities of Rs.25.02 million and interest on bill discounting of Rs.40.92 million.
Depreciation and amortization expenses
Our depreciation and amortization expenses were Rs.33.30 million for the three-month period ended June 30, 2025.
Other expenses
Our other expenses were Rs.134.89 million for the three-month period ended June 30, 2025, which primarily comprised of transportation expenses of Rs.20.95 million, power and fuel expenses of Rs.56.37 million, general admin expenses of Rs.19.50 million, legal and professional of Rs.9.60 million, general selling and distribution expenses of Rs.7.20 million, sales and promotion expenses of Rs.9.34 million, insurance charges of Rs.0.87 million and repairs and maintenance of Rs.1.96 million, among others.
Tax Expenses
Total income tax expense was Rs.108.51 million for three-month period ended June 30, 2025, which comprised of current tax of Rs.91.34 million and deferred tax expense of Rs.17.17 million.
Restated profit for the period
Due to the factors discussed above our restated profit for the period was Rs.226.81 million.
Our EBIDTA for the period was Rs. 402.83 million in the three-month period ended June 30, 2025.
Fiscal 2025 compared to Fiscal 2024
Total income
Our total income increased by 39.39% to t19,381.90 million for Fiscal 2025 from t 13,904.95 million for Fiscal 2024, primarily due to reasons discussed below.
Revenue from operations
Our revenue from operations increased by 39.45% to t 19,282.93 million for Fiscal 2025 from t 13,828.15 million for Fiscal
2024 primarily on account of the increase in volume and metal prices in Fiscal 2025. Our exports registered a 21.39% growth in Fiscal 2025 as compared to Fiscal 2024.
Our revenue from (i) special magnet winding wires is significantly influenced by increased government spending on the expansion and modernization of power transmission and distribution infrastructure in India. In particular, the development of renewable energy projects across the country has accelerated investments in interstate transmission systems, which are essential for the efficient transfer of renewable power from generation sites to consumption centers. This, in turn, drives demand for specialized magnet winding wires used in large transformers, HVDC systems, and other high-capacity equipment, thereby contributing to the growth of our special magnet winding wires category; and (ii) standard magnet winding wires is significantly linked to the growth in the fast-moving electrical goods sector in India for products like air conditioners, fans etc.
Sale of products increased by 43.15% to t17,783.47 million for Fiscal 2025 from t12,422.87 million for Fiscal 2024. The increase in revenue from operations was also due to an increase in income from sale of products in domestic markets and exports. Further, the processing charges relating to job work activities was reduced by 33.50% to t 269.98 million in Fiscal
2025 from t 405.97 million in Fiscal 2024.
Other income
Other income marginally increased by 28.87% to t98.97 million for Fiscal 2025 from t76.80 million for Fiscal 2024. The increase was attributed to the provisions/liabilities no longer required now written back, which increased significantly to t15.03 million in Fiscal 2025 from t0.51 million in Fiscal 2024. The increase was also due to an increase in the exchange variation on foreign currency transactions, which rose to t68.53 million in Fiscal 2025 from t47.44 million in Fiscal 2024 and other inter est income, which increased to t13.27 million in Fiscal 2025 from t10.73 million in Fiscal 2024.
Expenses
Total expenses
Total expenses increased by 37.91% to t18,477.60 million in Fiscal 2025 from t13,398.77 million in Fiscal 2024 primarily due to increase in cost of raw materials and components consumed to t17,418.18 million in Fiscal 2024 from t12,514.10 million in Fiscal 2024, increase in employee benefit expenses to t397.15 million in Fiscal 2025 to t337.29 in Fiscal 2024, increase in finance costs to t279.99 million in Fiscal 2025 from t175.70 million in Fiscal 2024.
Cost of raw materials and components consumed
Cost of raw materials and components consumed increased by 39.19% to t17,418.18 million for Fiscal 2025 from t12,514.10 million for Fiscal 2024 primarily due to increase in metal prices and volume. As a percentage of revenue from operations, our cost of raw materials and components consumed marginally decreased from 90.50% in Fiscal 2024 to 90.33% in Fiscal 2025.
Changes in inventories of finished goods and work-in-progress
During Fiscal 2025 the change in inventory was t(274.23) million and during Fiscal 2024 the change in inventory was t(195.87) million, which reflects our increase in closing stock over the opening stock of work-in-progress and finished goods in Fiscal 2025 more than in Fiscal 2024, primarily on account of higher sales volume in Fiscal 2025, which required higher levels of inventory build-up.
Employee benefits expense
Employee benefits expenses increased by 17.75% to t 397.15 million for Fiscal 2025 from t337.29 million for Fiscal 2024. Increase in employee benefits expense primarily reflected increase in salaries, wages and bonus to t374.01 million for Fiscal 2025 from t320.76 million for Fiscal 2024, primarily on account of an increase in the number of employees from 168 in Fiscal 2024 to 176 in Fiscal 2025, and incentives and annual increments in salaries.
Finance costs
Our finance costs increased by 59.36% to Rs.279.99 million for Fiscal 2025 from Rs.175.70 million for Fiscal 2024, primarily due to increase in interest on bill discounting to Rs.158.06 million in Fiscal 2025 from Rs.78.50 million in Fiscal 2024 due to new b ill discounting facilities availed from banks to discount invoices of customers availing open credit terms. The increase was also attributable to in interest on working capital facilities to Rs.82.04 million in Fiscal 2025 from Rs.68.12 million in Fiscal 2024 on account of additional working capital requirements to fund the 40.73% growth in sales.
Depreciation and amortisation expenses
Depreciation and amortisation expenses for Fiscal 2025 comprised depreciation of property, plant and equipment of ^112.49 million, amortisation of right to use assets of Rs.23.34 million and amortisation of intangible assets of Rs.4.19 million. Furthe r, the depreciation and amortisation expenses for Fiscal 2024 comprised depreciation of property, plant and equipment of Rs.83.50 million, amortisation of right to use assets of Rs.21.99 million and amortisation of intangible assets of Rs.4.05 million. Deprec iation and amortisation expense increased by 27.83% to Rs.140.02 million for Fiscal 2025 from Rs.109.54 million for Fiscal 2024 due to an increase in depreciation of property, plant and equipment by 34.72% to Rs. 112.49 million in Fiscal 2025 from Rs.83.50 million in Fiscal 2024.
Other expenses
Other expenses increased by 12.77% to Rs. 516.49 million for Fiscal 2025 from Rs.458.01 million for Fiscal 2024, primarily as a result of increase in (i) power and fuel expenses to Rs. 221.78 million in Fiscal 2025 from Rs.197.53 million in Fiscal 2024 on account of increase in overall production and sales of our Company; (ii) general admin expenses to Rs.77.08 million in Fiscal 2025 from Rs.70.77 million in Fiscal 2024; and (iii) transportation expenses to Rs.92.23 million in Fiscal 2025 from Rs.60.29 million in Fiscal 2024, among others.
Tax expenses
Total tax expense increased by 69.13% to Rs.224.42 million for Fiscal 2025 from Rs.132.69 million for Fiscal 2024, primarily as a result of increase in profits arising from the increase in overall sales for Fiscal 2025.
Current tax was Rs.235.79 million in Fiscal 2025 compared to Rs.133.79 million in Fiscal 2024 primarily on account of increase in profits arising from the increase in overall sales for Fiscal 2025. Current tax was partially set-off by credit of deferred tax expense of ^11.37 million in Fiscal 2025 compared to Rs.1.10 million in Fiscal 2024.
Profit for the year after tax
As a result of the foregoing, our profit for the year increased by 82.03% to Rs.679.88 million for Fiscal 2025 from Rs.373.50 million for Fiscal 2024.
Other comprehensive income
Other comprehensive income increased by 557.63% to Rs.(3.88) million for the Fiscal 2025 from Rs.(0.59) million for the Fiscal 2024.
Total comprehensive income
For the various reasons discussed above, total comprehensive income increased by 81.28% to Rs.676.00 million for Fiscal 2025 from Rs.372.91 million for the Fiscal 2024.
Fiscal 2024 compared to Fiscal 2023
Total income
Our total income increased by 31.60 % to Rs.13,904.95 million for Fiscal 2024 from Rs.10,565.95 million for Fiscal 2023, primaril y due to reasons discussed below.
Revenue from operations
Our revenue from operations increased by 31.76 % to Rs.13,828.15 million for Fiscal 2024 from Rs.10,494.60 million for Fiscal 2023 primarily on account of the increase in volume and metal prices in Fiscal 2024. Our exports registered a 18.32% growth in Fiscal 2024 as compared to Fiscal 2023.
Our revenue from (i) special magnet winding wires is significantly influenced by increased government spending on the expansion and modernization of power transmission and distribution infrastructure in India. In particular, the development of
renewable energy projects across the country has accelerated investments in interstate transmission systems, which are essential for the efficient transfer of renewable power from generation sites to consumption centers. This, in turn, drives demand for specialized magnet winding wires used in large transformers, HVDC systems, and other high-capacity equipment, thereby contributing to the growth of our special magnet winding wires category; and (ii) standard magnet winding wires is significantly linked to the growth in the fast-moving electrical goods sector in India for products like air conditioners, fans etc.
Sale of products increased by 32.78% to Rs.12,422.87 million for Fiscal 2024 from Rs.9,356.15 million for Fiscal 2023. The increa se in revenue from operations was also due to an increase in income from processing charges relating to job work activities by 26.83% to Rs.405.97 million in Fiscal 2024 from Rs.320.09 million in Fiscal 2023.
Other income
Other income marginally increased by 7.64 % to Rs.76.80 million for Fiscal 2024 from ^71.35 million for Fiscal 2023. The increase was primarily due to an increase in the profit on sale of property, plant and equipment to Rs.12.46 million in Fiscal 2024 from Rs.0.54 million in Fiscal 2023, primarily on account of sale of our properties being used as Company guest houses. Additionally, the increase was also attributed to the interest on income tax refund. Interest on income tax refund increased to Rs.2.04 million in Fiscal 2024 from Rs.0 in Fiscal 2023, which was attributable to receipt of income tax refund amount pertaining to assessment year 2014-15.
Expenses
Total expenses
Total expenses increased by 31.22% to Rs.13,398.77 million in Fiscal 2024 from Rs.10,211.25 million in Fiscal 2023 primarily due to increase in cost of raw materials and components consumed to ^12,514.10 million in Fiscal 2024 from Rs.9,449.56 million in Fiscal 2023, increase in employee benefit expenses to Rs.337.29 in Fiscal 2024 from Rs.238.27 million in Fiscal 2023, increase in finance costs to Rs.175.70 million in Fiscal 2024 from Rs.133.74 million in Fiscal 2023.
Cost of raw materials and components consumed
Cost of raw materials and components consumed increased by 32.43 % to Rs.12,514.10 million for Fiscal 2024 from Rs.9,449.56 million for Fiscal 2023 primarily due to increase in metal prices and volume. As a percentage of revenue from operations, our cost of raw materials and components consumed marginally increased from 90.04% in Fiscal 2023 to 90.50% in Fiscal 2024.
Changes in inventories of finished goods and work-in-progress
During Fiscal 2024 the change in inventory was Rs.(195.87) million and Fiscal 2023 the change in inventory was Rs.(79.45) million, which reflects our increase in closing stock over the opening stock of work-in-progress and finished goods in Fiscal 2024 more than in Fiscal 2023, primarily on account of increase in sales in Fiscal 2024.
Employee benefits expense
Employee benefits expenses increased by 41.56 % to Rs.337.29 million for Fiscal 2024 from Rs.238.27 million for Fiscal 2023. Increase in employee benefits expense primarily reflected increase in salaries, wages and bonus to Rs.320.76 million for Fiscal 2024 from Rs.220.20 million for Fiscal 2023, primarily on account of an increase in the number of employees from 161 in Fiscal 2023 to 168 in Fiscal 2024, and incentives and annual increments in salaries.
Finance costs
Our finance costs increased by 31.37% to Rs.175.70 million for Fiscal 2024 from Rs.133.74 million for Fiscal 2023, primarily reflecting increase in interest on working capital facilities to Rs.68.12 million in Fiscal 2024 from Rs.43.70 million in Fiscal 2023 on account of additional working capital requirements to fund the 32.58% growth in sales, and increase in interest on bill discounting to Rs.78.50 million in Fiscal 2024 from Rs.65.39 million in Fiscal 2023 due to new bill discounting facilities availe d from banks to discount invoices of customers availing open credit terms.
Depreciation and amortisation expenses
Depreciation and amortisation expenses for Fiscal 2024 comprised depreciation of property, plant and equipment of Rs.83.50 million, amortisation of right to use assets of Rs.21.99 million and amortisation of intangible assets of Rs.4.05 million. Furthe r, the depreciation and amortisation expense for Fiscal 2023 comprised depreciation of property, plant and equipment of Rs.58.72 million, amortisation of right to use assets of Rs.20.46 million and amortisation of intangible assets of Rs.2.73 million. Deprec iation and amortisation expense increased by 33.73% to Rs.109.54 million for Fiscal 2024 from Rs.81.91 million for Fiscal 2023 due to an increase in depreciation of property, plant and equipment by 42.20% to Rs.83.50 million in Fiscal 2024 from Rs.58.72 million in Fiscal 2023 and amortization of other intangible assets by 48.35% to Rs.4.05 million in Fiscal 2024 from Rs.2.73 million in Fiscal 2023.
Other expenses
Other expenses increased by 18.28% to Rs.458.01 million for Fiscal 2024 from Rs.387.22 million for Fiscal 2023, primarily as a result of increase in (i) power and fuel expenses to Rs.197.53 million in Fiscal 2024 from Rs.156.38 million in Fiscal 2023 on account of increase in overall production and sales of our Company; (ii) general admin expenses to Rs.70.77 million in Fiscal 2024 from Rs.56.41 million in Fiscal 2023 and (iii) rent, rates and taxes to Rs.18.87 million in Fiscal 2024 from Rs.5.22 million i n Fiscal 2023, among others.
Tax expenses
Total tax expense increased by 49.81% to Rs.132.69 million for Fiscal 2024 from Rs.88.57 million for Fiscal 2023, primarily as a result of increase in profits arising from the increase in overall sales for Fiscal 2024.
Current tax was Rs.133.79 million in Fiscal 2024 compared to Rs.84.72 million in Fiscal 2023 primarily on account of increase in profits arising from the increase in overall sales for Fiscal 2024. Deferred tax expense was Rs.(1.10) million in Fiscal 2024 compared to Rs.3.85 million in Fiscal 2023.
Profit for the year after tax
As a result of the foregoing, our profit for the year increased by 40.34% to Rs.373.50 million for Fiscal 2024 from Rs.266.13 million for Fiscal 2023.
Other comprehensive income
Other comprehensive income marginally decreased by 410.53% to Rs.(0.59) million for the Fiscal 2024 from Rs.0.19 million for the Fiscal 2023.
Total comprehensive income
For the various reasons discussed above, total comprehensive income increased by 40.02% to Rs.372.91 million for the Fiscal 2024 from Rs.266.32 million for Fiscal 2023.
Liquidity and Capital Resources
Historically, our primary liquidity and capital requirements have been to fund our working capital, capital expenditure for business operations and enhancing our manufacturing capabilities. We have met these requirements through cash flows from operations and borrowings.
As at June 30, 2025, we had Rs.53.99 million in cash and cash equivalents, Rs.6.46 million in bank balances other than cash and cash equivalents and Rs.0.42 million in other financial assets, in accordance with our Restated Financial Statements.
We believe that, after taking into account the expected cash to be generated from operations, our borrowings and the proceeds from the Offer, we will have sufficient liquidity for our present requirements and anticipated requirements for capital expenditure and working capital for the next 12 months.
Cash Flows
The table below summarises the statement of cash flows, as derived from our restated cash flow statements, for the periods indicated:
| Particulars | Three-month period ended on June 30, 2025 | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Net cash flow from/ (used in) operating activities | 139.82 | (97.74) | (172.32) | 620.89 |
| Net cash from/ (used in) investing activities | (303.81) | (1,183.62) | (388.09) | (199.87) |
| Net cash from/ (used in) financing activities | 114.23 | 1,228.91 | 674.32 | (406.07) |
| Net increase/ (decrease) in cash and cash equivalents | (49.68) | (52.54) | 113.93 | 15.13 |
| Cash and cash equivalents at the end of the year | 53.99 | 103.67 | 156.21* | 42.28 |
* Includes the term loan drawn down in the escrow account, which was subsequently utilised for the Supa facility.
Net Cash Flow from Operating Activities
Net cash generated from operating activities was Rs.139.82 million in the three-month period ended June 30, 2025. Our profit before tax was Rs.335.32 million in the three-month period ended June 30, 2025, which was primarily adjusted for non-cash/non- operating items such as: depreciation and amortisation expense of Rs.33.30 million, finance cost (including towards lease liabilities) of ^71.39 million, interest income of Rs.(0.54) million, foreign exchange loss of Rs.0.31 million, sundry balances written
off of Rs.(0.23) million, and stock options amortised of Rs.2.96 million, among others. Our operating profit before working capital changes was Rs.441.90 million in the three-month period ended June 30, 2025. Adjustments for changes in working capital primarily comprised increase in trade payables of Rs.69.53 million, increase in other financial liabilities of Rs.5.08 million, increase in provisions of Rs.0.35 million, increase in other financial assets of Rs.0.20 million, increase in other current assets of Rs.(60.14) million, increase in trade receivables of Rs.(69.50) million, increase in inventories of Rs.(181.52) million, and decrease in other current liabilities of Rs.(15.37) million. Cash generated from operations amounted to Rs.190.53 million in the three -month period ended June 30, 2025, and income tax paid (net of refunds) was Rs.(50.71) million in the three-month period ended June 30, 2025.
Net cash used in operating activities was Rs.(97.74) million for the year ended March 31, 2025. Our profit before tax was Rs.904.30 million during Fiscal 2025, which was adjusted for non-cash and non-operating items such as: depreciation and amortisation expense of Rs.140.02 million, finance cost (including towards lease liabilities) of Rs.276.85 million, interest income of Rs.(2.14) million, foreign exchange loss (net) of Rs.(4.77) million, sundry balances written off of Rs.(15.03) million, expected credit los s of Rs.0.65 million, among others. Our operating profit before working capital changes stood at Rs.1,299.88 million. Adjustments for changes in working capital primarily included increase in trade payables of Rs.165.76 million, increase in other financial liabilities of Rs.22.20 million, increase in provisions of Rs.2.83 million, and increase in other current liabilities of Rs.174.47 million. These were offset by increases in inventories of Rs.(781.25) million, trade receivables of Rs.(648.23) million, other financial assets of Rs.(13.08) million, and other current assets of Rs.(113.13) million. Cash generated from operations amounted to Rs.108.80 million, while income tax paid (net of refunds) was Rs.(206.54) million for Fiscal 2025.
Net cash used in operating activities was Rs.(172.32) million in Fiscal 2024. Our profit before tax was Rs.506.18 million in Fisc al 2024, which was primarily adjusted for non-cash/non-operating items such as depreciation and amortisation expense of Rs.109.54 million, finance cost (including towards lease liabilities) of Rs.169.13 million, interest income of Rs.(3.62) million, foreign exchange loss of Rs.1.96 million, sundry balances written off of Rs.(0.51) million, profit on sale of property, plant and equipme nt (net) of Rs.(12.46) million, among others. Our operating profit before working capital changes was Rs.784.06 million in Fiscal 2024. Adjustments for changes in working capital primarily comprised decrease in trade payables of Rs.(15.65) million, increase in other current assets of Rs.(69.48) million, decrease in other current liabilities of Rs.(5.96) million, increase in inventories of Rs.(234.53) million, increase in trade receivables of ^(510.91) million. Cash used in operations amounted to Rs.(50.21) million in Fiscal 2024 and income tax paid (net of refunds) was Rs.(122.11) million in Fiscal 2024.
Net cash generated from operating activities was Rs.620.89 million in Fiscal 2023. Our profit before tax was Rs.354.70 million in Fiscal 2023, which was primarily adjusted for non-cash/non-operating items such as depreciation and amortisation expense of Rs.81.91 million, finance cost (including towards lease liabilities) of Rs.130.47 million, interest income of Rs.(3.03) million, foreign exchange gain of Rs.(0.19) million, sundry balances written off of Rs.(6.30) million, profit on sale of property, plant and equipment (net) of Rs.(0.54) million, among others. Our operating profit before working capital changes was Rs.574.83 million in Fiscal 2023. Adjustments for changes in working capital primarily comprised decrease in trade payables of Rs.(96.69) million, decrease in other current assets of Rs.89.09 million, decrease in other current liabilities of Rs.(9.46) million, increase in inventories of Rs.(79.51) million, decrease in trade receivables of Rs.195.61 million. Cash generated from operations amounted to Rs.706.41 million in Fisc al 2023 and income tax paid (net of refunds) was Rs.(85.52) million in Fiscal 2023.
Net Cash Flow from Investing Activities
Net cash used in investing activities was Rs.(303.81) million in the three-month period ended June 30, 2025, primarily comprising purchase of property, plant & equipment and capital expenditure of Rs.(304.84) million, proceeds from the sale of property, pla nt and equipment of Rs.0.60 million, investment in fixed deposits of Rs.(0.08) million, and interest income of Rs.0.51 million.
Net cash used in investing activities was Rs.(1,183.62) million in the fiscal year ended March 31, 2025, primarily comprising purchase of property, plant and equipment and capital expenditure of Rs.(1,201.58) million, proceeds from the sale of property, plant and equipment of Rs.0, investment in fixed deposits of Rs.15.03 million, and interest income of Rs.2.93 million.
Net cash used in investing activities was Rs.(388.09) million in Fiscal 2024 primarily comprising of purchase of property, plant & equipment and capital expenditure of Rs.(452.33) million, sale of property, plant and equipment of Rs.55.75 million, and interest income of Rs.4.01 million.
Net cash used in investing activities was Rs.(199.87) million in Fiscal 2023 primarily comprising of purchase of property, plant & equipment and capital expenditure of Rs.(221.87) million, sale of property, plant and equipment of Rs.0.62 million, and interest income of Rs.4.00 million.
Net Cash Flow from Financing Activities
Net cash generated from financing activities was ^114.23 million in the three-month period ended June 30, 2025, primarily comprising proceeds from short-term borrowings (net) of Rs.133.69 million, proceeds from long-term borrowings of Rs.103.96 million, repayment of long-term borrowings of Rs.(44.20) million, payment of lease liabilities of Rs.(9.15) million, and finance costs of Rs.(70.07) million.
Net cash generated from financing activities was Rs.1,228.91 million in the fiscal year ended March 31, 2025, primarily comprising proceeds from short-term borrowings (net) of Rs.806.25 million, proceeds from long-term borrowings of ^815.17 million, repayment of long-term borrowings of Rs.(88.99) million, payment of lease liabilities of Rs.(32.90) million, and finance costs of Rs.(270.62) million.
Net cash generated from in financing activities was Rs.674.32 million in Fiscal 2024 primarily comprising repayment of long - term borrowings of Rs.(52.47) million, proceeds from long term borrowings of ^317.81 million, proceeds of short-term borrowings (net) of Rs.599.20 million, payment of lease liabilities of Rs.(28.93) million and finance costs of Rs.(161.30) million.
Net cash used in financing activities was Rs.(406.07) million in Fiscal 2023 primarily comprising repayment of long -term borrowings of Rs.(32.14) million, proceeds from long term borrowings of Rs.39.25 million, repayment of short -term borrowings (net) of Rs.(266.14) million, payment of lease liabilities of Rs.(27.18) million and finance costs of Rs.(119.86) million.
Indebtedness
As at June 30, 2025, we had total borrowings of Rs. 3,793.94 million, comprising secured borrowings of Rs. 3,644.88 million and unsecured borrowings of Rs. 149.06 million in accordance with our Restated Financial Statements. Some of our financing agreements also include conditions and covenants that require us to obtain lender consents prior to carrying out certain activities and entering certain transactions. For further information on our agreements governing our outstanding indebtedness, see
"Financial Indebtedness" on page 385.
Capital Expenditure
Our historical capital expenditure was mainly related to the purchase of property, plant and machinery. The primary sources of financing for our capital expenditure have been internal accruals, and borrowings. For the three-month period ended June 30, 2025 and for Fiscals 2025, 2024 and 2023, our capital expenditure for property, plant and equipment was Rs.10.21 million, Rs.54.16 million, Rs.470.09 million and Rs.165.07 million, respectively as per our Restated Financial Statements.
Contingent Liabilities
Details of our contingent liabilities as at June 30, 2025 based on our Restated Financial Statements, are set forth below:
(in Rs. million)
Particulars As at June 30, 2025
Open bank guarantees outstanding 34.92
For further information, see "Restated Financial Statements - Note 39: Revenue from contracts with customers"" on page 342. Off-Balance Sheet Commitments and Arrangements
Other than forward contracts, we do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
Related Party Transactions
We have engaged in the past, and may engage in the future, in transactions with related parties. For details of our related party transactions, see "Summary of the Offer Document - Summary ofRelated Party Transactions"" on page 24.
Non-GAAP Measures - EBITDA (excluding other income) and Adjusted EBITDA
EBITDA, EBITDA Margin, Net debt, Return on Capital Employed, Return on Equity, and other non- GAAP measures, (together, "Non-GAAP Measures"), presented in this Red Herring Prospectus are a supplemental measure of our performance and liquidity that are not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS or US GAAP. Further, these Non-GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, IFRS or US GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit/(loss) for the years or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS or US GAAP. In addition, such Non-GAAP Measures are not standardized terms, hence a direct comparison of these Non-GAAP Measures between companies may not be possible. Other companies may calculate these Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although such Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance.
Selected Statement of Assets and Liabilities
The following table shows selected financial data derived from our summary statement of assets and liabilities as of the dates indicated, based on our Restated Financial Statements:
| Particulars | For the three-month period June 30, 2025 | As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
| Total non-current assets (A) | 2,922.79 | 2,699.81 | 1,552.39 | 1,227.60 |
| Total current assets (B) | 5,010.03 | 4,749.32 | 3,274.69 | 2,364.16 |
| Total assets (A+B=C) | 7,932.82 | 7,449.13 | 4,827.08 | 3,591.76 |
| Total equity (D) | 3,214.74 | 2,985.46 | 2,309.46 | 1,936.55 |
| Total liabilities (E) | 4,718.08 | 4,463.67 | 2,517.62 | 1,655.21 |
| Total equity and liabilities (D+E = F) | 7,932.82 | 7,449.13 | 4,827.08 | 3,591.76 |
Quantitative and Qualitative Disclosures about Market Risk
Our Board of Directors has overall responsibility for the establishment and oversight of our risk management framework. The Senior Management has developed and monitors our risk management policies. The Senior Management reports regularly to our Board of Directors on its activities. Our risk management policies are established to identify and analyse the risks faced by us, to set appropriate risk limits and controls and to monitor risks and adherence to limits. We regularly review our risk management policies and systems to reflect changes in market conditions and our activities.
We are exposed to market risk, credit risk and liquidity risk, among others. Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates - will affect the Companys income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency.
Credit risk is the risk of financial loss to our Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from our receivables from customers. Our exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate. The company mainly deal with customers who are leading players in the industry and have strong credit worthiness. A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which Company operates and other macro-economic factors. Credit quality of a customer is assessed based on its credit worthiness and historical dealings with the Company, market intelligence and goodwill. Outstanding customer receivables are regularly monitored. The management uses a simplified approach for the purpose of computation of expected credit loss for trade receivables and other receivables.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is t o ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
Financial instruments affected by market risk include borrowings and investments. Our principal financial liabilities comprise trade payables, borrowings and security deposits. The main purpose of these financial liabilities is to finance and support our operations. Our principal financial assets include investments, trade receivables and cash and cash equivalents that derive directly from our operations.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companys exposure to the risk of changes in market interest rates relates primarily to the Companys borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
Segment Reporting
We operate in the single business segment of winding wires, there are no reportable segments of business as defined under Ind AS 108.
Known Trends and Uncertainties
Except as described in "Our Business" and "Risk Factors" on pages 211 and 28, respectively, there are no known trends or uncertainties which are expected to have a material adverse impact on our revenues from operations.
Unusual or Infrequent Events or Transactions
Other than as described in this section and in "Risk Factors" and "Our Business" on pages 28 and 211, respectively, there have been no events or transactions which may be described as "unusual" or "infrequent".
Significant Economic Changes
Other than as described in this section and in "Risk Factors", "Industry Overview and "Our Business" on pages 28, 137 and 211, respectively, there have been no significant economic changes that materially affected or are likely to affect income from continuing operations.
Material Increases in Net Revenues and Sales
Material increases in our net revenues and sales are primarily due to the reasons described in "— Results of Operations based on our Restated Financial Statements above on page 371.
Future Change in Relationships between Costs and Income
Other than as described in this section and the sections "Risk Factors" and "Our Business" on pages 28 and 211, respectively, there are no known factors which will have a material adverse impact on the future relationship between our costs and income.
New Product or Business Segments
Apart from the disclosures in "Our Business" on page 211, we currently have no plans to develop new products or establish new business segments that are expected to have a material impact on our business, results of operations or financial condition.
Supplier or Customer Concentration
We depend on certain of our customers for a significant portion of our revenue. In the three-month period ended June 30, 2025 and during Fiscals 2025, 2024 and 2023, our top 10 customers accounted for 53.97%, 52.54%, 57.10% and 58.99%, respectively, of our total revenue from operations. For further information, see "Risk Factors - We depend on certain customers for a significant portion of our revenue from operations. Our top 10 customers contributed to 53.97%, 52.54%, 57.10% and 58.99% of our revenue from operations for the three-month period ended June 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Any decrease in demandfrom such customers, the loss of such customers or our inability to diversify our customer base could have an adverse effect on our business, results of operations, financial condition and cash flows. " on page 28.
We also depend on certain of our suppliers for a significant portion of our raw materials. In the three-month period ended June 30, 2025 and during Fiscals 2025, 2024 and 2023, our top 10 suppliers accounted for 98.91%, 98.45%, 96.93% and 98.58% of our total cost of raw materials and components purchased, respectively. For further information, see "Risk Factors - Our business is dependent on suppliers to procure our raw materials (top 10 suppliers contributed to 98.91%, 98.45%, 96.93% and 98.58% of our total cost of raw materials and components purchased for the three-month period ended June 30, 2025, and Fiscals 2025, 2024, and 2023, respectively). We have not entered into long-term agreements with these suppliers, and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on our business, financial condition, cash flows and results of operations." on page 30.
Competitive Conditions
For a description of the competitive conditions in which we operate, see "Our Business — Competition" on page 234. For further details, see "Risk Factors — We operate in a competitive business environment. Failure to compete effectively against our competitors and new entrants to the industry may adversely affect our business, financial condition and results of operations" on page 40.
Seasonality of Business
Our business is not seasonal in nature.
Recent Accounting Pronouncements
As at the date of this Red Herring Prospectus, there are no recent accounting pronouncements which would have a material effect on our results of operations or financial condition.
Statutory Auditors Qualifications or Observations
There are no auditor qualifications in the examination report that have not been given effect to in the Restated Financial Statements.
Significant Developments since June 30, 2025
Other than as disclosed in this Red Herring Prospectus, there have not been any circumstances since June 30, 2025 which have materially and adversely affected or are likely to affect our business or profitability, the value of our assets, or our ability to pay our liabilities, for the next 12 months.
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