Kwick Forensic Solutions Ltd Management Discussions

The following discussion is intended to convey managements perspective on our financial condition and results of operations for the financial year ended March 31, 2026, 2025 and 2024. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Financial Information" on page 154 of this Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors" on page 20 of this Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 15 of this Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Kwick Forensic Solutions Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for the financial year ended March 31, 2026, 2025 and 2024 included in this Red Hearing Prospectus beginning on page 154 of this Red Herring Prospectus.

BUSINESS OVERVIEW

Kwick Forensic Solutions Limited provides end-to-end forensic products and services across four segments—Forensic Science & Physical Evidence Solutions, Mobile CSI Vehicles, Cyber & Digital Forensics, and DNA Forensics—together with a services line for scanner rentals/AMCs. Offerings include kits/consumables, handheld devices, Chamber & cabinets and integration of mini/macro mobile CSI vehicle, backed by training and after-sales support. The Company serves a mix of Government and private sector customers including police departments, forensic laboratories, fingerprint bureaus, training institutes and other customers nationwide through GeM/e-procurement and direct channels, operating under ISO-backed quality systems with long standing relationships with OEM. Company has its presence in PAN India. Currently company is operating through its registered office located at New No 12 Old No 11 East Park Road, Shenoy Nagar, Chennai, Tamil Nadu, India, 600030 and in addition having its branch office at 2nd Floor, Old No. 37, New No. 68, Taylors Road, Kilpauk, Chennai - 600010, which is used for its R&D division, demonstration centre and proof-of-concept private forensic laboratory.

For detailed information on the business of our Company please refer to "Our Business" beginning on page numbers 84 of this Red Herring Prospectus.

FINANCIAL KPIs OF THE COMPANY:

The KPIs disclosed below have been used historically by our Company to understand and analyse the business performance, which in result, help us in analyzing the growth of various verticals in comparison to our peers.

The KPIs disclosed below have been approved by a resolution of our Audit Committee dated 25-05-2026 and the members of the Audit Committee have verified the details of all KPIs pertaining to our Company. Further, the members of the Audit Committee have confirmed that there are no KPIs pertaining to our Company that have been disclosed to any investors at any point of time during the three years period prior to the date of filing of this red herring prospectus. Further, the KPIs herein have been certified by M/s. A B C D & Co. LLP, Chartered Accountants, by their certificate dated 26.06.2026.

The KPIs of our Company have been also disclosed in the sections "Business Overview" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" starting on page 136 and 264, respectively.

Our Company confirms that it shall continue to disclose all the KPIs included in this section on a periodic basis, at least once in a year (or any lesser period as determined by the Board of our Company), for a duration of one year after the date of listing of the

Equity Shares on the Stock Exchange or till the complete utilization of the proceeds of the Fresh Issue as per the disclosure made in the Objects of the Issue Section, whichever is later. Any change in these KPIs, during the aforementioned period, will be disclosed by the Company. Uptill that, the ongoing KPIs shall continue to be certified as certified by M/s. A B C D & Co. LLP, Chartered Accountants, by their certificate dated 26.06.2026 vide UDIN No. 26214520WXKFKU6560.

Key Performance Indicators of our Company

Particulars	Financial Year ended March 31, 2026	Financial year ended March 31, 2025	Financial year ended March 31, 2024
Revenue from Operations	10,571.28	6,502.69	3,018.33
Foreign currency gain / (loss)	(0.41)	0	0
Exports revenue as % of revenue from operations (%)	0.16%	0.18%	0.04%
Cost of goods sold as % of revenue from operations (%)	72.94%	68.85%	62.70%
EBITDA	1,906.49	1,224.89	544.51
EBITDA margin (%)	18.03%	18.84%	18.04%
EBIT	1,858.15	1,188.57	511.65
ROCE (%)	44.88%	38.15%	39.07%
PAT margin (%)	12.78%	13.16%	9.39%
ROE (%)	38.98%	45.34%	41.43%
Net working capital days	124	141	98
Debt to equity ratio (times)*	0	0.12	0.33
Fixed asset turnover ratio (times)	32.77	37.01	22.17
Return on Assets	30.70%	25.40%	26.67%

*The company has no debt outstanding as on 31^st March ,2026. Notes

S. No. Ratios	Numerator	Denominator
1. EBITDA Margin	Net profit before exceptional Items & tax expense + depreciation & amortization + Finance cost	Revenue from operations
2. Return on capital Employed	Profit Before interest, Tax & Exceptional item	Capital Employed = Tangible Net Worth + Total Debt + Deferred Tax Liability
3. PAT margin	Net profit after tax-Exceptional items	Revenue from operations
4. Return on Equity	Net profit after tax-Exceptional items	Average Total Equity [(Opening Equity Share capital + Opening Other equity + Closing Equity Share Capital + Closing Other Equity)/2]
5. Net Woking Capital Days	Working Capital * 365	Revenue from operations
6. Debt Equity Ratio	Total Debts (Long term Borrowings + Short term Borrowings)	Total Equity (Equity Share capital + Reserve & Surplus)
7. Fixed Assets Turnover Ratio	Revenue from operations	Average Fixed assets
8. Return on asset	EBIT	All asset

Explanation of the relevance of the Key Performance Indicators for the business operations of our Company is set out below:

Sr. No. KPI	Explanation
1. Revenue from operations	Revenue from Operations is used by the management to track the revenue profile of the business and in turn helps assess the overall financial performance of the Company and size of the business.
2. EBITDA (R lakh)	EBITDA provides information regarding the operational profitability of the business.
3. EBITDA Margin (%)	EBITDA Margin is an indicator of the operational efficiency before the depreciation and amortization expenses.
4. Profit after tax (R lakh)	Profit after tax provides information regarding the overall profitability of the business after all the non-tax expenses and tax expenses.
5. Profit after tax Margin (%)	PAT Margin is an indicator of the overall profitability and financial performance of the business.
6. Return on Equity (RoE) (%)	RoE provides how efficiently the Company generates profits from shareholders funds.
7. Return on Capital Employed (RoCE) (%)	ROCE provides how efficiently the Company generates earnings from the capital employed in the business.
8. Cost of Goods Sold (COGS) (R lakh)	COGS directly impacts a companys profitability and is the direct cost associated with producing or acquiring the goods by the Company.
9 Total Borrowings (R lakh)	Total borrowings provides an insight to the management of the quantum of outside fund that has been utilized in the business operations.
10. Net Debt - Equity Ratio (times)	Our Management track the net outside debt vis-a-vis equity employed by them in the business to access the amount of leverage and financial stability.
11. Net Debt - EBIDTA Ratio (times)	This indicator provides our Company with a measurement of the number years it will take for the Company to pay back its debt if net debt and EBIDTA are held constants.
12. Asset Turnover Ratio (times)	The Asset Turnover Ratio provides how efficiently the Company generates revenue from its assets

Set forth below are some of our key operational performance indicators: -

Metric	Financial Year ended March 31, 2026	Financial year ended March 31, 2025	Financial year ended March 31, 2024
Total number of customers served (Nos.)	95	124	128
No. of Mobile Forensic Vans Sold	25	47	21

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 23 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

• Tender/award timing and order-book conversion:

• Budget allocation to law-enforcement/forensic modernisation

• Procurement policies & rates: GeM/e-proc conditions, technical eligibility, purchase preferences and any change in rate- contract margins.

• OEM/technology partnerships: Continuity of supply, pricing, certifications, and channel terms with key OEMs.

• Training & adoption: Throughput of workshops, simulator training, and user onboarding, which drive utilisation and follow-on consumables/AMCs.

• Changes, if any, in the regulations / regulatory framework / economic policies in India and / or in foreign countries, which affect national & international finance.

• Litigation/claims and performance guarantees: Customer disputes, LDs, BG invocations, or penalties on delayed supplies.

• Customer concentration: Share of revenue from a few large departments/states and timing of their procurement.

• Failure to attract and retain highly skilled professionals, our promoters, directors and senior management;

• Technological changes or obsolescence that may require continuous upgrades and investments;

• Natural disasters, pandemics, or other force majeure events disrupting operations;

• Performance of Companys competitors;

• Significant developments in Indias economic and fiscal policies;

• Volatility in the Indian and global capital market

Significant Accounting Policies

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). These financial Statements are prepared to comply in all material respects with the Accounting Standards notified under Section 133 of the Companies Act, 2013, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. The accounting policies adopted in the preparation of the financial statements are consistent throughout the year and with the previous financial year.

The Restated Statement of Assets and Liabilities (Annexure I) of the Company as at March 31, 2026, March 31, 2025, March 31, 2024, the Restated Statements of Profit and Loss (Annexure II), the Restated Cash Flow Statement (Annexure III) for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 (hereinafter collectively referred to as "Restated Financial Statements") have been prepared to comply in all material respects with the provisions of Section 26 of Part I of Chapter III of the Companies Act, 2013, the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), and applicable rules thereunder, the Accounting standards as prescribed under the Companies (Accounting Standards) Rules, 2021, Guidance Note on Reports in Company Prospectuses issued by the Institute of Chartered Accountants of India (ICAI), and other

applicable regulatory provisions.

The Restated Financial Statements are based on the information extracted by the management from the audited financial statements for the March 31, 2026, March 31, 2025, March 31, 2024, approved by the Board of Directors of the company. The financial statements have been restated and regrouped to reflect all the adjustments necessary in line with the generally accepted accounting principles (GAAP) in India.

Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

i. Inventory

Inventories are valued as under:-

1. inventories : Lower of cost or net realizable value

2. Scrap : At net realizable value.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Costs included all charges in bringing the goods to the point of sale, including tax, duty or such other levies other than those subsequently recoverable from the revenue authorities.

Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from contracts with customers:

Revenue is recognized in accordance with the Accounting Standard (AS) 9 - Revenue Recognition, issued by the Institute of Chartered Accountants of India (ICAI). Revenue from contracts involving the supply, integration, and commissioning of forensic equipment - including hardware with embedded software - is recognized as a single performance obligation, considering the high degree of interdependence between the components. Revenue is recognized upon the transfer of significant risks and rewards of ownership to the customer, which generally occurs upon delivery or commissioning of the system, in accordance with the terms of the contract.

In cases where the contract includes essential installation, configuration, or commissioning services necessary to make the equipment operational, and the criteria for reliable measurement are met, revenue is recognized over time using the percentage- of-completion method, determined based on cost-to-cost or milestone progress, as appropriate. This applies where the customer receives and consumes the benefits as the service is performed, or where the customer controls the asset as it is created, or where the Company has no alternative use for the equipment and has an enforceable right to payment for performance completed to date.

Revenue from Services - Equipment Rental

Revenue from rental of forensic equipment is recognized over the period of the rental agreement on a straight-line basis, as and when the services are rendered, and the right to use the equipment is transferred to the customer. Revenue is recognized only when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably.

Property, Plant & Equipment

Property, Plant & Equipment are stated at cost net of GST and includes amounts added on revaluation, less accumulated

depreciation and impairment loss if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Property, Plant & Equipments are capitalised. Each part of an item of property, plant & equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

Intangible Assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities) and any directly attributable expenditure on making the asset ready for its intended use. Subsequent expenditure on an intangible asset after its purchase / completion is recognised as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

Assets where useful life is same as Schedule II

Asset	Useful Life (In Years)
Computers	3
Electrical Equipment	5
Furniture & Fittings	10
Vehicle	8
Intangible Asset	10
Plant & Machinery	15

Depreciation / Amortisation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the WDV method. Depreciation is provided based on useful life of the assets as prescribed in Schedule ll to the Companies Act, 2013. Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale.

Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. ln assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life

Foreign Currency transactions

(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of transaction.

(b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

(c) Non monetary foreign currency items are carried at cost.

(d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of Property, Plant & Equipments, in which case they are adjusted to the carrying cost of such assets.

Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.

Accounting for taxes on income

Income tax expense is accounted in accordance with Accounting Standard - 22 "Accounting for Taxes on Income" which includes current tax and deferred tax.

Current tax: The current charge for the income taxes is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax: Deferred taxes reflect the impact of current year timing differences between the taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax assets are recognised only to the extent that there is reasonable/ virtual certainty that sufficient future taxable income will be available.

Provisions and Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value.

Contingent Liabilities are not recognized but disclosed in Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements."

Employee Benefits

Short Term

Short term employee benefits are recognised as an expense as per the companys scheme based on expected obligations.

Post Retirement

Post retirement benefits comprise of provident fund and gratuity which are accounted as follows :

Provident Fund

This is a defined contribution plan. Contributions remitted to provident fund authorities in accordance with the relevant statute/rules are charged to statement of profit and loss as and when due. The company has no further obligations other than its monthly contributions. Presently, the company has not deducted any amount towards Provident fund.

Gratuity

This is a defined benefit plan. The liability is determined based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the statement of profit and loss. The company has provided for the provision as per AS-15.

Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shareholders.

Cash Flow

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of non - cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities of the Company are segregated accordingly.

Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Operating Cycle

Based on the nature of activities of the Company and the normal time between the acquisition of the assets and their realisation in cash and cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

Changes In Accounting Policies in the Years Covered in the Financials

There was no change in accounting policies, which needs to be adjusted in the Financial Statement, except: - Accounting of retirement benefits was accounted on cash basis which is not as per AS-15 (Revised) "Employee benefits", however during the restatement Company has accounted such retirement benefits basis actuarial valuation certificate.

DISCUSSION ON RESULT OF OPERATION

Our revenue and expenses are reported in the following manner:

a. Revenues

• Revenue from Operations

Our Companys revenue is primarily generated from sale of provides end-to-end forensic products and services across four segments—Forensic Science & Physical Evidence Solutions, Mobile CSI Vehicles, Cyber & Digital Forensics, and DNA Forensics- together with a services line for handheld scanner rentals/AMCs.

• Other Income

Our other income primarily consists of Interest on fixed deposits and bank balances or Profit on sale/disposal of fixed assets

b. Expenditure

• Purchase of Goods includes Purchases of products/devices/software licences; domestically procured kits and consumables; materials and assemblies used for vehicle fabrication/integration (accessories, fixtures, enclosures) and related inbound costs such as freight, customs duty, clearing & forwarding and other inward logistics.

• Changes in Inventories includes movement in inventories of kits/consumables, devices and instruments, along with work-inprogress relating to vehicle fabrication/integration and partially completed supply lots.

• Employee Benefit Expenses includes Salaries, wages, bonuses and incentives, Contribution to provident fund/ESI, Staff and welfare expenses and other statutory benefits, Gratuity expense.

• Finance Costs mainly include Interest on cash-credit/working-capital limits, term loans and unsecured borrowings; bank charges and processing fees; bill-discounting costs; and commission/charges on bank guarantees, letters of credit and other ancillary financing arrangements.

• Depreciation and Amortisation Expense includes depreciation on property, plant and equipment (including vehicles, demo units and tools) and amortisation of intangible assets (including software and capitalised internally developed intangibles), recognised in accordance with Ind AS and Schedule II to the Companies Act, 2013.

• Other Expenses includes Payment to Legal and professional fees, commission, selling and marketing (exhibitions, collateral, digital media), office and administrative expenses, employee recruitment costs, travel and conveyance, rent, insurance, utilities, repairs and maintenance (equipment/vehicles), IT/SaaS subscriptions, tender/GeM documentation costs, field support for installations/demos/workshops, and warranty/AMC service inputs, along with miscellaneous items not classified elsewhere.

RESULTS OF OUR OPERATIONS

Particulars	For the Year Ended March 31, 2026	% of Total Income	% Increase/ (Decrease)	For the Year Ended March 31, 2025	% of Total Income	% Increase/ [Decrease)	For the Year Ended March 31, 2024	% of Total Income
INCOME:
Revenue from Operations	10,571.28	99.91%	62.57%	6502.69	99.93%	115%	3018.33	99.74%
Other Income	9.06	0.09%	86.45%	4.86	0.07%	(38%)	7.87	0.26%
Total Income	10,580.34	100.00%	62.59%	6507.55	100%	115%	3026.20	100%
EXPENSES:
Purchase of goods	7,998.16	75.59%	63.06%	4905.05	75.37%	158%	1901.88	62.85%
Change in inventories	(287.08)	-2.71%	-32.91%	(427.90)	(6.58%)	4454%	(9.40)	(0.31%)
Employee Benefit Expense	495.85	4.69%	27.49%	388.94	5.98%	121%	176.24	5.82%
Finance Costs	36.71	0.35%	-45.57%	67.45	1.04%	(49%)	133.02	4.40%
Depreciation and Amortization Expense	48.34	0.46%	33.07%	36.33	0.56%	11%	32.85	1.09%
Other Expenses	466.91	4.41%	12.08%	416.57	6.40%	1%	412.97	13.65%
Total Expenses	8,758.90	82.78%	62.61%	5386.43	82.77%	103%	2647.56	87.49%
Profit before exceptional items Tax	1,821.45	17.22%	62.47%	1121.12	17.23%	196%	378.64	12.51%
Exceptional Items
Profit before Tax	1,821.45	17.22%	62.47%	1121.12	17.23%	196%	378.64	12.51%
Tax Expenses:
Current Tax	470.02	4.44%	67.98%	279.80	4.30%	186%	97.90	3.23%
Deferred Tax	(1.28)	-0.01%	-91.25%	(14.62)	(0.22%)	435%	(2.73)	(0.09%)
Profit (Loss) for the period	1,350.77	12.77%	57.81%	855.94	13.15%	202%	283.47	9.37%

FISCAL YEAR ENDED MARCH 31, 2026 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2025 Revenue from Operations

Revenue from operations increased significantly by 62.57% to 10,571.28 lakhs in FY 2025-26 from ^6,502.69 lakhs in FY 2024-25. Justification for increase in Revenue of the Company in FY 25-26 as compared to FY 24-25

The rationale behind the increase of revenue by 62.57% to ^10,571.28 lakhs in FY 2025-26 from ^6,502.69 lakhs in FY 2024-25 was primarily driven by the increased emphasis on forensic science and scientific evidence within Indias criminal justice system. Three new acts (BNS, BNSS & BSA) have been enacted which mandates forensic evidences as pre-requisite for heinous crimes. The new legal framework places greater emphasis on technology-enabled investigation, evidence collection and forensic examination, including mandatory forensic visits in criminal cases where the punishment is seven years or more.

The government has planned an investment of ^30,00,000 lakhs over next 5 years for establishing network of forensic labs and Upgradation of Forensic Science Laboratories in States / Union Territories". There has been 2.1x Growth in Forensic Science a nd & Physical Evidence Solutions from ^1,859.28 Lakhs in FY24-25 to ^3910.84 lakhs in FY25-26 and 2.3x growth in Cyber & Digital forensics from ^1,507.05 in FY24-25 to ^ 3,522.83 lakhs in FY25-26.

Further, as per the press release issued by the Press Information Bureau dated January 3, 2026, the Government of India and State Governments are expected to invest ^30,000 crore over the next five years to build a network of forensic laboratories across the country. This increased policy focus on forensic infrastructure, mobile forensic capabilities, digital evidence and scientific investigation has supported demand for the Companys offerings. (Source:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2211128&lang=1&reg=3&utm )

During Fiscal 2026, revenue from Forensic Science & Physical Evidence Solutions increased by 2.10 times from ^1,859.28 lakhs in Fiscal 2025 to ^3,910.84 lakhs in Fiscal 2026. Revenue from Cyber & Digital Forensics also increased by 2.34 times from ^1,507.05 lakhs in Fiscal 2025 to ^3,522.83 lakhs in Fiscal 2026. These increases were the key contributors to the overall growth in re venue from operations during Fiscal 2026.

Other Income

Other income increased by 86.45% to ^9.06 lakhs in FY 2025-26 compared to ^4.86 lakhs in FY 2024-25 due to interest income earned on Fixed Deposits.

EXPENSE

Purchase of Goods

Purchase of Goods increased by 63.06% to ^7,998.16 lakhs in FY 2025-26 from ^4,905.05 lakhs in FY 2024-25 in line with increase in Revenue from operations by 62.57%.

Changes In inventories

Change in Inventories declined by 32.91% to R(287.08) lakhs in FY 2025-26, as against R(427.90) lakhs in FY 2024-25 is due to better planning in inventory management and shift to procurement of specialized equipments on order basis.

Employee Benefit Expense

Employee Benefit Expenses rose by 27.49% to R495.85 lakhs in FY 2025-26 compared to R388.94 lakhs in FY 2024-25. The increase is mainly due to increase in the remuneration of Directors and KMP to motivate and retain the KMP, the expense has been increased in line with industry standards.

Finance Costs

Finance Costs declined by 45.57% to R36.71 lakhs in FY 2025-26, as against R67.45 lakhs in FY 2024-25. The company has improved collections and thereby repaid all the existing borrowings which has led to significant drop in finance cost.

Depreciation and Amortisation Expense

Depreciation and Amortization increased by 33.07% to R48.34 lakhs in FY 2025-26 from R36.33 lakhs in FY 2024-25 . The increase is primarily attributable to due to addition of R206.59 lakhs in Fixed Asset. The major addition is Plant & Machinery of Rs. 164.50 consisting of Handheld X- Ray Scanners for detection of Liquor.

Other Expenses

Other Expenses were broadly stable at R466.91 lakhs in FY 2025-26, compared to R416.57 lakhs in FY 2024-25. The increase in absolute value is marginal as it consists of fixed costs and overheads which remains unaffected with increase in Revenue from operations.

Profit After Tax

After accounting for taxes at applicable rates, our Company reported a net profit of R1350.77 lakhs in FY 2025-26, which is increased by 57.81% as compared to a net profit of compared to R855.94 lakhs in FY 2024-25. The reason behind the increase in profit after tax was due to higher overall revenue which was 62.57% higher than the revenue of the previous year.

FISCAL YEAR ENDED MARCH 31, 2025 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024 INCOME

Revenue from Operations

Revenue from operations increased significantly by 115% to R6,502.69 lakhs in FY 2024-25 from R3,018.33 lakhs in FY 2023-24. Justification for increase in Revenue of the Company in FY 24-25 as compared to FY 23-24

The rationale behind the increase of revenue by 115% to R6,502.69 lakhs in FY 2024-25 from R3,018.33 lakhs in FY 2023-24 was due to increase in demand and market size for CSI Vehicles & the need for Forensic Investigation. The Government is focused on strengthening the capacities for investigation and prosecution, including the eco-system for forensic sciences in the country.

The government has allocated and approved R20,000 Lakhs out of R2,08,050 lakhs for 20 States for "Modernization /Upgradation of Forensic Science Laboratories in States / Union Territories". There has been 4.05x Growth in Mobile CSI Vehicles from R405.08 Lakhs in FY23-24 to R1640.66 lakhs in FY24-25 and 1.58x growth in Forensic Science and & Physical Evidence Solutions from R1,178.74 Lakhs in FY23-24 to R 1,859.28 lakhs in FY24-25.

In order to strengthen DNA Analysis and Cyber Forensic Capacities in State Forensic Science Laboratories (State FSLs), the government has allocated and approved ^18,528 Lakhs out of ^24,529 lakhs. With advent of BNSS laws emphasizing on DNA Profiling, the company has diversified into DNA products has achieved 14.43x growth from ^42.66 Lakhs in FY23-24 to ^615.72 lakhs in FY24-25.

Other Income

Other income declined by 38.00% to ^4.86 lakhs in FY 2024-25 compared to ^7.87 lakhs in FY 2023-24 due to decline in profit of Sale of Fixed Assets from 4.38 lakhs in FY23-24 to 0.09 lakh in FY24-25.

EXPENSE

Purchase of Goods

Purchase of Goods increased by 158% to ^4,905.05 lakhs in FY 2024-25 from ^1,901.88 lakhs in FY 2023-24. This increase is attributable to following reasons:

1) Increase in Revenue from operations by 115%

2) Increase in inventories for DNA Equipment by 400 Lakhs to capture the growing DNA Forensics market which resulted in increase in purchase of goods by 26%.

Changes In inventories

Change in Inventories amounted to ^(427.90) lakhs in FY 2024-25, as against ^(9.40) lakhs in FY 2023-24 is due to Increase in inventories for DNA equipment by 400 Lakhs in FY2024-25 as DNA equipment are capital intensive.

Employee Benefit Expense

Employee Benefit Expenses rose by 121% to ^388.94 lakhs in FY 2024-25 compared to ^176.24 lakhs in FY 2023-24. The increase is mainly due to increase in the remuneration of Directors and KMP in line with increase in the profit and revenue from operations. Further to motivate and retain the KMP, the expense has been increased in line with industry standards.

Finance Costs

Finance Costs declined by 49% to ^67.45 lakhs in FY 2024-25, as against ^133.02 lakhs in FY 2023-24. The decrease is due to significant decrease in borrowings during the year. The company has received private placement funds amounting to ^930 lakhs thereby reducing the dependency on borrowings and decline in finance cost.

Depreciation and Amortisation Expense

Depreciation and Amortization increased by 11% to ^36.33 lakhs in FY 2024-25 from ^32.85 lakhs in FY 2023-24. The increase is primarily attributable to due to addition of ^38.92 lakhs in Fixed Asset.

Other Expenses

Other Expenses were broadly stable at ^416.57 lakhs in FY 2024-25, compared to ^412.97 lakhs in FY 2023-24. The increase is marginal as it consists of fixed costs and overheads which remains unaffected with increase in Revenue from operations.

Profit After Tax

After accounting for taxes at applicable rates, our Company reported a net profit of ^855.94 lakhs in FY 2024-25, which is increased by 202% as compared to a net profit of compared to ^283.47 lakhs in FY 2023-24. The reason behind the increase in profit after tax was due to higher overall revenue which was 115.81% higher than the revenue of the previous year.

In addition, the profitability was further enhanced due to the savings in Finance cost and Other expense with increase in Revenue from operation. The total expense of FY2023-24 comprises of Finance cost (5%) and Other expense (15.6%) which has declined to

Finance cost (1.25%) and Other expense (7.73%) in FY2024-25. CASH FLOWS

Particulars	For the year ended
	31st March 2026	31st March 2025	31st March 2024
Net Cash Flow from / (used in) Operating Activities	762.30	465.09	(260.57)
Net Cash Flow from / (used in) Investing Activities	(273.17)	(97.40)	(40.21)
Net Cash Flow from / (used in) Financing Activities	(379.60)	835.59	(86.61)

Cash Flows from Operating Activities

1. FY 2026

Net cash generated from operating activities was Rs. 762.30 Lakhs. This comprised the profit before tax of Rs. 1821.45 Lakhs, whic h was primarily adjusted for depreciation and amortization expenses of Rs.48.34 Lakhs, interest expenses of Rs. 36.71 Lakhs, gratuity provision of Rs. 9.43 Lakhs, interest income of Rs. 8.94 Lakhs, and loss on sale of fixed assets of Rs. 3.42 Lakhs. The resultant operating profit before working capital changes was Rs. 1,910.41 Lakhs, which was primarily adjusted for an increase in inventories of Rs. 287.08 Lakhs, increase in trade receivables during the year of Rs. 309.02 Lakhs, increase in other current assets of Rs. 394.15 Lakhs, inc rease in other non-current assets of Rs. 42.71 Lakhs, decrease in trade payables during the year of Rs. 172.01 Lakhs, and an increase in other current liabilities during the year of Rs. 338.60 Lakhs. Cash generated from operations was Rs. 1044.04 Lakhs, which was reduced by net income tax paid of Rs. 281.74 Lakhs, resulting in a net cash flow generated from operating activities of Rs. 762.30 Lakhs.

2. FY 2025

Net cash generated from operating activities was Rs. 465.09 Lakhs. This comprised the profit before tax of Rs. 1,121.12 Lakhs, which was primarily adjusted for depreciation and amortization expenses of ^36.33 Lakhs, interest expenses of Rs. 67.45 Lakhs, gratuity provision of Rs. 21.77 Lakhs, interest income of Rs. 4.22 Lakhs, and profit on sale of fixed assets of Rs. 0.09 Lakhs. The resultant operating profit before working capital changes was Rs. 1,242.34 Lakhs, which was primarily adjusted for an increase in inventories of Rs. 427.90 Lakhs, increase in trade receivables during the year of Rs. 785.47 Lakhs, increase in other current assets of Rs. 234.93 Lakhs, increase in other non-current assets of Rs. 28.60 Lakhs, increase in trade payables during the year of Rs. 717.33 Lakhs, and an increase in other current liabilities during the year of Rs. 80.21 Lakhs. Cash generated from operations was Rs. 562.98 Lakhs, which was reduced by net income tax paid of Rs. 97.90 Lakhs, resulting in a net cash flow generated from operating activities of Rs. 465.09 Lakhs.

3. FY 2024

Net cash used in operating activities was Rs. 260.57 Lakhs. This comprised the profit before tax of ^378.64 Lakhs, which was primarily adjusted for depreciation and amortization expenses of Rs. 32.85 Lakhs, interest expenses of Rs. 133.02 Lakhs, gratuity provision of Rs. 4.93 Lakhs, interest income of Rs. 3.49 Lakhs, and profit on sale of fixed assets of ^4.38 Lakhs. The resultant operating profit before working capital changes was Rs. 541.57 Lakhs, which was primarily adjusted for an increase in trade receivables during the year of Rs. 1,012.79 Lakhs, decrease in other non- current assets of Rs. 41.53 Lakhs, decrease in other current assets of Rs. 21.64 Lakhs, increase in trade payables during the year of Rs. 149.83 Lakhs, an increase in other current liabilities of Rs. 68.92 Lakhs and an increase in inventories of Rs. 9.40 Lakhs. Cash used in operations was Rs. 198.70 Lakhs, which was further reduced by net income tax paid of ^61.87 Lakhs, resulting in a net cash used in operating activities of Rs. 260.57 Lakhs.

Cash Flows from Investing Activities

1. FY 2026

Net cash used in investing activities was Rs. 273.17 Lakhs, which primarily comprised of purchase of property, plant & equipment and intangible assets of Rs. 206.59 Lakhs, capital work in progress of Rs. 75.47 Lakhs, long term loans and advances of Rs. 0.44 Lakhs, partly offset by interest income received of Rs. 8.94 Lakhs and sale of tangible assets of Rs. 0.40 Lakhs.

2. FY 2025

Net cash used in investing activities was Rs. 97.40 Lakhs, which primarily comprised of purchase of property, plant & equipment and intangible assets of Rs. 38.92 Lakhs, capital work in progress of Rs. 61.70 Lakhs, long term loans and advances of Rs. 1.50 Lakhs, par tly offset by interest income received of Rs. 4.22 Lakhs and sale of tangible assets of Rs. 0.50 Lakhs.

3. FY 2024

Net cash used in investing activities was Rs. 40.21 Lakhs, which primarily comprised of purchase of property, plant & equipment of Rs. 49.52 Lakhs, partly offset by interest income received of Rs. 3.49 Lakhs and sale of tangible assets of Rs. 5.82 Lakhs.

Cash Flows from Financing Activities

1. FY 2026

Net cash flow from financing activities was Rs. 379.60 Lakhs, which includes proceeds from short-term borrowings of Rs. 325.61 Lakhs, repayment of long-term borrowings of Rs. 8.69 Lakhs, and finance cost paid of Rs. 53.98 Lakhs.

2. FY 2025

Net cash flow from financing activities was Rs. 835.59 Lakhs, which predominantly comprised of proceeds from issue of equity shares including securities premium of Rs. 947.97 Lakhs, proceeds from short-term borrowings of Rs. 10.59 Lakhs, repayment of long-term borrowings of Rs. 8.69 Lakhs, and finance cost paid of Rs. 114.29 Lakhs.

3. FY 2024

Net cash used in financing activities was Rs. 86.61 Lakhs, which predominantly comprised of proceeds from issue of equity shares including securities premium of Rs. 320.01 Lakhs, repayment of short-term borrowings of Rs. 285.20 Lakhs, repayment of long-term borrowings of Rs. 5.77 Lakhs, and finance cost paid of Rs. 115.65 Lakhs.

INFORMATION REQUIRED AS PER ITEM (II) (C) (iv) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

1. Unusual or infrequent events or transactions

Except as described in this Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent.

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

Other than as described in the section titled "Risk Factors" beginning on page of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

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

Other than as described in this Red Herring Prospectus, particularly in the sections Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 30 and 247, respectively, to our knowledge, there are no known trends or uncertainties that are expected to have a material adverse impact on our revenues or income from continuing operations

4. Future changes in relationship between costs and revenues, in case of events such as future increase in labour or material costs or prices that will cause a material change are known.

Our Companys future costs and revenues can be impacted by an increase in employee costs as the company looks to hire talent with new skills and capabilities for the digital economy who may be in short supply.

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

Increases in our revenues are by and large linked to increases in the volume of business.

6. Total turnover of each major industry segment in which the issuer company operates.

The Company is operating in providing Forensic Products along with services in the industry. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page of this Red Herring Prospectus.

7. Status of any publicly announced new products or business segments

Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Red Herring Prospectus.

8. The extent to which the business is seasonal.

Our Companys business is not seasonal. However, the business of the Company does depend on countrys economy situation and inflation.

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

Our Company was significantly dependent on top 10 customers. For further details refer Risk Factor No. under the chapter titled

"Riskfactor and "Our Business" on page and of Red Herring Prospectus respectively.

10. Competitive Conditions

We face competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in section titled "Our Business" on page of this Red Herring Prospectus