Mayasheel Ventures 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, 2025, the financial year ended March 31, 2024, the financial year ended March 31, 2023. 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 207 of the Draft Red Herring Prospectus. This discussion contains forward-looking statements, reflects our current views on 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 26 of this Draft Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements. For further details regarding forward-looking statements, kindly refer to to the chapter titled "Forward-Looking Statements" on page 17 of this Draft 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 months ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us" or "our" refers to Mayasheel Ventures Limited, our Company. Unless otherwise indicated, financial information included herein is based on our Restated Financial Statements for the financial year 2025, 2024, & 2023 included in this Draft Red Herring Prospectus beginning on page 207 of this Draft Red Herring Prospectus..

BUSINESS OVERVIEW

Our company is involved in the business of construction of Roads and Highways for NHIDCL (National Highways and Infrastructure Development Corporation Ltd.) and other Government Departments. Our Company transacts the business to construct, build, alter, convert, improve, design, establish, develop, dismantle, reconstruct all types of constructions works such as technically complex and high value projects like Express ways, National Highways, Flyovers, Bridges.

We are a "Class A" government contractor, which means we are qualified to take on large-scale and complex infrastructure projects. Our certification allows us to bid on high-value government contracts and execute them efficiently, ensuring compliance with regulatory standards. As a "Class A" contractor, we have demonstrated the expertise, financial capability, and technical resources necessary to handle a wide range of projects, from road construction and highways to electrical works and large-scale civil engineering tasks.

We undertake projects on EPC (Engineering, Procurement, and Construction) and BOQ (Bill of Quantity) basis.

Further, our company has also been involved in various electrical works, including the construction of electrical power houses, installation of streetlights, and development of transmission lines. Though the company has not generated any amount of revenue from these projects in three preceding financial years, However, we are actively seeking new opportunities or feasible assignments in this segment also.

This space has been left blank intentionally.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and BRLM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in this Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

The Board of Directors of our Company has approved and passed resolution on September 18, 2024 to authorize the Board of Directors to raise the funds by way of Initial Public Offering.

Mr. Amit Garg has been appointed as Managing Director on May 30, 2024.

Mr. Prabhat Rajpoot has been appointed as Non-Executive Non- Independent Director on May 30, 2024.

The board of directors in its meeting held on June 28, 2024 appointed Ms. Neelam Rani as Company Secretary & Compliance officer of the Company.

The board of directors in its meeting held on June 28, 2024 appointed Mr. Mahendra Kumar Sharma as Chief Financial Officer of the Company.

The Shareholders of our Company have appointed Ms. Meenu Garg as Executive Director on September 05, 2024.

The Shareholders of our Company appointed Mr. Anil Kumar Garg as Whole Time Director in the Shareholders meeting held on July 15, 2024.

The Shareholders of our Company appointed Mr. Rajpal Singh and Mr. Umesh Bansal as Independent Directors in the Shareholders meeting held on July 15, 2024.

The Board of Directors and shareholders of our company has approved the audited financial statement of the company for the period ended March 31, 2025 in their meeting held on May 19, 2025 and May 28, 2025 respectively.

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 26 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

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

Companys results of operations and financial performance;

Performance of Companys competitors;

Significant developments in Indias economic and fiscal policies;

Failure to adapt to the changing needs of the ayurvedic industry and in particular government policies and regulations may adversely affect our business and financial condition;

Volatility in the Indian and global capital markets.

This space has been left blank intentionally.

DISCUSSION ON RESULT OF OPERATION

(Rupees in Lakhs)

S.No. Particulars	For the Period ending 31st March 2025	% of total income	For the Period ending 31st March 2024	% of total income	For the Period ending 31st March 2023	% of total income
I Revenue from operations	17,100.81	99.39%	13,032.34	99.37%	12,636.63	99.42%
II Other Income	104.11	0.61%	82.1	0.63%	73.33	0.58%
III Total Income (I+II)	17,204.92	100.00%	13,114.44	100.00%	12,709.96	100.00%
IV Expenses:
Cost of Consumption	8361.85	48.60%	6,660.78	50.79%	6,573.64	51.72%
Other Direct Expense	5759.17	33.47%	4,398.55	33.54%	4,240.63	32.34%
Employee benefits expense	256.75	1.49%	148.63	1.13%	134.56	1.06%
Other expenses	259.94	1.51%	176.14	1.34%	217.98	1.72%
Total Expenses	14637.71	85.08%	11384.10	86.81%	11166.81	87.86%
V Profit Before Interest,	2567.21	14.92%	1730.34	13.19%	1543.15	12.14%
Depreciation and Tax (III-
IV) Depreciation and amortization expense	423.66	2.46%	374.67	2.86%	419.16	3.30%
VI Profit before Interest and	2143.55	12.46%	1355.67	10.34%	1123.99	8.84%
Tax
Finance Cost	575.95	3.35%	486.00	3.71%	475.39	3.74%
VII Profit before exceptional and extraordinary items and tax	1,567.61	9.11%	869.67	6.63%	648.59	5.10%
Exceptional Items	-	-	-	-	-	-
VIII Profit before extraordinary items and tax	1,567.61	9.11%	869.67	6.63%	648.59	5.10%
Extraordinary Items	38.60	0.22%	(0.76)	(0.01%)	-	-
(Profit/loss on sale of Fixed
Assets)
VI Profit before tax	1,529.00	8.89%	870.43	6.64%	648.59	5.10%
Provision for Tax	410.40	2.39%	233.6	1.78%	197.53	1.55%
VII Provision for Deferred Tax	(14.87)	(0.09%)	(14.51)	(0.11%)	(24.15)	(0.19%)
Profit (Loss) for the period	1,133.47	6.59%	651.34	4.97%	475.21	3.74%
from continuing operations

Items for Restated Financial Statements

Our Significant Accounting Policies

For Significant accounting policies please refer to "Significant Accounting Policies", under the Chapter titled "Restated Financial Statements" beginning on page 207 of the Draft Red Herring Prospectus.

Overview of Revenue & Expenditure

The following discussion on the results of operations should be read in conjunction with the Restated Financial Statements for the Financial year ended March 31, 2025, March 31, 2024 & March 31, 2023.

Our revenue and expenses are reported in the following manner:

Revenues

Revenue from operations

Our companys source of revenue is primarily generated from delivering highway construction services.

Other Income

Other income includes profit arising from interest income, discount received, and excess & shortage.

Expenditure

Our total expenditure primarily consists of the cost of consumption, other direct expenses, employee benefit expenses, finance costs, depreciation, and other expenses.

Cost of Consumption

The cost of Consumption includes changes in the stock of raw materials, changes in the stock of work-in-progress, and purchases during the year.

Other Direct Expenses

Other Direct Expenses majorly consist of expenses like Power & Fuel Expenses, Sub Contract Expenses, Machine Rent, Labour Wages & Salaries, Transportation Charges, and Repair & Maintenance.

Employment Benefit Expenses

Our employee benefits expense primarily comprises salaries, wages, bonuses, and other allowances; staff welfare expenses; and directors/partners remuneration.

Finance Cost

Our Finance Cost includes interest expenses on secured loans from banks and other financial institutions and bank charges.

Depreciation and Amortization Expenses depreciation and amortization expenses on fixed assets majorly include depreciation on plant & machinery, vehicles, furniture and fixtures, computers, temporary structures, and buildings.

Other Expenses majorly include expenses on professional & consultancy fees, traveling & conveyance expenses, permanent expenses, VAT Demand, and other expenses.

FISCAL YEAR ENDED MARCH 31, 2025, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total income for the financial year 2024-25 stood at Rs. 17,204.92 Lakhs whereas in the financial year 2023-24 it stood at Rs. 13,114.44 Lakhs representing an increase of 31.19%.

Reason: The increase in the total income of the company is due to a significant increase in the revenue of the company general growth in the business operations of the Company and increase in other income.

Revenue from operations

Revenue from operations for the financial year 2024-2025 stood at Rs. 17,100.81 Lakhs whereas for the financial year 2023-24, it stood at 13,032.34 Lakhs representing an increase of 31.22%.

Reason: Theres an increase in "revenue from operation" on account of an increase in "sale of highway construction services", due to business growth.

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Sale of Services	17,100.81	13,032.34
Total	17,100.81	13,032.34
Year on Year Increase/(Decrease)		31.22%

Other Income

Other income for the financial year 2024-2025 stood at Rs. 104.11 Lakhs whereas for the financial year 2023-24, it stood at Rs. 82.10 Lakhs representing an increase of 26.81%.

Reason: There is an increase in ‘other income majorly because of increase in interest income and discount received are as follows:

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Interest Income	88.50	81.52
Discount Received	14.51	0.58
Excess & Shortage	1.11	-
Total	104.11	82.10

Expenditure

Total Expenses

Total expenses for the financial year 2024-2025 stood at Rs. 15,637.32 whereas for the financial year 2023-24, it stood at Rs. 12,244.77 Lakhs representing an increase of 27.71%.

Reason: The increase in account of the increase in the cost of consumption, other direct expenses, and employee benefit expenses, finance cost, depreciation and amortization cost, other expenses.

Cost of Consumption

Cost of Consumption for the Financial Year 2024-2025, stood at Rs. 8,361.85 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 6,660.78 Lakhs representing an increase of 25.54%.

Reason: There is an increase in the ‘cost of consumption due to increases in purchases during the year shown as follows:

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Opening Stock of Raw Material	787.30	485.34
Opening Stock of Work in Progress	376.91	208.00
Add- Purchase During the years	9,411.52	7,131.65
Less- Closing Stocks of Raw Material	(1,157.39)	(376.91)
Less- Closing Stocks of Work in Progress	(1,056.49)	(787.30)
Total	8,361.85	6,660.78

Other Direct Expenses

Other Direct Expenses for the Financial Year 2024-25, stood at Rs. 5,759.17 Lakhs Whereas in Financial Year 2023-24 it stood at Rs. 4,398.55 Lakhs representing an increase of 30.93%.

Reason: Due to an increase in power and fuel expenses, machinery rent, wages & salaries, labour cess, site expenses and repairs and maintenance expenses.

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Power & Fuel Expenses	2,322.46	1,693.23
Machinery Rent	758.13	575.15
Wages & Salaries	914.27	571.26
Labour Cess	164.78	124.00
Insurance Exp	78.26	32.32
Repairs & Maintenance	275.20	168.90

Employment Benefit Expenses

Employee benefit expenses for the financial year 2024-25 stood at Rs. 286.95 Lakhs whereas for the financial year 2023-24, it stood at Rs. 148.63 Lakhs representing an increase of 93.06%.

Reason: There was an increase in ‘Employee benefit expenses because of an increase in Salaries, wages, bonuses, and other allowances, and staff welfare expenses, as company hired more employees and promoted the old ones and Directors Remuneration.

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Salaries, wages, bonus and other allowances	138.24	101.28
Staff welfare expenses	10.70	8.35
Directors/Partners Remuneration	138.00	39.00
Total	286.95	148.63

Finance Cost

Finance costs for the financial year 2024-25 stood at Rs. 575.95 Lakhs whereas for the financial year 2023-24, it stood at Rs. 486.00 Lakhs representing an increase of 18.51%.

Reason: This was primarily due to an increase overall borrowing during the year which include the following:

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Long-term Borrowings	3,249.78	2,736.83
Short-term Borrowings	1,355.05	1,488.41
Total	4,604.83	4,225.24

Depreciation and Amortization Expenses

The depreciation and amortization expenses for the financial year 2024-25 stood at Rs. 423.66 Lakhs whereas for the financial year 2023-24, they stood at Rs. 374.67 Lakhs representing an increase of 13.08%.

Reason: This increase is due to the addition of the fixed assets in the year 2024-25. Also in Financial Year 2024-25, WDV of fixed asset is more than the previous year.

(Rupees in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Opening balance	2,013.66	1,918.95
Addition	779.51	474.11
Deletion	219.49	4.72
Depreciation	423.66	374.67
Ending balance of fixed assets	2,150.03	2,013.66

Other Expenses

The other expenses for the financial year 2024-25 stood at Rs. 229.75 Lakhs whereas for the financial year 2023-24, it stood at Rs. 176.14 Lakhs representing an increase of 30.43%.

Reason: There is an increase in ‘Other expenses because of the increase in printing & stationary, property rent, repairs, pre incorporation expenses and professional & consultancy fees, business promotion and director sitting fees as shown below:

(Amounts in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Printing And Stationery	8.00	4.44
Property Rent	10.40	2.09
Repair Others	7.88	0.54
Pre Incorporation Expenses	20.08	-
Professional & Consultancy Fees	98.49	83.25
Business Promotion	7.37	5.86

Extraordinary items

Extraordinary items for the financial year 2024-25 stood at Rs. 38.60 Lakhs whereas for the financial year 2023-24, it stood at Rs. (0.76) Lakhs representing a decrease of 5,155.24%.

Reason: There is an increase due to loss occurred on the sale of the vehicle in the financial year 2024-25.

Restated Profit before Tax

The restated profit before tax for the financial year 2024-25 stood at Rs. 1,529.00 Lakhs whereas for the financial year 2023-24, it stood at Rs. 870.44 Lakhs representing an increase of 75.66%.

Tax Expenses

The Tax Expenses for the financial year 2024-25 stood at Rs. 395.53 Lakhs out of which the Current Tax was Rs. 410.40 Lakhs and the Deferred Tax being Rs. (14.87) Lakhs whereas in the Financial Year 2023-24 it stood at Rs. 219.09 Lakhs out of which for current tax being Rs. 233.60 Lakhs and deferred tax being Rs. (14.51) Lakhs representing an increase of 80.53%.

Reason: The tax expenses increased over the financial year due to an increase in profit before tax which was Rs. 870.44 Lakhs in the financial year 2023-24 but in financial year 2024-25 it came to Rs. 1,529.00 Lakhs.

Restated Profit after Tax

The restated profit after tax for the financial year 2024-2025 stood at Rs. 1,133.47 Lakhs whereas for the financial year 2023-24, it stood at Rs. 651.35 Lakhs representing an increase of 74.02%.

Reason for change in the Revenue from operation and Profit after tax

(Rupees in Lakhs)

Particulars	FY 2024-25	FY 2023-24
Revenue from Operation	17,100.81	13,032.34
Change in %	31.22%
Expenses	15,637.32	12,244.77
Change in %	27.71%
Profit after tax	1,133.47	651.35
Pat Margin in %	6.63%	5.00%

Increase in PAT Justification:

The company has witnessed a significant increase in Profit after Tax by 74.02%, reaching to Rs. 1,133.47 Lakhs from Rs. 651.35 Lakhs in the previous year. This increase is attributed to the following:

A steady growth in the revenue from operations of 31.22%, primarily through the Sale of Highway Construction.

The company is focusing on better cost management as the total expenses increased by only 27.71%, which is comparatively lower than the increase in revenue which directly impacts on the PAT margin of the company which increases from 5% to 6.63% in the current year.

One of the reasons for growth in PAT is an increase in other income which rose by 26.81%, to Rs. 104.11 lakhs in the financial year 2024-25 from Rs. 82.10 lakhs in the financial year 2023-24.

FISCAL YEAR ENDED MARCH 31, 2024, COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)

Revenues

Total Income

Total income for the financial year 2023-24 stood at Rs. 13,114.44 Lakhs whereas in the financial year 2022-23 it stood at Rs. 12,709.96 Lakhs representing an increase of 3.18%.

Reason: The increase in the total income of the company is due to a significant increase in the revenue of the company general growth in the business operations of the Company and increase in other income.

Revenue from operations

Net revenue from operations for the financial year 2023-2024 stood at Rs. 13,032.34 Lakhs whereas for the financial year 2022-23, it stood at 12,636.63 Lakhs representing an increase of 3.13%.

Reason: Theres an increase in "revenue from operation" on account of an increase in "sale of highway construction services", due to business growth.

Particulars	FY 2023-24	FY 2022-23
Sale of Services	13,032.34	12,636.63
Total	13,032.34	12,636.63
Year on Year Increase/(Decrease)	3.13%

Other Income

Other income for the financial year 2023-2024 stood at Rs. 82.10 Lakhs whereas for the financial year 2022-23, it stood at Rs.73.33 Lakhs representing an increase of 11.96%.

Reason: There is an increase in ‘other income majorly because of interest income earned on the following deposits:

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
FDR against Collateral	782.04	1,073.85
FDR against Margin (Bank Guarantee)	604.49	-
Security Deposits	300.10	300.10
Short Term Deposit	1,100.35	-

Expenditure

Total Expenses

Total expenses for the financial year 2023-2024 stood at Rs. 12,244.77 whereas for the financial year 2022-23, it stood at Rs. 12,061.37 Lakhs representing an increase of 1.51%.

Reason: The increase in account of the increase in the cost of consumption, other direct expenses, and employee benefit expenses due to increases in revenue from the operation of the company.

Cost of Consumption

Cost of Consumption for the Financial Year 2023-2024, stood at Rs. 6,660.78 Lakhs Whereas in Financial Year 2022-23 it stood at Rs. 6,573.64 Lakhs representing an increase of 1.33%.

Reason: There is an increase in the ‘cost of consumption due to increases in purchases during the year shown as follows:

(Amounts in Lakhs)

Particulars		FY 2023-24	FY 2022-23
Opening Stock of Raw Material		485.34	264.72
Opening Stock of Work in Progress		208.00	113.45
Add- Purchase During the years		7,131.65	6,888.81
Less- Closing Stocks of Raw Material		(376.91)	(208.00)
Less- Closing Stocks of Work in Progress		(787.30)	(485.34)
Total	6,660.78			6,573.64

Other Direct Expenses

Other Direct Expenses for the Financial Year 2023-2024, stood at Rs. 4,398.55 Lakhs Whereas in Financial Year 2022-23 it stood at Rs. 4,240.63 Lakhs representing an increase of 3.72%.

Reason: Due to an increase in sub-contract expenses, machinery rent, wages & salaries, labour cess, royalty, and site expenses, there is an increase in ‘Other direct expenses.

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Subcontract Expenses	934.53	841.38
Machinery Rent	575.15	554.25
Wages & Salaries	571.26	470.54
Labour Cess	124.00	80.46
Royalty Paid	78.80	57.33
Site Expenses	11.05	6.89

Employment Benefit Expenses

Employee benefit expenses for the financial year 2023-2024 stood at Rs. 148.63 Lakhs whereas for the financial year 2022-23, it stood at Rs. 134.56 Lakhs representing an increase of 10.46%.

Reason: There was an increase in ‘Employee benefit expenses because of an increase in Salaries, wages, bonuses, and other allowances, and staff welfare expenses, as company hired more employees and promoted the old ones and because of Directors Remuneration.

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Salaries, wages, bonus and other allowances	101.28	89.62
Staff welfare expenses	8.35	7.74
Directors/Partners Remuneration	39.00	37.20
Total	148.63	134.56

Finance Cost

Finance costs for the financial year 2023-2024 stood at Rs. 486.00 Lakhs whereas for the financial year 2022-23, it stood at Rs. 475.39 Lakhs representing an increase of 2.23%.

Reason: This was primarily due to an increase in interest on the long-term and short-term borrowings which include the following:

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Long-term Borrowings	2016.39	1805.06
Short-term Borrowings	1,488.41	1,518.10
Total	3,504.81	3,323.16

Depreciation and Amortization Expenses

The depreciation and amortization expenses for the financial year 2023-2024 stood at Rs. 374.67 Lakhs whereas for the financial year 2022-23, they stood at Rs. 419.16 Lakhs representing a decrease of 10.62%.

Reason: This decrease is due to the deletion of the fixed assets in the year 2023-24. Also, depreciation charged in the financial year 2022-23 was for the full financial year WDV of financial assets were more whereas in the financial year 2023-24, the depreciation charged on the fixed assets with lower opening WDV of the assets and the assets purchased in the middle of the year.

(Rupees in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Opening balance	1,918.95	2,332.44
Addition	474.11	5.68
Deletion	4.72	-
Depreciation	374.67	419.16
Ending balance of fixed assets	2,013.66	1,918.95

Other Expenses

The other expenses for the financial year 2023-2024 stood at Rs. 176.14 Lakhs whereas for the financial year 2022-23, it stood at Rs. 217.98 Lakhs representing a decrease of 19.19%.

Reason: There is a decrease in ‘Other expenses because of the decrease in, printing & stationary, property rent, repairs, VAT demand, and repairs as shown below:

(Amounts in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Printing And Stationery	4.44	5.65
Property Rent	2.09	6.99
Repair Others	0.54	1.15
VAT Demand	-	26.60
Permanent Exp	-	49.83

Extraordinary items

There is an increase of ‘Extraordinary items due to the profit on the sale of fixed assets in the financial year 2024-23 while there was no such item in the financial year 2022-23 representing an increase of 100%.

Reason: The increase is due to profit earned on the sale of the vehicle in the financial year 2023-24.

Restated Profit before Tax

The restated profit before tax for the financial year 2023-2024 stood at Rs. 870.44 Lakhs whereas for the financial year 2023-24, it stood at Rs. 648.59 Lakhs representing an increase of 34.20%.

Tax Expenses

The Tax Expenses for the financial year 2023-24 stood at Rs. 219.09 Lakhs out of which the Current Tax was Rs. 233.60 Lakhs and the Deferred Tax being Rs. (14.51) Lakhs whereas in the Financial Year 2022-23 it stood at Rs. 173.38 Lakhs out of which for current tax being Rs. 197.53 Lakhs and deferred tax being Rs. (24.15) Lakhs representing an increase of 26.37%.

Reason: The tax expenses increased over the financial year due to an increase in profit before tax which was Rs. 648.59 Lakhs in the financial year 2022-23 but in financial year 2023-24 it came to Rs. 870.44 Lakhs.

Restated Profit after Tax

The restated profit after tax for the financial year 2023-2024 stood at Rs. 651.35 Lakhs whereas for the financial year 2022-23, it stood at Rs. 475.21 Lakhs representing an increase of 37.07%.

Reason for change in the Revenue from operation and Profit after tax

(Rupees in Lakhs)

Particulars	FY 2023-24	FY 2022-23
Revenue from Operation	13,032.34	12,636.63
Change in %		3.13%
Profit after tax	651.35	471.21
Pat Margin in %	5.00%	3.76%

The company has witnessed a significant increase in Profit after Tax by 37.07%, reaching Rs. 651.35 Lakhs from Rs. 475.21 Lakhs in the previous year.

A steady growth in the revenue from operations of 3.13% driver primarily through the Sale of Highway Construction.

Increase in PAT Justification:

(Rupees in Lakhs)

Particulars	FY 24	FY 23
Revenue from operations	13,032.34	12,636.63
% Growth		3.13%
COGS	11,059.33	10,814.27
% of Revenue	84.86%	85.58%
Total Expense	12,244.77	12,061.37
% of Revenue	93.96%	95.45%
PAT	651.35	475.21
PAT Margin	5.00%	3.76%

a. Higher Depreciation in FY 23: Depreciation expenses in FY 23 were higher compared to FY 24 due to an increase in depreciable assets acquired toward the end of FY 22. This led to a greater depreciation charge in FY 23 amounting Rs. 44.49 lakhs (Rs. 419.16 Lakhs minus Rs. 374.67 Lakhs) in compare to FY 24.

b. Non-Recurring Expenses in FY 23: Certain expenses recorded under "Other Expenses" in FY 23, such as VAT Demand and Permanent Expenses (i.e. deductions levied by our client), were of a non-recurring nature and did not occur in FY 24 & onwards.

VAT Demand: The expenses related to VAT depend upon the demand raised by the authorities as per the scrutiny amounting Rs. 26.60 Lakhs. Further the company has paid the same with respect to the demand with respect to the FY 2016-17. The expenses related to the same are non-recurring in nature and did not occur in FY 24 and onwards.

Permanent Expenses: This deduction was a one-time adjustment made as part of a discount provided to the client amounting Rs. 49.83 Lakhs.

c. Marginal Decrease in Cost of Consumption in FY 24: The cost of consumption in FY 2024 saw a slight decrease as compared to FY 23, primarily driven by a better management and better pricing of raw materials during this period cause increase in profit by 0.72% amounting to Rs. 93.59 Lakhs.

These factors collectively contributed to the improved profit performance in FY 24.

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 under the chapter "Our History and Certain Other Corporate Matters" on the page no. 171 of 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 26 of this Draft 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 Draft Red Herring Prospectus, particularly in the sections Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 26 and 241, 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. Income and Sales on account of major product/main activities:

Income and sales of our Company on account of major activities derives from the business of sale of ayurvedic products to end consumers.

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

Our Companys future costs and revenues can be indirectly impacted by an increase in marketing and advertising costs as the company is required to continuously advertise and market on various platforms to promote its products with a view to increase its sale.

6. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation, Indian Government Policies, and interest rates quoted by banks & others.

7. 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.

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

The Company operates in the Ayurvedic Industry. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 103 of this Draft Red Herring Prospectus.

9. 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 Draft Red Herring Prospectus.

10. The extent to which the business is seasonal:

Our business is not seasonable in nature. However, our business is subject to environmental factors, particularly monsoon season in each fiscal year can impede our operations and projects.

11. Competitive Conditions

We face competition from existing and potential competitors, which is common for any business. Over a period of time, we have developed certain competitive strengths which have been discussed in section titled Our Business on page 125 of this Draft Red Herring Prospectus.

This space has been left blank intentionally.