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, March 31, 2024 and 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 211 of the 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 30 of this 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 18 of this 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 Medistep
Healthcare Limited, our Company. Unless otherwise indicated, financial information included herein are based on our Restated Financial Statements for Financial Years 2025, 2024 & 2023 included in this Prospectus beginning on page 212 of this Prospectus.
BUSINESS OVERVIEW
Our Company was originally incorporated on June 05, 2023 as ‘Medistep Healthcare Limited, as a Public limited company under the Companies Act, 2013, pursuant to a certificate of incorporation issued by Registrar of Companies, Ahmedabad. Thereafter our company acquired the business of Proprietorship Concern of one of our Promoter Ms. Prajapati Hetalben Girdharilal viz, M/s MG Pharma through the business transfer agreement dated July 02, 2023. Subsequently the business of the sole proprietorship firm was transferred into Medistep healthcare Limited. The Corporate Identification Number of Our Company Is U21009GJ2023PLC141841.
Before the incorporation of Medistep Healthcare Limited, M/s MG Pharma was involved in the business of trading/distribution of pharmaceutical products, intimate care and hygiene products, surgical products and equipment, Nutraceutical products and over the counter products. After the execution of business transfer agreement dated July 2, 2023 with Medistep Healthcare Limited the company started manufacturing of sanitary pad and energy powder from January 2024.
Promoters of our company are Mr. Girdhari Lal Prajapat, Ms. Prajapati Hetalben Girdharilal and Mr. Dabhi Vipul Gobarbhai. Our promoters and directors have a combined experience of more than 25 years in the pharmaceutical field. Driven by the passion for building an integrated pharmaceutical company, backed by their experience, our Promoters have been the pillars of our Companys growth and have built a strong value system for our Company. With their enriching experience and progressive thinking, we will continue to grow in the pharmaceutical Industry.
Along manufacturing of sanitary pad and energy powder our company is engaged in distributorship of pharmaceutical products, Nutraceutical products, Intimate Products and surgical products through distribution network. We trade in Diclofenac AQ Injection, Rabeprazole DSR Capsule, Fluconazole 200 Tab, Vitastep Z Powder, Iron with Zinc Tab, Calcium D3 Tab, Sanatary Cotton Pad, Drystep Sanitary Pads, Syringe 3ml, Needle All Type, Salp Vein All Type, Disposable Mask and Venti Circuit.
Our Core business activity is divided in following category: a) Manufacturing of sanitary pad and energy powder b) Distribution of pharmaceutical products, nutraceutical products, intimate products and surgical products.
Our Company is consistent in supplying of quality products round the year. Our products comply with requisite safety standards requisite approvals have been obtained. We are a quality conscious company. We are constantly striving to expand our line of products and we are always looking for complementary products that will add to our range of products.
The Share of revenue through manufacturing and trading segment are as under:
(Amount in Lakhs)
| Industry Segment | March 31, 2025 | % | March 31, 2024 | % | March 31, 2023 | % | March 31, 2022 | % |
| Manufacturing of Sanitary Pad (DryStep) | 1,110.64 | 22.37% | 103.38 | 2.65% | Nil | 0.00% | Nil | 0.00 % |
| Manufacturing of Energy Powder (VitaStep Z Powder) | 205.53 | 4.14% | 22.63 | 0.58% | Nil | 0.00% | Nil | 0.00 % |
| Trading of Pharmaceutical Products | 3649.31 | 73.49% | 3,781.18 | 96.77% | 2764.68 | 100.00% | 762.44 | 100.00 % |
For further details of our company please refer to section titled "Our History and Certain Other Corporate Matters" beginning on page no. 179 of this Prospectus.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR
As per mutual discussion between the Board of the Company and Lead Manager, 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 the Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:
Board of Directors took note the resignation of Ms. Jagriti Sharma as Company Secretary and Compliance Officer vide dated June 06, 2025.
Board of Director in its meeting held on July 10, 2025 appointed, Ms. Sashikala Bhutra as Company Secretary and Compliance Officer of the Company.
M/s Kapish Jain & Associates., as Statutory Auditor of the Company has resigned on July 15, 2025 from the post of Statutory Auditor of the company.
Board of Director in its meeting held on July 15, 2025 appointed, M/s Mukesh Mishra & Co. as Statutory Auditor of the Company.
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 30 of this 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.
Substantial portion of our revenues has been dependent upon few customers. The loss of any one or more of our major customers would have a material adverse effect on our business, cash flows, results of operations and financial condition.
Failure to comply with regulations prescribed by authorities of the jurisdiction in pharmaceutical sector.
We generally do business with our customers on purchase order basis and do not enter into long term contracts with them. Our inability to maintain relationships with our customers could have an adverse effect on our business, prospects, results of operations and financial condition.
Failure to adapt to the changing needs of industry may adversely affect our business and financial condition;
Inflation, deflation, unanticipated turbulence in interest rates,
Our dependence on our key personnel, including our directors and senior management;
Our ability to successfully implement our business strategy and plans;
The occurrence of natural disasters or calamities;
Other factors beyond our control.
DISCUSSION ON RESULT OF OPERATION
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the financial years ended on March 31, 2025, March 31, 2024 March 31, 2023
(Amount in Lakhs)
| For the year ended as on | ||||||
| Particulars | For the year ended 31 March, 2025 | %age of Total Income | For the year ended 31 March, 2024 Income | %age of Total Income | For the year ended 31 March, 2025 | %age of Total Income |
| Revenue from Operations | 4965.48 | 100.00% | 3907.19 | 99.97% | 2764.68 | 99.68% |
| Other Income | 0.37 | 0.01% | 1.01 | 0.03% | 9.01 | 0.32% |
| Total Income (I + II) | 4965.48 | 100.00% | 3908.20 | 100.00% | 2773.69 | 100.00% |
| Expenditure | ||||||
| Purchase of Stock in trade | 3,533.60 | 71.16% | 3,484.00 | 89.15% | 2622.78 | 94.56% |
| Changes in inventory of WIP and finished goods | (20.47) | (0.41)% | (128.71) | (3.29)% | (10.20) | (0.37)% |
| Cost of Material Consumed | 842.59 | 16.97% | 63.97 | 1.64% | 0.00 | 0.00% |
| Employee benefits expenses | 24.97 | 0.50% | 15.11 | 0.39% | 11.32 | 0.41% |
| Other expenses | 25.05 | 0.50% | 18.63 | 0.48% | 6.89 | 0.25% |
| Total expenses | 4405.74 | 88.73% | 3453.00 | 88.35% | 2630.78 | 94.85% |
| For the year ended as on | ||||||
| Particulars | For the year ended 31 March, 2025 | %age of Total Income | For the year ended 31 March, 2024 | %age of Total Income | For the year ended 31 March, 2025 | %age of Total Income |
| Profit Before Interest, Depreciation and Tax | 560.11 | 11.28% | 455.20 | 11.65% | 142.92 | 5.15% |
| Depreciation & Amortization | 3.21 | 0.06% | 2.19 | 0.06% | 6.54 | 0.24% |
| Expenses | ||||||
| Profit Before Interest and Tax | 556.90 | 11.22% | 453.01 | 11.59% | 136.38 | 4.92% |
| Financial Charges | 3.03 | 0.06% | 8.37 | 0.21% | 13.30 | 0.48% |
| Profit before | ||||||
| Taxation & | 553.87 | 11.15% | 444.64 | 11.38% | 123.07 | 4.44% |
| Exceptional Item | ||||||
| Exceptional Items | 0.00 | - | 0.00 | - | 0.00 | 0.00% |
| Profit Before Taxation | 553.87 | 11.15% | 444.64 | 11.38% | 123.07 | 4.44% |
| Current Tax | 139.98 | 2.82% | 112.16 | 2.87% | 31.29 | 1.13% |
| Deferred Tax | (0.53) | -0.01% | (0.25) | -0.01% | (0.32) | -0.01% |
| Earlier Years Tax Expense | 0 | 0.00% | 0 | 0.00% | 0 | 0.00% |
| Total tax expense | 139.46 | 2.81% | 111.91 | 2.86% | 30.98 | 1.12% |
| Profit After Tax but | ||||||
| Before Extra- ordinary Items | 414.42 | 8.35% | 332.75 | 8.51% | 92.10 | 3.32% |
| Extraordinary Items | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Profit Attributable to Minority Shareholders | 0.00 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Net Profit after adjustments | 414.42 | 8.35% | 332.75 | 8.51% | 92.10 | 3.32% |
| Net Profit | ||||||
| Transferred to | 414.42 | 8.35% | 332.75 | 8.51% | 92.10 | 3.32% |
| Balance Sheet | ||||||
Our Significant Accounting Policies
For Significant accounting policies please refer Significant Accounting Policies, under Chapter titled
" Financial Statements" beginning on page 212 of the Prospectus.
Key performance Indicators
For significant key performance indicators please refer to KPI under chapter titled "Basis of Issue Price" beginning on page 101 of this Prospectus.
Changes in Accounting Policies in Previous 3 years
Except as mentioned in the Notes to the Accounts in the chapter "Restated Financial Information" on page
212 of this Prospectus has been no change in accounting policies in last 3 years.
Reservations, Qualifications and Adverse Remarks
The Examination Report issued by our Statutory Auditors has no reservations, qualifications and adverse remarks.
Overview of Revenue & Expenditure
The following discussion on results of operations should be read in conjunction with the Restated Financial statements for the Financial Year 2025, 2024 and 2023. Our revenue and expenses are reported in the following manner:
Revenue Bifurcation
Product wise bifurcation
(Rs. in lakhs)
| Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | |||
| Revenue | % of total revenue from operations | Revenue | % of total revenue from operations | Revenue | % of total revenue from operations | |
| Intimate care and hygiene products | 4642.89 | 93.51% | 3500.59 | 89.60% | 425.59 | 15.39% |
| Pharmaceutical Products | 42.83 | 0.86% | 301.20 | 7.71% | 168.77 | 6.10% |
| Nutraceuticals Product | 274.78 | 5.53% | 26.40 | 0.68% | 20.61 | 0.75% |
| Surgical Products and Equipment | 4.49 | 0.09% | 75.20 | 1.92% | 2147.53 | 77.68% |
| Over the counter products | 0.49 | 0.01% | 3.80 | 0.09% | 2.18 | 0.08% |
| Total | 4965.48 | 100% | 3907.19 | 100% | 2764.68 | 100% |
(Rs. in lakhs)
| Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | |||
| Revenue | % of total revenue from operations | Revenue | % of total revenue from operations | Revenue | % of total revenue from operations | |
| Manufacturing | 1316.17 | 26.51% | 126.01 | 3.23% | 0.00 | - |
| Trading | 3649.31 | 73.49% | 3781.18 | 96.77% | 2764.68 | 100% |
| Total | 4965.48 | 100% | 3907.19 | 100% | 2764.68 | 100% |
Geographical bifurcation
(Rs. in lakhs)
| States | FY 2024-25 | FY 2023-24 | FY 2022-23 | |||
| Revenue | % of total revenue from operations | Revenue | % of total revenue from operations | Revenue | % of total revenue from operations | |
| Gujarat | 4965.48 | 100% | 3905.79 | 99.96% | 2763.14 | 99.94% |
| Rajasthan | 0 | - | 1.40 | 0.04% | 1.53 | 0.06% |
| Total | 4965.48 | 100% | 3907.19 | 100% | 2764.68 | 100% |
Revenues
Total Income:
Our total income comprises of revenue from operations and other income.
Revenue of operations
Our Companys revenue is primarily generated from the trading of pharmaceuticals products, neutraceuticals products, surgical products and other intimate care and hygiene products. It also includes sale of manufactured products i.e. sanitary pads (Drystep) and energy powder (Vitastep Z).
Other Income
Other Income includes discount received and profit on sale of assets.
Expenditure
Our total expenditure primarily consists of purchase of stock in trade, cost of material consumed, Employee benefit expenses, and Other Expenses. We also have incurred financial charges and depreciation as expenditure, which we have shown separately from total expenditure.
Purchase of Stock in Trade
Being a company engaged in trading of goods, we also purchase goods such as intimate, nutraceuticals, surgical and pharmaceutical products.
Change in Inventory
It means the difference between total of opening and closing inventories. They include stock in trade, work-in-progress and finished goods of inventory.
Cost of Material Consumed
It includes purchase of raw material such as top sheet, air sheet, sap sheet, back sheet, pouch of Sanitary pad, boxes, dextrose monohydrate, essence orange dry mix powder, zinc sulphate monohydrate, ascorbic acid, tartric acid, sucrose etc.
Employment Benefit Expenses
Our employee benefits expense primarily comprises of Salaries and Wages, Staff welfare expenses and Gratuity and Other Benefits etc.
Finance Cost
It includes Interest Expense on Borrowings and other Financial Expenses.
Depreciation and Amortization Expenses
Depreciation includes depreciation on Buildings, Plant & Equipment, Furniture & Fixtures, Computers, etc.
Other Expenses
Other Expenses includes majorly power and fuel expenses, rent expenses, electricity expenses, professional charges, ROC charges etc.
Tax Expenses
Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income" ("AS-22"), prescribed under the Companies (Accounting Standards) Rules, 2006. Our Company provides for current tax as well as deferred tax, as applicable.
Provision for current taxes is made at the current tax rates after taking into consideration the benefits available to our Company under the provisions of the Income Tax Act, 1961.
Deferred tax arises from the timing differences between book profits and taxable profits that originate in one period and are capable of reversal in one or more subsequent periods and is measured using the tax rates and laws applicable as of the date of the financial statements. Our Company provides for deferred tax asset / liability on such timing differences subject to prudent considerations in respect of deferred tax assets.
DETAILS OF FINANCIAL 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.4965.85 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 3908.2 Lakhs, representing an increase of 27.06%. This increase is due to the factors described below:
Revenue from operations
Total Revenue from Operations for the Financial Year 2024-25, stood at Rs.4965.48 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 3907.19 Lakhs, representing an increase of 27.09%. The increase in net revenue is attributed to the companys entry into manufacturing of intimate care, hygiene products, and nutraceuticals. This shift followed the companys transformation from a sole proprietorship, enabling a broader product offering. This analysis highlights the companys growth and diversification strategy, indicating a positive impact on revenue through new product lines.
Other Income
Other Income for the Period Financial Year 2024-25, stood at 0.37 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 1.01 Lakhs, which represents a decrease of 63.37%. It comprises of discount received from suppliers.
Expenditure
Total Expenses
Total Expenses for the Financial Year 2024-25, stood at Rs. 4411.98 Lakh whereas in Financial Year 2023-24 it stood at Rs. 3463.56 Lakh, representing an increase of 27.38%, which is mainly due to increased levels of operations, resulted into better utilization of the resources.
Purchase of Stock in Trade
Purchase of Stock in Trade for the Financial Year 2024-25, stood at Rs. 3533.60 lakhs whereas in Financial Year 2023-24 it stood at Rs. 3484.00 Lakh representing an increase of 1.42% suggesting nominal growth in trading segment of the company.
Change in Inventory
Total change in inventory for the Financial Year 2024-25, stood at Rs. (20.47) lakhs whereas in financial year 2023-24 it stood at Rs. (128.71) lakhs, representing an increase of 108.24 lakhs. As company was newly incorporated on 5th June, 2023, it does not have any opening stock of stock in trade and hence negative figure in FY 2023-24 represents closing stock only of 86.75 lakhs. It also includes change in inventory before it was incorporated as a company representing (41.95) lakhs.
Cost of Material Consumed
Total cost of Material consumed for the Financial Year 2024-25, stood at Rs. 842.59 Lakh whereas in Financial Year 2023-24 it stood at Rs. 63.97 Lakh, representing an increase of 778.62 lakhs. This increase was due to the fact that company started manufacturing post getting FSSAI license in January 2024, and it became fully operational in Financial Year 2024-25.
Employment Benefit Expenses
Employee benefit expenses for the Financial Year 2024-25, stood at Rs. 24.97 Lakhs whereas in Financial Year 2023-24 it stood at Rs 15.11 Lakhs representing an increase of 65.26%. This was due to increase in wages and labour cost used in manufacturing of intimate products and nutraceutical products.
Other Expenses
The Other Expenses for the Financial Year 2024-25, stood at Rs. 25.05 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 18.63 Lakhs, representing an increase of 34.46%. This was mainly due to increase in electricity expenses, professional fees paid to consultant and amount paid towards commission on sales and others.
Depreciation and Amortization Expenses
The Depreciation and Amortization Expenses for the Financial Year 2024-25, stood at Rs. 3.21 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 2.19 Lakhs, representing an increase of 46.58%. It is calculated for the period and values, as per the utilization of assets for the Companys business.
Finance Cost
Finance Cost for the Period for the Financial Year 2024-25, stood at Rs. 3.03 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 8.36 Lakhs, representing a decrease of 63.76% this decrease was due to repayment of business loans.
Restated Profit before Tax
The restated profit before tax for the Financial Year 2024-25, stood at Rs. 553.87 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 444.66 Lakhs, representing an increase of 24.56%, on account of increased levels of operations, resulted into better utilization of the resources and lesser finance cost.
Restated Profit after Tax
The restated profit after tax for the Financial Year 2024-25, stood at Rs. 414.42 Lakhs whereas in Financial Year 2023-24 it stood at Rs. 332.75 Lakhs representing an increase of 24.54% in line with Profit before Tax.
Conclusion for change in PAT margin:
| Particulars | FY 2023-24 | FY 2024-25 |
| Revenue from Operations | 3,907.19 | 4,965.48 |
| PAT | 92.10 | 414.42 |
| PAT Margin | 3.33% | 8.35% |
Strategic expansion: As company expanded from purely trading of pharmaceutical products to combination of manufacturing and trading. It slightly changed their profit margin from 8.52% to 8.35%.
DETAILS OF FINANCIAL YEAR 2024 COMPARED TO FINANCIAL YEAR 2023 (BASED ON RESTATED FINANCIAL STATEMENTS)
Revenues
Total Income
Total Income for the Financial Year 2023-24, it stood at Rs. 3908.20 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 2773.69 Lakhs representing an increase of 40.90%. This is due to increase in revenue from operations.
For FY 2022-23 to FY 2023-24
(Amount in lakhs)
| Particulars | FY 2022-23 | FY 2023-24 |
| Revenue from Operations | 2,764.68 | 3,907.19 |
| % of total Income | 99.67% | 99.97% |
| Other Income | 9.01 | 1.01 |
| % of total Income | 0.33% | 0.03% |
| Total Income | 2,773.69 | 3,908.20 |
| % increase of total Income | - | 40.90% |
Change in organisational Structure: As sole proprietorship was acquired by the company, operations became more streamlined and structured, leading to increased efficiency and higher order volumes.
Backward Integration: Company initiated manufacturing of nutraceuticals and intimate product in last quarter of FY 2023-24. In FY 2023-24 its revenue from manufacturing was of 126.01 lakhs constituting
3.23% of total revenue from operations.
Addition of new director: With the acquisition of the sole proprietorship, Mr. Dabhi Vipul Gobarbhai joined as a director. His strong connections in the healthcare industry led to significant new orders, contributing to the increase in revenue from operations.
These strategic changes positioned the company for substantial growth, as reflected in the 40.90% increase in total income from FY 2022-23 to FY 2023-24.
Detailed Rationale:
After incorporation of company, most of customers of Kavyadi and Mahadev are directly purchasing material from Medistep Healthcare Limited. Mr. Dabhi Vipul Gobarbhai, has a strong network of hospitals, medical practitioners and retail pharmacies.
Revenue from operations
Net revenue from operations For the Financial Year 2023-24 stood at Rs. 3907.19 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 2764.68 Lakhs representing an increase of 41.33%. As company had backward integration due to initiation of manufacturing of nutraceuticals and intimate products, its revenue increased. Also, as sole proprietorship was acquired by company, another director Dabhi Vipul Gobarbhai was added, he bought significant business for the company, which further increased their revenue from operations.
Other Income
Other Income for the Financial Year 2023-24 stood at Rs. 1.01 Lakhs. Whereas for the Financial Year 2022-
23, it stood at Rs. 9.01 Lakhs representing a decrease of 8 lakhs. This is due to profit incurred in sale of fixed asset during the FY 2022-23.
Expenditure
Total Expenses
Total Expenses for the Financial Year 2023-24 stood at Rs. 3463.54 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 2650.62 Lakhs representing increase of 30.66%. This can be contributed to many factors as discussed below:
Purchase of Stock in Trade
Purchase of Stock in Trade for the Financial Year 2023-24 stood at Rs. 3483.99 Lakh whereas in Financial Year 2022-23 it stood at Rs. 2622.78 Lakh representing an increase of 32.84% of the purchases stock in trade of FY 2023-24. As revenue increased, companys demand for stock in trade increased as well in line with increasing sales orders of the company.
Change in Inventory
Total change in inventory for the Financial Year 2023-24, stood at Rs. (128.71) lakhs whereas in financial year 2022-23 it stood at Rs. (10.20) lakhs, representing decrease of 118.51 lakhs. It was because as business of sole proprietor was acquired, inventory of stock in trade was not carried forward, thus there was no opening stock as on 3rd July, 2024, showing significant change in inventory.
Cost of Material Consumed
Total cost of material consumed for the Financial Year 2023-24, stood at Rs. 63.97 Lakh. The increase is due to expansion in the manufacturing of Sanitary pads and Vitastep Z (Energy Powder) starting from the last quarter of FY 2023-24.
Employment Benefit Expenses
Employee benefit expenses for the Financial Year 2023-24 stood at Rs. 15.11 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 11.32 Lakhs representing an increase of 33.48%, this was due to increase in no. of employees from 6 to 8, which led to higher salary expense. Also, employees were increased to corporate the backward integration plan of the company.
Other Expenses
The Other Expenses for the Financial Year 2023-24 stood at Rs. 18.63 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 6.89 Lakhs representing a increase of 170.39%, this is primarily because of increase in rent expenses, increase in ROC fees due to increase in authorized capital from 1 lakh to 3 cr. and discount given to suppliers.
Depreciation and Amortization Expenses
The Depreciation and Amortization Expenses for the Financial Year 2023-24, stood at Rs. 2.19 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 6.54 Lakhs, representing a decrease of 66.51% mainly due to transfer of fixed assets from sole proprietorship to company which does not include personal assets, which were shown in sole proprietors business, thus, reducing the depreciation expenses.
Finance Cost
Finance Cost for the Financial Year 2023-24, stood at Rs. 8.36 Lakhs whereas in Financial Year 2022-23 it stood at Rs. 13.3 Lakhs representing a decrease of 36.9%, this was due to repayment of loans in FY 2022-23.
Restated Profit before Tax
The restated profit before tax For the Financial Year 2023-24 stood at Rs. 444.66 Lakhs. Whereas for the Financial Year 2022-23, it stood at Rs. 123.07 Lakhs, representing an increase of 261.34%. It is primarily due to increase in revenue from operations and higher profit margin in intimate products and nutraceuticals product. Also salvage of depreciation and finance cost as compared to Financial Year 2022-23.
Restated Profit after Tax
The restated profit after tax For the Financial Year 2023-24 stood at Rs. 332.76 Lakhs. Whereas for the Financial Year 2022-23, it stood at 92.10 Lakhs, in line with the increase in scale of operations, increase in revenue.
Conclusion for Change in PAT Margin:
(Amount in lakhs)
| Particulars | FY 2022-23 | FY 2023-24 |
| Revenue from Operations | 2,764.68 | 3,907.19 |
| PAT | 30.98 | 332.76 |
| PAT Margin | 1.12% | 8.52% |
Organised Structure: With the acquisition of the sole proprietorship, Medisteps operations became more structured and efficient. This transition led to improved financial discipline, enabling the company to make timely payments to its suppliers. As a result, suppliers gained confidence in the company, allowing Medistep to negotiate better stock pricing and improve cost efficiency. Additionally, the appointment of Mr. Dabhi Vipul Gobarbhai as a director brought valuable industry experience and supplier connections. His relationships helped onboard suppliers who provided goods at lower costs, further optimizing procurement expenses. These strategic improvements contributed to stronger supplier trust, reduced costs, and enhanced overall profitability for the company.
Backward Integration: As company started manufacturing of Nutraceuticals and Intimate products in the last quarter of FY 2023-24 Approximately gross margin of the manufacturing is 30-35% and that of trading is 5-10%. Thus, this led to increase in PAT margins.
DETAIL CALCULATION OF NET WORTH
| Particulars | As at 31st March, 2025 | As at 31st March, 2024 | As at 2nd July, 2023 | As at 31st March, 2023 | As at 31st March, 2022 |
| Proprietors capital account | |||||
| Opening Balance | - | 1.35 | 1.35 | 1.35 | 1.35 |
| Add: Addition during the year | - | - | - | - | - |
| Less: Withdrawal during the year | - | 0.28 | - | - | - |
| Less: Capital converted into share capital during the period | 1.07 | ||||
| Closing Balance (A) | - | - | 1.35 | 1.35 | 1.35 |
| Share Capital | |||||
| Opening Balance | 489.94 | - | - | - | - |
| Add: Capital converted into share capital during the period | - | 195.00 | - | - | - |
| Add: Addition during the year | 556.61 | 294.94 | - | - | - |
| Closing Balance (B) | 1,046.55 | 489.94 | - | - | - |
| Total Capital (C=A+B) | 1,046.55 | 489.94 | 1.35 | 1.35 | 1.35 |
| Reserves and Surplus | |||||
| a) Statement of Profit & Loss | |||||
| Opening Balance | 289.96 | 193.93 | 144.92 | 42.87 | 16.50 |
| Add: Profit for the year (Signed financials) | 414.4 | 289.96 | 55.54 | 120.02 | 30.08 |
| Less: Drawing/Conversion | - | - | 6.53 | 17.97 | 3.71 |
| Less: Capital converted into share capital during the period | 193.93 | - | |||
| Less: Utilized for bonus issue | 49.03 | - | - | - | - |
| Closing Balance (D) | 655.33 | 289.96 | 193.93 | 144.92 | 42.87 |
| a) Security Premium Reserve | |||||
| Opening Balance | 440.92 | - | - | - | - |
| Add: Addition during the year | 33.33 | 440.92 | - | - | - |
| Less: Utilized for bonus issue | 440.92 | - | - | - | - |
| Closing Balance (E) | 33.33 | 440.92 | - | - | - |
| Total Reserves and Surplus (F=D+E) | 688.66 | 730.88 | 193.93 | 144.92 | 42.87 |
| Net worth as per signed financials(C+F) | 1,735.21 | 1,220.82 | 195.28 | 146.26 | 44.22 |
| Less: Restated Profit Adjustment for the period | 51.74 | 51.77 | 53.16 | 39.02 | 11.11 |
| Net worth as per Restated Financials | 1,683.47 | 1,169.05 | 142.12 | 107.24 | 33.11 |
Property Plant and Equipment
(Rs. in lakhs)
| Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 |
| Gross Block- Opening Balance | 20.26 | 5.07 | 55.11 |
| Addition/(sale) during the year | - | 15.19 | (50.04) |
| Gross Block- Closing Balance | 20.26 | 20.26 | 5.07 |
| Accumulated Depreciation- opening balance | 4.77 | 2.58 | 6.15 |
| Depreciation during the year | 3.21 | 2.19 | 6.54 |
| Deletion during the year | - | - | (10.11) |
| Accumulated Depreciation- Closing balance | 7.98 | 4.77 | 2.58 |
| Total Net block of Tangible assets | 12.28 | 15.49 | 2.49 |
Cash Flows
The table below summarize our cash flows from our Restated Financial Information for the financial year ended on March 2025, 2024 and 2023.
(Rs. in lakhs)
| Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 |
| Net cash (used in)/ generated from operating activities | 2.16 | (696.34) | 44.16 |
| Net cash (used in)/ generated from investing activities | - | (15.19) | - |
| Net cash (used in)/ generated from financing activities | 127.89 | 700.07 | (34.83) |
| Net increase/(decrease) in cash and cash equivalents | 130.04 | (11.46) | 9.33 |
| Cash and Cash Equivalents at the beginning of the period | 0.97 | 12.43 | 3.10 |
| Cash and Cash Equivalents at the end of the period | 131.01 | 0.97 | 12.43 |
Net cash from/(used in) Operating Activities
For fiscal year ending March, 2025, net cash flow from operating activities was 2.16 lakhs as compared to Profit Before Tax of 553.87 lakhs. We had operating profit before working capital changes of 561.68 lakhs primarily as a result of depreciation, finance cost and Provision for employee Benefit Obligation of 3.21 lakhs, 3.03 lakhs and 1.56 lakhs respectively.
For fiscal year ending March, 2024, net cash flow from operating activities was (696.34) lakhs as compared to Profit Before Tax of 444.64 lakhs. We had operating profit before working capital changes of 455.87 lakhs primarily as a result of depreciation, finance cost and Provision for employee Benefit Obligation of 2.19 lakhs, 8.37 lakhs and 0.66 Lakhs respectively.
For fiscal year ending March, 2023, net cash flow from operating activities was at 44.16 lakhs as compared to Profit Before Tax of 123.07 lakhs. We had operating profit before working capital changes of 133.91 lakhs primarily as a result of depreciation and finance cost of 6.54 lakhs and 13.30 lakhs respectively and profit on sale of fixed asset of 9.01 lakhs.
Net cash from/(used in) Investing Activities
For fiscal year ending March, 2025, there is no cashflow from investing activity.
For fiscal year ending March, 2024, net cashflow from investing activities was (15.19) lakhs due to investments made in fixed assets.
For fiscal year ending March, 2023, there is no cash flow from investing activity.
Net cash Flow from/(used in) Financing Activities
For the fiscal year ended March 2025, net cash flow from financing activities was 127.89 lakhs due to proceeds received from issuance of equity share capital of 100 lakhs, along with net proceeds received from short term borrowings 31.61 lakhs. It incurred repayments of long-term borrowings (0.69) lakhs, and finance cost of (3.03) lakhs.
For the fiscal year ending March, 2024, net cash flow from financing activities was 700.07 lakhs due to repayment of equity share capital or fund by promoters of 5.79 lakhs, it incurred repayment of long-term borrowings (25.44) lakhs and proceeds from short term borrowings of 733.13 lakhs. It also incurred finance cost of (8.37) lakhs.
For fiscal year ending March 2023, net cash flow from financing activities was (34.83) lakhs due to withdrawal of funds by proprietor of (4.83) lakhs along with repayment of long-term borrowings of (20.38) lakhs, proceeds from short-term borrowings of 3.68 lakhs. It incurred finance cost of (13.30) lakhs.
Financial Indebtedness
Please see "Financial Indebtedness" for a description of broad terms of our indebtedness on of this Prospectus.
The company has an impeccable record of servicing its debts and has consistently reduced its dependence on institutional finance, there are negligible chances of any default. In the event our lenders declare an event of default, such current and any future defaults could lead to acceleration of our obligations, termination of one or more of our financing agreements or force us to sell our assets, which may adversely affect our business, results of operations and financial condition.
Off-balance Sheet Commitments and Arrangements
We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with affiliates or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements along with contingent liabilities as of March 31, 2025.
Outstanding Dues to Trade Payables
For purposes of the disclosure in Issue Document pursuant to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended, the Board of Directors of the Company has identified a materiality threshold 5% of Trade payable pursuant to a resolution dated 15th July 2025 and the amounts owed as of March 31, 2025 by the Company to any small scale undertaking and any other creditor equal or exceeding such materiality threshold is identified in summary form as brought out in the tables below.
Creditors of amount more than threshold limit :-
| Name of Material Creditor | Amount ( Lakhs) |
| Creditor 1 | 40.28 |
| Creditor 2 | 16.49 |
| Creditor 3 | 14.66 |
| Creditor 4 | 13.32 |
| Creditor 5 | 12.32 |
| Total | 97.39 |
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 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 30 of this 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 Prospectus, particularly in the sections Risk Factors and Management ‘s 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 labour costs as the company looks to hire talent with new skills and capabilities for the digital economy who may be in short supply.
5. 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.
6. 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. The company started manufacturing of intimate products and nutraceutical product along with the trading of these products.
7. Total turnover of each major industry segment in which the issuer company operates.
The Company is operating in Pharma Sector. Relevant industry data, as available, has been included in the chapter titled "Our Industry" beginning on page 113 of this Prospectus.
8. 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 Prospectus.
9. The extent to which the business is seasonal.
Our business is not seasonal in nature.
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 139 of this Prospectus.
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