Monarch Surveyors and Engineering Consultants Ltd Management Discussions

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in the Red Herring Prospectus. You should also read the section entitled "Risk Factors" beginning on page 24 and "Forward Looking Statements" beginning on page 16, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations.

The following discussion of our financial condition and results of operations should be read in conjunction with our restated financial statements for the period March 31, 2025, March 31, 2024 and March 31, 2023 including the schedules and notes thereto and the reports thereto, which appear in the section titled "Financial Information of our company" on Page No. 179 of the Red Herring Prospectus. The financial statements presented and discussed herein have been prepared to comply in all material respects with the notified accounting standards by Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act and SEBI (Issue of Capital and Disclosure Requirements) Regulations. Our fiscal year ends on March 31 of each year. Accordingly, all references to a particular fiscal year/financial year are to the twelve-month period ended on March 31 of that year. The forward-looking statements contained in this discussion and analysis is subject to a variety of factors that could cause actual results to differ materially from those contemplated by such statements.

OVERVIEW

We are engaged in the business to provide comprehensive consultancy services under Concept to Commissioning of infrastructure projects which includes Survey, design and technical supervision for roads, railways, metros, town planning, geospatial, mapping, land acquisition, water, transmission Line, pipelines and other civil engineering sectors. Our objective is to create consistent value for our clients by delivering uncompromising quality of services at optimum cost through continuous improvement in elemental technologies of this field, maintaining integrity and design processes which fosters excellence in all the aspects of our operations.

Our Company was originally incorporated as "Monarch Surveyors and Contractors Private Limited" as a private limited company, under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated July 20, 1999 issued by Registrar of Companies, Pune having Registration Number 25-13830. Later the name of company was changed to "Monarch Surveyors and Engineering Consultants Private Limited" pursuant to special resolution passed in the Extra- Ordinary General Meeting of the company held on May 12, 2008 and fresh certificate of incorporation dated June 06, 2008 was issued by Registrar of Companies, Maharashtra, Pune pursuant to name change. Subsequently, our Company was converted from a private limited company to public limited company pursuant to special resolution passed in the Extra- Ordinary General Meeting of the company held on December

26, 2023 and consequently the name of our Company was changed to "Monarch Surveyors and Engineering Consultants Limited" pursuant to fresh certificate of incorporation dated January 13, 2024 issued to our Company by the Registrar of Companies, Pune. The Corporate Identification Number of our Company is U45203PN1999PLC013830. For details of change in name and registered office of our Company, please refer to the chapter titled "History and Corporate Matters" beginning on page no. 155 of this Red Herring Prospectus.

We are providing comprehensive consultancy services throughout the entire lifecycle of infrastructure projects, from concept to commissioning. Our expertise spans a wide array of sectors, including:

Surveying: We conduct detailed surveys to gather critical data, ensuring that all project planning is based on accurate and reliable information. Design Services: Our team designs innovative and efficient infrastructure solutions tailored to the specific needs of each project, ensuring compliance with all regulatory requirements. Technical Supervision: We provide oversight and management during the construction phase, ensuring that all work aligns with the established design and quality standards.

Areas of Focus:

Roads and Highways: We design and supervise the construction of roadways that enhance connectivity and promote safe travel. Railways and Metros: Our expertise includes designing and managing rail projects that improve urban and regional transportation. Geospatial and Mapping: We utilize advanced geospatial technologies to provide accurate mapping and spatial analysis, supporting informed decision-making. Land Acquisition: We assist clients in navigating the complexities of land acquisition processes, ensuring compliance and efficiency. Water Management: We design and implement water infrastructure projects, focusing on sustainability and resource management.

Transmission Lines and Pipelines: Our services extend to the planning and execution of essential utilities, ensuring they meet the demands of modern infrastructure.

In our endeavour to strive towards consistent delivery, we have designed organizational roles and processes to ensure that our deliverables which are in the form of reports, maps, drawings, etc. are conclusive and adds tremendous value to our clients. We have focus in employee engagement which we believe is the key factor that powers the growth of our organization year after year.

Our Company is promoted by Mr. Bhartesh Rajkumar Shah, Mr. Sanjay Bhalchandra Vidwans, Mr. Dattatraya Mohaniraj Karpe and Mr. Sunil Shrikrishna Bhalerao, has combined experience 25 years each in Civil Engineering Consultancy Services. We are involved in work that aides in decision making of various engineering departments in Government, captures the attention of the industry and earns awards for engineering excellence. We have been awarded as one of the Top 10 Engineering Consultants in India by Industry Outlook in 2022. For over 25 years, we are dedicated to supporting the needs of our clients by recognizing and addressing issues from their value perspective.

We are providing end to end services with a diverse workforce specializing in Detailed Engineering, Project Management, Construction Supervision, Facilities Design, Land Surveying, Land Acquisition Services, Geospatial mapping, Geo-technical Investigation and Special Inspections. Our Registered Office is located at Monarch House, CTS No. 434/1, Near Kawade Petrol Pump, Ghorpadi Gaon, Hadapsar (N.V.), Haveli, Pune-411036, Maharashtra, India and we have several administration and site offices across India

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to Restated Standalone Financial Statements under chapter titled "Restated Financial Statements" beginning on page 179 of this Red Herring Prospectus.

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 24 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Our ability to successfully implement our growth strategy and expansion plans;

Our ability to attract, retain and manage qualified personnel;

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

Our ability to expand our geographical area of operation;

Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial condition;

Competition from existing and new entities may adversely affect our revenues and profitability;

Political instability or changes in the Government could adversely affect economic conditions in India and consequently our business may get affected to some extent;

Our business and financial performance is particularly based on market demand and supply of our services;

The performance of our business may be adversely affected by changes in, or regulatory policies of, the Indian national, state and local Governments in the sectors/areas in which we operate;

Any downgrading of Indias debt rating by a domestic or international rating agency could have a negative impact on our business and investment returns;

Changes in Government Policies and political situation in India may have an adverse impact on the business and operations of our Company;

Our ability to meet our further capital expenditure requirements;

Conflict of Interest with affiliated companies, the promoter group and other related parties;

Our inability to maintain or enhance our brand recognition; and

Changes in consumer demand.

RESULTS OF OUR OPERATION:

( in Lakhs)

			For The Year Ended 31st March
Particulars Revenue:	2025	% of Total Revenue	2024	% of Total Revenue	2023	% of Total Revenue
Revenue from Operations	15413.62	99.02	13,949.18	98.74	7,167.70	98.56
Other income	152.47	0.98	178.15	1.26	104.44	1.44
Total revenue	15566.09	100.00	14,127.33	100.00	7,272.14	100.00
Expenses:
Operating Expenses	6707.87	43.09	6,710.20	47.50	4,276.50	58.81
Employees Benefit Expenses	2550.34	16.38	1,791.46	12.68	933.17	12.83
Finance costs	198.60	1.28	132.90	0.94	80.32	1.10
Depreciation and Amortization	390.09	2.51	236.95	1.68	110.19	1.52
Other expenses	1045.03	6.71	1,169.38	8.28	790.45	10.87
Total Expenses	10891.94	69.97	10,040.90	71.07	6,190.63	85.13
Profit before exceptional and extraordinary items and tax	4674.15	30.03	4,086.43	28.93	1,081.52	14.87
Exceptional Items			-	-	-	-
Profit before extraordinary items and tax	4674.15	30.03	4,086.43	28.93	1,081.52	14.87
Extraordinary items			-	-	-	-
Profit before tax	4674.15	30.03	4,086.43	28.93	1,081.52	14.87
Tax expense:
Current tax	1147.06	7.37	1,057.49	7.49	247.06	3.40
Deferred Tax	43.86	0.28	28.23	0.20	(24.45)	(0.34)
Total Tax Expenses	1190.92	7.65	1,085.72	7.69	222.61	3.06
Profit (Loss) for the period from continuing operations	3483.24	22.38	3,000.72	21.24	858.92	11.81

Review of Restated Financials

Key Components of Companys Profit and Loss Statement

Revenue from operations: Revenue from operations mainly consists from Sale of Services provided by the company. Other Income: Other Income Consist of Interest Income, Profit on sales of Assets & Other Misc. Incomes.

Expenses: Companys expenses consist of, Operating Expenses, Finance cost, Depreciation Expenses, Employee Benefit

Expenses & Other Expenses.

Operating charges: Operating Charges include expenses attributable directly in relation to providing the services.

Changes in inventories of Finished Goods, WIP & Stock in Trade: Changes in inventories of Finished Goods, WIP & Stock in Trade consist of difference between opening & closing Value of Traded Stock. Employee Benefits Expense: Employee benefit expenses include Salaries and Wages, Director Remuneration, Contribution to Statutory Fund, Gratuity Expenses & Staff Welfare Expenses etc. Finance Cost: Finance Cost includes Interest paid on borrowings & Bank charges. Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a SLM Basis as per the rates set forth in the Companies Act, 2013/ Companies Act, 1956, as applicable. Other Expenses: Other expenses includes Conveyance, CSR Activities, Office & General Expenses, Insurance Expenses, Membership Fees & Subscription, Printing & Stationary Charges, Professional Fees, Rent, Rates & Taxes, Sales & Expenses etc.

Fiscal 2025 compared with Fiscal 2024

Revenue from Operations: Revenue from operations increased by 10.50%, from 13,949.18 lakhs in Fiscal 2024 to 15,413.62 lakhs in Fiscal 2025. The growth was primarily driven by higher project execution in core service regions and expansion into geographies such as Tamil Nadu and Delhi. An increase in continued strength in recurring business also supported this growth. Other Income: Other income declined from 178.15 lakhs in Fiscal 2024 to 152.47 lakhs in Fiscal 2025. The drop was largely attributable to the absence of income tax refund interest and liabilities written back that were present in the previous fiscal. The major portion of income continued to come from interest earned on fixed deposits.

Operating Charges: Operating charges remained broadly stable at 6,707.87 lakhs in Fiscal 2025, compared to 6,710.21 lakhs in Fiscal 2024. While technical consultancy and direct job costs increased, they were offset by lower subcontracting charges and material consumption. This reflects better cost control and shift toward in-house execution.

Employee Benefit Expenses: Employee benefit expenses increased significantly by 42.36%, from 1,791.46 lakhs to 2,550.34 lakhs. The increase was due to a conversion of contractual labour into permanent labour on company payroll results in rise in staff strength, annual increments, and higher contributions to provident and other statutory funds. Additionally, director remuneration and gratuity provisions also contributed to the increase.

Finance Costs: Finance costs increased from 132.90 lakhs to 198.60 lakhs, a 49.44% rise. The increase was driven by higher interest outgo on loans and working capital borrowings, indicating increased funding requirements during the year.

Depreciation and Amortization Expense: Depreciation and amortization expense rose from 236.95 lakhs in Fiscal 2024 to 390.09 lakhs in Fiscal 2025. The increase was attributable to new asset additions and higher depreciation on previously capitalized assets.

Other Expenses: Other expenses declined from 1,169.38 lakhs to 1,045.03 lakhs, a 10.63% reduction. The decrease was primarily due to a significant drop in sundry balances written off and CSR activity expenses, partially offset by an increase in professional fees, rent, and repairs & maintenance.

Profit Before Tax: Profit before tax increased by 14.38%, from 4,086.43 lakhs to 4,674.15 lakhs. The increase was supported by higher income, improved cost structure, and operational scale.

Tax Expense: Tax expense increased from 1,085.72 lakhs to 1,190.92 lakhs, primarily due to higher taxable income. Current tax rose in line with profits, while deferred tax also increased due to timing differences in depreciation.

Profit After Tax: Profit after tax increased by 16.08%, from 3,000.72 lakhs in Fiscal 2024 to 3,483.24 lakhs in Fiscal 2025, driven by stronger revenues and disciplined expense management. This growth in Profit after Tax is primarily driven by higher overall revenue and a reduction in operating expenses.

	FY 2024-25		FY 2023-24
Particulars	Amount in Lakhs	% to Turnover (X)	Amount in Lakhs	% to Turnover (Y)
Revenue from Operation (A)	15413.62	100.00%	13949.18	100.00%
Operating Expenses (B)	6707.87	43.52%	6710.20	48.10%
Gross Profit (A B)	8705.75	56.48%	7238.98	51.90%
Profit After Tax	3483.24	22.60%	3000.72	21.51%

The Increase in Gross Profit Margins is the result of reduced Operating Expenses of the Company which was Rs. 6710.20 Lakhs (48.10% of Turnover) in FY 2023-24 and Rs. 6707.87 Lakhs (43.52% of Turnover) in FY 2024-25. During the FY 2024-25 the company has enhanced its Operational Efficiencies.

Overall, this increase in Gross Profit margins has significantly contributed in the growth of figures of Profit After Tax.

The Operating Expenses for FY 2023-24 and FY 2024-25 as follows:

Particulars	FY 2024-25	% to Turnover	FY 2023-24	% to Turnover
Turnover	15413.62	100.00	13949.18	100.00
Operating Expenses:
Sub-Contracting Charges	1223.21	7.94	1823.92	13.08
Technical Consultancy	3551.59	23.04	3359.29	24.08
Professional Charges	452.94	2.94	425.77	3.05
Support Services	181.20	1.18	228.54	1.64
Direct Job Cost	1280.80	8.31	811.85	5.82
Materials	17.38	0.11	52.48	0.38
Labour Cess	0.75	0.00	8.36	0.06
Others	--	--	--	--
Total	6707.87	43.52%	6710.20	48.10%

The reasoning of operational efficiencies under major area is mentioned below:

SUB CONTRACTING CHARGES: The expense under this head was 1823.92 Lakhs (13.08% of Turnover) in FY 2023-24 and Rs. 1223.21 Lakhs (7.94% of Turnover) in FY 2024-25. The company is prioritising on in house capabilities. In-house teams are handling a larger share of the work that was previously outsourced, resulting in a more controlled and cost-effective operations. DIRECT JOB COST: The major components of Direct Job Costs include fuel, travel, lodging and boarding, job work, labor, and refreshments. These expenses are primarily semi-variable in nature. Consequently, they have not increased in direct proportion to the companys turnover. It can be observed that the increase in Profit After Tax (PAT) for the financial year 2024-25 is distributed to multiple operational factors such as Scaling up activities has resulted in higher PAT while reducing reliance on Outsourcing activities has resulted in enhanced cost efficiency, Increased workforce has contributed to higher margins through fixed cost efficiency etc. The Combination of all these factors have cumulatively contributed in increased PAT for the Financial Year 2024-25.

Fiscal 2024 compared with Fiscal 2023

Revenue from Operation: Revenue from operations had increased by 94.61% from 7167.70 lakhs in Fiscal 2023 to 13949.18 lakhs in Fiscal 2024 was due to increase in sales of services. The sale of services was increased due to new tenders & business promotional activities. Other Income: Other Income mainly consisting of Interest Income is increased by 70.58 % from Rs. 104.44 Lakhs in Fiscal 2023 to 178.15 lakhs in Fiscal 2024. The interest income on Fixed Deposit has been increased from Rs. 74.82 Lakhs in Fiscal 2023 to Rs. 136.25 Lakhs in Fiscal 2024. Interest on Income Tax refund has been increased from Rs. 2.62 Lakhs in Fiscal 2023 to Rs. 37.00 lakhs in Fiscal 2024.

Operating Charges: Operating charges increased by 56.91% from Rs. 4276.50 Lakhs in fiscal 2023 to Rs. 6710.20 Lakhs in Fiscal 2024. This expense is directly correlated with the operations of the company so that this expense has been increased significantly because operations of the company has also been increased in that proportion. Employee Benefit Expenses: Employee Benefit Expenses increased by 91.98% from Rs. 933.17 Lakhs in Fiscal 2023 to 1791.46 lakhs in Fiscal 2024. This has been increased mainly due to salary expenses which got increased from Rs. 715.34 lakhs in Fiscal 2023 to 1410.74 lakhs in Fiscal 2024, directors remuneration which got increased from Rs. 178.80 Lakhs in Fiscal 2023 to Rs.

254.65 Lakhs in Fiscal 2024, Gratuity Expenses from Rs. NIL in Fiscal 2023 to Rs. 44.01 Lakhs in Fiscal 2024.

Finance cost: Finance cost has increased by 65.46% from 80.32 lakhs in Fiscal 2023 to 132.90 lakhs in Fiscal 2024. This has been increased mainly due to increase in interest paid on borrowing from Rs. 38.65 Lakhs in Fiscal 2023 to Rs. 96.87 Lakhs in Fiscal 2024. Depreciation and Amortization Expenses: Depreciation has increased by 115.05% from 110.19 lakhs in Fiscal 2023 to

236.95 lakhs in Fiscal 2024 due to heavy capex during the year 2023-24.

Other Expenses: Other Expenses had increased by 47.94% from Rs. 790.45 lakhs in Fiscal 2023 to Rs. 1169.38 lakhs in Fiscal 2024. This significant increase in expenses was mainly due to increase in CSR Activities which increases from Rs. 14.89 lakhs in Fiscal 2023 to Rs. 92.37 lakhs in Fiscal 2024, Membership & Subscription Fees which got increased from Rs.27.85 Lakhs in Fiscal 2023 to Rs. 67.90 lakhs in Fiscal 2024, Printing & Stationary charges which got increased from Rs. 100.68 lakhs in Fiscal 2023 to Rs. 121.86 Lakhs in Fiscal 2024, Professional Fees which got increased from Rs. 116.96 lakhs in Fiscal 2023 to Rs. 171.99 lakhs in Fiscal 2024, Rent, Rates & Tax from Rs. 65.35 lakh in Fiscal 2023 to Rs. 113.14 lakhs in Fiscal 2024 & Sundry Balance Written off which got increased significantly from Rs. 152.88 Lakhs in Fiscal 2023 to Rs. 311.75 lakhs in Fiscal 2024.

Tax Expenses: The Companys tax expenses had increased to 1085.72 lakhs in the Fiscal 2024 as compared to 222.61 lakhs in Fiscal 2023. This was primarily due to increase in current tax expenses during the year. Tax Expenses are directly proportional to Profit Before Tax hence since overall profit before tax in Fiscal 2024 has increased to Rs 4086.43 lakhs as compared to Rs 1081.52 lakhs in Fiscal 2023 accordingly overall Tax Expense has also increased. Profit after Tax: After accounting for taxes at applicable rates, our Company recorded a net profit of 3,000.72 lakhs in Fiscal 2024, a significant increase from 858.92 lakhs in Fiscal 2023. This growth in Profit after Tax is primarily driven by higher overall revenue and a reduction in operating expenses.

	FY 2023-24		FY 2022-23		Variance in
Particulars	Amount in Lakhs	% to Turnover (X)	Amount in Lakhs	% to Turnover (Y)	Percentage (X Y)
Total Turnover (A)	13949.18	100.00%	7167.70	100.00%	-
Operating Expenses (B)	6710.20	48.10%	4276.50	59.66%	11.56%
Gross Profit (A B)	7238.98	51.90%	2891.20	40.34%	11.56%
Profit After Tax	3000.72	21.51%	858.92	11.98%	9.53%

The Increase in Gross Profit Margins is the result of reduced Operating Expenses of the Company which was Rs. 4276.50 Lakhs (59.66% of Turnover) in FY 2022-23 and Rs. 6710.20 Lakhs (48.10% of Turnover) in FY 2023-24.

During the FY 2023-24 the company has enhanced its Operational Efficiencies by leveraging its in-house capabilities and reducing reliance on Outsourcing Activities. This is reflected in an 11.56% improvement in Operating Expenses compared to the previous fiscal year.

Overall, this increase in Gross Profit margins has significantly contributed in the growth of figures of Profit After Tax.

The Operating Expenses for FY 2022-23 and FY 2023-24 as follows:

Particulars	FY 2023-24	% to Turnover	FY 2022-23	% to Turnover	Variance in Percentage
Turnover	13949.18	100.00	7167.70	100.00	0.00
Operating Expenses:
Sub-Contracting Charges	1823.92	13.08	1239.71	17.30	4.22
Technical Consultancy	3359.29	24.08	1710.40	23.86	-0.22
Professional Charges	425.77	3.05	532.51	7.43	4.38
Support Services	228.54	1.64	218.22	3.04	1.41
Direct Job Cost	811.85	5.82	499.39	6.97	1.15
Materials	52.48	0.38	41.70	0.58	0.21
Labour Cess	8.36	0.06	16.34	0.23	0.17
Others	--	--	18.23	0.25	--
Total	6710.20	48.10%	4276.50	59.66%

The reasoning of operational efficiencies under major area is mentioned below:

SUB CONTRACTING CHARGES: The expense under this head was 1239.71 Lakhs (17.30% of Turnover) in FY 2022-23 and Rs. 1823.92 Lakhs (13.08% of Turnover) in FY 2023-24. The company is prioritising on in house capabilities. In-house teams are handling a larger share of the work that was previously outsourced, resulting in a more controlled and cost-effective operations.

A strategic shift from outsourcing to in-house execution has been a key driver of the companys improved financial metrics. The workforce has grown substantially from 125 employees in March 2023 to 417 employees by March 2024. In addition to above, In FY 2022-23, the Company subcontracted 88.84% of the total work executed. However, with the procurement and implementation of new LiDAR technology equipment in FY 2023-24, reliance on subcontracting was significantly reduced, leading to a substantial decrease in subcontracting costs. As a result, only 20.47% of the total work executed in FY 2023-24 was subcontracted. The company has made substantial investments in capital assets during FY 2023-24, including Rs. 1335.45 Lakhs in sophisticated machinery. These investments have been effectively utilized to enhance operational capabilities and support the increased margins achieved during the fiscal year.

PROFESSIONAL CHARGES: Expenses under this category amounted to 532.51 lakhs in FY 2022-23, decreasing to 425.77 lakhs in FY 2023-24. Professional charges declined from 7.43% in FY 2022-23 to 3.05% in FY 2023-24, primarily due to the conversion of 165 professional consultants into full-time employees during FY 2023-24. Excluding these converted professionals, other professional charges were 3.53% in FY 2022-23 and reduced to 2.30% in FY 2023-24. SUPPORT SERVICES: This expense pertains to specialized technical services procured by the company in the area of computing. The cost under this head decreased due to the curtailment of activities associated with the project. Further the nature of this expense is Fixed Cost. Being a fixed cost, this expense does not vary in direct proportion to turnover. Consequently, the expense did not increase in alignment with the growth in turnover.

DIRECT JOB COST: The major components of Direct Job Costs include fuel, travel, lodging and boarding, job work, labor, and refreshments. These expenses are primarily semi-variable in nature. Consequently, they have not increased in direct proportion to the companys turnover.

It can be observed that the increase in Profit After Tax (PAT) for the financial year 2023-24 is distributed to multiple operational factors such as Scaling up activities has resulted in higher PAT, while reducing reliance on Outsourcing activities has resulted in enhanced cost efficiency, Increased workforce has contributed to higher margins through fixed cost efficiency etc. The Combination of all these factors have cumulatively contributed in increased PAT for the Financial Year 2023-24.

Cash Flows

Particulars	March 31, 2025	March 31, 2024	March 31, 2023
Net Cash from Operating Activities	2,390.96	3,452.67	516.83
Net Cash from Investing Activities	(2,869.71)	(2,944.57)	(1,149.83)
Net Cash used in Financing Activities	(37.06)	360.42	506.97

Cash Flows from Operating Activities: Net cash from operating activities for fiscal 2025 was at 2,390.96 lakhs as compared to the Profit Before Tax at 4674.15 lakhs while for fiscal 2024 Net cash from operating activities was at 3452.67 lakhs as compared to the Profit Before Tax at 4086.43 Lakhs. This was primarily due to adjustments against, changes in Working Capital & Income Tax Paid. Net cash from operating activities for fiscal 2024 was at 3452.67 lakhs as compared to the Profit Before Tax at 4086.43 lakhs while for fiscal 2023 Net cash from operating activities was at 516.83 lakhs as compared to the Profit Before Tax at 1081.53 Lakhs. This was primarily due to adjustments against adjustments against, changes in Working Capital & Income Tax Paid.

Cash Flows from Investment Activities: In fiscal 2025, the net cash invested in Investing Activities was (2869.71) lakhs. This was mainly on account of Purchases of Fixed Assets & Increase in Investments & Non-Current Assets. In fiscal 2024 the net cash invested in Investing Activities was (2944.57) lakhs. This was mainly on account of Purchases of Fixed Assets & Increase in Investments & Non-Current Assets. In fiscal 2023, the net cash invested in Investing Activities was (1149.83) lakhs. This was mainly on account of Purchases of Fixed Assets & Increase in Investments & Non-Current Assets.

Cash Flows from Financing Activities: In fiscal 2025, the net cash from financing activities was (37.06) lakhs. This was on account of Interest paid. In fiscal 2024, the net cash from financing activities was 360.42 lakhs. This was on account of Proceeds from borrowings. In fiscal 2023, the net cash from financing activities was 506.97 lakhs. This was on account of proceeds from borrowings.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. There are no Unusual or infrequent events or transactions in our Company. The transactions are as per usual business operations.

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

Except for any change in economic policy affecting our industry in India, there are no other significant economic changes that may materially affect or likely to affect income from continuing operations.

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

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 24 in the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Our Companys future costs and revenues will be determined by growth of industry in which we operate.

5. Increases in net sales or revenue and Introduction of new products or services or increased sales prices

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

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

Our Company has not announced any new Product.

7. Seasonality of business

Our Business is not seasonal in Nature.

8. Dependence on few customers/ clients

The percentage of contribution of our Companys Top Customers/Clients for the period ended March 31, 2025 is as follows:

Particulars	Customers
Top Ten (%)	84.52%

9. Competitive conditions

Competitive conditions are as described under the Chapters "Industry Overview" and "Business Overview" beginning on pages 103 and 122 respectively of the Red Herring Prospectus.

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

After the date of last Balance sheet i.e. March 31, 2025, no material events have occurred after the last audited period.

CAPITALISATION STATEMENT

Particulars	Pre-Issue March 31, 2025	Post Issue*
Debt:
Long Term Debt	1089.97	[?]
Short Term Debt	338.56	[?]
Total Debt	1428.54	-
Shareholders Funds
Equity Share Capital	1040.60	[?]
Reserves and Surplus	9839.64	[?]
Less: Misc. Expenditure		-
Total Shareholders Funds	10880.24	[?]
Long Term Debt/ Shareholders Funds	0.10	[?]
Total Debt / Shareholders Fund	0.13	[?]
* Assuming Full Allotment of IPO shares

*Note:-

1) "The pre-issue figures are as on 31.03.2025"

2) "The post issue figures are not available since issue price is not yet finalized"