Moving Media Entertainment Ltd

Moving Media Entertainment Ltd Management Discussions

NSEBSE

₹71.7

(-2.91%)

Jul 14, 2025|12:51:12 PM

Moving Media Entertainment Ltd Share Price 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, 2024 and 2023. We have included in this section a discussion of our restated financial statements as well as on a special purpose carved out financial statements. The discussion in this section is based on, and should be read in conjunction with, the Restated Consolidated Financial Information (including the schedules, notes and significant accounting policies thereto), included in "Restated Consolidated Financial Information" on page 183 of this Red herring prospectus and our Special Purpose Carved-Out Combined Financial Statements included in the section titled "Special Purpose Carved-Out Combined Financial Statements" on page 183 of this Red herring prospectus.

The restated financials for the financial year ended March 31, 2025, 2024 and 2023 including the related notes and reports, included in this Red herring prospectus is prepared in accordance with requirements of the Companies Act, 2013 and restated in accordance with the SEBI (ICDR) Regulations, 2018, which differ in certain material respects from IFRS, U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited statutory financial statements. Accordingly, the degree to which our Financial Statements as Restated will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.

For comparative purposes, we have prepared the Special Purpose Carved-Out Combined Financial Statements for the financial year ended March 31, 2024, 2023 and 2022 on a "carved-out" basis as if we had been in existence as a separate company since April 1, 2021 and as at and for the financial years ended March 31, 2023 and March 31, 2022. Accordingly, the Special Purpose Carved-Out Combined Financial Statements and certain operating information for the periods prior to the Business Transfer included elsewhere in this Red herring prospectus may not be reflective of our performance as a separate company after the Business Transfer. For risks related to our carved-out financials see

"Risk Factors - Our Special Purpose Carved-Out Combined Financial Statements and Carved-out Operating Data may not be representative of our results as an independent company" on page 31 of this Red herring prospectus.

This discussion contains forward looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these Forward-Looking Statements as a result of certain factors such as those described under chapters titled "Risk Factors" and "Forward Looking Statements" beginning on pages 31 and 24, respectively of this Red herring prospectus.

Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

Our Company was originally incorporated on May 19, 2022 as "Moving Media Entertainment Private Limited" under the provisions of the Companies Act, 2013 with the Registrar of Companies, Central Registration Centre. Subsequently the name of our Company was changed to "Moving Media Entertainment Limited" pursuant to shareholders resolution passed on June 25, 2024 and a fresh Certificate of Incorporation pursuant to change of name issued by the Assistant Registrar of Companies, Central Processing Centre on July 24, 2024. Our Company subsequently acquired the entire running business on a going concern basis with the Assets and Liabilities of M/s Moving Media, sole proprietorship concern of, Mr. Kuuldeep Beshawar Nath Bhargava vide Business Transfer Agreement dated August 05, 2024. W.e.f. April 01, 2024 pursuant to resolution of shareholders approval on August 05, 2024, The Corporate Identification Number of our Company is U92419MH2022PLC382959.

Moving Media Entertainment Limited is a Camera and Lens equipment outsourcing company, engaged in providing end to end camera and lens equipment on a rental and returnable basis in India. Our company carters to the media and entertainment industry across the country. Our business operations began as a proprietary firm in the name and style of M/s Moving Media in 2012. Over the years our company has Gardner years of experience in the industry and is growing its brand awareness through increase in customer base and earning trust through quality of services. Our promoter Mr. Kuuldeep Beshawar Nath Bhargava took a plunge to grow their business by setting up a Company under the name of Moving Media Entertainment Private Limited in the year 2022. Our company specialises in comprehensive and cost-effective solutions by offering services ranging from hardware and software sourcing to installation, integration, documentation, user training, and post-installation support. We pride ourselves on delivering solutions from Concept to Commissioning (C2C), ensuring our clients receive customized, end-to-end service.

We provide camera, camera lenses, filters, grips, gimbal, monitors, sound equipment and other peripherals like lighting setup on rental basis mainly to small, medium and large corporate engaged in the entertainment industry. Based on our clients requirements, we offer them tailor-made rental schemes that suit their requirements. By providing the camera and other equipment rental services to our customers, we provide them with the flexibility and advantage to acquire the requisite equipment that they need to maximize their productivity without compromising their budget and access to the best equipment.

For more details kindly refer our chapter titled "Our Business" on page 122 of this Red herring prospectus.

Significant Developments Subsequent to The Last Financial Year

In the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Red herring prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the previous twelve months except:

The members of our company have approved proposal of change in Name from "Moving Media Entertainment Private Limited" to "Moving Media Entertainment Limited" and the company converted its name form ‘Moving Media Entertainment Private Limited" to "Moving Media Entertainment Limited" pursuant to shareholders resolution passed on June 25, 2024.

The company issued 10,00,000 equity shares of 10/- each as bonus shares in the ratio of 100:1 (i.e., 100 (Hundred) Fully paid up Bonus Shares of Rs.10/- each will be allotted against the holding of 1 (One) equity shares of the Company) vide EGM resolution passed on July 29, 2024.

The Company issued 10,91,056 Equity Shares fully paid equity share of 10/- each at a premium of 150 each at an aggregate nominal value of 17,45,69,063.00 to Mr. Kuuldeep Beshawar Nath Bhargava, Proprietor of M/s Moving Media under Business Transfer Agreement for cash, vide resolution passed in its members meeting dated August 05, 2024 effect of this issue has been considered to calculate EPS.

The company issued 1,05,05,280 equity shares of 10/- each as bonus shares in the ratio of 5:1 (i.e., 5 (Five) Fully paid up Bonus Shares of Rs.10/- each will be allotted against the holding of 1 (One) equity shares of the Company) vide EGM resolution passed on September 14, 2024

The company increased itss Authorised equity share capital from 15,00,00,000/- to 18,50,00,000/- vide resolution passed in its members meeting dated September 13, 2024.

The Board of our Company has approved to raise funds through initial public offering in the Board meeting held on July 26, 2024.

The members of our Company approved proposal of Board of Directors to raise funds through initial public offering in the extra ordinary general meeting held on July 29, 2024.

The companys Company Secretary and Compliance officer Mr. Dipesh Mangesh Penkar has resigned w.e.f. from May 05, 2025 and the company has appointed Ms. Surbhi Gupta as Company Secretary and Compliance officer w.e.f. June 04, 2025.

The company increased itss Authorised equity share capital from 18,50,00,000/- to 19,00,00,000/- vide resolution passed in its members meeting dated June 06, 2025.

Factors Affecting Our Results of Operations

Our companys future results of operations could be affected potentially by the following factors:

1. Comprehensive and Up-to-Date Inventory

2. High Equipment Ownership

3. Strong Network with other State Vendors

4. Access to Premium Imported Equipment

5. Responsive Logistics Team for Inventory Issues

6. Customized Rental Solutions

7. Expert Technical Support

8. Strong Industry Relationships

9. Commitment to Quality and Reliability

10. Strong Customer Relationships with High Retention 11. Timely Fulfillment of Services

Our business is subjected to various risks and uncertainties, including those discussed in the section titled ‘Risk Factors beginning on page 31 of this Red herring prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Key Performance Indicators of our Company

The following table set forth certain key performance indicators for the years indicated:

(Rs. in Lakhs)

Key Financial Performance	Restated Financial Statements⁽¹⁾			Special Purpose Carved-Out Financial Statements⁽²⁾
Key Financial Performance	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024	For the financial year ended March 31, 2023	For the financial year ended March 31, 2024	For the financial year ended March 31, 2023	For the financial year ended March 31, 2022
Revenue from operations⁽³⁾	3,706.38	2,338.11	767.48	2,882.59	1,646.54	1,336.42
EBITDA⁽⁴⁾	2,859.47	1,646.89	227.50	2,244.26	758.64	645.62
EBITDA Margin % ⁽⁵⁾	77.15	70.44	29.64	77.86	46.07	48.31
PAT	1,039.68	1,008.97	149.65	1,028.94	211.59	122.38
PAT Margin % ⁽⁶⁾	28.05	43.15	19.50	35.69	12.85	9.16
Networth⁽⁷⁾	3,944.98	1,159.61	150.65	2,905.30	1,036.40	443.04
RoE %⁽⁸⁾	26.35	87.01	99.34	35.42	20.42	27.62
RoCE% ⁽⁹⁾	18.49	53.43	59.15	30.63	15.28	15.19

Notes:
^{(1) Based on the Restated Financial Information
Financial year ended March 31, 2025, 2024 and 2023. See "Restated Financial
Information” on page 183.
^{(2) Based on the Special Purpose Carved-Out
Combined Financial Statements for the financial year ended March 31, 2024, 2023 and 2022,
which have been prepared on a carved-out basis from the audited financial statements of
the Moving Media Proprietorship Concern and our Restated Financial Information. This
carved-out financial information is not financial information of our Company. See "Special
Purpose Carved-Out Combined Financial Statements” on page 183. See also“Risk
Factors Our Special Purpose Carved-Out Combined Financial Statements and Carved-out
Operating Data may not be representative of our results as an independent company" on
page 31.
^{(3) Revenue from Operations means the Revenue from
Operations as appearing in the Restated Consolidated Financial Statements
⁽⁴⁾EBITDA is calculated as Profit before tax
+ Depreciation + Finance Costs - Other Income.
^{(5) ‘EBITDA Margin is calculated as
EBITDA divided by Revenue from Operations.
^{(6) ‘PAT Margin is calculated as PAT
for the period/year divided by revenue from operations.
^{(7) Net worth means the aggregate value of the
paid-up share capital and reserves and surplus of the company.
⁽⁸⁾ Return on Equity is ratio of Profit after
Tax and Shareholder Equity
^{(9) Return on Capital Employed is calculated as
EBIT divided by capital employed, which is defined as shareholders equity plus total
debt and deferred tax liability. Here, EBIT is calculated as Profit before tax + Finance
Costs.}}}}}}}
Key Operational Indicators:

Key Financial Performance	Restated Financial Statements⁽¹⁾			Special Purpose Carved-Out Financial Statements⁽²⁾
	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024	For the financial year ended March 31, 2023	For the financial year ended March 31, 2024	For the financial year ended March 31, 2023	For the financial year ended March 31, 2022
Number of Clients	147	108	70	116	146	86
Total Projects	516	296	203	304	422	236
Total Duration of Projects ( in Lakh)	10,228	7,739	4,095	8,323	8,605	5,109
Total Amount	3,706.38	2,338.11	767.48	2,882.59	1,646.54	1,336.42
Average Duration per Project⁽³⁾	20	26	20	28	21	22
Average Project Value ( in Lakh)	7.18	7.90	3.78	9.48	3.90	5.66
Average Client Revenue ( in Lakh)	25.21	21.65	10.96	24.85	11.28	15.54

^{(1) Based on the Restated Financial Information
for Financial year ended March 31, 2025, 2024 and 2023. See "Restated Financial
Information" on page 187
^{(2) Based on the Special Purpose Carved-Out
Combined Financial Statements for the financial year ended March 31, 2024, 2023 and 2022,
which have been prepared on a carved-out basis from the audited financial statements of
the Moving Media Proprietorship Concern and our Restated Financial Information. This
carved-out financial information is not financial information of our Company. See
"Special Purpose Carved-Out Combined Financial Statements" on page 187. See also
"Risk Factors Our Special Purpose Carved-Out Combined Financial Statements and
Carved-out Operating Data may not be representative of our results as an independent
company" on page 32
(3⁾ Average Duration to complete a project
(days) is calculated as total duration taken to complete all the projects divided by no.
of projects completed.
For further detail on Key Performance Indicators of our
company, please refer Chapter Titled "Basis of Offer Price" on page 97 of
this Red herring prospectus.}}
STATEMENT OF SIGNIFICANT POLICIES OF RESTATED FINANCIAL STATEMENTS

Corporate Information:

1. Company Background

The company was originally formed & incorporated as a Private Limited Company at Mumbai, Maharashtra under the Companies Act, 2013 under the name of "MOVING MEDIA ENTERTAINMENT PRIVATE LIMITED" vide certificate of incorporation dated May 19, 2022 bearing Corporate Identity Number U92419MH2022PTC382959 issued by the Registrar of Companies, Mumbai, Maharashtra. Subsequently, our company was converted into Public Limited Company vide special resolution passed by our shareholders at the Extra Ordinary General Meeting held on June 25, 2024 and the name of the company was changed to "MOVING MEDIA ENTERTAINMENT LIMITED" pursuant to issuance of Fresh Certificate of Incorporation dated July 24, 2024 by Registrar of Companies, Mumbai, Maharashtra. The Corporate Identification Number of our company U92419MH2022PLC382959.

The company is mainly engaged in the business specializing in Camera and Lenses Renting Services.

Significant Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the applicable Accounting Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 under historical cost convention on accrual basis. All the assets and liabilities have been classified as current or non-current as per Companys normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of activities, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

1.2 Use of Estimates

The preparation of the financial statements is in conformity with Indian GAAP (Generally Accepted Accounting Principles) which requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities as on the date of the financial statements. The estimates and assumptions made and applied in preparing the financial statements are based upon managements best knowledge of current events and actions as on the date of financial statements. However, due to uncertainties attached to the assumptions and estimates made actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Revenue Recognition

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

ii) Sale of Services: Revenue from services rendered is recognised in Statement of Profit and Loss as the underlying services are performed and recognised net of GST.

(iii) GST: GST on purchase of hire services has been deducted in the value of services. Input credit in respect of services and capital expenditure has been accounted for on accrual basis. Input Credit on capital goods has been deducted from the cost of such capital goods/GST.

1.4 Property, Plant and Equipment & Intangible Assets: Property, Plant and Equipment & Intangible Assets:

i) Recognition and measurement

Property, Plant and Equipment (PPE) are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use. Company has adopted cost model for all class of items of Property Plant and Equipment & Intangible Assets. The Company has acquired PPE under Business Transfer Agreement (BTA) w.e.f April 1, 2024 which includes total gross block of Rs. 2,589.52/- Lakhs.

ii) Depreciation

During the year, the same has been calculated in accordance with the Schedule II prescribed under Companies Act, 2013. The Company depreciates its fixed assets on WDV basis in the manner prescribed in Schedule II of the Act Depreciation for assets purchased / sold during a period is proportionately charged. Depreciation on additions to assets or on sale/discardment of assets is calculated on pro rata basis from the date of such addition or up to the date of such sale/discardment, as the case may be. Depreciation charged on PPE under Business Transfer Agreement (BTA) on WDV basis.

Impairment of Assets:

The Company periodically assesses whether there is any indication that an asset may be impaired. If any indication exists, the Company estimates the recoverable amount of the asset and if such recoverable of the asset is less than carrying cost of the asset, then the carrying amount is reduced to its recoverable amount. The deduction is treated as an impairment loss and is recognised in profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exits, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciable historical cost. An impairment loss is reversed only to the extent that the carrying amount of asset does not exceed the net book value that would have been determined; if no impairment loss had been recognised.

1.5 Employee Benefits

i) Short term employee benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the statement of Profit and loss for the year which includes benefits like salary, wages, bonus and are recognized as expenses in the period in which the employee renders the related service.

ii) Defined Contribution Plan:

The Company has Defined Contribution Plans for Post-employment benefits in the form of Provident Fund for all employees which are administered by Regional Provident Fund Commissioner. Provident Fund and Employee State Insurance are classified as defined contribution plans as the Company has no further obligation beyond making the contributions. The Companys contributions to Defined Contribution plans are charged to the Statement of Profit and Loss as and when incurred.

iii) Defined Benefit Plan:

Unfunded Plan the Company has a defined benefit plan for post-employment benefit in the form of Gratuity. Liability for the above defined benefit plan is provided on the basis of valuation, as at the Balance Sheet date, carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method

1.6 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of assets. A qualifying asset is one that necessarily takes substantial part of time to get ready for its intended use. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

1.7 Tax Expense

(i) Tax expense comprises of both current and deferred taxes. The current charge for income taxes is calculated in accordance with the relevant tax regulations. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.

(ii) Deferred tax liability are recognized only to the extent that there is reasonable certainty that sufficient future tax liability will arise against which such deferred tax liability can be arise. Deferred tax liability is recognized on difference in WDV of assets there is certainty that such deferred tax liability will be arise in against future taxable profits.

1.8 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year (after deducting preference dividends and attributable taxes) attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of fresh issue of equity shares.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year (after deducting preference dividends and attributable taxes) attributable equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.9 Provisions & Contingencies

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.

A disclosure of contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.10 Earnings per share (EPS)

(a) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

(b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.11 Lease

Assets acquired under Leases, where the Company has substantially all the risks and rewards of ownership, are classified as finance leases. Such leases are capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

1.12 Cash and Cash Equivalent

Cash and cash equivalents comprise cash and balances with banks. The Company considers all highly liquid investments with an original maturity of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.13 Changes in Accounting Policies in the Period/Years Covered in The Restated Financial Statements

There is no change in significant accounting policies adopted by the Company.

1.14 Other Notes on Restated Financial statements

The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements/ information may not necessarily be same as those appearing in the respective audited financial statements for the relevant years.

Contingent liabilities and commitments (to the extent not provided for) - A disclosure for a contingent liability is also made when there is a possible obligation that may, require an outflow of the Companys resources.

Figures have been rearranged and regrouped wherever practicable and considered necessary.

The management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required to be provided for. The balances of trade payables, trade receivables, loans and advances are unsecured and considered as good are subject to confirmations of respective parties concerned.

Realizations: In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets and loans and advances are approximately of the same value as stated.

Contractual liabilities: All other contractual liabilities connected with business operations of the Company have been appropriately provided for.

Amounts in the restated standalone financial statements: Amounts in the restated standalone financial statements are rounded off to nearest Lakhs. Figures in brackets indicate negative values

1.15 Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when it is: i) Expected to be realised or intended to be sold or consumed in normal operating cycle ii) Held primarily for the purpose of trading iii) Expected to be realised within twelve months after the reporting period, or iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when: i) It is expected to be settled in normal operating cycle ii) It is held primarily for the purpose of trading iii) It is due to be settled within twelve months after the reporting period, or iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current.

1.16 Related Party Transactions

Disclosure of transactions with related parties and where control exists, as required by Accounting Standard 18 "Related Party Disclosure" has been set out in a Notes to the Financial Statement. Related parties as defined under clause 3 of the Accounting Standard have been identified based on representations made by key managerial personnel and information available with the Company.

1.17 Disclosure of accounting Policies

The accounting policies have been disclosed to the extent applicable to the Company.

Discussion on Results of Operation

The following discussion on results of operations should be read in conjunction with the Audited Financial Results of our Company for the financial years ended on March 31, 2025, 2024, and 2023.

STATEMENT OF SIGNIFICANT POLICIES OF SPECIAL PURPOSE CARVED-OUT FINANCIAL STATEMENTS

A) Group Information and Material Accounting Policy Information

The company was originally formed & incorporated as a Private Limited Company at Mumbai, Maharashtra under the Companies Act, 2013 under the name of "MOVING MEDIA ENTERTAINMENT PRIVATE LIMITED" vide certificate of incorporation dated 19th May 2022 bearing Corporate Identity Number U92419MH2022PTC382959 issued by the Registrar of Companies, Mumbai, Maharashtra. Subsequently, our company was converted into Public Limited Company vide special resolution passed by our shareholders at the Extra Ordinary General Meeting held on June 25th, 2024 and the name of the company was changed to "MOVING MEDIA ENTERTAINMENT LIMITED" pursuant to issuance of Fresh Certificate of Incorporation dated July 24th, 2024 by Registrar of Companies, Mumbai, Maharashtra. The Corporate Identification Number of our company U92419MH2022PLC382959.

M/s Moving Media, sole proprietorship concern of companys promoter Mr. Kuuldeep Beshawar Nath Bhargava were identified for the purpose of acquisition and accordingly the Board of Directors of the Company had approved the transfer of Assets and liabilities of the sole proprietorship to Moving Media Entertainment Limited at book value, through a Business Transfer Agreement (BTA) dated August 05, 2024 w.e.f. April 01, 2024.

The special purpose carved out combined financial statements comprise the financial statements of M/s Moving Media (proprietorship) and Moving Media Entertainment Limited- (collectively referred as Moving Media Group). This special purpose carved out combined financial statements of Moving Media Group for the years ended March 31, 2024, March 31, 2023 & March 31, 2022 ("Special Purpose Carved Out Combined Financial Statements") have been prepared as per the Basis of preparation and for the purposes as set out in Note B below.

The company and the Proprietorship are mainly engaged in the business specializing in Camera and Lenses Renting Services.

B) Basis of Preparation

This Special Purpose Carved Out Combined Financial Statements have been prepared in accordance with the Guidance Note on Combined and Carve-Out Financial Statements ("Guidance Note") issued by the Institute of Chartered Accountants of India ("ICAI") to reflect the state of affairs, profit, and cash flows of the Moving Media Group for the respective years, for use in relation to the preparation of the Red herring prospectus, Red Herring Prospectus and a Prospectus and any other documents in relation to the IPO (as defined herein after) (together, the "Offer Document") to be filed by the Company with the Securities and Exchange Board of India (SEBI), National Stock Exchange ("NSE") ( "Stock Exchange") and Registrar of Companies (RoC), Mumbai in connection with the proposed initial public offer of equity shares ("IPO") of Moving Media Entertainment Limited.

The Special Purpose Carved Out Combined Financial Statements includes the carve-out business in respect of M/s Moving Media (the "Carve-Out Business") which has been combined with the standalone financial statements of the Company for the year ended March 31, 2024, March 31, 2023 & March 31, 2022 (the Carve-Out Business, M/s Moving Media and Moving Media Entertainment Limited hereinafter collectively referred to as the "Combining Businesses") .

As per the Guidance Note, the procedure for preparing combined financial statements of the Combining Businesses is the same as that for consolidated financial statements as per the applicable Accounting Standards. The information presented in the Special Purpose Carved Out Combined Financial Statements may not be representative of the position which has prevailed after the transaction in relation to transfer of M/s Moving Media. The Special Purpose Carved Out Combined Financial Statements have been prepared on a going concern basis considering the material accounting policies stated below. The procedure followed for the preparation of the Special Purpose Carved Out Combined Financial Statements is as given below:

(a) The financial information for the Moving Media Group included in the Special Purpose Carved Out Combined Financial Statements have been extracted from the audited standalone financial statements of Moving Media Entertainment Limited (formerly known as Moving Media Entertainment Private Limited) & M/s Moving Media (Proprietorship) to the extent considered necessary, for the years ended March 31, 2024, March 31, 2023 and March 31, 2022 as applicable, which had been prepared basis in accordance Accounting Standards (AS) notified under the Section 133 of the Companies Act, 2013 (‘the Act) and other generally accepted accounting principles in India.

(b) Since these Special Purpose Carved Out Combined Financial Statements have been prepared for use in connection with the proposed IPO of the Company as stated above, the same has been presented based on the latest audited Financial Statements of the Company and has been prepared in accordance with the accounting policies applied therein.

(c) The historical costs and expenses reflected in the Special Purpose Carved Out Combined Financial Statements include an allocation for certain corporate and shared service functions are based on the individual unit level financial statements wherein the same have been allocated either on the basis of actual usage when identifiable or on such other basis which provides a reasonable reflection of the historical utilisation levels of these services.

(d) Deferred Tax liability in respect of the Carve-Out Business has been determined considering the applicability of various provisions of the Income Tax Act and having regard to the expert opinion obtained in this regard, which has been appropriately recognised in the Special Purpose Carved Out Combined Financial Statements, with corresponding adjustment in the Owners Net Investment.

(e) Since these statements have been prepared on carve out combined basis, it is not meaningful to show a share capital or provide an analysis of reserves for the period prior to the date of incorporation of the Company. Proprietors Capital (representing owners investment) disclosed in the Special Purpose Carved Out Combined Financial Statements therefore represents the difference between the assets and liabilities pertaining to the Moving Media Group, duly adjusted for the balances carried in reserves and surplus. The balance in reserves and surplus represents retained earnings pertaining to the Combining Businesses which has been determined based on the closing balances as of March 31, 2021 duly adjusted for the profit including other comprehensive income for the respective financial year.

(f) The equity share capital of the Company as at March, 31, 2024 is 1 Lakh represented by 10,000 shares of par value 10/- each. As per the BTA 10,91,056 shares were issued at face value of 10 and 150 premium per share to acquire M/s Moving Media. Since the Statement of Profit & Loss presents the operating results for the entire financial year of Proprietorship, it is not practical to determine and disclose the earnings per share in the Special Purpose Carved Out Combined Financial Statements. Management believes the assumptions underlying the Special Purpose Carved Out Combined Financial Statements including the assumptions regarding the allocation of general corporate expenses, are reasonable. Nevertheless, the Special Purpose Carved Out Combined Financial Statements may not include all of the actual expenses that would have been incurred had it been operated as a standalone company during the periods presented and may not reflect the combined results of operations, financial position and cash flows had it operated as a standalone company during the periods presented, since the actual costs that would have been incurred if it had been operated as a standalone company would depend on multiple factors, including organisational structure and strategic decisions made in various areas, including information technology and infrastructure and other additional costs. Events occurring after the date of approval of the financial statements of Moving Media Group for the respective years, if any, have not been adjusted in the Special Purpose Carved Out Combined Financial Statements.

These carved out combined financials have been prepared on a carved out basis to present the assets and liabilities of the Moving Media Group at these dates, as if the Group had been in existence as at these dates. As a result, these financial statements may not be suitable for any other purpose.

Significant Accounting Policies

1.1 Basis of consolidation

The carved out combined financial statements of the Moving Media Group have been prepared by applying the Guidance note referred above. While applying the above guidance, financial statements / information of the entities have been combined on the following basis:

a) Combine like items of assets, liabilities, equity, income, expenses and cash flows of the combining businesses;

b) Inter-company transactions, balances and unrealised gains/losses on transactions between the entities in the group are eliminated; Carved Out Combined financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances.

1.2 Use of Estimates

1.3 Revenue Recognition

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

ii) Sale of Services: Revenue from services rendered is recognised in Statement of Profit and Loss as the underlying services are performed and recognised net of GST.

1.4 Property, Plant and Equipment & Intangible Assets

Property, Plant and Equipment & Intangible Assets: i). Recognition and measurement Property, Plant and Equipment (PPE) are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use. Company has adopted cost model for all class of items of Property Plant and Equipment & Intangible Assets. The Company has Acquired PPE under Business Transfer Agreement (BTA) w.e.f April 1, 2024

ii). Depreciation

During the year, the same has been calculated in accordance with the Schedule II prescribed under Companies Act, 2013. The Company depreciates its fixed assets on WDV basis in the manner prescribed in Schedule II of the Act Depreciation for assets purchased / sold during a period is proportionately charged. Depreciation on additions to assets or on sale/discardment of assets is calculated on prorata basis from the date of such addition or up to the date of such sale/discardment, as the case may be. Depreciation charged on PPE under Business Transfer Agreement (BTA) on WDV basis.

iii). Impairment of Assets

1.5 Employee Benefits

i) Short term employee benefits

ii) Defined Contribution Plan:

iii) Defined Benefit Plan:

1.6 Borrowing Costs

All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.

1.7 Tax Expense

(ii) Deferred tax liability are recognized only to the extent that there is reasonable certainty that sufficient future tax liability will arise against which such deferred tax liability can be arise. Deferred tax liability are recognized on difference in WDV of assets there is certainty that such deferred tax liability will be arise in against future taxable profits.

1.8 Earnings per share

1.9 Provisions & Contingencies

1.10 Leases

1.11 Cash And Cash Equivalent

1.12 Earnings per share (EPS)

1.13 Changes in Accounting Policies in the Period/Years Covered in The Restated Financial Statements

There is no change in significant accounting policies adopted by the Company.

1.14 Other Notes on Restated Financial statements

Figures have been rearranged and regrouped wherever practicable and considered necessary.

The management has confirmed that adequate provisions have been made for all the known and determined liabilities and the same is not in excess of the amounts reasonably required to be provided for.

The balances of trade payables, trade receivables, loans and advances are unsecured and considered as good are subject to confirmations of respective parties concerned.

Realizations: In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets and loans and advances are approximately of the same value as stated.

Contractual liabilities: All other contractual liabilities connected with business operations of the Company have been appropriately provided for.

Amounts in the restated standalone financial statements: Amounts in the restated standalone financial statements are rounded off to nearest Lakhs. Figures in brackets indicate negative values

1.15 Current and Non-Current Classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when it is:

i) Expected to be realised or intended to be sold or consumed in normal operating cycle

ii) Held primarily for the purpose of trading

iii) Expected to be realised within twelve months after the reporting period, or

iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when:

i) It is expected to be settled in normal operating cycle

ii) It is held primarily for the purpose of trading

iii) It is due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current.

1.16 Related Party Transaction

1.17 Disclosure of accounting Policies

The accounting policies have been disclosed to the extent applicable to the Company.

Results of Our Operations based on Restated Financial Statements

The following table sets forth select financial data from our Financial Statements as Restated Profit and Loss for the financial years ended on March 31, 2025, 2024 and 2023 the components of which are also expressed as a percentage of total revenue for such periods:

(Rs.in Lakhs)

Particulars	For the year ended 31.03.20 25	% of Total income	For the year ended 31.03.20 24	% of Total income	For the year ended 31.03.20 23	% of Total income
Revenue from operations	3,706.38	100.00 %	2,338.11	100.00%	767.48	100.00%
Other income	-	-	-	-	-	-
Total Income (A)	3,706.38	100.00 %	2,338.11	100.00%	767.48	100.00%
Expenses:
Cost of Operations	624.42	16.85%	593.57	25.39%	506.08	65.94%
Purchase of Stock in Trade	-	-	-	-	-	-
Change in Inventory of Stock in Trade and Finished Goods	-	-	-	-	-	-
Employee Benefit Expenses	79.27	2.14%	23.00	0.98%	3.29	0.43%
Other Expenses	143.22	3.86%	74.66	3.19%	30.62	3.99%
Total Expenses (B)	846.92	22.85%	691.23	29.56%	539.99	70.36%
Earnings Before Interest, Taxes,	2,859.47	77.15%	1,646.89	70.44%	227.50	29.64%
Depreciation & Amortization(C=A-B)
Finance Cost (D)	174.78	4.72%	35.51	1.52%	0.01	0.00%
Depreciation and Amortization Expenses (E)	1,286.23	34.70%	262.55	11.23%	27.51	3.58%
Profit before Exceptional Items	1,398.45	37.73%	1,348.82	57.69%	199.98	26.06%
Exceptional Items	-	-	-	-	-	-
Profit/(Loss) before Tax	1,398.45	37.73%	1,348.82	57.69%	199.98	26.06%
Tax Expenses:
Current Tax	79.01	2.13%	239.76	10.25%	29.36	3.83%
Deferred Tax	279.75	7.55%	100.10	4.28%	20.97	2.73%
Earlier Year tax	-	-	-	-	-	-
	358.77	9.68%	339.86	14.54%	50.33	6.56%
Profit/(Loss) for the year	1,039.68	28.05%	1,008.97	43.15%	149.65	19.50%

Overview of Revenue and expenditure

Revenue and Expenditure

Total Income: Our total income comprises of revenue from operations.

Revenue from operations: Our revenue from operations comprises of Sales of service which includes hire charges of camera and other equipment.

Expenses: Our expenses comprise of Cost of operations, Employee Benefit Expenses, Finance Cost, Depreciation and Amortisation Expenses and Other Expenses.

Cost of operations: Our cost of operations consists of Hire charges paid, Transportation Charges, software charges and Attendant Charges.

Employee Benefit Expenses: Our employee benefit expense consists of Salary and Wages, Employer Contribution PF, ESIC, Staff Welfare and Gratuity Expenses.

Finance Cost: Our finance costs comprise of Bank Charges, Interest Expenses, Loan Processing Charges and Processing Fees.

Depreciation and amortisation expenses: Tangible assets are depreciated over periods corresponding to their estimated useful lives. Depreciation includes depreciation charged on Property, Plant & Equipment.

Other expenses: Other expenses includes Audit Fees, Bank Charges, Business Promotion Expense, Commission Charges, Colourist Charges, Donation, Demat Charges, Electricity Expenses, Food Expenses, Freight Charges, House Keeping Expenses, Inspection Charges, Insurance Charges, Internet Expense, Interest & Penalty On Late Payment, Labour Charges, Legal & Professional Fees, Late Fees, MCA Fees, Office Expenses, Office Maintenance Expenses, Other Expenses, Printing & Stationery, Penal Interest, Stamp Duty & Registration Charges, Trademark Registration Fees, Rent Expenses, Repair and Maintenance and Travelling Expenses.

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

COMPARISON OF FY 2024-25 WITH FY 2023-24

Income

Our Total Income increased by 1,368.27 lakhs, from 2,338.11 lakhs for the financial year ended March 31, 2024 to 3,706.38 lakhs for the financial year ended March 31, 2025, due to the factors described below

Revenue from operations

Our Revenue from operations increased by 1,368.27 lakhs, from 2,338.11 lakhs for the financial year ended March 31, 2024 to 3,706.38 lakhs for the financial year ended March 31, 2025, representing a growth of 58.52% on account of increase of Camera and Lens equipment outsourcing and providing end to end camera and lens equipment on a rental and returnable basis in India. The details of the same is mentioned below:

Particulars	FY 24-25	FY 23-24
Revenue from Operation (Rs. in Lakhs)	3,706.38	2,338.11
Number of projects handled	516	296
Average Revenue per project (Rs. in Lakhs)	7.18	7.90
Decrease in average revenue per project (Rs. in Lakhs) in 24-25 as compared to 23-24	0.72
Reduction in revenue on account of decrease in average revenue (Rs. in Lakhs)	(213.12)
Increase in number of projects in 24-25 as compared to 23-24	220
Additional revenue on account of increase in number of projects (Rs. in Lakhs)	1,581.39
Total Increase in Revenue from Operations (Rs. in Lakhs)	1,368.27

Other Income

There is no Other income during the financial year ended March 31, 2025 & March 31,2024.

Expenses

Our Total Expenses excluding finance cost, depreciation and tax expenses was 846.92 lakhs for the year ended March 31,2025 as compared to 691.23 Lakhs for the financial year March 31, 2024, representing Increase of 22.52% due to the factors described below

Cost of Operations

The company increased its investment in cameras and accessories from 1,825.53 Lakhs in FY 23-24 to 5,367.07 Lakhs for the year ended March 31, 2025. This enhanced investment has reduced the reliance on external vendors for camera and accessory rentals, leading to a decrease in associated hire charges during the financial year ended March 31, 2025.

The increase of cost by 30.85 Lakhs from 593.57 in FY 23-24 to 624.42 in FY 24-25. Consequently, the proportionate percentage of the Cost of Operations has declined from 25.39% in FY 23-24 to 16.85% for the year ended March 31, 2025, resulting in a 15.33% increase in profit margin.

Employee benefits expenses

There was increase of 1.16% in the proportionate employee benefit cost and increase 0.67% in Other expenses of the company which had a negligible impact on profit margin of the company by 0.48%

Depreciation and amortization expenses

The company acquired assets through BTA on April 01, 2024 and also company purchased some assets during the current financial year as a result, fixed assets of the company increased by 4,080.84 Lakhs. As a result, there was significant increase in depreciation of the company for financial year ended March 31, 2025 from 262.55 to 1,286.23 which impacted the profit margin to decline by 23.47%.

Finance costs

Company took various loans for its business during the financial year ended March 31, 2025 which amounted to 2,870.65 Lakhs (Net) due to which company incurred higher finance cost to the tune of 174.78 Lakhs for the financial year ended March 31, 2025 as compared to 35.51 Lakhs for FY 23-24 which impacted the profit margin to decline by 3.20%.

Other expenses

Our Other Expenses increased by 68.56 lakhs, from 74.66 lakhs for the financial year ended March 31, 2024, to 143.22 lakhs for the financial year ended March 31, 2025, which is 3.19% and 3.86% of the total revenue. The increase in other expenses is due to increase in Colorist Charges, Donation, Demat Charges, Electricity Expenses, Food Expenses, Freight Charges, Inspection Charges, Insurance Charges, Internet Expense, Interest & Penalty On Late Payment, Legal & Professional Fees, Mca Fees, Office Expenses, Penal Interest, Stamp Duty & Registration Charges, Trademark Registration Fees and Rent Expenses which was partially set-off by decrease in Audit Fees, Business Promotion Expense, Commission Charges, Late Fees, Printing & Stationary and Repair and Maintenance.

Profit before tax

Our Profit before Tax increased by 49.63 lakhs, from 1,348.82 lakhs for the financial year ended March 31, 2024, to 1,398.45 lakhs for the financial year ended March 31, 2025, representing a growth of 3.68% on account of higher increase in Income from Hire charges services as compared to expenses incurred.

Tax expenses

Tax expenses of the company decreased as a result of increase in profits of the company and tax-deductible items which impacted the profit margin by 4.68%. The increase in tax expenses of 18.91 from 339.86 in FY 23-24 to 358.77 inFY 24-25.

Profit After Tax

Apart from the increase in revenue, PAT Margin of the company decreased by 15.10% from 43.15% for FY 2023-24 to 28.05% for FY 2024-25. The reason for change in PAT Margin is majorly due to increase in depreciation and decrease in cost of operations due to reason described above.

COMPARISON OF FY 2023-24 WITH FY 2022-23

Income

Our Total Income increased by 1,570.63 lakhs, from 767.48 lakhs for the financial year ended March 31, 2023 to 2,338.11 lakhs for the financial year ended March 31, 2024, due to the factors described below

Revenue from operations

Our Revenue from operations increased by 1570.63 lakhs, from 767.48 lakhs for the financial year ended March 31, 2023, to 2,338.11 lakhs for the financial year ended March 31, 2024, representing a growth of 204.65% on account of increase of Camera and Lens equipment outsourcing and providing end to end camera and lens equipment on a rental and returnable basis in India. Please refer "Key operational indicators" as mentioned under chapter - "Basis for Issue Price" which depicts Total projects served, total clients engaged as well as revenue generated from the same.

Other Income

There is no Other income during the financial year ended March 31, 2023 & March 31,2024.

Expenses

Our Total Expenses excluding finance cost, depreciation and tax expenses was 691.23 lakhs for the year ended March 31,2024 as compared to 539.99 Lakhs for the financial year March 31, 2023, representing Increase of 28.01% due to the factors described below

Cost of Operation

Our Cost of Operations increased by 87.49 lakhs, from 506.08 lakhs for the financial year ended March 31,2023 to 593.57 lakhs for the financial year ended March 31, 2024 representing Increase of 17.29% due to increase in hire charges paid and software charges with was offset by decrease in attendant charges.

Employee Benefits Expenses

Our Employee Benefit Expenses increased by 19.71 lakhs, from 3.29 lakhs for the financial year ended March 31, 2023, to 23.00 lakhs for the financial year ended March 31, 2024, representing a increase of 598.61% due to increase in Salary and Wages and Staff welfare expenses on account of increase in number of employees.

Finance Costs

Our Finance Cost increased by 35.51 lakhs, from 0.01 lakhs for the financial year ended March 31, 2023, to 35.51 lakhs for the financial year ended March 31, 2024, on account fresh borrowings taken by the company which leads to increase in Interest on Term Loan, Working capital term loan and other borrowings.

Depreciation and Amortization Expense

Our Depreciation and Amortization Expenses increased by 235.04 lakhs, from 27.51 lakhs for the financial year ended March 31, 2023, to 262.55 lakhs for the financial year ended March 31, 2024, representing increase of 854.28% due to fresh acquisition of significant Fixed Assets.

Other Expenses

Our Other Expenses increased by 44.04 lakhs, from 30.62 lakhs for the financial year ended March 31, 2023, to 74.66 lakhs for the financial year ended March 31, 2024, which is 3.99% and 3.19 % of the total revenue of respective years, representing an increase of 143.85%. The increase in other expenses is due to increase in Payment to Audit Fees, Business Promotion Expense, Colorist Charges, Donation, Electricity Expenses, Interest & Penalty On Late Payment,

Legal & Professional Fees, Late Fees, Mca Fees, Office Expenses, Repair and Maintenance which was partially set-off by decrease in, Commission Charges, Printing & Stationary, and Travelling Expenses.

Profit Before Tax

Our Profit before Tax increased by 1,148.84 lakhs, from 199.98 lakhs for the financial year ended March 31, 2023, to 1,348.82 lakhs for the financial year ended March 31, 2024, representing a growth of 574.48% on account of higher increase in Income from Hire charges services as compared to expenses incurred.

Tax Expenses

Our Tax expanses increased by 289.52 lakhs, from 50.33 lakhs for the financial year ended March 31, 2023, to 339.86 lakhs for the financial year ended March 31, 2024 representing Increase of 575.25% on account of increase in deferred tax and Current tax due to increase in profits.

Profit After Tax

Apart from the increase in revenue, PAT Margin of the company increased by 23.65% from 19.50% for FY 2022-23 to 43.15% for FY 2023-24. The details of the same are as follows:

Increase in Revenue

There is an increase in Revenue from Operations of 1,570.63 Lakhs in FY 2023-24 as compared to FY 2022-23 due to increase in number of projects handled by the company along with increase in average revenue per project of the company (which mainly consist better customize package with high end equipments).

The details of the same are as follows:

Particulars	FY 23-24	FY 22-23
Revenue from Operation (Rs. in Lakhs)	2,338.11	767.48
Number of projects handled	296	203
Average Revenue per project (Rs. in Lakhs)	7.90	3.78
Increase in average revenue per project (Rs. in Lakhs) in 23-24 as compared to 22-23	4.12
Additional revenue on account of increase in average revenue (Rs. in Lakhs)	836.02
Increase in number of projects in 23-24 as compared to 22-23	93
Additional revenue on account of increase in number of projects (Rs. in Lakhs)	734.61
Total Increase in Revenue from Operations (Rs. in Lakhs)	1,570.63

Changes in Total Expenses from FY 2022- 23 to 2023-24

(Rs.in Lakhs)

Particulars	FY 23-24	% of Revenue	FY 22-23	% of Revenue	% Change
Cost of Operations (1)	593.57	25.39%	506.08	65.94%	40.55%
Employee Benefit Expense (2)	23.00	0.98%	3.29	0.43%	(0.55)%
Depreciation and amortization expense (3)	262.55	11.23%	27.51	3.58%	(7.64)%
Finance Cost (4)	35.51	1.52%	0.01	0.00%	(1.52)%
Other Expenses (5)	74.66	3.19%	30.62	3.99%	0.80%
Total Tax Expenses (6)	339.86	14.54%	50.33	6.56%	(7.98)%
					23.65%

(1) Cost of Operations: The company invested significantly into Cameras and Accessories from the FY 22-23 of 554.19 Lakhs to FY 23-24 1,825.53 Lakhs. This investment leads to increase revenues as well as decrease the dependability of hiring the cameras and accessories from external vendors. The Company has also saved Attendant charges because of the revised requirements of attendants from the Production Houses from FY 23-24 onwards. The workforce in the production industry is highly flexible, varying from shoot to shoot based on the specific needs of production houses. Some projects require additional support personnel, while others rely on in-house teams. In many cases, attendants are hired directly on a contract basis by production houses. Ultimately, the staffing structure is determined by the production house or company, depending on their operational requirements and project scale. The Cost of Operation is not directly proportionate change in revenue. However, as a percentage of revenue from Cost of operations of the company has decreased from 65.94% for FY 22-23 to 25.39% for FY 23-24 which impacted to the increase in Net Profit Margin by 40.55%.

(2) Employee Benefit Expenses: There was a nominal increase of 0.55% in FY 2024 as compared to FY 2023 in employee benefit cost due to increase in which was in line with increase in Revenue.

(3) Depreciation and amortization Expenses: There was addition of 1,825.53 Lakhs in FY 23-24 in the Fixed Assets of the company due to which the Depreciation increased significantly from 27.51 Lakhs to 262.55 Lakhs which lead to decrease the Net Profit Margin of the company by 7.64%.

(4) Finance Cost: In FY 2023-24 the borrowings of the company increased to meet the working Capital and Capital Expenditure requirements. As result of which the company incurred finance cost to the tune of 35.51 Lakhs in FY 23-24 which impacted the decrease in profit margin by 1.52%

(5) Other Expenses : There was negligible impact of the other expenses by 0.80% in the profit margin of the company which is in line with the change in Revenue.

(6) Tax expenses: Tax expenses of the company increased as a result of increase in profits of the company which impacted the profit margin to decline by 7.98%

Conclusion: For the above reasons there was a change in PAT and PAT Margin by 23.65% from 19.50% for FY 2022-23 to 43.15% for FY 2023-24.

Results of Our Operations based on our Special Purpose Carved-out Financial Statements

The following table sets forth select financial data from our Special Purpose Carved-out Financial Statements for the financial years ended on March 31, 2024, 2023 and 2022 the components of which are also expressed as a percentage of total revenue for such periods:

(Rs.in Lakhs)

Particulars	For the year ended 31.03.2024	% of Total income	For the year ended 31.03.2023	% of Total income	For the year ended 31.03.2022	% of Total income
Revenue from operations	2,882.59	99.37%	1,646.54	100.00%	1,336.42	100.00%
Other income	18.39	0.63%	0.02	0.00%	0.02	0.00%
Total Income (A)	2,900.98	100.00%	1,646.55	100.00%	1,336.44	100.00%
Expenses:
Cost of Operations	484.39	16.70%	746.65	45.35%	587.43	43.95%
Purchase of Stock in Trade	-	-	-	-	-	-
Change in Inventory of Stock in Trade and Finished Goods	-	-	-	-	-	-
Employee Benefit Expenses	34.67	1.20%	51.92	3.15%	48.39	3.62%
Other Expenses	119.27	4.11%	89.33	5.43%	54.98	4.11%
Total Expenses (B)	638.33	22.14%	887.90	53.93%	690.80	52.69%
Earnings Before Interest, Taxes, Depreciation & Amortization(C=A-B)	2,262.64	78.00%	758.66	46.08%	645.65	48.31%
Finance Cost (D)	149.52	5.15%	133.79	8.13%	149.69	11.20%
Depreciation and Amortization	737.61	25.43%	342.11	20.78%	332.43	24.87%
Expenses (E)
Profit before Exceptional Items	1,375.51	47.42%	282.75	17.17%	163.53	12.24%
Exceptional Items	-	-	-	-	-	-
Profit/(Loss) before Tax	1,375.51	47.42%	282.75	17.17%	163.53	12.24%
Tax Expenses:
Current Tax	246.47	8.50%	50.19	3.05%	41.16	3.08%
Deferred Tax	100.10	3.45%	20.97	1.27%	-	0.00%
Earlier Year tax	-	-	-	-	-	-
	346.57	11.95%	71.16	4.32%	41.16	3.08%
Profit/(Loss) for the year	1,028.94	35.47%	211.59	12.85%	122.38	9.16%

Overview of Revenue and expenditure

Revenue and Expenditure

Total Income: Our total income comprises of revenue from operations and Other Income.

Revenue from operations: Our revenue from operations comprises of Sales of service being hire charges.

Expenses: Our expenses comprise of Cost of operations, Employee Benefit Expenses, Finance Cost, Depreciation & Amortisation Expenses and Other Expenses.

Cost of operations: Our cost of operations consists of Hire charges paid, Transportation Charges, software charges and Attendant Charges.

Employee Benefit Expenses: Our employee benefit expense consists of Salary And Wages, Employer Contribution PF and ESIC, Staff Welfare and Gratuity Expenses.

Finance Cost: Our finance costs comprise of Bank Charges, Interest Expenses, Loan Processing Charges and Processing Fees.

Depreciation and amortisation expenses: Tangible assets are depreciated over periods corresponding to their estimated useful lives. Depreciation includes depreciation charged on Property, Plant & Equipment.

Other expenses: Other expenses includes Audit Fees, Annual Fees, Business Promotion Expense, Commission Charges, Colorist Charges, Donation, Electricity Expenses, Fuel Expenses, House Keeping Expenses, Insurance Charges, Interest on Statutory (GST AUDIT), Interest & Penalty on Late Payment, Labour Charges, Legal & Professional Fees, Late Fees, Office Expenses, Other Expenses, Printing & Stationery, Rent Expenses, Repair and Maintenance, Travelling Expenses.

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.

COMPARISON OF FY 2023-24 WITH FY 2022-23

Income

Our Total Income increased by 1,254.42 lakhs, from 1,646.55 lakhs for the financial year ended March 31, 2023 to 2,900.98 lakhs for the financial year ended March 31, 2024, due to the factors described below

Revenue from operations

Our Revenue from operations increased by 1,236.05 lakhs, from 1,646.54 lakhs for the financial year ended March 31, 2023, to 2,882.59 lakhs for the financial year ended March 31, 2024, representing a growth of 75.07% on account of increase in orders for renting of camera and equipment. Please refer "Key operational indicators" as mentioned under chapter - "Basis for Issue Price" which depicts Total projects served, total clients engaged as well as revenue generated from the same.

Other Income

Our Total Income increased by 18.37 lakhs, from 0.02 lakhs for the financial year ended March 31, 2023, to 18.39 lakhs for the financial year ended March 31, 2024 on account of write off of 0.83 Lakhs and Prior period income on 17.55 lakhs for the financial year ended March 31, 2024.

Expenses

Our Total Expenses excluding finance cost, depreciation and tax expenses was 638.33 lakhs for the year ended March 31,2024 as compared to 887.90 Lakhs for the financial year March 31, 2023, representing decrease of 28.11% due to the factors described below

Cost of Operation

Our Cost of Operations decreased by 262.26 lakhs, from 746.65 lakhs for the financial year ended March 31,2023 to 484.39 lakhs for the financial year ended March 31, 2024 representing decline of 35.13% due to decrease in hire charges paid and transportation charges which was offset by increase in attendant charges.

Employee Benefits Expenses

Our Employee Benefit Expenses decreased by 17.24 lakhs, from 51.92 lakhs for the financial year ended March 31, 2023, to 34.67 lakhs for the financial year ended March 31, 2024, representing a decrease of 33.21% due to decrease in Salary and wages on account of decrease in number of employees.

Finance Costs

Our Finance Cost increased by 15.73 lakhs, from 133.79 lakhs for the financial year ended March 31, 2023, to 149.52 lakhs for the financial year ended March 31, 2024, on account of increase in Interest on Term Loan and Processing Fees which was partially set-off by decrease in Loan Processing Charges.

Depreciation and Amortization Expense

Our Depreciation and Amortization Expenses increase by 395.50 lakhs, from 342.11 lakhs for the financial year ended March 31, 2023, to 737.61 lakhs for the financial year ended March 31, 2024, representing a growth of 115.60% due to fresh acquisition of Fixed Assets.

Other Expenses

Our Other Expenses increased by 29.95 lakhs, from 89.33 lakhs for the financial year ended March 31, 2023, to 119.27 lakhs for the financial year ended March 31, 2024, which is 5.43 % and 4.11 % of the total revenue of respective years, representing an increase of 33.53%. The increase in other expenses is due to increase in Audit Fees, Business Promotion Expense, Colorist Charges, Electricity Expenses, Fuel Expenses, Housekeeping Expenses, Interest & Penalty on Late payment, Labour Charges, Legal & Professional Fees, Late Fees which was partially set-off by decrease in Commission Charges, Donation, Insurance Charges, Office Expenses, Printing & Stationary Other Expenses and Repair and Maintenance.

Profit Before Tax

Our Profit before Tax increased by 1,092.76 lakhs, from 282.75 lakhs for the financial year ended March 31, 2023 to 1,375.51 lakhs for the financial year ended March 31, 2024, representing a growth of 386.48% on account of increase in Income from Hire charges services and on the other hand decrease in Major expense.

Tax Expenses

Our Tax expanses increased by 275.41 lakhs, from 71.16 lakhs for the financial year ended March 31, 2023, to 346.57 lakhs for the financial year ended March 31, 2024 representing Increase of 387.02% on account of increase in deferred tax and Current tax due to increase in profits.

Profit After Tax

Our Profit for the year increased by 817.35 lakhs, from 211.59 lakhs for the financial year ended March 31, 2023, to 1,028.94 lakhs for the financial year ended March 31, 2024, representing a growth of 386.30%, lakhs mainly due to increase in profit because of reason mentioned below:

a) Increase in Revenue from Operations

On the basis of Special Purpose Carved-out Financial Statements, there is increase in Revenue from Operations by 1,236.05 Lakhs in FY 2023-24 as compared to FY 2022-23 due to increase in average revenue per project handled by the company.

The details of the same are as follows:

Particulars	FY 23-24	FY 22-23
Revenue from Operation (Rs. in Lakhs) (A)	2,882.59	1,646.54
Number of projects handled (B)	304	422
Average Revenue per project (In Lakhs) (C) = (A)/(B)	9.48	3.90
Increase in average revenue per project (In Lakhs) in 23-24 as compared to 22-23 (D)	5.58
Additional revenue on account of increase in average revenue (Rs. in Lakhs) (E) = (B for 23-24)*(D)	1,696.46
Decrease in number of projects in 23-24 as compared to 22-23 (F)	118
Reduction in revenue on account of decrease in number of projects (Rs. in Lakhs) (G)= (F)*(C for 22-23)	460.41
Net Increase in Revenue from Operations (Rs. in Lakhs) (H)=(D)-(G)	1,236.05

b) Changes in Other Income and Total Expenses

Apart from the increase in revenue from operations, PAT Margin of the company increased by 22.84% from 12.85% for FY 2022-23 to 35.69% for FY 2023-24 due to the components as explained below:

(Rs. in Lakhs)

Particulars	FY 23-24	% of Revenue	FY 22-23	% of Revenue	% Change
Revenue from Operations	2,882.59	100.00%	1,646.54	100.00%	0.00%
Other Income (1)	18.39	0.64%	0.02	0.00%	0.64%
Cost of Operations (2)	484.39	16.80%	746.65	45.35%	28.54%
Employee Benefit Expense (3)	34.67	1.20%	51.92	3.15%	1.95%
Depreciation and amortisation expense (4)	737.61	25.59%	342.11	20.78%	(4.81)%
Finance Cost (5)	149.52	5.19%	133.79	8.13%	2.94%
Other Expenses (6)	119.27	4.14%	89.33	5.43%	1.29%
Total Tax Expenses (7)	346.57	12.02%	71.16	4.32%	(7.70)%
Total					22.84%

(1) Other Income: There was increase in Other Income due to write off of balances and prior period adjustments in FY 23-24 as a result of which the other income increased by 18.37 Lakhs which impacted the PAT Margin to increase by 0.64%

(2) Cost of Operations: The company invested significantly into Cameras and Accessories in FY 23-24 amounting to 2,469.62 Lakhs. This investment has led to increase in revenues as well as decrease the dependability on hiring of the cameras and accessories from external vendors. The Company has also saved Attendant charges because of the revised requirements of attendants from the Production Houses from FY 23-24 onwards. The workforce in the production industry is highly flexible, varying from shoot to shoot based on the specific needs of production houses. Some projects require additional support personnel, while others rely on in-house teams. In many cases, attendants are hired directly on a contract basis by production houses. Ultimately, the staffing structure is determined by the production house or company, depending on their operational requirements and project scale. The Cost of Operation is not directly proportionate to the change in revenue. However, as a percentage of revenue, the Cost of operations of the company has decreased from 45.35% for FY 22-23 to 16.80% for FY 23-24 which impacted to the increase in PAT Margin by 28.54%.

(3) Employee Benefit Expenses: There was nominal change of 1.95% in the proportionate employee benefit cost due to increase in salaries and wages of the employees during FY 23-24 as compared to FY 22-23.

(4) Depreciation and Amortisation Expenses: There were addition to Fixed Assets amounting to 2,469.62 Lakhs in FY 23-24 due to which there was significant rise in Depreciation Expenses from 342.11 Lakhs in FY 22-23 to 737.61 Lakhs in FY 23-24 which had a negative impact on PAT Margin of the company by 4.81%.

(5) Finance Cost: Company had availed business term loan of 700 Lakhs and cash credit of 300 Lakhs during the second half of FY 23-24 which led to increased finance cost by 15.73 Lakhs. The proportionate finance cost for FY 22-23 was 8.13% and for FY 23-24 was 5.19%, Since the finance cost has not increased as a proportion to revenue it impacted the PAT Margin to increase by 2.94%.

(6) Other Expenses: There was negligible impact of the other expenses by 1.29% in the PAT Margin of the company as the proportionate other expenses decreased with the increase in revenue.

(7) Total Tax Expenses: Tax expenses of the company increased as a result of increase in profits of the company which impacted the PAT Margin to decline by 7.70%.

COMPARISON OF FY 2022-23 WITH FY 2021-22

Income

Our Total Income increased by 310.11 lakhs, from 1,336.44 lakhs for the financial year ended March 31, 2022 to 1,464.55 lakhs for the financial year ended March 31, 2023, due to the factors described below

Revenue from operations

Our Revenue from operations increased by 310.12 lakhs, from 1,336.42 lakhs for the financial year ended March 31, 2022, to 1,646.54 lakhs for the financial year ended March 31, 2023, representing an increase of 23.21% on account of increase in hire charges received. Please refer "Key operational indicators" as mentioned under chapter - "Basis for Issue Price" which depicts Total projects served, total clients engaged as well as revenue generated from the same.

Other Income

There is no change in Other Income of the company which is 0.02 lakhs for both financial year ended March 31, 2022 and financial year ended March 31, 2023 being discount received.

Expenses

Our Total Expenses excluding finance cost, depreciation and tax expenses was 690.80 lakhs for the year ended March 31,2022 as compared to 887.90 Lakhs for the financial year March 31, 2023, representing increase of 28.53% due to the factors described below

Cost of Operations

Our Cost of Operations increased by 159.22 lakhs, from 587.43 lakhs for the financial year ended March 31,2022 to 746.65 lakhs for the financial year ended March 31, 2023, representing increase of 27.10% on account of increase in Attendant Charges, Software which is partially offset by decrease in Hire charges and Transportation Charges.

Employee Benefits Expenses

Our Employee Benefit Expenses increased by 3.53 lakhs, from 48.39 lakhs for the financial year ended March 31, 2022, to 51.92 lakhs for the financial year ended March 31, 2023, representing a increase of 7.30 % on account of Increase in salary and wages and Staff welfare expenses.

Finance Costs

Our Finance Cost decreased by 15.89 lakhs, from 149.69 lakhs for the financial year ended March 31, 2022 to 133.79 lakhs for the financial year ended March 31, 2023, representing decrease of 10.62%, on account repayment of Long-Term borrowings and decrease in Interest on Term Loan, Working capital term loan and other borrowings.

Depreciation and Amortization Expense

Our Depreciation and Amortization Expenses increased by 9.69 lakhs, from 332.43 lakhs for the financial year ended March 31, 2022, to 342.11 lakhs for the financial year ended March 31, 2023, representing increase of 2.91% due to wear and tear of fixed assets.

Other Expenses

Our Other Expenses increased by 34.35 lakhs, from 54.98 lakhs for the financial year ended March 31, 2022, to 89.33 lakhs for the financial year ended March 31, 2023, which is 4.11% and 5.43% of the total revenue of respective years, representing an increase of 62.47% due to increase in Annual Fees, Business Promotion Expense, Commission Expenses, Donation, Electricity Expenses, Housekeeping Expenses, Interest & Penalty On Late Payment, Other Expenses, Printing & Stationery, Rent Expenses, Repair and Maintenance and Travelling Expenses which was partially set off by decrease in Fuel Expenses, Insurance Charges, Interest on Statutory Dues, Labour Charges, Legal & Professional Fees and Office Expenses.

Profit Before Tax

Our Profit before Tax increased by 119.22 lakhs, from 163.53 lakhs for the financial year ended March 31, 2022, to 282.75 lakhs for the financial year ended March 31, 2023, representing a growth of 72.90% on account of increase in revenue as compared to expenses.

Tax Expenses

Our Tax expanses increased by 30.00 lakhs, from 41.16 lakhs for the financial year ended March 31, 2022, to 71.16 lakhs for the financial year ended March 31, 2023, on account of increase in Current tax and deferred tax expenses.

Profit After Tax

Our Profit for the year increased by 89.21 lakhs, from 122.38 lakhs for the financial year ended March 31, 2022, to 211.59 lakhs for the financial year ended March 31, 2023, representing an increase of 72.90% lakhs due to factors mentioned above.

Changes in Cash Flows

The table below summaries our cash flows from our Restated Financial Statements for \financial years ended March 31, 2025, 2024 and 2023 as well as from Special Purpose Carved-out Financial Statements for the financial years ended March 31, 2024, 2023 and 2022:

(Rs. in Lakhs)

	Restated Financial Statements			Special Purpose Carved-out Financial Statement
Particulars	As on March 31, 2025	As on March 31, 2024	As on March 31, 2023	As on March 31, 2024	As on March 31, 2023	As on March 31, 2022
Net cash (used in)/ generated from operating Activities	956.26	737.36	394.38	1,316.85	911.56	951.60
Net cash (used in)/ generated from investing Activities	(5,367.07)	(1,825.48)	(554.19)	(2,213.07)	(1,181.38)	(711.23)
Net cash (used in)/ generated from financing Activities	4,441.55	1,099.75	167.46	907.58	276.21	(235.76)
Net increase/ (decrease) in cash and cash Equivalents	30.74	11.62	7.65	11.35	6.39	4.61
Cash and Cash Equivalents at the beginning of the period	19.27	7.65	-	23.52	17.13	12.52
Cash and Cash Equivalents at the end of the Period	50.01	19.27	7.65	34.88	23.52	17.13

Operating Activities

As per the Restated Financial Statements

Financial year 2024-25

Our net cash generated from operating activities was 956.26 Lakhs for the financial year ended March 31, 2025. Our operating profit before working capital changes was 2,859.47 Lakhs which was primarily adjusted against increase in trade receivables by 732.34 Lakhs, Increase in Short-Term Loans & Advances 896.80 Lakhs, increase in Other Current Assets by 480.78 Lakhs, increase in trade payables by 305.75 Lakhs, increase in other current liabilities by 140.72 Lakhs which was further decreased by payment of Income Tax of 239.76 Lakhs.

Financial year 2023-24

Our net cash generated from operating activities was 737.36 Lakhs for the year ended March 31, 2024. Our operating profit before working capital changes was 1,637.02 Lakhs which was primarily adjusted against Increase in trade receivables by 476.87 Lakhs, Short-Term Advances increased by 331.45 Lakhs, and Increase in Other current assets by 38.50 Lakhs, a decrease in trade payables by 129.50 Lakhs, increase in other current liabilities by 106.02 Lakhs which was further decreased by payment of Income Tax of 29.36 Lakhs.

Financial year 2022-23

Our net cash generated from operating activities was 394.38 Lakhs for the year ended March 31, 2023. Our operating profit before working capital changes was 227.50 Lakhs which was primarily adjusted against an increase in trade receivables by 269.27 Lakhs, increase in other current assets by 30.84 Lakhs, an Increase in trade payables by 463.93 Lakhs, increase in other current liabilities by 3.06 Lakhs.

As per the Special Purpose Carved-out Financial Statements

Financial year 2023-24

Our net cash generated from operating activities was 1,316.85 Lakhs for the year ended March 31, 2024. Our operating profit before working capital changes was 2,262.64 Lakhs which was primarily adjusted against Increase in trade receivables by 429.93 Lakhs, Short-Term Advances increased by 351.50 Lakhs and Increase in Other current assets by 26.20 Lakhs, a decrease in trade payables by 484.96 Lakhs, increase in other current liabilities by 323.76 Lakhs which was further decreased by payment of Income Tax of 29.36 Lakhs.

Financial year 2022-23

Our net cash generated from operating activities was 911.56 Lakhs for the year ended March 31, 2023. Our operating profit before working capital changes was 758.66 Lakhs which was primarily adjusted against an increase in trade receivables by 220.14 Lakhs, increase in other current assets by 95.54 Lakhs, an Increase in trade payables by 479.58 Lakhs and decrease in other current liabilities by 11.00 Lakhs.

Financial year 2021-22

Our net cash generated from operating activities was 951.60 Lakhs for the year ended March 31, 2022. Our operating profit before working capital changes was 645.65 Lakhs which was primarily adjusted against a decrease in trade receivables by 79.73 Lakhs, an Increase in trade payables by 208.15 Lakhs and increase in other current liabilities by 18.07 Lakhs.

Investing Activities

As per the Restated Financial Statements

Financial year 2024-25

Our net cash used in investing activities was 5,367.07 Lakhs for the year ended March 31, 2025. These were on account of Purchase of Property, Plant & Equipment of 5,367.07 Lakhs.

Financial year 2023-24

Our net cash used in investing activities was 1,825.48 Lakhs for the financial year 2023-24. This was primarily due to net purchases of Property, Plant & Equipment amounting to 1,825.48 Lakhs.

Financial year 2022-23

Our net cash used in investing activities was 554.19 Lakhs for the financial year 2022-23. This was primarily due to net purchases of Property, Plant & Equipment amounting to 554.19 Lakhs.

As per the Special Purpose Carved-out Financial Statement

Financial year 2023-24

Our net cash used in investing activities was 2,213.07 Lakhs for the financial year 2023-24. This was primarily due to net purchases of Property, Plant & Equipment amounting to 2,469.57 Lakhs and increase in long term loans and advances by 256.50 lakhs.

Financial year 2022-23

Our net cash used in investing activities was 1,818.38 Lakhs for the financial year 2022-23. This was primarily due to net purchases of Property, Plant & Equipment amounting to 1,171.83 Lakhs and decrease in long term loans and advances by 9.55 lakhs.

Financial year 2021-22

Our net cash used in investing activities was 711.23 Lakhs for the financial year 2021-22. This was primarily due to purchases of Property, Plant & Equipment amounting to 732.30 Lakh and Net Proceeds of Long Term Loans & Advances of 21.08 Lakhs.

Financing Activities

As per the Restated Financial Statements

Financial year 2024-25

Net cash generated from financing activities for the financial year ended March 31, 2025 was 4,441.55 Lakhs which was primarily on account of increase in share capital 1,745.69 Lakhs, Net Proceeds of Long-Term Borrowings of 1,339.67 lakhs, Net proceeds of Short-Term Borrowings of 1,530.97 Lakhs and decreased because of Finance Cost of 174.78 Lakhs.

Financial year 2023-24

Net cash generated in financing activities for the financial year March 31, 2024, was 1,099.75 Lakhs, which was primarily due to Net Proceeds of Long-Term borrowings of 517.79 Lakhs, Net proceeds of Short-Term borrowings of

607.61 Lakhs and Finance cost of 25.65 Lakhs.

Financial year 2022-23

Net cash generated from financing activities for the financial year March 31, 2023, was 167.46 Lakhs, which was primarily due to Net Proceeds of Short-Term borrowings of 166.47 Lakhs Issue of Share Capital on Incorporation 1 Lakhs and Finance Cost of 0.01 Lakhs.

AS per the Special Purpose Carved-out Financial Statement

Financial year 2023-24

Net cash generated in financing activities for the financial year March 31, 2024, was 907.58 Lakhs, which was primarily due to Increase in Share Capital of 833.24 lakhs, Repayment of Long-Term borrowings of 191.10 Lakhs, Net proceeds of Short-Term borrowings of 414.96 Lakhs and Finance cost of 149.52 Lakhs.

Financial year 2022-23

Net cash generated from financing activities for the financial year March 31, 2023, was 276.21 Lakhs, which was primarily due to Increase in Share Capital of 360.95 lakhs, Repayment of Long-Term borrowings of 11.62 Lakhs, Net Proceeds of Short-Term borrowings of 60.67 Lakhs and Finance Cost of 133.79 Lakhs.

Financial year 2021-22

Net cash used in financing activities for the financial year March 31, 2022, was 235.76 Lakhs, which was primarily due to Increase in Share capital of 162.11 Lakhs, Repayment in Long-Term borrowings of 80.93 Lakhs, Repayment in Short-Term borrowings of 167.26 Lakhs and Finance Cost of 149.69 Lakhs.

Other Key Ratios

The table below summaries key ratios in our Restated Financial Statements for the financial years ended March 31, 2025, 2024 and 2023 and Special Purpose Carved-out Financial Statements for the financial year ended March 31, 2024, 2023 and 2022.

Particulars	Restated Financial Statement			Special Purpose Carved-out Financial Statement
	For the financial year ended March 31, 2025	For the financial year ended March 31, 2024	For the financial year ended March 31, 2023	For the financial year ended March 31, 2024	For the financial year ended March 31, 2023	For the financial year ended March 31, 2022
Fixed Asset Turnover Ratio	0.60	1.12	1.46	0.62	0.56	0.63
Current Ratio	1.01	0.80	0.46	0.56	0.26	0.12
Debt Equity Ratio	1.05	1.11	1.10	0.65	1.61	3.65

Fixed Asset Turnover Ratio: This is defined as revenue from operations divided by total fixed assets based on Financial Statements.

Current Ratio: This is defined as current assets divided by current liabilities, based on Financial Statements.

Debt Equity Ratio: This is defined as total debt divided by total shareholder funds. Total debt is the sum of long-term borrowings, short-term borrowings and current maturities of long-term debt, based on Financial Statements.

Financial Indebtedness

As on March 31, 2025, the total outstanding borrowings of our Company as per our Restated Financial Statements is as below. For further details, refer to the chapter titled "Statement of Financial Indebtedness" beginning on page 212 of this Red herring prospectus.

(Rs. in Lakhs)

Particulars	As on March 31, 2025
Loans from Banks & Financial Institutions	2,857.63
Loans from Related parties	1,303.08
Total	4,160.71

Related Party Transactions

Related party transactions with our promoters, directors and their entities and relatives primarily relate to purchase and sale of products and services. For further information, please refer to the chapter titled "Financial Statements as Restated" on page 183 of this Red herring prospectus.

Off-Balance Sheet Items

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.

Qualitative Disclosure about Market Risk

Financial Market Risks

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risk

Our financial results are subject to changes in interest rates, which may affect our debt service obligations and our access to funds.

Effect of Inflation

We are affected by inflation as it has an impact on the raw material cost, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

Credit Risk

We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.

Reservations, Qualifications and Adverse Remarks

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on page 183 of this Red herring prospectus, there have been no reservations, qualifications and adverse remarks.

Details of Default, if any, including therein the Amount Involved, Duration of Default and Present Status, in Repayment of Statutory Dues or Repayment of Deposits or Repayment of Loans from any Bank or Financial Institution.

Except as disclosed in chapter titled "Financial Statements as Restated" beginning on page 183 of this Red herring prospectus, there have been no defaults in payment of statutory dues and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.

FACTORS THAT MAY AFFECT THE RESULTS OF THE OPERATIONS

Unusual or infrequent events or transactions

There are no transactions or events, which in our best judgment, would be considered unusual or infrequent that have significantly affected operations of the Company.

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

There are no significant economic changes that materially affected Companys operations or are likely to affect income from continuing operations. Any slowdown in the growth of Indian economy or future volatility in global commodity prices, could affect the business including the future financial performance, shareholders funds and ability to implement strategy and the price of the Equity Shares.

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 disclosed in the chapter titled "Risk Factors" beginning on page 31 of this Red herring prospectus to our knowledge, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

Future changes in relationship between costs and revenues in case of events such as future increase in labour or material cost or prices that will cause material change

According to our knowledge, there are no future relationship between cost and income that would be expected to have a material adverse impact on our operations and revenues. However, increase in the cost of the Goods and services in which the Company deals, will affect the profitability of the Company. Further, the Company may not be able to pass on the increase in prices of the services to the customers in full and this can be offset through cost reduction.

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

The increase in revenue is by and large linked to increase in volume of all the activities carried out by the Company.

Total turnover of each major industry segment in which the Issuer Company operates

Our Company is primarily engaged Hire charges services of Camera, Lances, other Ancillary Equipments and more.

Relevant industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 107 of this Red herring prospectus.

Competitive Conditions

We have competition with domestic and international bedding essentials manufacturers who may vertically integrate their supply chains by acquiring or establishing their own distribution operation which reduces the need for independent distributors and create additional competition in the market. We expect competition to intensify due to possible new entrants in the market, existing competitors further expanding their operations and our entry into new markets where we may compete with well-established unorganized companies/ entities. This we believe may impact our financial condition and operations. For details, please refer to the chapter titled "Risk Factors" beginning on page 31 of this Red herring prospectus.

Increase in income

Increases in our income are due to the factors described above in in this chapter under "Factors Affecting Our Results of Operations" and chapter titled "Risk Factors" beginning on page 31 of this Red herring prospectus.

Status of any Publicly Announced New Business Segments

Except as disclosed elsewhere in the Red herring prospectus, we have not announced and do not expect to announce in the near future any new business segments.

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