Neptune Logitek Ltd Management Discussions

OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the five months period ended August 31, 2025 and for Fiscal Years 2025, 2024, and 2023 and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled ? inancial Statements as Restated?beginning on page 209 of this Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.

You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Prospectus. You should also read the section titled ? isk Factors?beginning on page

29 of this Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to ? e? ? s?or ? ur?refers to Neptune Logitek Limited, our Company. Unless otherwise indicated, financial information included herein are based on our ? Financial Statements as Restated ?for the five months period ended August 31, 2025 and Financial Years 2025, 2024 and 2023 included in this Prospectus beginning on page 209 of this Prospectus.

Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be ? orward Looking Statements?within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.

Overview of the Company

Our Company was incorporated as Amardeep Logistics Private Limited at Gandhidham, Gujarat, as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated March 02, 2012, issued by the RoC, Ahmedabad. Our Company has changed its name from Amardeep Logistics Private Limited to Neptune Logitek Private Limited under the provisions of Companies Act, 2013, vide special resolution passed by the Shareholders at Extra Ordinary General Meeting held on March 24, 2022 pursuant to a certificate of incorporation dated April 05, 2022. Our Company was converted from a private limited company to a public limited company pursuant to special resolution passed by the Shareholders at the EGM dated October 14, 2024. Consequently, the name of our Company was changed from Neptune Logitek Private Limited to Neptune Logitek Limited and a fresh certificate of incorporation consequent upon conversion to public company dated November 20, 2024 was issued by the Assistant Registrar of Companies/ Deputy Registrar of Companies/ Registrar of Companies, Central Processing Centre.

We are an integrated logistics company in India, primarily operating in (i) Freight Forwarding and Custom Clearance including Import and Export; (ii) Air Freight Transportation (including Import and Export and Courier Services; (iii) Door to Door Multimodal Coastal Forwarding (iv) Road Transportation and (v) Rail Transportation. We have pan-India operations through our network of head office and 9 (Nine) branch offices as at the Date of Prospectus

With over 13 thirteen years of our operational experience since inception, we provide differentiated logistics solutions with our: (a) pan-India presence, (b) integrated service offerings, (c) focus on improving service through door to door services, and (d) large network of vehicle fleet. Our management has focused on providing quality services to our customers over decades of operations and thereby building credibility with our customer base, including our longstanding customers. Our company is benefited from the extensive experience of our promoter Mr. Ankit Shah, who is associated with our company since its incorporation and having experience of more than 15 (Fifteen) years in the Logistic Industry. Our Board of Directors, Key Managerial Personnel and Senior Management Personnel has also provided significant contribution in the growth of our company.

We operate on an asset-based business model, where the key assets required to deliver quality services to our customers such as commercial vehicles, containers etc are either owned by us or supplied through a network of business partners on a lease basis. As part of this model, we maintain a fleet of owned vehicles and collaborate with our network of partners to lease additional vehicles as needed.

Neptune Logiteks commitment extends beyond mere movement of cargo. By providing clients with complete visibility into how logistics impacts overall costs, the company empowers them to explore alternative supply options and utilize multiple transportation modes to achieve their operational and financial goals.

With a fleet of over 190 trailers operating in and around Gujarat, Chennai, and Tuticorin, Neptune Logitek is well-equipped to meet diverse logistics needs.

For further information on its business, please refer to ? usiness Overview? beginning on page no. 142 of the Prospectus and for further details pertaining to its financial performance, please see ? inancial Information as Restated? beginning on page no. 209 of the Prospectus.

Significant Developments Subsequent to the Financial Year

1) The Board of our Company has approved Directors to issue up to 90,00,000 equity shares of Rs. 10/- each as Fully paid-up Bonus Shares of an aggregate nominal value up to Rs. 9,00,00,000/- in the board meeting held on 8 th September, 2024.

Factors Affecting Our Results of Operations

Our business is subject to various risks and uncertainties, including those discussed in the section titled ? Risk Factors ?on page 29 beginning of this Prospectus .

Government Regulations & Policies; Competition from exiting players;

Failure to adapt to the changing technology in our industry of operation may adversely affect our business and financial conditions; Occurrence of Environmental problems & uninsured losses; Conflicts of interest with affiliated companies, the Promoters group and other related parities; The performances of the financial markets in India; Our ability to expand our geographical areas of operations; Concentration of ownership among our Promoters; Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate; Our ability to retain our key management persons and other employee.

Changes in laws and regulations relating to the industries in which we operate; Effect of lack of infrastructure facilities on our business;

Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries, inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices; Our ability to purchase the raw material and the availability of the same at reasonable prices; Our ability to obtain the necessary licenses in timely manner.

Our Significant Accounting Policies:

Our significant accounting policies are described in the Section VII entitled ? inancial Statements as Restated? on page no. 209 of this Prospectus.

Our Results of Operation

The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the period ended on August 31, 2025, March 31, 2025, March 31, 2024 and March 31, 2023.

Particulars		% of	August	% of	March	% of	March	% of	March
		Total	31, 2025	Total	31, 2025	Total	31, 2024	Total	31, 2023
		Income		Income		Income		Income
INCOME:
Revenue		99.41%	10,489.3	99.05%	25,725.3	99.52%	17,492.0	98.79%	18,543.4
			6		9		5		6
Other Incomes		0.59%	62.22	0.95%	349.02	0.48%	84.25	1.21%	227.74
Total		100%	10,551.5	100%	26,074.4	100%	17,576.3	100%	18,771.1
			8		1		0		9
EXPENSES:
Cost of	materials	0.00%	-	0.00%	-	0.00%	-	0.00%	-
consumed
Purchases of stock-in-		0.00%	-	0.00%	-	0.00%	-	0.00%	-
trade
Change In	Stock of	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Finished Goods
Employee benefits		2.49%	262.68	1.88%	489.51	2.56%	450.47	1.91%	358.08
Finance costs		2.11%	222.73	2.16%	564.05	2.22%	389.36	1.01%	188.66
Depreciation		1.73%	182.85	1.70%	443.01	3.15%	552.98	1.70%	318.22
Other expenses		88.46%	9,334.19	89.53%	23,345.1	91.89%	16,151.5	95.13%	17,857.9
					8		1		4
Total		94.80%	10,002.4	95.27%	24,841.7	99.82%	17,544.3	99.74%	18,722.9
			4		6		2		0
Profit	before		549.14		1,232.66		31.98		48.29
Exceptional Items
Exceptional Items			-				2.20		(2.01)
Profit before tax		5.20%	549.14	4.73%	1,232.66	0.17%	29.77	0.27%	50.31
Tax expense:
Current tax		1.01%	107.07	0.57%	149.47	0.00%	-	0.00%	-
Deferred tax		0.38%	40.27	0.43%	112.64	0.14%	25.30	0.22%	40.78
Earlier		-	-	0.21%	54.97	0.02%	4.12	0.15%	27.45
Profit/(loss) for the		3.81%	401.79	3.51%	915.58	0.17%	0.36	(0.10%)	(17.93)
period

Relationship with top customers

The following table summarizes the revenue proportion of our top customers for the respective period:

For five months period ended on 31.08.2025

Sr. No.		Particulars	Amount	%	Relationship
1	Top Customer 1		784.52	7.48%	NIL
2	Top Customer 2		302.46	2.88%	NIL
3	Top Customer 3		280.86	2.68%	NIL
4	Top Customer 4		250.10	2.38%	NIL
5	Top Customer 5		215.15	2.05%	NIL
6	Top Customer 6		180.06	1.72%	NIL
7	Top Customer 7		177.33	1.69%	NIL
8	Top Customer 8		160.26	1.53%	NIL
9	Top Customer 9		148.82	1.42%	NIL
10	Top Customer 10		145.81	1.39%	NIL
		Total	264.54	25.22%

For FY 2024-25

Sr. No.		Particulars	Amount	%	Relationship
1	Top Customer 1		561.71068	2.17%	NIL
2	Top Customer 2		264.31249	1.02%	NIL
3	Top Customer 3		259.0069	1.00%	NIL
4	Top Customer 4		184.06042	0.71%	NIL
5	Top Customer 5		154.0852	0.60%	NIL
6	Top Customer 6		139.84168	0.54%	NIL
7	Top Customer 7		125.40142	0.49%	NIL
8	Top Customer 8		115.28974	0.45%	NIL
9	Top Customer 9		95.63912	0.37%	NIL
10	Top Customer 10		75.04209	0.29%	NIL
		Total	1,974.38	7.64

For FY 2023-24

Sr.No.		Particulars	Amount	%	Relationship
1	Top Customer 1		425.80	2.43%	NIL
2	Top Customer 2		168.06	0.96%	NIL
3	Top Customer 3		139.53	0.80%	NIL
4	Top Customer 4		97.05	0.55%	NIL
5	Top Customer 5		90.61	0.52%	NIL
6	Top Customer 6		88.60	0.51%	NIL
7	Top Customer 7		84.13	0.48%	NIL
8	Top Customer 8		76.16	0.44%	NIL
9	Top Customer 9		75.20	0.43%	NIL
10	Top Customer 10		71.18	0.41%	NIL
		Total	1,316.32	7.53%

For FY 2022-23

Sr. No.		Particulars	Amount	%	Relationship
1	Top Customer 1		2,043.01	11.02%	NIL
2	Top Customer 2		1,030.08	5.55%	NIL
3	Top Customer 3		349.83	1.89%	NIL
4	Top Customer 4		304.65	1.64%	NIL
5	Top Customer 5		273.49	1.47%	NIL
6	Top Customer 6		272.10	1.47%	NIL
7	Top Customer 7		262.43	1.42%	NIL
8	Top Customer 8		257.70	1.39%	NIL
9	Top Customer 9		248.42	1.34%	NIL
10	Top Customer 10		241.38	1.30%	NIL
		Total	5,283.09	28.49%

Revenue from operations:

Revenue from operations includes revenue generated from sale of services.

Other Income:

Our other income primarily comprises of interest income, foreign exchange gain, discount received, profit on sale of fixed assets, etc.

Employee benefits expense:

Our employee benefits expense primarily comprises of Salary and wages, Managerial Remuneration and incentives.

Finance Costs:

Our finance cost includes Interest Expenses and processing fees.

Depreciation and Amortization Expenses:

Depreciation includes depreciation on tangible assets like buildings, motor vehicles, computer and Amortization of intangible assets.

Other Expenses:

Other expenses include transport, forwarding, marketing and traveling, fixed assets written off, commission, GST reverse, etc.

Financial Performance Highlights for five months period ended August 31, 2025 (Based on Restated Financial Statements)

Revenue from operations:

The revenue from operations for the year ended August 31, 2025 was Rs. 10,489.36 Lakhs. Revenue from operations includes sale of services generate from freight forwarding, export income, ground rent charges, etc.

Total Expenses:

The total expenditure for the year ended August 31, 2025 was Rs. 10,002.44 Lakhs. The total expenditure represents 94.80% of the total income. The total expenses are represented by Employee Benefit Expenses, Finance Cost, Depreciation and Other Expenses. The main constituent of total expenditure are Other Expenses which is Rs. 9,334.19 lakhs which is 88.46% of the total income.

Profit/ (Loss) after Tax:

The restated net profit for the year ended August 31, 2025 was Rs. 401.79 lakhs representing 3.81% of the total revenue of our company.

Financial Performance Highlights for March 31, 2025 (Based on Restated Financial Statements)

Revenue from operations:

The revenue from operations for the year ended March 31, 2025 was Rs. 25,826.39 . Revenue from operations includes sale of services generate from freight forwarding, export income, ground rent charges, etc.

Total Expenses:

The total expenditure for the year ended March 31, 2025 was Rs 24,841.76 Lakhs. The total expenditure represents 95.27% of the total income. The total expenses are represented by Employee Benefit Expenses, Finance Cost, Depreciation and Other Expenses. The main constituent of total expenditure are Other Expenses which is Rs. 23,345.18 lakhs which is 89.53% of the total income.

Profit/ (Loss) after Tax:

The restated net profit for the year ended March 31, 2025 was Rs. 915.58 lakhs representing 3.51% of the total revenue of our company.

Financial Performance Highlights for the Period Ended March 31, 2024 (Based on Restated Financial Statements)

Revenue from operations:

Revenue from operations includes sale of services generate from freight forwarding, export income, ground rent charges, etc.

Total Expenses:

The total expenditure during period ended March 31, 2024 was Rs.17,544.32 Lakhs. The total expenditure represents % of the total income. The total expenses are represented by Employee Benefit Expenses, Finance Cost, Depreciation and Other

Expenses. The main constituent of total expenditure are Other Expenses which is Rs. 16151.51 Lakhs which is 91.89% of the total income.

Profit/ (Loss) after Tax:

The restated net profit during the period ended March 31, 2024 was Rs.0.36 lakhs representing 0.00% of the total revenue of our company.

Financial Year 2025 Compared to Financial Year 2024 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2025-24 stood at Rs. 26,074.41 Lakhs whereas in Financial Year 2022-23 the same stood at Rs. 17,576.30 Lakhs representing an increasing of 48.36%.

Revenue from Operations

During the financial year 2024-25 the net revenue from operation of our Company increased to Rs. 25,289.39 Lakhs as against Rs 17,492.05 Lakhs in the Financial Year 2023-24 representing an increase of 44.58 %. The main contribution was due to increase in forwarding income.

Other Income:

During the financial year 2024-25 the other income of our Company increased to Rs 248.02 Lakhs as against Rs. 84.25 lakhs in the Financial Year 2023-24 representing an increase of 194.38%. Such increase was primarily due to profit on sale of fixed asset.

Total Expenses:

The Total Expenditure for the financial year 2024-25 decreased to Rs. 24,841.76 Lakhs from Rs. 17,544.32 lakhs in the Financial Year 2023-24 representing an increase of 41.60%. The main component of the total cost was other expense which represent 89.53% of the total cost.

Employee benefits expense:

Our Company has incurred Rs. 489.51 Lakhs as Employee benefits expense during the financial year 2024-25as compared to Rs 450.47 Lakhs in the financial year 2023-24. The increase of 8.67% was due to increase in Salary & wages, contribution to provident fund and other funds and increase in gratuity.

Finance costs:

These costs were for the financial Year 2024-25 increased to Rs. 564.05 Lakhs as against Rs. 389.36 Lakhs during the financial year 2023-24. The increase of 44.85% was due to increase in interest expenses and borrowing cost.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2024-25 stood at Rs. 443.01 Lakhs as against Rs.552.98 Lakhs during the financial year 2023-24. The decrease in depreciation was around 19.89% in comparison to the previous year.

Other Expenses:

Our Company has incurred Rs. 23,345.18 Lakhs during the Financial Year 2024-25 on other expenses as against Rs. 16,151.51 Lakhs during the financial year 2023-24. There was an increase of 44.53% was mainly due to increase in forwarding expense, insurance expense and agency commission.

Restated Profit before tax:

Net Profit/Loss before tax for the financial year 2024-25 increase to Rs. 1,232.66 Lakhs as compared to Rs. 29.77 Lakhs in the financial year 2023-24, which was majorly due to factors as mentioned above.

Restated profit after tax:

The Company reported Restated profit after tax for the financial year 2024-25 of Rs. 915.58 Lakhs in comparison to Rs. 0.36 lakhs in the financial year 2023-24 majorly due to factors mentioned above.

Financial Year 2024 Compared to Financial Year 2023 (Based on Restated Financial Statements)

Total Income:

Total income for the financial year 2023-24 stood at Rs.17,576.30 Lakhs whereas in Financial Year 2022-23 the same stood at Rs.18,771.19 Lakhs representing an decrease of 6.37%.

Revenue from Operations

During the financial year 2023-24 the net revenue from operation of our Company increased to Rs.17,492.05 Lakhs as against Rs. 18,543.46 lakhs in the Financial Year 2022-23 representing an decrease of 5.67%.

Other Income:

During the financial year 2023-24 the other income of our Company increased to Rs. 84.25 Lakhs as against Rs. 227.74 lakhs in the Financial Year 2022-23 representing an decrease of 63%. Such decrease was primarily due to lower profit on fixed asset.

Total Expenses:

The Total Expenditure for the financial year 2023-24 decreased to Rs. 17,544.32 Lakhs from Rs. 18,722.90 lakhs in the Financial Year 2022-23 representing a increase of 6.29 %.

Employee benefits expense:

Our Company has incurred Rs. 450.47 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to Rs. 358.08 Lakhs in the financial year 2022-23. The increase of 25.80% was due to increase in salaries and gratuity expenses.

Finance costs:

These costs were for the financial Year 2023-24 increased to Rs. 450.47 Lakhs as against Rs 358.08 Lakhs during the financial year 2022-23. The increase of 25.80%% was due to increase in interest expenses and borrowing cost.

Depreciation and Amortization Expenses:

Depreciation for the financial year 2023-24 stood at Rs. 552.98 Lakhs as against Rs.318.22 Lakhs during the financial year 2022-23.

Other Expenses:

Our Company has incurred Rs. 16,151.51 Lakhs during the Financial Year 2023-24 on other expenses as against Rs. 17,857.94 Lakhs during the financial year 2022-23. The decrease of 9.55% was mainly due to decrease in forwarding expense.

Restated Profit before tax:

Net Profit before tax for the financial year 2023-24 decreased to Rs. 29.77 Lakhs as compared to Rs. 50.31 Lakhs in the financial year 2022-23, which was majorly due to factors as mentioned above.

Restated profit after tax:

The Company reported Restated profit after tax for the financial year 2023-24 of Rs. 0.36 Lakhs in comparison to Rs. (17.93) lakhs in the financial year 2022-23 majorly due to deferred tax.

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

Except as disclosed in this Prospectus, there has not been any unusual trend, infrequent event or transaction in our business activity.

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

There are no 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 29 of the 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

Other than as described in the sections ? Risk Factors ? ? Business Overview ?and ? Managements Discussion and Analysis of Financial Condition and Results of Operations ?on pages 29, 142 and 267 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5) Total turnover of each major industry segment in which our Company operates

The Company is in the business of selling of precious metals like gold and silver ornaments Relevant industry data, as available, has been included in the chapter titled ? Industry Overview ?beginning on page 108 of this Prospectus.

6) 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.

7) Status of any publicly announced New Products or Business Segment

Our Company has not announced any new product or service.

8) Seasonality of business

Our Companys business is seasonal in nature. The business is dependent on the events like marriage season and festival season in the country.

9) Dependence on few customers

The revenue of our company is dependent on a few limited numbers of customers.

10) Competitive conditions

Competitive conditions are as described under the Chapters ? ndustry Overview?and ? usiness Overview?beginning on pages 108 and 142 respectively of the Prospectus.

Capitalization Statement

(Amount in Lakhs)

	Particulars	Pre-Issue		Post-Issue
Debt
Short Term Debt		3,820.05		3,820.05
Long Term Debt			1,819.91		1,819.91
Total Debt			5,639.95		5,639.95
Shareholders Fund (Equity)
Share Capital			1,000.00		1,370.00
Reserves & Surplus			1,396.85		5,668.85
Total Shareholders Fund (Equity)			2396.85		7,058.85
Long Term Debt/Equity			0.76		0.54
Total Debt/Equity			2.35		0.80

(*) The corresponding post issue figures are not determinable at this stage pending the completion of public issue and hence have not been furnished.

Notes:

1. Short term Debts represent which are expected to be paid/payable within 12 months and includes instalment of term loans repayable within 12 months.

2. Long term Debts represent debts other than short term Debts as defined above but excludes instalment of term loans repayable within 12 months.

3. The figures disclosed above are based on restated statement of Assets and Liabilities of the Company as at March 31, 2025.

Other Key Ratios

The table below summarizes key ratios in our Restated Financial Statements for five months period ended August 31, 2025, the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023.

		For the Financial Year ended
Particulars	Five months Period
		2024-25		2023-24		2023-22
	ended 31.08.205
Net Capital Turnover	5.59*		4.63		3.98		6.82
Ratio
Current Ratio	1.10		1.21		1.31		1.20
Debt-Equity Ratio	2.35		2.91		5.79		3.54

*Annualized

Net Capital Turnover Ratio: This is calculated by dividing the revenue from operations by the average net capital employed during the period.

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

Cash Flows

The table below is our cash flows for the year ended, March 31, 2025, March 31, 2024 and March 31, 2023.

					For the Financial Year ended
			Five months
Particulars			Period
					2024-25		2023-24		2023-22
			ended
			31.08.205
Net cash (used)/from operating activities			451.86		1,169.38		(139.92)		(389.86)
Net cash (used)/from investing activities				(68.97)		(272.58)		(1,771.69)		(1,275.57)
Net cash (used)/from financing activities				(380.92)		(1,008.29)		2,041.33		1,665.64
Cash and Cash equivalents	at	the		28.72		140.21		10.50		10.30
beginning of the year
Cash and Cash equivalents at the end of				30.69		28.72		140.21		10.50
the year

Related Party Transactions

Related party transactions with certain of our promoters, directors and their entities and relatives primarily relate to remuneration, salary, commission and Issue of Equity Shares. For further details of related parties kindly refer chapter titled ? Financial Statements as Restated ?beginning on page 209 of this 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.

Qualifications of the statutory auditors which have not been given effect to in the Restated Financial Statements

There are no qualifications in the audit report that require adjustments in the Restated Financial Statements

Qualitative Disclosure About Market Risk

Credit Risk

Credit risk is the risk of financial loss to the Company, if a customer or the counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers and from its investing activities, including deposits with banks. The carrying amounts of financial assets represent the maximum credit risk exposure.

Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Our Companys approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation. We believe that our working capital is sufficient to meet our current requirements.

Market Risks

We are exposed to various types of market risks during the normal course of business. Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: price risk, currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

Effect of Inflation

In recent years, India has experienced relatively high rates of inflation. While we believe inflation has not had any material impact on our business and results of operations, inflation generally impacts the overall economy and business environment and hence could affect us.